AB 9

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