Revises provisions relating to water. (BDR 48-940)

S.B. 342

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SENATE BILL NO. 342–SENATOR OHRENSCHALL

MARCH 12, 2025
____________

Referred to Committee on Natural Resources

SUMMARY—Revises provisions relating to water. (BDR 48-940)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to water; authorizing the State Engineer, in certain
areas of this State, to coordinate with persons who seek to
relinquish, by certain means, a right to appropriate water;
requiring the State Engineer to retire such relinquished
rights; revising provisions relating to the effective date of
a right to appropriate water under a permit; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law sets forth certain processes by which the State Engineer is 1
required or authorized to designate a basin for administration under certain 2
provisions of law concerning groundwater basins. (NRS 534.030) Existing law 3
further authorizes the State Engineer to make such rules, regulations and orders as 4
are deemed essential for the welfare of a gr oundwater basin or portion thereof that 5
has been designated by the State Engineer. (NRS 534.120) 6
Section 5 of this bill authorizes the State Engineer, in each area designated as a 7
groundwater basin by the State Engineer, to coordinate with persons who seek to 8
relinquish, by contract or other legal agreement, a right to appropriate water and 9
requires the State Engineer to retire any water right relinquished pursuant to such a 10
contract or agreement. Sections 1-3 of this bill prohibit the appropriation of water 11
for which rights have been retired pursuant to section 5. 12
Under existing law, any person who wishes to appr opriate public waters, or to 13
change the place of diversion, manner of use or place of use of water already 14
appropriated, must apply to the State Engineer for a permit to do so. (NRS 533.325) 15
Existing law requires, if the State Engineer judges that the hold er of any permit to 16
appropriate public water is not proceeding in good faith and with reasonable 17
diligence to perfect the appropriation, the State Engineer to cancel the permit and 18
authorizes the holder of such a cancelled permit to file a written petition with the 19
State Engineer requesting a review of the cancellation by the State Engineer at a 20
public hearing. Existing law: (1) authorizes, after receiving and considering 21
evidence, the State Engineer to affirm, modify or rescind the cancellation; and (2) 22
provides that if the State Engineer modifies or rescinds the cancellation of the 23

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permit, the effective date of the appropriation under the permit is vacated and 24
replaced by the date of the filing of the written petition with the State Engineer. 25
(NRS 533.395) Section 4 of this bill provides that a permit which was cancelled for 26
a failure to timely file a document relating to the permit is not subject to provisions 27
concerning the vacation and replacement date of a permit which was previously 28
cancelled. 29

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 533.030 is hereby amended to read as follows: 1
533.030 1. Subject to existing rights, and except as otherwise 2
provided in this section and NRS 533.0241, 533.027 and 533.028, 3
and section 5 of this act, all water may be appropriated for 4
beneficial use as provided in this chapter and not otherwise. 5
2. The use of water, from any stream system as provided in this 6
chapter and from underground water as provided in NRS 534.080, 7
for any recreational purpose, or the use of water from the Muddy 8
River or the Virgin River to create any developed shortage supply or 9
intentionally created surplus, is hereby declared to be a beneficial 10
use. As used in this subsection: 11
(a) “Developed shortage supply” has the meaning ascribed to it 12
in Volume 73 of the Federal Register at page 19884, April 11, 2008, 13
and any subsequent amendment thereto. 14
(b) “Intentionally created surplus” has the meaning ascribed to it 15
in Volume 73 of the Federal Register at page 19884, April 11, 2008, 16
and any subsequent amendment thereto. 17
3. Except as otherwise provided in subsection 4, in any county 18
whose population is 700,000 or more: 19
(a) The board of county commissioners may prohibit or restrict 20
by ordinance the use of water and effluent for recreational purposes 21
in any artificially created lake or stream located within the 22
unincorporated areas of the county. 23
(b) The governing body of a city may prohibit or restrict by 24
ordinance the use of water and effluent for recreational purposes in 25
any artificially created lake or stream located within the boundaries 26
of the city. 27
4. In any county whose population is 700,000 or more, the 28
provisions of subsection 1 and of any ordinance adopted pursuant to 29
subsection 3 do not apply to: 30
(a) Water stored in an artificially created reservoir for use in 31
flood control, in meeting peak water demands or for purposes 32
relating to the treatment of sewage; 33
(b) Water used in a mining reclamation project; or 34

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(c) A body of water located in a recreational facility that is open 1
to the public and owned or operated by the United States or the State 2
of Nevada. 3
Sec. 2. NRS 533.370 is hereby amended to read as follows: 4
533.370 1. Except as otherwise provided in this section and 5
NRS 533.0241, 533.345, 533.371, 533.372 and 533.503, and 6
section 5 of this act, the State Engineer shall approve an application 7
submitted in proper form which contemplates the application of 8
water to beneficial use if: 9
(a) The application is accompanied by the prescribed fees; 10
(b) The proposed use or change, if within an irrigation district, 11
does not adversely affect the cost of water for other holders of water 12
rights in the district or lessen the efficiency of the district in its 13
delivery or use of water; and 14
(c) The applicant provides proof satisfactory to the State 15
Engineer of the applicant’s: 16
(1) Intention in good faith to construct any work necessary to 17
apply the water to the intended beneficial use with reasonable 18
diligence; and 19
(2) Financial ability and reasonable expectation actually to 20
construct the work and apply the water to the intended beneficial use 21
with reasonable diligence. 22
2. Except as otherwise provided in subsection 10, [where there] 23
the State Engineer shall reject an application and refuse to issue 24
the requested permit if: 25
(a) There is no unappropriated water in the proposed source of 26
supply [, where the] ; 27
(b) The groundwater that has not been committed for use has 28
been reserved pursuant to NRS 533.0241 ; 29
(c) The groundwater rights have been retired pursuant to 30
section 5 of this act; or [where its] 31
(d) The proposed use or change conflicts with existing rights or 32
with protectable interests in existing domestic wells as set forth in 33
NRS 533.024, or threatens to prove detriment al to the public 34
interest, the State Engineer shall reject the application and refuse to 35
issue the requested permit. 36
 If a previous application for a similar use of water within the 37
same basin has been rejected on those grounds, the new application 38
may be denied without publication. 39
3. In addition to the criteria set forth in subsections 1 and 2, in 40
determining whether an application for an interbasin transfer of 41
groundwater must be rejected pursuant to this section, the State 42
Engineer shall consider: 43
(a) Whether the applicant has justified the need to import the 44
water from another basin; 45

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(b) If the State Engineer determines that a plan for conservation 1
of water is advisable for the basin into which the water is to be 2
imported, whether the applicant ha s demonstrated that such a plan 3
has been adopted and is being effectively carried out; 4
(c) Whether the proposed action is environmentally sound as it 5
relates to the basin from which the water is exported; 6
(d) Whether the proposed action is an appropriate long-term use 7
which will not unduly limit the future growth and development in 8
the basin from which the water is exported; and 9
(e) Any other factor the State Engineer determines to be 10
relevant. 11
4. Except as otherwise provided in this subsection and 12
subsections 6 and 10 and NRS 533.365, the State Engineer shall 13
approve or reject each application within 2 years after the final date 14
for filing a protest. The State Engineer may postpone action: 15
(a) Upon written authorization to do so by the applicant. 16
(b) If an application is protested. 17
(c) If the purpose for which the application was made is 18
municipal use. 19
(d) In areas where studies of water supplies have been 20
determined to be necessary by the Stat e Engineer pursuant to 21
NRS 533.368. 22
(e) Where court actions or adjudications are pending, which may 23
affect the outcome of the application. 24
(f) In areas in which adjudication of vested water rights is 25
deemed necessary by the State Engineer. 26
(g) On an application for a permit to change a vested water right 27
in a basin where vested water rights have not been adjudicated. 28
(h) Where authorized entry to any land needed to use the water 29
for which the application is submitted is required from a 30
governmental agency. 31
(i) On an application for which the State Engineer has required 32
additional information pursuant to NRS 533.375. 33
5. If the State Engineer does not act upon an application in 34
accordance with subsections 4 and 6, the application remains active 35
until approved or rejected by the State Engineer. 36
6. Except as otherwise provided in this subsection and 37
subsection 10, the State Engineer shall approve or reject, within 6 38
months after the final date for filing a protest, an application filed to 39
change the poin t of diversion of water already appropriated when 40
the existing and proposed points of diversion are on the same 41
property for which the water has already been appropriated under 42
the existing water right or the proposed point of diversion is on real 43
property that is proven to be owned by the applicant and is 44
contiguous to the place of use of the existing water right. The State 45

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Engineer may postpone action on the application pursuant to 1
subsection 4. 2
7. If the State Engineer has not approved, rejected or hel d a 3
hearing on an application within 7 years after the final date for filing 4
a protest, the State Engineer shall cause notice of the application to 5
be republished and reposted pursuant to NRS 533.360 immediately 6
preceding the time at which the State Engine er is ready to approve 7
or reject the application. The cost of the republication must be paid 8
by the applicant. After such republication and reposting, a protest 9
may be filed in accordance with NRS 533.365. 10
8. If a hearing is held regarding an application , the decision of 11
the State Engineer must be in writing and include findings of fact, 12
conclusions of law and a statement of the underlying facts 13
supporting the findings of fact. The written decision may take the 14
form of a transcription of an oral ruling. The rejection or approval of 15
an application must be endorsed on a copy of the original 16
application, and a record must be made of the endorsement in the 17
records of the State Engineer. The copy of the application so 18
endorsed must be returned to the applicant. Except as otherwise 19
provided in subsection 11, if the application is approved, the 20
applicant may, on receipt thereof, proceed with the construction of 21
the necessary works and take all steps required to apply the water to 22
beneficial use and to perfect the proposed appropriation. If the 23
application is rejected, the applicant may take no steps toward the 24
prosecution of the proposed work or the diversion and use of 25
the public water while the rejection continues in force. 26
9. If a person is the successor in interest of an owner of a water 27
right or an owner of real property upon which a domestic well is 28
located and if the former owner of the water right or real property on 29
which a domestic well is located had previously filed a written 30
protest against the gran ting of an application, the successor in 31
interest must be allowed to pursue that protest in the same manner 32
as if the successor in interest were the former owner whose interest 33
he or she succeeded. If the successor in interest wishes to pursue the 34
protest, the successor in interest must notify the State Engineer in a 35
timely manner on a form provided by the State Engineer. 36
10. The provisions of subsections 1 to 9, inclusive, do not 37
apply to an application for an environmental permit or a temporary 38
permit issued pursuant to NRS 533.436 or 533.504. 39
11. The provisions of subsection 8 do not authorize the 40
recipient of an approved application to use any state land 41
administered by the Division of State Lands of the State Department 42
of Conservation and Natural R esources without the appropriate 43
authorization for that use from the State Land Registrar. 44

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12. As used in this section, “domestic well” has the meaning 1
ascribed to it in NRS 534.350. 2
Sec. 3. NRS 533.371 is hereby amended to read as follows: 3
533.371 The State Engineer shall reject the application and 4
refuse to issue a permit to appropriate water for a specified period if 5
the State Engineer determines that: 6
1. The application is incomplete; 7
2. The prescribed fees have not been paid; 8
3. The proposed use is not temporary; 9
4. There is no water available from the proposed source of 10
supply without exceeding the perennial yield or safe yield of that 11
source; 12
5. The groundwater that has not been committed for use from 13
the proposed source of supply has been reserved pursuant to 14
NRS 533.0241; 15
6. The groundwater rights have been retired pursuant to 16
section 5 of this act; 17
7. The proposed use conflicts with existing rights; or 18
[7.] 8. The proposed use threatens to prove detrimental to the 19
public interest. 20
Sec. 4. NRS 533.395 is hereby amended to read as follows: 21
533.395 1. If, at any time in the judgment of the State 22
Engineer, the holder of any permit to appropriate the public water is 23
not proceeding in good faith and with reasonable diligence to 24
perfect the appropriation, the State Engineer shall require the 25
submission of such proof and evidence as may be necessary to show 26
a compliance with the law. If, in the judgment of the State Engineer, 27
the holder of a permit is not proceeding in good faith and with 28
reasonable diligence to perfect the appropriation, the State Engineer 29
shall cancel the permit, and advise the holder of its cancellation. The 30
failure to provide the proof and evidence required pursuant to this 31
subsection is prima facie evidence that the holder is not proceeding 32
in good faith and with reasonable diligence to perfect the 33
appropriation. 34
2. If any permit is cancelled under the provisions of this section 35
or NRS 533.390 or 533.410, the holder of the permit may within 60 36
days of the cancellation of the permit file a written petition with the 37
State Engineer requesting a review of the cancellation by the State 38
Engineer at a public hearing. The State Engineer may, after 39
receiving and considering evidence, affirm, modify or rescind the 40
cancellation. 41
3. If the decision of the State Engineer modifies or rescinds the 42
cancellation o f a permit, the effective date of the appropriation 43
under the permit is vacated and replaced by the date of the filing of 44
the written petition with the State Engineer. The provisions of this 45

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subsection do not apply to a permit which was cancelled for a 1
failure to timely file a document relating to the permit. 2
4. The cancellation of a permit may not be reviewed or be the 3
subject of any judicial proceedings unless a written petition for 4
review has been filed and the cancellation has been affirmed, 5
modified or rescinded pursuant to subsection 2. 6
5. For the purposes of this section, the measure of reasonable 7
diligence is the steady application of effort to perfect the 8
appropriation in a reasonably expedient and efficient manner under 9
all the facts and circumstances. When a project or integrated system 10
is comprised of several features, work on one feature of the project 11
or system may be considered in finding that reasonable diligence 12
has been shown in the development of water rights for all features of 13
the entire project or system. 14
6. The appropriation of water or the acquisition or lease of 15
appropriated water from any: 16
(a) Stream system as provided for in this chapter; or 17
(b) Underground water as provided for in NRS 534.080, 18
 by a political subdivision of this State or a public utility, as 19
defined in NRS 704.020, to serve the present or the reasonably 20
anticipated future municipal, industrial or domestic needs of its 21
customers for water, as determined in accordance with a master plan 22
adopted pursuant to cha pter 278 of NRS or a plan approved by the 23
State Engineer, must be considered when reviewing an extension of 24
time. 25
Sec. 5. Chapter 534 of NRS is hereby amended by adding 26
thereto a new section to read as follows: 27
In each area designated as a groundwater basin by the State 28
Engineer pursuant to the provisions of NRS 534.030, the State 29
Engineer may coordinate with persons who seek to relinquish , by 30
contract or other legal agreement, a right to appropriate water. 31
The State Eng ineer must retire any water right relinquished 32
pursuant to such a contract or other legal agreement. 33

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