Senate approves water-conservation bill creating water-banking and monetization options for agricultural users

The Utah Senate on Feb. 28 passed Second Substitute Senate Bill 277, a measure the sponsor described as a step toward allowing agricultural water users to conserve and monetize saved water.

Sponsor Senator Bridal (presenting the water conservation and augmentation amendments) told the Senate the bill creates a framework whereby water saved through conservation can be tagged — in the bill’s language, “colored” — and then assigned a beneficial use so the original water-right holder may realize monetary value from the saved water. The measure establishes a vetting committee to rank applications to the ag optimization program and requires a 50% match from participants.

Sponsor remarks noted the program is voluntary and currently targeted to projects that benefit the Colorado River drainage. Senator Bridal said the state engineer would oversee change applications and water-banking placements and emphasized the bill’s intention to help agricultural producers realize benefits from efficiency without losing their water rights.

Senators asked questions about definitions (for example, whether references to “grass” would inadvertently cover pasture versus lawn) and whether endangered species protections should be added. The sponsor said the program is not meant to alter endangered-species protections and that reuse details would be a monetary and administrative decision once saved water is identified.

Under suspension of the rules, the Senate adopted the second substitute and passed the bill by roll call: 26 ayes, 0 nays, 3 absent. The bill will be sent to the House for consideration.