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S.B. 20

             1     

MANAGEMENT OF WATER RIGHTS AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Dennis E. Stowell

             5     
House Sponsor: Evan J. Vickers

             6     
             7      LONG TITLE
             8      Committee Note:
             9          The Natural Resources, Agriculture, and Environment Interim Committee
             10      recommended this bill.
             11      General Description:
             12          This bill addresses the management of water rights in a critical management area.
             13      Highlighted Provisions:
             14          This bill:
             15          .    allows a local district to hold certain water rights for recharge;
             16          .    addresses the requirements of a groundwater management plan;
             17          .    provides that artificially recharging a groundwater basin is a beneficial use of water
             18      in a critical management area; and
             19          .    makes technical changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          17B-1-202, as last amended by Laws of Utah 2010, Chapters 150 and 159
             27          73-5-15, as last amended by Laws of Utah 2009, Chapter 388


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 17B-1-202 is amended to read:
             31           17B-1-202. Local district may be created -- Services that may be provided --
             32      Limitations.
             33          (1) (a) A local district may be created as provided in this part to provide within its
             34      boundaries service consisting of:
             35          (i) the operation of an airport;
             36          (ii) the operation of a cemetery;
             37          (iii) fire protection, paramedic, and emergency services;
             38          (iv) garbage collection and disposal;
             39          (v) health care, including health department or hospital service;
             40          (vi) the operation of a library;
             41          (vii) abatement or control of mosquitos and other insects;
             42          (viii) the operation of parks or recreation facilities or services;
             43          (ix) the operation of a sewage system;
             44          (x) street lighting;
             45          (xi) the construction and maintenance of a right-of-way, including:
             46          (A) a curb;
             47          (B) a gutter;
             48          (C) a sidewalk;
             49          (D) a street;
             50          (E) a road;
             51          (F) a water line;
             52          (G) a sewage line;
             53          (H) a storm drain;
             54          (I) an electricity line;
             55          (J) a communications line; or
             56          (K) a natural gas line;
             57          (xii) transportation, including public transit and providing streets and roads;
             58          (xiii) the operation of a system, or one or more components of a system, for the


             59      collection, storage, retention, control, conservation, treatment, supplying, distribution, or
             60      reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
             61      the system is operated on a wholesale or retail level or both;
             62          (xiv) in accordance with Subsection (1)(c), the development and execution of a
             63      groundwater management plan in cooperation with and approved by the state engineer in
             64      accordance with Section 73-5-15 ;
             65          (xv) law enforcement service; or
             66          (xvi) subject to Subsection (1)(b), the underground installation of an electric utility line
             67      or the conversion to underground of an existing electric utility line.
             68          (b) Each local district that provides the service of the underground installation of an
             69      electric utility line or the conversion to underground of an existing electric utility line shall, in
             70      installing or converting the line, provide advance notice to and coordinate with the utility that
             71      owns the line.
             72          (c) A groundwater management plan described in Subsection (1)(a)(xiv) may include
             73      the banking of groundwater rights by a local district in a critical management area as defined in
             74      Section 73-5-15 following the adoption of a groundwater management plan by the state
             75      engineer under Section 73-5-15 .
             76          (i) A local district may manage the groundwater rights it acquires under Subsection
             77      17B-1-103 (2)(a) or (b) consistent with the provisions of a groundwater management plan
             78      described in this Subsection (1)(c).
             79          (ii) A groundwater right held by a local district to satisfy the provisions of a
             80      groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4 .
             81          (iii) (A) A local district may divest itself of a groundwater right subject to a
             82      determination that the groundwater right is not required to facilitate the groundwater
             83      management plan described in this Subsection (1)(c).
             84          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
             85      73-1-4 beginning on the date of divestiture.
             86          (iv) Upon a determination by the state engineer that an area is no longer a critical
             87      management area, a water right held by the local district is subject to Section 73-1-4 .
             88          (v) A local district created in accordance with Subsection (1)(a)(xiv) to develop and
             89      execute a groundwater management plan may hold or acquire a right to surface waters that are


             90      naturally tributary to the groundwater basin subject to the groundwater management plan if the
             91      surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
             92      accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
             93          (2) For purposes of this section:
             94          (a) "Operation" means all activities involved in providing the indicated service
             95      including acquisition and ownership of property reasonably necessary to provide the indicated
             96      service and acquisition, construction, and maintenance of facilities and equipment reasonably
             97      necessary to provide the indicated service.
             98          (b) "System" means the aggregate of interrelated components that combine together to
             99      provide the indicated service including, for a sewage system, collection and treatment.
             100          (3) (a) A local district may not be created to provide and may not after its creation
             101      provide more than four of the services listed in Subsection (1).
             102          (b) Subsection (3)(a) may not be construed to prohibit a local district from providing
             103      more than four services if, before April 30, 2007, the local district was authorized to provide
             104      those services.
             105          (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
             106      provide and may not after its creation provide to an area the same service already being
             107      provided to that area by another political subdivision, unless the other political subdivision
             108      gives its written consent.
             109          (b) For purposes of Subsection (4)(a), a local district does not provide the same service
             110      as another political subdivision if it operates a component of a system that is different from a
             111      component operated by another political subdivision but within the same:
             112          (i) sewage system; or
             113          (ii) water system.
             114          (5) (a) Except for a local district in the creation of which an election is not required
             115      under Subsection 17B-1-214 (3)(c), the area of a local district may include all or part of the
             116      unincorporated area of one or more counties and all or part of one or more municipalities.
             117          (b) The area of a local district need not be contiguous.
             118          (6) For a local district created before May 5, 2008, the authority to provide fire
             119      protection service also includes the authority to provide:
             120          (a) paramedic service; and


             121          (b) emergency service, including hazardous materials response service.
             122          (7) A local district created before May 11, 2010, authorized to provide the construction
             123      and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection
             124      (1)(a)(xi) on or after May 11, 2010.
             125          Section 2. Section 73-5-15 is amended to read:
             126           73-5-15. Groundwater management plan.
             127          (1) As used in this section:
             128          (a) "Critical management area" means a groundwater basin in which the groundwater
             129      withdrawals consistently exceed the safe yield.
             130          (b) "Safe yield" means the amount of groundwater that can be withdrawn from a
             131      groundwater basin over a period of time without exceeding the long-term recharge of the basin
             132      or unreasonably affecting the basin's physical and chemical integrity.
             133          (2) (a) The state engineer may regulate groundwater withdrawals within a specific
             134      groundwater basin by adopting a groundwater management plan in accordance with this section
             135      for any groundwater basin or aquifer or combination of hydrologically connected groundwater
             136      basins or aquifers.
             137          (b) The objectives of a groundwater management plan are to:
             138          (i) limit groundwater withdrawals to safe yield;
             139          (ii) protect the physical integrity of the aquifer; and
             140          (iii) protect water quality.
             141          (c) The state engineer shall adopt a groundwater management plan for a groundwater
             142      basin if more than [1/3] one-third of the water right owners in the groundwater basin request
             143      that the state engineer adopt a groundwater management plan.
             144          (3) (a) In developing a groundwater management plan, the state engineer may consider:
             145          (i) the hydrology of the groundwater basin;
             146          (ii) the physical characteristics of the groundwater basin;
             147          (iii) the relationship between surface water and groundwater, including whether the
             148      groundwater should be managed in conjunction with hydrologically connected surface waters;
             149          (iv) the conjunctive management of water rights to facilitate and coordinate the lease,
             150      purchase, or voluntary use of water rights subject to the groundwater management plan;
             151          [(iv)] (v) the geographic spacing and location of groundwater withdrawals;


             152          [(v)] (vi) water quality;
             153          [(vi)] (vii) local well interference; and
             154          [(vii)] (viii) other relevant factors.
             155          (b) The state engineer shall base the provisions of a groundwater management plan on
             156      the principles of prior appropriation.
             157          (c) (i) The state engineer shall use the best available scientific method to determine
             158      safe yield.
             159          (ii) As hydrologic conditions change or additional information becomes available, safe
             160      yield determinations made by the state engineer may be revised by following the procedures
             161      listed in Subsection (5).
             162          (4) (a) (i) Except as provided in Subsection (4)(b), the withdrawal of water from a
             163      groundwater basin shall be limited to the basin's safe yield.
             164          (ii) Before limiting withdrawals in a groundwater basin to safe yield, the state engineer
             165      shall:
             166          (A) determine the groundwater basin's safe yield; and
             167          (B) adopt a groundwater management plan for the groundwater basin.
             168          (iii) If the state engineer determines that groundwater withdrawals in a groundwater
             169      basin exceed the safe yield, the state engineer shall regulate groundwater rights in that
             170      groundwater basin based on the priority date of the water rights under the groundwater
             171      management plan, unless a voluntary arrangement exists under Subsection (4)(c) that requires a
             172      different distribution.
             173          (iv) A groundwater management plan shall include a list of each groundwater right in
             174      the proposed groundwater management area known to the state engineer identifying the water
             175      right holder, the land to which the groundwater right is appurtenant, and any identification
             176      number the state engineer uses in the administration of water rights.
             177          (b) When adopting a groundwater management plan for a critical management area, the
             178      state engineer shall, based on economic and other impacts to an individual water user or a local
             179      community caused by the implementation of safe yield limits on withdrawals, allow gradual
             180      implementation of the groundwater management plan.
             181          (c) (i) In consultation with the state engineer, water users in a groundwater basin may
             182      agree to participate in a voluntary arrangement for managing withdrawals at any time, either


             183      before or after a determination that groundwater withdrawals exceed the groundwater basin's
             184      safe yield.
             185          (ii) A voluntary arrangement under Subsection (4)(c)(i) shall be consistent with other
             186      law.
             187          (iii) The adoption of a voluntary arrangement under this Subsection (4)(c) by less than
             188      all of the water users in a groundwater basin does not affect the rights of water users who do
             189      not agree to the voluntary arrangement.
             190          (5) To adopt a groundwater management plan, the state engineer shall:
             191          (a) give notice as specified in Subsection (7) at least 30 days before the first public
             192      meeting held in accordance with Subsection (5)(b):
             193          (i) that the state engineer proposes to adopt a groundwater management plan;
             194          (ii) describing generally the land area proposed to be included in the groundwater
             195      management plan; and
             196          (iii) stating the location, date, and time of each public meeting to be held in accordance
             197      with Subsection (5)(b);
             198          (b) hold one or more public meetings in the geographic area proposed to be included
             199      within the groundwater management plan to:
             200          (i) address the need for a groundwater management plan;
             201          (ii) present any data, studies, or reports that the state engineer intends to consider in
             202      preparing the groundwater management plan;
             203          (iii) address safe yield and any other subject that may be included in the groundwater
             204      management plan;
             205          (iv) outline the estimated administrative costs, if any, that groundwater users are likely
             206      to incur if the plan is adopted; and
             207          (v) receive any public comments and other information presented at the public
             208      meeting, including comments from any of the entities listed in Subsection (7)(a)(iii);
             209          (c) receive and consider written comments concerning the proposed groundwater
             210      management plan from any person for a period determined by the state engineer of not less
             211      than 60 days after the day on which the notice required by Subsection (5)(a) is given;
             212          (d) (i) at least 60 days prior to final adoption of the groundwater management plan,
             213      publish notice:


             214          (A) that a draft of the groundwater management plan has been proposed; and
             215          (B) specifying where a copy of the draft plan may be reviewed; and
             216          (ii) promptly provide a copy of the draft plan in printed or electronic form to each of
             217      the entities listed in Subsection (7)(a)(iii) that makes written request for a copy; and
             218          (e) provide notice of the adoption of the groundwater management plan.
             219          (6) A groundwater management plan shall become effective on the date notice of
             220      adoption is completed under Subsection (7), or on a later date if specified in the plan.
             221          (7) (a) A notice required by this section shall be:
             222          (i) published:
             223          (A) once a week for two successive weeks in a newspaper of general circulation in
             224      each county that encompasses a portion of the land area proposed to be included within the
             225      groundwater management plan; and
             226          (B) in accordance with Section 45-1-101 for two weeks;
             227          (ii) published conspicuously on the state engineer's [Internet] website; and
             228          (iii) mailed to each of the following that has within its boundaries a portion of the land
             229      area to be included within the proposed groundwater management plan:
             230          (A) county;
             231          (B) incorporated city or town;
             232          (C) improvement district under Title 17B, Chapter 2a, Part 4, Improvement District
             233      Act;
             234          (D) service area, under Title 17B, Chapter 2a, Part 9, Service Area Act;
             235          (E) drainage district, under Title 17B, Chapter 2a, Part 2, Drainage District Act;
             236          (F) irrigation district, under Title 17B, Chapter 2a, Part 5, Irrigation District Act;
             237          (G) metropolitan water district, under Title 17B, Chapter 2a, Part 6, Metropolitan
             238      Water District Act;
             239          (H) special service district providing water, sewer, drainage, or flood control services,
             240      under Title 17D, Chapter 1, Special Service District Act;
             241          (I) water conservancy district, under Title 17B, Chapter 2a, Part 10, Water
             242      Conservancy District Act; and
             243          (J) conservation district, under Title 17D, Chapter 3, Conservation District Act.
             244          (b) A notice required by this section is effective upon substantial compliance with


             245      Subsections (7)(a)(i) through (iii).
             246          (8) A groundwater management plan may be amended in the same manner as a
             247      groundwater management plan may be adopted under this section.
             248          (9) The existence of a groundwater management plan does not preclude any otherwise
             249      eligible person from filing any application or challenging any decision made by the state
             250      engineer within the affected groundwater basin.
             251          (10) (a) A person aggrieved by a groundwater management plan may challenge any
             252      aspect of the groundwater management plan by filing a complaint within 60 days after the
             253      adoption of the groundwater management plan in the district court for any county in which the
             254      groundwater basin is found.
             255          (b) Notwithstanding Subsection (9), a person may challenge the components of a
             256      groundwater management plan only in the manner provided by Subsection (10)(a).
             257          (c) An action brought under this Subsection (10) is reviewed de novo by the district
             258      court.
             259          (d) A person challenging a groundwater management plan under this Subsection (10)
             260      shall join the state engineer as a defendant in the action challenging the groundwater
             261      management plan.
             262          (e) (i) Within 30 days after the day on which a person files an action challenging any
             263      aspect of a groundwater management plan under Subsection (10)(a), the person filing the action
             264      shall publish notice of the action:
             265          (A) in a newspaper of general circulation in the county in which the district court is
             266      located; and
             267          (B) in accordance with Section 45-1-101 for two weeks.
             268          (ii) The notice required by Subsection (10)(e)(i)(A) shall be published once a week for
             269      two consecutive weeks.
             270          (iii) The notice required by Subsection (10)(e)(i) shall:
             271          (A) identify the groundwater management plan the person is challenging;
             272          (B) identify the case number assigned by the district court;
             273          (C) state that a person affected by the groundwater management plan may petition the
             274      district court to intervene in the action challenging the groundwater management plan; and
             275          (D) list the address for the clerk of the district court in which the action is filed.


             276          (iv) (A) Any person affected by the groundwater management plan may petition to
             277      intervene in the action within 60 days after the day on which notice is last published under
             278      Subsections (10)(e)(i) and (ii).
             279          (B) The district court's treatment of a petition to intervene under this Subsection
             280      (10)(e)(iv) is governed by the Utah Rules of Civil Procedure.
             281          (v) A district court in which an action is brought under Subsection (10)(a) shall
             282      consolidate all actions brought under that subsection and include in the consolidated action any
             283      person whose petition to intervene is granted.
             284          (11) A groundwater management plan adopted or amended in accordance with this
             285      section is exempt from the requirements in Title 63G, Chapter 3, Utah Administrative
             286      Rulemaking Act.
             287          (12) (a) Recharge and recovery projects permitted under Chapter 3b, Groundwater
             288      Recharge and Recovery Act, are exempted from this section.
             289          (b) In a critical management area, the artificial recharge of a groundwater basin that
             290      uses surface water naturally tributary to the groundwater basin by a local district created under
             291      Subsection 17B-1-202 (1)(a)(xiv), in accordance with Title 73, Chapter 3b, Groundwater
             292      Recharge and Recovery Act, constitutes a beneficial use of the water under Section 73-1-3 if:
             293          (i) the recharge is done during the time the area is designated as a critical management
             294      area;
             295          (ii) the recharge is done with a valid recharge permit;
             296          (iii) the recharged water is not recovered under a recovery permit; and
             297          (iv) the recharged water is used to replenish the groundwater basin.
             298          (13) Nothing in this section may be interpreted to require the development,
             299      implementation, or consideration of a groundwater management plan as a prerequisite or
             300      condition to the exercise of the state engineer's enforcement powers under other law, including
             301      powers granted under Section 73-2-25 .
             302          (14) A groundwater management plan adopted in accordance with this section may not
             303      apply to the dewatering of a mine.
             304          (15) (a) A groundwater management plan adopted by the state engineer before May 1,
             305      2006, remains in force and has the same legal effect as it had on the day on which it was
             306      adopted by the state engineer.


             307          (b) If a groundwater management plan that existed before May 1, 2006, is amended on
             308      or after May 1, 2006, the amendment is subject to this section's provisions.




Legislative Review Note
    as of 11-17-10 12:33 PM


Office of Legislative Research and General Counsel


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