STATEMENT OF PURPOSE
RS27498 / S1316
This legislation modifies the current process for issuing permits and licenses to municipal providers for
"reasonably anticipated future needs" water rights (also known as "RAFN" water rights). A RAFN water
right authorizes a municipal provider to secure a long term municipal water supply and develop the municipal
water use over an extended period of time known as the planning horizon. Under current law, proof of
beneficial use for RAFN rights is often due years or decades before the planning horizon ends. As a result,
the Idaho Department of Water Resources ("IDWR") must issue a water right license based on a revised
estimate of the amount of water that the municipal provider will beneficially use by the end of the planning
horizon. The estimate is based partly on population growth projections and partly on the capacity of the
water system constructed or used when proof of beneficial use is submitted. Installing capacity may require
municipal providers to invest in water delivery infrastructure before it is needed. Equating capacity and
projected population growth to future beneficial use causes difficulty for the Department in issuing the final
license and creates uncertainty for municipal providers. This legislation reduces uncertainty in the water right
licensing process by causing the development period for RAFN rights to correspond to the planning horizon
and by authorizing the Director of IDWR to license RAFN water rights in incremental steps based upon actual
beneficial use up through the end of the development period.
In accordance with Idaho Supreme Court precedent, the provisions set forth in this legislation will apply to
applications for RAFN permits approved after the effective date of this legislation, even if the application was
submitted prior to the effective date of this legislation. The legislation states how it will apply to permits in
existence at the time of the effective date of this legislation.
The legislation also includes other clean-up revisions to the affected statutes to clarify and streamline the
permitting and licensing process for both RAFN and non-RAFN rights.
FISCAL NOTE
The changes to Chapter 2, Title 42, Idaho Code, in this legislation will provide further clarity and efficiency in
the permitting and licensing of water rights and will cause no fiscal impact to state or local governments.
Contact:
Paul Arrington, Executive Director/General Counsel
Idaho Water Users Association
(208) 344-6690
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/10/2020, 3:09 PM


Statutes affected:
Bill Text: 42-204, 42-217, 42-218, 42-219, 42-220