BP BHEAD INT S [atlas:bill]

AN ACT Relating to critical water supply service areas; amending RCW 70.116.050, 70.116.060, and 70.116.090; adding a new section to chapter 36.94 RCW; adding a new section to chapter 36.93 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35.92 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that there are gaps in the current law pertaining to the availability of water service in critical water supply service areas. State statutes that govern critical water supply service areas are intended to limit the proliferation of small public water systems so that water can be developed for use in a safe, effective, and efficient manner. Purveyors within the boundaries of a critical water supply service area are therefore granted a virtual monopoly for the delivery of water service within a particular area.

Although the legislature recognizes that cities and towns are generally not required to provide water service beyond their boundaries, citizens of the state who live in critical water supply service areas need to be assured that water service will be available to them when they are within a city's exclusive service area and when there are no reasonably feasible alternative water purveyors capable of providing timely and cost-effective service. The legislature also finds that this problem of effective and efficient delivery of a safe water supply is exacerbated when the critical water supply service area is part of one or more urban growth areas. Therefore, it is the intent of the legislature to establish a process for ensuring that a safe water supply is available in a timely manner to residents and property owners in critical water supply service areas within urban growth areas.

Sec. 2. RCW 70.116.050 and 1995 c 376 s 7 are each amended to read as follows:

(1) Each purveyor within the boundaries of a critical water supply service area shall develop a water system plan for the purveyor's future service area if such a plan has not already been developed((~~: PROVIDED, That~~)). However, nonmunicipally owned public water systems are exempt from the planning requirements of this chapter, except for the establishment of service area boundaries if they have no plans for water service beyond their existing service area((~~: PROVIDED~~)). Further, ((~~That~~)) if the county legislative authority permits a change in development that will increase the demand for water service of such a system beyond the existing system's ability to provide minimum water service, the purveyor shall develop a water system plan in accordance with this section. The establishment of future service area boundaries shall be in accordance with RCW 70.116.070.

(2) After the boundaries of a critical water supply service area have been established pursuant to RCW 70.116.040, the committee established in RCW 70.116.040 shall participate in the development of a coordinated water system plan for the designated area. Such a plan shall incorporate all water system plans developed pursuant to subsection (1) of this section. The plan shall provide for maximum integration and coordination of public water system facilities consistent with the protection and enhancement of the public health and well-being. Decisions of the committee shall be by majority vote of those present at meetings of the committee.

(3) Those portions of a critical water supply service area not yet served by a public water system shall have a coordinated water system plan developed by existing purveyors based upon permitted densities in county plans, ordinances, and/or growth policies for a minimum of five years beyond the date of establishment of the boundaries of the critical water supply service area.

(4) To ((~~insure~~)) ensure that the plan incorporates the proper designs to protect public health, the secretary shall adopt ((~~regulations pursuant to~~)) rules under chapter 34.05 RCW concerning the scope and content of coordinated water system plans, and shall ensure, as minimum requirements, that such plans:

(a) Are reviewed by the appropriate local governmental agency to ((~~insure~~)) ensure that the plan is not inconsistent with the land use plans, shoreline master programs, and/or developmental policies of the general purpose local government or governments whose jurisdiction the water system plan affects.

(b) Recognize all water resource plans, water quality plans, and water pollution control plans which have been adopted by units of local, regional, and state government.

(d) Identify the future service area boundaries of the public water system or systems included in the plan within the critical water supply service area.

(e) Include a schedule indicating when water service will be available to lands that are located outside the corporate boundaries of a city or town. This subsection (4)(e) only applies to cities and towns located in counties that are required or choose to plan under RCW 36.70A.040, and only when the lands are included in both an urban growth area and a critical water supply service area designated to be served by the city or town.

(f) Identify feasible emergency inter-ties between adjacent purveyors.

((~~(f)~~)) (g) Include satellite system management requirements consistent with RCW 70.116.134.

((~~(g)~~)) (h) Include policies and procedures that generally address failing water systems for which counties may become responsible under RCW 43.70.195.

(5) If a "water general plan" for a critical water supply service area or portion thereof has been prepared pursuant to chapter 36.94 RCW and such a plan meets the requirements of subsections (1) and (4) of this section, such a plan shall constitute the coordinated water system plan for the applicable geographical area.

(6) The committee established in RCW 70.116.040 may develop and utilize a mechanism for addressing disputes that arise in the development of the coordinated water system plan.

(7) Prior to the submission of a coordinated water system plan to the secretary for approval pursuant to RCW 70.116.060, the legislative authorities of the counties in which the critical water supply service area is located shall hold a public hearing thereon and shall determine the plan's consistency with subsection (4) of this section. If within sixty days of receipt of the plan, the legislative authorities find any segment of a proposed service area of a purveyor's plan or any segment of the coordinated water system plan to be inconsistent with any current land use plans, shoreline master programs, and/or developmental policies of the general purpose local government or governments whose jurisdiction the water system plan affects, the secretary shall not approve that portion of the plan until the inconsistency is resolved between the local government and the purveyor. If no comments have been received from the legislative authorities within sixty days of receipt of the plan, the secretary may consider the plan for approval.

(8) Any county legislative authority may adopt an abbreviated plan for the provision of water supplies within its boundaries that includes provisions for service area boundaries, minimum design criteria, and review process. The elements of the abbreviated plan shall conform to the criteria established by the department under subsection (4) of this section and shall otherwise be consistent with other adopted land use and resource plans. The county legislative authority may, in lieu of the committee required under RCW 70.116.040, and the procedures authorized in this section, utilize an advisory committee that is representative of the water utilities and local governments within its jurisdiction to assist in the preparation of the abbreviated plan, which may be adopted by resolution and submitted to the secretary for approval. Purveyors within the boundaries covered by the abbreviated plan need not develop a water system plan, except to the extent required by the secretary or state board of health under other authority. Any abbreviated plan adopted by a county legislative authority pursuant to this subsection shall be subject to the same provisions contained in RCW 70.116.060 for coordinated water system plans that are approved by the secretary.

NEW SECTION. Sec. 3. A new section is added to chapter 36.94 RCW to read as follows:

(1) As part of either a county sewerage or water general plan, or both, a city or town located in a county that is required or chooses to plan under RCW 36.70A.040 must file a schedule with the county legislative authority indicating when water and sewer service will be available to lands that are located outside the corporate boundaries of the city or town, when: (a) The lands are included within an urban growth area; and (b) the lands are included within a critical water supply service area designated to be served by the city or town in accordance with chapter 70.116 RCW.

(2) The requirement for filing a schedule under subsection (1) of this section for water and sewer service does not apply when a city or town has already developed a schedule for providing this service as part of a capital facilities element, land use element, or other element of the comprehensive plan under chapter 36.70A RCW.

NEW SECTION. Sec. 4. A new section is added to chapter 36.93 RCW to read as follows:

(1) The board must invoke its review authority when it receives a petition meeting the requirements of this section that claims that an area designated to receive water under a coordinated water system plan in accordance with RCW 70.116.050 has not received a commitment for timely and reasonable service under RCW 70.116.050 and section 3 of this act or is not receiving service in a timely manner. "Area," for purposes of this section, means land: (a) Outside the corporate boundaries of a city or town located within a county that plans under RCW 36.70A.040; (b) that is within an urban growth area; and (c) that is included within a critical water supply service area designated to be served by the city or town in accordance with chapter 70.116 RCW.

(2) A petition requesting review may be filed with the board when it is signed by:

(a) Five percent of the registered voters residing within the area; or

(b) An owner or owners of property consisting of five percent of the assessed value within the area.

(3) After receiving a valid petition meeting the requirements of subsection (2) of this section, the board shall hold a hearing or hearings to determine the ability of the city or town to provide service in a timely manner according to guidelines developed by the secretary of health under RCW 70.116.060, and also review the feasibility of other purveyors in the general area to provide water service. The board shall follow the provisions of this chapter for providing notice of the hearing and conducting the hearing. Instead of issuing a final decision, however, the board shall, within one hundred twenty days of the filing of a sufficient petition, prepare findings and recommendations as well as a record of the hearing, and forward them to the secretary of health. No appeals may be made regarding the hearing, record, findings, or recommendations made by the board. Parties to the hearing may file written exceptions and responses to the exceptions with the secretary regarding the findings, recommendations, and record prepared by the board.

Sec. 5. RCW 70.116.060 and 1995 c 376 s 2 are each amended to read as follows:

(1) A coordinated water system plan shall be submitted to the secretary for design approval within two years of the establishment of the boundaries of a critical water supply service area.

(2) The secretary shall review the coordinated water system plan and, to the extent the plan is consistent with the requirements of this chapter and ((~~regulations~~)) rules adopted hereunder, shall approve the plan, provided that the secretary shall not approve those portions of a coordinated water system plan that fail to meet the requirements for future service area boundaries until any boundary dispute is resolved as set forth in RCW 70.116.070.

(3) Following the approval of a coordinated water system plan by the secretary:

(a) All purveyors constructing or proposing to construct public water system facilities within the area covered by the plan shall comply with the plan.

(b) Purveyors shall serve their designated service areas and future service areas according to the plan and no other purveyor shall establish a public water system within the area covered by the plan, unless the local legislative authority or the secretary, under (b)(ii) of this subsection, determines that existing purveyors are unable to provide the service in a timely and reasonable manner, pursuant to guidelines developed by the secretary. An existing purveyor is unable to provide the service in a timely manner if:

(i) The water cannot be provided to an applicant for water within one hundred twenty days unless specified otherwise by the local legislative authority. If such a determination is made, the local legislative authority shall require the new public water system to be constructed in accordance with the construction standards and specifications embodied in the coordinated water system plan approved for the area. The service area boundaries in the coordinated plan for the affected utilities shall be revised to reflect the decision of the local legislative authority; or

(ii) The secretary, after reviewing the record, findings, and recommendations prepared by a boundary review board under section 4 of this act, determines that service is not being provided in a timely manner. A decision by the secretary that service is not being provided in a timely manner shall be made within sixty days of the boundary review board's submittal of its record and recommendations and may be appealed to superior court by a party to the boundary review board hearing. Notice of appeal shall be filed within fourteen days of the secretary's decision. The filing of such a notice of appeal does not stay the effective date of the secretary's decision.

(4) The committee established in RCW 70.116.040 may be convened at the request of the secretary or the county legislative authority after the secretary has determined that service is not being provided in a timely or reasonable manner under subsection (3) of this section. The committee shall make recommendations for updating the plan to ensure that timely service will be provided to all residents within the critical water supply service area.

(5) The secretary may deny proposals to establish or to expand any public water system within a critical water supply service area for which there is not an approved coordinated water system plan at any time after two years of the establishment of the critical water supply service area((~~: PROVIDED, That~~)). However, service connections shall not be considered expansions.

((~~(5)~~)) (6) The affected legislative authorities may develop and utilize a mechanism for addressing disputes that arise in the implementation of the coordinated water system plan after the plan has been approved by the secretary.

((~~(6)~~)) (7)(a) After adoption of the initial coordinated water system plan, the local legislative authority or the secretary may determine that the plan should be updated or revised. The legislative authority may initiate an update at any time, but the secretary may initiate an update no more frequently than once every five years, except as provided in (b) of this subsection. The update may encompass all or a portion of the plan, with the scope of the update to be determined by the secretary and the legislative authority. The process for the update shall be the one prescribed in RCW 70.116.050.

((~~(7)~~)) (b) If the secretary determines that an existing purveyor is unable, unwilling, or is failing to provide service in a timely and reasonable manner, the secretary may initiate an update or revision of the plan to allow another purveyor to provide service to the area.

(8) The provisions of subsection (3) of this section shall not apply in any county for which a coordinated water system plan has not been approved under subsection (2) of this section.

((~~(8)~~)) (9) If the secretary initiates an update or revision of a coordinated water system plan, the state shall pay for the cost of updating or revising the plan.

Sec. 6. RCW 70.116.090 and 1977 ex.s. c 142 s 9 are each amended to read as follows:

The assumption of jurisdiction or control of any public water system or systems by a city, town, or code city, shall be ((~~subject~~)) according to the provisions of chapter 35.13A RCW((,)) that are applicable to water-sewer districts and the provisions of this chapter shall be superseded by the provisions of chapter 35.13A RCW regarding such an assumption of jurisdiction. The provisions of chapter 35.13A RCW do not supersede the provisions of this chapter with regards to the process for making findings by the secretary that service is not being furnished by a city or town in a timely manner and the secretary's role in curative actions under RCW 70.116.060(3)(b)(ii).

NEW SECTION. Sec. 7. A new section is added to chapter 35.21 RCW to read as follows:

(1) Regardless of the source of authority used by a city or town for the operation of utility services, a city or town must provide sewer and water service to an area outside of its geographic boundaries and shall not require the property owners to sign a preannexation agreement as a condition for the provision of sewer and water service, if: (a) The area is within an urban growth area; (b) the area is within a critical water supply service area, as defined in RCW 70.116.030, and the city or town is designated as the purveyor for that area in the coordinated water system plan; and (c) the area is within the city's sewer service area identified as part of a capital facilities element, land use element, or other element of a comprehensive plan under chapter 36.70A RCW.

(2) The requirements for furnishing water and sewer service under subsection (1) of this section are deemed to be met by a city or town when:

(a) The city or town allows property owners to connect to existing water and sewer lines located near the owners' property when the city or town is already providing such a service to other property in the general vicinity; and

(b) The city or town has filed a schedule under RCW 70.116.050 committing to a reasonable date when water and sewer service will be available to areas where there are no existing water and sewer lines, as well as areas where there are existing sewer and water lines but no property owners are connected to these services.

(3) Nothing in this section prohibits a city or town from imposing higher rates and charges for water and sewer service on customers located outside the geographic boundaries of the city or town, if the rates are based upon the increased cost of providing service to customers located outside the geographic boundary of the city.

(4) Nothing in this section invalidates preannexation agreements entered into before the effective date of this act.

(5) For the purposes of this section, the term preannexation agreement includes any agreement, covenant, petition, no-protest agreement, or other document that conditions service upon future annexation into the city or town and that is binding upon the property.

NEW SECTION. Sec. 8. A new section is added to chapter 35.92 RCW to read as follows:

(1) A city or town must provide sewer and water service to an area outside of its geographic boundaries and may not require the property owners to sign a preannexation agreement as a condition for providing sewer and water service, if: (a) The area is within an urban growth area; (b) the area is within a critical water supply service area, as defined in RCW 70.116.030, and the city or town is designated as the purveyor for that area in the coordinated water system plan; and (c) the area is within the city's sewer service area identified as part of a capital facilities element, land use element, or other element of a comprehensive plan under chapter 36.70A RCW.

(2) The requirements for furnishing water and sewer service under subsection (1) of this section are deemed to be met by a city or town when:

(b) The city or town has filed a schedule under RCW 70.116.050 providing a time frame when water and sewer service will be available to areas where there are no existing water and sewer lines, as well as to areas where there are existing water and sewer lines but no property owners are connected to these services.

(3) Nothing in this section prohibits a city or town from imposing higher rates and charges for water and sewer service on customers located outside the geographic boundaries of the city or town provided that the higher rates and charges are based upon the higher cost of delivering the service to the affected area.

(4) Nothing in this section invalidates preannexation agreements entered into before the effective date of this act.