"NEW SECTION.  Sec. 1   A new section is added to chapter 79.105 RCW under the subchapter heading "other management provisions" to read as follows:
     (1) There is created the Maury Island aquatic reserve. The reserve encompasses only state-owned tidelands and bedlands, except that the department may include tidelands or shorelands contiguous to state aquatic lands where the owner provides written permission for inclusion of such lands in the reserve and states in writing an intent to sell or donate the lands to the state in the future. The commissioner may expand the reserve by administrative order designating additional contiguous state-owned tidelands and bedlands, or by accepting written permission by the owner of contiguous aquatic lands, where the commissioner determines the lands in the designation or private owner permission meet one or more of the following characteristics:
     (a) The lands have been identified as having high priority for conservation, natural systems, wildlife, and low-impact public use values;
     (b) The lands have flora, fauna, geological, recreational, archaeological, cultural, scenic, or similar features of critical importance and have retained to some degree or reestablished its natural character;
     (c) The lands provide significant examples of native ecological communities; and
     (d) The lands have significant sites or features threatened with conversion to incompatible uses.
     (2) The Maury Island aquatic reserve shall include the lands designated by administrative order under subsection (1) of this section, and the tidelands and bedlands surrounding Maury Island and including Quartermaster Harbor in King county, as described in this subsection:
     The tidelands and bedlands of navigable waters, owned by the state of Washington, described as follows:
     Those tidelands and bedlands surrounding Maury Island, which are fronting and abutting Section 14, Sections 20-23, inclusively, and Sections 28-32, inclusively, Township 22 North, Range 3 East, W.M.;
     Together with, those tidelands and bedlands lying westerly of said Maury Island which are fronting and abutting only those portions of Sections 9 and 16, which are fronting on Quartermaster Harbor, Township 22 North, Range 3 East, W.M.;
     Together with, those tidelands and bedlands lying southerly of said Maury Island, which are fronting and abutting Sections 5 and 6, Township 21 North, Range 3 East, W.M.; and said reserve extends waterward to a water depth of 70 feet below mean lower low water or one-half mile from the line of extreme low tide, whichever line is further waterward;
     Those tidelands and bedlands lying southerly and easterly of Vashon Island, which are fronting and abutting Section 1, Township 21 North, Range 2 East, W.M.;
     Together with, those tidelands and bedlands lying easterly of said Vashon Island, which are fronting and abutting Sections 24, 25, and 36, Township 22 North, Range 2 East, W.M.;
     Together with, those tidelands and bedlands lying easterly of said Vashon Island, which are fronting and abutting Sections 17-20, inclusively, Township 22 North, Range 3 East, W.M.;
     Together with, those tidelands and bedlands lying southerly and westerly of said Vashon Island, which are fronting and abutting only those portions of Section 8, which is fronting on Quartermaster Harbor, Township 22 North, Range 3 East, W.M.; and said reserve extends waterward to a water depth of 70 feet below mean lower low water or one-half mile from the line of extreme low tide, whichever line is further waterward.
     (3) The department shall manage the Maury Island aquatic reserve primarily for the achievement of the following goals:
     (a) To conserve native habitats and associated plant and wildlife species, with a special emphasis upon forage fish, salmonids, and migratory birds;
     (b) To protect and restore the functions and natural processes of nearshore ecosystems in support of the natural resources of the reserve;
     (c) To promote stewardship of riparian and aquatic habitats and species by providing education and outreach opportunities and promoting coordination with other resource managers; and
     (d) To provide for low-impact public uses including recreation uses and improvements that do not adversely affect the resource values, are appropriate to the maintenance of the lands in a relatively unmodified natural setting, and do not detract from long-term ecological processes.
     (4) The department shall develop a management plan for the aquatic reserve, and may incorporate an existing management plan and policies previously adopted for the lands where consistent with the management guidance of this section. The plan must identify the significant resources to be conserved consistent with the purposes of this chapter and identify the areas with potential for low-impact public uses. The plan must specify what types of management activities and public uses are permitted, consistent with the conservation purposes of this chapter. The department shall make the plan available for review and comment by the public and other state, tribal, and local agencies, prior to final approval by the commissioner.
     (5)(a) Until November 1, 2007, the department shall not authorize any portion of the Maury Island aquatic reserve for industrial uses or for transportation of materials from a surface mine or mining operation as defined under RCW 78.44.031 or other industrial activities, and may not authorize the construction of docks or other improvements associated with these uses.
     (b) Nothing in this section shall preclude any landowner from initiating, continuing, or completing a land use permitting process for aquatic lands or uplands affected by this section either before or after November 1, 2007.
     (c) After November 1, 2007, the department may authorize portions of the Maury Island aquatic reserve for industrial uses or for transportation of materials from a surface mine or mining operation and may authorize the construction of docks or other improvements associated with these uses only if the commissioner publishes formal findings in the Washington State Register that:
     (i) The proposed uses are fully permitted under all applicable federal, state, and local laws;
     (ii) There is an identified market demand for the mineral resources located on the uplands adjacent to the Maury Island aquatic reserve that cannot be reasonably accessed or transported in quantities necessary to satisfy the demand without the construction of a dock or other improvements;
     (iii) There is not an existing portion of state-owned uplands containing a comparable mineral resource with a significantly equitable value to any mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve, that is located in an area that would allow for the extraction and waterborne transportation of the minerals in a manner that provides less risk to the health of the state's aquatic environment than extraction and transportation from the uplands adjacent to the Maury Island aquatic reserve would create; and
     (iv) The commissioner conducts at least one hearing on either Vashon or Maury Island where the public can express concerns or make recommendations.

Sec. 2   RCW 79.105.210 and 2005 c 155 s 143 are each amended to read as follows:
     (1) The management of state-owned aquatic lands shall preserve and enhance water-dependent uses. Water-dependent uses shall be favored over other uses in state-owned aquatic land planning and in resolving conflicts between competing lease applications. In cases of conflict between water-dependent uses, priority shall be given to uses which enhance renewable resources, water-borne commerce, and the navigational and biological capacity of the waters, and to statewide interests as distinguished from local interests.
     (2) Nonwater-dependent use of state-owned aquatic lands is a low-priority use providing minimal public benefits and shall not be permitted to expand or be established in new areas except in exceptional circumstances where it is compatible with water-dependent uses occurring in or planned for the area.
     (3) The department shall consider the natural values of state-owned aquatic lands as wildlife habitat, natural area preserve, representative ecosystem, or spawning area prior to issuing any initial lease or authorizing any change in use. The department may withhold from leasing lands which it finds to have significant natural values, or may provide within any lease for the protection of such values.
     (4) The power to lease state-owned aquatic lands is vested in the department, which has the authority to make leases upon terms, conditions, and length of time in conformance with the state Constitution and chapters 79.105 through 79.140 RCW. Leases, easements, licenses, permits, rights-of-way, and any other agreements allowing use of state-owned aquatic lands designated as an aquatic reserve under section 1 of this act must conform with the management criteria expressed in chapters 79.105 through 79.140 RCW and with section 1 of this act.
     (5) State-owned aquatic lands shall not be leased to persons or organizations which discriminate on the basis of race, color, creed, religion, sex, age, or physical or mental handicap.

NEW SECTION.  Sec. 3   (1) It is the intent of the legislature that the creation of the Maury Island aquatic reserve will not have a net impact on the availability of construction material resources or an economic impact on any private sector mineral operation. It is the intent of the legislature, expressed through the implementation of this section, for any existing mineral-extraction operations affected by the creation of the Maury Island aquatic reserve to be offered compensation in the form of an opportunity to transfer title of their land to the state in exchange for land elsewhere with an equal or greater extractable mineral resource.
     (2)(a) By August 1, 2007, the department of natural resources shall identify a portion of state-owned uplands containing a mineral resource with a significantly equitable value to any mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve created in section 1 of this act, that is located in an area that would allow for the extraction and transportation of the minerals in a manner that provides less risk to the health of the state's aquatic environment than extraction and transportation from the uplands adjacent to the Maury Island aquatic reserve would create.
     (b) In order to gather the information necessary to implement this section, the department of natural resources shall work with the owner or owners of the mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve to allow the department of natural resources to conduct an estimate of the value of the mineral resources present.
     (3) Within three months of the identification of a comparable mineral resource under this section, the department of natural resources shall, through any authorities, programs, or management options available to it, make a good faith offer to transfer the ownership of the identified parcel to the owner or owners of the mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve in exchange for the transfer to the state of ownership of the mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve.
     (4) Any land transferred into state ownership under this section must be managed in accordance with the trust status originally applicable to the land for which ownership was transferred to the former owner or owners of the mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve. If this management status is not appropriate for holding the upland parcels adjacent to the Maury Island aquatic reserve in a conservation status, then the department of natural resources shall pursue and prioritize all available options to transfer the land into a state-owned landholding status appropriate for conservation management.
     (5) When the transfer of the identified parcel to the owner or owners of the mineral resources existing on upland parcels adjacent to the Maury Island aquatic reserve has been completed, all state agencies and local subdivisions of the state shall provide a coordinated and expedited permitting process to assist the owners or owners of the transferred parcel in permitting a mineral extraction project on the transferred parcel. The office of regulatory assistance is responsible for overseeing and ensuring that the permitting process is coordinated and expedited.
     (6) The department of natural resources shall report to the appropriate committees of the legislature by December 31, 2008, as to the details of the land transfer completed under this section.

NEW SECTION.  Sec. 4   The department shall prioritize expenditures, within existing appropriations for the 2005-2007 and the 2007-2009 fiscal bienniums, from the resource management cost account to implement this act.

NEW SECTION.  Sec. 5   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 immediately."