1     
WATER INFRASTRUCTURE REVISIONS

2     
2017 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 rulemaking requirements for the Division of Water Resources and
10     Board of Water Resources.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires a water infrastructure loan applicant to submit a design for project approval
14     that has received an independent value engineering review; and
15          ▸     makes technical amendments.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          73-10g-105, as last amended by Laws of Utah 2016, Chapter 309
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 73-10g-105 is amended to read:
26          73-10g-105. Loans -- Rulemaking.
27          (1) (a) The division and the board shall make rules, in accordance with Title 63G,

28     Chapter 3, Utah Administrative Rulemaking Act, in preparation to make loans from available
29     funds to repair, replace, or improve underfunded federal water infrastructure projects.
30          (b) Subject to Chapter 26, Bear River Development Act, and Chapter 28, Lake Powell
31     Pipeline Development Act, the division and the board shall make rules, in accordance with
32     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in preparation to make loans from
33     available funds to develop the state's undeveloped share of the Bear and Colorado rivers.
34          (2) The rules described in Subsection (1) shall:
35          (a) specify the amount of money that may be loaned;
36          (b) specify the criteria the division and the board shall consider in prioritizing and
37     awarding loans;
38          (c) specify the minimum qualifications for an individual who, or entity that, receives a
39     loan, including the amount of cost-sharing to be the responsibility of the individual or entity
40     applying for a loan;
41          (d) specify the terms of the loan, including the terms of repayment; and
42          (e) require all applicants for a loan to apply on forms provided by the division and in a
43     manner required by the division.
44          (3) The division and the board shall, in making the rules described in Subsection (1)
45     and in consultation with the State Water Development Commission created in Section
46     73-27-102:
47          (a) establish criteria for better water data and data reporting;
48          (b) establish new conservation targets based on the data described in Subsection (3)(a);
49          (c) institute a process for the independent verification of the data described in
50     Subsection (3)(a);
51          (d) establish a plan for an independent review of:
52          (i) the proposed construction plan for an applicant's qualifying water infrastructure
53     project; and
54          (ii) the applicant's plan to repay the loan for the construction of the proposed water
55     infrastructure project;
56          (e) establish a plan that requires an applicant to submit a design for project approval
57     that:
58          (i) has received an independent value engineering review that systematically examined

59     ways the project's value can be increased through reducing costs and improving function,
60     reliability, and performance; and
61          (ii) includes a report of the value engineering review, including design modifications
62     recommended by the review;
63          [(e)] (f) invite and recommend public involvement; and
64          [(f)] (g) set appropriate financing and repayment terms.
65          [(4) (a) The division, board, and State Water Development Commission shall, no later
66     than October 30, 2016, report to the Natural Resources, Agriculture, and Environment Interim
67     Committee and Legislative Management Committee on the rules established pursuant to
68     Subsections (1) and (3).]
69          [(b)] (4) [After October 30, 2016, the] The division and the board shall provide regular
70     updates to the Legislative Management Committee on the progress made under this section,
71     including whether the division and board intend to issue a request for proposals.






Legislative Review Note
Office of Legislative Research and General Counsel