Provides that the owner of a rain barrel, cistern, or other similar water storage facility that has a storage capacity greater than three thousand gallons for capture and use of runoff from roofs, paved areas, and other artificial surfaces is exempt from the permit requirements of RCW 90.03.250 and 90.03.370, provided the water is intended to be put to beneficial use on the same property where the runoff is collected and the capture, storage, and use is done in compliance with rules or general permits developed by the department under this act for such purpose.

Requires the department to either initiate rule making or issuing general permits, or both, as provided in this act by August 1, 2007. The department shall report to the appropriate committees of the legislature by December 31, 2008, regarding the implementation of this act. The authority provided under this act to issue general permits that do not create a water right is not intended to modify or in any way affect existing authority to issue general permits that do create a water right.