Staff briefed board on state water plan work and recent legislation; several bills affect rates, grants and funding structure

Division staff and the legislature liaison summarized ongoing work on the state water plan and provided a roundup of legislation the Division tracked during the session.

Staff said the state water plan update is underway and that the Division has contracted consultants (Bowen & Collins) to help develop relevant agency plans; staff noted draft agency priority lists will be due in June and emphasized a tight timeline to compile a statewide infrastructure plan. The board was told the new funding structure created by House Bill 285 (and related legislation from this session) will change how state water funding is prioritized and distributed after a transition period, and that some functions and interagency prioritization will shift to the Water Development Coordinating Council; staff said the revolving construction fund (board fund for small projects under $1M) is not subject to the council’s priority process.

Key bills staff summarized include: - House Bill 41: State water policy amendments that reaffirm state water planning and watershed coordination provisions. - House Bill 81: A prohibition on adding fluoride to public water systems (the bill passed and staff said it will prevent future fluoridation additions in covered systems). - House Bill 160: Changes affecting professional geologists’ credentialing language (degree accreditation language was modified). - House Bill 223: State grant transparency requirements relating to administrative costs of grants. - House Bill 243: Agricultural Water Optimization program modifications and permanent pollinator program funding. - House Bill 274: Water amendments that require tiered rates for secondary water suppliers and include a provision that end users using water for growing food could be charged the lowest conservation tier; staff noted concerns that the food‑use carve‑out could weaken conservation incentives and that the secondary component takes effect in 2030. - House Bill 285: Water infrastructure modifications that implement a new State Water Infrastructure Fund and change certain agency roles; staff said the effect will include an annual consolidated application and prioritization process after 2026 and that divisions must compile relevant agency project lists.

Legal staff also gave brief updates: the Great Salt Lake public‑trust case (Utah Physicians v. Department of Natural Resources) remains pending and staff are awaiting a decision; a Court of Appeals hearing in the Waterhorse case is scheduled for April 7; and the Colorado River Authority has approved demand‑management pilot projects that will require contract changes for Green River block contract water rights.

The board asked procedural questions about how the new funding prioritization process will work, and staff said the first cycle will be a learning year and that the board’s revolving construction fund remains available for small eligible projects. Staff said they will return with draft relevant agency lists for board input.