Section 1. Section 73-10-40 is enacted to read:73-10-40. Consideration of increases to water storage.(1)As used in this section:(a)"Board" means the Board of Water Resources.(b)"Division" means the Division of Water Resources.(c)"Local sponsor" means a state agency, a local government agency, a tribe, or other local organization that works with a federal agency or the state to plan, build, and maintain a dam and associated reservoir.(d)"Project" means the construction of a new dam site and the associated reservoir.(e)"Proposal" means actions proposed by a local sponsor to increase the capacity of a reservoir that exists at the time a local sponsor applies for state funding under Subsection (4).(2)The board may consider an application submitted by a local sponsor and may recommend to the Legislature that the state fund, in whole or in part:(a)a project to construct water storage in the state submitted by a local sponsor as described in Subsection (3); or(b)a proposal to increase the capacity of water storage in this state submitted by a local sponsor as described in Subsection (4).(3)(a)The board may recommend to the Legislature that the state fund, in whole or in part, the costs of a project for which a local sponsor submits an application to construct water storage in this state if the board finds that the criteria in Subsection (3)(b) is met.(b)The board shall use the following criteria to determine whether the board shall recommend state funding under Subsection (3)(a):(i)whether there exists water rights that authorize reservoir storage at the location of the project for which a local sponsor is applying;(ii)whether there is a regional or state benefit to the project;(iii)whether there exists a local sponsor that:(A)is pursuing the project, including financially supporting the project; and(B)will own and maintain the project;(iv)whether construction of the project is anticipated to begin within five years of receipt of state funding;(v)the need for and affordability of the project; and(vi)any other item the board considers necessary to evaluate the potential project.(c)The board shall annually evaluate projects from a list of potential dam sites prepared by the division to determine whether a project is eligible for consideration for state funding under this Subsection (3) because the project meets the criteria of Subsection (3)(b).(4)(a)The board may recommend to the Legislature that the state fund, in whole or in part, a proposal under this Subsection (4) submitted by a local sponsor to increase the capacity of a reservoir that:(i)exists at the time the local sponsor submits the proposal; and(ii)has reduced capacity because of sedimentation.(b)A local sponsor shall include with the submission of a proposal under this Subsection (4) a feasibility study that recommends the method to increase the capacity of the reservoir for which funding is sought.(c)The board may consider a proposal under this Subsection (4) at any time during a fiscal year.(5)The board shall annually report to the Natural Resources, Agriculture, and Environmental Quality Appropriations Subcommittee by no later than October 1 the following information for the immediately preceding fiscal year:(a)the number of projects for which state funding was applied for under Subsection (3);(b)the projects under Subsection (3)(a) that the board recommends the state fund, in whole or in part;(c)a list of projects determined to be eligible for consideration of state funding under Subsection (3)(c);(d)the number of proposals for which state funding was applied for under Subsection (4); and(e)the proposals under Subsection (4) that the board recommends the state fund, in whole or in part.(6)The board may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, related to:(a)the submission of an application under this section; and(b)the board making recommendations for state funding, in whole or in part, of a project to construct or a proposal to increase the capacity of water storage in this state.(7)A recommendation or other action taken under this section by the board does not obligate the state or require the Legislature to take any action or appropriate funding.