1     
SECONDARY WATER METERING REQUIREMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill addresses the metering of pressurized secondary water.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     requires a secondary water supplier to report certain information to the Division of
14     Water Rights each year;
15          ▸     requires a secondary water provider:
16               •     that begins providing new secondary water services to certain users on or after
17     July 1, 2019, to meter the use of water;
18               •     to meter the use of all of the secondary water provider's commercial, industrial,
19     institutional, and residential users by 2030;
20               •     to develop and submit to the Division of Water Rights a strategy for meeting the
21     2030 metering requirement; and
22               •     to provide educational material to certain users;
23          ▸     authorizes the Division of Water Rights to make, in conjuction with the Division of
24     Water Resources, rules regarding the requirements of and the procedure for
25     submitting a required report or strategy;
26          ▸     requires a secondary water supplier to finance at least 50% of the total cost to meet
27     secondary water metering requirements through means other than those provided for

28     in this bill;
29          ▸     requires the Board of Water Resources to make $10,000,000 in loans available each
30     year for the financing of secondary water metering;
31          ▸     authorizes the Board of Water Resources and the Division of Water Resources to
32     make rules regarding loans for financing secondary water metering;
33          ▸     creates the Secondary Water Metering Restricted Account (account);
34          ▸     requires the Division of Water Resources to make grants from the account to assist
35     secondary water suppliers finance metering the use of secondary water; and
36          ▸     authorizes the Division of Water Resources to make rules for the administration of
37     the account.
38     Money Appropriated in this Bill:
39          None
40     Other Special Clauses:
41          None
42     Utah Code Sections Affected:
43     ENACTS:
44          73-10-34, Utah Code Annotated 1953
45          73-10-35, Utah Code Annotated 1953
46     

47     Be it enacted by the Legislature of the state of Utah:
48          Section 1. Section 73-10-34 is enacted to read:
49          73-10-34. Secondary water metering.
50          (1) As used in this section:
51          (a) "Board" means the Board of Water Resources created in Section 73-10-1.5.
52          (b) (i) "Commercial user" means a secondary water user that is a place of business.
53          (ii) "Commercial user" does not include a multi-family residence, an agricultural user,
54     or a customer that falls within the industrial or institutional classification.
55          (c) "Connection" means a connection between a pressurized secondary water supply
56     system and a user.
57          (d) (i) "Industrial user" means a secondary water user that manufactures or produces
58     materials.

59          (ii) "Industrial user" includes a manufacturing plant, an oil and gas producer, and a
60     mining company.
61          (e) (i) "Institutional user" means a secondary water user that is dedicated to public
62     service, regardless of ownership.
63          (ii) "Institutional user" includes a school, church, hospital, park, golf course, and
64     government facility.
65          (f) (i) "Residential user" means a secondary water user in a residence.
66          (ii) "Residential user" includes a single-family or multi-family home, apartment,
67     duplex, twin home, condominium, or planned community.
68          (g) "Secondary water" means water that is:
69          (i) not culinary or agricultural water; and
70          (ii) delivered to and used by an end consumer for the irrigation of landscaping or a
71     garden.
72          (h) "Secondary water supplier" means an entity that supplies pressurized secondary
73     water.
74          (2) A secondary water supplier that begins providing new service on or after July 1,
75     2019, to a commercial, industrial, institutional, or residential user shall meter the use of
76     pressurized secondary water by the user receiving new service.
77          (3) (a) Each secondary water supplier that supplies pressurized secondary water to a
78     commercial, industrial, institutional, or residential user shall meter the use of the pressurized
79     secondary water by 2030.
80          (b) Each secondary water supplier shall finance at least 50% of the supplier's total cost
81     to comply with this Subsection (3) without the use of:
82          (i) a loan described in Subsection (6); or
83          (ii) a grant described in Section 73-10-35.
84          (4) A secondary water supplier shall:
85          (a) on or before March 31 of each year, report to the Division of Water Rights:
86          (i) for commercial, industrial, institutional, and residential users whose pressurized
87     secondary water use is metered, the number of acre feet of pressurized secondary water the
88     secondary water supplier supplied to the commercial, industrial, institutional, and residential
89     users during the preceding 12-month period;

90          (ii) the number of secondary water meters within the secondary water supplier's service
91     boundary;
92          (iii) a description of the secondary water supplier's service boundary;
93          (iv) the number of connections in each of the following categories through which the
94     secondary water supplier supplies pressurized secondary water:
95          (A) commercial;
96          (B) industrial;
97          (C) institutional; and
98          (D) residential;
99          (v) for each size of connection, the number of connections in that size through which
100     the secondary water supplier supplies pressurized secondary water; and
101          (vi) the dates of service during the preceding 12-month period in which the secondary
102     water supplier supplied pressurized secondary water;
103          (b) on or before March 31, 2020, develop and submit to the Division of Water Rights
104     the secondary water supplier's strategy to comply with the metering requirement described in
105     Subsection (3); and
106          (c) each month that the secondary water supplier provides service, provide each of the
107     secondary water supplier's metered commercial, industrial, institutional, and residential users
108     with educational material regarding the user's pressurized secondary water use that shall
109     include:
110          (i) the user's pressurized secondary water use in relation to others in the area; and
111          (ii) one or more suggestions for conserving pressurized secondary water use.
112          (5) The Division of Water Rights in conjunction with the Division of Water Resources
113     shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
114     Act, establishing:
115          (a) the requirements of and the procedure for submitting a report under Subsection
116     (4)(a); and
117          (b) the requirements of and the procedure for submitting a strategy under Subsection
118     (4)(b).
119          (6) (a) Beginning July 1, 2019, and ending June 30, 2030, the board shall make
120     $10,000,000 in loans available each year:

121          (i) from the Water Conservation and Development Fund, created in Section 73-10-24;
122     and
123          (ii) for financing the remaining cost of secondary water metering as described in
124     Subsection (3).
125          (b) The Division of Water Resources shall ensure that:
126          (i) in accordance with Subsection (3), the total amount available to a secondary water
127     supplier through:
128          (A) a loan described in this Subsection (6) does not exceed 50% of the supplier's total
129     cost to comply with Subsection (3);
130          (B) a grant described in Section 73-10-35 does not exceed 16.5% of the supplier's total
131     cost to comply with Subsection (3); and
132          (C) a combination of a loan described in this Subsection (6) and a grant described in
133     Section 73-10-35 does not exceed 50% of the supplier's total cost to comply with Subsection
134     (3); and
135          (ii) for the purpose of determining the amount of a loan under this Subsection (6) or a
136     grant described in Section 73-10-35, the calculation of a secondary water supplier's total cost to
137     comply with Subsection (3) includes secondary water metering costs the secondary water
138     supplier:
139          (A) incurs in or before May 2019; or
140          (B) finances through a loan, bond, grant, subsidy, program, or any other means not
141     described in this Subsection (6) or Section 73-10-35.
142          (c) The Division of Water Resources and board shall make rules in accordance with
143     Title 63G, Chapter 3, Utah Administrative Rulemaking Act establishing the criteria and
144     process for receiving a loan described in this Subsection (6).
145          (7) A commercial, industrial, institutional, or residential user may not use culinary
146     water for the regular irrigation of landscaping or a garden, if:
147          (a) the user has a connection to secondary water;
148          (b) the user's area is served with both culinary and secondary water; and
149          (c) the user's secondary water rates exceed the user's culinary water rates.
150          Section 2. Section 73-10-35 is enacted to read:
151          73-10-35. Creation of Secondary Water Metering Restricted Account --

152     Awarding of grants from the restricted account.
153          (1) There is created with the General Fund a restricted account known as the Secondary
154     Water Metering Restricted Account.
155          (2) The restricted account consists of:
156          (a) any voluntary contributions received;
157          (b) appropriations the Legislature makes to the restricted account; and
158          (c) interest accrued pursuant to Subsection (3)(b).
159          (3) The state treasurer shall:
160          (a) invest the money in the restricted account by following the procedures and
161     requirements of Title 51, Chapter 7, State Money Management Act; and
162          (b) deposit all interest or other earnings derived from those investments into the
163     restricted account.
164          (4) Upon appropriation from the Legislature, the Division of Water Resources shall
165     make grants from the Secondary Water Metering Restricted Account:
166          (a) to assist secondary water suppliers, as defined in Section 73-10-34, comply with
167     Subsection 73-10-34(3);
168          (b) beginning July 1, 2019, and ending June 30, 2030, in the total amount of up to
169     $5,000,000 each year; and
170          (c) in accordance with Subsection 73-10-34(6)(b).
171          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
172     Division of Water Resources shall make rules establishing:
173          (a) criteria for awarding grants under this section; and
174          (b) criteria for determining eligibility for assistance under this section.