In a blow to enviromentalists, appellate court says groundwater supply issues must be dealt with under state groundwater act, not well permits designed to deal with water quality. >>read more

In a case that would appear on its face to conflict with a different appellate ruling filed just two weeks ago, the Sixth District Court of Appeal has ruled that a groundwater pump charge is a property-related charge subject to Proposition 218. 

However, the court also ruled that the pump charge issued by the Santa Clara Valley Water District is also a fee and therefore is exempt from some of Proposition 218's  requirements. The facts are very case-specific and the underlying statute is different from the one considered in City of San Buenaventura v. United Water Conservation District, which ruled that a groundwater pump charge is a fee and not a property-related charge.

United Water Conservation District may charge urban water users higher groundwater pumping fees than agricultural users, the Second District Court of Appeal has ruled. The court concluded that the fees are not property-based and therefore not subject to Proposition 13. In addition, the court concluded that the pumping fees fall under one of Proposition 26's exceptions, saying that the pump fees represent "payor-specific benefits" not subject to Prop. 26's requirements. 

The City of Ventura sued United over the fact that the district charges the city fees that are three to five times that of agricultural users, as permitted in the state Water Code. United manages groundwater in a large area in western Ventura County. Historically, United relied on property tax revenue water delivery charges. But after the passage of Proposition 13 in 1978, United began charging customers for pumping the groundwater. Pump charges are governed by Water Code Section 75522, which permits United to charge different rates for agricultural and non-agricultural users and also permits United to separate its service area into different zones.