S-1776

AN ACT Relating to water resource management and facilitating fishery protection and recovery; amending RCW 90.54.020, 90.22.010, 90.22.020, 75.20.050, 90.42.080, 90.03.255, 90.44.055, 36.94.010, 36.94.020, 36.89.010, 36.89.030, 35.67.010, 85.38.180, 86.15.010, 86.15.100, 90.54.180, 90.03.290, 43.20.230, 90.48.495, 90.03.360, 90.44.450, 90.46.030, 90.46.040, 90.46.120, 90.46.130, 90.03.330, 58.17.110, 90.58.080, 90.82.070, 75.20.106, 77.15.300, 90.03.600, 43.21B.300, 90.08.040, 90.08.060, 90.03.070, 43.99E.015, and 43.99E.030; reenacting and amending RCW 90.54.050; adding new sections to chapter 90.03 RCW; adding new sections to chapter 70.119A RCW; adding a new section to chapter 58.17 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35A.21 RCW; adding a new section to chapter 36.01 RCW; adding a new section to chapter 90.54 RCW; adding new sections to chapter 90.46 RCW; adding a new section to chapter 90.44 RCW; adding a new section to chapter 36.70A RCW; adding a new section to chapter 90.58 RCW; adding a new section to chapter 43.27A RCW; adding a new section to chapter 90.42 RCW; creating new sections; repealing RCW 90.22.060; prescribing penalties; making an appropriation; and providing an expiration date.

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

TABLE OF CONTENTS

PART I. FINDINGS, INTENT, AND FUNDAMENTALS..................... 2

PART II. STREAMFLOW............................................ 8

PART III. WATER CONSERVATION.................................. 24

PART IV. RECLAIMED WATER...................................... 35

PART V. WATER RIGHT TRANSFERS................................. 39

PART VI. PUBLIC WATER SYSTEMS................................. 40

PART VII. INTEGRATED WATER SUPPLY MANAGEMENT.................. 47

PART VIII. LAND USE........................................... 47

PART IX. ENFORCEMENT.......................................... 51

PART X. FUTURE ACTION......................................... 59

PART XI. FUNDING.............................................. 62

PART XII. MISCELLANEOUS....................................... 65

PART I. FINDINGS, INTENT, AND FUNDAMENTALS

NEW SECTION. Sec. 101. FINDINGS. (1) Many salmon and trout species are continuing a long-term decline, to the point where many are approaching extinction and, therefore, are now listed or being considered for listing as threatened or endangered by the federal government under the endangered species act.

(2) Historically abundant, harvestable levels of salmon and trout are fundamentally important to the people of the state of Washington because they are integral to our rich heritage of natural resources and our identity as a state, they are a key component of our traditional economic base, they are an inspiration in our diverse cultures, and they are a major stimulus for recreation.

(3) Citizens want to respond to the threat of extinction, as represented by these actual and potential listings, in order to protect and restore these fisheries and to avoid or minimize negative actions by federal agencies as they implement their responsibilities under the endangered species act.

(4) Many factors appear to be causing the decline and danger of extinction, including insufficient water in streams, water quality degradation, instream fish habitat losses, overharvest, past hatchery practices, predation, ocean conditions, and community development practices.

(5) This unprecedented situation provides an opportunity for the state to review its laws concerning water, the essential habitat requirement of salmon and trout, and out-of-stream activities that affect water, to reassess the impact of these laws, and to revise and update them as needed.

(6) Current state water law should be sufficiently adaptable and flexible to improve our ability to meet the needs of fish protection and recovery and the needs of a changing, growing population and economy.

(7) Water law in its totality is exceptionally complex and involves state statutes and rules, federal statutes and regulations, tribal reserved and treaty rights, federal reserved rights, regulatory decisions by the federal energy regulatory commission, case law expressed in numerous state and federal court decisions, and negotiated settlements.

(8) The Washington state water code is based on doctrines generally referred to as Western water law, which include the following:

(a) All waters of the state are owned by the people in common;

(b) State-issued water rights are usufructuary rights, meaning that they confer a right to use and not a right to own;

(c) State-issued water rights are assigned an order of priority for use of available water, based on first in time, first in right;

(d) Water rights are held in perpetuity, unless the holder of the right fails to put the water to beneficial use for five or more years;

(e) Water must be used for beneficial purposes, as defined in statute; and

(f) State-issued water rights are issued for specific amounts, specific locations, and specific uses.

(9) Beneficial uses of water, which are not ranked, include habitat for fish. Instream flows are protected by state and federal law. Any instream flows set by the state have a priority date as of their enactment.

(10) Since territorial times, the people of Washington have enacted laws intended to protect abundant fish runs.

(11) Numerous Native American tribes in Washington have treaty rights to harvest fish, which rights imply that the waters will not be used or degraded in a manner that threatens the health or survival of fish. Many tribes manage fisheries and have developed a high level of expertise in fisheries resource management.

(12) Citizens, local governments, tribes, and state and federal agencies have taken innumerable, positive actions to protect and restore fisheries resources throughout the state, with a growing emphasis on local involvement and cooperation.

(13) Adequate streamflows and lake levels are necessary for protecting and recovering salmon stocks and for achieving the state's high standards for protecting perennial water systems, as declared in the 1971 water resource fundamentals. Such flow levels must be expeditiously adopted and be based upon methods employing the best available science, with the highest priority being given to streams and rivers in which salmon are in danger of extinction. Once levels are established, measures must be implemented to ensure that flows are not diminished below these levels, and that, where necessary, measures be taken to restore streamflows to these established levels.

(14) Clearer law and more innovative approaches are needed for reallocation of water use through transfers and changes, to provide opportunities to address streamflow augmentation, salmon recovery, and for water supply needs for growing communities and agriculture, and at the same time, to protect all affected interests.

(15) Watershed-specific information is required to address water use, planning, and management in each watershed, because each has unique characteristics in terms of water resources, hydrological characteristics, fish populations, other natural resources, demographics, economic activity, and legal history.

NEW SECTION. Sec. 102. INTENT. Through this act, the legislature intends to:

(1) Improve streamflow for fish;

(2) Provide improved tools and incentives to prevent extinction of declining salmon and trout species and to better meet the water needs of growing and changing communities;

(3) Provide an effective component of the state's response to listings and potential listings under the federal endangered species act;

(4) Promote greater efforts to conserve and reuse water;

(5) Begin the process of updating and clarifying the state's water code to provide additional state authority and more policy guidance to administrative agencies to:

(a) Establish priorities to address critical needs such as restoration of depressed salmon and trout stocks;

(b) Provide improved mechanisms for responding to changing economic and demographic characteristics of the state;

(d) Improve opportunities for innovative changes and transfers of water rights;

(e) Make the water code more readable and understandable;

(f) Assure that recognized water rights and uses are protected;

(g) Improve enforcement; and

(h) Improve mitigation for negative consequences of diversions and withdrawals;

(6) Retain the doctrines known as Western water law and provide for better enforcement of them;

(7) Promote the spirit of cooperation and information sharing among all who rely on common water resources, both for instream and out-of-stream interests, and between tribal and nontribal entities;

(8) Encourage understanding of tribal reserved and treaty rights relating to water and fish;

(9) Promote more public understanding and involvement in water resource policy and its administration;

(10) Address special challenges and priorities for the agricultural sector, urban growth water supply needs, and fisheries interests;

(11) Protect all existing water rights;

(12) Improve collection, management, and accessibility of information relating to water resources, water rights, and water rights transfers; and

(13) Encourage volunteer efforts to cooperate in achieving water resources needs.

Sec. 103. RCW 90.54.020 and 1997 c 442 s 201 are each amended to read as follows:

Utilization and management of the waters of the state shall be guided by the following general declaration of fundamentals:

(1) Uses of water for domestic, stock watering, industrial, commercial, agricultural, irrigation, hydroelectric power production, mining, fish and wildlife maintenance and enhancement, recreational, and thermal power production purposes, and preservation of environmental and aesthetic values, and all other uses compatible with the enjoyment of the public waters of the state, are declared to be beneficial.

(2) Allocation of waters among potential uses and users shall be based generally on the securing of the maximum net benefits for the people of the state. Maximum net benefits shall constitute total benefits less costs including opportunities lost.

(3) The quality of the natural environment shall be protected and, where possible, enhanced as follows:

(a) Perennial rivers and streams of the state shall be retained with base flows necessary to provide for preservation of wildlife, fish, scenic, aesthetic and other environmental values, and navigational values. Lakes and ponds shall be retained substantially in their natural condition. Withdrawals of water which would conflict therewith shall be authorized only in those situations where it is clear that overriding considerations of the public interest will be served.

(b) Waters of the state shall be of high quality. Regardless of the quality of the waters of the state, all wastes and other materials and substances proposed for entry into said waters shall ((~~be provided with~~)) undergo, before entry, all known, available, and reasonable methods of treatment ((~~prior to entry~~)) needed to prevent the pollution of waters of the state. Notwithstanding that standards of quality established for the waters of the state would not be violated, wastes and other materials and substances shall not be allowed to enter such waters which will reduce the existing quality thereof, except in those situations where it is clear that overriding considerations of the public interest will be served. Technology-based effluent limitations or standards for discharges for municipal water treatment plants located on the Chehalis, Columbia, Cowlitz, Lewis, or Skagit river shall be adjusted to reflect credit for substances removed from the plant intake water if:

(i) The municipality demonstrates that the intake water is drawn from the same body of water into which the discharge is made; and

(ii) The municipality demonstrates that no violation of receiving water quality standards or appreciable environmental degradation will result.

(c) Protection and restoration of streamflows adequate to support sustainable and harvestable populations of salmon and trout stocks shall be a high priority in the planning and management of the state's water resources.

(4) The development of multipurpose water storage facilities shall be a high priority for programs of water allocation, planning, management, and efficiency. The department, other state agencies, local governments, and planning units formed under ((~~section 107 or 108 of this act~~)) chapter 90.82 RCW shall evaluate the potential for the development of new storage projects and the benefits and effects of storage in reducing damage to stream banks and property, increasing the use of land, providing water for municipal, industrial, agricultural, power generation, and other beneficial uses, and improving ((~~stream flow~~)) streamflow regimes for fisheries and other instream uses.

(5) Adequate and safe supplies of water shall be preserved and protected in potable condition to satisfy human domestic needs.

(6) Multiple-purpose impoundment structures are to be preferred over single-purpose structures. Due regard shall be given to means and methods for protection of fishery resources in the planning for and construction of water impoundment structures and other artificial obstructions.

(7) In areas that have threatened or endangered species listed or proposed for listing under the federal endangered species act or salmonid stocks categorized as critical or depressed under the state salmon and steelhead stock inventory and where water can be used to protect or restore streamflows that are needed by such species or stocks, or in urban growth areas, the state and local governments shall carry out practices of conservation as they relate to the use of the waters of the state. In all other areas of the state, the federal, state, and local governments, and individuals, corporations, groups, and other entities shall be encouraged to carry out practices of conservation as they relate to the use of the waters of the state. In addition to traditional development approaches, improved water use efficiency and conservation, including reclaiming municipal and industrial effluent, shall be emphasized in the management of the state's water resources and ((~~in some cases~~)) will be a potential new source of water with which to meet future needs throughout the state.

(8) Development of water supply systems, whether publicly or privately owned, which provide water to the public generally in regional areas within the state shall be encouraged. Development of water supply systems for single or multiple domestic use which will not serve the public generally shall be discouraged where water supplies are available from water systems serving the public.

(9) Full recognition shall be given in the administration of water allocation and use programs to the natural interrelationships of surface and ground waters.

(10) Expressions of the public interest will be sought at all stages of water planning and allocation discussions.

(11) Water management programs, including but not limited to, water quality, flood control, drainage, erosion control and storm runoff are deemed to be in the public interest.

PART II. STREAMFLOW

Sec. 201. RCW 90.22.010 and 1997 c 32 s 4 are each amended to read as follows:

(1) The department of ecology ((~~may~~)) shall establish minimum water flows or levels for streams, lakes or other public waters for the purposes of protecting fish, game, birds or other wildlife resources, or recreational or aesthetic values of said public waters whenever it appears to be in the public interest to establish the same. In addition, the department of ecology shall, when requested by the department of fish and wildlife to protect fish, game or other wildlife resources under the jurisdiction of the requesting state agency, or if the department of ecology finds it necessary to preserve water quality, establish such minimum flows or levels as are required to protect the resource or preserve the water quality described in the request or determination. Any request submitted by the department of fish and wildlife shall include a statement setting forth the need for establishing a minimum flow or level. When the department acts to preserve water quality, it shall include a similar statement with the proposed rule filed with the code reviser. This section shall not apply to waters artificially stored in reservoirs, provided that in the granting of storage permits by the department of ecology in the future, full recognition shall be given to downstream minimum flows, if any there may be, which have ((~~theretofore been established hereunder~~)) previously been established under this chapter or chapter 90.54 RCW.

(2) The department of ecology shall use instream flow evaluation methods that incorporate the best available science appropriate for each situation in establishing flows or levels under this section. In developing and selecting methodologies for use in determining and establishing flows or levels for the recovery of salmon and trout populations, and in developing criteria to select methods to apply in each situation, the department shall consult with the department of fish and wildlife, Indian tribes, and the science panel created under RCW 75.46.050, and shall consult periodically with them in updating methodologies. The review of existing methodologies or consideration of proposed revisions shall not be the basis for delay in proceeding to comply with the priority establishment of flows or levels under subsection (3) of this section. The department may select from among several acceptable methodologies in establishing flows or levels for a specific stream or lake, based upon considerations such as available funding and staffing, the depletion of the streamflows, and the safety of personnel conducting the evaluation.

(3) For the period beginning July 1, 1999, through June 30, 2003, the department of ecology shall place a high priority in exercising the authority under this section upon the adoption of flows or levels for the recovery of depressed salmon and trout populations. To this end and in consultation with the salmon recovery office and with Indian tribes, the department shall establish a schedule for initiating and completing the establishment of flows or levels for state waters that support salmon and trout populations listed or proposed for listing under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical. The schedule shall be consistent with the state's salmon recovery strategy and shall establish a priority for early action on water bodies on which such salmon or trout stocks are dependent and in which inadequate flows or levels have been identified as a limiting factor on recovery. Where planning units have elected to make recommendations regarding streamflow setting as part of a watershed planning program authorized in RCW 90.82.080, the department, before adoption or revision of a flow rule, shall collaborate with the planning unit to develop a schedule for finalizing those recommendations that is consistent with the goals of the state's salmon recovery strategy and the goals of this subsection. The schedule shall include the review and revision of existing flows or levels when determined by the department to fail to meet the standards of this section. The schedule shall adopt as a goal the establishment or revision of flows or levels by June 30, 2001, for all waters of the state that support salmon or trout populations that as of July 1, 1999, are listed or proposed for listing under the federal endangered species act or that the department of fish and wildlife has determined are critical or depressed, and for which flows or levels in such waters have been identified as a limiting factor on recovery. In the event that insufficient resources have been provided to act on all such water bodies within this timeframe, the schedule shall place the highest priority upon those water bodies in watersheds that are also characterized by high growth.

Sec. 202. RCW 90.22.020 and 1994 c 264 s 87 are each amended to read as follows:

(1) The department shall consult regarding proposed minimum flows or levels with the department of fish and wildlife, the national marine fisheries service, the United States fish and wildlife service, and any Indian tribes having adjudicated fishing rights to fish dependent upon the stream or streams for which minimum flows are proposed to be established under this chapter. The department shall take into full account the recommendations of the consulted agencies and explain in writing any departure from the recommendations of the consulted agencies.

(2) Flows or levels authorized for establishment under RCW 90.22.010, or subsequent modification thereof by the department shall be provided for through the adoption of rules. Before the establishment or modification of a water flow or level for any stream or lake or other public water, the department shall hold a public hearing in the county in which the stream, lake, or other public water is located. If it is located in more than one county the department shall determine the location or locations therein and the number of hearings to be conducted. Notice of the hearings shall be given by publication in a newspaper of general circulation in the county or counties in which the stream, lake, or other public waters is located, once a week for two consecutive weeks before the hearing. The notice shall include the following:

((~~(1)~~)) (a) The name of each stream, lake, or other water source under consideration;

((~~(2)~~)) (b) The place and time of the hearing;

((~~(3)~~)) (c) A statement that any person, including any private citizen or public official, may present his or her views either orally or in writing.

(3) Notice of the hearing shall also be served upon the administrators of the state departments of social and health services, natural resources, fish and wildlife, and transportation and upon the administrators of the national marine fisheries service, the United States fish and wildlife service, and any Indian tribes having adjudicated fishing rights affected by the proposed rule.

Sec. 203. RCW 90.54.050 and 1997 c 439 s 2 and 1997 c 32 s 3 are each reenacted and amended to read as follows:

(1) In conjunction with the programs provided for in RCW 90.54.040(1), whenever it appears necessary to the director in carrying out the policy of this chapter, the department may by rule adopted pursuant to chapter 34.05 RCW:

((~~(1)~~)) (a) Establish base flows to preserve instream resources in accordance with RCW 90.54.020(3)(a);

(b) Reserve and set aside waters for beneficial utilization in the future((,)); and

((~~(2)~~)) (c) When sufficient information and data are lacking to allow for the making of sound decisions, withdraw various waters of the state from additional appropriations until such data and information are available.

(2) The department shall consult regarding proposed minimum flows or levels with the department of fish and wildlife, the national marine fisheries service, the United States fish and wildlife service, and any Indian tribes having adjudicated fishing rights to fish dependent upon the stream or streams for which minimum flows are proposed to be established under this chapter. The department shall take into full account the recommendations of the consulted agencies and explain in writing any departure from the recommendations of the consulted agencies.

(3) Before proposing the adoption of rules to withdraw waters of the state from additional appropriation, the department shall consult with the standing committees of the house of representatives and the senate having jurisdiction over water resource management issues.

(4) Prior to the adoption of a rule under this section, the department shall conduct a public hearing in each county in which waters relating to the rule are located. The public hearing shall be preceded by a notice placed in a newspaper of general circulation published within each of said counties. Rules adopted hereunder shall be subject to review in accordance with the provisions of RCW 34.05.240.

Sec. 204. RCW 75.20.050 and 1993 sp.s. c 2 s 29 are each amended to read as follows:

It is the policy of this state that a flow of water sufficient to support game fish and food fish populations be maintained at all times in the streams of this state.

The director of ecology shall give the director of fish and wildlife notice of each application for a permit to divert or store water or for approval of a change or an amendment under RCW 90.03.380 or 90.44.100. The same notice shall be given to the director of the office of salmon recovery when the application relates to a water source included within the designated critical habitat of a fish stock listed or proposed for listing under the federal endangered species act. The directors ((~~has~~)) have thirty days after receiving the notice to state his or her objections to the application. The permit shall not be issued until the thirty-day period has elapsed.

The director of ecology may refuse to issue a permit if, in the opinion of ((~~the~~)) a director, issuing the permit might result in lowering the flow of water in a stream below the flow necessary to adequately support food fish and game fish populations in the stream. Alternatively, the director of ecology may issue the permit with conditions, including flow level restrictions upon the season or quantity of use, to prevent withdrawals under the permit from lowering the flow below that flow necessary to adequately support food fish and game fish populations in the stream.

The provisions of this section shall in no way affect existing water rights.

NEW SECTION. Sec. 205. A new section is added to chapter 90.03 RCW to read as follows:

INSTREAM BENEFICIAL USE‑-HOLDERS OF RIGHT. A right to the instream beneficial use of water may be held by any person or by a unit of state or local government.

Sec. 206. 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, lease, gift, financing water conservation, reclaiming water, or as a consequence of the artificial storage and discharge of ground water or by 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 upon the use being limited 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.~~))

NEW SECTION. Sec. 207. A new section is added to chapter 90.03 RCW to read as follows:

CONTRACTING FOR ACQUISITION OF RIGHTS. Using funds specifically appropriated for the purpose of the acquisition of temporary or permanent rights to divert or withdraw water, the department may contract with any person or entity capable and willing to acquire such rights, if the contract provides that for the term of the acquisition the right will be maintained for the benefit of the public for the maintenance and augmentation of streamflows.

Sec. 208. RCW 90.03.255 and 1997 c 360 s 2 are each amended to read as follows:

The department shall, when evaluating an application for a water right, transfer, or change filed pursuant to RCW ((~~90.03.250~~)) 90.03.260 or 90.03.380 that includes provision for any water impoundment, mitigation, or other resource management technique, take into consideration the benefits and costs, including environmental benefits and adverse effects, of any water impoundment, mitigation, or other resource management technique that is included as a component of the application. The department's consideration shall extend to any increased water supply, or mitigation for any impairment to existing rights or adverse environmental effects to habitat for salmon or trout populations listed or proposed to be listed under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical, that results from the impoundment, mitigation, or other resource management technique, including but not limited to any recharge of ground water that may occur, as a means of making water available or otherwise offsetting the impact of the diversion of surface water proposed in the application for the water right, transfer, or change. For applications that would impair adopted minimum instream flows or otherwise adversely affect habitat for salmon or trout populations listed or proposed to be listed under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical, the department may consider and approve a provision in an application that would provide mitigation unrelated to streamflows where such provisions would, on balance, provide a net environmental benefit to fish recovery. The department's approval shall be based on consideration of any identified limiting factors for fish recovery and on accepted scientific principles of natural resource management, and shall not impair existing water rights. Provision for an impoundment, mitigation, or other resource management technique in an application shall be made solely at the discretion of the applicant and shall not otherwise be made by the department as a condition for approving an application that does not include such provision.

This section does not lessen, enlarge, or modify the rights of any riparian owner, or any existing water right acquired by appropriation or otherwise.

Sec. 209. RCW 90.44.055 and 1997 c 360 s 3 are each amended to read as follows:

The department shall, when evaluating an application for a water right or an amendment filed pursuant to RCW 90.44.050 or 90.44.100 that includes provision for any water impoundment, mitigation, or other resource management technique, take into consideration the benefits and costs, including environmental effects, of any water impoundment, mitigation, or other resource management technique that is included as a component of the application. The department's consideration shall extend to any increased water supply, or mitigation for any impairment to existing rights or adverse environmental effects to habitat for salmon or trout populations listed or proposed to be listed under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical, that results from the impoundment or other resource management technique, including but not limited to any recharge of ground water that may occur, as a means of making water available or otherwise offsetting the impact of the withdrawal of ground water proposed in the application for the water right or amendment in the same water resource inventory area. For applications that would impair adopted minimum instream flows or otherwise adversely affect habitat for salmon or trout populations listed or proposed to be listed under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical, the department may consider and approve a provision in an application that would provide mitigation unrelated to streamflows where such provisions would, on balance, provide a net environmental benefit to fish recovery. The department's approval shall be based on consideration of any identified limiting factors for fish recovery and on accepted scientific principles of natural resource management, and shall not impair existing water rights. Provision for an impoundment or other resource management technique in an application shall be made solely at the discretion of the applicant and shall not be made by the department as a condition for approving an application that does not include such provision.

This section does not lessen, enlarge, or modify the rights of any riparian owner, or any existing water right acquired by appropriation or otherwise.

Sec. 210. RCW 36.94.010 and 1997 c 447 s 10 are each amended to read as follows:

As used in this chapter:

(1) A "system of sewerage" means and may include any or all of the following:

(a) Sanitary sewage collection, treatment, and/or disposal facilities and services, including without limitation on-site or off-site sanitary sewerage facilities, inspection services and maintenance services for private or public on-site systems, or any other means of sewage treatment and disposal approved by the county;

(b) Combined sanitary sewage disposal and storm or surface water drains and facilities;

(d) Outfalls for storm drainage or sanitary sewage and works, plants, and facilities for storm drainage or sanitary sewage treatment and disposal, and rights and interests in property relating to the system;

(e) Combined water and sewerage systems;

(f) Point and nonpoint water pollution monitoring programs that are directly related to the sewerage facilities and programs operated by a county;

(g) Public restroom and sanitary facilities;

(h) The facilities and services authorized in RCW 36.94.020; and

(i) Any combination of or part of any or all of such facilities.

(2) A "system of water" means and includes:

(a) A water distribution system, including dams, reservoirs, aqueducts, plants, pumping stations, transmission and lateral distribution lines and other facilities for distribution of water;

(b) A combined water and sewerage system;

(3) A "sewerage and/or water general plan" means a general plan for a system of sewerage and/or water for the county which shall be an element of the comprehensive plan established by the county pursuant to RCW 36.70.350(6) and/or chapter 35.63 RCW, if there is such a comprehensive plan.

(a) A sewerage general plan shall include the general location and description of treatment and disposal facilities, trunk and interceptor sewers, pumping stations, monitoring and control facilities, channels, local service areas and a general description of the collection system to serve those areas, a description of on-site sanitary sewerage system inspection services and maintenance services, and other facilities and services as may be required to provide a functional and implementable plan, including preliminary engineering to assure feasibility. The plan may also include a description of the regulations deemed appropriate to carrying out surface drainage plans.

(b) A water general plan shall include the general location and description of water resources to be utilized, wells, treatment facilities, transmission lines, storage reservoirs, pumping stations, and monitoring and control facilities as may be required to provide a functional and implementable plan.

(c) Water and/or sewerage general plans shall include preliminary engineering in adequate detail to assure technical feasibility and, to the extent then known, shall further discuss the methods of distributing the cost and expense of the system and shall indicate the economic feasibility of plan implementation. The plans may also specify local or lateral facilities and services. The sewerage and/or water general plan does not mean the final engineering construction or financing plans for the system.

(4) "Municipal corporation" means and includes any city, town, metropolitan municipal corporation, any public utility district which operates and maintains a sewer or water system, any sewer, water, diking, or drainage district, any diking, drainage, and sewerage improvement district, and any irrigation district.

(5) A "private utility" means and includes all utilities, both public and private, which provide sewerage and/or water service and which are not municipal corporations within the definition of this chapter. The ownership of a private utility may be in a corporation, nonprofit or for profit, in a cooperative association, in a mutual organization, or in individuals.

(6) "Board" means one or more boards of county commissioners and/or the legislative authority of a home rule charter county.

Sec. 211. RCW 36.94.020 and 1997 c 447 s 11 are each amended to read as follows:

The construction, operation, ((~~and~~)) maintenance, restoration, and rehabilitation of a system of sewerage and/or water is a county purpose. Subject to the provisions of this chapter, every county has the power, individually or in conjunction with another county or counties to adopt, provide for, accept, establish, condemn, purchase, construct, add to, operate, ((~~and~~)) maintain, restore, and rehabilitate a system or systems of sanitary and storm sewers, including outfalls, interceptors, plans, and facilities and services necessary for sewerage treatment and disposal, and/or system or systems of water supply within all or a portion of the county. However, counties shall not have power to condemn sewerage and/or water systems of any municipal corporation or private utility.

Such county or counties shall have the authority to control, regulate, operate, and manage such system or systems and to provide funds therefor by general obligation bonds, revenue bonds, local improvement district bonds, utility local improvement district or local improvement district assessments, and in any other lawful fiscal manner. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.

Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer.

Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.

A county shall not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using county employees unless the on-site system is connected by a publicly owned collection system to the county's sewerage system, and the on-site system represents the first step in the sewage disposal process. Nothing in this section shall affect the authority of a state or local health officer to carry out their responsibilities under any other applicable law.

A county may, as part of a system of sewerage established under this chapter, provide for, finance, and operate any of the facilities and services and may exercise the powers expressly authorized for county storm water, flood control, pollution prevention, and drainage services and activities under chapters 36.89, 86.12, 86.13, and 86.15 RCW. A county also may provide for, finance, and operate the facilities and services and may exercise any of the powers authorized for aquifer protection areas under chapter 36.36 RCW; for lake management districts under chapter 36.61 RCW; for diking districts, and diking, drainage, and sewerage improvement districts under chapters 85.05, 85.08, 85.15, 85.16, and 85.18 RCW; and for shellfish protection districts under chapter 90.72 RCW. Additionally, as part of a system of sewerage or water, a county may provide for the acquisition, protection, maintenance, restoration, and rehabilitation of aquatic resources and fish habitat. However, if a county by reference to any of those statutes assumes as part of its system of sewerage any powers granted to such areas or districts and not otherwise available to a county under this chapter, then (1) the procedures and restrictions applicable to those areas or districts apply to the county's exercise of those powers, and (2) the county may not simultaneously impose rates and charges under this chapter and under the statutes authorizing such areas or districts for substantially the same facilities and services, but must instead impose uniform rates and charges consistent with RCW 36.94.140. By agreement with such an area or district that is not part of a county's system of sewerage, a county may operate that area's or district's services or facilities, but a county may not dissolve any existing area or district except in accordance with any applicable provisions of the statute under which that area or district was created.

Sec. 212. RCW 36.89.010 and 1970 ex.s. c 30 s 1 are each amended to read as follows:

The words "governmental agency" as used in this chapter mean the United States of America, the state or any agency, subdivision, taxing district or municipal or quasi municipal corporation thereof.

The word "highways" as used in this chapter means all public roads, streets, expressways, parkways, scenic drives, bridges and other public ways, including without limitation, traffic control facilities, special lanes, turnouts or structures in, upon, over or under such public ways for exclusive or nonexclusive use by public transit vehicles, and landscaping, visual and sound buffers between such public ways and adjacent properties.

The words "open space, park, recreation and community facilities" as used in this chapter mean any public facility, improvement, development, property or right or interest therein for public park, recreational, green belt, arboretum, multi-purpose community center (as defined in RCW 35.59.010), museum, zoo, aquarium, auditorium, exhibition, athletic, historic, scenic, viewpoint, aesthetic, ornamental or natural resource preservation purposes.

The words "public health and safety facilities" as used in this chapter mean any public facility, improvement, development, property or right or interest therein, made, constructed or acquired for the purpose of protecting life from disease or injury, enforcing the criminal and civil laws or protecting property from damage caused by breach of law, including but not limited to public hospitals, health laboratories, public health clinics or service centers, custodial, correction or rehabilitation facilities, courtrooms, crime laboratories, law enforcement equipment and facilities, training facilities for specialized personnel, facilities for the collection, storage, retrieval or communication of information, and mobile, support or administrative facilities, all as necessary for the foregoing purpose, or any combination of the facilities herein described.

The words "storm water control facilities" as used in this chapter mean any facility, natural or constructed, improvement, development, property or interest therein, made, constructed, used, or acquired for the purpose of controlling, or protecting life, habitat, or property from, any storm, waste, flood or surplus waters wherever located within the county, and shall include but not be limited to the improvements and authority described in RCW 86.12.020 and chapters 86.13 and 86.15 RCW.

The word "county" as used in this chapter shall mean any county of the state of Washington.

Sec. 213. RCW 36.89.030 and 1984 c 7 s 42 are each amended to read as follows:

Counties are authorized to establish, acquire, develop, construct, maintain, protect, restore, rehabilitate, and improve open space, park, recreation, and community facilities, public health and safety facilities, storm water control facilities, and highways or any of them pursuant to the provisions of this chapter within and without the cities and towns of the county and for such purposes have the power to acquire lands, buildings and other facilities by gift, grant, purchase, condemnation, lease, devise, and bequest, to construct, improve, or maintain buildings, structures, and facilities necessary for such purposes, and to use and develop for such purposes the air rights over and the subsurface rights under any highway. The approval of the state department of transportation shall be first secured for such use and development of any state highway. For visual or sound buffer purposes the county shall not acquire by condemnation less than an owner's entire interest or right in the particular real property to be so acquired if the owner objects to the taking of a lesser interest or right. Additionally, as part of a system of surface water control facilities, a county may provide for the acquisition, protection, maintenance, restoration, and rehabilitation of aquatic resources and fish habitat.

Sec. 214. RCW 35.67.010 and 1997 c 447 s 7 are each amended to read as follows:

A "system of sewerage" means and may include any or all of the following:

(1) Sanitary sewage collection, treatment, and/or disposal facilities and services, on-site or off-site sanitary sewerage facilities, inspection services and maintenance services for public or private on-site systems, or any other means of sewage treatment and disposal approved by the city;

(2) Combined sanitary sewage disposal and storm or surface water sewers;

(3) Natural or constructed storm or surface water ((~~sewers~~)) facilities;

(4) Outfalls for storm drainage or sanitary sewage and works, plants, and facilities for storm drainage or sanitary sewage treatment and disposal, and rights and interests in property relating to the system;

(5) Combined water and sewerage systems;

(6) Point and nonpoint water pollution monitoring programs that are directly related to the sewerage facilities and programs operated by a city or town;

(7) Public restroom and sanitary facilities; and

(8) Any combination of or part of any or all of such facilities.

The words "public utility" when used in this chapter has the same meaning as the words "system of sewerage."

Sec. 215. RCW 85.38.180 and 1991 c 349 s 17 are each amended to read as follows:

A special district may:

(1) Engage in flood control activities, and investigate, plan, construct, acquire, repair, maintain, and operate improvements, works, projects, programs, and facilities necessary to prevent inundation or flooding from rivers, streams, tidal waters or other waters. Such natural or constructed facilities include dikes, levees, dams, banks, revetments, channels, canals, ((~~and other works~~)) ditches, other facilities and water bodies, appliances, machinery, and equipment.

(2) Engage in drainage control, storm water control, and surface water control activities, and investigate, plan, construct, acquire, repair, maintain, and operate improvements, works, projects, and facilities necessary to control, protect, manage, and treat storm water, surface water, and flood water. Such natural or constructed facilities include drains, ditches, canals, other water bodies, nonsanitary sewers, pumps, and other ((~~works~~)) facilities, appliances, machinery, and equipment.

(3) Engage in lake or river restoration, aquatic plant control, and water quality enhancement activities, including providing for the acquisition, protection, maintenance, restoration, and rehabilitation of aquatic resources and fish habitat.

(4) Take actions necessary to protect life and property from inundation or flow of flood waters, storm waters, or surface waters.

(5) Acquire, purchase, condemn by power of eminent domain pursuant to chapters 8.08 and 8.25 RCW, or lease, in its own name, necessary property, property rights, facilities, and equipment.

(6) Sell or exchange surplus property, property rights, facilities, and equipment.

(7) Accept funds and property by loan, grant, gift, or otherwise from the United States, the state of Washington, or any other public or private source.

(8) Hire staff, employees, or services, or use voluntary labor.

(9) Sue and be sued.

(10) Cooperate with or join the United States, the state of Washington, or any other public or private entity or person for district purposes.

(11) Enter into contracts.

(12) Exercise any of the usual powers of a corporation for public purposes.

Sec. 216. RCW 86.15.010 and 1983 c 315 s 11 are each amended to read as follows:

The definitions set forth in this section apply through this chapter.

(1) "Board" means the county legislative authority.

(2) "Flood control improvement" means any works, projects, programs, or ((~~other~~)) facilities, both natural and constructed, necessary ((~~for the~~)) to control ((of)), protect, manage, and treat flood waters within the county or any zone or zones.

(3) "Flood waters" and "storm waters" means any storm waste or surplus waters, including surface water, wherever located within the county or a zone or zones where such waters endanger public highways, streams and water courses, harbors, life, or property.

(4) "Participating zones" means two or more zones found to benefit from a single flood control improvement or storm water control improvement.

(5) "Storm water control improvement" means any works, projects, programs, or ((~~other~~)) facilities, both natural and constructed, necessary to control, protect, manage, and treat storm water within the county or any zone or zones.

(6) "Supervisors" means the board of supervisors, or governing body, of a zone.

(7) "Zones" means flood control zone districts which are quasi municipal corporations of the state of Washington created by this chapter.

Sec. 217. RCW 86.15.100 and 1983 c 315 s 14 are each amended to read as follows:

The supervisors may authorize the construction, extension, enlargement, repair, maintenance, provision, or acquisition of necessary flood control or storm water control improvements within the zone or any participating zones. The improvements may include, but shall not be limited to the extension, enlargement, repair, maintenance, construction, or acquisition of dikes and levees, drain and drainage systems, dams and reservoirs, or other flood control or storm water control improvements; widening, straightening, or relocating of stream or water courses; and the acquisition, extension, enlargement, repair, maintenance, or construction of any works necessary for the protection, restoration, and rehabilitation of aquatic resources, fish habitat, stream and water courses, channels, harbors, life, and property.

PART III. WATER CONSERVATION

Sec. 301. RCW 90.54.180 and 1989 c 348 s 5 are each amended to read as follows:

((~~Consistent with the fundamentals of water resource policy set forth in this chapter~~)) (1) In areas that have threatened or endangered species listed or proposed for listing under the federal endangered species act or salmonid stocks categorized as critical or depressed under the state salmon and steelhead stock inventory and where water can be used to protect or restore streamflows that are needed by such species or stocks, or in urban growth areas, state and local governments, individuals, corporations, groups, and other entities shall ((~~be encouraged to~~)) carry out water use efficiency and conservation programs and practices consistent with the fundamentals of water resource policy set forth in this chapter and consistent with the following:

((~~(1)~~)) (a) Water efficiency and conservation programs ((~~should~~)) shall utilize an appropriate mix of economic incentives, cost share programs, regulatory programs, and technical and public information efforts. Programs which encourage voluntary participation are preferred.

((~~(2)~~)) (b) Increased water use efficiency ((~~should receive consideration as~~)) and conservation, including reclaiming municipal and industrial effluent, shall be considered a potential source of water in state and local water resource planning processes. In determining the cost-effectiveness of alternative water sources, consideration ((~~should~~)) shall be given to the benefits of conservation, waste water recycling, artificially stored ground water, transfers of water rights, and impoundment of waters.

((~~(3)~~)) (c) In determining the cost-effectiveness of alternative water sources, full consideration should be given to the benefits of storage which can reduce the damage to stream banks and property, increase the utilization of land, provide water for municipal, industrial, agricultural, and other beneficial uses, provide for the generation of electric power from renewable resources, and improve ((~~stream flow~~)) streamflow regimes for fishery and other instream uses.

((~~(4)~~)) (d) Entities receiving state financial assistance for construction of water source expansion ((or)), acquisition of new sources, or rehabilitation and improvement of existing water supply systems shall develop, and implement if cost-effective, a water use efficiency and conservation element of a water supply plan pursuant to RCW 43.20.230(1) and chapter 43.83B RCW.

((~~(5)~~)) (e) State programs to improve water use efficiency ((~~should~~)) shall focus on those areas of the state in which water is overappropriated; areas that experience diminished streamflows or aquifer levels, including areas with declining fish stocks due to lack of streamflow; and areas where current and projected water needs, including those for instream flows, exceed available supplies.

((~~(6)~~)) (f) Existing and future generations of citizens of the state of Washington ((~~should~~)) must be made aware of the importance of the state's water resources and the need for wise and efficient use and development of this vital resource. In order to increase this awareness, state agencies ((~~should~~)) shall integrate public education on increasing water use efficiency into existing public information efforts. This effort shall be coordinated with other levels of government, including local governments and Indian tribes.

(2) In all other areas of the state, state and local governments, individuals, corporations, groups, and other entities shall be encouraged to carry out water use efficiency and conservation programs and practices consistent with the fundamentals of water resource policy set forth in this chapter and consistent with subsection (1) of this section.

(3) When state or federal funds are used to finance a conservation project, the person obtaining the funding shall agree in writing to convey to the state of Washington a portion of the net water savings, equivalent to the ratio of the state or federal funding to the overall project cost, for the purpose of establishing a trust water right under chapter 90.38 or 90.42 RCW as applicable.

Sec. 302. RCW 90.03.290 and 1994 c 264 s 84 are each amended to read as follows:

(1) When an application complying with the provisions of this chapter and with the rules ((~~and regulations~~)) of the department has been filed, ((~~the same~~)) it shall be placed on record with the department((~~, and it shall be its duty to~~)). The department shall investigate the application, and determine what water, if any, is available for appropriation, and find and determine to what beneficial use or uses it can be applied.

(2) If it is proposed to appropriate water for irrigation purposes, the department shall investigate, and find and determine ((~~and find~~)) what lands are capable of irrigation by means of water found available for appropriation. If it is proposed to appropriate water for the purpose of power development, the department shall investigate, and find and determine ((~~and find~~)) whether the proposed development is likely to prove detrimental to the public interest, having in mind the highest feasible use of the waters belonging to the public.

(3) If the application does not contain, and the applicant does not promptly furnish sufficient information on which to base such findings, the department may issue a preliminary permit, for a period of not to exceed three years, requiring the applicant to make such surveys, investigations, studies, and progress reports, as in the opinion of the department may be necessary. If the applicant fails to comply with the conditions of the preliminary permit, it and the application or applications on which it is based shall be automatically canceled and the applicant so notified. If the holder of a preliminary permit shall, before its expiration, file with the department a verified report of expenditures made and work done under the preliminary permit, which, in the opinion of the department, establishes the good faith, intent and ability of the applicant to carry on the proposed development, the preliminary permit may, with the approval of the ((~~governor~~)) director, be extended, but not to exceed a maximum period of five years from the date of the issuance of the preliminary permit.

(4) The department shall make and file as part of the record in the matter, written findings of fact concerning all things investigated, and if it shall find that there is water available for appropriation for a beneficial use, and the appropriation thereof as proposed in the application will not impair existing rights or be detrimental to the public welfare, it shall issue a permit stating the amount of water to which the applicant shall be entitled and the beneficial use or uses to which it may be applied((~~: PROVIDED, That where~~)). If the water applied for is to be used for irrigation purposes, it shall become appurtenant only to such land as may be reclaimed thereby to the full extent of the soil for agricultural purposes. But where there is no unappropriated water in the proposed source of supply, or where the proposed use conflicts with existing rights((,)) or threatens to prove detrimental to the public interest, or where an alternative source of water, including, but not limited to, water acquired by a change or transfer of an existing water right or from a feasible source of reclaimed water, would better serve the public interest, having due regard to the highest feasible development of the use of the waters belonging to the public, it shall be the duty of the department to reject such application and to refuse to issue the permit asked for. If the permit is refused because of conflict with existing rights and such applicant shall acquire the same by purchase or condemnation under RCW 90.03.040, the department may thereupon grant such permit. Any application may be approved for a less amount of water than that applied for, if there exists substantial reason therefor, and in any event shall not be approved for more water than can be applied to beneficial use for the purposes named in the application.

(5) In determining whether or not a permit shall issue upon any application, it shall be the duty of the department to investigate all facts relevant and material to the application. The department shall make a summary of the record of investigation and the proposed permit available to the public and provide a period of at least sixty days for the public to submit comments on it. The department shall consider the comments received and the entire record.

(6) After the department approves said application in whole or in part and before any permit shall be issued thereon to the applicant, such applicant shall pay the fee provided in RCW 90.03.470((~~: PROVIDED FURTHER, That in the event~~)). If a permit is issued by the department upon any application, it shall be its duty to notify the director of fish and wildlife of such issuance.

NEW SECTION. Sec. 303. A new section is added to chapter 70.119A RCW to read as follows:

(1) Each public water system with fifteen or more service connections shall:

(a) Implement a water conservation program promotion targeted at system customers; and

(b) Implement other cost-effective water conservation measures identified in approved water conservation plans required under RCW 43.20.230.

(2) Public water systems with one thousand or more service connections shall also:

(a) Implement a leak detection and repair program, and shall repair leaks if the system's unaccounted for water is ten percent or more of total system water usage;

(b) Conduct water audits to identify internal water distribution and associated opportunities for improved water use efficiency; and

(c) Use commodity-based inclining block water rates, and not use declining block rate structures. Commodity-based inclining block rate structures are based, at least in part, upon increasing the rate for water as larger volumes of water used. Declining block rate structures separate consumption levels into two or more blocks, with rates per unit of water decreasing as the total volume of consumption by a customer increases. Systems are not precluded from including a base amount of water use in fixed charges or meter charges that apply regardless of volume of water use.

(3) Public water systems that have completed a conservation plan within six years before the effective date of this section in accordance with the requirements of the department need not create a new plan, but shall address any of the elements in this section that have not been previously addressed in the next scheduled update of the water system plan and conservation plan.

Sec. 304. RCW 43.20.230 and 1993 sp.s. c 4 s 9 are each amended to read as follows:

Consistent with the water resource planning process of the department of ecology, the department of health shall:

(1) Develop ((procedures and guidelines relating to water use efficiency, as defined in section 4(3), chapter 348, Laws of 1989, to be included in the development and approval of cost-efficient water system plans required under RCW 43.20.050)) comprehensive water conservation planning requirements for public water systems based upon system size, to be included in water system plans and small water system management programs required under RCW 43.20.050. Conservation plans approved under this section shall meet the water conservation planning requirements of the department of ecology for the purposes of water right permit processing. As part of these comprehensive planning requirements water systems shall:

(a) Demonstrate compliance with the conservation requirements in section 303 of this act;

(b) Evaluate whether to install service meters;

(d) Evaluate development and implementation of a leak detection and repair program; and

(e) Use water use efficiency performance standards developed under section 311 of this act for conservation planning, water demand forecasting, and other water system planning purposes;

(2) Review and approve water conservation plans, and monitor plan implementation to ensure compliance with comprehensive conservation planning requirements under subsection (1) of this section;

(3) Develop criteria, with input from technical experts, with the objective of encouraging the cost-effective reuse of greywater and other water recycling practices, consistent with protection of public health and water quality;

((~~(3)~~)) (4) Provide advice and technical assistance upon request in the development of water use efficiency plans. This includes development of model landscape ordinances, assistance to public water systems and local governments regarding water conservation, and general public education on water conservation and efficiency; ((~~and~~

~~(4)~~)) (5) Provide advice and technical assistance on request for development of model conservation rate structures for public water systems((~~. Subsections (1), (2), and (3) of this section are subject to the availability of funding~~)); and

(6) Adopt rules as necessary through the state board of health to implement any provisions of this section.

NEW SECTION. Sec. 305. A new section is added to chapter 70.119A RCW to read as follows:

Public water systems with fifteen or more service connections shall collect monthly water diversion and withdrawal data from all water sources used to serve the system. Data collected under this section shall be submitted annually to the department in a form and manner prescribed by the department and shall be coordinated with water data management requirements of the department of ecology.

NEW SECTION. Sec. 306. A new section is added to chapter 58.17 RCW to read as follows:

In determining whether a proposed short plat, short subdivision, or subdivision meets the requirements for potable water supplies as required under RCW 58.17.060 or 58.17.110, and otherwise serves the public use and interest, the city, town, or county shall require:

(1) Conformance to any water conservation ordinances or plans adopted by the city, town, or county;

(2) Use of water conservation measures consistent with any regional watershed plan adopted under chapter 90.82 RCW; and

(3) Use of reclaimed water where feasible in accordance with criteria established under section 404 of this act and where potable water is not required consistent with any local ordinance adopted on water reuse requirements.

NEW SECTION. Sec. 307. A new section is added to chapter 35.21 RCW to read as follows:

(1) Any city or town may adopt a water conservation program by ordinance or other legal authority. This includes ordinances to implement the provisions of any regional watershed plan adopted under chapter 90.82 RCW. Such a program may include the following requirements:

(a) Use of water conservation measures consistent with specific provisions of regional watershed plans adopted under chapter 90.82 RCW;

(b) Use of water conservation measures that may be in addition to those required by either the department of health or the department of ecology, including landscape irrigation requirements, public fixture retrofit and rebate programs, and commercial and industrial conservation programs; and

(2) The provisions of any water conservation program shall be implemented by the city or town through development of any comprehensive plan, development regulations, issuance of permits and other approvals, development of any sewerage or water general plan under RCW 36.94.030, operation of any sewerage or water systems under chapter 36.94 RCW, or as otherwise allowed by law.

NEW SECTION. Sec. 308. A new section is added to chapter 35A.21 RCW to read as follows:

(a) Use of water conservation measures consistent with specific provisions of regional watershed plans adopted under chapter 90.82 RCW;

NEW SECTION. Sec. 309. A new section is added to chapter 36.01 RCW to read as follows:

(1) Any county may adopt a water conservation program by ordinance or other legal authority. This includes ordinances to implement the provisions of any regional watershed plan adopted under chapter 90.82 RCW. Such a program may include the following requirements:

(a) Use of water conservation measures consistent with specific provisions of regional watershed plans adopted under chapter 90.82 RCW;

(2) The provisions of any water conservation program shall be implemented by the county through development of any comprehensive plan, development regulations, issuance of permits and other approvals, development of any sewerage or water general plan under RCW 36.94.030, operation of any sewerage or water systems under chapter 36.94 RCW, or as otherwise allowed by law.

Sec. 310. RCW 90.48.495 and 1989 c 348 s 10 are each amended to read as follows:

The department of ecology shall require sewer plans that propose an expansion of treatment capacity to include a discussion of water conservation measures considered or underway and their anticipated impact on public sewer service. The plans shall evaluate the cost-effectiveness of funding water conservation programs as an alternative to expanding sewage treatment capacity.

NEW SECTION. Sec. 311. A new section is added to chapter 90.54 RCW to read as follows:

(1) Except as provided in subsection (5) of this section, the department of ecology, in consultation with the department of health, shall adopt rules establishing water use efficiency performance standards for various water uses by December 31, 2000. The department shall engage in a negotiated rule-making process involving representatives of interested parties. However, if the participants do not reach consensus by July 1, 2000, the department shall proceed with the adoption of rules using the advice and guidance of the participants to the extent possible. The standards shall be based on the quantity of water required for reasonable and beneficial use of water without waste. The rules shall also address standards for reasonable conveyance loss of water for various means of water conveyance. Basin management plans adopted under this chapter or watershed plans adopted under chapter 90.82 RCW may specify water use efficiency performance standards for the basin or watershed that vary from and supersede those adopted by the department under this section if Washington state government is a participant in the planning process and agrees with the local standards. The department shall adopt rules implementing such local standards.

(2) The state-wide or local standards adopted under this section shall be used for developing water conservation plans, water demand forecasting, public water system planning, evaluating proposed transfers, changes, and amendments to existing water rights, and assessing whether new water rights are needed. In addition, the standards shall be used to guide the development and evaluation of water conservation plans developed under chapter 43.99E RCW and RCW 43.20.230.

(3) Any person claiming a water right or a need for the use of water in excess of the standards adopted under this section carries the burden of showing that special circumstances require a variance from the standards.

(4) The department shall consult with the Washington State University cooperative extension service, the department of agriculture, and the United States natural resource conservation service regarding normal water duties for irrigation water uses.

(5) By December 31, 2001, the department shall adopt rules to establish the water use efficiency performance standards and water conservation planning requirements for agricultural water uses that are contained in the water resource management system developed under section 1005 of this act. However, if such standards are not completed by July 1, 2001, the department shall proceed with adoption of rules using the advice and guidance of the negotiating group under section 1005 of this act to the extent possible.

Sec. 312. RCW 90.03.360 and 1994 c 264 s 85 are each amended to read as follows:

(1) The owner or owners of any water diversion shall maintain, to the satisfaction of the department ((~~of ecology~~)), substantial controlling works and a measuring device constructed and maintained to permit accurate measurement and practical regulation of the flow of water diverted. Every owner or manager of a reservoir for the storage of water shall construct and maintain, when required by the department, any measuring device necessary to ascertain the natural flow into and out of said reservoir.

((~~Metering of diversions or~~)) Measurement ((~~by other approved methods~~)) of diversions shall be required as a condition for all new surface water right permits, and except as provided in subsection (2) of this section, may be required as a condition for all ((~~previously~~)) existing surface water rights or claims. ((The department may also require, as a condition for all water rights, metering of diversions, and reports regarding such metered diversions as to the amount of water being diverted. Such reports shall be in a form prescribed by the department.))

(2) Where water diversions are from waters ((~~in which the salmonid stock status is depressed or critical, as determined by the department of fish and wildlife~~)) that support threatened or endangered species listed or proposed for listing under the federal endangered species act or salmonid stocks categorized as critical or depressed under the state salmon and steelhead stock inventory and where water can be used to protect or restore streamflows that are needed by such species or stocks, or in urban growth areas, or where the volume of water being diverted exceeds one cubic foot per second, the department shall require ((~~metering or~~)) measurement ((~~by other approved methods~~)) as a condition for all new and previously existing water rights or claims. The department shall attempt to integrate the requirements of this subsection into its existing compliance workload priorities, but shall prioritize the requirements of this subsection ahead of the existing compliance workload where a delay may cause the decline of wild salmonids. The department shall notify the department of fish and wildlife of the status of fish screens associated with these diversions.

This subsection (2) shall not apply to diversions for public or private hatcheries or fish rearing facilities if the diverted water is returned directly to the waters from which it was diverted.

(3) By rule, the department shall prescribe approved methods of measuring, any reporting requirements and methods of reporting, and any exemptions to this subsection.

Sec. 313. RCW 90.44.450 and 1989 c 348 s 7 are each amended to read as follows:

(1) The department ((~~of ecology may~~)) shall require withdrawals of ground water to be ((~~metered, or~~)) measured ((~~by other approved methods,~~)) as a condition for a new water right permit. ((The department may also require, as a condition for such permits, reports regarding such withdrawals as to the amount of water being withdrawn. These reports shall be in a form prescribed by the department.))

(2) The department shall require withdrawals of ground water under an existing water right permit to be measured, where the ground water is interrelated with surface water that supports threatened or endangered species listed or proposed for listing under the federal endangered species act or salmonid stocks categorized as critical or depressed under the state salmon and steelhead stock inventory and where water can be used to protect or restore streamflows that are needed by such species or stocks, or in urban growth areas.

(3) By rule, the department shall prescribe approved methods of measuring, any reporting requirements and methods of reporting, and any exemptions to this subsection.

PART IV. RECLAIMED WATER

NEW SECTION. Sec. 401. A new section is added to chapter 90.46 RCW to read as follows:

(1) In areas that have threatened or endangered species listed or proposed for listing under the federal endangered species act or salmonid stocks categorized as critical or depressed under the state salmon and steelhead stock inventory and where water can be used to protect or restore streamflows that are needed by such species or stocks, or in urban growth areas, when reclaimed water is a feasible replacement source of water in accordance with criteria adopted under section 404 of this act, it shall be used for nonpotable water uses in lieu of using potable water for those uses.

(2) The department of ecology is the lead agency for reclaimed water permitting and design approval, and the department of health shall provide public health input and assessment on all department of ecology reclaimed water permit decisions.

Sec. 402. RCW 90.46.030 and 1992 c 204 s 4 are each amended to read as follows:

(1) The department of ((~~health~~)) ecology shall, in coordination with the department of ((~~ecology~~)) health, adopt ((~~a single set of standards, procedures, and guidelines on or before August 1, 1993~~)) rules by December 31, 2000, for the industrial and commercial use of reclaimed water.

(2) The department of ((~~health~~)) ecology may issue a reclaimed water permit under chapter 90.48 RCW to the generator of reclaimed water for industrial and commercial uses of reclaimed water to the generator of reclaimed water who may then distribute the water, subject to provisions in the permit governing the location, rate, water quality, and purposes of use.

(3) The department of ((~~health~~)) ecology in consultation with the advisory committee established in RCW 90.46.050, shall develop recommendations for a fee structure for permits issued under subsection (2) of this section. Fees shall be established in amounts to fully recover, and not exceed, expenses incurred by the department of health and the department of ecology in processing permit applications and modifications, monitoring and evaluating compliance with permits, and conducting inspections and supporting the reasonable overhead expenses that are directly related to these activities. ((~~Permit fees may not be used for research or enforcement activities. The department of health shall not issue permits under this section until a fee structure has been established.~~))

(4) A permit under this section for use of reclaimed water may be issued only to a municipal, quasi-municipal, or other governmental entity or to the holder of a waste discharge permit issued under chapter 90.48 RCW.

(5) The authority and duties created in this section are in addition to any authority and duties already provided in law with regard to sewage and wastewater collection, treatment, and disposal for the protection of health and safety of the state's waters. Nothing in this section limits the powers of the state or any political subdivision to exercise such authority.

Sec. 403. RCW 90.46.040 and 1992 c 204 s 5 are each amended to read as follows:

(1) The department of ecology shall, in coordination with the department of health, adopt ((~~a single set of standards, procedures, and guidelines, on or before August 1, 1993~~)) rules by December 31, 2000, for land applications of reclaimed water.

(2) A permit is required for any land application of reclaimed water. The department of ecology may issue a reclaimed water permit under chapter 90.48 RCW to the generator of reclaimed water who may then distribute the water, subject to provisions in the permit governing the location, rate, water quality, and purpose of use. The department of ecology shall not issue more than one permit for any individual land application of reclaimed water to a single generator.

(3) In cases where the department of ecology determines, in land applications of reclaimed water, that a ((~~significant~~)) risk to the public health exists, the department shall refer the application to the department of health for review and consultation and the department of health may require fees appropriate for review and consultation from the applicant pursuant to RCW 43.70.250.

(5) The authority and duties created in this section are in addition to any authority and duties already provided in law. Nothing in this section limits the powers of the state or any political subdivision to exercise such authority.

NEW SECTION. Sec. 404. A new section is added to chapter 90.46 RCW to read as follows:

(1) The department of ecology, in consultation with the department of health, producers of reclaimed water, and water purveyors, shall adopt rules by December 31, 2000, establishing criteria for determining when the use of reclaimed water is feasible to replace potable water supplied for nonpotable water use. Nonpotable water use includes, but is not limited to, golf course irrigation, landscape irrigation, sewer main flushing, street cleaning, dust control, industrial processing, and other appropriate uses. Local governments may adopt ordinances requiring the use of reclaimed water for nonpotable uses when determined feasible according to the established criteria.

(2) The departments of ecology and health may adopt rules as necessary to carry out the intent of this chapter. If rules are adopted, the rules shall identify permit and design approval requirements under chapters 43.20, 70.116, 70.119A, 70.142, 90.03, 90.44, and 90.48 RCW applicable to the generation and distribution of reclaimed water.

Sec. 405. RCW 90.46.120 and 1997 c 444 s 1 are each amended to read as follows:

((The owner of a wastewater treatment facility that is reclaiming water with a permit issued under this chapter has the exclusive right to any reclaimed water generated by the wastewater treatment facility. Use and distribution of the reclaimed water by the owner of the wastewater treatment facility is exempt from the permit requirements of RCW 90.03.250 and 90.44.060.)) Revenues derived from the reclaimed water facility shall be used only to offset the cost of operation of the wastewater utility fund or other applicable source of system-wide funding.

If the proposed use or uses of reclaimed water are intended to augment or replace potable water supplies or will create the potential for the development of additional potable water supplies, such use or uses shall be considered in the development of the regional water supply plan or plans addressing potable water supply service by multiple water purveyors. This may include water system plans and coordinated water system plans under chapters 43.20 and 70.116 RCW. The owner of a wastewater treatment facility that proposes to reclaim water shall be included as a participant in the development of such regional water supply ((~~plan or~~)) plans and water system plans. The water supply planning activities shall be developed and coordinated to ensure that opportunities for reclaimed water are evaluated and that proposals for construction in public rights of way delineated within the plan consider infrastructure needed to distribute reclaimed water. Wastewater plans adopted under chapter 90.48 RCW shall include a statement of certification that reclamation and reuse elements in applicable regional water supply plans and water system plans have been fully considered and accounted for with regard to the need for future distribution of reclaimed water.

Sec. 406. RCW 90.46.130 and 1997 c 444 s 4 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the owner of a wastewater treatment facility that is reclaiming water with a permit issued under this chapter has the exclusive right, subject to the terms of the permit and as otherwise provided in this chapter, to any reclaimed water generated by the wastewater treatment facility. Upon securing a permit under this chapter, the use and distribution of the reclaimed water by the owner of the wastewater treatment facility is exempt from the requirements to obtain a permit to appropriate water under RCW 90.03.250 and 90.44.060 and the requirements to obtain approval of a change or amendment of a water right under RCW 90.03.380, 90.03.383, 90.03.390, 90.44.100, or 90.44.105.

(2) If the state of Washington or the United States provides funding for the construction of reclaimed water facilities, the state shall establish a trust water right under chapter 90.38 or 90.42 RCW for the fraction of the reclaimed water attributable to such funding. The priority of use for the state's share of reclaimed water is instream flow restoration and enhancement. The department may accept an alternate water right from the reclaimed water project owner in lieu of reclaimed project water if the alternate water right is more advantageous for instream flow restoration.

(3) Facilities that reclaim water under this chapter shall not impair streamflow and shall not impair any existing water right ((~~downstream from any freshwater discharge points of such facilities unless compensation or mitigation for such impairment is agreed to by the holder of the affected water right~~)) unless the holder of the water right is equitably compensated. The reclamation of water from a wastewater facility that discharges to marine waters does not impair any existing water right and does not require compensation.

PART V. WATER RIGHT TRANSFERS

NEW SECTION. Sec. 501. A new section is added to chapter 90.03 RCW to read as follows:

PRIORITY PROCESSING OF TRANSFERS. (1) The department shall accord priority to the processing of applications for transfers and changes in water rights. The department shall adopt a goal of processing all water right transfer and change applications pending on the effective date of this section by June 30, 2003. After meeting this goal, the department shall adopt a goal of making decisions upon applications for changes limited to a single season to within sixty days of the date the public notice period expires, and for other changes, within ninety days of the date the public notice period expires.

(2) The department in its discretion may process applications for transfers or changes regarding water uses in a basin independently of the order of processing or priority placed upon processing applications for new withdrawals within the same basin, and independently of the order of processing or priority placed upon any applications regarding water use in other basins.

PART VI. PUBLIC WATER SYSTEMS

Sec. 601. 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. Upon the request of a public water system, the department shall issue incremental certificates of water right, not more than once every six years, that reflect either instantaneous or annual quantities of water, or both, perfected by actual beneficial use. Pumping or diversion records, meter data, or other reasonable information showing the extent of actual beneficial use of water shall accompany the request. 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~~)) certificate, be transmitted by the department ((~~transmitted~~)) to the county auditor of the county or counties where the distributing system or any part thereof is located((~~, and~~)). The certificate shall be recorded in the office of such county auditor, and thereafter be transmitted to the ((~~owner thereof~~)) certificate holder.

(2) Certificates of water right held by public water systems that document a combination of water that has been put to beneficial use and water that has never been put to use, that have department of health approval for the source associated with the right, and for which the entity holding the certificate has constructed facilities in place to use the water authorized by the water right, shall be administered in the following manner:

(a) Any instantaneous or annual quantity of water that has been perfected by actual beneficial use of water before the effective date of this section shall remain a certificated right in good standing. The actual beneficial use of water must be shown by pumping or diversion records, meter data, or other reasonable information showing the extent of actual water use.

(b) Any instantaneous or annual quantity of water not perfected by beneficial use before the effective date of this section is reinstated as a water right permit within the meaning of this chapter and the holder of the permit is authorized to continue development and use of water under the permit. The reinstated permit shall be administered by the department as an inchoate right in permit status in good standing, with a priority date as of the original application, subject to the requirements of sections 603 and 604 of this act.

(3) For a permit held by a public water system reinstated by this section that has a department of health-approved number of connections and for which the original water right application filing was for a discrete number of connections, water use by up to the department of health-approved number of connections as of the effective date of this section is allowed within the existing water service area of the public water system. If the public water system does not have an existing service area established under chapter 43.20 or 70.116 RCW, the place of use as authorized under the original certificate shall be the place of use for water that is reinstated to permit status under this section.

(4) For a permit held by a public water system reinstated by this section that has a department of health-approved number of equivalent residential units and for which the original water right application filing was made for a discrete number of connections, or for then-current population and future requirements of the municipality or community, water service shall be allowed up to the number of equivalent residential units approved by the department of health as of the effective date of this section for the existing service area of the public water system as established under chapter 43.20 or 70.116 RCW. Water service provided through interties must comply with RCW 90.03.383.

(5) For a permit held by a public water system reinstated by this section that has an unspecified number of connections in its department of health-approved water system plan and for which the original application filing was made for then-current population and future requirements of the municipality or community, water service shall be allowed to satisfy the existing retail service area as established under chapter 43.20 or 70.116 RCW. Water service provided through interties must comply with RCW 90.03.383.

(6) The department shall process requests made under this section generally in the order in which received. The departments of ecology, health, and fish and wildlife shall process only those requests for issuance of superseding certificates, issuance of reinstated permits, and adoption of performance standards and entry of interlocal agreements, under this section and sections 602 through 605 of this act, for which adequate staffing and other resources relating to such requests are available within funds specifically appropriated to the departments of ecology, health, and fish and wildlife for this purpose.

NEW SECTION. Sec. 602. A new section is added to chapter 90.03 RCW to read as follows:

(1) Any public water system asserting that it holds a certificate that documents a combination of water put to beneficial use and water not yet put to beneficial use shall provide evidence to the department demonstrating that the criteria in RCW 90.03.330(2) are met such that a superseding certificate and water right permit should be issued. If the department, upon reviewing a public water system plan or other applicable information, determines that the system has an inchoate water right as provided in RCW 90.03.330, the department shall issue a superseding certificate for the portion of the right that has been put to beneficial use and shall issue a permit for the inchoate portion of the water right that is reinstated to permit status. The department shall condition permits reinstated by RCW 90.03.330 with the performance standards created by section 603 of this act and a development schedule. The development schedule shall be twenty years from the effective date of this section with the option to extend if good cause is shown under RCW 90.03.320, except that the department may:

(a) Authorize a development schedule longer than twenty years, but not more than fifty years, if a planned need is demonstrated, and (i) a withdrawal facility with a hydraulic capacity beyond that needed for twenty years was constructed, or (ii) debt service requirements extend for such a period;

(b) Authorize a development schedule of less than twenty years if the permittee, with reasonable diligence, can perfect the permit in a shorter period of time; or

(c) Deny any time for further development if there is no demonstrated need for the water based on the water system plan or other applicable information.

(2) Upon any determination of noncompliance with the performance standards created by section 603 of this act, the permittee shall be granted, by written notice, a reasonable period of time to comply. If the permittee receiving such a notification disagrees with the department's determination of a reasonable time for compliance, it may, at its election, initiate nonbinding mediation with the department to resolve the dispute. After mediation, if the dispute is not resolved, the state shall issue an order to effect the performance standards. The order is appealable to the pollution control hearings board.

(3) At the end of the construction schedule authorized in the permit, the permittee may request an extension of time only as provided in RCW 90.03.320.

NEW SECTION. Sec. 603. A new section is added to chapter 90.03 RCW to read as follows:

(1) Any permittee with a water right permit reinstated under RCW 90.03.330 must meet the performance standards of this section. Demonstration of compliance with performance standards shall be through existing planning programs and processes of the departments of health or ecology to the extent practicable. All permittees shall initially document compliance with the performance standards not less than two years and not more than eight years from the effective date of this section to the department of ecology and then in its water system plan update, if a water system plan is required. Any permittee not required to complete a water system plan shall demonstrate compliance in a reasonable, written format once every six years. If the permittee complies with the performance standards, it will be considered in compliance with RCW 90.03.320. The performance standards are:

(a) Evidence demonstrating a need for the water within the development schedule specified by the permit consistent with demand forecasts prepared in accordance with the demand forecasting methods specified by the departments of ecology and health;

(b) Evidence that the water system's use of water is fully consistent with approved local land use planning within the constraints of water availability and cost;

(c) Evidence that water use meets state conservation and water use efficiency requirements existing at the time the documentation is submitted;

(d) Current information on how the utility's recent and proposed beneficial use of water under the permit is consistent with state and federal laws legally applicable to water use under the permit;

(e) Evidence of participation by the permittee, to the extent practicable, in watershed planning under chapter 90.82 RCW, coordinated water system planning under chapter 70.119 RCW, or other collaborative watershed planning efforts, if initiated; and

(f) Evidence of participation in and implementation of agreements under section 604 of this act.

(2) For the performance standards in subsection (1) of this section, the department of health is responsible for ensuring compliance with subsection (1)(a) through (c) of this section and the department of ecology is responsible for ensuring compliance with subsection (1)(d) through (f) of this section when compliance with the performance standards is identified in a water system plan. If no water system plan is required, the department of ecology is responsible for ensuring compliance with all performance standards.

NEW SECTION. Sec. 604. A new section is added to chapter 90.03 RCW to read as follows:

(1) Where the source of water is either a surface water source or a ground water source that is interconnected with a surface water body that provides habitat for salmon or trout populations listed or proposed for listing under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical, and where water can be used to protect and restore streamflows that are needed by such species and stocks, or in urban growth areas, the public water system shall enter into and implement a binding agreement with the departments of ecology and fish and wildlife to specify how inchoate water is developed to protect and restore streamflow for the recovery of such fish species.

(2) In developing interlocal agreements with permittees under this section, the departments of fish and wildlife and ecology shall give priority to water systems having more than one thousand service connections. Agreements with water systems having fewer than one thousand service connections shall be a priority, if the system's water source is identified as a priority by the department of fish and wildlife in consultation with other concerned state agencies. Public water systems are encouraged to join together for purposes of concluding agreements under this section and to do so on a watershed or multiwatershed basis to promote the recovery of fish stocks and efficient delivery of public water supply.

(3) The purpose of the interlocal agreement is to identify and make mutual commitments to:

(a) Take immediate actions to arrest the further decline in fish stocks;

(b) Establish, protect, and restore an instream flow that is sufficient to restore and maintain properly functioning habitat conditions to support a harvestable supply of fish. Any instream flows that are established in connection with an interlocal agreement for a water resource inventory area, as defined by chapter 173-500 WAC, overlaying the same geographic areas that received a grant from the department under chapter 90.82 RCW shall be interim until such planning for instream flow, if applicable, is complete under chapter 90.82 RCW. Interim instream flows established shall be conservative with regard to preserving instream values. Before establishing an instream flow under this section, the department shall engage in government to government consultation with affected tribes regarding the setting of such flows;

(d) Establish benchmarks or milestones that can be used to objectively measure the success in the recovery and maintenance of the listed salmonid stocks; and

(e) Establish provisions for an adaptive management approach to modify the interlocal agreement to effect its goal.

(4) If an interlocal agreement is not developed and signed by the departments of ecology and fish and wildlife and the permittee within two years of initiating negotiations on the interlocal agreement, the permittee's use of water from the effective date of this section under the permit shall be subject to applicable source instream flows created by rule existing as of the effective date of this section. If instream flows have not been established by rule or the rule's instream flow is insufficient, an instream flow shall be specified by the department in consultation with the department of fish and wildlife under RCW 75.20.050 by permit proviso, and the permit shall be subject to any future instream flows adopted or amended by the department.

(5) Within four years of the effective date of an interlocal agreement, and every three years thereafter, the department in consultation with the department of fish and wildlife, shall review the interlocal agreement and its implementation to determine its effectiveness in contributing to the recovery and maintenance of the listed salmonid stocks and review the actions of all parties to implement the agreement. If the department of ecology determines by written findings that a permittee who is party to the interlocal agreement has failed to abide by the agreement, it shall condition the use of water under the permit, from the effective date of this section, to applicable instream flows created by rule existing as of the effective date of this section. If instream flows have not been established by rule or the rule's instream flow is insufficient, an instream flow shall be specified by the department in consultation with the department of fish and wildlife under RCW 75.20.050 by permit proviso, and the permit shall be subject to any future instream flows adopted or amended by the department.

(6) If any permittee who is party to the interlocal agreement disagrees with any determinations made by the department under this section, the permittee may, at its election, initiate nonbinding mediation with the department to resolve a dispute. After mediation, if the dispute is not resolved, the permittee may appeal any findings made by the department to the pollution control hearings board.

(7) This section does not waive any other requirement of the law related to the use of water.

NEW SECTION. Sec. 605. A new section is added to chapter 90.03 RCW to read as follows:

Nothing in RCW 90.03.330 or sections 602 through 604 of this act may impair any existing water right.

PART VII. INTEGRATED WATER SUPPLY MANAGEMENT

NEW SECTION. Sec. 701. A new section is added to chapter 90.03 RCW to read as follows:

The legislature finds that it is in the public interest to encourage municipal water supply management to occur on a regionally coordinated basis, where practicable, in a fashion that balances the use of currently developed and future municipal water resources with protection of the natural environment and instream resources, including fisheries. Such integrated water supply management will promote the proper use and stewardship of the invaluable water resources of the state, and ensure that water resources are protected and fully used for the greatest benefit to the people of the state. In light of these benefits, it is appropriate that integrated management programs should be used and encouraged as alternative means to achieve many of the objectives of this act.

The objectives of preserving and enhancing the natural environment, including fishery resources, and of providing reliable and efficient water supplies to expanding populations, especially in urban areas, can be met in a complementary manner through the use of integrated water supply management agreements.

PART VIII. LAND USE

NEW SECTION. Sec. 801. A new section is added to chapter 90.44 RCW to read as follows:

Where the department of fish and wildlife and the department of ecology find that ground water withdrawals exempt from the permit requirement of RCW 90.44.050 are contributing materially to the capture of water from a surface water body that provides habitat for salmon or trout populations listed or proposed to be listed under the federal endangered species act or determined by the department of fish and wildlife to be depressed or critical and where water can be used to protect and restore streamflows that are needed by such species and stocks, or in urban growth areas, the departments shall document such findings and provide them to the general purpose local governments, relevant watershed planning groups, the governor, and the appropriate water resource committees of the senate and the house of representatives.

Sec. 802. RCW 58.17.110 and 1995 c 32 s 3 are each amended to read as follows:

(1) The city, town, or county legislative body shall inquire into the public use and interest proposed to be served by the establishment of the subdivision and dedication. It shall determine: (a) If appropriate provisions are made for, but not limited to, the public health, safety, and general welfare, for open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies adequate for the intended uses within the subdivision, sanitary wastes, parks and recreation, playgrounds, schools and schoolgrounds, and shall consider all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who only walk to and from school; and (b) whether the public interest will be served by the subdivision and dedication.

(2) A proposed subdivision and dedication shall not be approved unless the city, town, or county legislative body makes written findings that: (a) Appropriate provisions are made for the public health, safety, and general welfare and for such open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies adequate for the intended uses within the subdivision, sanitary wastes, parks and recreation, playgrounds, schools and schoolgrounds and all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who only walk to and from school; and (b) the public use and interest will be served by the platting of such subdivision and dedication. If it finds that the proposed subdivision and dedication make such appropriate provisions and that the public use and interest will be served, then the legislative body shall approve the proposed subdivision and dedication. Dedication of land to any public body, provision of public improvements to serve the subdivision, and/or impact fees imposed under RCW 82.02.050 through 82.02.090 may be required as a condition of subdivision approval. Dedications shall be clearly shown on the final plat. No dedication, provision of public improvements, or impact fees imposed under RCW 82.02.050 through 82.02.090 shall be allowed that constitutes an unconstitutional taking of private property. The legislative body shall not as a condition to the approval of any subdivision require a release from damages to be procured from other property owners.

(3) If the preliminary plat includes a dedication of a public park with an area of less than two acres and the donor has designated that the park be named in honor of a deceased individual of good character, the city, town, or county legislative body must adopt the designated name.

NEW SECTION. Sec. 803. A new section is added to chapter 36.70A RCW to read as follows:

In addition to the requirements of RCW 36.70A.210(3), by September 1, 2002, the county-wide planning policies shall include policies to ensure that an adequate water supply is available for planned growth. The policies shall include provisions for coordination with public water and sewer providers. If the county has participated in either a coordinated water system planning process under chapter 70.116 RCW or a watershed planning process under chapter 90.82 RCW and a coordinated water system plan or watershed plan has been approved under chapter 70.116 RCW or RCW 90.82.130, respectively, the policies adopted under this section and such approved plans must be consistent. If the county is not participating in either a coordinated water system planning process under chapter 70.116 RCW or a watershed planning process under chapter 90.82 RCW, or if a plan has not yet been approved under either chapter 70.116 or 90.82 RCW, the county-wide planning policies required under this section shall be consistent with state law and rules adopted under state law.

Sec. 804. RCW 90.58.080 and 1995 c 347 s 305 are each amended to read as follows:

(1) Local governments shall develop or amend((~~, within twenty-four months after the adoption of guidelines as provided in RCW 90.58.060,~~)) a master program for regulation of uses of the shorelines of the state consistent with the required elements of the guidelines adopted by the department. Except as provided in subsection (2) of this section, master programs shall be reviewed for compliance with the guidelines and adopted or amended as necessary within twenty-four months after the adoption of guidelines as provided in RCW 90.58.060.

(2) Consistent with the priority salmon recovery regions and WRIA's map, as defined in the state-wide strategy to recover salmon volume 1, page V.95, and population growth data provided by the office of financial management, the following master program development or amendment schedule applies for guidelines adopted by the department before December 31, 2000:

(a) For King, Snohomish, Pierce, Clark, and Kitsap counties and the cities and towns therein with shorelines of the state, master programs shall be reviewed for compliance with the guidelines and adopted or amended as necessary within thirty-six months after the adoption of guidelines as provided in RCW 90.58.060;

(b) For Thurston, Whatcom, Benton, Yakima, Skagit, Cowlitz, Clallam, Chelan, Mason, Lewis, Jefferson, and Okanogan counties and the cities and towns therein with shorelines of the state, master programs shall be reviewed for compliance with the guidelines and adopted or amended as necessary within forty-eight months after the adoption of guidelines as provided in RCW 90.58.060;

(c) For all other counties, cities, and towns with shorelines of the state, master programs shall be reviewed for compliance with the guidelines and adopted or amended as necessary within sixty months after the adoption of guidelines amendments as provided in RCW 90.58.060.

(3) Local governments failing to meet the schedule provided in subsection (2) of this section shall not be eligible for grant moneys from the department pursuant to implementation of this section.

Sec. 805. RCW 90.82.070 and 1998 c 247 s 3 are each amended to read as follows:

Watershed planning under this chapter shall address water quantity in the management area by undertaking an assessment of water supply and use in the management area and developing strategies for future use.

(1) The assessment shall include:

(a) An estimate of the surface and ground water present in the management area;

(b) An estimate of the surface and ground water available in the management area, taking into account seasonal and other variations;

(c) An estimate of the water in the management area represented by claims in the water rights claims registry, water use permits, certificated rights, existing minimum instream flow rules, federally reserved rights, and any other rights to water;

(d) An estimate of the surface and ground water actually being used in the management area;

(e) An estimate of the water needed in the future for use in the management area;

(f) An identification of the location of areas where aquifers are known to recharge surface bodies of water and areas known to provide for the recharge of aquifers from the surface; ((~~and~~))

(g) An estimate of the surface and ground water available for further appropriation, taking into account the minimum instream flows adopted by rule or to be adopted by rule under this chapter for streams in the management area including the data necessary to evaluate necessary flows for fish;

(h) An estimate of ground water withdrawn from the management area by the use of individual and group domestic wells installed under the exemption provisions of RCW 90.44.050; and

(i) An estimate of physical characteristics of the management area that could provide increased water supplies through the use of additional water storage and water storage enhancements.

(2) Strategies for increasing water supplies in the management area, which may include, but are not limited to, increasing water supplies through water conservation, water reuse, the use of reclaimed water, voluntary water transfers, aquifer recharge and recovery, additional water allocations, or additional water storage and water storage enhancements. The objective of these strategies is to supply water in sufficient quantities to satisfy the minimum instream flows for fish and to provide water for future out-of-stream uses for water identified in subsection (1)(e) and (g) of this section and to ensure that adequate water supplies are available for agriculture, energy production, and population and economic growth under the requirements of the state's growth management act, chapter 36.70A RCW. These strategies, in and of themselves, shall not be construed to confer new water rights. The watershed plan must address the strategies required under this subsection.

PART IX. ENFORCEMENT

Sec. 901. RCW 75.20.106 and 1993 sp.s. c 2 s 35 are each amended to read as follows:

((The department may levy civil penalties of up to one hundred dollars per day for violation of any provisions of RCW 75.20.100 or 75.20.103. The penalty provided shall be imposed by notice in writing, either by certified mail or personal service to the person incurring the penalty, from the director or the director's designee describing the violation. Any person incurring any penalty under this chapter may appeal the same under chapter 34.05 RCW to the director. Appeals shall be filed within thirty days of receipt of notice imposing any penalty. The penalty imposed shall become due and payable thirty days after receipt of a notice imposing the penalty unless an appeal is filed. Whenever an appeal of any penalty incurred under this chapter is filed, the penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part.

If the amount of any penalty is not paid within thirty days after it becomes due and payable the attorney general, upon the request of the director shall bring an action in the name of the state of Washington in the superior court of Thurston county or of any county in which such violator may do business, to recover such penalty. In all such actions the procedure and rules of evidence shall be the same as an ordinary civil action. All penalties recovered under this section shall be paid into the state's general fund.))

(1) If any person or government agency fails to follow the requirements of obtaining hydraulic project approval under this chapter or fails to carry out any of the requirements or conditions of a hydraulic project approval issued under this chapter, the department may issue an order to that person or government agency. The order may require the person or government agency to stop work on any or all of the activities subject to the hydraulic project approval, to correct or to restore the nonconforming site, or to both stop work and to correct or to restore the nonconforming site. Within twenty days of service of such an order or as provided by rule of the department extending such time, the person may file a written petition with the department appealing the order, and this petition shall be treated as an application for an adjudicative proceeding under chapter 34.05 RCW. In the event of an appeal, a person or government agency may seek interim relief from an order under this section as provided in chapter 34.05 RCW.

(2) The department may adopt rules to designate that certain violations of the terms or conditions of hydraulic project approval are an infraction to be punished as provided by RCW 77.15.160. Any punishment under chapter 77.15 RCW shall be supplemental to the remedy provided by subsection (1) of this section.

Sec. 902. RCW 77.15.300 and 1998 c 190 s 52 are each amended to read as follows:

(1) A person is guilty of unlawfully undertaking hydraulic project activities if the person:

(a) Constructs any form of hydraulic project or performs other work on a hydraulic project and((:

~~(a)~~)) fails to have a hydraulic project approval required under chapter 75.20 RCW for such construction or work; ((or))

(b) Violates any requirements or conditions of the hydraulic project approval for such construction or work;

(c) Violates any stop work or other order issued under RCW 75.20.106 if that order has been either served on the person or posted at the site of the violation, except if the person acts in accordance with any relief under chapter 34.05 RCW pursuant to a timely appeal or timely relief from the department order; or

(d) Violates any rule governing small scale mining adopted under RCW 75.20.330, except if such a rule violation has been designated as an infraction by rule of the department.

(2) Unlawfully undertaking hydraulic project activities is a gross misdemeanor.

NEW SECTION. Sec. 903. A new section is added to chapter 90.58 RCW to read as follows:

If there are terms or conditions of the permit that are required to be completed after occupancy or use commences, or carried out as an ongoing part of occupancy or use, the local government may require the posting of a bond or other demonstration of financial responsibility as a condition of approval with regard to compliance with any one or all terms and conditions of approval. A local government may include compliance reporting requirements in any permit authorizing development under this chapter. Submittal of a report that makes false claims regarding the compliance of the project with permit requirements may be considered grounds for revocation of the permit and may be considered a separate violation of this chapter.

Sec. 904. RCW 90.03.600 and 1995 c 403 s 635 are each amended to read as follows:

(1) Except as provided in RCW 43.05.060 through 43.05.080 and 43.05.150, the power is granted to the department ((~~of ecology~~)) to levy civil penalties ((~~of up to~~)) from one to five hundred dollars per day for violation of any of the provisions of this chapter and chapters 43.83B, 90.22, ((~~and~~)) 90.44, 90.54, and 90.66 RCW, and rules, permits, ((~~and similar documents~~)) certificates, and regulatory orders of the department ((~~of ecology~~)) adopted or issued pursuant to such chapters. Each and every violation is a separate and distinct offense. Every act of commission or omission that results in, aids, or abets in the violation shall be considered a violation under this section and subject to the penalty as provided for in this section.

(2) A minor violation is a violation that does not seriously threaten public health, safety, or the environment and shall be subject to a penalty of no more than one hundred dollars. Minor violations include paperwork violations such as failure to provide metering records or other required water use records upon request.

(3) The procedures of RCW 90.48.144 shall be applicable to all phases of the levying of a penalty as well as review and appeal of the same.

Sec. 905. RCW 43.21B.300 and 1993 c 387 s 23 are each amended to read as follows:

(1) Any civil penalty provided in RCW 18.104.155, 70.94.431, 70.105.080, 70.107.050, 88.46.090, 90.03.600, 90.48.144, 90.56.310, and 90.56.330 shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the penalty from the department, the administrator of the ((~~office of marine safety~~)) integrated oil spill prevention and response program, or the local air authority, describing the violation with reasonable particularity. Within fifteen days after the notice is received, the person incurring the penalty may apply in writing to the department, the administrator, or the authority for the remission or mitigation of the penalty. Upon receipt of the application, the department, the administrator, or authority may remit or mitigate the penalty upon whatever terms the department, the administrator, or the authority in its discretion deems proper. The department or the authority may ascertain the facts regarding all such applications in such reasonable manner and under such rules as it may deem proper and shall remit or mitigate the penalty only upon a demonstration of extraordinary circumstances such as the presence of information or factors not considered in setting the original penalty.

(2) Any penalty imposed under this section may be appealed to the pollution control hearings board in accordance with this chapter if the appeal is filed with the hearings board and served on the department, the administrator, or authority thirty days after receipt by the person penalized of the notice imposing the penalty or thirty days after receipt of the notice of disposition of the application for relief from penalty.

(3) A penalty shall become due and payable on the later of:

(a) Thirty days after receipt of the notice imposing the penalty;

(b) Thirty days after receipt of the notice of disposition on application for relief from penalty, if such an application is made; or

(4) If the amount of any penalty is not paid to the department or the administrator within thirty days after it becomes due and payable, the attorney general, upon request of the department or the administrator, shall bring an action in the name of the state of Washington in the superior court of Thurston county, or of any county in which the violator does business, to recover the penalty. If the amount of the penalty is not paid to the authority within thirty days after it becomes due and payable, the authority may bring an action to recover the penalty in the superior court of the county of the authority's main office or of any county in which the violator does business. In these actions, the procedures and rules of evidence shall be the same as in an ordinary civil action.

(5) All penalties recovered shall be paid into the state treasury and credited to the general fund except those penalties imposed pursuant to RCW 18.104.155, which shall be credited to the reclamation account as provided in RCW 18.104.155(7), RCW 70.94.431, the disposition of which shall be governed by that provision, RCW 70.105.080, which shall be credited to the hazardous waste control and elimination account, created by RCW 70.105.180, ((~~and~~)) RCW 90.56.330, which shall be credited to the coastal protection fund created by RCW 90.48.390, and RCW 90.03.600, which shall be credited to the streamflow restoration account created by section 1104 of this act.

Sec. 906. RCW 90.08.040 and 1977 c 22 s 1 are each amended to read as follows:

(1) Where water rights of a stream or ground water source have been adjudicated a stream ((~~patrolman~~)) patroller shall be appointed by the director of the department of ecology upon application of water users having adjudicated water rights in each particular water resource making a reasonable showing of the necessity therefor((~~, which application shall have been approved by the district water master if one has been appointed,~~)) or upon determination by the department of ecology at such time, for such ((~~stream~~)) water source, and for such periods of service as local conditions may indicate to be necessary to provide the most practical supervision and to secure to water users and owners the best protection in their rights.

(2) The department may appoint a stream patroller for any area, regardless of whether it has been adjudicated, if required to assure proper supervision and protection of water rights, enforcement of minimum or base flows or other rules, or in response to a general decline in ground water levels.

(3) The stream ((~~patrolman~~)) patroller shall have the same powers as a water master appointed under RCW 90.03.060, but ((~~his~~)) the patroller's district shall be confined to the regulation of waters of a designated ((~~stream or streams~~)) source or sources. ((~~Such patrolman~~)) The patroller shall be under the supervision of the director or ((~~his~~)) the director's designated representative((~~. He~~)) and shall also enforce such special rules ((~~and regulations~~)) as the director may prescribe from time to time.

Sec. 907. RCW 90.08.060 and 1977 c 22 s 3 are each amended to read as follows:

(1) Where the water rights of a stream or ground water source have been adjudicated, the salary of the stream ((~~patrolman~~)) patroller shall be borne by the water users receiving the benefits and shall be paid to the county or counties in the following manner:

The county or counties ((~~may~~)) shall assess each water user for ((~~his~~)) the user's proportionate share of the total stream ((~~patrolman~~)) patroller expense in the same ratio that the amount of water authorized by a permit or certificate to be diverted or withdrawn or the amount of water claimed to be a water right by ((~~him~~)) the user bears to the total amount of water authorized by permits and certificates to be diverted or withdrawn plus the total amount claimed to be water rights from the ((~~stream during each season,~~)) water source on an annual basis, to recover all such county expenses. The stream ((~~patrolman~~)) patroller shall keep an accurate record of the amount of water authorized to be diverted or withdrawn by permits and certificates or the amount claimed by each water user coming under ((~~his~~)) the patroller's supervision. ((~~On the first of each month the stream patrolman~~)) Before the start of the irrigation season, the stream patroller shall present ((~~his~~)) the record of water diversion and withdrawal quantities to the county or counties for the ((~~preceding month~~)) purpose of billing the water users for their proportional share of stream patroller expenses. Where the water users are organized into an irrigation district or water users' association, such organization may enter into an agreement with the county or counties for direct payment to the stream ((~~patrolman~~)) patroller in order to minimize administrative costs.

(2) Where water rights of a stream or ground water source have not been adjudicated, stream patroller expenses may be funded and paid as provided in subsection (1) of this section, subject to the approval of the legislative body of the affected county or counties, or may be funded and paid by the department.

Sec. 908. RCW 90.03.070 and 1987 c 109 s 70 are each amended to read as follows:

It shall be the duty of the water master, acting under the direction of the department, to divide in whole or in part, the water supply of ((~~his~~)) the water master's designated district among the several water conduits and reservoirs using ((~~said~~)) the supply, according to the right and priority of each, respectively. ((He)) The water master shall divide, regulate, and control the use of water within ((~~his~~)) the district by such regulation of headgates, conduits, and reservoirs as shall be necessary to prevent the use of water in excess of the amount to which the owner of the right is lawfully entitled. The regulation shall be carried out in accordance with section 909 of this act. The water master shall also enforce instream flow levels established by rule and instream flow conditions imposed on water right permits and certificates. Whenever, in the pursuance of his or her duties, the water master regulates a headgate of a water conduit or the controlling works of a reservoir, he or she shall attach to such headgate or controlling works a written notice, properly dated and signed, stating that such headgate or controlling works has been properly regulated and is wholly under his or her control and such notice shall be a legal notice to all parties. In addition to dividing the available waters and supervising the stream ((~~patrolmen~~)) patrollers in ((~~his~~)) the district, ((he)) the water master shall enforce such rules ((~~and regulations~~)) as the department shall from time to time prescribe.

The county or counties in which water master districts are created shall deputize the water masters appointed hereunder, and may without charge provide to each water master suitable office space, supplies, equipment and clerical assistance as are necessary to the water master in the performance of his or her duties.

NEW SECTION. Sec. 909. A new section is added to chapter 43.27A RCW to read as follows:

REGULATORY POWERS. (1) The purpose of this section is to set forth the powers of the department to regulate the withdrawal or diversion of public waters and water or water rights related thereto, including regulation based on dates of priority or other pertinent factors. Regulatory actions taken under this section shall be based on examination and determination by the department of the various water rights involved according to the department's records and other records and pertinent facts. The powers set forth in this section may be exercised whether or not a general adjudication relating to the water rights involved has been conducted.

(2) In a regulatory situation (a) where a water right or all water rights proposed for regulation by the department, as well as any right or rights of a senior priority that the proposed regulation is designed to protect, is or are embodied in a certificate or certificates issued under RCW 90.03.240, 90.03.330, 90.38.040, 90.42.040, or 90.44.060 or a permit or permits issued under RCW 90.03.290 or 90.44.060; (b) where a flow or level has been established by rule under chapter 90.22 or 90.54 RCW; or (c) where it appears to the department that public waters are being withdrawn without any right or other appropriate authority whatsoever, the department in its discretion may regulate the right or rights under RCW 43.27A.190.

(3) This section does not amend, revise, or repeal RCW 90.14.130 or 90.14.200.

(4) This section does not in any way modify regulatory powers previously placed with the department except as provided in subsection (2) of this section.

NEW SECTION. Sec. 910. A new section is added to chapter 90.03 RCW to read as follows:

The department may establish and maintain a stream keeper volunteer program. Stream keeper volunteers shall be appointed by the director to assist with administration of the water code and be assigned to any water resource in the state, including but not limited to designated water master districts. The duties of stream keeper volunteers shall be limited to providing information and assistance regarding water use, facilitating cooperative arrangements among water right holders during periods of shortage, and other nonregulatory duties as determined by the department. The department may consult with the Washington State University cooperative extension service and other suitable entities regarding recruitment of stream keeper volunteers, as well as enter into agreements for education and training of volunteers.

PART X. FUTURE ACTION

NEW SECTION. Sec. 1001. The attorney general shall perform a study and prepare two reports to the legislature on water law issues. One report shall include a summary of the current statutory and case law on water and water rights in the state of Washington, a discussion of the major water policy issues currently pending in this state, and an identification of those areas in which further legislation would be helpful. In a separate report, the attorney general shall identify and discuss specific recommendations for the use of alternative dispute resolution and other out-of-court processes to resolve disputes concerning water rights. The attorney general's recommendations may include proposed legislation. The two reports shall be transmitted to the legislature not later than October 1, 1999.

NEW SECTION. Sec. 1002. WATER RESOURCE MANAGEMENT TASK FORCE. A water resource management task force is established to examine: (1) The present water allocation and management system for the state of Washington; (2) alternative means for managing water resources among competing interests; and (3) additional tools for meeting competing demands, including water storage opportunities.

The task force shall consist of eight members, two from each major caucus of the senate, appointed by the president of the senate; and two from each major caucus of the house of representatives, appointed by the co-speakers of the house of representatives. The task force shall use legislative staff and facilities. All expenses of the task force, including travel shall be paid jointly by the senate and the house of representatives.

The task force shall reports its findings and recommendations to the legislature by December 31, 2000.

This section expires January 10, 2000.

NEW SECTION. Sec. 1003. WATER RIGHTS INFORMATION. (1) The water resource management task force shall review the following subjects related to water rights information:

(a) Methods to create and maintain a water rights and water transfer registry that would update records of ownership of water rights, would be publicly accessible and integrated with data management systems maintained at the county level, and would incorporate other water rights-related information;

(b) Methods to ensure that purchasers of land with associated water rights receive pertinent information about the rights and that county land title records include such information;

(c) Methods to ensure that general stream adjudication decrees are kept current with information on new water rights, and water rights changes and transfers, including the sale of land with associated water rights, occurring since the original entry of the decree; and

(d) Recommendations on other measures to implement a comprehensive water rights data management system easily accessible by the public and by other governmental entities administering water-related programs.

(2) The water resource management task force shall submit its review and recommendations to the appropriate standing committees of the legislature no later than July 1, 2000.

NEW SECTION. Sec. 1004. CAPTURE OF SURFACE WATER BY WELLS. The department of ecology shall convene a group consisting of representatives from major stakeholder groups concerned with water resources management as well as scientists recognized for their expertise in the fields of hydrology, hydrogeology, fish biology, stream ecology, and stream restoration to review, assess, and recommend methods for mitigating the effects caused by proposed ground water withdrawals. The group shall consider all types of mitigation measures. The group shall make recommendations to the department of ecology for rules to implement the findings of the group and shall report on the group's progress, findings, and any recommendations for rule making to the legislature by December 31, 1999.

NEW SECTION. Sec. 1005. WATER RESOURCE MANAGEMENT SYSTEM FOR AGRICULTURE. (1) The governor shall convene a new negotiating group, or charge an existing negotiating group, to address the management of water resources that support both agriculture and fish, focusing on areas that have threatened and endangered species listed or proposed for listing under the federal endangered species act or salmonid stocks categorized as critical or depressed under the state salmon and steelhead stock inventory, but not limited to such areas. The group shall include, but not be limited to, the following interests: Agriculture, irrigation districts, water districts, environmental groups, local government, Indian tribes, the department of fish and wildlife, the department of ecology, conservation districts, and the department of agriculture. The process shall also include the national marine fisheries service, the United States fish and wildlife service, and other appropriate federal agencies.

(2) By July 1, 2001, the negotiating group shall develop a water resource management system that will sustain and perpetuate fish, habitat, and water resources, and shall identify administrative and statutory revisions required to implement the management system, including agricultural water use efficiency performance standards as required in section 311 of this act and other recommendations for rule making and for legislation.

(3) The water resource management system shall address agricultural water use efficiency performance standards; water conservation plans, programs, and methods needed to achieve the performance standards; eligibility criteria for use of state funding for drought preparedness; and use of existing water rights to irrigate additional acres or serve additional purposes. The management system may include criteria for grants and loans to public bodies engaged in irrigation water supply, management of ground water sources in hydraulic continuity with surface water, storage of water, management of water rights to protect streamflows, changes and transfers of water rights, and the establishment and operation of agricultural water markets.

PART XI. FUNDING

NEW SECTION. Sec. 1101. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2000, from the general fund to the attorney general's office solely for the purpose of section 1001 of this act.

Sec. 1102. RCW 43.99E.015 and 1990 1st ex.s. c 15 s 8 are each amended to read as follows:

For the purpose of providing funds for the planning, acquisition, construction, and improvement of water supply facilities within the state and water conservation within those facilities, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of sixty-five million dollars, or so much thereof as may be required, to finance the improvements defined in this chapter and all costs incidental thereto. These bonds shall be paid and discharged within thirty years of the date of issuance in accordance with Article VIII, section 1 of the state Constitution. No bonds authorized by this chapter may be offered for sale without prior legislative appropriation of the proceeds of the bonds to be sold.

Sec. 1103. RCW 43.99E.030 and 1996 c 320 s 21 are each amended to read as follows:

As used in this chapter, the term "water supply facilities" means domestic, municipal, industrial, and agricultural (and any associated fishery, recreational, or other beneficial use) water supply or distribution systems including but not limited to all equipment, utilities, structures, real property, and interests in and improvements on real property necessary for or incidental to the acquisition, construction, installation, or use of any such water supply or distribution system.

As used in this chapter, the term "public body" means the state of Washington or any agency, political subdivision, taxing district, local improvement district, or municipal or public corporation thereof; a board of joint control; an agency of the federal government; and those Indian tribes which may constitutionally receive grants or loans from the state of Washington.

NEW SECTION. Sec. 1104. A new section is added to chapter 90.42 RCW to read as follows:

The streamflow restoration account is created in the state treasury. All receipts from penalties under RCW 43.21B.300 and 90.03.600 must be deposited into the account. Expenditures from the account may be used only for the department of ecology to purchase or lease water rights for placement in the trust water rights program created in this chapter and chapter 90.38 RCW. Moneys in the streamflow restoration account may be spent only after appropriation.

NEW SECTION. Sec. 1105. If specific funding for the departments of ecology and fish and wildlife for the purposes of section 201 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 201 of this act is null and void.

NEW SECTION. Sec. 1106. If specific funding for the departments of ecology and health for the purposes of sections 301 through 305 of this act, referencing this act by bill or chapter and section numbers, is not provided by June 30, 1999, in the omnibus appropriations act, sections 301 through 305 of this act are null and void.

NEW SECTION. Sec. 1107. If specific funding for the departments of ecology and health for the purposes of section 311 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 311 of this act is null and void.

NEW SECTION. Sec. 1108. If specific funding for the departments of ecology and health for the purposes of sections 401 through 406 of this act, referencing this act by bill or chapter and section numbers, is not provided by June 30, 1999, in the omnibus appropriations act, sections 401 through 406 of this act are null and void.

NEW SECTION. Sec. 1109. If specific funding for the department of ecology for the purposes of section 501 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 501 of this act is null and void.

NEW SECTION. Sec. 1110. If specific funding for the departments of ecology and health, and fish and wildlife, for the purposes of sections 601 through 605 of this act, referencing this act by bill or chapter and section numbers, is not provided by June 30, 1999, in the omnibus appropriations act, sections 601 through 605 of this act are null and void.

NEW SECTION. Sec. 1111. If specific funding for the department of fish and wildlife for the purposes of sections 901 and 902 of this act, referencing this act by bill or chapter and section numbers, is not provided by June 30, 1999, in the omnibus appropriations act, sections 901 and 902 of this act are null and void.

NEW SECTION. Sec. 1112. If specific funding for the department of ecology for the purposes of sections 904 through 910 of this act, referencing this act by bill or chapter and section numbers, is not provided by June 30, 1999, in the omnibus appropriations act, sections 904 through 910 of this act are null and void.

NEW SECTION. Sec. 1113. If specific funding for the Washington water resources review commission for the purposes of section 1002 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 1002 of this act is null and void.

NEW SECTION. Sec. 1114. If specific funding for the purposes of section 1003 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 1003 of this act is null and void.

NEW SECTION. Sec. 1115. If specific funding for the purposes of section 1004 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 1004 of this act is null and void.

NEW SECTION. Sec. 1116. If specific funding for the office of the governor for the purposes of section 1005 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1999, in the omnibus appropriations act, section 1005 of this act is null and void.

PART XII. MISCELLANEOUS

NEW SECTION. Sec. 1201. RCW 90.22.060 (Instream flow evaluations‑-State-wide list of priorities--Salmon impact) and 1998 c 245 s 172 & 1993 sp.s. c 4 s 13 are each repealed.

NEW SECTION. Sec. 1202. TABLE OF CONTENTS, PART HEADINGS, AND SECTION CAPTIONS NOT LAW. The table of contents, part headings, and section captions used in this act are not any part of the law.