FIRST REGULAR SESSION SENATE COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 82 103RD GENERAL ASSEMBLY 0251S.03C KRISTINA MARTIN, Secretary AN ACT To amend chapter 640, RSMo, by adding thereto two new sections relating to water resources. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Chapter 640, RSMo, is amended by adding thereto 1 two new sections, to be known as sections 640.406 and 640.408, 2 to read as follows:3 640.406. 1. For the purposes of this section, the 1 following terms mean: 2 (1) "Applicant", any person applying for a water 3 exportation permit; 4 (2) "Beneficial uses", water uses, which include but 5 are not limited to domestic, agricultural, industrial, 6 recreational, and other legitimate beneficial uses; 7 (3) "Commission", the Missouri water resources 8 commission as established in section 640.408; 9 (4) "Department", the Missouri department of natural 10 resources; 11 (5) "Director", the director of the department of 12 natural resources; 13 (6) "End use", the final location for which the 14 exported water will be used, consumed, or applied for a 15 stated beneficial use; 16 (7) "Person", any individual, partnership, 17 copartnership, firm, company, public or private corporation, 18 SCS SB 82 2 association, joint stock company, trust, estate, political 19 subdivision, water district, or any agency, board, 20 department, or bureau of the federal or any state 21 government, or any other legal entity which is recognized by 22 law as the subject of rights and duties; 23 (8) "Water exportation permit", a permit issued by the 24 department, approved by the commission, granting the 25 exportation of water outside the state of Missouri subject 26 to the provisions of this section; 27 (9) "Water resources", any Missouri water source 28 occurring on the surface, in natural or artificial channels, 29 lakes, reservoirs, or impoundments, and in sub surface 30 aquifers which are available or which may be made available. 31 2. In order to protect the access, use, and enjoyment 32 of Missouri's water resources, it shall be unlawful for any 33 person to export water resources outside the state of 34 Missouri unless such person holds a water exportation permit 35 issued by the department, subject to the following 36 exemptions: 37 (1) If the withdrawal and end use of water resources 38 are within thirty miles of the border of the state, any 39 person exempt under th e provision of this section shall 40 report to the director annually the person's water use 41 volumes and withdrawal rates in a format and timeline 42 determined by the director. Such report shall also be 43 provided to the commission; and 44 (2) Exportation of bottled water, or water packaged in 45 containers intended for single use. 46 3. The director shall review each water exportation 47 permit application and all supporting materials to ensure 48 all the following conditions have been met prior to 49 SCS SB 82 3 accepting a water exportation permit application for public 50 comment and review by the commission: 51 (1) There are water resources available in the volumes 52 and withdrawal rates requested by the applicant for export; 53 (2) The applicant has demonstrated bot h a present need 54 and beneficial use for the water resources. In making the 55 determination of need and beneficial use, the director shall 56 consider the availability of all water sources, whether in 57 state or out of state, along with other relevant factors as 58 the director and the commission deem appropriate; 59 (3) The volume and withdrawal rates requested by the 60 applicant shall not interfere with existing and projected in - 61 state beneficial uses; 62 (4) The applicant has demonstrated that water in t he 63 amounts and rates requested can feasibly be exported to meet 64 its intended beneficial uses; 65 (5) The applicant has provided relevant information 66 and the director and the commission confirmed that issuance 67 of a water exportation permit is necessa ry for the 68 beneficial use of the applicant or the applicant's 69 customers, and the beneficial use at the end use location is 70 not reasonably attainable through a method other than 71 granting a water exportation permit under this section; 72 (6) In the event of a conflict between the beneficial 73 use outside the state and the beneficial use needs in the 74 state, the director and the commission shall prioritize the 75 beneficial use needs of the state and its citizens over the 76 applicant or other state; and 77 (7) Whenever a person applies for a water exportation 78 permit or water exportation permit renewal, the department 79 of natural resources shall send a written notice within 80 thirty business days after receiving the permit application 81 SCS SB 82 4 to the county commis sion of the county where the water for 82 exportation is located. 83 4. Within one hundred twenty days after the receipt of 84 a complete application, the director shall determine whether 85 the applicant complied with provisions of subsection 3 of 86 this section. The director shall, after making such 87 determination, hold a thirty -day public comment period 88 regarding the director's determination. Within sixty days 89 after the comment period, the director shall recommend 90 approval or denial of the permit. Such recommendation, 91 along with all public comments, shall be submitted to the 92 commission. The commission shall have a public hearing 93 within thirty days after receipt of the director's 94 recommendation. This public hearing may be scheduled during 95 one of the commission's regular quarterly meetings. The 96 commission shall make a final decision to approve or deny 97 the water exportation permit within thirty days after the 98 public hearing. A three-fourths majority of the commission 99 members present shall be re quired to approve the issuance or 100 renewal of a water exportation permit. 101 (1) To renew a valid water exportation permit, an 102 applicant shall file a renewal application for a water 103 exportation permit with the department no later than two 104 hundred seventy-one days prior to the expiration of the 105 existing water exportation permit. The applicant, director, 106 and the commission shall follow the same procedures and 107 timelines as required for the issuance of a new water 108 exportation permit under this sectio n. The director may 109 impose additional conditions to address any substantial or 110 material change in factors under subsection 3 of this 111 section or may deny a renewal application as necessary to 112 comply with this section based on any such substantial or 113 SCS SB 82 5 material changes in factors under subsection 3 of this 114 section. If the director or the commission are in the 115 process of reviewing the renewal application before the 116 final decision is made and the existing applicant's water 117 exportation permit expires, s uch applicant shall be able to 118 operate under the terms of the expired water exportation 119 permit until a final decision is made by the commission on 120 the renewal of such permit. 121 (2) In the absence of an appeal as provided under 122 chapter 536, the deci sion of the commission shall be final. 123 5. A water exportation permit shall be in effect for 124 three years from the date of issuance. The permit holder 125 shall annually report the water use volumes and withdrawal 126 rates to the department in a manner an d on timelines 127 determined by the department. 128 6. The water exportation permit application shall 129 include all water exportation requested by the applicant. 130 The water exportation permit may be approved in whole or in 131 part by the director or the comm ission. This section shall 132 be interpreted to allow one applicant to include multiple 133 water withdrawals for export from various locations within 134 one water exportation permit application. 135 7. A water exportation permit application shall 136 include a designee or agent in the state of Missouri for 137 service of process and to receive other notices. 138 8. A major water user, as defined in section 256.400, 139 may request the department to reevaluate any existing water 140 exportation permit using the criteria under subsection 3 of 141 this section. The department shall create a mechanism for a 142 major water user to submit a request for reevaluation and 143 shall provide the major water user with the director's 144 findings within one hundred and twenty days of the reque st 145 SCS SB 82 6 for reevaluation. After reevaluating the permit, the 146 director shall impose additional conditions necessary for 147 the continued exportation of water outside the state if the 148 director determines that the existing permit is negatively 149 impacting the requesting major water user's beneficial use 150 of his or her water resources. The director's decision to 151 modify or to decline to modify the conditions in an existing 152 permit pursuant to this subsection shall be subject to 153 approval by the Missouri water reso urces commission. 154 9. Nothing in this section shall preclude a person 155 from bringing any constitutional, statutory, or common law 156 claim to vindicate or otherwise defend the person's water 157 rights. A permit issued under this section shall not serve 158 as a defense to any claim brought against a water permit 159 holder for the infringement of water rights. 160 10. If the attorney general receives a complaint that 161 provisions of this section have been violated, or, at the 162 request of the department, the at torney general shall bring 163 an injunctive action or other appropriate action in the name 164 of the people of the state to enforce provisions of this 165 section. Suit may be brought in Cole County, or in any 166 county where the defendant's principal place of bus iness is 167 located or where the withdrawal of water occurred in 168 violation of this section. 169 11. Whenever a state of emergency is declared by the 170 governor under section 44.100 for all, or any part of the 171 state, based on drought conditions, the depart ment shall 172 reevaluate any existing water exportation permit. Any 173 reevaluation completed under this section shall use the 174 criteria under subsection 3 of this section. After 175 reevaluation of the permit is complete, the department shall 176 have the authority to impose additional conditions or revoke 177 SCS SB 82 7 the permit if necessary for the continued exportation of 178 water outside the state if the director determines that the 179 existing permit negatively impacts beneficial use of water 180 resources. The director's decision to modify, revoke, or 181 make no changes to the permit shall be subject to the 182 approval or denial of the Missouri water resources 183 commission. 184 640.408. 1. There is hereby established the "Missouri 1 Water Resources Commission". The commission shall consist 2 of nine members: 3 (1) The director of the department of natural 4 resources or the director's designee; 5 (2) Two members of the house of representatives 6 appointed by the speaker of the house of representatives, 7 with one of the appointees having substantial agricultural 8 knowledge; 9 (3) Two members of the senate appointed by the 10 president pro tempore of the senate, with one of the 11 appointees having substantial agricultural knowledge; 12 (4) Chief of administrat ion of the southeast Missouri 13 water district established under section 256.643 or the 14 chief's designee; 15 (5) The director of the department of agriculture or 16 the director's designee; 17 (6) The chair of the Missouri clean water commission 18 or the chair's designee; 19 (7) The chair of the Missouri soil and water districts 20 commission or the chair's designee. 21 2. Each member of the Missouri water resources 22 commission shall serve without compensation but shall be 23 reimbursed for actual and necessary expenses incurred in the 24 performance of their official duties. 25 SCS SB 82 8 3. Each legislative member of the Missouri water 26 resources commission is entitled to receive the same per 27 diem, mileage, and travel allowances paid to members of the 28 general assembly serving on interim committees. The 29 allowances specified in this subsection shall be paid from 30 the amounts appropriated for that purpose. 31 4. The Missouri water resources commission shall meet 32 at least quarterly to receive general updates by the 33 director of the department of natural resources regarding 34 Missouri water resource availability. They shall, as 35 required by section 640.406, meet in an expeditious manner 36 to fulfill the duties set forth in section 640.406. The 37 commission shall elect a chairman bi -annually and shall have 38 a quorum when at least five members are present. 39 5. No member appointed under subdivision (2) or (3) of 40 subsection 1 of this section shall serve for more than six 41 years total in his or her capacity as a member of the 42 general assembly. 43