WA SB5261

Allows the Department of Ecology to issue water right permits for nonconsumptive hydropower projects in water resource inventory areas where minimum instream flows are not being met or in water bodies closed to further appropriation

Projects must have an installed power generation capacity of less than 25 kilowatts and return diverted water to the same stream reach

Requires the Department of Ecology to determine there would be no net detrimental impact to fish and related aquatic resources after consulting with the Department of Fish and Wildlife

Mandates consultation with all federally recognized Indian tribes with treaty fishing rights at usual and accustomed places within the affected water resource inventory area

Amends existing water law (RCW 90.54.020 and 90.03.247) to create an exception for small-scale nonconsumptive hydropower while maintaining environmental protections