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california Water Today 121 measures are particularly important: Proposition 218, a constitutional amend- ment passed in 1996, mandated majority or supermajority votes for local general taxes, assessments, and “property-related” fees. Proposition 26, a constitutional amendment enacted in November 2010, raises voting requirements for most state and local regulatory fees—including fees designed to mitigate or remediate environmental harm—from a simple majority to a two-thirds majority. Proposition 218 has substantially complicated funding for flood control and stormwater programs, which now require direct voter approval to raise funds: a simple majority of property owners, or at least two-thirds of the general public.52 Although some Sacramento area agencies were able to win high voter approval for new assessments in the wake of Hurricane Katrina, some flood-prone Bay Area communities came up short.53 Water and wastewater utilities can still raise rates through a vote of their governing boards, although ratepayers can overturn them if a majority protests the increases. However, court interpreta- tions of Proposition 218 are restricting the flexibility of water and wastewater utilities to raise funds to support new development, which can complicate capital project funding (Hanak 2009b). And the courts are also calling into question the ability of groundwater management districts to charge pumping fees without a majority vote of the affected property owners or a two-thirds vote of the electorate (Pajaro Valley Water Management Agency v. Amrhein 2007; Great Oaks Water Company v. Santa Clara Valley Water District 2010). These decisions are problematic, as groundwater pumping charges are an important tool for managing overdraft. Proposition 26 affects regulatory fees, which are a natural way to fund environmental mitigation associated with the use of water resources or other activities that impair water bodies. Regulatory fees are typically surcharges on the activity in question, for instance a surcharge on a chemical that causes harm to the environment or public health. Regulatory fees are already used in California to fund programs related to the disposal of hazardous materials and the recycling of oil, among others.54 Under Proposition 26, regulatory fees with 52. For assessments, the requirement is a weighted majority of property owners. For property-related fees (such as payments for local stormwater control), an alternative to a majority of property owners is a two-thirds majority of the general electorate (Legislative Analyst’s Office 1996; Rueben and Cerdán 2003). 53. In 2007, the Sacramento Area Flood Control Agency and the West Sacramento Area Flood Control Agency passed new assessments with 82 percent and 70 percent affirmative vote of property owners, respectively. But in November 2008, the cities of Orinda and Burlingame lost with 62 percent and 64 percent of the popular vote, respectively. 54. See “Official Title and Summary” in the California Voter Guide for the November 2010 election: www.voterguide .sos.ca.gov/pdf/english/26-title-summ-analysis.pdf.