On Wednesday, July 1, 1998 at 9:00 a.m. and on July 2, 14, 15, 16, 21, 22, 28, 29, and 30, August 4, 5, 6, 18, 19, and 20 if necessary, at times to be announced on the previous hearing day. Additional days will be announced as necessary.

On July 1 and 2, 1998 at

Resources Building

First Floor Auditorium

1416 Ninth Street, Sacramento

and on subsequent dates at

Paul R. Bonderson Building

First-Floor Hearing Room

901 P Street, Sacramento

SUBJECTS OF HEARING

The State Water Resources Control Board (SWRCB) will convene this hearing for the purpose of receiving evidence on four subjects: (1) the assignment of responsibilities for meeting the objectives in the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary, adopted on May 22, 1995 (1995 Bay-Delta Plan), (2) whether or not to approve, subject to terms and conditions, a joint petition of the Department of Water Resources (DWR) and the United States Bureau of Reclamation (USBR) to combine their points of diversion in the southern Delta, (3) whether or not to approve, subject to terms and conditions, a petition of the USBR to change the places of use and purposes of use in its water right permits for integrated parts of the federal Central Valley Project (CVP), and (4) whether and under what conditions to extend the interim changes in the water rights of the DWR and the USBR under Order WR 95-6 past December 31, 1998. Additionally, the SWRCB will consider whether or not to make recommendations to: (1) the Central Valley Regional Water Quality Control Board (CVRWQCB) concerning water quality actions discussed in the draft Environmental Impact Report (EIR), and (2) the DWR and the USBR concerning facilities in the southern Delta and in the Suisun Marsh.

The SWRCB will consider implementing flow-dependent1 objectives in the 1995 Bay-Delta Plan by allocating responsibility among water right holders to meet water flows and by requiring changes in the operations of facilities used in the diversion and use of water. The hearing will focus on the responsibilities of the holders of the water rights listed in Enclosure 2(a). Other water right holders also may be required to help meet flows as a result of future proceedings. Obligations will be placed on users not listed in Enclosure 2(a), only after further notice directed to such users. A draft Environmental Impact Report (EIR), including appendices, is available that analyzes the environmental effects of implementing the 1995 Bay-Delta Plan. The volume containing the appendices has been provided only to those who specifically requested it. Comments on the original draft EIR were due April 1, 1998. SWRCB staff currently is revising Chapters V, VI, and XIII of the draft EIR. The due date for additional comments, on revised chapters V, VI, and XIII of the draft EIR, will be announced when the revised chapters are released. Copies of the draft EIR or the revised chapters can be obtained from Ms. Renee Frazier at (916) 657-1361 or from the SWRCB's internet website at http://www.swrcb.ca.gov/html/baydelta.html.

The SWRCB will consider a joint water right change petition filed by the DWR and the USBR for their State Water Project (SWP) and CVP water rights. The DWR and the USBR seek to add to their respective water rights each other's point of diversion in the southern Delta. With the proposed change, the SWP could use the Tracy Pumping Plant as well as its diversion point at Clifton Court Forebay (Banks Pumping Plant) and its authorized diversion point at Italian Slough2, and the CVP could use the Clifton Court Forebay and the SWP's authorized diversion point at Italian Slough as well as its diversion point at the Tracy Pumping Plant. This proposed change in operations is referred to as the "joint points of diversion". The water right permits and licenses that may be changed under the petition are listed in Enclosure 2(b). Chapter XIII of the draft EIR for implementation of the 1995 Bay-Delta Plan objectives analyzes the effects of eight alternatives for acting upon the petition for the joint points of diversion.

The SWRCB will consider a water right change petition filed by the USBR for changes of place of use and purposes of use under water right permits for the CVP. Approval of the change petition would consolidate the places of use of many of the CVP water right permits, expand the places of use to include areas where CVP water is being used outside an authorized place of use, and conform all of the purposes of use under the group of CVP permits that are subject to the petition. A draft EIR separate from the draft EIR for the implementation of the 1995 Bay-Delta Plan objectives was released in December, 1997, to address the environmental effects of the proposed change in place and purpose of use. The water right permits that may be changed under the petition are listed in Enclosure 2(c). The draft EIR is available from Ms. Renee Frazier, at (916) 657-1361 or from the website at http://www.waterrights.ca.gov/reports/default.htm. Comments on this draft EIR were due April 1, 1998.

With respect to water rights, the SWRCB will focus the proceeding narrowly on assigning responsibility for meeting the objectives and on addressing the water right change petitions filed by the DWR and the USBR. With respect to meeting the objectives, the proceeding is intended to establish water right implementation requirements that will meet the flow-dependent objectives within the Bay-Delta, not to establish specific instream flow requirements to protect fish and wildlife upstream of the Delta. The proceeding involves a limited review of existing water rights. To the extent that it modifies existing water rights, it will do so only for the limited purpose of assigning responsibility for meeting water quality objectives in the 1995 Bay-Delta Plan. In addition, the SWRCB may modify the water rights of the DWR and the USBR as appropriate for any change in point of diversion, place of use, or purpose of use approved as part of the proceeding.

 With respect to water quality and facilities-oriented actions discussed in the draft EIR, the SWRCB will focus on the recommendations it may make to other agencies, including the CVRWQCB, the DWR, and the USBR.

BACKGROUND

The Bay-Delta Estuary includes the Sacramento-San Joaquin Delta, Suisun Marsh and the embayments upstream of the Golden Gate. The Delta and Suisun Marsh are located where California's two major river systems, the Sacramento and the San Joaquin rivers, converge to flow westward to meet incoming seawater tides flowing through the San Francisco Bay. The watersheds of the Bay-Delta Estuary supply water for fish and wildlife in the Estuary and for agricultural and municipal uses in approximately two-thirds of the state. Most of the Bay-Delta water supply used for consumptive purposes is used within the watersheds that contribute water to the Estuary before it reaches the Estuary.

Additional water3 is diverted from the Estuary, primarily the southern Delta, for consumptive uses south and west of the Delta. The SWP and the federal CVP divert the largest quantities of water from the Estuary. Numerous other water storage and diversion projects influence the inflows to and outflows from the Bay-Delta Estuary.

 The SWRCB has issued numerous orders and decisions regarding water quality and water right requirements for the Bay-Delta Estuary. The current water quality objectives are set forth in the 1995 Bay-Delta Plan, adopted May 22, 1995. The current water right requirements, applicable only to the CVP and the SWP, are set forth in Water Right Decision 1485 (D-1485), adopted in 1978, and in Order WR 95-6, adopted in 1995. The SWRCB adopted D-1485 to implement the objectives in the 1978 Water Quality Control Plan for the Sacramento-San Joaquin Delta and Suisun Marsh. The SWRCB adopted Order WR 95-6 in response to a petition filed by the DWR and the USBR to change some of the requirements in D-1485. Order WR 95-6 removes conflicts between D-1485 and the flow-dependent objectives in the 1995 Bay-Delta Plan, but expires at the end of December 1998.

 Primary Purpose

The primary purpose of this hearing is to receive testimony and other evidence regarding the assignment of responsibility among water right holders to implement the flow-dependent objectives in the 1995 Bay-Delta Plan. The final decision resulting from this hearing is intended to supersede D-1485 and Order WR 95-6 as the regulatory mechanism for water rights implementation of the current flow-dependent water quality objectives in the 1995 Bay-Delta Plan, but Order WR 95-6 may require extension until the final decision is reached. This hearing will include consideration of a possible extension of Order WR 95-6.

 Other Purposes

Other purposes of the hearing are to receive testimony and other evidence regarding the petitions for change that request authorization of: (1) the proposed joint points of diversion under CVP and SWP water rights, (2) changes in water rights in connection with agreements among the parties proposing allocations of responsibility for meeting the objectives, (3) changes in the responsibilities to meet Suisun Marsh objectives, and (4) the proposed changes in place of use and purposes of use of certain CVP water right permits.

 As the Program of Implementation in the 1995 Bay-Delta Plan recognizes, in the interim period before the SWRCB adopts a water right decision to implement the objectives in the 1995 Bay-Delta Plan, the DWR and the USBR are meeting the objectives in the 1995 Bay-Delta Plan. This interim implementation is based primarily on biological opinions issued to the USBR and the DWR by the California Department of Fish and Game, U.S. Fish and Wildlife Service, and National Marine Fisheries Service. The USBR is the only party currently responsible for meeting the 1995 Bay-Delta Plan's Vernalis flow objectives pursuant to the March 6, 1995, biological opinion issued by the U.S. Fish and Wildlife Service for the threatened Delta smelt.

 CONDUCT OF THE PROCEEDING

Several agreements have been negotiated among the parties interested in this proceeding, proposing allocations of responsibility to meet the flow-dependent objectives in the 1995 Bay-Delta Plan. The SWRCB will receive evidence on these agreements during the hearing and will consider adopting water right terms and conditions consistent with these agreements.

Phasing of the Hearing

The SWRCB will receive evidence in phases, with each phase focusing on a particular subject or subjects, as follows: (1) extension of Order WR 95-6 or equivalent temporary compliance with the 1995 Bay-Delta Plan; (2) the responsibilities of the parties who are jointly proposing the San Joaquin River Agreement, the DWR, and the USBR to meet the flow-dependent objectives; (3) the Suisun Marsh Preservation Agreement, and the other alternatives for meeting the Suisun Marsh objectives; (4) the responsibilities of the parties who are jointly proposing agreements4 in the Sacramento, Mokelumne, Calaveras, and Cosumnes river watersheds, the DWR, and the USBR, to meet the flow-dependent objectives; (5) the responsibilities for meeting the dissolved oxygen and southern Delta salinity objectives; (6) the petition of the USBR and the DWR for joint points of diversion in the southern Delta; (7) the petition filed by the USBR to change and consolidate specified places of use and purposes of use in its water right permits for the integrated parts of the CVP; (8) the responsibilities of water right holders listed in Enclosure 2 who are not parties to accepted agreements heard in phases 2 and 4, and are within the watersheds of the San Joaquin, Sacramento, Mokelumne, Cosumnes, and Calaveras river watersheds, to meet the flow-dependent objectives. In advance of any phase, the SWRCB may provide additional guidance on scheduling of presentations.

 Unless the SWRCB extends the time to file exhibits (including written testimony), the exhibits for phases 1 and 2 will be due on June 1, 1998. The exhibits for phases 3 and 4 will be due on June 20, 1998. The SWRCB will announce the dates for filing exhibits for later phases as the hearing progresses. In each phase, the SWRCB will receive evidence on each party's case in chief, cross-examination, redirect and recross examination if allowed, and rebuttal. Some parties have asked the SWRCB to adopt interim decisions on the early phases before receiving evidence on subsequent phases. The SWRCB will decide whether to prepare an interim decision or decisions prior to the conclusion of the hearing. If the SWRCB prepares an interim decision or order, it may decide which parties need to participate in subsequent phases of this proceeding. In subsequent phases, the SWRCB may include any parties whose rights must be included to ensure that all parties are treated fairly. During the hearing, the SWRCB may schedule testimony, cross-examination, and rebuttal on the above phases for specific days.

 As noted, a number of parties who believe that they otherwise might have adversarial positions have reached agreements concerning how they will help meet the objectives without admitting to a responsibility to help meet the objectives. The parties to the agreements should present their evidence in support of their agreements during their cases in chief. If, however, the parties to an agreement advise the SWRCB that they do not wish to concurrently present alternative adversarial evidence and legal arguments against each other, the SWRCB may later reopen the relevant phase of the proceeding if such evidence would be relevant to the issues listed in this notice and nonrepetitive. The SWRCB also may notify parties to present additional evidence if, for example, it appears that the SWRCB may not have enough evidence to support a decision that would be consistent with an agreement. In any reopening, the SWRCB will give all the parties an opportunity to rebut newly submitted adverse evidence.

 Additional Workshops

As the hearing proceeds, the SWRCB may set aside times to receive status reports on agreements that have been recently executed or are being negotiated among the parties.

REGULATORY BASIS FOR ACTION

The SWRCB has continuing authority under Water Code sections 100 and 275 to enforce the requirements of the California Constitution, Article X, section 2, with respect to all water right holders, including pre- and post-1914 appropriative rights and riparian rights. Article X, section 2, directs that the water resources of the state be put to beneficial use to the fullest extent, and that water not be wasted or unreasonably used. It further provides that rights to the use of water are limited to such water as is reasonably required for the beneficial use served, and does not extend to the waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of the water.

 The SWRCB has continuing authority over all water rights under the common law public trust doctrine. (See National Audubon Society v. Superior Court (1983) 33 Cal.3d 419 [189 Cal.Rptr. 346].

 The SWRCB has authority to review existing water rights and to ascertain whether water is diverted and used within the limits of such rights, including protecting other legal users of the water. (Wat. Code Section 1050 et seq.)

Water Code section 1394 authorizes the SWRCB to include a reservation of jurisdiction in a permit when issues relating to protection of vested rights, protection of the public interest, and coordination with other projects cannot be resolved when the application is approved. Reservations of jurisdiction are included in most of the SWP and CVP permits. Since 1965, the SWRCB has reserved jurisdiction over water right permits within the Bay-Delta Estuary watershed through use of Standard Water Right Permit Term 80.

 The SWRCB can approve petitions for changes in points of diversion, place of use, and purpose of use under Water Code sections 1700-1707.

KEY HEARING ISSUES

1. Should the SWRCB extend the effective period of Order WR 95-6? If yes, how long should it be extended, and what terms and conditions should it contain? Order WR 95-6 temporarily amended terms and conditions on the water rights of the SWP and the CVP by substituting water quality standards for striped bass spawning, Suisun Marsh, export limits, and Delta Cross Channel gate closures set forth in the 1995 Bay-Delta Plan for the corresponding water quality standards added to these water rights under D-1485. Order WR 95-6 also temporarily authorized the SWP and the CVP to use the joint points of diversion, subject to terms and conditions that restrict such use to circumstances in which Delta fisheries are benefitted. Finally, it temporarily changed the Vernalis salinity standard under D-1422 to correspond to the Vernalis salinity standard in the 1995 Bay-Delta Plan. If the SWRCB does not act on key issues 2 through 6 before December 31, 1998, it intends to act on an extension of Order WR 95-6 by that date.

 2. What requirements for implementing the flow-dependent objectives in the 1995 Bay-Delta Plan should be adopted in a water right decision? The draft EIR presents a number of alternatives for implementing each of the groups of flow-dependent water quality objectives in the 1995 Bay-Delta Plan through amendments to existing water rights. The draft EIR, Chapter II, describes seven alternatives for implementing the flow objectives5 in the 1995 Bay-Delta Plan. Meeting the flow objectives will require releases or bypasses of water and other changes in the exercise of water rights affecting the Bay-Delta Estuary. The draft EIR, Chapter II, also describes alternatives for implementing the Suisun Marsh salinity objectives, for implementing salinity objectives in the southern Delta, for implementing the dissolved oxygen objectives for the San Joaquin River between Stockton and Turner Cut, and for operating the proposed joint points of diversion. These alternatives can be combined in different ways, and can be modified. What set of components should be combined in a decision to implement the water quality objectives? How should each of the selected alternatives be modified to ensure that it: (1) meets the reasonableness requirements of California Constitution, Article X, section 2, (2) is feasible, (3) appropriately protects water rights, fish and wildlife, and public trust uses, (4) meets the county of origin and watershed of origin statutory provisions (Wat. Code Sections 1215-1222, 10505, 10505.5, 11128, and 11460-11463), and (5) meets all other applicable provisions of law?

 3. Should the SWRCB approve the petitioned changes of point of diversion under the CVP and SWP permits? What terms and conditions, if any, should be added to the CVP and SWP permits under consideration if the SWRCB approves these changes?

4. Should the SWRCB approve the petitioned changes of place of use and purpose of use of water under the CVP permits? What terms and conditions, if any, should be added to the CVP permits under consideration if the SWRCB approves these changes?

 5. With respect to the negotiated agreements that have been reached among some of the parties, should the SWRCB add water right terms and conditions to the water rights of the parties to the agreements or take other actions to implement the regulatory provisions of these agreements? As discussed above, several agreements have been reached and are being proposed to the SWRCB as resolutions of the responsibilities that certain water right holders have to help meet objectives in the 1995 Bay-Delta Plan.

 6. What evidence supports the SWRCB's exercising its jurisdiction and taking action regarding the water rights listed in Enclosure 2, for the purpose of ensuring that water originating within the watersheds of the Bay-Delta Estuary is diverted and used within the constraints of California Constitution, Article X, section 2 (the reasonable use doctrine) and the public trust doctrine? These doctrines establish constraints on the exercise of water rights in California. SWRCB action implementing these doctrines must be supported by findings of fact and conclusions of law. These doctrines are a legal basis for the SWRCB's jurisdiction to assign responsibilities to the water rights set forth in Enclosure 2.

 HEARING PARTICIPATION
IF YOU WANT TO TAKE PART IN THIS HEARING: All those persons who plan to participate in this hearing should carefully read Enclosure 1, entitled "Information Concerning Appearances by Parties". Rules pertaining to Notices of Intent to Appear, policy statements, and statements of expert qualification have been revised since the December 2, 1997 notice. As provided in the letter to the parties dated March 16, 1998, parties intending to present evidence at the hearing must submit a "Notice of Intent to Appear" by May 7, 1998. The SWRCB already has received most of the Notices of Intent to Appear, but has extended the deadline to allow additional parties to participate.
 Questions concerning this notice may be directed to Victoria A. Whitney, Chief, Bay-Delta Unit, at (916) 653-2516 (FAX (916) 657-1485), or to Barbara J. Leidigh, Senior Staff Counsel, at (916) 657-2102.

 PARKING AND ACCESSIBILITY
The enclosed map shows the location of the Resources Auditorium and the Paul R. Bonderson Building in Sacramento. Public parking is available in the State Garage on 10th Street between O and P Streets, in metered spaces on area streets, and in the public parking garages on L Street between 10th and 11th Streets and on P Street between 11th and 12th Streets. The Resources Auditorium is accessible to persons with disabilities.
 /s/

 Maureen Marché, Administrative Assistant to the Board
 Dated: May 6, 1998

NOTE: Not available electronically -- the location map, Enclosure 2(a) ("Water Rights that may be Responsible to implement Flow-Dependent Objectives", Enclosure 2(b) ("DWR Permits Subject to Joint Point Petition"), Enclosure 2(c) ("Permitted Applications Involved in USBR Petition to Consolidate and Expand the Place of Use and Conform Purposes of Use for the Federal Central Valley Project"), Notice of Intent to Appear form, and Exhibit Identification Index.

Footnote1

Flow-dependent objectives are defined to include all objectives that could be met by the flow of water or by changes in the operations of facilities, notwithstanding that such objectives also could be met entirely or partially through other means, such as management measures and waste discharge requirements.

Footnote2

The SWP has an authorized point of diversion in the southern Delta at Italian Slough, but the SWP does not divert water at that location.

 Footnote3

Some of this water is used in the watershed of the Estuary.

Footnote4

The Sacramento and Mokelumne agreements include the Yuba County Water Agency agreement on the Yuba River, the memoranda of understanding entered into by DWR and North Delta Water Agency, by DWR, the State Water Contractors (SWC) and Solano County Water Agency (Putah Creek), and by DWR, SWC, and Yolo County Flood Control and Water Conservation District (Cache Creek), and the East Bay Municipal Utility District's agreement with CUWA/AG on the Mokelumne River.

Footnote5

The flow objectives include: (1) the Delta outflow objectives, (2) salinity objectives in the Delta that occasionally control Delta outflow, (3) the flow objectives on the Sacramento River at Rio Vista, (4) the flow objectives on the San Joaquin River at Vernalis, and (5) the salinity objectives on the San Joaquin River at Vernalis.

ENCLOSURE 1

BAY-DELTA WATER RIGHTS HEARING INFORMATION CONCERNING APPEARANCES BY PARTIES

The following procedural requirements will apply and will be strictly enforced for purposes of the above-mentioned hearing.

1. PARTIES: The parties are the water right holders whose exercise of their water rights may be modified as a result of this hearing and other interested persons or entities who intend to present evidence. A person or entity who appears and presents only a policy statement will not be considered a party.
 

 2. NOTICE OF INTENT TO APPEAR: Each party intending to participate must submit to the SWRCB and to each of the other parties the name of each witness who will testify in such party's behalf, together with certain other information. As announced in the letter to the parties dated March 16, 1998, parties who wish to participate and have not already done so, must submit twenty copies of a Notice of Intent to Appear in time for it to be received by the SWRCB by 5:00 p.m., May 7, 1998. Parties who previously submitted their Notices of Intent to Appear need not resubmit their Notices, but may file amended Notices, with twenty copies, by this deadline. Additionally, parties are requested to specify the hearing phases in which they will participate. Approximately two weeks after receiving the notices of intent to appear, the SWRCB will provide to each party who has indicated an intent to present evidence a "list of parties to exchange written testimony and other exhibits". Parties will be required to provide copies of their Notices of Intent to Appear, including the statements of qualifications of their expert witnesses, to each of the parties on the exchange list on June 1, 1998.
 

 3. WRITTEN TESTIMONY: Each party proposing to present testimony on factual or other evidentiary matters at the hearing shall submit such testimony in writing. Each piece of written testimony is, and shall be treated as, an exhibit (See item 4 below.), and must be submitted with the other exhibits. Oral testimony that goes beyond the scope of the written testimony may be excluded.
 

 4. EXHIBITS: Each party wishing to present exhibits shall submit twenty copies of its exhibits to the SWRCB and serve one copy on each of the other parties listed on the "list of parties with whom to exchange written testimony and other exhibits". The exhibits for phases 1 and 2 must be received by the SWRCB by 5:00 p.m., June 1, 1998. The exhibits for phases 3 and 4 must be received by the SWRCB by 5:00 p.m., June 20, 1998. The SWRCB will announce the dates for filing exhibits for later phases as the hearing progresses. Each party shall complete the enclosed Exhibit Identification Index for each phase and submit it with its exhibits. The Status as Evidence column will be completed during the hearing. Written testimony and statements of witness qualifications are considered exhibits. A statement of service with manner of service indicated shall be filed with each party's exhibits.
 

5. ORAL TESTIMONY:

a. Oral testimony will be taken only on oath or affirmation. Each party has the right to call and examine witnesses, introduce exhibits, cross-examine opposing witnesses on any matter relevant to the issues even if that matter was not covered in the direct examination, impeach any witness, rebut adverse evidence, and subpena, call and examine an adverse party or witness as if under cross examination. Board members and the Board's staff counsel may ask questions at any time, and the Board members and staff may cross examine any witness. Ordinarily, only the party or the party's representative will be permitted to examine witnesses, but the hearing officer may allow the party to designate a person technically qualified in the subject being considered to examine a witness.

 b. All witnesses presenting testimony shall appear at the hearing. Before testifying, witnesses shall swear or affirm that the written and oral testimony they will present is true and correct. Written testimony shall not be read into the record. Witnesses will be allowed up to twenty minutes to summarize or emphasize their written testimony on direct examination. In each phase of the hearing, each party will be allowed up to three hours total to present all of its direct testimony. Cross examination will be permitted on the written submittals and any oral testimony. The initial time for cross examination will be limited to one hour. The hearing officers have discretion to allow additional time for direct testimony or for cross examination if there is good cause demonstrated in an offer of proof. The witnesses for each party will be cross examined as a panel. Redirect examination and recross examination may be permitted for good cause at the discretion of the hearing officer.
 

 6. REBUTTAL: Rebuttal evidence will be allowed in each phase after all parties have presented their cases in chief and their witnesses have been cross-examined. At the end of the cases in chief, the hearing officers will set a schedule for parties to submit their rebuttal evidence and for the conduct of rebuttal.
 

 7. EX PARTE CONTACTS: During the pendency of the proceeding, commencing no later than the issuance of the Notice of Hearing, there will be no ex parte communications between board members or staff of the SWRCB and any of the parties regarding substantive issues within the scope of the proceeding. Communications regarding solely procedural matters will be permissible, but ordinarily should be directed to SWRCB staff, not board members.
 

8. SUMMARIES AND LEGAL ARGUMENTS: In each phase at the beginning of each case in chief, the party or the party's attorney may make an opening statement briefly and concisely stating what the proposed evidence is intended to establish. At the close of the hearing or at other times if appropriate, the hearing officers will set a schedule for filing briefs. Twenty copies of each brief shall be submitted to the SWRCB, and one copy shall be served on each of the other parties. A statement of service with manner of service indicated shall be filed with each brief.
 

9. POLICY STATEMENTS: Consistent with its regulation at California Code of Regulations, title 23, section 648.1(d), the SWRCB will provide an opportunity for presentation of nonevidentiary policy statements or comments by interested persons who are not participating as parties. Policy statements are subject to the following provisions in addition to the regulation:
 a. Policy statements are not subject to the prehearing requirements noted above for testimony or exhibits, except that persons wishing to make policy statements are requested to file a Notice of Intent to Appear, indicating clearly an intent to make only a policy statement.
 b. The SWRCB requests that policy statements be provided in writing before they are presented. Oral summaries of the policy statements will be limited to five minutes or such other time as established by the hearing officers.
 

10. HEARING PROCEDURES: The hearing will be conducted in accordance with the procedures for hearings set forth at California Code of Regulations, title 23, sections 648-649.6 and 760, as they currently exist or may be amended. A copy of the current regulations is attached as Enclosure 1(a).

Failure to submit witness information and exhibits in a timely manner may be interpreted by the SWRCB as intent not to appear.

If there is any change in the hearing schedule, only those parties who have filed a Notice of Intent to Appear will be informed of the change.

Materials submitted to the SWRCB should be addressed as follows:
 Division of Water RightsState Water Resources Control BoardP.O. Box 2000Sacramento, CA 95812-2000Attn: Victoria A. Whitney

ENCLOSURE 1(a)

PROCEDURES GOVERNING ADJUDICATIVE PROCEEDINGS BEFORE THE STATE WATER RESOURCES CONTROL BOARDAND CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARDS

Adjudicative proceedings before the State Water Resources Control Board (SWRCB) and the nine regional water quality control boards (RWQCB) are governed by SWRCB regulations and by chapter 4.5 of the Administrative Procedure Act (commencing with section 11400 of the Government Code). SWRCB regulations further provide that, with certain exceptions, adjudicativeproceedings will be conducted in accordance with sections 801-805 of the Evidence Code and section 11513 of the Government Code. The provisions of chapter 5 of the Administrative Procedure Act (commencing with section 11500 of the Government Code), other than section 11513, do not apply to adjudicative proceedings before the SWRCB and RWQCB.
 SWRCB regulations setting forth the procedures for adjudicative proceedings before the SWRCB and RWQCB are codified in article 2 (commencing with section 648) of chapter 1.5 of Division 3 of Title 23 of the California Code of Regulations. A copy of those regulations follows:
SWRCB REGULATIONS
 CALIFORNIA CODE OF REGULATIONS

 TITLE 23. WATERS

 DIVISION 3. STATE WATER RESOURCES CONTROL BOARD ANDREGIONAL WATER QUALITY CONTROL BOARDS

 CHAPTER 1. GENERAL PROVISIONS

ARTICLE 1. DEFINITIONS
 § 640. Definitions.
 (a) "Board" when used in this chapter and chapter 1.5, unless otherwise designated, means either the State Water Resources Control Board or any California Regional Water Quality Control Board.

(b) "State Board" when used in this chapter and chapter 1.5 means the State Water Resources Control Board.

 (c) "Regional Board" when used in this division means any California Regional Water Quality Control Board.

CHAPTER 1.5. RULES OF PRACTICE AND PROCEDURE

ARTICLE 2. ADJUDICATIVE PROCEEDINGS

 § 648. Laws Governing Adjudicative Proceedings.
(a) For purposes of this article, "adjudicative proceeding" means an evidentiary hearing for determination of facts pursuant to which the State Board or a Regional Board formulates and issues a decision.

 (b) Incorporation of Applicable Statutes. Except as otherwise provided, all adjudicative proceedings before the State Board, the Regional Boards, or hearing officers or panels appointed by any of those Boards shall be governed by these regulations, chapter 4.5 of the Administrative Procedure Act (commencing with section 11400 of the Government Code), sections 801-805 of the Evidence Code, and section 11513 of the Government Code.

 (c) Portions of Administrative Procedure Act Not Applicable. The following articles and sections of chapter 4.5 of the Administrative Procedure Act (commencing with section 11400 of the Government Code) are specifically not included in the procedures governing the conduct of hearings before the State Board, any of the Regional Boards, or hearing officers or panels appointed by those Boards:

 Article 8. Language Assistance (except that the procedures for language assistance shall apply to an adjudicative proceeding pursuant to Article 6 [commencing with section 25299.50] of Chapter 6.75 of Division 20 of the Health and Safety Code)

 Article 13. Emergency Decision

 Article 14. Declaratory Decision

 Except as provided in subdivision (b) of this section, chapter 5 of the Administrative Procedure Act (commencing with section 11500 of the Government Code) does not apply to hearings before the State Board, any of the Regional Boards, or hearing officers or panels appointed by those Boards.

 (d) Waiver of Nonstatutory Requirements. The presiding officer may waive any requirements in these regulations pertaining to the conduct of adjudicative proceedings including but not limited to the introduction of evidence, the order of proceeding, the examination or cross-examination of witnesses, and the presentation of argument, so long as those requirements are not mandated by state or federal statute or by the state or federal constitutions.

 § 648.1 Parties and Other Interested Persons.
(a) The party or parties to an adjudicative proceeding before the Board shall include the person or persons to whom the agency action is directed and any other person whom the Board determines should be designated as a party. The hearing notice may specify a procedure for designation of the parties to a particular adjudicative proceeding.

 (b) In a water right proceeding, the party or parties shall include the water right applicant or petitioner, persons who have filed unresolved protests, persons who have filed unresolved objections to a temporary change petition, persons who have filed an unresolved written complaint with the Board concerning the subject matter of the hearing, and any other persons who are designated as parties in accordance with the procedure specified in the hearing notice.

 (c) Persons who fail to comply with the procedural requirements specified in the hearing notice for participation as parties in a proceeding may be dismissed as parties to the proceeding.

 (d) The Board or presiding officer may provide an opportunity for presentation of policy statements or comments, either orally or in writing, by interested persons who are not participating as parties in the proceeding. Persons presenting nonevidentiary policy statements will not be subject to cross-examination but may be asked to respond to clarifying questions from the Board, staff, or others, at the discretion of the Board or presiding officer. The criteria and procedures applicable to participation in a Board adjudicative proceeding as an interested person may be established in the hearing notice or by the presiding officer. Interested persons will not normally be required to serve copies of their statements on the parties to the proceeding nor will they normally be allowed to participate in cross-examination. The hearing notice may require that any written policy statements proposed to be submitted to the Board, be submitted prior to the hearing. If the requirement for prior submittal of policy statements applies to persons who address the Board or a subcommittee of the Board at a meeting subject to the Bagley-Keene Open Meeting Act (article 9 [commencing with section 11110] of chapter 1 of article 1 of division 3 of title 2 of the Government Code), the requirement should be included in the notice of the meeting. Interested persons are not entitled to receive service of exhibits, testimony, or other documents served on the parties to the proceeding unless specifically so provided in the hearing notice or by the presiding officer.

 § 648.2 Official Notice.
The Board or presiding officer may take official notice of such facts as may be judicially noticed by the courts of this state. Upon notice to the parties, official notice may also be taken of any generally accepted technical or scientific matter within the Board's field of expertise, provided parties appearing at the hearing shall be informed of the matters to be noticed. The Board or presiding officer shall specify the matters of which official notice is to be taken. Parties shall be given a reasonable opportunity on request to refute officially noticed technical or scientific matters in a manner to be determined by the Board or presiding officer.

 Public records of the Board that are relevant to the subject of the hearing, and books, reports, and other evidence that have been prepared and published by a public agency, if otherwise admissible, may in the discretion of the Board be received in evidence as exhibits by reference without the necessity of supplying copies to the Board and other parties, provided the original or a copy is in the possession of the Board and the specific file folder or other exact location where it can be found is identified. The party offering an exhibit by reference shall designate the particular portions on which the party relies. Each exhibit shall be appropriately identified and designated in the record as an exhibit of the party offering the exhibit or an exhibit of Board staff.

 § 648.4 Identification of Witnesses; Presubmission and Presentation of Testimony and Exhibits.
 (a) It is the policy of the State and Regional Boards to discourage the introduction of surprise testimony and exhibits.

 (b) The hearing notice may require that all parties intending to present evidence at a hearing shall submit the following information to the Board prior to the hearing: the name of each witness whom the party intends to call at the hearing, the subject of each witness's proposed testimony, the estimated time required by the witness to present direct testimony, and the qualifications of each expert witness. The required information shall be submitted upon forms provided by the Board at a time specified by the Board.

 (c) The hearing notice may require that direct testimony be submitted in writing prior to the hearing. Copies of written testimony and exhibits shall be submitted to the Board and to other parties designated by the Board in accordance with provisions of the hearing notice or other written instructions provided by the Board. The hearing notice may require multiple copies of written testimony and other exhibits for use by the Board and Board staff. Copies of general vicinity maps or large, nontechnical photographs generally will not be required to be submitted prior to the hearing.

 (d) Any witness providing written testimony shall appear at the hearing and affirm that the written testimony is true and correct. Written testimony shall not be read into the record unless allowed by the presiding officer.

 (e) Where any of the provisions of this section have not been complied with, the presiding officer may refuse to admit the proposed testimony or the proposed exhibit into evidence, and shall refuse to do so where there is a showing of prejudice to any party or the Board. This rule may be modified where a party demonstrates that compliance would create severe hardship.

 (f) Rebuttal testimony generally will not be required to be submitted in writing, nor will rebuttal testimony and exhibits be required to be submitted prior to the start of the hearing.

 § 648.5 Order of Proceedings.
 (a) Adjudicative proceedings shall be conducted in a manner as the Board deems most suitable to the particular case with a view toward securing relevant information expeditiously without unnecessary delay and expense to the parties and to the Board. Adjudicative proceedings generally will be conducted in the following order except that the chairperson or presiding officer may modify the order for good cause:

 (1) An opening statement by the chairperson, presiding member, or hearing officer, summarizing the subject matter and purpose of the hearing;

 (2) Identification of all persons wishing to participate in the hearing;

 (3) Administration of oath to persons who intend to testify;

 (4) Presentation of any exhibits by staff of the State or Regional Board who are assisting the Board or presiding officer;

(5) Presentation of evidence by the parties;

 (6) Cross-examination of parties' witnesses by other parties and by Board staff assisting the Board or presiding officer with the hearing;

 (7) Any permitted redirect and recross-examination;

 (b) Questions from Board members or Board counsel to any party or witness, and procedural motions by any party shall be in order at any time. Redirect and recross-examination may be permitted.

 (c) If the Board or the presiding officer has determined that policy statements may be presented during a particular adjudicative proceeding, the presiding officer shall determine an appropriate time for presentation of policy statements.

 (d) After conclusion of the presentation of evidence, all parties appearing at the hearing may be allowed to present a closing statement.

 § 648.5.1 Rules of Evidence
Adjudicative proceedings will be conducted in accordance with the provisions and rules of evidence set forth in Government Code section 11513. Hearsay evidence is admissible subject to the provisions of Government Code section 11513.

 § 648.6 Alternative Dispute Resolution.
 Pursuant to article 5, commencing with section 11420.10, of chapter 4.5 of the Administrative Procedure Act, the State Board or any Regional Board may refer a dispute in a proceeding before it to mediation or nonbinding arbitration to resolve any adjudicative issues pending before it. Under no circumstances may any Board refer an issue to arbitration that is binding upon it with respect to adjudicative issues pending before that Board.

 § 648.7 Informal Hearings.
 Unless the hearing notice specifies otherwise, the presiding officer shall have the discretion to determine whether a matter will be heard pursuant to the informal hearing procedures set forth in article 10, commencing with section 11445.20, of chapter 4.5 of the Administrative Procedure Act.
 Among the factors that should be considered in making this determination are:

 The number of parties,

The number and nature of the written comments received,

The number of interested persons wishing to present oral comments at the hearing,

The complexity and significance of the issues involved, and

The need to create a record in the matter.An objection by a party, either in writing or at the time of the hearing, to the decision to hold an informal hearing shall be resolved by the presiding officer before going ahead under the informal procedure. Failure to make a timely objection to the use of informal hearing procedures before those procedures are used will constitute consent to an informal hearing. A matter shall not be heard pursuant to an informal hearing procedure over timely objection by the person to whom agency action is directed unless an informal hearing is authorized under subdivision (a), (b), or (d) of section 11445.20 of the Government Code.

 § 648.8 Enforcement Orders and Sanctions.
 (a) The presiding officer or Board shall have the power to impose sanctions as specified in Sections 11455.10 and 11455.30 of the Government Code.

 (b) If the Board cites a person for contempt for any of the actions listed in Section 11455.10 of the Government Code, then the matter shall be certified to the superior court for contempt proceedings without further review by the Board. If the Board orders payment of costs pursuant to Section 11455.30 of the Government Code, then the order is effective upon issuance.

(c) Board Review of Enforcement Orders and Sanctions Imposed by Hearing Officers and Hearing Panels.

(1) If the presiding officer is a Board member or other hearing officer or hearing panel authorized by the Board to conduct the hearing, a citation for contempt issued pursuant to Section 11455.10 of the Government Code or an order for payment of costs issued pursuant to Section 11455.30 of the Government Code is subject to review by the Board as provided in this subdivision.

(2) The person or persons subject to the citation or order may request a hearing before the Board within 10 days of entry of the citation or order. The hearing will take place at the next regularly scheduled meeting of that Board, subject to the limitations of the Bagley-Keene Open Meeting Act (Article 9 [commencing with Section 11120] of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). If the Board determines that the actions listed in Section 11455.10 of the Government Code occurred, then the matter shall be certified to the superior court for contempt proceedings. The Board may affirm, set aside, or modify as appropriate an order entered to pay reasonable expenses pursuant to the provisions of Section 11455.30 of the Government Code.

(3) If the person or persons subject to a citation or order fails to request a hearing before the Board within 10 days of entry of the citation or order, then the citation or order is final and subject to enforcement pursuant to Sections 11455.20 and 11455.30 of the Government Code.

(d) A determination by a Regional Board pursuant to this section is not subject to review by the State Board under Water Code Section 13320.
ARTICLE 4. SUBPOENAS

 § 649.6 Subpoenas.
(a) Upon its own motion or upon request of any person, the Board may issue subpoenas and subpoenas duces tecum for attendance at a proceeding and for production of documents at any reasonable time and place or at a hearing.

(b) Article 11 (commencing with section 11450.05) and article 12 (commencing with section 11455.10) of chapter 4.5 of part 1 of division 3 of title 2 of the Government Code shall apply to the issuance of a subpoena or subpoena duces tecum in an adjudicative proceeding. The Board may also compel attendance, testimony, or the production of evidence as provided in article 3 (commencing with section 1090) of chapter 3 of part 1 of division 2 of the Water Code.

(c) Section 1086 of the Water Code does not apply to any witness required to attend an adjudicative proceeding pursuant to article 11 (commencing with section 11450.05) of chapter 4.5 of part 1 of division 3 of title 2 of the Government Code.

(d) Article 5 (commencing with section 1105) of chapter 3 of part 1 of division 2 of the Water Code applies to any person required to testify or produce any evidence pursuant to a subpoena or subpoena duces tecum or pursuant to a notice issued under section 11450.50 of the Government Code.

CHAPTER 2. APPROPRIATION OF WATERARTICLE 11. HEARINGS AND PROCEEDINGS IN LIEU OF HEARING

§ 760. Hearings on Water Right Applications and Other Water Right Matters.
Adjudicative hearings on water right applications and other water right matters shall be conducted in accordance with the procedures set forth in article 2 of chapter 1.5 of this division. Nothing in this section shall limit the Board's authority to conduct nonadjudicative informational hearings.
 § 764. Combined Hearings

 The board may hold a hearing to obtain evidence necessary to allow it to adopt or amend a water quality control plan pursuant to Water Code Section 13170 in combination with a hearing regarding a specific water right application or petition for a change, or in connection with a hearing regarding an exercise of the board's reserved jurisdiction. Whenever the board decides to hold a combined hearing and to make only one record for the combined proceeding, the board's hearing shall meet all of the requirements of Part 2 (commencing with Section 1200) of Division 2 of the Water Code.

§ 764.14. Alternative Procedure
The procedures established in this article shall be construed as alternative to, and not exclusive of, the procedures established in Chapter 5 of Title 23, California Administrative Code, in accordance with Section 4007 therein.§ 765. Hearing to Be Held Promptly
 Protested applications will be heard as promptly as practicable in light of all the circumstances. Requests for inordinate delay of hearings or in conducting stipulated proceedings in lieu of hearing will be denied.

 § 766. Failure to Appear----Effect.
 Any party who fails to appear at a hearing will not be entitled to a further opportunity to be heard unless good cause for such failure is shown to the board within five days thereafter. The lack of such showing of good cause may, in the discretion of the board, be interpreted as an abandonment of interest in the application.

 § 767. Hearings in Response to Drought Emergency Conditions
(a) Any hearing held to consider the taking of action is response to drought emergency conditions shall receive calendar priority over other matters pending hearing before the board.

(b) The board shall give notice of any hearing to consider action in response to drought emergency conditions at least seven days prior to the hearing. The provisions of Section 761(f) of the article, relating to submitting proposed exhibits and qualifications of expert witnesses, shall not apply to any such hearing. The time for submitting such materials shall be as specified in the hearing notice.

(c) In addition to any other issues specified in the hearing notice as issues upon which the parties should submit information, the parties to any such hearing shall address the following issues: (1) Existence of a bona fide drought emergency, including information to enable evaluation of the seriousness of the emergency; (2) water conservation measures which have been implemented in the area being served; and (3) availability of alternative sources of water supply, including reclaimed water.