Z-0312.3           _______________________________________________
                                           HOUSE BILL 1314
                           _______________________________________________
        State of Washington               56th Legislature             1999 Regular Session
        By Representatives Linville, Regala, Cooper, Kessler, Doumit,
        Dickerson, Ruderman, Dunshee, Haigh, Eickmeyer, Murray, Morris,
        Veloria, Keiser, H. Sommers, Rockefeller, Grant, McIntire, Fisher,
        Scott, Hatfield, Reardon, O'Brien and Lantz; by request of GovernorLocke
        Read first time 01/21/1999.  Referred to Committee on Agriculture &Ecology.
             AN ACT Relating to water resource management and facilitating
        fishery protection and recovery; amending RCW 90.54.020, 90.54.180,
        90.03.290, 43.20.230, 90.48.495, 90.46.005, 90.46.030, 90.46.040,
        90.46.120, 90.46.130, 90.03.380, 90.42.080, 90.03.330, 90.03.015,
        39.34.020, 90.03.386, 90.03.383, 90.44.050, 58.17.110, 19.27.097,
        90.03.255, 90.44.055, 75.20.106, 77.15.300, 90.03.600, 43.21B.300,
        90.08.040, 90.08.060, 90.03.070, 90.58.080, 43.99E.015, and 43.99E.030;
        reenacting and amending RCW 43.83B.300; adding new sections to chapter
        43.83B RCW; adding new sections to chapter 70.119A RCW; adding a new
        section to chapter 58.17 RCW; adding a new section to chapter 35.21
        RCW; adding a new section to chapter 35A.21 RCW; adding a new section
        to chapter 36.01 RCW; adding a new section to chapter 90.54 RCW; adding
        new sections to chapter 90.46 RCW; adding new sections to chapter 90.03
        RCW; adding new sections to chapter 90.44 RCW; adding a new section to
        chapter 39.34 RCW; adding a new section to chapter 90.58 RCW; adding a
        new section to chapter 43.27A RCW; adding new sections to chapter
        36.70A RCW; adding a new section to chapter 43.21C RCW; adding new
        sections to chapter 90.42 RCW; creating new sections; prescribing
        penalties; making an appropriation; and providing an expiration date.
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
             {+ NEW SECTION. +}  Sec. 1.  The legislature finds that numerous
        fish stocks of the state are being listed or are proposed to be listed
        as threatened or endangered under the federal endangered species act.
        The legislature further finds that existing state laws form a good
        foundation for the state to respond to the listings and proposed
        listings, but that various laws relating to water resources, land use,
        and fish protection and restoration must be strengthened to minimize
        the potential for federal preemption of state authority and autonomy
        regarding the management of the state's fisheries and water resources.
                                               PART I
                                         WATER CONSERVATION
             Sec. 101.  RCW 90.54.020 and 1997 c 442 s 201 are each amended to
        read as follows:
             Utilization and management of the waters of the state shall be
        guided by the following general declaration of fundamentals:
             (1) Uses of water for domestic, stock watering, industrial,
        commercial, agricultural, irrigation, hydroelectric power production,
        mining, fish and wildlife maintenance and enhancement, recreational,
        and thermal power production purposes, and preservation of
        environmental and aesthetic values, and all other uses compatible with
        the enjoyment of the public waters of the state, are declared to bebeneficial.
             (2) Allocation of waters among potential uses and users shall be
        based generally on the securing of the maximum net benefits for the
        people of the state.  Maximum net benefits shall constitute total
        benefits less costs including opportunities lost.
             (3) The quality of the natural environment shall be protected and,
        where possible, enhanced as follows:
             (a) Perennial rivers and streams of the state shall be retained
        with base flows necessary to provide for preservation of wildlife,
        fish, scenic, aesthetic and other environmental values, and
        navigational values.  Lakes and ponds shall be retained substantially
        in their natural condition.  Withdrawals of water which would conflict
        therewith shall be authorized only in those situations where it is
        clear that overriding considerations of the public interest will beserved.
             (b) Waters of the state shall be of high quality.  Regardless of
        the quality of the waters of the state, all wastes and other materials
        and substances proposed for entry into said waters shall be provided
        with all known, available, and reasonable methods of treatment prior to
        entry.  Notwithstanding that standards of quality established for the
        waters of the state would not be violated, wastes and other materials
        and substances shall not be allowed to enter such waters which will
        reduce the existing quality thereof, except in those situations where
        it is clear that overriding considerations of the public interest will
        be served.  Technology-based effluent limitations or standards for
        discharges for municipal water treatment plants located on the
        Chehalis, Columbia, Cowlitz, Lewis, or Skagit river shall be adjusted
        to reflect credit for substances removed from the plant intake waterif:
             (i) The municipality demonstrates that the intake water is drawn
        from the same body of water into which the discharge is made; and
             (ii) The municipality demonstrates that no violation of receiving
        water quality standards or appreciable environmental degradation willresult.
             (4) The development of multipurpose water storage facilities shall
        be a high priority for programs of water allocation, planning,
        management, and efficiency.  The department, other state agencies, {+
        and +} local governments, and planning units formed under (({- section
        107 or 108 of this act -})) {+ chapter 90.82 RCW +} shall evaluate the
        potential for the development of new storage projects and the benefits
        and effects of storage in reducing damage to stream banks and property,
        increasing the use of land, providing water for municipal, industrial,
        agricultural, power generation, and other beneficial uses, and
        improving stream flow regimes for fisheries and other instream uses.
             (5) Adequate and safe supplies of water shall be preserved and
        protected in potable condition to satisfy human domestic needs.
             (6) Multiple-purpose impoundment structures are to be preferred
        over single-purpose structures.  Due regard shall be given to means and
        methods for protection of fishery resources in the planning for and
        construction of water impoundment structures and other artificialobstructions.
             (7) Federal, state, and local governments, individuals,
        corporations, groups{+ , +} and other entities shall (({- be encouraged
        to -})) carry out practices of conservation as they relate to the use
        of the waters of the state.  In addition to traditional development
        approaches, improved water use efficiency and conservation{+ ,
        including reclaiming municipal and industrial effluent, +} shall be
        emphasized in the management of the state's water resources and (({- in
        some cases -})) will be a potential new source of water with which to
        meet future needs throughout the state.  {+ Where reclaimed water is a
        feasible replacement source of water in accordance with criteria
        adopted under section 206 of this act, it shall be used for nonpotable
        water uses in lieu of using potable water for those uses. +}
             (8) Development of water supply systems, whether publicly or
        privately owned, which provide water to the public generally in
        regional areas within the state shall be encouraged.  Development of
        water supply systems for multiple domestic use which will not serve the
        public generally shall be discouraged where water supplies are
        available from water systems serving the public.
             (9) Full recognition shall be given in the administration of water
        allocation and use programs to the natural interrelationships of
        surface and ground waters.
             (10) Expressions of the public interest will be sought at all
        stages of water planning and allocation discussions.
             (11) Water management programs, including but not limited to, water
        quality, flood control, drainage, erosion control{+ , +} and storm
        runoff are deemed to be in the public interest.
             Sec. 102.  RCW 90.54.180 and 1989 c 348 s 5 are each amended to
        read as follows:
             Consistent with the fundamentals of water resource policy set forth
        in this chapter, state and local governments, individuals,
        corporations, groups{+ , +} and other entities shall (({- be encouraged
        to -})) carry out water use efficiency and conservation programs and
        practices consistent with the following:
             (1) Water efficiency and conservation programs (({- should -})) {+
        shall +} utilize an appropriate mix of economic incentives, cost share
        programs, regulatory programs, and technical and public information
        efforts.  Programs which encourage voluntary participation arepreferred.
             (2) Increased water use efficiency (({- should receive
        consideration as -})) {+ and conservation, including reclaiming
        municipal and industrial effluent shall be considered +} a potential
        source of water in state and local water resource planning processes.
        In determining the cost-effectiveness of alternative water sources,
        consideration should be given to the benefits of conservation, waste
        water recycling, and impoundment of waters.
             (3) In determining the cost-effectiveness of alternative water
        sources, full consideration should be given to the benefits of storage
        which can reduce the damage to stream banks and property, increase the
        utilization of land, provide water for municipal, industrial,
        agricultural, and other beneficial uses, provide for the generation of
        electric power from renewable resources, and improve stream flow
        regimes for fishery and other instream uses.
             (4) Entities receiving state financial assistance for construction
        of water source expansion or acquisition of new sources shall develop,
        and implement if cost-effective, a water use efficiency and
        conservation element of a water supply plan pursuant to RCW43.20.230(1).
             (5) State programs to improve water use efficiency (({- should -}))
        {+ shall +} focus on those areas of the state in which water is
        overappropriated; areas that experience diminished stream flows or
        aquifer levels{+ , including areas with declining fish stocks due to
        lack of stream flow +}; and areas where projected water needs,
        including those for instream flows, exceed available supplies.
             (6) Existing and future generations of citizens of the state of
        Washington (({- should -})) {+ must +} be made aware of the importance
        of the state's water resources and the need for wise and efficient use
        and development of this vital resource.  In order to increase this
        awareness, state agencies (({- should -})) {+ shall +} integrate public
        education on increasing water use efficiency into existing public
        information efforts.  This effort shall be coordinated with other
        levels of government, including local governments and Indian tribes.
             Sec. 103.  RCW 90.03.290 and 1994 c 264 s 84 are each amended to
        read as follows:
             {+ (1) +} When an application complying with the provisions of this
        chapter and with the rules (({- and regulations -})) of the department
        has been filed, (({- the same -})) {+ it +} shall be placed on record
        with the department(({- , and it shall be its duty to -})){+ .  The
        department shall +} investigate the application, and determine what
        water, if any, is available for appropriation, and find and determine
        to what beneficial use or uses it can be applied.
             {+ (2) +} If it is proposed to appropriate water for irrigation
        purposes, the department shall investigate, determine{+ , +} and find
        what lands are capable of irrigation by means of water found available
        for appropriation.  If it is proposed to appropriate water for the
        purpose of power development, the department shall investigate,
        determine{+ , +} and find whether the proposed development is likely to
        prove detrimental to the public interest, having in mind the highest
        feasible use of the waters belonging to the public.
             {+ (3) +} If the application does not contain, and the applicant
        does not promptly furnish sufficient information on which to base such
        findings, the department may issue a preliminary permit, for a period
        of not to exceed three years, requiring the applicant to make such
        surveys, investigations, studies, and progress reports, as in the
        opinion of the department may be necessary.  If the applicant fails to
        comply with the conditions of the preliminary permit, it and the
        application or applications on which it is based shall be automatically
        canceled and the applicant so notified.  If the holder of a preliminary
        permit shall, before its expiration, file with the department a
        verified report of expenditures made and work done under the
        preliminary permit, which, in the opinion of the department,
        establishes the good faith, intent and ability of the applicant to
        carry on the proposed development, the preliminary permit may, with the
        approval of the (({- governor -})) {+ director +}, be extended, but not
        to exceed a maximum period of five years from the date of the issuance
        of the preliminary permit.
             {+ (4) +} The department shall make and file as part of the record
        in the matter, written findings of fact concerning all things
        investigated, and if it shall find that there is water available for
        appropriation for a beneficial use, and the appropriation thereof as
        proposed in the application will not impair existing rights or be
        detrimental to the public welfare, it shall issue a permit stating the
        amount of water to which the applicant shall be entitled and the
        beneficial use or uses to which it may be applied(({- :  PROVIDED, That
        where -})){+ .  If +} the water applied for is to be used for
        irrigation purposes, it shall become appurtenant only to such land as
        may be reclaimed thereby to the full extent of the soil for
        agricultural purposes.  But where there is no unappropriated water in
        the proposed source of supply, or where the proposed use conflicts with
        existing rights, or threatens to prove detrimental to the public
        interest, having due regard to the highest feasible development of the
        use of the waters belonging to the public, it shall be {+ the +} duty
        of the department to reject such application and to refuse to issue the
        permit asked for.  {+ The department may also reject the application
        and refuse to issue the permit if reliance on an alternative source of
        water, including, but not limited to, water that could be acquired
        through a change or transfer of an existing water right or use of a
        feasible source of reclaimed water, would better serve the public
        interest. +}  If the permit is refused because of conflict with
        existing rights and such applicant shall acquire {+ the +} same by
        purchase or condemnation under RCW 90.03.040, the department may
        thereupon grant such permit.
             {+ (5) +} Any application may be approved for a less amount of
        water than that applied for, if there exists substantial reason
        therefor, and in any event shall not be approved for more water than
        can be applied to beneficial use for the purposes named in the
        application.  In determining whether or not a permit shall issue upon
        any application, it shall be the duty of the department to investigate
        all facts relevant and material to the application.  After the
        department approves said application in whole or in part and before any
        permit shall be issued thereon to the applicant, such applicant shall
        pay the fee provided in RCW 90.03.470(({- :  PROVIDED FURTHER, That in
        the event -})){+ .  If +} a permit is issued by the department upon any
        application, it shall be its duty to notify the director of fish and
        wildlife of such issuance.
             {+ NEW SECTION. +}  Sec. 104.  A new section is added to chapter
        43.83B RCW to read as follows:
             (1) It is the intent of the legislature to provide moneys to the
        department of ecology for grants and loans to public bodies engaged in
        irrigation water supply for the purpose of improved drought
        preparedness.  As used in this chapter, "drought preparedness" means
        the implementation of agricultural water supply conservation projectsthat:
             (a) Are identified in approved water conservation plans;
             (b) Mitigate the effects of future droughts on existing water uses
        in drought-prone areas;
             (c) Result in conveying trust water rights to the state forinstream flows;
             (d) Produce increases in instream flows; and
             (e) Are located in predominantly agricultural areas that have
        threatened or endangered species listed or proposed for listing under
        the federal endangered species act or that have salmonid stocks listed
        as critical or depressed under the state salmon and steelhead stockinventory.
             (2) The department of ecology is authorized to make loans or
        grants, or combinations of loans and grants from drought preparedness
        funds when needed to implement agricultural water supply conservation
        or efficiency projects.  For the purposes of this section, "drought
        preparedness funds" means funds appropriated from the state drought
        preparedness account created under section 1004 of this act.  The
        department of ecology may make the loans or grants, or combinations of
        loans and grants as matching funds in any case where federal, local, or
        other funds have been made available on a matching basis.  The
        department may make a loan of up to ninety percent of the total
        eligible project cost or combination loan and grant up to one hundred
        percent of the total single project cost.  The grant portion of any
        single project shall not exceed twenty percent of the total project
        cost.  No single entity shall receive more than ten percent of the
        total drought preparedness funds available.
             (3) The following eligibility criteria must be met in order for an
        entity to apply for drought preparedness funds:
             (a) The entity must be organized as a public body, capable of
        accepting and administering loans and grants;
             (b) The entity must have a completed, approved water conservation
        plan that recommends the project or projects proposed for funding; and
             (c) The proposed project must be sited in an area that:
             (i) Has threatened or endangered fish species listed or proposed
        for listing under the federal endangered species act or depressed or
        critical stocks under the state salmon and steelhead stock assessment;
             (ii) Has agriculture as its economic base; and
             (iii) Is prone to drought conditions.
             (4) The proposed project must result in at least a ten percent
        decrease in diversion from the applicable surface water source, and
        must increase the stream flow in the same surface water source.  If the
        entity is served mainly by ground water, there must be at least a ten
        percent decrease in the instantaneous and annual amount withdrawn.
        There must be an increase in surface water sources in hydraulic
        continuity with the ground water source.
             (5) Recipients of loans and grants under this section may retain
        and use conserved water under the following conditions:
             (a) The person proposing the change or transfer must agree in
        writing to convey to the state of Washington at least one-half of the
        transferable net water savings for the purpose of establishing a trust
        water right under chapter 90.38 or 90.42 RCW as applicable.  The
        proportion of water that must be conveyed to the state of Washington
        shall be equivalent to the ratio of the state or federal funding to the
        overall project cost, but in no case less than one-half of the net
        water savings.  The person proposing to change or transfer and use the
        remaining water on additional or different lands may do so only under
        an approved change to the water right issued by the department of
        ecology under RCW 90.03.380.  Reallocation and use of conserved water
        under this section shall not impair any existing water rights.
             (b) The department of ecology may waive the requirement to convey
        a trust water right to the state only where there is no discernable
        public purpose to be benefited by establishment of a trust water right
        for those waters.  In such case, in lieu of conveying a trust water
        right, the person proposing the conservation project must remit to the
        state treasurer a payment equal to the value of the proportion of the
        water right not conveyed to the state.  The amount of this payment
        shall be determined by a licensed independent real estate appraiser
        selected by agreement of the department of ecology and the applicant.
        The basis of the appraisal shall be the value of the proportion of the
        conserved water not conveyed to the state in consideration of the
        economic value of water in the immediate area where the water right is
        used.  The cost of the appraisal shall be shared equally by the
        department of ecology and the applicant.  Any funds conveyed to the
        state under this section shall be deposited in the state stream flow
        restoration account established in section 1005 of this act for use in
        purchasing or leasing trust water rights.
             {+ NEW SECTION. +}  Sec. 105.  A new section is added to chapter
        70.119A RCW to read as follows:
             (1) Each public water system with fifteen or more serviceconnections shall:
             (a) Implement a water conservation program promotion targeted at
        system customers; and
             (b) Implement other cost-effective water conservation measures
        identified in approved water conservation plans required under RCW43.20.230.
             (2) Public water systems with one thousand or more service
        connections shall:
             (a) Implement a leak detection and repair program, and shall repair
        leaks if the system's unaccounted for water is ten percent or more of
        total system water usage;
             (b) Conduct water audits to identify internal water distribution
        and associated opportunities for improved water use efficiency; and
             (c) Utilize commodity-based water rates and not declining block
        rate structures.  Commodity-based rate structures are based, at least
        in part, upon the volume of water used.  Declining block rate
        structures separate consumption levels into two or more blocks, with
        rates per unit of water decreasing as the total volume of consumption
        by a customer increases.
             (3) Public water systems that have completed a conservation plan
        within six years prior to the effective date of this section in
        accordance with the requirements of the department need not create a
        new plan, but shall address any of the above elements that have not
        been previously addressed in the next scheduled update of the water
        system plan and conservation plan.
             Sec. 106.  RCW 43.20.230 and 1993 sp.s. c 4 s 9 are each amended to
        read as follows:     Consistent with the water resource planning process of the
        department of ecology, the department of health shall:
             (1) Develop (({- procedures and guidelines relating to water use
        efficiency, as defined in section 4(3), chapter 348, Laws of 1989, to
        be included in the development and approval of cost-efficient water
        system plans required under RCW 43.20.050 -})) {+ comprehensive water
        conservation planning requirements for public water systems based upon
        system size, to be included in water system plans and small water
        system management programs required under RCW 43.20.050.  Conservation
        plans approved under this section shall meet the water conservation
        planning requirements of the department of ecology for the purposes of
        water right permit processing.  As part of these comprehensive planning
        requirements water systems shall: +}
             {+ (a) Demonstrate compliance with the conservation requirements
        contained in section 113 of this act; +}
             {+ (b) Evaluate service meter installation; +}
             {+ (c) Evaluate conservation measures and implement those that are
        cost-effective; +}
             {+ (d) Evaluate development and implementation of a leak detection
        and repair program; and +}
             {+ (e) Utilize water use efficiency performance standards developed
        under section 113 of this act for conservation planning, water demand
        forecasting, and other water system planning purposes +};
             (2) {+ Review and approve water conservation plans, and monitor
        plan implementation to ensure compliance with comprehensive
        conservation planning requirements under subsection (1) of thissection;
             (3) +} Develop criteria, with input from technical experts, with
        the objective of encouraging the cost-effective reuse of greywater and
        other water recycling practices, consistent with protection of public
        health and water quality;
             (({- (3) -})) {+ (4) +} Provide advice and technical assistance
        upon request in the development of water use efficiency plans{+ .  This
        includes development of model landscape ordinances, assistance to
        public water systems and local governments regarding water
        conservation, and general public education on water conservation and
        efficiency +}; (({- and
             (4) -})) {+ (5) +} Provide advice and technical assistance on
        request for development of model conservation rate structures for
        public water systems(({- .  Subsections (1), (2), and (3) of this
        section are subject to the availability of funding -})){+ ; and
             (6) Adopt rules as necessary through the state board of health to
        implement any provisions of this section +}.
             {+ NEW SECTION. +}  Sec. 107.  A new section is added to chapter
        70.119A RCW to read as follows:
             Public water systems with fifteen or more service connections shall
        collect monthly water use data from all water sources used to serve the
        system.  Water use data collected under this section shall be submitted
        annually to the department in a form and manner prescribed by the
        department.  Data collected under this section shall be coordinated
        with water use data collection requirements of the department ofecology.
             {+ NEW SECTION. +}  Sec. 108.  A new section is added to chapter
        58.17 RCW to read as follows:
             In determining whether a proposed short plat, short subdivision, or
        subdivision meets the requirements for potable water supplies as
        required under RCW 58.17.060 or 58.17.110, and otherwise serves the
        public use and interest, the city, town, or county shall require:
             (1) Conformance to any water conservation ordinances or plans
        adopted by the city, town, or county;
             (2) Utilization of water conservation measures consistent with any
        regional watershed plan adopted under chapter 90.82 RCW; and
             (3) Utilization of reclaimed water where potable water is not
        required consistent with any local ordinance adopted on water reuserequirements.
             {+ NEW SECTION. +}  Sec. 109.  A new section is added to chapter
        35.21 RCW to read as follows:
             (1) Any city or town may adopt a water conservation program by
        ordinance or other legal authority.  This includes ordinances to
        implement the provisions of any regional watershed plan adopted under
        chapter 90.82 RCW.  Such a program may include the followingrequirements:
             (a) Utilization of water conservation measures consistent with
        specific provisions of regional watershed plans adopted under chapter90.82 RCW;
             (b) Utilization of water conservation measures that may be in
        addition to those required by either the department of health or the
        department of ecology, including landscape irrigation requirements,
        public fixture retrofit and rebate programs, and commercial and
        industrial conservation programs; and
             (c) Utilization of any opportunities for using reclaimed water
        where potable water is not required.
             (2) The provisions of any water conservation program shall be
        implemented by the city or town through development of any
        comprehensive plan, development regulations, issuance of permits and
        other approvals, development of any sewerage and/or water general plan
        under RCW 36.94.030, operation of any sewerage or water systems under
        chapter 36.94 RCW, or as otherwise allowed by law.
             {+ NEW SECTION. +}  Sec. 110.  A new section is added to chapter
        35A.21 RCW to read as follows:
             (1) Any city or town may adopt a water conservation program by
        ordinance or other legal authority.  This includes ordinances to
        implement the provisions of any regional watershed plan adopted under
        chapter 90.82 RCW.  Such a program may include the followingrequirements:
             (a) Utilization of water conservation measures consistent with
        specific provisions of regional watershed plans adopted under chapter90.82 RCW;
             (b) Utilization of water conservation measures that may be in
        addition to those required by either the department of health or the
        department of ecology, including landscape irrigation requirements,
        public fixture retrofit and rebate programs, and commercial and
        industrial conservation programs; and
             (c) Utilization of any opportunities for using reclaimed water
        where potable water is not required.
             (2) The provisions of any water conservation program shall be
        implemented by the city or town through development of any
        comprehensive plan, development regulations, issuance of permits and
        other approvals, development of any sewerage and/or water general plan
        under RCW 36.94.030, operation of any sewerage or water systems under
        chapter 36.94 RCW, or as otherwise allowed by law.
             {+ NEW SECTION. +}  Sec. 111.  A new section is added to chapter
        36.01 RCW to read as follows:
             (1) Any county may adopt a water conservation program by ordinance
        or other legal authority.  This includes ordinances to implement the
        provisions of any regional watershed plan adopted under chapter 90.82
        RCW.  Such a program may include the following requirements:
             (a) Utilization of water conservation measures consistent with
        specific provisions of regional watershed plans adopted under chapter90.82 RCW;
             (b) Utilization of water conservation measures that may be in
        addition to those required by either the department of health or the
        department of ecology, including landscape irrigation requirements,
        public fixture retrofit and rebate programs, and commercial and
        industrial conservation programs; and
             (c) Utilization of any opportunities for using reclaimed water
        where potable water is not required.
             (2) The provisions of any water conservation program shall be
        implemented by the county through development of any comprehensive
        plan, development regulations, issuance of permits and other approvals,
        development of any sewerage and/or water general plan under RCW
        36.94.030, operation of any sewerage or water systems under chapter
        36.94 RCW, or as otherwise allowed by law.
             Sec. 112.  RCW 90.48.495 and 1989 c 348 s 10 are each amended to
        read as follows:
             The department of ecology shall require sewer plans {+ that propose
        an expansion of treatment capacity +} to include a discussion of water
        conservation measures considered or underway and their anticipated
        impact on public sewer service.  {+ The plans shall evaluate the cost-
        effectiveness of funding water conservation programs as an alternative
        to expanding sewage treatment capacity. +}
             {+ NEW SECTION. +}  Sec. 113.  A new section is added to chapter
        90.54 RCW to read as follows:
             (1) The definitions in this subsection apply throughout this
        section unless the context clearly requires otherwise.
             (a) "Reasonable and beneficial use" means the minimum amount of
        water necessary to carry out the intended purpose of water use without
        waste.  It may include a reasonable amount of water lost due to normal
        conveyance and application losses.
             (b) "Water duty" means that measure of water, which by careful
        management and use, without waste, is reasonably required for the use
        or proposed use.
             (2) The department in consultation with the department of health
        shall adopt rules establishing water use efficiency performance
        standards for various water uses by December 31, 2000.  The department
        shall engage in a negotiated rule-making process involving
        representatives of interested parties.  However, if the participants do
        not reach consensus by July 1, 2000, the department shall proceed with
        the adoption of rules using the advice and guidance of the participants
        to the extent possible.  The standards shall be based on the quantity
        of water required for reasonable and beneficial use of water without
        waste.  The rules shall also address standards for reasonable
        conveyance loss of water for various means of water conveyance.  Basin
        management plans adopted under this chapter or watershed plans adopted
        under chapter 90.82 RCW may specify water use efficiency performance
        standards for the basin or watershed that vary from and supersede those
        adopted by the department under this section if Washington state
        government is a participant in the planning process and agrees with the
        locally based standards.  The department shall adopt rules implementing
        locally determined standards.
             (3) The state-wide or local standards adopted under this section
        shall be used for water demand forecasting, public water system
        planning, and assessing whether new water rights are needed.  In
        addition, the standards shall be used to guide the development and
        evaluation of water conservation plans developed under chapter 43.99E
        RCW and RCW 43.20.230.
             (4) Any person claiming a right or a need to the use of water in
        excess of the standards adopted under this section carries the burden
        of showing that special circumstances require a variance from thestandards.
             (5) The department shall consult with the Washington State
        University cooperative extension service and the United States natural
        resource conservation service regarding normal water duties for
        irrigation water uses.                                       PART II
                                           RECLAIMED WATER
             Sec. 201.  RCW 90.46.005 and 1997 c 355 s 1 are each amended to
        read as follows:
             The legislature finds that by encouraging the use of reclaimed
        water while assuring the health and safety of all Washington citizens
        and the protection of its environment, the state of Washington will
        continue to use water in the best interests of present and futuregenerations.
             To facilitate the use of reclaimed water as soon as is practicable,
        the legislature encourages the cooperative efforts of the public and
        private sectors and the use of pilot projects to effectuate the goals
        of this chapter.  The legislature further directs the department of
        health and the department of ecology to coordinate efforts towards
        developing an efficient and streamlined process for creating and
        implementing processes for the use of reclaimed water.  {+ The
        department of ecology is the lead agency for reclaimed water permitting
        and design approval, and the department of health is to provide public
        health input and assessment on all department of ecology reclaimed
        water permit decisions. +}
             It is hereby declared that the people of the state of Washington
        have a primary interest in the development of facilities to provide
        reclaimed water to replace potable water in nonpotable applications, to
        supplement existing surface and ground water supplies, and to assist in
        meeting the future water requirements of the state.  {+ The use of
        reclaimed water will contribute to the restoration and protection of
        instream flows, which are crucial to preservation of the state's
        salmonid fishery resources. +}
             The legislature further finds and declares that the utilization of
        reclaimed water by local communities for domestic, agricultural,
        industrial, recreational, and fish and wildlife habitat creation and
        enhancement purposes, including wetland enhancement, will contribute to
        the peace, health, safety, and welfare of the people of the state of
        Washington.  To the extent reclaimed water is appropriate for
        beneficial uses, it should be so used to preserve potable water for
        drinking purposes.  Use of reclaimed water constitutes the development
        of new basic water supplies needed for future generations.
             The legislature further finds and declares that the use of
        reclaimed water is not inconsistent with the policy of antidegradation
        of state waters announced in other state statutes, including the water
        pollution control act, chapter 90.48 RCW and the water resources act,
        chapter 90.54 RCW.
             The legislature finds that other states, including California,
        Florida, and Arizona, have successfully used reclaimed water to
        supplement existing water supplies without threatening existing
        resources or public health.
             It is the intent of the legislature that the department of ecology
        and the department of health undertake the necessary steps to encourage
        the development of water reclamation facilities so that reclaimed water
        may be made available to help meet the growing water requirements ofthe state.
             The legislature further finds and declares that reclaimed water
        facilities are water pollution control facilities as defined in chapter
        70.146 RCW and are eligible for financial assistance as provided in
        chapter 70.146 RCW.  The legislature finds that funding demonstration
        projects will ensure the future use of reclaimed water.  The
        demonstration projects in RCW 90.46.110 are varied in nature and will
        provide the experience necessary to test different facets of the
        standards and refine a variety of technologies so that water purveyors
        can begin to use reclaimed water technology in a more cost-effective
        manner.  This is especially critical in smaller cities and communities
        where the feasibility for such projects is great, but there are scarce
        resources to develop the necessary facilities.
             Sec. 202.  RCW 90.46.030 and 1992 c 204 s 4 are each amended to
        read as follows:
             (1) The department of (({- health -})) {+ ecology +} shall, in
        coordination with the department of (({- ecology -})) {+ health +},
        adopt (({- a single set of standards, procedures, and guidelines on or
        before August 1, 1993 -})) {+ rules by December 31, 2000 +}, for the
        industrial and commercial use of reclaimed water.
             (2) The department of (({- health -})) {+ ecology +} may issue a
        reclaimed water permit for industrial and commercial uses of reclaimed
        water to the generator of reclaimed water who may then distribute the
        water, subject to provisions in the permit governing the location,
        rate, water quality, and purposes of use.
             (3) The department of (({- health -})) {+ ecology +} in
        consultation with the advisory committee established in RCW 90.46.050,
        shall develop recommendations for a fee structure for permits issued
        under subsection (2) of this section.  Fees shall be established in
        amounts to fully recover, and not exceed, expenses incurred by the
        department of health {+ and the department of ecology +} in processing
        permit applications and modifications, monitoring and evaluating
        compliance with permits, and conducting inspections and supporting the
        reasonable overhead expenses that are directly related to these
        activities.  (({- Permit fees may not be used for research or
        enforcement activities.  The department of health shall not issue
        permits under this section until a fee structure has been established.-}))
             (4) A permit under this section for use of reclaimed water may be
        issued only to a municipal, quasi-municipal, or other governmental
        entity or to the holder of a waste discharge permit issued under
        chapter 90.48 RCW.
             (5) The authority and duties created in this section are in
        addition to any authority and duties already provided in law with
        regard to sewage and wastewater collection, treatment, and disposal for
        the protection of health and safety of the state's waters.  Nothing in
        this section limits the powers of the state or any political
        subdivision to exercise such authority.
             Sec. 203.  RCW 90.46.040 and 1992 c 204 s 5 are each amended to
        read as follows:
             (1) The department of ecology shall, in coordination with the
        department of health, adopt (({- a single set of standards, procedures,
        and guidelines, on or before August 1, 1993 -})) {+ rules by December
        31, 2000 +}, for land applications of reclaimed water.
             (2) A permit is required for any land application of reclaimed
        water.  The department of ecology may issue a reclaimed water permit
        under chapter 90.48 RCW to the generator of reclaimed water who may
        then distribute the water, subject to provisions in the permit
        governing the location, rate, water quality, and purpose of use.  The
        department of ecology shall not issue more than one permit for any
        individual land application of reclaimed water to a single generator.
             (3) In cases where the department of ecology determines, in land
        applications of reclaimed water, that a (({- significant -})) risk to
        the public health exists, the department shall refer the application to
        the department of health for review and consultation and the department
        of health may require fees appropriate for review and consultation from
        the applicant pursuant to RCW 43.70.250.
             (4) A permit under this section for use of reclaimed water may be
        issued only to a municipal, quasi-municipal, or other governmental
        entity or to the holder of a waste discharge permit issued under
        chapter 90.48 RCW.
             (5) The authority and duties created in this section are in
        addition to any authority and duties already provided in law.  Nothing
        in this section limits the powers of the state or any political
        subdivision to exercise such authority.
             {+ NEW SECTION. +}  Sec. 204.  A new section is added to chapter
        90.46 RCW to read as follows:
             The departments of ecology and health may adopt rules as necessary
        to carry out the intent of this chapter.  If rules are adopted, the
        rules shall identify permit and design approval requirements under
        chapters 43.20, 70.116, 70.119A, 70.142, 90.03, 90.44, and 90.48 RCW
        applicable to the generation and distribution of reclaimed water, and
        identify criteria to determine when the use of reclaimed water is
        feasible to replace nonpotable water uses.
             Sec. 205.  RCW 90.46.120 and 1997 c 444 s 1 are each amended to
        read as follows:     (({- The owner of a wastewater treatment facility that is
        reclaiming water with a permit issued under this chapter has the
        exclusive right to any reclaimed water generated by the wastewater
        treatment facility.  Use and distribution of the reclaimed water by the
        owner of the wastewater treatment facility is exempt from the permit
        requirements of RCW 90.03.250 and 90.44.060. -}))  Revenues derived
        from the reclaimed water facility shall be used only to offset the cost
        of operation of the wastewater utility fund or other applicable source
        of system-wide funding.
             If the proposed use or uses of reclaimed water are intended to
        augment or replace potable water supplies or {+ will +} create the
        potential for the development of additional potable water supplies,
        such use or uses shall be considered in the development of the regional
        water supply plan or plans addressing potable water supply service by
        multiple water purveyors.  {+ This may include water system plans and
        coordinated water system plans adopted under chapters 43.20 and 70.116
        RCW. +}  The owner of a wastewater treatment facility that proposes to
        reclaim water shall be included as a participant in the development of
        such regional water supply (({- plan or -})) plans {+ and water system
        plans.  The water supply planning activities shall be developed and
        coordinated to ensure that opportunities for reclaimed water are
        evaluated and that proposals for construction in public rights of way
        delineated within the plan consider infrastructure needed to distribute
        reclaimed water.  Wastewater plans adopted under chapter 90.48 RCW
        shall include a statement of certification that reclamation and reuse
        elements in applicable regional water supply plans and water system
        plans have been fully considered and accounted for with regard to the
        need for future distribution of reclaimed water +}.
             {+ NEW SECTION. +}  Sec. 206.  A new section is added to chapter
        90.46 RCW to read as follows:
             The department of ecology, in consultation with the department of
        health and water purveyors, shall adopt rules by December 31, 2000,
        establishing criteria to determine when the use of reclaimed water is
        feasible to replace potable water supplied for nonpotable water use.
        Local governments may adopt ordinances requiring the use of reclaimed
        water for nonpotable uses when determined feasible.
             Sec. 207.  RCW 90.46.130 and 1997 c 444 s 4 are each amended to
        read as follows:
             {+ (1) Except as provided in subsection (2) of this section, the
        owner of a wastewater treatment facility that is reclaiming water with
        a permit issued under this chapter has the exclusive right, subject to
        the terms of the permit and as otherwise provided in this chapter, to
        any reclaimed water generated by the wastewater treatment facility.
        Upon securing a permit under this chapter, the use and distribution of
        the reclaimed water by the owner of the wastewater treatment facility
        is exempt from the requirements to obtain a permit under RCW 90.03.250
        and 90.44.060 and the requirements to obtain approval of a change or
        amendment of a water right under RCW 90.03.380, 90.03.383, 90.03.390,
        90.44.100, or 90.44.105.
             (2) If the state of Washington or the United States provides
        funding for the construction of reclaimed water facilities, the state
        shall establish a trust water right under chapter 90.38 or 90.42 RCW
        for the fraction of the reclaimed water attributable to such funding.
        The priority of use for the state's share of reclaimed water is
        instream flow restoration and enhancement.  The department may accept
        an alternate water right from the reclaimed water project owner in lieu
        of reclaimed project water if the alternate water right is more
        advantageous for instream flow restoration.
             (3) +} Facilities that reclaim water under this chapter shall not
        impair any existing water right (({- downstream from any freshwater
        discharge points of such facilities unless compensation or mitigation
        for such impairment is agreed to by the holder of the affected water
        right -})) {+ unless the holder of the water right is equitablycompensated +}.
                                              PART III
                                  WATER RIGHT CHANGES AND TRANSFERS
             Sec. 301.  RCW 90.03.380 and 1997 c 442 s 801 are each amended to
        read as follows:
             (1) The right to the use of water which has been applied to a
        beneficial use in the state shall be and remain appurtenant to the land
        or place upon which the (({- same -})) {+ water +} is used(({- :
        PROVIDED, HOWEVER, That -})){+ .  However, +} the right may be
        transferred to another or to others and become appurtenant to any other
        land or place of use without loss of priority of right theretofore
        established if (({- such -})) {+ the +} change can be made without
        detriment or injury to existing rights.  The point of diversion of
        water for beneficial use or the purpose of use may be changed, if (({-
         such -})) {+ the +} change can be made without detriment or injury to
        existing rights.  (({- A change in the place of use, point of
        diversion, and/or purpose of use of a water right to enable irrigation
        of additional acreage or the addition of new uses may be permitted if
        such change results in no increase in the annual consumptive quantity
        of water used under the water right.  For purposes of this section,
        "annual consumptive quantity" means the estimated or actual annual
        amount of water diverted pursuant to the water right, reduced by the
        estimated annual amount of return flows, averaged over the most recent
        five-year period of continuous beneficial use of the water right. -}))
             {+ (2) +} Before any transfer of (({- such -})) {+ a +} right to
        use water or change of the point of diversion of water or change of
        purpose of use can be made, any person having an interest in the
        transfer or change, shall file a written application therefor with the
        department(({- , and the -})) {+ on a form prescribed by the
        department.  The application must be accompanied with the applicable
        fee as provided by RCW 90.03.470.  The +} application shall not be
        granted until notice of the application is published as provided in RCW
        90.03.280.  (({- If it shall appear that such -}))
             {+ (3) The department shall make a tentative determination as to
        the validity and extent of the water right proposed to be transferred
        or changed, including the reasonable and beneficial use of water
        actually used.  In its determination, the department shall consider
        whether all or any portion of the asserted water right has been lost by
        nonuse under common law abandonment or forfeiture under chapter 90.14
        RCW, and whether any portion of the water diverted or withdrawn
        constitutes the waste of water.  If the department determines that any
        portion of the current or former use of water under the asserted water
        right proposed for change or transfer is not a water right, or
        constitutes waste of water, that portion of the right shall not be
        approved for change or transfer.  If the department determines that (a)
        the asserted water right is valid, (b) the water right as proposed to
        be changed will be for beneficial use, (c) the public interest will not
        be detrimentally affected by the change, and (d) the +} transfer or
        (({- such -})) change may be made without injury or detriment to
        existing rights, the department shall issue to the applicant {+ an
        authorization to make the change.  Upon determining that the change has
        been completed and water has been put to beneficial use in accordance
        with the authorization, the department shall issue +} a certificate in
        duplicate granting the right for such transfer or for such change of
        point of diversion or of use.  The certificate so issued shall be filed
        and be made a record with the department and the duplicate certificate
        issued to the applicant (({- may -})) {+ must +} be filed with the
        county auditor in like manner and with the same effect as provided in
        the original certificate or permit to divert water.
             (({- (2) -})) {+ (4) +} If an application for change proposes to
        transfer water rights from one irrigation district to another, the
        department shall, before publication of notice, receive concurrence
        from each of the irrigation districts that such transfer or change will
        not adversely affect the ability to deliver water to other landowners
        or impair the financial integrity of either of the districts.
             (({- (3) -})) {+ (5) +} A change in place of use by an individual
        water user or users of water provided by an irrigation district need
        only receive approval for the change from the board of directors of the
        district if the use of water continues within the irrigation district,
        and when water is provided by an irrigation entity that is a member of
        a board of joint control created under chapter 87.80 RCW, approval need
        only be received from the board of joint control if the use of water
        continues within the area of jurisdiction of the joint board and the
        change can be made without detriment or injury to existing rights.  {+
        The acreage irrigated within an irrigation district may not be expanded
        through use of conserved water unless approval has been received from
        the department in accordance with section 302 of this act. +}
             (({- (4) -})) {+ (6) The department may approve an application for
        change that proposes to transfer or change an inchoate water right
        permit or certificate held by a public water system in accordance with
        section 408 of this act.
             (7) +} This section shall not apply to trust water rights acquired
        by the state through the funding of water conservation projects under
        chapter 90.38 RCW or RCW 90.42.010 through 90.42.070.
             {+ NEW SECTION. +}  Sec. 302.  A new section is added to chapter
        90.03 RCW to read as follows:
             (1) After the effective date of this section, if a person holding
        a water right established under the laws of the state of Washington
        conserves water or proposes to conserve water, the person may, in
        accordance with RCW 90.03.380, apply to the department for a change in
        purpose or place of use or point of diversion or any combination
        thereof for the purpose of using conserved water for a new purpose or
        in a place not originally authorized for beneficial use.  The maximum
        acreage allowed to be irrigated may be expanded and the place of use
        and the population served by the water right may be increased beyond
        the original intended place of use and purpose of use of the water
        right only as provided by this section.
             (2) If the proposed change results in no increase in the annual
        consumptive quantity of water used under the water right, the person
        proposing to make the change may retain for new use all of the
        transferable conserved water.  For conservation projects in which the
        annual consumptive quantity of water will be increased, the person
        proposing the change or transfer must agree in writing to convey to the
        state of Washington the water right for at least one-half of the
        transferable net water savings for the purpose of establishing a trust
        water right under chapter 90.38 or 90.42 RCW as applicable.  If state
        or federal funds will be employed in the conservation project, the
        proportion of the water savings that must be conveyed to the state of
        Washington shall be equivalent to the ratio of the state or federal
        funding to the overall project cost, but in no case less than one-half
        of the net water savings.  The person proposing to change or transfer
        and use the remaining water on additional or different lands may do so
        only under an approved change to the water right issued by the
        department under RCW 90.03.380, 90.03.383, 90.03.390, or 90.44.100.
        Reallocation and use of conserved water under this section shall not
        impair any existing water right.
             (3) The department may waive the requirement to convey a trust
        water right to the state only where there is no discernible public
        purpose to be benefited by establishment of a trust water right for
        those waters.  In such case, in lieu of conveying a trust water right,
        the person proposing the conservation project must remit to the state
        treasurer a payment equal to the value of the proportion of the water
        right not conveyed to the state.  The amount of this payment shall be
        determined by a licensed independent real estate appraiser selected by
        agreement of the department and the applicant.  The basis of the
        appraisal shall be the value of the proportion of the conserved water
        not conveyed to the state in consideration of the economic value of
        water in the immediate area where the water right is used.  The cost of
        the appraisal shall be shared equally by the department and the
        applicant.  Any funds conveyed to the state under this section shall be
        deposited in the state stream flow restoration account established in
        section 1005 of this act for use in purchasing or leasing trust waterrights.
             {+ NEW SECTION. +}  Sec. 303.  A new section is added to chapter
        90.03 RCW to read as follows:
             The department is authorized to process and render decisions on
        applications for change or transfer under this chapter and amendments
        of ground water rights under chapter 90.44 RCW as a matter of higher
        priority than processing and rendering decisions on applications for
        new water rights.  Any application for a new water right for which a
        permit decision has not been made by the department at the time a
        transfer, change, or amendment is approved shall not be considered an
        existing water right subject to analysis as to whether the application
        may be injured, impaired, or detrimentally affected by the transfer orchange.
             Sec. 304.  RCW 90.42.080 and 1993 c 98 s 4 are each amended to read
        as follows:
             (1) The state may acquire all or portions of existing water rights,
        {+ for the purposes of this chapter, +} by purchase, {+ lease, +} gift,
        {+ financing water conservation, reclaiming water, or as a consequence
        of the artificial storage and discharge of ground water, +} or {+ by +}
        other appropriate means other than by condemnation, from any person or
        entity or combination of persons or entities.  Once acquired, such
        rights are trust water rights.
             (2) The department may enter into leases, contracts, or such other
        arrangements with other persons or entities as appropriate, to ensure
        that trust water rights acquired in accordance with this chapter may be
        exercised to the fullest possible extent.
             (3) Trust water rights may be acquired by the state on a temporary
        or permanent basis.
             (4) The provisions of RCW 90.03.380 and 90.03.390 apply to
        transfers of water rights under this section.
             (({- (5) No funds may be expended for the purchase of water rights
        by the state pursuant to this section unless specifically appropriated
        for this purpose by the legislature. -}))
             {+ NEW SECTION. +}  Sec. 305.  A new section is added to chapter
        90.03 RCW to read as follows:
             A person may acquire and hold a water right for a beneficial
        instream purpose or purposes if the department approves a transfer or
        change of the water right under RCW 90.03.380 or 90.03.390.  An
        application for change must be filed on a form prescribed by the
        department.  Notice of the application shall be provided in the same
        manner as any other application filed under this chapter.  An instream
        flow right established in this manner need not involve any diversion of
        water or other physical works.  An instream flow right is appurtenant
        to a stream or reach of stream specified in the department's change
        approval.  When changed or transferred in this manner, the water right
        shall retain its original priority date.
                                               PART IV
                                         PUBLIC WATER SUPPLY
             {+ NEW SECTION. +}  Sec. 401.  A new section is added to chapter
        90.03 RCW to read as follows:
             It is in the public interest for public water systems' certificated
        water rights that document a combination of water that has been put to
        beneficial use and water that has not been put to beneficial use to be
        managed and regulated in a manner that:
             (1) Provides for concurrent development and use of an inchoate
        water right permit and the restoration of instream flows in geographic
        areas with salmonid stocks listed or proposed for listing as threatened
        or endangered under the federal endangered species act, or with stocks
        listed as critical or depressed under the state salmon and steelhead
        stock inventory;
             (2) Provides for the concurrent use of an inchoate water right
        permit and the retention of instream flows to provide for the
        preservation of wildlife, fish, scenic, aesthetic, and navigational
        values and other environmental values in geographic areas without
        salmonid stocks listed or proposed for listing as threatened or
        endangered under the endangered species act or with stocks listed as
        critical or depressed under the state salmon and steelhead stockinventory;
             (3) Provides clarity and certainty regarding the legal status of
        those rights for purposes of planning for water supply, land use,
        watershed management, and growth management;
             (4) Allows public water systems, through existing planning and
        regulatory processes, the certainty required for public water systems
        to operate in a safe, reliable, and effective manner consistent with
        their duties to:
             (a) Implement programs that promote the efficient management and
        use of water resources;
             (b) Provide water service in a timely and reasonable manner; and
             (c) Respect and protect the ecological system affected by their
        water withdrawals;
             (5) Ensures the effective use of existing water supplies through
        water conservation; and
             (6) Promotes the formation of satellite management agencies to
        facilitate regional management of public water supplies.
             Sec. 402.  RCW 90.03.330 and 1987 c 109 s 89 are each amended to
        read as follows:
             {+ (1) +} Upon a showing satisfactory to the department that any
        appropriation has been perfected in accordance with the provisions of
        this chapter, it shall be the duty of the department to issue to the
        applicant a certificate stating such facts in a form (({- to be -}))
        prescribed by (({- him -})) {+ the department +}, and such certificate
        shall (({- thereupon -})) be recorded with the department.  {+ Upon the
        request of a public water system, the department shall issue
        incremental certificates of water right, not more than once every six
        years, that reflect either instantaneous or annual quantities of water,
        or both, perfected by actual beneficial use.  Pumping or diversion
        records, meter data, or other reasonable information showing the extent
        of actual beneficial use of water shall accompany the request. +}  Any
        original water right certificate issued, as provided by this chapter,
        shall be recorded with the department and thereafter, at the expense of
        the party receiving the (({- same -})) {+ certificate +}, be {+
        transmitted +} by the department (({- transmitted -})) to the county
        auditor of the county or counties where the distributing system or any
        part thereof is located(({- , and -})){+ .  The certificate shall +} be
        recorded in the office of such county auditor, and thereafter be
        transmitted to the (({- owner thereof -})) {+ certificate holder +}.
             {+ (2) Public water system certificates of water right that
        document a combination of water that has been put to beneficial use and
        water that has never been put to use, that have department of health
        approval for the source for which the right is associated, and for
        which the entity holding the certificate has constructed facilities in
        place to use the water authorized by the water right, shall be
        administered in the following manner:
             (a) Any instantaneous or annual quantity of water that has been
        perfected by application of water to actual beneficial use prior to the
        effective date of this section shall remain a certificated right in
        good standing under this section subject to issuance of a superseding
        certificate under section 405 of this act.  The application of water to
        beneficial use must be shown by pumping or diversion records, meter
        data, or other reasonable information showing the extent of actual
        beneficial use.
             (b) Any instantaneous or annual quantity of water not perfected by
        actual beneficial use prior to the effective date of this section is
        reinstated as a water right permit within the meaning of this chapter
        and the holder of the permit is authorized to continue development and
        use of the inchoate water right.  The reinstated permit shall be
        administered by the department as an inchoate right in permit status in
        good standing, with a priority date as of the original application,
        subject to the requirements of section 407 of this act.
             (3)(a) For a public water system holding a permit reinstated by
        this section and having a department of health approved number of
        connections, and for which the original water right application filing
        was for a discrete number of connections, water use by up to the
        department of health approved number of connections as of the effective
        date of this section is allowed within the existing water service area
        of the public water system.  If the public water system does not have
        an existing service area established under chapter 43.20 or 70.116 RCW,
        the place of use as authorized under the original certificate shall be
        the place of use for water that is reinstated to permit status under
        this section.
             (b) For any public water system holding permits reinstated by this
        section and having a department of health approved number of equivalent
        residential units, and for which the original water right application
        filing was made for a discrete number of connections or a then current
        population and future requirements of the municipality or community,
        water services shall be allowed up to the number of equivalent
        residential units approved by the department of health as of the
        effective date of this section for the existing service area of the
        public water system as established under chapter 43.20 or 70.116 RCW.
        However, any water supply interties must also comply with RCW90.03.383.
             (c) For any public water system holding permits reinstated by this
        section with an unspecified number of connections in its department of
        health approved water system plan, and the original application filing
        was made for then current population and future requirements of the
        municipality or community, water services shall be allowed to satisfy
        the existing retail service area as established under chapter 43.20 or
        70.116 RCW, retail service area in-filling, and existing wholesale
        water delivery as of the effective date of this section.  However, any
        interties must also comply with RCW 90.03.383. +}
             Sec. 403.  RCW 90.03.015 and 1987 c 109 s 65 are each amended to
        read as follows:
             (({- As used in this chapter: -})) {+ The definitions in this
        section apply throughout this chapter unless the context clearly
        requires otherwise. +}
             (1) "Department" means the department of ecology(({- ; -})){+ . +}
             (2) "Director" means the director of ecology(({- ; and -})){+ . +}
             (3) "Person" means any firm, association, water users' association,
        corporation, irrigation district, or municipal corporation, as well as
        an individual.
             {+ (4) "Inchoate water right" means an incomplete appropriative
        right in good standing so long as the requirements of law are beingfulfilled.
             (5) "Public water system" has the meaning provided in RCW70.119A.020. +}
             Sec. 404.  RCW 39.34.020 and 1985 c 33 s 1 are each amended to read
        as follows:     For the purposes of this chapter, the term "public agency" shall
        mean any agency, political subdivision, or unit of local government of
        this state including, but not limited to, municipal corporations, quasi
        municipal corporations, special purpose districts, (({- and -})) local
        service districts{+ , and public water systems as defined in RCW
        70.119A.020 +}; any agency of the state government; any agency of the
        United States; any Indian tribe recognized as such by the federal
        government; and any political subdivision of another state.
             The term "state" shall mean a state of the United States.
             {+ NEW SECTION. +}  Sec. 405.  A new section is added to chapter
        90.03 RCW to read as follows:
             (1) Any public water system asserting that it holds a certificate
        that documents a combination of water put to beneficial use and water
        not yet put to beneficial use shall provide evidence to the department
        demonstrating that the criteria in subsection (2) of this section are
        met such that a superseding certificate and water rights permit should
        be issued.  If the department, upon reviewing a public water system
        plan or other applicable information, determines that the system has an
        inchoate water right as provided in RCW 90.03.330, the department shall
        issue a superseding certificate for the portion of the right that has
        been put to beneficial use and shall issue a permit for the inchoate
        portion of the water right that is reinstated to permit status.  The
        department shall condition permits reinstated by RCW 90.03.330 with the
        performance standards created by section 407 of this act and a
        development schedule.  The development schedule shall be twenty years
        from the effective date of this section with the option to extend the
        schedule if good cause is shown under RCW 90.03.320, except that the
        department may:
             (a) Authorize a development schedule longer than twenty years, but
        not more than fifty years, if a planned need is demonstrated, and (i)
        a withdrawal facility with a hydraulic capacity beyond that needed for
        twenty years was constructed, or (ii) debt service requirements extend
        for such a period;
             (b) Authorize a development schedule of less than twenty years if
        the permittee, pursuant to reasonable diligence, can perfect inchoate
        water right quantities by actual beneficial use in a shorter period oftime; or
             (c) Deny any time for further development if there is no
        demonstrated need for the water based on the water system plan or other
        applicable information.
             (2) Upon any determination of noncompliance with the performance
        standards created by section 407 of this act, the permittee shall be
        granted, by written notice, a reasonable period of time to effect
        compliance.  If a public water system receiving such a notification
        disagrees with the department's determination of a reasonable time for
        compliance, it may, at its election, initiate nonbinding mediation with
        the department to resolve the dispute.  After mediation, if the dispute
        is not resolved, the state shall issue the permit to effect the
        performance standards.  The permit is appealable to the pollution
        control hearings board.
             (3) At the end of the construction schedule authorized in the
        permit, the permit holder may request an extension of time only as
        provided in RCW 90.03.320.
             Sec. 406.  RCW 90.03.386 and 1991 c 350 s 2 are each amended to
        read as follows:
             {+ (1) +} Within service areas established pursuant to chapters
        43.20 and 70.116 RCW, the department of ecology and the department of
        health shall coordinate approval procedures to ensure compliance and
        consistency with the approved water system plan.
             {+ (2) An application for change of water right may be approved to
        establish a common service area for the use of existing water rights
        across multiple service areas that have been established under chapters
        43.20 and 70.116 RCW.  The department of ecology and the department of
        health shall coordinate review and approval procedures to ensure
        compliance and consistency with an approved coordinated water system
        plan or regional water plan for any common place of use proposal.  All
        water rights for public water supply within the proposed common service
        area shall be evaluated as part of the proposal. +}
             {+ NEW SECTION. +}  Sec. 407.  A new section is added to chapter
        90.03 RCW to read as follows:
             (1) Any permittee with a water right permit reinstated under
        section 405 of this act must meet the performance standards of this
        subsection.  Demonstration of compliance with performance standards
        shall be through existing planning programs and processes of the
        department of health or ecology to the extent practicable.  All
        permittees shall initially document compliance with the performance
        standards not less than two years and not more than eight years from
        the effective date of this section to the department of ecology and
        then in its water system plan update, provided a water system plan is
        required.  Any permittee not required to complete a water system plan
        shall demonstrate compliance in a reasonable, written format.  If the
        permittee complies with the performance standards, it will be
        considered in compliance with RCW 90.03.320.  The performance standardsare:
             (a) Evidence demonstrating a need for the water within the
        development schedule specified by the permit consistent with demand
        forecasts prepared in accordance with the demand forecasting methods
        specified by the departments of ecology and health;
             (b) Evidence that the water system's use of water is fully
        consistent with approved local land use planning within the constraints
        of water availability and cost;
             (c) Evidence that the water use meets state conservation and water
        use efficiency requirements existing at the time the documentation issubmitted;
             (d) Current information on how the utility's recent and proposed
        beneficial use of water under such permits is consistent with state and
        federal laws legally applicable to water use under the permit; and
             (e) Evidence of participation by the permittee, to the extent
        practicable, in watershed planning under chapter 90.82 RCW, coordinated
        water system planning under chapter 70.119 RCW, or other collaborative
        watershed planning efforts, if initiated.
             (2) For the performance measures in subsection (1) of this section,
        the department of health is responsible for ensuring compliance with
        subsection (1)(a) through (c) of this section and the department of
        ecology is responsible for ensuring compliance with subsection (1)(d)
        and (e) of this section when the performance measures are identified in
        a water system plan.  If no water system plan is required, the
        department of ecology is responsible for ensuring compliance with all
        performance measures.
             (3) For public water systems with a source of water that is either
        a surface water source or a ground water source that is interconnected
        with a surface water body that provides habitat for one or more
        salmonid stocks that are listed or proposed for listing as threatened
        or endangered under the federal endangered species act or with stocks
        listed as critical or depressed under the state salmon and steelhead
        stock inventory, the public water system shall enter into and implement
        an interlocal agreement with the departments of ecology and fish and
        wildlife as provided by chapter 39.34 RCW.
             (a) The purpose of the interlocal agreement is to identify and make
        mutual commitments to:
             (i) Take immediate actions to arrest the further decline in fish
        stock health and abundance;
             (ii) Establish, protect, and restore an instream flow that is
        sufficient to ensure that the instream flow contributes to the recovery
        and maintenance of salmonid stocks.  Any instream flows that are
        established in connection with an interlocal agreement for a water
        resource inventory area, as defined by chapter 173-500 WAC, overlaying
        the same geographic areas that received a grant from the department
        under chapter 90.82 RCW shall be interim until such planning for
        instream flow, if applicable, is complete under chapter 90.82 RCW.
        Interim instream flows established shall be conservative with regard to
        preserving instream values;
             (iii) Define a strategy to restore stream flows to the established
        instream flow;     (iv) Establish benchmarks or milestones that can be used to
        objectively measure the success in the recovery and maintenance of the
        listed salmonid stocks; and
             (v) Establish provisions for an adaptive management approach to
        modify the interlocal agreement to effect its goal.
             (b) If an interlocal agreement is not developed and signed by the
        departments of ecology and fish and wildlife and the permittee within
        two years of the effective date of this section, the permittee's use of
        water from the effective date of this section under the permit shall be
        subject to applicable source instream flows existing as of the
        effective date of this section created by rule.  If instream flows have
        not been established or are insufficient, an instream flow shall be
        specified by the department in consultation with the department of fish
        and wildlife under RCW 75.20.050 by permit proviso, and any future
        instream flows adopted or amended by the department.
             (c) Within four years of the effective date of this section, and
        every three years thereafter, the department in consultation with the
        department of fish and wildlife, shall review the interlocal agreement
        and its implementation to determine its effectiveness in contributing
        to the recovery and maintenance of the listed salmonid stocks and
        review the actions of all parties to implement the agreement.  If the
        department of ecology determines by written findings that a permittee
        who is party to the interlocal agreement has failed to abide by the
        agreement, it shall condition the use of water under the permit, from
        the effective date of this section, to applicable instream flows
        existing as of the effective date of this section created by rule.  If
        instream flows have not been established or are insufficient, an
        instream flow shall be specified by the department in consultation with
        the department of fish and wildlife under RCW 75.20.050 by permit
        proviso, and any future instream flows adopted or amended by thedepartment.
             (d) If any permittee who is party to the interlocal agreement
        disagrees with any determinations made by the department under this
        section, the permittee may, at its election, initiate nonbinding
        mediation with the department to resolve a dispute.  After mediation,
        if the dispute is not resolved, the permittee may appeal any findings
        made by the department to the pollution control hearings board.
             (4) For any public water system permittee in an area without stocks
        listed as threatened or endangered under the endangered species act and
        without stocks listed as critical or depressed in the state salmon and
        steelhead stock inventory, the use of inchoate permits shall be
        conditioned with instream flows established under chapter 90.22 or
        90.54 RCW existing as of the effective date of this section, for the
        applicable source.
             (5) Nothing in this section waives any other requirement of the law
        related to the use of water.
             {+ NEW SECTION. +}  Sec. 408.  A new section is added to chapter
        90.03 RCW to read as follows:
             The department shall approve an application for change that
        proposes to change or transfer an inchoate water right from one public
        water system to another or to expand the place of use of an existing
        public water system if in addition to the requirements of RCW90.03.380:
             (1) The proposed change will authorize the use of water consistent
        with a state-approved water system plan under chapter 43.20 RCW, and
        any approved comprehensive plan under chapter 36.70A or 36.70 RCW, or
        in the absence of such a plan, an approved plan under chapter 35.63
        RCW.  The department shall review water right issues concurrently with
        department of health review of the associated water system plan
        describing any proposed transfer of water.  Any transfer of more than
        two million gallons of water per day across a water resource inventory
        area boundary must be consistent with an approved watershed plan under
        chapter 90.82 RCW, coordinated water system plan under chapter 70.116
        RCW, or a similar plan.  In the absence of such a plan, the department
        shall secure the approval of the counties affected by the transfer
        prior to approval of the change;
             (2) The public water system has implemented water conservation
        measures so that its water use meets or exceeds state performance
        standards.  For transfers of water by intertie, the receiving public
        water system's conservation performance must be equivalent to or exceed
        the sending system's performance; and
             (3)(a) The use of water is subject to instream flows to protect the
        quality of the natural environment as provided in RCW 90.54.020(3)(a)
        or 75.20.050 and a contribution to flow restoration is made as provided
        under (b) of this subsection.  The department shall condition the use
        of water with any instream flow proviso on the water right proposed for
        change or any applicable instream flows contained in an adopted rule,
        unless the department, in consultation with the department of fish and
        wildlife, determines that the applicable instream flow is not
        sufficient.  Interim instream flows shall be established that are
        conservative with regard to preserving instream values.  Any interim
        instream flow placed as a proviso on an approved change under this
        section is effective until permanent instream flows are developed under
        a watershed planning program under chapter 90.82 RCW, or in the absence
        of such a program, by the department of ecology under chapters 90.22
        and 90.54 RCW.
             (b) In addition to the provisions of (a) of this subsection, in
        areas where adopted minimum instream flows have not been met in eight
        of the most recent ten years, the department shall require the
        applicant to provide a contribution to assist in the restoration of
        aquatic ecosystems in the affected watershed or watersheds equal to ten
        percent of the volume or value of the unused water to be transferred.
        The contribution can be a transfer of water to the state trust water
        rights program, or at the applicant's discretion a one-time monetary
        contribution.  For a monetary contribution, the applicant proposing the
        transfer shall remit to the state treasurer a payment based on the
        value of the water as determined by a licensed independent real estate
        appraiser selected by agreement of the department and the applicant.
        The cost of the appraisal shall be borne by the applicant.  Any funds
        conveyed to the state under this section shall be deposited in the
        state stream flow restoration account established in section 1005 of
        this act for use in purchasing or leasing trust water rights.
             {+ NEW SECTION. +}  Sec. 409.  A new section is added to chapter
        90.03 RCW to read as follows:
             The department is authorized to enter into agreements with
        satellite management agencies to effect sound water management and
        public health objectives consistent with this chapter and chapters
        43.20 and 70.116 RCW.  The department shall seek expressions of the
        public interest in developing the agreements and any such agreement
        shall not authorize any impairment of existing rights.  Implementation
        of the agreement must result in a net benefit to the public when public
        health and environmental values are evaluated together.  In developing
        the agreements, the department shall consider, but is not limited toconsidering:
             (1) Benefits to regional water supplies;
             (2) The effect of existing and future withdrawals of ground water
        under RCW 90.44.050;
             (3) Appropriate mitigation or contingency plans for water use
        during low flow periods;
             (4) Appropriate conservation and metering practices;
             (5) Water management responsibilities proportional to the volume of
        water being moved, if any; and
             (6) Water management activities targeted at establishment,
        protection, and restoration of instream flows.
             Sec. 410.  RCW 90.03.383 and 1991 c 350 s 1 are each amended to
        read as follows:
             (1) The legislature recognizes the value of interties for improving
        the reliability of public water systems, enhancing their management,
        and more efficiently utilizing the increasingly limited resource.
        Given the continued growth in the most populous areas of the state, the
        increased complexity of public water supply management, and the trend
        toward regional planning and regional solutions to resource issues,
        interconnections of public water systems through interties provide a
        valuable tool to ensure reliable public water supplies for the citizens
        of the state.  Public water systems have been encouraged in the past to
        utilize interties to achieve public health and resource management
        objectives.  The legislature finds that it is in the public interest to
        recognize interties existing and in use as of January 1, 1991, and to
        have associated water rights modified by the department of ecology to
        reflect current use of water through those interties, pursuant to
        subsection (3) of this section.  The legislature further finds it in
        the public interest to develop a coordinated process to review
        proposals for interties commencing use after January 1, 1991.
             (2) For the purposes of this section, the following definitionsshall apply:
             (a) "Interties" are interconnections between public water systems
        permitting exchange{+ , acquisition, +} or delivery of water between
        those systems for other than emergency supply purposes, where such
        exchange or delivery is within established instantaneous and annual
        withdrawal rates specified in the systems' existing water right permits
        or certificates, or contained in claims filed pursuant to chapter 90.14
        RCW, and which results in better management of public water supply
        consistent with existing rights and obligations.  Interties include
        interconnections between public water systems permitting exchange{+ ,
        acquisition, +} or delivery of water to serve as primary or secondary
        sources of supply(({- , but do not include development of new sources
        of supply to meet future demand -})).
             (b) "Service area" is the area designated in a water system plan or
        a coordinated water system plan pursuant to chapter 43.20 or 70.116 RCW
        respectively.  When a public water system does not have a designated
        service area subject to the approval process of those chapters, the
        service area shall be the designated place of use contained in the
        water right permit or certificate, or contained in the claim filed
        pursuant to chapter 90.14 RCW.
             (3) Public water systems with interties existing and in use as of
        January 1, 1991, or that have received written approval from the
        department of health prior to that date, shall file written notice of
        those interties with the department of health and the department of
        ecology.  The notice may be incorporated into the public water system's
        five-year update of its water system plan, but shall be filed no later
        than June 30, 1996.  The notice shall identify the location of the
        intertie; the dates of its first use; the purpose, capacity, and
        current use; the intertie agreement of the parties and the service
        areas assigned; and other information reasonably necessary to modify
        the water right permit.  Notwithstanding the provisions of RCW
        90.03.380 and 90.44.100, for public water systems with interties
        existing and in use as of January 1, 1991, the department of ecology,
        upon receipt of notice meeting the requirements of this subsection,
        shall, as soon as practicable, modify the place of use descriptions in
        the water right permits, certificates, or claims to reflect the actual
        use through such interties, provided that the place of use is within
        service area designations established in a water system plan approved
        pursuant to chapter 43.20 RCW, or a coordinated water system plan
        approved pursuant to chapter 70.116 RCW, and further provided that the
        water used is within the instantaneous and annual withdrawal rates
        specified in the water right permit and that no outstanding complaints
        of impairment to existing water rights have been filed with the
        department of ecology prior to September 1, 1991.  Where such
        complaints of impairment have been received, the department of ecology
        shall make all reasonable efforts to resolve them in a timely manner
        through agreement of the parties or through available administrativeremedies.
             (4) Notwithstanding the provisions of RCW 90.03.380 and 90.44.100,
        exchange or delivery of water through interties commencing use after
        January 1, 1991, shall be permitted when the intertie improves overall
        system reliability, enhances the manageability of the systems, provides
        opportunities for conjunctive use, or delays or avoids the need to
        develop new water sources, and otherwise meets the requirements of this
        section, provided that each public water system's water use shall not
        exceed the instantaneous or annual withdrawal rate specified in its
        water right authorization, shall not adversely affect existing water
        rights, and shall not be inconsistent with state-approved plans such as
        water system plans or other plans which include specific proposals for
        construction of interties.  Interties commencing use after January 1,
        1991, shall not be inconsistent with regional water resource plans
        developed pursuant to chapter 90.54 RCW.
             (5) For public water systems subject to the approval process of
        chapter 43.20 RCW or chapter 70.116 RCW, proposals for interties
        commencing use after January 1, 1991, shall be incorporated into water
        system plans pursuant to chapter 43.20 RCW or coordinated water system
        plans pursuant to chapter 70.116 RCW and submitted to the department of
        health and the department of ecology for review and approval as
        provided for in subsections (5) through (9) of this section.  The plan
        shall state how the proposed intertie will improve overall system
        reliability, enhance the manageability of the systems, provide
        opportunities for conjunctive use, or delay or avoid the need to
        develop new water sources.
             (6) The department of health shall be responsible for review and
        approval of proposals for new interties.  In its review the department
        of health shall determine whether the intertie satisfies the criteria
        of subsection (4) of this section, with the exception of water rights
        considerations, which are the responsibility of the department of
        ecology, and shall determine whether the intertie is necessary to
        address emergent public health or safety concerns associated with
        public water supply.
             (7) If the intertie is determined by the department of health to be
        necessary to address emergent public health or safety concerns
        associated with public water supply, the public water system shall
        amend its water system plan as required and shall file an application
        with the department of ecology to change its existing water right to
        reflect the proposed use of the water as described in the approved
        water system plan.  The department of ecology shall process the
        application for change pursuant to RCW 90.03.380 or 90.44.100 as
        appropriate, except that, notwithstanding the requirements of those
        sections regarding notice and protest periods, applicants shall be
        required to publish notice one time, and the comment period shall be
        fifteen days from the date of publication of the notice.  Within sixty
        days of receiving the application, the department of ecology shall
        issue findings and advise the department of health if existing water
        rights are determined to be adversely affected.  If no determination is
        provided by the department of ecology within the sixty-day period, the
        department of health shall proceed as if existing rights are not
        adversely affected by the proposed intertie.  The department of ecology
        may obtain an extension of the sixty-day period by submitting written
        notice to the department of health and to the applicant indicating a
        definite date by which its determination will be made.  No additional
        extensions shall be granted, and in no event shall the total review
        period for the department of ecology exceed one hundred eighty days.
             (8) If the department of health determines the proposed intertie
        appears to meet the requirements of subsection (4) of this section but
        is not necessary to address emergent public health or safety concerns
        associated with public water supply, the department of health shall
        instruct the applicant to submit to the department of ecology an
        application for change to the underlying water right or claim as
        necessary to reflect the new place of use.  The department of ecology
        shall consider the applications pursuant to the provisions of RCW
        90.03.380 and 90.44.100 as appropriate.  If in its review of proposed
        interties and associated water rights the department of ecology
        determines that additional information is required to act on the
        application, the department may request applicants to provide
        information necessary for its decision, consistent with agency rules
        and written guidelines.  Parties disagreeing with the decision of the
        department of ecology on the application for change in place of use may
        appeal the decision to the pollution control hearings board.
             (9) The department of health may approve plans containing intertie
        proposals prior to the department of ecology's decision on the water
        right application for change in place of use.  However, notwithstanding
        such approval, construction work on the intertie shall not begin until
        the department of ecology issues the appropriate water right document
        to the applicant consistent with the approved plan.
             {+ NEW SECTION. +}  Sec. 411.  A new section is added to chapter
        90.03 RCW to read as follows:
             Nothing in section 401, 405, or 407 through 409 of this act or RCW
        90.03.330, 90.03.015, 39.34.020, 90.03.386, or 90.03.383 shall impair
        any existing water right.                                       PART V
                                       GROUND WATER EXEMPTION
             Sec. 501.  RCW 90.44.050 and 1987 c 109 s 108 are each amended to
        read as follows:
             (({- After June 6, 1945, -})) {+ N +}o withdrawal of public ground
        waters of the state shall be begun, nor shall any well or other works
        for such withdrawal be constructed, unless an application to
        appropriate such waters has been made to the department and a permit
        has been granted (({- by it as herein provided:  EXCEPT, HOWEVER, That
        any withdrawal of public ground waters for stock-watering purposes, or
        for the watering of a lawn or of a noncommercial garden not exceeding
        one-half acre in area, or for single or group domestic uses in an
        amount not exceeding five thousand gallons a day, or for an industrial
        purpose in an amount not exceeding five thousand gallons a day, is and
        shall be exempt from the provisions of this section, but, to the extent
        that it is regularly used beneficially, shall be entitled to a right
        equal to that established by a permit issued under the provisions of
        this chapter:  PROVIDED, HOWEVER, That the department from time to time
        may require the person or agency making any such small withdrawal to
        furnish information as to the means for and the quantity of that
        withdrawal:  PROVIDED, FURTHER, That at the option of the party making
        withdrawals of ground waters of the state not exceeding five thousand
        gallons per day, applications under this section or declarations under
        RCW 90.44.090 may be filed and permits and certificates obtained in the
        same manner and under the same requirements as is in this chapter
        provided in the case of withdrawals in excess of five thousand gallons
        a day -})) {+ except as provided in sections 502 and 503 of this act+}.
             {+ NEW SECTION. +}  Sec. 502.  A new section is added to chapter
        90.44 RCW to read as follows:
             Within two years of the effective date of this section, and
        afterward whenever changing water supply and water use conditions
        dictate, the department shall enter into agreements with each county of
        the state to establish the conditions under which various new
        withdrawals of ground water would be exempt from the permit requirement
        of RCW 90.44.050 for those watersheds or portions of watersheds that
        lie within that county's boundaries.  In developing such agreements,
        the department shall consult with the departments of health, fish and
        wildlife, and community, trade, and economic development, and the
        department shall, as quickly as is practicable, adopt the conditions
        established in such agreements as rules.  The agreements shall be
        designed to meet both state and local objectives with respect to land
        and water resource management, including, but not limited to:
             (1) Protecting and restoring salmonid stocks that are listed or
        proposed for listing as threatened or endangered under the federal
        endangered species act or listed as critical or depressed under the
        state salmon and steelhead stock inventory;
             (2) Complying with, and effectively implementing, the provisions of
        chapter 36.70A RCW;
             (3) Providing for public health and safety and promoting the use of
        satellite management agencies to manage new public water systems;
             (4) Promoting meaningful and effective watershed planning andmanagement;
             (5) Providing certainty about types of water uses that would be
        exempt from the permit requirements of RCW 90.44.050;
             (6) Promoting cluster development to help preserve open space; and
             (7) Providing the means to address and mitigate for any
        environmental and natural resources effects caused by either single or
        multiple withdrawals exempted from the permit requirements of RCW90.44.050.
             {+ NEW SECTION. +}  Sec. 503.  A new section is added to chapter
        90.44 RCW to read as follows:
             (1) Except as specified in subsections (2) and (3) of this section,
        and until that time as an agreement or agreements under section 502 of
        this act have been concluded with a particular county, but not after
        two years from the effective date of this section, a withdrawal of
        public ground waters in a total amount not exceeding five thousand
        gallons per day is allowed for one or more of the following purposes:
             (a) Stock watering up to the carrying capacity of the land;
             (b) Irrigation of a lawn or noncommercial garden, the total area
        irrigated not to exceed one-half acre;     (c) Single or group domestic use; or
             (d) Industrial purposes.
             The purposes listed in (a) through (d) of this subsection are
        exempt from the permit requirements of RCW 90.44.050, and, to the
        extent water is beneficially used and in conformance with all other
        applicable laws, are entitled to a right equal to that established
        under the provisions of this chapter.  The priority date for a right
        established under this section shall be the date that continuous usage
        of water for one or more of the exempted purposes set forth in this
        subsection is commenced.  The department may require persons or
        entities making withdrawals under this section to furnish information
        as to the means for and the quantity of their withdrawals.
             (2) Until an agreement or agreements have been concluded under
        section 502 of this act, but not after two years from the effective
        date of this section, for those watersheds or portions of watersheds
        that lie within a county's boundaries but outside of the areas
        identified in subsection (3) of this section, the county may adopt
        criteria by local ordinance further restricting the use of the
        exemption specified in subsection (1) of this section.  Types of
        restrictions that may be placed upon use of the exemption include, but
        are not limited to:     (a) Limiting use to certain purposes;
             (b) Limiting the amount of water that can be used for one or more
        purposes and the acreage that can be irrigated;
             (c) Limiting the total number of exempt uses or the total
        quantities of water that may be withdrawn from the source, regardless
        of purpose; and
             (d) Limiting the term of use of the exemption to the period until
        water can be provided by a public water system.
             (3) Until an agreement or agreements have been concluded under
        section 502 of this act, but not after two years from the effective
        date of this section, for any areas of the state containing waters in
        which one or more salmonid stocks are listed or proposed for listing as
        threatened or endangered under the federal endangered species act, or
        are listed as critical or depressed under the state salmon and
        steelhead stock inventory, the use of the permit exemption specified in
        RCW 90.44.050 is either prohibited, or the conditions under which the
        exemption can be used modified, if, within that area, depleted stream
        flows have been identified as a contributing factor in the decline of
        the fishery resource by a limiting factor analysis undertaken in
        conjunction with the listing, and the aquifer or aquifers that would
        serve as the source for new water supplies would capture water from one
        or more of the surface water bodies that is experiencing depleted
        stream flows.  In those areas where water service from an existing
        public water system or approved satellite management agency is
        reasonably available, use of the exemption is prohibited.  In those
        areas where water service from an existing public water system or
        approved satellite management agency is not reasonably available, the
        exemption shall be used solely for reasonable single-family domestic
        purposes in an amount not to exceed four hundred gallons per day and
        only until water can be provided by a public water system.
             (4) This section expires two years from the effective date of thissection.
             Sec. 504.  RCW 58.17.110 and 1995 c 32 s 3 are each amended to read
        as follows:
             (1) The city, town, or county legislative body shall inquire into
        the public use and interest proposed to be served by the establishment
        of the subdivision and dedication.  (({- It shall determine:  (a) If
        appropriate provisions are made for, but not limited to, the public
        health, safety, and general welfare, for open spaces, drainage ways,
        streets or roads, alleys, other public ways, transit stops, potable
        water supplies, sanitary wastes, parks and recreation, playgrounds,
        schools and schoolgrounds, and shall consider all other relevant facts,
        including sidewalks and other planning features that assure safe
        walking conditions for students who only walk to and from school; and
        (b) whether the public interest will be served by the subdivision anddedication.
             (2) -})) A proposed subdivision and dedication shall not be
        approved unless the city, town, or county legislative body {+
        determines and +} makes written findings that:  (a) Appropriate
        provisions are made for the public health, safety, and general welfare
        and for such open spaces, drainage ways, streets or roads, alleys,
        other public ways, transit stops, potable water supplies, sanitary
        wastes, parks and recreation, playgrounds, schools and schoolgrounds
        and all other relevant facts, including sidewalks and other planning
        features that assure safe walking conditions for students who only walk
        to and from school; and (b) the public use and interest will be served
        by the platting of such subdivision and dedication.
             {+ (2) In making its determination and written findings that
        appropriate provisions have been made for potable water supplies, the
        city, town, or county legislative body shall promote the reliable and
        efficient delivery of safe and adequate water supply by ensuring that:
             (a) The number of new public water supply systems established isminimized;
             (b) The use of new wells for potable water supply shall, until such
        time as an agreement or agreements have been concluded under section
        502 of this act, be in conformance with the provisions of section 503
        of this act; and
             (c) If a proposed subdivision is within the future service area of
        an existing public water system, as identified in an approved
        coordinated water system plan under chapter 70.116 RCW or an approved
        water system plan under chapter 43.20 RCW, and the system can provide
        safe and reliable potable water to an applicant in a timely and
        reasonable manner, under guidelines developed by the department of
        health, the city, town, or county shall require connection to that
        system.  If no existing public water system can provide service, the
        city, town, or county shall only approve new public water systems in
        conformance with RCW 70.119A.060(2).
             (3) +}  If (({- it -})) {+ the city, town, or county legislative
        body +} finds that the proposed subdivision and dedication make (({-
         such -})) appropriate provisions {+ as provided in subsections (1) and
        (2) of this section +} and that the public use and interest will be
        served, then the legislative body shall approve the proposed
        subdivision and dedication.  Dedication of land to any public body,
        provision of public improvements to serve the subdivision, and/or
        impact fees imposed under RCW 82.02.050 through 82.02.090 may be
        required as a condition of subdivision approval.  Dedications shall be
        clearly shown on the final plat.  No dedication, provision of public
        improvements, or impact fees imposed under RCW 82.02.050 through
        82.02.090 shall be allowed that constitutes an unconstitutional taking
        of private property.  The legislative body shall not as a condition to
        the approval of any subdivision require a release from damages to be
        procured from other property owners.
             (({- (3) -})) {+ (4) +} If the preliminary plat includes a
        dedication of a public park with an area of less than two acres and the
        donor has designated that the park be named in honor of a deceased
        individual of good character, the city, town, or county legislative
        body must adopt the designated name.
             Sec. 505.  RCW 19.27.097 and 1995 c 399 s 9 are each amended to
        read as follows:     (1) Each applicant for a building permit of a building
        necessitating potable water shall provide evidence of an adequate water
        supply for the intended use of the building.  Evidence may be in the
        form of a water right permit from the department of ecology, a letter
        from an approved {+ public +} water (({- purveyor -})) {+ system +}
        stating the ability to provide water, or another form sufficient to
        verify the existence of an adequate water supply.  (({- In addition to
        other authorities, the county or city may impose conditions on building
        permits requiring connection to an existing public water system where
        the existing system is willing and able to provide safe and reliable
        potable water to the applicant with reasonable economy and efficiency.
        -}))  {+ When an existing public water system can provide safe and
        reliable water to an applicant, the county or city shall require
        connection to that system. +}  An application for a water right shall
        not be sufficient proof of an adequate water supply.
             (2) Within counties not required or not choosing to plan pursuant
        to RCW 36.70A.040, the county and the state may mutually determine
        those areas in the county in which the requirements of subsection (1)
        of this section shall not apply.  The departments of health and ecology
        shall coordinate on the implementation of this section.  Should the
        county and the state fail to mutually determine those areas to be
        designated pursuant to this subsection, the county may petition the
        department of community, trade, and economic development to mediate or,
        if necessary, make the determination.
             (3) {+ A county, city, or town shall require an applicant for a
        building permit to utilize water conservation measures consistent with
        local ordinances, including ordinances established in accordance with
        regional watershed plans adopted under chapter 90.82 RCW.  The
        conservation measures may be in addition to those required by either
        the department of health or the department of ecology.
             (4) +} Buildings that do not need potable water facilities are
        exempt from the provisions of this section.  The department of ecology,
        after consultation with local governments, may adopt rules to implement
        this section, which may recognize differences between high-growth and
        low-growth counties.                                       PART VI
                                  CAPTURE OF SURFACE WATER BY WELLS
             {+ NEW SECTION. +}  Sec. 601.  The legislature finds that
        Washington's watersheds are unique and vary considerably in structure
        and complexity.  Watershed-specific information is required to address
        water use, planning, and management in each watershed.  In many basins
        the connection between ground water and surface water makes further
        development of the ground water resource problematic because of the
        risk of impairment to existing water rights, including established
        instream flows.  A technical advisory committee convened by the
        department of ecology determined that, in most watersheds in the state,
        withdrawals of ground water will, to some extent, capture stream flow,
        meaning that the withdrawal or withdrawals will draw water directly
        from the stream or will intercept and reduce the amount of ground water
        discharge to the stream, or both.  The committee also developed a
        framework for using the best available science and information to
        select a technical method appropriate to assess the relationship
        between surface and ground water for a given area.  These methods can
        then be used to determine the effects proposed ground water withdrawals
        could have on existing rights, including established instream flows.
             The legislature also finds that significant opportunities exist to
        further develop the ground water resources of the state provided that
        appropriate actions are taken to mitigate for any possible impairment
        caused by new ground water withdrawals on those existing water rights.
        Because most new applications for ground water rights involve
        withdrawals that could capture surface water, the issuance of new
        ground water permits is often dependent upon an applicant offsetting or
        mitigating the effects of those proposed withdrawals on surface water
        sources.  Thus there is a strong need to understand the types of
        mitigation measures that would effectively offset the effects caused by
        proposed withdrawals if new ground water permits are to be issued.
             The legislature further finds that the mitigation efforts should be
        undertaken in a manner consistent with a set of principles that promote
        general watershed health and the preservation and enhancement of the
        fishery resource, particularly in those parts of the state that contain
        waters in which one or more salmonid stocks are listed or proposed for
        listing as threatened or endangered under the federal endangered
        species act or listed as critical or depressed under the state salmon
        and steelhead stock inventory.  The purpose of chapter . . ., Laws of
        1999 (this act) is, in part, to establish that set of principles under
        which proposals to mitigate for the effects of new ground water
        withdrawals can be evaluated.
             {+ NEW SECTION. +}  Sec. 602.  The department of ecology shall
        convene a group consisting of representatives from major stakeholder
        groups concerned with water resources management as well as scientists
        recognized for their expertise in the fields of hydrology,
        hydrogeology, fish biology, stream ecology, and stream restoration to
        review, assess, and recommend methods for mitigating the effects caused
        by proposed ground water withdrawals.  The group shall consider all
        types of mitigation measures.  The department of ecology shall adopt
        rules to implement the findings of the group and shall report on the
        group's progress, findings, and any recommendations for possible
        legislative action to the legislature by December 31, 1999.
             {+ NEW SECTION. +}  Sec. 603.  A new section is added to chapter
        90.03 RCW to read as follows:
             (1) If the department determines that an application for a water
        right, transfer, or change filed under RCW 90.03.260 or 90.03.380 could
        impair existing rights, including instream flows, the department shall
        apply the following principles to evaluate any mitigation proposal
        included as part of the application:
             (a) Preference shall be given to proposals that would replace the
        impaired quantity with a like amount of water, both in quantity andquality;
             (b) Preference shall be given to proposals that would require a
        minimum of ongoing maintenance in order to be effective;
             (c) Preference shall be given to proposals that would provide
        benefits for the entire watershed;
             (d) Preference shall be given to coordinated mitigation proposals
        submitted in conjunction with a group of applications when those
        proposals would result in more effective mitigation, provide greater
        benefits to the water resource, and promote better overall watershed
        health.  Submission of joint mitigation proposals shall not alter the
        priority dates of the respective applications.
             (2) All proposals to mitigate potential impairments that would be
        created by a proposed diversion or withdrawal of water shall include a
        program to monitor the effectiveness of the mitigation measure.
             {+ NEW SECTION. +}  Sec. 604.  A new section is added to chapter
        90.44 RCW to read as follows:
             The department shall, when evaluating an application for a water
        right or an amendment filed under RCW 90.44.050 or 90.44.100 that it
        determines could impair existing rights, including instream flows,
        apply the principles outlined in section 603 of this act.
             The department shall condition the use of water with any instream
        flow proviso on the water right proposed for change or any applicable
        instream flows contained in an adopted rule, unless the department, in
        consultation with the department of fish and wildlife, determines that
        the applicable instream flow is not sufficient using the best
        information available at the time the decision is made.  In the absence
        of established instream flows, or if existing instream flows are
        determined by the department to be insufficient, the department shall,
        in consultation with the department of fish and wildlife, determine
        interim instream flows for conditioning the unused water to be
        transferred or changed.  Interim instream flows shall be established
        that are conservative with regard to preserving instream values.  Any
        interim instream flow placed as a proviso on an approved change under
        this section shall be effective until permanent instream flows are
        developed pursuant to a watershed planning program under chapter 90.82
        RCW, or in the absence of such program, by the department of ecology
        under chapters 90.22 and 90.54 RCW.
             Sec. 605.  RCW 90.03.255 and 1997 c 360 s 2 are each amended to
        read as follows:
             The department shall, when evaluating an application for a water
        right, transfer, or change filed pursuant to RCW (({- 90.03.250 -})) {+
        90.03.260 +} or 90.03.380 that includes provision for any water
        impoundment or other resource management technique, take into
        consideration the benefits and costs, including environmental effects,
        of any water impoundment or other resource management technique that is
        included as a component of the application.  The department's
        consideration shall extend to any increased water supply{+ , or
        mitigation for any impairment to existing rights, +} that results from
        the impoundment or other resource management technique, including but
        not limited to any recharge of ground water that may occur, as a means
        of making water available or otherwise offsetting the impact of the
        diversion of surface water proposed in the application for the water
        right, transfer, or change.  Provision for an impoundment or other
        resource management technique in an application shall be made solely at
        the discretion of the applicant and shall not otherwise be made by the
        department as a condition for approving an application that does not
        include such provision.
             This section does not lessen, enlarge, or modify the rights of any
        riparian owner, or any existing water right acquired by appropriation
        or otherwise.
             Sec. 606.  RCW 90.44.055 and 1997 c 360 s 3 are each amended to
        read as follows:
             The department shall, when evaluating an application for a water
        right or an amendment filed pursuant to RCW 90.44.050 or 90.44.100 that
        includes provision for any water impoundment or other resource
        management technique, take into consideration the benefits and costs,
        including environmental effects, of any water impoundment or other
        resource management technique that is included as a component of the
        application.  The department's consideration shall extend to any
        increased water supply{+ , or mitigation for any impairment to existing
        rights, +} that results from the impoundment or other resource
        management technique, including but not limited to any recharge of
        ground water that may occur, as a means of making water available or
        otherwise offsetting the impact of the withdrawal of ground water
        proposed in the application for the water right or amendment in the
        same water resource inventory area.  Provision for an impoundment or
        other resource management technique in an application shall be made
        solely at the discretion of the applicant and shall not be made by the
        department as a condition for approving an application that does not
        include such provision.
             This section does not lessen, enlarge, or modify the rights of any
        riparian owner, or any existing water right acquired by appropriation
        or otherwise.                                      PART VII
                                             ENFORCEMENT
             {+ NEW SECTION. +}  Sec. 701.  A new section is added to chapter
        39.34 RCW to read as follows:
             By agreement under this chapter, the director of the department of
        ecology and the director of the department of fish and wildlife are
        each authorized to delegate and accept law enforcement powers or
        functions to or from the other department.
             Sec. 702.  RCW 75.20.106 and 1993 sp.s. c 2 s 35 are each amended
        to read as follows:
             (({- The department may levy civil penalties of up to one hundred
        dollars per day for violation of any provisions of RCW 75.20.100 or
        75.20.103.  The penalty provided shall be imposed by notice in writing,
        either by certified mail or personal service to the person incurring
        the penalty, from the director or the director's designee describing
        the violation.  Any person incurring any penalty under this chapter may
        appeal the same under chapter 34.05 RCW to the director.  Appeals shall
        be filed within thirty days of receipt of notice imposing any penalty.
        The penalty imposed shall become due and payable thirty days after
        receipt of a notice imposing the penalty unless an appeal is filed.
        Whenever an appeal of any penalty incurred under this chapter is filed,
        the penalty shall become due and payable only upon completion of all
        review proceedings and the issuance of a final order confirming the
        penalty in whole or in part.
             If the amount of any penalty is not paid within thirty days after
        it becomes due and payable the attorney general, upon the request of
        the director shall bring an action in the name of the state of
        Washington in the superior court of Thurston county or of any county in
        which such violator may do business, to recover such penalty.  In all
        such actions the procedure and rules of evidence shall be the same as
        an ordinary civil action.  All penalties recovered under this section
        shall be paid into the state's general fund. -}))
             {+ (1) If any person or government agency fails to follow the
        requirements of obtaining hydraulic project approval under this chapter
        or fails to carry out any of the requirements or conditions of a
        hydraulic project approval issued under this chapter, the department
        may issue an order to that person or government agency.  The order may
        require the person or government agency to stop work on any or all of
        the activities subject to the hydraulic project approval, to correct or
        to restore the nonconforming site, or to both stop work and to correct
        or to restore the nonconforming site.  Within twenty days of service of
        such an order or as provided by rule of the department extending such
        time, the person may file a written petition with the department
        appealing the order, and this petition shall be treated as an
        application for an adjudicative proceeding under chapter 34.05 RCW.  In
        the event of an appeal, a person or government agency may seek interim
        relief from an order under this section as provided in chapter 34.05RCW.
             (2) The department may adopt rules to designate that certain
        violations of the terms or conditions of hydraulic project approval are
        an infraction to be punished as provided by RCW 77.15.160.  Any
        punishment under chapter 77.15 RCW shall be supplemental to the remedy
        provided by subsection (1) of this section. +}
             Sec. 703.  RCW 77.15.300 and 1998 c 190 s 52 are each amended to
        read as follows:
             (1) A person is guilty of unlawfully undertaking hydraulic project
        activities if the person{+ :
             (a) C +}onstructs any form of hydraulic project or performs other
        work on a hydraulic project and(({- :
             (a) -})) {+ f +}ails to have a hydraulic project approval required
        under chapter 75.20 RCW for such construction or work; (({- or -}))
             (b) Violates any requirements or conditions of the hydraulic
        project approval for such construction or work{+ ;
             (c) Violates any stop work or other order issued pursuant to RCW
        75.20.106 when that order has been either served on the person or
        posted at the site of the violation, except when the person acts in
        accordance with any relief under chapter 34.05 RCW pursuant to a timely
        appeal or timely relief from the department order; or
             (d) Violates any rule governing small scale mining adopted under
        RCW 75.20.330, except when such a rule violation has been designated as
        an infraction by rule of the department +}.
             (2) Unlawfully undertaking hydraulic project activities is a gross
        misdemeanor.
             {+ NEW SECTION. +}  Sec. 704.  A new section is added to chapter
        90.58 RCW to read as follows:
             Whenever there are terms or conditions of the permit that are
        required to be completed after occupancy or use commences, or carried
        out as an ongoing part of occupancy or use, the local government may
        require the posting of a bond or other demonstration of financial
        responsibility as a condition of approval with regard to compliance
        with any one or all terms and conditions of approval.  A local
        government may include compliance reporting requirements in any permit
        authorizing development under this chapter.  Submittal of a report that
        makes false claims regarding the compliance of the project with permit
        requirements may be considered grounds for revocation of the permit and
        may be considered a separate violation of chapter 90.58 RCW.
             Sec. 705.  RCW 90.03.600 and 1995 c 403 s 635 are each amended to
        read as follows:
             {+ (1) For the purpose of this section, the "unauthorized use of
        water" means the use, storage, diversion, or withdrawal of any water
        prior to the issuance of a permit when one is required; the use of
        water in a manner beyond the legal entitlement of the water right
        claimant or holder of a water appropriation permit or certificate; or
        the willful waste of water.
             (2) +} Except as provided in RCW 43.05.060 through 43.05.080 and
        43.05.150, the power is granted to the department (({- of ecology -}))
        to levy civil penalties (({- of up to one hundred dollars per day -}))
        for violation of any of the provisions of this chapter and chapters
        43.83B, 90.22, (({- and -})) 90.44{+ , 90.54, and 90.66 +} RCW, and
        rules, permits, and similar documents and regulatory orders of the
        department of ecology adopted or issued pursuant to such chapters.  {+
        Each and every violation is a separate and distinct offense, and in
        case of a continuing violation, every day's continuance shall be deemed
        to be a separate and distinct violation.  Every act of commission or
        omission that results in, aids, or abets in the violation shall be
        considered a violation under the provisions of this section and subject
        to the penalty as provided for in this section.
             (3) There are three categories of violations:
             (a) A minor violation is a violation that does not seriously
        threaten public health, safety, and the environment.  Minor violations
        include, but are not limited to, paperwork violations such as failure
        to provide metering records or other required water use records uponrequest.
             (b) A serious violation is a violation that poses a critical or
        serious threat to public health, safety, and the environment.  Serious
        violations include, but are not limited to, unauthorized use of water,
        construction of any controlling works, ditch, canal, or well prior to
        obtaining a required water right permit, failure to comply with the
        instream flow or other provision of a permit or certificate, waste of
        water, failure to install a metering or measuring device as required,
        failure to comply with a previously issued order, or repeated minorviolations.
             (c) A major violation is the continued unauthorized use of water
        after prior written notice from the department to cease.
             (4) The penalty for a minor violation is not less than one hundred
        dollars and not more than one thousand dollars per day.  The penalty
        for a serious violation is not less than one thousand dollars and not
        more than ten thousand dollars per day.  The penalty for a major
        violation is not less than ten thousand dollars and not more than
        twenty-five thousand dollars per day.
             (5) In determining the appropriate penalty under subsection (3) of
        this section, the department shall consider whether the person:
             (a) Has demonstrated a general disregard for public health and
        safety through the number and magnitude of the violations;
             (b) Has demonstrated a disregard for the water resource laws,
        rules, or permits in repeated or continuous violations; or
             (c) Knew or reasonably should have known of circumstances that
        resulted in the violation.
             (6) Penalties provided for in this section shall be imposed under
        RCW 43.21B.300. +}  The procedures of RCW 90.48.144 shall be applicable
        to all phases of the levying of a penalty as well as review and appeal
        of the same.
             {+ (7) Moneys collected under this section shall be deposited in
        the stream flow restoration account created in section 1005 of thisact. +}
             Sec. 706.  RCW 43.21B.300 and 1993 c 387 s 23 are each amended to
        read as follows:
             (1) Any civil penalty provided in RCW 18.104.155, 70.94.431,
        70.105.080, 70.107.050, 88.46.090, 90.03.600, 90.48.144, 90.56.310, and
        90.56.330 shall be imposed by a notice in writing, either by certified
        mail with return receipt requested or by personal service, to the
        person incurring the penalty from the department, the administrator of
        the (({- office of marine safety -})) {+ integrated oil spill
        prevention and response program +}, or the local air authority,
        describing the violation with reasonable particularity.  Within fifteen
        days after the notice is received, the person incurring the penalty may
        apply in writing to the department, the administrator, or the authority
        for the remission or mitigation of the penalty.  Upon receipt of the
        application, the department, the administrator, or authority may remit
        or mitigate the penalty upon whatever terms the department, the
        administrator, or the authority in its discretion deems proper.  The
        department or the authority may ascertain the facts regarding all such
        applications in such reasonable manner and under such rules as it may
        deem proper and shall remit or mitigate the penalty only upon a
        demonstration of extraordinary circumstances such as the presence of
        information or factors not considered in setting the original penalty.
             (2) Any penalty imposed under this section may be appealed to the
        pollution control hearings board in accordance with this chapter if the
        appeal is filed with the hearings board and served on the department,
        the administrator, or authority thirty days after receipt by the person
        penalized of the notice imposing the penalty or thirty days after
        receipt of the notice of disposition of the application for relief frompenalty.
             (3) A penalty shall become due and payable on the later of:
             (a) Thirty days after receipt of the notice imposing the penalty;
             (b) Thirty days after receipt of the notice of disposition on
        application for relief from penalty, if such an application is made; or
             (c) Thirty days after receipt of the notice of decision of the
        hearings board if the penalty is appealed.
             (4) If the amount of any penalty is not paid to the department or
        the administrator within thirty days after it becomes due and payable,
        the attorney general, upon request of the department or the
        administrator, shall bring an action in the name of the state of
        Washington in the superior court of Thurston county, or of any county
        in which the violator does business, to recover the penalty.  If the
        amount of the penalty is not paid to the authority within thirty days
        after it becomes due and payable, the authority may bring an action to
        recover the penalty in the superior court of the county of the
        authority's main office or of any county in which the violator does
        business.  In these actions, the procedures and rules of evidence shall
        be the same as in an ordinary civil action.
             (5) All penalties recovered shall be paid into the state treasury
        and credited to the general fund except those penalties imposed
        pursuant to RCW 18.104.155, which shall be credited to the reclamation
        account as provided in RCW 18.104.155(7), RCW 70.94.431, the
        disposition of which shall be governed by that provision, RCW
        70.105.080, which shall be credited to the hazardous waste control and
        elimination account, created by RCW 70.105.180, (({- and -})) RCW
        90.56.330, which shall be credited to the coastal protection fund
        created by RCW 90.48.390{+ , and RCW 90.03.600, which shall be credited
        to the stream flow restoration account, created by section 1005 of thisact +}.
             Sec. 707.  RCW 90.08.040 and 1977 c 22 s 1 are each amended to read
        as follows:     Where water rights of a stream {+ or ground water source +} have
        been adjudicated a stream patrolman shall be appointed by the director
        of the department of ecology {+ (1) +} upon application of water users
        having adjudicated water rights in each particular water resource
        making a reasonable showing of the necessity therefor(({- , which
        application shall have been approved by the district water master if
        one has been appointed, -})){+ ; or (2) upon determination by the
        department +} at such time, for such (({- stream -})) {+ water source
        +}, and for such periods of service as local conditions may indicate to
        be necessary to provide the most practical supervision and to secure to
        water users and owners the best protection in their rights.  {+ Subject
        to the approval of the legislative body of the affected county or
        counties, the department may appoint a stream patrolman for any area,
        regardless of whether it has been adjudicated, if required to assure
        proper supervision and protection of water rights, enforcement of
        minimum or base flows or other rules or regulations, or in response to
        a general decline in ground water levels. +}
             The stream patrolman shall have the same powers as a water master
        appointed under RCW 90.03.060, but (({- his -})) {+ the patrolman's +}
        district shall be confined to the regulation of waters of a designated
        (({- stream or streams -})) {+ source or sources +}.  (({- Such -})) {+
        The +} patrolman shall be under the supervision of the director or (({-
         his -})) {+ the director's +} designated representative(({- .  He -}))
        {+ and +} shall also enforce such special rules and regulations as the
        director may prescribe from time to time.
             Sec. 708.  RCW 90.08.060 and 1977 c 22 s 3 are each amended to read
        as follows:     The salary of the stream patrolman shall be borne by the water
        users receiving the benefits and shall be paid to the county or
        counties in the following manner:
             The county or counties (({- may -})) {+ shall +} assess each water
        user for (({- his -})) {+ the users' +} proportionate share of the
        total stream patrolman expense in the same ratio that the amount of
        water diverted {+ or withdrawn +} by (({- him -})) {+ the user +} bears
        to the total amount diverted {+ or withdrawn +} from the (({- stream -
        })) {+ water source +} during each season, on an annual basis, to
        recover all such county expenses.  The stream patrolman shall keep an
        accurate record of the amount of water diverted by each water user
        coming under (({- his -})) {+ the patrolman's +} supervision.  On the
        first of each month the stream patrolman shall present (({- his -})) {+
        the +} record of water diversion {+ and withdrawal +} to the county or
        counties for the preceding month.  Where the water users are organized
        into an irrigation district or water users' association, such
        organization may enter into an agreement with the county or counties
        for direct payment to the stream patrolman in order to minimize
        administrative costs.
             Sec. 709.  RCW 90.03.070 and 1987 c 109 s 70 are each amended to
        read as follows:     It shall be the duty of the water master, acting under the
        direction of the department, to divide in whole or in part, the water
        supply of (({- his -})) {+ the water master's designated +} district
        among the several water conduits and reservoirs using (({- said -})) {+
        the +} supply, according to the right and priority of each,
        respectively.  (({- He -})) {+ The water master +} shall divide,
        regulate{+ , +} and control the use of water within (({- his -})) {+
        the +} district by such regulation of headgates, conduits{+ , +} and
        reservoirs as shall be necessary to prevent the use of water in excess
        of the amount to which the owner of the right is lawfully entitled.  {+
        The regulation shall be carried out in accordance with section 710 of
        this act.  The water master shall also enforce instream flow levels
        established by rule and instream flow conditions imposed on water right
        permits and certificates. +}  Whenever, in the pursuance of his {+ or
        her +} duties, the water master regulates a headgate of a water conduit
        or the controlling works of a reservoir, he {+ or she +} shall attach
        to such headgate or controlling works a written notice, properly dated
        and signed, stating that such headgate or controlling works has been
        properly regulated and is wholly under his {+ or her +} control and
        such notice shall be a legal notice to all parties.  In addition to
        dividing the available waters and supervising the stream patrolmen in
        (({- his -})) {+ the +} district, (({- he -})) {+ the water master +}
        shall enforce such rules and regulations as the department shall from
        time to time prescribe.
             The county or counties in which water master districts are created
        shall deputize the water masters appointed hereunder, and may without
        charge provide to each water master suitable office space, supplies,
        equipment and clerical assistance as are necessary to the water master
        in the performance of his {+ or her +} duties.
             {+ NEW SECTION. +}  Sec.   A new section is added to chapter
        43.27A RCW to read as follows:
             The purpose of this section is to set forth the powers of the
        department to regulate the withdrawal or diversion of public waters and
        water or water rights related thereto, including regulation based on
        dates of priority or other pertinent factors.  Regulatory actions taken
        under this section shall be based on examination and determination by
        the department or the court, as applicable, of the various water rights
        involved according to the department's records and other records and
        pertinent facts.  The powers set forth in this section may be exercised
        whether or not a general adjudication relating to the water rights
        involved has been conducted.
             (1) In a regulatory situation (a) where a water right or all water
        rights proposed for regulation by the department, as well as any right
        or rights of a senior priority that the proposed regulation is designed
        to protect, is or are embodied in a certificate or certificates issued
        under RCW 90.03.240, 90.03.330, 90.38.040, 90.42.040, or 90.44.060 or
        a permit or permits issued under RCW 90.03.290 or 90.44.060; (b) where
        a flow or level has been established by rule under chapter 90.22 or
        90.54 RCW; or (c) where it appears to the department that public waters
        are being withdrawn without any right or other appropriate authority
        whatsoever, the department in its discretion is authorized to regulate
        the right or rights under either RCW 43.27A.190 or subsection (2) of
        this section.
             (2) In a regulatory situation where one or more of the water rights
        proposed for regulation by the department, as well as any right or
        rights of a senior priority that the proposed regulation is designed to
        protect, is not or are not embodied in a permit or certificate as
        described in subsection (1) of this section, the department, in its
        sole and exclusive power to regulate, is authorized to bring an
        appropriate action at law or in equity, including seeking injunctive
        relief, as it may deem necessary.  Where actions are brought in a state
        court, the actions shall be initiated in the superior court of the
        county where the point or points of diversion of the water right or
        rights proposed for regulation are located.  If the points of diversion
        are located in more than one county, the department may bring the
        action in a county where a point of diversion is located.
        Notwithstanding the general adjudication procedures in RCW 90.03.110
        through 90.03.245 and 90.44.220, the superior court shall make findings
        and a determination of the validity and priority of the water rights
        held by the parties to resolve the regulatory situation.  The superior
        court shall issue any necessary orders to implement its findings and
        determination, including injunctive relief, that it determines is
        necessary to regulate among the water rights.
             (3) Nothing in this section authorizes the department or the
        superior court to accomplish a general adjudication of water rights
        proceeding or the substantial equivalent of a general adjudication of
        water rights.  The exclusive procedure for accomplishing a general
        adjudication of water rights is under RCW 90.03.110 through 90.03.245
        or 90.44.220.     (4) Nothing in this section shall amend, revise, or repeal RCW
        90.14.130 or 90.14.200.
             (5) This section does not in any way modify regulatory powers
        previously placed with the department except as provided in subsections
        (1) and (2) of this section.                                      PART VIII
                                              LAND USE
             {+ NEW SECTION. +}  Sec. 801.  A new section is added to chapter
        36.70A RCW to read as follows:
             In addition to the elements required by RCW 36.70A.070, a county or
        city may include in its comprehensive plan an economic developmentelement that:
             (1) Promotes economic opportunity for all citizens of the county or
        city, especially for unemployed and disadvantaged persons and, within
        the capacities of the natural resources and consistent with other
        requirements of this chapter, encourages appropriate types of growth in
        areas of the city or county experiencing insufficient economic growth;
             (2) Is within the capacities of the county's or city's natural
        resources, as determined in the land use element, including recognition
        of the special treatment of shorelines of the state and water-dependent
        uses, and its public facilities and public services, as determined in
        its capital facilities and utilities elements;
             (3) Promotes the processing of permits in a timely and fair manner;
             (4) To the extent possible, is coordinated with economic
        development plans and strategies of economic development councils,
        economic development districts, port districts, and other public and
        private organizations engaged in economic development planning;
             (5) Encourages the reuse of underutilized or abandoned property;and
             (6) Provides for monitoring and adaptation of the economic
        development element based on successes and failures.
             {+ NEW SECTION. +}  Sec. 802.  A new section is added to chapter
        36.70A RCW to read as follows:
             (1) In addition to the elements required by RCW 36.70A.070, a
        county or city may include in its comprehensive plan an environmental
        element that identifies and evaluates the environmental impacts and
        tradeoffs that can reasonably be foreseen by adoption and
        implementation of the plan.
             (2) The environmental element shall address system and area-wide
        improvements and environmental elements and cumulative impacts,
        including critical areas and shorelines of the state, endangered or
        threatened species habitats, watersheds, water quality, ground water
        movement, air quality, historic and cultural resources, utilities,
        transportation, and public services.
             (3) Environmental analysis of plan alternatives shall be conducted
        in the draft plan.  The draft plan should present reasonable
        alternatives to allow comparison of the outcomes and tradeoffs in terms
        of impacts on the environment, levels of service, costs of
        implementation, and rates of growth.  The final plan should summarize
        the outcomes and tradeoffs that were made and found acceptable in
        selecting the final plan.
             (4) The environmental element, at a minimum, shall address the
        following issues for each other element of the plan:
             (a) Land use element.  The analysis of the land use element should
        clearly analyze the designations of urban growth areas and boundaries,
        both as to location and size, and the tradeoffs inherent in each
        alternative and the impacts of the preferred designation of urban
        growth areas and boundaries, as compared to alternates considered and
        the impacts of the planned growth with respect to infrastructure and
        capital facilities, public services, critical areas, shorelines of the
        state, air quality, water quality, and monitoring of development and
        density (land supply/use) to track the remaining land supply and
        capacity in urban growth areas.
             (b) Housing.  The analysis of this element should provide a
        description of the expected impacts of projected growth on the
        residential densities that may be required in existing residential
        areas, an analysis of the community's ability to provide for affordable
        housing needs, a program of ongoing review to monitor performance of
        plan implementation, and disclosure of the impacts on affordable
        housing that can reasonably be expected to result from the
        implementation of the other elements of the plan.
             (c) Capital facilities.  The analysis of this element should
        address the environmental costs of providing the established levels of
        services to serve projected development and growth, the consequences of
        projected growth and development on the established levels of service,
        capital facilities and improvements to existing capital facilities
        necessary to provide adequate public services to serve existing and
        projected growth and development, coordination and relationship of the
        capital facilities element with functional plans, such as storm water,
        flood plain management, service plans, comprehensive water plans,
        shoreline master programs, watershed management plans, options for
        conservation, reuse, recycling to reduce environmental and capital
        costs, and methods for ongoing monitoring of allocated and available
        capacity of capital facilities.
             (d) Transportation.  The analysis of this element should determine
        whether the plan encourages efficient multimodal transportation systems
        that are based on regional priorities, coordinated with county and city
        plans, and whether the jurisdiction can accommodate projected growth
        and development at established levels of service.  The analysis should
        provide:  (i) An analysis of the impacts of land use designations,
        population densities, and development of existing and projected growth
        and development on the existing transportation system; (ii) ten-year
        traffic forecasts based on land use decisions and projected rates of
        growth and development; (iii) an analysis of existing intergovernmental
        coordination and methods to maintain or enhance regionally coordinated
        levels of service; (iv) transportation demand management strategies and
        alternative transportation modes; and (v) a program to monitor actual
        use against projected use and capacity.
             (e) Utilities.  The analysis of this element should address the
        availability of service to existing and projected growth and
        development at established levels of service, the economic and
        environmental costs of providing services to existing and projected
        growth and development at established levels of service, conservation
        and other measures to reduce demand, and monitoring allocated and
        available capacity of utility systems.
             (f) Shorelines of the state.  The analysis of this element should
        determine whether the comprehensive plan recognizes and protects the
        state-wide long-term interest in shoreline management consistent with
        the policy and procedures of chapter 90.58 RCW.
             (g) Rural.  The analysis of the rural element should address land
        use designations, including population densities and intensity of
        development in the rural area and the tradeoffs made in terms of
        consequences to the size, location, and density of development in urban
        growth areas, impacts on affordable housing, impacts on local
        government's ability to provide services, including transportation and
        utilities, impacts of development on viability of long-term
        agricultural and forest resource lands, impacts of development on air
        quality, water quality, and critical areas, and impacts of residential
        development on ability to fight forest fires on lands adjacent toresidences.
             (5) The environmental element may be prepared as a separate
        document, as a separate element in the plan, or integrated and
        presented as a part of each other element of the plan.
             {+ NEW SECTION. +}  Sec. 803.  A new section is added to chapter
        43.21C RCW to read as follows:
             A county or city that prepares an environmental element as provided
        by section 802 of this act shall not be required to prepare the
        detailed statement required by RCW 43.21C.031 on the comprehensiveplan.
                                               PART IX
                                        SHORELINE MANAGEMENT
             Sec. 901.  RCW 90.58.080 and 1995 c 347 s 305 are each amended to
        read as follows:
             {+ (1) +} Local governments shall develop or amend(({- , within
        twenty-four months after the adoption of guidelines as provided in RCW
        90.58.060, -})) a master program for regulation of uses of the
        shorelines of the state consistent with the required elements of the
        guidelines adopted by the department.  {+ For jurisdictions that are
        required to or choose to plan pursuant to RCW 36.70A.040, the master
        program shall be reviewed for compliance with the guidelines and
        adopted or amended as necessary by September 1, 2002, and at least once
        every five years thereafter.  For all other jurisdictions, except as
        provided in subsection (2) of this section, the master program shall be
        adopted or amended within twenty-four months after the adoption of
        guidelines as provided in RCW 90.58.060.
             (2) The department may adopt a schedule for development or amending
        of master programs by jurisdictions not planning pursuant to RCW
        36.70A.040 that allows for a development or amendment period of more
        than twenty-four months, but not more than sixty months.  The schedule
        shall be adopted as a part of the guidelines.  The schedule may
        identify groups or classes of local government and establish different
        schedules for such groups or classes.  Prior to adoption of a schedule,
        each local government shall be notified in writing of the time
        requirements applicable to it.  The department shall give full
        consideration to comments made by local government on the proposed
        schedule based on the criteria. +}                                       PART X
                                               FUNDING
             Sec. 1001.  RCW 43.99E.015 and 1990 1st ex.s. c 15 s 8 are each
        amended to read as follows:
             For the purpose of providing funds for the planning, acquisition,
        construction, and improvement of water supply facilities within the
        state {+ and water conservation within those facilities +}, the state
        finance committee is authorized to issue general obligation bonds of
        the state of Washington in the sum of sixty-five million dollars, or so
        much thereof as may be required, to finance the improvements defined in
        this chapter and all costs incidental thereto.  These bonds shall be
        paid and discharged within thirty years of the date of issuance in
        accordance with Article VIII, section 1 of the state Constitution.  No
        bonds authorized by this chapter may be offered for sale without prior
        legislative appropriation of the proceeds of the bonds to be sold.
             Sec. 1002.  RCW 43.99E.030 and 1996 c 320 s 21 are each amended to
        read as follows:
             As used in this chapter, the term "water supply facilities" means
        domestic, municipal, industrial, and agricultural (and any associated
        fishery, recreational, or other beneficial use) water supply or
        distribution systems including but not limited to all equipment,
        utilities, structures, real property, and interests in and improvements
        on real property necessary for or incidental to the acquisition,
        construction, installation, or use of any such water supply or
        distribution system.
             As used in this chapter, the term "public body" means the state of
        Washington or any agency, political subdivision, taxing district, {+
        local improvement district, +} or municipal or public corporation
        thereof; a board of joint control; an agency of the federal government;
        and those Indian tribes which may constitutionally receive grants or
        loans from the state of Washington.
             Sec. 1003.  RCW 43.83B.300 and 1988 c 47 s 1, 1988 c 46 s 2, and
        1988 c 45 s 1 are each reenacted and amended to read as follows:
             The legislature finds that the fundamentals of water resource
        policy in this state must be reviewed by the legislature to ensure that
        the water resources of the state are protected and fully utilized for
        the greatest benefit to the people of the state of Washington.  The
        legislature further finds that it is necessary to provide the
        department of ecology with emergency powers to authorize withdrawals of
        public surface and ground waters, including dead storage within
        reservoirs, on a temporary basis, and construction of facilities in
        relation thereto, in order to alleviate emergency water supply
        conditions arising from the drought forecast for the state of
        Washington during 1977 and during 1987 through 1989.
             The legislature further finds that there is a continuing water
        supply shortage in many areas of the state and that there is an urgent
        need to assure the survival of irrigated crops and of the state'sfisheries.
             The legislature further finds that in addition to water storage
        facilities or other augmentation programs, improved efficiency of water
        use could provide an important new supply of water in many parts of the
        state with which to meet future water needs and that improved
        efficiency of water use should receive greater emphasis in the
        management of the state's water resources.
             {+ The legislature further finds that it is in the interest of
        Washington state citizens to be better prepared for future droughts.
        Investments in water conservation and efficiency projects can result in
        conserved water that can be used to alleviate drought conditions and to
        conserve instream flows to benefit threatened and endangered fish
        species.  Other benefits include improvements in water quality, public
        health, recreation, and habitat. +}
             In order to study the fundamentals of water resource policy of the
        state and to provide needed moneys for the planning, acquisition,
        construction, and improvement of water supply facilities{+ , drought
        preparedness, +} and for other appropriate measures to assure the
        survival of irrigated crops and/or the state's fisheries to alleviate
        emergency water supply conditions arising from droughts occurring from
        time to time in the state of Washington, and to carry out a
        comprehensive water use efficiency study for the state of Washington,
        the state finance committee is authorized to issue general obligation
        bonds of the state of Washington in the sum of eighteen million
        dollars, or so much thereof as may be required to finance such
        projects, and all costs incidental thereto.  No bonds authorized by
        this section and RCW 43.83B.360 through 43.83B.375 shall be offered for
        sale without prior legislative appropriation, and these bonds shall be
        paid and discharged within thirty years of the date of issuance in
        accordance with Article VIII, section 1 of the state Constitution.
             {+ NEW SECTION. +}  Sec. 1004.  A new section is added to chapter
        43.83B RCW to read as follows:
             The state drought preparedness account is created in the state
        treasury.  Six million eight hundred thousand dollars is transferred
        from the state emergency water projects revolving account to establish
        the drought preparedness account.  Five hundred thousand dollars will
        remain in the state emergency water projects revolving account for its
        original purpose or purposes.  Moneys in the state drought preparedness
        account may be spent only after appropriation.  Expenditures from the
        state drought preparedness account may be used only for the purposes
        specified in section 104 of this act.
             {+ NEW SECTION. +}  Sec. 1005.  A new section is added to chapter
        90.42 RCW to read as follows:
             The state stream flow restoration account is created in the state
        treasury.  All receipts from payments made under sections 104, 302, and
        408 of this act, and penalties under RCW 43.21B.300 and 90.03.600 must
        be deposited into the account.  Expenditures from the account may be
        used only for the department of ecology to purchase or lease water
        rights for placement in the trust water rights program created in this
        chapter and chapter 90.38 RCW.  Moneys in the stream flow restoration
        account may be spent only after appropriation.
             {+ NEW SECTION. +}  Sec. 1006.  There is hereby appropriated to the
        state and local improvements revolving account--water supply
        facilities, established in RCW 43.99E.020, for the biennium ending June
        30, 2001, the sum of forty-three million dollars from funds
        appropriated by the United States to the state of Washington to be
        divided into two shares as follows:
             (1) Twenty-one million five hundred thousand dollars, or as much
        thereof as may be necessary, shall be expended by the department of
        ecology for agricultural water supply conservation and efficiency
        improvement projects.  These funds shall be provided to qualifying
        public bodies as grants and loans.
             (2) Twenty-one million five hundred thousand dollars, or as much
        thereof as may be necessary, shall be expended by the department of
        health for domestic and municipal water supply conservation and
        efficiency improvement projects.  These funds shall be provided to
        qualifying public bodies as grants and loans.
             {+ NEW SECTION. +}  Sec. 1007.  A new section is added to chapter
        90.42 RCW to read as follows:
             Conserved water resulting from projects funded under section 1006
        of this act shall be allocated in accordance with section 302 of thisact.
             {+ NEW SECTION. +}  Sec. 1008.  Part headings used in this act are
        not any part of the law.                                     --- END ---