Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 274 (2025GS)

Sponsor

Rep. Snider, Casey

Final action

Governor Signed 3/24/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• provides circumstances of when a municipality may set different water rates based in part on water conservation;
• addresses special district fees;
• defines terms;
• addresses rate setting by a retail water supplier and public water systems;
• provides for how revenues from retail rates may be spent;
• creates a presumption regarding the reasonableness of certain water rates that include water conservation as an element in determining the rate;
• modifies provisions related to the Board of Water Resources;
• addresses tiered rates for secondary water; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

36
10-8-22
17B-1-121
73-10-2
73-10-32.5
73-10-34
0
Water Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Casey Snider
Senate Sponsor: Daniel McCay
LONG TITLE
General Description:
This bill addresses regulations related to water.
Highlighted Provisions:
This bill:
provides circumstances of when a municipality may set different water rates based in part 
on water conservation;
addresses special district fees;
defines terms;
addresses rate setting by a retail water supplier and public water systems;
provides for how revenues from retail rates may be spent;
creates a presumption regarding the reasonableness of certain water rates that include 
water conservation as an element in determining the rate; 
modifies provisions related to the Board of Water Resources;
addresses tiered rates for secondary water; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-8-22
, as last amended by Laws of Utah 2019, Chapter 99
17B-1-121
, as last amended by Laws of Utah 2023, Chapter 15
73-10-2
, as last amended by Laws of Utah 2023, Chapter 205
73-10-32.5
, as last amended by Laws of Utah 2022, Chapter 90
73-10-34
, as last amended by Laws of Utah 2024, Chapters 171, 438
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
10-8-22
 is amended to read:
10-8-22
. Water rates.
(1)
As used in this section:
(a)
"Designated water service area" means the area defined by a municipality in 
accordance with the 
Utah Constitution, Article XI, Section 6
, Subsection 
(1)(c)
.
(b)
"Large municipal drinking water system" means a municipally owned and operated 
drinking water system serving a population of 10,000 or more.
(c)
"Retail customer" means an end user:
(i)
who receives culinary water directly from a municipality's waterworks system; and
(ii)
whom the municipality described in Subsection 
(1)(c)(i)
 bills for water service.
(2)
A municipality shall fix the rates to be paid for the use of water furnished by the 
municipality.
(3)
The setting of municipal water rates is a legislative act.
(4)
Within the municipality's designated water service area, a municipality shall:
(a)
establish, by ordinance, reasonable rates for the services provided to the 
municipality's retail customers;
(b)
use the same method of providing notice to all retail customers of proposed rate 
changes; and
(c)
allow all retail customers the same opportunity to appear and participate in a public 
meeting addressing water rates.
(5)
(a)
A municipality may establish different rates for different classifications of retail 
customers within the municipality's designated water service area, if the rates and 
classifications have a reasonable basis.
(b)
A reasonable basis for charging different rates for different classifications may 
include, among other things, a situation in which:
(i)
there is a difference in the cost of providing service to a particular classification;
(ii)
one classification bears more risk in relation to a system operation or obligation;
(iii)
retail customers in one classification invested or contributed to acquire a water 
source or supply or build or maintain a system differently than retail customers in 
another classification;
(iv)
the needs or conditions of one classification:
(A)
are distinguishable from the needs or conditions of another classification; and
(B)
based on economic, public policy, or other identifiable elements, support a 
different rate; 
or
(v)
there is a differential between the classifications based on a cost of service 
standard or a generally accepted rate setting method, including a standard or 
method the American Water Works Association establishes
.
; or
(vi)
water conservation is used as an element in determining the rate charged for a 
block unit of water as provided in Section 
73-10-32.5
.
(c)
An adjustment based solely on the fact that a particular classification of retail 
customers is located either inside or outside of the municipality's corporate boundary 
is not a reasonable basis.
(6)
(a)
If more than 10% of the retail customers within a large municipal drinking water 
system's designated water service area are located outside of the municipality's 
corporate boundary, the municipality shall:
(i)
post on the municipality's website the rates assessed to retail customers within the 
designated water service area; and
(ii)
establish an advisory board to make recommendations to the municipal legislative 
body regarding water rates, capital projects, and other water service standards.
(b)
In establishing an advisory board described in Subsection 
(6)(a)(ii)
, a municipality 
shall:
(i)
if more than 10% but no more than 30% of the municipality's retail customers 
receive service outside the municipality's municipal boundary, ensure that at least 
20% of the advisory board's members represent the municipality's retail customers 
receiving service outside the municipality's municipal boundary;
(ii)
if more than 30% of the municipality's retail customers receive service outside of 
the municipality's municipal boundary, ensure that at least 40% of the advisory 
board's members represent the municipality's retail customers receiving service 
outside of the municipality's municipal boundary; and
(iii)
in appointing board members who represent retail customers receiving service 
outside of the municipality's municipal boundary, as required in Subsections 
(6)(b)(i)
 and 
(ii)
, solicit recommendations from each municipality and county 
outside of the municipality's municipal boundary whose residents are retail 
customers within the municipality's designated water service area.
(7)
A municipality that supplies water outside of the municipality's designated water service 
area shall supply the water only by contract and shall include in the contract the terms 
and conditions under which the contract can be terminated.
(8)
A municipality shall:
(a)
notify the director of the Division of Drinking Water of a contract the municipality 
enters into with a person outside of the municipality's designated water service area, 
including the name and contact information of the person named in each contract; and
(b)
each year, provide 
to the director of the Division of Drinking Water 
any 
supplementing or new information regarding a contract described in Subsection 
(8)(a)
, 
including whether there is no new information to provide at that time.
Section 2, Section 
17B-1-121
 is amended to read:
17B-1-121
. Limit on fees -- Requirement to itemize and account for fees -- 
Appeals.
(1)
A special district may not impose or collect:
(a)
an application fee that exceeds the reasonable cost of processing the application; or
(b)
an inspection or review fee that exceeds the reasonable cost of performing an 
inspection or review.
(2)
(a)
Upon request by a service applicant who is charged a fee or an owner of 
residential property upon which a fee is imposed, a special district shall provide a 
statement of each itemized fee and calculation method for each fee.
(b)
If an applicant who is charged a fee or an owner of residential property upon which a 
fee is imposed submits a request for a statement of each itemized fee no later than 30 
days after the day on which the applicant or owner pays the fee, the special district 
shall, no later than 10 days after the day on which the request is received, provide or 
commit to provide within a specific time:
(i)
for each fee, any studies, reports, or methods relied upon by the special district to 
create the calculation method described in Subsection 
(2)(a)
;
(ii)
an accounting of each fee paid;
(iii)
how each fee will be distributed by the special district; and
(iv)
information on filing a fee appeal through the process described in Subsection 
(2)(c)
.
(c)
(i)
A special district shall establish an impartial fee appeal process to determine 
whether a fee reflects only the reasonable estimated cost of delivering the service 
for which the fee was paid.
(ii)
A party to a fee appeal described in Subsection 
(2)(c)(i)
 may petition for judicial 
review of the special district's final decision.
(d)
The reasonable estimated cost of delivering a service by a special district that 
provides water services includes costs for water conservation, and a water 
conservation effort, as an element in determining the rate charged for a block unit of 
water as provided in Section 
73-10-32.5
.
(3)
A special district may not impose on or collect from a public agency a fee associated 
with the public agency's development of the public agency's land other than:
(a)
subject to Subsection 
(1)
, a hookup fee; or
(b)
an impact fee, as defined in Section 
11-36a-102
 and subject to Section 
11-36a-402
, 
for a public facility listed in Subsection 
11-36a-102(17)(a)
, 
(b)
, 
(c)
, 
(d)
, 
(e)
, or 
(g)
.
Section 3, Section 
73-10-2
 is amended to read:
73-10-2
. Board of Water Resources -- Members -- Appointment -- Terms -- 
Vacancies.
(1)
(a)
The Board of Water Resources shall be comprised of nine members to be 
appointed by the governor with the advice and consent of the Senate in accordance 
with 
Title 63G, Chapter 24, Part 2, Vacancies
.
(b)
In addition to the requirements of Section 
79-2-203
, not more than five members 
shall be from the same political party.
(2)
The 
Subject to Section 
79-2-203
, the 
Board of Water Resources shall consist of:
(a)
one member appointed from each of the following districts:
(i)
Bear River District, comprising the counties of Box Elder, Cache, and Rich;
(ii)
Weber District, comprising the counties of Weber, Davis, Morgan, and Summit;
(iii)
Salt Lake District, comprising the counties of Salt Lake and Tooele;
(iv)
Provo River District, comprising the counties of Juab, Utah, and Wasatch;
(v)
Sevier River District, comprising the counties of Millard, Sanpete, Sevier, Piute, 
and Wayne;
(vi)
Green River District, comprising the counties of Daggett, Duchesne, and Uintah;
(vii)
Upper Colorado River District, comprising the counties of Carbon, Emery, 
Grand, and San Juan; and
(viii)
Lower Colorado River District, comprising the counties of Beaver, Garfield, 
Iron, Washington, and Kane; and
(b)
one member that represents the interests of the Great Salt Lake.
(3)
(a)
Except as required by Subsection 
(3)(b)
, all appointments shall be for terms of 
four years.
(b)
Notwithstanding the requirements of Subsection 
(3)(a)
, the governor shall, at the 
time of appointment or reappointment, adjust the length of terms to ensure that the 
terms of board members are staggered so that approximately half of the board is 
appointed every two years.
(c)
When a vacancy occurs in the membership for any reason, the governor shall appoint 
a replacement member for the unexpired term, with the advice and consent of the 
Senate, who:
(i)
is from the same district as the individual leaving the board; or
(ii)
if the individual leaving the board is appointed under Subsection 
(2)(b)
, 
represents the interests of the Great Salt Lake.
(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)
A member shall comply with the conflict of interest provisions described in 
Title 63G, 
Chapter 24, Part 3, Conflicts of Interest
.
Section 4, Section 
73-10-32.5
 is amended to read:
73-10-32.5
. Culinary water pricing structure.
(1)
As used in this section
, "retail 
:
(a)
"Public water system" means the same as that term is defined in Section 
19-4-102
.
(b)
"Retail 
water supplier" means the same as that term is defined in Section 
19-4-102
.
(c)
(i)
"Water conservation effort" means a program that is designed to incentivize, 
encourage, or result in reduced water usage or more efficient use of water.
(ii)
"Water conservation effort" includes the costs associated with designing, 
implementing, and operating a program described in Subsection 
(1)(c)(i)
.
(d)
"Wholesale water supplier" means the same as that term is defined in Section 
19-4-102
.
(2)
A retail water supplier shall:
(a)
consider water conservation, including at least one water conservation effort, in 
setting water rates with the goal of encouraging efficient water use and eliminating 
wasteful or excessive water use;
(b)
establish a culinary water rate structure that:
(i)
incorporates increasing block units of water used; 
and
(ii)
provides for an increase in the rate charged for additional block units of water 
used as usage increases from one block unit to the next;
(iii)
by July 1, 2027, includes one or more water conservation efforts as an element in 
determining the rate charged for at least the highest usage block unit of water for a 
customer classification that primarily serves residential customers; and
(iv)
is based on a generally accepted rate setting method, including a standard or 
method established by the American Water Works Association;
(b)
(c)
provide in customer billing notices, or in a notice that is distributed to customers 
at least annually, block unit rates and the customer's billing cycle; 
and
(c)
(d)
include individual customer water usage in customer billing notices
.
; and
(e)
consider urban farming that improves food security, reduces pollution, and creates 
green spaces in setting rates.
(3)
This section does not prohibit:
(a)
a public water system with 500 or fewer service connections from taking an action or 
adopting a culinary water rate structure described in Subsection (2); or
(b)
a retail water supplier from including water conservation and a water conservation 
effort as an element in setting rates for customer classifications that do not primarily 
serve residential customers.
(4)
A public water system:
(a)
is not required to establish or show that the portion of the rate designed to encourage 
water conservation, and fund a water conservation effort, within the highest usage 
block unit of water for a customer classification:
(i)
is based on the public water system's actual cost of service;
(ii)
has a reasonable basis when compared to rates the public water system charges:
(A)
for other block units of water within a customer classification; or
(B)
for block units of water in other customer classifications; or
(iii)
is limited to a reasonable profit or return on investment;
(b)
may include in a customer billing a fee, surcharge, penalty, or other charge that is 
collected pursuant to an agreement between the public water system and the 
wholesale water supplier from whom the public water system purchases water; and
(c)
if the public water system is a for-profit entity, may not use revenue from the highest 
usage block unit of water designed to encourage water conservation to pay profits or 
dividends to the public water system's investors or owners.
(5)
The use of revenue collected from the portion of any block unit of water designed to 
encourage water conservation may include funding water conservation efforts that are 
shared with or administered by another public water system or a wholesale water 
supplier.
(6)
The adoption and implementation of that portion of a public water system's water rate 
that includes water conservation as an element in determining the rate charged for the 
highest usage block unit of water, as provided in this section, is conclusively presumed:
(a)
to be reasonable; and
(b)
to reflect the reasonable estimated cost of delivering the service for which the fee 
was paid.
Section 5, Section 
73-10-34
 is amended to read:
73-10-34
. Secondary water metering -- Loans and grants.
(1)
As used in this section:
(a)
"Agriculture use" means water used on land assessed under Title 59, Chapter 2, Part 5, 
Farmland Assessment Act.
(b)
(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.
(c)
"Critical area" means an area:
(i)
serviced by one of the four largest water conservancy districts, as defined in 
Section 
17B-1-102
, measured by operating budgets; or
(ii)
within the Great Salt Lake basin, which includes:
(A)
the surveyed meander line of the Great Salt Lake;
(B)
the drainage areas of the Bear River or the Bear River's tributaries;
(C)
the drainage areas of Bear Lake or Bear Lake's tributaries;
(D)
the drainage areas of the Weber River or the Weber River's tributaries;
(E)
the drainage areas of the Jordan River or the Jordan River's tributaries;
(F)
the drainage areas of Utah Lake or Utah Lake's tributaries;
(G)
other water drainages lying between the Bear River and the Jordan River that 
are tributary to the Great Salt Lake and not included in the drainage areas 
described in Subsections (1)(c)(ii)(B) through (F); and
(H)
the drainage area of Tooele Valley.
(d)
"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.
(e)
(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.
(f)
(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.
(g)
"Power generation use" means water used in the production of energy, such as use in 
an electric generation facility, natural gas refinery, or coal processing plant.
(h)
(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.
(i)
"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.
(j)
"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.
(k)
"Secondary water supplier" means an entity that supplies pressurized secondary 
water.
(l)
"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 or town; 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.
(c)
Beginning January 1, 2022, a secondary water supplier shall establish a meter 
installation reserve for metering installation and replacement projects.
(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.
(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)(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, including an anticipated beginning date and completion date, except 
a secondary water supplier shall achieve full metering by no later than January 
1, 2030; 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)
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 water related purposes 
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 
with jurisdiction 
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 non-metered secondary water connection of the secondary water 
supplier for failure to comply with full metering by January 1, 2030;
(ii)
$20 for each non-metered secondary water connection of the secondary water 
supplier for failure to comply with full metering by January 1, 2031;
(iii)
$30 for each non-metered secondary water connection of the secondary water 
supplier for failure to comply with full metering by January 1, 2032;
(iv)
$40 for each non-metered secondary water connection of the secondary water 
supplier for failure to comply with full metering by January 1, 2033; and
(v)
$50 for each non-metered 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)
A secondary water supplier located within a county of the fifth or sixth class is exempt 
from Subsections (2)(a), (2)(b), (2)(c), (2)(e), (7), and (8) if:
(a)
the owner or operator of the secondary water supplier seeks an exemption under this 
Subsection (9) by establishing with the Division of Water Resources that the cost of 
purchasing, installing, and upgrading systems to accept meters exceeds 25% of the 
total operating budget of the owner or operator of the secondary water supplier;
(b)
the secondary water supplier agrees to not add a new secondary water connection to 
the secondary water supplier's system on or after May 4, 2022;
(c)
within six months of when the secondary water supplier seeks an exemption under 
Subsection (9)(a), the secondary water supplier provides to the Division of Water 
Resources a plan for conservation within the secondary water supplier's service area 
that does not require metering;
(d)
the secondary water supplier annually reports to the Division of Water Resources on 
the results of the plan described in Subsection (9)(c); and
(e)
the secondary water supplier submits to evaluations by the Division of Water 
Resources of the effectiveness of the plan described in Subsection (9)(c).
(10)
A secondary water supplier is exempt from Subsections (2)(a), (2)(b), (2)(c), (2)(e), 
(7), and (8) 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;
(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 (10)(a);
(c)
within six months of when the secondary water supplier submits reasonable proof 
under Subsection (10)(b), provides to the Division of Water Resources a plan for 
conservation within the secondary water supplier's service area that does not require 
metering;
(d)
annually reports to the Division of Water Resources on the results of the plan 
described in Subsection (10)(c); and
(e)
submits to evaluations by the Division of Water Resources of the effectiveness of the 
plan described in Subsection (10)(c).
(11)
A secondary water supplier that is located within a critical management area that is 
subject to a groundwater management plan adopted or amended under Section 
73-5-15
on or after May 1, 2006, is exempt from Subsections (2)(a), (2)(b), (2)(c), (2)(e), (7), and 
(8).
(12)
If a secondary water supplier is required to have a water conservation plan under 
Section 
73-10-32
, that water conservation plan satisfies the requirements of Subsection 
(9)(c) or (10)(c).
(13)
(a)
Notwithstanding the other provisions of this section and unless exempt under 
Subsection (9), (10), or (11), to comply with this section, a secondary water supplier 
is not required to meter every secondary water connection of the secondary water 
supplier's system, but shall meter at strategic points of the system as approved by the 
state engineer under this Subsection (13) if:
(i)
the system has no or minimal storage and relies primarily on stream flow;
(ii)
(A)
the majority of secondary water users on the system are associated with 
agriculture use or power generation use; and
(B)
less than 50% of the secondary water is used by residential secondary water 
users; or
(iii)
the system has a mix of pressurized lines and open ditches and:
(A)
1,000 or fewer users if any part of the system is within a critical area; or
(B)
2,500 or fewer users for a system not described in Subsection (13)(a)(iii)(A).
(b)
(i)
A secondary water supplier may obtain the approval by the state engineer of 
strategic points where metering is to occur as required under this Subsection (13) 
by filing an application with the state engineer in the form established by the state 
engineer.
(ii)
The state engineer may by rule, made in accordance with Title 63G, Chapter 3, 
Utah Administrative Rulemaking Act, establish procedures for approving strategic 
points for metering under this Subsection (13).
(14)
(a)
A contract entered into or renewed on or after July 1, 2025, between a secondary 
water supplier and an end user shall allow for billing by tiered conservation rates.
(b)
Except as provided in Subsection 
(14)(f)
, by no later than July 1, 2030, regardless of 
whether the secondary water supplier is fully metered or has modified existing 
contracts with end users, a secondary water supplier shall begin billing an end user 
using a tiered conservation rate that considers:
(i)
revenue stability;
(ii)
water conservation; and
(iii)
cost of service.
(c)
A secondary water supplier may comply with Subsection (14)(b) by entering into a 
contract with a third-party, including the public water system that serves an end user 
of the secondary water supplier, to bill the end user according to end user's usage of 
secondary water and the secondary water supplier's tiered conservation rate.
(d)
By no later than April 1, 2030, a secondary water supplier shall provide an 
educational component for end users as determined by the division by rule made in 
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, either 
on a monthly statement or by an end user specific Internet portal that provides 
information on the end user's usage more frequently than monthly.
(e)
A public water system:
(i)
shall enter into a contract with a secondary water supplier described in Subsection 
(14)(c)
 upon request from the secondary water supplier if the secondary water 
supplier agrees to provide water use and other data necessary for accurate billing 
in a file format compatible with the public water supplier's billing system;
(ii)
may collect the costs associated with billing on behalf of a secondary water 
supplier under this section from the secondary water end users, including 
reasonable administrative and overhead expenses; and
(iii)
shall, as the public water supplier and the secondary water supplier find 
necessary or convenient, exchange with the secondary water supplier, for the 
purpose of maintaining accurate records, relevant information with regard to an 
end user of the secondary water supplier, such as:
(A)
a billing address;
(B)
an address where the secondary water is delivered;
(C)
a parcel identification number; and
(D)
ownership information.
(f)
(i)
A secondary water supplier is not required to bill an end user a tiered 
conservation rate if the secondary water supplier is:
(A)
exempt from metering under Subsection (9), (10), or (11); or
(B)
authorized to meter at strategic points of the system under Subsection (13).
(ii)
Notwithstanding the other provisions of this section, on or after July 1, 2030, a 
secondary water supplier with a tiered conservation rate under this Subsection (14) 
shall charge an end user at the lowest rate of the tiered conservation rate if the end 
user is using a portion of the water to grow food, including growing a garden, fruit 
trees, or pasture for grazing.
(g)
(i)
If a secondary water supplier violates this Subsection 
(14)
 on or after April 1, 
2030, the secondary water supplier:
(A)
may not receive state money for water related purposes until the secondary 
water supplier complies with this Subsection 
(14)
; and
(B)
is subject to an enforcement action of the state engineer in accordance with 
this Subsection (14)(g).
(ii)
The state engineer shall commence an enforcement action under this Subsection 
(14)(g) if the state engineer receives a referral from the director of the Division of 
Water Resources.
(iii)
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 comply with this Subsection 
(14)
; 
and
(B)
determines an enforcement action is necessary to conserve or protect a water 
resource in the state.
(iv)
To commence an enforcement action under this Subsection (14)(g), the state 
engineer shall issue a notice of violation that includes notice of the administrative 
fine described in Subsection 
(14)(g)(xiii)
 to which a secondary water supplier is 
subject.
(v)
The state engineer's issuance and enforcement of a notice of violation is exempt 
from Title 63G, Chapter 4, Administrative Procedures Act.
(vi)
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:
(A)
provisions consistent with this Subsection 
(14)(g)
 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;
(B)
the right to a hearing, upon request by a secondary water supplier against 
whom the notice is issued; and
(C)
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 (14)(g)(vi)(B).
(vii)
A person may not intervene in an enforcement action commenced under this 
Subsection 
(14)(g)
.
(viii)
After issuance of a final order under rules made pursuant to Subsection 
(14)(g)(vi), the state engineer shall serve a copy of the final order on the 
secondary water supplier against whom the order is issued by:
(A)
personal service under Utah Rules of Civil Procedure, Rule 5; or
(B)
certified mail.
(ix)
The state engineer's final order may be reviewed by trial de novo by a court with 
jurisdiction in Salt Lake County or the county where the violation occurred.
(x)
A secondary water supplier shall file a petition for judicial review of the state 
engineer's final order issued under this Subsection 
(14)(g)
 within 20 days from the 
day on which the final order was served on the secondary water supplier.
(xi)
The state engineer may bring suit in a court to enforce a final order issued under 
this Subsection (14)(g).
(xii)
If the state engineer prevails in an action brought under Subsection (14)(g)(x) or 
(xi), the state may recover court costs and reasonable attorney fees.
(xiii)
The administrative fine imposed under this section shall be an amount not to 
exceed the sum of any money received by the secondary water supplier under this 
section or Section 
73-10-34.5
 to fund costs related to metering.
(xiv)
Money collected under this Subsection (14) shall be deposited into the Water 
Resources Conservation and Development Fund, created in Section 
73-10-24
.
Section 6. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-13-25 12:49 PM