[atlas:bill]

AN ACT Relating to water resources; amending RCW 90.03.330, 90.03.380, 90.44.100, 43.62.035, 90.03.383, 90.03.345, 90.14.140, 90.38.020, 90.42.080, 90.46.010, 90.46.080, 90.46.090, and 90.03.060; adding new sections to chapter 90.03 RCW; adding a new section to chapter 82.16 RCW; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 39.34 RCW.

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

Sec. 1. RCW 90.03.330 and 1987 c 109 s 89 are each amended to read as follows:

(1) Upon a showing satisfactory to the department that any appropriation has been perfected in accordance with the provisions of this chapter, it shall be the duty of the department to issue to the applicant a certificate stating such facts in a form to be prescribed by ((~~him~~)) the department, and such certificate shall thereupon be recorded with the department. Any original water right certificate issued, as provided by this chapter, shall be recorded with the department and thereafter, at the expense of the party receiving the same, be by the department transmitted to the county auditor of the county or counties where the distributing system or any part thereof is located, and be recorded in the office of such county auditor, and thereafter be transmitted to the owner thereof.

(2) Each water right documented by a certificate issued under this chapter or chapter 90.44 RCW or by a claim filed in the state's water rights claims registry under chapter 90.14 RCW is composed of two fundamental parts. One part is the portion of the right that has been beneficially used. The second is the inchoate portion of the right. The inchoate portion of the right may be exercised only as provided in section 2 of this act for water rights held by public water systems for the purposes of public water systems or as provided in section 3 of this act for water rights held by any other person or entity or for any other purpose or use. The sum of these parts for any water right shall not exceed instantaneously or annually the extent of the right stated on the certificate or the extent of the right stated on the statement of claim filed for the right under chapter 90.14 RCW. The priority date for the beneficially used portion of a water right developed by exercising an inchoate portion of the water right under section 2 or 3 of this act is the priority date of the original water right.

NEW SECTION. Sec. 2. A new section is added to chapter 90.03 RCW to read as follows:

The inchoate portion of a water right held by a public water system for public water system purposes as described in RCW 90.03.330(2) may be exercised only as provided in this section.

(1) The amount of water diverted or withdrawn for beneficial use under the water right shall not exceed the amount represented by the capacity of the water diversion, withdrawal, or distribution facilities constructed for using the right on the effective date of this section or on the date a certificate is issued for a new right under this chapter or chapter 90.44 RCW, whichever date is later.

(2) The population served by the right, the number of service connections, and the amount of water beneficially used under the right may be expanded through the conversion of an inchoate portion of the right to a beneficially used portion of the right within the place of use listed on the certificate or in the statement of claim if the conditions listed in subsection (3) of this section are satisfied.

(3) If the place of use of the public water system's water right includes an area that is:

(a) Within the boundaries of a critical water supply service area designated under chapter 70.116 RCW for which a coordinated water system plan has been adopted, the public water system shall satisfy requests for service within the area dedicated to service by the system under the plan before use of water under the inchoate portion of the system's water right may be expanded for use elsewhere; or

(b) Within the corporate limits of a city or town or within the boundaries of an urban growth area as designated under chapter 36.70A RCW, the first priority for expanding use of water under the inchoate portion of the system's water right shall be, except as provided in (a) of this subsection, use within those limits or boundaries and this priority shall be clearly documented in any water system plan submitted by the public water system for review by the department of health or the plan shall not be approved by the department of health.

(4) If a portion of the area governed by a coordinated water system plan or area within a city or town or urban growth area is within the place of use for a public system's water right as described in subsection (3) of this section, any part of the inchoate portion of the system's right may be transferred or changed to use for public water system purposes within any other part of the critical water supply service area or any other area within the corporate boundaries of the city or town or within the urban growth area if all conservation measures in guidelines of the department of health that apply to the distribution systems of public water systems are incorporated into the distribution of the water within such an expanded place of use.

Although the transfer or change shall be approved by the department of ecology, the conditions provided by this subsection authorizing the transfer or change are the exclusive tests to be used by the department in approving the transfer or change.

(5) Any part of an inchoate portion of a public water system's water right may be converted to a beneficially used portion of the right through the transfer or change of the right to another public water system through the use of an intertie or otherwise and for use for public water system purposes if all conservation measures in guidelines of the department of health that apply to the distribution systems of public water systems are incorporated into the distribution of the water within such an expanded place of use. Such a transfer or change shall be made as provided in RCW 90.03.380, 90.03.383, 90.03.390, or 90.44.100.

(6) This section shall not be construed as permitting any use of the right in a manner otherwise expressly restricted or prohibited by the provisions or conditions listed on the certificate or in the statement of claim.

(7) If the only place of use specified in a water right certificate held by a public water system is the system's service area, the place of use for the certificate for the purposes of this section is the service area identified in the latest water system plan approved before the effective date of this section by the department of health for the public water system.

(8) If an inchoate portion of a water right is converted to a beneficially used portion of the water right after the effective date of this section and the holder of the water right is a public water system with one thousand or more service connections, the system and the department shall study the effects of such an action on habitat for fish stocks listed or proposed for listing as threatened or endangered under the federal endangered species act or as critical or depressed in the state's salmon and steelhead stock inventory. The study shall be completed within two years of the action. If the action would adversely impact such habitat, the system shall, within one year of completing the study, develop a plan for mitigating the adverse impacts and for monitoring the effectiveness of the mitigation effort. This subsection does not apply if use of the water right is regulated under a license issued by the federal energy regulatory commission.

NEW SECTION. Sec. 3. A new section is added to chapter 90.03 RCW to read as follows:

The inchoate portion of a water right other than a right to use water for public water system purposes is the portion of the right that becomes available for use by the holder of the water right through the implementation of water distribution and use efficiency measures. Such an inchoate portion of the water right may be transferred or changed to use on other lands owned by the holder of the water right if:

(1) The amount of water diverted or withdrawn by the water right holder for beneficial use under the original certificate or statement of claim is not expanded;

(2) The water distribution and use efficiency measures employed by the water right holder at such a new place of use are at least as efficient as those employed at the original place of use;

(3) The place of use to which the water would be transferred is within one mile of any part of the perimeter of the place of use under the original right.

A transfer or change that satisfies the conditions of subsections (1) through (3) of this section is presumed to be in the public interest and is presumed to be neither detrimental nor injurious to existing rights. The burden is on a challenging party or the department to provide evidence that overcomes this presumption.

NEW SECTION. Sec. 4. A new section is added to chapter 90.03 RCW to read as follows:

If funding for financing water efficiency measures is provided by the state and the measures result in the ability of a water right holder to use the inchoate portion of the holder's water right under section 3 of this act, a portion of the inchoate right made usable shall be transferred to the state trust water right system under chapter 90.38 or 90.42 RCW that is equal to the proportion of the total cost of the measures that is financed with state funding. Any water rights received by the state shall be transferred to the state trust water right system under chapter 90.38 or 90.42 RCW.

Sec. 5. RCW 90.03.380 and 1997 c 442 s 801 are each amended to read as follows:

(1) The right to the use of water which has been applied to a beneficial use in the state shall be and remain appurtenant to the land or place upon which the same is used: PROVIDED, HOWEVER, That the right may be transferred to another or to others and become appurtenant to any other land or place of use without loss of priority of right theretofore established if such change can be made without detriment or injury to existing rights. The point of diversion of water for beneficial use or the purpose of use may be changed, if such change can be made without detriment or injury to existing rights. Except as provided in section 3 of this act, a change in the place of use, point of diversion, and/or purpose of use of a water right to enable irrigation of additional acreage or the addition of new uses may be permitted if such change results in no increase in the annual consumptive quantity of water used under the water right. For purposes of this section, "annual consumptive quantity" means the estimated or actual annual amount of water diverted pursuant to the water right, reduced by the estimated annual amount of return flows, averaged over the most recent five-year period of continuous beneficial use of the water right. Before any transfer of such right to use water or change of the point of diversion of water or change of purpose of use can be made, any person having an interest in the transfer or change, shall file a written application therefor with the department, and the application shall not be granted until notice of the application is published as provided in RCW 90.03.280. If it shall appear that such transfer or such change may be made without injury or detriment to existing rights, the department shall issue to the applicant a certificate in duplicate granting the right for such transfer or for such change of point of diversion or of use. The certificate so issued shall be filed and be made a record with the department and the duplicate certificate issued to the applicant may be filed with the county auditor in like manner and with the same effect as provided in the original certificate or permit to divert water.

(2) If an application for change proposes to transfer water rights from one irrigation district to another, the department shall, before publication of notice, receive concurrence from each of the irrigation districts that such transfer or change will not adversely affect the ability to deliver water to other landowners or impair the financial integrity of either of the districts.

(3) A change in place of use by an individual water user or users of water provided by an irrigation district need only receive approval for the change from the board of directors of the district if the use of water continues within the irrigation district, and when water is provided by an irrigation entity that is a member of a board of joint control created under chapter 87.80 RCW, approval need only be received from the board of joint control if the use of water continues within the area of jurisdiction of the joint board and the change can be made without detriment or injury to existing rights.

(4) The tests provided by this section for determining whether a transfer or change may be approved by the department are modified as provided in sections 2(4) and 3 of this act for the circumstances governed by sections 2(4) and 3 of this act.

(5) This section shall not apply to trust water rights acquired by the state through the funding of water conservation projects under chapter 90.38 RCW or RCW 90.42.010 through 90.42.070.

Sec. 6. RCW 90.44.100 and 1997 c 316 s 2 are each amended to read as follows:

(1) After an application to, and upon the issuance by the department of an amendment to the appropriate permit or certificate of ground water right, the holder of a valid right to withdraw public ground waters may, without losing the holder's priority of right, construct wells or other means of withdrawal at a new location in substitution for or in addition to those at the original location, or the holder may change the manner or the place of use of the water.

(2) An amendment to construct replacement or a new additional well or wells at a location outside of the location of the original well or wells or to change the manner or place of use of the water shall be issued only after publication of notice of the application and findings as prescribed in the case of an original application. Such amendment shall be issued by the department only on the conditions that: (a) The additional or replacement well or wells shall tap the same body of public ground water as the original well or wells; (b) where a replacement well or wells is approved, the use of the original well or wells shall be discontinued and the original well or wells shall be properly decommissioned as required under chapter 18.104 RCW; (c) where an additional well or wells is constructed, the original well or wells may continue to be used, but the combined total withdrawal from the original and additional well or wells shall not enlarge the right conveyed by the original permit or certificate; and (d) other existing rights shall not be impaired. The department may specify an approved manner of construction and shall require a showing of compliance with the terms of the amendment, as provided in RCW 90.44.080 in the case of an original permit.

(3) The construction of a replacement or new additional well or wells at the location of the original well or wells shall be allowed without application to the department for an amendment. However, the following apply to such a replacement or new additional well: (a) The well shall tap the same body of public ground water as the original well or wells; (b) if a replacement well is constructed, the use of the original well or wells shall be discontinued and the original well or wells shall be properly decommissioned as required under chapter 18.104 RCW; (c) if a new additional well is constructed, the original well or wells may continue to be used, but the combined total withdrawal from the original and additional well or wells shall not enlarge the right conveyed by the original water use permit or certificate; (d) the construction and use of the well shall not interfere with or impair water rights with an earlier date of priority than the water right or rights for the original well or wells; (e) the replacement or additional well shall be located no closer than the original well to a well it might interfere with; (f) the department may specify an approved manner of construction of the well; and (g) the department shall require a showing of compliance with the conditions of this subsection (3).

(4) As used in this section, the "location of the original well or wells" is the area described as the point of withdrawal in the original public notice published for the application for the water right for the well.

(5) The tests provided by this section for determining whether a change or amendment may be approved by the department are modified as provided in sections 2(4) and 3 of this act for the circumstances governed by sections 2(4) and 3 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 90.03 RCW to read as follows:

The department shall process and render decisions on applications for changes or transfers under this chapter and amendments of ground water rights under chapter 90.44 RCW as a matter of higher priority than processing and rendering decisions on applications for new water rights. Any application for a new water right for which a permit decision has not been made by the department at the time a transfer, change, or amendment is approved shall not be considered an existing water right subject to analysis as to whether the application may be injured, impaired, or detrimentally affected by the transfer or change.

Sec. 8. RCW 43.62.035 and 1997 c 429 s 26 are each amended to read as follows:

(1) The office of financial management shall determine the population of each county of the state annually as of April 1st of each year and on or before July 1st of each year shall file a certificate with the secretary of state showing its determination of the population for each county. The office of financial management also shall determine the percentage increase in population for each county over the preceding ten-year period, as of April 1st, and shall file a certificate with the secretary of state by July 1st showing its determination. At least once every five years or upon the availability of decennial census data, whichever is later, the office of financial management shall prepare twenty-year growth management planning population projections required by RCW 36.70A.110 for each county that adopts a comprehensive plan under RCW 36.70A.040 and shall review these projections with such counties and the cities in those counties before final adoption. The office shall use the procedures in subsection (2) of this section in preparing these growth management planning population projections.

The county and its cities may provide to the office such information as they deem relevant to the office's projection, and the office shall consider and comment on such information before adoption. Each projection shall be expressed as a reasonable range developed within the standard state high and low projection. The middle range shall represent the office's estimate of the most likely population projection for the county. If any city or county believes that a projection will not accurately reflect actual population growth in a county, it may petition the office to revise the projection accordingly. The office shall complete the first set of ranges for every county by December 31, 1995.

(2) In preparing growth management planning population projections under subsection (1) of this section, the office of financial management shall first submit a rough draft of its projections to the departments of ecology, health, and community, trade, and economic development for their review and comment. The department of health shall review the draft projections and identify the extent to which the growth projected can be supported by water delivery service through water supply plans approved to date by the department of health.

The department of ecology shall review the draft projections and the analysis provided by the department of health and, in consultation with the department of health and the department of community, trade, and economic development, shall provide a general estimate to the office of financial management based on the records of the department, including any analyses developed under chapter 90.82 RCW, of the availability of water to support the projections of the office. The office shall adjust its projections such that they do not project growth that clearly cannot be supported by the estimates of available water provided by the department of ecology under this subsection.

(3) A comprehensive plan adopted or amended before December 31, 1995, shall not be considered to be in noncompliance with the twenty-year growth management planning population projection if the projection used in the comprehensive plan is in compliance with the range later adopted under this section.

Sec. 9. RCW 90.03.383 and 1991 c 350 s 1 are each amended to read as follows:

(1) The legislature recognizes the value of interties for improving the reliability of public water systems, enhancing their management, and more efficiently utilizing the increasingly limited resource. Given the continued growth in the most populous areas of the state, the increased complexity of public water supply management, and the trend toward regional planning and regional solutions to resource issues, interconnections of public water systems through interties provide a valuable tool to ensure reliable public water supplies for the citizens of the state. Public water systems have been encouraged in the past to utilize interties to achieve public health and resource management objectives. The legislature finds that it is in the public interest to recognize interties existing and in use as of January 1, 1991, and to have associated water rights modified by the department of ecology to reflect current use of water through those interties, pursuant to subsection (3) of this section. The legislature further finds it in the public interest to develop a coordinated process to review proposals for interties commencing use after January 1, 1991.

(2) For the purposes of this section, the following definitions shall apply:

(a) "Interties" are interconnections between public water systems permitting exchange, acquisition, or delivery of water between those systems for other than emergency supply purposes, where such exchange or delivery is within established instantaneous and annual withdrawal rates specified in the systems' existing water right permits or certificates, or contained in claims filed pursuant to chapter 90.14 RCW, and which results in better management of public water supply consistent with existing rights and obligations. Interties include interconnections between public water systems permitting exchange, acquisition, or delivery of water to serve as primary or secondary sources of supply((~~, but do not include development of new sources of supply to meet future demand~~)).

(b) "Service area" is the area designated in a water system plan or a coordinated water system plan pursuant to chapter 43.20 or 70.116 RCW respectively. When a public water system does not have a designated service area subject to the approval process of those chapters, the service area shall be the designated place of use contained in the water right permit or certificate, or contained in the claim filed pursuant to chapter 90.14 RCW.

(3) Public water systems with interties existing and in use as of January 1, 1991, or that have received written approval from the department of health prior to that date, shall file written notice of those interties with the department of health and the department of ecology. The notice may be incorporated into the public water system's five-year update of its water system plan, but shall be filed no later than June 30, 1996. The notice shall identify the location of the intertie; the dates of its first use; the purpose, capacity, and current use; the intertie agreement of the parties and the service areas assigned; and other information reasonably necessary to modify the water right permit. Notwithstanding the provisions of RCW 90.03.380 and 90.44.100, for public water systems with interties existing and in use as of January 1, 1991, the department of ecology, upon receipt of notice meeting the requirements of this subsection, shall, as soon as practicable, modify the place of use descriptions in the water right permits, certificates, or claims to reflect the actual use through such interties, provided that the place of use is within service area designations established in a water system plan approved pursuant to chapter 43.20 RCW, or a coordinated water system plan approved pursuant to chapter 70.116 RCW, and further provided that the water used is within the instantaneous and annual withdrawal rates specified in the water right permit and that no outstanding complaints of impairment to existing water rights have been filed with the department of ecology prior to September 1, 1991. Where such complaints of impairment have been received, the department of ecology shall make all reasonable efforts to resolve them in a timely manner through agreement of the parties or through available administrative remedies.

(4) Notwithstanding the provisions of RCW 90.03.380 and 90.44.100, exchange or delivery of water through interties commencing use after January 1, 1991, shall be permitted when the intertie improves overall system reliability, enhances the manageability of the systems, provides opportunities for conjunctive use, or delays or avoids the need to develop new water sources, and otherwise meets the requirements of this section, provided that each public water system's water use shall not exceed the instantaneous or annual withdrawal rate specified in its water right authorization, shall not adversely affect existing water rights, and shall not be inconsistent with state-approved plans such as water system plans or other plans which include specific proposals for construction of interties. Interties commencing use after January 1, 1991, shall not be inconsistent with regional water resource plans developed pursuant to chapter 90.54 RCW.

(5) For public water systems subject to the approval process of chapter 43.20 RCW or chapter 70.116 RCW, proposals for interties commencing use after January 1, 1991, shall be incorporated into water system plans pursuant to chapter 43.20 RCW or coordinated water system plans pursuant to chapter 70.116 RCW and submitted to the department of health and the department of ecology for review and approval as provided for in subsections (5) through (9) of this section. The plan shall state how the proposed intertie will improve overall system reliability, enhance the manageability of the systems, provide opportunities for conjunctive use, or delay or avoid the need to develop new water sources.

(6) The department of health shall be responsible for review and approval of proposals for new interties. In its review the department of health shall determine whether the intertie satisfies the criteria of subsection (4) of this section, with the exception of water rights considerations, which are the responsibility of the department of ecology, and shall determine whether the intertie is necessary to address emergent public health or safety concerns associated with public water supply.

(7) If the intertie is determined by the department of health to be necessary to address emergent public health or safety concerns associated with public water supply, the public water system shall amend its water system plan as required and shall file an application with the department of ecology to change its existing water right to reflect the proposed use of the water as described in the approved water system plan. The department of ecology shall process the application for change pursuant to RCW 90.03.380 or 90.44.100 as appropriate, except that, notwithstanding the requirements of those sections regarding notice and protest periods, applicants shall be required to publish notice one time, and the comment period shall be fifteen days from the date of publication of the notice. Within sixty days of receiving the application, the department of ecology shall issue findings and advise the department of health if existing water rights are determined to be adversely affected. If no determination is provided by the department of ecology within the sixty-day period, the department of health shall proceed as if existing rights are not adversely affected by the proposed intertie. The department of ecology may obtain an extension of the sixty-day period by submitting written notice to the department of health and to the applicant indicating a definite date by which its determination will be made. No additional extensions shall be granted, and in no event shall the total review period for the department of ecology exceed one hundred eighty days.

(8) If the department of health determines the proposed intertie appears to meet the requirements of subsection (4) of this section but is not necessary to address emergent public health or safety concerns associated with public water supply, the department of health shall instruct the applicant to submit to the department of ecology an application for change to the underlying water right or claim as necessary to reflect the new place of use. The department of ecology shall consider the applications pursuant to the provisions of RCW 90.03.380 and 90.44.100 as appropriate. If in its review of proposed interties and associated water rights the department of ecology determines that additional information is required to act on the application, the department may request applicants to provide information necessary for its decision, consistent with agency rules and written guidelines. Parties disagreeing with the decision of the department of ecology on the application for change in place of use may appeal the decision to the pollution control hearings board.

(9) The department of health may approve plans containing intertie proposals prior to the department of ecology's decision on the water right application for change in place of use. However, notwithstanding such approval, construction work on the intertie shall not begin until the department of ecology issues the appropriate water right document to the applicant consistent with the approved plan.

(10) An intertie shall not be used to deliver a primary or secondary supply of water to a receiving system on a temporary basis unless the terms of the intertie agreement specify the source of the water that will be used by the receiving system to replace the water delivered on the temporary basis and provide that replacement water will be available for delivery to or use by the receiving system before delivery by the supplying system under the agreement is terminated. However, if a primary or secondary supply of water is delivered to a receiving system on a temporary basis by means of an intertie on the effective date of this section and the agreement between the supplying system and receiving system does not contain such provision for such a replacement supply of water for the receiving system, the delivery of the water by the supplying system to the receiving system shall not be terminated until the agreement is modified to establish such provisions and such replacement water is available for delivery to or use by the receiving system.

Sec. 10. RCW 90.03.345 and 1979 ex.s. c 216 s 7 are each amended to read as follows:

(1) The establishment of reservations of water for agriculture, hydroelectric energy, municipal, industrial, and other beneficial uses under RCW 90.54.050(1) or minimum flows or levels under RCW 90.22.010 or 90.54.040 shall constitute appropriations within the meaning of this chapter with priority dates as of the effective dates of their establishment. Whenever an application for a permit to make beneficial use of public waters embodied in a reservation, established after September 1, 1979, is filed with the department of ecology after the effective date of such reservation, the priority date for a permit issued pursuant to an approval by the department of ecology of the application shall be the effective date of the reservation.

(2) A water right for instream use may be held by the state through the establishment of a reservation or minimum flow or level as described in subsection (1) of this section or may be held by the state as a trust water right under chapter 90.38 or 90.42 RCW. A water right for instream use may also be established through the approval of a change, transfer, or amendment of an existing water right under this chapter or chapter 90.44 RCW in the manner prescribed for a water right for any other use. A water right for an instream use established through such a change, transfer, or amendment may be held as an appropriative right by any person or entity.

Sec. 11. RCW 90.14.140 and 1998 c 258 s 1 are each amended to read as follows:

(1) For the purposes of RCW 90.14.130 through 90.14.180, "sufficient cause" shall be defined as the nonuse of all or a portion of the water by the owner of a water right for a period of five or more consecutive years where such nonuse occurs as a result of:

(a) Drought, or other unavailability of water;

(b) Active service in the armed forces of the United States during military crisis;

(d) The operation of legal proceedings;

(e) Federal or state agency leases of or options to purchase lands or water rights which preclude or reduce the use of the right by the owner of the water right;

(f) Federal laws imposing land or water use restrictions either directly or through the voluntary enrollment of a landowner in a federal program implementing those laws, or acreage limitations, or production quotas.

(2) Notwithstanding any other provisions of RCW 90.14.130 through 90.14.180, there shall be no relinquishment of any water right:

(a) If such right is claimed for power development purposes under chapter 90.16 RCW and annual license fees are paid in accordance with chapter 90.16 RCW;

(b) If such right is used for a standby or reserve water supply to be used in time of drought or other low flow period so long as withdrawal or diversion facilities are maintained in good operating condition for the use of such reserve or standby water supply;

(c) If such right is claimed for a determined future development to take place either within fifteen years of July 1, 1967, or the most recent beneficial use of the water right, whichever date is later;

(d) If such right is claimed for municipal water supply purposes under chapter 90.03 RCW;

(e) If such waters are not subject to appropriation under the applicable provisions of RCW 90.40.030; ((or))

(f) If such right or portion of the right is leased to another person for use on land other than the land to which the right is appurtenant as long as the lessee makes beneficial use of the right in accordance with this chapter and a transfer or change of the right has been approved by the department in accordance with RCW 90.03.380, 90.03.383, 90.03.390, or 90.44.100; or

(g) If such right is held for instream use.

Sec. 12. RCW 90.38.020 and 1989 c 429 s 3 are each amended to read as follows:

(1) The department may acquire water rights, including but not limited to storage rights, by purchase, gift, or other appropriate means other than by condemnation, from any person or entity or combination of persons or entities. Once acquired, such rights are trust water rights. A water right acquired by the state that is expressly conditioned to limit its use to instream purposes shall be administered as a trust water right in compliance with that condition.

(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.

(4) Any water right conveyed to the trust water right system as a gift shall be managed by the department for public purposes to ensure that the gift qualifies as a deduction from federal income taxation for the person or entity conveying the gift.

Sec. 13. RCW 90.42.080 and 1993 c 98 s 4 are each amended to read as follows:

(1) The state may acquire all or portions of existing water rights, by purchase, gift, or other appropriate means other than by condemnation, from any person or entity or combination of persons or entities. Once acquired, such rights are trust water rights. A water right acquired by the state that is expressly conditioned to limit its use to instream purposes shall be administered as a trust water right in compliance with that condition.

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

(3) Trust water rights may be acquired by the state on a temporary or permanent basis.

(4) The provisions of RCW 90.03.380 and 90.03.390 apply to transfers of water rights under this section.

(5) No funds may be expended for the purchase of water rights by the state pursuant to this section unless specifically appropriated for this purpose by the legislature.

(6) Any water right conveyed to the trust water right system as a gift shall be managed by the department for public purposes to ensure that the gift qualifies as a deduction from federal income taxation for the person or entity conveying the gift.

Sec. 14. RCW 90.46.010 and 1997 c 444 s 5 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Greywater" means wastewater having the consistency and strength of residential domestic type wastewater. Greywater includes wastewater from sinks, showers, and laundry fixtures, but does not include toilet or urinal waters.

(2) "Land application" means application of treated effluent for purposes of irrigation or landscape enhancement for residential, business, and governmental purposes.

(3) "Person" means any state, individual, public or private corporation, political subdivision, governmental subdivision, governmental agency, municipality, copartnership, association, firm, trust estate, or any other legal entity whatever.

(4) "Reclaimed water" means effluent derived in any part from sewage from a wastewater treatment system that has been adequately and reliably treated, so that as a result of that treatment, it is suitable for a beneficial use or a controlled use that would not otherwise occur and is no longer considered wastewater.

(5) "Sewage" means water-carried human wastes from residences, buildings, industrial and commercial establishments, or other places, together with such ground water infiltration, surface waters, or industrial wastewater as may be present.

(6) "User" means any person who uses reclaimed water.

(7) "Wastewater" means water and wastes discharged from homes, businesses, and industry to the sewer system.

(8) "Beneficial ((~~use~~)) reuse" means the use of reclaimed water((~~, that has been transported from the point of production to the point of use without an intervening discharge to the waters of the state,~~)) for a beneficial purpose, including but not limited to land application, replenishment of ground water, wetland enhancement, and streamflow augmentation providing increased instream flows for fish.

(9) "Direct recharge" means the controlled subsurface addition of water directly to the ground water basin that results in the replenishment of ground water.

(10) "Ground water recharge criteria" means the contaminant criteria found in the drinking water quality standards adopted by the state board of health pursuant to chapter 43.20 RCW and the department of health pursuant to chapter 70.119A RCW.

(11) "Planned ground water recharge project" means any reclaimed water project designed for the purpose of recharging ground water, via direct recharge or surface percolation.

(12) "Reclamation criteria" means the criteria set forth in the water reclamation and reuse interim standards and subsequent revisions adopted by the department of ecology and the department of health.

(13) "Streamflow augmentation" means the discharge of reclaimed water to rivers and streams of the state or other surface water bodies, but not wetlands.

(14) "Surface percolation" means the controlled application of water to the ground surface for the purpose of replenishing ground water.

(15) "Wetland or wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted to life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands regulated under this chapter shall be delineated in accordance with the manual adopted by the department of ecology pursuant to RCW 90.58.380.

(16) "Constructed beneficial use wetlands" means those wetlands intentionally constructed on nonwetland sites to produce or replace natural wetland functions and values. Constructed beneficial use wetlands are considered "waters of the state."

(17) "Constructed treatment wetlands" means those wetlands intentionally constructed on nonwetland sites and managed for the primary purpose of wastewater or storm water treatment. Constructed treatment wetlands are considered part of the collection and treatment system and are not considered "waters of the state."

Sec. 15. RCW 90.46.080 and 1997 c 444 s 6 are each amended to read as follows:

(1) Reclaimed water may be beneficially ((~~used~~)) reused for surface percolation provided the reclaimed water meets the ground water recharge criteria as measured in ground water beneath or down gradient of the recharge project site, and has been incorporated into a sewer or water comprehensive plan, as applicable, adopted by the applicable local government and approved by the department of health or department of ecology as applicable.

(2) If the state ground water recharge criteria as defined by RCW 90.46.010 do not contain a standard for a constituent or contaminant, the department of ecology shall establish a discharge limit consistent with the goals of this chapter.

(3) Reclaimed water that does not meet the ground water recharge criteria may be beneficially ((~~used~~)) reused for surface percolation where the department of ecology, in consultation with the department of health, has specifically authorized such use at such lower standard.

Sec. 16. RCW 90.46.090 and 1997 c 444 s 7 are each amended to read as follows:

(1) Reclaimed water may be beneficially ((~~used~~)) reused for discharge into constructed beneficial use wetlands and constructed treatment wetlands provided the reclaimed water meets the class A or B reclaimed water standards as defined in the reclamation criteria, and the discharge is incorporated into a sewer or water comprehensive plan, as applicable, adopted by the applicable local government and approved by the department of health or department of ecology as applicable.

(2) Reclaimed water that does not meet the class A or B reclaimed water standards may be beneficially ((~~used~~)) reused for discharge into constructed treatment wetlands where the department of ecology, in consultation with the department of health, has specifically authorized such use at such lower standards.

(3) The department of ecology and the department of health must develop appropriate standards for discharging reclaimed water into constructed beneficial use wetlands and constructed treatment wetlands. These standards must be considered as part of the approval process under subsections (1) and (2) of this section.

NEW SECTION. Sec. 17. A new section is added to chapter 82.16 RCW to read as follows:

This chapter does not apply to amounts received for water services supplied by an entity that holds a permit under RCW 90.46.030 when the water supplied is reclaimed water as defined in RCW 90.46.010.

NEW SECTION. Sec. 18. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 shall not apply to sales of machinery and equipment used directly in transmitting, distributing, or storing reclaimed water as defined in RCW 90.46.010, or to sales of or charges made for labor and services rendered in respect to installing such machinery and equipment. As used in this section, "machinery and equipment" means pipelines, outfalls, conduits, pumping stations, instrumentation and monitoring equipment, structures, machinery, equipment, accessories, and all other construction, devices, appurtenances, and facilities used for the primary purpose of conducting reclaimed water from a wastewater treatment system for a beneficial use, including the augmentation of streamflow for fish.

NEW SECTION. Sec. 19. A new section is added to chapter 39.34 RCW to read as follows:

By agreement under this chapter, the director of the department of ecology and the director of the department of fish and wildlife are each authorized to delegate and accept monitoring and data collection powers or functions to or from the other department. The directors shall enter such an agreement to provide for reporting by the employees of each of the departments to the other department regarding potential violations of the other department's rules or of the laws it administers.

Sec. 20. RCW 90.03.060 and 1987 c 109 s 69 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section:

(a) Water masters shall be appointed by the department whenever it shall find the interests of the state or of the water users to require them((.)); and

(b) The districts for or in which the water masters serve shall be designated water master districts, which shall be fixed from time to time by the department, as required, and they shall be subject to revision as to boundaries or to complete abandonment as local conditions may indicate to be expedient, the spirit of this provision being that no district shall be created or continued where the need for the same does not exist.

(2) The department shall appoint a water master for each watershed management area for which a plan has been adopted by a planning unit and by the counties with territory in the watershed management area under RCW 90.82.130.

(3) Water masters shall be supervised by the department, shall be compensated for services from funds of the department, and shall be technically qualified to the extent of understanding the elementary principals of hydraulics and irrigation, and of being able to make water measurements in streams and in open and closed conduits of all characters, by the usual methods employed for that purpose. Counties and municipal and public corporations of the state are authorized to contribute moneys to the department to be used as compensation to water masters in carrying out their duties. All such moneys received by the department shall be used exclusively for said purpose.