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AN ACT Relating to reforming water resource and water quality administration; amending RCW 43.27A.020, 43.27A.090, 43.27A.130, 43.27A.190, 43.20.230, 43.21A.020, 43.21A.067, 43.83B.040, 43.83B.210, 43.83B.220, 43.83B.230, 43.83B.345, 43.83B.365, 43.83B.400, 43.83B.405, 43.83B.410, 43.83B.415, 89.16.040, 89.16.045, 89.16.050, 89.16.055, 89.16.060, 89.16.070, 89.16.080, 89.30.055, 89.30.058, 89.30.070, 89.30.427, 90.03.005, 90.03.015, 90.03.030, 90.03.060, 90.03.070, 90.03.100, 90.03.110, 90.03.120, 90.03.130, 90.03.140, 90.03.160, 90.03.170, 90.03.190, 90.03.200, 90.03.210, 90.03.230, 90.03.240, 90.03.247, 90.03.250, 90.03.260, 90.03.270, 90.03.280, 90.03.290, 90.03.300, 90.03.310, 90.03.320, 90.03.330, 90.03.340, 90.03.345, 90.03.350, 90.03.360, 90.03.370, 90.03.380, 90.03.383, 90.03.386, 90.03.390, 90.03.430, 90.03.440, 90.03.470, 90.03.471, 90.03.600, 90.08.040, 90.08.050, 90.14.041, 90.14.043, 90.14.051, 90.14.061, 90.14.065, 90.14.091, 90.14.101, 90.14.111, 90.14.130, 90.14.150, 90.14.180, 90.14.190, 90.14.200, 90.14.215, 90.14.230, 90.16.060, 90.16.090, 90.22.010, 90.22.020, 90.22.030, 90.22.040, 90.22.060, 90.24.010, 90.24.030, 90.24.040, 90.24.050, 90.24.060, 90.38.010, 90.38.020, 90.38.030, 90.38.040, 90.38.050, 90.40.090, 90.42.020, 90.42.030, 90.42.040, 90.42.050, 90.42.080, 90.44.035, 90.44.050, 90.44.060, 90.44.070, 90.44.080, 90.44.090, 90.44.100, 90.44.110, 90.44.120, 90.44.130, 90.44.180, 90.44.200, 90.44.220, 90.44.230, 90.44.250, 90.44.400, 90.44.410, 90.44.410, 90.44.420, 90.44.430, 90.44.445, 90.44.450, 90.46.005, 90.46.020, 90.46.030, 90.46.040, 90.46.050, 90.54.010, 90.54.030, 90.54.040, 90.54.045, 90.54.050, 90.54.060, 90.54.100, 90.54.110, 90.54.120, 90.54.130, 90.54.140, 90.54.150, 90.54.160, 90.54.170, 90.54.190, 90.54.200, 90.54.900, 90.66.040, 90.66.050, 90.66.060, 90.66.070, and 90.66.080; reenacting and amending RCW 43.83B.300 and 90.42.010; adding new sections to chapter 43.27A RCW; creating a new section; recodifying RCW 43.21A.067; decodifying RCW 90.14.043; repealing RCW 43.21A.064; providing effective dates; providing an expiration date; and declaring an emergency.

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

PART I

COMMISSION CREATED

NEW SECTION. Sec. 1. There is hereby created a state commission to be known as the Washington water resources and water quality commission. The commission shall consist of two divisions: An eastern division with jurisdiction throughout the area of the state east of the crest of the Cascade mountains and including all of Skamania county and a western division with jurisdiction throughout the area of the state west of the crest of the Cascade mountains, exclusive of Skamania county. Each division shall be composed of five members appointed by the governor, with the consent of the senate.

The members shall serve four-year terms except for three of the initial members of the eastern division and two of the initial members of the western division as designated by the governor who shall serve two-year terms. The terms of the initial members shall begin September 1, 1995. At the first meeting of each division following September 1 of each year, each division shall choose one of its members to serve as chairperson for the ensuing year.

Each commissioner shall receive a salary as may be fixed by the governor in accordance with the provisions of RCW 43.03.040.

A member may be dismissed by the governor prior to the expiration of his or her term for cause.

NEW SECTION. Sec. 2. In making appointments to the board, the governor shall select persons with recognized expertise in water- related issues, including, for example, issues involving irrigation, hydroelectric production, fisheries, municipal and industrial supply, tribal interests, and water quality. In the eastern division, at least three of the members shall have a background in rural-related issues. In the western division, at least three of the members shall have a background in urban-related issues.

No elective state official, state officer, or state employee shall be a member of the commission. At the time of their appointment and thereafter during their respective terms of office, the members of the eastern division shall reside within the eastern jurisdiction and the members of the western division shall reside within the western jurisdiction. No more than two members of each division shall reside in the same county. No member shall be appointed for more than two consecutive terms.

NEW SECTION. Sec. 3. Any three commissioners of a division shall constitute a quorum for the transaction of any business, for the performance of any duty, or for the exercise of any power within the authority of the division. Any six commissioners of either division shall constitute a quorum for the transaction of any business, for the performance of any duty, or for the exercise of any power within the authority of the commission as a whole.

NEW SECTION. Sec. 4. The commission, acting as a whole, has the following powers and duties:

(1) The commission, by the adoption of rules, shall establish state-wide policy and guidelines regarding water resource and water quality management consistent with statutory law.

(2) The commission shall act as coordinator of water resource and water quality rules and guidelines of other state agencies to assure consistency with state-wide policies.

(3) The commission shall appoint a clerk for each division and employ other staff as may be necessary to carry on the administrative work of the commission and its two divisions. The division clerks shall have the authority to authenticate documents and other records of their division or the commission acting as a whole when required.

(4) The commission may appoint technical working groups and advisory interest group committees to assist it in carrying out its duties.

(5) The commission is the sole authority for approval of interbasin transfers which cross the jurisdictional boundary of the two divisions.

(6) The commission may conduct investigations, inquiries, or hearings, as appropriate. Such investigations, inquiries, or hearings may be conducted by or before any commissioner or any administrative law judge or other examiner designated by the commission. All investigations, inquiries, and hearings of the commission and all findings, orders, or decisions, made by a commissioner, when approved and confirmed by the commission shall be the orders or decisions of the commission.

NEW SECTION. Sec. 5. Each division of the commission has the following powers and duties:

(1) The division, by the adoption of rules, shall establish division policy and guidelines regarding water resource and water quality management consistent with statutory law and the rules adopted by the commission acting as a whole.

(2) The division shall review regional plans to ensure consistency between plans and to ensure consistency and adherence to state-wide and division policy and statute law.

(3) The division may appoint technical working groups and advisory interest group committees to assist it in carrying out its duties.

(4) The division is the sole authority for approval of interbasin transfers within the jurisdiction of the division.

(5) The division may conduct investigations, inquiries, or hearings, as appropriate. Such investigations, inquiries, or hearings may be conducted by or before any commissioner of the division or any administrative law judge or other examiner designated by the division. All investigations, inquiries, and hearings of the division and all findings, orders, or decisions, made by a commissioner, when approved and confirmed by the division, shall be the orders or decisions of the division.

(6) The division shall appoint the division engineer who shall serve at the pleasure of the division.

(7) The division may designate persons by rule to preside and enter final orders in emergency adjudication of water rights under RCW 34.05.479.

NEW SECTION. Sec. 6. The commission shall submit a biennial report to the governor and the legislature containing a summary of the transactions and proceedings of the commission acting as a whole and of each division, together with a summary of any information gathered by the commission, the divisions and the division engineers, and such other facts, suggestions, and recommendations as the governor may require or the legislature request.

NEW SECTION. Sec. 7. The attorney general shall represent and appear for the people of the state of Washington and the commission or its divisions in all actions and proceedings involving any question under this chapter, or under or in reference to any act or order of the commission or its divisions; and it is the duty of the attorney general to enforce all water resource and water quality laws in general, including laws and rules which the division engineers are required to enforce.

NEW SECTION. Sec. 8. The division engineers have the following powers and duties within the territory of their respective division:

(1) Development and management of water resource data;

(2) Enforcement of water resource laws;

(3) Analysis and engineering, which may be performed by private or public entity under contract;

(4) Issuance of water permits. Permit decisions shall be based on technical data, local water resource plans, and water quality requirements. In areas for which a regional plan is final, the engineer must approve or disapprove a permit within three months of receipt of a completed application;

(5) Provision of technical assistance to regional groups and technical committees;

(6) Establishment of in-stream flow requirements based on historical flow to maintain historic fishery resources in areas where no regional water resource group has been established;

(7) Establishment of technical committees;

(8) Conduct of general or individual adjudications of competing claims for water resources pursuant to statute and rules adopted by the commission and divisions regarding procedures and substantive standards. For this purpose, the engineer may be authorized by rule to request the appointment of administrative law judges under chapter 34.12 RCW who shall have authority to administer oaths, to issue subpoenas for the attendance of witnesses and the production of papers, books, accounts, documents, and testimony, to examine witnesses, and to receive testimony.

NEW SECTION. Sec. 9. Water resource planning shall be done at the local level by regional water resource groups. Regional water resource group geographical boundaries shall be coterminous with the boundaries of one or several water resource inventory areas.

(1) Regional water resource groups may be established by the division upon the petition of two or more cities, counties, or tribal authorities within the proposed boundaries of the region. The division shall approve or disapprove the establishment of a regional water resource group and determine the size and membership of the group in accordance with standards adopted by rule.

(2) Regional water resource groups shall have the following powers and duties:

(a) Development of a regional water resource plan, including water storage proposals, in-stream flow requirements, and incentives for water pollution control, water recycling, and water reuse. The division engineer shall provide technical and administrative assistance to facilitate the development of regional water resource plans;

(b) Recommendation of areas for general adjudication of water rights by the division engineer;

(d) Authority to receive state and federal funds and assistance.

(3) Regional water resource plans shall be submitted to the division for approval and may be rejected by the division only if the plan is inconsistent with statute, commission and division rules, and any comprehensive plan adopted by any county pursuant to the growth management act which is applicable within the region. Funding for development of the plan shall be shared by the political subdivisions in the group and the state.

(4) In-stream flow levels set by the division engineer may be adjusted during the planning process. If existing unallocated flow is insufficient to meet historic flow needs, the group shall consider conservation, water transfers, or modification of storage capacity to achieve in-stream flow objectives.

(5) A regional group shall cease to exist after approval of the regional plan by the division.

(6) The division may establish successor regional water resource groups to develop plan revisions. Such successor groups shall cease to exist when any proposed revision is approved by the division.

NEW SECTION. Sec. 10. A new section is added to chapter 43.27A RCW to read as follows:

All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of ecology relating to functions transferred under chapter . . ., Laws of 1995 (this act) shall be delivered to the custody of the Washington water resources and water quality commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of ecology relating to functions transferred shall be made available to the Washington water resources and water quality commission. All funds, credits, or other assets held by the department of ecology relating to functions transferred shall be assigned to the Washington water resources and water quality commission.

Any appropriations made to the department of ecology relating to functions transferred shall, on the effective date of this section, be transferred and credited to the Washington water resources and water quality commission.

Whenever any question arises as to the transfer of any funds, including unexpended balances within any accounts, books, documents, records, papers, files, equipment, or any other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the entities concerned.

NEW SECTION. Sec. 11. A new section is added to chapter 43.27A RCW to read as follows:

All rules and all pending business before the department of ecology relating to functions transferred shall be continued and acted upon by the Washington water resources and water quality commission. All existing contracts and obligations shall remain in full force and effect and shall be performed by the Washington water resources and water quality commission.

PART II

INTERNAL REFERENCE CORRECTIONS AND NOMENCLATURE

Sec. 12. RCW 43.27A.020 and 1987 c 109 s 31 are each amended to read as follows:

As used in this chapter, and unless the context indicates otherwise, words and phrases shall mean:

(1) "((~~Department~~)) Commission" means the ((~~department of ecology;~~)) Washington water resources and water quality commission.

(2) "((~~Director~~)) Division engineer" means ((~~the director of ecology;~~)) one or both of the division engineers.

(3) "State agency" and "state agencies" mean any branch, department or unit of state government, however designated or constituted((;)).

(4) "Water resources" means all waters above, upon, or beneath the surface of the earth, located within the state and over which the state has sole or concurrent jurisdiction.

(5) "Beneficial use" means, but its meaning shall not be limited to: Domestic water supplies; irrigation; fish, shellfish, game, and other aquatic life; recreation; industrial water supplies; generation of hydroelectric power; and navigation.

Sec. 13. RCW 43.27A.090 and 1988 c 127 s 25 are each amended to read as follows:

The ((~~department~~)) commission shall be empowered as follows:

(1) To represent the state at, and fully participate in, the activities of any basin or regional commission, interagency committee, or any other joint interstate or federal-state agency, committee or commission, or publicly financed entity engaged in the planning, development, administration, management, conservation or preservation of the water resources of the state.

(2) To prepare the views and recommendations of the state of Washington on any project, plan, or program relating to the planning, development, administration, management, conservation, and preservation of any waters located in or affecting the state of Washington, including any federal permit or license proposal, and appear on behalf of, and present views and recommendations of the state at any proceeding, negotiation or hearing conducted by the federal government, interstate agency, state or other agency.

(3) To cooperate with, assist, advise and coordinate plans with the federal government and its officers and agencies, and serve as a state liaison agency with the federal government in matters relating to the use, conservation, preservation, quality, disposal, or control of water and activities related thereto.

(4) To cooperate with appropriate agencies of the federal government and/or agencies of other states, to enter into contracts, and to make appropriate contributions to federal or interstate projects and programs and governmental bodies to carry out the provisions of this chapter.

(5) To apply for, accept, administer and expend grants, gifts and loans from the federal government or any other entity to carry out the purposes of this chapter and make contracts and do such other acts as are necessary insofar as they are not inconsistent with other provisions hereof.

(6) To develop and maintain a coordinated and comprehensive state water and water resources related development plan, and adopt, with regard to such plan, such policies as are necessary to insure that the waters of the state are used, conserved and preserved for the best interest of the state. There shall be included in the state plan a description of developmental objectives and a statement of the recommended means of accomplishing these objectives. To the extent the director deems desirable, the plan shall integrate into the state plan, the plans, programs, reports, research and studies of other state agencies.

(7) To assemble and correlate information relating to water supply, power development, irrigation, watersheds, water use, future possibilities of water use and prospective demands for all purposes served through or affected by water resources development.

(8) To assemble and correlate state, local and federal laws, regulations, plans, programs, and policies affecting the beneficial use, disposal, pollution, control, or conservation of water, river basin development, flood prevention, parks, reservations, forests, wildlife refuges, drainage and sanitary systems, waste disposal, water works, watershed protection and development, minimum in-stream flows, base flows, soil conservation, power facilities and area and municipal water supply needs, and recommend suitable legislation or other action to the legislature, the congress of the United States, or any city, municipality, or to responsible state, local or federal executive departments or agencies.

(9) To cooperate with federal, state, regional, interstate and local public and private agencies in the making of plans for drainage, flood control, use, conservation, allocation and distribution of existing water supplies and the development of new water resource projects.

(10) To encourage, assist and advise regional, and city and municipal agencies, officials or bodies responsible for planning in relation to water aspects of their programs, and coordinate local water resources activities, programs, and plans.

(11) To ((~~promulgate~~)) adopt such rules ((~~and regulations~~)) as are necessary to carry out the purposes of this chapter.

(12) To hold public hearings, and make such investigations, studies and surveys as are necessary to carry out the purposes of the chapter.

(13) To subpoena witnesses, compel their attendance, administer oaths, take the testimony of any person under oath and require the production of any books or papers when the ((~~department~~)) commission deems such measures necessary in the exercise of its rule-making power or in determining whether or not any license, certificate, or permit shall be granted or extended.

Sec. 14. RCW 43.27A.130 and 1988 c 127 s 26 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer may make complete inventories of the state's water resources and enter into such agreements with the director of the United States geological survey as will insure that investigations and surveys are carried on in an economical manner.

Sec. 15. RCW 43.27A.190 and 1987 c 109 s 11 are each amended to read as follows:

Notwithstanding and in addition to any other powers granted to the ((~~department of ecology~~)) division engineer, whenever it appears to the ((~~department~~)) division engineer that a person is violating or is about to violate any of the provisions of the following:

(1) Chapter 90.03 RCW; or

(2) Chapter 90.44 RCW; or

(3) Chapter 86.16 RCW; or

(4) Chapter 43.37 RCW; or

(5) Chapter 43.27A RCW; or

(6) Any other law relating to water resources administered by the ((~~department~~)) division engineer; or

(7) A rule or regulation adopted, or a directive or order issued by the ((~~department~~)) division engineer relating to subsections (1) through (6) of this section; the ((~~department~~)) division engineer may cause a written regulatory order to be served upon said person either personally, or by registered or certified mail delivered to addressee only with return receipt requested and acknowledged by him or her. The order shall specify the provision of the statute, rule, regulation, directive, or order alleged to be or about to be violated, and the facts upon which the conclusion of violating or potential violation is based, and shall order the act constituting the violation or the potential violation to cease and desist or, in appropriate cases, shall order necessary corrective action to be taken with regard to such acts within a specific and reasonable time. The regulation of a headgate or controlling works as provided in RCW 90.03.070, by a watermaster, stream patrolman, or other person so authorized by the ((~~department~~)) division engineer shall constitute a regulatory order within the meaning of this section. A regulatory order issued hereunder shall become effective immediately upon receipt by the person to whom the order is directed, except for regulations under RCW 90.03.070 which shall become effective when a written notice is attached as provided therein. Any person aggrieved by such order may appeal the order pursuant to ((~~RCW 43.21B.310~~)) chapter 34.05 RCW.

Sec. 16. RCW 43.20.230 and 1993 sp.s. c 4 s 9 are each amended to read as follows:

Consistent with the water resource planning process of the ((~~department of ecology~~)) Washington water resources and water quality commission, the department of health shall:

(1) Develop procedures and guidelines relating to water use efficiency((~~, as defined in section 4(3), chapter 348, Laws of 1989,~~)) to be included in the development and approval of cost-efficient water system plans required under RCW 43.20.050;

(2) Develop criteria, with input from technical experts, with the objective of encouraging the cost-effective reuse of greywater and other water recycling practices, consistent with protection of public health and water quality;

(3) Provide advice and technical assistance upon request in the development of water use efficiency plans; and

(4) Provide advice and technical assistance on request for development of model conservation rate structures for public water systems. Subsections (1), (2), and (3) of this section are subject to the availability of funding.

Sec. 17. RCW 43.21A.020 and 1970 ex.s. c 62 s 2 are each amended to read as follows:

In recognition of the responsibility of state government to carry out the policies set forth in RCW 43.21A.010, it is the purpose of this chapter to establish a single state agency with the authority to manage ((~~and develop~~)) our air ((~~and water~~)) resources in an orderly, efficient, and effective manner and to carry out a coordinated program of pollution control involving ((~~these~~)) air resources and related land resources. To this end a department of ecology is created by this chapter to undertake, in an integrated manner, the ((~~various water~~)) regulation, management, and planning ((~~and development~~)) of programs now authorized to be performed by ((~~the department of water resources and the water pollution control commission,~~)) the air regulation and management program now performed by the state air pollution control board, the solid waste regulation and management program authorized to be performed by state government as provided by chapter 70.95 RCW, and such other environmental, management protection and development programs as may be authorized by the legislature. The department shall implement state-wide water quality policies established by the Washington water resources and water quality commission.

Sec. 18. RCW 43.21A.067 and 1987 c 109 s 27 are each amended to read as follows:

The ((~~director of ecology~~)) division engineer may create within ((~~his~~)) the ((~~department~~)) division a fund to be known as the "basic data fund."

Into such fund shall be deposited all moneys contributed by persons for stream flow, ground water, and water quality data or other hydrographic information furnished by the ((~~department~~)) division engineer in cooperation with the United States geological survey, and the fund shall be expended on a matching basis with the United States geological survey for the purpose of obtaining additional basic information needed for an intelligent inventory of water resources in the state.

Disbursements from the basic data fund shall be on vouchers approved by the ((~~department~~)) division engineer and the district engineer of the United States geological survey.

Sec. 19. RCW 43.83B.040 and 1972 ex.s. c 128 s 4 are each amended to read as follows:

The proceeds from the sale of the bonds deposited in the state and local improvements revolving account of the general fund under the terms of this chapter shall be administered by the ((~~state department of ecology~~)) division engineer subject to legislative appropriation. The ((~~department~~)) division engineer may use or permit the use of any funds derived from the sale of bonds authorized under this chapter to accomplish the purpose for which said bonds are issued by direct expenditures and by grants or loans to public bodies, including grants to public bodies as matching funds in any case where federal, local, or other funds are made available on a matching basis for improvements within the purposes of this chapter.

Sec. 20. RCW 43.83B.210 and 1989 c 171 s 7 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer is authorized to make loans or grants or combinations thereof from funds under RCW 43.83B.010 through 43.83B.110 to eligible public bodies as defined in RCW 43.83B.050 for rehabilitation or betterment of agricultural water supply facilities, and/or construction of agricultural water supply facilities required to develop new irrigated lands. The ((~~department of ecology~~)) division engineer may make such loans or grants or combinations thereof as matching funds in any case where federal, local, or other funds have been made available on a matching basis. A loan or combination loan and grant shall not exceed fifty percent of the approved eligible project cost for any single proposed project. Any grant or grant portion of a combination loan and grant from funds under RCW 43.83B.010 through 43.83B.110 for any single proposed project shall not exceed fifteen percent of the eligible project costs: PROVIDED, That the fifteen percent limitation established herein shall not be applicable to project commitments which the director or deputy director of the state department of ecology made to the bureau of reclamation of the United States department of interior for providing state funding at thirty-five percent of project costs during the period between August 1, 1974, and June 30, 1975.

Sec. 21. RCW 43.83B.220 and 1989 c 11 s 17 are each amended to read as follows:

In addition to the powers granted by RCW 43.83B.210, the ((~~director of the department of ecology or his designee~~)) division engineer is authorized to make contractual agreements in accordance with provisions of this chapter on behalf of the state of Washington. Contractual agreements shall include provisions to secure such loans, and shall assure the proper and timely payment of said loans or loan portions of combination loans and grants.

Sec. 22. RCW 43.83B.230 and 1975 1st ex.s. c 295 s 14 are each amended to read as follows:

In the course of considering applications under this chapter, the ((~~department of ecology~~)) division engineer shall make known to other state agencies possibilities which may arise to provide public benefits such as recreation or fish and wildlife enhancement in connection with proposed projects. Such agencies, including the ((~~department of ecology~~)) division engineer, are authorized to participate in said projects provided agency funds are made available to pay the full cost of their participation.

Sec. 23. RCW 43.83B.300 and 1988 c 47 s 1, 1988 c 46 s 2, and 1988 c 45 s 1 are each reenacted and amended to read as follows:

The legislature finds that the fundamentals of water resource policy in this state must be reviewed by the legislature to ensure that the water resources of the state are protected and fully utilized for the greatest benefit to the people of the state of Washington. The legislature further finds that it is necessary to provide the ((~~department of ecology~~)) division engineer with emergency powers to authorize withdrawals of public surface and ground waters, including dead storage within reservoirs, on a temporary basis, and construction of facilities in relation thereto, in order to alleviate emergency water supply conditions arising from the drought forecast for the state of Washington during 1977 and during 1987 through 1989.

The legislature further finds that there is a continuing water supply shortage in many areas of the state and that there is an urgent need to assure the survival of irrigated crops and of the state's fisheries.

The legislature further finds that in addition to water storage facilities or other augmentation programs, improved efficiency of water use could provide an important new supply of water in many parts of the state with which to meet future water needs and that improved efficiency of water use should receive greater emphasis in the management of the state's water resources.

In order to study the fundamentals of water resource policy of the state and to provide needed moneys for the planning, acquisition, construction, and improvement of water supply facilities and for other appropriate measures to assure the survival of irrigated crops and/or the state's fisheries to alleviate emergency water supply conditions arising from droughts occurring from time to time in the state of Washington, and to carry out a comprehensive water use efficiency study for the state of Washington, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of eighteen million dollars, or so much thereof as may be required to finance such projects, and all costs incidental thereto. No bonds authorized by this section and RCW 43.83B.360 through 43.83B.375 shall be offered for sale without prior legislative appropriation, and these bonds shall be paid and discharged within thirty years of the date of issuance in accordance with Article VIII, section 1 of the state Constitution.

Sec. 24. RCW 43.83B.345 and 1977 ex.s. c 1 s 10 are each amended to read as follows:

(1) The ((~~department of ecology~~)) division engineer shall, by rule, establish rates of charges for all waters delivered from such facilities as constructed by the ((~~department~~)) division engineer with funds provided in RCW 43.83B.385 (2) or (3). Where the ((~~department~~)) division engineer provides water to public or municipal corporations or other governmental bodies having authority to distribute water, the payment for the water may be made pursuant to contract over a period not exceeding twenty-five years from the date of delivery. In all other cases, the ((~~department~~)) division engineer shall obtain payment for waters prior to its delivery to a purchaser. All payments received shall be deposited into the state emergency water projects bond redemption fund of 1977.

(2) Public bodies, eligible to obtain funds through grants or loans or combinations thereof under the provisions of RCW 43.83B.300 ((~~through~~)), 43.83B.345, and 43.83B.210 ((~~as now or hereafter amended~~)), are authorized to enter into contracts with the ((~~department of ecology~~)) division engineer for the purpose of repaying loans authorized by RCW 43.83B.380 and 43.83B.385 and for the purpose of purchasing water under this section.

(3) The ((~~department of ecology~~)) division engineer is authorized to enter into appropriate contracts to ensure effective delivery of water and the operation and maintenance of facilities constructed pursuant to RCW 43.83B.300, 43.83B.345 through 43.83B.385, 43.83B.901, and 43.83B.210.

Sec. 25. RCW 43.83B.365 and 1977 ex.s. c 1 s 14 are each amended to read as follows:

The principal proceeds from the sale of the bonds authorized in RCW 43.83B.300, and 43.83B.355 through 43.83B.375 shall be administered by the ((~~director of the department of ecology~~)) division engineer.

Sec. 26. RCW 43.83B.400 and 1989 c 171 s 1 are each amended to read as follows:

It is the intent of the legislature to provide emergency powers to the ((~~department of ecology~~)) division engineer to enable it to take actions, in a timely and expeditious manner, that are designed to alleviate hardships and reduce burdens on various water users and uses arising from drought conditions. As used in this chapter, "drought condition" means that the water supply for a geographical area or for a significant portion of a geographical area is below seventy-five percent of normal and the water shortage is likely to create undue hardships for various water uses and users.

Sec. 27. RCW 43.83B.405 and 1989 c 171 s 2 are each amended to read as follows:

(1) Whenever it appears to the ((~~department of ecology~~)) division engineer that a drought condition either exists or is forecast to occur within the state or portions thereof, the ((~~department of ecology~~)) division engineer is authorized to issue orders, pursuant to rules previously adopted, to implement the powers as set forth in RCW 43.83B.410 through 43.83B.420. The ((~~department~~)) division engineer shall, immediately upon the issuance of an order under this section, cause said order to be published in newspapers of general circulation in the areas of the state to which the order relates. Prior to the issuance of an order, the ((~~department~~)) division engineer shall (a) consult with and obtain the views of the federal and state government entities identified in the drought contingency plan periodically revised by the ((~~department~~)) division engineer pursuant to RCW 43.83B.410(4), and (b) obtain the written approval of the governor. Orders issued under this section shall be deemed orders for the purposes of chapter 34.05 RCW.

(2) Any order issued under subsection (1) of this section shall contain a termination date for the order. The termination date shall be not later than one calendar year from the date the order is issued. Although the ((~~department~~)) division engineer may, with the written approval of the governor, change the termination date by amending the order, no such amendment or series of amendments may have the effect of extending its termination to a date which is later than two calendar years after the issuance of the order.

(3) The provisions of subsection (2) of this section do not preclude the issuance of more than one order under subsection (1) of this section for different areas of the state or sequentially for the same area as the need arises for such an order or orders.

Sec. 28. RCW 43.83B.410 and 1989 c 171 s 3 are each amended to read as follows:

Upon the issuance of an order under RCW 43.83B.405, the ((~~department of ecology~~)) division engineer is empowered to:

(1)(a) Authorize emergency withdrawal of public surface and ground waters, including dead storage within reservoirs, on a temporary basis and authorize associated physical works which may be either temporary or permanent. The termination date for the authority to make such an emergency withdrawal may not be later than the termination date of the order issued under RCW 43.83B.405 under which the power to authorize the withdrawal is established. The ((~~department of ecology~~)) division engineer may issue such withdrawal authorization when, after investigation and after providing appropriate federal, state, and local governmental bodies an opportunity to comment, the following are found:

(i) The waters proposed for withdrawal are to be used for a beneficial use involving a previously established activity or purpose;

(ii) The previously established activity or purpose was furnished water through rights applicable to the use of a public body of water that cannot be exercised due to the lack of water arising from natural drought conditions; and

(iii) The proposed withdrawal will not reduce flows or levels below essential minimums necessary (A) to assure the maintenance of fisheries requirements, and (B) to protect federal and state interests including, among others, power generation, navigation, and existing water rights;

(b) All withdrawal authorizations issued under this section shall contain provisions that allow for termination of withdrawals, in whole or in part, whenever withdrawals will conflict with flows and levels as provided in (a)(iii) of this subsection. Domestic and irrigation uses of public surface and ground waters shall be given priority in determining "beneficial uses." As to water withdrawal and associated works authorized under this subsection, the requirements of chapter 43.21C RCW and public bidding requirements as otherwise provided by law are waived and inapplicable. All state and local agencies with authority to issue permits or other authorizations for such works shall, to the extent possible, expedite the processing of the permits or authorizations in keeping with the emergency nature of the requests and shall provide a decision to the applicant within fifteen calendar days of the date of application. All state departments or other agencies having jurisdiction over state or other public lands, if such lands are necessary to effectuate the withdrawal authorizations issued under this subsection, shall provide short-term easements or other appropriate property interest upon the payment of the fair market value. This mandate shall not apply to any lands of the state that are reserved for a special purpose or use that cannot properly be carried out if the property interest were conveyed;

(2) Approve a temporary change in purpose, place of use, or point of diversion, consistent with existing state policy allowing transfer or lease of waters between willing parties, as provided for in RCW 90.03.380, 90.03.390, and 90.44.100. However, compliance with any requirements of (a) notice of newspaper publication of these sections or (b) the state environmental policy act, chapter 43.21C RCW, is not required when such changes are necessary to respond to drought conditions as determined by the ((~~department of ecology~~)) division engineer. An approval of a temporary change of a water right as authorized under this subsection is not admissible as evidence in either supporting or contesting the validity of water claims in State of Washington, Department of Ecology v. Acquavella, Yakima county superior court number 77-2-01484-5 or any similar proceeding where the existence of a water right is at issue.

(3) Employ additional persons for specified terms of time, consistent with the term of a drought condition, as are necessary to ensure the successful performance of the activities associated with implementing the emergency drought program of this chapter.

(4) Revise the drought contingency plan previously developed by the department or its successor agency; and

(5) Acquire needed emergency drought-related equipment.

Sec. 29. RCW 43.83B.415 and 1989 c 171 s 4 are each amended to read as follows:

(1) The ((~~department of ecology~~)) division engineer is authorized to make loans, grants, or combinations of loans and grants from emergency agricultural water supply funds when necessary to provide water to alleviate emergency drought conditions in order to ensure the survival of irrigated crops and the state's fisheries. For the purposes of this section, "emergency agricultural water supply funds" means funds appropriated from the state emergency water projects revolving account created under RCW 43.83B.360. The ((~~department of ecology~~)) division engineer may make the loans, grants, or combinations of loans and grants as matching funds in any case where federal, local, or other funds have been made available on a matching basis. The ((~~department~~)) division engineer may make a loan of up to ninety percent of the total eligible project cost or combination loan and grant up to one hundred percent of the total single project cost. The grant portion for any single project shall not exceed twenty percent of the total project cost except that, for activities forecast to have fifty percent or less of normal seasonal water supply, the grant portion for any single project or entity shall not exceed forty percent of the total project cost. No single entity shall receive more than ten percent of the total emergency agricultural water supply funds available for drought relief. These funds shall not be used for nonagricultural drought relief purposes unless there are no other capital budget funds available for these purposes. In any biennium the total expenditures of emergency agricultural water supply funds for nonagricultural drought relief purposes may not exceed ten percent of the total of such funds available during that biennium.

(2)(a) Except as provided in (b) of this subsection, after June 30, 1989, emergency agricultural water supply funds, including the repayment of loans and any accrued interest, shall not be used for any purpose except during drought conditions as determined under RCW 43.83B.400 and 43.83B.405.

(b) Emergency agricultural water supply funds may be used on a one-time basis for the development of procedures to be used by state governmental entities to implement the state's drought contingency plan.

Sec. 30. RCW 89.16.040 and 1981 c 216 s 2 are each amended to read as follows:

From the moneys appropriated from the reclamation account there shall be paid, upon vouchers approved by the ((~~director of ecology~~)) division engineer, the administrative expenses of the ((~~director~~)) division engineer under this chapter and such amounts as are found necessary for the investigation and survey of reclamation projects proposed to be financed in whole or in part by the ((~~director~~)) division engineer, and such amounts as may be authorized by him or her for the reclamation of lands in diking, diking improvement, drainage, drainage improvement, diking and drainage, diking and drainage improvement, irrigation and irrigation improvement districts, and such other districts as are authorized by law for the reclamation or development of waste or undeveloped lands or the rehabilitation of existing reclamation projects, and all such districts and improvement districts shall, for the purposes of this chapter be known as reclamation districts.

Sec. 31. RCW 89.16.045 and 1972 ex.s. c 51 s 4 are each amended to read as follows:

Notwithstanding any other provisions of this chapter, the ((~~director of ecology~~)) division engineer may, by written contract with a reclamation district, loan moneys from the reclamation account to said district for use in financing a project of construction, reconstruction or improvement of district facilities, or a project of additions to such facilities. No such contract shall exceed fifty thousand dollars per project or a term of ten years, or provide for an interest rate of more than eight percent per annum. The ((~~director~~)) division engineer shall not execute any contract as provided in this section until ((he)) it determines that the project for which the moneys are furnished is within the scope of the district's powers to undertake, that the project is feasible, that its construction is in the best interest of the state and the district, and that the district proposing the project is in a sound financial condition and capable of repaying the loan with interest in not more than ten annual payments. Any district is empowered to enter into a contract, as provided for in this section, and to levy assessments based on the special benefits accruing to lands within the district as are necessary to satisfy the contract, when a resolution of the governing body of the reclamation district authorizing its execution is approved by the body: PROVIDED, That no district shall be empowered to execute with the ((~~director~~)) division engineer any such contract during the term of any previously executed contract authorized by this section.

Sec. 32. RCW 89.16.050 and 1983 c 167 s 248 are each amended to read as follows:

In carrying out the purposes of this chapter, the ((~~director of the department of ecology of the state of Washington~~)) division engineer shall be authorized ((~~and empowered~~)):

To make surveys and investigations of the wholly or partially unreclaimed and undeveloped lands in this state and to determine the relative agricultural values, productiveness and uses, and the feasibility and cost of reclamation and development thereof;

To formulate and adopt a sound policy for the reclamation and development of the agricultural resources of the state, and from time to time select for reclamation and development such lands as may be deemed advisable, and the ((~~director~~)) division engineer may in ((~~his~~)) its discretion advise as to the formation and assist in the organization of reclamation districts under the laws of this state;

To purchase the bonds of any reclamation district whose project is approved by the ((~~director~~)) division engineer and which is found to be upon a sound financial basis, to contract with any such district for making surveys and furnishing engineering plans and supervision for the construction of its project, or for constructing or completing its project and to advance money to the credit of the district for any or all of such purposes, and to accept the bonds, notes or warrants of such district in payment therefor, and to expend the moneys appropriated from the reclamation account in the purchase of such bonds, notes or warrants or in carrying out such contracts: PROVIDED, That interest not to exceed the annual rate provided for in the bonds, notes or warrants agreed to be purchased, shall be charged and received for all moneys advanced to the district prior to the delivery of the bonds, notes or warrants and the amount of such interest shall be included in the purchase price of such bonds, notes or warrants: PROVIDED FURTHER, That no district, the bonds, notes or warrants of which have been purchased by the state under the provisions of the state reclamation act, shall thereafter during the life of said bonds, notes or warrants make expenditures of any kind from the bond or warrant funds of the district or incur obligations chargeable against such funds or issue any additional notes without previous written approval of the ((~~director of ecology of the state of Washington~~)) division engineer, and any obligations incurred without such approval shall be void;

To sell and dispose of any reclamation district bonds acquired by the ((~~director~~)) division engineer, at public or private sale, and to pay the proceeds of such sale into the reclamation account: PROVIDED, That such bonds shall not be sold for less than the purchase price plus accrued interest, except in case of a sale to an agency supplied with money by the United States of America, or to the United States of America in furtherance of refunding operations of any irrigation district, diking or drainage district, or diking or drainage improvement district, now pending or hereafter carried on by such district, in which case the ((~~director~~)) division engineer shall have authority to sell any bonds of such district owned by the state of Washington under the provisions of the state reclamation act, to the United States of America, or other federal agency on such terms as said United States of America, or other federal agency shall prescribe for bonds of the same issue of such district as that held by the state of Washington in connection with such refunding operations;

To borrow money upon the security of any bonds, including refunding bonds, of any reclamation district, acquired by the ((~~director~~)) division engineer, on such terms and rate of interest and over such period of time as the ((~~director~~)) division engineer may see fit, and to hypothecate and pledge reclamation district bonds or refunding bonds acquired by the ((~~director~~)) division engineer as security for such loan. Such loans shall have, as their sole security, the bonds so pledged and the revenues therefrom, and the ((~~director~~)) division engineer shall not have authority to pledge the general credit of the state of Washington: PROVIDED, That in reloaning any money so borrowed, or obtained from a sale of bonds it shall be the duty of the ((~~director~~)) division engineer to fix such rates of interest as will prevent impairment of the reclamation revolving account;

To purchase delinquent general tax or delinquent special assessment certificates chargeable against lands included within any reclamation district obligated to the state under the provisions of the state reclamation act, and to purchase lands included in such districts and placed on sale on account of delinquent taxes or delinquent assessments with the same rights, privileges and powers with respect thereto as a private holder and owner of said certificates, or as a private purchaser of said lands: PROVIDED, That the ((~~director~~)) division engineer shall be entitled to a delinquent tax certificate upon application to the proper county treasurer therefor without the necessity of a resolution of the county legislative authority authorizing the issuance of certificates of delinquency required by law in the case of the sale of such certificates to private purchasers;

To sell said delinquent certificates or the lands acquired at sale on account of delinquent taxes or delinquent assessments at public or private sale, and on such conditions as the ((~~director~~)) division engineer shall determine;

To, whenever the ((~~director~~)) division engineer shall deem it advisable, require any district with which he or she may contract, to provide such safeguards as he or she may deem necessary to assure bona fide settlement and development of the lands within such district, by securing from the owners of lands therein agreements to limit the amount of their holdings to such acreage as they can properly farm and to sell their excess land holdings at reasonable prices;

To employ all necessary experts, assistants and employees and fix their compensation and to enter into any and all contracts and agreements necessary to carry out the purposes of this chapter;

To have the assistance, cooperation and services of, and the use of the records and files in, all the departments and institutions of the state, particularly the office of the commissioner of public lands, the state department of agriculture, Washington State University, and the University of Washington; and all state officers and the governing authorities of all state institutions are hereby authorized and directed to cooperate with the ((~~director~~)) division engineer in furthering the purpose of this chapter;

To cooperate with the United States in any plan of land reclamation, land settlement or agricultural development which the congress of the United States may provide and which may effect the development of agricultural resources within the state of Washington, and the ((~~director~~)) division engineer shall have full power to carry out the provisions of any cooperative land settlement act that may be enacted by the United States.

Sec. 33. RCW 89.16.055 and 1993 c 387 s 27 are each amended to read as follows:

((~~In addition to the powers provided in RCW 89.16.050,~~)) The ((~~department of ecology~~)) division engineer is authorized ((~~and empowered~~)) to:

(1) Conduct surveys, studies, investigations, and water right examinations for proposed reclamation projects or the rehabilitation of existing reclamation projects that may be funded fully or partially from the receipts of the sale of bonds issued by the state of Washington.

(2) Support the preparation for and administration of proceedings, provided in RCW 90.03.110 or 90.44.220, or both, pertaining to river systems or other water bodies that are associated with existing or proposed reclamation projects.

(3) Conduct a regulatory program for well construction as provided in chapter 18.104 RCW.

Funds of the account established by RCW 89.16.020 may, as appropriated by the legislature, be used in relation to the powers provided in this section, notwithstanding any other provisions of chapter 89.16 RCW that may be to the contrary.

Sec. 34. RCW 89.16.060 and 1972 ex.s. c 51 s 6 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer shall have the power to cooperate and to contract with the United States for the reclamation of lands in this state by the United States, and shall have the power to contract with the United States for the handling of such reclamation work by the United States and for the repayment of such moneys as the ((~~department of ecology~~)) division engineer shall invest from the reclamation account, under such terms and conditions as the United States laws and the regulations of the interior department shall provide for the repayment of reclamation costs by the lands reclaimed.

Sec. 35. RCW 89.16.070 and 1959 c 104 s 5 are each amended to read as follows:

A diking, drainage, diking and drainage, and irrigation district, and improvement districts thereof through the parent district, or such other district as is authorized and organized for the reclamation or development of waste or undeveloped lands, may enter into contracts with the ((~~director~~)) division engineer for the reclamation of the lands of the district in the manner provided herein, or in such manner as such districts may contract with the United States or with individuals or corporations, for making surveys and furnishing engineering plans and supervision for the construction of all works and improvements necessary for the reclamation of its lands, and for the sale or delivery of its bonds, and may issue bonds of the district for such purposes.

Sec. 36. RCW 89.16.080 and 1972 ex.s. c 51 s 7 are each amended to read as follows:

Whenever in the judgment of the department of natural resources any state, school, granted, or other public lands of the state will be specially benefited by any proposed reclamation project approved by the ((~~department of ecology~~)) division engineer, it may consent that such lands be included in any reclamation district organized for the purpose of carrying out such reclamation project, and in that event the department of natural resources shall be authorized to pay, out of current appropriations, the district assessments levied as provided by law against such lands, and any such assessments paid shall be made a charge against the lands upon which they were levied, and the amount thereof, but without interest, shall be included in the appraised value of such lands when sold or leased.

Sec. 37. RCW 89.30.055 and 1988 c 127 s 70 are each amended to read as follows:

Upon the giving of notice of hearing on the petition by the clerk of the county board aforesaid, there is hereby authorized and created a commission composed of the chairman of the board of county commissioners of each of the counties in which any of the lands to be included in the proposed reclamation district are situated, and of the ((~~state director of ecology~~)) division engineer, which commission shall consider and determine said petition.

Sec. 38. RCW 89.30.058 and 1988 c 127 s 71 are each amended to read as follows:

The ((~~state director of ecology~~)) division engineer shall be ex officio chairman of said commission, and the clerk of the county board of the county in which the petition is filed, shall be ex officio clerk of said commission. A majority of the members of said commission shall constitute a quorum for the transaction or exercise of any of its powers, functions, duties and business.

Sec. 39. RCW 89.30.070 and 1988 c 127 s 72 are each amended to read as follows:

Except as otherwise herein provided the necessary expenses of the commission and of the members thereof in performing the duties and functions of said commission shall be borne by the respective counties concerned in proportion to the taxable value of the acreage of each included in the proposed reclamation district and said respective counties are hereby made liable for such expenses. The individual expenses of the ((~~state director of ecology~~)) division engineer shall be borne by the state.

Sec. 40. RCW 89.30.427 and 1983 c 167 s 254 are each amended to read as follows:

(1) In any instance where the district, general improvement or divisional district is selling, renting or leasing water or electric energy under the provisions of this chapter and there is reasonable certainty of a permanent fixed income from this source, the district board shall have authority to create a special fund derived from a fixed proportion of the gross income thus obtained and to issue bonds of the district payable from such special fund and to sell the same to raise revenue for the payment or amortization of the cost of the construction and/or the operation and maintenance of the reclamation district or general improvement or divisional district works and for such other purposes as the state of Washington and/or the United States may require: PROVIDED, That the state of Washington may, through the ((~~director of ecology~~)) division engineer, enter into a contract with the reclamation district, improvement or divisional district or districts or the United States to purchase, rent or lease and to sell or resell and/or distribute all or any part of the electric energy developed or to be developed at the reclamation, improvement or divisional district works at a price sufficient to amortize the cost of power development over a period of fifty years after the completion of such power development and to provide a surplus sufficient to reduce the cost of reclaiming the lands of the district or districts within economic limits: AND PROVIDED FURTHER, That no contract or contracts as in this section provided shall be finally consummated or become binding in any way whatsoever until the legislature of the state of Washington in special or regular session shall approve the same, and provided further in such sale and/or distribution of power by the ((~~director of ecology~~)) division engineer preference in the purchase and/or distribution thereof shall be given to municipal corporations and cooperative associations: AND PROVIDED FURTHER, That general improvement and divisional districts shall have (in addition to the powers granted them in chapter 254 of the Session Laws of 1927 and in this act) the same powers as are given to the reclamation districts under RCW 89.30.007.

(2) Such bonds may be issued and sold in accordance with chapter 39.46 RCW.

Sec. 41. RCW 90.03.005 and 1989 c 348 s 2 are each amended to read as follows:

It is the policy of the state to promote the use of the public waters in a fashion which provides for obtaining maximum net benefits arising from both diversionary uses of the state's public waters and the retention of waters within streams and lakes in sufficient quantity and quality to protect instream and natural values and rights. Consistent with this policy, the state supports economically feasible and environmentally sound development of physical facilities through the concerted efforts of the state with the United States, public corporations, Indian tribes, or other public or private entities. Further, based on the tenet of water law which precludes wasteful practices in the exercise of rights to the use of waters, the ((~~department of ecology~~)) division engineer shall reduce these practices to the maximum extent practicable, taking into account sound principles of water management, the benefits and costs of improved water use efficiency, and the most effective use of public and private funds, and, when appropriate, to work to that end in concert with the agencies of the United States and other public and private entities.

Sec. 42. RCW 90.03.015 and 1987 c 109 s 65 are each amended to read as follows:

As used in this chapter:

(1) "((~~Department~~)) Commission" means the ((~~department of ecology~~)) Washington water resources and water quality commission; and

(2) ((~~"Director" means the director of ecology; and~~

~~(3)~~)) "Person" means any firm, association, water users' association, corporation, irrigation district, or municipal corporation, as well as an individual.

Sec. 43. RCW 90.03.030 and 1987 c 109 s 68 are each amended to read as follows:

Any person may convey any water which he may have a right to use along any of the natural streams or lakes of this state, but not so as to raise the water thereof above ordinary highwater mark, without making just compensation to persons injured thereby; but due allowance shall be made for evaporation and seepage, the amount of such seepage to be determined by the ((~~department~~)) division engineer, upon the application of any person interested.

Sec. 44. RCW 90.03.060 and 1987 c 109 s 69 are each amended to read as follows:

Water masters shall be appointed by the ((~~department~~)) division engineer whenever it shall find the interests of the state or of the water users to require them. The districts for or in which the water masters serve shall be designated water master districts, which shall be fixed from time to time by the ((~~department~~)) division engineer, as required, and they shall be subject to revision as to boundaries or to complete abandonment as local conditions may indicate to be expedient, the spirit of this provision being that no district shall be created or continued where the need for the same does not exist. Water masters shall be supervised by the ((~~department~~)) division engineer, shall be compensated for services from funds of the ((~~department~~)) division engineer, and shall be technically qualified to the extent of understanding the elementary principals of hydraulics and irrigation, and of being able to make water measurements in streams and in open and closed conduits of all characters, by the usual methods employed for that purpose. Counties and municipal and public corporations of the state are authorized to contribute moneys to the ((~~department~~)) division engineer to be used as compensation to water masters in carrying out their duties. All such moneys received by the ((~~department~~)) division engineer shall be used exclusively for said purpose.

Sec. 45. RCW 90.03.070 and 1987 c 109 s 70 are each amended to read as follows:

It shall be the duty of the water master, acting under the direction of the ((~~department~~)) division engineer, to divide in whole or in part, the water supply of his district among the several water conduits and reservoirs using said supply, according to the right and priority of each, respectively. He shall divide, regulate and control the use of water within his district by such regulation of headgates, conduits and reservoirs as shall be necessary to prevent the use of water in excess of the amount to which the owner of the right is lawfully entitled. Whenever, in the pursuance of his duties, the water master regulates a headgate of a water conduit or the controlling works of a reservoir, he shall attach to such headgate or controlling works a written notice, properly dated and signed, stating that such headgate or controlling works has been properly regulated and is wholly under his control and such notice shall be a legal notice to all parties. In addition to dividing the available waters and supervising the stream patrolmen in his district, he shall enforce such rules and regulations as the ((~~department~~)) division engineer shall from time to time prescribe.

The county or counties in which water master districts are created shall deputize the water masters appointed hereunder, and may without charge provide to each water master suitable office space, supplies, equipment and clerical assistance as are necessary to the water master in the performance of his duties.

Sec. 46. RCW 90.03.100 and 1987 c 109 s 71 are each amended to read as follows:

It shall be the duty of the prosecuting attorney of any county to appear for or on behalf of the ((~~department~~)) division engineer or any water master, upon request of any such officer in any case which may arise in the performance of the official duties of any such officer within the jurisdiction of said prosecuting attorney.

Sec. 47. RCW 90.03.110 and 1987 c 109 s 72 are each amended to read as follows:

Upon the filing of a petition with the ((~~department~~)) division engineer by one or more persons claiming the right to divert any waters within the state or when, after investigation, in the judgment of the ((~~department~~)) division engineer, the interest of the public will be subserved by a determination of the rights thereto, it shall be the duty of the ((~~department~~)) division engineer to prepare a statement of the facts, together with a plan or map of the locality under investigation, and file such statement and plan or map in the superior court of the county in which said water is situated, or, in case such water flows or is situated in more than one county, in the county which the ((~~department~~)) division engineer shall determine to be the most convenient to the parties interested therein. Such statement shall contain substantially the following matter, to wit:

(1) The names of all known persons claiming the right to divert said water, the right to the diversion of which is sought to be determined, and

(2) A brief statement of the facts in relation to such water, and the necessity for a determination of the rights thereto.

Sec. 48. RCW 90.03.120 and 1987 c 109 s 73 are each amended to read as follows:

Upon the filing of the statement and map as provided in RCW 90.03.110 the judge of such superior court shall make an order directing summons to be issued, and fixing the return day thereof, which shall be not less than sixty nor more than ninety days, after the making of such order: PROVIDED, That for good cause, the court, at the request of the ((~~department~~)) division engineer, may modify said time period. A summons shall thereupon be issued out of said superior court, signed and attested by the clerk thereof, in the name of the state of Washington, as plaintiff, against all known persons claiming the right to divert the water involved and also all persons unknown claiming the right to divert the water involved, which said summons shall contain a brief statement of the objects and purpose of the proceedings and shall require the defendants to appear on the return day thereof, and make and file a statement of claim to, or interest in, the water involved and a statement that unless they appear at the time and place fixed and assert such right, judgment will be entered determining their rights according to the evidence: PROVIDED, HOWEVER, That any persons claiming the right to the use of water by virtue of a contract with claimant to the right to divert the same, shall not be necessary parties to the proceeding.

Sec. 49. RCW 90.03.130 and 1987 c 109 s 74 are each amended to read as follows:

Service of said summons shall be made in the same manner and with the same force and effect as service of summons in civil actions commenced in the superior courts of the state: PROVIDED, That for good cause, the court, at the request of the ((~~department~~)) division engineer, as an alternative to personal service, may authorize service of summons to be made by certified mail, with return receipt signed by defendant, a spouse of a defendant, or another person authorized to accept service. If the defendants, or either of them, cannot be found within the state of Washington, of which the return of the sheriff of the county in which the proceeding is pending shall be prima facie evidence, upon the filing of an affidavit by the ((~~department~~)) division engineer, or its attorney, in conformity with the statute relative to the service of summons by publication in civil actions, such service may be made by publication in a newspaper of general circulation in the county in which such proceeding is pending, and also publication of said summons in a newspaper of general circulation in each county in which any portion of the water is situated, once a week for six consecutive weeks (six publications). In cases where personal service can be had, such summons shall be served at least twenty days before the return day thereof. The summons by publication shall state that statements of claim must be filed within twenty days after the last publication or before the return date, whichever is later.

Personal service of summons may be made by ((~~department of ecology~~)) division engineer employees for actions pertaining to water rights.

Sec. 50. RCW 90.03.140 and 1987 c 109 s 75 are each amended to read as follows:

On or before the return day of such summons, each defendant shall file in the office of the clerk of said court a statement, and therewith a copy thereof for the ((~~department~~)) division engineer, containing substantially the following:

(1) The name and post office address of defendant.

(2) The full nature of the right, or use, on which the claim is based.

(3) The time of initiation of such right and commencement of such use.

(4) The date of beginning and completion of construction.

(5) The dimensions and capacity of all ditches existing at the time of making said statement.

(6) The amount of land under irrigation and the maximum quantity of water used thereon prior to the date of said statement and if for power, or other purposes, the maximum quantity of water used prior to date of said statement.

(7) The legal description of the land upon which said water has been, or may be, put to beneficial use, and the legal description of the subdivision of land on which the point of diversion is located.

Such statement shall be verified on oath by the defendant, and in the discretion of the court may be amended.

Sec. 51. RCW 90.03.160 and 1989 c 80 s 1 are each amended to read as follows:

Upon the completion of the service of summons as hereinbefore provided, the superior court in which said proceeding is pending shall make an order referring said proceeding to the ((~~department~~)) division engineer to take testimony by its duly authorized designee, as referee, and the designee shall report to and file with the superior court of the county in which such cause is pending a transcript of such testimony for adjudication thereon by such court. The superior court may, in any complex case with more than one thousand named defendants, including the United States, retain for hearing and further processing such portions of the proceeding as pertain to a discrete class or classes of defendants or claims of water rights if the court determines that: (1) Resolution of claims of such classes appear to involve significant issues of law, either procedural or substantive; and (2) such a retention will both expedite the conclusion of the case and reduce the overall expenditures of the plaintiff, defendants, and the court.

Sec. 52. RCW 90.03.170 and 1987 c 109 s 77 are each amended to read as follows:

Thereupon the ((~~department~~)) division engineer shall fix a time and place for such hearing and serve written notice thereof upon all persons who have appeared in said proceeding, their agents or attorneys. Notice of such hearing shall be served at least ten days before the time fixed therefor. Such hearings may be adjourned from time to time and place to place. The duly authorized designee shall have authority to subpoena witnesses and administer oaths in the same manner and with the same powers as referees in civil actions. The fees and mileage of witnesses shall be advanced by the party at whose instance they are called as in civil actions. A final decree adjudicating rights or priorities, entered in any case decided prior to June 6, 1917, shall be conclusive among the parties thereto and the extent of use so determined shall be prima facie evidence of rights to the amount of water and priorities so fixed as against any person not a party to said decree.

Sec. 53. RCW 90.03.190 and 1987 c 109 s 78 are each amended to read as follows:

Upon the completion of the taking of testimony it shall be the duty of the ((~~department's~~)) division engineer's designee to prepare and file with the clerk of the superior court where such proceeding is pending, a transcript of the testimony taken at such hearing, in triplicate, together with all papers and exhibits offered and received in evidence and not already a part of the record. He shall also make and file in said court a full and complete report as in other cases of reference in the superior court. Two of said transcripts shall be for the use of the parties as the court may direct. The court shall set a time for the hearing and the designee shall thereupon prepare a notice designating a time for the hearing of said report and serve a copy thereof, together with a copy of his report, on all persons, their agents or attorneys who have appeared in such proceeding. Such service shall be made not less than twenty days before the time for said hearing, either personally or by registered mail, and an affidavit of such service filed with the clerk.

Sec. 54. RCW 90.03.200 and 1988 c 202 s 91 are each amended to read as follows:

Upon the filing of the evidence and the report of the ((~~department~~)) division engineer, any interested party may, on or before five days prior to the date of said hearing, file exceptions to such report in writing and such exception shall set forth the grounds therefor and a copy thereof shall be served personally or by registered mail upon all parties who have appeared in the proceeding. If no exceptions be filed, the court shall enter a decree determining the rights of the parties according to the evidence and the report of the ((~~department~~)) division engineer, whether such parties have appeared therein or not. If exceptions are filed the action shall proceed as in case of reference of a suit in equity and the court may in its discretion take further evidence or, if necessary, remand the case for such further evidence to be taken by the ((~~department's~~)) division engineer's designee, and may require further report by him. Costs, not including taxable attorneys fees, may be allowed or not; if allowed, may be apportioned among the parties in the discretion of the court. Appellate review of the decree shall be in the same manner as in other cases in equity, except that review must be sought within sixty days from the entry thereof.

Sec. 55. RCW 90.03.210 and 1988 c 202 s 92 are each amended to read as follows:

During the pendency of such adjudication proceedings prior to judgment or upon review by an appellate court, the stream or other water involved shall be regulated or partially regulated according to the schedule of rights specified in the ((~~department's~~)) division engineer's report upon an order of the court authorizing such regulation: PROVIDED, Any interested party may file a bond and obtain an order staying the regulation of said stream as to him, in which case the court shall make such order regarding the regulation of the stream or other water as he may deem just. The bond shall be filed within five days following the service of notice of appeal in an amount to be fixed by the court and with sureties satisfactory to the court, conditioned to perform the judgment of the court.

Sec. 56. RCW 90.03.230 and 1987 c 109 s 81 are each amended to read as follows:

The clerk of the superior court, immediately upon the entry of any decree by the superior court, shall transmit a certified copy thereof to the ((~~director~~)) division engineer, who shall immediately enter the same upon the records of the ((~~department~~)) division engineer.

Sec. 57. RCW 90.03.240 and 1987 c 109 s 82 are each amended to read as follows:

Upon the final determination of the rights to the diversion of water it shall be the duty of the ((~~department~~)) division engineer to issue to each person entitled to the diversion of water by such determination, a certificate under his official seal, setting forth the name and post office address of such person; the priority and purpose of the right; the period during which said right may be exercised, the point of diversion and the place of use; the land to which said water right is appurtenant and when applicable the maximum quantity of water allowed.

Sec. 58. RCW 90.03.247 and 1994 c 264 s 82 are each amended to read as follows:

Whenever an application for a permit to make beneficial use of public waters is approved relating to a stream or other water body for which minimum flows or levels have been adopted and are in effect at the time of approval, the permit shall be conditioned to protect the levels or flows. No agency may establish minimum flows and levels or similar water flow or level restrictions for any stream or lake of the state other than the ((~~department of ecology~~)) division engineer whose authority to establish is exclusive, as provided in chapter 90.03 RCW and RCW 90.22.010 and 90.54.040. The provisions of other statutes, including but not limited to RCW 75.20.100 and chapter 43.21C RCW, may not be interpreted in a manner that is inconsistent with this section. In establishing such minimum flows, levels, or similar restrictions, the ((~~department~~)) division engineer shall, during all stages of development by the ((~~department of ecology~~)) division engineer of minimum flow proposals, consult with, and carefully consider the recommendations of, the department of fish and wildlife, the state energy office, the department of agriculture, and representatives of the affected Indian tribes. Nothing herein shall preclude the department of fish and wildlife, the energy office, or the department of agriculture from presenting its views on minimum flow needs at any public hearing or to any person or agency, and the department of fish and wildlife, the energy office, and the department of agriculture are each empowered to participate in proceedings of the federal energy regulatory commission and other agencies to present its views on minimum flow needs.

Sec. 59. RCW 90.03.250 and 1987 c 109 s 83 are each amended to read as follows:

Any person, municipal corporation, firm, irrigation district, association, corporation or water users' association hereafter desiring to appropriate water for a beneficial use shall make an application to the ((~~department~~)) division engineer for a permit to make such appropriation, and shall not use or divert such waters until he has received a permit from the ((~~department~~)) division engineer as in this chapter provided. The construction of any ditch, canal or works, or performing any work in connection with said construction or appropriation, or the use of any waters, shall not be an appropriation of such water nor an act for the purpose of appropriating water unless a permit to make said appropriation has first been granted by the ((~~department~~)) division engineer: PROVIDED, That a temporary permit may be granted upon a proper showing made to the ((~~department~~)) division engineer to be valid only during the pendency of such application for a permit unless sooner revoked by the ((~~department~~)) division engineer: PROVIDED, FURTHER, That nothing in this chapter contained shall be deemed to affect RCW 90.40.010 through 90.40.080 except that the notice and certificate therein provided for in RCW 90.40.030 shall be addressed to the ((~~department~~)) division engineer, and the ((~~department~~)) division engineer shall exercise the powers and perform the duties prescribed by RCW 90.40.030.

Sec. 60. RCW 90.03.260 and 1987 c 109 s 84 are each amended to read as follows:

Each application for permit to appropriate water shall set forth the name and post office address of the applicant, the source of water supply, the nature and amount of the proposed use, the time during which water will be required each year, the location and description of the proposed ditch, canal, or other work, the time within which the completion of the construction and the time for the complete application of the water to the proposed use. If for agricultural purposes, it shall give the legal subdivision of the land and the acreage to be irrigated, as near as may be, and the amount of water expressed in acre feet to be supplied per season. If for power purposes, it shall give the nature of the works by means of which the power is to be developed, the head and amount of water to be utilized, and the uses to which the power is to be applied. If for construction of a reservoir, it shall give the height of the dam, the capacity of the reservoir, and the uses to be made of the impounded waters. If for municipal water supply, it shall give the present population to be served, and, as near as may be, the future requirement of the municipality. If for mining purposes, it shall give the nature of the mines to be served and the method of supplying and utilizing the water; also their location by legal subdivisions. All applications shall be accompanied by such maps and drawings, in duplicate, and such other data, as may be required by the ((~~department~~)) division engineer, and such accompanying data shall be considered as a part of the application.

Sec. 61. RCW 90.03.270 and 1987 c 109 s 85 are each amended to read as follows:

Upon receipt of an application it shall be the duty of the ((~~department~~)) division engineer to make an endorsement thereon of the date of its receipt, and to keep a record of same. If upon examination, the application is found to be defective, it shall be returned to the applicant for correction or completion, and the date and the reasons for the return thereof shall be endorsed thereon and made a record in his office. No application shall lose its priority of filing on account of such defects, provided acceptable maps, drawings and such data as is required by the ((~~department~~)) division engineer shall be filed with the ((~~department~~)) division engineer within such reasonable time as it shall require.

Sec. 62. RCW 90.03.280 and 1994 c 264 s 83 are each amended to read as follows:

Upon receipt of a proper application, the ((~~department~~)) division engineer shall instruct the applicant to publish notice thereof in a form and within a time prescribed by the ((~~department~~)) division engineer in a newspaper of general circulation published in the county or counties in which the storage, diversion, and use is to be made, and in such other newspapers as the ((~~department~~)) division engineer may direct, once a week for two consecutive weeks. Upon receipt by the ((~~department~~)) division engineer of an application it shall send notice thereof containing pertinent information to the director of fish and wildlife.

Sec. 63. RCW 90.03.290 and 1994 c 264 s 84 are each amended to read as follows:

When an application complying with the provisions of this chapter and with the rules and regulations of the ((~~department~~)) division engineer has been filed, the same shall be placed on record with the ((~~department~~)) division engineer, and it shall be its duty to investigate the application, and determine what water, if any, is available for appropriation, and find and determine to what beneficial use or uses it can be applied. If it is proposed to appropriate water for irrigation purposes, the ((~~department~~)) division engineer shall investigate, determine and find what lands are capable of irrigation by means of water found available for appropriation. If it is proposed to appropriate water for the purpose of power development, the ((~~department~~)) division engineer shall investigate, determine and find whether the proposed development is likely to prove detrimental to the public interest, having in mind the highest feasible use of the waters belonging to the public. If the application does not contain, and the applicant does not promptly furnish sufficient information on which to base such findings, the ((~~department~~)) division engineer may issue a preliminary permit, for a period of not to exceed three years, requiring the applicant to make such surveys, investigations, studies, and progress reports, as in the opinion of the ((~~department~~)) division engineer may be necessary. If the applicant fails to comply with the conditions of the preliminary permit, it and the application or applications on which it is based shall be automatically canceled and the applicant so notified. If the holder of a preliminary permit shall, before its expiration, file with the ((~~department~~)) division engineer a verified report of expenditures made and work done under the preliminary permit, which, in the opinion of the ((~~department~~)) division engineer, establishes the good faith, intent and ability of the applicant to carry on the proposed development, the preliminary permit may, with the approval of the governor, be extended, but not to exceed a maximum period of five years from the date of the issuance of the preliminary permit. The ((~~department~~)) division engineer shall make and file as part of the record in the matter, written findings of fact concerning all things investigated, and if it shall find that there is water available for appropriation for a beneficial use, and the appropriation thereof as proposed in the application will not impair existing rights or be detrimental to the public welfare, it shall issue a permit stating the amount of water to which the applicant shall be entitled and the beneficial use or uses to which it may be applied: PROVIDED, That where the water applied for is to be used for irrigation purposes, it shall become appurtenant only to such land as may be reclaimed thereby to the full extent of the soil for agricultural purposes. But where there is no unappropriated water in the proposed source of supply, or where the proposed use conflicts with existing rights, or threatens to prove detrimental to the public interest, having due regard to the highest feasible development of the use of the waters belonging to the public, it shall be duty of the ((~~department~~)) division engineer to reject such application and to refuse to issue the permit asked for. If the permit is refused because of conflict with existing rights and such applicant shall acquire same by purchase or condemnation under RCW 90.03.040, the ((~~department~~)) division engineer may thereupon grant such permit. Any application may be approved for a less amount of water than that applied for, if there exists substantial reason therefor, and in any event shall not be approved for more water than can be applied to beneficial use for the purposes named in the application. In determining whether or not a permit shall issue upon any application, it shall be the duty of the ((~~department~~)) division engineer to investigate all facts relevant and material to the application. After the ((~~department~~)) division engineer approves said application in whole or in part and before any permit shall be issued thereon to the applicant, such applicant shall pay the fee provided in RCW 90.03.470: PROVIDED FURTHER, That in the event a permit is issued by the ((~~department~~)) division engineer upon any application, it shall be its duty to notify the director of fish and wildlife of such issuance.

Sec. 64. RCW 90.03.300 and 1987 c 109 s 87 are each amended to read as follows:

No permit for the appropriation of water shall be denied because of the fact that the point of diversion described in the application for such permit, or any portion of the works in such application described and to be constructed for the purpose of storing, conserving, diverting or distributing such water, or because the place of intended use or the lands to be irrigated by means of such water, or any part thereof, may be situated in some other state or nation, but in all such cases where either the point of diversion or any of such works or the place of intended use, or the lands, or part of the lands, to be irrigated by means of such water, are situated within the state of Washington, the permit shall issue as in other cases: PROVIDED, HOWEVER, That the ((~~department~~)) division engineer may in its discretion, decline to issue a permit where the point of diversion described in the application is within the state of Washington but the place of beneficial use in some other state or nation, unless under the laws of such state or nation water may be lawfully diverted within such state or nation for beneficial use in the state of Washington.

Sec. 65. RCW 90.03.310 and 1987 c 109 s 88 are each amended to read as follows:

Any permit to appropriate water may be assigned subject to the conditions of the permit, but no such assignment shall be binding or valid unless filed for record with the ((~~department~~)) division engineer. Any application for permits to appropriate water prior to permit issuing, may be assigned by the applicant, but no such assignment shall be valid or binding unless the written consent of the ((~~department~~)) division engineer is first obtained thereto, and unless such assignment is filed for record with the ((~~department~~)) division engineer.

Sec. 66. RCW 90.03.320 and 1987 c 109 s 67 are each amended to read as follows:

Actual construction work shall be commenced on any project for which permit has been granted within such reasonable time as shall be prescribed by the ((~~department~~)) division engineer, and shall thereafter be prosecuted with diligence and completed within the time prescribed by the ((~~department~~)) division engineer. The ((~~department~~)) division engineer, in fixing the time for the commencement of the work, or for the completion thereof and the application of the water to the beneficial use prescribed in the permit, shall take into consideration the cost and magnitude of the project and the engineering and physical features to be encountered, and shall allow such time as shall be reasonable and just under the conditions then existing, having due regard for the public welfare and public interests affected: and, for good cause shown, it shall extend the time or times fixed as aforesaid, and shall grant such further period or periods as may be reasonably necessary, having due regard to the good faith of the applicant and the public interests affected. If the terms of the permit or extension thereof, are not complied with the ((~~department~~)) division engineer shall give notice by registered mail that such permit will be canceled unless the holders thereof shall show cause within sixty days why the same should not be so canceled. If cause be not shown, said permit shall be canceled.

Sec. 67. RCW 90.03.330 and 1987 c 109 s 89 are each amended to read as follows:

Upon a showing satisfactory to the ((~~department~~)) division engineer that any appropriation has been perfected in accordance with the provisions of this chapter, it shall be the duty of the ((~~department~~)) division engineer to issue to the applicant a certificate stating such facts in a form to be prescribed by him, and such certificate shall thereupon be recorded with the ((~~department~~)) division engineer. Any original water right certificate issued, as provided by this chapter, shall be recorded with the ((~~department~~)) division engineer and thereafter, at the expense of the party receiving the same, be by the ((~~department~~)) division engineer transmitted to the county auditor of the county or counties where the distributing system or any part thereof is located, and be recorded in the office of such county auditor, and thereafter be transmitted to the owner thereof.

Sec. 68. RCW 90.03.340 and 1987 c 109 s 90 are each amended to read as follows:

The right acquired by appropriation shall relate back to the date of filing of the original application with the ((~~department~~)) division engineer.

Sec. 69. RCW 90.03.345 and 1979 ex.s. c 216 s 7 are each amended to read as follows:

The establishment of reservations of water for agriculture, hydroelectric energy, municipal, industrial, and other beneficial uses under RCW 90.54.050(1) or minimum flows or levels under RCW 90.22.010 or 90.54.040 shall constitute appropriations within the meaning of this chapter with priority dates as of the effective dates of their establishment. Whenever an application for a permit to make beneficial use of public waters embodied in a reservation, established after September 1, 1979, is filed with the ((~~department of ecology~~)) division engineer after the effective date of such reservation, the priority date for a permit issued pursuant to an approval by the ((~~department of ecology~~)) division engineer of the application shall be the effective date of the reservation.

Sec. 70. RCW 90.03.350 and 1994 c 232 s 20 are each amended to read as follows:

Any person, corporation or association intending to construct or modify any dam or controlling works for the storage of ten acre feet or more of water, shall before beginning said construction or modification, submit plans and specifications of the same to the ((~~department~~)) division engineer for examination and approval as to its safety. Such plans and specifications shall be submitted in duplicate, one copy of which shall be retained as a public record, by the ((~~department~~)) division engineer, and the other returned with its approval or rejection endorsed thereon. No such dam or controlling works shall be constructed or modified until the same or any modification thereof shall have been approved as to its safety by the ((~~department~~)) division engineer. Any such dam or controlling works constructed or modified in any manner other than in accordance with plans and specifications approved by the ((~~department~~)) division engineer or which shall not be maintained in accordance with the order of the ((~~department~~)) division engineer shall be presumed to be a public nuisance and may be abated in the manner provided by law, and it shall be the duty of the attorney general or prosecuting attorney of the county wherein such dam or controlling works, or the major portion thereof, is situated to institute abatement proceedings against the owner or owners of such dam or controlling works, whenever he or she is requested to do so by the ((~~department~~)) division engineer.

A metals mining and milling operation regulated under chapter 232, Laws of 1994 is subject to additional dam safety inspection requirements due to the special hazards associated with failure of a tailings pond impoundment. The ((~~department~~)) division engineer shall inspect these impoundments at least quarterly during the project's operation and at least annually thereafter for the postclosure monitoring period in order to ensure the safety of the dam or controlling works. The ((~~department~~)) division engineer shall conduct additional inspections as needed during the construction phase of the mining operation in order to ensure the safe construction of the tailings impoundment.

Sec. 71. RCW 90.03.360 and 1994 c 264 s 85 are each amended to read as follows:

(1) The owner or owners of any water diversion shall maintain, to the satisfaction of the ((~~department of ecology~~)) division engineer, substantial controlling works and a measuring device constructed and maintained to permit accurate measurement and practical regulation of the flow of water diverted. Every owner or manager of a reservoir for the storage of water shall construct and maintain, when required by the ((~~department~~)) division engineer, any measuring device necessary to ascertain the natural flow into and out of said reservoir.

Metering of diversions or measurement by other approved methods shall be required as a condition for all new surface water right permits, and except as provided in subsection (2) of this section, may be required as a condition for all previously existing surface water rights. The ((~~department~~)) division engineer may also require, as a condition for all water rights, metering of diversions, and reports regarding such metered diversions as to the amount of water being diverted. Such reports shall be in a form prescribed by the ((~~department~~)) division engineer.

(2) Where water diversions are from waters in which the salmonid stock status is depressed or critical, as determined by the department of fish and wildlife, or where the volume of water being diverted exceeds one cubic foot per second, the ((~~department~~)) division engineer shall require metering or measurement by other approved methods as a condition for all new and previously existing water rights or claims. The ((~~department~~)) division engineer shall attempt to integrate the requirements of this subsection into its existing compliance workload priorities, but shall prioritize the requirements of this subsection ahead of the existing compliance workload where a delay may cause the decline of wild salmonids. The ((~~department~~)) division engineer shall notify the department of fish and wildlife of the status of fish screens associated with these diversions.

This subsection (2) shall not apply to diversions for public or private hatcheries or fish rearing facilities if the diverted water is returned directly to the waters from which it was diverted.

Sec. 72. RCW 90.03.370 and 1987 c 109 s 93 are each amended to read as follows:

All applications for reservoir permits shall be subject to the provisions of RCW 90.03.250 through 90.03.320. But the party or parties proposing to apply to a beneficial use the water stored in any such reservoir shall also file an application for a permit, to be known as the secondary permit, which shall be in compliance with the provisions of RCW 90.03.250 through 90.03.320. Such secondary application shall refer to such reservoir as its source of water supply and shall show documentary evidence that an agreement has been entered into with the owners of the reservoir for a permanent and sufficient interest in said reservoir to impound enough water for the purposes set forth in said application. When the beneficial use has been completed and perfected under the secondary permit, the ((~~department~~)) division engineer shall take the proof of the water users under such permit and the final certificate of appropriation shall refer to both the ditch and works described in the secondary permit and the reservoir described in the primary permit.

Sec. 73. RCW 90.03.380 and 1991 c 347 s 15 are each amended to read as follows:

The right to the use of water which has been applied to a beneficial use in the state shall be and remain appurtenant to the land or place upon which the same is used: PROVIDED, HOWEVER, That said right may be transferred to another or to others and become appurtenant to any other land or place of use without loss of priority of right theretofore established if such change can be made without detriment or injury to existing rights. The point of diversion of water for beneficial use or the purpose of use may be changed, if such change can be made without detriment or injury to existing rights. Before any transfer of such right to use water or change of the point of diversion of water or change of purpose of use can be made, any person having an interest in the transfer or change, shall file a written application therefor with the ((~~department~~)) division engineer, and said application shall not be granted until notice of said application shall be published as provided in RCW 90.03.280. If it shall appear that such transfer or such change may be made without injury or detriment to existing rights, the ((~~department~~)) division engineer shall issue to the applicant a certificate in duplicate granting the right for such transfer or for such change of point of diversion or of use. The certificate so issued shall be filed and be made a record with the ((~~department~~)) division engineer and the duplicate certificate issued to the applicant may be filed with the county auditor in like manner and with the same effect as provided in the original certificate or permit to divert water.

If an application for change proposes to transfer water rights from one irrigation district to another, the ((~~department~~)) division engineer shall, before publication of notice, receive concurrence from each of the irrigation districts that such transfer or change will not adversely affect the ability to deliver water to other landowners or impair the financial integrity of either of the districts.

A change in place of use by an individual water user or users of water provided by an irrigation district need only receive approval for the change from the board of directors of the district if the use of water continues within the irrigation district.

This section shall not apply to trust water rights acquired by the state through the funding of water conservation projects under chapter 90.38 RCW or RCW 90.42.010 through 90.42.070.

Sec. 74. RCW 90.03.383 and 1991 c 350 s 1 are each amended to read as follows:

(1) The legislature recognizes the value of interties for improving the reliability of public water systems, enhancing their management, and more efficiently utilizing the increasingly limited resource. Given the continued growth in the most populous areas of the state, the increased complexity of public water supply management, and the trend toward regional planning and regional solutions to resource issues, interconnections of public water systems through interties provide a valuable tool to ensure reliable public water supplies for the citizens of the state. Public water systems have been encouraged in the past to utilize interties to achieve public health and resource management objectives. The legislature finds that it is in the public interest to recognize interties existing and in use as of January 1, 1991, and to have associated water rights modified by the ((~~department of ecology~~)) division engineer to reflect current use of water through those interties, pursuant to subsection (3) of this section. The legislature further finds it in the public interest to develop a coordinated process to review proposals for interties commencing use after January 1, 1991.

(2) For the purposes of this section, the following definitions shall apply:

(a) "Interties" are interconnections between public water systems permitting exchange or delivery of water between those systems for other than emergency supply purposes, where such exchange or delivery is within established instantaneous and annual withdrawal rates specified in the systems' existing water right permits or certificates, or contained in claims filed pursuant to chapter 90.14 RCW, and which results in better management of public water supply consistent with existing rights and obligations. Interties include interconnections between public water systems permitting exchange or delivery of water to serve as primary or secondary sources of supply, but do not include development of new sources of supply to meet future demand.

(b) "Service area" is the area designated in a water system plan or a coordinated water system plan pursuant to chapter 43.20 or 70.116 RCW respectively. When a public water system does not have a designated service area subject to the approval process of those chapters, the service area shall be the designated place of use contained in the water right permit or certificate, or contained in the claim filed pursuant to chapter 90.14 RCW.

(3) Public water systems with interties existing and in use as of January 1, 1991, or that have received written approval from the department of health prior to that date, shall file written notice of those interties with the department of health and the ((~~department of ecology~~)) division engineer. The notice may be incorporated into the public water system's five-year update of its water system plan, but shall be filed no later than June 30, 1996. The notice shall identify the location of the intertie; the dates of its first use; the purpose, capacity, and current use; the intertie agreement of the parties and the service areas assigned; and other information reasonably necessary to modify the water right permit. Notwithstanding the provisions of RCW 90.03.380 and 90.44.100, for public water systems with interties existing and in use as of January 1, 1991, the ((~~department of ecology~~)) division engineer, upon receipt of notice meeting the requirements of this subsection, shall, as soon as practicable, modify the place of use descriptions in the water right permits, certificates, or claims to reflect the actual use through such interties, provided that the place of use is within service area designations established in a water system plan approved pursuant to chapter 43.20 RCW, or a coordinated water system plan approved pursuant to chapter 70.116 RCW, and further provided that the water used is within the instantaneous and annual withdrawal rates specified in the water right permit and that no outstanding complaints of impairment to existing water rights have been filed with the ((~~department of ecology~~)) division engineer prior to September 1, 1991. Where such complaints of impairment have been received, the ((~~department of ecology~~)) division engineer shall make all reasonable efforts to resolve them in a timely manner through agreement of the parties or through available administrative remedies.

(4) Notwithstanding the provisions of RCW 90.03.380 and 90.44.100, exchange or delivery of water through interties commencing use after January 1, 1991, shall be permitted when the intertie improves overall system reliability, enhances the manageability of the systems, provides opportunities for conjunctive use, or delays or avoids the need to develop new water sources, and otherwise meets the requirements of this section, provided that each public water system's water use shall not exceed the instantaneous or annual withdrawal rate specified in its water right authorization, shall not adversely affect existing water rights, and shall not be inconsistent with state-approved plans such as water system plans or other plans which include specific proposals for construction of interties. Interties commencing use after January 1, 1991, shall not be inconsistent with regional water resource plans developed pursuant to chapter 90.54 RCW.

(5) For public water systems subject to the approval process of chapter 43.20 RCW or chapter 70.116 RCW, proposals for interties commencing use after January 1, 1991, shall be incorporated into water system plans pursuant to chapter 43.20 RCW or coordinated water system plans pursuant to chapter 70.116 RCW and submitted to the department of health and the ((~~department of ecology~~)) division engineer for review and approval as provided for in subsections (5) through (9) of this section. The plan shall state how the proposed intertie will improve overall system reliability, enhance the manageability of the systems, provide opportunities for conjunctive use, or delay or avoid the need to develop new water sources.

(6) The department of health shall be responsible for review and approval of proposals for new interties. In its review the department of health shall determine whether the intertie satisfies the criteria of subsection (4) of this section, with the exception of water rights considerations, which are the responsibility of the ((~~department of ecology~~)) division engineer, and shall determine whether the intertie is necessary to address emergent public health or safety concerns associated with public water supply.

(7) If the intertie is determined by the department of health to be necessary to address emergent public health or safety concerns associated with public water supply, the public water system shall amend its water system plan as required and shall file an application with the ((~~department of ecology~~)) division engineer to change its existing water right to reflect the proposed use of the water as described in the approved water system plan. The ((~~department of ecology~~)) division engineer shall process the application for change pursuant to RCW 90.03.380 or 90.44.100 as appropriate, except that, notwithstanding the requirements of those sections regarding notice and protest periods, applicants shall be required to publish notice one time, and the comment period shall be fifteen days from the date of publication of the notice. Within sixty days of receiving the application, the ((~~department of ecology~~)) division engineer shall issue findings and advise the department of health if existing water rights are determined to be adversely affected. If no determination is provided by the ((~~department of ecology~~)) division engineer within the sixty-day period, the department of health shall proceed as if existing rights are not adversely affected by the proposed intertie. The ((~~department of ecology~~)) division engineer may obtain an extension of the sixty-day period by submitting written notice to the department of health and to the applicant indicating a definite date by which its determination will be made. No additional extensions shall be granted, and in no event shall the total review period for the ((~~department of ecology~~)) division engineer exceed one hundred eighty days.

(8) If the department of health determines the proposed intertie appears to meet the requirements of subsection (4) of this section but is not necessary to address emergent public health or safety concerns associated with public water supply, the department of health shall instruct the applicant to submit to the ((~~department of ecology~~)) division engineer an application for change to the underlying water right or claim as necessary to reflect the new place of use. The ((~~department of ecology~~)) division engineer shall consider the applications pursuant to the provisions of RCW 90.03.380 and 90.44.100 as appropriate. If in its review of proposed interties and associated water rights the ((~~department of ecology~~)) division engineer determines that additional information is required to act on the application, the ((~~department~~)) division engineer may request applicants to provide information necessary for its decision, consistent with agency rules and written guidelines. Parties disagreeing with the decision of the ((~~department of ecology~~)) division engineer on the application for change in place of use may appeal the decision ((~~to the pollution control hearings board~~)) under chapter 34.05 RCW.

(9) The department of health may approve plans containing intertie proposals prior to the ((~~department of ecology's~~)) division engineer's decision on the water right application for change in place of use. However, notwithstanding such approval, construction work on the intertie shall not begin until the ((~~department of ecology~~)) division engineer issues the appropriate water right document to the applicant consistent with the approved plan.

Sec. 75. RCW 90.03.386 and 1991 c 350 s 2 are each amended to read as follows:

Within service areas established pursuant to chapters 43.20 and 70.116 RCW, the ((~~department of ecology~~)) division engineer and the department of health shall coordinate approval procedures to ensure compliance and consistency with the approved water system plan.

Sec. 76. RCW 90.03.390 and 1991 c 350 s 3 are each amended to read as follows:

RCW 90.03.380 shall not be construed to prevent water users from making a seasonal or temporary change of point of diversion or place of use of water when such change can be made without detriment to existing rights, but in no case shall such change be made without the permission of the water master of the district in which such proposed change is located, or of the ((~~department~~)) division engineer. Nor shall RCW 90.03.380 be construed to prevent construction of emergency interties between public water systems to permit exchange of water during short-term emergency situations, or rotation in the use of water for bringing about a more economical use of the available supply, provided however, that the department of health in consultation with the ((~~department of ecology~~)) division engineer shall adopt rules or develop written guidelines setting forth standards for determining when a short-term emergency exists and the circumstances in which emergency interties are permitted. The rules or guidelines shall be consistent with the procedures established in RCW 43.83B.400 through 43.83B.420. Water users owning lands to which water rights are attached may rotate in the use of water to which they are collectively entitled, or an individual water user having lands to which are attached water rights of a different priority, may in like manner rotate in use when such rotation can be made without detriment to other existing water rights, and has the approval of the water master or ((~~department~~)) division engineer.

Sec. 77. RCW 90.03.430 and 1987 c 109 s 96 are each amended to read as follows:

In all cases where irrigating ditches are owned by two or more persons and one or more of such persons shall fail or neglect to do his, her or their proportionate share of the work necessary for the proper maintenance and operation of such ditch or ditches or to construct suitable headgates or measuring devices at the points where water is diverted from the main ditch, such owner or owners desiring the performance of such work as is reasonably necessary to maintain the ditch, may, after having given ten days' written notice to such owner or owners who have failed to perform his, her or their proportionate share of such work, necessary for the operation and maintenance of said ditch or ditches, perform his, her or their share of such work, and recover therefor from such person or persons so failing to perform his, her or their share of such work in any court having jurisdiction of the matter the expense or value of such work or labor so performed: PROVIDED, That no improvement involving an expenditure in excess of one hundred dollars shall be made without the written approval of the ((~~department~~)) division engineer having first been obtained.

Sec. 78. RCW 90.03.440 and 1987 c 109 s 97 are each amended to read as follows:

When two or more persons, joint owners in an irrigation ditch or reservoir, not incorporated, or their lessees, are unable to agree relative to the division or distribution of water received through their ditch or from their reservoir, and where there is no disagreement as to the ownership of said water, it shall be lawful for any such owner or owners, his or their lessee or lessees, or either of them, to apply to the ((~~department~~)) division engineer, in writing, setting forth such fact and giving such information as shall enable the ((~~department~~)) division engineer to estimate the probable expense of such service, asking the ((~~department~~)) division engineer to appoint some suitable person to take charge of such ditch or reservoir for the purpose of making a just division or distribution of the water from the same to the parties entitled to the use thereof. The ((~~department~~)) division engineer shall upon the receipt of such application notify the applicant of the probable expense of such division and upon receipt of certified check for said amount, the ((~~department~~)) division engineer shall appoint a suitable person to make such division. The person so appointed shall take exclusive charge of such ditch or reservoir for the purpose of dividing the water therefrom in accordance with the established rights of the diverters therefrom, and continue the said work until the necessity therefor shall cease to exist. The expense of such investigation and division shall be a charge upon all of the co-owners and the person advancing the payment to the ((~~department~~)) division engineer shall be entitled to recover in any court of competent jurisdiction from his co-owners their proportionate share of the expense.

Sec. 79. RCW 90.03.470 and 1993 c 495 s 2 are each amended to read as follows:

Except as otherwise provided in subsection (15) of this section, the following fees shall be collected by the ((~~department~~)) division engineer in advance:

(1) For the examination of an application for permit to appropriate water or on application to change point of diversion, withdrawal, purpose or place of use, a minimum of ten dollars, to be paid with the application. For each second foot between one and five hundred second feet, two dollars per second foot; for each second foot between five hundred and two thousand second feet, fifty cents per second foot; and for each second foot in excess thereof, twenty cents per second foot. For each acre foot of storage up to and including one hundred thousand acre feet, one cent per acre foot, and for each acre foot in excess thereof, one-fifth cent per acre foot. The ten dollar fee payable with the application shall be a credit to that amount whenever the fee for direct diversion or storage totals more than ten dollars under the above schedule and in such case the further fee due shall be the total computed amount less ten dollars.

Within five days from receipt of an application the ((~~department~~)) division engineer shall notify the applicant by registered mail of any additional fees due under the above schedule and any additional fees shall be paid to and received by the ((~~department~~)) division engineer within thirty days from the date of filing the application, or the application shall be rejected.

(2) For filing and recording a permit to appropriate water for irrigation purposes, forty cents per acre for each acre to be irrigated up to and including one hundred acres, and twenty cents per acre for each acre in excess of one hundred acres up to and including one thousand acres, and ten cents for each acre in excess of one thousand acres; and also twenty cents for each theoretical horsepower up to and including one thousand horsepower, and four cents for each theoretical horsepower in excess of one thousand horsepower, but in no instance shall the minimum fee for filing and recording a permit to appropriate water be less than five dollars. For all other beneficial purposes the fee shall be twice the amount of the examination fee except that for individual household and domestic use, which may include water for irrigation of a family garden, the fee shall be five dollars.

(3) For filing and recording any other water right instrument, four dollars for the first hundred words and forty cents for each additional hundred words or fraction thereof.

(4) For making a copy of any document recorded or filed in his office, forty cents for each hundred words or fraction thereof, but when the amount exceeds twenty dollars, only the actual cost in excess of that amount shall be charged.

(5) For certifying to copies, documents, records or maps, two dollars for each certification.

(6) For blueprint copies of a map or drawing, or, for such other work of a similar nature as may be required of the ((~~department~~)) division engineer, at actual cost of the work.

(7) For granting each extension of time for beginning construction work under a permit to appropriate water, an amount equal to one-half of the filing and recording fee, except that the minimum fee shall be not less than five dollars for each year that an extension is granted, and for granting an extension of time for completion of construction work or for completing application of water to a beneficial use, five dollars for each year that an extension is granted.

(8) For the inspection of any hydraulic works to insure safety to life and property, the actual cost of the inspection, including the expense incident thereto.

(9) For the examination of plans and specifications as to safety of controlling works for storage of ten acre feet or more of water, a minimum fee of ten dollars, or the actual cost.

(10) For recording an assignment either of a permit to appropriate water or of an application for such a permit, a fee of five dollars.

(11) For preparing and issuing all water right certificates, five dollars.

(12) For filing and recording a protest against granting any application, two dollars.

(13) The ((~~department~~)) division engineer shall provide timely notification by certified mail with return receipt requested to applicants that fees are due. No action may be taken until the fee is paid in full. Failure to remit fees within sixty days of the ((~~department's~~)) division engineer's notification shall be grounds for rejecting the application or canceling the permit. Cash shall not be accepted. Fees must be paid by check or money order and are nonrefundable.

(14) For purposes of calculating fees for ground water filings, one cubic foot per second shall be regarded as equivalent to four hundred fifty gallons per minute.

(15) For the period beginning July 1, 1993, and ending June 30, 1994, there is imposed and the ((~~department~~)) division engineer shall collect a one hundred dollar surcharge on all water rights applications or changes filed under this section, and upon all water rights applications or changes pending as of July 1, 1993. This charge shall be in addition to any other fees imposed under this section.

Sec. 80. RCW 90.03.471 and 1987 c 109 s 99 are each amended to read as follows:

All fees, collections, and revenues derived under RCW 90.03.470 or by virtue of RCW 90.03.180, shall be used exclusively for the purpose of carrying out the work and performing the functions of the ((~~division of water resources of the department~~)) division engineer.

Sec. 81. RCW 90.03.600 and 1987 c 109 s 157 are each amended to read as follows:

The power is granted to the ((~~department of ecology~~)) division engineer to levy civil penalties of up to one hundred dollars per day for violation of any of the provisions of this chapter and chapters 43.83B, 90.22, and 90.44 RCW, and rules, permits, and similar documents and regulatory orders of the ((~~department of ecology~~)) division engineer adopted or issued pursuant to such chapters. The procedures of RCW 90.48.144 shall be applicable to all phases of the levying of a penalty as well as review and appeal of the same.

Sec. 82. RCW 90.08.040 and 1977 c 22 s 1 are each amended to read as follows:

Where water rights of a stream have been adjudicated a stream patrolman shall be appointed by the ((~~director of the department of ecology~~)) division engineer upon application of water users having adjudicated water rights in each particular water resource making a reasonable showing of the necessity therefor, which application shall have been approved by the district water master if one has been appointed, at such time, for such stream, and for such periods of service as local conditions may indicate to be necessary to provide the most practical supervision and to secure to water users and owners the best protection in their rights.

The stream patrolman shall have the same powers as a water master appointed under RCW 90.03.060, but his or her district shall be confined to the regulation of waters of a designated stream or streams. Such patrolman shall be under the supervision of the ((~~director~~)) division engineer or his or her designated representative. He or she shall also enforce such special rules and regulations as the ((~~director~~)) division engineer may prescribe from time to time.

Sec. 83. RCW 90.08.050 and 1977 c 22 s 2 are each amended to read as follows:

Each stream patrolman shall receive a wage per day for each day actually employed in the duties of his office, or if employed by the month, he shall receive a salary per month, which wage or salary shall be fixed in the manner provided by law for the fixing of the salaries or compensation of other state officers or employees, plus travel expenses in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended, to be paid by the county in which the work is performed. In case the service extends over more than one county, each county shall pay its equitable part of such wage to be apportioned by the ((~~director~~)) division engineer. He shall be reimbursed for actual necessary expenses when absent from his designated headquarters in the performance of his duties, such expense to be paid by the county in which he renders the service. The accounts of the stream patrolman shall be audited and certified by the ((~~director~~)) division engineer and the county auditor shall issue a warrant therefor upon the current expense fund.

Sec. 84. RCW 90.14.041 and 1988 c 127 s 73 are each amended to read as follows:

All persons using or claiming the right to withdraw or divert and make beneficial use of public surface or ground waters of the state, except as hereinafter provided in this section, shall file with the ((~~department of ecology~~)) division engineer not later than June 30, 1974, a statement of claim for each water right asserted on a form provided by the ((~~department~~)) division engineer. This section shall not apply to any water rights which are based on the authority of a permit or certificate issued by the ((~~department of ecology~~)) division engineer or one of its predecessors.

Sec. 85. RCW 90.14.051 and 1973 1st ex.s. c 113 s 1 are each amended to read as follows:

The statement of claim for each right shall include substantially the following:

(1) The name and mailing address of the claimant.

(2) The name of the watercourse or water source from which the right to divert or make use of water is claimed, if available.

(3) The quantities of water and times of use claimed.

(4) The legal description, with reasonable certainty, of the point or points of diversion and places of use of waters.

(5) The purpose of use, including, if for irrigation, the number of acres irrigated.

(6) The approximate dates of first putting water to beneficial use for the various amounts and times claimed in subsection (3).

(7) The legal doctrine or doctrines upon which the right claimed is based, including if statutory, the specific statute.

(8) The sworn statement that the claim set forth is true and correct to the best of claimant's knowledge and belief.

Except, however, that any claim for diversion or withdrawal of surface or ground water for those uses described in the exemption from the permit requirements of RCW 90.44.050 may be filed on a short form to be provided by the ((~~department~~)) division engineer. Such short form shall only require inclusion of sufficient data to identify the claimant, source of water, purpose of use and legal description of the land upon which the water is used: PROVIDED, That the provisions of RCW 90.14.081 pertaining to evidentiary value of filed claims shall not apply to claims submitted in short form: AND PROVIDED FURTHER, That claimants for such minimal uses may, at their option, file statements of claim on the standard form used by all other claimants.

Sec. 86. RCW 90.14.061 and 1988 c 127 s 74 are each amended to read as follows:

Filing of a statement of a claim shall take place and be completed upon receipt by the ((~~department of ecology~~)) division engineer, at its office in Olympia, of an original statement signed by the claimant or his or her authorized agent, and two copies thereof. Any person required to file hereunder may file through a designated representative. A company, district, public or municipal corporation, or the United States when furnishing to persons water pertaining to water rights required to be filed under RCW 90.14.041, shall have the right to file one claim on behalf of said persons on a form prepared by the ((~~department~~)) division engineer for the total benefits of each person served; provided that a separate claim shall be filed by such company, district, public or private corporation, or the United States for each operating unit of the filing entity providing such water and for each water source. Within thirty days after receipt of a statement of claim the ((~~department~~)) division engineer shall acknowledge the same by a notation on one copy indicating receipt thereof and the date of receipt, together with the wording of the first sentence of RCW 90.14.081, and shall return said copy by certified or registered mail to the claimant at the address set forth in the statement of claim. No statement of claim shall be accepted for filing by the ((~~department of ecology~~)) division engineer unless accompanied by a two dollar filing fee.

Sec. 87. RCW 90.14.065 and 1987 c 93 s 1 are each amended to read as follows:

Any person or entity, or successor to such person or entity, having a statement of claim on file with the water rights claims registry on April 20, 1987, may submit to the ((~~department of ecology~~)) division engineer for filing, an amendment to such a statement of claim if the submitted amendment is based on:

(1) An error in estimation of the quantity of the applicant's water claim prescribed in RCW 90.14.051 if the applicant provides reasons for the failure to claim such right in the original claim;

(2) A change in circumstances not foreseeable at the time the original claim was filed, if such change in circumstances relates only to the manner of transportation or diversion of the water and not to the use or quantity of such water; or

(3) The amendment is ministerial in nature.

The ((~~department~~)) division engineer shall accept any such submission and file the same in the registry unless the ((~~department~~)) division engineer by written determination concludes that the requirements of subsection (1), (2), or (3) of this section have not been satisfied. Any person aggrieved by a determination of the ((~~department~~)) division engineer may obtain a review thereof by filing a petition for review ((~~with the pollution control hearings board~~)) under chapter 34.05 RCW within thirty days of the date of the determination by the ((~~department~~)) division engineer. The provisions of RCW 90.14.081 shall apply to any amendment filed under this section.

Sec. 88. RCW 90.14.091 and 1988 c 127 s 75 are each amended to read as follows:

For the purpose of RCW 90.14.031 through 90.14.121 the following words and phrases shall have the following meanings:

(1) "Statement of taxes due" means the statement required under RCW 84.56.050.

(2) "Notice in writing" means a notice substantially in the following form:

WATER RIGHTS NOTICE

Every person, including but not limited to an individual, partnership, association, public or private corporation, city or other municipality, county, state agency and the state of Washington, and the United States of America, when claiming water rights established under the laws of the state of Washington, are hereby notified that all water rights or claimed water rights relating to the withdrawal or diversion of public surface or ground waters of the state, except those water rights based upon authority of a permit or certificate issued by the ((~~department of ecology~~)) division engineer or one of its predecessors, must be registered with the ((~~department of ecology~~)) division engineer, Olympia, Washington not later than June 30, 1974. FAILURE TO REGISTER AS REQUIRED BY LAW WILL RESULT IN A WAIVER AND RELINQUISHMENT OF SAID WATER RIGHT OR CLAIMED WATER RIGHT. For further information contact the ((~~Department of Ecology~~)) Division Engineer, Olympia, Washington, for a copy of the act and an explanation thereof.

Sec. 89. RCW 90.14.101 and 1988 c 127 s 76 are each amended to read as follows:

To insure that all persons referred to in RCW 90.14.031 and 90.14.041 are notified of the registration provisions of this chapter, the ((~~department of ecology~~)) division engineer is directed to give notice of the registration provisions of this chapter as follows:

(1) It shall cause a notice in writing to be placed in a prominent and conspicuous place in all newspapers of the state having a circulation of more than fifty thousand copies for each week day, and in at least one newspaper published in each county of the state, at least once each year for five consecutive years.

(2) It shall cause a notice substantially the same as a notice in writing to be broadcast by each commercial television station operating in the United States and viewed in the state, and by at least one commercial radio station operating from each county of the state having such a station regularly at six month intervals for five consecutive years.

(3) It shall cause a notice in writing to be placed in a prominent and conspicuous location in each county court house in the state.

(4) The county treasurer of each county shall enclose with each mailing of one or more statements of taxes due issued in 1972 a copy of a notice in writing and a declaration that it shall be the duty of the recipient of the statement of taxes due to forward the notice to the beneficial owner of the property. A sufficient number of copies of the notice and declaration shall be supplied to each county treasurer by the ((~~director of ecology~~)) division engineer before the fifteenth day of January, 1972. In the implementation of this subsection the ((~~department of ecology~~)) division engineer shall provide reimbursement to the county treasurer for the reasonable additional costs, if any there may be, incurred by said treasurer arising from the inclusion of a notice in writing as required herein.

(5) It shall provide copies of the notice in writing to the press services with offices located in Thurston county during January of the years 1970, 1971, 1972, 1973 and 1974.

The ((~~director of the department~~)) division engineer may also in ((~~his~~)) its discretion give notice in any other manner which will carry out the purposes of this section. Where notice in writing is given pursuant to subsections (1) and (3) of this section, RCW 90.14.041, 90.14.051 and 90.14.071 shall be set forth and quoted in full.

Sec. 90. RCW 90.14.111 and 1988 c 127 s 77 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer is directed to establish a registry entitled the "Water Rights Claims Registry". All claims set forth pursuant to RCW 90.14.041, 90.14.051 and 90.14.061 shall be filed in the registry alphabetically and consecutively by control number, and by such other manner as deemed appropriate by the ((~~department~~)) division engineer.

Sec. 91. RCW 90.14.130 and 1987 c 109 s 13 are each amended to read as follows:

When it appears to the ((~~department of ecology~~)) division engineer that a person entitled to the use of water has not beneficially used his or her water right or some portion thereof, and it appears that said right has or may have reverted to the state because of such nonuse, as provided by RCW 90.14.160, 90.14.170, or 90.14.180, the ((~~department of ecology~~)) division engineer shall notify such person by order: PROVIDED, That where a company, association, district, or the United States has filed a blanket claim under ((~~the provisions of RCW 90.14.060~~)) this chapter for the total benefits of those served by it, the notice shall be served on such company, association, district or the United States and not upon any of its individual water users who may not have used the water or some portion thereof which they were entitled to use. The order shall contain: (1) A description of the water right, including the approximate location of the point of diversion, the general description of the lands or places where such waters were used, the water source, the amount involved, the purpose of use, and the apparent authority upon which the right is based; (2) a statement that unless sufficient cause be shown on appeal the water right will be declared relinquished; and (3) a statement that such order may be appealed to the ((~~pollution control hearings board~~)) superior court. Any person aggrieved by such an order may appeal it to the ((~~pollution control hearings board pursuant to RCW 43.21B.310~~)) superior court. The order shall be served by registered or certified mail to the last known address of the person and be posted at the point of division or withdrawal. The order by itself shall not alter the recipient's right to use water, if any.

Sec. 92. RCW 90.14.150 and 1987 c 109 s 100 are each amended to read as follows:

Nothing in this chapter shall be construed to affect any rights or privileges arising from any permit to withdraw public waters or any application for such permit, but the ((~~department of ecology~~)) division engineer shall grant extensions of time to the holder of a preliminary permit only as provided by RCW 90.03.290.

Sec. 93. RCW 90.14.180 and 1987 c 109 s 101 are each amended to read as follows:

Any person hereafter entitled to divert or withdraw waters of the state through an appropriation authorized under RCW 90.03.330, 90.44.080, or 90.44.090 who abandons the same, or who voluntarily fails, without sufficient cause, to beneficially use all or any part of said right to withdraw for any period of five successive years shall relinquish such right or portion thereof, and such right or portion thereof shall revert to the state, and the waters affected by said right shall become available for appropriation in accordance with RCW 90.03.250. All certificates hereafter issued by the ((~~department of ecology~~)) division engineer pursuant to RCW 90.03.330 shall expressly incorporate this section by reference.

Sec. 94. RCW 90.14.190 and 1987 c 109 s 14 are each amended to read as follows:

Any person feeling aggrieved by any decision of the ((~~department of ecology~~)) division engineer may have the same reviewed pursuant to ((~~RCW 43.21B.310~~)) chapter 34.05 RCW. In any such review, the findings of fact as set forth in the report of the ((~~department of ecology~~)) division engineer shall be prima facie evidence of the fact of any waiver or relinquishment of a water right or portion thereof. If the hearing((~~s board~~)) affirms the decision of the ((~~department~~)) division engineer, a party seeks review in superior court of that ((~~hearings board~~)) decision pursuant to chapter 34.05 RCW, and the court determines that the party was injured by an arbitrary, capricious, or erroneous order of the ((~~department~~)) division engineer, the court may award reasonable attorneys' fees.

Sec. 95. RCW 90.14.200 and 1989 c 175 s 180 are each amended to read as follows:

(1) All matters relating to the implementation and enforcement of this chapter by the ((~~department of ecology~~)) division engineer shall be carried out in accordance with chapter 34.05 RCW, the Administrative Procedure Act, except where the provisions of this chapter expressly conflict with chapter 34.05 RCW. Proceedings held pursuant to RCW 90.14.130 are adjudicative proceedings within the meaning of chapter 34.05 RCW. ((~~Final decisions of the department of ecology in these proceedings are subject to review in accordance with chapter 43.21B RCW.~~))

(2) RCW 90.14.130 provides nonexclusive procedures for determining a relinquishment of water rights under RCW 90.14.160, 90.14.170, and 90.14.180. RCW 90.14.160, 90.14.170, and 90.14.180 may be applied in, among other proceedings, general adjudication proceedings initiated under RCW 90.03.110 or 90.44.220: PROVIDED, That nothing herein shall apply to litigation involving determinations of the ((~~department of ecology~~)) division engineer under RCW 90.03.290 relating to the impairment of existing rights.

Sec. 96. RCW 90.14.215 and 1991 c 347 s 14 are each amended to read as follows:

This chapter shall not apply to trust water rights held or exercised by the ((~~department of ecology~~)) division engineer under chapter 90.38 or 90.42 RCW.

Sec. 97. RCW 90.14.230 and 1987 c 109 s 102 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer is authorized to ((~~promulgate~~)) adopt such rules ((~~and regulations~~)) as are necessary to carry out the provisions of this chapter.

Sec. 98. RCW 90.16.060 and 1988 c 127 s 78 are each amended to read as follows:

The license fee herein required shall be paid in advance to the ((~~state department of ecology~~)) division engineer and shall be accompanied by written statement, showing the extent of the claim. Said statement shall set forth the name and address of the claimant, the name of the stream from which the water is appropriated or claimed for power development, a description of the forty acres or smallest legal subdivision in which the point of diversion and point of return are located, the date of the right as claimed, the maximum amount of water claimed, expressed in cubic feet per second of time, the total average fall utilized under such claim, the manner of developing power and the use to which the power is applied. If the regular flow is supplemented by water stored in a reservoir, the location of such reservoir, its capacity in acre feet, and the stream from which it is filled and fed, should be given, also the date of the right as claimed for storage purposes.

Should any claimant fail or neglect to file such statement within the time specified, or fail or neglect to pay such fees within the time specified, the fees due and payable shall be at the schedule rates set out in RCW 90.16.050, increased twenty-five percent, and the state shall have preference lien therefor, with interest at the rate of ten percent per annum from the date of delinquency, upon the property of claimant used or necessary for use in the development of the right or claim, together with any improvements erected thereon for such development, and upon request from the ((~~director of ecology~~)) division engineer the attorney general shall proceed to foreclose the lien, and collect the amount due, as herein provided, in the same manner as other liens for general state and county taxes on real property are foreclosed.

The filing of a claim to water in excess of the amount to which the claimant is legally entitled shall not operate to vest in such claimant any right to the use of such excess water, nor shall the payment of the annual license fees, provided for herein, operate to vest in any claimant any right to the use of such water beyond the amount to which claimant is legally entitled. The filing of such claim, or claims to water shall be conclusive evidence of abandonment by the claimant of all right to water for power purposes not covered by the claim, or claims, as filed; and the failure to file statement and pay the fees, as herein required, for any power site or claim of power rights on account of riparian ownership within two years after June 12, 1929, shall be conclusive evidence of abandonment. The amount of the theoretical horsepower upon which fees shall be paid shall be computed by multiplying the maximum amount of water claimed, expressed in cubic feet per second of time, by the average fall utilized, expressed in feet, and dividing the product by 8.8.

Sec. 99. RCW 90.16.090 and 1988 c 127 s 79 are each amended to read as follows:

All fees paid under provisions of this chapter, shall be credited by the state treasurer to the reclamation revolving account and subject to legislative appropriation, be allocated and expended by the ((~~director of ecology~~)) division engineer for investigations and surveys of natural resources in cooperation with the federal government, or independently thereof, including stream gaging, hydrographic, topographic, river, underground water, mineral and geological surveys: PROVIDED, That in any one biennium all said expenditures shall not exceed total receipts from said power license fees collected during said biennium: AND PROVIDED FURTHER, That the portion of money allocated by said ((~~director~~)) division engineer to be expended in cooperation with the federal government shall be contingent upon the federal government making available equal amounts for such investigations and surveys.

Sec. 100. RCW 90.22.010 and 1994 c 264 s 86 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer may establish minimum water flows or levels for streams, lakes or other public waters for the purposes of protecting fish, game, birds or other wildlife resources, or recreational or aesthetic values of said public waters whenever it appears to be in the public interest to establish the same. In addition, the ((~~department of ecology~~)) division engineer shall, when requested by the department of fish and wildlife to protect fish, game or other wildlife resources under the jurisdiction of the requesting state agency, or if the ((~~department of ecology~~)) division engineer finds it necessary to preserve water quality, establish such minimum flows or levels as are required to protect the resource or preserve the water quality described in the request or determination. Any request submitted by the department of fish and wildlife shall include a statement setting forth the need for establishing a minimum flow or level. When the ((~~department~~)) division engineer acts to preserve water quality, it shall include a similar statement with the proposed rule filed with the code reviser. This section shall not apply to waters artificially stored in reservoirs, provided that in the granting of storage permits by the ((~~department of ecology~~)) division engineer in the future, full recognition shall be given to downstream minimum flows, if any there may be, which have theretofore been established hereunder.

The current guidelines, standards, or criteria governing the instream flow programs established pursuant to this chapter shall not be altered or amended after March 15, 1988, in accordance with RCW 90.54.022(5).

Sec. 101. RCW 90.22.020 and 1994 c 264 s 87 are each amended to read as follows:

Flows or levels authorized for establishment under RCW 90.22.010, or subsequent modification thereof by the ((~~department~~)) division engineer shall be provided for through the adoption of rules. Before the establishment or modification of a water flow or level for any stream or lake or other public water, the ((~~department~~)) division engineer shall hold a public hearing in the county in which the stream, lake, or other public water is located. If it is located in more than one county the ((~~department~~)) division engineer shall determine the location or locations therein and the number of hearings to be conducted. Notice of the hearings shall be given by publication in a newspaper of general circulation in the county or counties in which the stream, lake, or other public waters is located, once a week for two consecutive weeks before the hearing. The notice shall include the following:

(1) The name of each stream, lake, or other water source under consideration;

(2) The place and time of the hearing;

(3) A statement that any person, including any private citizen or public official, may present his or her views either orally or in writing.

Notice of the hearing shall also be served upon the administrators of the departments of social and health services, natural resources, fish and wildlife, and transportation.

Sec. 102. RCW 90.22.030 and 1988 c 127 s 81 are each amended to read as follows:

The establishment of levels and flows pursuant to RCW 90.22.010 shall in no way affect existing water and storage rights and the use thereof, including but not limited to rights relating to the operation of any hydroelectric or water storage reservoir or related facility. No right to divert or store public waters shall be granted by the ((~~department of ecology~~)) division engineer which shall conflict with regulations adopted pursuant to RCW 90.22.010 and 90.22.020 establishing flows or levels. All regulations establishing flows or levels shall be filed in a "Minimum Water Level and Flow Register" of the ((~~department of ecology~~)) division engineer.

Sec. 103. RCW 90.22.040 and 1987 c 109 s 104 are each amended to read as follows:

It shall be the policy of the state, and the ((~~department of ecology~~)) division engineer shall be so guided in the implementation of RCW 90.22.010 and 90.22.020, to retain sufficient minimum flows or levels in streams, lakes or other public waters to provide adequate waters in such water sources to satisfy stockwatering requirements for stock on riparian grazing lands which drink directly therefrom where such retention shall not result in an unconscionable waste of public waters. The policy hereof shall not apply to stockwatering relating to feed lots and other activities which are not related to normal stockgrazing land uses.

Sec. 104. RCW 90.22.060 and 1993 sp.s. c 4 s 13 are each amended to read as follows:

By December 31, 1993, the ((~~department of ecology~~)) division engineer shall, in cooperation with the Indian tribes((,)) and the department((s)) of ((~~fisheries~~)) fish and wildlife, establish a state-wide list of priorities for evaluation of instream flows. In establishing these priorities, the ((~~department~~)) division engineer shall consider the achievement of wild salmonid production as its primary goal.

The priority list shall be presented to the appropriate legislative committees and to the water resources forum by December 31, 1993.

Sec. 105. RCW 90.24.010 and 1985 c 398 s 28 are each amended to read as follows:

Ten or more owners of real property abutting on a meandered lake may petition the superior court of the county in which the lake is situated, for an order to provide for the regulation of the outflow of the lake in order to maintain a certain water level therein. The court, after hearing, is authorized to make an order fixing the water level thereof and directing the ((~~department of ecology~~)) division engineer to regulate the outflow therefrom in accordance with the purposes described in the petition. This section shall not apply to any meandered lake or reservoir used for the storage of water for irrigation or other beneficial purposes, or to lakes navigable from the sea.

Sec. 106. RCW 90.24.030 and 1994 c 264 s 88 are each amended to read as follows:

The petition shall be entitled "In the matter of fixing the level of Lake . . . . . . in . . . . . . county, Washington", and shall be filed with the clerk of the court and a copy thereof, together with a copy of the order fixing the time for hearing the petition, shall be served on each owner of property abutting on the lake, not less than ten days before the hearing. Like copies shall also be served upon the director of fish and wildlife and the ((~~director of ecology~~)) division engineer. The copy of the petition and of the order fixing time for hearing shall be served in the manner provided by law for the service of summons in civil actions, or in such other manner as may be prescribed by order of the court. For the benefit of every riparian owner abutting on a stream or river flowing from such lake, a copy of the notice of hearing shall be published at least once a week for two consecutive weeks before the time set for hearing in a newspaper in each county or counties wherein located, said notice to contain a brief statement of the reasons and necessity for such application.

Sec. 107. RCW 90.24.040 and 1985 c 398 s 29 are each amended to read as follows:

At the hearing evidence shall be introduced in support of the petition and all interested parties may be heard for or against it. The court shall make findings and conclusions and enter an order granting or refusing the petition, and if the petition is granted, shall fix the water level to be maintained and direct the ((~~department of ecology~~)) division engineer to regulate and control the outflow of the lake so as to properly maintain the water level so far as practicable within maximum and minimum limits when the proper control devices are installed: PROVIDED, That the court shall have continuing jurisdiction after a petition is once granted and shall, upon subsequent petition filed and heard in accordance with the preceding sections, make such further findings and conclusions and enter such further orders as are necessary to accomplish fully the objectives sought in the initial petition: AND PROVIDED FURTHER, That shall the court find any such riparian owners abutting on a stream or river flowing from such lake be adversely affected in any way by the granting of such a petition, such petition shall be refused.

Sec. 108. RCW 90.24.050 and 1988 c 127 s 82 are each amended to read as follows:

In the event the court shall find that to protect fish and game fish in said lake that fish ladders or other devices should be constructed therein or that other construction shall be necessary in order to maintain the determined lake level, the court shall find the proper device to be constructed, the probable cost thereof and by its order and judgment shall apportion the cost thereof among the persons whose property abuts on said lake in proportion to the lineal feet of waterfront owned by each, which sum so found shall constitute a lien against said real property and shall be paid to the county treasurer and by him or her placed in a special fund to be known as "Lake . . . . . . Improvement Fund." The ((~~director of ecology~~)) division engineer shall appoint a suitable person to be compensated by the property owners to regulate the determined level as decreed by the court.

Sec. 109. RCW 90.24.060 and 1994 c 264 s 89 are each amended to read as follows:

Such improvement or device in said lake for the protection of the fish and game fish therein shall be installed by and under the direction of the board of county commissioners of said county with the approval of the respective director((s)) of the department of fish and wildlife and the ((~~department of ecology~~)) division engineer of the state of Washington and paid for out of the special fund provided for in RCW 90.24.050.

Sec. 110. RCW 90.38.010 and 1989 c 429 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) ((~~"Department" means the department of ecology~~)) division engineer.

(2) "Net water savings" means the amount of water that through hydrological analysis is determined to be conserved and usable for other purposes without impairing existing water rights, reducing the ability to deliver water, or reducing the supply of water that otherwise would have been available to other water users.

(3) "Trust water right" means that portion of an existing water right, constituting net water savings, that is no longer required to be diverted for beneficial use due to the installation of a water conservation project that improves an existing system. The term "trust water right" also applies to any other water right acquired by the ((~~department~~)) division engineer under this chapter for management in the Yakima river basin trust water rights program.

(4) "Water conservation project" means any project funded to further the purposes of this chapter and that achieves physical or operational improvements of efficiency in existing systems for diversion, conveyance, or application of water under existing water rights.

Sec. 111. RCW 90.38.020 and 1989 c 429 s 3 are each amended to read as follows:

(1) The ((~~department~~)) division engineer may acquire water rights, including but not limited to storage rights, by purchase, gift, or other appropriate means other than by condemnation, from any person or entity or combination of persons or entities. Once acquired, such rights are trust water rights.

(2) The ((~~department~~)) division engineer may make such other arrangements, including entry into contracts with other persons or entities as appropriate to ensure that trust water rights acquired in accordance with this chapter can be exercised to the fullest possible extent.

(3) The trust water rights may be acquired on a temporary or permanent basis.

Sec. 112. RCW 90.38.030 and 1989 c 429 s 4 are each amended to read as follows:

(1) For the purposes of this chapter, the ((~~department~~)) division engineer is authorized to enter into contracts with water users for the purpose of providing moneys to users to assist in the financing of water conservation projects. In exchange for the financial assistance provided for the purposes of this chapter, the water users shall convey the trust water rights, created as a result of the assistance, to the ((~~department of ecology~~)) division engineer.

(2) No contract shall be entered into by the ((~~department~~)) division engineer with a water user under this chapter unless it appears to the ((~~department~~)) division engineer that, upon the completion of a water conservation project financed with moneys as provided in this section, a valid water right exists for conveyance to the ((~~department~~)) division engineer.

(3) The ((~~department~~)) division engineer shall cooperate fully with the United States in the implementation of this chapter. Trust water rights may be acquired through expenditure of funds provided by the United States and shall be treated in the same manner as trust water rights resulting from the expenditure of state funds.

(4) When water is proposed to be acquired by or conveyed to the ((~~department~~)) division engineer as a trust water right by an irrigation district, evidence of the district's authority to represent the water right holders must be submitted to, and for the satisfaction of, the ((~~department~~)) division engineer.

(5) The ((~~department~~)) division engineer shall not acquire an individual's water right under this chapter that is appurtenant to land lying within an irrigation district without the approval of the board of directors of the irrigation district.

Sec. 113. RCW 90.38.040 and 1994 c 264 s 90 are each amended to read as follows:

(1) All trust water rights acquired by the ((~~department~~)) division engineer shall be placed in the Yakima river basin trust water rights program to be managed by the ((~~department~~)) division engineer. The ((~~department~~)) division engineer shall issue a water right certificate in the name of the state of Washington for each trust water right it acquires.

(2) Trust water rights shall retain the same priority date as the water right from which they originated. Trust water rights may be modified as to purpose or place of use or point of diversion, including modification from a diversionary use to a nondiversionary instream use.

(3) Trust water rights may be held by the ((~~department~~)) division engineer for instream flows and/or irrigation use.

(4) A schedule of the amount of net water saved as a result of water conservation projects carried out in accordance with this chapter, shall be developed annually to reflect the predicted hydrologic and water supply conditions, as well as anticipated water demands, for the upcoming irrigation season. This schedule shall serve as the basis for the distribution and management of trust water rights each year.

(5) No exercise of a trust water right may be authorized unless the ((~~department~~)) division engineer first determines that no existing water rights, junior or senior in priority, will be impaired as to their exercise or injured in any manner whatever by such authorization. Before any trust water right is exercised, the ((~~department~~)) division engineer shall publish notice thereof in a newspaper of general circulation published in the county or counties in which the storage, diversion, and use are to be made, and in such other newspapers as the ((~~department~~)) division engineer determines are necessary, once a week for two consecutive weeks. At the same time the ((~~department~~)) division engineer may also send notice thereof containing pertinent information to the director of fish and wildlife.

(6) RCW 90.03.380 and 90.14.140 through 90.14.910 shall have no applicability to trust water rights held by the ((~~department~~)) division engineer under this chapter or exercised under this section.

Sec. 114. RCW 90.38.050 and 1989 c 429 s 6 are each amended to read as follows:

The ((~~department~~)) division engineer may adopt rules as appropriate to ensure full implementation of this chapter.

Sec. 115. RCW 90.40.090 and 1988 c 127 s 83 are each amended to read as follows:

An application filed by the ((~~department of ecology~~)) division engineer or its assignee, the United States Bureau of Reclamation, for a permit to appropriate waters of the Columbia River under chapter 90.03 RCW, for the development of the Grand Coulee project shall be perfected in the same manner and to the same extent as though such appropriation had been made by a private person, corporation or association, but no fees, as provided for in RCW 90.03.470, shall be required.

Sec. 116. RCW 90.42.010 and 1993 sp.s. c 4 s 14 and 1993 c 98 s 1 are each reenacted and amended to read as follows:

(1) The legislature finds that a need exists to develop and test a means to facilitate the voluntary transfer of water and water rights, including conserved water, to provide water for presently unmet needs and emerging needs. Further, the legislature finds that water conservation activities have the potential of affecting the quantity of return flow waters to which existing water right holders have a right to and rely upon. It is the intent of the legislature that persons holding rights to water, including return flows, not be adversely affected in the implementation of the provisions of this chapter.

(2) The ((~~department~~)) division engineer shall provide to the appropriate legislative committees by December 31, 1993, a written evaluation of the implementation of RCW 90.42.010 through 90.42.090 and recommendations for future application. Recommendations shall include methods of applying RCW 90.42.010 through 90.42.090 to the rivers that are designated as high priority by the ((~~department of ecology~~)) division engineer under RCW 90.22.060 in order to use net water savings to enhance stream flows.

Sec. 117. RCW 90.42.020 and 1991 c 347 s 6 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) ((~~"Department"~~)) "Engineer" means the ((~~department of ecology~~)) division engineer.

(2) "Net water savings" means the amount of water that is determined to be conserved and usable within a specified stream reach or reaches for other purposes without impairment or detriment to water rights existing at the time that a water conservation project is undertaken, reducing the ability to deliver water, or reducing the supply of water that otherwise would have been available to other existing water uses.

(3) "Trust water right" means any water right acquired by the state under this chapter for management in the state's trust water rights program.

(4) "Pilot planning areas" means the geographic areas designated under RCW 90.54.045(2).

(5) "Water conservation project" means any project or program that achieves physical or operational improvements that provide for increased water use efficiency in existing systems of diversion, conveyance, application, or use of water under water rights existing on July 28, 1991.

Sec. 118. RCW 90.42.030 and 1993 c 98 s 2 are each amended to read as follows:

(1) For purposes of this chapter, the state may enter into contracts to provide moneys to assist in the financing of water conservation projects. In consideration for the financial assistance provided, the state shall obtain public benefits defined in guidelines developed under RCW 90.42.050.

(2) If the public benefits to be obtained require conveyance or modification of a water right, the recipient of funds shall convey to the state the recipient's interest in that part of the water right or claim constituting all or a portion of the resulting net water savings for deposit in the trust water rights program. The amount to be conveyed shall be finitely determined by the parties, in accordance with the guidelines developed under RCW 90.42.050, before the expenditure of state funds. Conveyance may consist of complete transfer, lease contracts, or other legally binding agreements. When negotiating for the acquisition of conserved water or net water savings, or a portion thereof, the state may require evidence of a valid water right.

(3) As part of the contract, the water right holder and the state shall specify the process to determine the amount of water the water right holder would continue to be entitled to once the water conservation project is in place.

(4) The state shall cooperate fully with the United States in the implementation of this chapter. Trust water rights may be acquired through expenditure of funds provided by the United States and shall be treated in the same manner as trust water rights resulting from the expenditure of state funds.

(5) If water is proposed to be acquired by or conveyed to the state as a trust water right by an irrigation district, evidence of the district's authority to represent the water right holders shall be submitted to and for the satisfaction of the ((~~department~~)) division engineer.

(6) The state shall not contract with any person to acquire a water right served by an irrigation district without the approval of the board of directors of the irrigation district. Disapproval by a board shall be factually based on probable adverse effects on the ability of the district to deliver water to other members or on maintenance of the financial integrity of the district.

Sec. 119. RCW 90.42.040 and 1993 c 98 s 3 are each amended to read as follows:

(1) All trust water rights acquired by the state shall be placed in the state trust water rights program to be managed by the ((~~department~~)) division engineer. Trust water rights acquired by the state shall be held or authorized for use by the ((~~department~~)) division engineer for instream flows, irrigation, municipal, or other beneficial uses consistent with applicable regional plans for pilot planning areas, or to resolve critical water supply problems.

(2) The ((~~department~~)) division engineer shall issue a water right certificate in the name of the state of Washington for each permanent trust water right conveyed to the state indicating the reach or reaches of the stream, the quantity, and the use or uses to which it may be applied. A superseding certificate shall be issued that specifies the amount of water the water right holder would continue to be entitled to as a result of the water conservation project. The superseding certificate shall retain the same priority date as the original right. For nonpermanent conveyances, the ((~~department~~)) division engineer shall issue certificates or such other instruments as are necessary to reflect the changes in purpose or place of use or point of diversion or withdrawal. Water rights for which such nonpermanent conveyances are arranged shall not be subject to relinquishment for nonuse.

(3) A trust water right retains the same priority date as the water right from which it originated, but as between them the trust right shall be deemed to be inferior in priority unless otherwise specified by an agreement between the state and the party holding the original right.

(4) Exercise of a trust water right may be authorized only if the ((~~department~~)) division engineer first determines that neither water rights existing at the time the trust water right is established, nor the public interest will be impaired. If impairment becomes apparent during the time a trust water right is being exercised, the ((~~department~~)) division engineer shall cease or modify the use of the trust water right to eliminate the impairment.

(5) Before any trust water right is created or modified, the ((~~department~~)) division engineer shall, at a minimum, require that a notice be published in a newspaper of general circulation published in the county or counties in which the storage, diversion, and use are to be made, and in other newspapers as the ((~~department~~)) division engineer determines is necessary, once a week for two consecutive weeks. At the same time the ((~~department~~)) division engineer shall send a notice containing pertinent information to all appropriate state agencies, potentially affected local governments and federally recognized tribal governments, and other interested parties.

(6) RCW 90.14.140 through 90.14.230 have no applicability to trust water rights held by the ((~~department~~)) division engineer under this chapter or exercised under this section.

(7) RCW 90.03.380 has no applicability to trust water rights acquired by the state through the funding of water conservation projects.

Sec. 120. RCW 90.42.050 and 1991 c 347 s 9 are each amended to read as follows:

The ((~~department~~)) division engineer, in cooperation with federally recognized Indian tribes, local governments, state agencies, and other interested parties, shall establish guidelines by July 1, 1992, governing the acquisition, administration, and management of trust water rights. The guidelines shall address at a minimum the following:

(1) Methods for determining the net water savings resulting from water conservation projects or programs carried out in accordance with this chapter, and other factors to be considered in determining the quantity or value of water available for potential designation as a trust water right;

(2) Criteria for determining the portion of net water savings to be conveyed to the state under this chapter;

(3) Criteria for prioritizing water conservation projects;

(4) A description of potential public benefits that will affect consideration for state financial assistance in RCW 90.42.030;

(5) Procedures for providing notification to potentially interested parties;

(6) Criteria for the assignment of uses of trust water rights acquired in areas of the state not addressed in a regional water resource plan or critical area agreement; and

(7) Contracting procedures and other procedures not specifically addressed in this section.

These guidelines shall be submitted to the joint select committee on water resource policy before adoption.

Sec. 121. RCW 90.42.080 and 1993 c 98 s 4 are each amended to read as follows:

(1) The state may acquire all or portions of existing water rights, by purchase, gift, or other appropriate means other than by condemnation, from any person or entity or combination of persons or entities. Once acquired, such rights are trust water rights.

(2) The ((~~department~~)) division engineer may enter into leases, contracts, or such other arrangements with other persons or entities as appropriate, to ensure that trust water rights acquired in accordance with this chapter may be exercised to the fullest possible extent.

(3) Trust water rights may be acquired by the state on a temporary or permanent basis.

(4) The provisions of RCW 90.03.380 and 90.03.390 apply to transfers of water rights under this section.

(5) No funds may be expended for the purchase of water rights by the state pursuant to this section unless specifically appropriated for this purpose by the legislature.

Sec. 122. RCW 90.44.035 and 1987 c 109 s 107 are each amended to read as follows:

For purposes of this chapter:

(1) "((~~Department~~)) Commission" means the ((~~department of ecology~~)) Washington water resources and water quality commission;

(2) ((~~"Director" means the director of ecology;~~

~~(3)~~)) "Ground waters" means all waters that exist beneath the land surface or beneath the bed of any stream, lake or reservoir, or other body of surface water within the boundaries of this state, whatever may be the geological formation or structure in which such water stands or flows, percolates or otherwise moves. There is a recognized distinction between natural ground water and artificially stored ground water;

((~~(4)~~)) (3) "Natural ground water" means water that exists in underground storage owing wholly to natural processes; and

((~~(5)~~)) (4) "Artificially stored ground water" means water that is made available in underground storage artificially, either intentionally, or incidentally to irrigation and that otherwise would have been dissipated by natural waste.

Sec. 123. RCW 90.44.050 and 1987 c 109 s 108 are each amended to read as follows:

After June 6, 1945, no withdrawal of public ground waters of the state shall be begun, nor shall any well or other works for such withdrawal be constructed, unless an application to appropriate such waters has been made to the ((~~department~~)) division engineer and a permit has been granted by it as herein provided: EXCEPT, HOWEVER, That any withdrawal of public ground waters for stock-watering purposes, or for the watering of a lawn or of a noncommercial garden not exceeding one-half acre in area, or for single or group domestic uses in an amount not exceeding five thousand gallons a day, or for an industrial purpose in an amount not exceeding five thousand gallons a day, is and shall be exempt from the provisions of this section, but, to the extent that it is regularly used beneficially, shall be entitled to a right equal to that established by a permit issued under the provisions of this chapter: PROVIDED, HOWEVER, That the ((~~department~~)) division engineer from time to time may require the person or agency making any such small withdrawal to furnish information as to the means for and the quantity of that withdrawal: PROVIDED, FURTHER, That at the option of the party making withdrawals of ground waters of the state not exceeding five thousand gallons per day, applications under this section or declarations under RCW 90.44.090 may be filed and permits and certificates obtained in the same manner and under the same requirements as is in this chapter provided in the case of withdrawals in excess of five thousand gallons a day.

Sec. 124. RCW 90.44.060 and 1987 c 109 s 109 are each amended to read as follows:

Applications for permits for appropriation of underground water shall be made in the same form and manner provided in RCW 90.03.250 through 90.03.340, as amended, the provisions of which sections are hereby extended to govern and to apply to ground water, or ground water right certificates and to all permits that shall be issued pursuant to such applications, and the rights to the withdrawal of ground water acquired thereby shall be governed by RCW 90.03.250 through 90.03.340, inclusive: PROVIDED, That each application to withdraw public ground water by means of a well or wells shall set forth the following additional information: (1) the name and post office address of the applicant; (2) the name and post office address of the owner of the land on which such well or wells or works will be located; (3) the location of the proposed well or wells or other works for the proposed withdrawal; (4) the ground water area, sub-area, or zone from which withdrawal is proposed, provided the ((~~department~~)) division engineer has designated such area, sub-area, or zone in accord with RCW 90.44.130; (5) the amount of water proposed to be withdrawn, in gallons a minute and in acre feet a year, or millions of gallons a year; (6) the depth and type of construction proposed for the well or wells or other works: AND PROVIDED FURTHER, That any permit issued pursuant to an application for constructing a well or wells to withdraw public ground water may specify an approved type and manner of construction for the purposes of preventing waste of said public waters and of conserving their head.

Sec. 125. RCW 90.44.070 and 1987 c 109 s 110 are each amended to read as follows:

No permit shall be granted for the development or withdrawal of public ground waters beyond the capacity of the underground bed or formation in the given basin, district, or locality to yield such water within a reasonable or feasible pumping lift in case of pumping developments, or within a reasonable or feasible reduction of pressure in the case of artesian developments. The ((~~department~~)) division engineer shall have the power to determine whether the granting of any such permit will injure or damage any vested or existing right or rights under prior permits and may in addition to the records of the ((~~department~~)) division engineer, require further evidence, proof, and testimony before granting or denying any such permits.

Sec. 126. RCW 90.44.080 and 1987 c 109 s 111 are each amended to read as follows:

Upon a showing to the ((~~department~~)) division engineer that construction has been completed in compliance with the terms of any permit issued under the provisions of this chapter, it shall be the duty of the ((~~department~~)) division engineer to issue to the permittee a certificate of ground water right stating that the appropriation has been perfected under such permit: PROVIDED, HOWEVER, That such showing shall include the following information: (1) the location of each well or other means of withdrawal constructed under the permit, both with respect to official land surveys and in terms of distance and direction to any preexisting well or wells or works constructed under an earlier permit or approved declaration of a vested right, provided the distance to such pre-existing well or works is not more than a quarter of a mile; (2) the depth and diameter of each well or the depth and general specifications of any other works constructed under the terms of the permit; (3) the thickness in feet and the physical character of each bed, stratum, or formation penetrated by each well; (4) the length and position, in feet below the land surface, and the commercial specifications of all casing, also of each screen or perforated zone in the casing of each well constructed; (5) the tested capacity of each well in gallons a minute, as determined by measuring the discharge of the pump or pumps after continuous operation for at least four hours or, in the case of a flowing well, by measuring the natural flow at the land surface; (6) for each nonflowing well, the depth to the static ground water level as measured in feet below the land surface immediately before the well-capacity test herein provided, also the draw-down of the water level, in feet, at the end of said well-capacity test; (7) for each flowing well, the shut-in pressure measured in feet above the land surface or in pounds per square inch at the land surface; and (8) such additional factual information as reasonably may be required by the ((~~department~~)) division engineer to establish compliance with the terms of the permit and with the provisions of this chapter.

The well driller or other constructor of works for the withdrawal of public ground waters shall be obligated to furnish the permittee a certified record of the factual information necessary to show compliance with the provisions of this section.

Sec. 127. RCW 90.44.090 and 1987 c 109 s 112 are each amended to read as follows:

Any person, firm or corporation claiming a vested right to withdraw public ground waters of the state by virtue of prior beneficial use of such water shall, within three years after June 6, 1945, be entitled to receive from the ((~~department~~)) division engineer a certificate of ground water right to that effect: PROVIDED, That the issuance by the ((~~department~~)) division engineer of any such certificate of vested right shall be contingent on a declaration by the claimant in a form prescribed by the ((~~department~~)) division engineer, which declaration shall set forth: (1) the beneficial use for which such withdrawal has been made; (2) the date or approximate date of the earliest beneficial use of the water so withdrawn, and the continuity of such beneficial use; (3) the amount of water claimed; (4) if the beneficial use has been for irrigation, the description of the land to which such water has been applied and the name of the owner thereof; and (5) so far as it may be available, descriptive information concerning each well or other works for the withdrawal of public ground water, as required of original permittees under the provisions of RCW 90.44.080: PROVIDED, HOWEVER, That in case of failure to comply with the provisions of this section within the three years allotted, the claimant may apply to the ((~~department~~)) division engineer for a reasonable extension of time, which shall not exceed two additional years and which shall be granted only upon a showing of good cause for such failure.

Each such declaration shall be certified, either on the basis of the personal knowledge of the declarant or on the basis of information and belief. With respect to each such declaration there shall be publication, and findings in the same manner as provided in RCW 90.44.060 in the case of an original application to appropriate water. If the ((~~department's~~)) division engineer's findings sustain the declaration, the ((~~department~~)) division engineer shall approve said declaration, which then shall be recorded at length with the ((~~department~~)) division engineer and may also be recorded in the office of the county auditor of the county within which the claimed withdrawal and beneficial use of public ground water have been made. When duly approved and recorded as herein provided, each such declaration or copies thereof shall have the same force and effect as an original permit granted under the provisions of RCW 90.44.060, with a priority as of the date of the earliest beneficial use of the water.

Declarations heretofore filed with the ((~~department~~)) division engineer in substantial compliance with the provisions of this section shall have the same force and effect as if filed after June 6, 1945.

The same fees shall be collected by the ((~~department~~)) division engineer in the case of applications for the issuance of certificates of vested rights, as are required to be collected in the case of application for permits for withdrawal of ground waters and for the issuance of certificates of ground water withdrawal rights under this chapter.

Sec. 128. RCW 90.44.100 and 1987 c 109 s 113 are each amended to read as follows:

After an application to, and upon the issuance by the ((~~department~~)) division engineer of an amendment to the appropriate permit or certificate of ground water right, the holder of a valid right to withdraw public ground waters may, without losing his priority of right, construct wells or other means of withdrawal at a new location in substitution for or in addition to those at the original location, or he may change the manner or the place of use of the water: PROVIDED, HOWEVER, That such amendment shall be issued only after publication of notice of the application and findings as prescribed in the case of an original application. Such amendment shall be issued by the ((~~department~~)) division engineer only on the conditions that: (1) The additional or substitute well or wells shall tap the same body of public ground water as the original well or wells; (2) use of the original well or wells shall be discontinued upon construction of the substitute well or wells; (3) the construction of an additional well or wells shall not enlarge the right conveyed by the original permit or certificate; and (4) other existing rights shall not be impaired. The ((~~department~~)) division engineer may specify an approved manner of construction and shall require a showing of compliance with the terms of the amendment, as provided in RCW 90.44.080 in the case of an original permit.

Sec. 129. RCW 90.44.110 and 1987 c 109 s 114 are each amended to read as follows:

No public ground waters that have been withdrawn shall be wasted without economical beneficial use. The ((~~department~~)) division engineer shall require all wells producing waters which contaminate other waters to be plugged or capped. The ((~~department~~)) division engineer shall also require all flowing wells to be so capped or equipped with valves that the flow of water can be completely stopped when the wells are not in use under the terms of their respective permits or approved declarations of vested rights. Likewise, the ((~~department~~)) division engineer shall also require both flowing and nonflowing wells to be so constructed and maintained as to prevent the waste of public ground waters through leaky casings, pipes, fittings, valves, or pumps‑-either above or below the land surface: PROVIDED, HOWEVER, That the withdrawal of reasonable quantities of public ground water in connection with the construction, development, testing, or repair of a well shall not be construed as waste; also, that the inadvertent loss of such water owing to breakage of a pump, valve, pipe, or fitting shall not be construed as waste if reasonable diligence is shown by the permittee in effecting the necessary repair.

In the issuance of an original permit, or of an amendment to an original permit or certificate of vested right to withdraw and appropriate public ground waters under the provisions of this chapter, the ((~~department~~)) division engineer may, as in his judgment is necessary, specify for the proposed well or wells or other works a manner of construction adequate to accomplish the provisions of this section.

Sec. 130. RCW 90.44.120 and 1987 c 109 s 115 are each amended to read as follows:

The unauthorized use of ground water to which another person is entitled, or the wilful or negligent waste of ground water, or the failure, when required by the ((~~department~~)) division engineer, to cap flowing wells or equip the same with valves, fittings, or casings to prevent waste of ground waters, or to cap or plug wells producing waters which contaminate other waters, shall be a misdemeanor.

Sec. 131. RCW 90.44.130 and 1987 c 109 s 116 are each amended to read as follows:

As between appropriators of public ground water, the prior appropriator shall as against subsequent appropriators from the same ground water body be entitled to the preferred use of such ground water to the extent of his appropriation and beneficial use, and shall enjoy the right to have any withdrawals by a subsequent appropriator of ground water limited to an amount that will maintain and provide a safe sustaining yield in the amount of the prior appropriation. The ((~~department~~)) division engineer shall have jurisdiction over the withdrawals of ground water and shall administer the ground water rights under the principle just set forth, and it shall have the jurisdiction to limit withdrawals by appropriators of ground water so as to enforce the maintenance of a safe sustaining yield from the ground water body. For this purpose, the ((~~department~~)) division engineer shall have authority and it shall be its duty from time to time, as adequate factual data become available, to designate ground water areas or sub-areas, to designate separate depth zones within any such area or sub-area, or to modify the boundaries of such existing area, or sub-area, or zones to the end that the withdrawals therefrom may be administratively controlled as prescribed in RCW 90.44.180 in order that overdraft of public ground waters may be prevented so far as is feasible. Each such area or zone shall, as nearly as known facts permit, be so designated as to enclose a single and distinct body of public ground water. Each such sub-area may be so designated as to enclose all or any part of a distinct body of public ground water, as the ((~~department~~)) division engineer deems will most effectively accomplish the purposes of this chapter.

Designation of, or modification of the boundaries of such a ground water area, sub-area, or zone may be proposed by the ((~~department~~)) division engineer on its own motion or by petition to the ((~~department~~)) division engineer signed by at least fifty or one-fourth, whichever is the lesser number, of the users of ground water in a proposed ground water area, sub-area, or zone. Before any proposed ground water area, sub-area, or zone shall be designated, or before the boundaries or any existing ground water area, sub-area, or zone shall be modified the ((~~department~~)) division engineer shall publish a notice setting forth: (1) In terms of the appropriate legal subdivisions a description of all lands enclosed within the proposed area, sub-area, or zone, or within the area, sub-area, or zone whose boundaries are proposed to be modified; (2) the object of the proposed designation or modification of boundaries; and (3) the day and hour, and the place where written objections may be submitted and heard. Such notice shall be published in three consecutive weekly issues of a newspaper of general circulation in the county or counties containing all or the greater portion of the lands involved, and the newspaper of publication shall be selected by the ((~~department~~)) division engineer. Publication as just prescribed shall be construed as sufficient notice to the landowners and water users concerned.

Objections having been heard as herein provided, the ((~~department~~)) division engineer shall make and file in its office written findings of fact with respect to the proposed designation or modification and, if the findings are in the affirmative, shall also enter a written order designating the ground water area, or sub-area, or zone or modifying the boundaries of the existing area, sub-area, or zone. Such findings and order shall also be published substantially in the manner herein prescribed for notice of hearing, and when so published shall be final and conclusive unless an appeal therefrom is taken within the period and in the manner prescribed by RCW 43.21B.310. Publication of such findings and order shall give force and effect to the remaining provisions of this section and to the provisions of RCW 90.44.180, with respect to the particular area, sub-area, or zone.

Priorities of right to withdraw public ground water shall be established separately for each ground water area, sub-area, or zone and, as between such rights, the first in time shall be the superior in right. The priority of the right acquired under a certificate of ground water right shall be the date of filing of the original application for a withdrawal with the ((~~department~~)) division engineer, or the date or approximate date of the earliest beneficial use of water as set forth in a certificate of a vested ground water right, under the provisions of RCW 90.44.090.

Within ninety days after the designation of a ground water area, sub-area or zone as herein provided, any person, firm or corporation then claiming to be the owner of artificially stored ground water within such area, sub-area, or zone shall file a certified declaration to that effect with the ((~~department~~)) division engineer on a form prescribed by the ((~~department~~)) division engineer. Such declaration shall cover: (1) The location and description of the works by whose operation such artificial ground water storage is purported to have been created, and the name or names of the owner or owners thereof; (2) a description of the lands purported to be underlain by such artificially stored ground water, and the name or names of the owner or owners thereof; (3) the amount of such water claimed; (4) the date or approximate date of the earliest artificial storage; (5) evidence competent to show that the water claimed is in fact water that would have been dissipated naturally except for artificial improvements by the claimant; and (6) such additional factual information as reasonably may be required by the ((~~department~~)) division engineer. If any of the purported artificially stored ground water has been or then is being withdrawn, the claimant also shall file (1) the declarations which this chapter requires of claimants to a vested right to withdraw public ground waters, and (2) evidence competent to show that none of the water withdrawn under those declarations is in fact public ground water from the area, sub-area, or zone concerned: PROVIDED, HOWEVER, That in case of failure to file a declaration within the ninety-day period herein provided, the claimant may apply to the ((~~department~~)) division engineer for a reasonable extension of time, which shall not exceed two additional years and which shall be granted only upon a showing of good cause for such failure.

Following publication of the declaration and findings‑-as in the case of an original application, permit, or certificate of right to appropriate public ground waters‑-the ((~~department~~)) division engineer shall accept or reject such declaration or declarations with respect to ownership or withdrawal of artificially stored ground water. Acceptance of such declaration or declarations by the ((~~department~~)) division engineer shall convey to the declarant no right to withdraw public ground waters from the particular area, sub-area, or zone, nor to impair existing or subsequent rights to such public waters.

Any person, firm or corporation hereafter claiming to be the owner of ground water within a designated ground water area, sub-area, or zone by virtue of its artificial storage subsequent to such designation shall, within three years following the earliest artificial storage file a declaration of claim with the ((~~department~~)) division engineer, as herein prescribed for claims based on artificial storage prior to such designation: PROVIDED, HOWEVER, That in case of such failure the claimant may apply to the ((~~department~~)) division engineer for a reasonable extension of time, which shall not exceed two additional years and which shall be granted upon a showing of good cause for such failure.

Any person, firm or corporation hereafter withdrawing ground water claimed to be owned by virtue of artificial storage subsequent to designation of the relevant ground water area, sub-area, or zone shall, within ninety days following the earliest such withdrawal, file with the ((~~department~~)) division engineer the declarations required by this chapter with respect to withdrawals of public ground water.

Sec. 132. RCW 90.44.180 and 1987 c 109 s 117 are each amended to read as follows:

At any time the ((~~department~~)) division engineer may hold a hearing on its own motion, and shall hold a hearing upon petition of at least fifty or one-fourth, whichever is the lesser number, of the holders of valid rights to withdraw public ground waters from any designated ground water area, sub-area, or zone, to determine whether the water supply in such area, sub-area, or zone is adequate for the current needs of all such holders. Notice of any such hearing, and the findings and order resulting therefrom shall be published in the manner prescribed in RCW 90.44.130 with respect to the designation or modification of a ground water area, or sub-area, or zone.

If such hearing finds that the total available supply is inadequate for the current needs of all holders of valid rights to withdraw public ground waters from the particular ground water area, sub-area, or zone, the ((~~department~~)) division engineer shall order the aggregate withdrawal from such area, sub-area, or zone decreased so that it shall not exceed such available supply. Such decrease shall conform to the priority of the pertinent valid rights and shall prevail for the term of shortage in the available supply. Except that by mutual agreement among the respective holders and with the ((~~department~~)) division engineer, the ordered decrease in aggregate withdrawal may be accomplished by the waiving of all or some specified part of a senior right or rights in favor of a junior right or rights: PROVIDED, That such waiving of a right or rights by agreement shall not modify the relative priorities of such right or rights as recorded in the ((~~department~~)) division engineer.

Sec. 133. RCW 90.44.200 and 1987 c 109 s 118 are each amended to read as follows:

The ((~~department~~)) division engineer, as in its judgment is deemed necessary and advisable, may appoint one or more ground water supervisors for each designated ground water area, sub-area, or zone, or may appoint one or more ground water supervisors-at-large. Within their respective jurisdictions and under the direction of the ((~~department~~)) division engineer, such supervisor and supervisors-at-large shall supervise the withdrawal of public ground waters and the carrying out of orders issued by the ((~~department~~)) division engineer under the provisions of this chapter.

The duties, compensation, and authority of such supervisors or supervisors-at-large shall be those prescribed for water masters under the terms of RCW 90.03.060 and 90.03.070.

Sec. 134. RCW 90.44.220 and 1987 c 109 s 119 are each amended to read as follows:

In its discretion or upon the application of any party claiming right to the withdrawal and use of public ground water, the ((~~department~~)) division engineer may file a petition with the superior court of the county for the determination of the rights of appropriators of any particular ground water body and all the provisions of RCW 90.03.110 through 90.03.240 as heretofore amended, shall govern and apply to the adjudication and determination of such ground water body and to the ownership thereof. Hereafter, in any proceedings for the adjudication and determination of water rights‑-either rights to the use of surface water or to the use of ground water, or both‑-pursuant to chapter 90.03 RCW as heretofore amended, all appropriators of ground water or of surface water in the particular basin or area may be included as parties to such adjudication, as pertinent.

Sec. 135. RCW 90.44.230 and 1987 c 109 s 120 are each amended to read as follows:

In any determination of the right to withdrawal of ground water under RCW 90.44.220, the ((~~department's~~)) division engineer's findings and the court's findings and judgment shall determine the priority of right and the quantity of water to which each appropriator who is a party to the proceedings shall be entitled, shall determine the level below which the ground water body shall not be drawn down by appropriators, or shall reserve jurisdiction for the determination of a safe sustaining water yield as necessary from time to time to preserve the rights of the several appropriators and to prevent depletion of the ground water body.

Sec. 136. RCW 90.44.250 and 1987 c 109 s 121 are each amended to read as follows:

The ((~~department~~)) division engineer is hereby authorized to make such investigations as may be necessary to determine the location, extent, depth, volume, and flow of all ground waters within the state and in making such examination, hereby is authorized and directed to cooperate with the federal government, with any county or municipal corporation, or any person, firm, association or corporation, and upon such terms as may seem appropriate to it.

In connection with such investigation, the ((~~department~~)) division engineer from time to time may require reports from each ground water appropriator as to the amount of public ground water being withdrawn and as to the manner and extent of the beneficial use. Such reports shall be in a form prescribed by the ((~~department~~)) division engineer.

Sec. 137. RCW 90.44.400 and 1985 c 453 s 1 are each amended to read as follows:

(1) This legislation is enacted for the purpose of identifying ground water management procedures that are consistent with both local needs and state water resource policies and management objectives; including the protection of water quality, assurance of quantity, and efficient management of water resources to meet future needs.

In recognition of existing water rights and the need to manage ground water aquifers for future use, the ((~~department of ecology~~)) division engineer shall, by rule, establish standards, criteria, and a process for the designation of specific ground water areas or sub-areas, or separate depth zones within such area or sub-area, and provide for either the ((~~department of ecology~~)) division engineer, local governments, or ground water users of the area to initiate development of a ground water management program for each area or sub-area, consistent with state and local government objectives, policies, and authorities. The ((~~department~~)) division engineer shall develop and adopt these rules by January 1, 1986.

(2) The ((~~department of ecology~~)) division engineer, in cooperation with other state agencies, local government, and user groups, shall identify probable ground water management areas or sub-areas. The ((~~department~~)) division engineer shall also prepare a general schedule for the development of ground water management programs that recognizes the available local or state agency staff and financial resources to carry out the intent of RCW 90.44.400 through 90.44.420. The ((~~department~~)) division engineer shall also provide the option for locally initiated studies and for local government to assume the lead agency role in developing the ground water management program and in implementing the provisions of RCW 90.44.400 through 90.44.420. The criteria to guide identification of the ground water areas or sub-areas shall include but not be limited to, the following:

(a) Aquifer systems that are declining due to restricted recharge or over-utilization;

(b) Aquifer systems in which over-appropriation may have occurred and adjudication of water rights has not yet been completed;

(c) Aquifer systems currently being considered for water supply reservation under chapter 90.54 RCW for future beneficial uses;

(d) Aquifers identified as the primary source of supply for public water supply systems;

(e) Aquifers designated as a sole source aquifer by the federal environmental protection agency; and

(f) Geographical areas where land use may result in contamination or degradation of the ground water quality.

(3) In developing the ground water management programs, priority shall be given to areas or sub-areas where water quality is imminently threatened.

Sec. 138. RCW 90.44.410 and 1985 c 453 s 2 are each amended to read as follows:

(1) To assist in the development of ground water management programs, a ground water management advisory committee, with representation from major user and public interest groups, and state and local governments shall be appointed by the ((~~department~~)) division engineer for each area or sub-area. The procedure for advisory committee appointment, terms of appointment, and committee responsibilities shall be addressed in the rules prepared under RCW 90.44.400.

(2) The ground water area or sub-area management programs shall include:

(a) A description of the specific ground water area or sub-areas, or separate depth zones within any such area or sub-area, and the relationship of this zone or area to the land use management responsibilities of county government;

(b) A management program based on long-term monitoring and resource management objectives for the area or sub-area;

(d) Projection of water supply needs for existing and future identified user groups and beneficial uses;

(e) Identification of water resource management policies and/or practices that may impact the recharge of the designated area or policies that may affect the safe yield and quantity of water available for future appropriation;

(f) Identification of land use and other activities that may impact the quality and efficient use of the ground water, including domestic, industrial, solid, and other waste disposal, underground storage facilities, or storm water management practices;

(g) The design of the program necessary to manage the resource to assure long-term benefits to the citizens of the state;

(h) Identification of water quality objectives for the aquifer system which recognize existing and future uses of the aquifer and that are in accordance with ((~~department of ecology~~)) division engineer and department of social and health services drinking and surface water quality standards;

(i) Long-term policies and construction practices necessary to protect existing water rights and subsequent facilities installed in accordance with the ground water area or sub-area management programs and/or other water right procedures;

(j) Annual withdrawal rates and safe yield guidelines which are directed by the long-term management programs that recognize annual variations in aquifer recharge;

(k) A description of conditions and potential conflicts and identification of a program to resolve conflicts with existing water rights;

(l) Alternative management programs to meet future needs and existing conditions, including water conservation plans; and

(m) A process for the periodic review of the ground water management program and monitoring of the implementation of the program.

(3) The ground water area or sub-area management programs shall be submitted for review in accordance with the state environmental policy act.

Sec. 139. RCW 90.44.410 and 1988 c 186 s 1 are each amended to read as follows:

(1) The ground water area or sub-area management programs shall include:

(b) A management program based on long-term monitoring and resource management objectives for the area or sub-area;

(d) Projection of water supply needs for existing and future identified user groups and beneficial uses;

(g) The design of the program necessary to manage the resource to assure long-term benefits to the citizens of the state;

(j) Annual withdrawal rates and safe yield guidelines which are directed by the long-term management programs that recognize annual variations in aquifer recharge;

(k) A description of conditions and potential conflicts and identification of a program to resolve conflicts with existing water rights;

(l) Alternative management programs to meet future needs and existing conditions, including water conservation plans; and

(m) A process for the periodic review of the ground water management program and monitoring of the implementation of the program.

(2) The ground water area or sub-area management programs shall be submitted for review in accordance with the state environmental policy act.

Sec. 140. RCW 90.44.420 and 1985 c 453 s 3 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer shall consider the ground water area or sub-area management plan for adoption in accordance with this chapter and chapter 90.54 RCW.

Upon completion of the ground water area or sub-area management program, the ((~~department of ecology~~)) division engineer shall hold a public hearing within the designated ground water management area for the purpose of taking public testimony on the proposed program. Following the public hearing, the ((~~department of ecology~~)) division engineer and affected local governments shall (1) prepare findings which either provide for the subsequent adoption of the program as proposed or identify the revisions necessary to ensure that the program is consistent with the intent of this chapter, and (2) adopt regulations, ordinances, and/or programs for implementing those provisions of the ground water management program which are within their respective jurisdictional authorities.

Sec. 141. RCW 90.44.430 and 1985 c 453 s 4 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer, the department of social and health services, and affected local governments shall be guided by the adopted program when reviewing and considering approval of all studies, plans, and facilities that may utilize or impact the implementation of the program.

Sec. 142. RCW 90.44.445 and 1993 c 99 s 1 are each amended to read as follows:

In any acreage expansion program adopted by the ((~~department~~)) division engineer as an element of a ground water management program, the authorization for a water right certificate holder to participate in the program shall be on an annual basis for the first two years. After the two-year period, the ((~~department~~)) division engineer may authorize participation for ten-year periods. The ((~~department~~)) division engineer may authorize participation for ten-year periods for certificate holders who have already participated in an acreage expansion program for two years. The ((~~department~~)) division engineer may require annual certification that the certificate holder has complied with all requirements of the program. The ((~~department~~)) division engineer may terminate the authority of a certificate holder to participate in the program for one calendar year if the certificate holder fails to comply with the requirements of the program.

Sec. 143. RCW 90.44.450 and 1989 c 348 s 7 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer may require withdrawals of ground water to be metered, or measured by other approved methods, as a condition for a new water right permit. The ((~~department~~)) division engineer may also require, as a condition for such permits, reports regarding such withdrawals as to the amount of water being withdrawn. These reports shall be in a form prescribed by the ((~~department~~)) division engineer.

Sec. 144. RCW 90.46.005 and 1992 c 204 s 1 are each amended to read as follows:

The legislature finds that by encouraging the use of reclaimed water while assuring the health and safety of all Washington citizens and the protection of its environment, the state of Washington will continue to use water in the best interests of present and future generations.

To facilitate the opportunity to use reclaimed water as soon as is practicable, the legislature encourages the cooperative efforts of the public and private sectors and the use of pilot projects to effectuate the goals of this chapter. The legislature further directs the department of health and the ((~~department of ecology~~)) division engineer to coordinate efforts towards developing an efficient and streamlined process for creating and implementing processes for the use of reclaimed water.

Sec. 145. RCW 90.46.020 and 1992 c 204 s 3 are each amended to read as follows:

(1) The ((~~department of ecology~~)) division engineer shall, in coordination with the department of health, develop interim standards for pilot projects under subsection (3) of this section on or before July 1, 1992, for the use of reclaimed water in land applications.

(2) The department of health shall, in coordination with the ((~~department of ecology~~)) division engineer, develop interim standards for pilot projects under subsection (3) of this section on or before November 15, 1992, for the use of reclaimed water in commercial and industrial activities.

(3) The ((~~department of ecology~~)) division engineer and the department of health shall assist interested parties in the development of pilot projects to aid in achieving the purposes of this chapter.

Sec. 146. RCW 90.46.030 and 1992 c 204 s 4 are each amended to read as follows:

(1) The department of health shall, in coordination with the ((~~department of ecology~~)) division engineer, adopt a single set of standards, procedures, and guidelines on or before August 1, 1993, for the industrial and commercial use of reclaimed water.

(2) The department of health may issue a reclaimed water permit for industrial and commercial uses of reclaimed water to the generator of reclaimed water who may then distribute the water, subject to provisions in the permit governing the location, rate, water quality, and purposes of use.

(3) The department of health in consultation with the advisory committee established in RCW 90.46.050, shall develop recommendations for a fee structure for permits issued under subsection (2) of this section. Fees shall be established in amounts to fully recover, and not exceed, expenses incurred by the department of health in processing permit applications and modifications, monitoring and evaluating compliance with permits, and conducting inspections and supporting the reasonable overhead expenses that are directly related to these activities. Permit fees may not be used for research or enforcement activities. The department of health shall not issue permits under this section until a fee structure has been established.

(4) A permit under this section for use of reclaimed water may be issued only to a municipal, quasi-municipal, or other governmental entity or to the holder of a waste discharge permit issued under chapter 90.48 RCW.

(5) The authority and duties created in this section are in addition to any authority and duties already provided in law with regard to sewage and wastewater collection, treatment, and disposal for the protection of health and safety of the state's waters. Nothing in this section limits the powers of the state or any political subdivision to exercise such authority.

Sec. 147. RCW 90.46.040 and 1992 c 204 s 5 are each amended to read as follows:

(1) The ((~~department of ecology~~)) division engineer shall, in coordination with the department of health, adopt a single set of standards, procedures, and guidelines, on or before August 1, 1993, for land applications of reclaimed water.

(2) A permit is required for any land application of reclaimed water. The ((~~department of ecology~~)) division engineer may issue a reclaimed water permit under chapter 90.48 RCW to the generator of reclaimed water who may then distribute the water, subject to provisions in the permit governing the location, rate, water quality, and purpose of use. The ((~~department of ecology~~)) division engineer shall not issue more than one permit for any individual land application of reclaimed water to a single generator.

(3) In cases where the ((~~department of ecology~~)) division engineer determines, in land applications of reclaimed water, that a significant risk to the public health exists, the ((~~department~~)) division engineer shall refer the application to the department of health for review and consultation and the department of health may require fees appropriate for review and consultation from the applicant pursuant to RCW 43.70.250.

(5) The authority and duties created in this section are in addition to any authority and duties already provided in law. Nothing in this section limits the powers of the state or any political subdivision to exercise such authority.

Sec. 148. RCW 90.46.050 and 1992 c 204 s 6 are each amended to read as follows:

(1) The department of health shall, before May 1, 1992, form an advisory committee, in coordination with the ((~~department of ecology~~)) division engineer and the department of agriculture, which will provide technical assistance in the development of standards, procedures, and guidelines required by this chapter. Such committee shall be composed of individuals from the public wastewater utilities, landscaping enhancement industry, commercial and industrial application community, and any other persons deemed technically helpful by the department of health.

(2) The department of health shall report to the joint select committee on water resource policy by December 1, 1992, on the fee structure which has been recommended under RCW 90.46.030(3) and review fees authorized under RCW 90.46.040(3).

Sec. 149. RCW 90.54.010 and 1990 c 295 s 1 are each amended to read as follows:

(1) The legislature finds that:

(a) Proper utilization of the water resources of this state is necessary to the promotion of public health and the economic well-being of the state and the preservation of its natural resources and aesthetic values. Although water is a renewable resource, its supply and availability are becoming increasingly limited, particularly during summer and fall months and dry years when demand is greatest. Growth and prosperity have significantly increased the competition for this limited resource. Adequate water supplies are essential to meet the needs of the state's growing population and economy. At the same time instream resources and values must be preserved and protected so that future generations can continue to enjoy them.

(b) All citizens of Washington share an interest in the proper stewardship of our invaluable water resources. To ensure that available water supplies are managed to best meet both instream and offstream needs, a comprehensive planning process is essential. The people of the state have the unique opportunity to work together to plan and manage our water. Through a comprehensive planning process that includes the state, Indian tribes, local governments, and interested parties, it is possible to make better use of available water supplies and achieve better management of water resources. Through comprehensive planning, conflicts among water users and interests can be reduced or resolved. It is in the best interests of the state that comprehensive water resource planning be given a high priority so that water resources and associated values can be utilized and enjoyed today and protected for tomorrow.

(c) Diverse hydrologic, climatic, cultural, and socioeconomic conditions exist throughout the regions of the state. Water resource issues vary significantly across regions. Comprehensive water resource planning is best accomplished through a regional planning process sensitive to the unique characteristics and issues of each region.

(d) Comprehensive water resource planning must provide interested parties adequate opportunity to participate. Water resource issues are best addressed through cooperation and coordination among the state, Indian tribes, local governments, and interested parties.

(e) The long-term needs of the state require ongoing assessment of water availability, use, and demand. A thorough inventory of available resources is essential to water resource management. Current state water resource data and data management is inadequate to meet changing needs and respond to competing water demands. Therefore, a state water resource data program is needed to support an effective water resource management program. Efforts should be made to coordinate and consolidate into one resource data system all relevant information developed by the ((~~department of ecology~~)) division engineer and other agencies relating to the use, protection, and management of the state's water resources.

(2) It is the purpose of this chapter to set forth fundamentals of water resource policy for the state to insure that waters of the state are protected and fully utilized for the greatest benefit to the people of the state of Washington and, in relation thereto, to provide direction to the ((~~department of ecology~~)) division engineer, other state agencies and officials, and local government in carrying out water and related resources programs. It is the intent of the legislature to work closely with the executive branch, Indian tribes, local government, and interested parties to ensure that water resources of the state are wisely managed.

Sec. 150. RCW 90.54.030 and 1990 c 295 s 2 are each amended to read as follows:

For the purpose of ensuring that the ((~~department~~)) division engineer is fully advised in relation to the performance of the water resources program provided in RCW 90.54.040, and to provide information and support to the joint select committee established in RCW 90.54.024, the ((~~department~~)) division engineer is directed to become informed with regard to all phases of water and related resources of the state. To accomplish this objective the ((~~department~~)) division engineer shall:

(1) Develop a comprehensive water resource data program that provides the information necessary for effective planning and management on a regional and state-wide basis. The data program shall include an information management plan describing the data requirements for effective water resource planning, and a system for collecting and providing access to water resource data on a regional and state-wide basis. The water resource data program shall also include a resource inventory and needs assessment pursuant to subsection (5) of this section;

(2) Collect, organize and catalog existing information and studies available to it from all sources, both public and private, pertaining to water and related resources of the state;

(3) Develop such additional data and studies pertaining to water and related resources as are necessary to accomplish the objectives of this chapter;

(4) Develop alternate courses of action to solve existing and foreseeable problems of water and related resources and include therein, to the extent feasible, the economic and social consequences of each such course, and the impact on the natural environment;

(5) Establish a water resources data management task force to evaluate data management needs, advise the joint select committee on water resource policy, the legislature, and the ((~~department~~)) division engineer in developing an information management plan, and conduct a water resource inventory and needs assessment. The task force shall include representatives of appropriate state agencies, Indian tribes, local governments, and interested parties. The task force shall include expertise in both water resources and resource data management. The task force shall make recommendations to the ((~~department~~)) division engineer on developing a data base for water resource planning throughout the state. In conducting the water resource inventory and needs assessment, the task force shall oversee the inventory of existing data and determine what additional data is needed for effective water resource planning and management. The task force shall otherwise provide continuing guidance to the joint select committee on water resource policy, the legislature, and the ((~~department~~)) division engineer in developing and maintaining an effective information management plan. The ((~~department~~)) division engineer shall coordinate the water resource data program to provide water resource information that meets the needs of the comprehensive water resources program and planning process provided for in RCW 90.54.040;

(6) Prior to September 1, 1990, provide a report to the chairs of the appropriate legislative committees based on the preliminary findings and recommendations of the water resources data management task force. The report shall document the current information flows and data collection processes for state water resources data, and shall include an analysis of task force recommendations for developing additional information to meet water resource data needs. The report shall further include an estimate of funding requirements to implement the water resources data program for consideration in future biennial budget decisions;

(7) Prior to implementation of any preliminary findings and recommendations pursuant to subsection (6) of this section, and contingent on legislative appropriation, develop a five-year plan for data collection and information management approved by the department of information services. Commencing July 1, 1991, the ((~~department~~)) division engineer shall provide annual reports to the chairs of the appropriate legislative committees on the development and implementation of the five-year plan and progress toward completion of the water resource inventory and needs assessment; and

(8) Establish pursuant to task force recommendations a process to resolve technical issues in the development and implementation of the water resource inventory and needs assessment.

All the foregoing shall be included in a "water resources information system" established and maintained by the ((~~department~~)) division engineer. The ((~~department~~)) division engineer shall develop a system of cataloging, storing and retrieving the information and studies of the information system so that they may be made readily available to and effectively used not only by the ((~~department~~)) division engineer but by the public generally.

Sec. 151. RCW 90.54.040 and 1988 c 47 s 5 are each amended to read as follows:

(1) The ((~~department~~)) division engineer, through the adoption of appropriate rules, is directed, as a matter of high priority to insure that the waters of the state are utilized for the best interests of the people, to develop and implement in accordance with the policies of this chapter a comprehensive state water resources program which will provide a process for making decisions on future water resource allocation and use. The ((~~department~~)) division engineer may develop the program in segments so that immediate attention may be given to waters of a given physioeconomic region of the state or to specific critical problems of water allocation and use.

The current guidelines, standards, or criteria governing the elements of the water resource program established pursuant to this subsection shall not be altered or amended after March 15, 1988, in accordance with RCW 90.54.022(5).

(2) In relation to the management and regulatory programs relating to water resources vested in it, the ((~~department~~)) division engineer is further directed to modify existing regulations and adopt new regulations, when needed and possible, to insure that existing regulatory programs are in accord with the water resource policy of this chapter and the program established in subsection (1) of this section. The current guidelines, standards, or criteria governing the ((~~department's~~)) division engineer's implementation of this subsection shall not be altered or amended after March 15, 1988, in accordance with subsection (1) of this section.

(3) The ((~~department~~)) division engineer is directed to review all statutes relating to water resources which it is responsible for implementing. When any of the same appear to the ((~~department~~)) division engineer to be ambiguous, unclear, unworkable, unnecessary, or otherwise deficient, it shall make recommendations to the legislature including appropriate proposals for statutory modifications or additions. Whenever it appears that the policies of any such statutes are in conflict with the policies of this chapter, and the ((~~department~~)) division engineer is unable to fully perform as provided in subsection (2) of this section, the ((~~department~~)) division engineer is directed to submit statutory modifications to the legislature which, if enacted, would allow the ((~~department~~)) division engineer to carry out such statutes in harmony with this chapter.

Sec. 152. RCW 90.54.045 and 1991 c 347 s 4 are each amended to read as follows:

(1) In the development and implementation of the comprehensive state water resources program required in RCW 90.54.040(1), the process described therein shall involve participation of appropriate state agencies, Indian tribes, local governments, and interested parties, and shall be applied on a regional basis pursuant to subsection (2) of this section.

(2) Prior to July 1, 1991, the ((~~department~~)) division engineer, with advice from appropriate state agencies, Indian tribes, local government, and interested parties, shall identify regions and establish regional boundaries for water resource planning and shall designate two regions in which the process shall be initiated on a pilot basis. One region shall encompass an area within the Puget Sound basin in which critical water resource issues exist. A concurrent pilot process may encompass a region east of the Cascade mountains.

(3) The ((~~department~~)) division engineer shall report to the chairs of the appropriate legislative committees prior to July 1st each year summarizing the progress of the pilot process in the two regions. The pilot process in each region shall be completed and shall produce a regional water plan by December 31, 1993.

(4) Appropriate state agencies, Indian tribes, local governments, and interested parties in regions not selected for the pilot program are strongly encouraged to commence water resource planning within their regions.

Sec. 153. RCW 90.54.050 and 1988 c 47 s 7 are each amended to read as follows:

In conjunction with the programs provided for in RCW 90.54.040(1), whenever it appears necessary to the ((~~director~~)) division engineer in carrying out the policy of this chapter, the ((~~department~~)) division engineer may by rule adopted pursuant to chapter 34.05 RCW:

(1) Reserve and set aside waters for beneficial utilization in the future, and

(2) When sufficient information and data are lacking to allow for the making of sound decisions, withdraw various waters of the state from additional appropriations until such data and information are available.

Prior to the adoption of a rule under this section, the ((~~department~~)) division engineer shall conduct a public hearing in each county in which waters relating to the rule are located. The public hearing shall be preceded by a notice placed in a newspaper of general circulation published within each of said counties. Rules adopted hereunder shall be subject to review in accordance with the provisions of RCW ((~~34.05.538 or~~)) 34.05.240.

No new rules or changes to existing rules to reserve or set aside water may be adopted pursuant to this section, as provided in RCW 90.54.022(5).

Sec. 154. RCW 90.54.060 and 1971 ex.s. c 225 s 6 are each amended to read as follows:

To insure that all of the various persons and entities having an interest in the water resources of the state and the programs of the chapter are provided with a full opportunity for involvement not only with the development of the program but the implementation by the ((~~department~~)) division engineer under this chapter, the following directions are given:

(1) The ((~~department~~)) division engineer shall make reasonable efforts to inform the people of the state about the state's water and related resources and their management. The ((~~department~~)) division engineer in the performance of the responsibilities provided in this chapter shall not only invite but actively encourage participation by all persons and private groups and entities showing an interest in water resources programs of this chapter.

(2) The ((~~department~~)) division engineer shall similarly invite and encourage participation by all agencies of federal, state and local government, including counties, municipal and public corporations, having interests or responsibilities relating to water resources. Said state and local agencies are directed to fully participate to insure that their interests are considered by the ((~~department~~)) division engineer. The ((~~department~~)) division engineer shall, when funds are made available to it for such purposes, provide assistance grants to said state and local agencies for the purposes of financing activities directed to be performed by them under this subsection.

Sec. 155. RCW 90.54.100 and 1971 ex.s. c 225 s 11 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer shall as a matter of high priority evaluate the needs for water resource development projects and the alternative methods of financing of the same by public and private agencies, including financing by federal, state and local governments and combinations thereof. Such evaluations shall be broadly based and be included as a part of the comprehensive state water resources program relating to uses and management as defined in RCW 90.54.030. A report of the ((~~department~~)) division engineer relating to such evaluations, including any recommendations, shall be submitted to the legislature ((~~in accordance with RCW 90.54.070~~)).

Sec. 156. RCW 90.54.110 and 1971 ex.s. c 225 s 12 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer is authorized to obtain the benefits including acceptance of grants, of any program of the federal government or any other source to carry out the provisions of this chapter and is empowered to take such actions as are necessary and appropriate to secure such benefits.

Sec. 157. RCW 90.54.120 and 1971 ex.s. c 225 s 13 are each amended to read as follows:

For the purposes of this chapter, unless the context is clearly to the contrary, the following definitions shall be used:

(1) ((~~"Department"~~)) "Engineer" means ((~~department of ecology~~)) division engineer.

(2) "Utilize" or "utilization" shall not only mean use of water for such long recognized consumptive or nonconsumptive beneficial purposes as domestic, stock watering, industrial, commercial, agricultural, irrigation, hydroelectric power production, thermal power production, mining, recreational, maintenance of wildlife and fishlife purposes, but includes the retention of water in lakes and streams for the protection of environmental, scenic, aesthetic and related purposes, upon which economic values have not been placed historically and are difficult to quantify.

Sec. 158. RCW 90.54.130 and 1984 c 253 s 4 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer may recommend land use management policy modifications it finds appropriate for the further protection of ground and surface water resources in this state. Such advisory recommendations may be made to other state regulatory agencies, local governments, water systems, and other appropriate bodies.

Sec. 159. RCW 90.54.140 and 1984 c 253 s 5 are each amended to read as follows:

The legislature hereby declares that the protection of ground water aquifers which are the sole drinking water source for a given jurisdiction shall be of the uppermost priority of the ((~~state department of ecology~~)) division engineer, department of social and health services, and all local government agencies with jurisdiction over such areas. In administration of programs related to the disposal of wastes and other practices which may impact such water quality, the ((~~department of ecology~~)) division engineer, department of social and health services, and such affected local agencies shall explore all possible measures for the protection of the aquifer, including any appropriate incentives, penalties, or other measures designed to bring about practices which provide for the least impact on the quality of the ground water.

Sec. 160. RCW 90.54.150 and 1979 ex.s. c 216 s 9 are each amended to read as follows:

When feasible, the ((~~department of ecology~~)) division engineer shall cooperate with the United States and other public entities, including Indian tribes, in the planning, development, and operation of comprehensive water supply projects designed primarily to resolve controversies and conflicts over water use by increasing water quantity and improving water quality within a stream or river system, or other bodies of water, as well as to enhance opportunities for both instream and diversionary water uses within the system, and, in relation thereto, the ((~~department~~)) division engineer may:

(1) Participate with the federal government and other public entities in the planning, development, operation, and management of various phases of water projects hereafter authorized by congress;

(2) Provide rights to the use of public waters under the state's surface and ground water codes for these projects when the waters are available for allocation; and

(3) Provide financial assistance through grants and loans for projects when moneys are made available to the ((~~department~~)) division engineer for this assistance by other provisions of this code.

Sec. 161. RCW 90.54.160 and 1984 c 83 s 1 are each amended to read as follows:

The ((~~department of ecology~~)) division engineer shall report to the legislature on the last working day of December of 1984, 1985, and 1986, and thereafter as deemed appropriate by the ((~~department~~)) division engineer, on dam facilities that exhibit safety deficiencies sufficient to pose a significant threat to the safety of life and property. The report shall identify the owner or owners of such facilities, detail the owner's ability and attitude towards correcting such deficiencies, and provide an estimate of the cost of correcting the deficiencies if a study has been completed.

Sec. 162. RCW 90.54.170 and 1985 c 444 s 6 are each amended to read as follows:

In addition to other requirements of this chapter, when the proposed water resource development project involves a new water supply combined with an electric generation facility where such electricity generated may be sold to an entity authorized by law to distribute electricity, the ((~~department~~)) division engineer shall evaluate and utilize, in connection with any application to appropriate water pursuant to the water code, chapter 90.03 RCW, sufficient information furnished by the project applicant regarding the need for the project, alternative means of serving the purposes of the project, the cumulative effects of the project and similar projects that are built, under construction or permitted in the relevant river basin or basins, the impact, if any, on flood control plans and an estimate of the impact, if any, of the sale of the project's electricity on the rates of utility customers of the Bonneville power administration. Such information shall be furnished at the project applicant's own cost and expense.

Sec. 163. RCW 90.54.190 and 1994 sp.s. c 9 s 856 are each amended to read as follows:

(1) The ((~~department~~)) division engineer shall establish a list of basin and stream efficiency initiatives and select an irrigation area for a voluntary demonstration project.

(2) Prior to conducting conservation assessments and developing conservation plans, the ((~~department of ecology~~)) division engineer shall secure technical and financial assistance from the bureau of reclamation to reduce the costs to the state to the extent possible.

(3) A "conservation assessment" as described in this section shall be conducted before a demonstration project to increase the efficiency of irrigated agriculture is undertaken for an irrigated area, a basin, subbasin, or stream. The conservation assessment should:

(a) Evaluate existing patterns, including current reuse of return flows, and priorities of water use;

(b) Assess conflicting needs for future water allocations and claims to reserved rights;

(d) Assess alternative efficiency measures;

(e) Determine the likely net water savings of efficiency improvements including the amount and timing of water that would be saved and potential benefits and impacts to other water uses and resources including effects on artificial recharge of ground water and wetland impacts;

(f) Evaluate the full range of costs and benefits that would accrue from various measures; and

(g) Evaluate the potential for integrating conservation efforts with operation of existing or potential storage facilities.

(4) The conservation assessment shall be used as the basis for development of a demonstration conservation plan to rank conservation elements based on relative costs, benefits, and impacts. It shall also estimate the costs of implementing the plan and propose a specific basis for cost share distributions.

The demonstration conservation plan shall be developed jointly by the ((~~department~~)) division engineer and a conservation plan formulation committee consisting of representatives of a cross-section of affected local water users, members of the public, and tribal governments. Other public agencies with expertise in water resource management may participate as nonvoting committee members. A proposed demonstration conservation plan may be approved by the ((~~department~~)) division engineer and the committee only after public comment has been received.

(5) The ((~~department~~)) division engineer shall reimburse any members of the committee in subsection (4) of this section who are not representing governmental agencies or entities for their travel expenses in accordance with RCW 43.03.050 and 43.03.060.

Sec. 164. RCW 90.54.200 and 1993 sp.s. c 4 s 11 are each amended to read as follows:

The ((~~department~~)) division engineer, in cooperation with the Washington state water resources association, shall accomplish the following:

(1) Determine and evaluate rate structures currently used by irrigation districts in the state of Washington;

(2) Identify economic and institutional constraints to implementing conservation rate structures; and

(3) Develop model conservation rate structures for consideration by irrigation districts.

The ((~~department~~)) division engineer shall provide its findings to the appropriate committees of the legislature no later than December 31, 1993.

Sec. 165. RCW 90.54.900 and 1971 ex.s. c 225 s 9 are each amended to read as follows:

Nothing in this chapter shall affect any existing water rights, riparian, appropriative, or otherwise; nor shall it affect existing rights relating to the operation of any hydroelectric or water storage reservoir or related facility; nor shall it affect any exploratory work, construction or operation of a thermal power plant by an electric utility in accordance with the provisions of chapter 80.50 RCW. Nothing in this chapter shall enlarge or reduce the ((~~department of ecology's~~)) division engineer's authority to regulate the surface use of waters of this state or structures on the underlying beds, tidelands or shorelands.

Sec. 166. RCW 90.66.040 and 1979 c 3 s 4 are each amended to read as follows:

For the purposes of this chapter, the following definitions shall be applicable:

(1) "Family farm" means a geographic area including not more than two thousand acres of irrigated agricultural lands, whether contiguous or noncontiguous, the controlling interest in which is held by a person having a controlling interest in no more than two thousand acres of irrigated agricultural lands in the state of Washington which are irrigated under rights acquired after the effective date of this act.

(2) "Person" means any individual, corporation, partnership, limited partnership, organization, or other entity whatsoever, whether public or private. The term "person" shall include as one person all corporate or partnership entities with a common ownership of more than one-half of the assets of each of any number of such entities.

(3) "Controlling interest" means a property interest that can be transferred to another person, the percentage interest so transferred being sufficient to effect a change in control of the landlord's rights and benefits. Ownership of property held in trust shall not be deemed a controlling interest where no part of the trust has been established through expenditure or assignment of assets of the beneficiary of the trust and where the rights of the family farm permit which is a part of the trust cannot be transferred to another by the beneficiary of the trust under terms of the trust. Each trust of a separate donor origin shall be treated as a separate entity and the administration of property under trust shall not represent a controlling interest on the part of the trust officer.

(4) ((~~"Department"~~)) "Engineer" means the ((~~department of ecology~~)) division engineer of the state of Washington.

(5) "Application", "permit" and "public waters" shall have the meanings attributed to these terms in chapters 90.03 and 90.44 RCW.

(6) "Public water entity" means any public or governmental entity with authority to administer and operate a system to supply water for irrigation of agricultural lands.

Sec. 167. RCW 90.66.050 and 1979 c 3 s 5 are each amended to read as follows:

After the effective date of this act, all permits issued for the withdrawal of public waters for the purpose of irrigating agricultural lands shall be classified as follows and issued with the conditions set forth in this chapter:

(1) "Family farm permits". Such permits shall limit the use of water withdrawn for irrigation of agricultural lands to land qualifying as a family farm.

(2) "Family farm development permits". Such permits may be issued to persons without any limit on the number of acres to be irrigated during a specified period of time permitted for the development of such land into family farms and the transfer of the controlling interest of such irrigated lands to persons qualifying for family farm permits. The initial period of time allowed for development and transfer of such lands to family farm status shall not exceed ten years. Such time limit may be extended by the ((~~department~~)) division engineer for not to exceed an additional ten years upon a showing to the ((~~department~~)) division engineer that an additional period of time is needed for orderly development and transfer of controlling interests to persons who can qualify for family farm permits.

(3) "Publicly owned land permits". Such permits shall be issued only to governmental entities permitting the irrigation of publicly owned lands.

(4) "Public water entity permits". Such permits may be issued to public water entities under provisions requiring such public water entity, with respect to delivery of water for use in the irrigation of agricultural lands, to make water deliveries under the same provisions as would apply if separate permits were issued for persons eligible for family farm permits, permits to develop family farms, or for the irrigation of publicly owned land: PROVIDED, HOWEVER, That such provisions shall not apply with respect to water deliveries on federally authorized reclamation projects if such federally authorized projects provide for acreage limitations in water delivery contracts.

Sec. 168. RCW 90.66.060 and 1979 c 3 s 6 are each amended to read as follows:

(1) The right to withdraw water for use for the irrigation of agricultural lands under authority of a family farm permit shall have no time limit but shall be conditioned upon the land being irrigated complying with the definition of a family farm as defined at the time the permit is issued: PROVIDED, HOWEVER, That if the acquisition by any person of land and water rights by gift, devise, bequest, or by way of bona fide satisfaction of a debt, would otherwise cause land being irrigated pursuant to a family farm permit to lose its status as a family farm, such acquisition shall be deemed to have no effect upon the status of family farm water permits pertaining to land held or acquired by the person acquiring such land and water rights if all lands held or acquired are again in compliance with the definition of a family farm within five years from the date of such acquisition.

(2) If the ((~~department~~)) division engineer determines that water is being withdrawn under a family farm permit for use on land not in conformity with the definition of a family farm, the ((~~department~~)) division engineer shall notify the holder of such family farm permit by personal service of such fact and the permit shall be suspended two years from the date of receipt of notice unless the person having a controlling interest in said land satisfies the ((~~department~~)) division engineer that such land is again in conformity with the definition of a family farm. The ((~~department~~)) division engineer may, upon a showing of good cause and reasonable effort to attain compliance on the part of the person having the controlling interest in such land, extend the two year period prior to suspension. If conformity is not achieved prior to five years from the date of notice the rights of withdrawal shall be canceled.

Sec. 169. RCW 90.66.070 and 1979 c 3 s 7 are each amended to read as follows:

(1) At any time that the holder of a family farm development permit or a publicly owned land permit shall transfer the controlling interest of all or any portion of the land entitled to water under such permit to a person who can qualify to receive water for irrigation of such land under a family farm permit, the ((~~department~~)) division engineer shall, upon request, issue a family farm permit to such person under the same conditions as would have been applicable if such request had been made at the time of the granting of the original family farm development permit. If the permit under which water is available is held by a public water entity prior to the transfer of the controlling interest to a person who qualifies for a family farm permit, such entity shall continue delivery of water to such land without any restriction on the length of time of delivery not applicable generally to all its water customers.

(2) The issuance of a family farm permit secured through the acquisition of land and water rights from the holder of a family farm development permit, or from the holder of a publicly owned land permit, where water delivery prior to the transfer is from a public water entity, may be conditioned upon the holder of the family farm permit issued continuing to receive water through the facilities of the public water entity.

Sec. 170. RCW 90.66.080 and 1979 c 3 s 8 are each amended to read as follows:

The ((~~department~~)) division engineer is hereby empowered to promulgate such rules as may be necessary to carry out the provisions of this chapter. Decisions of the ((~~department~~)) division engineer, other than rule making, shall be subject to review in accordance with chapter 43.21B RCW.

PART III

CODIFICATION

NEW SECTION. Sec. 171. Sections 1 through 9 of this act are each added to chapter 43.27A RCW.

NEW SECTION. Sec. 172. RCW 43.21A.067 as amended by this act shall be recodified as a section in chapter 43.27A RCW.

NEW SECTION. Sec. 173. RCW 90.14.043 is decodified.

PART IV

REPEALERS

NEW SECTION. Sec. 174. RCW 43.21A.064 and 1977 c 75 s 46 & 1965 c 8 s 43.21.130 are each repealed.

PART V

PART HEADINGS

NEW SECTION. Sec. 175. Part headings as used in this act constitute no part of the law.

PART VI

EXPIRATION AND EFFECTIVE DATES

NEW SECTION. Sec. 176. Section 138 of this act shall expire June 30, 1998.

NEW SECTION. Sec. 177. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995, except section 139 of this act, which shall take effect June 30, 1998.