AB104 - Revises provisions relating to water. (BDR 48-383)

- 83rd Session (2025) Assembly Bill No. 104–Committee on Natural Resources CHAPTER.......... AN ACT relating to water; requiring the State Engineer to retire certain groundwater rights; revising provisions relating to temporary permits to appropriate groundwater; creating the Nevada Conservation and Recreation Program; creating the Account for Retiring Water Rights; establishing the Nevada Voluntary Water Rights Retirement Program; requiring the Director of the State Department of Conservation and Natural Resources to purchase certain water rights with money from the Account for the purpose of retiring those water rights; revising provisions relating to the program to provide grants of money to pay certain costs related to water conservation and capital improvements to water systems; revising provisions relating to a program to pay the costs for property owners to connect to a community sewerage disposal system under certain circumstances; revising certain legislative declarations relating to clean water and water pollution; authorizing the State Environmental Commission to establish a water quality standard variance; revising provisions relating to an irrigation water efficiency monitoring program established by the Southern Nevada Water Authority; revising provisions relating to membership on the Advisory Committee for the Management of Groundwater in the Las Vegas Valley Groundwater Basin; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires the State Department of Conservation and Natural Resources to make grants to state agencies, local governments, water conservancy districts, conservation districts and certain nonprofit organizations to protect, preserve and obtain the benefits of the property and natural and cultural resources of this State and requires the Director to adopt regulations to make such grants. (Section 2 of Assembly Bill No. 84, chapter 480, Statutes of Nevada 2019, at page 2861) Existing regulations establish the Nevada Conservation and Recreation Program to make such grants. (LCB File No. R025-22) Section 8 of this bill creates the Program in statute. Section 8 further provides that the Program consists of a grant program to make such grants and the Nevada Voluntary Water Rights Retirement Program. Section 14 of this bill provides that the Program is within the Department. Section 13 of this bill applies the definitions in existing law relating to the Department to the provisions of sections 8-10 of this bill. Under existing law, any person who wishes to appropriate public waters, or to change the place of diversion, manner of use or place of use of water already appropriated, must apply to the State Engineer for a permit to do so. (NRS 533.325) Existing law further provides that all underground waters within the boundaries of the State are subject to appropriation for beneficial use only under the laws of this State relating to the appropriation and use of water. (NRS 534.020) Section 9 creates the Account for Retiring Water Rights, to be administered by the Director – 2 – - 83rd Session (2025) of the State Department of Conservation and Natural Resources, and requires that the money in the Account only be used for the purchase of decreed or certificated groundwater rights for certain purposes. Section 10 establishes the Nevada Voluntary Water Rights Retirement Program in the Nevada Conservation and Recreation Program, to be administered by the Director, and establishes requirements for: (1) the purchase and retirement of decreed or certificated groundwater rights; and (2) the acceptance of donations of groundwater rights. Section 10 also prohibits the Director from accepting donations and applications for the purchase and retirement of such groundwater rights after June 30, 2035. Section 21 of this bill makes conforming changes to reflect that the Director may not accept applications or donations after that date. Section 4 of this bill: (1) requires the State Engineer to retire all decreed or certificated water rights purchased by or donated to the Nevada Voluntary Water Rights Retirement Program; and (2) prohibits the State Engineer from retiring any groundwater rights from the Program unless the purchase or donation of the groundwater right was approved by the Director on or before June 30, 2035. Sections 1-3 of this bill prohibit the appropriation of water for which the rights have been retired pursuant to the Nevada Voluntary Water Rights Retirement Program. Section 25 of this bill provides for the provisions relating to the Account set forth in section 9 to expire on June 30, 2035. Section 21 of this bill makes a conforming change to reflect the expiration of these provisions. Under existing law, the State Engineer may issue temporary permits to appropriate groundwater in certain designated areas which may be revoked under certain circumstances. In areas where these temporary permits have been issued, the State Engineer is required to prohibit the drilling of wells for domestic use if water can be furnished by a public entity presently engaged in furnishing water to the inhabitants of the area. (NRS 534.120) Sections 5, 6, 16 and 22 of this bill revise references to these temporary permits to revocable permits. Section 23 of this bill deems any such existing and valid temporary permit issued by the State Engineer pursuant to existing law before July 1, 2025, to be a revocable permit. Section 5 also requires the State Engineer to prohibit the drilling of wells for domestic use if a property is within 1,250 feet of a service line of a public entity presently engaged in furnishing water to the inhabitants of the area. Existing law establishes a program to provide grants of money to purveyors of water and eligible recipients to pay for certain costs related to water conservation and capital improvements to water systems. Under this program, eligible recipients may receive grants of money to pay the cost of improvements to conserve water. (NRS 349.981) Section 16 includes in the types of improvements for which an eligible recipient could receive a grant: (1) the removal and replacement of grass with water-efficient landscaping, under certain circumstances; and (2) the permanent retirement of groundwater rights for certain purposes. Existing law requires certain recipients of a grant of money from this program to provide an amount of money determined by the Board for Financing Water Projects that will be used for the same purpose as the grant and which must be based upon the average household income of the customers of the recipient. (NRS 349.983) Section 17 of this bill instead requires the amount of money provided by a recipient to be based upon the median household income of the customers of the recipient. Existing law authorizes a district board of health to create a voluntary financial assistance program to pay 100 percent of the costs for property owners with an existing septic system whose property is served by a municipal water system to connect to the community sewerage disposal system. (NRS 439.3672) Section 18 – 3 – - 83rd Session (2025) of this bill establishes certain requirements for a property owner to be eligible to receive financial assistance from this program. Existing law sets forth a legislative declaration relating to the right of the people of this State to clean water and certain policies of this State related to this right to clean water. (NRS 445A.305) Section 19 of this bill sets forth the policy of this State to encourage and promote water reuse in an appropriate manner that is consistent with public health. Existing state law requires the State Environmental Commission to establish water quality standards at a level designed to protect and ensure a continuation of the designated beneficial use or uses for the stream segment or other body of surface water that have been determined applicable by the Commission. (NRS 445A.520) Existing federal law authorizes a state to establish a variance in the water quality standard from the water quality standard determined to protect and ensure a continuation of the designated beneficial use or uses if the state determines that compliance with this standard is not feasible for certain reasons. (40 C.F.R. § 131.14) Section 20 of this bill authorizes the Commission to establish a water quality standard variance in accordance with federal law. The Conservation of Colorado River Water Act establishes certain provisions relating to conserving the waters of the Colorado River, including requiring certain parcels of property which use such waters to participate in an irrigation water efficiency monitoring program. (Chapter 364, Statutes of Nevada 2021, at page 2179) The Act requires the Board of Directors of the Southern Nevada Water Authority to: (1) establish deadlines for an owner of such a parcel of property to begin participating in the program; and (2) notify the owner that he or she is required to participate by not later than January 1, 2025. (Section 30 of chapter 210, Statutes of Nevada 2023, at page 1283) Section 21.5 of this bill instead requires the Board of Directors to notify the owner not less than 1 year before the program is established. Existing law authorizes the Southern Nevada Water Authority to create an Advisory Committee for the Management of Groundwater in the Las Vegas Valley Groundwater Basin. If a member appointed to the Committee resigns or is unable to serve, the Board of Directors is required to appoint a person to fill the vacancy not later than 90 days after the vacancy occurs. (Section 8 of chapter 572, Statutes of Nevada 1997, as last amended by chapter 517, Statutes of Nevada 2017, at page 3507) Section 21.7 of this bill removes the requirement for the Board of Directors to fill the vacancy not later than 90 days after the vacancy occurs. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 533.030 is hereby amended to read as follows: 533.030 1. Subject to existing rights, and except as otherwise provided in this section and NRS 533.0241, 533.027 and 533.028, and section 4 of this act, all water may be appropriated for beneficial use as provided in this chapter and not otherwise. 2. The use of water, from any stream system as provided in this chapter and from underground water as provided in NRS 534.080, for any recreational purpose, or the use of water from the Muddy – 4 – - 83rd Session (2025) River or the Virgin River to create any developed shortage supply or intentionally created surplus, is hereby declared to be a beneficial use. As used in this subsection: (a) “Developed shortage supply” has the meaning ascribed to it in Volume 73 of the Federal Register at page 19884, April 11, 2008, and any subsequent amendment thereto. (b) “Intentionally created surplus” has the meaning ascribed to it in Volume 73 of the Federal Register at page 19884, April 11, 2008, and any subsequent amendment thereto. 3. Except as otherwise provided in subsection 4, in any county whose population is 700,000 or more: (a) The board of county commissioners may prohibit or restrict by ordinance the use of water and effluent for recreational purposes in any artificially created lake or stream located within the unincorporated areas of the county. (b) The governing body of a city may prohibit or restrict by ordinance the use of water and effluent for recreational purposes in any artificially created lake or stream located within the boundaries of the city. 4. In any county whose population is 700,000 or more, the provisions of subsection 1 and of any ordinance adopted pursuant to subsection 3 do not apply to: (a) Water stored in an artificially created reservoir for use in flood control, in meeting peak water demands or for purposes relating to the treatment of sewage; (b) Water used in a mining reclamation project; or (c) A body of water located in a recreational facility that is open to the public and owned or operated by the United States or the State of Nevada. Sec. 2. NRS 533.370 is hereby amended to read as follows: 533.370 1. Except as otherwise provided in this section and NRS 533.0241, 533.345, 533.371, 533.372 and 533.503, and section 4 of this act, the State Engineer shall approve an application submitted in proper form which contemplates the application of water to beneficial use if: (a) The application is accompanied by the prescribed fees; (b) The proposed use or change, if within an irrigation district, does not adversely affect the cost of water for other holders of water rights in the district or lessen the efficiency of the district in its delivery or use of water; and (c) The applicant provides proof satisfactory to the State Engineer of the applicant’s: – 5 – - 83rd Session (2025) (1) Intention in good faith to construct any work necessary to apply the water to the intended beneficial use with reasonable diligence; and (2) Financial ability and reasonable expectation actually to construct the work and apply the water to the intended beneficial use with reasonable diligence. 2. Except as otherwise provided in subsection 10, [where there] the State Engineer shall reject an application and refuse to issue the requested permit if: (a) There is no unappropriated water in the proposed source of supply [, where the] ; (b) The groundwater that has not been committed for use has been reserved pursuant to NRS 533.0241 ; (c) The application requests a change to or reinstatement of groundwater rights that have been retired pursuant to section 4 of this act; or [where its] (d) The proposed use or change conflicts with existing rights or with protectable interests in existing domestic wells as set forth in NRS 533.024 [,] or threatens to prove detrimental to the public interest . [, the State Engineer shall reject the application and refuse to issue the requested permit.]  If a previous application for a similar use of water within the same basin has been rejected on those grounds, the new application may be denied without publication. 3. In addition to the criteria set forth in subsections 1 and 2, in determining whether an application for an interbasin transfer of groundwater must be rejected pursuant to this section, the State Engineer shall consider: (a) Whether the applicant has justified the need to import the water from another basin; (b) If the State Engineer determines that a plan for conservation [Text truncated for display. Full text available on LegiScan.]