AN ACT Relating to establishing the water infrastructure program; adding a new chapter to Title 90 RCW; adding a new chapter to Title 43 RCW; providing a contingent effective date; and providing for submission of certain sections of this act to a vote of the people.

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

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

(2) "Preference" means, when referring to a project, that the project should be ranked more favorably than other projects that lack preferred characteristics, but "preference" does not mean that the department must reject projects that lack preferred characteristics.

(3) "Priority" means, when referring to a project, that the project must be ranked more favorably than other projects.

(4) "Project" means infrastructure that meets the criteria for funding established in this chapter.

(5) "Sponsor" means a Washington state agency, a local government or other public entity in Washington, an agency of the United States government engaged in water supply or flood control activities in Washington, or a federally recognized Indian tribe with a reservation in Washington.

(1) Increasing the availability of water for out-of-stream beneficial uses;

(2) Reducing the risk of flooding, protecting against damage that may be caused by flooding, and restoring areas where flooding has occurred;

(3) Improving fish passage; or

(4) Reducing stormwater pollution from existing development.

(2) The department shall begin accepting applications from sponsors on April 1st in each even-numbered year. The application submission period must remain open until October 1st of the same year.

(3) After the application submission period closes, the department shall distribute applications to the office of Columbia river, office of Chehalis basin, or fish passage barrier removal board, as appropriate, which must evaluate the applications and create ranked lists of projects for the objectives under section 103 of this act. The ranked lists must be provided by the department to the appropriate standing committees of the legislature before the commencement of the regular session of the legislature in each odd-numbered year.

(4) The department shall publish a list of approved projects based on appropriations made by the legislature and shall notify sponsors of approved projects after the adjournment sine die of the regular or special sessions of the legislature in each odd-numbered year.

(5) The department shall publish a list of approved projects after the adjournment sine die of the regular or special sessions of the legislature in an even-numbered year if the legislature makes an appropriation resulting in the funding of projects in an even-numbered year.

(6) Subject to the availability of amounts appropriated for this specific purpose, the department is authorized to provide funding to sponsors for projects that were approved. The department may not obligate funds from the water infrastructure program account, water infrastructure program bond account, or water infrastructure program taxable bond account before the legislature has appropriated funds from such accounts for the purpose of funding projects under this chapter.

(7) A sponsor that is not approved may reapply during a subsequent application submission period in accordance with this section.

NEW SECTION.  Sec. 105. The office of Columbia river shall review proposed projects designed to increase the availability of water for out-of-stream beneficial uses. The following criteria apply to these projects:

(1) A project must increase the availability of water for out-of-stream beneficial uses;

(2) The highest priority projects are those projects that implement the integrated plan, as defined under RCW 90.38.010, or satisfy the water supply needs identified under RCW 90.90.020;

(3) Preference must be given to projects that provide multiple benefits;

(4) Preference must be given to projects that mitigate impacts to fish and wildlife caused by the project;

(5) Preference must be given to projects that include practicable conservation measures to ensure that water is used efficiently; and

(6) The office of Columbia river may consider whether a project helps the state prepare for the effects of climate change.

(1) A project must reduce the risk of flooding, protect against damage that may be caused by flooding, or restore areas where flooding has occurred;

(2) The highest priority projects are those that implement the Chehalis basin strategy under RCW 43.21A.732;

(3) Preference must be given to projects that provide multiple benefits;

(4) Preference must be given to projects located in areas that historically have been at the greatest risk and most vulnerable to flooding;

(5) Preference must be given to projects that eliminate or minimize the risk of future damage or disruption to critical infrastructure, such as centers of commerce, emergency response systems, hospitals, and transportation corridors; and

(6) The office of Chehalis basin may consider whether a project helps the state prepare for the effects of climate change.

(1) A project must improve fish passage;

(2) The highest priority projects are those that satisfy the state's obligations under a court order; and

(3) Preference must be given to projects sponsored by a city or county.

NEW SECTION.  Sec. 108. The department shall review proposed projects designed to reduce stormwater pollution from existing development. The following criteria apply to these projects:

(1) A project must reduce stormwater pollution from existing development;

(2) Preference must be given to projects that rely on low-impact development retrofit techniques; and

(3) Preference must be given to projects that have a high water quality benefit and address stormwater pollution from existing infrastructure.

(2) The reviewing authorities shall rank projects in a manner designed to provide funding for as many projects as practicable, while attempting to ensure that each project will receive sufficient funding to facilitate successful completion of the project.

(3) The reviewing authorities shall consider whether each project is consistent with the action agenda as defined under RCW 90.71.010, if applicable.

(4) Moneys made available under this chapter may not be used to acquire property through condemnation.

(2) Bonds authorized in this section must be sold in the manner, at the time or times, in amounts, and at such prices as the state finance committee determines.

(3) The authorization to issue bonds contained in this chapter does not expire until the full authorization has been issued.

(4) No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

(2) If the state finance committee deems it necessary or advantageous to issue taxable bonds in order to comply with federal internal revenue service rules and regulations pertaining to the use of nontaxable bond proceeds or in order to reduce the total financing costs for bonds issued, the proceeds of taxable bonds shall be transferred to the water infrastructure program taxable bond account created in section 114 of this act. The state treasurer shall submit written notice to the director of financial management if it is determined that any transfer to the water infrastructure program taxable bond account is necessary or that a transfer from the water infrastructure program taxable bond account to the water infrastructure program bond account may be made.

(2) The state finance committee must, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 201 of this act.

(3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of section 201 of this act, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the nondebt-limit general fund bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.

(2) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

(2) If the people ratify section 201 of this act as specified under subsection (1) of this section, revenues generated shall be spent as detailed in this act.

(3) Pursuant to RCW 29A.72.050(6), the statement of subject and concise description for the ballot title shall read: "The legislature has passed Senate Bill No. . . . . (this act), concerning a water infrastructure program. This bill would authorize bonds to:

(a) Increase the availability of water for out-of-stream beneficial uses;

(b) Reduce the risk of flooding, protect against damage that may be caused by flooding, and restore areas where flooding has occurred;

(c) Improve fish passage; and

(d) Reduce stormwater pollution from existing development."

--- END ---