Representative Keven J. Stratton proposes the following substitute bill:




Chief Sponsor: Keven J. Stratton

Senate Sponsor: Margaret Dayton


8     General Description:
9           This bill amends provisions relating to the Water Quality Board.
10     Highlighted Provisions:
11          This bill:
12          ▸      provides for review of certain Water Quality Board rules or standards;
13          ▸     modifies the duties of the Administrative Rules Review Committee; and
14          ▸     makes technical amendments.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          19-5-104.5, as enacted by Laws of Utah 2011, Chapter 304
22          63G-3-501, as last amended by Laws of Utah 2016, Chapter 193

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 19-5-104.5 is amended to read:

26          19-5-104.5. Legislative approval.
27          (1) Before sending a board-approved report, strategy, or recommendation that will
28     recommend a total maximum daily load end point and implementation strategy to the EPA for
29     review and approval, [the Water Quality Board] or before the board adopts a state established
30     nitrogen, phosporus, or ammonia rule or standard, the board shall submit the report, strategy,
31     rule, standard, or recommendation:
32          (a) for review to the Natural Resources, Agriculture, and Environment Interim
33     Committee if the report, strategy, rule, standard, or recommendation will require [a public or
34     private] an individual public facility, or group of private agricultural facilities, with an
35     approved Utah pollutant discharge elimination system permit to make an expenditure in excess
36     of $10,000,000 but less than $100,000,000 for compliance either through an initial capital
37     investment or through operational costs over a 20-year period; or
38          (b) for approval to the Legislature if the strategy, rule, or standard will require [a public
39     or private] an individual public facility, or group of private agricultural facilities, with an
40     approved Utah pollutant discharge elimination system permit to make an expenditure of
41     $100,000,000 or more either through an initial capital investment or through operational costs
42     over a 20-year period.
43          [(2) In reviewing a report, strategy, or recommendation, the Natural Resources,
44     Agriculture, and Environment Interim Committee may:]
45          [(a) suggest additional areas of consideration; or]
46          [(b) recommend the report, strategy, or recommendation be re-evaluated by the Water
47     Quality Board.]
48          (2) (a) An impacted facility, using an independent licensed engineer employed by a
49     facility, shall determine an expenditure under Subsection (1)(a) or (b) using industry accepted
50     project budgetary cost estimate methods.
51          (b) The board may evaluate and report on an expenditure estimate determined under
52     Subsection (2)(a).
53          (3) In conducting a review under Subsection (1)(a), the Natural Resources, Agriculture,
54     and Environment Interim Committee:
55          (a) shall consider the impact of the report, strategy, rule, standard, or recommendation
56     on:

57          (i) economic costs and benefits;
58          (ii) public health; and
59          (iii) the environment; and
60          (b) may refer the report, strategy, rule, standard, or recommendation to the board:
61          (i) for final action; or
62          (ii) for re-evaluation followed by further review by the committee.
63          Section 2. Section 63G-3-501 is amended to read:
64          63G-3-501. Administrative Rules Review Committee.
65          (1) (a) There is created an Administrative Rules Review Committee of the following
66     10 permanent members:
67          (i) five members of the Senate appointed by the president of the Senate, no more than
68     three of whom may be from the same political party; and
69          (ii) five members of the House of Representatives appointed by the speaker of the
70     House of Representatives, no more than three of whom may be from the same political party.
71          (b) Each permanent member shall serve:
72          (i) for a two-year term; or
73          (ii) until the permanent member's successor is appointed.
74          (c) (i) A vacancy exists when a permanent member ceases to be a member of the
75     Legislature, or when a permanent member resigns from the committee.
76          (ii) When a vacancy exists:
77          (A) if the departing member is a member of the Senate, the president of the Senate
78     shall appoint a member of the Senate to fill the vacancy; or
79          (B) if the departing member is a member of the House of Representatives, the speaker
80     of the House of Representatives shall appoint a member of the House of Representatives to fill
81     the vacancy.
82          (iii) The newly appointed member shall serve the remainder of the departing member's
83     unexpired term.
84          (d) (i) The president of the Senate shall designate a member of the Senate appointed
85     under Subsection (1)(a)(i) as a cochair of the committee.
86          (ii) The speaker of the House of Representatives shall designate a member of the
87     House of Representatives appointed under Subsection (1)(a)(ii) as a cochair of the committee.

88          (e) Three representatives and three senators from the permanent members are a quorum
89     for the transaction of business at any meeting.
90          (f) (i) Subject to Subsection (1)(f)(ii), the committee shall meet at least once each
91     month to review new agency rules, amendments to existing agency rules, and repeals of
92     existing agency rules.
93          (ii) The committee chairs may suspend the meeting requirement described in
94     Subsection (1)(f)(i) at the committee chairs' discretion.
95          (2) The office shall submit a copy of each issue of the bulletin to the committee.
96          (3) (a) The committee shall exercise continuous oversight of the rulemaking process.
97          (b) The committee shall examine each rule submitted by an agency to determine:
98          (i) whether the rule is authorized by statute;
99          (ii) whether the rule complies with legislative intent;
100          (iii) the rule's impact on the economy and the government operations of the state and
101     local political subdivisions; [and]
102          (iv) the rule's impact on affected persons[.];
103          (v) the rule's total cost to entities regulated by the state;
104          (vi) the rule's benefits to the citizens of the state; and
105          (vii) whether adoption of the rule requires legislative notice or approval.
106          (c) To carry out these duties, the committee may examine any other issues that the
107     committee considers necessary. The committee may also notify and refer rules to the chairs of
108     the interim committee that has jurisdiction over a particular agency when the committee
109     determines that an issue involved in an agency's rules may be more appropriately addressed by
110     that committee.
111          (d) In reviewing a rule, the committee shall follow generally accepted principles of
112     statutory construction.
113          (4) When the committee reviews existing rules, the committee chairs shall invite the
114     Senate and House chairs of the standing committee and of the appropriation subcommittee that
115     have jurisdiction over the agency whose existing rules are being reviewed to participate as
116     nonvoting, ex officio members with the committee.
117          (5) (a) The committee may request that the Office of the Legislative Fiscal Analyst
118     prepare a fiscal note on any rule.

119          (b) If the fiscal impact of a rule is greater than $10,000,000 to a single entity or
120     $100,000,000 to a group of entities, as determined by the Office of the Legislative Fiscal
121     Analyst under Subsection (5)(a), the rule shall be referred to the relevant appropriations
122     subcommittee for review.
123          (6) In order to accomplish the committee's functions described in this chapter, the
124     committee has all the powers granted to legislative interim committees under Section 36-12-11.
125          (7) (a) The committee may prepare written findings of the committee's review of a rule
126     and may include any recommendations, including legislative action.
127          (b) When the committee reviews a rule, the committee shall provide to the agency that
128     enacted the rule:
129          (i) the committee's findings, if any; and
130          (ii) a request that the agency notify the committee of any changes the agency makes to
131     the rule.
132          (c) The committee shall provide a copy of the committee's findings, if any, to:
133          (i) any member of the Legislature, upon request;
134          (ii) any person affected by the rule, upon request;
135          (iii) the president of the Senate;
136          (iv) the speaker of the House of Representatives;
137          (v) the Senate and House chairs of the standing committee that has jurisdiction over the
138     agency that made the rule; and
139          (vi) the Senate and House chairs of the appropriation subcommittee that has
140     jurisdiction over the agency that made the rule.
141          (8) (a) The committee may submit a report on its review of state agency rules to each
142     member of the Legislature at each regular session.
143          (b) The report shall include:
144          (i) any findings and recommendations the committee made under Subsection (7);
145          (ii) any action an agency took in response to committee recommendations; and
146          (iii) any recommendations by the committee for legislation.