"NEW SECTION.  Sec. 1   The legislature finds that:
     (1) Washington has made significant investments in watershed-based activities, including the establishment of water resource inventory area (WRIA) planning units and lead agencies, lead entities, and regional salmon recovery organizations across the state. Washington watersheds have developed subbasin plans under the Northwest power and conservation council and national oceanic and atmospheric administration-approved regional salmon recovery plans that include locally prioritized salmon recovery projects;
     (2) The governor's salmon recovery office was established to support the development and implementation of regional salmon recovery plans, to assist local governments in obtaining federal assurances, and to issue a biennial state of the salmon report;
     (3) The salmon recovery funding board provides grants for salmon recovery and the forum on monitoring salmon recovery and watershed health works to provide greater coordination on monitoring. Administrative support for the board and the forum are provided by the recreation and conservation office;
     (4) Lead entity funding to support infrastructure and capacity needs is provided through the recreation and conservation office, which contracts with the department of fish and wildlife to implement the program. Funding for WRIA planning units and lead agencies to develop and implement watershed-based plans under RCW 90.82.040 is provided by the department of ecology; and
     (5) Currently, state watershed and salmon recovery-based programs are split among several state agencies or offices. Efficient implementation of these efforts will be enhanced by promoting consolidation and integration of their activities and programs. In addition, consolidation of reporting benefits the public and decision makers regarding watershed health, which includes salmon recovery. It is also the intent of the legislature, in cooperation with local and regional officials, and respecting the ability of local citizens and officials to organize in ways best suited to address local needs, to encourage the development of incentives that consolidate existing processes and promote more effective implementation of salmon recovery plans and watershed planning and implementation.

Sec. 2   RCW 77.85.030 and 2007 c 444 s 3 are each amended to read as follows:
     (1) The governor's salmon recovery office ((is created within the office of the governor to)) shall coordinate state strategy to allow for salmon recovery to healthy sustainable population levels with productive commercial and recreational fisheries. ((The)) A primary purpose of the office is to coordinate and assist in the development, implementation, and revision of regional salmon recovery plans as an integral part of a statewide strategy developed consistent with the guiding principles and procedures under RCW 77.85.150.
     (2) The governor's salmon recovery office is also responsible for maintaining the statewide salmon recovery strategy to reflect applicable provisions of regional recovery plans, habitat protection and restoration plans, water quality plans, and other private, local, regional, state agency and federal plans, projects, and activities that contribute to salmon recovery.
     (3) ((The governor's salmon recovery office shall also gather regional recovery plans from regional recovery organizations and submit the plans to the federal fish services for adoption as federal recovery plans.)) The governor's salmon recovery office shall also work with regional salmon recovery organizations on salmon recovery issues in order to ensure a coordinated and consistent statewide approach to salmon recovery((. The governor's salmon recovery office)) and shall work with federal agencies to accomplish implementation of federal commitments in the recovery plans.
     (4) The governor's salmon recovery office may also:
     (a) Assist state agencies, local governments, landowners, and other interested parties in obtaining federal assurances that plans, programs, or activities are consistent with fish recovery under the federal endangered species act;
     (b) Act as liaison to local governments, the state congressional delegation, the United States congress, federally recognized tribes, and the federal executive branch agencies for issues related to the state's salmon recovery plans;
     (c) Provide periodic reports pursuant to RCW 77.85.020;
     (d) Provide, as appropriate, technical and administrative support to ((the independent)) science panels ((or other science-related panels)) on issues pertaining to salmon recovery;
     (e) In cooperation with the regional recovery organizations, prepare a timeline and implementation plan that, together with a schedule and recommended budget, identifies specific actions in regional recovery plans for state agency actions and assistance necessary to implement local and regional recovery plans; and
     (f) As necessary, provide recommendations to the legislature that would further the success of salmon recovery, including recommendations for state agency actions in the succeeding biennium and state financial and technical assistance for projects and activities to be undertaken in local and regional salmon recovery plans. The recommendations may include:
     (i) The need to expand or improve nonregulatory programs and activities; and
     (ii) The need for state funding assistance to recovery activities and projects.
     (5) ((This section expires June 30, 2015.)) For administrative purposes, the governor's salmon recovery office is located within the recreation and conservation office.

Sec. 3   RCW 77.85.050 and 2005 c 309 s 6 are each amended to read as follows:
     (1)(a) Counties, cities, and tribal governments must jointly designate, by resolution or by letters of support, the area for which a habitat project list is to be developed and the lead entity that is to be responsible for submitting the habitat project list. No project included on a habitat project list shall be considered mandatory in nature and no private landowner may be forced or coerced into participation in any respect. The lead entity may be a county, city, conservation district, special district, tribal government, regional recovery organization, or other entity.
     (b) The lead entity shall establish a committee that consists of representative interests of counties, cities, conservation districts, tribes, environmental groups, business interests, landowners, citizens, volunteer groups, regional fish enhancement groups, and other habitat interests. The purpose of the committee is to provide a citizen-based evaluation of the projects proposed to promote salmon habitat.
     (c) The committee shall compile a list of habitat projects, establish priorities for individual projects, define the sequence for project implementation, and submit these activities as the habitat project list. The committee shall also identify potential federal, state, local, and private funding sources.
     (2) The area covered by the habitat project list must be based, at a minimum, on a WRIA, combination of WRIAs, or any other area as agreed to by the counties, cities, and tribes in resolutions or in letters of support meeting the requirements of this subsection. Preference will be given to projects in an area that contain a salmon species that is listed or proposed for listing under the federal endangered species act.
     (3) The lead entity shall submit the habitat project list to the (([salmon recovery funding])) salmon recovery funding board in accordance with procedures adopted by the board.
     (4) The recreation and conservation office shall administer funding to support the functions of lead entities.

Sec. 4   RCW 77.85.020 and 2007 c 444 s 2 are each amended to read as follows:
     (1) ((No later than January 31, 2009, and every odd-numbered year until and including 2015, the governor's salmon recovery office shall submit a biennial state of the salmon report to the legislature and the governor regarding the implementation of the state's salmon recovery strategy. The report must include the following:
     (a) A summary of habitat projects including but not limited to:
     (i) A summary of accomplishments in removing barriers to salmon passage and an identification of existing barriers;
     (ii) A summary of salmon restoration efforts undertaken in the past two years;
     (iii) A summary of the role which private volunteer initiatives contribute in salmon habitat restoration efforts; and
     (iv) A summary of efforts taken to protect salmon habitat;
     (b) A summary of harvest and hatchery management activities affecting salmon recovery;
     (c) A summary of the number and types of violations of existing laws pertaining to salmon. The summary may include information about the types of sanctions imposed for these violations.
     (2) The report may include the following:
     (a) A description of the amount of in-kind financial contributions, including volunteer, private, state, federal, tribal, as available, and local government funds directly spent on salmon recovery in response to endangered species act listings; and
     (b) Information on the estimated carrying capacity of new habitat created pursuant to chapter 246, Laws of 1998.
     (3) The report shall summarize the monitoring data coordinated by the forum on monitoring salmon recovery and watershed health. The summary may include but is not limited to data and analysis related to:
     (a) Measures of progress in fish recovery;
     (b) Measures of factors limiting recovery as well as trends in such factors; and
     (c) The status of implementation of projects and activities.
     (4))) Beginning December 2010, the recreation and conservation office shall produce a biennial report on the statewide status of salmon recovery and watershed health, summarize projects and programs funded by the salmon recovery funding board, and summarize progress as measured by high-level indicators and state agency compliance with applicable protocols established by the forum for monitoring salmon recovery and watershed health. The report must be a consolidation of the current reporting activities, including the salmon recovery funding board and the forum on monitoring salmon recovery and watershed health, on the status of salmon recovery and watershed health in Washington state, in accordance with RCW 77.85.250(8). The report shall also include a high-level status report on watershed planning efforts under chapter 90.82 RCW as summarized by the department of ecology and on salmon recovery and watershed planning as summarized by the Puget Sound partnership. The report's introduction must include a list of high-level questions related to the status of watershed health and salmon recovery to help decision makers and the public respond to salmon recovery and watershed health management needs.
     (2) The department, the department of ecology, the department of natural resources, and the state conservation commission((, and the forum on monitoring salmon recovery and watershed health)) shall provide to the ((governor's salmon recovery)) recreation and conservation office information requested by the office necessary to prepare the ((state of the salmon report and other reports produced by the office)) consolidated report on salmon recovery and watershed health.

Sec. 5   RCW 77.85.250 and 2007 c 444 s 8 are each amended to read as follows:
     (1) ((The legislature finds that pursuant to chapter 298, Laws of 2001, and acting upon recommendations of the state's independent science panel, the monitoring oversight committee developed recommendations for a comprehensive statewide strategy for monitoring watershed health, with a focus upon salmon recovery, entitled The Washington Comprehensive Monitoring Strategy and Action Plan for Watershed Health and Salmon Recovery. The legislature further finds that funding to begin implementing the strategy and action plan was provided in the 2003-2005 biennial budget, and that executive order 04-03 was issued to coordinate state agency implementation activities. It is therefore the purpose of this section to adopt the strategy and action plan and to provide guidance to ensure that the coordination activities directed by executive order 04-03 are effectively carried out.
     (2))) The forum on monitoring salmon recovery and watershed health is created to implement the Washington Comprehensive Monitoring Strategy and Action Plan for Watershed Health and Salmon Recovery. For administrative purposes, the forum is located within the recreation and conservation office. The governor shall appoint a person with experience and expertise in natural resources and environmental quality monitoring to chair the forum. The chair shall serve four-year terms and may serve successive terms. The forum shall include representatives of the following state agencies and regional entities that have responsibilities related to monitoring of salmon recovery and watershed health:
     (a) Department of ecology;
     (b) Salmon recovery funding board;
     (c) Governor's salmon recovery office;
     (d) Department of fish and wildlife;
     (e) Department of natural resources;
     (f) Puget Sound ((action team, or a successor state agency)) partnership;
     (g) Conservation commission;
     (h) Department of agriculture;
     (i) Department of transportation; and
     (j) Each of the regional salmon recovery organizations.
     (((3))) (2) The forum on monitoring salmon recovery and watershed health shall provide a multiagency venue for coordinating technical and policy issues and actions related to monitoring salmon recovery and watershed health.
     (((4))) (3) The forum on monitoring salmon recovery and watershed health shall recommend a set of ((measures)) high-level indicators for use ((by the governor's salmon recovery office)) in the ((state of the salmon report)) consolidated report on salmon recovery and watershed health required by RCW 77.85.020 to convey results and progress on salmon recovery and watershed health in ways that are easily understood by the general public.
     (((5))) (4) The forum on monitoring salmon recovery and watershed health shall invite the participation of federal, tribal, regional, and local agencies and entities that carry out salmon recovery and watershed health monitoring, and work toward coordination and standardization of measures used.
     (((6))) (5) The forum on monitoring salmon recovery and watershed health shall periodically report to the governor and the appropriate standing committees of the senate and house of representatives on the forum's activities and recommendations for improving monitoring programs by state agencies((, coordinating with the governor's salmon recovery office biennial report as)). This information must be included within the consolidated report on salmon recovery and watershed health required by RCW 77.85.020.
     (((7))) (6) The forum on monitoring salmon recovery and watershed health shall review pilot monitoring programs including those that integrate (a) data collection, management, and access; and (b) information regarding habitat projects and project management.
     (((8))) (7) The forum on monitoring salmon recovery and watershed health shall review and make recommendations to the office of financial management and the appropriate legislative committees on agency budget requests related to monitoring salmon recovery and watershed health. These recommendations must be made no later than September 15th of each year. The goal of this review is to prioritize and integrate budget requests across agencies.
     (((9))) (8)(a) The forum on monitoring salmon recovery and watershed health shall adopt general high-level indicators for salmon recovery and watershed health in Washington by December 1, 2009. By July 1, 2010, the forum shall also adopt the protocols for monitoring these high-level indicators that will enable state-conducted or state-funded monitoring efforts to be capable of reporting results that will ensure reporting consistency and agency compliance under the consolidated reporting requirement of RCW 77.85.020. The forum on monitoring salmon recovery and watershed health shall indicate how the general high-level indicators are consistent with, and complement, the more detailed regional and local metrics used to measure watershed health and salmon recovery.
     (b) High-level indicators shall inform a nontechnical summary of key metrics that indicate the state of salmon recovery and provide an index of watershed health in Washington.
     (9) This section expires June 30, ((2015)) 2011.

NEW SECTION.  Sec. 6   (1) By December 1, 2009, the recreation and conservation office, in consultation with the department of ecology, the department of fish and wildlife, regional fisheries enhancement groups, lead entities, planning units and lead agencies, and regional salmon recovery organizations shall provide an assessment to the governor on additional coordination and incentive opportunities with lead entities, regional salmon recovery organizations, lead agencies, and WRIA planning units, and shall include any additional coordination and incentive opportunities for those organizations that exist and operate within a shared watershed boundary or portions of a shared watershed boundary.
     (2) By December 1, 2009, the recreation and conservation office and the office of regulatory assistance, working in coordination with the departments of ecology and fish and wildlife, must identify and recommend one pilot project outside of Puget Sound that will effectively integrate salmon recovery and watershed planning missions and objectives. The pilot project's purpose is to demonstrate ways to achieve efficient permitting processes to implement projects identified in local or regional salmon recovery or WRIA-based watershed plans.
     (3) This section expires December 31, 2009.

NEW SECTION.  Sec. 7   (1) By December 1, 2009, the department of ecology must provide recommendations to the legislature on grant programs related to restoration and protection of water quality and for increases, augmentation, or conservation of water quantity supplies that may be more effectively and efficiently funded through the salmon recovery funding board. The recommendations should include ways to integrate salmon recovery data into reporting of watershed health.
     (2) This section expires December 31, 2009.

Sec. 8   RCW 77.85.140 and 2007 c 241 s 22 are each amended to read as follows:
     (1) Habitat project lists shall be submitted to the salmon recovery funding board for funding at least once a year on a schedule established by the board. The board shall provide the legislature with a list of the proposed projects and a list of the projects funded by October 1st of each year for informational purposes. Project sponsors who complete salmon habitat projects approved for funding from habitat project lists and have met grant application deadlines will be paid by the salmon recovery funding board within thirty days of project completion.
     (2) The recreation and conservation office shall track all funds allocated for salmon habitat projects and salmon recovery activities on behalf of the board, including both funds allocated by the board and funds allocated by other state or federal agencies for salmon recovery or water quality improvement.
     (((3) Beginning in December 2000, the board shall provide a biennial report to the governor and the legislature on salmon recovery expenditures. This report shall be coordinated with the state of the salmon report required under RCW 77.85.020.))

Sec. 9   RCW 77.85.005 and 2005 c 309 s 1 are each amended to read as follows:
     The legislature finds that repeated attempts to improve salmonid fish runs throughout the state of Washington have failed to avert listings of salmon and steelhead runs as threatened or endangered under the federal endangered species act (16 U.S.C. Sec. 1531 et seq.). These listings threaten the sport, commercial, and tribal fishing industries as well as the economic well-being and vitality of vast areas of the state. It is the intent of the legislature to begin activities required for the recovery of salmon stocks as soon as possible, although the legislature understands that successful recovery efforts may not be realized for many years because of the life cycle of salmon and the complex array of natural and human-caused problems they face.
     The legislature finds that it is in the interest of the citizens of the state of Washington for the state to retain primary responsibility for managing the natural resources of the state, rather than abdicate those responsibilities to the federal government, and that the state may best accomplish this objective by integrating local and regional recovery activities into a statewide strategy that can make the most effective use of provisions of federal laws allowing for a state lead in salmon recovery, delivered through implementation activities consistent with regional and watershed recovery plans. The legislature also finds that a statewide salmon recovery strategy must be developed and implemented through an active public involvement process in order to ensure public participation in, and support for, salmon recovery. The legislature also finds that there is a substantial link between the provisions of the federal endangered species act and the federal clean water act (33 U.S.C. Sec. 1251 et seq.). The legislature further finds that habitat restoration is a vital component of salmon recovery efforts. Therefore, it is the intent of the legislature to specifically address salmon habitat restoration in a coordinated manner and to develop a structure that allows for the coordinated delivery of federal, state, and local assistance to communities for habitat projects that will assist in the recovery and enhancement of salmon stocks. A strong watershed-based locally implemented plan is essential for local, regional, and statewide salmon recovery.
     The legislature also finds that credible scientific review and oversight is essential for any salmon recovery effort to be successful.
     The legislature further finds that it is important to monitor the overall health of the salmon resource to determine if recovery efforts are providing expected returns. It is important to monitor salmon habitat projects and salmon recovery activities to determine their effectiveness in order to secure federal acceptance of the state's approach to salmon recovery. Adaptive management cannot exist without monitoring. For these reasons, the legislature believes that a coordinated and integrated monitoring system should be developed and implemented.
     The legislature therefore finds that a coordinated framework for responding to the salmon crisis is needed immediately. To that end, the governor's salmon recovery office should be created ((within the governor's office)) to provide overall coordination of the state's response; an independent science panel is needed to provide scientific review and oversight; a coordinated state funding process should be established through a salmon recovery funding board; the appropriate local or tribal government should provide local leadership in identifying and sequencing habitat projects to be funded by state agencies; habitat projects should be implemented without delay; and a strong locally based effort to restore salmon habitat should be established by providing a framework to allow citizen volunteers to work effectively.

Sec. 10   RCW 77.85.090 and 2007 c 444 s 5 and 2007 c 341 s 49 are each reenacted and amended to read as follows:
     (1) The southwest Washington salmon recovery region, whose boundaries are provided in chapter 60, Laws of 1998, is created.
     (2) Lead entities within a salmon recovery region that agree to form a regional salmon recovery organization may be recognized by the governor's salmon recovery office created in RCW 77.85.030((, during the time it is constituted,)) as a regional recovery organization. The regional recovery organization may plan, coordinate, and monitor the implementation of a regional recovery plan in accordance with RCW 77.85.150. Regional recovery organizations existing as of July 24, 2005, that have developed draft recovery plans approved by the governor's salmon recovery office by July 1, 2005, may continue to plan, coordinate, and monitor the implementation of regional recovery plans.
     (3) Beginning January 1, 2008, the leadership council, created under chapter 90.71 RCW, shall serve as the regional salmon recovery organization for Puget Sound salmon species, except for the program known as the Hood Canal summer chum evolutionarily significant unit area, which the Hood Canal coordinating council shall continue to administer under chapter 90.88 RCW.

Sec. 11   RCW 77.85.150 and 2007 c 444 s 6 are each amended to read as follows:
     (1) The governor shall, with the assistance of the governor's salmon recovery office, ((during the time it is constituted,)) maintain and revise, as appropriate, a statewide salmon recovery strategy.
     (2) The governor and the governor's salmon recovery office shall be guided by the following considerations in maintaining and revising the strategy:
     (a) The strategy should identify statewide initiatives and responsibilities with regional recovery plans and local watershed initiatives as the principal means for implementing the strategy;
     (b) The strategy should emphasize collaborative, incentive-based approaches;
     (c) The strategy should address all factors limiting the recovery of Washington's listed salmon stocks, including habitat and water quality degradation, harvest and hatchery management, inadequate streamflows, and other barriers to fish passage. Where other limiting factors are beyond the state's jurisdictional authorities to respond to, such as some natural predators and high seas fishing, the strategy shall include the state's requests for federal action to effectively address these factors;
     (d) The strategy should identify immediate actions necessary to prevent extinction of a listed salmon stock, establish performance measures to determine if restoration efforts are working, recommend effective monitoring and data management, and recommend to the legislature clear and certain measures to be implemented if performance goals are not met;
     (e) The strategy shall rely on the best scientific information available and provide for incorporation of new information as it is obtained;
     (f) The strategy should seek a fair allocation of the burdens and costs upon economic and social sectors of the state whose activities may contribute to limiting the recovery of salmon; and
     (g) The strategy should seek clear measures and procedures from the appropriate federal agencies for removing Washington's salmon stocks from listing under the federal act.
     (3) If the strategy is updated, an active and thorough public involvement process, including early and meaningful opportunity for public comment, must be utilized. In obtaining public comment, the governor's salmon recovery office shall work with regional salmon recovery organizations throughout the state and shall encourage regional and local recovery planning efforts to ensure an active public involvement process.
     (4) This section shall apply prospectively only and not retroactively. Nothing in this section shall be construed to invalidate actions taken in recovery planning at the local, regional, or state level prior to July 1, 1999.

Sec. 12   RCW 43.41.270 and 2007 c 444 s 7 and 2007 c 241 s 5 are each reenacted and amended to read as follows:
     (1) The office of financial management shall assist natural resource-related agencies in developing outcome-focused performance measures for administering natural resource-related and environmentally based grant and loan programs. These performance measures are to be used in determining grant eligibility, for program management and performance assessment.
     (2) The office of financial management and the ((governor's salmon recovery)) recreation and conservation office((, during the time it is constituted,)) shall assist natural resource-related agencies in developing recommendations for a monitoring program to measure outcome-focused performance measures required by this section. The recommendations must be consistent with the framework and coordinated monitoring strategy developed by the monitoring oversight committee established in RCW 77.85.210.
     (3) Natural resource agencies shall consult with grant or loan recipients including local governments, tribes, nongovernmental organizations, and other interested parties, and report to the office of financial management on the implementation of this section.
     (4) For purposes of this section, "natural resource-related agencies" include the department of ecology, the department of natural resources, the department of fish and wildlife, the state conservation commission, the recreation and conservation funding board, the salmon recovery funding board, and the public works board within the department of community, trade, and economic development.
     (5) For purposes of this section, "natural resource-related environmentally based grant and loan programs" includes the conservation reserve enhancement program; dairy nutrient management grants under chapter 90.64 RCW; state conservation commission water quality grants under chapter 89.08 RCW; coordinated prevention grants, public participation grants, and remedial action grants under RCW 70.105D.070; water pollution control facilities financing under chapter 70.146 RCW; aquatic lands enhancement grants under RCW 79.105.150; habitat grants under the Washington wildlife and recreation program under RCW 79A.15.040; salmon recovery grants under chapter 77.85 RCW; and the public works trust fund program under chapter 43.155 RCW. The term also includes programs administered by the department of fish and wildlife related to protection or recovery of fish stocks which are funded with moneys from the capital budget.

Sec. 13   RCW 79A.25.240 and 2007 c 241 s 57 are each amended to read as follows:
     The recreation and conservation office shall provide necessary grants and loan administration support to the salmon recovery funding board as provided in RCW 77.85.120. The office shall also be responsible for tracking salmon recovery expenditures under RCW 77.85.140. The office shall provide all necessary administrative support to the salmon recovery funding board, and the salmon recovery funding board shall be located with the office. ((The office shall provide necessary coordination with the salmon recovery office.))

NEW SECTION.  Sec. 14   Nothing in this act is intended to amend chapter 90.71 RCW.

NEW SECTION.  Sec. 15   RCW 77.85.100 (Work group -- Evaluation of mitigation alternatives) and 2000 c 107 s 100 & 1998 c 246 s 16 are each repealed."