HB 116

 2026  26LSO-0178
                         STATE OF WYOMING
                         HOUSE BILL NO. HB0116
 Destruction of water is not beneficial use.
 Sponsored by: Select Water Committee
                                A BILL
                                   for
1 AN ACT relating to water; specifying that destruction of
2 water is not beneficial use; providing for the rejection of
3 specified     applications    for       water   use;     providing    an
4 exception; specifying applicability; and providing for an
5 effective date.
6
7 Be It Enacted by the Legislature of the State of Wyoming:
8
9Section 1.     W.S. 41-3-101, 41-3-104 by creating a new
10 subsection     (c),   41-3-931,     41-3-932    by     creating   a   new
11 subsection (f) and 41-4-503 are amended to read:
12
1341-3-101.    Nature of water rights and beneficial use.
14
15(a)   A water right is a right to use the water of the
16 state, when such use has been acquired by the beneficial
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1 application of water under the laws of the state relating
2 thereto, and in conformity with the rules and regulations
3 dependent thereon. Beneficial use shall be the basis, the
4 measure and limit of the right to use water at all times,
5 not exceeding the statutory limit except as provided by
6 W.S. 41-4-317. In addition to any beneficial use specified
7 by law or rule and regulation promulgated pursuant thereto,
8 the    use    of     water      for   the    purpose  of     extracting  heat
9 therefrom is considered a beneficial use subject to prior
10 rights.      Water      being    always      the    property  of   the      state,
11 rights to its use shall attach to the land for irrigation,
12 or to such other purposes or object for which acquired in
13 accordance with the beneficial use made for which the right
14 receives      public       recognition,        under  the     law     and      the
15 administration  provided      thereby.       Water  rights      for      the
16 direct    use      of    the    natural     unstored  flow    of     any    stream
17 cannot be detached from the lands, place or purpose for
18 which     they     are     acquired,        except       as     provided       in       W.S.
19 41-3-102 and 41-3-103, pertaining to a change to preferred
20 use, and except as provided in W.S. 41-4-514.
21
22(b)    The destruction of water molecules by separating
23 the    hydrogen      and     oxygen    atoms       for    the      purposes        of    the
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1 industrial production of hydrogen shall not constitute a
2 beneficial use of water. Nothing in this subsection shall
3 be construed to prohibit any use of water that results in
4 evaporation losses where the primary purpose is not the
5 molecular destruction or chemical dissociation of water or
6 any use of wastewater.
7
841-3-104.    Procedure to change use or place of use.
9
10(c)   If the water right's source of supply has been
11 subject to priority regulation within the previous ten (10)
12 years, or existing uses from the water right's source of
13 supply have been regulated to comply with an interstate
14 compact or United States Supreme Court decree within the
15 previous ten (10) years, the board of control shall deny
16 any petition that would result in the destruction of water
17 molecules by separating the hydrogen and oxygen atoms for
18 the purposes of the industrial production of hydrogen.
19
2041-3-931.    Application; when granted generally; denial
21 subject      to   review;    defects   and   corrections   generally;
22 cancellation.
23
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1(a)     An application for a permit for a well in any
2 areas not designated as a critical area shall be granted as
3 a matter of course, if the proposed use is beneficial and,
4 if    the state engineer  finds      that       the    proposed      means of
5 diversion       and    construction  are       adequate.     If      the    state
6 engineer finds that to grant the application as a matter of
7 course, would not be in public's water interest, then he
8 may    deny    the    application subject to  review    at    the    next
9 meeting       of   the      state     board     of       control.     If      the    state
10 engineer shall find that the proposed means of diversion or
11 construction  are     inadequate,  or    if    the   application        is
12 otherwise      defective,        he     may    return  the    application       for
13 correction. If such correction is not made within ninety
14 (90) days, the state engineer may cancel the application.
15
16(b)     If the proposed source of supply has been subject
17 to priority regulation within the previous ten (10) years,
18 or existing uses from the proposed source of supply have
19 been    regulated        to    comply    with       an    interstate       compact      or
20 United States Supreme Court decree within the previous ten
21 (10) years, the state engineer shall deny any application,
22 petition to amend a permit or application for temporary
23 transfer      that     would     result       in    the       destruction      of    water
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1 molecules by separating the hydrogen and oxygen atoms for
2 the purposes of the industrial production of hydrogen. This
3 subsection shall not apply to applications to appropriate
4 by-product water under W.S. 41-3-904.
5
641-3-932.       Public notice of application or petition;
7 hearing      before    state   engineer     and    control     area      advisory
8 board; cost.
9
10(f)    No    petition   or    application      under       this   section
11 shall be granted if it would result in the destruction of
12 water molecules by separating the hydrogen and oxygen atoms
13 for the purposes of the industrial production of hydrogen.
14 This    subsection       shall      not    apply     to   applications  to
15 appropriate by-product water under W.S. 41-3-904.
16
1741-4-503.       Recordation;  approval  or       rejection
18 generally.
19
20(a)    All     applications       which    shall   comply      with   the
21 provisions of this chapter, and with the regulations of the
22 engineer's office, shall be recorded in a suitable book
23 kept for that purpose; and it shall be the duty of the
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1 state engineer to approve all applications made in proper
2 form, which contemplate the application of the water to a
3 beneficial use and where the proposed use does not tend to
4 impair       the   value   of    existing     rights,    or    be    otherwise
5 detrimental to the public welfare. But where there is no
6 unappropriated water in the proposed source of supply, or
7 where the proposed use conflicts with existing rights, or
8 threatens to prove detrimental to the public interest, it
9 shall be the duty of the state engineer to reject such
10 application and refuse to issue the permit asked for.
11
12(b)     If the proposed source of supply has been subject
13 to priority regulation within the previous ten (10) years,
14 or existing uses from the proposed source of supply have
15 been   regulated      to   comply    with     an    interstate      compact   or
16 United States Supreme Court decree within the previous ten
17 (10) years, the state engineer shall deny any application,
18 petition to amend a permit or application for temporary
19 transfer      that   would      result   in   the   destruction      of   water
20 molecules by separating the hydrogen and oxygen atoms for
21 the purposes of the industrial production of hydrogen. This
22 subsection shall not apply to applications to appropriate
23 by-product water under W.S. 41-3-904.
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1
2Section 2.
3
4(a)   This   act   shall   apply   to   all   new   water   permit
5 applications or applications for changes of water use filed
6 on or after July 1, 2026.
7
8(b)   No permit or water right issued before July 1,
9 2026 shall be construed to authorize the destruction of
10 water molecules as provided in W.S. 41-3-101(b) as created
11 by section 1 of this act unless that use was explicitly
12 permitted or approved under prior law.
13
14Section 3.    This act is effective July 1, 2026.
15
16(END)
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