AN ACT Relating to salmon recovery funding; amending RCW 75.46.005, 75.46.010, 75.46.040, 75.46.050, 75.46.060, 75.46.070, 75.46.100, 75.46.080, and 76.12.110; amending 1999 c 309 s 114 (uncodified); amending 1999 c 309 s 129 (uncodified); amending 1999 c 309 s 304 (uncodified); adding new sections to chapter 75.46 RCW; adding a new section to Title 79A RCW; creating a new section; repealing RCW 75.46.130; making appropriations; providing an effective date; providing an expiration date; and declaring an emergency.

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

Sec. 1. RCW 75.46.005 and 1998 c 246 s 1 are each amended to read as follows:

The legislature finds that repeated attempts to improve salmonid fish runs throughout the state of Washington have failed to avert listings of salmon and steelhead runs as threatened or endangered under the federal endangered species act (16 U.S.C. Sec. 1531 et seq.). These listings threaten the sport, commercial, and tribal fishing industries as well as the economic well-being and vitality of vast areas of the state. It is the intent of the legislature to begin activities required for the recovery of salmon stocks as soon as possible, although the legislature understands that successful recovery efforts may not be realized for many years because of the life cycle of salmon and the complex array of natural and human-caused problems they face.

The legislature finds that it is in the interest of the citizens of the state of Washington for the state to retain primary responsibility for managing the natural resources of the state, rather than abdicate those responsibilities to the federal government, and that the state may best accomplish this objective by integrating local and regional recovery activities into a state-wide plan that can make the most effective use of provisions of federal laws allowing for a state lead in salmon recovery. The legislature also finds that a state-wide salmon recovery plan must be developed and implemented through an active public involvement process in order to ensure public participation in, and support for, salmon recovery. The legislature also finds that there is a substantial link between the provisions of the federal endangered species act and the federal clean water act (33 U.S.C. Sec. 1251 et seq.). The legislature further finds that habitat restoration is a vital component of salmon recovery efforts. Therefore, it is the intent of the legislature to specifically address salmon habitat restoration in a coordinated manner and to develop a structure that allows for the coordinated delivery of federal, state, and local assistance to communities for habitat projects that will assist in the recovery and enhancement of salmon stocks.

The legislature also finds that credible scientific review and oversight is essential for any salmon recovery effort to be successful.

The legislature further finds that it is important to monitor the overall health of the salmon resource to determine if recovery efforts are providing expected returns. It is important to monitor salmon habitat projects and salmon recovery activities to determine their effectiveness in order to secure federal acceptance of the state's approach to salmon recovery. Adaptive management cannot exist without monitoring. For these reasons, the legislature believes that a coordinated and integrated monitoring process should be developed.

The legislature therefore finds that a coordinated framework for responding to the salmon crisis is needed immediately. To that end, the salmon recovery office should be created within the governor's office to provide overall coordination of the state's response; an independent science ((~~team~~)) panel is needed to provide scientific review and oversight; a coordinated state funding process should be established through a salmon recovery funding board; the appropriate local or tribal government should provide local leadership in identifying and sequencing habitat ((~~restoration~~)) projects to be funded by state agencies; habitat ((~~restoration~~)) projects should be implemented without delay; and a strong locally based effort to restore salmon habitat should be established by providing a framework to allow citizen volunteers to work effectively.

*Sec. 2. RCW 75.46.010 and 1998 c 246 s 2 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Adaptive management" means reliance on scientific methods to test the results of actions taken so that the management and related policy can be changed promptly and appropriately.

(2) "Board" means the salmon recovery funding board created in section 3 of this act.

(3) "Critical pathways methodology" means a project scheduling and management process for examining interactions between habitat projects and salmonid species, prioritizing habitat projects, and assuring positive benefits from habitat projects.

((~~(3)~~)) (4) "Habitat project list" is the list of habitat projects resulting from the critical pathways methodology under RCW 75.46.070(2) that shall receive consideration for funding by the salmon recovery funding board. Each project on the list must have a written agreement from the landowner on whose land the project will be implemented, and must be based on the limiting factors analysis conducted in RCW 75.46.070 when completed.

(5) "Habitat projects" or "projects" include but are not limited to habitat restoration projects, habitat protection projects, habitat projects that improve water quality, habitat projects that protect water quality, habitat-related mitigation projects, and habitat project corrective maintenance and monitoring activities. Projects that include the use of side channels, off-stream rearing enhancement, improvement in overwintering habitat, or use of acclimation ponds shall receive consideration for funding.

((~~(4)~~)) (6) "Habitat work schedule" means those projects from the habitat project list that will be implemented during the current funding cycle. The schedule shall also include a list of the entities and individuals implementing projects, the start date, duration, estimated date of completion, estimated cost, and funding sources for the projects.

((~~(5)~~)) (7) "Limiting factors" means conditions that limit the ability of habitat to fully sustain populations of salmon. ((~~These factors are primarily fish passage barriers and degraded estuarine areas, riparian corridors, stream channels, and wetlands.~~

~~(6)~~)) (8) "Listed stocks" means salmon and trout stocks that are listed or proposed for listing as threatened or endangered under the federal endangered species act, 16 U.S.C. Sec. 1531 et seq.

(9) "Project sponsor" is a county, city, special district, tribal government, state agency, a combination of such governments through interlocal or interagency agreement((~~s provided under chapter 39.34 RCW~~)), a nonprofit organization, or one or more private citizens.

((~~(7)~~)) (10) "Salmon" includes all species of the family Salmonidae which are capable of self-sustaining, natural production except for Atlantic salmon.

(11) "Salmon recovery activities" or "activities" includes but is not limited to habitat protection or restoration activities by local governments, tribes, other public entities, and private entities. The activities must have as a principal purpose the protection and restoration of salmonid populations. "Activities" may include: Preparation of stream corridor guidelines, programmatic permitting, and preparation of geographic information system protocols. "Activities" do not include updates related to the growth management act.

(12) "Salmon recovery plan" means a state plan developed in response to a proposed or actual listing under the federal endangered species act that addresses limiting factors including, but not limited to harvest, hatchery, hydropower, habitat, and other factors of decline.

((~~(9)~~)) (13) "Interagency team" or "team" means the interagency review team created in RCW 75.46.080.

(14) "Tribe" or "tribes" means federally recognized Indian tribes.

((~~(10)~~)) (15) "WRIA" means a water resource inventory area established in chapter 173-500 WAC as it existed on January 1, 1997.

((~~(11)~~)) (16) "Owner" means the person holding title to the land or the person under contract with the owner to lease or manage the legal owner's property.

(17) "SASSI" means the salmon and steelhead stock inventory report and appendices.

(18) "SSHIAP" means the salmon and steelhead habitat inventory and assessment project.

(19) "Technical review team" means the salmon recovery technical review team created in section 7 of this act.

*Sec. 2 was vetoed. See message at end of chapter.

NEW SECTION. Sec. 3. A new section is added to chapter 75.46 RCW to read as follows:

(1) The salmon recovery funding board is created consisting of ten members.

(2) Five members of the board shall be voting members who are appointed by the governor, subject to confirmation by the senate. One of these voting members shall be a cabinet-level appointment as the governor's representative to the board. Board members who represent the general public shall not have a financial or regulatory interest in salmon recovery. The governor shall appoint one of the general public members of the board as the chair. The voting members of the board shall be appointed for terms of four years, except that two members initially shall be appointed for terms of two years and three members shall initially be appointed for terms of three years. In making the appointments, the governor shall seek a board membership that collectively provide the expertise necessary to provide strong fiscal oversight of salmon recovery expenditures, and that provide extensive knowledge of local government processes and functions and an understanding of issues relevant to salmon recovery in Washington state. The governor shall appoint at least three of the voting members of the board no later than ninety days after the effective date of this section. Vacant positions on the board shall be filled in the same manner as the original appointments. The governor may remove members of the board for good cause.

In addition to the five voting members of the board, the following five state officials shall serve as ex officio nonvoting members of the board: The director of the department of fish and wildlife, the executive director of the conservation commission, the secretary of transportation, the director of the department of ecology, and the commissioner of public lands. The state officials serving in an ex officio capacity may designate a representative of their respective agencies to serve on the board in their behalf. Such designations shall be made in writing and in such manner as is specified by the board.

(3) Staff support to the board shall be provided by the interagency committee for outdoor recreation. For administrative purposes, the board shall be located with the interagency committee for outdoor recreation.

(4) Members of the board who do not represent state agencies shall be compensated as provided by RCW 43.03.250. Members of the board shall be reimbursed for travel expenses as provided by RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 4. A new section is added to chapter 75.46 RCW to read as follows:

(1) The board is responsible for making grants and loans for salmon habitat projects and salmon recovery activities from the amounts appropriated to the board for this purpose. To accomplish this purpose the board may:

(a) Provide assistance to grant applicants regarding the procedures and criteria for grant and loan awards;

(b) Make and execute all manner of contracts and agreements with public and private parties as the board deems necessary, consistent with the purposes of this chapter;

(c) Accept any gifts, grants, or loans of funds, property, or financial or other aid in any form from any other source on any terms that are not in conflict with this chapter;

(d) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and

(e) Do all acts and things necessary or convenient to carry out the powers expressly granted or implied under this chapter.

(2) The interagency committee for outdoor recreation shall provide all necessary grants and loans administration assistance to the board, and shall distribute funds as provided by the board in section 5 of this act.

NEW SECTION. Sec. 5. A new section is added to chapter 75.46 RCW to read as follows:

(1) The board shall develop procedures and criteria for allocation of funds for salmon habitat projects and salmon recovery activities on a state-wide basis to address the highest priorities for salmon habitat protection and restoration. To the extent practicable the board shall adopt an annual allocation of funding. The allocation should address both protection and restoration of habitat, and should recognize the varying needs in each area of the state on an equitable basis. The board has the discretion to partially fund, or to fund in phases, salmon habitat projects. The board may annually establish a maximum amount of funding available for any individual project, subject to available funding. No projects required solely as a mitigation or a condition of permitting are eligible for funding.

(2)(a) In evaluating, ranking, and awarding funds for projects and activities the board shall give preference to projects that:

(i) Are based upon the limiting factors analysis identified under RCW 75.46.070;

(ii) Provide a greater benefit to salmon recovery based upon the stock status information contained in the department of fish and wildlife salmonid stock inventory (SASSI), the salmon and steelhead habitat inventory and assessment project (SSHIAP), and any comparable science-based assessment when available;

(iii) Will benefit listed species and other fish species; and

(iv) Will preserve high quality salmonid habitat.

(b) In evaluating, ranking, and awarding funds for projects and activities the board shall also give consideration to projects that:

(i) Are the most cost-effective;

(ii) Have the greatest matched or in-kind funding; and

(iii) Will be implemented by a sponsor with a successful record of project implementation.

(3) The board may reject, but not add, projects from a habitat project list submitted by a lead entity for funding.

(4) For fiscal year 2000, the board may authorize the interagency review team to evaluate, rank, and make funding decisions for categories of projects or activities or from funding sources provided for categories of projects or activities. In delegating such authority the board shall consider the review team's staff resources, procedures, and technical capacity to meet the purposes and objectives of this chapter. The board shall maintain general oversight of the team's exercise of such authority.

(5) The board shall seek the guidance of the technical review team to ensure that scientific principles and information are incorporated into the allocation standards and into proposed projects and activities. If the technical review team determines that a habitat project list complies with the critical pathways methodology under RCW 75.46.070, it shall provide substantial weight to the list's project priorities when making determinations among applications for funding of projects within the area covered by the list.

(6) The board shall establish criteria for determining when block grants may be made to a lead entity or other recognized regional recovery entity consistent with one or more habitat project lists developed for that region. Where a lead entity has been established pursuant to RCW 75.46.060, the board may provide grants to the lead entity to assist in carrying out lead entity functions under this chapter, subject to available funding. The board shall determine an equitable minimum amount of funds for each region, and shall distribute the remainder of funds on a competitive basis.

(7) The board may waive or modify portions of the allocation procedures and standards adopted under this section in the award of grants or loans to conform to legislative appropriations directing an alternative award procedure or when the funds to be awarded are from federal or other sources requiring other allocation procedures or standards as a condition of the board's receipt of the funds. The board shall develop an integrated process to manage the allocation of funding from federal and state sources to minimize delays in the award of funding while recognizing the differences in state and legislative appropriation timing.

NEW SECTION. Sec. 6. A new section is added to chapter 75.46 RCW to read as follows:

(1) Habitat project lists shall be submitted to the salmon recovery funding board for funding by January 1st and July 1st of each year beginning in 2000. The board shall provide the legislature with a list of the proposed projects and a list of the projects funded by October 1st of each year beginning in 2000 for informational purposes.

(2) The interagency committee for outdoor recreation shall track all funds allocated for salmon habitat projects and salmon recovery activities on behalf of the board, including both funds allocated by the board and funds allocated by other state or federal agencies for salmon recovery or water quality improvement.

(3) Beginning in December 2000, the board shall provide a biennial report to the governor and the legislature on salmon recovery expenditures. This report shall be coordinated with the state of the salmon report required under RCW 75.46.030.

*NEW SECTION. Sec. 7. A new section is added to chapter 75.46 RCW to read as follows:

(1) The salmon recovery technical review team is created. The technical review team is composed of no less than five members selected by the director of fish and wildlife. The director shall ensure that lead scientists representing state, tribal, federal, and local government interests are represented on the technical review team, and shall include members representing the private sector. Members of the technical review team shall have an educational and professional scientific background in salmonids, salmonid habitat, or related fields. The members of the technical review team shall not serve any fixed term. The numbers of members of the technical review team may be increased or decreased depending on the need for scientific expertise, but the technical review team must always consist of at least five members. Administrative support for the technical review team is provided by the department of fish and wildlife. Assignments and direction to the technical review team shall be made by the chair of the technical review team. The chair of the technical review team shall be designated by the members of the team.

(2) The technical review team is responsible for receiving habitat project lists submitted by lead entities under RCW 75.46.060, for screening and ranking projects on such lists, for providing its ranking of projects, within categories on a statewide basis, to the board, and determining whether the critical pathways methodology under RCW 75.46.070 has been complied with in the development and ranking of projects on the habitat project list. The technical review team shall review and rank the projects submitted from across the state for funding, organize pertinent information, and provide the board with its findings. The technical review team shall make an active effort to communicate the criteria for reviewing and ranking projects with the lead entities. The technical review team shall make information available to lead entities regarding deficiencies in projects that result in their low ranking in the review process. The technical review team may not remove a project from a habitat project list.

(3) The technical review team is also responsible for working in conjunction with the independent science panel to develop standardized monitoring indicators and data quality guidelines for habitat projects and salmon recovery activities across the state, and for recommending criteria for the systematic and periodic evaluation of monitoring data to help ensure the effectiveness of the state's salmon recovery efforts.

*Sec. 7 was vetoed. See message at end of chapter.

Sec. 8. RCW 75.46.040 and 1998 c 246 s 5 are each amended to read as follows:

(1) The salmon recovery office is created within the office of the governor to coordinate state strategy to allow for salmon recovery to healthy sustainable population levels with productive commercial and recreational fisheries. The primary purpose of the office is to coordinate and assist in the development of salmon recovery plans for evolutionarily significant units, and submit those plans to the appropriate tribal governments and federal agencies ((~~in response to the federal endangered species act~~)) as an integral part of a state-wide strategy developed consistent with the guiding principles and procedures under section 9 of this act. The governor's salmon recovery office may also:

(a) Act as liaison to local governments, the state congressional delegation, the United States congress, federally recognized tribes, and the federal executive branch agencies for issues related to the state's endangered species act salmon recovery plans; and

(b) Provide the biennial state of the salmon report to the legislature pursuant to RCW 75.46.030.

(2) This section expires June 30, 2006.

NEW SECTION. Sec. 9. A new section is added to chapter 75.46 RCW to read as follows:

(1) By September 1, 1999, the governor, with the assistance of the salmon recovery office, shall submit a state-wide salmon recovery strategy to the appropriate federal agencies administering the federal endangered species act.

(2) The governor and the salmon recovery office shall be guided by the following considerations in developing the strategy:

(a) The strategy should identify state-wide initiatives and responsibilities with regional and local watershed initiatives as the principal mechanism for implementing the strategy;

(b) The strategy should emphasize collaborative, incentive-based approaches;

(c) The strategy should address all factors limiting the recovery of Washington's listed salmon stocks, including habitat and water quality degradation, harvest and hatchery management, inadequate streamflows, and other barriers to fish passage. Where other limiting factors are beyond the state's jurisdictional authorities to respond to, such as some natural predators and high seas fishing, the strategy shall include the state's requests for federal action to effectively address these factors;

(d) The strategy should identify immediate actions necessary to prevent extinction of a listed salmon stock, establish performance measures to determine if restoration efforts are working, recommend effective monitoring and data management, and recommend to the legislature clear and certain measures to be implemented if performance goals are not met;

(e) The strategy shall rely on the best scientific information available and provide for incorporation of new information as it is obtained;

(f) The strategy should seek a fair allocation of the burdens and costs upon economic and social sectors of the state whose activities may contribute to limiting the recovery of salmon; and

(g) The strategy should seek clear measures and procedures from the appropriate federal agencies for removing Washington's salmon stocks from listing under the federal act.

(3) Beginning on September 1, 2000, the strategy shall be updated through an active public involvement process, including early and meaningful opportunity for public comment. In obtaining public comment, the salmon recovery office shall hold public meetings throughout the state and shall encourage regional and local recovery planning efforts to similarly ensure an active public involvement process.

(4) This section shall apply prospectively only and not retroactively. Nothing in this section shall be construed to invalidate actions taken in recovery planning at the local, regional, or state level prior to the effective date of this section.

Sec. 10. RCW 75.46.050 and 1998 c 246 s 6 are each amended to read as follows:

(1) The governor shall request the national academy of sciences, the American fisheries society, or a comparable institution to screen candidates to serve as members on the independent science panel. The institution that conducts the screening of the candidates shall submit a list of the nine most qualified candidates to the governor, the speaker of the house of representatives, and the majority leader of the senate. The candidates shall reflect expertise in habitat requirements of salmon, protection and restoration of salmon populations, artificial propagation of salmon, hydrology, or geomorphology.

(2) The speaker of the house of representatives and the majority leader in the senate ((~~shall~~)) may each remove one name from the nomination list. The governor shall consult with tribal representatives and the governor shall appoint five scientists from the remaining names on the nomination list.

(3) The members of the independent science panel shall serve four-year terms. Vacant positions on the panel shall be filled in the same manner as the original appointments. Members shall serve no more than two full terms. The independent science panel members shall elect the chair of the panel among themselves every two years. ((~~The members of the independent science panel shall be compensated as provided in RCW 43.03.250 and reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.~~)) Based upon available funding, the governor's salmon recovery office may contract for services with members of the independent science panel for compensation under chapter 39.29 RCW.

(4) The independent science panel shall be governed by generally accepted guidelines and practices governing the activities of independent science boards such as the national academy of sciences. The purpose of the independent science panel is to help ensure that sound science is used in salmon recovery efforts. The governor's salmon recovery office shall request review of salmon recovery plans by the science review panel. The science ((~~review~~)) panel does not have the authority to review individual projects or habitat project lists developed under RCW 75.46.060, 75.46.070, and 75.46.080 or to make policy decisions. The panel shall periodically submit its findings and recommendations under this subsection to the legislature and the governor.

(5) The independent science panel ((~~shall submit its findings to the legislature and the governor~~)), in conjunction with the technical review team, shall recommend standardized monitoring indicators and data quality guidelines for use by entities involved in habitat projects and salmon recovery activities across the state.

(6) The independent science panel, in conjunction with the technical review team, shall also recommend criteria for the systematic and periodic evaluation of monitoring data in order for the state to be able to answer critical questions about the effectiveness of the state's salmon recovery efforts.

(7) The recommendations on monitoring as required in this section shall be provided in a report to the governor and to the legislature by the independent science panel, in conjunction with the salmon recovery office, no later than December 31, 2000. The report shall also include recommendations on the level of effort needed to sustain monitoring of salmon projects and other recovery efforts, and any other recommendations on monitoring deemed important by the independent science panel and the technical review team. The report may be included in the biennial state of the salmon report required under RCW 75.46.030.

Sec. 11. RCW 75.46.060 and 1998 c 246 s 7 are each amended to read as follows:

(1)(a) Counties, cities, and tribal governments must jointly designate, by ((~~official~~)) resolution or by letters of support, the area for which a habitat ((~~restoration~~)) project list is to be developed and the lead entity that is to be responsible for submitting the habitat ((~~restoration~~)) project list. No project included on a habitat ((~~restoration~~)) project list shall be considered mandatory in nature and no private landowner may be forced or coerced into participation in any respect. The lead entity may be a county, city, conservation district, special district, tribal government, or other entity.

(b) The lead entity shall establish a committee that consists of representative interests of counties, cities, conservation districts, tribes, environmental groups, business interests, landowners, citizens, volunteer groups, regional fish enhancement groups, and other ((~~restoration~~)) habitat interests. The purpose of the committee is to provide a citizen-based evaluation of the projects proposed to promote salmon habitat ((~~restoration~~)). The ((~~interagency~~)) technical review team may provide the lead entity with organizational models that may be used in establishing the committees.

(c) The committee shall compile a list of habitat ((~~restoration~~)) projects, establish priorities for individual projects, define the sequence for project implementation, and submit these activities as the habitat ((~~restoration~~)) project list. The committee shall also identify potential federal, state, local, and private funding sources.

(2) The area covered by the habitat project list must be based, at a minimum, on a WRIA, combination of WRIAs, ((~~an evolutionarily significant unit,~~)) or any other area as agreed to by the counties, cities, and tribes in resolutions or in letters of support meeting the requirements of this subsection. Preference will be given to projects in an area that contain a salmon species that is listed or proposed for listing under the federal endangered species act.

(3) The lead entity shall submit the habitat project list to the technical review team in accordance with procedures adopted by the board.

Sec. 12. RCW 75.46.070 and 1998 c 246 s 8 are each amended to read as follows:

(1) Critical pathways methodology shall be used to develop a habitat project list and a habitat work schedule that ensures salmon ((~~restoration activities~~)) habitat projects will be prioritized and implemented in a logical sequential manner that produces habitat capable of sustaining healthy populations of salmon.

(2) The critical pathways methodology shall:

(a) Include a limiting factors analysis for salmon in streams, rivers, tributaries, estuaries, and subbasins in the region. The technical advisory group shall have responsibility for the limiting factors analysis;

(b) Identify local habitat projects that sponsors are willing to undertake. The projects identified must have a written agreement from the landowner on which the project is to be implemented. Project sponsors shall have the lead responsibility for this task;

(c) Identify how projects will be monitored and evaluated. The project sponsor, in consultation with the technical advisory group and the appropriate landowner, shall have responsibility for this task; ((~~and~~))

(d) Include a review of monitoring data, evaluate project performance, and make recommendations to the committee established under RCW 75.46.060 and to the technical review team. The technical advisory group has responsibility for this task; and

(e) Describe the adaptive management strategy that will be used. The committee established under RCW 75.46.060 shall have responsibility for this task. If a committee has not been formed, the technical advisory group shall have the responsibility for this task.

(3) The habitat work ((~~list~~)) schedule shall include all projects developed pursuant to subsection (2) of this section ((~~as well as~~)), and shall identify and coordinate with any other salmon habitat ((~~restoration~~)) project implemented in the region, including habitat preservation projects funded through the Washington wildlife and recreation program, the conservation reserve enhancement program, and other conservancy programs. The habitat work ((~~list~~)) schedule shall also include the start date, duration, estimated date of completion, estimated cost, and, if appropriate, the affected salmonid species of each project. Each schedule shall be updated on an annual basis to depict new activities.

NEW SECTION. Sec. 13. A new section is added to chapter 75.46 RCW to read as follows:

State salmon monitoring data provided by lead entities, regional fisheries enhancement groups, and others shall be included in the data base of SASSI and SSHIAP. Information pertaining to habitat preservation projects funded through the Washington wildlife and recreation program, the conservation reserve enhancement program, and other conservancy programs related to salmon habitat shall be included in the SSHIAP data base.

Sec. 14. RCW 75.46.100 and 1998 c 246 s 11 are each amended to read as follows:

The sea grant program at the University of Washington is authorized to provide technical assistance to volunteer groups and other project sponsors in designing and ((~~performing~~)) implementing habitat ((~~restoration~~)) projects that address the limiting factors analysis ((~~of regional habitat work plans~~)) required under RCW 75.46.070. The cost for such assistance may be covered on a fee-for-service basis.

Sec. 15. RCW 75.46.080 and 1998 c 246 s 9 are each amended to read as follows:

(1) Representatives from the conservation commission, the department of transportation, the department of natural resources, the department of ecology, and the department of fish and wildlife shall establish an interagency review team. ((~~Except as provided in subsection (6) of this section,~~)) Habitat restoration project lists shall be submitted to the interagency review team by January 1st and July 1st of each year ((~~beginning in 1999~~)). The purpose of the team is to assist the salmon recovery funding board in developing procedures and standards for state-wide funding allocation, and to assist the board in reviewing funding applications to identify the highest priority projects and activities for funding.

(2) ((If no lead entity has been formed under RCW 75.46.060, the interagency review team shall rank, prioritize, and dispense funds for habitat restoration projects by giving preference to the projects that:

~~(a) Provide a greater benefit to salmon recovery;~~

~~(b) Will be implemented in a more critical area;~~

~~(c) Are the most cost-effective;~~

~~(d) Have the greatest matched, or in-kind funding; and~~

~~(e) Will be implemented by a sponsor with a successful record of project implementation.~~

~~(3)~~)) If a lead entity established under RCW 75.46.060 has been formed, the interagency review team shall evaluate habitat project lists ((~~and may remove, but not add, projects from a habitat project list.~~

~~(4) The interagency review team shall provide a summary of funding for habitat restoration project lists to the governor and to the legislature by December 1st of each year~~)) developed pursuant to RCW 75.46.060 and submitted to the board for consideration for funding. The team shall advise the board on whether the list for the area complies with the list development procedures and critical path methodology provided by RCW 75.46.060 and 75.46.070. When the board determines the list to comply with those requirements it shall accord substantial weight to the list's project priorities when making determinations among applications for funding of projects and activities within the area covered by the list. Projects that include use of side channels, off-stream rearing enhancement, improvement in overwintering habitat, or use of acclimation ponds shall receive consideration for funding.

((~~(5)~~)) (3) The ((~~interagency review team~~)) board may annually establish a maximum amount of funding available for any individual project, subject to available funding. ((~~The interagency review team shall attempt to assure a geographical balance in assigning priorities to projects.~~

(6) For fiscal year 1998, the department of fish and wildlife, the conservation commission, and the department of transportation may authorize, subject to appropriations, expenditures for projects that have been developed to restore salmon habitat before completion of the project lists required in RCW 75.46.060(2).

~~(7)~~)) (4) Where a lead entity has been established pursuant to RCW 75.46.060, the ((~~interagency review team~~)) board may provide ((~~block~~)) grants to the lead entity to assist in carrying out lead entity functions under this chapter, subject to available funding.

(5) The interagency review team shall review, rank, and approve projects submitted for funding until January 1, 2000.

(6) This section expires July 1, 2000.

NEW SECTION. Sec. 16. A new section is added to chapter 75.46 RCW to read as follows:

The salmon recovery account is created in the state treasury. To the account shall be deposited such funds as the legislature directs or appropriates to the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for salmon recovery.

NEW SECTION. Sec. 17. A new section is added to Title 79A RCW to read as follows:

The interagency committee for outdoor recreation shall provide necessary grants and loan administration support to the salmon recovery funding board as provided in section 4 of this act. The committee shall also be responsible for tracking salmon recovery expenditures under section 6 of this act. The committee shall provide all necessary administrative support to the board, and the board shall be located with the committee. The committee shall coordinate its activities under this section with the salmon recovery technical review team created in section 7 of this act and provide necessary information to the salmon recovery office.

Sec. 18. RCW 76.12.110 and 1998 c 347 s 55 are each amended to read as follows:

There is created a forest development account in the state treasury. The state treasurer shall keep an account of all sums deposited therein and expended or withdrawn therefrom. Any sums placed in the account shall be pledged for the purpose of paying interest and principal on the bonds issued by the department, and for the purchase of land for growing timber. Any bonds issued shall constitute a first and prior claim and lien against the account for the payment of principal and interest. No sums for the above purposes shall be withdrawn or paid out of the account except upon approval of the department.

Appropriations may be made by the legislature from the forest development account to the department for the purpose of carrying on the activities of the department on state forest lands, lands managed on a sustained yield basis as provided for in RCW 79.68.040, and for reimbursement of expenditures that have been made or may be made from the resource management cost account in the management of state forest lands. ((For the 1997-99 fiscal biennium, moneys from the account shall be distributed as directed in the omnibus appropriations act to the beneficiaries of the revenues derived from state forest lands. Funds that accrue to the state from such a distribution shall be deposited into the salmon recovery account, hereby created in the state treasury. Funds appropriated from the salmon recovery account shall be used for efforts to restore endangered anadromous fish stocks.))

*Sec. 19. 1999 c 309 s 114 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE GOVERNOR

General Fund‑-State Appropriation (FY 2000).... $ ((~~5,762,000~~))

5,700,000

General Fund‑-State Appropriation (FY 2001).... $ ((~~5,720,000~~))

5,657,000

General Fund‑-Federal Appropriation............. $ 674,000

Water Quality Account‑-State Appropriation..... $ 700,000

TOTAL APPROPRIATION................. $ ((~~12,856,000~~))

12,731,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,612,000 of the general fund‑-state appropriation for fiscal year 2000, $1,588,000 of the general fund‑-state appropriation for fiscal year 2001, $700,000 of the water quality account appropriation, and $209,000 of the general fund‑-federal appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items PSAT-01 through PSAT-05.

(2) $465,000 of the general fund‑-federal appropriation and $200,000 of the general fund‑-state appropriation are provided solely for the salmon recovery office to meet its responsibilities for the state-wide salmon recovery strategy. Of this amount: (a) $200,000 of the general fund‑-state appropriation is provided for the operation of the independent science panel; and (b) $465,000 of the general fund‑-federal appropriation is provided for the salmon recovery office staff to support local salmon recovery planning efforts. $232,500 of the general fund‑-federal appropriation in this subsection may be expended in each fiscal year of the biennium only if the state receives greater than $25,000,000 from the federal government for salmon recovery activities in that fiscal year. Funds authorized for expenditure in fiscal year 2000 may be expended in fiscal year 2001.

(((3) $62,000 of the fiscal year 2000 general fund‑-state appropriation and $63,000 of the fiscal year 2001 general fund‑-state appropriation are provided solely to implement Second Substitute Senate Bill No. 5595 or Engrossed Substitute House Bill No. 2079, establishing the salmon recovery funding board in the office of the governor. If legislation establishing the board is not enacted by June 30, 1999, the amounts provided in this subsection shall lapse.))

*Sec. 19 was vetoed. See message at end of chapter.

*Sec. 20. 1999 c 309 s 129 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund‑-State Appropriation (FY 2000).... $ ((~~12,791,000~~))

12,716,000

General Fund‑-State Appropriation (FY 2001).... $ ((~~11,855,000~~))

11,780,000

General Fund‑-Federal Appropriation............. $.................................. 23,340,000

General Fund‑-Private/Local Appropriation...... $ 500,000

TOTAL APPROPRIATION................. $ ((~~48,486,000~~))

48,336,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $50,000 of the general fund‑-state appropriation for fiscal year 2000 is provided solely to evaluate and promote the use by state and local agencies of the training facilities at the Hanford reservation.

(2) Funding in this section provides for a feasibility study to collect Washington enrollment data on distance learning programs sponsored by in-state and out-of-state private institutions in cooperation with the higher education coordinating board and the state board for community and technical colleges. Findings shall be submitted to the appropriate committees of the legislature by January 2000.

(3) (($75,000 of the fiscal year 2000 general fund‑-state appropriation and $75,000 of the fiscal year 2001 general fund‑-state appropriation are provided solely to track and administer state and federal funding for salmon recovery allocated by the salmon recovery funding board established under Second Substitute Senate Bill No. 5595 or Engrossed Substitute House Bill No. 2079.

~~(4)~~)) The office of financial management, in collaboration with the institutions of higher education, the higher education coordinating board, and the state board for community and technical colleges, shall modify state information systems in order to provide consistent data on students engaged in distance learning. Higher education institutions shall provide enrollment information in support of this effort. Reporting on the numbers and categories of students enrolled in distance learning by class level and institutions shall begin by fall term, 2000. Washington independent institutions of higher education are encouraged to participate in this process and to provide distance learner enrollment data.

((~~(5)~~)) (4) $1,000,000 of the general fund‑-state appropriation and $500,000 of the general fund‑-private/local appropriation are provided solely for the commission on early learning. One-half of the amount provided from the general fund‑-state shall not be expended unless matched by an equal amount from private sources.

*Sec. 20 was vetoed. See message at end of chapter.

Sec. 21. 1999 c 309 s 304 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

General Fund‑-State Appropriation (FY 2000)......... $ 137,000

General Fund‑-State Appropriation (FY 2001)......... $ 138,000

Firearms Range Account‑-State Appropriation......... $ 34,000

Recreation Resources Account‑-State Appropriation.... $................................................ 2,370,000

Recreation Resources Account‑-Federal Appropriation. $ 11,000

NOVA Program Account‑-State Appropriation........... $ 604,000

TOTAL APPROPRIATION...................... $ ((~~3,019,000~~))

3,294,000

The appropriations in this section are subject to the following condition and limitation: $137,000 of the fiscal year 2000 general fund‑-state appropriation and $138,000 of the fiscal year 2001 general fund‑-state appropriation are provided solely to implement Second Substitute Senate Bill No. 5595 or Engrossed Substitute House Bill No. 2079 (salmon recovery). If legislation establishing the board is not enacted by June 30, 1999, the amounts provided in this subsection shall lapse.

*NEW SECTION. Sec. 22. FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Salmon Recovery Grants Program (00-2-001)

The appropriations in this section are subject to the following conditions and limitations:

(1) The entire $119,928,000 appropriation is provided solely to the salmon recovery funding board to provide grants to local governments, state agencies, tribes, conservation districts, private landowners, and nonprofit entities for salmon recovery activities pursuant to chapter . . . (House Bill No. 2079), Laws of 1999 sp. sess. or chapter . . . (Senate Bill No. 5595), Laws of 1999 sp. sess. If neither chapter . . . (House Bill No. 2079), Laws of 1999 sp. sess. nor chapter . . . (Senate Bill No. 5595), Laws of 1999 are enacted by June 30, 1999, the amount provided in this section shall lapse.

(2) Up to $19,650,000 of the general fund‑-federal appropriation is provided for grants to local governments for salmon recovery in accordance with a grant from the department of interior, United States fish and wildlife service received in December 1998.

(3) $6,200,000 of the state building construction account, $14,380,000 of the salmon recovery account, and $55,238,000 of the general fund‑-federal appropriation shall be distributed by the salmon recovery funding board within the following categories:

(a) A minimum of twenty-four percent shall be provided for fish passage barrier correction and fish screens to protect fish;

(b) A minimum of thirty-eight percent shall be provided for habitat projects;

(c) A minimum of thirty-eight percent shall be provided to purchase riparian easements to restore and to protect environmentally sensitive land in riparian areas to protect water quality and improve salmon and steelhead habitat. The salmon recovery funding board shall adopt rules for the implementation of this subsection consistent with the requirements of the conservation reserve enhancement program, except the eligibility is not limited to agricultural lands and contracts may exceed fifteen years in duration. It is the intent of the legislature that this appropriation will be used primarily for landowners that do not qualify for the federal conservation reserve enhancement program. The appropriation in this subsection shall not be used for fee simple land acquisition.

(4) $9,930,000 of the salmon recovery account appropriation is provided solely for planning and engineering activities. The appropriation in this subsection shall be distributed as follows:

(a) $2,100,000 shall be available for grants to cities and counties for the protection of critical areas using nonregulatory programs;

(b) $500,000 for the southwest Washington salmon recovery region;

(d) $830,000 for conservation district activities to implement the Puget Sound plan;

(e) $1,000,000 for monitoring salmon restoration projects and activities;

(f) $400,000 for technical assistance to landowners to implement the natural resources conservation service field office technical guide standards;

(g) $800,000 for the development of stream corridor guidelines for salmon recovery and habitat restoration;

(h) $1,100,000 for contracted engineering services for habitat projects; and

(i) $1,700,000 for salmonid screening, habitat enhancement, and restoration program.

(5) $6,530,000 of the salmon recovery account and up to $8,000,000 the general fund‑-federal appropriation is provided for salmon recovery efforts. The appropriation in this subsection shall be distributed as follows:

(a) $50,000 of the salmon recovery account is for developing selective harvesting techniques and equipment;

(b) $150,000 of the salmon recovery account is for developing and implementing methods for reducing the by-catch of salmon and other endangered or threatened species;

(d) Up to $8,000,000 of the general fund‑-federal appropriation is for commercial license buy-back.

(i) If federal grants for salmon recovery efforts are equal to or less than $50,000,000 during the 1999-01 fiscal biennium, then $4,000,000 may be expended for the purpose of this subsection.

(ii) If federal grants for salmon recovery efforts are more than $50,000,000 during the 1999-01 fiscal biennium, then up to $8,000,000 may be expended for the purposes of this subsection.

(iii) The amount in this subsection is provided solely to buy back commercial licenses for Washington-based commercial salmon fishers who fish in Washington or Alaska and who directly target or incidentally catch a threatened or endangered salmon species. Any expenditure from the amount in this subsection used in connection with a license buy-back program in another state must be matched by an equal amount of non-Washington state sources. Washington-based Alaska trollers' licenses may be bought back only if the state or states buying the license affirms that at least seventy-five percent of the seller's historic catch is allowed to pass through Alaskan waters. The amount in this subsection may also be used as grants for programs that combine license buy-back with programs that facilitate the funding of a conversion to selective fishing methods.

(6) A final list of projects funded with appropriations from this section shall be submitted to the office of financial management and the legislature by June 30th of each year.

Appropriation:

General Fund‑-Federal...................... $ 82,888,000

State Building Construction Account‑-

State............................... $ 6,200,000

Salmon Recovery Account.................... $ 30,840,000

-------------

Subtotal Appropriation.............. $ 119,928,000

Prior Biennia (Expenditures)............... $ 0

Future Biennia (Projected Costs)........... $ 0

-------------

TOTAL........ ...................... $ 119,928,000

*Sec. 22 was partially vetoed. See message at end of chapter.

NEW SECTION. Sec. 23. RCW 75.46.130 (Appropriated funds) and 1998 c 246 s 17 are each repealed.

NEW SECTION. Sec. 24. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 25. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1999.