1     
WATER REUSE PROJECTS AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Casey Snider

5     
Senate Sponsor: Michael K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill addresses water reuse projects.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     addresses approval of water reuse projects, including providing that the director of
14     the Division of Water Quality approves;
15          ▸     prohibits approval of certain water reuse projects impacting the Great Salt Lake;
16          ▸     authorizes rulemaking;
17          ▸     creates exceptions;
18          ▸     addresses water replacement plans;
19          ▸     provides for investigation of water reuse impacts as part of the integrated
20     assessment of the Great Salt Lake; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          19-5-104, as last amended by Laws of Utah 2020, Chapter 256

29          19-5-106, as last amended by Laws of Utah 2012, Chapter 360
30          73-3c-102, as enacted by Laws of Utah 2006, Chapter 179
31          73-3c-301, as last amended by Laws of Utah 2008, Chapter 382
32          73-3c-302, as last amended by Laws of Utah 2008, Chapter 382
33          73-3c-304, as enacted by Laws of Utah 2006, Chapter 179
34          73-10g-402, as enacted by Laws of Utah 2022, Chapter 81
35     ENACTS:
36          73-3c-103, Utah Code Annotated 1953
37     

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 19-5-104 is amended to read:
40          19-5-104. Powers and duties of board.
41          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
42     board may make rules that:
43          (a) taking into account Subsection (6):
44          (i) implement the awarding of construction loans to political subdivisions and
45     municipal authorities under Section 11-8-2, including:
46          (A) requirements pertaining to applications for a loan;
47          (B) requirements for determination of an eligible project;
48          (C) requirements for determination of the costs upon which a loan is based, which
49     costs may include engineering, financial, legal, and administrative expenses necessary for the
50     construction, reconstruction, and improvement of a sewage treatment plant, including a major
51     interceptor, collection system, or other facility appurtenant to the plant;
52          (D) a priority schedule for awarding loans, in which the board may consider, in
53     addition to water pollution control needs, any financial needs relevant, including per capita
54     cost, in making a determination of priority; and
55          (E) requirements for determination of the amount of the loan;

56          (ii) implement the awarding of loans for nonpoint source projects pursuant to Section
57     73-10c-4.5;
58          (iii) set effluent limitations and standards subject to Section 19-5-116;
59          (iv) implement or effectuate the powers and duties of the board; and
60          (v) protect the public health for the design, construction, operation, and maintenance of
61     underground wastewater disposal systems, liquid scavenger operations, and vault and earthen
62     pit privies;
63          (b) govern inspection, monitoring, recordkeeping, and reporting requirements for
64     underground injections and require permits for underground injections, to protect drinking
65     water sources, except for wells, pits, and ponds covered by Section 40-6-5 regarding gas and
66     oil, recognizing that underground injection endangers drinking water sources if:
67          (i) injection may result in the presence of a contaminant in underground water that
68     supplies or can reasonably be expected to supply a public water system, as defined in Section
69     19-4-102; and
70          (ii) the presence of the contaminant may:
71          (A) result in the public water system not complying with any national primary drinking
72     water standards; or
73          (B) otherwise adversely affect the health of persons;
74          (c) govern sewage sludge management, including permitting, inspecting, monitoring,
75     recordkeeping, and reporting requirements; and
76          (d) notwithstanding Section 19-4-112, govern design and construction of irrigation
77     systems that:
78          (i) convey sewage treatment facility effluent of human origin in pipelines under
79     pressure, unless contained in surface pipes wholly on private property and for agricultural
80     purposes; and
81          (ii) are constructed after May 4, 1998.
82          (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,

83     the board shall adopt and enforce rules and establish fees to cover the costs of:
84          (i) managing the certification and testing program; and
85          (ii) testing for certification of operators of treatment works and sewerage systems
86     operated by political subdivisions.
87          (b) In establishing certification rules under Subsection (2)(a), the board shall:
88          (i) base the requirements for certification on the size, treatment process type, and
89     complexity of the treatment works and sewerage systems operated by political subdivisions;
90          (ii) allow operators until three years after the date of adoption of the rules to obtain
91     initial certification;
92          (iii) allow a new operator one year from the date the operator is hired by a treatment
93     plant or sewerage system or three years after the date of adoption of the rules, whichever occurs
94     later, to obtain certification;
95          (iv) issue certification upon application and without testing, at a grade level
96     comparable to the grade of current certification to operators who are currently certified under
97     the voluntary certification plan for wastewater works operators as recognized by the board; and
98          (v) issue a certification upon application and without testing that is valid only at the
99     treatment works or sewerage system where that operator is currently employed if the operator:
100          (A) is in charge of and responsible for the treatment works or sewerage system on
101     March 16, 1991;
102          (B) has been employed at least 10 years in the operation of that treatment works or
103     sewerage system before March 16, 1991; and
104          (C) demonstrates to the board the operator's capability to operate the treatment works
105     or sewerage system at which the operator is currently employed by providing employment
106     history and references as required by the board.
107          (3) The board shall:
108          (a) develop programs for the prevention, control, and abatement of new or existing
109     pollution of the waters of the state;

110          (b) adopt, modify, or repeal standards of quality of the waters of the state and classify
111     those waters according to their reasonable uses in the interest of the public under conditions the
112     board may prescribe for the prevention, control, and abatement of pollution;
113          (c) give reasonable consideration in the exercise of its powers and duties to the
114     economic impact of water pollution control on industry and agriculture;
115          (d) meet the requirements of federal law related to water pollution;
116          (e) establish and conduct a continuing planning process for control of water pollution,
117     including the specification and implementation of maximum daily loads of pollutants;
118          [(f) (i) approve, approve in part, approve with conditions, or deny, in writing, an
119     application for water reuse under Title 73, Chapter 3c, Wastewater Reuse Act; and]
120          [(ii) issue an operating permit for water reuse under Title 73, Chapter 3c, Wastewater
121     Reuse Act;]
122          [(g)] (f) (i) review total daily maximum load reports and recommendations for water
123     quality end points and implementation strategies developed by the division before submission
124     of the report, recommendation, or implementation strategy to the EPA;
125          (ii) disapprove, approve, or approve with conditions the staff total daily maximum load
126     recommendations; and
127          (iii) provide suggestions for further consideration to the Division of Water Quality in
128     the event a total daily maximum load strategy is rejected; and
129          [(h)] (g) to ensure compliance with applicable statutes and regulations:
130          (i) review a settlement negotiated by the director in accordance with Subsection
131     19-5-106(2)(k) that requires a civil penalty of $25,000 or more; and
132          (ii) approve or disapprove the settlement described in Subsection [(3)(h)(i).] (3)(g)(i).
133          (4) The board may:
134          (a) order the director to issue, modify, or revoke an order:
135          (i) prohibiting or abating discharges;
136          (ii) (A) requiring the construction of new treatment works or any parts of the new

137     treatment works;
138          (B) requiring the modification, extension, or alteration of existing treatment works as
139     specified by board rule or any parts of existing treatment works; or
140          (C) the adoption of other remedial measures to prevent, control, or abate pollution;
141          (iii) setting standards of water quality, classifying waters or evidencing any other
142     determination by the board under this chapter; or
143          (iv) requiring compliance with this chapter and with rules made under this chapter;
144          (b) advise, consult, and cooperate with another agency of the state, the federal
145     government, another state, an interstate agency, an affected group, an affected political
146     subdivision, or affected industry to further the purposes of this chapter; or
147          (c) delegate the authority to issue an operating permit to a local health department.
148          (5) In performing the duties listed in Subsections (1) through (4), the board shall give
149     priority to pollution that results in a hazard to the public health.
150          (6) The board shall take into consideration the availability of federal grants:
151          (a) in determining eligible project costs; and
152          (b) in establishing priorities pursuant to Subsection (1)(a)(i).
153          (7) The board may not issue, amend, renew, modify, revoke, or terminate any of the
154     following that are subject to the authority granted to the director under Section 19-5-106:
155          (a) a permit;
156          (b) a license;
157          (c) a registration;
158          (d) a certification; or
159          (e) another administrative authorization made by the director.
160          (8) A board member may not speak or act for the board unless the board member is
161     authorized by a majority of a quorum of the board in a vote taken at a meeting of the board.
162          Section 2. Section 19-5-106 is amended to read:
163          19-5-106. Director -- Appointment -- Duties.

164          (1) The executive director shall appoint the director. The director shall serve under the
165     administrative direction of the executive director.
166          (2) The director shall:
167          (a) develop programs for the prevention, control, and abatement of new or existing
168     pollution of the waters of the state;
169          (b) advise, consult, and cooperate with other agencies of the state, the federal
170     government, other states and interstate agencies, and with affected groups, political
171     subdivisions, and industries in furtherance of the purposes of this chapter;
172          (c) develop programs for the management of sewage sludge;
173          (d) subject to the provisions of this chapter, enforce rules made by the board through
174     the issuance of orders, which orders may include:
175          (i) prohibiting or abating discharges of wastes into the waters of the state;
176          (ii) requiring the construction of new control facilities or any parts of them or the
177     modification, extension, or alteration of existing control facilities or any parts of them, or the
178     adoption of other remedial measures to prevent, control, or abate water pollution; or
179          (iii) prohibiting any other violation of this chapter or rules made under this chapter;
180          (e) review plans, specifications, or other data relative to pollution control systems or
181     any part of the systems provided for in this chapter;
182          (f) issue construction or operating permits for the installation or modification of
183     treatment works or any parts of the treatment works;
184          (g) after public notice and opportunity for public hearing, issue, continue in effect,
185     renew, revoke, modify, or deny discharge permits under reasonable conditions the board may
186     prescribe to:
187          (i) control the management of sewage sludge; or
188          (ii) prevent or control the discharge of pollutants, including effluent limitations for the
189     discharge of wastes into the waters of the state;
190          (h) meet the requirements of federal law related to water pollution;

191          (i) under the direction of the executive director, represent the state in all matters
192     pertaining to water pollution, including interstate compacts and other similar agreements;
193          (j) collect and disseminate information relating to water pollution and the prevention,
194     control, and abatement of water pollution; [and]
195          (k) subject to Subsection [19-5-104(3)(h),] 19-5-104(3)(g), settle or compromise any
196     civil action initiated by the division to compel compliance with this chapter or the rules made
197     under this chapter[.]; and
198          (l) (i) approve, approve in part, approve with conditions, or deny, in writing, an
199     application for water reuse under Title 73, Chapter 3c, Wastewater Reuse Act; and
200          (ii) issue an operating permit for water reuse under Title 73, Chapter 3c, Wastewater
201     Reuse Act.
202          (3) The director may:
203          (a) employ full-time employees as necessary to carry out the provisions of this chapter;
204          (b) subject to the provisions of this chapter, authorize any employee or representative
205     of the department to enter, at reasonable times and upon reasonable notice, in or upon public or
206     private property for the purposes of inspecting and investigating conditions and plant records
207     concerning possible water pollution;
208          (c) encourage, participate in, or conduct studies, investigations, research, and
209     demonstrations relating to water pollution and causes of water pollution as necessary for the
210     discharge of duties assigned under this chapter, including the establishment of inventories of
211     pollution sources;
212          (d) collect and disseminate information relating to water pollution and the prevention,
213     control, and abatement of water pollution;
214          (e) subject to the provisions of this chapter, exercise all incidental powers necessary to
215     carry out the purposes of this chapter, including certification to any state or federal authorities
216     for tax purposes only if the construction, installation, or acquisition of any facility, land,
217     building, machinery, equipment, or any part of them conforms with this chapter;

218          (f) cooperate with any person in studies and research regarding water pollution and its
219     control, abatement, and prevention;
220          (g) encourage, participate in, or conduct studies, investigations, research, and
221     demonstrations relating to water pollution and causes of water pollution; or
222          (h) as authorized by the board and subject to the provisions of this chapter, act as
223     executive secretary of the board under the direction of the chairman of the board.
224          Section 3. Section 73-3c-102 is amended to read:
225          73-3c-102. Definitions.
226          As used in this chapter:
227          (1) "Director" means the director of the Division of Water Quality appointed under
228     Section 19-5-106.
229          (2) "Domestic wastewater" or "sewage" means:
230          (a) a combination of the liquid or water-carried wastes from:
231          (i) structures with installed plumbing facilities; and
232          (ii) industrial establishments; and
233          (b) any groundwater, surface water, and storm water that is present with the waste.
234          (3) "Industrial facility" means a factory, mill, plant, mine, refinery, warehouse, or
235     building or collection of buildings, including the land on which the facility is located, and the
236     machinery and equipment located at or within the facility used in connection with the operation
237     of the facility in an industrial business.
238          [(2)] (4) "POTW" means a publicly owned treatment works as defined by Section
239     19-5-102.
240          [(3)] (5) "Public agency" means a public agency as defined by Section 11-13-103 that:
241          (a) owns or operates a POTW;
242          (b) collects and transports domestic wastewater;
243          (c) holds legal title to a water right;
244          (d) is delegated the right to the beneficial use or reuse of water by the legal title holder

245     of the water right;
246          (e) is a water supplier; or
247          (f) sells wholesale or retail water.
248          [(4)] (6) "Return flow requirement" means return flow required under a water right.
249          [(5)] (7) (a) "Reuse authorization contract" means a contract or contracts among:
250          (i) a public agency proposing a water reuse project;
251          (ii) the owner or operator of a POTW that treats domestic wastewater proposed for use
252     in a reuse project;
253          (iii) the owner of a domestic wastewater collection or transportation system if the reuse
254     project will divert domestic wastewater directly from that entity's collection or transportation
255     system;
256          (iv) the legal title holder of the water right designated for use in the reuse project,
257     unless the legal title holder of the water right has delegated to another the right to the beneficial
258     use or reuse of the water;
259          (v) each water supplier not holding legal title to the water right designated for use in
260     the reuse project that sells or delivers water under the water right designated for use in the
261     reuse project;
262          (vi) each entity that will engage in the wholesale or retail sale of water from the water
263     reuse project; and
264          (vii) the retail water supplier retailing water that will be replaced by reuse water
265     supplied under the proposed reuse project.
266          (b) A reuse authorization contract shall:
267          (i) provide that a water supplier that is a party to the agreement consents to the use of
268     reuse water under each water right, in which the water supplier has an interest, that is identified
269     for use in the water reuse project; and
270          (ii) provide that any proposed water reuse project based on the contract shall be
271     consistent with the underlying water right.

272          [(6)] (8) "Reuse water" means domestic wastewater treated to a standard acceptable
273     under rules made by the Water Quality Board under Section 19-5-104.
274          [(7)] (9) (a) "Water reuse project" or "project" means a project for the reuse of
275     domestic wastewater that requires approval by the [Water Quality Board in accordance with
276     Section 19-5-104] director under Section 19-5-106 and the state engineer under Section
277     73-3c-302.
278          (b) "Water reuse project" or "project" does not include water reused at or by an
279     industrial facility for operating or processing purposes.
280          [(8)] (10) "Water right" means:
281          (a) a right to use water evidenced by any means identified in Section 73-1-10; or
282          (b) a right to use water under an approved application:
283          (i) to appropriate;
284          (ii) for a change of use; or
285          (iii) for the exchange of water.
286          [(9)] (11) "Water supplier" means an entity engaged in the delivery of water for
287     municipal purposes.
288          Section 4. Section 73-3c-103 is enacted to read:
289          73-3c-103. Water reuse projects and the Great Salt Lake -- Exception.
290          (1) Except as provided in Subsection (3) and notwithstanding the other provisions of
291     this chapter, the director and the state engineer may not approve a water reuse project if the
292     water related to the water reuse project would have otherwise been discharged into a tributary
293     of the Great Salt Lake.
294          (2) The state engineer may, by rule made in accordance with Title 63G, Chapter 3,
295     Utah Administrative Rulemaking Act, define what is a tributary of the Great Salt Lake.
296          (3) This section does not apply to:
297          (a) a water right owned by the federal government;
298          (b) a water reuse project to supply water to the Great Salt Lake;

299          (c) a water reuse project approved subject to a water replacement plan; or
300          (d) water reuse project applications filed with the director and the state engineer before
301     November 1, 2023, including any future renewals required under Section 19-5-108 for the
302     water reuse project that are submitted after November 1, 2023.
303          Section 5. Section 73-3c-301 is amended to read:
304          73-3c-301. Application to the director.
305          (1) (a) A public agency proposing a water reuse project shall apply to the [Water
306     Quality Board created by Section 19-1-106] director.
307          (b) Before applying for approval by the director of a water reuse project, the public
308     agency shall obtain conditional approval of the water reuse project by the state engineer under
309     Section 73-3c-302.
310          (2) The Water Quality Board may make rules, in accordance with Title 63G, Chapter 3,
311     Utah Administrative Rulemaking Act, governing the consideration and approval by the director
312     of water reuse applications and administration of water reuse construction and operating
313     permits.
314          (3) Rules [created] made under Subsection (2) shall require that water reuse meet
315     standards and requirements for water quality set by the Water Quality Board in accordance with
316     Title 19, Chapter 5, Water Quality Act.
317          (4) The [Water Quality Board] director shall issue a written decision for each water
318     reuse application.
319          (5) The director may approve a water reuse project only after the state engineer has
320     conditionally approved the water reuse project under Section 73-3c-302.
321          Section 6. Section 73-3c-302 is amended to read:
322          73-3c-302. Application to the state engineer.
323          (1) (a) A public agency proposing a water reuse project shall apply to the state
324     engineer.
325          (b) The state engineer's approval of a water reuse project application filed under this

326     section is conditioned on the approval of the director under Section 73-2c-301.
327          (2) An application for water reuse under Subsection (1) shall be made upon forms
328     furnished by the state engineer and shall include:
329          (a) the name of the applicant;
330          (b) a description of the underlying water right;
331          (c) an evaluation of the underlying water right's diversion, depletion, and return flow
332     requirements;
333          (d) the estimated quantity of water to be reused;
334          (e) the location of the POTW;
335          (f) the place, purpose, and extent of the proposed water reuse;
336          (g) an evaluation of depletion from the hydrologic system caused by the water reuse;
337     and
338          (h) any other information consistent with this chapter that is requested by the state
339     engineer.
340          (3) An application under Subsection (1) shall include a copy of a reuse authorization
341     contract for water reuse proposed by a public agency for any underlying water right not owned
342     by the public agency.
343          (4) In considering an application for water reuse, the state engineer shall comply with:
344          (a) Section 73-3-6;
345          (b) Section 73-3-7;
346          (c) Section 73-3-10; and
347          (d) Section 73-3-14.
348          (5) In determining whether a proposed water reuse is consistent with the underlying
349     water right, the state engineer shall conclude that a proposed water reuse is consistent with the
350     underlying water right if:
351          (a) the use of the reuse water does not enlarge the underlying water right; and
352          (b) any return flow requirement of the underlying water right is satisfied.

353          (6) (a) The state engineer shall approve a water reuse application if the state engineer
354     concludes that the proposed water reuse:
355          (i) is consistent with the underlying water right[.]; and
356          (ii) for an application in which the water would have otherwise been discharged into a
357     tributary of the Great Salt Lake, includes an adequate replacement plan provided by the
358     applicant.
359          (b) The state engineer may:
360          (i) deny an application [for water reuse] if the proposed water reuse is inconsistent with
361     the underlying water right; or
362          (ii) approve the application in part or with conditions to assure consistency with the
363     underlying water right.
364          (7) (a) For an application in which the water would have otherwise been discharged
365     into a tributary of the Great Salt Lake, the applicant shall submit a water replacement plan that
366     provides an equivalent amount of water to the Great Salt Lake.
367          (b) The state engineer may:
368          (i) approve the application in part or with conditions to assure equivalent replacement
369     of water to the Great Salt Lake; or
370          (ii) deny an application if the replacement plan cannot assure equivalent replacement of
371     water to the Great Salt Lake.
372          [(7)] (8) A public agency with an approved reuse application shall submit a report, as
373     directed by the state engineer, concerning the ongoing water reuse operation.
374          [(8)] (9) The state engineer may make rules in accordance with Title 63G, Chapter 3,
375     Utah Administrative Rulemaking Act, to implement the provisions of this chapter.
376          Section 7. Section 73-3c-304 is amended to read:
377          73-3c-304. Change in point of discharge.
378          (1) The point of discharge of water from a POTW may be changed if the [Water
379     Quality Board] director determines that a change is necessary:

380          (a) for treatment purposes;
381          (b) to enhance environmental quality;
382          (c) to protect public health, safety, or welfare; or
383          (d) to comply with:
384          (i) rules created by the Water Quality Board in accordance with Section 19-5-104; or
385          (ii) the POTW's discharge permit.
386          (2) Before changing the point of discharge from a POTW under Subsection (1), the
387     [Water Quality Board] director shall consult with the state engineer.
388          Section 8. Section 73-10g-402 is amended to read:
389          73-10g-402. Development of an integrated water assessment.
390          (1) The division shall develop and implement an integrated surface and ground water
391     assessment for the Great Salt Lake watershed.
392          (2) The integrated water assessment may in relationship with the Great Salt Lake
393     watershed:
394          (a) provide an assessment of the amounts and quality of available water resources;
395          (b) assess and forecast the quantity of water available for human, agricultural,
396     economic development, and environmental or instream uses, and ecological needs, including:
397          (i) current and future water supply and demand and the factors that influence
398     availability;
399          (ii) long-term trends in water availability and the causes of those trends; and
400          (iii) seasonal and decadal forecasts of availability;
401          (c) investigate the potential benefits of forest management and watershed restoration
402     in:
403          (i) improving snowpack retention;
404          (ii) increasing soil moisture;
405          (iii) sustaining river flows in low flow seasons;
406          (iv) mitigating wildfire risk; and

407          (v) improving water quality;
408          (d) coordinate an effort to:
409          (i) quantify the amount of water and water quality needed to sustain high priority
410     ecological sites in rivers, riparian, wetland, and lake systems; and
411          (ii) incorporate the water demand into the water supply and demand model;
412          (e) identify and evaluate best management practices that may be used to provide a
413     reliable water supply that:
414          (i) meet water quality objectives;
415          (ii) meet agriculture water objectives;
416          (iii) accommodate anticipated growth and economic development; and
417          (iv) provide adequate flow to sustain the Great Salt Lake, the Great Salt Lake's
418     wetlands, and other ecological functions in the Great Salt Lake's watershed; [and]
419          (f) investigate the potential impacts of water reuse projects on the Great Salt Lake; and
420          [(f)] (g) address other matters identified in the work plan.
421          (3) The integrated water assessment shall include a water budget for the Great Salt
422     Lake and the Great Salt Lake's associated wetlands, including water flows needed to maintain
423     different lake levels under different scenarios, taking into consideration water quality,
424     ecological needs, economic benefits, and public health benefits of the Great Salt Lake.
425          (4) In developing and implementing the integrated water assessment, the division shall:
426          (a) consult and coordinate with other state, local, regional, and federal governmental
427     entities, water users, and other stakeholders; and
428          (b) coordinate with, and where appropriate, consider or incorporate other planning
429     efforts, assessments, studies, or reports relevant to the Great Salt Lake watershed.