"NEW SECTION.  Sec. 3   (1) The legislature finds that many state agencies and local governments administer marine protected areas, preserves, conservation areas, and other similar geographically based area designations that are a valuable means to protect and enhance Puget Sound's marine resources. The legislature further finds that climate change impacts and increased population and development in the Puget Sound basin will place further stresses upon sustaining the biological diversity and ecosystem health of Puget Sound.
     (2) It is the intent of the legislature that state and local actions intended to protect, conserve, and manage marine life and resources be conducted in a coordinated manner, use the best available science, consider the projected impacts on Puget Sound's marine areas from climate change, and contribute to the recovery of the Puget Sound's environmental health by 2020.
     (3) It is the purpose of this act to:
     (a) Create a strategic network of marine managed areas that contribute to conserving the biological diversity and ecosystem health of Puget Sound and that maximizes the effectiveness of the role of marine managed areas in achieving the recovery of Puget Sound's health by 2020;
     (b) Strengthen the coordination of marine managed areas among multiple state agencies and local governments and align these efforts with the work of the Puget Sound partnership to recover the Puget Sound's health by 2020;
     (c) Provide for management and designation of marine managed areas programs on an ecosystem basis and incorporate the best available scientific information into these programs;
     (d) Adopt a plan that builds a comprehensive system of marine managed areas in Puget Sound, adopts goals and benchmarks for maintaining the diversity of marine life and resources in Puget Sound, and is based upon anticipated threats and stressors such as climate change impacts;
     (e) Recognize the interrelationship of the marine ecosystem throughout the Pacific Northwest, and the multiple entities, including local, state, provincial, and federal governments, as well as tribal governments and first nations, that are involved in managing marine managed areas; and
     (f) Adopt codified criteria and procedures applicable to the aquatic reserve program on state-owned aquatic lands.

Sec. 4   RCW 90.71.010 and 2007 c 341 s 2 are each amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Action agenda" means the comprehensive schedule of projects, programs, and other activities designed to achieve a healthy Puget Sound ecosystem that is authorized and further described in RCW 90.71.300 and 90.71.310.
     (2) "Action area" means the geographic areas delineated as provided in RCW 90.71.260.
     (3) "Benchmarks" means measurable interim milestones or achievements established to demonstrate progress towards a goal, objective, or outcome.
     (4) "Board" means the ecosystem coordination board.
     (5) "Council" means the leadership council.
     (6) "Environmental indicator" means a physical, biological, or chemical measurement, statistic, or value that provides a proximate gauge, or evidence of, the state or condition of Puget Sound.
     (7) "Implementation strategies" means the strategies incorporated on a biennial basis in the action agenda developed under RCW 90.71.310.
     (8) "Marine managed area" means a named, discrete geographic marine or estuarine area designated by statute, ordinance, resolution, or administrative action, whose designation is intended to protect, conserve, or otherwise manage the marine life and resources within the area.
     (9) "Nearshore" means the area beginning at the crest of coastal bluffs and extending seaward through the marine photics zone, and to the head of tide in coastal rivers and streams. "Nearshore" also means both shoreline and estuaries.
     (((9))) (10) "Panel" means the Puget Sound science panel.
     (((10))) (11) "Partnership" means the Puget Sound partnership.
     (((11))) (12) "Plan" means the Puget Sound marine managed areas plan developed under section 5 of this act.
     (13) "Puget Sound" means Puget Sound and related inland marine waters, including all salt waters of the state of Washington inside the international boundary line between Washington and British Columbia, and lying east of the junction of the Pacific Ocean and the Strait of Juan de Fuca, and the rivers and streams draining to Puget Sound as mapped by water resource inventory areas 1 through 19 in WAC 173-500-040 as it exists on July 1, 2007.
     (((12))) (14) "Puget Sound partner" means an entity that has been recognized by the partnership, as provided in RCW 90.71.340, as having consistently achieved outstanding progress in implementing the 2020 action agenda.
     (((13))) (15) "Watershed groups" means all groups sponsoring or administering watershed programs, including but not limited to local governments, private sector entities, watershed planning units, watershed councils, shellfish protection areas, regional fishery enhancement groups, marine ((resource[s])) resources committees including those working with the Northwest straits commission, nearshore groups, and watershed lead entities.
     (((14))) (16) "Watershed programs" means and includes all watershed-level plans, programs, projects, and activities that relate to or may contribute to the protection or restoration of Puget Sound waters. Such programs include jurisdiction-wide programs regardless of whether more than one watershed is addressed.

NEW SECTION.  Sec. 5   A new section is added to chapter 90.71 RCW to read as follows:
     (1) The partnership shall prepare a Puget Sound marine managed areas plan to coordinate and strengthen all of the marine managed areas programs managed by state agencies and local governments.
     (2) The chair of the council shall designate a work group on marine managed areas to prepare the plan. The work group shall include one or more members of the Puget Sound science panel, one of whom must chair the work group. The work group must include, but not be limited to, state agencies and local governments with regulatory jurisdiction over or that manage marine managed areas including, but not limited to, the department of natural resources, the department of fish and wildlife, the parks and recreation commission, and the department of ecology. The work group shall also include the state biodiversity council, created by executive order 04-02, or the biodiversity council's successor entity. The chair of the council shall also invite representatives of tribal governments, federal agencies, cities, counties, and nongovernmental organizations that have designated or have significant interests in the management of Puget Sound marine managed areas. The chair of the council may also invite representatives from other states and provinces and first nation and tribal governments with interests in marine managed areas in the Pacific Northwest to participate on the work group as observers.
     (3) The plan must include, but not be limited to:
     (a) Guidelines for identifying key species of concern, threats to these species, and threshold levels of protected habitat needed to recover these species and Puget Sound as a whole to health by 2020;
     (b) Guidelines for incorporating the best available scientific information when designating and managing marine managed areas;
     (c) Guidelines for managing areas on an ecosystem basis and for coordinating multiple programs and areas within the same biogeographical regions to achieve ecosystem-based management;
     (d) Benchmarks to measure progress toward the recovery of species and protected habitat;
     (e) Recommendations for adequate levels of funding for the designation, long-term management, and monitoring of the marine managed areas in the network;
     (f) Strategies to address the projected impacts to marine managed areas from population growth, existing and proposed upland and aquatic lands development, and storm water discharges to Puget Sound;
     (g) Strategies to prepare for and manage the impacts of climate change, including impacts due to sea level changes, salinity changes, water temperature, increased acidification, and changes in frequency and intensity of precipitation events affecting storm water discharges to marine waters;
     (h) An adaptive management component in which new information on the progress of implementing management goals for the individual marine managed areas and overall goals for all such areas, the contribution these areas are making toward the goals of recovering the health of Puget Sound by 2020, and climate change impacts may be considered and integrated into the designation and management of marine managed areas; and
     (i) Methodologies for synthesizing monitoring results with programmatic goals to inform decision making on subsequent designation and marine managed areas strategies and any necessary changes in implementation strategies to increase the effectiveness of the marine managed areas program in achieving the goal of recovering the Puget Sound's health by 2020.
     (4) The plan must also include comprehensive objectives for coordinating existing marine managed areas and designating additional areas to achieve a network of marine managed areas contributing to long-term conservation of important biota and marine ecosystems and recovery of Puget Sound by 2020. In developing the objectives the work group shall rely primarily upon existing plans and objectives relating to conservation of marine life in Puget Sound, and the program plans prepared by state agencies and local governments administering marine managed areas programs. The plan must also consider activities and uses within or adjacent to marine managed areas that are allowed under existing leases of state-owned aquatic lands issued under chapter 79.105 RCW.
     (5) The plan must be completed by July 1, 2010, and submitted to the council for its review and approval. The plan must be incorporated into the Puget Sound action agenda adopted under RCW 90.71.310. The council shall provide for public review and comment on the plan in a manner comparable to the other provisions of the Puget Sound action agenda. The council may, with the assistance of the work group, amend the plan from time to time using public review and comment procedures comparable to those that apply when other elements of the Puget Sound action agenda are revised.
     (6) The marine managed areas work group established under this section shall coordinate with the marine protected areas work group established in section 2 of this act. The marine managed areas work group is to focus primarily on the Puget Sound, while the marine protected areas work group established in section 2 of this act is to focus primarily on coastal waters as defined in RCW 43.143.020. The two work groups may share resources and expertise when appropriate.

NEW SECTION.  Sec. 6   (1) The work product delivered by the marine managed areas work group established in section 5 of this act must include at least one case study regarding how consistent standards, methods, or protocols that may aid governmental organizations with the future identification of marine managed areas can be developed.
     (2) The case study required by this section must be designed to analyze how and when future marine managed areas can or should be developed in urbanized areas where the purpose of the marine protected area is to protect the marine shoreline and adjacent upland environmental, cultural, or community values.
     (3) The case study required by this section must be located in an urban marine waterway located in Puget Sound adjacent to uplands areas available for public access that includes at least one park area developed, in part, with money from the Washington wildlife and recreation program that includes or is planning to include a seawall, walking paths, interpretive displays, and a cultural botanical display area and includes within the borders of the case study area at least one nearby area of state-owned aquatic lands currently under lease with the department of natural resources for use as an industrial marine repair facility capable of servicing marine vessels that are seventy-five feet or more in length.
     (4) Until the results of the case study required by this section are delivered to the leadership council of the Puget Sound partnership as part of the work product required by section 5 of this act, the city government with jurisdiction over uplands adjacent to the case study area is prohibited from allowing any shoreline uses or expansions not currently authorized for shorelines located within or adjacent to the case study area if the shoreline use or expansion is related to an industrial use capable of performing any of the following actions on marine vessels that are seventy-five feet or more in length: Construction, refurbishment, maintenance, repair, lay berthing, or demolition.

Sec. 7   RCW 79.105.210 and 2005 c 155 s 143 are each amended to read as follows:
     (1) The management of state-owned aquatic lands shall preserve and enhance water-dependent uses. Water-dependent uses shall be favored over other uses in state-owned aquatic land planning and in resolving conflicts between competing lease applications. In cases of conflict between water-dependent uses, priority shall be given to uses which enhance renewable resources, water-borne commerce, and the navigational and biological capacity of the waters, and to statewide interests as distinguished from local interests.
     (2) Nonwater-dependent use of state-owned aquatic lands is a low-priority use providing minimal public benefits and shall not be permitted to expand or be established in new areas except in exceptional circumstances where it is compatible with water-dependent uses occurring in or planned for the area.
     (3) The department shall consider the natural values of state-owned aquatic lands as wildlife habitat, natural area preserve, representative ecosystem, or spawning area prior to issuing any initial lease or authorizing any change in use. The department may withhold from leasing lands which it finds to have significant natural values, or may provide within any lease for the protection of such values. When withdrawing lands from leasing for the purposes of managing an aquatic reserve, the department shall be guided by the procedures and criteria of section 8 of this act.
     (4) The power to lease state-owned aquatic lands is vested in the department, which has the authority to make leases upon terms, conditions, and length of time in conformance with the state Constitution and chapters 79.105 through 79.140 RCW.
     (5) State-owned aquatic lands shall not be leased to persons or organizations which discriminate on the basis of race, color, creed, religion, sex, age, or physical or mental handicap.

NEW SECTION.  Sec. 8   A new section is added to chapter 79.105 RCW under a new subchapter heading of "aquatic reserve system" to read as follows:
     (1) The aquatic reserve system is established. The aquatic reserve system is comprised of those areas of state-owned aquatic lands designated by the department prior to the effective date of this section and any areas added to the system by order of the commissioner thereafter.
     (2) State-owned aquatic lands that have one or more of the following characteristics may be included by order of the commissioner in the system as an aquatic reserve:
     (a) The lands have been identified as having high priority for conservation, natural systems, wildlife, or low-impact public use values;
     (b) The lands have flora, fauna, geological, recreational, archaeological, cultural, scenic, or similar features of critical importance and have retained to some degree or reestablished its natural character;
     (c) The lands provide significant examples of native ecological communities;
     (d) The lands have significant sites or features threatened with conversion to incompatible uses; and
     (e) The lands have been identified by the Puget Sound science panel created in RCW 90.71.270 as critical to achieving recovery of Puget Sound by 2020.
     (3)(a) The commissioner shall adopt procedures for submission of reserve nominations and for public participation in the review of proposed reserves.
     (b) If, consistent with the best available scientific information, a reserve no longer meets the goals and objectives for which it was designated, and adaptive management has not been successful to meet the goals and objectives, the commissioner may by order modify the reserve boundaries or remove the area from reserve status.
     (c) The commissioner shall provide public participation procedures for the proposals.
     (4) In the designation and management of reserves within Puget Sound, as geographically defined in RCW 90.71.010, the commissioner shall be guided by the marine managed areas plan adopted under section 5 of this act. Within twenty-four months of the adoption of the marine managed areas plan under section 5 of this act, the department shall complete a review of existing management plans and pending reserve nominations for consistency with the guidelines and recommendations in the marine managed areas plan. The commissioner shall accord substantial weight to any recommendations provided by the Puget Sound partnership regarding the designation and management of reserves within Puget Sound.
     (5) Where the commissioner determines that management of the taking of fish, shellfish, or wildlife within or adjacent to the reserve would enhance the objectives for which the reserve has been created, the commissioner shall request that the fish and wildlife commission act pursuant to section 9 of this act to adopt supporting rules.
     (6) The aquatic reserve system must be coordinated with other marine managed areas, federally recognized marine protected areas, and related regulatory programs. The department shall:
     (a) Cooperate with other state agencies and local governments to manage state-owned aquatic lands consistently with the management of uses and activities in the same geographic areas by state parks, the department of fish and wildlife, the department of ecology, and other state agencies; and
     (b) Provide recommendations to local governments in updating their shoreline master programs and in sponsoring local marine park reserves or voluntary stewardship areas to seek consistent planning and management activities in areas adjacent to designated reserves.
     (7)(a) State agencies with authority over construction activities or water discharges in state waters or that otherwise implement programs that affect a designated aquatic reserve shall give special consideration to increasing protection and reducing and preventing pollution of these areas, consistent with the management objectives of the reserve.
     (b) The department should participate in any public processes regarding water discharge or construction permitting affecting aquatic reserves to aid other agencies in their understanding of the provisions of this subsection.

NEW SECTION.  Sec. 9   A new section is added to chapter 77.12 RCW to read as follows:
     (1) The commission may adopt rules governing the taking of fish, shellfish, or wildlife within or adjacent to an aquatic reserve designated by the department of natural resources under section 8 of this act, or other marine managed areas, as that term is defined in RCW 90.71.010. The commission shall give consideration within sixty days to any rule changes requested by the commissioner of public lands to support the purposes of an aquatic reserve.
     (2) This section is in addition to and does not limit the commission's authority to establish rules governing the taking of fish, shellfish, or wildlife under any other authority.

NEW SECTION.  Sec. 10   The Puget Sound partnership shall provide the plan required by section 5 of this act to the appropriate committees of the legislature by December 1, 2010, together with its recommendations for further policy legislation and budget recommendations to enhance Puget Sound marine managed areas programs.

Sec. 11   RCW 90.71.300 and 2007 c 341 s 12 are each amended to read as follows:
     (1) The action agenda shall consist of the goals and objectives in this section, implementation strategies to meet measurable outcomes, benchmarks, ((and)) identification of responsible entities, and the marine managed areas plan adopted under section 5 of this act. By 2020, the action agenda shall strive to achieve the following goals:
     (a) A healthy human population supported by a healthy Puget Sound that is not threatened by changes in the ecosystem;
     (b) A quality of human life that is sustained by a functioning Puget Sound ecosystem;
     (c) Healthy and sustaining populations of native species in Puget Sound, including a robust food web;
     (d) A healthy Puget Sound where freshwater, estuary, nearshore, marine, and upland habitats are protected, restored, and sustained;
     (e) An ecosystem that is supported by ground water levels as well as river and stream flow levels sufficient to sustain people, fish, and wildlife, and the natural functions of the environment;
     (f) Fresh and marine waters and sediments of a sufficient quality so that the waters in the region are safe for drinking, swimming, shellfish harvest and consumption, and other human uses and enjoyment, and are not harmful to the native marine mammals, fish, birds, and shellfish of the region.
     (2) The action agenda shall be developed and implemented to achieve the following objectives:
     (a) Protect existing habitat and prevent further losses;
     (b) Restore habitat functions and values;
     (c) Significantly reduce toxics entering Puget Sound fresh and marine waters;
     (d) Significantly reduce nutrients and pathogens entering Puget Sound fresh and marine waters;
     (e) Improve water quality and habitat by managing storm water runoff;
     (f) Provide water for people, fish and wildlife, and the environment;
     (g) Protect ecosystem biodiversity and recover imperiled species; and
     (h) Build and sustain the capacity for action.

Sec. 12   RCW 36.125.030 and 2007 c 344 s 4 are each amended to read as follows:
     (1) The Puget Sound ((action team, or its successor organization,)) partnership shall serve as the regional coordinating entity for marine resources committees created in the southern Puget Sound and the department of fish and wildlife shall serve as the regional coordinating entity for marine resources committees created for the outer coast.
     (2) The regional coordinating entity shall serve as a resource to, at a minimum:
     (a) Coordinate and pool grant applications and other funding requests for marine resources committees;
     (b) Coordinate communications and information among marine resources committees;
     (c) Assist marine resources committees to measure themselves against regional performance benchmarks;
     (d) Assist marine resources committees with coordinating local projects to complement regional priorities;
     (e) Assist marine resources committees to interact with and complement other marine resources committees, and other similar groups, constituted under a different authority; and
     (f) Coordinate with the Northwest Straits commission on issues common to marine resources committees statewide.

NEW SECTION.  Sec. 13   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2008, in the omnibus appropriations act, this act is null and void."