2003 Legislation
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HOUSE BILL NO. 284 – Water rights, applications

HOUSE BILL NO. 284

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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

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN 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 this chapter title, 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) and the
 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,
 39    where  the local public interest is as defined as the affairs of the people in
 40    the area directly affected by the proposed use in 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    section  42-203A(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 hereafter provided set
 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,
 30    and the exchange is in the local public interest as defined in section 42-203A
 31    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 it the rental
 16    will conflict with the local public interest where the local  public  interest
 17    is  as  defined  as the affairs of the people in the area directly affected by
 18    the proposed use in 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.

Statement of Purpose / Fiscal Impact


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                       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