SB 697 Modernizes the Surface Water Adjudication Process, Shifting the Investigation Burden to Water Users

California Governor Gavin Newsom recently signed Senate Bill (SB) 697 into law to modernize the process by which the State Water Resources Control Board (State Board) investigates and conducts statutory adjudications of surface water rights on a stream system. Those who depend on water from unadjudicated surface water systems should become familiar with these amendments to the Water Code, which may affect their water rights and obligations.

Existing law under Water Code section 2500 et seq., authorizes the State Board to oversee the adjudication and make determinations of the rights of all water users of a stream system — whether based on appropriative or riparian rights. These procedures are typically initiated when one or more water users of a river or stream file a petition for an adjudication with the State Board. Before granting or denying a petition, the State Board must investigate whether the public interest and necessity will be served by a determination of the water rights involved. This includes reviewing all existing water diversions and beneficial uses of the stream system at issue.

SB 697 makes a few important changes to the investigation phase of the adjudication process that are aimed at improving efficiency but also place a greater burden on claimants and existing water rights holders to provide comprehensive information about their water use.

Key Changes Under SB 697

• Shift from Mandatory Field Investigations: The new law removes the requirement that the State Board conduct a detailed, in-person field investigation of every claimant's water use. Instead, the State Board is now authorized to “investigate in detail the use of water” and has the option, but not the requirement, to conduct a field investigation. This allows the Board to rely on modern technology, such as satellite imagery and digital data, to gather information.
• Information Orders: The State Board is now authorized to issue information orders requiring claimants to submit detailed reports of water use from the stream system if the Board deems existing information is inadequate for its investigation. Claimants will be required to respond to such orders within 75 days of issuance.
• Mandatory Claimant Cooperation: The law underscores the duty of each claimant to provide the Board's representatives with all pertinent information on the extent and nature of their water use and the basis of their water right, even without a physical field visit, to expedite the investigation.
• New Judicial Review Procedures: SB 697 applies existing procedures for reconsideration, amendment, and judicial review to the Board's decisions and orders issued pursuant to statutory adjudications. This provides clearer avenues for challenging the Board's determinations in court.

What This Means for Surface Water Users

The signing of SB 697 signals a more data-driven approach by the State Board to the complex process of statutory water rights adjudication, and is intended to expedite the investigative phase of that process.

• Heightened Documentation Burden: Surface water users must be more diligent in measuring and maintaining records of their surface water diversions and use in order to substantiate their water rights. If the statutory adjudication process is initiated, water users of the stream system must be prepared to submit extensive documentation under a tight deadline. The bill also underscores the importance of employing modern measurement and monitoring technologies to ensure the precise data is readily available to protect water rights claims.
• Increased Risk of Adverse Findings: With the reduction in mandatory field visits and reliance on data, perceived gaps or inconsistencies in water use records are likely to be addressed through formal information orders and potentially lead to adverse determinations regarding the scope or validity of water rights claims.

Allen Matkins is closely monitoring the implementation of SB 697 and is prepared to assist you with all aspects of statutory adjudication, including responding to State Board information orders, challenging adverse determinations, and preparing comprehensive water right proofs of claim.