HB 1374 Summary

• Increases the cost threshold for requiring economic analyses and life cycle analyses for water projects from $500,000 to $1 million for municipal water supply projects and establishes requirement for economic analyses on flood control and water conveyance projects over $750,000.

• Modifies state water commission cost-share policy to allow grants up to 75 percent of eligible project costs and prohibits using population growth or affordability factors for eligibility determinations, though these may be used for project prioritization.

• Requires water project sponsors to maintain a capital improvement fund from customer rates as a condition of state funding for extraordinary maintenance projects.

• Creates provisions limiting state financial assistance for flood control projects to protection standards based on 100-year flood events, national economic development alternatives, or local sponsor preferences if historical and projected flood costs warrant it.

• Prohibits state financial assistance for dam improvements if a political subdivision permits development in breach inundation zones that causes changes requiring structural dam upgrades.