SB342 - Revises provisions relating to water. (BDR 48-940)

S.B. 342 - *SB342* SENATE BILL NO. 342–SENATOR OHRENSCHALL MARCH 12, 2025 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions relating to water. (BDR 48-940) 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; authorizing the State Engineer, in certain areas of this State, to coordinate with persons who seek to relinquish, by certain means, a right to appropriate water; requiring the State Engineer to retire such relinquished rights; revising provisions relating to the effective date of a right to appropriate water under a permit; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law sets forth certain processes by which the State Engineer is 1 required or authorized to designate a basin for administration under certain 2 provisions of law concerning groundwater basins. (NRS 534.030) Existing law 3 further authorizes the State Engineer to make such rules, regulations and orders as 4 are deemed essential for the welfare of a groundwater basin or portion thereof that 5 has been designated by the State Engineer. (NRS 534.120) 6 Section 5 of this bill authorizes the State Engineer, in each area designated as a 7 groundwater basin by the State Engineer, to coordinate with persons who seek to 8 relinquish, by contract or other legal agreement, a right to appropriate water and 9 requires the State Engineer to retire any water right relinquished pursuant to such a 10 contract or agreement. Sections 1-3 of this bill prohibit the appropriation of water 11 for which rights have been retired pursuant to section 5. 12 Under existing law, any person who wishes to appropriate public waters, or to 13 change the place of diversion, manner of use or place of use of water already 14 appropriated, must apply to the State Engineer for a permit to do so. (NRS 533.325) 15 Existing law requires, if the State Engineer judges that the holder of any permit to 16 appropriate public water is not proceeding in good faith and with reasonable 17 diligence to perfect the appropriation, the State Engineer to cancel the permit and 18 authorizes the holder of such a cancelled permit to file a written petition with the 19 State Engineer requesting a review of the cancellation by the State Engineer at a 20 public hearing. Existing law: (1) authorizes, after receiving and considering 21 evidence, the State Engineer to affirm, modify or rescind the cancellation; and (2) 22 provides that if the State Engineer modifies or rescinds the cancellation of the 23 – 2 – - *SB342* permit, the effective date of the appropriation under the permit is vacated and 24 replaced by the date of the filing of the written petition with the State Engineer. 25 (NRS 533.395) Section 4 of this bill provides that a permit which was cancelled for 26 a failure to timely file a document relating to the permit is not subject to provisions 27 concerning the vacation and replacement date of a permit which was previously 28 cancelled. 29 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: 1 533.030 1. Subject to existing rights, and except as otherwise 2 provided in this section and NRS 533.0241, 533.027 and 533.028, 3 and section 5 of this act, all water may be appropriated for 4 beneficial use as provided in this chapter and not otherwise. 5 2. The use of water, from any stream system as provided in this 6 chapter and from underground water as provided in NRS 534.080, 7 for any recreational purpose, or the use of water from the Muddy 8 River or the Virgin River to create any developed shortage supply or 9 intentionally created surplus, is hereby declared to be a beneficial 10 use. As used in this subsection: 11 (a) “Developed shortage supply” has the meaning ascribed to it 12 in Volume 73 of the Federal Register at page 19884, April 11, 2008, 13 and any subsequent amendment thereto. 14 (b) “Intentionally created surplus” has the meaning ascribed to it 15 in Volume 73 of the Federal Register at page 19884, April 11, 2008, 16 and any subsequent amendment thereto. 17 3. Except as otherwise provided in subsection 4, in any county 18 whose population is 700,000 or more: 19 (a) The board of county commissioners may prohibit or restrict 20 by ordinance the use of water and effluent for recreational purposes 21 in any artificially created lake or stream located within the 22 unincorporated areas of the county. 23 (b) The governing body of a city may prohibit or restrict by 24 ordinance the use of water and effluent for recreational purposes in 25 any artificially created lake or stream located within the boundaries 26 of the city. 27 4. In any county whose population is 700,000 or more, the 28 provisions of subsection 1 and of any ordinance adopted pursuant to 29 subsection 3 do not apply to: 30 (a) Water stored in an artificially created reservoir for use in 31 flood control, in meeting peak water demands or for purposes 32 relating to the treatment of sewage; 33 (b) Water used in a mining reclamation project; or 34 – 3 – - *SB342* (c) A body of water located in a recreational facility that is open 1 to the public and owned or operated by the United States or the State 2 of Nevada. 3 Sec. 2. NRS 533.370 is hereby amended to read as follows: 4 533.370 1. Except as otherwise provided in this section and 5 NRS 533.0241, 533.345, 533.371, 533.372 and 533.503, and 6 section 5 of this act, the State Engineer shall approve an application 7 submitted in proper form which contemplates the application of 8 water to beneficial use if: 9 (a) The application is accompanied by the prescribed fees; 10 (b) The proposed use or change, if within an irrigation district, 11 does not adversely affect the cost of water for other holders of water 12 rights in the district or lessen the efficiency of the district in its 13 delivery or use of water; and 14 (c) The applicant provides proof satisfactory to the State 15 Engineer of the applicant’s: 16 (1) Intention in good faith to construct any work necessary to 17 apply the water to the intended beneficial use with reasonable 18 diligence; and 19 (2) Financial ability and reasonable expectation actually to 20 construct the work and apply the water to the intended beneficial use 21 with reasonable diligence. 22 2. Except as otherwise provided in subsection 10, [where there] 23 the State Engineer shall reject an application and refuse to issue 24 the requested permit if: 25 (a) There is no unappropriated water in the proposed source of 26 supply [, where the] ; 27 (b) The groundwater that has not been committed for use has 28 been reserved pursuant to NRS 533.0241 ; 29 (c) The groundwater rights have been retired pursuant to 30 section 5 of this act; or [where its] 31 (d) The proposed use or change conflicts with existing rights or 32 with protectable interests in existing domestic wells as set forth in 33 NRS 533.024, or threatens to prove detrimental to the public 34 interest, the State Engineer shall reject the application and refuse to 35 issue the requested permit. 36  If a previous application for a similar use of water within the 37 same basin has been rejected on those grounds, the new application 38 may be denied without publication. 39 3. In addition to the criteria set forth in subsections 1 and 2, in 40 determining whether an application for an interbasin transfer of 41 groundwater must be rejected pursuant to this section, the State 42 Engineer shall consider: 43 (a) Whether the applicant has justified the need to import the 44 water from another basin; 45 – 4 – - *SB342* (b) If the State Engineer determines that a plan for conservation 1 of water is advisable for the basin into which the water is to be 2 imported, whether the applicant has demonstrated that such a plan 3 has been adopted and is being effectively carried out; 4 (c) Whether the proposed action is environmentally sound as it 5 relates to the basin from which the water is exported; 6 (d) Whether the proposed action is an appropriate long-term use 7 which will not unduly limit the future growth and development in 8 the basin from which the water is exported; and 9 (e) Any other factor the State Engineer determines to be 10 relevant. 11 4. Except as otherwise provided in this subsection and 12 subsections 6 and 10 and NRS 533.365, the State Engineer shall 13 approve or reject each application within 2 years after the final date 14 for filing a protest. The State Engineer may postpone action: 15 (a) Upon written authorization to do so by the applicant. 16 (b) If an application is protested. 17 (c) If the purpose for which the application was made is 18 municipal use. 19 (d) In areas where studies of water supplies have been 20 determined to be necessary by the State Engineer pursuant to 21 NRS 533.368. 22 (e) Where court actions or adjudications are pending, which may 23 affect the outcome of the application. 24 (f) In areas in which adjudication of vested water rights is 25 deemed necessary by the State Engineer. 26 (g) On an application for a permit to change a vested water right 27 in a basin where vested water rights have not been adjudicated. 28 (h) Where authorized entry to any land needed to use the water 29 for which the application is submitted is required from a 30 governmental agency. 31 (i) On an application for which the State Engineer has required 32 additional information pursuant to NRS 533.375. 33 5. If the State Engineer does not act upon an application in 34 accordance with subsections 4 and 6, the application remains active 35 until approved or rejected by the State Engineer. 36 6. Except as otherwise provided in this subsection and 37 subsection 10, the State Engineer shall approve or reject, within 6 38 months after the final date for filing a protest, an application filed to 39 change the point of diversion of water already appropriated when 40 the existing and proposed points of diversion are on the same 41 property for which the water has already been appropriated under 42 the existing water right or the proposed point of diversion is on real 43 property that is proven to be owned by the applicant and is 44 contiguous to the place of use of the existing water right. The State 45 – 5 – - *SB342* Engineer may postpone action on the application pursuant to 1 subsection 4. 2 7. If the State Engineer has not approved, rejected or held a 3 hearing on an application within 7 years after the final date for filing 4 a protest, the State Engineer shall cause notice of the application to 5 be republished and reposted pursuant to NRS 533.360 immediately 6 preceding the time at which the State Engineer is ready to approve 7 or reject the application. The cost of the republication must be paid 8 by the applicant. After such republication and reposting, a protest 9 may be filed in accordance with NRS 533.365. 10 8. If a hearing is held regarding an application, the decision of 11 the State Engineer must be in writing and include findings of fact, 12 conclusions of law and a statement of the underlying facts 13 supporting the findings of fact. The written decision may take the 14 form of a transcription of an oral ruling. The rejection or approval of 15 an application must be endorsed on a copy of the original 16 application, and a record must be made of the endorsement in the 17 records of the State Engineer. The copy of the application so 18 endorsed must be returned to the applicant. Except as otherwise 19 provided in subsection 11, if the application is approved, the 20 applicant may, on receipt thereof, proceed with the construction of 21 the necessary works and take all steps required to apply the water to 22 beneficial use and to perfect the proposed appropriation. If the 23 application is rejected, the applicant may take no steps toward the 24 prosecution of the proposed work or the diversion and use of 25 the public water while the rejection continues in force. 26 9. If a person is the successor in interest of an owner of a water 27 right or an owner of real property upon which a domestic well is 28 located and if the former owner of the water right or real property on 29 which a domestic well is located had previously filed a written 30 protest against the granting of an application, the successor in 31 interest must be allowed to pursue that protest in the same manner 32 as if the successor in interest were the former owner whose interest 33 he or she succeeded. If the successor in interest wishes to pursue the 34 protest, the successor in interest must notify the State Engineer in a 35 timely manner on a form provided by the State Engineer. 36 10. The provisions of subsections 1 to 9, inclusive, do not 37 apply to an application for an environmental permit or a temporary 38 permit issued pursuant to NRS 533.436 or 533.504. 39 11. The provisions of subsection 8 do not authorize the 40 recipient of an approved application to use any state land 41 administered by the Division of State Lands of the State Department 42 of Conservation and Natural Resources without the appropriate 43 authorization for that use from the State Land Registrar. 44 – 6 – - *SB342* 12. As used in this section, “domestic well” has the meaning 1 ascribed to it in NRS 534.350. 2 Sec. 3. NRS 533.371 is hereby amended to read as follows: 3 533.371 The State Engineer shall reject the application and 4 refuse to issue a permit to appropriate water for a specified period if 5 the State Engineer determines that: 6 1. The application is incomplete; 7 2. The prescribed fees have not been paid; 8 3. The proposed use is not temporary; 9 4. There is no water available from the proposed source of 10 supply without exceeding the perennial yield or safe yield of that 11 source; 12 5. The groundwater that has not been committed for use from 13 the proposed source of supply has been reserved pursuant to 14 NRS 533.0241; 15 6. The groundwater rights have been retired pursuant to 16 section 5 of this act; 17 7. The proposed use conflicts with existing rights; or 18 [7.] 8. The proposed use threatens to [Text truncated for display. Full text available on LegiScan.]