A.B. 104
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ASSEMBLY BILL NO. 104–COMMITTEE ON NATURAL RESOURCES
(ON BEHALF OF THE JOINT INTERIM STANDING
COMMITTEE ON NATURAL RESOURCES)
PREFILED JANUARY 17, 2025
____________
Referred to Committee on Natural Resources
SUMMARY—Revises provisions relating to water. (BDR 48-383)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to water; requiring the State Engineer to retire
certain water rights; revising provisions relating to
temporary permits to appropriate groundwater; creating
the Nevada Conservation and Recreation Program;
creating the Account for Retiring Water Rights;
establishing the Nevada Voluntary Water Rights
Retirement Program and the Advisory Committee for the
Nevada Voluntary Water Rights Retirement Program;
requiring the Director of the State Department of
Conservation and Natural Resources to purchase certain
water rights with money from the Account for the purpose
of retiring those water rights; revising provisions relating
to the program to provide grants of money to pay certain
costs related to water conservation and capital
improvements to water systems; revising provisions
relating to a program to pay the costs for property owners
to connect to a community sewerage disposal system
under certain circumstances; revising certain legislative
declarations relating to clean water and water pollution;
authorizing the State Environmental Commission to
establish a water quality standard variance; and providing
other matters properly relating thereto.
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Legislative Counsel’s Digest:
Existing law requires the State Department of Conservation and Natural 1
Resources to make grants to state agencies, local governments, water conservancy 2
districts, conservation districts and certain nonprofit organizations to protect, 3
preserve and obtain the benefits of the property and natural and cultural resources 4
of this State and requires the Director to adopt regulations to make such grants. 5
(Section 2 of Assembly Bill No. 84, chapter 480, Statutes of Nevada 2019, at page 6
2861) Existing regulations establish the Nevada Conservation and Recreation 7
Program to make such grants. (LCB File No. R025-22) Section 8 of this bill creates 8
the Program in statute. Section 8 further provides that the Program consists of a 9
grant program to make such grants and the Nevada Voluntary Water Rights 10
Retirement Program. Section 14 of this bill provides that the Program and the 11
Advisory Committee are within the Department. Section 13 of this bill applies the 12
definitions in existing law relating to the Department to the provisions of sections 13
8-12. 14
Under existing law, any person who wishes to appropriate public waters, or to 15
change the place of diversion, manner of use or place of use of water already 16
appropriated, must apply to the State Engineer for a permit to do so. (NRS 533.325) 17
Existing law further provides that all underground waters within the boundaries of 18
the State are subject to appropriation for beneficial use only under the laws of this 19
State relating to the appropriation and use of water. (NRS 534.020) Section 9 of 20
this bill creates the Account for Retiring Water Rights, to be administered by the 21
Director of the State Department of Conservation and Natural Resources, and 22
requires that the money in the Account only be used for the purchase of water rights 23
for certain purposes. Section 10 of this bill establishes the Nevada Voluntary Water 24
Rights Retirement Program in the Nevada Conservation and Recreation Program, to 25
be administered by the Director, and establishes requirements for the purchase and 26
retirement of water rights. Section 10 also prohibits the Director from accepting 27
applications for the purchase and retirement of water rights after June 30, 2035. 28
Section 4 of this bill: (1) requires the State Engineer to retire water rights 29
purchased by the Nevada Voluntary Water Rights Retirement Program; and (2) 30
prohibits the State Engineer from retiring any water rights from the Program after 31
June 30, 2035. 32
Section 11 of this bill establishes the Advisory Committee for the Nevada 33
Voluntary Water Rights Retirement Program within the Department and requires 34
the Advisory Committee to consult with the Director regarding the provisions of 35
sections 10 and 12 of this bill. 36
Section 12 requires the Director to adopt regulations necessary to carry out the 37
provisions of sections 8-12. Section 24 of this bill requires the Director to adopt 38
these regulations by July 1, 2026. 39
Sections 1-3 of this bill prohibit the appropriation of water for which the rights 40
have been retired pursuant to the Nevada Voluntary Water Rights Retirement 41
Program. 42
Section 25 of this bill provides for the provisions relating to the Account, 43
Advisory Committee and regulations set forth in sections 9, 11, 12 and 14 to expire 44
on June 30, 2035. Sections 15 and 21 of this bill make conforming changes to 45
reflect the expiration of these provisions. 46
Under existing law, the State Engineer may issue temporary permits to 47
appropriate groundwater in certain designated areas which may be revoked under 48
certain circumstances. In areas where these temporary permits have been issued, the 49
State Engineer is required to prohibit the drilling of wells for domestic use if water 50
can be furnished by a public entity presently engaged in furnishing water to the 51
inhabitants of the area. (NRS 534.120) Sections 5, 6, 16 and 22 of this bill revise 52
references to these temporary permits to revocable permits. 53
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Section 23 of this bill deems any such existing and valid temporary permit 54
issued by the State Engineer pursuant to existing law before July 1, 2025, to be a 55
revocable permit. Section 5 also requires the State Engineer to prohibit the drilling 56
of wells for domestic use if a property is within 1,250 feet of a service line of a 57
public entity presently engaged in furnishing water to the inhabitants of the area. 58
Existing law establishes a program to provide grants of money to purveyors of 59
water and eligible recipients to pay for certain costs related to water conservation 60
and capital improvements to water systems. Under this program, eligible recipients 61
may receive grants of money to pay the cost of improvements to conserve water. 62
(NRS 349.981) Section 16 includes in the types of improvements for which an 63
eligible recipient could receive a grant: (1) the removal and replacement of grass 64
with water-efficient landscaping, under certain circumstances; and (2) the 65
permanent retirement of groundwater rights for certain purposes. 66
Existing law requires certain recipients of a grant of money from this program 67
to provide an amount of money determined by the Board for Financing Water 68
Projects that will be used for the same purpose as the grant. (NRS 349.983) Section 69
17 of this bill requires all recipients of a grant of money from this program to 70
provide an amount of money determined by the Board that will be used for the 71
same purpose as the grant. 72
Existing law authorizes a district board of health to create a voluntary financial 73
assistance program to pay 100 percent of the costs for property owners with an 74
existing septic system whose property is served by a municipal water system to 75
connect to the community sewerage disposal system. (NRS 439.3672) Section 18 76
of this bill establishes certain requirements for a property owner to be eligible to 77
receive financial assistance from this program. 78
Existing law sets forth a legislative declaration relating to the right of the 79
people of this State to clean water and certain policies of this State related to this 80
right to clean water. (NRS 445A.305) Section 19 of this bill sets forth the policy of 81
this State to encourage and promote water reuse in an appropriate manner that is 82
consistent with public health. 83
Existing state law requires the State Environmental Commission to establish 84
water quality standards at a level designed to protect and ensure a continuation of 85
the designated beneficial use or uses for the stream segment or other body of 86
surface water that have been determined applicable by the Commission. (NRS 87
445A.520) Existing federal law authorizes a state to establish a variance in the 88
water quality standard from the water quality standard determined to protect and 89
ensure a continuation of the designated beneficial use or uses if the state determines 90
that compliance with this standard is not feasible for certain reasons. (40 C.F.R. § 91
131.14) Section 20 of this bill authorizes the Commission to establish a water 92
quality standard variance in accordance with federal law. 93
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 533.030 is hereby amended to read as follows: 1
533.030 1. Subject to existing rights, and except as otherwise 2
provided in this section and NRS 533.0241, 533.027 and 533.028, 3
and section 4 of this act, all water may be appropriated for 4
beneficial use as provided in this chapter and not otherwise. 5
2. The use of water, from any stream system as provided in this 6
chapter and from underground water as provided in NRS 534.080, 7
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for any recreational purpose, or the use of water from the Muddy 1
River or the Virgin River to create any developed shortage supply or 2
intentionally created surplus, is hereby declared to be a beneficial 3
use. As used in this subsection: 4
(a) “Developed shortage supply” has the meaning ascribed to it 5
in Volume 73 of the Federal Register at page 19884, April 11, 2008, 6
and any subsequent amendment thereto. 7
(b) “Intentionally created surplus” has the meaning ascribed to it 8
in Volume 73 of the Federal Register at page 19884, April 11, 2008, 9
and any subsequent amendment thereto. 10
3. Except as otherwise provided in subsection 4, in any county 11
whose population is 700,000 or more: 12
(a) The board of county commissioners may prohibit or restrict 13
by ordinance the use of water and effluent for recreational purposes 14
in any artificially created lake or stream located within the 15
unincorporated areas of the county. 16
(b) The governing body of a city may prohibit or restrict by 17
ordinance the use of water and effluent for recreational purposes in 18
any artificially created lake or stream located within the boundaries 19
of the city. 20
4. In any county whose population is 700,000 or more, the 21
provisions of subsection 1 and of any ordinance adopted pursuant to 22
subsection 3 do not apply to: 23
(a) Water stored in an artificially created reservoir for use in 24
flood control, in meeting peak water demands or for purposes 25
relating to the treatment of sewage; 26
(b) Water used in a mining reclamation project; or 27
(c) A body of water located in a recreational facility that is open 28
to the public and owned or operated by the United States or the State 29
of Nevada. 30
Sec. 2. NRS 533.370 is hereby amended to read as follows: 31
533.370 1. Except as otherwise provided in this section and 32
NRS 533.0241, 533.345, 533.371, 533.372 and 533.503, and 33
section 4 of this act, the State Engineer shall approve an application 34
submitted in proper form which contemplates the application of 35
water to beneficial use if: 36
(a) The application is accompanied by the prescribed fees; 37
(b) The proposed use or change, if within an irrigation district, 38
does not adversely affect the cost of water for other holders of water 39
rights in the district or lessen the efficiency of the district in its 40
delivery or use of water; and 41
(c) The applicant provides proof satisfactory to the State 42
Engineer of the applicant’s: 43
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(1) Intention in good faith to construct any work necessary to 1
apply the water to the intended beneficial use with reasonable 2
diligence; and 3
(2) Financial ability and reasonable expectation actually to 4
construct the work and apply the water to the intended beneficial use 5
with reasonable diligence. 6
2. Except as otherwise provided in subsection 10, [where there] 7
the State Engineer shall reject an application and refuse to issue 8
the requested permit if: 9
(a) There is no unappropriated water in the proposed source of 10
supply [, where the] ; 11
(b) The groundwater that has not been committed for use has 12
been reserved pursuant to NRS 533.0241 ; 13
(c) The groundwater rights have been retired pursuant to 14
section 4 of this act; or [where its] 15
(d) The proposed use or change conflicts with existing rights or 16
with protectable interests in existing domestic wells as set forth in 17
NRS 533.024 [,] or threatens to prove detrimental to the public 18
interest . [, the State Engineer shall reject the application and refuse 19
to issue the requested permit.] 20
If a previous application for a similar use of water within the 21
same basin has been rejected on [those grounds,] any such ground, 22
the new application may be denied without publication. 23
3. In addition to the criteria set forth in subsections 1 and 2, in 24
determining whether an application for an interbasin transfer of 25
groundwater must be rejected pursuant to this section, the State 26
Engineer shall consider: 27
(a) Whether the applicant has justified the need to import the 28
water from another basin; 29
(b) If the State Engineer determines that a plan for conservation 30
of water is advisable for the basin into which the water is to be 31
imported, whether the applicant has demonstrated that such a plan 32
has been adopted and is being effectively carried out; 33
(c) Whether the proposed action is environmentally sound as it 34
relates to the basin from which the water is exported; 35
(d) Whether the proposed action is an appropriate long-term use 36
which will not unduly limit the future growth and development in 37
the basin from which the water is exported; and 38
(e) Any other factor the State Engineer determines to be 39
relevant. 40
4. Except as otherwise provided in this subsection and 41
subsections 6 and 10 and NRS 533.365, the State Engineer shall 42
approve or reject each application within 2 years after the final date 43
for filing a protest. The State Engineer may postpone action: 44
(a) Upon written authorization to do so by the applicant. 45
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(b) If an application is protested. 1
(c) If the purpose for which the application was made is 2
municipal use. 3
(d) In areas where studies of water supplies have been 4
determined to be necessary by the State Engineer pursuant to 5
NRS 533.368. 6
(e) Where court actions or adjudications are pending, which may 7
affect the outcome of the application. 8
(f) In areas in which adjudication of vested water rights is 9
deemed necessary by the State Engineer. 10
(g) On an application for a permit to change a vested water right 11
in a basin where vested water rights have not been adjudicated. 12
(h) Where authorized entry to any land needed to use the water 13
for which the application is submitted is required from a 14
governmental agency. 15
(i) On an application for which the State Engineer has required 16
additional information pursuant to NRS 533.375. 17
5. If the State Engineer does not act upon an application in 18
accordance with subsections 4 and 6, the application remains active 19
until approved or rejected by the State Engineer. 20
6. Except as otherwise provided in this subsection and 21
subsection 10, the State Engineer shall approve or reject, within 6 22
months after the final date for filing a protest, an application filed to 23
change the point of diversion of water already appropriated when 24
the existing and proposed points of diversion are on the same 25
property for which the water has already been appropriated under 26
the existing water right or the proposed point of diversion is on real 27
property that is proven to be owned by the applicant and is 28
contiguous to the place of use of the existing water right. The State 29
Engineer may postpone action on the application pursuant to 30
subsection 4. 31
7. If the State Engineer has not approved, rejected or held a 32
hearing on an application within 7 years after the final date for filing 33
a protest, the State Engineer shall cause notice of the application to 34
be republished and reposted pursuant to NRS 533.360 immediately 35
preceding the time at which the State Engineer is ready to approve 36
or reject the application. The cost of the republication must be paid 37
by the applicant. After such republication and reposting, a protest 38
may be filed in accordance with NRS 533.365. 39
8. If a hearing is held regarding an application, the decision of 40
the State Engineer must be in writing and include findings of fact, 41
conclusions of law and a statement of the underlying facts 42
supporting the findings of fact. The written decision may take the 43
form of a transcription of an oral ruling. The rejection or approval of 44
an application must be endorsed on a copy of the original 45
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application, and a record must be made of the endorsement in the 1
records of the State Engineer. The copy of the application so 2
endorsed must be returned to the applicant. Except as otherwise 3
provided in subsection 11, if the application is approved, the 4
applicant may, on receipt thereof, proceed with the construction of 5
the necessary works and take all steps required to apply the water to 6
beneficial use and to perfect the proposed appropriation. If the 7
application is rejected, the applicant may take no steps toward the 8
prosecution of the proposed work or the diversion and use of 9
the public water while the rejection continues in force. 10
9. If a person is the successor in interest of an owner of a water 11
right or an owner of real property upon which a domestic well is 12
located and if the former owner of the water right or real property on 13
which a domestic well is located had previously filed a written 14
protest against the granting of an application, the successor in 15
interest must be allowed to pursue that protest in the same manner 16
as if the successor in interest were the former owner whose interest 17
he or she succeeded. If the successor in interest wishes to pursue the 18
protest, the successor in interest must notify the State Engineer in a 19
timely manner on a form provided by the State Engineer. 20
10. The provisions of subsections 1 to 9, inclusive, do not 21
apply to an application for an environmental permit or a temporary 22
permit issued pursuant to NRS 533.436 or 533.504. 23
11. The provisions of subsection 8 do not authorize the 24
recipient of an approved application to use any state land 25
administered by the Division of State Lands of the State Department 26
of Conservation and Natural Resources without the appropriate 27
authorization for that use from the State Land Registrar. 28
12. As used in this section, “domestic well” has the meaning 29
ascribed to it in NRS 534.350. 30
Sec. 3. NRS 533.371 is hereby amended to read as follows: 31
533.371 The State Engineer shall reject the application and 32
refuse to issue a permit to appropriate water for a specified period if 33
the State Engineer determines that: 34
1. The application is incomplete; 35
2. The prescribed fees have not been paid; 36
3. The proposed use is not temporary; 37
4. There is no water available from the proposed source of 38
supply without exceeding the perennial yield or safe yield of that 39
source; 40
5. The groundwater that has not been committed for use from 41
the proposed source of supply has been reserved pursuant to 42
NRS 533.0241; 43
6. The groundwater rights have been retired pursuant to 44
section 4 of this act; 45
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7. The proposed use conflicts with existing rights; or 1
[7.] 8. The proposed use threatens to prove detrimental to the 2
public interest. 3
Sec. 4. Chapter 534 of NRS is hereby amended by adding 4
thereto a new section to read as follows: 5
1. The State Engineer shall retire all water rights purchased 6
by the Nevada Voluntary Water Rights Retirement Program 7
pursuant to section 10 of this act using any appropriate 8
mechanism, as determined by the State Engineer, and preclude 9
that groundwater from appropriation. Groundwater that has been 10
retired pursuant to this section is not available for any use and 11
shall be deemed to be retired in the source in perpetuity. 12
2. The State Engineer shall not retire any water rights 13
pursuant to subsection 1 after June 30, 2035. 14
Sec. 5. NRS 534.120 is hereby amended to read as follows: 15
534.120 1. Within an area that has been designated by the 16
State Engineer, as provided for in this chapter, where, in the 17
judgment of the State Engineer, the groundwater basin is being 18
depleted, the State Engineer in his or her administrative capacity 19
may make such rules, regulations and orders as are deemed essential 20
for the welfare of the area involved. 21
2. In the interest of public welfare, the State Engineer is 22
authorized and directed to designate preferred uses of water within 23
the respective areas so designated by the State Engineer and from 24
which the groundwater is being depleted, and in acting on 25
applications to appropriate groundwater, the State Engineer may 26
designate such preferred uses in different categories with respect to 27
the particular areas involved within the following limits: 28
(a) Domestic, municipal, quasi-municipal, industrial, irrigation, 29
mining and stock-watering uses; and 30
(b) Any uses for which a county, city, town, public water district 31
or public water company furnishes the water. 32
3. The State Engineer may only issue [temporary] revocable 33
permits to appropriate groundwater if water cannot be furnished by 34
a public entity such as a water district or municipality presently 35
engaged in furnishing water to the inhabitants thereof. Such 36
[temporary] revocable permits can be limited as to time and may be 37
revoked if and when: 38
(a) Water can be furnished by a public entity such as a water 39
district or a municipality presently engaged in furnishing water to 40
the inhabitants thereof; and 41
(b) The property served is within 1,250 feet of the water 42
furnished pursuant to paragraph (a). 43
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The holder of a [temporary] revocable permit that is revoked 1
pursuant to this subsection must be given 730 days from the date of 2
revocation to connect to the public entity furnishing water. 3
4. In a basin designated pursuant to NRS 534.030, the State 4
Engineer may: 5
(a) Deny applications to appropriate groundwater for any use in 6
areas served by a public entity such as a water district or a 7
municipality presently engaged in furnishing water to the 8
inhabitants of the area. 9
(b) Limit the depth of domestic wells. 10
(c) Prohibit the drilling of wells for domestic use in areas where 11
water can be furnished by a public entity such as a water district or a 12
municipality presently engaged in furnishing water to the 13
inhabitants thereof. 14
(d) In connection with the approval of a parcel map in which 15
any parcel is proposed to be served by a domestic well, require the 16
dedication to a city or county or a designee of a city or county, or 17
require a relinquishment to the State Engineer, of any right to 18
appropriate water required by the State Engineer to ensure a 19
sufficient supply of water for each of those parcels, unless the 20
dedication of the right to appropriate water is required by a local 21
ordinance. 22
5. In an area in which revocable permits have been issued 23
[temporary permits] pursuant to subsection 3, the State Engineer: 24
(a) Shall: 25
(1) Deny any applications to appropriate groundwater for use 26
in areas served by a public entity such as a water district or a 27
municipality presently engaged in furnishing water; 28
(2) Limit the depth of a domestic well; or 29
(3) Prohibit the drilling of wells for domestic use [in areas 30
where water can be furnished by] if a property is within 1,250 feet 31
of a service line of a public entity such as a water district or a 32
municipality presently engaged in furnishing water to the 33
inhabitants; and 34
(b) May prohibit repairs from being made to a domestic well, 35
and may require the person proposing to deepen or repair the 36
domestic well to obtain water from a public entity such as a water 37
district or a municipality engaged in furnishing water to the 38
inhabitants of the designated area, only if: 39
(1) The distance from the property line of any parcel served 40
by the well to the pipes and other appurtenances of the proposed 41
source of water to which the property will be connected is not more 42
than 180 feet; and 43
(2) The deepening or repair of the well would require the use 44
of a well-drilling rig. 45
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6. For good and sufficient reasons, the State Engineer may 1
exempt the provisions of this section with respect to public housing 2
authorities. 3
7. The provisions of this section do not prohibit the State 4
Engineer from revoking a [temporary] revocable permit issued 5
pursuant to this section if any parcel served by a well pursuant to the 6
[temporary] revocable permit is currently obtaining water from a 7
public entity such as a water district or a municipality engaged in 8
furnishing water to the inhabitants of the area. 9
Sec. 6. NRS 534.125 is hereby amended to read as follows: 10
534.125 If the State Engineer issues a [temporary] revocable 11
permit pursuant to NRS 534.120 or if a well for domestic use is 12
drilled in an area in which the State Engineer has issued such a 13
[temporary] revocable permit, the State Engineer shall file a notice 14
with the county recorder of the county in which the permit is issued 15
or the well is drilled. The notice must include a statement indicating 16
that, if and when water can be furnished by an entity such as a water 17
district or a municipality engaged in furnishing water to the 18
inhabitants of the designated area: 19
1. A [temporary] revocable permit may be revoked; 20
2. The owner of a domestic well may be prohibited from 21
deepening or repairing the well; and 22
3. The owner of the property served by the well may be 23
required to connect to this water source at his or her own expense. 24
Sec. 7. Chapter 232 of NRS is hereby amended by adding 25
thereto the provisions set forth as sections 8 to 12, inclusive, of this 26
act. 27
Sec. 8. 1. The Nevada Conservation and Recreation 28
Program is hereby created within the Department to protect, 29
preserve and obtain the benefits of the property and natural and 30
cultural resources of this State. The Director shall administer the 31
Program. 32
2. The Nevada Conservation and Recreation Program 33
consists of: 34
(a) A grant program to make grants in accordance with 35
subsections 8, 9 and 10 of section 2 of chapter 480, Statutes of 36
Nevada 2019, at page 2861; and 37
(b) The Nevada Voluntary Water Rights Retirement Program 38
established by section 10 of this act. 39
3. The Director may adopt regulations to carry out the 40
provisions of this section. 41
Sec. 9. 1. The Account for Retiring Water Rights is hereby 42
created in the State General Fund. 43
2. The Account for Retiring Water Rights must be 44
administered by the Director in accordance with the Nevada 45
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Voluntary Water Rights Retirement Program established by 1
section 10 of this act. In addition to any direct legislative 2
appropriation, the Director may apply for and accept any gift, 3
donation, bequest, grant, federal money or other source of money 4
for deposit in the Account for Retiring Water Rights. 5
3. The money in the Account for Retiring Water Rights must 6
only be used for administering the Nevada Voluntary Water 7
Rights Retirement Program established by section 10 of this act, to 8
purchase water rights for retirement pursuant to section 10 of this 9
act and to provide matching money required as a condition of 10
accepting any source of money that would result in the retirement 11
of water rights pursuant to sections 4 and 10 of this act. 12
4. The money in the Account for Retiring Water Rights or 13
any portion of the money in the Account for Retiring Water Rights 14
may be invested or reinvested in accordance with the provisions of 15
chapter 355 of NRS. The proceeds of such investments and the 16
interest and income earned on the money in the Account for 17
Retiring Water Rights, after deducting any applicable charges, 18
must be credited to the Account for Retiring Water Rights. 19
5. Any money remaining in the Account for Retiring Water 20
Rights at the end of a fiscal year does not revert to the State 21
General Fund, and the balance in the Account for Retiring Water 22
Rights must be carried forward to the next fiscal year. 23
6. The Director may enter into an agreement with a public or 24
private entity to apply for, obtain or manage any money 25
contributed to the Account for Retiring Water Rights. 26
Sec. 10. 1. The Nevada Voluntary Water Rights Retirement 27
Program is hereby established in the Nevada Conservation and 28
Recreation Program created by section 8 of this act to purchase 29
and retire water rights from willing sellers in order to: 30
(a) Protect the natural resources of this State; 31
(b) Bring groundwater basins that have been overpumped back 32
in hydrographic balance; 33
(c) Address conflicts with existing rights or with protectable 34
interests in existing domestic wells; and 35
(d) Prevent overappropriated basins from becoming 36
overpumped. 37
2. The Nevada Voluntary Water Rights Retirement Program 38
must be administered by the Director. In administering the 39
Program, the Director shall, to the extent money is available in the 40
Account for Retiring Water Rights created by section 9 of this act, 41
identify and purchase water rights for retirement by the State 42
Engineer pursuant to section 4 of this act from persons willing to 43
retire those water rights according to the following order of 44
priority: 45
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(a) Groundwater basins where groundwater withdrawals 1
currently exceed the available supply of water. 2
(b) Groundwater basins where the retirement of water rights 3
meets the purposes set forth in subsection 1. 4
3. When sufficient money is available in the Account for 5
Retiring Water Rights created by section 9 of this act, the Director 6
may accept applications for the purchase and retirement of water 7
rights in accordance with the regulations adopted by the Director 8
pursuant to section 12 of this act. 9
4. The Director may not accept applications for the purchase 10
and retirement of water rights after June 30, 2035. 11
Sec. 11. 1. The Advisory Committee for the Nevada 12
Voluntary Water Rights Retirement Program established by 13
section 10 of this act is hereby created within the Department. The 14
Advisory Committee consists of: 15
(a) The following voting members appointed by the Director: 16
(1) Two members who represent agricultural interests; 17
(2) Two members who represent a political subdivision of 18
the State of Nevada that manages a regional water authority in a 19
county whose population is 100,000 or more; 20
(3) One member who represents a regional water authority 21
that serves a county whose population is less than 100,000; 22
(4) One member who represents a nonprofit conservation 23
organization; and 24
(5) One member who represents mining interests; and 25
(b) The following ex officio nonvoting members: 26
(1) The State Engineer or his or her designee; and 27
(2) The State Land Registrar or his or her designee. 28
2. The Advisory Committee shall consult with the Director 29
on: 30
(a) The adoption of the regulations required by section 12 of 31
this act; and 32
(b) The administration of the Nevada Voluntary Water Rights 33
Retirement Program established by section 10 of this act. 34
3. The voting members of the Advisory Committee serve 35
without compensation and are not entitled to receive the per diem 36
allowance or travel expenses provided for state officers and 37
employees generally. 38
Sec. 12. 1. The Director shall adopt such regulations as are 39
necessary to carry out the provisions of sections 8 to 12, inclusive, 40
of this act, which must include, without limitation: 41
(a) The process for accepting applications for the purchase 42
and retirement of water rights pursuant to section 10 of this act; 43
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(b) The manner in which the valuation of water rights will be 1
conducted for the Nevada Voluntary Water Rights Retirement 2
Program established by section 10 of this act; 3
(c) Provisions to ensure that the purchase and retirement of 4
water rights is consistent with the purposes of the Nevada 5
Voluntary Water Rights Retirement Program, including, without 6
limitation, the purposes set forth in section 10 of this act; 7
(d) Provisions to ensure compliance with any requirements or 8
conditions of any gift, donation, bequest, grant, federal money or 9
other source of money in administering the Account for Retiring 10
Water Rights created by section 9 of this act; and 11
(e) The methods of identifying and purchasing water rights by 12
the Nevada Voluntary Water Rights Retirement Program pursuant 13
to section 10 of this act which must be consistent with the 14
mechanisms by which the water rights will be retired by the State 15
Engineer in accordance with section 4 of this act. 16
2. The Director shall consult with the Advisory Committee for 17
the Nevada Voluntary Water Rights Retirement Program created 18
by section 11 of this act in adopting regulations pursuant to this 19
section. 20
Sec. 13. NRS 232.010 is hereby amended to read as follows: 21
232.010 As used in NRS 232.010 to 232.162, inclusive [:] , 22
and sections 8 to 12, inclusive, of this act. 23
1. “Department” means the State Department of Conservation 24
and Natural Resources. 25
2. “Director” means the Director of the State Department of 26
Conservation and Natural Resources. 27
Sec. 14. NRS 232.090 is hereby amended to read as follows: 28
232.090 1. The Department consists of the Director and the 29
following: 30
(a) The Division of Water Resources. 31
(b) The Division of State Lands. 32
(c) The Division of Forestry. 33
(d) The Division of State Parks. 34
(e) The Division of Environmental Protection. 35
(f) The Office of Historic Preservation. 36
(g) The Division of Outdoor Recreation. 37
(h) The Division of Natural Heritage. 38
(i) Such other divisions as the Director may from time to time 39
establish. 40
2. The State Environmental Commission, the State 41
Conservation Commission, the Commission for Cultural Centers 42
and Historic Preservation, the Commission on Off-Highway 43
Vehicles, the Conservation Districts Program, the Sagebrush 44
Ecosystem Council , the Nevada Conservation and Recreation 45
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Program, the Advisory Committee for the Nevada Voluntary 1
Water Rights Retirement Program and the Board to Review Claims 2
are within the Department. 3
Sec. 15. NRS 232.090 is hereby amended to read as follows: 4
232.090 1. The Department consists of the Director and the 5
following: 6
(a) The Division of Water Resources. 7
(b) The Division of State Lands. 8
(c) The Division of Forestry. 9
(d) The Division of State Parks. 10
(e) The Division of Environmental Protection. 11
(f) The Office of Historic Preservation. 12
(g) The Division of Outdoor Recreation. 13
(h) The Division of Natural Heritage. 14
(i) Such other divisions as the Director may from time to time 15
establish. 16
2. The State Environmental Commission, the State 17
Conservation Commission, the Commission for Cultural Centers 18
and Historic Preservation, the Commission on Off-Highway 19
Vehicles, the Conservation Districts Program, the Sagebrush 20
Ecosystem Council, the Nevada Conservation and Recreation 21
Program [, the Advisory Committee for the Nevada Voluntary 22
Water Rights Retirement Program] and the Board to Review Claims 23
are within the Department. 24
Sec. 16. NRS 349.981 is hereby amended to read as follows: 25
349.981 1. There is hereby established a program to provide 26
grants of money to: 27
(a) A purveyor of water to pay for costs of capital improvements 28
to publicly owned community water systems and publicly owned 29
nontransient water systems required or made necessary by the State 30
Environmental Commission pursuant to NRS 445A.800 to 31
445A.955, inclusive, or made necessary by the Safe Drinking Water 32
Act, 42 U.S.C. §§ 300f et seq., and the regulations adopted pursuant 33
thereto. 34
(b) An eligible recipient to pay for the cost of improvements to 35
conserve water, including, without limitation: 36
(1) Piping or lining of an irrigation canal; 37
(2) [Recovery] Recovering or recycling [of] wastewater or 38
tailwater; 39
(3) Scheduling of irrigation; 40
(4) [Measurement] Measuring or metering [of] the use of 41
water; 42
(5) Improving the efficiency of irrigation operations; [and] 43
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(6) Improving the efficiency of the operation of a facility for 1
the storage of water, including, without limitation, efficiency in 2
diverting water to such a facility [.] ; 3
(7) Removing grass and replacing grass with water-efficient 4
landscaping, if the removal of the grass is secured by a 5
conservation easement; and 6
(8) Permanently retiring groundwater rights pursuant to 7
section 4 of this act to: 8
(I) Protect the natural resources of this State; 9
(II) Bring groundwater basins that have been 10
overpumped back in hydrographic balance; 11
(III) Address conflicts with existing rights or with 12
protectable interests in existing domestic wells; or 13
(IV) Prevent overappropriated basins from becoming 14
overpumped. 15
(c) An eligible recipient to pay the following costs associated 16
with connecting a domestic well or well with a [temporary] 17
revocable permit to a municipal water system, if the well was in 18
existence on or before October 1, 1999, and the well is located in an 19
area designated by the State Engineer pursuant to NRS 534.120 as 20
an area where the groundwater basin is being depleted: 21
(1) Any local or regional fee for connection to the municipal 22
water system. 23
(2) The cost of any capital improvement that is required to 24
comply with a decision or regulation of the State Engineer. 25
(d) An eligible recipient to pay the following costs associated 26
with abandoning an individual sewage disposal system and 27
connecting the property formerly served by the abandoned 28
individual sewage disposal system to a community sewage disposal 29
system, if the Division of Environmental Protection requires the 30
individual sewage disposal system to be abandoned and the property 31
upon which the individual sewage disposal system was located to be 32
connected to a community sewage disposal system pursuant to the 33
provisions of NRS 445A.300 to 445A.730, inclusive, or any 34
regulations adopted pursuant thereto: 35
(1) Any local or regional fee for connection to the 36
community sewage disposal system. 37
(2) The cost of any capital improvement that is required to 38
comply with a statute of this State or a decision, directive, order or 39
regulation of the Division of Environmental Protection. 40
(e) An eligible recipient to pay the following costs associated 41
with abandoning an individual sewage disposal system and 42
connecting the property formerly served by the abandoned 43
individual sewage disposal system to a community sewage disposal 44
system, if the Division of Environmental Protection approves a 45
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program or project for the protection of groundwater quality 1
developed by the State or a local government that provides for the 2
abandonment of an individual sewage disposal system and the 3
connection of the property upon which the individual sewage 4
disposal system was located to a community sewage disposal 5
system pursuant to the provisions of NRS 445A.300 to 445A.730, 6
inclusive, or any regulations adopted pursuant thereto: 7
(1) Any local or regional fee for connection to the 8
community sewage disposal system. 9
(2) The cost of any capital improvement that is required to 10
comply with a statute of this State or a decision, directive, order or 11
regulation of the Division of Environmental Protection. 12
(f) An eligible recipient to pay the following costs associated 13
with plugging and abandoning a well and connecting the property 14
formerly served by the well to a municipal water system, if the State 15
Engineer requires the plugging of the well pursuant to subsection 3 16
of NRS 534.180 or if the quality of the water of the well fails to 17
comply with the standards of the Safe Drinking Water Act, 42 18
U.S.C. §§ 300f et seq., and the regulations adopted pursuant thereto: 19
(1) Any local or regional fee for connection to the municipal 20
water system. 21
(2) The cost of any capital improvement that is required for 22
the water quality in the area where the well is located to comply 23
with the standards of the Safe Drinking Water Act, 42 U.S.C. §§ 24
300f et seq., and the regulations adopted pursuant thereto. 25
(3) The cost of plugging and abandoning a well and 26
connecting the property formerly served by the well to a municipal 27
water system. 28
(g) A governing body to pay the costs associated with 29
developing and maintaining a water resource plan. 30
2. Except as otherwise provided in NRS 349.983, the 31
determination of who is to receive a grant is solely within the 32
discretion of the Board. 33
3. For any construction work paid for in whole or in part by a 34
grant provided pursuant to this section to a nonprofit association or 35
nonprofit cooperative corporation that is an eligible recipient, the 36
provisions of NRS 338.013 to 338.090, inclusive, apply to: 37
(a) Require the nonprofit association or nonprofit cooperative 38
corporation to include in the contract for the construction work the 39
contractual provisions and stipulations that are required to be 40
included in a contract for a public work pursuant to those statutory 41
provisions. 42
(b) Require the nonprofit association or nonprofit cooperative 43
corporation to comply with those statutory provisions in the same 44
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manner as if it was a public body that had undertaken the project or 1
had awarded the contract. 2
(c) Require the contractor who is awarded the contract for the 3
construction work, or a subcontractor on the project, to comply with 4
those statutory provisions in the same manner as if he or she was a 5
contractor or subcontractor, as applicable, engaged on a public 6
work. 7
4. As used in this section: 8
(a) “Eligible recipient” means: 9
(1) A political subdivision of this State, including, without 10
limitation, a city, county, unincorporated town, water authority, 11
conservation district, irrigation district, water district or water 12
conservancy district. 13
(2) A nonprofit association or nonprofit cooperative 14
corporation that provides water service only to its members. 15
(b) “Governing body” has the meaning ascribed to it in 16
NRS 278.015. 17
(c) “Water resource plan” means a water resource plan created 18
pursuant to NRS 278.0228. 19
Sec. 17. NRS 349.983 is hereby amended to read as follows: 20
349.983 1. Grants may be made pursuant to paragraph (a) of 21
subsection 1 of NRS 349.981 only for the Lincoln County Water 22
District and those community and nontransient water systems that: 23
(a) Were in existence on January 1, 1995; and 24
(b) Are currently publicly owned. 25
2. In making its determination of which purveyors of water are 26
to receive grants pursuant to paragraph (a) of subsection 1 of NRS 27
349.981, the Board shall give preference to those purveyors of water 28
whose public water systems regularly serve fewer than 6,000 29
persons. 30
3. Each recipient of a grant pursuant to [paragraph (a) of 31
subsection 1 of] NRS 349.981 shall provide an amount of money for 32
the same purpose. The Board shall develop a scale to be used to 33
determine that amount, but the recipient must not be required to 34
provide an amount less than 15 percent or more than 75 percent of 35
the total cost of the project for which the grant is awarded. The scale 36
must be based upon the average household income of the customers 37
of the recipient, and provide adjustments for the demonstrated 38
economic hardship of those customers, the existence of an imminent 39
risk to public health and any other factor that the Board determines 40
to be relevant. 41
Sec. 18. NRS 439.3672 is hereby amended to read as follows: 42
439.3672 1. The district board of health may create a 43
voluntary financial assistance program to pay 100 percent of the 44
cost for [a] an eligible property owner with an existing septic 45
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system whose property is served by a municipal water system to 1
abandon the septic system and connect to the community sewerage 2
disposal system. 3
2. Upon an affirmative vote of two-thirds of all the members of 4
the district board of health, the district board of health may impose a 5
voluntary annual fee on property owners with existing septic 6
systems whose property is served by a municipal water system to 7
carry out the provisions of this section. 8
3. If the district board of health imposes a voluntary annual fee 9
pursuant to subsection 2: 10
(a) The fee must not exceed the annual sewer rate charged by 11
the largest community sewerage disposal system in the county or 12
counties, as applicable, in which the district board of health has been 13
established; and 14
(b) The district board of health shall not provide financial 15
assistance to any property owner who does not pay the voluntary 16
annual fee [.] in accordance with the provisions of paragraph (b) 17
of subsection 4. 18
4. A property owner is eligible to receive financial assistance 19
from the program if the property owner: 20
(a) Has an existing septic system whose property is served by a 21
municipal water system; and 22
(b) Pays the voluntary annual fee: 23
(1) Every year that the fee is imposed by the district board 24
of health pursuant to subsection 3; or 25
(2) If a property owner has not paid the fee in every year 26
that the fee was imposed, pays the balance for all previously 27
imposed fees and the fee for the current year, if imposed by the 28
district board of health. 29
5. As used in this section: 30
(a) “Community sewerage disposal system” means a public 31
system of sewage disposal which is operated for the benefit of a 32
county, city, district or other political subdivision of this State. 33
(b) “Septic system” means a well that is used to place sanitary 34
waste below the surface of the ground that is typically composed of 35
a septic tank and a subsurface fluid distribution or disposal system. 36
The term includes a residential individual system for disposal of 37
sewage. 38
Sec. 19. NRS 445A.305 is hereby amended to read as follows: 39
445A.305 1. The Legislature finds that pollution of water in 40
this State: 41
(a) Adversely affects public health and welfare; 42
(b) Is harmful to wildlife, fish and other aquatic life; and 43
(c) Impairs domestic, agricultural, industrial, recreational and 44
other beneficial uses of water. 45
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2. The Legislature declares that the people of this State have a 1
right to clean water and it is the policy of this State and the purpose 2
of NRS 445A.300 to 445A.730, inclusive: 3
(a) To maintain the quality of the waters of the State consistent 4
with the public health and enjoyment, the propagation and 5
protection of terrestrial and aquatic life, the operation of existing 6
industries, the pursuit of agriculture, and the economic development 7
of the State; 8
(b) To mitigate the degradation of the waters of the State; [and] 9
(c) To encourage and promote the use of methods of waste 10
collection and pollution control for all significant sources of water 11
pollution (including point and diffuse sources) [.] ; and 12
(d) To encourage and promote traditional and emerging 13
methods of water reuse, including, without limitation, credits for 14
water that is returned to the source, known as “return-flow 15
credits,” agriculture and other irrigation, direct potable reuse and 16
indirect potable reuse in an appropriate manner that is consistent 17
with the public health. 18
Sec. 20. NRS 445A.520 is hereby amended to read as follows: 19
445A.520 1. [The] Except as otherwise provided in 20
subsection 4, the Commission shall establish water quality 21
standards at a level designed to protect and ensure a continuation of 22
the designated beneficial use or uses which the Commission has 23
determined to be applicable to each stream segment or other body of 24
surface water in the State. 25
2. [The] Except as otherwise provided in subsection 4, the 26
Commission shall base its water quality standards on water quality 27
criteria which numerically or descriptively define the conditions 28
necessary to maintain the designated beneficial use or uses of the 29
water. The water quality standards must reflect water quality criteria 30
which define the conditions necessary to support, protect and allow 31
the propagation of fish, shellfish and other wildlife and to provide 32
for recreation in and on the water if these objectives are reasonably 33
attainable. 34
3. The Commission may establish water quality standards for 35
individual segments of streams or for other bodies of surface water 36
which vary from standards based on recognized criteria if such 37
variations are justified by the circumstances pertaining to particular 38
places, as determined by biological monitoring or other appropriate 39
studies. 40
4. The Commission may establish a water quality standard 41
variance subject to the review and approval or disapproval of the 42
United States Environmental Protection Agency in accordance 43
with 40 C.F.R. § 131.14. A water quality standard variance 44
adopted pursuant to this subsection must: 45
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(a) Reflect the highest attainable condition of the stream 1
segment or other body of surface water that is achievable during 2
the term of the water quality standard variance; and 3
(b) Establish a time-limited designated use and criteria for 4
specific pollutants or water quality parameters during the term of 5
the water quality standard variance. 6
5. As used in this section, “water quality standards variance” 7
has the meaning ascribed to it in 40 C.F.R. § 131.3(o). 8
Sec. 21. Section 10 of this act is hereby amended to read as 9
follows: 10
Sec. 10. 1. The Nevada Voluntary Water Rights 11
Retirement Program is hereby established in the Nevada 12
Conservation and Recreation Program created by section 8 of 13
this act to identify and purchase for retirement water rights 14
from willing sellers in order to: 15
(a) Protect the natural resources of this State; 16
(b) Bring groundwater basins that have been overpumped 17
back in hydrographic balance; 18
(c) Address conflicts with existing rights or with 19
protectable interests in existing domestic wells; and 20
(d) Prevent overappropriated basins from becoming 21
overpumped. 22
2. The Nevada Voluntary Water Rights Retirement 23
Program must be administered by the Director. [In 24
administering the Program, the Director shall, to the extent 25
money is available in the Account for Retiring Water Rights 26
created by section 9 of this act, identify and purchase water 27
rights for retirement by the State Engineer pursuant to section 28
4 of this act from persons willing to retire those water rights 29
according to the following order of priority: 30
(a) Groundwater basins where groundwater withdrawals 31
currently exceed the available supply of water. 32
(b) Groundwater basins where the retirement of water 33
rights meets the purposes set forth in subsection 1.] 34
3. [When sufficient money is available in the Account 35
for Retiring Water Rights created by section 9 of this act, the 36
Director may accept applications for the retirement of water 37
rights in accordance with the regulations adopted by the 38
Director pursuant to section 12 of this act. 39
4.] The Director may not accept applications for the 40
purchase and retirement of water rights after June 30, 2035. 41
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Sec. 22. Section 14 of the Southern Nevada Water Authority 1
Act, being chapter 572, Statutes of Nevada 1997, as last amended by 2
chapter 113, Statutes of Nevada 2003, at page 624, is hereby 3
amended to read as follows: 4
Sec. 14. Money collected pursuant to section 13 of this 5
act must be used to: 6
1. Develop and distribute information promoting 7
education and the conservation of groundwater in the Basin. 8
2. Perform such comprehensive inventories of wells of 9
all types located within the basin as may be needed. Such 10
inventories must be done in conjunction with the State 11
Engineer. 12
3. Prepare, for use by the Advisory Committee, such 13
cost-benefit analyses relating to the recharge and recovery or 14
underground storage and recovery of water in the Basin as 15
may be needed. 16
4. Develop recommendations for additional activities for 17
the management of the Basin and the protection of the aquifer 18
in which the Basin is located, and to conduct such activities if 19
the activities have been approved by the Board of Directors. 20
5. Develop and implement a program to provide 21
financial assistance to pay at least 50 percent but not more 22
than 85 percent of the cost of the local and regional 23
connection fees and capital improvements necessary for 24
making the connection to the proposed source of water, as 25
determined by the Southern Nevada Water Authority, to 26
owners of real property served by: 27
(a) Domestic wells; or 28
(b) Wells that are operated pursuant to [temporary] 29
revocable permits, 30
who are required by the State Engineer to connect the real 31
property to a public water system pursuant to NRS 534.120. 32
6. Pay the costs associated with abandoning and 33
plugging wells on the real property of persons who are 34
required by the State Engineer to connect the real property to 35
a public water system pursuant to NRS 534.120. 36
7. Perform such other duties as are necessary for the 37
Southern Nevada Water Authority and the Advisory 38
Committee to carry out the provisions of this act. 39
Sec. 23. Any existing and valid temporary permit issued by 40
the State Engineer pursuant to NRS 534.120 before July 1, 2025, 41
shall be deemed a revocable permit issued by the State Engineer. 42
Sec. 24. The Director of the State Department of Conservation 43
and Natural Resources shall, on or before July 1, 2026, adopt the 44
regulations which are required by section 12 of this act. 45
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Sec. 25. 1. This section, sections 1 to 20, inclusive and 1
sections 22, 23 and 24 of this act become effective on July 1, 2025. 2
2. Sections 9, 11, 12 and 14 of this act expire by limitation on 3
June 30, 2035. 4
3. Section 21 of this act becomes effective on July 1, 2035. 5
H