BILL REQ. #:  S-4530.1 

READ FIRST TIME 02/07/12.   

     AN ACT Relating to streamlining water right permitting and appeals; amending RCW 90.03.320 and 43.21B.305; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that the ongoing economic recession has prevented water right holders from completing projects with existing water right permits, and that existing law allows such permits to be extended without increasing or decreasing the quantity of water authorized. The legislature also finds that the ongoing economic recession has impacted state agency budgets, including the department of ecology's water resource program and environmental and land use hearings office.
     Therefore, it is the intent of the legislature to enact temporary water rights permitting reforms to enable the department of ecology's water permitting staff to focus on substantive permitting matters that do not duplicate other permit review procedures.

Sec. 2   RCW 90.03.320 and 1999 c 400 s 1 are each amended to read as follows:
     (1) Actual construction work shall be commenced on any project for which permit has been granted within such reasonable time as shall be prescribed by the department, and shall thereafter be prosecuted with diligence and completed within the time prescribed by the department. The department, in fixing the time for the commencement of the work, or for the completion thereof and the application of the water to the beneficial use prescribed in the permit, shall take into consideration the cost and magnitude of the project and the engineering and physical features to be encountered, and shall allow such time as shall be reasonable and just under the conditions then existing, having due regard for the public welfare and public interests affected. For good cause shown, the department shall extend the time or times fixed as aforesaid, and shall grant such further period or periods as may be reasonably necessary, having due regard to the good faith of the applicant and the public interests affected. Good cause includes prevention or restriction of water use by operation of federal laws for the time or times fixed for commencing work, completing work, and applying water to beneficial use otherwise authorized under a water right permit issued for a federal reclamation project. In fixing construction schedules and the time, or extension of time, for application of water to beneficial use for municipal water supply purposes, the department shall also take into consideration the term and amount of financing required to complete the project, delays that may result from planned and existing conservation and water use efficiency measures implemented by the public water system, and the supply needs of the public water system's service area, consistent with an approved comprehensive plan under chapter 36.70A RCW, or in the absence of such a plan, a county-approved comprehensive plan under chapter 36.70 RCW or a plan approved under chapter 35.63 RCW, and related water demand projections prepared by public water systems in accordance with state law. An existing comprehensive plan under chapter 36.70A or 36.70 RCW, plan under chapter 35.63 RCW, or demand projection may be used. If the terms of the permit or extension thereof, are not complied with the department shall give notice by registered mail that such permit will be canceled unless the holders thereof shall show cause within sixty days why the same should not be so canceled. If cause is not shown, the permit shall be canceled.
     (2) Notwithstanding the provisions of subsections (1) and (3) of this section, for any water right permit, previously approved permit extension, or water right change or transfer with a development schedule requiring construction or application of water to beneficial use between the effective date of this section and December 31, 2016, the times for construction and the application of water to beneficial use are both extended for five years. The extension must be issued by the department after payment of the fee required by RCW 90.03.470. In connection with the ministerial permit extension authorized in this subsection, the department shall not increase or decrease the quantity of water authorized under the permit or modify any other terms or conditions of the permit. As an alternative to the ministerial permit extension authorized in this subsection, a water right permit holder may apply for a permit extension under subsection (1) of this section.
     (3) The provisions of this section do not apply to the Quincy groundwater subarea as defined in WAC 173-134A-040(8) as it existed on the effective date of this section.

Sec. 3   RCW 43.21B.305 and 2005 c 34 s 2 are each amended to read as follows:
     In an appeal that involves a penalty of fifteen thousand dollars or less, the appeal may be heard by one member of the board or by an administrative law judge employed by the board, whose decision shall be the final decision of the board. The board shall define by rule alternative procedures to expedite appeals involving penalties of fifteen thousand dollars or less. These alternatives may include: Mediation, upon agreement of all parties; submission of testimony by affidavit; or other forms that may lead to less formal and faster resolution of appeals.