BILL REQ. #:  S-3863.3 

Read first time 01/21/2004.   Referred to Committee on Natural Resources, Energy & Water.

     AN ACT Relating to water rights for agricultural uses; amending RCW 90.03.380 and 90.44.050; adding new sections to chapter 90.44 RCW; and declaring an emergency.

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

Sec. 1   RCW 90.03.380 and 2003 c 329 s 2 are each amended to read as follows:
     (1) 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 the 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. A change in the place of use, point of diversion, and/or purpose of use of a water right to enable irrigation of additional acreage or the addition of new uses may be permitted if such change results in no increase in the annual consumptive quantity of water used under the water right. For purposes of this section, "annual consumptive quantity" means the estimated or actual annual amount of water diverted pursuant to the water right, reduced by the estimated annual amount of return flows, averaged over the two years of greatest use within the most recent five-year period of continuous beneficial use of the water right. 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, and the application shall not be granted until notice of the application is 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 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 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.
     (2) If an application for change proposes to transfer water rights from one irrigation district to another, the department 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.
     (3) 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, and when water is provided by an irrigation entity that is a member of a board of joint control created under chapter 87.80 RCW, approval need only be received from the board of joint control if the use of water continues within the area of jurisdiction of the joint board and the change can be made without detriment or injury to existing rights.
     (4) 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.
     (5)(a) Pending applications for new water rights are not entitled to protection from impairment, injury, or detriment when an application relating to an existing surface or ground water right is considered.
     (b) Applications relating to existing surface or ground water rights may be processed and decisions on them rendered independently of processing and rendering decisions on pending applications for new water rights within the same source of supply without regard to the date of filing of the pending applications for new water rights.
     (c) Notwithstanding any other existing authority to process applications, including but not limited to the authority to process applications under WAC 173-152-050 as it existed on January 1, 2001, an application relating to an existing surface or ground water right may be processed ahead of a previously filed application relating to an existing right when sufficient information for a decision on the previously filed application is not available and the applicant for the previously filed application is sent written notice that explains what information is not available and informs the applicant that processing of the next application will begin. The previously filed application does not lose its priority date and if the information is provided by the applicant within sixty days, the previously filed application shall be processed at that time. This subsection (5)(c) does not affect any other existing authority to process applications.
     (d) Nothing in this subsection (5) is intended to stop the processing of applications for new water rights.
     (6) No applicant for a change, transfer, or amendment of a water right may be required to give up any part of the applicant's valid water right or claim to a state agency, the trust water rights program, or to other persons as a condition of processing the application.
     (7) In revising the provisions of this section and adding provisions to this section by chapter 237, Laws of 2001, the legislature does not intend to imply legislative approval or disapproval of any existing administrative policy regarding, or any existing administrative or judicial interpretation of, the provisions of this section not expressly added or revised.
     (8) The development and use of a small irrigation impoundment, as defined in RCW 90.03.370(8), does not constitute a change or amendment for the purposes of this section. The exemption expressly provided by this subsection shall not be construed as requiring a change or transfer of any existing water right to enable the holder of the right to store water governed by the right.
     (9) Notwithstanding any other provision of this section or RCW 90.44.100, a water right to use surface or ground water that has been applied to any beneficial use within the general category of an agricultural use may be changed to another agricultural use, within the other limitations of the water right, under the following conditions:
     (a) A change in the type of crop irrigated or from one agricultural use to another agricultural use that does not involve a change in the season of use of the water may be made without applying to the department or any other governmental entity for approval;
     (b) A change from one agricultural use to another agricultural use that involves a change in the season of use of water may be made after providing the department with notice and an opportunity for review as follows:
     (i) For changes under this subsection (9)(b), the water right holder shall give written notice to the department describing the proposed change and providing evidence of beneficial use of the right. The water right holder may proceed with the change unless the department notifies the water right holder within twenty calendar days that the proposed change raises concerns regarding potential impairment to other existing water rights. The director may extend the twenty-day period by an additional fifteen calendar days if notice is provided to the water right holder within the twenty-day period and the water right holder consents; and
     (ii) The department shall operate under a rebuttable presumption of no impairment of other water rights if the season of use is proposed to be changed from a period that is more critical for other water rights and stream flows to a period that is less critical. If the department determines that the proposed change raises concerns regarding impairment to other water rights, the proposed change may not proceed under this subsection (9);
     (c) The department's determination under (b) of this subsection is not appealable. For a change that is not allowed under (b) of this subsection, the water right holder may subsequently apply for a change in right under subsection (1) or (2) of this section or RCW 90.03.390 or 90.44.100, in which case the department shall make a full and normal determination and render an appealable decision under those statutes. In making such a decision, the department is not bound by its earlier determination and the earlier determination may not result in a presumption of impairment of any water right; and
     (d) The general category of an agricultural use of water under this subsection (9) is composed of, but not limited to: The beneficial uses of water for agricultural irrigation; frost protection; watering livestock; processing agricultural commodities; dust suppression; cleaning of agricultural animals, equipment, and facilities; and confined animal feeding operations with applicable land use and water quality permits.

Sec. 2   RCW 90.44.050 and 2003 c 307 s 1 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 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 as a daily average over the period of a year, or as provided in RCW 90.44.052, or for an industrial purpose in an amount not exceeding five thousand gallons a day as a daily average over the period of a year, 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 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 as a daily average over the period of a year, 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.

NEW SECTION.  Sec. 3   A new section is added to chapter 90.44 RCW to read as follows:
     Any withdrawal of water for stock watering purposes begun before the effective date of this section that is not otherwise embodied in a water right permit, certificate, or claim shall be deemed a water right in good standing and shall receive an agricultural water permit under this chapter if:
     (1) The use of water exceeding five thousand gallons per day as a daily average over the period of a year is filed by the water user with the department by July 1, 2006, and the filing is accompanied by proof of beneficial water use based on meter records, livestock numbers, or other appropriate means of demonstrating water use at the time of filing;
     (2) The water used under a filing made under subsection (1) of this section does not exceed the quantity or rate listed in a permit granted under the provisions of this section; and
     (3) The water use remains as an agricultural use. For the purposes of this section, "agricultural use" includes, but is not limited to: The beneficial uses of water for agricultural irrigation; frost protection; watering livestock; processing agricultural commodities; dust suppression; cleaning of agricultural animals, equipment, and facilities; and confined animal feeding operations with applicable land use and water quality permits.

NEW SECTION.  Sec. 4   A new section is added to chapter 90.44 RCW to read as follows:
     The stock water account is created in the custody of the state treasurer. All receipts from legislative appropriations to the account, lease fees under section 6 of this act, or federal or local funds provided to the account must be deposited into the account. Expenditures from the account may only be used to acquire, lease, or otherwise obtain water for stock watering purposes in accordance with sections 5 and 6 of this act. Only the director of ecology or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 5   A new section is added to chapter 90.44 RCW to read as follows:
     (1)(a) The department may acquire, lease, or otherwise obtain water for stock watering purposes in watersheds when: (i) Local economics and the cost of water do not allow agricultural interests to compete with other interests for the purchase or lease of water rights; or (ii) the further diversion or withdrawal of water for stock watering purposes cannot be accomplished without significant instream flow impacts.
     (b) Acquisitions made under (a)(ii) of this subsection must be made such that the acquisition will provide for stock watering purposes and help meet instream flow needs.
     (2) Acquisitions may only be made under the provisions of this section with funds from the stock water account created in section 4 of this act.
     (3) A water right acquired by the department under this section must be held in the state trust water rights program under chapter 90.42 RCW until the water right is leased for stock watering purposes.

NEW SECTION.  Sec. 6   A new section is added to chapter 90.44 RCW to read as follows:
     The department may lease or sell water rights acquired under section 5 of this act to users who may put the water to beneficial use for stock watering purposes on a first-come, first-served basis.
     Revenue derived from the lease of waters under this section must be placed in the stock water account created in section 4 of this act.
     The department shall seek federal and local funds to augment state funding for the account.

NEW SECTION.  Sec. 7   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.