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7 LONG TITLE
8 General Description:
9 This bill addresses issues related to water.
10 Highlighted Provisions:
11 This bill:
12 ▸ provides for the application of planning and prioritization to water funds and
13 accounts;
14 ▸ modifies provisions related to the formulation of a state water plan;
15 ▸ amends provisions related to the Water Infrastructure Restricted Account;
16 ▸ authorizes rulemaking authority;
17 ▸ requires the Board of Water Resources to impose a water use fee;
18 ▸ requires the Board and Division of Water Resources to study the fee and
19 consolidation of funds and accounts;
20 ▸ creates the Water Infrastructure Fund;
21 ▸ modifies provisions of the Watershed Councils Act;
22 ▸ modifies provisions related to the Water Development Coordinating Council;
23 ▸ enacts planning and prioritization provisions, including:
24 • defining terms;
25 • requiring a unified water infrastructure plan;
26 • providing for ranking and prioritizing of water infrastructure projects;
27 • addressing duties; and
28 • requiring reserve studies and capital asset management; and
29 ▸ makes technical and conforming changes.
30 Money Appropriated in this Bill:
31 This bill appropriates in fiscal year 2025:
32 ▸ to Department of Natural Resources - Water Infrastructure Fund as a one-time
33 appropriation:
34 • from the General Fund, One-time, $5,000,000
35 Other Special Clauses:
36 None
37 Utah Code Sections Affected:
38 AMENDS:
39 73-10-1, as last amended by Laws of Utah 2020, Chapter 354
40 73-10-5, as last amended by Laws of Utah 1983, Chapter 320
41 73-10-6, as last amended by Laws of Utah 1988, Chapter 169
42 73-10-7, as Utah Code Annotated 1953
43 73-10-8, as last amended by Laws of Utah 2011, Chapter 342
44 73-10-22, as last amended by Laws of Utah 1995, Chapter 183
45 73-10-23, as last amended by Laws of Utah 2007, Chapter 306
46 73-10-24, as last amended by Laws of Utah 1988, Chapter 169
47 73-10-25, as last amended by Laws of Utah 2023, Chapter 261
48 73-10-25.1, as last amended by Laws of Utah 1996, Chapter 199
49 73-10-26, as last amended by Laws of Utah 2008, Chapter 267
50 73-10-27, as last amended by Laws of Utah 2012, Chapter 347
51 73-10-29, as last amended by Laws of Utah 1988, Chapter 169
52 73-10-30, as last amended by Laws of Utah 2011, Chapter 342
53 73-10-31, as enacted by Laws of Utah 1996, Chapter 199
54 73-10c-3, as last amended by Laws of Utah 2023, Chapter 238
55 73-10c-4, as last amended by Laws of Utah 2007, Chapter 142
56 73-10c-4.1, as last amended by Laws of Utah 2008, Chapter 382
57 73-10c-4.2, as last amended by Laws of Utah 2008, Chapter 382
58 73-10c-5, as last amended by Laws of Utah 2011, Chapter 342
59 73-10g-102, as enacted by Laws of Utah 2015, Chapter 458
60 73-10g-103, as last amended by Laws of Utah 2023, Chapter 261
61 73-10g-104, as last amended by Laws of Utah 2023, Chapter 261
62 73-10g-105, as last amended by Laws of Utah 2020, Chapter 28
63 73-10g-301, as enacted by Laws of Utah 2020, Chapter 309
64 73-10g-302, as enacted by Laws of Utah 2020, Chapter 309
65 73-10g-304, as last amended by Laws of Utah 2022, Chapter 65
66 73-10g-305, as enacted by Laws of Utah 2020, Chapter 309
67 73-10g-306, as enacted by Laws of Utah 2020, Chapter 309
68 73-20-8, as last amended by Laws of Utah 1988, Chapter 169
69 ENACTS:
70 73-10g-105.5, Utah Code Annotated 1953
71 73-10g-107, Utah Code Annotated 1953
72 73-10g-108, Utah Code Annotated 1953
73 73-10g-601, Utah Code Annotated 1953
74 73-10g-602, Utah Code Annotated 1953
75 73-10g-603, Utah Code Annotated 1953
76 73-10g-604, Utah Code Annotated 1953
77 73-10g-605, Utah Code Annotated 1953
78 REPEALS AND REENACTS:
79 73-10-15, as last amended by Laws of Utah 1967, Chapter 176
80 REPEALS:
81 73-10-17, as enacted by Laws of Utah 1963, Chapter 178
82
83 Be it enacted by the Legislature of the state of Utah:
84 Section 1. Section 73-10-1 is amended to read:
85 73-10-1. State's policy -- Creation of revolving fund -- General construction of
86 chapter.
87 (1) (a) The Legislature [
88 (i) by Section 73-1-1[
89 whether above or under the ground, are hereby declared to be the property of the public, subject
90 to all existing rights to the use thereof";
91 (ii) by Section 73-1-3[
92 basis, the measure and the limit of all rights to the use of water in this state"; and
93 (iii) by Section 17B-2a-1002 that the policy of the state is, to " obtain from water in the
94 state the highest duty for domestic uses and irrigation of lands in the state within the terms of
95 applicable interstate compacts and other law."
96 (b) The Legislature by this chapter reiterates and reaffirms such declaration of the
97 public policy of the state [
98 (2) It is further declared to be the policy of this chapter and of the state [
99 the [
100 (a) that by construction of projects based upon sound engineering the waters within the
101 various counties of the state [
102 beneficial use by 25% to 100%;
103 (b) that because of well-known conditions such as low prices and lack of market for
104 farm products, particularly the inefficiency of water supply because of lack of late season water
105 and consequent lack of financial strength, water users in small communities have been unable
106 to build projects that would provide full conservation and beneficial use for the limited water
107 supply in this semiarid land;
108 (c) that water, as the property of the public, should be so managed by the public that it
109 can be put to the highest use for public benefit;
110 (d) that Congress of the United States has provided for the building of larger water
111 conservation projects throughout the semiarid states, payment of the capital costs without
112 interest to be made by the water users upon the basis of a fair portion of crop returns;
113 (e) that the Congress of the United States has established in the department of interior
114 and in the department of agriculture, various agencies having authority to develop, protect, and
115 aid in putting to beneficial use the land and water resources of the United States and to
116 cooperate with state agencies having similar authority;
117 (f) that the interests of the state [
118 cooperation between all state and federal agencies to the end that the underground waters and
119 waters of the small streams of the state, and the lands thereunder, can be made to yield
120 abundantly and increase the income and well-being of the citizens of the state; and
121 (g) that it appears to be sound public policy for the state [
122 revolving fund, to be increased at each legislative session, to the end that every mountain
123 stream and every water resource within the state can be made to render the highest beneficial
124 service, such fund to be so administered that [
125 (i) except upon expert engineering, financial, and geological approval[
126 (ii) for water infrastructure projects, subject to prioritization under Chapter 10g, Part 6,
127 Planning and Prioritization.
128 (3) [
129 out and put into force and effect the purposes and policies as [
130 section.
131 Section 2. Section 73-10-5 is amended to read:
132 73-10-5. Selection of project by board -- Preparation of plans and estimate of cost
133 -- Contracts by board.
134 [
135 (1) The Board of Water Resources shall cause plans and cost estimates to be prepared
136 for a project when the project to be constructed:
137 (a) is funded with money made available from the funds created by Section 73-10-8
138 [
139 (b) is prioritized under Chapter 10g, Part 6, Planning and Prioritization; and
140 (c) in the opinion of the Board of Water Resources, will result in the wise use of the
141 water resources of this state for the best interests of the citizens of the state[
142
143 (2) (a) The Board of Water Resources shall refer the plans and cost estimates [
144
145 shall determine whether [
146 (b) If the director of the Division of Finance approves the project so far as the
147 availability of [
148 Resources shall then enter into a contract or contracts for the construction of the project. [
149 (c) The contracts [
150 state until approved by the director of the Division of Finance from the standpoint of whether
151 [
152 (i) the cost of the work is reasonable; and [
153 (ii) the contract has been entered into under the terms and conditions most
154 advantageous to the state.
155 Section 3. Section 73-10-6 is amended to read:
156 73-10-6. Making water available to citizens of state -- Assessment of charges
157 against water users -- Water Resources Construction Fund.
158 (1) [
159 Water Resources may make available for the use of the citizens of the state who are, in [
160 Board of Water Resources' opinion, best able to [
161 power [
162 may enter into contracts for the use of [
163 organizations composed of citizens of the state [
164 (2) (a) The [
165 such water and power such charges as, in the opinion of the [
166 are necessary and reasonable for the maintenance of the project and return to the state the
167 actual costs of the project over [
168 Water Resources may consider advisable.
169 (b) Any amount collected as charges over and above the amount necessary to maintain
170 any particular project shall become part of the Water Resources Construction Fund.
171 Section 4. Section 73-10-7 is amended to read:
172 73-10-7. Title to projects -- Contractual powers of board.
173 (1) [
174 projects constructed with funds made available by Section 73-10-8 [
175 this [
176 (2) The [
177 [
178 maintenance and continued operation of [
179 Section 5. Section 73-10-8 is amended to read:
180 73-10-8. Water Resources Construction Fund -- Creation and contents of fund --
181 Use -- Investigation Account created -- Interest -- Retainage -- Loans and grants for dam
182 safety work.
183 (1) There is created the Water Resources Construction Fund, which consists of:
184 (a) money appropriated or otherwise made available to it by the Legislature;
185 (b) money from the sale or management of the 500,000 acres of land selected for the
186 establishment of reservoirs under Section 12 of the Utah Enabling Act;
187 (c) charges assessed against water and power users pursuant to Section 73-10-6; and
188 (d) interest accrued pursuant to Subsection (5).
189 (2) [
190 of Water Resources may authorize the use of money in the fund for the following purposes:
191 (a) to develop water conservation projects, including paying the costs of construction,
192 engineering, investigation, inspection, and other related expenses;
193 (b) to provide loans and grants to dam owners to conduct dam safety studies;
194 (c) to provide loans and grants to dam owners:
195 (i) to upgrade dams in conformance with the minimum standards established by the
196 state engineer in rules; or
197 (ii) for nonstructural solutions developed to meet minimum standards or lower hazard
198 ratings that are approved by the state engineer, including the purchase of habitable structures,
199 purchase of flood easements, and installation of early warning systems; or
200 (d) as otherwise provided by law.
201 (3) The [
202 of investigation, engineering, and inspection out of the first money to be paid under a contract
203 for the construction of a water project. The money repaid shall be deposited into a subaccount
204 within the Water Resources Construction Fund known as the [
205 "Investigation Account," to be used by the [
206 of making investigations for the development and use of the water resources of the state.
207 (4) Contributions of money, property, or equipment may be received from [
208 political subdivision of the state, federal agency, water users' association, person, or
209 corporation for use in making investigations, constructing projects, or otherwise carrying out
210 the purposes of this section.
211 (5) [
212 invested by the state treasurer with interest accruing to the Water Resources Construction
213 Fund.
214 (6) If any payment on a contract with a private contractor to construct a project funded
215 by the Water Resources Construction Fund is retained or withheld, [
216 retained or withheld and released as provided in Section 13-8-5.
217 (7) Loans to dam owners for dam safety studies and to upgrade dams in conformance
218 with minimum standards shall be secured by taking water rights associated with the dam.
219 (8) The following restrictions apply to [
220 safety study:
221 (a) only a nonprofit mutual irrigation company or a water users association is eligible
222 to receive a grant;
223 (b) the dam safety study shall be required by the state engineer pursuant to Section
224 73-5a-503; and
225 (c) the amount of any grant shall be limited to up to 50% of the costs of the dam safety
226 study.
227 (9) (a) [
228 Board of Water Resources may provide grants to mutual irrigation companies and water users
229 associations to upgrade dams in conformance with minimum standards of the state engineer.
230 [
231 of a mutual irrigation company or water users association in conformance with the minimum
232 standards shall be sufficient to pay for 80% of the costs to upgrade the dam.
233 (b) (i) Pursuant to guidelines specified in Subsection (9)(b)(ii) and subject to Chapter
234 10g, Part 6, Planning and Prioritization, the [
235 loans or grants, or both, to entities other than mutual irrigation companies and water users
236 associations to upgrade dams in conformance with minimum standards of the state engineer.
237 (ii) In determining the type of financial assistance to be provided to an entity other than
238 a mutual irrigation company or water users association, the [
239 shall consider the dam owner's ability to pay and may consider other factors including:
240 (A) the degree of hazard;
241 (B) the threat to public safety;
242 (C) the state engineer's priority list of dams;
243 (D) the cost effectiveness of the restoration;
244 (E) the number of potential and actual applications for financial assistance; and
245 (F) the funds available.
246 (10) The amount of money in the fund that may be used for grants for dam safety
247 studies shall be limited to the amount of money appropriated to the fund for that purpose.
248 (11) [
249 of Water Resources shall consult with the state engineer in establishing a priority list of dams
250 to be upgraded with money in the fund.
251 (12) A dam owner who has initiated or completed construction approved by the state
252 engineer to upgrade the dam in conformance with minimum standards may apply for a grant or
253 loan from the [
254 expenditures.
255 Section 6. Section 73-10-15 is repealed and reenacted to read:
256 73-10-15. State water plan -- Entities to cooperate in formulation of plan.
257 (1) As used in this section:
258 (a) "Division" means the Division of Water Resources created under Section 73-10-18.
259 (b) "State water plan" means a comprehensive framework that identifies available
260 water resources, recommends strategies for water resource optimization, and guides efforts to
261 manage available water supplies.
262 (2) (a) Beginning on or before December 31, 2026, the division shall publish a state
263 water plan that:
264 (i) is consistent with the state water policy established in Section 73-1-21;
265 (ii) references the state unified water infrastructure plan created by the Water
266 Development Coordinating Council under Section 73-10g-602;
267 (iii) fosters communities and businesses;
268 (iv) facilitates local agriculture;
269 (v) addresses outdoor recreation; and
270 (vi) provides for a healthy environment.
271 (b) The state water plan may include recommendations for policy, fiscal support,
272 implementation of findings by governmental and private institutions, and public engagement.
273 (c) In formulating the state water plan, the division shall seek input from a wide range
274 of stakeholders, including representatives from agriculture and other water dependent
275 businesses, conservationists, recreation interests, government entities, academia, and Utah
276 residents in general.
277 (d) The division shall update the state water plan no less frequently than every ten
278 years.
279 (3) The following shall cooperate with the division in the formulation of the state water
280 plan:
281 (a) the following state entities:
282 (i) the Governor's Office of Planning and Budget;
283 (ii) the Department of Agriculture and Food;
284 (iii) within the Department of Natural Resources:
285 (A) the Division of Water Rights;
286 (B) the Utah Geological Survey;
287 (C) the Division of Wildlife Resources;
288 (D) the Division of Forestry, Fire, and State Lands; and
289 (E) the Public Lands Policy Coordinating Office;
290 (iv) within the Department of Environmental Quality:
291 (A) the Division of Drinking Water; and
292 (B) the Division of Water Quality;
293 (v) the Office of the Great Salt Lake Commissioner; and
294 (vi) the Colorado River Authority of Utah;
295 (b) the following local entities:
296 (i) a water conservancy district created under Title 17B, Chapter 2a, Part 10, Water
297 Conservancy District Act; and
298 (ii) a local watershed council created under Chapter 10g, Part 3, Watershed Councils
299 Act; and
300 (c) any other state or local entity that the division considers necessary.
301 (4) A state entity identified in Subsection (3)(a) shall designate an individual to assist
302 and advise the division in the formulation of a state water plan.
303 (5) The division shall use information, including water resources data, that has been or
304 will be assembled by state entities, the United States government, various colleges and
305 universities of the state, or any other source that can profitably contribute to the development of
306 the state water plan.
307 (6) In accordance with this section, an entity described in Subsection (3) shall
308 cooperate with the division unless the cooperation would directly impair the authority granted
309 to the entity by statute.
310 (7) The Utah Watersheds Council shall advise the division concerning state water
311 planning activities.
312 Section 7. Section 73-10-22 is amended to read:
313 73-10-22. Water Resources Cities Water Loan Fund -- Annual appropriation --
314 Interest.
315 (1) Beginning with the fiscal year ending June 30, 1978, the Legislature shall provide
316 an annual appropriation from the General Fund from liquor control profits to the Board of
317 Water Resources to make the loans provided for in Sections 73-10-20, 73-10-21, and 73-10-23
318 if prioritized under Chapter 10g, Part 6, Planning and Prioritization. The money appropriated
319 by the Legislature shall be deposited in a fund known as the "Water Resources Cities Water
320 Loan Fund."
321 (2) [
322 shall be invested by the state treasurer with interest accruing to the Water Resources Cities
323 Water Loan Fund.
324 Section 8. Section 73-10-23 is amended to read:
325 73-10-23. Loans for water systems -- Board of Water Resources authority --
326 Procedure.
327 (1) The Board of Water Resources [
328 metropolitan water districts, water conservancy districts, improvement districts, special
329 improvement districts, or special service districts within the state for the acquisition or
330 construction of new or existing water systems or the improvement or extension of those
331 systems from [
332 Chapter 10g, Part 6, Planning and Prioritization.
333 (2) (a) Cities, towns, or districts [
334 an application for [
335 (b) The application may request a loan to cover all or part of the cost of an eligible
336 project.
337 (c) Requests for loans shall be submitted in a form and shall include information as the
338 [
339 (3) (a) The [
340 eligibility for loans [
341 Board of Water Resources shall require compliance with Section 73-10g-605 to be eligible for
342 a loan.
343 (b) [
344 fund and be available for additional loans under the administration of the [
345 Water Resources.
346 [
347 [
348
349 [
350 [
351 [
352 [
353 [
354 [
355 [
356 [
357 [
358
359 [
360 [
361
362 [
363 the applicant stating the reasons for the rejection.
364 (5) The Board of Water Resources shall review the plans and specifications for the
365 project [
366 money on assurances the [
367 the proceeds of the loan will be used to pay the cost of the project and that the project will be
368 completed.
369 (6) Any loan shall specify the terms for repayment and may be evidenced by general
370 obligation bonds, revenue bonds, special assessment bonds, or other bonds or obligations
371 legally issued by the appropriate city, town, metropolitan water district, water conservancy
372 district, improvement district, special improvement district, or special service district and
373 purchased by the [
374 that exists at the time of the loan.
375 (7) (a) Upon approval of an application, the [
376 advise the applicant and may provide [
377 eligible projects.
378 (b) Costs of an eligible project may include all costs of acquisition and construction as
379 well as costs incurred for preliminary planning to determine the economic and engineering
380 feasibility of a proposed project, the engineering, architectural, legal, fiscal, and economic
381 investigations and studies, surveys, designs, plans, working drawings, specifications,
382 procedures, and other action necessary to the project and its financing; the cost of erection,
383 building, acquisition, modification, improvement, or extension of water system facilities and
384 the inspection and supervision of the construction of such facilities.
385 (8) [
386 receives federal financial assistance, other than federal loans [
387 applicant.
388 Section 9. Section 73-10-24 is amended to read:
389 73-10-24. Water Resources Conservation and Development Fund created.
390 There is created a Water Resources Conservation and Development Fund to further
391 enhance the state's ability to carry out the policy described in Section 73-10-1. The fund shall
392 be administered by the Board of Water Resources and is subject to Chapter 10g, Part 6,
393 Planning and Prioritization. The fund is a revolving fund established for the construction,
394 operation, and maintenance of projects considered by the [
395 be outside the scope of financing by the Water Resources Construction Fund, as created by
396 Section 73-10-8, and shall include[
397 Section 10. Section 73-10-25 is amended to read:
398 73-10-25. Contents of fund -- Investment -- Contributions.
399 (1) The Water Resources Conservation and Development Fund consists of:
400 (a) money appropriated to it by the Legislature;
401 (b) money received from the sale of project water and power, less operating and
402 maintenance costs;
403 (c) annual payments on contracts for projects constructed under Section 73-10-24 or
404 the State Water Conservation Program; and
405 (d) other money or tax revenues designated by the Legislature to be credited to the
406 Water Resources Conservation and Development Fund.
407 (2) Money deposited into the Water Resources Conservation and Development Fund
408 shall be invested by the state treasurer with interest accruing to the Water Resources
409 Conservation and Development Fund, except for payments, if any, necessary to comply with
410 Section 148(f), Internal Revenue Code of 1986.
411 (3) A contribution of money, property, or equipment may be received from a political
412 subdivision of the state, federal agency, water users' association, or person for use in carrying
413 out the purposes of Section 73-10-24.
414 (4) Notwithstanding Subsection (1), the division shall transfer a payment on a loan
415 issued subject to Chapter 10g, Part 6, Planning and Prioritization, to the Water Infrastructure
416 Restricted Account, created in Section 73-10g-103, if the loan:
417 (a) is issued from the Water Resources Conservation and Development Fund on or
418 after July 1, 2023; and
419 (b) relates to a project described in Subsection 73-10g-104(4).
420 Section 11. Section 73-10-25.1 is amended to read:
421 73-10-25.1. Credit enhancement and interest buy-down agreements.
422 (1) The Board of Water Resources may enter into credit enhancement agreements with
423 political subdivisions containing terms and provisions that the [
424 Resources determines will reasonably improve the security for or marketability of water project
425 obligations financed using the Water Resources Cities Water Loan Fund created in Section
426 73-10-22 or the Water Resources Conservation and Development Fund created in Section
427 73-10-24. Credit enhancement agreements may include provisions for loans to political
428 subdivisions to pay the costs of obtaining letters of credit or other forms of insurance or
429 security to provide security for water project obligations.
430 (2) The Board of Water Resources may make loans or grants from the Water Resources
431 Cities Water Loan Fund or the Water Resources Conservation and Development Fund to
432 political subdivisions for interest buy-down agreements for water development projects subject
433 to Chapter 10g, Part 6, Planning and Prioritization.
434 Section 12. Section 73-10-26 is amended to read:
435 73-10-26. Definitions -- Construction of a project by board -- Ownership and
436 operation -- Transfer of a water right -- Purchase of a bond from an Indian tribe.
437 (1) As used in this section:
438 (a) "Board" means the Board of Water Resources created in Section 73-10-1.5.
439 (b) "Bond" means:
440 (i) a written obligation to repay borrowed money, whether denominated a bond, note,
441 warrant, certificate of indebtedness, or otherwise; and
442 (ii) a lease agreement, installment purchase agreement, or other agreement that
443 includes an obligation to pay money.
444 (c) "Division" means the Division of Water Resources created in Section 73-10-18.
445 (d) "Project" means a facility, works, or other real or personal property that:
446 (i) conserves or develops the water or hydroelectric power resources of the state; or
447 (ii) controls flooding.
448 (2) (a) The board, through the division, may construct a project.
449 (b) An electric public utility or a municipality of the state may construct an electrical
450 facility incidental to a project.
451 (c) If the state constructs the electrical facility, the state must first offer the power and
452 energy derived from the hydroelectric generating project to an electric public utility or
453 municipality in the state for distribution to electric consumers.
454 (3) (a) The board, through the division, may consider a flood control project in the
455 same manner and apply the same procedures and rules as the board would consider or apply to
456 another project within its statutory authority.
457 (b) If funds controlled by the board are to be used for the flood control project, the
458 planning of the project is subject to the review of the board.
459 (c) If the flood control project is authorized for construction, the plans, specifications,
460 and construction supervision shall be undertaken as prescribed by the board.
461 (4) The board may enter into an agreement for the construction or financing of a
462 project financed with money from the Water Resources Conservation and Development Fund
463 with another state, the federal government, a political subdivision of the state, an Indian tribe,
464 or a private corporation.
465 (5) (a) (i) Except as provided by Subsections (5)(a)(ii) and (b), title to a project,
466 including a water right, constructed or acquired with money from the Water Resources
467 Conservation and Development Fund is vested in the state.
468 (ii) The board may take a bond legally issued by the project sponsor in lieu of or in
469 addition to taking title to the project and water right.
470 (b) If an Indian tribe sponsors a project, the board may take a bond legally issued by the
471 tribe, to the extent that federal law allows the tribe to issue a bond, in lieu of taking title to the
472 project and water right, if the tribe:
473 (i) waives the defense of sovereign immunity regarding the bond issue in an action
474 arising out of the issuance or default under the bond; and
475 (ii) agrees in writing that it will not challenge state court jurisdiction over any litigation
476 resulting from default on its obligation in the transaction.
477 (c) Before entering into an agreement with or purchasing a bond from a tribe, the board
478 shall:
479 (i) require that the tribe obtain the written approval of the Secretary of the United
480 States Department of the Interior or the secretary's designee to all aspects of the agreement or
481 bond;
482 (ii) obtain a legal opinion from a recognized bond counsel certifying:
483 (A) that the tribe has legal authority to:
484 (I) enter into the agreement; or
485 (II) issue the bond;
486 (B) that the pledge of an asset or revenue by the tribe as security for the payments
487 under the agreement or bond is a valid and legally enforceable pledge; and
488 (C) that the agreement or bond may be enforced in a court of general jurisdiction in the
489 state; and
490 (iii) determine whether it has sufficient legal recourse against the tribe and against a
491 security pledged by the tribe in the event of default.
492 (6) (a) The board may own and operate a project if:
493 (i) the project is consistent with the plan adopted by the board; and
494 (ii) in the opinion of the board the ownership and operation of the project by the board
495 is in the best interest of the state.
496 (b) In the ownership and operation of a project referred to in Subsection (6)(a), the
497 board shall use a water right held in its name under authority of Section 73-10-19.
498 (c) (i) The board may enter into a contract with another state, the federal government, a
499 political subdivision of the state, an Indian tribe, or a private corporation for operation,
500 maintenance, and administration of the project.
501 (ii) The board may pay the contracting agency a reasonable sum for operation,
502 maintenance, and administration of the project.
503 (7) (a) The board may also:
504 (i) enter into an agreement in which title to a project is conveyed to a cooperating
505 project sponsor after charges assessed against the project have been paid to the state in
506 accordance with the terms of the construction agreement or amendment to the agreement;
507 (ii) make the water and power available to the state's citizens who are, in the board's
508 opinion, best able to use the water and power:
509 (A) [
510 (B) to which the state has title;
511 (iii) enter into a contract for the use of the water and power with an individual or an
512 organization composed of the state's citizens; and
513 (iv) assess a reasonable fee against a person using water and power from a project.
514 (b) The amount collected over the amount to be returned to the state for payment of the
515 principal, interest, and maintenance of the project shall be deposited in the Water Resources
516 Conservation and Development Fund as established by Section 73-10-24.
517 (8) The board shall retain ownership of a water right used for a project owned and
518 operated by the board unless:
519 (a) the water right originally held by a cooperating project sponsor is conveyed to the
520 project sponsor upon payment to the state of charges assessed against the project in accordance
521 with the terms of the construction agreement or an amendment to the agreement; or
522 (b) the board transfers an unperfected water right held by the board that is not being
523 used in a state-owned project to a political subdivision of the state, an agency of the federal
524 government, or a nonprofit water company.
525 (9) A transfer of the board's water right shall be made to the entity that is best able to
526 use the water right for the benefit of the state's citizens.
527 Section 13. Section 73-10-27 is amended to read:
528 73-10-27. Definitions -- Bids and contracts -- Retainage.
529 (1) As used in this section:;
530 (a) "Board" means the Board of Water Resources created in Section 73-10-1.5.
531 (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for
532 construction of the contemplated project.
533 (c) "Lowest responsible bidder" means a licensed contractor:
534 (i) who:
535 (A) submits the lowest bid; and
536 (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and
537 63G-6a-1103; and
538 (ii) whose bid:
539 (A) is in compliance with the invitation for a bid; and
540 (B) meets the plans and specifications.
541 [
542
543 [
544
545 [
546 [
547 [
548
549 [
550
551 [
552
553 [
554
555 [
556
557
558 [
559 [
560 [
561 [
562 project constructed by the board, the board shall:
563 (a) based on a competitive bid, award a contract for:
564 (i) a flood control project:
565 (A) involving a city or county; and
566 (B) costing in excess of $35,000;
567 (ii) the construction of a storage reservoir in excess of 100 acre-feet; or
568 (iii) the construction of a hydroelectric generating facility;
569 (b) publish an advertisement for a competitive bid:
570 (i) at least once a week for three consecutive weeks in a newspaper with general
571 circulation in the state, with the last date of publication appearing at least five days before the
572 schedule bid opening; and
573 (ii) indicating that the board:
574 (A) will award the contract to the lowest responsible bidder; and
575 (B) reserves the right to reject any and all bids;
576 (c) readvertise the project in the manner specified in Subsection [
577 board rejects all of the initial bids on the project; and
578 (d) keep an accurate record of all facts and representations relied upon in preparing the
579 board's estimated cost for a project that is subject to the competitive bidding requirements of
580 this section.
581 [
582 project in accordance with Subsection [
583 in accordance with the plan and specifications used to calculate the estimated cost of the
584 project.
585 [
586 project under this section is retained or withheld, it shall be retained or withheld and released
587 as provided in Section 13-8-5.
588 Section 14. Section 73-10-29 is amended to read:
589 73-10-29. Additional amounts allocated -- Repayment.
590 (1) The [
591 and Prioritization, and in addition to the amount allocated to a project to cover the actual cost
592 of construction, may:
593 (a) allocate to the project constructed by [
594 contract or otherwise, [
595 Resources for investigating, engineering, inspection, and other expenses[
596 (b) provide for the repayment of the [
597 repayable from the project under the contract for its construction[
598 (2) Money repaid under Subsection (1) shall be accounted for within the Water
599 Resources Construction Fund, to be used by the [
600 purpose of making investigations for the development of the water resources of the state.
601 Section 15. Section 73-10-30 is amended to read:
602 73-10-30. Construction in conjunction with Water Resources Construction Fund
603 -- Supplemental financing.
604 (1) Projects authorized under this chapter may be constructed in participation with
605 money from the Water Resources Construction Fund when authorized by the [
606 Water Resources and prioritized under Chapter 10g, Part 6, Planning and Prioritization.
607 (2) Projects specified by the Legislature to be financed by general obligation bonds of
608 the state may receive supplemental financing from the Water Resources Conservation and
609 Development Fund when needed and money is available.
610 Section 16. Section 73-10-31 is amended to read:
611 73-10-31. Allocation of funds for credit enhancement and interest buy-down
612 agreements.
613 (1) [
614 combined expenditures from the Water Resources Cities Water Loan Fund and Water
615 Resources Conservation and Development Fund authorized by the Board of Water Resources
616 each year, at least 10% shall be allocated for credit enhancement and interest buy-down
617 agreements.
618 (2) The requirement specified in Subsection (1) shall apply only so long as sales and
619 use tax is transferred to the Water Resources Conservation and Development Fund as provided
620 in Section 59-12-103.
621 Section 17. Section 73-10c-3 is amended to read:
622 73-10c-3. Water Development Coordinating Council created -- Purpose --
623 Members.
624 (1) (a) There is created within the Department of Natural Resources a Water
625 Development Coordinating Council. The council is comprised of:
626 (i) the director of the Division of Water Resources;
627 (ii) the executive secretary of the Water Quality Board;
628 (iii) the executive secretary of the Drinking Water Board;
629 (iv) the director of the Housing and Community Development Division or the director's
630 designee;
631 (v) the state treasurer or the state treasurer's designee; [
632 (vi) the commissioner of the Department of Agriculture and Food, or the
633 commissioner's designee[
634 (vii) an individual appointed by the governor with the advice and consent of the Senate
635 who is:
636 (A) familiar with water infrastructure projects, including planning, financing,
637 construction, or operation; and
638 (B) employed by a water conservancy district that is subject to the asset management
639 criteria of Section 17B-2a-1010.
640 (b) The council shall choose a chair and vice chair from among the council's own
641 members, except the chair and vice chair may not be from the same department.
642 (c) A member may not receive compensation or benefits for the member's service, but
643 may receive per diem and travel expenses in accordance with:
644 (i) Section 63A-3-106;
645 (ii) Section 63A-3-107; and
646 (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
647 63A-3-107.
648 (2) The purposes of the council are to:
649 (a) coordinate the use and application of the [
650 give financial assistance to political subdivisions of this state so as to promote the
651 conservation, development, treatment, restoration, and protection of the waters of this state;
652 (b) promote the coordination of the financial assistance programs administered by the
653 state and the use of the financing alternative most economically advantageous to the state and
654 its political subdivisions;
655 (c) promote the consideration by the Board of Water Resources, Drinking Water
656 Board, and Water Quality Board of regional solutions to the water and wastewater needs of
657 individual political subdivisions of this state;
658 (d) assess the adequacy and needs of the state and its political subdivisions with respect
659 to water-related infrastructures and advise the governor and the Legislature on those funding
660 needs; [
661 (e) conduct reviews and reports on water-related infrastructure issues as directed by
662 statute[
663 (f) engage in planning and prioritization of water infrastructure projects in accordance
664 with Chapter 10g, Part 6, Planning and Prioritization; and
665 (g) administer the Water Infrastructure Fund in accordance with Section 73-10g-108.
666 Section 18. Section 73-10c-4 is amended to read:
667 73-10c-4. Credit enhancement and interest buy-down agreements -- Loans or
668 grants -- Hardship grants.
669 (1) [
670 state, the Water Quality Board and the Drinking Water Board may each enter into credit
671 enhancement agreements with political subdivisions containing terms and provisions that the
672 acting board determines will reasonably improve the security for or marketability of drinking
673 water and wastewater project obligations, including any of the following:
674 (a) a term providing security for drinking water and wastewater project obligations, as
675 provided in Subsection 73-10c-6(2)(b), by agreeing to purchase the drinking water or
676 wastewater project obligations of, or to make loans to, political subdivisions from a subaccount
677 of the security fund for the purpose of preventing defaults in the payment of principal and
678 interest on drinking water and wastewater project obligations;
679 (b) a term making loans to political subdivisions to pay the cost of obtaining:
680 (i) letters of credit from banks, savings and loan institutions, insurance companies, or
681 other financial institutions;
682 (ii) municipal bond insurance; or
683 (iii) other forms of insurance or security to provide security for drinking water and
684 wastewater project obligations; and
685 (c) a term providing other methods and assistance to political subdivisions that are
686 reasonable and proper to enhance the marketability of or security for drinking water and
687 wastewater project obligations.
688 (2) (a) The Drinking Water Board and the Water Quality Board may each make loans
689 from a security fund subaccount to political subdivisions to finance all or part of drinking water
690 and wastewater project costs by following the procedures and requirements of Sections
691 73-10c-4.1 and 73-10c-4.2.
692 (b) These loans may only be made after credit enhancement agreements, interest
693 buy-down agreements, and all other financing alternatives have been evaluated by the acting
694 board and the acting board determines those options are unavailable or unreasonably expensive
695 for the subdivision requesting assistance.
696 (c) Loans may be made from the security fund subaccount at interest rates determined
697 by the acting board.
698 (3) (a) The Drinking Water Board and the Water Quality Board may each make loans
699 or grants from the security fund to political subdivisions for interest buy-down agreements for
700 drinking water or wastewater project obligations.
701 (b) The Drinking Water Board may make loans or grants from the security account to
702 political subdivisions for planning for drinking water projects.
703 (4) (a) Of the total amount of money annually available to the Drinking Water Board
704 and Water Quality Board for financial assistance to political subdivisions, at least 10% shall be
705 allocated by each board for credit enhancement and interest buy-down agreements.
706 (b) The requirement specified in Subsection (4)(a) shall apply only so long as sales and
707 use tax is transferred to the Utah Wastewater Loan Program Subaccount and Drinking Water
708 Loan Program Subaccount as provided in Section 59-12-103.
709 (5) To the extent money is available in the hardship grant subaccounts of the security
710 fund, the Drinking Water Board and the Water Quality Board may each make grants to political
711 subdivisions that meet the drinking water or wastewater project loan considerations
712 respectively, but whose projects are determined by the granting board to not be economically
713 feasible unless grant assistance is provided.
714 (6) The Drinking Water Board and Water Quality [
715 transfer money out of their respective hardship grant subaccounts of the security fund to their
716 respective loan program subaccounts.
717 (7) The Water Quality Board may make a grant from the Hardship Grant Program for
718 Wastewater Projects Subaccount created in Subsection 73-10c-5(2)(c) for a nonpoint source
719 project as provided by Section 73-10c-4.5 if:
720 (a) money is available in the subaccount; and
721 (b) the Water Quality Board determines that the project would not be economically
722 feasible unless a grant were made.
723 Section 19. Section 73-10c-4.1 is amended to read:
724 73-10c-4.1. Wastewater projects -- Loan criteria and requirements -- Process for
725 approval.
726 (1) The Water Quality Board shall review the plans and specifications for a wastewater
727 project before approval of any loan and may condition approval on the availability of loan
728 funds and on assurances that the Water Quality Board considers necessary to ensure that loan
729 funds are used to pay the wastewater project costs and that the wastewater project is completed.
730 (2) (a) Each loan shall specify the terms for repayment, with the term, interest rate or
731 rates, including a variable rate, and security as determined by the Water Quality Board.
732 (b) The loan may be evidenced by general obligation or revenue bonds or other
733 obligations of the political subdivision.
734 (c) Loan payments made by a political subdivision shall be deposited in the Water
735 Quality Security Subaccount as described in Section 73-10c-5.
736 (d) The loans are subject to [
737 Consolidation Act.
738 (3) [
739 project loan, the Water Quality Board shall consider:
740 (a) the ability of the political subdivision to obtain money for the wastewater project
741 from other sources or to finance the project from its own resources;
742 (b) the ability of the political subdivision to repay the loan;
743 (c) whether or not a good faith effort to secure all or part of the services needed from
744 the private sector of the economy has been made; and
745 (d) whether or not the wastewater project:
746 (i) meets a critical local or state need;
747 (ii) is cost effective;
748 (iii) will protect against present or potential health hazards;
749 (iv) is needed to comply with minimum standards of the federal Water Pollution
750 Control Act, Title 33, Chapter 26, United States Code, or any similar or successor statute;
751 (v) is needed to comply with the minimum standards of Title 19, Chapter 5, Water
752 Quality Act, or any similar or successor statute;
753 (vi) is designed to reduce the pollution of the waters of this state; and
754 (vii) meets any other consideration considered necessary by the Water Quality Board.
755 (4) In determining the cost effectiveness of a wastewater project the Water Quality
756 Board shall:
757 (a) require the preparation of a cost-effective analysis of feasible wastewater treatment
758 or conveyance alternatives capable of meeting state and federal water quality and public health
759 requirements;
760 (b) consider monetary costs, including the present worth or equivalent annual value of
761 all capital costs and operation, maintenance, and replacement costs; and
762 (c) ensure that the alternative selected is the most economical means of meeting
763 applicable state and federal wastewater and water quality or public health requirements over
764 the useful life of the facility while recognizing environmental and other nonmonetary
765 considerations.
766 (5) A loan may not be made for a wastewater project that is not in the public interest as
767 determined by the Water Quality Board.
768 Section 20. Section 73-10c-4.2 is amended to read:
769 73-10c-4.2. Drinking water projects -- Loan criteria and requirements -- Process
770 for approval.
771 (1) The Drinking Water Board shall review the plans and specifications for a drinking
772 water project before approval of any loan and may condition approval on the availability of
773 loan funds and on the assurances that the Drinking Water Board considers necessary to ensure
774 that loan funds are used to pay the drinking water project costs and that the drinking water
775 project is completed.
776 (2) (a) Each loan shall specify the terms for repayment, with the term, interest rate or
777 rates, including a variable rate, and security as determined by the Drinking Water Board.
778 (b) The loan may be evidenced by general obligation or revenue bonds or other
779 obligations of the political subdivision.
780 (c) Loan payments made by a political subdivision shall be deposited in the Drinking
781 Water Security Subaccount as described in Section 73-10c-5.
782 (d) The loans are subject to the provisions of Title 63B, Chapter 1b, State Financing
783 Consolidation Act.
784 (3) [
785 water project loan, the Drinking Water Board shall consider:
786 (a) the ability of the political subdivision to obtain money for the drinking water
787 project from other sources or to finance such project from its own resources;
788 (b) the ability of the political subdivision to repay the loan;
789 (c) whether or not a good faith effort to secure all or part of the services needed from
790 the private sector of the economy has been made; and
791 (d) whether or not the drinking water project:
792 (i) meets a critical local or state need;
793 (ii) is cost effective;
794 (iii) will protect against present or potential health hazards;
795 (iv) is needed to comply with minimum standards of the federal Safe Drinking Water
796 Act, or any similar or successor statute;
797 (v) is needed to comply with the minimum standards of Title 19, Chapter 4, Safe
798 Drinking Water Act, or any similar or successor statute; and
799 (vi) meets any other consideration considered necessary by the Drinking Water Board.
800 (4) In determining the cost effectiveness of a drinking water project the Drinking Water
801 Board shall:
802 (a) require the preparation of a cost-effective analysis of feasible drinking water
803 projects;
804 (b) consider monetary costs, including the present worth or equivalent annual value of
805 all capital costs and operation, maintenance, and replacement cost; and
806 (c) ensure that the alternative selected is the most economical means of meeting
807 applicable water quality or public health requirements over the useful life of the facility while
808 recognizing environmental and other nonmonetary considerations.
809 (5) A loan may not be made for a drinking water project that is not in the public
810 interest as determined by the Drinking Water Board.
811 Section 21. Section 73-10c-5 is amended to read:
812 73-10c-5. Water Development Security Fund created -- Water Quality Security
813 and Drinking Water Security Subaccounts created -- Use -- Revolving loan funds --
814 Hardship grants.
815 (1) There is established an enterprise fund known as the Water Development Security
816 Fund which includes the Water Quality Security Subaccount and the Drinking Water Security
817 Subaccount.
818 (2) The Water Quality Security Subaccount consists of four subaccounts:
819 (a) the Utah Wastewater Loan Program Subaccount, which consists of:
820 (i) money appropriated to the subaccount by the Legislature;
821 (ii) money received from the repayment of the principal of loans made by the Water
822 Quality Board under Sections 73-10c-4 and 73-10c-6 from the Utah Wastewater Loan Program
823 Subaccount; and
824 (iii) money deposited in the subaccount under any other law;
825 (b) the Utah State Revolving Fund for Wastewater Projects Subaccount, which consists
826 of:
827 (i) money appropriated to the subaccount by the Legislature;
828 (ii) money received from the Utah Wastewater Loan Program Subaccount applied to
829 meet match requirements for federal funds under 33 U.S.C.A. 1251 et seq., federal Clean
830 Water Act;
831 (iii) money received from the repayment of loans made by the Water Quality Board
832 under Section 73-10c-4 from the Utah State Revolving Fund for Wastewater Projects
833 Subaccount;
834 (iv) money received from the repayment of loans made by the Water Quality Board
835 under Section 73-10c-4.5;
836 (v) money deposited in the subaccount under any other law;
837 (vi) money received under and subject to the restrictions of 33 U.S.C.A. 1251 et seq.,
838 federal Clean Water Act, and which is eligible for use in state revolving loan funds established
839 to meet the requirements of the act; and
840 (vii) all investment income derived from money in the Utah State Revolving Fund for
841 Wastewater Projects Subaccount;
842 (c) the Hardship Grant Program for Wastewater Projects Subaccount, which consists
843 of:
844 (i) money appropriated to the subaccount by the Legislature;
845 (ii) money received as interest payments on loans made by the Water Quality Board
846 under Sections 73-10c-4 and 73-10c-6, from the Utah Wastewater Loan Program Subaccount;
847 (iii) money deposited in the subaccount under any other law;
848 (iv) the Hardship Grant Assessment charged to State Revolving Fund loan recipients;
849 and
850 (v) all investment income derived from money in the Utah Wastewater Loan Program
851 Subaccount or the Hardship Grant Program for Wastewater Projects Subaccount; and
852 (d) the Water Quality Origination Fee Subaccount, which consists of the origination
853 fee paid under Section 73-10c-10.
854 (3) The Drinking Water Security Subaccount consists of four subaccounts:
855 (a) the Drinking Water Loan Program Subaccount, which consists of:
856 (i) money appropriated to the subaccount by the Legislature;
857 (ii) money received from the repayment of the principal of loans made by the Drinking
858 Water Board under Sections 73-10c-4 and 73-10c-6, from the Drinking Water Loan Program
859 Subaccount; and
860 (iii) money deposited in the subaccount under any other law;
861 (b) the State Revolving Fund for Drinking Water Projects Subaccount, which consists
862 of:
863 (i) money appropriated to the subaccount by the Legislature;
864 (ii) money received from the Utah Drinking Water Loan Program Subaccount and
865 applied to meet match requirements for federal funds under 42 U.S.C.A. 300f et seq., federal
866 Safe Drinking Water Act;
867 (iii) money received from the repayment of loans made by the Drinking Water Board
868 under Section 73-10c-4 from the State Revolving Fund for Drinking Water Projects
869 Subaccount;
870 (iv) money deposited in the subaccount under any other law;
871 (v) money received under and subject to the restrictions of 42 U.S.C.A. 300f et seq.,
872 federal Safe Drinking Water Act, and which is eligible for use in state revolving loan funds
873 established to meet the requirements of the act; and
874 (vi) all investment income derived from money in the State Revolving Fund for
875 Drinking Water Projects Subaccount;
876 (c) the Hardship Grant Program for Drinking Water Projects Subaccount, which
877 consists of:
878 (i) money appropriated to the subaccount by the Legislature;
879 (ii) money received from interest payments on loans made by the Drinking Water
880 Board under Sections 73-10c-4 and 73-10c-6, from the Drinking Water Loan Program
881 Subaccount;
882 (iii) money deposited in the subaccount under any other law;
883 (iv) the Hardship Grant Assessment charged to State Revolving Fund loan recipients;
884 and
885 (v) all investment income derived from money in the Drinking Water Loan Program
886 Subaccount or the Hardship Grant Program for Drinking Water Projects Subaccount; and
887 (d) the Drinking Water Origination Fee Subaccount, which consists of the origination
888 fee paid under Section 73-10c-10.
889 (4) State money in the Water Quality Security Subaccount and the Drinking Water
890 Security Subaccount may be applied to meet match requirements for federal funds under the
891 Clean Water Act, 33 U.S.C. Sec. 1251 et seq. and the Safe Drinking Water Act, 42 U.S.C. Sec.
892 300f et seq.
893 (5) If the money in the security fund is insufficient for the purposes for which the
894 security fund is established, the council shall ask the governor to request the Legislature to
895 appropriate additional money to the account.
896 (6) (a) The Drinking Water Board and Water Quality Board may use the money in the
897 appropriate security fund subaccount:
898 (i) only to the extent of the money available in the account[
899 (ii) for the support of drinking water projects and wastewater projects in accordance
900 with the terms of credit enhancement agreements, grant agreements, and loan agreements[
901 and
902 (iii) to fund in whole or in part a water infrastructure project, as defined in Section
903 73-10g-102, not including state funding used to meet federal match requirements, only if the
904 water infrastructure project is prioritized by the Water Development Coordinating Council
905 under Chapter 10g, Part 6, Planning and Prioritization.
906 (b) Repayments to the security fund from loans made by the acting board, money
907 allocated by the Legislature, and interest accrued on the money shall remain available for use
908 by that acting board for further project funding.
909 (c) The Drinking Water Board and Water Quality Board may use the money in the
910 origination fee subaccount to administer this chapter.
911 (d) The Water Development Coordinating Council shall include in the unified state
912 water infrastructure plan water infrastructure projects funded with federal State Revolving
913 Fund funding or state water funds used to meet federal match requirements. A water
914 infrastructure project described in this Subsection (6)(d) may be added to the unified state
915 water infrastructure plan after the water infrastructure project receives authorization for
916 funding from the Drinking Water Board or Water Quality Board.
917 (7) [
918 seq. may be used for providing financial assistance to community water systems and nonprofit
919 noncommunity water systems as defined and within the limits of that act.
920 Section 22. Section 73-10g-102 is amended to read:
921 73-10g-102. Definitions.
922 As used in this chapter:
923 (1) (a) "Available funds" means money that may be issued as a loan or grant in
924 accordance with a fund or account created under this title, including:
925 (i) the Water Resources Conservation and Development Fund;
926 (ii) the Water Resources Construction Fund, including the fund's subaccounts;
927 (iii) the Water Resources Cities Water Loan Fund;
928 (iv) the Water Infrastructure Restricted Account;
929 (v) the Water Development Security Fund, including the fund's subaccounts;
930 (vi) the Water Infrastructure Fund;
931 (vii) the Water Development and Flood Mitigation Reserve Account; and
932 (viii) the Lake Powell Pipeline Project Operation and Maintenance Fund.
933 (b) "Available funds" does not include the Agricultural Water Optimization Account.
934 (2) "Board" means the Board of Water Resources[
935 [
936 [
937 created in Section 73-10g-103.
938 (5) "Retail water supplier" means a person that supplies water to an end user for
939 municipal or industrial purposes such as human consumption or other domestic uses.
940 (6) "Water Infrastructure Fund" means the special revenue fund created in Section
941 73-10g-108.
942 (7) "Water infrastructure project" means:
943 (a) the following for the supply, control, measurement, treatment, distribution, storage,
944 or transport of water:
945 (i) planning;
946 (ii) design;
947 (iii) construction;
948 (iv) reconstruction;
949 (v) improvement;
950 (vi) renovation;
951 (vii) acquisition; or
952 (viii) seismic upgrade; or
953 (b) a project to engage in planning consistent with Part 6, Planning and Prioritization.
954 Section 23. Section 73-10g-103 is amended to read:
955 73-10g-103. Creation of the Water Infrastructure Restricted Account.
956 (1) (a) There is created a restricted account in the General Fund known as the "Water
957 Infrastructure Restricted Account."
958 (b) The restricted account shall earn interest.
959 (2) The restricted account consists of money generated from the following sources:
960 (a) voluntary contributions made to the division for the construction, operation, or
961 maintenance of state water projects;
962 (b) appropriations made to the restricted account by the Legislature;
963 (c) interest earned on the restricted account; and
964 (d) money transferred to the restricted account under Section 73-10-25.
965 (3) Subject to appropriation and prioritization under Part 6, Planning and Prioritization,
966 the division and the board shall manage the restricted account created in Subsection (1) in
967 accordance with this chapter.
968 Section 24. Section 73-10g-104 is amended to read:
969 73-10g-104. Authorized use of the Water Infrastructure Restricted Account.
970 Money in the restricted account is to be used, subject to Part 6, Planning and
971 Prioritization, for:
972 (1) the development of the state's undeveloped share of the Bear [
973 Colorado [
974 described in Chapter 26, Bear River Development Act, and Chapter 28, Lake Powell Pipeline
975 Development Act;
976 (2) repair, replacement, or improvement of federal water projects for local sponsors in
977 the state when federal funds are not available;
978 (3) study and development of rules, criteria, targets, processes, and plans, as described
979 in Subsection 73-10g-105(3); and
980 (4) a project that benefits the Colorado River drainage in Utah, including projects for
981 water reuse, desalinization, building of dams, or water conservation, if a county or municipality
982 that benefits from the project:
983 (a) requires a new residential subdivision follow the regional conservation level of .59
984 acre-feet regardless of whether the outside water is potable, reuse, or secondary water;
985 (b) adopts and implements the local water conservancy district's emergency drought
986 contingency plan;
987 (c) adopts and implements the local water conservancy district's grass rebate program's
988 maximum grass restrictions;
989 (d) prohibits grass in new retail, industrial, or commercial facility landscaping;
990 (e) has reuse water be managed by the local water conservancy district;
991 (f) does not withdraw water from an aquifer in excess of the safe yield of the aquifer as
992 defined in Section 73-5-15;
993 (g) adopts and implements excess water use surcharges;
994 (h) prohibits private water features in new development, such as a fountain, pond, or
995 ski lake; and
996 (i) prohibits large grassy areas in new development, unless the large grassy area is open
997 to the general public.
998 Section 25. Section 73-10g-105 is amended to read:
999 73-10g-105. Loans -- Rulemaking.
1000 (1) (a) The division and the board shall make rules, in accordance with Title 63G,
1001 Chapter 3, Utah Administrative Rulemaking Act, in preparation to make loans from available
1002 funds to repair, replace, or improve underfunded federal water infrastructure projects.
1003 (b) Subject to Part 6, Planning and Prioritization, Chapter 26, Bear River Development
1004 Act, and Chapter 28, Lake Powell Pipeline Development Act, the division and the board shall
1005 make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in
1006 preparation to make loans from available funds to develop the state's undeveloped share of the
1007 Bear [
1008 (2) The rules described in Subsection (1) shall:
1009 (a) specify the amount of money that may be loaned;
1010 (b) [
1011 require the division and the board to comply with Part 6, Planning and Prioritization, in
1012 awarding loans;
1013 (c) specify the minimum qualifications for a person to receive a loan, including:
1014 (i) the amount of cost-sharing to be the responsibility of the person applying for a loan;
1015 and
1016 (ii) compliance with Section 73-10g-605;
1017 (d) specify the terms of the loan, including the terms of repayment; and
1018 (e) require an applicant for a loan to apply on forms provided by the division and in a
1019 manner required by the division.
1020 (3) The division and the board shall, in making the rules described in Subsection (1)
1021 and in consultation with the Legislative Water Development Commission created in Section
1022 73-27-102:
1023 (a) establish criteria for better water data and data reporting;
1024 (b) establish new conservation targets based on the data described in Subsection (3)(a);
1025 (c) institute a process for the independent verification of the data described in
1026 Subsection (3)(a);
1027 (d) establish a plan for an independent review of:
1028 (i) the proposed construction plan for an applicant's qualifying water infrastructure
1029 project; and
1030 (ii) the applicant's plan to repay the loan for the construction of the proposed water
1031 infrastructure project;
1032 (e) invite and recommend public involvement; and
1033 (f) set appropriate financing and repayment terms.
1034 (4) The division and the board shall provide regular updates to the Legislative
1035 Management Committee on the progress made under this section, including whether the
1036 division and board intend to issue a request for proposals.
1037 Section 26. Section 73-10g-105.5 is enacted to read:
1038 73-10g-105.5. Grants and loans-- Rulemaking.
1039 (1) Subject to Part 6, Planning and Prioritization, the division and the board shall make
1040 rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in
1041 preparation to make from available funds:
1042 (a) grants for water infrastructure projects; or
1043 (b) loans for water infrastructure projects not addressed under Section 73-10g-105.
1044 (2) The rules described in Subsection (1) shall:
1045 (a) specify from which fund or account the grant or loan to be issued;
1046 (b) specify the amount of money that may be granted or loaned;
1047 (c) require the division and the board to comply with Part 6, Planning and
1048 Prioritization, in awarding grants or loans;
1049 (d) specify the minimum qualifications for a person to receive a grant or loan, except
1050 that the division and board shall require compliance with Section 73-10g-605 to be eligible for
1051 a grant or loan;
1052 (e) specify the terms of the grant or loan, except that for a loan, the terms shall:
1053 (i) provide for the issuance of low interest revolving loans; and
1054 (ii) include repayment terms not to exceed 30 years; and
1055 (f) require an applicant for a grant or loan to apply on forms provided by the division
1056 and in a manner required by the division.
1057 Section 27. Section 73-10g-107 is enacted to read:
1058 73-10g-107. Water use fee -- Study of water funding tools.
1059 (1) (a) Beginning July 1, 2027, the board shall assess an annual fee on an end user as a
1060 condition of the water supplier providing water to the end user. The fee shall be collected by
1061 the retail water supplier or other water provider that provides water to the end user for a price.
1062 (b) The board shall calculate the amount of the annual fee assessed by:
1063 (i) determining the amount of money committed to fund prioritized water infrastructure
1064 projects in fiscal year 2026; and
1065 (ii) calculating the proportional share of the amount described in Subsection (1)(b)(i)
1066 for each retail water supplier or other water provider based on the amount of water that the
1067 retail water supplier or other water provider supplies to an end user.
1068 (c) The board shall deposit money collected from the fee into the Water Infrastructure
1069 Fund created in Section 73-10g-108.
1070 (d) The board may make rules, in accordance with Title 63G, Chapter 3, Utah
1071 Administrative Rulemaking Act, providing for the method of assessing and collecting the fee.
1072 (e) A fee imposed under this Subsection (1) is not subject to the jurisdiction of the
1073 Public Service Commission or subject to procedures under Title 54, Public Utilities.
1074 (2) (a) In addition to the Department of Natural Resources' study under Section
1075 79-2-407, the board and division shall jointly study the funding of water infrastructure projects
1076 in the state through:
1077 (i) the collection of the fee provided in Subsection (1); and
1078 (ii) the consolidation into a single fund or account money used to fund water
1079 infrastructure projects as described in Subsection (4).
1080 (b) The board and division shall consider how to facilitate the implementation of Part
1081 6, Planning and Prioritization, as part of the study.
1082 (3) With regard to the fee, the board and division shall jointly study and make
1083 recommendations about how to modify Subsection (1) regarding:
1084 (a) who is assessed the fee;
1085 (b) how to calculate the fee amount, including any adjustments to the fee amount over
1086 time;
1087 (c) the process of collecting the fee, including whether it should be collected by:
1088 (i) retail water suppliers or a broader definition of water retailers;
1089 (ii) wholesale water providers;
1090 (iii) nonprofit irrigation companies; or
1091 (iv) wastewater treatment plants;
1092 (d) where the money collected should be deposited;
1093 (e) whether the revenue stream should be configured as a tax rather than a fee;
1094 (f) how the money collected should be spent;
1095 (g) the affordability of the fee for end users; and
1096 (h) how to assure that the revenue is distributed equitably statewide.
1097 (4) With regard to the consolidation of funds or accounts, the board and division shall
1098 jointly study and make recommendations about consolidating into a single fund or account
1099 money used to fund water infrastructure projects, including available funds.
1100 (5) The board and division shall jointly report the board's and division's joint findings
1101 from the study described in this section, including any recommendations, to the Natural
1102 Resources, Agriculture, and Environment Interim Committee and the Natural Resources,
1103 Agriculture, and Environmental Quality Appropriations Subcommittee by no later than the
1104 2025 October interim meetings of the Legislature.
1105 Section 28. Section 73-10g-108 is enacted to read:
1106 73-10g-108. Water Infrastructure Fund.
1107 (1) There is created an enterprise fund known as the "Water Infrastructure Fund,"
1108 which is referred to in this section as the "fund."
1109 (2) The fund shall consist of:
1110 (a) deposits of the fee under Section 73-10g-107;
1111 (b) appropriations from the Legislature;
1112 (c) money from the federal government;
1113 (d) grants or donations from a person;
1114 (e) money received for the repayment of loans made from the fund;
1115 (f) money made available to the state for purposes of water infrastructure projects from
1116 any source; and
1117 (g) interest and earnings on the fund.
1118 (3) The state treasurer shall invest the money in the fund according to Title 51, Chapter
1119 7, State Money Management Act, except that interest or other earnings derived from those
1120 investments shall be deposited into the fund.
1121 (4) The Water Development Coordinating Council may:
1122 (a) issue loans and grants from the fund to pay for water infrastructure projects
1123 prioritized by the Water Development Coordinating Council under Part 6, Planning and
1124 Prioritization, including:
1125 (i) a new water infrastructure project; or
1126 (ii) a water infrastructure project that exists at the time of the loan or grant; and
1127 (b) provide for the costs of administering Part 6, Planning and Prioritization, including
1128 staff directly related to the activities of the Water Development Coordinating Council under
1129 Part 6, Planning and Prioritization.
1130 Section 29. Section 73-10g-301 is amended to read:
1131
1132 73-10g-301. Implementation of part.
1133 [
1134 liberally construed to:
1135 [
1136 infrastructure planning on a watershed and state level in accordance with Part 6, Planning and
1137 Prioritization;
1138 (2) develop diverse and balanced stakeholder forums for discussion of water policy and
1139 resource issues at watershed and state levels that are not vested with regulatory, infrastructure
1140 financing, or enforcement powers or responsibilities; and
1141 [
1142 institutions or in regional, state, and federal agencies.
1143 Section 30. Section 73-10g-302 is amended to read:
1144 73-10g-302. Definitions.
1145 As used in this part:
1146 (1) "Council" means the state council or a local council created under this part.
1147 (2) "Local council" means a local [
1148 Section 73-10g-306.
1149 (3) "State council" means the Utah Watersheds Council created in Section 73-10g-304.
1150 (4) "Utah Water Task Force" means a task force created by the Department of Natural
1151 Resources to review and make recommendations regarding water issues.
1152 Section 31. Section 73-10g-304 is amended to read:
1153 73-10g-304. Utah Watersheds Council -- Creation and governance.
1154 (1) Within the Department of Natural Resources, there is created the "Utah Watersheds
1155 Council" consisting of the following members who are residents of the state:
1156 (a) the executive director of the Department of Natural Resources;
1157 (b) the executive director of the Department of Environmental Quality;
1158 (c) the commissioner of the Department of Agriculture and Food;
1159 (d) the director of the Utah Division of Indian Affairs;
1160 (e) the Utah State University Extension vice president;
1161 (f) the director of the Division of Emergency Management within the Department of
1162 Public Safety;
1163 (g) a representative designated by the Utah Association of Counties;
1164 (h) a representative designated by the Utah League of Cities and Towns;
1165 (i) a representative designated by the Utah Association of Special Districts;
1166 (j) a representative of reclamation projects located in the state selected by the governor
1167 from a list of three persons nominated jointly by the local sponsors of reclamation projects
1168 located in the state and the executive director of the Department of Natural Resources;
1169 (k) a representative of agricultural interests selected by the governor from a list of three
1170 persons nominated jointly by the commissioner of the Department of Agriculture and Food, the
1171 president of the Utah Farm Bureau, and the Utah State University Extension vice president;
1172 (l) a representative of environmental conservation interests selected by the governor
1173 from a list of three persons nominated jointly by the executive directors of the Department of
1174 Environmental Quality and Department of Natural Resources;
1175 (m) a representative of business and industry water interests selected by the governor
1176 from a list of three individuals nominated jointly by the Utah Manufacturers Association, Utah
1177 Mining Association, and Utah Petroleum Association;
1178 (n) an attorney who is authorized to practice law in the state, who has recognized
1179 expertise in water law, and is selected by the governor from a list of three individuals
1180 nominated jointly by the executive director of the Department of Natural Resources, the
1181 executive director of the Department of Environmental Quality, and the commissioner of the
1182 Department of Agriculture and Food; [
1183 (o) the state engineer, as a nonvoting member;
1184 (p) the director of the division, as a nonvoting member; and
1185 [
1186 under Section 73-10g-306.
1187 (2) (a) The state council shall:
1188 (i) organize the state council as provided in this part;
1189 (ii) select a chair and at least one vice-chair from among the members of the state
1190 council to have powers and duties provided in the organizing documents adopted by the state
1191 council; and
1192 (iii) adopt policies to govern the state council's activities, including policies for the
1193 creation of subcommittees that may be less than a quorum of the state council and may include
1194 persons of suitable expertise who are not state council members.
1195 (b) The state council shall make the organizing documents and policies created under
1196 Subsection (2)(a) available:
1197 (i) to the public;
1198 (ii) at each meeting of the state council; and
1199 (iii) on a public website maintained by the division for council business.
1200 (3) The state council may invite federal agencies to name representatives as liaisons to
1201 the state council.
1202 (4) The state council shall stagger the initial terms of the state council members listed
1203 in Subsections (1)(g) through (n), after which members will be replaced according to policies
1204 adopted by the state council.
1205 (5) After the state council's initial organization, the state council may hold regular and
1206 special meetings at such locations within the state and on a schedule as the state council
1207 determines, provided that the state council shall meet at least semi-annually.
1208 (6) A majority of the voting members of the state council constitutes a quorum.
1209 (7) The action of the majority of the voting members of the state council constitutes the
1210 action of the state council.
1211 (8) (a) The state council policies may allow that a properly authorized representative of
1212 a voting member of the state council may act in the place of that voting member if the voting
1213 member is absent or unable to act.
1214 (b) The state council shall enter in the record of a meeting proper documentation of a
1215 representative's authority to act on behalf of the voting member under this Subsection (8).
1216 (c) Authorization to act on behalf of a voting member may be given for more than one
1217 meeting.
1218 (d) Authorization to act on behalf of a voting member shall comply with the policies
1219 adopted by the state council.
1220 (9) (a) The division shall staff the state council.
1221 (b) The division may make rules in accordance with Title 63G, Chapter 3, Utah
1222 Administrative Rulemaking Act, to facilitate the creation and operation of the state council.
1223 Section 32. Section 73-10g-305 is amended to read:
1224 73-10g-305. Role of the state council -- Reporting.
1225 (1) The state council [
1226 (a) serve as a forum to encourage and facilitate discussion and collaboration by and
1227 among the stakeholders relative to the water-related interests of the state and the state's people
1228 and institutions;
1229 (b) facilitate communication and coordination between the Department of Natural
1230 Resources, the Department of Agriculture and Food, the Department of Environmental Quality,
1231 and other state and federal agencies in the administration and implementation of water-related
1232 activities;
1233 (c) facilitate the establishment of local [
1234 council:
1235 (i) for the watersheds defined in Section 73-10g-303; and
1236 (ii) after reviewing the proceedings and documents submitted by proposed local
1237 councils, to ensure that the local council meets the certification requirements in Section
1238 73-10g-306;
1239 (d) provide resources and support for the administration of local councils;
1240 (e) consult and seek guidance from local councils; [
1241 (f) advise the Water Development Coordinating Council regarding a unified water
1242 infrastructure plan in accordance with Section 73-10g-602; and
1243 [
1244 (2) The state council shall provide updates on the state council's activities annually, or
1245 as invited, to:
1246 (a) the Natural Resources, Agriculture, and Environment Interim Committee;
1247 (b) the Legislative Water Development Commission; and
1248 (c) the Utah Water Task Force.
1249 Section 33. Section 73-10g-306 is amended to read:
1250 73-10g-306. Local councils -- Creation.
1251 (1) A proposed local [
1252 Council under Subsection [
1253 (a) the organizing documents and policies of the proposed local [
1254 (i) provide for an open and equitable system of governance;
1255 (ii) encourage participation by a water user or group of water users, other watershed
1256 groups, mutual irrigation companies, distribution system committees, and other stakeholders
1257 within the watershed; and
1258 (iii) require that:
1259 (A) a majority of the members of the local council constitutes a quorum; and
1260 (B) an action of the local council be approved by no less than a majority of the
1261 members of the local council;
1262 (b) in a balance appropriate for the watershed, the proposed local council membership
1263 includes watershed stakeholders who reside or work within the watershed or own or control the
1264 right to divert or use water within the watershed and is representative, where feasible, of at
1265 least these interests:
1266 (i) agriculture;
1267 (ii) industry;
1268 (iii) Indian tribes;
1269 (iv) public water suppliers, as defined in Section 73-1-4;
1270 (v) water planning and research institutions;
1271 (vi) water quality;
1272 (vii) fish and wildlife;
1273 (viii) water dependent habitat and environments;
1274 (ix) watershed management, such as distribution system committees functioning within
1275 the watershed;
1276 (x) mutual irrigation companies;
1277 (xi) land use planning agencies; and
1278 [
1279 (c) for each of the five watersheds that drain into Great Salt Lake, the proposed local
1280 council includes a person designated by the Great Salt Lake local watershed council, if the
1281 Great Salt Lake local [
1282 (d) for the Great Salt Lake watershed, the proposed local council includes a person
1283 designated by each of the five watersheds that drain into Great Salt Lake that has a certified
1284 local watershed council.
1285 (2) A local council may invite state and federal agencies to name representatives as
1286 liaisons to the local council.
1287 Section 34. Section 73-10g-601 is enacted to read:
1288
1289 73-10g-601. Definitions.
1290 As used in this part:
1291 (1) "Agency plan" means a water infrastructure plan adopted by a relevant agency.
1292 (2) "Executive director" means the executive director of the Department of Natural
1293 Resources.
1294 (3) "Relevant agency" means:
1295 (a) the Division of Water Resources;
1296 (b) the Division of Drinking Water;
1297 (c) the Division of Water Quality;
1298 (d) the Housing and Community Development Division; and
1299 (e) the Department of Agriculture and Food.
1300 (4) "State council" means the Water Development Coordinating Council created in
1301 Sections 73-10c-3 and 79-2-201.
1302 (5) "State water funds" means money:
1303 (a) appropriated by the Legislature to fund a water infrastructure project; or
1304 (b) that is:
1305 (i) state money; and
1306 (ii) held in a fund administered by a relevant agency for purposes related to water.
1307 (6) "Utah Watersheds Council" means the Utah Watersheds Council created in Section
1308 73-10g-304.
1309 Section 35. Section 73-10g-602 is enacted to read:
1310 73-10g-602. Unified water infrastructure plan -- Annual reporting.
1311 (1) (a) The state council shall adopt a unified water infrastructure plan in accordance
1312 with this section by no later than June 30, 2026.
1313 (b) The state council shall update the unified water infrastructure plan as needed, but at
1314 least every four years.
1315 (c) A relevant agency may request that the state council amend the unified water
1316 infrastructure plan.
1317 (2) A unified water infrastructure plan shall:
1318 (a) describe water infrastructure projects:
1319 (i) needed to maintain the reliable supply of safe and clean water within the state; and
1320 (ii) organized in 10-year phases up to at least a 20-year plan;
1321 (b) be consistent with the policies, goals, and recommendations of the state water plan;
1322 and
1323 (c) be based primarily on agency plans submitted by the relevant agencies.
1324 (3) Beginning on June 30, 2025, a relevant agency shall:
1325 (a) annually adopt a water infrastructure agency plan that describes and prioritizes
1326 needed water infrastructure projects under the jurisdiction of the relevant agency;
1327 (b) include in the agency plan prioritization justifications and descriptions of whether
1328 the water infrastructure project is:
1329 (i) ready for construction;
1330 (ii) planning for construction; or
1331 (iii) a future project.
1332 (c) organize an agency plan under this section in 10-year phases up to at least a 20-year
1333 plan; and
1334 (d) annually submit the agency plan to the state council by no later than June 30.
1335 (4) Before adopting or amending a unified water infrastructure plan, the state council
1336 shall provide a draft of the proposed unified water infrastructure plan to the Utah Watersheds
1337 Council and the Utah Watersheds Council may advise the state council concerning the unified
1338 water infrastructure plan.
1339 (5) (a) Beginning September 1, 2024, a relevant agency shall annually prepare a report
1340 and submit it to the state council concerning the funds or accounts that the relevant agency
1341 administers.
1342 (b) The report required under this Subsection (5) shall provide for the fund or account:
1343 (i) the balance at the beginning of the fiscal year of the report;
1344 (ii) revenues received from any source during the fiscal year;
1345 (iii) the ending balance after the close of the fiscal year; and
1346 (iv) projected revenues and disbursements for the coming fiscal year.
1347 (c) The state council shall compile the reports submitted pursuant to this Subsection (5)
1348 by no later than October 1 and distribute the complied report to:
1349 (i) the governor;
1350 (ii) the Legislative Management Committee;
1351 (iii) the Natural Resources, Agriculture, and Environment Interim Committee; and
1352 (iv) the Natural Resources, Agriculture, and Environmental Quality Appropriations
1353 Subcommittee.
1354 Section 36. Section 73-10g-603 is enacted to read:
1355 73-10g-603. Ranking and prioritizing water infrastructure projects.
1356 (1) The state council, in consultation with the relevant agencies, shall develop a written
1357 prioritization process for ranking and prioritizing water infrastructure projects that are or will
1358 be funded by state water funds beginning with fiscal year 2027. The written prioritization
1359 process shall:
1360 (a) identify water infrastructure projects listed in the unified water infrastructure plan
1361 described in Section 73-10g-602; and
1362 (b) rank the water infrastructure projects identified under Subsection (1)(a).
1363 (2) The following shall be included in the written prioritization process under
1364 Subsection (1):
1365 (a) subject to Subsection (3), categories of the types of water infrastructure projects
1366 against which other water infrastructure projects are prioritized;
1367 (b) exclusion of the following types of water infrastructure projects:
1368 (i) an emergency water infrastructure project; or
1369 (ii) a small water infrastructure project that receives less than an amount of state water
1370 funds established by rule made by the state council in accordance with Title 63G, Chapter 3,
1371 Utah Administrative Rulemaking Act;
1372 (c) hardship criteria that at a minimum refer to the hardship criteria of the Division of
1373 Drinking Water and the Division of Water Quality;
1374 (d) criteria related to the public interest, including conservation and the protection of
1375 public health and safety;
1376 (e) criteria to ensure that the project is adequately designed based on sound engineering
1377 and geologic considerations;
1378 (f) criteria for ranking or prioritizing a local water infrastructure project based on:
1379 (i) a local water infrastructure plan that is consistent with this section; and
1380 (ii) consultation with local entities about local water infrastructure projects;
1381 (g) criteria for ranking or prioritizing a water infrastructure project when state water
1382 funds will be used to match federal funding;
1383 (h) a requirement that a person who receives state water funds for a water infrastructure
1384 project:
1385 (i) engage in long-term planning consistent with Section 73-10g-602; and
1386 (ii) comply with Section 73-10g-605; and
1387 (i) any other provision the state council considers appropriate.
1388 (3) When including categories of types of water infrastructure projects used in the
1389 written prioritization process, the state council shall consider:
1390 (a) whether to apply percentages of state water funds assigned to each category;
1391 (b) the size and resources of recipients; and
1392 (c) the potential purposes of the different types of water infrastructure projects, such as
1393 agricultural, municipal, or industrial uses.
1394 (4) In developing the written prioritization process, the state council shall seek and
1395 consider public comment related to developing the written prioritization process by holding
1396 public meetings at locations throughout the state in accordance with Title 52, Chapter 4, Open
1397 and Public Meetings Act.
1398 (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1399 the state council shall make rules establishing the written prioritization process under
1400 Subsection (1).
1401 (b) The state council shall submit a proposed rule to a committee or commission
1402 designated by the Legislative Management Committee for review before taking final action on
1403 the proposed rule or a proposed amendment to the rule described in this Subsection (5).
1404 (6) In determining priorities and funding levels of water infrastructure projects, the
1405 state council shall use the ranked list of water infrastructure projects based on the criteria
1406 adopted in the written prioritization process under Subsection (1).
1407 (7) A relevant agency shall annually report to the state council on the status of new
1408 water infrastructure projects, including water infrastructure projects that are funded by the
1409 Legislature in an appropriation act.
1410 (8) For a fiscal year before fiscal year 2027, a relevant agency shall prioritize water
1411 infrastructure projects within the jurisdiction of the relevant agency and not the state council.
1412 Section 37. Section 73-10g-604 is enacted to read:
1413 73-10g-604. State council's general duties related to prioritizing -- Reporting --
1414 Relevant agency actions.
1415 (1) The state council shall:
1416 (a) beginning with fiscal year 2027, determine priorities and funding levels of water
1417 infrastructure projects for each fiscal year based on ranked water infrastructure projects;
1418 (b) hold public meetings in accordance with Title 52, Chapter 4, Open and Public
1419 Meetings Act, and otherwise provide for public input on funding of water infrastructure
1420 projects; and
1421 (c) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
1422 Rulemaking Act, necessary to perform the state council's duties related to:
1423 (i) adopting the unified water infrastructure plan;
1424 (ii) adopting a written prioritization plan; and
1425 (iii) prioritizing and setting funding levels for water infrastructure projects.
1426 (2) (a) For water infrastructure projects prioritized with funding provided under this
1427 title, the state council shall annually report, by no later than the October interim meeting of the
1428 Legislature, to a committee or commission designated by the Legislative Management
1429 Committee:
1430 (i) a prioritized list of the water infrastructure projects and the funding levels available
1431 for those water infrastructure projects; and
1432 (ii) the unfunded water infrastructure projects and maintenance needs within the state.
1433 (b) The committee or commission designated by the Legislative Management
1434 Committee under Subsection (2)(a) shall:
1435 (i) review the list reported by the state council; and
1436 (ii) recommend to the Legislature:
1437 (A) the amount of additional funding to allocate to water infrastructure projects; and
1438 (B) the source of revenue for the additional funding allocation under Subsection
1439 (2)(b)(ii)(A).
1440 (3) A relevant agency shall administer money prioritized under this part in a manner
1441 consistent with this part.
1442 Section 38. Section 73-10g-605 is enacted to read:
1443 73-10g-605. Capital asset management and reserve analysis -- Assistance for
1444 person seeking state funds.
1445 (1) As a condition of receiving state water funds for a water infrastructure project by a
1446 loan or grant, a recipient shall:
1447 (a) conduct a reserve study showing how the recipient shall:
1448 (i) repay the loan if the recipient receives a loan; and
1449 (ii) collect money for repair and replacement of the water infrastructure project;
1450 (b) if the recipient receives a loan, update the reserve study described in Subsection
1451 (1)(a) every five years or until the loan is repaid; and
1452 (c) comply with the relevant capital asset management requirements under:
1453 (i) Section 19-5-202 for a water infrastructure project related to wastewater or sewage
1454 infrastructure; or
1455 (ii) Section 73-10g-502 for a water provider's, as defined in Section 73-10g-501, water
1456 infrastructure project that is not described in Subsection (1)(c)(i).
1457 (2) A reserve study required under this section shall include:
1458 (a) a list of the components identified in the reserve analysis that will reasonably
1459 require reserve funds;
1460 (b) a statement of the probable remaining useful life, as of the date of the reserve
1461 analysis, of each component identified in the reserve analysis;
1462 (c) an estimate of the cost to repair, replace, or restore each component identified in the
1463 reserve analysis;
1464 (d) an estimate of the total annual contribution to a reserve fund necessary to meet the
1465 cost to repair, replace, or restore each component identified in the reserve analysis during the
1466 component's useful life and at the end of the component's useful life; and
1467 (e) a reserve funding plan that recommends how the system may fund the annual
1468 contribution described in Subsection (2)(d).
1469 (3) If a person seeking state water funds under this part establishes a need to the
1470 satisfaction of a relevant agency, the relevant agency may provide the person:
1471 (a) state water funds to assist the recipient in complying with the planning, reserve
1472 analysis, and capital asset management requirements of this part; or
1473 (b) technical assistance with the planning, reserve analysis, or capital asset
1474 management requirements of this part.
1475 Section 39. Section 73-20-8 is amended to read:
1476 73-20-8. Emergency Water Resources Account -- Creation -- Purpose.
1477 There is hereby created within the Water Resources Construction Fund an account to be
1478 known as the "Emergency Water Resources Account," the proceeds of which shall be used:
1479 (1) exclusively for the development of emergency water resources; and
1480 (2) (a) if prioritized under Chapter 10g, Part 6, Planning and Prioritization; or
1481 (b) excluded from prioritization pursuant to Subsection 73-10g-603(2)(b)(i).
1482 Section 40. Repealer.
1483 This bill repeals:
1484 Section 73-10-17, State water plan -- Authority of other agencies not impaired.
1485 Section 41. FY 2025 Appropriation.
1486 The following sums of money are appropriated for the fiscal year beginning July 1,
1487 2024, and ending June 30, 2025. These are additions to amounts previously appropriated for
1488 fiscal year 2025.
1489 Subsection 41(a). Business-like Activities.
1490 The Legislature has reviewed the following proprietary funds. Under the terms and
1491 conditions of Utah Code 63J-1-410, for any included Internal Service Fund, the Legislature
1492 approves budgets, full-time permanent positions, and capital acquisition amounts as indicated,
1493 and appropriates to the funds, as indicated, estimated revenue from rates, fees, and other
1494 charges. The Legislature authorizes the State Division of Finance to transfer amounts between
1495 funds and accounts as indicated.
1496
ITEM 1
To Department of Natural Resources - Water Infrastructure Fund| 1497 | From General Fund, One-time | $5,000,000 | |||
| 1498 | Schedule of Programs: | ||||
| 1499 | Water Infrastructure Fund | $5,000,000 | |||
1500 Section 42. Effective date.
1501 This bill takes effect on May 1, 2024.