(1)The state council, in consultation with the relevant agencies, shall develop a written prioritization process for ranking and prioritizing water infrastructure projects that are or will be funded by water infrastructure fund money beginning with fiscal year 2027. The written prioritization process shall:
(1)(a) identify water infrastructure projects listed in the unified water infrastructure plan described in Section 73-10g-602;
(1)(b) establish a process under which an applicant may apply for funding of a water infrastructure project listed in the unified water infrastructure plan;
(1)(c) provide for the assignment by the state council of a water infrastructure project application to a relevant agency;
(1)(d) provide for a relevant agency to rank the water infrastructure projects assi
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(1) The state council, in consultation with the relevant agencies, shall develop a written prioritization process for ranking and prioritizing water infrastructure projects that are or will be funded by water infrastructure fund money beginning with fiscal year 2027. The written prioritization process shall:
(1)(a) identify water infrastructure projects listed in the unified water infrastructure plan described in Section 73-10g-602;
(1)(b) establish a process under which an applicant may apply for funding of a water infrastructure project listed in the unified water infrastructure plan;
(1)(c) provide for the assignment by the state council of a water infrastructure project application to a relevant agency;
(1)(d) provide for a relevant agency to rank the water infrastructure projects assigned to the relevant agency under Subsection (1)(c);
(1)(e) on the basis of the ranking of water infrastructure projects under Subsection (1)(d), establish a process for the state council to prioritize water infrastructure projects; and
(1)(f) establish a process for transferring money from the Water Infrastructure Fund, created in Section 73-10g-107, into a fund or account described in Subsection 73-10g-601(6) to fund water infrastructure projects prioritized by the state council.
(2) The following shall be included in the written prioritization process under Subsection (1):
(2)(a) subject to Subsection (3), categories of the types of water infrastructure projects against which other water infrastructure projects are prioritized, including:
(2)(a)(i) drinking water projects;
(2)(a)(ii) wastewater projects;
(2)(a)(iii) stormwater projects;
(2)(a)(iv) secondary water projects;
(2)(a)(v) dam and reservoir projects;
(2)(a)(vi) off-farm agriculture projects; and
(2)(a)(vii) water reuse projects;
(2)(b) exclusion of the following types of water infrastructure projects:
(2)(b)(i) an emergency water infrastructure project; or
(2)(b)(ii) a small water infrastructure project that receives less than an amount of water infrastructure fund money established by rule made by the state council in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(2)(c) hardship criteria that at a minimum refer to the hardship criteria of the Division of Drinking Water and the Division of Water Quality;
(2)(d) criteria related to the public interest, including conservation and the protection of public health and safety;
(2)(e) criteria to ensure that the project is adequately designed based on sound engineering and geologic considerations;
(2)(f) criteria for ranking or prioritizing a local water infrastructure project based on:
(2)(f)(i) a local water infrastructure plan that is consistent with this section; and
(2)(f)(ii) consultation with local entities about local water infrastructure projects;
(2)(g) criteria for ranking or prioritizing a water infrastructure project when water infrastructure fund money will be used to match federal funding;
(2)(h) a requirement that a person who receives water infrastructure fund money for a water infrastructure project:
(2)(h)(i) engage in long-term planning consistent with Section 73-10g-602; and
(2)(h)(ii) comply with Section 73-10g-605; and
(2)(i) any other provision the state council considers appropriate.
(3) When including categories of types of water infrastructure projects used in the written prioritization process, the state council shall consider:
(3)(a) whether to apply percentages of water infrastructure fund money assigned to each category;
(3)(b) the size and resources of recipients; and
(3)(c) the potential purposes of the different types of water infrastructure projects, such as agricultural, municipal, or industrial uses.
(4) In developing the written prioritization process, the state council shall seek and consider public comment related to developing the written prioritization process by holding public meetings at locations throughout the state in accordance with Title 52, Chapter 4, Open and Public Meetings Act.
(5) (5)(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the state council shall make rules establishing the written prioritization process under Subsection (1).
(5)(b) The state council shall submit a proposed rule to the Legislative Water Development Commission for review before taking final action on the proposed rule or a proposed amendment to the rule described in this Subsection (5).
(6) In determining priorities and funding levels of water infrastructure projects, the state council shall use the ranked list of water infrastructure projects based on the criteria adopted in the written prioritization process under Subsection (1).
(7) A relevant agency shall annually report to the state council on the status of new water infrastructure projects, including water infrastructure projects that are funded by the Legislature in an appropriation act.
(8) For a fiscal year before fiscal year 2027, a relevant agency shall prioritize water infrastructure projects within the jurisdiction of the relevant agency and not the state council.