The Senate Finance Committee on Tuesday voted to advance a bill establishing a strategic water reserve that allows the Interstate Stream Commission to hold purchased or leased water rights for compact compliance, endangered species and, under the proposed change, aquifer recharge and stream‑connected aquifer benefits.

Sponsor testimony said the reserve would allow the commission to set aside up to $15 million (subject to appropriations) for voluntary transactions to secure water supplies needed for interstate compact obligations and environmental flows. Committee witnesses described the reserve as one tool among others—voluntary leases, recharge projects and mitigation programs—to manage scarce water supplies without resorting to mandatory curtailment of water rights.

Committee members raised technical and policy questions, including how purchases in non‑adjudicated basins would work and whether state purchases could affect market prices for private water rights. The commission’s general counsel said transactions would be voluntary, purchases would be at market value and the commission does not intend to be the sole vehicle for long‑term water management.

The bill also limits how purchased surface water may be converted to groundwater—allowing only natural passive infiltration through the stream bed—and requires the commission to report priorities annually to the legislature. The committee recommended the bill be advanced to the floor with a do‑pass recommendation, 10 in favor and 1 opposed.

Supporters included conservation groups and regional water interests; opponents expressed concerns about scope and long‑term implications for agriculture and municipal planning. Committee members asked for continued outreach to stakeholders and additional detail on how purchases would be prioritized and coordinated with existing programs.