The bill establishes the "Strategic Water Reserve Fund" within the state treasury, which will be administered by the Interstate Stream Commission. The fund will consist of various financial sources, including appropriations and donations, and any unspent balance at the end of the fiscal year will not revert to the general fund unless it exceeds $15 million. The commission is tasked with using the fund to support water management and conservation efforts, particularly those aimed at aquifer recharge and reducing groundwater depletion. Additionally, the bill allows the commission to prioritize water transactions that provide supplementary benefits alongside the authorized purposes.

Furthermore, the bill amends existing law regarding the powers of the Interstate Stream Commission, detailing the acquisition and management of water rights for the strategic water reserve. It specifies that the commission may only acquire water rights that have sufficient seniority and beneficial use, and it prohibits the acquisition of rights served by certain irrigation districts unless through contractual arrangements. The commission is also required to consider supplementary benefits, such as habitat improvement and recreational opportunities, when establishing priorities for water acquisition. The bill emphasizes that water rights acquired for the reserve must remain within their original river reach or groundwater basin and mandates annual reporting to the legislature on the reserve's status.

Statutes affected:
introduced version: 72-14-3.3
Final Version: 72-14-3.3