Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 242 Second Substitute (2022GS)

Sponsor

Rep. Peterson, V.

Final action

Governor Signed 3/21/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• addresses definitions;
• imposes requirements related to metering pressurized secondary water;
• provides for penalties for failure to comply with metering requirements;
• provides for grants to fund metering of certain pressurized secondary water services;
• addresses rulemaking authority; and
• makes technical changes.

Every vote on this bill

Bill text

SECONDARY WATER METERING AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Val L. Peterson
Senate Sponsor: 
Michael K. McKell
LONG TITLE
General Description:
This bill addresses secondary water metering.
Highlighted Provisions:
This bill:
▸ addresses definitions;
▸ imposes requirements related to metering pressurized secondary water;
▸ provides for penalties for failure to comply with metering requirements;
▸ provides for grants to fund metering of certain pressurized secondary water services;
▸ addresses rulemaking authority; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
73-10-34
, as last amended by Laws of Utah 2021, Chapter 354
ENACTS:
73-10-34.5
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
73-10-34
 is amended to read:
73-10-34.
Secondary water metering -- Loans and grants.
(1) As used in this section:
(a) (i) "Commercial user" means a secondary water user that is a place of business.
(ii) "Commercial user" does not include a multi-family residence, an agricultural user,
or a customer that falls within the industrial or institutional classification.
(b) "Full metering" means that use of secondary water is accurately metered by a meter
that is installed and maintained on every secondary water connection of a secondary water
supplier.
[
(b)
] 
(c)
 (i) "Industrial user" means a secondary water user that manufactures or
produces materials.
(ii) "Industrial user" includes a manufacturing plant, an oil and gas producer, and a
mining company.
[
(c)
] 
(d)
 (i) "Institutional user" means a secondary water user that is dedicated to public
service, regardless of ownership.
(ii) "Institutional user" includes a school, church, hospital, park, golf course, and
government facility.
[
(d)
] 
(e)
 (i) "Residential user" means a secondary water user in a residence.
(ii) "Residential user" includes a single-family or multi-family home, apartment,
duplex, twin home, condominium, or planned community.
[
(e)
] 
(f)
 "Secondary water" means water that is:
(i) not culinary or water used on land assessed under Title 59, Chapter 2, Part 5,
Farmland Assessment Act; and
(ii) delivered to and used by an end user for the irrigation of landscaping or a garden.
(g) "Secondary water connection" means the location at which the water leaves the
secondary water supplier's pipeline and enters into the remainder of the pipes that are owned by
another person to supply water to an end user.
[
(f)
] 
(h)
 "Secondary water supplier" means an entity that supplies pressurized
secondary water.
[
(g)
] 
(i)
 "Small secondary water retail supplier" means an entity that:
(i) supplies pressurized secondary water only to the end user of the secondary water;
and
(ii) (A) is a city, town, or metro township; or
(B) supplies 5,000 or fewer 
secondary water
 connections.
(2) (a) 
(i)
 A secondary water supplier that 
supplies secondary water within a county of
the first or second class and
 begins design work for new service on or after April 1, 2020, to a
commercial, industrial, institutional, or residential user shall meter the use of pressurized
secondary water by the users receiving that new service.
(ii) A secondary water supplier that supplies secondary water within a county of the
third, fourth, fifth, or sixth class and begins design work for new service on or after May 4,
2022, to a commercial, industrial, institutional, or residential user shall meter the use of
pressurized secondary water by the users receiving that new service.
(b) By no later than January 1, 2030, a secondary water supplier shall install and
maintain a meter of the use of pressurized secondary water by each user receiving secondary
water service from the secondary water supplier.
[
(b)
] 
(c)
 Beginning January 1, 2022, a secondary water supplier shall establish a meter
installation reserve for metering installation and replacement projects.
[
(c)
] 
(d)
 A secondary water supplier, including a small secondary water retail supplier,
may not raise the rates charged for secondary water:
(i) by more than 10% in a calendar year for costs associated with metering secondary
water unless the rise in rates is necessary because the secondary water supplier experiences a
catastrophic failure or other similar event; or
(ii) unless, before raising the rates on the end user, the entity charging the end user
provides a statement explaining the basis for why the needs of the secondary water supplier
required an increase in rates.
[
(d)
] 
(e)
 (i) A secondary water supplier that provides pressurized secondary water to a
commercial, industrial, institutional, or residential user shall develop a plan, or if the secondary
water supplier previously filed a similar plan, update the plan for metering the use of the
pressurized water.
(ii) The plan required by this Subsection [
(2)(d)
] 
(2)(e)
 shall be filed or updated with
the Division of Water Resources by no later than December 31, 2025, and address the process
the secondary water supplier will follow to implement metering, including:
(A) the costs of full metering by the secondary water supplier;
(B) how long it would take the secondary water supplier to complete full metering [
by
no later than December 31, 2040
], including an anticipated beginning date and completion
date
, except a secondary water supplier shall achieve full metering by no later than January 1,
; and
(C) how the secondary water supplier will finance metering.
(3) A secondary water supplier shall on or before March 31 of each year, report to the
Division of Water Rights:
(a) for commercial, industrial, institutional, and residential users whose pressurized
secondary water use is metered, the number of acre feet of pressurized secondary water the
secondary water supplier supplied to the commercial, industrial, institutional, and residential
users during the preceding 12-month period;
(b) the number of secondary water meters within the secondary water supplier's service
boundary;
(c) a description of the secondary water supplier's service boundary;
(d) the number of 
secondary water
 connections in each of the following categories
through which the secondary water supplier supplies pressurized secondary water:
(i) commercial;
(ii) industrial;
(iii) institutional; and
(iv) residential;
(e) the total volume of water that the secondary water supplier receives from the
secondary water supplier's sources; and
(f) the dates of service during the preceding 12-month period in which the secondary
water supplier supplied pressurized secondary water.
(4) (a) Beginning July 1, 2019, the Board of Water Resources may make up to
$10,000,000 in low-interest loans available each year:
(i) from the Water Resources Conservation and Development Fund, created in Section
73-10-24
; and
(ii) for financing the cost of secondary water metering.
(b) The Division of Water Resources and the Board of Water Resources shall make
rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
establishing the criteria and process for receiving a loan described in this Subsection (4), except
the rules may not include prepayment penalties.
(5) (a) Beginning July 1, 2021, subject to appropriation, the Division of Water
Resources may make matching grants each year for financing the cost of secondary water
metering for a commercial, industrial, institutional, or residential user by a small secondary
water retail supplier that:
(i) is not for new service described in Subsection (2)(a); and
(ii) matches the amount of the grant.
(b) For purposes of issuing grants under this section, the division shall prioritize the
small secondary water retail suppliers that can demonstrate the greatest need or greatest
inability to pay the entire cost of installing secondary water meters.
(c) The amount of a grant under this Subsection (5) may not:
(i) exceed 50% of the small secondary water retail supplier's cost of installing
secondary water meters; or
(ii) supplant federal, state, or local money previously allocated to pay the small
secondary water retail supplier's cost of installing secondary water meters.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
Board of Water Resources shall make rules establishing:
(i) the procedure for applying for a grant under this Subsection (5); and
(ii) how a small secondary water retail supplier can establish that the small secondary
water retail supplier meets the eligibility requirements of this Subsection (5).
[
(6) This section does not apply to a secondary water supplier to the extent that:
]
[
(a) the secondary water supplier supplies secondary water within a county of the third,
fourth, fifth, or sixth class; or
]
[
(b) there is no meter that a meter manufacturer will warranty because of the water
quality within a specific location.
]
[
(7)
] 
(6)
 Nothing in this section affects a water right holder's obligation to measure and
report water usage as described in Sections 
73-5-4
 and 
73-5-8
.
(7) If a secondary water supplier fails to comply with Subsection (2)(b), the secondary
water supplier:
(a) beginning January 1, 2030, may not receive state money for any purpose until the
secondary water supplier completes full metering; and
(b) is subject to an enforcement action of the state engineer in accordance with
Subsection (8).
(8) (a) (i) The state engineer shall commence an enforcement action under this
Subsection (8) if the state engineer receives a referral from the director of the Division of
Water Resources.
(ii) The director of the Division of Water Resources shall submit a referral to the state
engineer if the director:
(A) finds that a secondary water supplier fails to fully meter secondary water as
required by this section; and
(B) determines an enforcement action is necessary to conserve or protect a water
resource in the state.
(b) To commence an enforcement action under this Subsection (8), the state engineer
shall issue a notice of violation that includes notice of the administrative fine to which a
secondary water supplier is subject.
(c) The state engineer's issuance and enforcement of a notice of violation is exempt
from Title 63G, Chapter 4, Administrative Procedures Act.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
state engineer shall make rules necessary to enforce a notice of violation, that includes:
(i) provisions consistent with this Subsection (8) for enforcement of the notice if a
secondary water supplier to whom a notice is issued fails to respond to the notice or abate the
violation;
(ii) the right to a hearing, upon request by a secondary water supplier against whom the
notice is issued; and
(iii) provisions for timely issuance of a final order after the secondary water supplier to
whom the notice is issued fails to respond to the notice or abate the violation, or after a hearing
held under Subsection (8)(d)(ii).
(e) A person may not intervene in an enforcement action commenced under this
section.
(f) After issuance of a final order under rules made pursuant to Subsection (8)(d), the
state engineer shall serve a copy of the final order on the secondary water supplier against
whom the order is issued by:
(i) personal service under Utah Rules of Civil Procedure, Rule 5; or
(ii) certified mail.
(g) (i) The state engineer's final order may be reviewed by trial de novo by the district
court in Salt Lake County or the county where the violation occurred.
(ii) A secondary water supplier shall file a petition for judicial review of the state
engineer's final order issued under this section within 20 days from the day on which the final
order was served on the secondary water supplier.
(h) The state engineer may bring suit in a court of competent jurisdiction to enforce a
final order issued under this Subsection (8).
(i) If the state engineer prevails in an action brought under Subsection (8)(g) or (h), the
state may recover court costs and a reasonable attorney fee.
(j) As part of a final order issued under this Subsection (8), the state engineer shall
order that a secondary water supplier to whom an order is issued pay an administrative fine
equal to:
(i) $10 for each secondary water connection of the secondary water supplier for failure
to comply with full metering by January 1, 2030;
(ii) $20 for each secondary water connection of the secondary water supplier for failure
to comply with full metering by January 1, 2031;
(iii) $30 for each secondary water connection of the secondary water supplier for
failure to comply with full metering by January 1, 2032;
(iv) $40 for each secondary water connection of the secondary water supplier for
failure to comply with full metering by January 1, 2033; and
(v) $50 for each secondary water connection of the secondary water supplier for failure
to comply with full metering by January 1, 2034, and for each subsequent year the secondary
water supplier fails to comply with full metering.
(k) Money collected under this Subsection (8) shall be deposited into the Water
Resources Conservation and Development Fund, created in Section 
73-10-24
.
(9) This section does not apply to a secondary water supplier to the extent that the
secondary water supplier:
(a) is unable to obtain a meter that a meter manufacturer will warranty because of the
water quality within a specific location served by the secondary water supplier; and
(b) submits reasonable proof to the Division of Water Resources that the secondary
water supplier is unable to obtain a meter as described in Subsection (9)(a).
Section 2. Section 
73-10-34.5
 is enacted to read:
 73-10-34.5.
Grant money for existing secondary water metering to facilitate full
metering.
(1) As used in this section:
(a) "Applicant" means a secondary water supplier or group of secondary water
suppliers that applies for a grant under this section.
(b) "Board" means the Board of Water Resources.
(c) "Division" means the Division of Water Resources.
(d) "Project" means the purchase or installation of a meter for a secondary water
system that as of May 4, 2022, provides secondary water service that is not metered.
(e) "Secondary water" means the same as that term is defined in Section 
73-10-34
.
(f) "Secondary water connection" means the same as that term is defined in Section
73-10-34
.
(g) "Secondary water supplier" means the same as that term is defined in Section
73-10-34
.
(2) (a) The board may issue grants in an amount appropriated by the Legislature in
accordance with this section to an applicant to fund projects for meters on secondary water
systems that before May 4, 2022, provide secondary water service that is not metered.
(b) The board may not issue a grant under this section to fund:
(i) metering of secondary water for service that begins on or after May 4, 2022; or
(ii) the replacement or repair of an existing secondary water meter.
(c) Notwithstanding the other provisions of this section, the board may issue a grant
under this section to a secondary water supplier to reimburse the secondary water supplier for
the costs incurred by the secondary water supplier that are associated with installing meters on
a secondary water system on or after March 3, 2021, but before May 4, 2022, except that the
grant issued under this Subsection (2)(c):
(i) shall be included in calculating the total grant amount under Subsections (3)(a)
through (c);
(ii) may not exceed 70% of the costs associated with a project described in this
Subsection (2)(c), including installation or purchase of meters; and
(iii) shall comply with Subsection (6).
(3) (a) A secondary water supplier with 7,000 secondary water connections or less is
eligible for a total grant amount under this section of up to $5,000,000.
(b) A secondary water supplier with more than 7,000 secondary water connections is
eligible for a total grant amount under this section of up to $10,000,000.
(c) If a secondary water supplier applies for a grant as part of a group of secondary
water suppliers, the total grant amount described in Subsection (3)(a) or (b) applies to each
member of the group and is not based on the number of secondary water connections of the
entire group.
(d) (i) Subject to the other provisions of this section, a grant may not exceed the
following amounts for the costs associated with a project, including installation or purchase of
meters:
(A) for calendar year 2022, 70% of the costs of a project;
(B) for calendar year 2023, 70% of the costs of a project;
(C) for calendar year 2024, 65% of the costs of a project;
(D) for calendar year 2025, 60% of the costs of a project; and
(E) for calendar year 2026, 50% of the costs of a project.
(ii) Beginning with calendar year 2027, a grant under this section shall consist of
providing a meter or funding to obtain a meter, which may not exceed the following for costs
associated with the project:
(A) for calendar year 2027, 40% of the costs of a project;
(B) for calendar year 2028, 30% of the costs of a project;
(C) for calendar year 2029, 20% of the costs of a project; and
(D) for calendar year 2030, 10% of the costs of a project.
(e) A secondary water supplier may pay the secondary water supplier's portion of the
costs of a project through a loan from the board under Section 
73-10-34
 by filing a separate
application with the board.
(f) The costs associated with a project may include costs to allow open source and real
time data communication between a meter and other device designed to manage use of
secondary water, such as a sprinkler timer.
(4) (a) (i) To obtain a grant under this section, an applicant shall submit an application
with the division during a period of time designated by the board.
(ii) If there remains money described in Subsection (2) after the grants for applications
submitted during the time period described in Subsection (4)(a) are awarded, the board may
designate one or more additional time periods so that the entire amount described in Subsection
(2) is awarded by December 31, 2024.
(b) An application submitted to the division shall include:
(i) a detailed project cost estimate including meter costs and installation costs;
(ii) a total number of pressurized secondary water connections in the applicable
secondary water supplier's system;
(iii) the number of meters to be installed under the grant;
(iv) a detailed estimated secondary water use reduction including:
(A) average lot size calculations;
(B) average irrigated acreage; and
(C) estimated water applied before the project versus after completion of the project;
(v) the timeline for purchase and installation of meters under the project;
(vi) a stamp and signature of a professional engineer who is:
(A) licensed under Title 58, Chapter 22, Professional Engineers and Professional Land
Surveyors Licensing Act; and
(B) responsible for the work of the project;
(vii) an agreement to:
(A) provide an educational component for end users as determined by the division by
rule made in accordance with Title 63G, Utah Administrative Rulemaking Act, either on a
monthly statement or by a customer specific Internet portal that provides information on the
customer's usage more frequently than monthly; or
(B) bill according to usage using a tiered conservation rate and provide an educational
component described in Subsection (4)(b)(vii)(A); and
(viii) additional information the board considers helpful.
(5) (a) The division shall:
(i) review and prioritize an application submitted under Subsection (4); and
(ii) recommend to the board which applicants should be awarded a grant under this
section.
(b) In prioritizing applications under this Subsection (5), the division shall rank the
applicants on the basis of the following weighted factors:
(i) 60% weight based on the ratio of estimated water use reduction divided by total
state investment;
(ii) 20% weight based on an applicant facing current or potential water shortages when
installation of meters and subsequent water use reductions will result in delaying or eliminating
the need for new water development; and
(iii) 20% weight based on a project's accelerated construction schedule, prompt start,
and prompt finish.
(6) As a condition of receiving a grant under this section, the recipient shall enter into
an agreement with the board to use the grant money. The agreement shall:
(a) be executed by no later than December 31, 2024; and
(b) require that the grant money be spent by December 31, 2026, and the project
completed under the terms of the grant.
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
consistent with this section, the board may make rules establishing the procedure for applying
for a grant under this section.