1. (a) The Chief, Division of Water Rights (Division Chief), is delegated the authority to apply Water Code section 1560, subdivision (b).

2. (b) The Division Chief's determination under Water Code section 1540 whether the United States Bureau of Reclamation (USBR) is likely to decline to pay fees or expenses for projects within the Central Valley Project, and any allocation of those fees or expenses, shall be consistent with the following criteria:

   1. (1) The Division Chief first shall consult with the USBR to ascertain whether the USBR will pay the applicable amount or agree to contractual arrangements that, in the opinion of the Division Chief, provide an adequate substitute for payment of the fee or expense.

   2. (2) If the USBR declines or is likely to decline to pay the fee or expense or to agree to contractual arrangements acceptable to the Division Chief, the Division Chief shall allocate the fee or expense to the USBR'S water supply contractors in accordance with subdivision (b)(2) of Water Code section 1560. The fee or expense for projects of the Central Valley Project shall be prorated among the contractors for the Central Valley Project based on either the contractor's entitlement under the contract or, if the contractor has a base supply under the contract, the contractor's supplemental supply entitlement. This formula is expressed mathematically as follows:

      

      Where:

      i = individual contractor

      x = supplemental water entitlement under the contract or total contract amount if there is no base supply under the contract n = number of contractors

      Fee_USBR = fee or expense apportioned to the USBR for the Central Valley Project

3. (c) If a fee or expense or portion thereof is allocated, pursuant to subdivision (b)(2) of Water Code section 1560 or subdivision (b) of this section, to an individual water supply contractor that is a federal agency or Indian tribe who has declined, or is likely to decline, to pay the fee or expense, the Division Chief may apply subdivision (b) of Water Code section 1560 to the fee or expense or portion thereof allocated to that contractor.
4. (d) If a water supply contractor allocated a portion of an annual fee pursuant to subdivision (b)(2) of section 1560 of the Water Code or subdivision (b) of this section successfully petitions the board to reduce or eliminate that allocation, the board's action on the petition shall not provide a basis for recalculation or reapportionment of the annual fee for that fiscal year as apportioned to any other contractor that has not filed a petition for reconsideration of its allocation.

5. (e) The following definitions apply to this section:

   1. (1) “Base supply” means the amount of water delivered to a water user by USBR from the Central Valley Project that is designated as base supply in a water supply contract between the user and the USBR.
   2. (2) “Supplemental supply entitlement” means the amount of water exceeding base supply delivered from the Central Valley Project to a water user.

Note: Authority cited: Sections 1058 and 1530, Water Code. Reference: Sections 1525, 1540 and 1560, Water Code.

History

1. New section filed 12-23-2003 as an emergency; operative 1-1-2004 (Register 2003, No. 52). Pursuant to Water Code section 1530 this rulemaking action remains in effect until revised by the State Water Resources Control Board.