ITEM:		ACTION ITEM
14.	CONSIDER WRITTEN RESPONSE TO STATE REGARDING WATER RIGHT 20808 A, B AND C
Meeting Date:			April 20, 2020	Budgeted:	N/A
From:			David J. Stoldt	Program/	Water Supply Projects
			General Manager	Line Item:
Prepared By:			Jonathan Lear	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: On 4/6/20 the Water Supply Planning Committee voted to recommend that the Board direct the General Manager to respond in keeping with the 3/24/20 call.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: On 3/4/20, the District received a letter from the State Water Resources Control Board (SWRCB) asking the District a number of questions regarding Water Rights 20808 held by the District. The letter, attached as Exhibit 14-A, provides a history of the 20808 Water Right(s) and describes the process in which the water right was split into 3 separate water rights. The letter asks two specific questions regarding Water Right 20808B and outlines a few important dates related to Water Rights 20808 A and C. The implications of the dates for each of the Water Rights is explained below.

Status of 20808 A and C

On December 1, 2020 the period to demonstrate beneficial use of water diverted under these permits expires. At that point, even if the face value of the Water Rights is larger than the maximum volume diverted in a calendar year, the Water Rights are capped at the maximum demonstrated volume according to the SWRCB. In addition, these water rights have a maximum rate of diversion also capped at the demonstrated rate. The District has demonstrated maximum diversion rates for each of these Water Rights, but has not yet demonstrated the maximum face value of the Rights. Face value of these water rights was calculated at the time the petition for change of the original 20808 was submitted by multiplying the number of days within the diversion window (December 1 to May 31) by the maximum diversion rate for each permit. Face values for 20808 A and 20808 C are 2,476 and 2,900 Acre Feet per calendar year, respectively. However, these Water Rights are also subject to in-stream flow requirements that must be met prior to diverting water. The District has daily streamflow records dating back to the 1950’s that demonstrate there has never been a year where all days between December 1 and May 31 have been above the instream flow requirements.

When the period to demonstrate beneficial use for a water right comes to a close, the water right holder has three choices; 1) keep diverting water under the right capped at the maximum calendar year diversion of record, 2) file a petition for an extension of time to extend the time to demonstrate maximum beneficial use, or 3) file to license the water right. When a water right is licensed, a finding is made as to the maximum diversion rate and the maximum annual diversion volume. The findings often do not set the rate and volume of the right above what has been demonstrated, however the water right is considered perfected and can never be revoked.

Currently, the District has shown it can divert under each of these water rights at the maximum daily diversions, but the maximum annual volume diverted for the water rights are 1,117 AF and 1,428 AF for 20808 A and C, respectively.

Status of 20808 B

The 3/4/20 SWRCB letter focuses mostly on this water right, specifically asking about the District’s plan to move forward with its current petition for extension of time to construct. The window of time to finish construction of the New Los Padres Dam and to show diversions to beneficial use ends December 2020. These dates will not be met. SWRCB staff asks the District; 1) whether the District would like to keep the petition for extension of time to construct the Dam and 2) if the District is considering filing a petition for extension of time to demonstrate diversions to beneficial use under this permit.

On 3/24/20 District staff and SWRCB staff had a conference call to chart a path forward for the water rights.

· For 20808 A and C SWRCB staff recommended the District begin the licensing process and make a case for more water than the highest annual volume based on a streamflow analysis to see how much the draft licensed amounts were. If at that point the District chooses to not accept the draft annual volumes, the District can file another petition for extension of time to demonstrate beneficial use.

· For 20808 B SWRCB staff recommended the District file a petition for extension of time to show beneficial use and withdraw the petition for extension of time to construct New Los Padres Dam. Once the District has completed a feasibility analysis and identified viable project(s), a petition for change can be filed to modify the water right to apply to the new application.

SWRCB staff reminded District staff that filing any petition will open a 30 day period for others to protest the petition.

RECOMMENDATION: Receive the report on water rights status and direct the General Manager reply to the SWRCB letter with the recommendations from the 3/24/20 call or make different recommendations for the response. The Water Supply Planning Committee recommended that the Board direct the General Manager to respond with the recommendations from the 3/24/20 call.

EXHIBIT

14-A March 4, 2020 Letter from SWRCB

U:\staff\Boardpacket\2020\20200420\ActionItem\14\Item-14.docx