AMENDED IN ASSEMBLY MAY 18, 2026

AMENDED IN ASSEMBLY MARCH 17, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Assembly Member Connolly

February 19, 2026

An act to amend Sections 1228.1, 1228.2, 1228.5, and 1229 1229, 1241, 1525, and 5101 of, and to amend the heading of Article 2.7 (commencing with Section 1228) of Chapter 1 of Part 2 of Division 2 of, the Water Code, relating to water.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

(1) Existing law, the Water Rights Permitting Reform Act of 1988, authorizes any person to obtain a right to appropriate water for a small domestic, small irrigation, or livestock stockpond use, as defined, upon registering the use with the State Water Resources Control Board, as prescribed, payment of a registration fee, and application of the water to reasonable and beneficial use with due diligence.

This bill would extend the above-described ability to obtain a right to appropriate water to a small restoration use, as provided. The bill would define several terms for these purposes, including defining a small restoration use as a specified use of water for native fish and wildlife preservation and enhancement in connection with a project to restore, enhance, or provide habitat for native fish and wildlife, as provided. The bill would require the board to give priority to processing small restoration use registrations that are coupled with a petition for mandatory dedication to instream beneficial uses or wetlands habitat, as specified. The bill would require a person or entity who files a registration of appropriation for a small restoration use to pay a fee according to a fee schedule established by the board.

(2) Existing law requires renewal of registration of a small domestic, small irrigation, or livestock stockpond use pursuant to a specified process prior to the expiration of each 5-year period following completed registration. Existing law provides for the reversion of water rights to which a person is entitled when the person fails to beneficially use the water for a period of 5 years. Existing law requires the board to establish general conditions to which all appropriations of water for small domestic, small irrigation, or livestock stockpond use are subject, including, among others, that the appropriation is subject to prior rights and that all conditions lawfully required by the Department of Fish and Wildlife are conditions upon the appropriation. Existing law authorizes the board to establish those general conditions for some methods of diversion or categories of small irrigation use before establishing general conditions for other methods or categories others, as specified.

This bill would also apply the above-described these renewal, reversion, and condition-setting provisions to a small restoration use. use and make other conforming changes. The bill would exempt the adoption and revision of those general conditions for small restoration use from certain economic impact assessment requirements of the rulemaking provisions of the Administrative Procedure Act.

The people of the State of California do enact as follows:

SECTION 1.

The heading of Article 2.7 (commencing with Section 1228) of Chapter 1 of Part 2 of Division 2 of the Water Code is amended to read:

Article 2.7. Registration of Appropriations for Small Domestic, Small Irrigation, Small Restoration, and Livestock Stockpond Uses

SEC. 2.

Section 1228.1 of the Water Code is amended to read:

1228.1.

(a) The Legislature finds and declares that it is in the public interest to provide a timely, efficient, and economic procedure for the acquisition of rights to appropriate water for a small domestic use, including incidental stock watering and irrigation uses, a small irrigation use, a small restoration use, and for a livestock stockpond subject to prior rights.

(b) As used in this article:

(1) “Small domestic use” means a domestic use, as that use is defined by board rule, or a use for aesthetic, fire protection, recreational, or fish and wildlife purposes that is associated with a dwelling or other facility for human occupation, that does not exceed direct diversion of 4,500 gallons per day or diversion to storage of 10 acre-feet per year.

(2) “Small irrigation use” means either of the following:

(A) An irrigation use, heat control use, or frost protection use, not to exceed diversion to storage of 20 acre-feet per year, including impoundment for incidental aesthetic, fire protection, recreational, or fish and wildlife purposes.

(B) An irrigation use not to exceed direct diversion of 42,000 gallons per day, up to a maximum of 20 acre-feet per year.

(3) “Livestock stockpond” means a water impoundment structure constructed for livestock watering use not to exceed direct diversion of 4,500 gallons per day, or diversion to storage of 10 acre-feet per year, as that use is defined by the board, and including impoundment for incidental aesthetic, fire protection, recreational, or fish and wildlife purposes.

(4) (A) “Small restoration use” means either of the following in connection with a project to restore, enhance, or provide habitat for native fish and wildlife:

(i) A use for native fish and wildlife preservation and enhancement not to exceed diversion to storage of 20 acre-feet per year, including, but not limited to, impoundment for incidental fire protection, recreational, or native fish and wildlife purposes.

(ii) A use for native fish and wildlife preservation and enhancement not to exceed direct diversion of 42,000 gallons per day, up to a maximum of 20 acre-feet per year.

(B) (i) For purposes of subparagraph (A), “use for native fish and wildlife preservation and enhancement” includes, but is not limited to, the use of water for a storage and forbearance project or the release of stored water to enhance streamflow for the benefit of native fish and wildlife.

(ii) For purposes of clause (i), “storage and forbearance project” is a project in which a legal user of water makes a binding commitment to reduce existing diversions for beneficial use under an existing right at times of deficient streamflow in exchange for a new right to divert water during times of higher streamflow to support the same level of existing beneficial use. uses under the existing right.

(iii) For purposes of clause (ii), a “binding commitment to reduce existing diversions” diversions under an existing right” may be accomplished by an instream flow dedication pursuant to Section 1707, a forbearance agreement, or a condition or term of a permit or license. Compliance with the binding commitment to reduce existing diversions under an existing right shall be made a condition of any small restoration registration issued in connection with a storage and forbearance project.

SEC. 3.

Section 1228.2 of the Water Code is amended to read:

1228.2.

(a) (1) Subject to subdivision (b), a person may obtain a right to appropriate water for a small domestic, small irrigation, small restoration, or livestock stockpond use upon first registering the use with the board and thereafter applying the water to reasonable and beneficial use with due diligence.

(2) With regard to an appropriation for small domestic use, a registration shall not be filed for a facility served by or used pursuant to a permit or license for domestic or municipal use, and not more than one small domestic use registration shall be in effect at any time for any facility. A small domestic use registration and a livestock stockpond use registration may be in effect for the same facility if the total combined water use covered by the registrations does not exceed 10 acre-feet per year.

(3) With regard to an appropriation for small irrigation or small restoration use, more than one registration may be in effect at any time for a registrant if the diversion or storage facilities subject to registration for a registrant do not exceed the ratio of one per 20 irrigated acres, and if the total water use on all acreage covered by the registrations, including any water use based on other rights, does not exceed 100 acre-feet per year.

(4) A small domestic use registration and a small irrigation use registration, or a livestock stockpond use registration and a small irrigation use registration, may be in effect for the same facility only if the total combined water use covered by the registrations does not exceed 20 acre-feet per year.

(5) With regard to an appropriation for livestock stockpond use, more than one registration may be in effect at any time for a registrant if stockponds subject to registration for that registrant do not exceed the ratio of one per 50 acres.

(b) Initiation of rights to appropriate water pursuant to this article shall be subject to Article 1.3 (commencing with Section 1205), relating to fully appropriated stream systems. The board shall not accept a registration of water use that proposes as a source of water supply a stream system that has been unconditionally declared by the board to be fully appropriated pursuant to Section 1205, except that subdivision (b) of Section 1206, relating to conditional declarations of fully appropriated stream systems, shall apply to registration of water use pursuant to this article, and the board shall accept those registrations when consistent with the conditions specified in the declaration.

(c) The board shall annually prepare and post on its internet website information summarizing the location, nature, and amount of water appropriated pursuant to this article. The information shall include a description of the availability of unappropriated water in those stream systems that may become fully appropriated within the next reporting period.

(d) The board shall give priority to processing small restoration use registrations that are coupled with a petition for mandatory dedication to instream beneficial uses or wetlands habitat pursuant to Section 1707.

(e) If a registration is filed with a source of supply on a stream system that the most recent report submitted under subdivision (c) identifies as a stream system that may become fully appropriated within the next reporting period, the registration shall not take effect unless the board finds that unappropriated water is available for the appropriation proposed by the registration. If the board finds that unappropriated water is not available to supply the proposed appropriation, the board shall, following notice and hearing, determine whether that stream system should be declared fully appropriated pursuant to Article 1.3 (commencing with Section 1205).

SEC. 4.

Section 1228.5 of the Water Code is amended to read:

1228.5.

(a) Registration of a small domestic, small irrigation, small restoration, or livestock stockpond use A registration pursuant to this article shall be renewed prior to the expiration of each five-year period following completed registration.

(b) Registrations for which all annual fees have been timely paid and all annual reports have been timely submitted at the expiration of the five-year registration shall be renewed by operation of law.

(c) The conditions established by the board pursuant to Section 1228.6 that are in effect at the time of renewal of registration shall supersede the conditions that were applicable to the original completed registration.

(d) A registration for which fees or water use reports remain outstanding at the expiration of the five-year registration period shall be revoked by operation of law.

SEC. 5.

Section 1229 of the Water Code is amended to read:

1229.

(a) The board is not required to adopt general conditions for small irrigation use or small restoration use pursuant to subdivision (a) of Section 1228.6 until the board determines that funds are available for that purpose.

(b) A registration for small irrigation use or small restoration use pursuant to this article is not authorized until the board establishes general conditions for small irrigation use or small restoration use, respectively, pursuant to subdivision (a) of Section 1228.6 to protect instream beneficial uses.

(c) The board may establish general conditions for some methods of diversion or categories of small irrigation use and small restoration use before establishing general conditions for other methods or categories, in which case a registration for small irrigation use or small restoration use is authorized only for those methods or categories for which the board has established the general conditions for the protection of instream beneficial uses.

SEC. 6.

Section 1241 of the Water Code is amended to read:

1241.

If the person entitled to the use of water fails to use beneficially all or any part of the water claimed by him or her, that person, for which a right of use has vested, for the purpose for which it was appropriated or adjudicated, for a period of five years, that unused water may revert to the public and shall, if reverted, be regarded as unappropriated public water. That reversion shall occur upon a finding by the board following notice to the permittee, licensee, or person holding a livestock stockpond certificate or small domestic use, small irrigation use, or livestock stockpond use a registration under this part and a public hearing if requested by the permittee, licensee, certificate holder, or registration holder.

SEC. 7.

Section 1525 of the Water Code is amended to read:

1525.

(a) Each person or entity who holds a permit or license to appropriate water, and each lessor of water leased under Chapter 1.5 (commencing with Section 1020) of Part 1, shall pay an annual fee according to a fee schedule established by the board.

(b) Each person or entity who files any of the following shall pay a fee according to a fee schedule established by the board:

(1) An application for a permit to appropriate water.

(2) A registration of appropriation for a small domestic use, small irrigation use, or livestock stockpond use. pursuant to Article 2.7 (commencing with Section 1228) of Chapter 1.

(3) A petition for an extension of time within which to begin construction, to complete construction, or to apply the water to full beneficial use under a permit.

(4) A petition to change the point of diversion, place of use, or purpose of use, under a permit, license, or registration.

(5) A petition to change the conditions of a permit or license, requested by the permittee or licensee, that is not otherwise subject to paragraph (3) or (4).

(6) A petition to change the point of discharge, place of use, or purpose of use, of treated wastewater, requested pursuant to Section 1211.

(7) An application for approval of a water lease agreement.

(8) A request for release from priority pursuant to Section 10504.

(9) An application for an assignment of a state-filed application pursuant to Section 10504.

(10) A statement of water diversion and use pursuant to Part 5.1 (commencing with Section 5100) that reports that water was used for cannabis cultivation.

(c) (1) The board shall set the fee schedule authorized by this section so that the total amount of fees collected pursuant to this section equals that amount necessary to recover costs incurred in connection with the issuance, administration, review, monitoring, and enforcement of permits, licenses, certificates, and registrations to appropriate water, water leases, statements of water diversion and use for cannabis cultivation, and orders approving changes in point of discharge, place of use, or purpose of use of treated wastewater. The board may include, as recoverable costs, but is not limited to including, the costs incurred in reviewing applications, registrations, statements of water diversion and use for cannabis cultivation, petitions and requests, prescribing terms of permits, licenses, registrations, and change orders, enforcing and evaluating compliance with permits, licenses, certificates, registrations, change orders, and water leases, inspection, monitoring, planning, modeling, reviewing documents prepared for the purpose of regulating the diversion and use of water, applying and enforcing the prohibition set forth in Section 1052 against the unauthorized diversion or use of water subject to this division and the water diversion related provisions of Chapter 6 (commencing with Section 26060) of Division 10 of the Business and Professions Code, and the administrative costs incurred in connection with carrying out these actions.

(2) In setting the fee schedule for fees subject to subdivision (b) of Section 1433.2 and subdivision (b) of Section 1443.2, the board shall also include an amount estimated by the board, in consultation with the Department of Fish and Wildlife, necessary to recover costs incurred by the Department of Fish and Wildlife under Article 2 (commencing with Section 1433) of Chapter 6.5 and Article 2 (commencing with Section 1443) of Chapter 6.6.

(d) (1) The board shall adopt the schedule of fees authorized under this section as emergency regulations in accordance with Section 1530.

(2) For filings subject to subdivision (b), the schedule may provide for a single filing fee or for an initial filing fee followed by an annual fee, as appropriate to the type of filing involved, and may include supplemental fees for filings that have already been made but have not yet been acted upon by the board at the time the schedule of fees takes effect.

(3) The board shall set the amount of total revenue collected each year through the fees authorized by this section at an amount equal to the amounts appropriated by the Legislature for expenditure for support of water rights program activities from the Water Rights Fund established under Section 1550, taking into account the reserves in the Water Rights Fund. The board shall review and revise the fees each fiscal year as necessary to conform to the amounts appropriated. If the board determines that the revenue collected during the preceding year was greater than, or less than, the amounts appropriated, the board may further adjust the annual fees to compensate for the over or under collection of revenue.

(e) Annual fees imposed pursuant to this section for the 2003–04 fiscal year shall be assessed for the entire 2003–04 fiscal year.

SEC. 8.

Section 5101 of the Water Code is amended to read:

5101.

(a) Each person who, after December 31, 1965, diverts water shall file with the board a statement of their diversion and use, as provided in subdivision (b), except that a statement is not required to be filed if the diversion is any of the following:

(1) From a spring that does not flow off the property on which it is located and from which the person’s aggregate diversions do not exceed 25 acre-feet in any year.

(2) Covered by a registration for small domestic use, small irrigation use, or livestock stockpond use, or permit registration, permit, or license to appropriate water on file with the board.

(3) Included in a notice filed pursuant to Part 5 (commencing with Section 4999).

(4) Regulated by a watermaster appointed by the department and included in annual reports filed with a court or the board by the watermaster, which if the reports identify the persons who have diverted water and describe the general purposes and the place, the use, and the quantity of water that has been diverted from each source.

(5) Included in annual reports filed with a court or the board by a watermaster appointed by a court or pursuant to statute to administer a final judgment determining rights to water, which if the reports identify the persons who have diverted water and give the general place of use and the quantity of water that has been diverted from each source.

(6) For use in compliance with Article 2.5 (commencing with Section 1226) or Article 2.7 (commencing with Section 1228) of Chapter 1 of Part 2.

(7) A diversion that occurs before January 1, 2009, if any of the following applies:

(A) The diversion is from a spring that does not flow off the property on which it is located, and the person’s aggregate diversions do not exceed 25 acre-feet in any year.

(B) The diversion is covered by an application to appropriate water on file with the board.

(C) The diversion is reported by the department in its hydrologic data bulletins.

(D) The diversion is included in the consumptive use data for the Delta lowlands published by the department in its hydrologic data bulletins.

(b) (1) For diversions after December 31, 1965, and before January 1, 2021, the statement shall be filed before July 1 of the year after the diversion.

(2) For diversions after December 31, 2020, and before October 1, 2021, the statement shall be filed before April 1, 2022.

(3) For diversions after September 30, 2021, the statement shall include diversions during the one-year period from October 1 of each year through September 30, inclusive, of the following year, and shall be filed before February 1 of the year after that one-year period.