AB265 - Revises provisions relating to water. (BDR 48-887)

A.B. 265 - *AB265* ASSEMBLY BILL NO. 265–ASSEMBLYMEMBERS GURR, DELONG; AND KASAMA FEBRUARY 20, 2025 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions relating to water. (BDR 48-887) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to water; requiring the Division of Water Resources of the State Department of Conservation and Water Resources to notify an applicant if a committee is assigned to review certain applications for a permit; providing certain deadlines for the State Engineer to approve or deny certain applications and extensions, review reports of conveyance and issue certain permits; requiring the State Engineer to provide certain notices relating to the cancellation of a permit; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Under existing law, the State Engineer is charged with managing the 1 appropriation of water in this State. (Title 48 of NRS) Section 1 of this bill requires 2 the Division of Water Resources of the State Department of Conservation and 3 Natural Resources to notify an applicant for a permit to appropriate water or change 4 the place of diversion, manner of use or place of use if the State Engineer assigns a 5 committee within the Division to review the application to appropriate water. 6 Section 1 further requires the committee to complete its review of an application 7 within certain periods of time after the final date for filing a protest. 8 Existing law authorizes the State Engineer, upon application, to grant an 9 extension time for an applicant for a permit to appropriate water to: (1) file certain 10 instruments required to be filed with an application to appropriate water; (2) 11 complete construction of the works of diversion or apply water to a beneficial use; 12 (3) file proof of the completion of the works of diversion; and (4) file proof of 13 application of water to beneficial use. (NRS 533.355, 533.380, 533.390, 533.410) 14 Sections 2, 4, 6 and 8 of this bill require the State Engineer to approve or deny 15 such an extension not later than 30 days after the date the application for an 16 extension is received by the State Engineer. 17 – 2 – - *AB265* Existing law requires, with certain exceptions, the State Engineer to approve or 18 reject each application to appropriate water within 2 years after the final date for 19 filing a protest. (NRS 533.370) Section 3 of this bill requires the State Engineer to 20 approve or reject an application to appropriate water that results in a 21 nonconsumptive use not later than 30 days after the final date for filing a protest if 22 no protests were filed during the period for filing a protest. 23 Section 9 of this bill requires the State Engineer to issue a permit not later than 24 14 days after receiving the applicable fees for the issuance and recording of the 25 permit. 26 Existing law requires a person who is conveyed an application or permit to 27 appropriate water, a certificate of appropriation, an adjudicated or unadjudicated 28 water right or an application or permit to change the place of diversion, manner of 29 use or place of use of water to file a report of conveyance with the State Engineer. 30 (NRS 533.384) Existing law also requires the State Engineer to review the report of 31 conveyance and make certain determinations to confirm or reject the report of 32 conveyance. (NRS 533.386) Section 5 of this bill requires that the review of a 33 report of conveyance be completed not later than 14 days after the report of 34 conveyance is filed with the State Engineer. 35 Existing law requires: (1) a person who holds a permit to appropriate water or 36 change the place of diversion or manner of use to file proof of completion of the 37 work and proof of application of water to beneficial use, which consists of a 38 statement describing the works actually constructed, a statement that includes 39 certain information relating to the application of water to beneficial use and an 40 accompanying map under certain circumstances by the date set for completion of 41 the work and the date set for application of water to beneficial use, respectively; 42 and (2) the State Engineer to hold the permit for cancellation if these proofs are not 43 filed by these dates. (NRS 533.390, 533.400, 533.405, 533.410) Sections 6 and 7 44 of this bill require the State Engineer to notify the holder of a permit not later than 45 30 days before the date set for the completion of such work and the date set for the 46 application of water to beneficial use that the permit will be held for cancellation if 47 the proof of completion of the work or proof of application of water to beneficial 48 use is not filed by such date. 49 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 533 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. If the State Engineer assigns a committee within the 3 Division of Water Resources of the State Department of 4 Conservation and Natural Resources to review an application for 5 a permit to appropriate water or to change the place of diversion, 6 manner of use or place of use, the Division shall notify the 7 applicant of the assignment and the date on which the application 8 will be reviewed by the committee. 9 2. The review of an application pursuant to subsection 1 must 10 be completed not later than: 11 (a) Thirty days after the final date for filing a protest pursuant 12 to NRS 533.365, if no protests were filed during the period for 13 filing a protest; or 14 – 3 – - *AB265* (b) Sixty days after the final date for filing a protest pursuant 1 to NRS 533.365, if a protest was filed during the period for filing a 2 protest. 3 Sec. 2. NRS 533.355 is hereby amended to read as follows: 4 533.355 1. Upon receipt of an application, the State Engineer 5 shall make an endorsement thereon of the date of its receipt and 6 shall keep a record of the date. The State Engineer shall provide the 7 application forms at no cost to the applicants. 8 2. Except as provided in subsection 3, if upon examination, the 9 application is found to be defective, it must be returned for 10 correction or completion with advice of the reasons therefor, and the 11 date of the return must be endorsed upon the application and a 12 record made of it in the Office of the State Engineer. An application 13 does not lose its priority of filing on account of defects if the 14 application, properly corrected and accompanied by such maps and 15 drawings as may be required, is filed in the Office of the State 16 Engineer within 60 days after the date of the return to applicant. 17 Any application returned for correction or completion, not refiled in 18 proper form within the 60 days, must be cancelled. For good cause 19 shown, upon application made prior to the expiration of the 60-day 20 period, the State Engineer may, in his or her discretion, grant an 21 extension of time not to exceed 60 days in which to file the 22 instruments. The State Engineer shall approve or deny an 23 application for an extension of time not later than 30 days after 24 the date the application is received by the State Engineer. 25 3. If it appears to the State Engineer that an application, which 26 contains information of sufficient accuracy to determine the manner 27 of use and the location from which the water is to be diverted, must 28 be rejected, the State Engineer may reject it without returning it for 29 correction. 30 4. All applications which comply with the provisions of this 31 chapter must be recorded in a suitable book kept for that purpose. 32 Sec. 3. NRS 533.370 is hereby amended to read as follows: 33 533.370 1. Except as otherwise provided in this section and 34 NRS 533.0241, 533.345, 533.371, 533.372 and 533.503, the State 35 Engineer shall approve an application submitted in proper form 36 which contemplates the application of water to beneficial use if: 37 (a) The application is accompanied by the prescribed fees; 38 (b) The proposed use or change, if within an irrigation district, 39 does not adversely affect the cost of water for other holders of water 40 rights in the district or lessen the efficiency of the district in its 41 delivery or use of water; and 42 (c) The applicant provides proof satisfactory to the State 43 Engineer of the applicant’s: 44 – 4 – - *AB265* (1) Intention in good faith to construct any work necessary to 1 apply the water to the intended beneficial use with reasonable 2 diligence; and 3 (2) Financial ability and reasonable expectation actually to 4 construct the work and apply the water to the intended beneficial use 5 with reasonable diligence. 6 2. Except as otherwise provided in subsection [10,] 11, where 7 there is no unappropriated water in the proposed source of supply, 8 where the groundwater that has not been committed for use has been 9 reserved pursuant to NRS 533.0241 or where its proposed use or 10 change conflicts with existing rights or with protectable interests in 11 existing domestic wells as set forth in NRS 533.024, or threatens to 12 prove detrimental to the public interest, the State Engineer shall 13 reject the application and refuse to issue the requested permit. If a 14 previous application for a similar use of water within the same basin 15 has been rejected on those grounds, the new application may be 16 denied without publication. 17 3. In addition to the criteria set forth in subsections 1 and 2, in 18 determining whether an application for an interbasin transfer of 19 groundwater must be rejected pursuant to this section, the State 20 Engineer shall consider: 21 (a) Whether the applicant has justified the need to import the 22 water from another basin; 23 (b) If the State Engineer determines that a plan for conservation 24 of water is advisable for the basin into which the water is to be 25 imported, whether the applicant has demonstrated that such a plan 26 has been adopted and is being effectively carried out; 27 (c) Whether the proposed action is environmentally sound as it 28 relates to the basin from which the water is exported; 29 (d) Whether the proposed action is an appropriate long-term use 30 which will not unduly limit the future growth and development in 31 the basin from which the water is exported; and 32 (e) Any other factor the State Engineer determines to be 33 relevant. 34 4. Except as otherwise provided in this subsection and 35 subsections 6 , 7 and [10] 11 and NRS 533.365, the State Engineer 36 shall approve or reject each application within 2 years after the final 37 date for filing a protest. The State Engineer may postpone action: 38 (a) Upon written authorization to do so by the applicant. 39 (b) If an application is protested. 40 (c) If the purpose for which the application was made is 41 municipal use. 42 (d) In areas where studies of water supplies have been 43 determined to be necessary by the State Engineer pursuant to 44 NRS 533.368. 45 – 5 – - *AB265* (e) Where court actions or adjudications are pending, which may 1 affect the outcome of the application. 2 (f) In areas in which adjudication of vested water rights is 3 deemed necessary by the State Engineer. 4 (g) On an application for a permit to change a vested water right 5 in a basin where vested water rights have not been adjudicated. 6 (h) Where authorized entry to any land needed to use the water 7 for which the application is submitted is required from a 8 governmental agency. 9 (i) On an application for which the State Engineer has required 10 additional information pursuant to NRS 533.375. 11 5. If the State Engineer does not act upon an application in 12 accordance with subsections 4 and 6, the application remains active 13 until approved or rejected by the State Engineer. 14 6. Except as otherwise provided in this subsection and 15 subsection [10,] 11, the State Engineer shall approve or reject, 16 within 6 months after the final date for filing a protest, an 17 application filed to change the point of diversion of water already 18 appropriated when the existing and proposed points of diversion are 19 on the same property for which the water has already been 20 appropriated under the existing water right or the proposed point of 21 diversion is on real property that is proven to be owned by the 22 applicant and is contiguous to the place of use of the existing water 23 right. The State Engineer may postpone action on the application 24 pursuant to subsection 4. 25 7. Not later than 30 days after the final date for filing a 26 protest pursuant to NRS 533.365, if no protests were filed during 27 the period for filing a protest, the State Engineer shall approve or 28 reject an application to appropriate water that results in a 29 nonconsumptive use. 30 8. If the State Engineer has not approved, rejected or held a 31 hearing on an application within 7 years after the final date for filing 32 a protest, the State Engineer shall cause notice of the application to 33 be republished and reposted pursuant to NRS 533.360 immediately 34 preceding the time at which the State Engineer is ready to approve 35 or reject the application. The cost of the republication must be paid 36 by the applicant. After such republication and reposting, a protest 37 may be filed in accordance with NRS 533.365. 38 [8.] 9. If a hearing is held regarding an application, the 39 decision of the State Engineer must be in writing and include 40 findings of fact, conclusions of law and a statement of the 41 underlying facts supporting the findings of fact. The written 42 decision may take the form of a transcription of an oral ruling. The 43 rejection or approval of an application must be endorsed on a copy 44 of the original application, and a record must be made of the 45 – 6 – - *AB265* endorsement in the records of the State Engineer. The copy of the 1 application so endorsed must be returned to the applicant. Except as 2 otherwise provided in subsection [11,] 12, if the application is 3 approved, the applicant may, on receipt thereof, proceed with the 4 construction of the necessary works and take all steps required to 5 [Text truncated for display. Full text available on LegiScan.]