Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 277 Second Substitute (2023GS)

Sponsor

Sen. Sandall, S.

Final action

Governor Signed 3/14/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• modifies the purposes for which money in the Water Infrastructure Restricted Account may be used;
• provides for transfer of certain loan payments from the Water Resources Conservation and Development Fund to the Water Infrastructure Restricted Account;
• codifies a grant program for agricultural water optimization, including:
• defining terms;
• creating the Agricultural Water Optimization Committee;
• providing powers and duties of the committee which includes rulemaking;
• directing the process by which grants are to be issued; and
• providing a sunset date;
• provides for public information and reporting regarding the grant program;
• addresses agricultural water optimization change applications and water savings;
• repeals provisions related to the Agricultural Water Optimization Task Force; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

WATER CONSERVATION AND AUGMENTATION
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Scott D. Sandall
House Sponsor: 
Casey Snider
LONG TITLE
General Description:
This bill addresses the optimal use of water in the state.
Highlighted Provisions:
This bill:
▸ modifies the purposes for which money in the Water Infrastructure Restricted
Account may be used;
▸ provides for transfer of certain loan payments from the Water Resources
Conservation and Development Fund to the Water Infrastructure Restricted
Account;
▸ codifies a grant program for agricultural water optimization, including:
• defining terms;
• creating the Agricultural Water Optimization Committee;
• providing powers and duties of the committee which includes rulemaking;
• directing the process by which grants are to be issued; and
• providing a sunset date;
▸ provides for public information and reporting regarding the grant program;
▸ addresses agricultural water optimization change applications and water savings;
▸ repeals provisions related to the Agricultural Water Optimization Task Force; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2024:
▸ to General Fund Restricted - Agricultural Water Optimization Account, as a
one-time appropriation:
• from General Fund, One-time, $170,000,000;
▸ to General Fund Restricted - Agricultural Water Optimization Account, as a
one-time appropriation:
• from Federal Funds - American Rescue Plan, One-time, $30,000,000;
▸ to Department of Agriculture and Food - Resource Conservation, as a one-time
appropriation:
• from Agricultural Water Optimization Account, One-time, $125,000,000;
▸ to Department of Natural Resources - Water Resources Conservation and
Development Fund, as a one-time appropriation:
• From General Fund Restricted - Water Infrastructure Restricted Account,
One-time ($5,000,000);
▸ to Department of Natural Resources - Water Resources Conservation and
Development Fund, as an ongoing appropriation:
• From General Fund Restricted - Water Infrastructure Restricted Account,
$50,000,000; and
▸ to Department of Natural Resources - Water Resources, as a one-time
appropriation:
• From General Fund Restricted - Water Infrastructure Restricted Account,
One-time, $5,000,000.
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
63I-1-273
, as last amended by Laws of Utah 2022, Chapters 68, 79
73-10-25
, as last amended by Laws of Utah 1991, First Special Session, Chapter 4
73-10g-103
, as enacted by Laws of Utah 2015, Chapter 458
73-10g-104
, as last amended by Laws of Utah 2016, Chapter 309
73-10g-204
, as last amended by Laws of Utah 2022, Chapter 79
ENACTS:
73-10g-203.5
, Utah Code Annotated 1953
73-10g-205
, Utah Code Annotated 1953
73-10g-206
, Utah Code Annotated 1953
73-10g-207
, Utah Code Annotated 1953
73-10g-208
, Utah Code Annotated 1953
REPEALS:
73-10g-202
, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 4
73-10g-203
, as last amended by Laws of Utah 2020, Chapter 33
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63I-1-273
 is amended to read:
63I-1-273.
Repeal dates: Title 73.
(1) Title 73, Chapter 27, Legislative Water Development Commission, is repealed
January 1, 2031.
(2) Title 73, Chapter 10g, Part 2, Agricultural Water Optimization, is repealed July 1,
2028.
[
(2) In relation to Title 73, Chapter 10g, Part 2, Agricultural Water Optimization, on
July 1, 2025:
]
[
(a) Section 
73-10g-202
 is repealed; and
]
[
(b) Section 
73-10g-203
 is repealed.
]
(3) Section 
73-18-3.5
, which authorizes the Division of Outdoor Recreation to appoint
an advisory council that includes in the advisory council's duties advising on boating policies,
is repealed July 1, 2024.
(4) Title 73, Chapter 30, Great Salt Lake Advisory Council Act, is repealed July 1,
2027.
(5) In relation to Title 73, Chapter 31, Water Banking Act, on December 31, 2030:
(a) Subsection 
73-1-4
(2)(e)(xi) is repealed;
(b) Subsection 
73-10-4
(1)(h) is repealed; and
(c) Title 73, Chapter 31, Water Banking Act, is repealed.
Section 2. Section 
73-10-25
 is amended to read:
73-10-25.
Contents of fund -- Investment -- Contributions.
(1) The Water Resources Conservation and Development Fund consists of:
(a) money appropriated to it by the Legislature;
(b) money received from the sale of project water and power, less operating and
maintenance costs;
(c) annual payments on contracts for projects constructed under Section 
73-10-24
 or
the State Water Conservation Program; and
(d) other money or tax revenues designated by the Legislature to be credited to the
Water Resources Conservation and Development Fund.
(2) [
All money
] 
Money
 deposited into the Water Resources Conservation and
Development Fund shall be invested by the state treasurer with interest accruing to the Water
Resources Conservation and Development Fund, except for payments, if any, necessary to
comply with Section 148(f), Internal Revenue Code of 1986.
(3) [
Contributions
] 
A contribution
 of money, property, or equipment may be received
from [
any
] 
a
 political subdivision of the state, federal agency, water users' association, 
or
person[
, or corporation
] for use in carrying out the purposes of Section 
73-10-24
.
(4) Notwithstanding Subsection (1), the division shall transfer a payment on a loan to
the Water Infrastructure Restricted Account, created in Section 
73-10g-103
, if the loan:
(a) is issued from the Water Resources Conservation and Development Fund on or
after July 1, 2023; and
(b) relates to a project described in Subsection 
73-10g-104
(4).
Section 3. Section 
73-10g-103
 is amended to read:
73-10g-103.
Creation of the Water Infrastructure Restricted Account.
(1) (a) There is created a restricted account in the General Fund known as the "Water
Infrastructure Restricted Account."
(b) The restricted account shall earn interest.
(2) The restricted account consists of money generated from the following sources:
(a) voluntary contributions made to the division for the construction, operation, or
maintenance of state water projects;
(b) appropriations made to the [
fund
] 
restricted account
 by the Legislature; [
and
]
(c) interest earned on the restricted account[
.
]
; and
(d) money transferred to the restricted account under Section 
73-10-25
.
(3) Subject to appropriation, the division and the board shall manage the restricted
account created in Subsection (1) in accordance with this chapter.
Section 4. Section 
73-10g-104
 is amended to read:
73-10g-104.
Authorized use of the Water Infrastructure Restricted Account.
Money in the restricted account is to be used for:
(1) the development of the state's undeveloped share of the Bear and Colorado rivers,
pursuant to existing interstate compacts governing both rivers as described in Chapter 26, Bear
River Development Act, and Chapter 28, Lake Powell Pipeline Development Act;
(2) repair, replacement, or improvement of federal water projects for local sponsors in
the state [
of Utah
] when federal funds are not available; [
and
]
(3) study and development of rules, criteria, targets, processes, and plans, as described
in Subsection 
73-10g-105
(3)[
.
]
; and
(4) a project that benefits the Colorado River drainage in Utah, including projects for
water reuse, desalinization, building of dams, or water conservation, if a county or municipality
that benefits from the project:
(a) requires a new residential subdivision follow the regional conservation level of .59
acre-feet regardless of whether the outside water is potable, reuse, or secondary water;
(b) adopts and implements the local water conservancy district's emergency drought
contingency plan;
(c) adopts and implements the local water conservancy district's grass rebate program's
maximum grass restrictions;
(d) prohibits grass in new retail, industrial, or commercial facility landscaping;
(e) has reuse water be managed by the local water conservancy district;
(f) does not withdraw water from an aquifer in excess of the safe yield of the aquifer as
defined in Section 
73-5-15
;
(g) adopts and implements excess water use surcharges;
(h) prohibits private water features in new development, such as a fountain, pond, or
ski lake; and
(i) prohibits large grassy areas in new development, unless the large grassy area is open
to the general public.
Section 5. Section 
73-10g-203.5
 is enacted to read:
 73-10g-203.5.
Definitions.
As used in this part:
(1) "Account" means the Agricultural Water Optimization Account created in Section
73-10g-204
.
(2) "Agricultural water optimization" means the implementation of agricultural and
water management practices that maintain viable agriculture while reducing water depletion to
enhance water availability and minimize impacts on water supply, water quality, and the
environment.
(3) "Change application" means an application filed under Section 
73-3-3
.
(4) "Committee" means the Agricultural Water Optimization Committee created in
Section 
73-10g-205
.
(5) "Conservation commission" means the conservation commission created in Section
4-18-104
.
(6) "Department" means the Department of Agriculture and Food.
(7) "Depletion reduction" means a net decrease in water consumed accomplished by
implementing water optimization practices during beneficial use of water under an approved
water right.
(8) "Diversion reduction" means a decrease in net diversion amount from that allowed
under a water right accomplished by implementation of water optimization practices.
(9) "Funding application" means an application filed under Section 
73-10g-206
.
(10) "Saved water" means the water quantified as depletion reduction or diversion
reduction in a final order approving a change application filed in conjunction with an
agricultural water optimization project.
Section 6. Section 
73-10g-204
 is amended to read:
73-10g-204.
Agricultural Water Optimization Account.
[
(1) As used in this section:
]
[
(a) "Account" means the Agricultural Water Optimization Account created in
Subsection (2).
]
[
(b) "Agricultural water optimization" means the implementation of agricultural and
water management practices that maintain or increase viable agriculture while minimizing
negative impacts on water supply, water quality, and the environment.
]
[
(c) "Department" means the Department of Agriculture and Food.
]
[
(2)
] 
(1)
 There is created a restricted account within the General Fund called the
"
Agricultural Water Optimization Account.
"
[
(3)
] 
(2)
 The account consists of:
(a) appropriations from the Legislature;
(b) federal funds; and
(c) grants or donations from other public or private sources.
[
(4)
] 
(3)
 Subject to appropriation, the [
department
] 
conservation commission
 may use
money in the account to issue grants 
in accordance with Section 
73-10g-206
 to improve
agricultural water optimization.
[
(5)
] 
(4)
 Until December 31, 2024, the department may loan up to $3,000,000 of
General Fund money in the account to the Agriculture Resource Development Fund, subject to
the conditions described in Section 
4-18-106
.
[
(6)
] 
(5)
 (a) The department shall maintain the [
Agriculture Water Optimization
Account
] 
account
 and record [
all
] 
the
 debits and credits made to the account by the department.
(b) The Office of the Treasurer shall deposit interest and other earnings derived from
investment of money in the [
Agriculture Water Optimization Account
] 
account
 into the
account.
(6) The department and the Department of Natural Resources may use money in the
account for the administration of this part, except that the aggregate amount expended under
this Subsection (6) may not exceed 1.5% of the money appropriated to the grant program
described in Section 
73-10g-206
.
Section 7. Section 
73-10g-205
 is enacted to read:
 73-10g-205.
Agricultural Water Optimization Committee.
(1) There is created in the department a committee known as the "Agricultural Water
Optimization Committee" that consists of:
(a) the commissioner of the department, or the commissioner's designee;
(b) the director of the division, or the director's designee;
(c) the director of the Division of Water Rights, or the director's designee;
(d) the dean of the College of Agriculture and Applied Science from Utah State
University, or the dean's designee;
(e) one individual representing local conservation districts created by Title 17D,
Chapter 3, Conservation District Act, appointed by the executive director of the Department of
Natural Resources;
(f) one individual representing water conservancy districts, appointed by the executive
director of the Department of Natural Resources; and
(g) three Utah residents representing the interests of the agriculture industry appointed
by the executive director of the Department of Natural Resources.
(2) (a) An individual appointed under Subsection (1) shall serve for a term of four
years.
(b) Notwithstanding the requirements of Subsection (2)(a), the executive director of the
Department of Natural Resources shall, at the time of appointment or reappointment, adjust the
length of terms to ensure that the terms of appointed members are staggered so that
approximately half of the appointed members are appointed every two years.
(3) (a) The presence of five members constitutes a quorum.
(b) The vote of five members constitutes the transaction of business by the committee.
(c) The committee shall select one of the committee's members to be chair. The
committee may select a member to be vice chair to act in place of the chair:
(i) during the absence or disability of the chair; or
(ii) as requested by the chair.
(d) The committee shall convene at the times and places prescribed by the chair.
(4) A member may not receive compensation or benefits for the member's service, but
may receive per diem and travel expenses in accordance with:
(a) Section 
63A-3-106
;
(b) Section 
63A-3-107
; and
(c) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
(5) The department shall provide administrative support to the committee.
(6) The committee shall make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, establishing:
(a) eligibility requirements for a grant issued under Section 
73-10g-206
, except that the
eligibility requirements shall:
(i) require at least a match for grant money of 50% of the total costs;
(ii) consider the statewide need to distribute grant money;
(iii) require a grant recipient to construct or install and maintain one or more measuring
devices as necessary to comply with Section 
73-5-4
 and rules adopted by the Division of Water
Rights regarding installation, use, and maintenance of devices to measure water use and to
demonstrate water use in accordance with a project funded by a grant; and
(iv) require a grant recipient to report water diversion and use measurements to the
state engineer pursuant to Section 
73-5-4
 and rules made by the state engineer, in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for water measurement and
reporting;
(b) the process for applying for a grant issued under Section 
73-10g-206
; and
(c) preliminary screening criteria to be used by the department under Subsection
73-10g-206
(2)(d).
(7) The committee shall, in coordination with the division:
(a) as of July 1, 2023, assume oversight of all remaining research and contracts of the
previous Agricultural Water Optimization Task Force activities;
(b) post research to address and account for farm economics at the enterprise and
community level that affects agricultural water optimization and encourage market behavior
that financially rewards agricultural water optimization practices;
(c) oversee research to identify obstacles to and constraints upon optimization of
agricultural water use, and to recommend management tools, technologies, and other
opportunities to optimize agricultural water use as measured at the basin level; and
(d) facilitate benefits for farmers who optimize water use and protect water quality.
(8) The committee shall comply with Section 
73-10g-206
 related to grants issued under
this part.
Section 8. Section 
73-10g-206
 is enacted to read:
 73-10g-206.
Agricultural water optimization grants -- Demonstration of water
savings.
(1) The conservation commission may issue a grant described in Subsection
73-10g-204
(3) in accordance with the procedures in this section.
(2) (a) The committee shall establish funding application periods during which a
person may apply for a grant under this part.
(b) During a funding application period, a person may file a funding application with
the department for preliminary screening of eligibility to receive a grant under this part,
including requisite water savings.
(c) The department shall screen the funding applications for eligibility.
(d) If the department determines that an applicant meets eligibility requirements and
proposes water savings, the department shall provide the applicant preliminary approval.
(e) After receiving preliminary approval under Subsection (2)(d), the applicant shall
engage in a pre-filing consultation with the Division of Water Rights under Subsection
73-3-3
(2) to determine whether a change application is required to accomplish the project
proposed in the funding application or to quantify saved water that may be made available for
beneficial use as part of the project.
(f) Once the Division of Water Rights determines whether the person is required to file
a change application, the person may complete the funding application process and file the
completed funding application with the committee.
(g) The committee shall review completed funding applications to rank the funding
applications and recommend to the conservation commission which applicants should receive a
grant under this part for the relevant funding application period.
(h) The conservation commission may issue a grant under this section only after receipt
of the recommendations of the committee.
(3) If the conservation commission issues a grant under this part, before the grant
recipient may receive the grant money, the grant recipient shall:
(a) enter into a contract with the department that includes:
(i) the expectations for the grant recipient;
(ii) the life expectancy of a project;
(iii) the process of certifying completion; and
(iv) design requirements;
(b) file any needed change application and obtain a final order from the state engineer
approving the change application, including any judicial review of the state engineer's order;
and
(c) demonstrate how the grant recipient shall comply with the requirements of the final
order approving the related change application.
(4) A grant recipient shall comply with the monitoring and reporting requirements
under the contract described in Subsection (3).
(5) The department shall:
(a) monitor the grant related activities of a grant recipient;
(b) certify a project funded by a grant once the project is complete;
(c) determine whether there are funding sources other than the account to fund the
grant; and
(d) provide information needed by the division or the Division of Water Rights to
fulfill the division's or the Division of Water Rights' statutory duties, including those
designated in this chapter.
(6) The department may:
(a) conduct outreach campaigns related to the grant program, including the program's
purpose and expectations for grant recipients;
(b) solicit funding applications and assist persons in applying for a grant under this
part;
(c) assist grant recipients in developing a project; and
(d) coordinate with federal agencies and the division for evaluation of funding
applications and for assistance with implementing projects for which funding has been
provided under this part.
(7) Grant money may be used by the department or a grant recipient for the hiring of
third-party consultants as appropriate to complete a project funded by grant money.
(8) The division, upon request from the committee, may assist with evaluation of
funding applications and implementation of projects funded under this part.
Section 9. Section 
73-10g-207
 is enacted to read:
 73-10g-207.
Division public information and reporting.
(1) The division shall, in coordination with the department and the Division of Water
Rights, annually compile and publish a report on:
(a) completed projects;
(b) saved water made available from agricultural water optimization projects; and
(c) the effectiveness of the agricultural water optimization funding programs
established by this part.
(2) On or before November 30 of each year, the committee, division, and the Division
of Water Rights shall jointly present the annual report to:
(a) the Legislative Water Development Commission;
(b) the Natural Resources, Agriculture, and Environment Interim Committee;
(c) the Utah Water Task Force within the Department of Natural Resources; and
(d) the Utah Watersheds Council.
(3) The division shall publish reports from research described in Subsection
73-10g-205
(7).
Section 10. Section 
73-10g-208
 is enacted to read:
 73-10g-208.
Water use pursuant to a water optimization change application.
(1) A person entitled to file a change application under Section 
73-3-3
 may file a
change application in connection with an agricultural water optimization project, regardless of
whether the agricultural water optimization project is funded under this part:
(a) to change the nature of use of the depletion reduction amount of an agricultural
water right to saved water;
(b) to quantify saved water; and
(c) to allow beneficial use of saved water separate from the agricultural use, so long as
there is no enlargement of depletion or diversion amounts.
(2) Saved water, including depletion reduction and diversion reduction, is considered
beneficial use as required by Sections 
73-1-3
 and 
73-3-1
.
(3) The state engineer may make rules as provided under Section 
73-2-1
 and Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, regarding implementation of this section.
Section 11. 
Repealer.
This bill repeals:
Section 
73-10g-202
,
Agricultural Water Optimization Task Force.
Section 
73-10g-203
,
Duties of the task force.
Section 12. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2023, and ending June 30, 2024. These are additions to amounts previously appropriated for
fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 1
To General Fund Restricted - Agricultural Water Optimization Account
 From General Fund, One-time
170,000,000
 From Federal Funds - American Rescue Plan, One-time
30,000,000
 Schedule of Programs:
 Agricultural Water Optimization Account 200,000,000
 The Legislature intends that funds appropriated by this item from the American Rescue
Plan Act may only be expended or distributed for purposes that comply with the
legal requirements and federal guidelines under the American Rescue Plan Act of 2021.
Additionally, the Legislature intends that the agency administering these funds meet all
compliance and reporting requirements associated with these funds, as directed by the
Governor's Office of Planning and Budget.
ITEM 2
To Department of Agriculture and Food - Resource Conservation
 From Agricultural Water Optimization Account, One-time
125,000,000
 Schedule of Programs:
 Water Quantity 125,000,000
 The Legislature intends that the $125,000,000 one-time from the Agricultural Water
Optimization Account provided by this item be expended as follows:
 (1) $25,000,000 on general water optimization;
 (2) $25,000,000 on subsurface drip irrigation;
 (3) $25,000,000 on surge irrigation;
 (4) $25,000,000 on delivery, measurement, and reporting of water use data, including
telemetry; and
 (5) $25,000,000 on canal improvements.
ITEM 3
To Department of Natural Resources - Water Resources Conservation and Development Fund
 From General Fund Restricted - Water Infrastructure
 Restricted Account, One-time
(5,000,000)
 From General Fund Restricted - Water Infrastructure
 Restricted Account
50,000,000
 Schedule of Programs:
 Water Resources Conservation and Development Fund 45,000,000
 The Legislature intends that:
 (1) the ongoing funding from the Water Infrastructure Restricted Account provided in
this item be expended as loans for projects that benefit the Colorado River drainage in Utah,
including projects for water reuse, dam construction, desalination, and other conservation
projects; and
 (2) repayments of loans described in Subsection (1) be transferred to the Water
Infrastructure Restricted Account as outlined under Section 73-10-25.
ITEM 4
To Department of Natural Resources - Water Resources
 From General Fund Restricted - Water Infrastructure
 Restricted Account, One-time
5,000,000
 Schedule of Programs:
 Construction 5,000,000
The Legislature intends that the $5,000,000 provided by this item be expended as a grant for
construction related to the Hyrum Reservoir.
Section 13. 
Effective date.
This bill takes effect on July 1, 2023.