Senator Jacob L. Anderegg proposes the following substitute bill:


1     
SECONDARY WATER METERING REQUIREMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
House Sponsor: Timothy D. Hawkes

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 design work for new secondary water services to certain users on or
17     after 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 2039;
20               •     to develop and submit to the Division of Water Rights a strategy for meeting the
21     2039 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 25% 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 $20,000,000 in loans and grants
30     available each 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 and grants for financing secondary water metering and
33     exemptions;
34          ▸     creates the Secondary Water Metering Restricted Account (account);
35          ▸     requires the Division of Water Resources to make grants from the account to assist
36     secondary water suppliers to finance metering of the use of secondary water; and
37          ▸     authorizes the Division of Water Resources to make rules for the administration of
38     the account.
39     Money Appropriated in this Bill:
40          None
41     Other Special Clauses:
42          None
43     Utah Code Sections Affected:
44     ENACTS:
45          73-10-34, Utah Code Annotated 1953
46          73-10-35, Utah Code Annotated 1953
47     

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

57     system and a user.
58          (d) (i) "Industrial user" means a secondary water user that manufactures or produces
59     materials.
60          (ii) "Industrial user" includes a manufacturing plant, an oil and gas producer, and a
61     mining company.
62          (e) (i) "Institutional user" means a secondary water user that is dedicated to public
63     service, regardless of ownership.
64          (ii) "Institutional user" includes a school, church, hospital, park, golf course, and
65     government facility.
66          (f) (i) "Residential user" means a secondary water user in a residence.
67          (ii) "Residential user" includes a single-family or multi-family home, apartment,
68     duplex, twin home, condominium, or planned community.
69          (g) "Secondary water" means water that is:
70          (i) not culinary or agricultural water; and
71          (ii) delivered to and used by an end consumer for the irrigation of landscaping or a
72     garden.
73          (h) "Secondary water supplier" means an entity that supplies pressurized secondary
74     water.
75          (2) A secondary water supplier that begins design work for new service on or after July
76     1, 2019, to a commercial, industrial, institutional, or residential user shall meter the use of
77     pressurized secondary water by the users receiving that new service.
78          (3) (a) Each secondary water supplier that supplies pressurized secondary water to a
79     commercial, industrial, institutional, or residential user shall meter the use of the pressurized
80     secondary water by December 31, 2039.
81          (b) Each secondary water supplier shall finance at least 25% of the supplier's total cost
82     to comply with this Subsection (3) without the use of:
83          (i) a loan described in Subsection (6); or
84          (ii) a grant described in Section 73-10-35.
85          (c) If a secondary water provider acquires a metering device that has the ability to
86     provide flow data, usage data, or both in real-time, the secondary water provider shall make the
87     data available to the user in an open-source format upon request.

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

119          (a) the requirements of and the procedure for submitting a report under Subsection
120     (4)(a); and
121          (b) the requirements of and the procedure for submitting a strategy under Subsection
122     (4)(b).
123          (6) (a) Beginning July 1, 2019, and ending June 30, 2039, the board shall make at least
124     $10,000,000 in loans available each year:
125          (i) from the Water Resources Conservation and Development Fund, created in Section
126     73-10-24; and
127          (ii) for financing, in conjunction with grants from the Secondary Water Metering
128     Restricted Account, created in Section 73-10-35, the cost of secondary water metering as
129     described in Subsection (3).
130          (b) The Division of Water Resources shall ensure that:
131          (i) in accordance with Subsection (3), the total amount available to a secondary water
132     supplier through:
133          (A) a loan described in this Subsection (6) does not exceed 25% of the supplier's total
134     cost to comply with Subsection (3); and
135          (B) a grant described in Section 73-10-35 does not exceed 50% of the supplier's total
136     cost to comply with Subsection (3); and
137          (ii) for the purpose of determining the amount of a loan under this Subsection (6) or a
138     grant described in Section 73-10-35, the calculation of a secondary water supplier's total cost to
139     comply with Subsection (3) includes secondary water metering costs the secondary water
140     supplier:
141          (A) incurs in or before May 2019; or
142          (B) finances through a loan, bond, grant, subsidy, program, or any other means not
143     described in this Subsection (6) or Section 73-10-35.
144          (c) The Division of Water Resources and board shall make rules in accordance with
145     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing the criteria and
146     process for receiving a loan described in this Subsection (6).
147          (7) A commercial, industrial, institutional, or residential user may not use culinary
148     water for the regular irrigation of landscaping or a garden, if:
149          (a) the user has a connection to secondary water;

150          (b) the user's area is served with both culinary and secondary water; and
151          (c) the user's secondary water rates exceed the user's culinary water rates.
152          (8) The Division of Water Resources may exempt a secondary water supplier from the
153     requirements of this section if, after testing, there is no meter that a meter manufacturer will
154     warrant for the water in a specific location. In accordance with Title 63G, Chapter 3, Utah
155     Administrative Rulemaking Act, the Division of Water Resources may make rules for the
156     implementation of this Subsection (8).
157          Section 2. Section 73-10-35 is enacted to read:
158          73-10-35. Creation of Secondary Water Metering Restricted Account --
159     Awarding of grants from the restricted account.
160          (1) There is created with the General Fund a restricted account known as the Secondary
161     Water Metering Restricted Account.
162          (2) The restricted account consists of:
163          (a) any voluntary contributions received;
164          (b) appropriations the Legislature makes to the restricted account; and
165          (c) interest or other earnings accrued pursuant to Subsection (3)(b).
166          (3) The state treasurer shall:
167          (a) invest the money in the restricted account by following the procedures and
168     requirements of Title 51, Chapter 7, State Money Management Act; and
169          (b) deposit all interest or other earnings derived from those investments into the
170     restricted account.
171          (4) Upon appropriation from the Legislature, the Division of Water Resources shall
172     make grants from the Secondary Water Metering Restricted Account:
173          (a) to assist secondary water suppliers, as defined in Section 73-10-34, to comply with
174     Subsection 73-10-34(3);
175          (b) beginning July 1, 2019, and ending June 30, 2039, in the total amount of up to
176     $10,000,000 each year; and
177          (c) in accordance with Subsection 73-10-34(6)(b).
178          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
179     Division of Water Resources shall make rules establishing:
180          (a) criteria for awarding grants under this section; and

181          (b) criteria for determining eligibility for assistance under this section, specifically
182     including factors such as the size of the secondary water supplier's budget, the secondary water
183     supplier's ability to contribute to the cost of complying with Subsection 73-10-34(4), and the
184     water rates that would have to be charged to cover the secondary water supplier's contribution
185     to the costs.