BILL REQ. #:  S-0589.1 

Read first time 01/15/2003.   Referred to Committee on Natural Resources, Energy & Water.

     AN ACT Relating to directing the department of ecology to conduct pilot rule making to establish and assign trust authorization credits; amending RCW 90.42.005 and 90.42.020; adding a new section to chapter 90.42 RCW; and declaring an emergency.

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

Sec. 1   RCW 90.42.005 and 1991 c 347 s 1 are each amended to read as follows:
     (1) It is the policy of the state of Washington to recognize and preserve water rights in accordance with RCW 90.03.010.
     (2) The legislature finds that:
     (a) The state of Washington is faced with a shortage of water with which to meet existing and future needs, particularly during the summer and fall months and in dry years when the demand is greatest;
     (b) Consistent with RCW 90.54.180, reallocation, conservation, and water use efficiency programs, including storage, should be the preferred methods of addressing water ((uses)) demands because they can relieve current critical water situations, provide for presently unmet needs, and assist in meeting future water needs. Presently unmet needs or current needs includes the water required to increase the frequency of occurrence of base or minimum flow levels in streams of the state, the water necessary to satisfy existing water rights, or the water necessary to provide full supplies to existing water systems with current supply deficiencies; ((and))
     (c) The interests of the state will be served by developing programs and regional water resource plans, in cooperation with local governments, federally recognized tribal governments, appropriate federal agencies, private citizens, and the various water users and water interests in the state, that increase the overall ability to manage the state's waters in order to resolve conflicts and to better satisfy both present and future needs for water; and
     (d) The trust water program can be used to achieve a variety of water resource management objectives throughout the state, including responding to drought, improving streamflows on a voluntary basis, providing water mitigation, or reserving water supply for future uses. The legislature also finds that the trust program can be used to facilitate the reallocation of water from one beneficial use to another. The legislature intends to authorize the department to conduct pilot rule making to test the proposition that water banking can facilitate the reallocation of water and reduce water transfer transaction costs.

Sec. 2   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" means the department of ecology.
     (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.
     (6) "Trust authorization credit" means a credit representing the authorization to use water from the trust water program.
     (7) "WRIA" means a water resource inventory area as defined in RCW 90.82.020.

NEW SECTION.  Sec. 3   A new section is added to chapter 90.42 RCW to read as follows:
     (1) The department shall conduct a pilot rule-making process under RCW 34.05.313 authorizing:
     (a) The transfer of water rights to the trust water program for purposes of establishing trust authorization credits; and
     (b) The assignment of trust authorization credits from the trust water program.
     (2) The department's pilot rule making may occur in up to five WRIAs. In selecting WRIAs for the pilot rule making, the department shall consider the following factors:
     (a) The likelihood that the assignment of trust authorization credits could provide temporary or permanent water supply to address drought or future water supply demands; and
     (b) The existence of plans, programs, or technical resources within the WRIA to assist with implementation and review of the pilot rule making.
     (3) The department's pilot rule under this section shall require that the establishment and assignment of trust authorization credits comply with all applicable requirements of the trust water program. The assignment of trust authorization credits from the trust water program shall comply with conditions placed on the transfer of the water rights to the trust program, unless the party who transferred the water rights to the trust program indicates on a trust assignment application that such conditions may be modified or eliminated to enable a proposed assignment of trust authorization credits.
     (4) The department's pilot rule shall include at least the following provisions:
     (a) Procedures for establishing and quantifying consumptive and nonconsumptive trust authorization credits through the submission of trust authorization credit applications;
     (b) Procedures for utilization of trust authorization credits;
     (c) Procedures for assignment of trust authorization credits;
     (d) Procedures for ensuring that assignments of trust authorization credits comply with the impairment provisions of this chapter;
     (e) Geographical constraints on trust authorization credits by basin, subbasin, or water source; and
     (f) Procedures for appeals of trust authorization credits' assignments.
     (5) Within one hundred eighty days of adopting any pilot rule under this section, the department shall request comments from municipalities, Indian tribes, conservation groups, developers, agricultural organizations, and the appropriate regional office within the WRIA to obtain input on the pilot rule and recommendations for the legislature to consider regarding the trust water right assignment pilot program. The department shall forward these comments to the chair and ranking minority member of the appropriate standing committees of the Legislature within sixty days of receipt.
     (6) Conservancy boards established under chapter 90.80 RCW are not authorized to process applications to establish trust authorization credits.

NEW SECTION.  Sec. 4   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 immediately.