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H0284.....................................................by WAYS AND MEANS WATER RIGHTS - Amends existing law to revise criteria to be considered by the director of the Department of Water Resources associated with the determination of applications for appropriation of water, change in point of diversion, place of use, period of use or nature of use of water under established rights, certain exchanges of water and proposed rentals of water from the water supply bank; and to clarify the manner in which minimum stream flow water rights may be established. 02/20 House intro - 1st rdg - to printing 02/21 Rpt prt - to Res/Con 03/04 Rpt out - rec d/p - to 2nd rdg 03/05 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 53-15-2 AYES -- Barraclough, Barrett, Bauer, Bedke, Bell, Black, Block, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy, Denney, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Kellogg, Kulczyk, Lake, Langford, McGeachin, McKague, Meyer, Miller, Moyle, Nielsen, Raybould, Ridinger, Ring, Roberts, Rydalch, Sali, Schaefer, Shepherd, Shirley, Skippen, Smith(24), Smylie, Snodgrass, Stevenson, Tilman, Wills, Wood, Mr. Speaker NAYS -- Andersen, Bieter, Boe, Deal, Douglas, Henbest, Jaquet, Jones, Langhorst, Martinez, Ringo, Robison, Sayler, Smith(30), Trail Absent and excused -- Mitchell, Naccarato Floor Sponsor - Stevenson Title apvd - to Senate 03/10 Senate intro - 1st rdg - to Res/Env 04/03 Rpt out - rec d/p - to 2nd rdg 04/04 2nd rdg - to 3rd rdg 04/07 3rd rdg - PASSED - 28-7-0 AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram, Keough, Little, Lodge, Marley, McKenzie, McWilliams, Noble, Noh, Pearce, Richardson, Sorensen, Stegner, Sweet, Williams NAYS -- Burkett, Calabretta, Kennedy, Malepeai(Kumm), Schroeder, Stennett, Werk Absent and excused -- None Floor Sponsor - Noh Title apvd - to House 04/08 To enrol 04/09 Rpt enrol - Sp signed - Pres signed 04/10 To Governor 04/15 Governor signed Session Law Chapter 298 Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 284 BY WAYS AND MEANS COMMITTEE 1 AN ACT 2 RELATING TO WATER RIGHTS; AMENDING SECTION 42-202B, IDAHO CODE, TO PROVIDE FOR 3 CERTAIN APPLICATION OF DEFINITIONS AND TO DEFINE A TERM; AMENDING SECTION 4 42-203A, IDAHO CODE, TO REVISE CRITERIA TO BE CONSIDERED BY THE DIRECTOR 5 OF THE DEPARTMENT OF WATER RESOURCES ASSOCIATED WITH THE DETERMINATION OF 6 APPLICATIONS FOR THE APPROPRIATION OF WATER AND TO CLARIFY THE MANNER IN 7 WHICH MINIMUM STREAM FLOW WATER RIGHTS MAY BE ESTABLISHED AND TO MAKE 8 TECHNICAL CORRECTIONS; AMENDING SECTION 42-222, IDAHO CODE, TO REVISE CRI- 9 TERIA TO BE CONSIDERED BY THE DIRECTOR ASSOCIATED WITH THE DETERMINATION 10 OF APPLICATIONS TO CHANGE THE POINT OF DIVERSION, PLACE OF USE, PERIOD OF 11 USE OR NATURE OF USE OF WATER UNDER ESTABLISHED RIGHTS AND TO CLARIFY THE 12 MANNER IN WHICH MINIMUM STREAM FLOW WATER RIGHTS MAY BE ESTABLISHED; 13 AMENDING SECTION 42-240, IDAHO CODE, TO REVISE CRITERIA TO BE CONSIDERED 14 BY THE DIRECTOR ASSOCIATED WITH THE DETERMINATION OF APPLICATIONS TO MAKE 15 CERTAIN EXCHANGES OF WATER; AND AMENDING SECTION 42-1763, IDAHO CODE, TO 16 REVISE CRITERIA TO BE CONSIDERED BY THE DIRECTOR ASSOCIATED WITH THE 17 DETERMINATION OF PROPOSED RENTALS OF WATER FROM THE WATER SUPPLY BANK. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. That Section 42-202B, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 42-202B. DEFINITIONS. Whenever used in thischaptertitle, the term: 22 (1) "Consumptive use" means that portion of the annual volume of water 23 diverted under a water right that is transpired by growing vegetation, evapo- 24 rated from soils, converted to nonrecoverable water vapor, incorporated into 25 products, or otherwise does not return to the waters of the state. Consumptive 26 use does not include any water that falls as precipitation directly on the 27 place of use unless the precipitation is captured, controlled and used under 28 an appurtenant water right. 29 (2) "Digital boundary" means the boundary encompassing and defining an 30 area consisting of or incorporating the place of use or permissible place of 31 use for a water right prepared and maintained by the department of water 32 resources using a geographic information system in conformance with the 33 national standard for spatial data accuracy or succeeding standard. 34 (3) "Local public interest" is defined as the interests that the people 35 in the area directly affected by a proposed water use have in the effects of 36 such use on the public water resource. 37 (4) "Municipality" means a city incorporated under section 50-102, Idaho 38 Code, a county, or the state of Idaho acting through a department or institu- 39 tion. 40 (45) "Municipal provider" means: 41 (a) A municipality that provides water for municipal purposes to its res- 42 idents and other users within its service area; 43 (b) Any corporation or association holding a franchise to supply water 2 1 for municipal purposes, or a political subdivision of the state of Idaho 2 authorized to supply water for municipal purposes, and which does supply 3 water, for municipal purposes to users within its service area; or 4 (c) A corporation or association which supplies water for municipal pur- 5 poses through a water system regulated by the state of Idaho as a "public 6 water supply" as described in section 39-103(10), Idaho Code. 7 (56) "Municipal purposes" refers to water for residential, commercial, 8 industrial, irrigation of parks and open space, and related purposes, exclud- 9 ing use of water from geothermal sources for heating, which a municipal pro- 10 vider is entitled or obligated to supply to all those users within a service 11 area, including those located outside the boundaries of a municipality served 12 by a municipal provider. 13 (67) "Planning horizon" refers to the length of time that the department 14 determines is reasonable for a municipal provider to hold water rights to meet 15 reasonably anticipated future needs. The length of the planning horizon may 16 vary according to the needs of the particular municipal provider. 17 (78) "Reasonably anticipated future needs" refers to future uses of water 18 by a municipal provider for municipal purposes within a service area which, on 19 the basis of population and other planning data, are reasonably expected to be 20 required within the planning horizon of each municipality within the service 21 area not inconsistent with comprehensive land use plans approved by each 22 municipality. Reasonably anticipated future needs shall not include uses of 23 water within areas overlapped by conflicting comprehensive land use plans. 24 (89) "Service area" means that area within which a municipal provider is 25 or becomes entitled or obligated to provide water for municipal purposes. For 26 a municipality, the service area shall correspond to its corporate limits, or 27 other recognized boundaries, including changes therein after the permit or 28 license is issued. The service area for a municipality may also include areas 29 outside its corporate limits, or other recognized boundaries, that are within 30 the municipality's established planning area if the constructed delivery sys- 31 tem for the area shares a common water distribution system with lands located 32 within the corporate limits. For a municipal provider that is not a municipal- 33 ity, the service area shall correspond to the area that it is authorized or 34 obligated to serve, including changes therein after the permit or license is 35 issued. 36 SECTION 2. That Section 42-203A, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 42-203A. NOTICE UPON RECEIPT OF APPLICATION -- PROTEST -- HEARING AND 39 FINDINGS -- APPEALS. (1) Upon receipt of an application to appropriate the 40 waters of this state, the department of water resources,shall prepare a 41 notice in such form as the department may prescribe, specifying: (a) the num- 42 ber of the application; (b) the date of filing thereof; (c) the name and post- 43 office address of the applicant; (d) the source of the water supply; (e) the 44 amount of water to be appropriated; (f) in general the nature of the proposed 45 use; (g) the approximate location of the point of diversion; and (h)andthe 46 point of use. The department shall also state in said notice that any protest 47 against the approval of such application, in form prescribed by the depart- 48 ment, shall be filed with the department within ten (10) days from the last 49 date of publication of such notice. 50 (2) The director of the department of water resources shall cause the 51 notice to be published in a newspaper printed within the county wherein the 52 point of diversion lies,or, in the event no newspaper is printed in said 53 county, then in a newspaper of general circulation therein. When the applica- 3 1 tion proposes a diversion in excess of ten (10) c.f.s. or one thousand (1,000) 2 acre feet, the director shall cause the notice to be published in a newspaper 3 or newspapers sufficient to achieve statewide circulation. Any notice shall be 4 published at least once each week for two (2) successive weeks. 5 (3) The director of the department shall cause a copy of the notice of 6 application to be sent by ordinary mail to any person who requests in writing 7 to receive any class of notices of application and who pays an annual mailing 8 fee as established by departmental regulation. 9 (4) Any person, firm, association or corporation concerned in any such 10 application may, within the time allowed in the notice of application, file 11 with said director of the department of water resources a written protest, 12 together with the statutory filing fee as provided in section 42-221, Idaho 13 Code, against the approval of such application, which protest shall state the 14 name and address of protestant and shall be signed by him or by his agent or 15 attorney and shall clearly set forth his objections to the approval of such 16 application. Hearing upon the protest so filed shall be held within sixty (60) 17 days from the date such protest is received. Notice of this hearing shall be 18 given by mailing notice not less than ten (10) days before the date of hearing 19 and shall be forwarded to both the applicant and the protestant, or 20 protestants, by certified mail. Such notice shall state the names of the 21 applicant and protestant, or protestants, the time and place fixed for the 22 hearing and such other information as the director of the department of water 23 resources may deem advisable. In the event that no protest is filed, then the 24 director of the department of water resources may forthwith approve the appli- 25 cation, providing the same in all respects conforms with the requirements of 26 this chapter, and with the regulations of the department of water resources. 27 (5) Such hearing shall be conducted in accordance with the provisions of 28 section 42-1701A(1) and (2), Idaho Code. The director of the department of 29 water resources shall find and determine from the evidence presented to what 30 use or uses the water sought to be appropriated can be and are intended to be 31 applied. In all applications whether protested or not protested, where the 32 proposed use is such (a) that it will reduce the quantity of water under 33 existing water rights, or (b) that the water supply itself is insufficient for 34 the purpose for which it is sought to be appropriated, or (c) where it appears 35 to the satisfaction of the director that such application is not made in good 36 faith, is made for delay or speculative purposes, or (d) that the applicant 37 has not sufficient financial resources with which to complete the work 38 involved therein, or (e) that it will conflict with the local public interest,39where the local public interest isas definedas the affairs of the people in40the area directly affected by the proposed usein section 42-202B, Idaho Code, 41 or (f) that it is contrary to conservation of water resources within the state 42 of Idaho, or (g) that it will adversely affect the local economy of the water- 43 shed or local area within which the source of water for the proposed use orig- 44 inates, in the case where the place of use is outside of the watershed or 45 local area where the source of water originates; the director of the depart- 46 ment of water resources may reject such application and refuse issuance of a 47 permit therefor, or may partially approve and grant a permit for a smaller 48 quantity of water than applied for, or may grant a permit upon conditions. 49 Provided however, that minimum stream flow water rights may not be established 50 under the local public interest criterion, and may only be established pursu- 51 ant to chapter 15, title 42, Idaho Code. The provisions of this section shall 52 apply to any boundary stream between this and any other state in all cases 53 where the water sought to be appropriated has its source largely within the 54 state, irrespective of the location of any proposed power generating plant. 55 (6) Any person or corporation who has formally appeared at the hearing, 4 1 aggrieved by the judgment of the director of the department of water 2 resources, may seek judicial review thereof in accordance with section 3 42-1701A(4), Idaho Code. 4 SECTION 3. That Section 42-222, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 42-222. CHANGE IN POINT OF DIVERSION, PLACE OF USE, PERIOD OF USE, OR 7 NATURE OF USE OF WATER UNDER ESTABLISHED RIGHTS -- FORFEITURE AND EXTENSION -- 8 APPEALS. (1) Any person, entitled to the use of water whether represented by 9 license issued by the department of water resources, by claims to water rights 10 by reason of diversion and application to a beneficial use as filed under the 11 provisions of this chapter, or by decree of the court, who shall desire to 12 change the point of diversion, place of use, period of use or nature of use of 13 all or part of the water, under the right shall first make application to the 14 department of water resources for approval of such change. Such application 15 shall be upon forms furnished by the department and shall describe the right 16 licensed, claimed or decreed which is to be changed and the changes which are 17 proposed, and shall be accompanied by the statutory filing fee as in this 18 chapter provided. Upon receipt of such application it shall be the duty of the 19 director of the department of water resources to examine same, obtain any con- 20 sent required in section 42-108, Idaho Code, and if otherwise proper to pro- 21 vide notice of the proposed change in the same manner as applications under 22 section 42-203A, Idaho Code. Such notice shall advise that anyone who desires 23 to protest the proposed change shall file notice of protests with the depart- 24 ment within ten (10) days of the last date of publication. Upon the receipt of 25 any protest, accompanied by the statutory filing fee as provided in section 26 42-221, Idaho Code, it shall be the duty of the director of the department of 27 water resources to investigate the same and to conduct a hearing thereon. He 28 shall also advise the watermaster of the district in which such water is used 29 of the proposed change and the watermaster shall notify the director of the 30 department of water resources of his recommendation on the application, and 31 the director of the department of water resources shall not finally determine 32 the action on the application for change until he has received from such 33 watermaster his recommendation thereof, which action of the watermaster shall 34 be received and considered as other evidence. 35 When the nature of use of the water right is to be changed to municipal 36 purposes and some or all of the right will be held by a municipal provider to 37 serve reasonably anticipated future needs, the municipal provider shall pro- 38 vide to the department sufficient information and documentation to establish 39 that the applicant qualifies as a municipal provider and that the reasonably 40 anticipated future needs, the service area and the planning horizon are con- 41 sistent with the definitions and requirements specified in this chapter. The 42 service area need not be described by legal description nor by description of 43 every intended use in detail, but the area must be described with sufficient 44 information to identify the general location where the water under the water 45 right is to be used and the types and quantity of uses that generally will be 46 made. 47 When a water right or a portion thereof to be changed is held by a munici- 48 pal provider for municipal purposes, as defined in section 42-202B, Idaho 49 Code, that portion of the right held for reasonably anticipated future needs 50 at the time of the change shall not be changed to a place of use outside the 51 service area, as defined in section 42-202B, Idaho Code, or to a new nature of 52 use. 53 The director of the department of water resources shall examine all the 5 1 evidence and available information and shall approve the change in whole, or 2 in part, or upon conditions, provided no other water rights are injured 3 thereby, the change does not constitute an enlargement in use of the original 4 right, the change is consistent with the conservation of water resources 5 within the state of Idaho and is in the local public interest as defined in 6 section42-203A(5)42-202B, Idaho Code, the change will not adversely affect 7 the local economy of the watershed or local area within which the source of 8 water for the proposed use originates, in the case where the place of use is 9 outside of the watershed or local area where the source of water originates, 10 and the new use is a beneficial use, which in the case of a municipal provider 11 shall be satisfied if the water right is necessary to serve reasonably antici- 12 pated future needs as provided in this chapter. The director may consider con- 13 sumptive use, as defined in section 42-202B, Idaho Code, as a factor in deter- 14 mining whether a proposed change would constitute an enlargement in use of the 15 original water right. The director shall not approve a change in the nature of 16 use from agricultural use where such change would significantly affect the 17 agricultural base of the local area. The transfer of the right to the use of 18 stored water for irrigation purposes shall not constitute an enlargement in 19 use of the original right even though more acres may be irrigated, if no other 20 water rights are injured thereby. A copy of the approved application for 21 change shall be returned to the applicant and he shall be authorized upon 22 receipt thereof to make the change and the original water right shall be pre- 23 sumed to have been amended by reason of such authorized change. In the event 24 the director of the department of water resources determines that a proposed 25 change shall not be approved as provided in this section, he shall deny the 26 same and forward notice of such action to the applicant by certified mail, 27 which decision shall be subject to judicial review as hereafterprovidedset 28 forth. Provided however, minimum stream flow water rights may not be estab- 29 lished under the local public interest criterion, and may only be established 30 pursuant to chapter 15, title 42, Idaho Code. 31 (2) All rights to the use of water acquired under this chapter or other- 32 wise shall be lost and forfeited by a failure for the term of five (5) years 33 to apply it to the beneficial use for which it was appropriated and when any 34 right to the use of water shall be lost through nonuse or forfeiture such 35 rights to such water shall revert to the state and be again subject to appro- 36 priation under this chapter; except that any right to the use of water shall 37 not be lost through forfeiture by the failure to apply the water to beneficial 38 use under certain circumstances as specified in section 42-223, Idaho Code. 39 (3) Upon proper showing before the director of the department of water 40 resources of good and sufficient reason for nonapplication to beneficial use 41 of such water for such term of five (5) years, the director of the department 42 of water resources is hereby authorized to grant an extension of time extend- 43 ing the time for forfeiture of title for nonuse thereof, to such waters for a 44 period of not to exceed five (5) additional years. 45 (4) Application for an extension shall be made before the end of the five 46 (5) year period upon forms to be furnished by the department of water 47 resources and shall fully describe the right on which an extension of time to 48 resume the use is requested and the reasons for such nonuse and shall be 49 accompanied by the statutory filing fee; provided that water rights protected 50 from forfeiture under the provisions of section 42-223, Idaho Code, are exempt 51 from this requirement. 52 (a) Upon the receipt of such application it shall be the duty of the 53 director of the department of water resources to examine the same and to 54 provide notice of the application for an extension in the same manner as 55 applications under section 42-203A, Idaho Code. The notice shall fully 6 1 describe the right, the extension which is requested and the reason for 2 such nonuse and shall state that any person desiring to object to the 3 requested extension may submit a protest, accompanied by the statutory 4 filing fee as provided in section 42-221, Idaho Code, to the director of 5 the department of water resources within ten (10) days of the last date of 6 publication. 7 (b) Upon receipt of a protest it shall be the duty of the director of the 8 department of water resources to investigate and conduct a hearing thereon 9 as in this chapter provided. 10 (c) The director of the department of water resources shall find from the 11 evidence presented in any hearing, or from information available to the 12 department, the reasons for such nonuse of water and where it appears to 13 the satisfaction of the director of the department of water resources that 14 other rights will not be impaired by granting an extension of time within 15 which to resume the use of the water and good cause appearing for such 16 nonuse, he may grant one (1) extension of five (5) years within which to 17 resume such use. 18 (d) In his approval of the application for an extension of time under 19 this section the director of the department of water resources shall set 20 the date when the use of water is to be resumed. Sixty (60) days before 21 such date the director of the department of water resources shall forward 22 to the applicant at his address of record a notice by certified mail set- 23 ting forth the date on which the use of water is to be resumed and a form 24 for reporting the resumption of the use of the water right. If the use of 25 the water has not been resumed and report thereon made on or before the 26 date set for resumption of use such right shall revert to the state and 27 again be subject to appropriation, as provided in this section. 28 (e) In the event the director of the department of water resources deter- 29 mines that a proposed extension of time within which to resume use of a 30 water right shall not be approved as provided in this section, he shall 31 deny same and forward notice of such action to the applicant by certified 32 mail, which decision shall be subject to judicial review as hereafter pro- 33 vided. 34 (5) Any person or persons feeling themselves aggrieved by the determina- 35 tion of the department of water resources in approving or rejecting an appli- 36 cation to change the point of diversion, place, period of use or nature of use 37 of water under an established right or an application for an extension of time 38 within which to resume the use of water as provided in this section, may, if a 39 protest was filed and a hearing held thereon, seek judicial review pursuant to 40 section 42-1701A(4), Idaho Code. If no protest was filed and no hearing held, 41 the applicant may request a hearing pursuant to section 42-1701A(3), Idaho 42 Code, for the purpose of contesting the action of the director and may seek 43 judicial review of the final order of the director following the hearing pur- 44 suant to section 42-1701A(4), Idaho Code. 45 SECTION 4. That Section 42-240, Idaho Code, be, and the same is hereby 46 amended to read as follows: 47 42-240. APPLICATION FOR RIGHT TO EXCHANGE WATER -- FILING FEE -- NOTICE 48 -- PROTEST -- HEARING -- APPROVAL OR DENIAL -- APPEAL. (1) Any person holding 49 a right for the use of surface water may make application to the director of 50 the department of water resources to exchange water authorized to be diverted 51 under the right with the same or a different source, or with water authorized 52 to be diverted under one (1) or more other rights from the same source or 53 another surface water source. If the application proposes an exchange with 7 1 water under another water right, the application shall be accompanied by an 2 agreement in writing subscribed by the person proposing the exchange and each 3 person or organization owning rights to water with whom the exchange is pro- 4 posed to be made. 5 (2) The application shall be upon forms furnished by the department and 6 shall contain such information as shall enable the director to determine the 7 nature of the proposed exchange, and shall be accompanied by the statutory 8 filing fee provided under section 42-221, Idaho Code, for an application to 9 change a vested water right. 10 (3) Upon receipt of the application, it shall be the duty of the director 11 to examine the same and, if otherwise proper, to cause notice of the proposed 12 exchange to be published in the same manner as applications under section 13 42-203A, Idaho Code. The notice shall fully describe the nature of the pro- 14 posed exchange of water and shall advise that anyone who wishes to protest 15 shall file notice of protest in accordance with the provisions of section 16 42-203A, Idaho Code. 17 (4) Upon the receipt of any protest it shall be the duty of the director 18 to investigate the same and to conduct a hearing thereon. The director shall 19 also advise the watermaster of the district in which the exchange is proposed, 20 if a district exists, and the watermaster shall notify the director of the 21 watermaster's recommendations on the application. The director shall not take 22 final action on the application or exchange until the director has received 23 the recommendations of the watermaster, including recommended conditions nec- 24 essary for the exchange of water to be properly administered and regulated. 25 (5) The director shall examine all the evidence and available information 26 and shall approve the exchange in whole, or in part, or upon conditions, pro- 27 vided no other water rights are injured thereby, the exchange does not consti- 28 tute an enlargement in use of the original right or rights, the exchange is 29 consistent with the conservation of water resources within the state of Idaho, 30andthe exchange is in the local public interest as defined in section42-203A31 42-202B, Idaho Code, and the exchange will not adversely affect the local 32 economy of the watershed or local area within which the source of water for 33 the proposed use originates, in the case where the place of use is outside of 34 the watershed or local area where the source of water originates. Unless 35 otherwise provided in a written agreement between the applicant and other 36 right holders, the director shall condition approval of an exchange so that 37 the exchange will not be operative during times when water is not available to 38 satisfy the exchange, and that during these times the right to use water auto- 39 matically reverts to the place of use authorized under the water rights. A 40 copy of the approved application for exchange shall be provided to the appli- 41 cant and the watermaster, and the applicant shall be authorized upon receipt 42 thereof to make the exchange in accordance with the conditions set forth by 43 the director. Should an approved exchange thereafter be discontinued, the 44 applicant or the applicant's successor in interest must so notify the director 45 and the district watermaster. 46 (6) In the absence of a contrary agreement by the parties to an exchange, 47 when the director has approved a right to exchange storage water for the natu- 48 ral flow of a stream or other water supply, the storage water shall be deliv- 49 ered in preference to any exchange rights subsequently approved using the same 50 storage water right. 51 (7) Any person or persons feeling themselves aggrieved by a final order 52 or final action of the director under this section may, if a protest was filed 53 and hearing held thereon, seek judicial review pursuant to section 54 42-1701A(4), Idaho Code. If no protest was filed and no hearing held, the 55 applicant may request a hearing pursuant to section 42-1701A(3), Idaho Code, 8 1 for the purpose of contesting the action of the director and may seek judicial 2 review of the final order of the director following the hearing pursuant to 3 section 42-1701A(4), Idaho Code. 4 SECTION 5. That Section 42-1763, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 42-1763. RENTALS FROM BANK -- APPROVAL BY DIRECTOR. The terms and condi- 7 tions of any rental of water from the water supply bank must be approved by 8 the director of the department of water resources. The director of the depart- 9 ment of water resources may reject and refuse approval for or may partially 10 approve for a less quantity of water or may approve upon conditions any pro- 11 posed rental of water from the water supply bank where the proposed use is 12 such that it will reduce the quantity of water available under other existing 13 water rights, the water supply involved is insufficient for the purpose for 14 which it is sought, the rental would cause the use of water to be enlarged 15 beyond that authorized under the water right to be rented,or itthe rental 16 will conflict with the local public interestwhere the local public interest17isas definedas the affairs of the people in the area directly affected by18the proposed usein section 42-202B, Idaho Code, or the rental will adversely 19 affect the local economy of the watershed or local area within which the 20 source of water for the proposed use originates, in the case where the place 21 of use is outside of the watershed or local area where the source of water 22 originates. The director shall consider in determining whether to approve a 23 rental of water for use outside of the state of Idaho those factors enumerated 24 in subsection (3) of section 42-401, Idaho Code.
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT STATEMENT OF PURPOSE RS 13046 This legislation clarifies the scope of the "local public interest" review in water right applications, transfers and water supply bank transactions. This legislation is intended to ensure that the Department of Water Resources has adequate authority to require that diversions, transfers and other actions affecting water resources do not frustrate the public's interest in the effective utilization of its water resources. The "local public interest" should be construed to ensure the greatest possible benefit from the public waters is achieved; however, it should not be construed to require the Department to consider secondary effects of an activity simply because that activity happens to use water. For example, the effect of a new manufacturing plant on water quality, resident fish and wildlife and the availability of water for other beneficial uses is appropriately considered under the local public interest criteria. On the other hand, the effect of the manufacturing plant on the air quality is not within the local public interest criteria because it is not an effect of the diversion of water but rather a secondary effect of the proposed plant. While the impact of the manufacturing plant on air quality is important, this effect should be evaluated by DEQ under the E P H A. As noted by the Idaho Supreme Court in Shokal v. Dunn, 109 Idaho 330 (1985), "[i]t is not the primary job of Water Resources to protect the health and welfare of Idaho's citizens and visitors that role is vested" in other agencies. Water Resources role under the "local public interest" is to ensure that proposed water uses are consistent with securing "the greatest possible benefit from [the public waters] for the public." Thus, within the confines of this legislation, Water Resources should consider all locally important factors affecting the public water resources, including but not limited to fish and wildlife habitat, aquatic life, recreation, aesthetic beauty, transportation, navigation, water quality and the effect of such use on the availability of water for alternative uses of water that might be made within a reasonable time. This legislation contemplates that "[t]he relevant impacts and their relative weights will vary with local needs, circumstances, and interests." "The determination of what elements of the public interest are impacted, and what the public interest requires, is committee to Water Resources' sound discretion." In recent years, some transactions have been delayed by protests based on a broad range of social, economic and environmental policy issues having nothing to do with the impact of the proposed action on the public's water resource. Applicants have experienced costly delays and have been required to hire experts to respond to issues at an agency whose propose has nothing to do with those issues. This legislation also clarifies that the effect on the local economy of a watershed or local area that is the source of a proposed use of water but not the place of use for the proposed use shall be considered. The purpose of this criteria is to ensure that out of basin transfers do not deprive a local area of use of the available water supply. FISCAL IMPACT This legislation should remove significant financial burdens on the Department of Water Resources and on private parties. This legislation should impose no fiscal burden on any agency or unit of government. Contact Name: Rep. John A. "Bert" Stevenson Phone: (208) 332-1000 Sen. Laird Noh STATEMENT OF PURPOSE/FISCAL NOTE Bill No. 284