Nevada 2025 2025 Regular Session

Nevada Assembly Bill AB9 Amended / Bill

                      
 (Reprinted with amendments adopted on April 14, 2025) 
 	FIRST REPRINT A.B. 9 
 
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ASSEMBLY BILL NO. 9–COMMITTEE ON NATURAL RESOURCES 
 
(ON BEHALF OF THE JOINT INTERIM STANDING  
COMMITTEE ON NATURAL RESOURCES) 
 
PREFILED OCTOBER 29, 2024 
____________ 
 
Referred to Committee on Natural Resources 
 
SUMMARY—Revises provisions relating to water. (BDR 48-391) 
 
FISCAL NOTE: Effect on Local Government: No. 
 Effect on the State: No. 
 
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. 
 
 
AN ACT relating to water; revising the duration of time in which 
agricultural water rights may be temporarily converted for 
certain purposes; providing an exception to provisions 
relating to the forfeiture and abandonment of a water 
right; and providing other matters properly relating 
thereto. 
Legislative Counsel’s Digest: 
 Under existing law, a person or entity may apply to temporarily convert 1 
agricultural water rights for wildlife purposes or to improve the quality or flow of 2 
water for a duration not to exceed 3 years and a temporary conversion may be 3 
extended in increments not to exceed 3 years in duration each. (NRS 533.0243) 4 
Section 1 of this bill instead provides that a temporary conversion of agricultural 5 
water rights may not exceed 5 years in duration and may be extended in increments 6 
that may not exceed 5 years in duration each. Section 1: (1) authorizes the State 7 
Engineer to deny an application to temporarily convert an agricultural water right 8 
or limit the duration of a temporary conversion or an extension of a temporary 9 
conversion; and (2) prohibits the State Engineer from approving an application for 10 
a temporary conversion under certain circumstances. Section 1 further provides that 11 
upon the expiration of a temporary conversion, the agricultural water right must 12 
revert to the previous beneficial use.  13 
 Existing law requires, under certain circumstances, the State Engineer to notify 14 
the owner of a water right that the owner has 1 year after the date of the notice to: 15 
(1) use the water right beneficially and provide proof of such use to the State 16 
Engineer; or (2) apply to the State Engineer for an extension of time to work a 17 
forfeiture of the water right. If, after 1 year of the date of the notice, the owner fails 18 
to act, the State Engineer is required to declare the right forfeited. Existing law also 19 
provides that a right to use underground water may be lost by abandonment under 20   
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certain circumstances. (NRS 534.090) Section 2 of this bill provides that these 21 
provisions relating to forfeiture and abandonment do not apply to water rights 22 
which are subject to certain federal or state programs. 23 
 
 
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN 
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 
 
 Section 1.  NRS 533.0243 is hereby amended to read as 1 
follows: 2 
 533.0243 1. [The Legislature hereby finds and declares that it 3 
is the policy of this State to allow] Except as otherwise provided in 4 
subsection 3, the State Engineer may authorize the temporary 5 
conversion of agricultural water rights for wildlife purposes or to 6 
improve the quality , quantity or flow of water [.] in accordance 7 
with the provisions of this section.  8 
 2. If a person or entity proposes to temporarily convert 9 
agricultural water rights [for wildlife purposes or to improve the 10 
quality or flow of water,] pursuant to this section, such temporary 11 
conversion: 12 
 (a) Must not be carried out unless the person or entity first 13 
applies for and receives from the State Engineer any necessary 14 
permits or approvals required pursuant to: 15 
  (1) The provisions of this chapter; and 16 
  (2) Any applicable decisions, orders, procedures and 17 
regulations of the State Engineer. 18 
 (b) [Except as otherwise provided in this paragraph, must] Must 19 
not exceed [3] 5 years in duration [. A temporary conversion of 20 
agricultural water rights for wildlife purposes or to improve the 21 
quality or flow of water] and may be extended in increments not to 22 
exceed [3] 5 years in duration each, provided that the person or 23 
entity seeking the extension first applies for and receives from the 24 
State Engineer any necessary permits or approvals, as described in 25 
paragraph (a). 26 
 3. The State Engineer: 27 
 (a) May deny an application to temporarily convert an 28 
agricultural water right received pursuant to subsection 2 or limit 29 
the temporary conversion or extension of the temporary 30 
conversion to any duration of less than 5 years if the State 31 
Engineer determines that the temporary conversion or duration of 32 
the temporary conversion would not meet the purposes set forth in 33 
subsection 1 or would not otherwise be in the public interest; and  34 
 (b) Shall not approve an application to temporarily convert an 35 
agricultural water right if the water right is a groundwater right 36 
and the owner has received notice from the State Engineer 37   
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pursuant to subsection 2 of NRS 534.090 indicating 4 or more 1 
consecutive years of nonuse. 2 
 4. If the State Engineer authorizes the temporary conversion 3 
of an agricultural water right pursuant to this section, the 4 
temporarily converted water right: 5 
 (a) Must not be considered a beneficial use for the purpose of 6 
perfecting the water right or proving that beneficial use of the 7 
water right has resumed; 8 
 (b) Must not be claimed or considered a consumptive use for 9 
the purposes of NRS 533.3703;  10 
 (c) Remains subject to the provisions of NRS 534.037 and any 11 
groundwater management plan or modification thereto; and  12 
 (d) Remains subject to any order of the State Engineer 13 
requiring that withdrawals be restricted to conform to priority 14 
rights.  15 
 5. Upon the expiration of the temporary conversion and any 16 
extension granted pursuant to subsection 2, an agricultural water 17 
right that is temporarily converted must revert to the existing 18 
beneficial use of the agricultural water right before the water right 19 
was temporarily converted.  20 
 Sec. 2.  NRS 534.090 is hereby amended to read as follows: 21 
 534.090 1.  Except as otherwise provided in this section, 22 
failure for 5 successive years after April 15, 1967, on the part of the 23 
holder of any right, whether it is an adjudicated right, an 24 
unadjudicated right or a right for which a certificate has been issued 25 
pursuant to NRS 533.425, and further whether the right is initiated 26 
after or before March 25, 1939, to use beneficially all or any part of 27 
the underground water for the purpose for which the right is 28 
acquired or claimed, works a forfeiture of both undetermined rights 29 
and determined rights to the use of that water to the extent of the 30 
nonuse. 31 
 2.  If the records of the State Engineer or any other documents 32 
obtained by or provided to the State Engineer indicate 4 or more 33 
consecutive years of nonuse of all or any part of a water right which 34 
is governed by this chapter: 35 
 (a) The State Engineer shall notify the owner of the water right, 36 
as determined in the records of the Office of the State Engineer, by 37 
registered or certified mail of the nonuse and that the owner has 1 38 
year after the date of the notice of nonuse in which to use the water 39 
right beneficially and to provide proof of such use to the State 40 
Engineer or apply for relief pursuant to subsection 3 to avoid 41 
forfeiting the water right.  42 
 (b) If, after 1 year after the date of the notice of nonuse pursuant 43 
to paragraph (a), proof of resumption of beneficial use is not filed in 44 
the Office of the State Engineer, the State Engineer shall, unless the 45   
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State Engineer has granted a request to extend the time necessary to 1 
work a forfeiture of the water right, send a final notice to the owner 2 
of the water right, as determined in the records of the Office of the 3 
State Engineer, by registered or certified mail, that the water right is 4 
held for forfeiture. If the owner of the water right, within 30 days 5 
after the date of such final notice, fails to file the required proof of 6 
resumption of beneficial use or an application for an extension of 7 
time to prevent forfeiture, the State Engineer shall declare the right, 8 
or the portion of the right not returned to beneficial use, forfeited. 9 
The State Engineer shall send notice of the declaration of forfeiture, 10 
by registered or certified mail, to the owner of record, as determined 11 
in the records of the Office of the State Engineer, of the water right 12 
that has been declared forfeited.  13 
 (c) If, after receipt of a notice of the declaration of forfeiture 14 
pursuant to paragraph (b), the owner of record of the water right 15 
fails to appeal the ruling in the manner provided for in NRS 16 
533.450, and within the time provided for therein, the forfeiture 17 
becomes final. Upon the forfeiture of the water right, the water 18 
reverts to the public and is available for further appropriation, 19 
subject to existing rights. 20 
 3.  The State Engineer may, upon the request of the holder of 21 
any right described in subsection 1, extend the time necessary to 22 
work a forfeiture under subsection 2 if the request is made before 23 
the expiration of the time necessary to work a forfeiture. Except as 24 
otherwise provided in subsection 4, the State Engineer may grant, 25 
upon request and for good cause shown, any number of extensions, 26 
but a single extension must not exceed 1 year. In determining 27 
whether to grant or deny a request, the State Engineer shall, among 28 
other reasons, consider: 29 
 (a) Whether the holder has submitted proof and evidence that 30 
the holder is proceeding in good faith and with reasonable diligence 31 
to resume use of the water beneficially for the purpose for which the 32 
holder’s right is acquired or claimed; 33 
 (b) The number of years during which the water has not been 34 
put to the beneficial use for which the right is acquired or claimed; 35 
 (c) Any economic conditions or natural disasters which made 36 
the holder unable to put the water to that use; 37 
 (d) Whether the water right is located in a basin within a county 38 
under a declaration of drought by the Governor, United States 39 
Secretary of Agriculture or the President of the United States; 40 
 (e) Whether the holder has demonstrated efforts to conserve 41 
water which have resulted in a reduction in water consumption; 42 
 (f) Whether the water right is located in a basin that has been 43 
designated as a critical management area by the State Engineer 44 
pursuant to subsection 7 of NRS 534.110; 45   
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 (g) The date of priority of the water right as it relates to the 1 
potential curtailment of water use in the basin; 2 
 (h) The availability of water in the basin, including, without 3 
limitation, whether withdrawals of water consistently exceed the 4 
perennial yield of the basin; and 5 
 (i) Any orders restricting use or appropriation of water in the 6 
basin. 7 
 The State Engineer shall notify, by registered or certified mail, 8 
the owner of the water right, as determined in the records of the 9 
Office of the State Engineer, of whether the State Engineer has 10 
granted or denied the holder’s request for an extension pursuant to 11 
this subsection. If the State Engineer grants an extension pursuant to 12 
this subsection and, before the expiration of that extension, proof of 13 
resumption of beneficial use or another request for an extension is 14 
not filed in the Office of the State Engineer, the State Engineer shall 15 
send a final notice to the owner of the water right, by registered or 16 
certified mail, that the water right will be declared forfeited if the 17 
owner of the water right fails to file the required proof of 18 
resumption of beneficial use or an application for an extension of 19 
time to prevent forfeiture within 30 days after the date of the final 20 
notice. If the owner of the water right fails to file the required proof 21 
of resumption of beneficial use or an application for an extension of 22 
time to prevent forfeiture within 30 days after the date of such final 23 
notice, the State Engineer shall declare the water right, or the 24 
portion of the right not returned to beneficial use, forfeited. 25 
 4.  If the State Engineer grants an extension pursuant to 26 
subsection 1 in a basin: 27 
 (a) Where withdrawals of groundwater consistently exceed the 28 
perennial yield of the basin; or 29 
 (b) That has been designated as a critical management area by 30 
the State Engineer pursuant to subsection 7 of NRS 534.110,  31 
 a single extension must not exceed 3 years, but any number of 32 
extensions may be granted to the holder of such a right. 33 
 5.  The failure to receive a notice pursuant to subsection 2 or 3 34 
does not nullify the forfeiture or extend the time necessary to work 35 
the forfeiture of a water right. 36 
 6.  A right to use underground water whether it is vested or 37 
otherwise may be lost by abandonment. If the State Engineer, in 38 
investigating a groundwater source, upon which there has been a 39 
prior right, for the purpose of acting upon an application to 40 
appropriate water from the same source, is of the belief from his or 41 
her examination that an abandonment has taken place, the State 42 
Engineer shall so state in the ruling approving the application. If, 43 
upon notice by registered or certified mail to the owner of record 44 
who had the prior right, the owner of record of the prior right fails to 45   
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appeal the ruling in the manner provided for in NRS 533.450, and 1 
within the time provided for therein, the alleged abandonment 2 
declaration as set forth by the State Engineer becomes final. 3 
 7. The provisions of this section do not apply to a water right 4 
which is subject to: 5 
 (a) A contract or agreement entered into in accordance with 6 
an official federal program for the conservation of land or water; 7 
or 8 
 (b) An official program for the conservation of water that is 9 
administered by an agency of this State.  10 
 
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