§ 73-10-37 — Incentives to use water efficient landscaping.

(1) As used in this section:

(1)(a) "District" means a water conservancy district, as that term is defined in Section 73-10-32.
(1)(b) "Division" means the Division of Water Resources.
(1)(c) "Landscaping conversion incentive program" means a program administered by a district that pays an owner a financial incentive to remove lawn or turf from a project area on land owned by the owner.
(1)(d) (1)(d)(i) Except as provided in Subsection (1)(d)(ii), "lawn or turf" means nonagricultural land planted in closely mowed, managed grasses.
(1)(d)(ii) "Lawn or turf" does not include a golf course, park, athletic field, or sod farm.
(1)(e) "Owner" means an owner of private or public land where a water end user is located.
(1)(f) "Program guidelines" means guidelines adopted by a district for the district's landscaping conversion incentive program.
(1)(g) "Project area" means the area from which lawn or turf is removed and replaced with water efficient landscaping.
(1)(h) "Water end user" means a person who enters into a water contract to obtain water from a retail water provider for residential, commercial, industrial, or institutional use.
(2) The division may:

(2)(a) award a grant under Subsection (3) to a district to fund financial incentives provided through a landscaping conversion incentive program administered by the district; and
(2)(b) provide an incentive under Subsection (4) to an owner to remove lawn or turf from a project area on land owned by the owner in an area without a landscaping conversion incentive program.
(3) (3)(a) (3)(a)(i) A district may obtain a grant from the division to help fund a financial incentive provided to an owner through a landscaping conversion incentive program administered by the district.
(3)(a)(ii) Both the award and use of a grant under this Subsection (3) are subject to Subsections (3)(b), (c), and (d).
(3)(b) To obtain a grant, a district shall:
(3)(b)(i) initiate and operate a landscaping conversion incentive program;
(3)(b)(ii) limit the disbursement of grant money in the district's landscaping conversion incentive program to owners that satisfy the minimum requirements of Subsection (4)(c) and:

(3)(b)(ii)(A) rules made by the division under Subsection (5)(b); or
(3)(b)(ii)(B) program guidelines approved by the division under Subsection (3)(f);
(3)(b)(iii) use the grant exclusively to fund financial incentives provided to owners that remove lawn or turf from a project area in the district's landscaping conversion incentive program;
(3)(b)(iv) provide an equal amount or more of matching funds for the district's landscaping conversion incentive program from sources other than the grant money the district receives under this section;
(3)(b)(v) file an application with the division that:

(3)(b)(v)(A) describes the district's landscaping conversion incentive program, including verification that the program can and shall implement the minimum requirements of Subsection (4)(c) and either rules made by the division under Subsection (5)(b) or program guidelines approved by the division under Subsection (3)(f);
(3)(b)(v)(B) includes a copy of the program guidelines governing the district's landscaping conversion incentive program;
(3)(b)(v)(C) if the district wants to be subject to program guidelines in lieu of division rules made under Subsection (5)(b), requests that the division approve the district's program guidelines under Subsection (3)(f); and
(3)(b)(v)(D) provides additional information requested by the division; and
(3)(b)(vi) enter into a contract with the division that requires the district to:

(3)(b)(vi)(A) verify that participants comply and landscaping conversion projects proposed, undertaken, and completed by participants under the district's landscaping conversion incentive program satisfy the requirements in this Subsection (3) and any contract before using grant money for a financial incentive;
(3)(b)(vi)(B) agree not to use grant money for a financial incentive in any landscaping conversion project that fails to satisfy the requirements of this Subsection (3) and either rules made by the division or program guidelines approved by the division under Subsection (3)(f);
(3)(b)(vi)(C) submit to the division quarterly reports on funding status; and
(3)(b)(vi)(D) prepare and submit an annual accounting to the division on the use of grant money for financial incentives in the district's landscaping conversion incentive program.
(3)(c) (3)(c)(i) Upon expenditure of 70% of the grant money awarded to a district and an accounting on the use of that grant money, a district may apply for additional grant money in accordance with Subsection (3)(b).
(3)(c)(ii) The division may award a district an additional grant based on:

(3)(c)(ii)(A) the availability of grant money;
(3)(c)(ii)(B) the priority or importance of the grant proposal in relation to availability of grant money, the division's landscaping conversion incentive program under this Subsection (3), other landscaping conversion incentive program grant requests, and regional needs and goals;
(3)(c)(ii)(C) the effectiveness of the district's landscaping conversion incentive program in incentivizing owners to convert lawn or turf to water efficient landscaping;
(3)(c)(ii)(D) the district's previous compliance with this Subsection (3) and contract terms and conditions; and
(3)(c)(ii)(E) any matter bearing on the district's ability to responsibly handle and disperse grant money consistent with this Subsection (3) and contract terms and conditions.
(3)(d) A district awarded grant money under this Subsection (3) may not use grant money to pay an incentive that exceeds the maximum amounts established by the division by rule under Subsection (5)(c).
(3)(e) Nothing in this section prohibits a district from expending non-grant money, including matching money, under the district's landscaping conversion incentive program to:
(3)(e)(i) assist an owner that does not satisfy Subsection (4)(c); or
(3)(e)(ii) provide an incentive that exceeds a maximum amount established by the division for grant money under Subsection (3)(d).
(3)(f) The division may approve a request from a district under Subsection (3)(b)(v)(C) to use program guidelines in lieu of rules made by the division under Subsection (5)(b) if the division determines that the district's program guidelines will:
(3)(f)(i) result in at least as much water use savings as rules made under Subsection (5)(b); and
(3)(f)(ii) accomplish the same objectives as rules made under Subsection (5)(b).
(4) (4)(a) In an area without an existing landscaping conversion incentive program, the division may provide an incentive to an owner to remove lawn or turf from land owned by the owner and replace the lawn or turf with water efficient landscaping.
(4)(b) If the division provides an incentive under this Subsection (4), the division shall provide the incentive in the order that an application for the incentive is filed. The division may terminate an application if the division determines that the owner has not completed the project within 12 months of the date on which the owner files the application for the incentive.
(4)(c) To be eligible for an incentive under this Subsection (4):
(4)(c)(i) the owner shall at the time the owner applies for the incentive:

(4)(c)(i)(A) have living lawn or turf, as determined by the entity providing the incentive, on the land owned by the owner that the owner intends to replace with water efficient landscaping; and
(4)(c)(i)(B) participate voluntarily in the removal of the lawn or turf in that the removal is not required by governmental code or policy;
(4)(c)(ii) the property where the project area is located, is located within:

(4)(c)(ii)(A) a municipality that implements regional-based water use efficiency standards established by the division under Subsection (5)(d); or
(4)(c)(ii)(B) an unincorporated area of a county that implements regional-based water use efficiency standards established by the division under Subsection (5)(d); and
(4)(c)(iii) the owner shall agree to:

(4)(c)(iii)(A) maintain water efficient landscaping and a drip irrigation system installed in the project area and not reinstall lawn or turf or overhead spray irrigation in the project area after receipt of a payment under this section to incentivize conversion of lawn or turf to water efficient landscaping; or
(4)(c)(iii)(B) return to the division or to a district the payments received for removal of lawn or turf from the project area.
(4)(d) An owner may not receive an incentive under this section if the owner has previously received an incentive under this section for the same project area.
(4)(e) An owner may not receive an incentive under this Subsection (4) in an amount that exceeds:
(4)(e)(i) the maximum amount established by the division in rule, as provided in Subsection (5) for each square foot of lawn or turf converted to water efficient landscaping; or
(4)(e)(ii) the maximum aggregate amount established by the division in rule as provided in Subsection (5).
(5) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:

(5)(a) establishing the process by which:
(5)(a)(i) a district obtains a grant under Subsection (3); or
(5)(a)(ii) an owner obtains an incentive under Subsection (4);
(5)(b) defining what constitutes water efficient landscaping, including what irrigation is used after conversion to water efficient landscaping;
(5)(c) establishing for funding under this section, the maximum incentive from grant money allowable for each square foot of lawn or turf converted to water efficient landscaping or a maximum aggregate amount; and
(5)(d) establishing for purposes of this section regional-based water use efficiency standards designed to reduce water consumption and conserve culinary and secondary water supplies.
(6) This section does not prohibit a municipality or county from adopting landscaping standards that would result in greater water efficiency than provided by division rule made under Subsection (5) if the standards do not conflict with this section or division rules.
(7) The division shall maintain a public website that, at a minimum, provides the status of a municipal or county ordinance, resolution, or policy that implements regional-based water use efficiency standards as described in Subsection (4)(c)(ii).

Legislative History

Amended by Chapter 247, 2023 General Session