AN ACT Relating to salmon recovery funding; amending RCW 75.46.005, 75.46.010, 75.46.080, and 76.12.110; adding new sections to chapter 75.46 RCW; providing an effective date; and declaring an emergency.

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

Sec. 1. RCW 75.46.005 and 1998 c 246 s 1 are each amended to read as follows:

The legislature finds that repeated attempts to improve salmonid fish runs throughout the state of Washington have failed to avert listings of salmon and steelhead runs as threatened or endangered under the federal endangered species act (16 U.S.C. Sec. 1531 et seq.). These listings threaten the sport, commercial, and tribal fishing industries as well as the economic well-being and vitality of vast areas of the state. It is the intent of the legislature to begin activities required for the recovery of salmon stocks as soon as possible, although the legislature understands that successful recovery efforts may not be realized for many years because of the life cycle of salmon and the complex array of natural and human-caused problems they face.

The legislature finds that it is in the interest of the citizens of the state of Washington for the state to retain primary responsibility for managing the natural resources of the state, rather than abdicate those responsibilities to the federal government. The legislature also finds that there is a substantial link between the provisions of the federal endangered species act and the federal clean water act (33 U.S.C. Sec. 1251 et seq.). The legislature further finds that habitat restoration is a vital component of salmon recovery efforts. Therefore, it is the intent of the legislature to specifically address salmon habitat restoration in a coordinated manner and to develop a structure that allows for the coordinated delivery of federal, state, and local assistance to communities for habitat projects that will assist in the recovery and enhancement of salmon stocks.

The legislature also finds that credible scientific review and oversight is essential for any salmon recovery effort to be successful.

The legislature therefore finds that a coordinated framework for responding to the salmon crisis is needed immediately. To that end, the salmon recovery office should be created within the governor's office to provide overall coordination of the state's response; an independent science team is needed to provide scientific review and oversight; a consolidated state funding process should be established through a salmon recovery funding board; the appropriate local or tribal government should provide local leadership in identifying and sequencing habitat restoration projects to be funded by state agencies; habitat restoration projects should be implemented without delay; and a strong locally based effort to restore salmon habitat should be established by providing a framework to allow citizen volunteers to work effectively.

Sec. 2. RCW 75.46.010 and 1998 c 246 s 2 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Adaptive management" means reliance on scientific methods to test the results of actions taken so that the management and related policy can be changed promptly and appropriately.

(2) "Board" means the salmon recovery funding board created in section 3 of this act.

(3) "Critical pathways methodology" means a project scheduling and management process for examining interactions between habitat projects and salmonid species, prioritizing habitat projects, and assuring positive benefits from habitat projects.

((~~(3)~~)) (4) "Habitat project list" is the list of projects resulting from the critical pathways methodology under RCW 75.46.070(2). Each project on the list must have a written agreement from the landowner on whose land the project will be implemented. Projects include habitat restoration projects, habitat protection projects, habitat projects that improve water quality, habitat projects that protect water quality, habitat-related mitigation projects, and habitat project maintenance and monitoring activities.

((~~(4)~~)) (5) "Habitat work schedule" means those projects from the habitat project list that will be implemented during the current funding cycle. The schedule shall also include a list of the entities and individuals implementing projects, the start date, duration, estimated date of completion, estimated cost, and funding sources for the projects.

((~~(5)~~)) (6) "Limiting factors" means conditions that limit the ability of habitat to fully sustain populations of salmon. ((~~These factors are primarily fish passage barriers and degraded estuarine areas, riparian corridors, stream channels, and wetlands.~~

~~(6)~~)) (7) "Listed stocks" means salmon and trout stocks that are listed or proposed for listing as threatened or endangered under the federal endangered species act, 16 U.S.C. Sec. 1531 et seq.

(8) "Project sponsor" is a county, city, special district, tribal government, state agency, federal agency, a combination of such governments through interlocal or interagency agreement((~~s provided under chapter 39.34 RCW~~)), a nonprofit organization, or one or more private citizens.

((~~(7)~~)) (9) "Salmon" includes all species of the family Salmonidae which are capable of self-sustaining, natural production.

((~~(8)~~)) (10) "Salmon recovery plan" means a state plan developed in response to a proposed or actual listing under the federal endangered species act that addresses limiting factors including, but not limited to harvest, hatchery, hydropower, habitat, and other factors of decline.

((~~(9)~~)) (11) "Interagency team" or "team" means the interagency review team created in RCW 75.46.080.

(12) "Tribe" or "tribes" means federally recognized Indian tribes.

((~~(10)~~)) (13) "WRIA" means a water resource inventory area established in chapter 173-500 WAC as it existed on January 1, 1997.

((~~(11)~~)) (14) "Owner" means the person holding title to the land or the person under contract with the owner to lease or manage the legal owner's property.

NEW SECTION. Sec. 3. A new section is added to chapter 75.46 RCW to read as follows:

(1) The salmon recovery funding board is created.

(2) The board shall consist of three members appointed by the governor, subject to confirmation by the senate. In making the appointments, the governor shall seek a board membership with the expertise necessary to provide strong fiscal oversight of salmon recovery expenditures. Board members shall not have a financial or regulatory interest in salmon recovery. The governor shall make the appointments not later than ninety days after the effective date of this section. The initial terms shall commence October 1st. Members shall serve staggered four-year terms and, of the initial appointments, one member shall serve a term of two years and one member shall serve a term of three years. The governor shall appoint the chair of the board.

(3) Staff support to the board shall be provided by the salmon recovery office and by the interagency review team for those functions assigned to the team by this chapter.

(4) Members of the board shall be compensated as provided by RCW 43.03.250 and shall be reimbursed for travel expenses as provided by RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 4. A new section is added to chapter 75.46 RCW to read as follows:

The board is responsible for making grants and loans for salmon recovery projects from the amounts appropriated to the board for this purpose. To accomplish this purpose the board may:

(1) Provide assistance to grant applicants regarding the procedures and criteria for grant and loan awards;

(2) Accept any gifts, grants, or loans of funds, property, or financial or other aid in any form from any other source on any terms that are not in conflict with this chapter;

(3) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and

(4) Do all acts and things necessary or convenient to carry out the powers expressly granted or implied under this chapter.

NEW SECTION. Sec. 5. A new section is added to chapter 75.46 RCW to read as follows:

(1) The board shall develop procedures and criteria for allocation of funds for salmon recovery projects and activities on a state-wide basis to address the highest priorities for salmon habitat protection and restoration. To the extent practicable the board shall adopt an annual allocation of funding. The allocation shall reflect the following general objectives:

(a) Allocating funding to both protection and restoration of habitat;

(b) Allocating most new funding for habitat protection and restoration to higher priority salmon recovery needs, using scientific principles and information addressing stock status, fish production potential, genetic diversity values, habitat condition including unlawful disposal of solid waste along streams, and near-term risk factors; and

(c) Encouraging the commitment of nonstate funds and other resources in projects or activities receiving a state grant or loan.

(2) The board shall seek the guidance and the assistance of the interagency review team created by RCW 75.46.080 in developing the allocation procedures and standards. The board may also seek the recommendations of the independent science panel created by RCW 75.46.050 to incorporate scientific principles and information. Prior to finalizing funding decisions under the provisions of this chapter, the board shall consult with interests representing irrigated and non-irrigated agriculture, sport and commercial fishing interests, large and small scale timber interests, conservation districts, and county and city governmental interests.

(3) The board may waive or modify portions of the allocation procedures and standards adopted under this section in the award of grants or loans to conform to legislative appropriations directing an alternative award procedure or when the funds to be awarded are from federal or other sources requiring other allocation procedures or standards as a condition of the board's receipt of the funds.

(4) In developing allocation criteria and in the review of project applications the board shall consider the recommendations which may be provided by the government council on natural resources, formed by the governor to promote cooperative intergovernmental relationships for salmon recovery.

(5) The board shall track all funds allocated for salmon recovery projects and activities, including both funds allocated by the board and funds allocated by other state or federal agencies for salmon recovery or water quality improvement. Beginning in December 2000, the board shall provide a biennial report to the legislature on salmon recovery expenditures. This report shall be coordinated with the state of the salmon report required under RCW 75.46.030.

Sec. 6. RCW 75.46.080 and 1998 c 246 s 9 are each amended to read as follows:

(1) Representatives from the conservation commission, the department of transportation, the department of ecology, and the department of fish and wildlife shall establish an interagency review team. ((~~Except as provided in subsection (6) of this section, habitat restoration project lists shall be submitted to the interagency review team by January 1st and July 1st of each year beginning in 1999.~~)) The purpose of the team is to assist the salmon recovery funding board in developing procedures and standards for state-wide funding allocation, and to assist the board in reviewing funding applications to identify the highest priority projects and activities for funding.

(2) ((If no lead entity has been formed under RCW 75.46.060, the interagency review team shall rank, prioritize, and dispense funds for habitat restoration projects by giving preference to the projects that:

~~(a) Provide a greater benefit to salmon recovery;~~

~~(b) Will be implemented in a more critical area;~~

~~(c) Are the most cost-effective;~~

~~(d) Have the greatest matched, or in-kind funding; and~~

~~(e) Will be implemented by a sponsor with a successful record of project implementation.~~

~~(3)~~)) If a lead entity established under RCW 75.46.060 has been formed, the interagency review team shall evaluate project lists ((~~and may remove, but not add, projects from a habitat project list~~)) submitted by the lead entity and advise the board on whether the list for the area complies with the list development procedures and critical path methodology provided by RCW 75.46.060 and 75.46.070. When the board determines the list to comply with those requirements it shall accord substantial weight to the list's project priorities when making determinations among applications for funding of projects and activities within the area covered by the list.

((~~(4)~~)) (3) The ((~~interagency review team~~)) board shall provide a summary of funding for ((~~habitat restoration project lists~~)) salmon recovery projects to the governor and to the legislature by December 1st of each year.

((~~(5)~~)) (4) The ((~~interagency review team~~)) board may annually establish a maximum amount of funding available for any individual project, subject to available funding. ((~~The interagency review team shall attempt to assure a geographical balance in assigning priorities to projects.~~

(6) For fiscal year 1998, the department of fish and wildlife, the conservation commission, and the department of transportation may authorize, subject to appropriations, expenditures for projects that have been developed to restore salmon habitat before completion of the project lists required in RCW 75.46.060(2).

~~(7)~~)) (5) Where a lead entity has been established pursuant to RCW 75.46.060, the ((~~interagency review team~~)) board may provide ((~~block~~)) grants to the lead entity to assist in carrying out lead entity functions under this chapter, subject to available funding.

NEW SECTION. Sec. 7. A new section is added to chapter 75.46 RCW to read as follows:

The salmon recovery account is created in the state treasury. To the account shall be deposited such funds as the legislature directs or appropriates to the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for salmon recovery financial assistance provided through the salmon recovery funding board created in section 3 of this act.

Sec. 8. RCW 76.12.110 and 1998 c 347 s 55 are each amended to read as follows:

There is created a forest development account in the state treasury. The state treasurer shall keep an account of all sums deposited therein and expended or withdrawn therefrom. Any sums placed in the account shall be pledged for the purpose of paying interest and principal on the bonds issued by the department, and for the purchase of land for growing timber. Any bonds issued shall constitute a first and prior claim and lien against the account for the payment of principal and interest. No sums for the above purposes shall be withdrawn or paid out of the account except upon approval of the department.

Appropriations may be made by the legislature from the forest development account to the department for the purpose of carrying on the activities of the department on state forest lands, lands managed on a sustained yield basis as provided for in RCW 79.68.040, and for reimbursement of expenditures that have been made or may be made from the resource management cost account in the management of state forest lands. ((For the 1997-99 fiscal biennium, moneys from the account shall be distributed as directed in the omnibus appropriations act to the beneficiaries of the revenues derived from state forest lands. Funds that accrue to the state from such a distribution shall be deposited into the salmon recovery account, hereby created in the state treasury. Funds appropriated from the salmon recovery account shall be used for efforts to restore endangered anadromous fish stocks.))

NEW SECTION. Sec. 9. 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 takes effect July 1, 1999.