1     
WATER LOSS ACCOUNTING ACT

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Melissa G. Ballard

5     
Senate Sponsor: David P. Hinkins

6     

7     LONG TITLE
8     Committee Note:
9          The Legislative Water Development Commission recommended this bill.
10               Membership:     13 legislators     11 non-legislators
11               Legislative Vote:     6 voting for     2 voting against     5 absent
12     General Description:
13          This bill addresses data related to water including water losses.
14     Highlighted Provisions:
15          This bill:
16          ▸     addresses sunset provisions;
17          ▸     enacts the Water Loss Accounting Act, including:
18               •     defining terms;
19               •     granting rulemaking authority;
20               •     providing for a technical advisory committee;
21               •     requiring water loss accounting reports; and
22               •     providing for technical assistance; and
23          ▸     makes technical amendments.
24     Money Appropriated in this Bill:
25          This bill appropriates in fiscal year 2021:
26          ▸     to Department of Natural Resources - Division of Water Resources, as a one-time
27     appropriation:

28               •     from General Fund, $1,350,000
29          ▸     to DNR Pass-through, as a one-time appropriation:
30               •     from General Fund, $150,000
31          ▸     to Department of Natural Resources - Division of Water Resources:
32               •     from General Fund, as an ongoing appropriation $300,000
33               •     from General Fund, one-time ($300,000)
34     Other Special Clauses:
35          None
36     Utah Code Sections Affected:
37     AMENDS:
38          63I-1-273, as last amended by Laws of Utah 2019, Chapters 96 and 246
39     ENACTS:
40          73-10h-101, Utah Code Annotated 1953
41          73-10h-102, Utah Code Annotated 1953
42          73-10h-103, Utah Code Annotated 1953
43          73-10h-104, Utah Code Annotated 1953
44          73-10h-201, Utah Code Annotated 1953
45          73-10h-202, Utah Code Annotated 1953
46     

47     Be it enacted by the Legislature of the state of Utah:
48          Section 1. Section 63I-1-273 is amended to read:
49          63I-1-273. Repeal dates, Title 73.
50          In relation to the Legislative Water Development Commission, on January 1, 2021:
51          (1) in Subsection 73-10g-105(3), the language that states "and in consultation with the
52     State Water Development Commission created in Section 73-27-102" is repealed;
53          (2) Subsection 73-10g-203(4)(a) is repealed; [and]
54          (3) Subsection 73-10h-201(2)(b)(ii) is repealed;
55          (4) in Subsection 73-10h-201(2)(c) the language that states "and the Legislative Water
56     Development Commission" is repealed; and
57          [(3)] (5) Title 73, Chapter 27, State Water Development Commission, is repealed.
58          Section 2. Section 73-10h-101 is enacted to read:

59     
CHAPTER 10h. WATER LOSS ACCOUNTING ACT

60     
Part 1. General Provisions

61          73-10h-101. Title.
62          This chapter is known as the "Water Loss Accounting Act."
63          Section 3. Section 73-10h-102 is enacted to read:
64          73-10h-102. Definitions.
65          As used in this section:
66          (1) "Covered entity" means the owner or operator of a public water system that serves a
67     population of more than 3,300 individuals.
68          (2) "Division" means the Division of Water Resources.
69          (3) "Public water system" means the same as that term is defined in Section 19-4-102.
70          (4) (a) "Water loss" means the difference between the annual volume of water entering
71     a water distribution system and the annual volume of metered water, unmetered water, or both
72     taken by registered customers, the covered entity, and others who are implicitly or explicitly
73     authorized to take water.
74          (b) "Water loss" includes:
75          (i) the annual volumes lost through leaks, breaks, and overflows on mains, service
76     reservoirs, and service connections, up to the point of customer metering;
77          (ii) unauthorized consumption;
78          (iii) metering inaccuracies; and
79          (iv) systemic data handling errors.
80          Section 4. Section 73-10h-103 is enacted to read:
81          73-10h-103. Rulemaking.
82          The division shall make the following rules in accordance with Title 63G, Chapter 3,
83     Utah Administrative Rulemaking Act, and after consultation with the technical advisory
84     committee:
85          (1) the selection of the method of conducting a water loss audit under Subsection
86     73-10h-201(1)(a)(i);
87          (2) the standards and processes for validating a water loss audit; and
88          (3) the establishment of the standards and processes for submitting a water loss
89     accounting report under Subsection 73-10h-201(1).

90          Section 5. Section 73-10h-104 is enacted to read:
91          73-10h-104. Technical advisory committee.
92          (1) The division shall establish a technical advisory committee that may include
93     representatives of nonprofit civic entities, professional organizations, covered entities, and
94     other state agencies.
95          (2) The technical advisory committee may assist or advise the division with
96     implementing this chapter.
97          Section 6. Section 73-10h-201 is enacted to read:
98     
Part 2. Water Loss Accounting Reporting

99          73-10h-201. Water loss accounting reports.
100          (1) By no later than a date specified in rule in calendar year 2022, and on or before the
101     date specified in rule of each subsequent year, a covered entity shall:
102          (a) prepare a water loss accounting report that contains the following:
103          (i) a standardized water loss audit conducted in accordance with a method selected by
104     the division by rule that meets industry standards; and
105          (ii) a brief written summary of:
106          (A) actions taken during the reporting year to reduce the volume of water losses in the
107     system and to improve the data validity; and
108          (B) the actions that are planned for the subsequent reporting year;
109          (b) have the water loss audit validated in accordance with rule; and
110          (c) submit the water loss accounting report in accordance with rule.
111          (2) (a) By no later than October 31, 2022, and by October 31 of each subsequent year,
112     the division shall:
113          (i) prepare an annual summary of the validated water loss accounting reports; and
114          (ii) publish the annual summary prepared under this Subsection (2) on the division's
115     website.
116          (b) During the 2022 interim of the Legislature, the division shall report the annual
117     summary and report on compliance with this chapter by covered entities to the:
118          (i) Natural Resources, Agriculture, and Environment Interim Committee; and
119          (ii) Legislative Water Development Commission.
120          (c) During the 2024 interim of the Legislature, the division shall report to the Natural

121     Resources, Agriculture, and Environment Interim Committee and the Legislative Water
122     Development Commission about the following:
123          (i) issues related to accurately metering water supply and use, including residential use
124     of primary or secondary water;
125          (ii) operational priorities of covered entities related to implementation of this chapter;
126          (iii) an analysis of the annual summaries prepared by the division to date; and
127          (iv) any other issue the division considers relevant to the implementation of this
128     chapter.
129          (3) A covered entity may only receive money from the division if the covered entity
130     complies with this section.
131          Section 7. Section 73-10h-202 is enacted to read:
132          73-10h-202. Technical assistance -- Education programs and services.
133          (1) The division shall contract with a qualified entity that provides education programs
134     and services including subject matter experts to provide the training described in Subsection
135     (2).
136          (2) The training shall:
137          (a) instruct a covered entity on the method of conducting a water loss audit using the
138     method adopted under Subsection 73-10h-201(1)(a)(i);
139          (b) guide a covered entity in the process to determine a plan for water loss control as
140     required in the development of a summary report required under Subsection
141     73-10h-201(1)(a)(ii); and
142          (c) include the initial validation of a water loss audit required by Section 73-10h-201.
143          Section 8. Appropriation.
144          The following sums of money are appropriated for the fiscal year beginning July 1,
145     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
146     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
147     Act, the Legislature appropriates the following sums of money from the funds or accounts
148     indicated for the use and support of government of the state of Utah.
149     ITEM 1
150          To Department of Natural Resources - Division of Water Resources
151               From General Fund, one-time
$1,350,000


152               Schedule of Programs:
153                    Planning program               $1,350,000
154          The Legislature intends that the $1,350,000 be used as follows under the Water Loss
155     Accounting Act enacted by this bill:
156          (1) $900,000 to provide for technical assistance and education to covered entities; and
157          (2) $450,000 to develop a validation program for water loss audits including training of
158     individuals to conduct validations.
159     ITEM 2
160          To DNR Pass Through
161               From General Fund, one-time
$150,000

162               Schedule of Programs:
163                    DNR Pass Through               $150,000
164          The Legislature intends that the $150,000 be used to integrate information from water
165     accounting reports with existing water related reporting requirements as recommended by the
166     technical advisory committee under the Water Loss Accounting Act enacted by this bill.
167     ITEM 3
168          To Department of Natural Resources - Division of Water Resources
169               From General Fund
$300,000

170               From General Fund, one-time
($300,000)

171               Schedule of Programs:
172                    Planning program               $300,000
173                                             ($300,000)
174          The Legislature intends that the $300,000 be used to pay the ongoing expenses of the
175     Water Loss Accounting Act enacted by this bill.