Monday, January 27, 2020

2020 Legislative Preview

The 2020 Session of the Utah Legislature looks to be a very busy session for the water community. There are a lot of water bills that are being proposed, which are summarized below.

HB 28 - Legislative Water Development Commission Sunset Amendments
(Rep. Keven J. Stratton)
When the Utah Legislature originally created the State Water Development Commission, it provided a sunset date of January 1, 2021 at which point the State Water Development Commission would expire. House Bill 28 extends the sunset date until January 1, 2031. Additionally, HB 28 changes the name of the State Water Development Commission to the Legislative Water Development Commission. It also requires that the Legislative Management Commission may only appoint nonvoting members appointed to the Legislative Water Development Commission who are first recommended by the co-chairs of the Commission.

HB 39 - Agricultural Water Optimization Task Force Amendments
(Rep. Casey Snider)
House Bill 39 modifies the voting membership of the Agricultural Water Optimization Task Force by adding three individuals whose primary source of income derives from the production of agricultural commodities. The bill also provides that the Task Force should recommend legislation regarding the issues within the Task Force's responsibility, and makes minor changes to language about task force members receiving per diem and travel expenses in accordance with current statutes and rules.

HB 40 - Water Loss Accounting Act
(Rep. Melissa G. Ballard)
House Bill 40 would enact the Water Loss Accounting Act that creates a technical advisory committee which provides technical assistance to certain water systems that are required to prepare and submit annual water loss accounting reports. The water systems that would be subject to this Act are "public water systems that serve a population of more than 3,300 individuals." The water losses that are to be accounted for and reported annually include: water lost through leaks, breaks, overflows, etc.; water lost through the unauthorized use of water; and water lost through metering inaccuracies and data handling errors. The first annual reports would be in 2022. The bill proposes a one-time appropriation of $900,000 for technical assistance and to train the covered water systems and $450,000 to develop a validation program for the water loss audits. It also proposes one-time appropriations for data integration ($150,000) and ongoing expenses of the Division of Water Resources to administer this program ($300,000).

HB 41 - State Water Policy Amendments
(Rep. Kevin Stratton)
House Bill 41 outlines water polices for Utah. The bill includes three overarching polices. The first states that Utah will pursue "adequate, reliable, affordable, sustainable, and clean water resources, recognizing that Utah is the second most arid state in the nation and as such, there is, and will continue to be, a need to ensure Utah's finite water resources are used beneficially."
The second policy states that Utah will promote 23 goals, including among others: (1) water conservation, efficiency, and the optimal use of water resources; (2) water resource development and the creation of water infrastructure to meet demands and promote economic development; (3) compliance with state statutes regarding the Lake Powell Pipeline and Bear River development; (4) timely replacement of aging and inefficient infrastructure; (5) optimal use of agriculture water; (6) water quality in rivers and lakes; (7) water pricing and funding mechanisms; (8) respect for water rights; (9) standards for accurate water use measurement, tracking, enforcement and reporting; (10) water education efforts; (11) the study and implementation of mechanisms to increase water use flexibility, including water banking and split-season uses; (12) science-based evaluation of watersheds, increased reservoir capacity, and aquifer storage and recovery; (13) the study and development of strategies to address declining water levels and ways to protect water quality and quantity at the Great Salt Lake; (14) regulations and practices to maintain sufficient stream flows and lake levels; (15) equitable access to safe, affordable, and reliable drinking water; and (16) regulations and practices to encourage the effective treatment and use of wastewater; and (17) control of invasive species that threaten or degrade water resources.
The third policy states that Utah supports the "timely and appropriate" negotiated settlement of federally reserved water rights claims for Native American trust lands and other federal reservations, but opposes future federal reservations that result in unquantified federal reservations of water.
Under the bill, State agencies would be "encouraged" to conduct activities consistent with the above policies and other policies that the Legislature may establish. The Natural Resources, Agriculture, and Environmental Interim Committee would also review the state policy each year to recommend priority balancing and other changes to the Legislature.

HB 88 - School and Child Care Center Water Testing
(Rep. Stephen G. Handy)
House Bill 88 provides water quality testing of all water taps at schools and childcare centers by 2022. The testing is targeted at understanding and reducing lead levels in water consumed by children. All taps must be tested by June 1, 2022, and at least once every five years thereafter. If a test result reveals lead levels above 10 parts per billion, the school or childcare center must take steps to either stop using the tap or reduce the lead levels below 10 parts per billion. The records related to the tests and the remediation steps must be kept for five years and must be made available to the public at no charge.

HB 94 - Water Applications Amendments
(Rep. Timothy D. Hawkes)
House Bill 94 makes one addition to Utah Code section 73-3-5.6 regarding applications for a small amount of water. This statute was amended last year under HB 355 to provide that in areas with ongoing general adjudications, reinstatements of small applications that had lapsed were to be evaluated as part of the adjudication process. HB 94 provides the State Engineer with the discretion to issue a certificate before evaluating the claim as part of the general adjudication.

HB 95 - General Adjudication Water Amendments
(Rep. Timothy D. Hawkes)
House Bill 95 is a "clean up" bill proposed by the state engineer that would amend the General Adjudication statutes to: (1) better define what is required in a written objection to a proposed determination or an addendum thereto; (2) prohibit the filing of water user claims after the final summons stage of the General Adjudication is completed; and (3) make several minor technical corrections to the language in the existing statutes.

HB 96 - Water Forfeiture Amendments
(Rep. Timothy D. Hawkes)
House Bill 96 is another "clean up" bill proposed by the state engineer that would amend the water forfeiture statute, Utah Code section 73-1-4, to: (1) require that a lease be in writing and have an specific termination date before it qualifies as an exception to the forfeiture provisions; (2) limit the time to seven years that an exception to the forfeiture provisions apply where use of a reservoir is limited due to safety, regulatory, or engineering restrictions; (3) allow the state engineer to establish rules regarding the evidence that is to be submitted by a public water supplier in order to qualify for an exemption to the forfeiture provisions when holding water for the reasonable future water needs of the public; and (4) make several minor technical corrections to the language in the existing forfeiture statute.

HB 105 - Water Facilities Amendments
(Rep. Logan Wilde)
House Bill 105 would expand the existing protections provided to owners and operators of water facilities and to water apportionment officials. These protections are proposed to be separated into three separate scenarios, including where a person: (1) maliciously interferes with, damages, destroys, or removes a water facility; (2) intentionally or knowingly makes an unauthorized connection to water facility; and (3) unlawfully interferes with a water apportionment official in his or her authorized duties. There is a different standard of conduct required for each of these three scenarios. Presently, the "unlawfully interferes" standard applies to both the first and third scenario and the code does not address the second scenario. The definition of water facility is expanded to include all water facilities "used for the diversion, transportation, distribution, measurement, collection, or storage of water, stormwater, wastewater, or sewage." The bill would apply this same expanded definition to the statute governing obstructing or changing water facilities, whereas the law currently applies only to obstructing or changing water canals and/or water courses.

HB 130 - Water Use Amendments
(Rep. Timothy D. Hawkes)
House Bill 130 would modify Section 73-3-3 of the Utah Code to expressly authorize split-season and fixed-time change applications. In particular, the bill would allow holders of a perfected water right to "split" their right by allowing others to use or lease their rights for a portion of the applicable periods of use. These split-season change applications could be approved for a period of up to ten years. Similarly, for fixed time change applications, water right holders could request a change in how, where, and when they use their water right for a period of up to ten years. With a few limited exceptions, Utah law currently requires most change applications be temporary changes that cannot exceed one year or permanent changes. The bill is intended to provide greater flexibility on how water rights are used to encourage water sharing among multiple uses to help address growing water demands. Notably, the Governor's 2017 Water Strategy also identifies split season leases as a possible tool for addressing competing water demands.

HB 156 - Water Amendments and Education Entities
(Rep. Stephen G. Handy)
House Bill 156 modifies the list of public entities for purposes of categorizing public water suppliers under Utah's water nonuse statute, Utah Code section 73-1-4. Institutions of higher education that are part of the state system of higher education are added to the list of public entities. The purpose of the bill is therefore to allow the University of Utah, Utah State University, and other state institutions of higher education to qualify as public water suppliers. The bill also makes other minor wording edits to the nonuse statute.

HB 166 - Watershed Councils
(Rep. Timothy D. Hawkes)
House Bill 166 would enact the Watershed Councils Act in response to  a recommendation in Section 9.9 of the 2017 Recommended State Water Strategy report generated by the Governor's Water Strategy Advisory Team.  The new Act would divide the state into 12 different watersheds or drainage basins and would create a state watersheds council with defined membership.  The Act would also allow creation of local watershed council on a voluntary basis.  The primary purpose of these councils is to provide a forum for discussions on water policy and water resource issues.  These councils would be open to the public and would be subject to the Open and Public Meetings Act as well as the Government Records Access and Management Act.

HB 168 - Public Water Supplier Relocation Amendments
(Rep. Timothy D. Hawkes)
House Bill 168 amends provisions related to reimbursement of costs by UDOT for relocation of water facilities. Currently, UDOT is required to pay 100% of relocation costs for utilities owned by political subdivisions of the state, including cities, towns, and districts. Otherwise, UDOT is only required to pay 50% of the relocation costs. This bill would add public water suppliers to the list of entities that receive 100% relocation costs from UDOT.

HJR 3 - Proposal to Amend the Utah Constitution - Water Resources of Municipalities
(Rep. Keven J. Stratton)
House Joint Resolution 3 furthers the effort began last session to amend Utah's constitutional prohibition of alienating water rights and waterworks by Utah municipalities. Article XI, Section 6 forbids Utah's cities and towns to "directly or indirectly, lease, sell, alien, or dispose of any waterworks, water rights, or sources of supply." This provision has often been considered an anachronism from long ago. It also required municipalities to be creative, only selling "surplus" water and exchange rather than sell water rights or water shares, or form a district, not subject to this prohibition, to hold water rights. A likely unintended consequence of this ban is that the Town of Alta, that receives all drinking water under a contract with Salt Lake City, only has surplus water that could be cut off, with thirty days' notice, if no longer surplus to Salt Lake City.
In place of the absolute prohibition, new language will continue to ban the outright sale, lease, or alienation, but will allow water right exchanges and the designation of service areas outside of the municipal limits and preserve and maintain those water rights and sources of supply to serve those within the entire service area. It will also recognize the long-utilized practice of exchanging water rights and sources by municipalities. In other words, not much will change.
If passed, this proposed constitutional amendment will next be submitted to the voters of Utah.

SB 26 - Water Banking Amendments
(Sen. Jani Iwamoto)
Senate Bill 26 creates a water banking program in Utah. A water bank is a market tool that facilitates the voluntary, temporary transfer of water rights from one use to another. Most other western states have some form of banking, and the bill would further a number of recommendations in the Governor's 2017 Recommended Strategy, which identified water banking as a possible tool to support agriculture while also providing water for urban and environmental needs in the face of Utah's growing population. The bill also responds to S.J.R. 1, which the Legislature passed during the 2019 General Session to request water banking legislation to consider during the 2020 session.
Working since 2017, a diverse group of over 70 stakeholders representing agriculture, public water suppliers, conservation groups, and other interests developed the legislation by meeting with stakeholders across Utah and reviewing water banking programs in other western states. Based on its outreach efforts, the group determined that in order to be successful in Utah, water banks must be voluntary, temporary, and local. To support these goals, the bill would create the framework for a 10-year pilot program that would authorize water right holders to create and manage water banks for their local areas. Ideally, this would allow water banks to be specifically tailored to their regions' unique conditions and needs. During the pilot period the banking program would be monitored, evaluated, and modified as needed. The Board of Water Resources would oversee the creation and operation of water banks while the State Engineer would regulate water rights deposited in a bank.
The banking program is intended to build upon and utilize existing Utah law as much as possible. For instance, to deposit a water right into a bank, a right holder would file a change application pursuant to the current process. Similarly, Section 73-3-3.5 of the Utah Code would require shareholders seeking to deposit a water right into a bank to first obtain approval from their water company. The State Engineer's Office has also indicated that it would only approve the consumptive portion of a water right for use within a water bank and that it would impose conditions where necessary to govern the right's use within a bank to avoid impacts to other users. Once the State Engineer approves a water right for use within a bank, the right would be available for others to use for a variety of uses, including water quality and environmental purposes.

SB 51 - Secondary Water Requirements
(Sen. Jacob L. Anderegg)
Senate Bill 51 is a continuation from the 2019 legislative session regarding secondary water metering. The bill requires all water suppliers that provide pressurized secondary water in first and second class counties to meter water use by December 31, 2040. Each water supplier must develop and submit a strategy to comply with the metering requirement by March 31, 2021. If the meters provide real-time data, the water supplier must make the data available to the users in an open-source format upon request. Water suppliers must also provide monthly information to each user, including the user's secondary water use in relation to other users in the area and suggestions for conserving water. With respect to funding, the bill establishes the Secondary Water Metering Restricted Account, which will be funded through legislative appropriations and will be used by the Division of Water Resources to give up to $10 million per year in grants to water suppliers to install the meters. The bill provides that no more than 25% of the funding can come from a loan from the Division of Water Resources, that no more than 50% of the funding can come from a grant through the Secondary Water Metering Restricted Account, and that at least 25% must come from the water supplier through some other funding mechanism.

SB 52 - Agricultural Water Use Amendments
(Sen. Jacob L. Anderegg)
Senate Bill 52 would require the Utah Division of Water Rights to compile and provide a report about agricultural use of water to the Natural Resources, Agriculture, and Environmental Interim Committee and the Economic Development Workforce Services Interim Committee by November 1, 2020. The report must include the following:
  • the total amount of water used for agricultural use in the State of Utah;
  • how the water used for agricultural use is distributed, including how much water is used by flood irrigation, drip irrigation, through pressurized systems, or any other irrigation method;
  • the amount of water used for agricultural use that is metered;
  • the amount of water used for agricultural use that is owned by different ownership types, including special service districts, municipalities, or private entities;
  • explanations of regional issues that impact metering of agricultural use of water; and
  • any other relevant information about metering agricultural use of water.

SB 63 - Recreational Activities Related to Public Waters
(Sen. Scott D. Sandall)
In 2010, the Utah Legislature passed HB141, which is now referred to as the Public Waters Access Act. The Public Waters Access Act provides, among other things, how recreationists may access and use the public waters in the State of Utah. SB63 seeks to amend the Public Waters Access Act to provide greater protections for private property owners along a 40 mile section of the Weber River between Holiday Park and Echo Reservoir that is considered navigable waters.
Regarding the described 40 mile section of the Weber River navigable waters, SB63 would prohibit a person who does not own the adjacent property from the following:
  • Destroying, materially damaging, removing, or altering real or personal property;
  • Altering or obstructing water flows;
  • Constructing or maintaining a structure on the bed of the river;
  • Traveling on the water by horseback, motor vehicle, off-highway vehicle, or non-motorized vehicle; and
  • Hunting
SB63 would also prohibit an individual recreating on the Weber River navigable waters from littering, destroying, or defacing public or private property, and harassing livestock or property owners. SB63 would further allow a private property owner to place a fence or other obstruction across a Weber River navigable waters as long as the fence or other obstruction is not intended to block access for recreational activity. In turn, SB63 prohibits any person from harassing an individual recreating on the Weber River navigable waters.
More broadly, SB63 would impose a class B misdemeanor on anyone trespassing on private property along any public water in the State of Utah and also impose fines, which increase with each recurring offense.