On page 90, line 9, after "limitations:" strike all material through "lapse." on line 12 and insert the following:

"(1) The appropriation in this section is provided solely for the department to identify, make recommendations, and approve water infrastructure projects designed to improve streamflow, to measure streamflow, or to address the cumulative impacts of exempt groundwater withdrawals authorized by RCW 90.44.050 in watersheds or subbasins that are experiencing above average growth pressure and declining streamflows. The department must give priority to identify and provide sources of potable water for human consumption in basins closed to new development due to lack of legal water availability and to address instream resources that can improve watershed functions that support the recovery of threatened and endangered salmonids. The department must coordinate with counties, cities, or towns about the projects within their respective jurisdictional boundaries.

(2) $9,000,000 of the appropriation in this section is provided solely for projects to improve streamflow in the following water resource inventory areas: (a) $3,000,000 for water resource inventory area 1 (Nooksack), (b) $3,000,000 for water resource inventory area 10 (Puyallup-White), and (c) $3,000,000 for water resource inventory area 11 (Nisqually).

(3) $2,000,000 of the appropriation in this section is provided solely for the department to provide legal water for existing homes located in water resource inventory area 3 (lower Skagit-Samish) and water resource inventory area 4 (upper Skagit) whose access to potable water was invalidated by court decision.

(4) $2,000,000 of the appropriation in this section is provided solely to address groundwater resource issues in water resource inventory area 37 (lower Yakima), water resource inventory area 38 (Naches), and water resource inventory area 39 (upper Yakima)."

On page 90, at the beginning of line 14, strike all material through "Bond" and insert "Water Resources Project"

On page 90, line 17, strike "$180,000,000" and insert "$0"

On page 90, line 18, strike "$200,000,000" and insert "$20,000,000"

On page 177, after line 31, insert the following:

NEW SECTION.  Sec. 7032.  "FOR THE STATE TREASURER—TRANSFERS

State Building Construction Account: For transfer to

the water resources project account, $20,000,000 for

fiscal year 2018. . . .$20,000,000

NEW SECTION.  Sec. 7033.  A new section is added to chapter 90.54 RCW to read as follows:

(1)(a) The water resources project account is created in the state treasury. All receipts collected under RCW 18.104.055(3) must be deposited into the account. Moneys in the account may only be spent after appropriation. Moneys in the account may only be used as designated in this section.

(b) Funding from this account is for water infrastructure projects, or projects designed to measure or improve streamflow.

(2) Consistent with RCW 43.01.036, the department must submit a report to the legislature by December 1, 2020, that includes:

(a) The amount of fees collected under RCW 18.104.055(3);

(b) How these fees were allocated;

(c) A description of the projects;

(d) An evaluation of the effectiveness of the projects; and

(e) Any recommendations to the legislature regarding the fees collected under RCW 18.104.055(3)."

Renumber the remaining sections consecutively and correct any internal references accordingly.

EFFECT: Appropriates funding from the Water Resources Project Account, rather than the Water Restoration and Enhancement Bond Account. Specifies that the funding is for Ecology to identify, make recommendations, and approve water infrastructure projects designed to improve streamflow, to measure groundwater withdrawals. Ecology must give priority to identify and provide sources of potable water for human consumption in basins closed to new development due to lack of legal water availability. Ecology must coordinate with counties, cities, or towns about projects within their respective boundaries.

$9 million, $3 million per water resource inventory area (WRIA) is provided for WRIAs 1, 10, and 11 for projects to improve streamflow.

$2 million is provided for legal water for existing homes located in WRIAs 3 and 4.

$2 million is provided to address groundwater issues in WRIAs 37, 38, and 39.

Directs the Treasurer to transfer $20 million from the State Building Construction Account into the Water Resources Project Account.

Creates the appropriated Water Resources Project Account which may be used for water infrastructure projects, or projects designed to measure or improve streamflow. Requires the Department of Ecology to report to the legislature by December 2020 regarding the allocation of fees from the account and effectiveness of projects.