Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 285 (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:
• repeals the Water Resources Cities Water Loan Fund and provides that loan repayments go into the Water Infrastructure Fund;
• authorizes transfers of money in water funds and accounts to and from the Water Infrastructure Fund;
• requires capital asset management plans and reserve funding under certain circumstances;
• modifies definitions, including the definition of "relevant agency";
• addresses the water infrastructure prioritization process, including exemptions from the process;
• repeals outdated language; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

71
63A-3-205
63B-1b-102
63C-25-101
73-10-22
73-10-23
73-10-25
73-10-25.1
73-10c-4
73-10c-5
73-10g-107
73-10g-502
73-10g-502.5
73-10g-504
73-10g-601
73-10g-602
73-10g-603
73-10g-604
73-10g-605
73-10g-606
0
Water Infrastructure Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Casey Snider
Senate Sponsor: Scott D. Sandall
LONG TITLE
General Description:
This bill addresses funding and planning for water infrastructure. 
Highlighted Provisions:
This bill:
repeals the Water Resources Cities Water Loan Fund and provides that loan repayments 
go into the Water Infrastructure Fund;
authorizes transfers of money in water funds and accounts to and from the Water 
Infrastructure Fund;
requires capital asset management plans and reserve funding under certain circumstances;
modifies definitions, including the definition of "relevant agency";
addresses the water infrastructure prioritization process, including exemptions from the 
process;
repeals outdated language; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-3-205
, as last amended by Laws of Utah 2022, Chapters 100, 451
63B-1b-102
, as last amended by Laws of Utah 2022, Chapters 100, 451
63C-25-101
, as last amended by Laws of Utah 2024, Chapter 419
73-10-23
, as last amended by Laws of Utah 2007, Chapter 306
73-10-25
, as last amended by Laws of Utah 2023, Chapter 261
73-10-25.1
, as last amended by Laws of Utah 1996, Chapter 199
73-10c-4
, as last amended by Laws of Utah 2007, Chapter 142
73-10c-5
, as last amended by Laws of Utah 2011, Chapter 342
73-10g-107
, as enacted by Laws of Utah 2024, Chapter 335
73-10g-502
, as enacted by Laws of Utah 2022, Chapter 66
73-10g-601
, as enacted by Laws of Utah 2024, Chapter 335
73-10g-602
, as enacted by Laws of Utah 2024, Chapter 335
73-10g-603
, as enacted by Laws of Utah 2024, Chapter 335
73-10g-604
, as enacted by Laws of Utah 2024, Chapter 335
73-10g-605
, as enacted by Laws of Utah 2024, Chapter 335
ENACTS:
73-10g-502.5
, Utah Code Annotated 1953
73-10g-606
, Utah Code Annotated 1953
REPEALS:
73-10-22
, as last amended by Laws of Utah 1995, Chapter 183
73-10g-504
, as enacted by Laws of Utah 2022, Chapter 66
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
63A-3-205
 is amended to read:
63A-3-205
. Revolving loan funds -- Standards and procedures.
(1)
As used in this section, "revolving loan fund" means:
(a)
the Water Resources Conservation and Development Fund, created in Section 
73-10-24
;
(b)
the Water Resources Construction Fund, created in Section 
73-10-8
;
(c)
the Water Resources Cities Water Loan Fund, created in Section 
73-10-22
;
(d)
(c)
the Clean Fuel Conversion Funds, created in 
Title 19, Chapter 1, Part 4, Clean 
Fuels and Emission Reduction Technology Program Act
;
(e)
(d)
the Water Development Security Fund and its subaccounts, created in Section 
73-10c-5
;
(f)
(e)
the Agriculture Resource Development Fund, created in Section 
4-18-106
;
(g)
(f)
the Utah Rural Rehabilitation Fund, created in Section 
4-19-105
;
(h)
(g)
the Permanent Community Impact Fund, created in Section 
35A-8-303
;
(i)
(h)
the Petroleum Storage Tank Fund, created in Section 
19-6-409
;
(j)
(i)
the Uintah Basin Revitalization Fund, created in Section 
35A-8-1602
;
(k)
(j)
the Navajo Revitalization Fund, created in Section 
35A-8-1704
; and
(l)
(k)
the Energy Efficiency Fund, created in Section 
11-45-201
.
(2)
The division shall for each revolving loan fund make rules establishing standards and 
procedures governing:
(a)
payment schedules and due dates;
(b)
interest rate effective dates;
(c)
loan documentation requirements; and
(d)
interest rate calculation requirements.
Section 2, Section 
63B-1b-102
 is amended to read:
63B-1b-102
. Definitions.
As used in this chapter:
(1)
"Agency bonds" means any bond, note, contract, or other evidence of indebtedness 
representing loans or grants made by an authorizing agency.
(2)
"Authorized official" means the state treasurer or other person authorized by a bond 
document to perform the required action.
(3)
"Authorizing agency" means the board, person, or unit with legal responsibility for 
administering and managing revolving loan funds.
(4)
"Bond document" means:
(a)
a resolution of the commission; or
(b)
an indenture or other similar document authorized by the commission that authorizes 
and secures outstanding revenue bonds from time to time.
(5)
"Commission" means the State Bonding Commission, created in Section 
63B-1-201
.
(6)
"Revenue bonds" means any special fund revenue bonds issued under this chapter.
(7)
"Revolving Loan Funds" means:
(a)
the Water Resources Conservation and Development Fund, created in Section 
73-10-24
;
(b)
the Water Resources Construction Fund, created in Section 
73-10-8
;
(c)
the Water Resources Cities Water Loan Fund, created in Section 
73-10-22
;
(d)
(c)
the Clean Fuel Conversion Funds, created in 
Title 19, Chapter 1, Part 4, Clean 
Fuels and Emission Reduction Technology Program Act
;
(e)
(d)
the Water Development Security Fund and its subaccounts, created in Section 
73-10c-5
;
(f)
(e)
the Agriculture Resource Development Fund, created in Section 
4-18-106
;
(g)
(f)
the Utah Rural Rehabilitation Fund, created in Section 
4-19-105
;
(h)
(g)
the Permanent Community Impact Fund, created in Section 
35A-8-303
;
(i)
(h)
the Petroleum Storage Tank Fund, created in Section 
19-6-409
; and
(j)
(i)
the State Infrastructure Bank Fund, created in Section 
72-2-202
.
Section 3, Section 
63C-25-101
 is amended to read:
63C-25-101
. Definitions.
As used in this chapter:
(1)
"Authority" means the same as that term is defined in Section 
63B-1-303
.
(2)
"Bond" means the same as that term is defined in Section 
63B-1-101
.
(3)
(a)
"Bonding government entity" means the state or any entity that is authorized to 
issue bonds under any provision of state law.
(b)
"Bonding government entity" includes:
(i)
a bonding political subdivision; and
(ii)
a public infrastructure district that is authorized to issue bonds either directly, or 
through the authority of a bonding political subdivision or other governmental 
entity.
(4)
"Bonding political subdivision" means:
(a)
the Utah Inland Port Authority, created in Section 
11-58-201
;
(b)
the Military Installation Development Authority, created in Section 
63H-1-201
;
(c)
the Point of the Mountain State Land Authority, created in Section 
11-59-201
;
(d)
the Utah Lake Authority, created in Section 
11-65-201
; 
(e)
the State Fair Park Authority, created in Section 
11-68-201
; or
(f)
the Utah Fairpark Area Investment and Restoration District, created in Section 
11-70-201
.
(5)
"Commission" means the State Finance Review Commission created in Section 
63C-25-201
.
(6)
"Concessionaire" means a person who:
(a)
operates, finances, maintains, or constructs a government facility under a contract 
with a bonding political subdivision; and
(b)
is not a bonding government entity.
(7)
"Concessionaire contract" means a contract:
(a)
between a bonding government entity and a concessionaire for the operation, finance, 
maintenance, or construction of a government facility;
(b)
that authorizes the concessionaire to operate the government facility for a term of 
five years or longer, including any extension of the contract; and
(c)
in which all or some of the annual source of payment to the concessionaire comes 
from state funds provided to the bonding government entity.
(8)
"Creating entity" means the same as that term is defined in Section 
17D-4-102
.
(9)
"Government facility" means infrastructure, improvements, or a building that:
(a)
costs more than $5,000,000 to construct; and
(b)
has a useful life greater than five years.
(10)
"Large public transit district" means the same as that term is defined in Section 
17B-2a-802
.
(11)
"Loan entity" means the board, person, unit, or agency with legal responsibility for 
making a loan from a revolving loan fund.
(12)
"Obligation" means the same as that term is defined in Section 
63B-1-303
.
(13)
"Parameters resolution" means a resolution of a bonding government entity that sets 
forth for proposed bonds:
(a)
the maximum:
(i)
amount of bonds;
(ii)
term; and
(iii)
interest rate; and
(b)
the expected security for the bonds.
(14)
"Public infrastructure district" means a public infrastructure district created under Title 
17D, Chapter 4, Public Infrastructure District Act.
(15)
"Revolving loan fund" means:
(a)
the Water Resources Conservation and Development Fund, created in Section 
73-10-24
;
(b)
the Water Resources Construction Fund, created in Section 
73-10-8
;
(c)
the Water Resources Cities Water Loan Fund, created in Section 
73-10-22
;
(d)
(c)
the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean 
Fuels and Emission Reduction Technology Program Act;
(e)
(d)
the Water Development Security Fund and its subaccounts, created in Section 
73-10c-5
;
(f)
(e)
the Agriculture Resource Development Fund, created in Section 
4-18-106
;
(g)
(f)
the Utah Rural Rehabilitation Fund, created in Section 
4-19-105
;
(h)
(g)
the Permanent Community Impact Fund, created in Section 
35A-8-303
;
(i)
(h)
the Petroleum Storage Tank Fund, created in Section 
19-6-409
;
(j)
(i)
the School Building Revolving Account, created in Section 
53F-9-206
;
(k)
(j)
the State Infrastructure Bank Fund, created in Section 
72-2-202
;
(l)
(k)
the Uintah Basin Revitalization Fund, created in Section 
35A-8-1602
;
(m)
(l)
the Navajo Revitalization Fund, created in Section 
35A-8-1704
;
(n)
(m)
the Energy Efficiency Fund, created in Section 
11-45-201
;
(o)
(n)
the Brownfields Fund, created in Section 
19-8-120
;
(p)
(o)
any of the enterprise revolving loan funds created in Section 
63A-3-402
: and
(q)
(p)
any other revolving loan fund created in statute where the borrower from the 
revolving loan fund is a public non-profit entity or political subdivision, including a 
fund listed in Section 
63A-3-205
, from which a loan entity is authorized to make a 
loan.
(16)
(a)
"State funds" means an appropriation by the Legislature identified as coming 
from the General Fund or Education Fund.
(b)
"State funds" does not include:
(i)
a revolving loan fund; or
(ii)
revenues received by a bonding political subdivision from:
(A)
a tax levied by the bonding political subdivision;
(B)
a fee assessed by the bonding political subdivision; or
(C)
operation of the bonding political subdivision's government facility.
Section 4, Section 
73-10-23
 is amended to read:
73-10-23
. Loans for water systems -- Board of Water Resources authority -- 
Procedure.
(1)
The Board of Water Resources 
is authorized to
may
 make loans to cities, towns, 
metropolitan water districts, water conservancy districts, improvement districts, special 
improvement districts, or special service districts within the state for the acquisition or 
construction of new or existing water systems or the improvement or extension of those 
systems from 
funds
money
 appropriated for the purpose of this chapter.
(2)
(a)
Cities, towns, or districts which participate in this program shall submit an 
application for 
funds
money
 to the Board of Water Resources.
(b)
The application may request a loan to cover all or part of the cost of an eligible 
project.
(c)
Requests for loans shall be submitted in a form and shall include information as the 
board
Board of Water Resources
 prescribes.
(3)
(a)
The 
board
Board of Water Resources
 shall establish criteria for determining 
eligibility for loans and shall determine appropriate priorities among projects.
(b)
Funds 
Money 
received from the repayment of loans shall be 
added to this special 
fund
deposited into the Water Resources Conservation and Development Fund 
created in Section 
73-10-24
 and be available for additional loans under the 
administration of the 
board
Board of Water Resources
.
(c)
In determining priorities for eligible projects, the 
board
Board of Water Resources
shall consider:
(i)
probable growth of population due to actual or prospective economic development 
in an area;
(ii)
possible additional sources of state and local revenue;
(iii)
opportunities for expanded employment;
(iv)
present or potential health hazards;
(v)
water systems which do not meet minimum state standards;
(vi)
cities, towns, or districts which have insufficient water to meet current demands;
(vii)
feasibility and practicality of the project;
(viii)
per capita cost of the project;
(ix)
per capita income of the residents in the area;
(x)
the borrowing capacity of the city, town, or district and its ability to sell bonds in 
the open market; and
(xi)
the availability of federal 
funds
money
 for the project.
(4)
(a)
The 
board
Board of Water Resources
 shall consult with the Governor's Advisory 
Council on Community Affairs in the establishment of priorities but that advice is not 
binding upon the 
board
Board of Water Resources
.
(b)
If an application is rejected, the 
board
Board of Water Resources
 shall notify the 
applicant stating the reasons for the rejection.
(5)
The Board of Water Resources shall review the plans and specifications for the project 
prior to approval and may condition approval and the availability of 
funds
money
 on 
assurances the 
board
Board of Water Resources
 considers necessary to ensure that the 
proceeds of the loan will be used to pay the cost of the project and that the project will 
be completed.
(6)
Any loan shall specify the terms for repayment and may be evidenced by general 
obligation bonds, revenue bonds, special assessment bonds, or other bonds or 
obligations legally issued by the appropriate city, town, metropolitan water district, 
water conservancy district, improvement district, special improvement district, or special 
service district and purchased by the 
board
Board of Water Resources
 pursuant to the 
authority for the issuance that exists at the time of the loan.
(7)
(a)
Upon approval of an application, the 
board
Board of Water Resources
 shall 
advise the applicant and may provide 
funds
money
 as a loan to cover all or part of 
the costs of eligible projects.
(b)
Costs of an eligible project may include all costs of acquisition and construction as 
well as costs incurred for preliminary planning to determine the economic and 
engineering feasibility of a proposed project, the engineering, architectural, legal, 
fiscal, and economic investigations and studies, surveys, designs, plans, working 
drawings, specifications, procedures, and other action necessary to the project and its 
financing; the cost of erection, building, acquisition, modification, improvement, or 
extension of water system facilities and the inspection and supervision of the 
construction of such facilities.
(8)
No loan shall 
A loan may not 
include any project costs for which the applicant 
receives federal financial assistance, other than federal loans 
which
that
 must be repaid 
by the applicant.
Section 5, Section 
73-10-25
 is amended to read:
73-10-25
. Contents of fund -- Investment -- Contributions -- Transfers.
(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
.
; and
(e)
money transferred from the Water Infrastructure Fund in accordance with Subsection 
73-10g-603(1)(f)
.
(2)
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)
A contribution of money, property, or equipment may be received from a political 
subdivision of the state, federal agency, water users' association, or person 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)
.
(5)
The Board of Water Resources may direct the transfer of money out of the Water 
Resources Conservation and Development Fund to the Water Infrastructure Fund in 
accordance with Section 
73-10g-107
.
Section 6, Section 
73-10-25.1
 is amended to read:
73-10-25.1
. Credit enhancement and interest buy-down agreements.
(1)
The Board of Water Resources may enter into credit enhancement agreements with 
political subdivisions containing terms and provisions that the board determines will 
reasonably improve the security for or marketability of water project obligations 
financed using the 
Water Resources Cities Water Loan Fund created in Section 
73-10-22
 or the 
Water Resources Conservation and Development Fund created in 
Section 
73-10-24
. Credit enhancement agreements may include provisions for loans to 
political subdivisions to pay the costs of obtaining letters of credit or other forms of 
insurance or security to provide security for water project obligations.
(2)
The Board of Water Resources may make loans or grants from 
the Water Resources 
Cities Water Loan Fund or 
the Water Resources Conservation and Development Fund 
to political subdivisions for interest buy-down agreements for water development 
projects.
Section 7, Section 
73-10c-4
 is amended to read:
73-10c-4
. Credit enhancement and interest buy-down agreements -- Loans or 
grants -- Hardship grants -- Transfer of money.
(1)
On behalf of the state, the Water Quality Board and the Drinking Water Board may each 
enter into credit enhancement agreements with political subdivisions containing terms 
and provisions that the acting board determines will reasonably improve the security for 
or marketability of drinking water and wastewater project obligations, including any of 
the following:
(a)
a term providing security for drinking water and wastewater project obligations, as 
provided in Subsection 
73-10c-6(2)(b)
, by agreeing to purchase the drinking water or 
wastewater project obligations of, or to make loans to, political subdivisions from a 
subaccount of the security fund for the purpose of preventing defaults in the payment 
of principal and interest on drinking water and wastewater project obligations;
(b)
a term making loans to political subdivisions to pay the cost of obtaining:
(i)
letters of credit from banks, savings and loan institutions, insurance companies, or 
other financial institutions;
(ii)
municipal bond insurance; or
(iii)
other forms of insurance or security to provide security for drinking water and 
wastewater project obligations; and
(c)
a term providing other methods and assistance to political subdivisions that are 
reasonable and proper to enhance the marketability of or security for drinking water 
and wastewater project obligations.
(2)
(a)
The Drinking Water Board and the Water Quality Board may each make loans 
from a security fund subaccount to political subdivisions to finance all or part of 
drinking water and wastewater project costs by following the procedures and 
requirements of Sections 
73-10c-4.1
 and 
73-10c-4.2
.
(b)
These loans may only be made after credit enhancement agreements, interest 
buy-down agreements, and all other financing alternatives have been evaluated by the 
acting board and the board determines those options are unavailable or unreasonably 
expensive for the subdivision requesting assistance.
(c)
Loans may be made from the security fund subaccount at interest rates determined by 
the board.
(3)
(a)
The Drinking Water Board and the Water Quality Board may each make loans or 
grants from the security fund to political subdivisions for interest buy-down 
agreements for drinking water or wastewater project obligations.
(b)
The Drinking Water Board may make loans or grants from the security account to 
political subdivisions for planning for drinking water projects.
(4)
(a)
Of the total amount of money annually available to the Drinking Water Board and 
Water Quality Board for financial assistance to political subdivisions, at least 10% 
shall be allocated by each board for credit enhancement and interest buy-down 
agreements.
(b)
The requirement specified in Subsection 
(4)(a)
 shall apply only so long as sales and 
use tax is transferred to the Utah Wastewater Loan Program Subaccount and 
Drinking Water Loan Program Subaccount as provided in Section 
59-12-103
.
(5)
To the extent money is available in the hardship grant subaccounts of the security fund, 
the Drinking Water Board and the Water Quality Board may each make grants to 
political subdivisions that meet the drinking water or wastewater project loan 
considerations respectively, but whose projects are determined by the granting board to 
not be economically feasible unless grant assistance is provided.
(6)
The Drinking Water and Water Quality Boards may at any time transfer money out of 
their respective hardship grant subaccounts of the security fund to their respective loan 
program subaccounts.
(7)
The Water Quality Board may make a grant from the Hardship Grant Program for 
Wastewater Projects Subaccount created in Subsection 
73-10c-5(2)(c)
 for a nonpoint 
source project as provided by Section 
73-10c-4.5
 if:
(a)
money is available in the subaccount; and
(b)
the Water Quality Board determines that the project would not be economically 
feasible unless a grant were made.
(8)
(a)
The Water Quality Board may direct the transfer of money out of the Water 
Quality Security - Utah Wastewater Loan Program Subaccount created by Subsection 
73-10c-5(2)(a)
 to the Water Infrastructure Fund in accordance with Section 
73-10g-107
.
(b)
The Drinking Water Board may direct the transfer of money out of the Drinking 
Water Security - Drinking Water Loan Program Subaccount created by Subsection 
73-10c-5(3)(a)
 to the Water Infrastructure Fund in accordance with Section 
73-10g-107
.
Section 8, Section 
73-10c-5
 is amended to read:
73-10c-5
. Water Development Security Fund created -- Water Quality Security 
and Drinking Water Security Subaccounts created -- Use -- Revolving loan funds -- 
Hardship grants.
(1)
There is established an enterprise fund known as the Water Development Security Fund 
which includes the Water Quality Security Subaccount and the Drinking Water Security 
Subaccount.
(2)
The Water Quality Security Subaccount consists of four subaccounts:
(a)
the Utah Wastewater Loan Program Subaccount, which consists of:
(i)
money appropriated to the subaccount by the Legislature;
(ii)
money received from the repayment of the principal of loans made by the Water 
Quality Board under Sections 
73-10c-4
 and 
73-10c-6
 from the Utah Wastewater 
Loan Program Subaccount;
 and
(iii)
money deposited in the subaccount under any other law;
 and
(iv)
money transferred from the Water Infrastructure Fund in accordance with 
Subsection 
73-10g-603(1)(f)
;
(b)
the Utah State Revolving Fund for Wastewater Projects Subaccount, which consists 
of:
(i)
money appropriated to the subaccount by the Legislature;
(ii)
money received from the Utah Wastewater Loan Program Subaccount applied to 
meet match requirements for federal funds under 33 
U.S.C.A.
U.S.C.
 1251 et 
seq., federal Clean Water Act;
(iii)
money received from the repayment of loans made by the Water Quality Board 
under Section 
73-10c-4
 from the Utah State Revolving Fund for Wastewater 
Projects Subaccount;
(iv)
money received from the repayment of loans made by the Water Quality Board 
under Section 
73-10c-4.5
;
(v)
money deposited in the subaccount under any other law;
(vi)
money received under and subject to the restrictions of 33 
U.S.C.A.
U.S.C.
1251 et seq., federal Clean Water Act, and which is eligible for use in state 
revolving loan funds established to meet the requirements of the act; and
(vii)
all investment income derived from money in the Utah State Revolving Fund for 
Wastewater Projects Subaccount;
(c)
the Hardship Grant Program for Wastewater Projects Subaccount, which consists of:
(i)
money appropriated to the subaccount by the Legislature;
(ii)
money received as interest payments on loans made by the Water Quality Board 
under Sections 
73-10c-4
 and 
73-10c-6
, from the Utah Wastewater Loan Program 
Subaccount;
(iii)
money deposited in the subaccount under any other law;
(iv)
the Hardship Grant Assessment charged to State Revolving Fund loan recipients; 
and
(v)
all investment income derived from money in the Utah Wastewater Loan Program 
Subaccount or the Hardship Grant Program for Wastewater Projects Subaccount; 
and
(d)
the Water Quality Origination Fee Subaccount, which consists of the origination fee 
paid under Section 
73-10c-10
.
(3)
The Drinking Water Security Subaccount consists of four subaccounts:
(a)
the Drinking Water Loan Program Subaccount, which consists of:
(i)
money appropriated to the subaccount by the Legislature;
(ii)
money received from the repayment of the principal of loans made by the 
Drinking Water Board under Sections 
73-10c-4
 and 
73-10c-6
, from the Drinking 
Water Loan Program Subaccount;
 and
(iii)
money deposited in the subaccount under any other law;
 and
(iv)
money transferred from the Water Infrastructure Fund in accordance with 
Subsection 
73-10g-603(1)(f)
;
(b)
the State Revolving Fund for Drinking Water Projects Subaccount, which consists of:
(i)
money appropriated to the subaccount by the Legislature;
(ii)
money received from the Utah Drinking Water Loan Program Subaccount and 
applied to meet match requirements for federal funds under 42 
U.S.C.A.
U.S.C.
300f et seq., federal Safe Drinking Water Act;
(iii)
money received from the repayment of loans made by the Drinking Water Board 
under Section 
73-10c-4
 from the State Revolving Fund for Drinking Water 
Projects Subaccount;
(iv)
money deposited in the subaccount under any other law;
(v)
money received under and subject to the restrictions of 42 
U.S.C.A.
U.S.C.
 300f 
et seq., federal Safe Drinking Water Act, and which is eligible for use in state 
revolving loan funds established to meet the requirements of the act; and
(vi)
all investment income derived from money in the State Revolving Fund for 
Drinking Water Projects Subaccount;
(c)
the Hardship Grant Program for Drinking Water Projects Subaccount, which consists 
of:
(i)
money appropriated to the subaccount by the Legislature;
(ii)
money received from interest payments on loans made by the Drinking Water 
Board under Sections 
73-10c-4
 and 
73-10c-6
, from the Drinking Water Loan 
Program Subaccount;
(iii)
money deposited in the subaccount under any other law;
(iv)
the Hardship Grant Assessment charged to State Revolving Fund loan recipients; 
and
(v)
all investment income derived from money in the Drinking Water Loan Program 
Subaccount or the Hardship Grant Program for Drinking Water Projects 
Subaccount; and
(d)
the Drinking Water Origination Fee Subaccount, which consists of the origination 
fee paid under Section 
73-10c-10
.
(4)
State money in the Water Quality Security Subaccount and the Drinking Water Security 
Subaccount may be applied to meet match requirements for federal funds under the 
Clean Water Act, 33 U.S.C. Sec. 1251 et seq. and the Safe Drinking Water Act, 42 
U.S.C. Sec. 300f et seq.
(5)
If the money in the security fund is insufficient for the purposes for which the security 
fund is established, the council shall ask the governor to request the Legislature to 
appropriate additional money to the account.
(6)
(a)
The Drinking Water Board and Water Quality Board may use the money in the 
appropriate security fund subaccount only to the extent of the money available in the 
account, for the support of drinking water projects and wastewater projects in 
accordance with the terms of credit enhancement agreements, grant agreements, and 
loan agreements.
(b)
Repayments to the security fund from loans made by the acting board, money 
allocated by the Legislature, and interest accrued on the money shall remain available 
for use by that board for further project funding.
(c)
The Drinking Water Board and Water Quality Board may use the money in the 
origination fee subaccount to administer this chapter.
(7)
Funds received under the Safe Drinking Water Act, 42 U.S.C. Sec. 300f et seq. may be 
used for providing financial assistance to community water systems and nonprofit 
noncommunity water systems as defined and within the limits of that act.
Section 9, Section 
73-10g-107
 is amended to read:
73-10g-107
. Water Infrastructure Fund.
(1)
There is created an enterprise fund known as the "Water Infrastructure Fund," which is 
referred to in this section as the "fund."
(2)
The fund shall consist of:
(a)
appropriations from the Legislature;
(b)
money from the federal government;
(c)
grants or donations from a person;
(d)
money made available to the state for purposes of water infrastructure projects from 
any source;
(e)
money received for the repayment of loans made from 
the fund; and
the Water 
Resources Cities Water Loan Fund that were issued before May 7, 2025;
(f)
money transferred to the fund under Subsection 
(5)
; and
(f)
(g)
interest and earnings on the fund.
(3)
The state treasurer shall invest the money in the fund according to Title 51, Chapter 7, 
State Money Management Act, except that interest or other earnings derived from those 
investments shall be deposited into the fund.
(4)
(a)
The Water Development Coordinating Council may use money in the fund to pay 
for the costs of administering Part 6, Planning and Prioritization, including staff 
directly related to the activities of the Water Development Coordinating Council 
under Part 6, Planning and Prioritization.
(b)
The division may use money in the fund to pay for the costs of the study required by 
Section 
73-10-39
.
(c)
Fund money may be used
 to issue loans or grants prioritized 
, 
in accordance with 
Section 
73-10g-603
.
, to provide money to a relevant agency, as defined in Section 
73-10g-601
.
(5)
(a)
Each fiscal year beginning with fiscal year 2027, the Division of Finance shall 
transfer the money described in this Subsection 
(5)
 to the fund at the close of the 
fiscal year.
(b)
The Water Quality Board shall at the close of a fiscal year beginning with fiscal year 
2027:
(i)
determine the amount of money in the Water Quality Security - Utah Wastewater 
Loan Program Subaccount, created in Section 
73-10c-5
, that is in excess of the 
money needed to fund loans authorized in the previous fiscal year under the Utah 
Wastewater Loan Program;
(ii)
determine the amount of the money described in Subsection 
(5)(b)(i)
 that should 
be transferred under this Subsection 
(5)(b)
; and
(iii)
direct the Division of Finance to transfer the amount of money described in 
Subsection (5)(b)(ii) to the fund.
(c)
The Drinking Water Board shall at the close of a fiscal year beginning with fiscal 
year 2027:
(i)
determine the amount of money in the Drinking Water Security - Drinking Water 
Loan Program Subaccount, created in Section 
73-10c-5
, that is in excess of the 
money needed to fund loans authorized in the previous fiscal year under the 
Drinking Water Loan Program;
(ii)
determine the amount of the money described in Subsection 
(5)(c)(i)
 that should 
be transferred under this Subsection (5)(c); and
(iii)
direct the Division of Finance to transfer the amount of money described in 
Subsection (5)(c)(ii) to the fund.
(d)
The Board of Water Resources shall at the close of a fiscal year beginning with fiscal 
year 2027:
(i)
determine the amount of money in the Water Resources Conservation and 
Development Fund, created in Section 
73-10-24
, that is in excess of the sum of the 
money:
(A)
specified in Subsection 
59-12-103(5)(d)
 for the purposes described in 
Subsection 
59-12-103(5)(d)
; and
(B)
needed to fund loans or grants authorized in the previous fiscal year under 
Chapter 10, Board of Water Resources - Division of Water Resources;
(ii)
determine the amount of the money described in Subsection 
(5)(d)(i)
 that should 
be transferred under this Subsection 
(5)(d)
; and
(iii)
direct the Division of Finance to transfer the amount of money described in 
Subsection 
(5)(d)(ii)
 to the fund.
Section 10, Section 
73-10g-502
 is amended to read:
73-10g-502
. Capital asset management for a water conservancy district.
(1)
As a condition of receiving state or federal financing or grants to be used for an 
improvement to a capital asset related to water infrastructure, the governing body of a 
water 
provider
conservancy district
 shall commit to adopt a capital asset management 
plan.
(2)
(a)
The Drinking Water Board shall make rules, in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
, to establish the elements of a 
capital asset management plan required under Subsection 
(1)
 for a water provider that 
is a retail water supplier.
(b)
(2)
The Board of Water Resources shall make rules, in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
, to establish the elements of a capital 
asset management plan required under Subsection 
(1)
 for a water provider that is a water 
conservancy district.
(3)
A qualified water conservancy district, as defined in Section 
17B-2a-1010
, is not subject 
to this section but shall comply with Section 
17B-2a-1010
.
Section 11, Section 
73-10g-502.5
 is enacted to read:
73-10g-502.5
. Capital asset management and reserve funding analysis for public 
water systems.
(1)
As used in this section:
(a)
"Board" means the Drinking Water Board appointed under Section 
19-4-103
.
(b)
"Public water system" means the same as that term is defined in Section 
19-4-102
.
(c)
"Reserve analysis" means a detailed evaluation of a public water system's reserves, 
assessing fund balances and projected future needs to ensure sufficient money is set 
aside to cover repairs, replacements, or restoration of water infrastructure capital 
assets and operational needs to determine:
(i)
the need for a reserve fund to accumulate reserve money; and
(ii)
the appropriate amount of money in a reserve fund, as determined by the public 
water system through recognized financial practices for public water systems, 
such as updated rate studies, budgeting, asset management, and financing 
resources.
(2)
By no later than July 1, 2028, as a condition of receiving state or federal financing or 
grants, the governing body of a public water system that is not a water conservancy 
district shall adopt a capital asset management plan.
(3)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
Drinking Water Board shall make rules that establish the elements of a capital asset 
management plan for a public water system that is not a water conservancy district.
(4)
By no later than July 1, 2028, as a condition of receiving state or federal financing or 
grants, the governing body of a public water system shall adopt a capital asset reserve 
funding plan that includes:
(a)
an inventory of the major capital assets identified in a reserve analysis that 
reasonably require reserve money;
(b)
a statement of the condition and probable remaining useful life, as of the date of the 
reserve analysis, of each capital asset identified under Subsection 
(4)(a)
;
(c)
an estimate of the cost to renew, replace, or upgrade each capital asset identified 
under Subsection 
(4)(a)
;
(d)
an estimate of the total annual contribution to a reserve fund necessary to meet the 
costs identified in Subsection 
(4)(c)
 during a capital asset's useful life and at the end 
of a capital asset's useful life;
(e)
an analysis of a reserve fund's relationship to the setting of water rates, including the 
setting of rates pursuant to recognized affordability metrics for nondiscretionary 
indoor water use for health and sanitation; and
(f)
a reserve funding plan that:
(i)
recommends how the public water system may fund the costs described in 
Subsection (4)(c), which may include long term financing strategies in addition to 
cash reserves such as municipal bonding when authorized; and
(ii)
does not rely on obtaining grants to fund the reserve fund.
(5)
The governing body of a public water system required to adopt a capital asset reserve 
funding plan under this section shall update the public water system's capital asset 
reserve funding plan every five years.
(6)
The governing body of a public water system required to adopt a capital asset reserve 
funding plan under this section shall collect money in accordance with the capital asset 
reserve funding plan recommendations described in Subsection (4)(f).
(7)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
Drinking Water Board shall make rules that:
(a)
provide a process under which the division may monitor a public water system's 
compliance with this section; and
(b)
impose administrative penalties similar to the penalties imposed under Section 
19-4-109
 for failure to comply with this section.
Section 12, Section 
73-10g-601
 is amended to read:
73-10g-601
. Definitions.
As used in this part:
(1)
"Agency plan" means a water infrastructure plan adopted by a relevant agency.
(2)
"Executive director" means the executive director of the Department of Natural 
Resources.
(3)
"Relevant agency" means:
(a)
the Division of Water Resources;
(b)
the Division of Drinking Water;
 and
(c)
the Division of Water Quality
;
.
(d)
the Housing and Community Development Division; and
(e)
the Department of Agriculture and Food.
(4)
"State council" means the Water Development Coordinating Council created in Sections 
73-10c-3
 and 
79-2-201
.
(5)
"Utah Watersheds Council" means the Utah Watersheds Council created in Section 
73-10g-304
.
(6)
"Water infrastructure fund money" means money in
:
(a)
the Water Infrastructure Fund
,
 created by Section 
73-10g-107
.
;
(b)
the Water Quality Security - Utah Wastewater Loan Program Subaccount, created in 
Section 
73-10c-5
;
(c)
the Drinking Water Security - Drinking Water Loan Program Subaccount, created in 
Section 
73-10c-5
;
(d)
the Water Resources Conservation and Development Fund, created in Section 
73-10-24
; or
(e)
another fund or account administered by a relevant agency:
(i)
unless use of the money is restricted by federal law; or
(ii)
except as provided in Section 
73-10g-606
.
Section 13, Section 
73-10g-602
 is amended to read:
73-10g-602
. Unified water infrastructure plan -- Annual reporting.
(1)
(a)
The state council shall adopt a unified water infrastructure plan in accordance with 
this section by no later than March 1, 2026.
(b)
The state council shall update the unified water infrastructure plan as needed, but at 
least every four years.
(c)
A relevant agency may request that the state council amend the unified water 
infrastructure plan.
(2)
A unified water infrastructure plan shall:
(a)
describe water infrastructure projects:
(i)
needed to maintain the reliable supply of safe and clean water within the state; and
(ii)
organized in 10-year phases up to at least a 20-year plan;
(b)
be consistent with the policies, goals, and recommendations of the state water plan; 
and
(c)
be based primarily on agency plans submitted by the relevant agencies.
(3)
Beginning on June 30, 2025, a relevant agency shall:
(a)
annually adopt a water infrastructure agency plan that describes and ranks needed 
water infrastructure projects under the jurisdiction of the relevant agency;
(b)
include in the agency plan ranking justifications and descriptions of whether a water 
infrastructure project is:
(i)
ready for construction;
(ii)
planning for construction; or
(iii)
a future project;
(c)
organize an agency plan under this section in 10-year phases up to at least a 20-year 
plan; and
(d)
annually submit the agency plan to the state council by no later than June 30.
(4)
Before adopting or amending a unified water infrastructure plan, the state council shall 
provide a draft of the proposed unified water infrastructure plan to the Utah Watersheds 
Council and the Utah Watersheds Council may advise the state council concerning the 
unified water infrastructure plan.
(5)
(a)
Beginning September 1, 2024, a relevant agency shall annually prepare a report 
and submit it to the state council concerning the funds or accounts that the relevant 
agency administers.
(b)
The report required by this Subsection (5) shall provide for the fund or account:
(i)
the balance at the beginning of the fiscal year of the report;
(ii)
revenues received from any source during the fiscal year;
(iii)
the ending balance after the close of the fiscal year; and
(iv)
projected revenues and disbursements for the coming fiscal year.
(c)
The state council shall compile the reports submitted pursuant to this Subsection (5) 
by no later than October 1 and distribute the compiled report to:
(i)
the governor;
(ii)
the Legislative Management Committee;
(iii)
the Natural Resources, Agriculture, and Environment Interim Committee;
 and
(iv)
the Natural Resources, Agriculture, and Environmental Quality Appropriations 
Subcommittee
.
; and
(v)
the Legislative Water Development Commission.
Section 14, Section 
73-10g-603
 is amended to read:
73-10g-603
. Ranking and prioritizing water infrastructure projects.
(1)
The state council, in consultation with the relevant agencies, shall develop a written 
prioritization process for ranking and prioritizing water infrastructure projects that are or 
will be funded by water infrastructure fund money beginning with fiscal year 2027. The 
written prioritization process shall:
(a)
identify water infrastructure projects listed in the unified water infrastructure plan 
described in Section 
73-10g-602
;
 and
(b)
establish a process under which an applicant may apply for funding of a water 
infrastructure project listed in the unified water infrastructure plan;
(c)
provide for the assignment by the state council of a water infrastructure project 
application to a relevant agency;
(b)
(d)
provide for a relevant agency to 
rank the water infrastructure projects 
identified 
under Subsection (1)(a).
assigned to the relevant agency under Subsection 
(1)(c)
;
(e)
on the basis of the ranking of water infrastructure projects under Subsection 
(1)(d)
, 
establish a process for the state council to prioritize water infrastructure projects; and
(f)
establish a process for transferring money from the Water Infrastructure Fund, 
created in Section 
73-10g-107
, into a fund or account described in Subsection 
73-10g-601(6)
 to fund water infrastructure projects prioritized by the state council.
(2)
The following shall be included in the written prioritization process under Subsection (1):
(a)
subject to Subsection (3), categories of the types of water infrastructure projects 
against which other water infrastructure projects are prioritized
, including:
(i)
drinking water projects;
(ii)
wastewater projects;
(iii)
stormwater projects;
(iv)
secondary water projects;
(v)
dam and reservoir projects;
(vi)
off-farm agriculture projects; and
(vii)
water reuse projects
;
(b)
exclusion of the following types of water infrastructure projects:
(i)
an emergency water infrastructure project; or
(ii)
a small water infrastructure project that receives less than an amount of water 
infrastructure fund money established by rule made by the state council in 
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(c)
hardship criteria that at a minimum refer to the hardship criteria of the Division of 
Drinking Water and the Division of Water Quality;
(d)
criteria related to the public interest, including conservation and the protection of 
public health and safety;
(e)
criteria to ensure that the project is adequately designed based on sound engineering 
and geologic considerations;
(f)
criteria for ranking or prioritizing a local water infrastructure project based on:
(i)
a local water infrastructure plan that is consistent with this section; and
(ii)
consultation with local entities about local water infrastructure projects;
(g)
criteria for ranking or prioritizing a water infrastructure project when water 
infrastructure fund money will be used to match federal funding;
(h)
a requirement that a person who receives water infrastructure fund money for a water 
infrastructure project:
(i)
engage in long-term planning consistent with Section 
73-10g-602
; and
(ii)
comply with Section 
73-10g-605
; and
(i)
any other provision the state council considers appropriate.
(3)
When including categories of types of water infrastructure projects used in the written 
prioritization process, the state council shall consider:
(a)
whether to apply percentages of water infrastructure fund money assigned to each 
category;
(b)
the size and resources of recipients; and
(c)
the potential purposes of the different types of water infrastructure projects, such as 
agricultural, municipal, or industrial uses.
(4)
In developing the written prioritization process, the state council shall seek and consider 
public comment related to developing the written prioritization process by holding 
public meetings at locations throughout the state in accordance with Title 52, Chapter 4, 
Open and Public Meetings Act.
(5)
(a)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, 
the state council shall make rules establishing the written prioritization process under 
Subsection (1).
(b)
The state council shall submit a proposed rule to 
a committee or commission 
designated by the Legislative Management Committee 
the Legislative Water 
Development Commission 
for review before taking final action on the proposed rule 
or a proposed amendment to the rule described in this Subsection (5).
(6)
In determining priorities and funding levels of water infrastructure projects, the state 
council shall use the ranked list of water infrastructure projects based on the criteria 
adopted in the written prioritization process under Subsection (1).
(7)
A relevant agency shall annually report to the state council on the status of new water 
infrastructure projects, including water infrastructure projects that are funded by the 
Legislature in an appropriation act.
(8)
For a fiscal year before fiscal year 2027, a relevant agency shall prioritize water 
infrastructure projects within the jurisdiction of the relevant agency and not the state 
council.
Section 15, Section 
73-10g-604
 is amended to read:
73-10g-604
. State council's general duties related to prioritizing -- Reporting -- 
Relevant agency actions.
(1)
The state council shall:
(a)
beginning with fiscal year 2027, determine priorities and funding levels of water 
infrastructure projects for each fiscal year based on 
ranked
the
 water infrastructure 
projects
 ranked by relevant agencies under Section 
73-10g-603
;
(b)
hold public meetings in accordance with Title 52, Chapter 4, Open and Public 
Meetings Act, and otherwise provide for public input on funding of water 
infrastructure projects; and
(c)
make rules in accordance with Title 63G, Chapter 3, Utah Administrative 
Rulemaking Act, necessary to perform the state council's duties related to:
(i)
adopting the unified water infrastructure plan;
(ii)
adopting a written prioritization 
plan
process
; and
(iii)
prioritizing and setting funding levels for water infrastructure projects.
(2)
(a)
For water infrastructure projects prioritized with funding provided under this title, 
the state council shall annually report, by no later than the October interim meeting of 
the Legislature, to 
a committee or commission designated by the Legislative 
Management Committee
the Legislative Water Development Commission
:
(i)
a prioritized list of the water infrastructure projects and the funding levels 
available for those water infrastructure projects; and
(ii)
the unfunded water infrastructure projects and maintenance needs within the state.
(b)
The 
committee or commission designated by the Legislative Management 
Committee under Subsection (2)(a)
Legislative Water Development Commission
shall:
(i)
review the 
prioritized 
list reported by the state council; and
(ii)
recommend to the Legislature:
(A)
the amount of additional funding to allocate to water infrastructure projects; 
and
(B)
the source of revenue for the additional funding allocation under Subsection 
(2)(b)(ii)(A).
(3)
A relevant agency shall administer money prioritized under this part in a manner 
consistent with this part.
Section 16, Section 
73-10g-605
 is amended to read:
73-10g-605
. Capital asset management and reserve analysis -- Assistance for 
person seeking state funds.
(1)
As a condition of receiving water infrastructure fund money for a water infrastructure 
project by a loan or grant, a recipient shall:
(a)
conduct a reserve study showing how the recipient shall:
(i)
repay the loan if the recipient receives a loan; and
(ii)
collect money for repair and replacement of the water infrastructure project;
(b)
if the recipient receives a loan, update the reserve study described in Subsection 
(1)(a) every five years or until the loan is repaid; and
(c)
comply with the relevant capital asset management requirements under:
(i)
Section 
19-5-202
 for a water infrastructure project related to wastewater or sewage 
infrastructure;
 or
(ii)
Section 
73-10g-502
 for a water 
provider's
conservancy district's
, as defined in 
Section 
73-10g-501
, water infrastructure project that is not described in 
Subsection (1)(c)(i)
.
; or
(iii)
Section 
73-10g-502.5
, for a public water system, as defined in Section 
73-10g-502.5
, that is not a water conservancy district.
(2)
A reserve study required under this section shall include:
(a)
a list of the components identified in the reserve analysis that will reasonably require 
reserve funds;
(b)
a statement of the probable remaining useful life, as of the date of the reserve 
analysis, of each component identified in the reserve analysis;
(c)
an estimate of the cost to repair, replace, or restore each component identified in the 
reserve analysis;
(d)
an estimate of the total annual contribution to a reserve fund necessary to meet the 
cost to repair, replace, or restore each component identified in the reserve analysis 
during the component's useful life and at the end of the component's useful life; and
(e)
a reserve funding plan that recommends how the system may fund the annual 
contribution described in Subsection (2)(d).
(3)
If a person seeking 
water infrastructure fund money under this part
state or federal 
financing or grants
 establishes a need to the satisfaction of a relevant agency, the 
relevant agency may provide the person:
(a)
water infrastructure fund money to assist the recipient in complying with the 
planning, reserve analysis, and capital asset management requirements of this part
 or 
Part 5, Capital Assets for Water
; or
(b)
technical assistance with the planning, reserve analysis, or capital asset management 
requirements of this part
 or Part 5, Capital Assets for Water
.
Section 17, Section 
73-10g-606
 is enacted to read:
73-10g-606
. Scope of part.
This part does not apply to:
(1)
the Water Resources Construction Fund created in Section 
73-10-8
; and
(2)
the Water Infrastructure Restricted Account created in Section 
73-10g-103
.
Section 18, 
Repealer.
Water Resources Cities Water Loan Fund -- Annual appropriation -- 
Interest.
Review and reporting by the Water Development Coordinating 
Council.
Section 19. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-6-25 6:58 PM