Inyo County Municipal Code Ch. 7.02 Regulation of Water Transfers Undertaken Pursuant to Water Code Section…

"Beneficially interested party"

means a party whose interest in the outcome of the proceedings is substantial, i.e., not a technical, abstract or moot right. Such a party must show that his legal rights are injuriously affected by the action being challenged.

"City of Los Angeles"

means the city of Los Angeles, including its department of water and power.

"Extraction"

means the process of withdrawing groundwater by pumping or other controlled means.

"Groundwater"

means all water below the surface of the earth within the zone below the water table, in which the soil is completely saturated with water, excluding subsurface water that flows in known and definite channels.

"Groundwater basin"

means a groundwater reservoir, defined on the basis of geological and hydrological conditions.

"Groundwater basin located in whole or in part within Inyo County"

means the following groundwater basins identified in California Department of Water Resources Bulletin 118-80 "Ground Water Basins in California" as may be updated or revised in the future:

"Overdraft"

means the withdrawal of groundwater from a groundwater basin in an amount in excess of the amount of water that recharges the basin over a period of years during which water supply conditions approximate average, and which, if continued over time, could eventually cause the groundwater supply to be exhausted, cause subsidence, cause the water table to drop to a level below where groundwater pumping is no longer economically feasible, or cause a detrimental change in water quality.

"Person"

means any natural person, and any corporation, partnership, association, public entity, municipality and any other entity with legal existence under California law.

"Preexisting use"

means any water transfer or transport lawfully occurring on October 27, 1998, the effective date of Ordinance 1004, or lawfully occurring after October 27, 1998, but before the effective date of the ordinance codified in this chapter, pursuant to a permit granted under Ordinance 1004.

"Public trust resources"

means resources protected under the public trust doctrine.

"Recharge"

means flow of water to groundwater storage from precipitation, infiltration from streams, irrigation, spreading basins, and other sources.

"Surface water"

means water in lakes, streams, ponds, rivers or reservoirs except water that was originally groundwater extracted from within Inyo County.

"Water commission"

means the Inyo County water commission.

"Water department"

means the Inyo County water department.

"Water table"

means the surface or interface between the zone where the soil is completely saturated with water and the zone where the soil is not completely saturated with water.

"Water Transfer or Transport"

means the conveyance of water via aqueduct, ditch, pipeline, flume, natural water course or tanker truck from one area to another: (1) pursuant to California Water Code (hereafter "Water Code") Section 1810 et seq.; or (2) pursuant to a sale or other method of exchange by a person other than the city of Los Angeles to the city of Los Angeles of surface water or groundwater extracted or diverted from within Inyo County by a person other than the city of Los Angeles; or (3) that involves movement of groundwater extracted by a person other than the city of Los Angeles from a groundwater basin located in whole or in part within the boundaries of Inyo County for use in an area outside of the groundwater basin; (4) that involves movement of groundwater extracted by a person other than the city of Los Angeles from within Inyo County from a groundwater basin partially located within Inyo County for use in an area within the same basin, but outside the boundaries of Inyo County; or (5) that involves groundwater being extracted by a person other than the city of Los Angeles from a groundwater basin within Inyo County which is used to replace an existing surface water use within the same groundwater basin, where such replaced surface water is used in an area outside of the groundwater basin or used within the same groundwater basin, but outside the boundaries of Inyo County, thus resulting in an indirect use of the extracted groundwater outside of the groundwater basin or outside of Inyo County.

(Ord. 1327, 3/17/2026)

A. Importance of Water. Adequate supplies of water are vital to the economy and environment of Inyo County and the health, safety and welfare of its citizens.

B. Water Exports. Since 1913, the city of Los Angeles, with significant environmental, economic and social consequences, has exported substantial amounts of surface water and groundwater from Inyo County.

C. Water Code Section 1810 Transfers. It is the policy of the state of California to facilitate the voluntary transfer of water and water rights where consistent with the public welfare of the place of export and the place of import. Under Water Code Section 1810 et seq., neither the state, nor any regional or local public agency may deny a bona fide transferor of water, as defined, the use of a water conveyance facility which has unused capacity, as defined, for the period of time for which that capacity is available, if fair compensation, as specified, is paid for that use, subject to conditions specified in Water Code Section 1810(a), (b), (c), and (d). Water Code Section 1810(d) provides that such a transfer of water may be denied if the use of a water conveyance facility will injure any legal user of water, or will unreasonably affect fish, wildlife, or other instream beneficial uses or will unreasonably affect the overall economy or the environment of the county from which the water is being transferred. Transfers of water from Inyo County undertaken pursuant to Water Code Section 1810 et seq., have the potential to affect the overall economy and/or the environment of Inyo County.

D. Proposed Water Transfers. In addition to water exports by the city of Los Angeles, proposals have been made involving the export of groundwater extracted from within Inyo County via the Los Angeles Aqueduct under Water Code Section 1810, the sale of groundwater extracted from within Inyo County to the city of Los Angeles, the extraction and export of groundwater from a groundwater basin located in whole or in part in Inyo County, and the Water Transfer or Transport of groundwater extracted from within Inyo County from a groundwater basin located in part in Inyo County for use in an area within the same basin, but outside the boundaries of Inyo County.

E. Importance of Groundwater. Groundwater underlying Inyo County has been and will continue to be an important source of water for agricultural, domestic, municipal, environmental and other purposes.

F. Inyo County/Los Angeles Water Agreement. In 1997, an agreement between the county of Inyo and the city of Los Angeles, which provides for management of the city of Los Angeles' water gathering activities (including groundwater extraction and surface water diversion) within Inyo County, was entered as a final order in Inyo County Superior Court, Case Number 12908 (hereinafter, "Inyo/Los Angeles Water Agreement"). The Inyo/Los Angeles Water Agreement provides for cooperative management of Los Angeles' water gathering activities by the county of Inyo and the city of Los Angeles in a manner that protects the environment of Inyo County. Nothing in this chapter shall be interpreted to affect or otherwise limit the rights of the city of Los Angeles to extract groundwater or change its surface water management practices in accordance with the Inyo/Los Angeles Water Agreement.

G. Water Sales to Los Angeles. In January 1998, the city of Los Angeles and the county of Inyo (through the Inyo County/Los Angeles standing committee) agreed that "[T] he City of Los Angeles will not enter into any agreement to purchase or otherwise acquire water extracted or diverted from within Inyo County unless it has been first informed by the County that the County and the seller have entered into an agreement which provides for the management of the extraction or diversion of the water in a manner that insures the protection of the County's environment and economy. If after such notification, the City of Los Angeles enters into an agreement with the seller to purchase water, the purchase agreement will specifically require, as a continuing condition of the purchase of any water, that the seller be in full compliance with the provisions of the agreement with the County."

H. Economy and Environment of Inyo County. A Water Transfer or Transport has the potential to adversely affect the economy and environment of Inyo County.

I. Authority to Regulate. Existing law provides the county of Inyo with authority to protect the health, safety and welfare of its citizens and to protect public trust resources through the regulation of a Water Transfer or Transport.

J. Need for Regulation. It is essential for the protection of the health, safety and welfare of the citizens of Inyo County, and the public benefit of the state, that a Water Transfer or Transport be regulated in a manner that provides for the protection of the overall environment and economy of Inyo County.

(Ord. 1327, 3/17/2026)

It is the purpose and intent of this chapter to establish an effective policy that will help ensure that the overall economy and the environment of Inyo County are protected from the impacts of a Water Transfer or Transport.

(Ord. 1327, 3/17/2026)

A. Actions Subject to this Chapter. Any person who proposes a Water Transfer or Transport described below shall be subject to the provisions of this chapter.

B. Exemptions. A Water Transfer or Transport described below shall be exempt from the application of this chapter (Chapter 7.02):

1. A Water Transfer or Transport by the city of Los Angeles from Inyo County, provided that the source of the transferred or transported water is groundwater extracted or surface water diverted from within Inyo County by the city of Los Angeles in accordance with the Inyo/Los Angeles Water Agreement, and is not a purchase or acquisition of water subject to the agreement described in Section 7.02.005.G;

2. A groundwater banking and associated groundwater extraction project within Inyo County that is undertaken by the city of Los Angeles;

3. A Water Transfer or Transport during a period of emergency within Inyo County declared pursuant to California Government Code Section 8558 that is directly related to the reason or basis for the declaration of the emergency, and that is undertaken in order to prevent or mitigate injury to people, or the flooding or damaging of property within Inyo County;

4. A Water Transfer or Transport in the form of manufactured or processed goods or products, agricultural products, or in bottles or any other portable containers including tanker trucks, provided the total Water Transfer or Transport via tanker truck or trucks does not exceed one acre foot during a one-year period; and

5. A Water Transfer or Transport extracted or diverted from outside of the boundaries of Inyo County.

C. Preexisting Uses.

1. A preexisting use that was occurring on October 27, 1998 (the effective date of Ordinance No. 1004) may only continue as long as the Water Transfer or Transport meets all of the criteria listed below. A Water Transfer or Transport which does not meet all of the criteria) shall not be considered a preexisting use and shall be subject to the provisions of this chapter.

a. The Water Transfer or Transport has been and continues to be conducted in a manner is substantially similar to the Water Transfer or Transport that occurred during the one-year period immediately prior to October 27, 1998.

b. The Water Transfer or Transport is accomplished by means of substantially the same conveyance facility as was used during the one-year period immediately prior to October 27, 1998.

c. The Water Transfer or Transport is from substantially the same geographical area of the groundwater basin as during the one-year period immediately prior to October 27, 1998.

d. The Water Transfer or Transport does not exceed either the highest instantaneous rate, or the highest annual total quantity, of water that was transferred or transported within the 20-year period immediately prior to October 27, 1998.

e. The Water Transfer or Transport will result in the use of the transferred or transported water in substantially the same manner and in substantially the same area as it was used during the one-year period immediately prior to October 27, 1998.

2. A preexisting use lawfully occurring after October 27, 1998, but before the effective date of the ordinance codified in this chapter under a permit granted under Ordinance 1004 may continue under the terms and conditions of the permit granted under Ordinance 1004; however, the provisions of this chapter, including provisions pertaining to permit extensions, permit modifications, permit violations and permit expirations, shall apply to such permits.

D. Pending Applications. An application for a conditional use permit for a Water Transfer or Transport which has been submitted to the Inyo County planning department pursuant to Ordinance 1004 subsequent to March 1, 2026, or any application submitted to the Inyo County planning department pursuant to Ordinance 1004 prior to March 1, 2026 that has not been deemed complete by the Inyo County planning department as of March 1, 2026, shall be deemed an application for a Water Transfer or Transport permit submitted to the water department and shall processed and either granted or denied in accordance with the provisions of this chapter.

(Ord. 1327, 3/17/2026)

Any person who proposes a Water Transfer or Transport as defined in Section 7.02.000 shall, prior to the commencement of the Water Transfer or Transport, first apply for and obtain from the water commission a Water Transfer or Transport permit.

(Ord. 1327, 3/17/2026)

Any Water Transfer or Transport which is specified in this chapter shall be approved or disapproved only upon filing an application in proper form and in accordance with the procedure hereinafter set forth.

(Ord. 1327, 3/17/2026)

The water commission shall hear and decide every application for a Water Transfer or Transport permit and, after a hearing, may authorize approval of the permit if it finds that the issuance of the permit would be in conformance with the provisions of this chapter. Notice of the hearing shall be given pursuant to the requirements for hearings set forth in this chapter.

(Ord. 1327, 3/17/2026)

Each applicant for Water Transfer or Transport permit pursuant to this chapter shall specify in the application the duration of term of the permit requested. The water commission, in consideration of the relationship of the term of the permit to the potential for the Water Transfer or Transport to unreasonably affect the overall economy or environment of Inyo County, shall determine the term of the permit. The approval of the permit may be made contingent upon the written acceptance and continued observance of conditions specified by the water commission. Once a Water Transfer or Transport permit is approved, all of the conditions specified in the approval shall become operative, and the violation of any of them shall constitute a violation of this chapter.

(Ord. 1327, 3/17/2026)

Unless a different period of time is specified among the conditions of approval, the approval of a Water Transfer or Transport permit shall lapse and be void unless the approved Water Transfer or Transport is commenced or construction necessary and incident to its commencement is started within one year of the date of its approval. The water commission may, following a hearing, extend the life of any Water Transfer or Transport permit for additional one-year periods upon application filed prior to expiration of the permit.

(Ord. 1327, 3/17/2026)

The director of the Inyo County water department shall establish the form of applications and of appeal forms required by this chapter, and may specify the data to be furnished along with an application or appeal form to assure the proper consideration of the matter involved and for the permanent record. An application for a Water Transfer or Transport permit shall be made on the form provided by the water department. Every application for a Water Transfer or Transport permit shall be submitted to the water department.

(Ord. 1327, 3/17/2026)

Every application for a Water Transfer or Transport permit shall include verification by the applicant attesting to the truth and correctness of all the facts and information presented in the application.

(Ord. 1327, 3/17/2026)

No application shall be accepted, and no Water Transfer or Transport permit shall be granted, unless the applicant is in full compliance with all requirements of this title and all applicable fees established by the board are paid to the county. Every such fee or expense payment shall be deposited with the county treasurer.

A. Amount of Application Deposit Fee. An application deposit fee shall be established by the board. The application deposit fee shall be based upon the estimated cost to the county of processing the application.

B. Fee Agreement. Each applicant shall enter into an agreement with the county wherein the applicant agrees to promptly pay any costs to be incurred by the county in processing the application or in defending a legal challenge to the issuance of a Water Transfer or Transport permit that are in excess of the application deposit fee and wherein the county agrees to promptly refund any fee collected by the county from the applicant which is in excess of the cost to the county of processing the application or defending the issuance of a permit. The Fee Agreement (and any Water Transfer or Transport permit) shall also provide that the applicant or a successor shall pay the county for the costs incurred by the County in: (1) conducting any monitoring, groundwater management or reporting described in Section 7.02.125 and for any costs incurred by the county in reviewing the results of such monitoring, management and/or reporting; and (2) implementing any mitigation measures the applicant or a successor is ordered to implement pursuant to Section 7.02.130.

C. Penalty. The fees set forth above shall be doubled as a penalty with respect to any application filed in order to bring an existing illegal use or activity into conformance with this chapter.

(Ord. 1327, 3/17/2026)

The requirement of a fee to accompany an application or an appeal may be waived by the board of supervisors when an application or appeal is filed by a public agency, a city, the state, or the federal government.

(Ord. 1327, 3/17/2026)

No application for a Water Transfer or Transport permit which is substantially the same as an application that has been denied may be submitted within one year from the date of the final order of denial, except if the water department reports to the water commission that the applicant has submitted new evidence or proof of changed conditions which justify the submission of a new application.

(Ord. 1327, 3/17/2026)

Upon receipt in proper form of any application filed pursuant to this chapter, the date for the public hearing on the application shall be set by the water department. Notice shall be given to the time and place of such public hearing by at least one publication in a newspaper of general circulation in the county. The applicant, and the appellant, in the case of appeal, shall be notified in writing of the time and place of the hearing.

(Ord. 1327, 3/17/2026)

Following the submittal of an application for Water Transfer or Transport permit, the water department shall determine the area likely to be impacted by the extraction of groundwater that would be permitted. Once this determination has been made by the water department, prior to the public hearing on the application, the water department shall mail notice of the public hearing to the owners of all properties as shown on the last adopted tax roll of the county which are located within the area of impact as determined by the water department. Notice of the time and place of the hearing shall be given not less than 10 days prior to the date thereof and further notice shall be as provided by law.

(Ord. 1327, 3/17/2026)

Any failure to give notice as required by this title or any irregularity in connection therewith or in any procedure required by this title shall not invalidate the proceedings if there has been compliance with the minimum notice requirements of California state law.

(Ord. 1327, 3/17/2026)

At any public hearing held pursuant to this chapter, the water commission may order the hearing to be continued by publicly announcing the time and place of continuance, and no further notice thereof shall be required.

(Ord. 1327, 3/17/2026)

An appeal may be taken to the water commission as a result of a decision by the water department or to the county board of supervisors as a result of a decision by the water commission on an application for a Water Transfer or Transport permit. Such an appeal must be filed within 15 calendar days after the date of action by either the water department or the water commission. The appeal may be taken by any person beneficially interested, or by any public officer, board or agency affected, by filing with the board clerk a written notice specifying the grounds for the appeal. Any member of the county supervisors may within the same period call for a review of any such action by notice to the board clerk and such notice shall have the same effect as an appeal, but shall require no fee. Filing of an appeal shall stay all proceedings in furtherance of the action appealed.

(Ord. 1327, 3/17/2026)

Upon notice by the board clerk that an appeal has been filed, the water commission shall make available for the board of supervisors all documents constituting the record upon which the action appealed was taken. The water commission shall be represented by the water department at the hearing before the board of supervisors on the appeal, in order to make known the reasons for its decision.

(Ord. 1327, 3/17/2026)

The water commission or board of supervisors shall give notice of the time and place at which the hearing will be held on any appeal filed pursuant to this chapter to the applicant, to the appellant, to the water commission and to any other person requesting such notice and depositing with the board clerk a self-addressed, stamped envelope for that purpose, in addition to the requirements of state law.

(Ord. 1327, 3/17/2026)

The water commission or board of supervisors, at the conclusion of the hearing on any appeal filed pursuant to this chapter, may sustain, modify or overrule the action of the director of the water department or of the water commission in the matter, or may refer any such matter back to the director of the water department or to the water commission. The final order of the board of supervisors or water commission on any such appeal shall be effective forthwith.

(Ord. 1327, 3/17/2026)

It is the duty of the Water Commission to assure the proper administration of this chapter, and the water commission shall have the power to establish such policies, rules and regulations not in conflict with the state law as are necessary for that purpose. Additionally, the water commission shall serve, as required by Section 15.12.040 of the Inyo County Code, as the environmental review board and lead environmental agency for the purpose of the CEQA on any application for a Water Transfer or Transport permit.

(Ord. 1327, 3/17/2026)

Upon receipt of a written complaint, or based upon monitoring results or other information, the director of the water department shall process violations of this chapter as specified in Title 22 of this code. (Code Enforcement).

(Ord. 1327, 3/17/2026)

A. Findings. A permit for a Water Transfer or Transport shall be approved only if the water commission, in consideration of the recommendations submitted by the water department, finds that the proposed Water Transfer or Transport to be undertaken (subject to proposed conditions to be placed upon the Water Transfer or Transport) will not unreasonably affect the overall economy of Inyo County and will not unreasonably affect the environment of Inyo County.

B. Adverse Effect on the Economy or Environment. A proposed Water Transfer or Transport shall be found by the water commission to unreasonably affect the overall economy of Inyo County or to unreasonably affect the environment of Inyo County if the commission finds that the proposed Water Transfer or Transport including all proposed conditions and mitigation measures, will cause a significant adverse effect or effects on the overall economy or the environment of the county. A determination of whether or not the proposed water transfer will have a significant adverse effect, or whether a mitigation measure or measures will reduce such a significant effect to a less than a significant level, shall be made by reference to the analytical model of CEQA (California Public Resources Code Section 21000 et seq.), its guidelines and relevant case law.

C. Economy. In determining whether a proposed Water Transfer or Transport will unreasonably affect the overall economy of Inyo County, all relevant factors shall be considered, including, but not limited to, potential injuries to legal users of water in the groundwater basin and the county, direct or indirect economic impacts to suppliers, service providers and others in the county, impacts to the tax base of the county, and the cumulative effects of the proposed water transfer when considered together with the effects of past Water Transfers or Transports, past surface and groundwater exports, proposed economic mitigation measures, as well as the effects of approved or anticipated future water transfers, transports and exports, on the county's overall economy.

D. Environment. In determining whether a proposed Water Transfer or Transport will unreasonably affect the environment of Inyo County, all relevant factors shall be considered, including, but not limited to, effects on fish, wildlife, and other instream uses, effects on water levels in wells, effects on springs and seeps, effects on riparian and groundwater dependent vegetation, effects on rare or endangered plant or animal species, effects on surface water features, effects on public trust resources, recharge to the groundwater basin, effects on the groundwater storage capacity of the basin, potential for overdraft, potential for subsidence, effects on water quality, the capability of the proposed monitoring, groundwater management and/or reporting program to detect and avoid significant adverse impacts and the cumulative effects of the proposed Water Transfer or Transport within the effected groundwater basin, when considered together with the effects of past Water Transfers and Transports and water exports, as well as approved and anticipated future Water Transfers and Transports and water exports from the affected groundwater basin, on the environment.

E. Consistency with Groundwater Management Plan Adopted Pursuant to the Sustainable Groundwater Management Act, Water Code Section 10720, et seq. (SGMA). The water commission shall not approve a Water Transfer or Transport permit that involves groundwater pumping that is regulated pursuant to a groundwater management plan adopted under SGMA unless the water commission finds that the groundwater pumping will be conducted consistent with the groundwater management plan.

F. Evidence. Each finding required to be made by the water commission pursuant to this chapter shall be based upon substantial evidence and shall contain a description of the evidence that supports the finding.

(Ord. 1327, 3/17/2026)

The water commission, in consideration of the relevant recommendations submitted by the water department, shall approve and incorporate, as appropriate, a monitoring, groundwater management and/or reporting program into each Water Transfer or Transport permit it approves. The monitoring, groundwater management and/or reporting program shall be of such scope and extent as the water commission finds to be necessary to ensure that the proposed Water Transfer or Transport will not unreasonably affect the overall economy or the environment of the county. In determining the scope of a monitoring, groundwater management and/or reporting program, the ability of the proposed program to detect and avoid potential significant adverse effects before such effects occur shall be considered. The monitoring and/or reporting portion of the program shall be in compliance with Chapter 15.44 of this code. The groundwater management and/or reporting program may include, but shall not be limited to, instream flow measurements, reports of the amounts of surface water diverted arid/or amounts of groundwater pumped, monitoring of wells, monitoring of groundwater levels, monitoring of spring and seeps, monitoring of vegetation, wildlife, fish and economic effects and thresholds and/or trigger points which, if reached, will control the extraction of groundwater.

(Ord. 1327, 3/17/2026)

A. Modification by Request. Any person who has been granted a Water Transfer or Transport permit pursuant to this chapter may submit an application for a modification of the permit. Any such application shall be submitted and processed as provided in the same manner as an application for a Water Transfer or Transport permit.

B. Modification for Cause.

1. In the event that evidence obtained through the monitoring and/or reporting program, or other evidence, indicates that a Water Transfer or Transport that is a preexisting use lawfully occurring on October 27, 1998 no longer meets the criteria for such a preexisting use or that such use has unreasonably affected, or has the potential to unreasonably affect, the overall economy or the environment of the county, the water commission shall conduct a noticed public hearing into the matter. If at the conclusion of the hearing, the water commission finds that an existing preexisting use lawfully occurring on October 27, 1998 no longer meets the criteria for a preexisting use and/or if continued, would cause an unreasonable effect on the overall economy or the environment of the county, the commission shall find that such Water Transfer or Transport is no longer a preexisting use and that the use must be terminated. In the event of such termination, the user may apply for a Water Transfer or Transport in accordance with the provisions of this chapter.

2. In the event that evidence obtained through the monitoring and/or reporting program, or other evidence, indicates that a Water Transfer or Transport conducted under a permit granted pursuant to Ordinance 1004 or pursuant to this chapter has unreasonably affected, or has the potential to unreasonably affect, the overall economy or the environment of the county, or that there has been a failure to comply with the provisions of the permit, the water commission shall conduct a noticed public hearing into the matter. If at the conclusion of the hearing, the commission finds that the Water Transfer or Transport has unreasonably affected, or has the potential to unreasonably affect, the overall economy or the environment of the county, the commission shall modify the provisions of the permit to the extent that it finds to be necessary to avoid the occurrence of such an effect. If the commission finds that the Water Transfer or Transport has unreasonably affected the overall economy or the environment of the county, the commission shall order the implementation of such mitigation measures as it finds to be necessary to reduce the level of the effect to less than significant.

C. Revocation. At the conclusion of the public hearing described in subsection B.2 above, the water commission may revoke a permit granted pursuant to Ordinance 1004 or pursuant to this chapter if it finds that the Water Transfer cannot be continued without causing an unreasonable effect on the overall economy or environment of Inyo County, or if the water commission finds that there has been a failure to reasonably comply with the terms of the permit. In the event that the water commission revokes a permit, the commission may order the former permittee to implement such work as the commission finds is necessary to mitigate any significant adverse effects caused by the Water Transfer or Transport undertaken by the former permittee.

(Ord. 1327, 3/17/2026)

A. Preexisting Uses and Existing Water Transfer or Transport Permits. During the term of the permit, any beneficially interested party may, upon payment of any required fee, challenge the ongoing Water Transfer or Transport that is a preexisting use lawfully occurring on October 27, 1998 or that is subject to a permit granted pursuant to Ordinance 1004 or pursuant to this chapter based on allegations that one or more of the following circumstances exists:

1. A preexisting use lawfully occurring on October 27, 1998 no longer meets the criteria for a preexisting use and/or that such use has unreasonably affected, or has the potential to unreasonably affect, the overall economy or the environment of the county;

2. There has been or is an ongoing violation of one or more conditions of an approved permit; or

3. The Water Transfer or Transport pursuant to the permit has unreasonably affected the overall economy or the environment of the county.

B. No Existing Water Transfer or Transport Permit. In addition to the county's own enforcement rights (see Section 7.02.115), any beneficially interested party may challenge a Water Transfer or Transport that is not being undertaken pursuant to an approved Water Transfer or Transport permit based upon an allegation that a Water Transfer or Transport permit is required pursuant to this chapter.

C. Process. A challenge pursuant to this section shall be commenced by filing with the water commission a signed written statement setting forth the challenge on a form prescribed by the water department, setting forth the basis of the party's beneficial interest and the statement shall be accompanied by the required fee. The statement shall allege all circumstances pertinent to the information required in subsection A or B above, and shall generally describe facts in support of those alleged circumstances. Within 10 days of receipt of a challenge in compliance with the foregoing requirements, the water department shall give notice of the challenge to the person undertaking the Water Transfer or Transport, the challenging party, all affected agencies and any interested party that has requested such notice. Within a reasonable time after of the receipt of the challenge, the water department shall complete a review of the facts alleged in the challenge and based upon this review, shall make a determination whether sufficient evidence has been presented to warrant a hearing by the commission on the challenge. A notice of this determination, together with the date and time of public hearing by the commission on the challenge, if applicable, shall be provided to the person undertaking the Water Transfer or Transport, the challenging party, all affected agencies and any interested party that has requested such notice. Any public hearing on the challenge shall be conducted as provided in this chapter.

1. If the challenge pertains to a Water Transfer or Transport undertaken pursuant to a Water Transfer or Transport permit, the water commission's review shall be as set forth in this Section 7.02.135.

2. If the challenge pertains to a Water Transfer or Transport that is not undertaken pursuant to a permit approved as provided in this chapter, the water commission shall determine whether such a permit is required. If the commission finds that a Water Transfer or Transport permit is required, and/or previously required a Water Transfer or Transport permit, and if the commission finds that the Water Transfer or Transport caused an unreasonable effect on the overall economy or environment of Inyo County, in addition to any other penalties that may be imposed for violation of this code, the commission may order the person who undertook the Water Transfer or Transport to implement such work as the commission finds is necessary to mitigate any significant adverse effects caused by the Water Transfer or Transport undertaken by the person.

D. Standard of Proof. The standard for proof in any such challenge shall be substantial evidence. Evidence may be provided by the beneficially interested party that submitted the challenge, the water department and/or by the person or entity undertaking the Water Transfer or Transport.

E. Appeals. Appeals of a determination by the water department or of a water commission decision may be made as provided in this chapter for other decisions of the water department or water commission (see Sections 7.02.090 through 7.02.105).

(Ord. 1327, 3/17/2026)