BILL REQ. #:  S-5136.2 

READ FIRST TIME 02/7/06.   

     AN ACT Relating to water resource management in the Columbia river basin; reenacting and amending RCW 43.84.092; amending 2005 c 488 s 332 (uncodified); adding a new chapter to Title 90 RCW; creating new sections; making an appropriation; providing an effective date; and providing an expiration date.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that a key priority of water resource management in the Columbia river basin is the development of new water supplies to meet the economic and community development needs of people and the instream flow needs of fish.
     (2) The legislature therefore declares that a Columbia river basin water supply development program is needed, and directs the department of ecology to aggressively pursue the development of water supplies to benefit both instream and out-of-stream uses.
     (3) As used in this chapter, "Columbia river mainstem" means all surface water between the border of the United States and Canada and the Bonneville dam, and surface and all ground waters within one mile of the ordinary high-water line of the Columbia river surface waters.

NEW SECTION.  Sec. 2   (1) Water supplies secured through the development of new storage facilities made possible with funding from the Columbia river basin water supply account shall be allocated as follows:
     (a) Two-thirds of active storage shall be available for appropriation for out-of-stream uses; and
     (b) One-third of active storage shall be available to enhance instream flows and shall be managed by the department of ecology. The timing of releases of this water shall be determined by the department of ecology, in cooperation with the department of fish and wildlife, to maximize benefits to salmon and steelhead populations.
     (2) The department of ecology shall focus its efforts to develop water supplies for the Columbia river basin on the following needs:
     (a) Alternatives to ground water for agricultural users in the Odessa subarea aquifer;
     (b) Sources of water supply for pending water right applications;
     (c) A new uninterruptible supply of water for the holders of interruptible water rights on the Columbia river mainstem that are subject to instream flows or other mitigation conditions to protect stream flows; and
     (d) New municipal, domestic, industrial, and irrigation water needs within the Columbia river basin.
     (3) For appropriations of water under the allocations provided for in subsection (1)(a) and (b) of this section, no consultation with state agencies or tribes shall be required.

NEW SECTION.  Sec. 3   (1) The Columbia river basin water supply account is created in the state treasury. The account may receive direct appropriations from the legislature and receipts of payments that are based on an appropriate and economically viable share of construction, operation, and maintenance costs of water supply projects.
     (2) Expenditures from the Columbia river basin water supply account may be used to assess, plan, and develop new storage, improve or alter operations of existing storage facilities, implement conservation projects, or other actions, designed to provide access to new water supplies within the Columbia river basin for both instream and out-of-stream uses.
     (3) The department of ecology shall manage any appropriations made from the account for the purposes of developing water supplies in a manner that yields the greatest benefits to the state while minimizing associated costs.
     (4) The account is subject to legislative appropriation.
     (5) Interest earned by deposits in the account will be retained in the account.

NEW SECTION.  Sec. 4   (1) The department of ecology may enter into voluntary regional agreements under which applications for new water rights from the Columbia river mainstem may be approved.
     (a) Voluntary regional agreements shall ensure that:
     (i) Water is provided for out-of-stream uses; and
     (ii) There is no negative impact on Columbia river mainstem instream flows in the months of July and August.
     (b) Applicants under a voluntary regional agreement must demonstrate efficient water use practices.
     (c) Efforts shall be made to harmonize such regional efforts with watershed planning efforts conducted under the authority of this chapter or chapter 90.82 RCW.
     (2) The mitigation standards established in this section are intended to streamline issuance of new water rights from the Columbia river.
     (3) Before executing a voluntary agreement under this section, the department of ecology must:
     (a) Provide a thirty-day period for consultation with the department of fish and wildlife, affected tribal governments, and affected watershed planning groups. The department of fish and wildlife shall provide written comments within that time period; and
     (b) Provide a thirty-day public review and comment period for a draft agreement, and publish a summary of any public comments received. The thirty-day review period shall not begin until after the department of ecology has concluded its consultation under (a) of this subsection.
     (4) The provisions of this section and the related agreements shall not have a precedential effect inside or outside of the Columbia river mainstem. Nothing in this chapter may be interpreted or administered in a manner that precludes the use of existing authority to process water right applications under chapter 90.03 or 90.44 RCW, or in a manner that impairs or diminishes a valid water right or a habitat conservation plan.
     (5) The department of ecology shall monitor and evaluate the water allocated to instream and out-of-stream uses under this section and provide a report to the appropriate committees of the legislature by June 30, 2010.
     (6) Agreements entered into under this section shall remain in force and effect beyond the expiration of this section.
     (7) This section expires June 30, 2011.

NEW SECTION.  Sec. 5   (1) To support the development of new water supplies in the Columbia river, the department of ecology shall work with all interested parties, including, but not limited to, interested watershed planning groups working adjacent to the Columbia river and tribal governments, to develop a Columbia river water supply inventory. The inventory must include:
     (a) A list of potential supply and storage projects in the Columbia river basin;
     (b) Conservation projects that have been implemented under this chapter and the amount of water conservation they have achieved; and
     (c) Estimates of projects based upon, but not limited to:
     (i) Cost per acre-foot;
     (ii) Benefit to fish and other instream needs; and
     (iii) Benefit to out-of-stream needs.
     (2) The department of ecology shall complete the first Columbia river water supply inventory by November 15, 2006, and shall update the inventory annually thereafter.
     (3) The department of ecology shall complete the first Columbia river water demand report by November 15, 2006, and shall update the report every five years thereafter.

NEW SECTION.  Sec. 6   (1) In order to better understand current water use in the Columbia river mainstem, the department of ecology shall establish and maintain a Columbia river mainstem water resources information system that provides the information necessary for effective mainstem water resource planning and management, including:
     (a) The total aggregate quantity of water issued under state permits and certificates and filed under state claims on the Columbia river mainstem and for ground water within one mile of the mainstem;
     (b) The total aggregate volume of current water use under these rights as metered and reported by water users; and
     (c) Other relevant water use data.
     (2) To accomplish the objective in subsection (1) of this section, the department of ecology shall use information compiled by existing local watershed planning groups, the federal bureau of reclamation, the Bonneville power administration, irrigation districts, conservation districts in the basin, and other available sources.
     (3) The data program shall include a system for collecting and providing access to water resource data. The department of ecology shall develop a system of cataloging, storing, and retrieving the information so it may be made readily available to and effectively used by the department and by the public.
     (4) The department of ecology shall collect this data and publish it on the department's web site no later than November 1, 2006.

NEW SECTION.  Sec. 7   (1) By July 1, 2006, the department shall convene discussion groups, including all appropriate stakeholders, to consider and make recommendations on the following issues:
     (a) The public interest in regional equity regarding the sources of water supplies and mechanisms, to determine whether interregional water transfers jeopardize the economic health of any region or tributary basin. The review must also consider mechanisms that might provide for water supplies in other regions while retaining the water right in the region of the water source;
     (b) Whether a water bank for the Columbia river mainstem would simplify and improve the approval of water acquisitions, leases, loans, and exchanges; reduce the time and costs associated with such transactions; and increase the availability of water supplies and water-related information.
     (2) Reports from the reviews under this section are due to the appropriate committees of the legislature by December 31, 2006.

Sec. 8   2005 c 488 s 332 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF ECOLOGY
     Columbia River Initiative (06-2-010)

     The appropriation in this section is subject to the following conditions and limitations:
     (1) $6,000,000 is provided solely for feasibility studies related to off-mainstem storage projects and impacts of changing operations at the Potholes reservoir, and grant funding for the purchase and installation of water measuring devices.
     (2) Of the amount appropriated in this section, $10,000,000 ((may not be expended prior to enactment of state legislation that establishes the policy requirements for a new water resources and water rights management program for the Columbia river mainstem. If such legislation is not enacted prior to June 30, 2006, this amount shall lapse)) is provided to begin implementation of the Columbia river basin water supply development program in sections 2 through 6 of this act. Within this amount, the department shall support, to the extent that projects are ready to proceed and to the extent that resources allow, the following water supply projects, including, but not limited to: Storage development or storage enhancement projects, projects that provide surface water supply for the Odessa subarea within the boundaries of the Columbia river basin project, projects that enhance water supplies for the Walla Walla and Yakima rivers through exchanges and other methods, and investments resulting in water use efficiency. The department shall report progress under this section to the appropriate committees of the legislature by December 1, 2006.

Appropriation:
     State Building Construction Account--State . . . . . . . . . . . . $16,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $52,610,000
          TOTAL . . . . . . . . . . . . $68,610,000

Sec. 9   RCW 43.84.092 and 2005 c 514 s 1106, 2005 c 353 s 4, 2005 c 339 s 23, 2005 c 314 s 110, 2005 c 312 s 8, and 2005 c 94 s 2 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the Columbia river basin water supply account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the education legacy trust account, the election account, the emergency reserve fund, The Evergreen State College capital projects account, the federal forest revolving account, the freight mobility investment account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the high-occupancy toll lanes operations account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the real estate appraiser commission account, the regional transportation investment district account, the resource management cost account, the rural Washington loan fund, the site closure account, the small city pavement and sidewalk account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the transportation partnership account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 10   Sections 1 through 6 of this act constitute a new chapter in Title 90 RCW.

NEW SECTION.  Sec. 11   This act takes effect July 1, 2006.

NEW SECTION.  Sec. 12   If the O'Sullivan reservoir, also known as Potholes reservoir storage rehabilitation project, is not fully funded in order to improve capacity and operations of existing facilities by June 30, 2006, in the omnibus appropriations act, this act is null and void.