Committee amends and advances bill establishing voluntary water‑rights retirement program with sunset

The Nevada Senate Committee on Natural Resources amended and advanced Senate Bill 36, which creates a Nevada Conservation and Recreation Program within the Department of Conservation and Natural Resources and establishes a Nevada Voluntary Water Rights Retirement Program to be administered by the department’s director. Jennifer Rudy, the Committee Policy Analyst, summarized the measure and a 13‑page amendment submitted by Jeff Fontaine on behalf of several water authorities.

Under the adopted amendment, the bill deletes an earlier provision creating a separate Nevada Water Buyback Initiative and instead creates the Nevada Voluntary Water Rights Retirement Program within the Conservation and Recreation Program. The amendment clarifies conditions and procedures for approval or rejection of applications related to appropriation of water by the state engineer, establishes an account within the State General Fund to accept donations, grants, federal money or other funds for retiring water rights, and clarifies that groundwater rights retired under the program “shall be deemed to be retired from the source in perpetuity.” The amendment adds a sunset for pertinent sections of the bill on June 30, 2035, unless reauthorized.

Jeff Fontaine, representing the Central Nevada Regional Water Authority and the Humboldt River Basin Water Authority, told the committee there is no appropriation request in the bill. He explained the bill builds on a pilot program funded with federal ARPA dollars allocated through the Nevada Water Conservation Infrastructure Initiative, which reserved $25 million for water‑rights retirement as part of a $100 million initiative in October 2023. Fontaine said the amendment removes a requirement for an advisory committee and places program administration with the Department of Conservation and Natural Resources.

Senator Ellison and others raised concerns about funding sources for a new account and whether the program would create administrative burdens without a funding stream. Fontaine replied that potential funding sources could include federal funds, donations, charitable trusts, and that making the program authorized and ready would allow use of funds if and when they become available. Senator Hansen asked about overlap with an existing, department‑administered pilot; Fontaine confirmed the pilot used ARPA funds and the intent of SB36 is to codify and make permanent program authority rather than appropriate new state general fund money.

The committee moved to amend and do pass the bill; the motion carried and the floor statement was assigned to Senator Pizzina.

Ending: The committee advanced the amended SB36 with a sunset provision and no appropriation; proponents said the change removes a fiscal note and positions the state to accept and use funds if they become available.