Bill Summary – FastDemocracy

Enrolled Copy                                                                           S.B. 118
                    WATER EFFICIENT LANDSCAPING INCENTIVES
                                      2023 GENERAL SESSION
                                           STATE OF UTAH
                                Chief Sponsor: Scott D. Sandall
                                  House Sponsor: Doug Owens
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 LONG TITLE
 General Description:
        This bill addresses efficient use of water including incentives to install and maintain
 water efficient landscaping.
 Highlighted Provisions:
        This bill:
        < defines terms;
        < authorizes water conservancy districts to receive grants to provide incentives;
        < provides conditions on when an owner may receive an incentive;
        < addresses rulemaking authority;
        < addresses tracking of local government implementation of water use efficiency
 standards; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:
        This bill appropriates in fiscal year 2024:
        < to the Department of Natural Resources - Water Resources, as an ongoing
 appropriation:
            C     from the General Fund, $3,000,000; and
        < to the Department of Natural Resources - Water Resources, as a one-time
 appropriation:
            C     from the General Fund, One-time, $11,200.
 Other Special Clauses:
        This bill provides a special effective date.
       S.B. 118                                                                       Enrolled Copy
 Utah Code Sections Affected:
 AMENDS:
        10-9a-536, as enacted by Laws of Utah 2022, Chapter 230
        17-27a-532, as enacted by Laws of Utah 2022, Chapter 230
        73-10-37, as enacted by Laws of Utah 2022, Chapter 50
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 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 10-9a-536 is amended to read:
        10-9a-536. Water wise landscaping.
        (1) As used in this section:
        (a) "Lawn or turf" means nonagricultural land planted in closely mowed, managed
 grasses.
        (b) "Mulch" means material such as rock, bark, wood chips, or other materials left
 loose and applied to the soil.
        (c) "Overhead spray irrigation" means above ground irrigation heads that spray water
 through a nozzle.
        (d) (i) "Vegetative coverage" means the ground level surface area covered by the
 exposed leaf area of a plant or group of plants at full maturity.
        (ii) "Vegetative coverage" does not mean the ground level surface area covered by the
 exposed leaf area of a tree or trees.
        (e) "Water wise landscaping" means any or all of the following:
        (i) installation of plant materials suited to the microclimate and soil conditions that
 can:
        (A) remain healthy with minimal irrigation once established; or
        (B) be maintained without the use of overhead spray irrigation;
        (ii) use of water for outdoor irrigation through proper and efficient irrigation design
 and water application; or
        (iii) use of other landscape design features that:
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       Enrolled Copy                                                                          S.B. 118
        (A) minimize the need of the landscape for supplemental water from irrigation; or
        (B) reduce the landscape area dedicated to lawn or turf.
        (2) A municipality may not enact or enforce an ordinance, resolution, or policy that
 prohibits, or has the effect of prohibiting, a property owner from incorporating water wise
 landscaping on the property owner's property.
        (3) (a) Subject to Subsection (3)(b), Subsection (2) does not prohibit a municipality
 from requiring a property owner to:
        (i) comply with a site plan review or other review process before installing water wise
 landscaping;
        (ii) maintain plant material in a healthy condition; and
        (iii) follow specific water wise landscaping design requirements adopted by the
 municipality, including a requirement that:
        (A) restricts or clarifies the use of mulches considered detrimental to municipal
 operations;
        (B) imposes minimum or maximum vegetative coverage standards; or
        (C) restricts or prohibits the use of specific plant materials.
        (b) A municipality may not require a property owner to install or keep in place lawn or
 turf in an area with a width less than eight feet.
        (4) A municipality shall report to the Division of Water Resources the existence,
 enactment, or modification of an ordinance, resolution, or policy that implements
 regional-based water use efficiency standards established by the Division of Water Resources
 by rule under Section 73-10-37.
        Section 2. Section 17-27a-532 is amended to read:
        17-27a-532. Water wise landscaping.
        (1) As used in this section:
        (a) "Lawn or turf" means nonagricultural land planted in closely mowed, managed
 grasses.
        (b) "Mulch" means material such as rock, bark, wood chips, or other materials left
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        S.B. 118                                                                       Enrolled Copy
 loose and applied to the soil.
        (c) "Overhead spray irrigation" means above ground irrigation heads that spray water
 through a nozzle.
        (d) (i) "Vegetative coverage" means the ground level surface area covered by the
 exposed leaf area of a plant or group of plants at full maturity.
        (ii) "Vegetative coverage" does not mean the ground level surface area covered by the
 exposed leaf area of a tree or trees.
        (e) "Water wise landscaping" means any or all of the following:
        (i) installation of plant materials suited to the microclimate and soil conditions that
 can:
        (A) remain healthy with minimal irrigation once established; or
        (B) be maintained without the use of overhead spray irrigation;
        (ii) use of water for outdoor irrigation through proper and efficient irrigation design
 and water application; or
        (iii) the use of other landscape design features that:
        (A) minimize the need of the landscape for supplemental water from irrigation; or
        (B) reduce the landscape area dedicated to lawn or turf.
        (2) A county may not enact or enforce an ordinance, resolution, or policy that prohibits,
 or has the effect of prohibiting, a property owner from incorporating water wise landscaping on
 the property owner's property.
        (3) (a) Subject to Subsection (3)(b), Subsection (2) does not prohibit a county from
 requiring a property owner to:
        (i) comply with a site plan review or other review process before installing water wise
 landscaping;
        (ii) maintain plant material in a healthy condition; and
        (iii) follow specific water wise landscaping design requirements adopted by the county,
 including a requirement that:
        (A) restricts or clarifies the use of mulches considered detrimental to county
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        Enrolled Copy                                                                            S.B. 118
 operations;
        (B) imposes minimum or maximum vegetative coverage standards; or
        (C) restricts or prohibits the use of specific plant materials.
        (b) A county may not require a property owner to install or keep in place lawn or turf in
 an area with a width less than eight feet.
        (4) A county shall report to the Division of Water Resources the existence, enactment,
 or modification of an ordinance, resolution, or policy that implements regional-based water use
 efficiency standards established by the Division of Water Resources by rule under Section
 73-10-37.
        Section 3. Section 73-10-37 is amended to read:
        73-10-37. Incentives to use water efficient landscaping.
        (1) As used in this section:
        (a) "District" means a water conservancy district, as that term is defined in Section
 73-10-32.
        (b) "Division" means the Division of Water Resources.
        (c) "Landscaping conversion incentive program" means a program administered by a
 district that pays an owner a financial incentive to remove lawn or turf from a project area on
 land owned by the owner.
        [(b)] (d) (i) Except as provided in Subsection [(1)(b)(ii)] (1)(d)(ii), "lawn or turf"
 means nonagricultural land planted in closely mowed, managed grasses.
        (ii) "Lawn or turf" does not include a golf course, park, athletic field, or sod farm.
        [(c)] (e) "Owner" means an owner of private or public land where a water end user is
 located.
        (f) "Program guidelines" means guidelines adopted by a district for the district's
 landscaping conversion incentive program.
        (g) "Project area" means the area from which lawn or turf is removed and replaced with
 water efficient landscaping.
        [(d)] (h) "Water end user" means a person who enters into a water contract to obtain
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        S.B. 118                                                                        Enrolled Copy
 water from a retail water provider for residential, commercial, industrial, or institutional use.
        (2) [(a) Subject to a $5,000,000 aggregate annual cap, the] The division may:
        (a) award a grant under Subsection (3) to a district to fund financial incentives
 provided through a landscaping conversion incentive program administered by the district; and
        (b) provide an incentive under Subsection (4) to an owner to remove lawn or turf from
 a project area on land owned by the owner in an area without a landscaping conversion
 incentive program.
        (3) (a) (i) A district may obtain a grant from the division to help fund a financial
 incentive provided to an owner through a landscaping conversion incentive program
 administered by the district.
        (ii) Both the award and use of a grant under this Subsection (3) are subject to
 Subsections (3)(b), (c), and (d).
        (b) To obtain a grant, a district shall:
        (i) initiate and operate a landscaping conversion incentive program;
        (ii) limit the disbursement of grant money in the district's landscaping conversion
 incentive program to owners that satisfy the minimum requirements of Subsection (4)(c) and:
        (A) rules made by the division under Subsection (5)(b); or
        (B) program guidelines approved by the division under Subsection (3)(f);
        (iii) use the grant exclusively to fund financial incentives provided to owners that
 remove lawn or turf from a project area in the district's landscaping conversion incentive
 program;
        (iv) provide an equal amount or more of matching funds for the district's landscaping
 conversion incentive program from sources other than the grant money the district receives
 under this section;
        (v) file an application with the division that:
        (A) describes the district's landscaping conversion incentive program, including
 verification that the program can and shall implement the minimum requirements of
 Subsection (4)(c) and either rules made by the division under Subsection (5)(b) or program
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        Enrolled Copy                                                                            S.B. 118
 guidelines approved by the division under Subsection (3)(f);
        (B) includes a copy of the program guidelines governing the district's landscaping
 conversion incentive program;
        (C) if the district wants to be subject to program guidelines in lieu of division rules
 made under Subsection (5)(b), requests that the division approve the district's program
 guidelines under Subsection (3)(f); and
        (D) provides additional information requested by the division; and
        (vi) enter into a contract with the division that requires the district to:
        (A) verify that participants comply and landscaping conversion projects proposed,
 undertaken, and completed by participants under the district's landscaping conversion incentive
 program satisfy the requirements in this Subsection (3) and any contract before using grant
 money for a financial incentive;
        (B) agree not to use grant money for a financial incentive in any landscaping
 conversion project that fails to satisfy the requirements of this Subsection (3) and either rules
 made by the division or program guidelines approved by the division under Subsection (3)(f);
        (C) submit to the division quarterly reports on funding status; and
        (D) prepare and submit an annual accounting to the division on the use of grant money
 for financial incentives in the district's landscaping conversion incentive program.
        (c) (i) Upon expenditure of 70% of the grant money awarded to a district and an
 accounting on the use of that grant money, a district may apply for additional grant money in
 accordance with Subsection (3)(b).
        (ii) The division may award a district an additional grant based on:
        (A) the availability of grant money;
        (B) the priority or importance of the grant proposal in relation to availability of grant
 money, the division's landscaping conversion incentive program under this Subsection (3),
 other landscaping conversion incentive program grant requests, and regional needs and goals;
        (C) the effectiveness of the district's landscaping conversion incentive program in
 incentivizing owners to convert lawn or turf to water efficient landscaping;
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        S.B. 118                                                                         Enrolled Copy
        (D) the district's previous compliance with this Subsection (3) and contract terms and
 conditions; and
        (E) any matter bearing on the district's ability to responsibly handle and disperse grant
 money consistent with this Subsection (3) and contract terms and conditions.
        (d) A district awarded grant money under this Subsection (3) may not use grant money
 to pay an incentive that exceeds the maximum amounts established by the division by rule
 under Subsection (5)(c).
        (e) Nothing in this section prohibits a district from expending non-grant money,
 including matching money, under the district's landscaping conversion incentive program to:
        (i) assist an owner that does not satisfy Subsection (4)(c); or
        (ii) provide an incentive that exceeds a maximum amount established by the division
 for grant money under Subsection (3)(d).
        (f) The division may approve a request from a district under Subsection (3)(b)(v)(C) to
 use program guidelines in lieu of rules made by the division under Subsection (5)(b) if the
 division determines that the district's program guidelines will:
        (i) result in at least as much water use savings as rules made under Subsection (5)(b);
 and
        (ii) accomplish the same objectives as rules made under Subsection (5)(b).
        (4) (a) In an area without an existing landscaping conversion incentive program, the
 division may provide an incentive to an owner to remove lawn or turf from land owned by the
 owner and replace the lawn or turf with [drought resistant] water efficient landscaping.
        (b) If the division provides an incentive under this [section] Subsection (4), the
 division shall provide the incentive in the order that an application for the incentive is filed.
 The division may terminate an application if the division determines that the owner has not
 completed the project within 12 months of the date on which the owner files the application for
 the incentive.
        (c) To be eligible for an incentive under this [section,] Subsection (4):
        (i) the owner shall at the time the owner applies for the incentive:
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        Enrolled Copy                                                                             S.B. 118
        [(i)] (A) have living lawn or turf, as determined by the entity providing the incentive,
 on the land owned by the owner that the owner intends to replace with [drought resistant] water
 efficient landscaping; and
        [(ii) be in good standing with a retail water provider so that the owner has no unpaid
 water bills; and]
        [(iii)] (B) participate voluntarily in the removal of the lawn or turf in that the removal
 is not required by governmental code or policy[.];
        (ii) the property where the project area is located, is located within:
        (A) a municipality that implements regional-based water use efficiency standards
 established by the division under Subsection (5)(d); or
        (B) an unincorporated area of a county that implements regional-based water use
 efficiency standards established by the division under Subsection (5)(d); and
        (iii) the owner shall agree to:
        (A) maintain water efficient landscaping and a drip irrigation system installed in the
 project area and not reinstall lawn or turf or overhead spray irrigation in the project area after
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