S-2533.1  _______________________________________________

                         SENATE BILL 6093

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators Fraser and Swecker

Read first time 04/02/1999.  Referred to Committee on Environmental Quality & Water Resources.

Changing public water supply management provisions.

    AN ACT Relating to public water supply management; and amending RCW 70.116.010, 70.116.020, 70.116.030, 70.116.040, 70.116.050, 70.116.060, 70.116.070, 70.116.134, 90.03.255, 90.03.260, 90.03.320, and 90.03.383.

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

    Sec. 1.  RCW 70.116.010 and 1991 c 3 s 365 are each amended to read as follows:

    The legislature hereby finds that an adequate supply of potable water for domestic, commercial, and industrial use ((is)) and an adequate supply of water for fish habitat use are vital to the health and well-being of the people of the state.  Readily available water for use in public water systems is limited and should be developed and used efficiently with a minimum of loss or waste and in a manner that preserves water for fish habitat.

    In order to maximize efficient and effective development of the state's public water supply systems, the department of health, in coordination with the department of ecology and the department of fish and wildlife shall assist water purveyors by providing a procedure to coordinate the planning of ((the)) water supply for public water ((supply)) systems and fish habitat.

    Sec. 2.  RCW 70.116.020 and 1977 ex.s. c 142 s 2 are each amended to read as follows:

    The purposes of this chapter are:

    (1) To provide for the establishment of ((critical)) water supply service areas related to water utility planning and development and fish habitat planning, preservation, and restoration;

    (2) To provide for the development of ((minimum)) planning and design standards for ((critical)) water supply service areas to insure that water systems ((developed in these areas)) are consistent with regional needs for public water supply and fish habitat;

    (3) To assist in the orderly and efficient administration of state financial assistance programs for public water systems; and

    (4) To assist public water systems to meet reasonable standards of quality, quantity, and pressure, and contribution to fish habitat.

    Sec. 3.  RCW 70.116.030 and 1991 c 3 s 366 are each amended to read as follows:

    Unless the context clearly requires otherwise, the following terms when used in this chapter shall be defined as follows:

    (1) "Coordinated water system plan" means a plan for public water systems within a ((critical)) coordinated water supply service area which identifies the present and future needs of the systems and of the fish habitat that the systems impact and sets forth means for meeting those needs in the most efficient manner possible.  Such a plan shall include provisions for subsequently updating the plan.  In areas where more than one water system exists, a coordinated plan may consist of either:  (a) A new plan developed for the area following its designation as a ((critical)) coordinated water supply service area; or (b) a compilation of compatible water system plans existing at the time of such designation and containing such supplementary provisions as are necessary to satisfy the requirements of this chapter.  Any such coordinated plan must include provisions regarding:  ((Future)) Individual service area designations; assessment of the feasibility of shared source, transmission, and storage facilities; ((emergency inter-ties)) assessment of water supply needs for fish habitat; interties; design standards; and other concerns related to the construction and operation of the water system facilities.

    (2) "((Critical)) Coordinated water supply service area" means a geographical area which ((is characterized by a proliferation of)) includes more than one public water system, includes fish habitat, and may also include small, inadequate water systems, or ((by)) water supply problems which threaten the present or future water quality or reliability of service or supply of water for fish habitat in such a manner that efficient and orderly development may best be achieved through coordinated planning by the water utilities in the area.

    (3) "Public water system" means any system providing water intended for, or used for, human consumption or other domestic uses.  It includes, but is not limited to, the source, treatment for purifying purposes only, storage, transmission, pumping, and distribution facilities where water is furnished to any community, or number of individuals, or is made available to the public for human consumption or domestic use, but excluding water systems serving one single family residence.  However, systems existing on September 21, 1977 which are owner operated and serve less than ten single family residences or which serve only one industrial plant shall be excluded from this definition and the provisions of this chapter.

    (4) "Purveyor" means any agency or subdivision of the state or any municipal corporation, firm, company, mutual or cooperative association, institution, partnership, or person or any other entity, that owns or operates for wholesale or retail service a public water system.  It also means the authorized agents of any such entities.

    (5) (("Secretary" means the secretary of the department of health or the secretary's authorized representative.

    (6))) "Service area" means a specific geographical area ((serviced or for which service is planned)) served by a purveyor and initially established under a permit to appropriate water for municipal water supply or subsequently established under this chapter and consistent with a permit to appropriate water for municipal water supply.

    Sec. 4.  RCW 70.116.040 and 1977 ex.s. c 142 s 4 are each amended to read as follows:

    (1) The ((secretary)) department of health, in coordination with the department of ecology, the department of fish and wildlife, and the appropriate local planning agencies and purveyors, shall study geographical areas where water supply problems related to uncoordinated planning, inadequate water quality, insufficient water supply, fish habitat, or unreliable service appear to exist.  If the results of the study indicate that such water supply problems do exist, the ((secretary)) department of health or the county legislative authority shall ((designate the area involved as being a critical)) establish a coordinated water supply service area, consult with the department of ecology, the department of fish and wildlife, and appropriate local planning agencies and purveyors, and appoint a committee of not less than three representatives therefrom solely for the purpose of establishing the proposed external boundaries of the ((critical)) coordinated water supply service area.  The committee shall include a representative from each purveyor serving more than fifty customers, the county legislative authority, county planning agency, and health agencies.  Such proposed boundaries shall be established within six months of the appointment of the committee.

    During the six month period following the establishment of the proposed external boundaries of the ((critical)) coordinated water supply services areas, the county legislative authority shall conduct public hearings on the proposed boundaries and shall modify or ratify the proposed boundaries in accordance with the findings of the public hearings.  The boundaries shall reflect the existing land usage, and permitted densities in county plans, ordinances, and/or growth policies.  If the proposed boundaries are not modified during the six month period, the proposed boundaries shall be automatically ratified and be the ((critical)) coordinated water supply service area.

    After establishment of the external boundaries of the ((critical)) coordinated water supply service area, no new public water systems may be approved within the boundary area unless an existing water purveyor is unable  to provide water service.

    (2) At the time a ((critical)) coordinated water supply service area is established, the external boundaries for such area shall not include any fractional part of a purveyor's existing contiguous service area.

    (3) The external boundaries of the ((critical)) coordinated water supply service area may be amended in accordance with procedures prescribed in subsection (1) of this section for the establishment of the ((critical)) coordinated water supply service areas when such amendment is necessary to accomplish the purposes of this chapter.

    Sec. 5.  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)) coordinated water supply service area shall develop a water system plan for the purveyor's present and future service area if such a plan has not already been developed:  PROVIDED, That nonmunicipally owned public water systems are exempt from the planning requirements of this chapter, except for the establishment of service area boundaries and documentation of water supply 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)) coordinated 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)) coordinated 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)) coordinated water supply service area.

    (4) To insure that the plan incorporates the proper designs to protect public health and distributes water for public water supply and fish habitat, the ((secretary)) department of health 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 that the plan ((is not inconsistent with)) implements 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)) Are reviewed by the relevant governmental agency or entity to insure that the plan implements all water resource plans, water quality plans, ((and)) water pollution control plans, habitat conservation plans, and licensing requirements which have been adopted by entities and units of local, regional, and state government.

    (c) Incorporate the fire protection standards developed pursuant to RCW 70.116.080.

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

    (e) Identify feasible ((emergency inter-ties)) conjunctive uses and interties between adjacent purveyors.

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

    (g) 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))) (6) Prior to the submission of a coordinated water system plan to the ((secretary)) department of health for approval pursuant to RCW 70.116.060, the legislative authorities of the counties in which the ((critical)) coordinated water supply service area is located, together with the departments of ecology and fish and wildlife, 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 and the departments of ecology and fish and wildlife 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)) subsection (4) of this section, the ((secretary)) department of health 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)) department of health 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 individual service area boundaries, minimum design criteria, and review process.  The elements of the abbreviated plan shall conform to the criteria established by the department of health 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)) department of health 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)) department 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)) department of health.

    Sec. 6.  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)) department of health for ((design)) approval within two years of the establishment of the boundaries of a ((critical)) coordinated water supply service area.

    (2) The ((secretary)) department of health 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)) under it, shall approve the plan, provided that the ((secretary)) department of health 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) No other purveyor shall establish a public water system within the area covered by the plan, unless the local legislative authority determines that existing purveyors are unable to provide the service in a timely and reasonable manner, pursuant to guidelines developed by the ((secretary)) department of health.  An existing purveyor is unable to provide the service in a timely manner if 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.

    (4) The ((secretary)) department of health may deny proposals to establish or to expand any public water system within a ((critical)) coordinated 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)) coordinated water supply service area:  PROVIDED, That service connections shall not be considered expansions.

    (5) 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) After adoption of the initial coordinated water system plan, the local legislative authority or the ((secretary)) department of health may determine that the plan should be updated or revised.  The legislative authority may initiate an update at any time, but the ((secretary)) department of health may initiate an update no more frequently than once every five years.  The update may encompass all or a portion of the plan, with the scope of the update to be determined by the ((secretary)) department of health, in coordination with the department of ecology and the department of fish and wildlife, and the legislative authority.  The process for the update shall be the one prescribed in RCW 70.116.050.

    (7) 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) 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. 7.  RCW 70.116.070 and 1995 c 376 s 13 are each amended to read as follows:

    (1) The proposed service area boundaries of public water systems within the ((critical)) coordinated water supply service area that are required to submit water system plans under this chapter shall be identified in the system's plan.  The local legislative authority, or its planning department or other designee, shall review the proposed boundaries to determine whether the proposed boundaries of one or more systems overlap.  The boundaries determined by the local legislative authority not to overlap shall be incorporated into the coordinated water system plan.  Where any overlap exists, the local legislative authority may attempt to resolve the conflict through procedures established under RCW 70.116.060(5).

    (2) Any final decision by a local legislative authority regarding overlapping service areas, or any unresolved disputes regarding service area boundaries, may be appealed or referred to the ((secretary)) department of health in writing for resolution.  After receipt of an appeal or referral, the ((secretary)) department of health shall hold a public hearing thereon.  The ((secretary)) department of health shall provide notice of the hearing by certified mail to each purveyor involved in the dispute, to each county legislative authority having jurisdiction in the area and to the public.  The ((secretary)) department of health shall provide public notice pursuant to the provisions of chapter 65.16 RCW.  Such notice shall be given at least twenty days prior to the hearing.  The hearing may be continued from time to time and, at the termination thereof, the ((secretary)) department of health may restrict the expansion of service of any purveyor within the area if the ((secretary)) department of health finds such restriction is necessary to provide the greatest protection of the public health and well-being.

    Sec. 8.  RCW 70.116.134 and 1991 c 18 s 1 are each amended to read as follows:

    (1) The ((secretary)) department of health, in coordination with the department of ecology shall adopt rules pursuant to chapter 34.05 RCW establishing criteria for designating individuals or water purveyors as qualified satellite system management agencies.  The criteria shall set forth minimum standards for designation as a satellite system management agency qualified to assume ownership, operation, or both, of an existing or proposed public water system.  The criteria shall include demonstration of sufficient water supply and financial integrity and operational capability, and may require demonstration of previous experience in successful operation and management of a public water system.

    (2) Each county shall identify potential satellite system management agencies to the ((secretary)) department of health for areas where:  (a) No purveyor has been designated a future service area pursuant to this chapter, or (b) an existing purveyor is unable or unwilling to provide service.  Preference shall be given to public utilities or utility districts or to investor-owned utilities under the jurisdiction of the utilities and transportation commission.

    (3) The ((secretary)) department of health shall approve satellite system management agencies meeting the established criteria and shall maintain and make available to counties a list of approved agencies.  Prior to the construction of a new public water system, the individual(s) proposing the new system or requesting service shall first be directed by the local agency responsible for issuing the construction or building permit to one or more qualified satellite system management agencies designated for the service area where the new system is proposed for the purpose of exploring the possibility of a satellite agency either owning or operating the proposed new water system.

    (4) Approved satellite system management agencies shall be reviewed periodically by the ((secretary)) department of health for continued compliance with established criteria.  The ((secretary)) department of health may require status reports and other information necessary for such review.  Satellite system management agencies shall be subject to reapproval at the discretion of the ((secretary)) department of health but not less than once every five years.

    (5) The ((secretary)) department of health may assess reasonable fees to process applications for initial approval and for periodic review of satellite system management agencies.  A satellite system management account is hereby created in the custody of the state treasurer.  All receipts from satellite system management agencies or applicants under subsection (4) of this section shall be deposited into the account.  Funds in this account may be used only for administration of the satellite system management program.  Expenditures from the account shall be authorized by the ((secretary or the secretary's designee)) department of health.  The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

    (6) For purposes of this section, "satellite system management agency" and "satellite agency" shall mean a person or entity that is certified by the ((secretary)) department of health to own or operate more than one public water system on a regional or county-wide basis, without the necessity for a physical connection between such systems.

    Sec. 9.  RCW 90.03.255 and 1997 c 360 s 2 are each amended to read as follows:

    The department shall, when evaluating an application for a water right, transfer, or change filed pursuant to RCW 90.03.250 or 90.03.380 that includes provision for any water impoundment or other resource management technique, take into consideration the benefits and costs, including environmental effects, of any water impoundment or other resource management technique, including a coordinated water system plan adopted under chapter 70.116 RCW, that is included as a component of the application.  The department's consideration shall extend to any increased water supply that results from the impoundment or other resource management technique, including but not limited to any recharge of ground water that may occur, as a means of making water available or otherwise offsetting the impact of the diversion of surface water proposed in the application for the water right, transfer, or change.  Provision for an impoundment or other resource management technique in an application shall be made solely at the discretion of the applicant and shall not otherwise be made by the department as a condition for approving an application that does not include such provision.

    This section does not lessen, enlarge, or modify the rights of any riparian owner, or any existing water right acquired by appropriation or otherwise.

    Sec. 10.  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)) and service area, and the service area assigned in an approved coordinated water system plan under chapter 70.116 RCW.  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, and such accompanying data shall be considered as a part of the application.

    Sec. 11.  RCW 90.03.320 and 1997 c 445 s 3 are each amended to read as follows:

(1) 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, and shall thereafter be prosecuted with diligence and completed within the time prescribed by the department.  The department, 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.

(2) In fixing construction schedules and the time, or extension of time, for application of water to beneficial use for municipal water supply purposes, the department shall also take into consideration the term and amount of financing required to complete the project, delays that may result from planned and existing conservation and water use efficiency measures implemented by the public water system, and the supply needs of the public water system's initial service area and the service area assigned in an approved coordinated water system plan under chapter 70.116 RCW, consistent with an approved comprehensive plan under chapter 36.70A RCW, or in the absence of such a plan, a county-approved comprehensive plan under chapter 36.70 RCW or a plan approved under chapter 35.63 RCW, and related water demand projections prepared by public water systems in accordance with state law.  An existing comprehensive plan under chapter 36.70A or 36.70 RCW, plan under chapter 35.63 RCW, or demand projection may be used.

(3) If the terms of the permit or extension thereof, are not complied with the department 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 is not shown, the permit shall be canceled.

    Sec. 12.  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 and adequate supplies of water for fish habitat.  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)) 2000, and to have associated water rights modified by the department of ecology 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)) allow interties commencing use after January 1, ((1991)) 2000, if they implement an approved coordinated water system plan under chapter 70.116 RCW.

    (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 and resource management needs.  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)) for the place of use or service area given in the application to appropriate water or the service area assigned in an approved coordinated water system plan under chapter 70.116 RCW.

    (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)) 2000, 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.  The notice may be incorporated into the public water system's next 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)) 2000, the department of ecology, 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 prior to September 1, ((1991)) 2000, and conditions to assure preservation of fish habitat are included.  Where ((such)) complaints of impairment have been received, the department of ecology 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)) 2000, shall be permitted when the intertie implements an approved coordinated water system plan under chapter 70.116 RCW and 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)) otherwise be ((inconsistent)) consistent 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)) 2000, shall ((be incorporated into water system plans pursuant to chapter 43.20 RCW or)) implement coordinated water system plans pursuant to chapter 70.116 RCW and shall be submitted to the department of health and the department of ecology 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, in coordination with the department of ecology shall be responsible for review and approval of proposals for new interties.  In ((its review)) coordination with the department of ecology, the department of health shall hold public hearings and consider public comments and 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, and shall determine whether the intertie is necessary to address emergent public health or safety concerns associated with public water supply and implement an approved coordinated water system plan under chapter 70.116 RCW.

    (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 and implement an approved coordinated water system plan under chapter 70.116 RCW, the public water system shall amend its water system plan as required and shall file an application with the department of ecology 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 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 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 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 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 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 an application for change to the underlying water right or claim as necessary to reflect the new place of use.  The department of ecology 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 determines that additional information is required to act on the application, the department 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 on the application for change in place of use may appeal the decision to the pollution control hearings board.

    (9) The department of health may not approve plans containing intertie proposals prior to the department of ecology'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 issues the appropriate water right document to the applicant consistent with the approved plan.))

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