The State Water Resources Control Board is proposing to raise fees on water projects by 40% this year. 

The board has been ramping up its regulatory scope to fill a shrinking federal footprint after the U.S. Supreme Court weakened the Clean Water Act last year. Gov. Gavin Newsom is proposing to increase the board’s budget by more than $6 million—despite a deepening deficit—so the state can take on duties previously under the Army Corps of Engineers. The board, being a fee-based agency, is planning to pass the cost on to its regulated entities. 

Board staff have cautioned that the new layer of state bureaucracy could also delay levee repair and housing projects by several months. 

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The board is serparately considering about a 6% boost in water quality fees for the irrigated lands, confined animals, waste discharge and cannabis programs. The cost for administering the water rights program is set to rise 8%, reflecting more fees for those stakeholders as well. 

The proposals follow a decade-long trend of annual fee increases. The board will approve a new fee structure in September. By then the rapidly changing state budget situation could alter the final rate increase. 

Staff will present the projections to stakeholders on Thursday.