On page 81, after line 18, insert the following:

"Sec. 3057.  2018 c 2 s 3018 (uncodified) is amended to read as follows:

Water Irrigation Efficiencies Program (30000740)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation is provided solely for technical assistance and grants to conservation districts for the purpose of implementing water conservation measures and irrigation efficiencies. The department and the state conservation commission shall give preference to projects located in the 16 fish critical basins, other water-short or drought impacted basins, and basins with significant water resource and instream flow issues. Projects that are not within the basins described in this subsection are also eligible to receive funding.

(2) Conservation districts statewide are eligible for grants listed in subsection (1) of this section. A conservation district receiving funds shall manage each grant to ensure that a portion of the water saved by the water conservation measure or irrigation efficiency will be placed as a purchase or a lease in the trust water rights program to enhance instream flows. The proportion of saved water placed in the trust water rights program must be equal to the percentage of the public investment in the conservation measure or irrigation efficiency. The percentage of the public investment may not exceed eighty-five percent of the total cost of the conservation measure or irrigation efficiency.

(3) Up to $300,000 of the appropriation in this section may be allocated for the purchase and installation of flow meters that are implemented in cooperation with the Washington state department of fish and wildlife fish screening program authorized under RCW 77.57.070.

State Building Construction Account—State. . . .(($4,000,000))

      $6,500,000

Prior Biennia (Expenditures). . . .$0

Future Biennia (Projected Costs). . . .$0

TOTAL. . . .(($4,000,000))

     $6,500,000"

On page 82, after line 13, insert the following:

"Sec. 4002.  2018 c 2 s 4002 (uncodified) is amended to read as follows:

Aviation Revitalization Loans (92000003)

The appropriation in this section is subject to the following conditions and limitations:

(1) This appropriation is provided solely for deposit into the public use general aviation airport loan revolving account created in section 7028 of this act for direct loans to political subdivisions of the state and privately owned airports for the purpose of improvements at public use airports that primarily support general aviation activities.

(2) The department must convene a community aviation revitalization board to develop criteria for selecting loan recipients, to develop a process for evaluating applications, and to make decisions. The board must consist of the capital budget chair and ranking minority member of the capital budget committee of the house of representatives and the senate ways and means committee, and a representative from both the department of transportation's aviation division and the department of commerce. The board must also consist of the following members appointed by the secretary of transportation: One port district official, one county official, one city official, one representative of airport managers, and one representative of pilots. The chair of the board must be selected by the secretary of transportation. The members of the board must elect one of their members to serve as vice chair. The director of commerce and the secretary of transportation must serve as nonvoting advisory members of the board.

(3) The board may provide loans to privately owned airports for the purpose of airport improvements only if the state is receiving commensurate public benefit, such as guaranteed long-term public access to the airport as a condition of the loan. For purposes of this subsection, "public use airports that primarily support general aviation activities" means all public use airports not listed as having more than fifty thousand annual commercial air service passenger enplanements as published by the federal aviation administration.

(4) An application for loan funds under this section must be made in the form and manner as the board may prescribe. When evaluating loan applications, the board must prioritize applications that provide conclusive justification that completion of the loan application project will create revenue-generating opportunities. The board is not limited to, but must also use, the following expected outcome conditions when evaluating loan applications:

(a) A specific private development or expansion is ready to occur and will occur only if the aviation facility improvement is made;

(b) The loan application project results in the creation of jobs or private sector capital investment as determined by the board;

(c) The loan application project improves opportunities for the successful maintenance, operation, or expansion of an airport or adjacent airport business park;

(d) The loan application project results in the creation or retention of long-term economic opportunities; and

(e) The loan application project results in leveraging additional federal funding for an airport.

(5) The repayment of any loan made from the public use general aviation airport loan revolving account under the contracts for aviation loans must be paid into the public use general aviation airport loan revolving account.

State Taxable Building Construction Account—State. . . .(($5,000,000))

      $2,500,000

Prior Biennia (Expenditures). . . .$0

Future Biennia (Projected Costs). . . .$0

TOTAL. . . .(($5,000,000))

     $2,500,000"

On page 1, line 8 of the title, after "3015," insert "3018," and after "4001," insert "4002,"

EFFECT: (1) Increases the appropriation for the Water Irrigation Efficiencies Program to provide a $2.5 million grant to the Union Gap Irrigation District to mitigate potential asset loss associated with the Rattlesnake Ridge landslide in Yakima County. The grant must require that the Union Gap Irrigation District should pursue funding or reimbursement of costs from potential sources of reimbursement. The grant must further require that, if total proceeds exceed total mitigation costs for this work, the irrigation district must reimburse the difference up to the amount paid by the State to the State Conservation Commission.

(2) Decreases the appropriation for Aviation Revitalization Loans from $5 million to $2.5 million.

FISCAL EFFECT: $0 state bonds