AN ACT Relating to use of the waters of the Yakima river basin; and adding a new chapter to Title 90 RCW.

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

NEW SECTION. Sec. 1. (1) The legislature finds that:

(a) Under present physical conditions in the Yakima river basin there is an insufficient supply of water to satisfy the needs of the basin;

(b) Pursuant to P.L. 96-162, which was urged for enactment by this state, the United States is now conducting a study of ways to provide needed waters through improvements of the federal water project presently existing in the Yakima river basin;

(c) The interests of the state will be served by developing programs, in cooperation with the United States and the various water users in the basin, that increase the overall ability to manage basin waters in order to better satisfy both present and future needs for water in the Yakima river basin.

(2) It is the purpose of this chapter, consistent with these findings, to improve the ability of the state to work with the United States and various water users of the Yakima river basin in a program designed to satisfy both existing rights, and other presently unmet as well as future needs of the basin.

(3) The provisions of this chapter apply only to waters of the Yakima river basin.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of ecology.

(2) "Net water savings" means the amount of water that through hydrological analysis is determined to be conserved and usable for other purposes without impairing existing water rights, reducing the ability to deliver water, or reducing the supply of water that otherwise would have been available to other water users.

(3) "Trust water right" means that portion of an existing water right, constituting net water savings, that is no longer required to be diverted for beneficial use due to the installation of a water conservation project that improves an existing system. The term "trust water right" also applies to any other water right acquired by the department under this chapter for management in the Yakima river basin trust water rights program.

(4) "Water conservation project" means any project funded under this chapter for physical or operational improvements of efficiency in existing systems for diversion, conveyance, or application of water under existing water rights.

NEW SECTION. Sec. 3. (1) The department may acquire water rights, including storage rights, by purchase, gift, or other appropriate means other than by condemnation, from any person or entity or combination of persons or entities.

(2) The department may make such other arrangements, including entry into contracts with other persons or entities as appropriate to ensure that trust water rights acquired in accordance with this chapter can be exercised to the fullest possible extent.

(3) The trust water rights may be acquired on a temporary or permanent basis.

NEW SECTION. Sec. 4. (1) The department is authorized to enter into contracts with water users for the purpose of providing moneys to users to assist in the financing of water conservation projects. In exchange for the financial assistance the water users shall convey the trust water rights, created as a result of the assistance, to the department of ecology.

(2) No contract shall be entered into by the department with a water user unless it appears to the department that, upon the completion of a water conservation project financed with moneys as provided in this section, a valid water right exists for conveyance to the department.

(3) The department shall cooperate fully with the United States in the implementation of this chapter. Trust water rights may be acquired through expenditure of funds provided by the United States and shall be treated in the same manner as trust water rights resulting from the expenditure of state funds.

(4) When water is proposed to be transferred to the water trust fund by an irrigation district, evidence of the district's authority to represent the water right holders must be submitted to, and for the satisfaction of, the department.

(5) The department shall not approve any proposal to transfer water to the water trust fund by an individual whose water right is appurtenant to land lying within an irrigation district without the approval of the board of directors of the irrigation district.

NEW SECTION. Sec. 5. (1) All trust water rights acquired by the department shall be placed in the Yakima river basin trust water rights program to be managed by the department. The department shall issue a water right certificate in the name of the state of Washington for each trust water right it acquires.

(2) Trust water rights shall retain the same priority date as the water right from which they originated. Trust water rights may be modified as to purpose or place of use or point of diversion, including modification from a diversionary use to a nondiversionary instream use.

(3) Trust water rights may be held by the department for instream flows and/or irrigation use.

(4) A schedule of the amount of net water saved as a result of water conservation projects carried out in accordance with this chapter, shall be developed annually to reflect the predicted hydrologic and water supply conditions, as well as anticipated water demands, for the upcoming irrigation season. This schedule shall serve as the basis for the distribution and management of trust water rights each year.

(5) No conveyance or exercise of a trust water right shall be authorized unless the department first determines that no existing water rights, junior or senior in priority, will be impaired as to their exercise or injured in any manner whatever by such authorization. Before any such conveyance or exercise of any trust water right, the department shall publish notice thereof in a newspaper of general circulation published in the county or counties in which the storage, diversion, and use are to be made, and in such other newspapers as the department determines are necessary, once a week for two consecutive weeks. At the same time the department shall also send notice thereof containing pertinent information to the director of fisheries and the director of wildlife.

(6) RCW 90.03.380 and 90.14.140 through 90.14.910 shall have no applicability to water rights either held in the trust or conveyed as provided in subsection (3) of this section.

NEW SECTION. Sec. 6. The department may adopt rules as appropriate to ensure full implementation of this chapter.

NEW SECTION. Sec. 7. Unless specifically authorized by subsequent legislation, state funds authorized for the agricultural water supply facilities improvement and emergency water supply programs in chapter 43.83B or 43.99E RCW shall not be used to implement the provisions of this chapter. The funding program provided in this chapter shall not replace or eliminate the agricultural water supply facilities improvement and emergency water supply programs in chapter 43.83B or 43.99E RCW.

NEW SECTION. Sec. 8. It is not the intent of this chapter to facilitate the transfer of water rights from one irrigation district to another.

NEW SECTION. Sec. 9. Nothing in this chapter shall authorize the impairment or operate to impair any existing water rights.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act shall constitute a new chapter in Title 90 RCW.