Senate Bill No. 454-Committee on Natural Resources

June 11, 1997
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Referred to Committee on Natural Resources

SUMMARY--Limits inter-basin transfers of water. (BDR 48-1654)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to water; limiting the transfer of water from one basin to another; and providing other matters properly relating thereto.

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 thereto the provisions set forth as sections 2 and 3 of this act:
Sec. 2 As used in NRS 533.438 and 533.4385 and sections 2 and 3 of this act:
1. A "basin" is one designated by the state engineer for the purposes of chapter 534 of NRS.
2. "Origin" means the place where water is taken from underground.
Sec. 3 The state engineer shall reject an application for a proposed inter-basin transfer of water, and refuse to issue a permit, if the amount proposed to be transferred exceeds one-fifth of the perennial yield from ground water in the area hydrologically affected, unless the board of county commissioners of the county of origin recommends the allowance of a greater proportion after holding a public hearing upon the proposal in the basin from which the water is to be transferred and in the county seat of the county of origin if the county seat is not within the basin.
Sec. 4 NRS 533.370 is hereby amended to read as follows:
533.370 1. Except as otherwise provided in NRS 533.345, 533.371, 533.372 and 533.503 , section 3 of this act, and this section, 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 district's efficiency in its delivery or use of water; and
(c) The applicant provides proof satisfactory to the state engineer of:
(1) His intention in good faith to construct any work necessary to apply the water to the intended beneficial use with reasonable diligence; and
(2) His 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 5, the state engineer shall either approve or reject each application within 1 year after the final date for filing protest. However:
(a) Action can be postponed by the state engineer upon written authorization to do so by the applicant or, in case of a protested application, by both the protestant and the applicant; and
(b) In areas where studies of water supplies are being made or where court actions are pending, the state engineer may withhold action until it is determined there is unappropriated water or the court action becomes final.
3. Except as otherwise provided in subsection 5, where there is no unappropriated water in the proposed source of supply, or where its proposed use or change conflicts with existing rights, or threatens to prove detrimental to the public interest, the state engineer shall reject the application and refuse to issue the requested permit. Where a previous application for a similar use of water within the same basin has been rejected on these grounds, the new application may be denied without publication.
4. If a hearing is held regarding an application, the decision of the state engineer must be in writing and include findings of fact, conclusions of law and a statement of the underlying facts supporting the findings of fact. The written decision may take the form of a transcription of an oral ruling. The rejection or approval of an application must be endorsed on a copy of the original application, and a record made of the endorsement in the records of the state engineer. The copy of the application so endorsed must be returned to the applicant. Except as otherwise provided in subsection 6, if the application is approved, the applicant may, on receipt thereof, proceed with the construction of the necessary works and take all steps required to apply the water to beneficial use and to perfect the proposed appropriation. If the application is rejected the applicant may take no steps toward the prosecution of the proposed work or the diversion and use of the public water so long as the rejection continues in force.
5. The provisions of subsections 1, 2 and 3 do not apply to an application for an environmental permit.
6. The provisions of subsection 4 do not authorize the recipient of an approved application to use any state land administered by the division of state lands of the state department of conservation and natural resources without the appropriate authorization for such a use from the state land registrar.
Sec. 5 NRS 533.438 is hereby amended to read as follows:
533.4381. If an application or applications to appropriate ground water would result in the transfer of water to be used in a county in this state other than the county in which the water is to be appropriated or in another state, the county of origin may impose a tax of $6 per acre-foot per year on the transfer.
2. All money collected from this tax must be deposited in a trust fund for the county. The principal and interest of the trust fund may be used by the county only for the purposes of economic development, health care and education.
3. For the purposes of this section, if a basin includes land lying in more than one county each county any part of whose land is included is a county of origin to the extent of the proportionate amount of water transferred from it. The state engineer shall determine the respective proportions.
[4. As used in this section:
(a) A "basin" is one designated by the state engineer for the purposes of chapter 534 of NRS.
(b) "Origin" means the place where water is taken from underground.]
Sec.
6 This act becomes effective on July 1, 1997.

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