On September 22, 2024, Governor Newsom signed AB 460 into law. The bill amends Water Code section 1846 establishing new fines for violating State Water Resources Control Board curtailment orders, with a maximum penalty of $10,000 per day, and $2,500 per acre-foot of water diverted contrary to those orders.

It also doubles the penalties in Water Code sections 1845 and 1846. The fine for violating permits, licenses, registrations, regulations, or non-curtailment orders has now increased from $500 to $1,000 per day. The fines for violating a cease and desist order or for threatening to violate diversion or use requirements without authorization have also increased, from $1,000 to $2,500 per day of violation.

AB 460 also introduces section 1055.5 to the Water Code, which starting in 2026 requires the State Board to annually adjust all civil and administrative penalties to align with the California Consumer Price Index.

Hanson Bridgett previously reported on AB 460 as the bill was introduced, which initially would have authorized the State Board to issue an interim relief order while it investigates existing uses of water - either on an interested party’s request or on the State Board’s own motion. This provision, however, was removed from the bill before it was signed into law, following concerns from agricultural associations and water agencies that unintended consequences could occur without judicial review.

Takeaway

AB 460 introduces significant new penalties for unauthorized diversions or uses of water. It also ensures that these penalties will adjust with inflation going forward. But it does not, as initially contemplated, allow the State Board to issue interim relief orders without judicial review. If you have any questions or concerns about how these actions affect you, please contact our Water Law attorneys.