S-3296.2

SENATE BILL 5632

BySenators Honeyford and Holy

AN ACT Relating to investments in critical water infrastructure projects; adding a new chapter to Title 90 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

(2) The legislature further finds the lack of a secure water supply and adequate infrastructure exacerbates natural disasters, such as flooding and drought, and that Washington's rivers, lakes, and streams are threatened by pollution from existing development.

(3) The legislature, with this act, will make a historic $5,000,000,000 investment in critical water infrastructure projects using available federal funds and dedicating a constant portion of the omnibus capital appropriations act for water infrastructure needs. It is the intent of the legislature to enhance water security for the diverse inhabitants of Washington by making fiscally responsible investments in infrastructure projects that: Promote increased availability of water for out-of-stream beneficial uses; reduce the risk of flooding, protect against damage that may be caused by flooding, and restore areas where flooding has occurred; improve fish passage; and reduce stormwater pollution from existing development.

(1) "Department" means the department of ecology.

(2) "Preference" means, when referring to a project, that the project should be ranked more favorably than other projects that lack preferred characteristics. However, "preference" does not mean that the department must reject projects that lack preferred characteristics.

(3) "Priority" means, when referring to a project, that the project must be ranked more favorably than other projects.

(4) "Project" means infrastructure that meets the criteria for funding established in this chapter.

(5) "Sponsor" means a Washington state agency, a local government or other public entity in Washington, an agency of the United States government engaged in water supply or flood control activities in Washington, or a federally recognized Indian tribe with a reservation in Washington.

(1) Increasing the availability of water for out-of-stream beneficial uses;

(2) Reducing the risk of flooding, protecting against damage that may be caused by flooding, and restoring areas where flooding has occurred;

(3) Improving fish passage; or

(4) Reducing stormwater pollution from existing development.

(2) Prior to the submission of any application for a federal grant, loan, or other financial assistance program under P.L. 117-58 of 2021, the office of financial management must review and certify that the grant application meets the requirements of this chapter.

(2) The department shall begin accepting applications from sponsors on April 1st in each even-numbered year. The application submission period must remain open until October 1st of the same year.

(3) After the application submission period closes, the department shall distribute applications to the office of Columbia river, office of Chehalis basin, or fish passage barrier removal board, as appropriate, which must evaluate the applications and create ranked lists of projects for the objectives under section 4 of this act. The department must provide the ranked lists to the appropriate standing committees of the legislature before the commencement of the regular session of the legislature in each odd-numbered year.

(4) The department shall publish a list of approved projects based on appropriations made by the legislature and shall notify sponsors of approved projects after the adjournment sine die of the regular or special sessions of the legislature in each odd-numbered year.

(5) The department shall publish a list of approved projects after the adjournment sine die of the regular or special sessions of the legislature in an even-numbered year if the legislature makes an appropriation resulting in the funding of projects in an even-numbered year.

(6) Subject to the availability of amounts appropriated for this specific purpose, the department is authorized to provide funding to sponsors for projects that were approved. The department may not obligate funds from the Washington water infrastructure program account, Washington water infrastructure program bond account, or Washington water infrastructure program taxable bond account before the legislature has appropriated funds from these accounts for the purpose of funding projects under this chapter.

(7) A sponsor that is not approved may reapply during a subsequent application submission period in accordance with this section.

(1) A project must increase the availability of water for out-of-stream beneficial uses;

(2) The highest priority projects are those projects that implement the integrated plan, as defined under RCW 90.38.010, or satisfy the water supply needs identified under RCW 90.90.020;

(3) Preference must be given to projects that provide multiple benefits;

(4) Preference must be given to projects that mitigate impacts to fish and wildlife caused by the project;

(5) Preference must be given to projects that include practicable conservation measures to ensure that water is used efficiently; and

(6) The office of Columbia river may consider whether a project helps the state prepare for the effects of climate change.

(1) A project must reduce the risk of flooding, protect against damage that may be caused by flooding, or restore areas where flooding has occurred;

(2) The highest priority projects are those that implement the Chehalis basin strategy under RCW 43.21A.732;

(3) Preference must be given to projects that provide multiple benefits;

(4) Preference must be given to projects located in areas that historically have been at the greatest risk and most vulnerable to flooding;

(5) Preference must be given to projects that eliminate or minimize the risk of future damage or disruption to critical infrastructure, such as centers of commerce, emergency response systems, hospitals, and transportation corridors; and

(6) The office of Chehalis basin may consider whether a project helps the state prepare for the effects of climate change.

(1) A project must improve fish passage;

(2) The highest priority projects are those that satisfy the state's obligations under a court order; and

(3) Preference must be given to projects sponsored by a city or county.

(1) A project must reduce stormwater pollution from existing development;

(2) Preference must be given to projects that rely on low-impact development retrofit techniques; and

(3) Preference must be given to projects that have a high water quality benefit and address stormwater pollution from existing infrastructure.

(2) The reviewing authorities shall rank projects in a manner designed to provide funding for as many projects as practicable, while attempting to ensure that each project will receive sufficient funding to facilitate successful completion of the project.

(3) The reviewing authorities shall consider whether each project is consistent with the action agenda as defined under RCW 90.71.010, if applicable.

(4) Moneys made available under this chapter may not be used to acquire property through condemnation.

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