"NEW SECTION.  Sec. 1   A new section is added to chapter 90.44 RCW to read as follows:
     (1) Each parcel of property that is located within a closed Skagit river subbasin is entitled to the withdrawal of public groundwater in an amount not exceeding three hundred fifty gallons per day per dwelling unit if the dwelling:
     (a) Utilizes an on-site septic system for wastewater management;
     (b) Is unable to practicably receive a water supply from a public water system pursuant to RCW 43.20.260 and 70.116.030;
     (c) Satisfies the mitigation requirements of section 2 of this act;
     (d) Complies with all county ordinances and project approval conditions and requirements;
     (e) Complies with any local jurisdiction provisions that require proof that water is physically available and that it meets all applicable water quality standards; and
     (f) Is on a legal lot of record that was in existence prior to the effective date of this section.
     (2) To the extent groundwater withdrawn under the authority established in this section is regularly used beneficially, that dwelling is entitled to a right equal to that established by a permit issued under the provisions of this chapter.
     (3) Groundwater withdrawn under the authority established in this section must be limited to permit exempt domestic uses, as that term applies to the administration of RCW 90.44.050.

NEW SECTION.  Sec. 2   A new section is added to chapter 90.44 RCW to read as follows:
     (1)(a) The owner of any parcel located in a closed Skagit river subbasin must, prior to any groundwater withdrawals authorized by section 1 of this act, initiate the implementation of an environmental mitigation plan that has been approved by the department as resulting in no net loss of water to the hydraulic system of the Skagit river basin.
     (b) The mitigation plan must be designed to offset the impacts to stream flows caused by the groundwater withdrawal authorized by section 1 of this act. The mitigation plan must quantify the expected impacts on stream flows and must include the protection of and, where possible, the enhancement of instream flows in the Skagit river basin by:
     (i) Acquiring water rights;
     (ii) Incentivizing water conservation and low-impact development practices; and
     (iii) Promoting any other instream flow enhancement projects, including but not limited to collection, retention, and release of rainwater, constructing ponds, wetlands, and other water impoundments, and storm water infiltration.
     (c) The applicant for mitigation plan approval must also identify the sources of funding or funding commitments necessary to implement the mitigation plan.
     (2)(a) The responsibility for developing the mitigation plan and funding its implementation belongs to the owner of the property subject to the mitigation plan. However, nothing in this section prohibits a county or public utility district from contributing public funds for the development and implementation of a mitigation plan under this section. Any commitment of public funds by a county or public utility district must be identified in the mitigation plan submitted to the department for approval.
     (b) For property owners located in the Skagit river basin who applied for a building permit with the county applicable to the property where groundwater withdrawals are intended under section 1 of this act prior to the effective date of this section only, the development and implementation of a mitigation plan submitted for approval under this section may be funded, in part or in whole, by state capital budget funding.

Sec. 3   RCW 90.44.035 and 2000 c 98 s 2 are each amended to read as follows:
     For purposes of this chapter:
     (1) "Department" means the department of ecology;
     (2) "Director" means the director of ecology;
     (3) "Groundwaters" means all waters that exist beneath the land surface or beneath the bed of any stream, lake or reservoir, or other body of surface water within the boundaries of this state, whatever may be the geological formation or structure in which such water stands or flows, percolates or otherwise moves. There is a recognized distinction between natural groundwater and artificially stored groundwater;
     (4) "Natural groundwater" means water that exists in underground storage owing wholly to natural processes;
     (5) "Artificially stored groundwater" means water that is made available in underground storage artificially, either intentionally, or incidentally to irrigation and that otherwise would have been dissipated by natural processes; ((and))
     (6) "Underground artificial storage and recovery project" means any project in which it is intended to artificially store water in the ground through injection, surface spreading and infiltration, or other department-approved method, and to make subsequent use of the stored water. However, (a) this subsection does not apply to irrigation return flow, or to operational and seepage losses that occur during the irrigation of land, or to water that is artificially stored due to the construction, operation, or maintenance of an irrigation district project, or to projects involving water reclaimed in accordance with chapter 90.46 RCW; and (b) RCW 90.44.130 applies to those instances of claimed artificial recharge occurring due to the construction, operation, or maintenance of an irrigation district project or operational and seepage losses that occur during the irrigation of land, as well as other forms of claimed artificial recharge already existing at the time a groundwater subarea is established; and
     (7) "Skagit river basin" means water resources inventory areas numbers 3 and 4 established under chapter 173-500 WAC as it existed on the effective date of this section.
     (8) "Closed Skagit river subbasin" means a subbasin of the Skagit river basin that has been administratively closed to new groundwater withdraws by the department pursuant to chapter 173-503 WAC.

Sec. 4   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 groundwaters 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 groundwaters 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, or as provided in RCW 90.44.052 or section 1 of this act, or for an industrial purpose in an amount not exceeding five thousand gallons a day, 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 groundwaters of the state not exceeding five thousand gallons per day, 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.

Sec. 5   RCW 90.44.050 and 2003 c 307 s 1 are each amended to read as follows:
     (1) After June 6, 1945, no withdrawal of public groundwaters 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 groundwaters 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, or as provided in RCW 90.44.052, or for an industrial purpose in an amount not exceeding five thousand gallons a day, 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 groundwaters of the state not exceeding five thousand gallons per day, 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.
     (2)(a) The department may not require withdrawals of groundwater to be metered or measured for wells authorized under the provisions of this section constructed prior to the effective date of this section for single or group domestic uses that do not exceed withdrawals of five thousand gallons a day.
     (b) This subsection does not apply to wells the department has required to be metered or measured as of the effective date of this section.

NEW SECTION.  Sec. 6   The provisions of this act override any conflicting provisions contained in chapter 173-503 WAC as it existed on the effective date of this section."