1     
WATER INFRASTRUCTURE FUNDING AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: J. Stuart Adams

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9           This bill modifies the duties of the Board of Water Resources, the Division of Water
10     Resources, and the State Water Development Commission.
11     Highlighted Provisions:
12          This bill:
13          ▸      requires the Board of Water Resources and the Division of Water Resources, in
14     conjunction with the State Water Development Commission, when making rules
15     regarding the funding of a water infrastructure project, to:
16               •     establish criteria for better water data and data reporting;
17               •     establish new conservation targets;
18               •     institute a process for the independent verification of water data and a proposed
19     project;
20               •     invite public comment; and
21               •     set appropriate financing and repayment terms;
22          ▸     requires a report, no later than October 30, 2016, to the Natural Resources,
23     Agriculture, and Environment Interim Committee and the Legislative Management
24     Committee; and
25          ▸     makes technical changes.
26     Money Appropriated in this Bill:
27          This bill appropriates in fiscal year 2016-2017:

28          ▸     to the Division of Water Resources, as a one-time appropriation:
29               •     from the Water Infrastructure Restricted Account, $750,000, to fulfill the duties
30     described in Section 73-10g-105.
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          73-10g-104, as enacted by Laws of Utah 2015, Chapter 458
36          73-10g-105, as enacted by Laws of Utah 2015, Chapter 458
37          73-27-103, as enacted by Laws of Utah 2000, Chapter 124
38     

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 73-10g-104 is amended to read:
41          73-10g-104. Authorized use of the Water Infrastructure Restricted Account.
42          Money in the restricted account is to be used for:
43          (1) the development of the state's undeveloped share of the Bear and Colorado Rivers,
44     pursuant to existing interstate compacts governing both rivers as described in [Title 73,]
45     Chapter 26, Bear River Development Act, and Chapter 28, Lake Powell Pipeline Development
46     Act; [and]
47          (2) repair, replacement, or improvement of federal water projects for local sponsors in
48     the state of Utah when federal funds are not available[.]; and
49          (3) study and development of rules, criteria, targets, processes, and plans, as described
50     in Subsection 73-10g-105(3).
51          Section 2. Section 73-10g-105 is amended to read:
52          73-10g-105. Loans -- Rulemaking.
53          (1) The division and the board shall make rules, in accordance with Title 63G, Chapter
54     3, Utah Administrative Rulemaking Act, in preparation to make loans from available funds to
55     repair, replace, or improve underfunded federal water infrastructure projects.
56          (2) The rules described in Subsection (1) shall:
57          (a) specify the amount of money that may be loaned;
58          (b) specify the criteria the division and the board shall consider in prioritizing and

59     awarding loans;
60          (c) specify the minimum qualifications for an individual who, or entity that, receives a
61     loan, including the amount of cost-sharing to be the responsibility of the individual or entity
62     applying for a loan;
63          (d) specify the terms of the loan, including the terms of repayment; and
64          (e) require all applicants for a loan to apply on forms provided by the division and in a
65     manner required by the division.
66          (3) The division and the board shall, in making the rules described in Subsection (1)
67     and in consultation with the State Water Development Commission created in Section
68     73-27-102:
69          (a) establish criteria for better water data and data reporting;
70          (b) establish new conservation targets based on the data described in Subsection (3)(a);
71          (c) institute a process for the independent verification of the data described in
72     Subsection (3)(a);
73          (d) establish a plan for an independent review of:
74          (i) the proposed construction plan for an applicant's qualifying water infrastructure
75     project; and
76          (ii) the applicant's plan to repay the loan for the construction of the proposed water
77     infrastructure project;
78          (e) invite and recommend public involvement; and
79          (f) set appropriate financing and repayment terms.
80          (4) (a) The division, board, and State Water Development Commission shall, no later
81     than October 30, 2016, report to the Natural Resources, Agriculture, and Environment Interim
82     Committee and Legislative Management Committee on the rules established pursuant to
83     Subsections (1) and (3).
84          (b) After October 30, 2016, the division and the board shall provide regular updates to
85     the Legislative Management Committee on the progress made under this section.
86          Section 3. Section 73-27-103 is amended to read:
87          73-27-103. Duties of commission.
88          (1) The commission shall consider and make recommendations to the Legislature and
89     governor on the following issues:

90          [(1)] (a) how the water needs of the state's growing municipal and industrial sectors
91     will be met;
92          [(2)] (b) what the impact of federal regulations and legislation will be on the ability of
93     the state to manage and develop its compacted water rights;
94          [(3)] (c) how the state will fund water projects;
95          [(4)] (d) whether the state should become an owner and operator of water projects;
96          [(5)] (e) how the state will encourage the implementation of water conservation
97     programs; and
98          [(6)] (f) other water issues of statewide importance.
99          (2) The commission shall:
100          (a) consult with the Division of Water Resources and the Board of Water Resources
101     regarding recommendations for rules, criteria, targets, processes, and plans described in
102     Subsection 73-10g-105(3); and
103          (b) report the recommendations described in Subsection (2)(a) to the Natural
104     Resources, Agriculture, and Environment Interim Committee and the Legislative Management
105     Committee by October 30, 2016.
106          Section 4. Appropriation.
107          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
108     the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following sums of money
109     are appropriated from resources not otherwise appropriated, or reduced from amounts
110     previously appropriated, out of the funds or amounts indicated. These sums of money are in
111     addition to amounts previously appropriated for fiscal year 2017.
112          To Department of Natural Resources, Division of Water Resources
113               From Water Infrastructure Restricted Account, one-time
$750,000

114               Schedule of Programs:
115                    Administration                         $750,000
116          The Legislature intends that the appropriation of $750,000 to the Division of Water
117     Resources be used by the division, in cooperation and consultation with the Board of Water
118     Resources and the State Water Development Commission, in fulfilling the division's
119     responsibilities under Section 73-10g-105. Under the terms of Subsection 63J-1-603(3)(a), the
120     Legislature intends that the appropriation provided in this bill not lapse at the close of fiscal

121     year 2017. The use of any nonlapsing funds is limited to fulfilling the duties described in
122     Section 73-10g-105, with the Division of Water Resources and the Board of Water Resources
123     providing the Legislative Management Committee with regular updates on how the money is
124     being spent.






Legislative Review Note
Office of Legislative Research and General Counsel