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Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

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Page 1: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources2012 Water Right Licensing Summary

By Shelley Keen, Craig Saxton, and Dan NelsonNovember 29, 2012

Page 2: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

The Challenge

Page 3: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Water Appropriation Process

Application for Permit

Legal Notice

Permit

Proof of Beneficial Use Statement and

Examination Fee

Beneficial Use Field

Examination

Water Right License

Protest?Protest

Resolution Process

I.C. 42-203A(5) Criteria Met?

Application Denied

1 to 5

Years

Use Devel-oped?

Permit Lapses

Beneficial Use

Found?

Void Permit

No

Yes

Yes

No

Yes

No

No

Yes

Page 4: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

The Water Right Licensing Backlog

As of April 1, 2012, the backlog was 3200 active permits with proof of beneficial use submitted.

Of the 3200, examinations had already been conducted for 600, but licenses had not yet been issued.

2600 of the 3200 active permits required examination.

The backlog isn’t static.As of November 23, 2012, we have 1570 active permits

with proof yet to be submitted.We expect to issue over 300 new permits per year for

the foreseeable future.

Page 5: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

FY 1974 FY 19840

200

400

600

800

1000

1200

1400

1600

1800

1654

1197

672

563

Idaho Department of Water ResourcesPermits vs. Licenses -- 1974 and 1984

Permits IssuedLicenses Issued

Page 6: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water ResourcesLicensing Backlog Timeline

Mid -1980s Examination fee requiredFee used to hire temporary seasonal examiners, mostly

college studentsCertified Water Right Examiner (private sector) option

implemented

1987Snake River Basin Adjudication (SRBA) commencedIDWR emphasized work on the SRBA

End of FY1999Licensing backlog is 2585

Page 7: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Water Right Licensing Timeline Continued

2001IDWR redesigns its software for processing water rightsNo licenses issued for a year

2006Water Rights staff work on SRBA claim reviewLicensing effort suspended

2007 to 2011Transfer backlog reduction prioritizedLicensing effort minimal

April 1, 2012Backlog is 3200

Page 8: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Water Right Licensing Program Urgency

Idaho Supreme Court Decision in the 2011 Brownlee Hydro Case (Idaho Power Company v. Idaho Department of Water Resources):

“Therefore, a water right does not vest until all of the statutory steps have been completed, including obtaining a license.” (Page 13)

“Indeed, if Idaho Power believed it was being injured by the

Department’s delay in issuing the license, it could have sought a writ of mandamus to compel action by the Department. I.C. § 7-302 provides an avenue for a party ‘to compel the performance of an act which the law especially enjoins as a duty resulting from an office, trust or station . . . .’ I.C. § 7-302. “ (Page 15)

Page 9: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Water Right Licensing Program Urgency Continued

Because permits do not permanently establish the elements of water rights, their value is uncertain. When farms and businesses seek operating loans, licenses give lenders confidence.

IDWR must base water right licenses on the beneficial use established prior to the date proof of beneficial use was submitted. As years pass, it gets difficult for water right examiners to confirm what was developed at the time proof of beneficial use was made.

The water right licensing backlog developed under competing priorities for Department resources. Reduced demand for water right permits and transfers has made Department resources available for the licensing effort.

Page 10: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Effects of Past Licensing Measures

Temporary examinersMany field reports left significant questions

unanswered when the temporary employment period ended.

Turning the examinations over to private sector Certified Water Right Examiners

The contribution by CWREs is extremely valuable, but few permits holders choose CWREs because IDWR’s statutorily mandated fees are usually less.

Page 11: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

What licensing measures have worked?

In 2007 regional managers were given the authority to sign water right licenses. This eliminated a bottleneck in the state office.

Having the field examiner also draft the license has improved efficiency and raised the quality of exams and licenses.

Beneficial Use Field Examination Rules were updated in the spring of 2012 to remove the requirement for on-site examinations for permits that meet certain requirements.

The Director required contributions to the water right licensing effort from staff members in Hydrology, Water Distribution, Planning, and Geographic Information Systems. Staff members in Fiscal and Information Technology also contributed to the licensing effort.

Page 12: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Accomplishment

Page 13: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

Jan-10

Mar-10

May-10

Jul-10

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

0

500

1000

1500

2000

2500

3000

3500

4000

Idaho Department of Water ResourcesActive Permits with Proof Submitted

Eastern Southern Western Northern

Page 14: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

18517%

21620%

10810%

20619%

19118%

15815%

Idaho Department of Water ResourcesBeneficial Use Field Examination Effort

April - Oct. 20121064 Examinations Conducted

Eastern

Northern

Southern

Western

Water Rights Section

Other State Office Examiners*

* Other State Office Examiners includes contributions from In-formation Technology, Geospatial Technology, Hydrology, Water Compliance, Fiscal, and Planning. This group includes Dan Nel-son and Sandra Thiel.

Page 15: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

10216%

14723%

8814%

10817%

19530%

Idaho Department of Water ResourcesWater Right Licensing Effort

April - Oct. 2012640 Licenses Issued

Eastern Northern

Southern Western

State Office

Page 16: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-120

500

1000

1500

2000

2500

3000

676 676 649 629 559 524 461

608 611539 502

432 418394

426 407

367368

314281

251

922 921

893859

803745

661

Idaho Department of Water ResourcesTotal Permits Requiring A Field Examination

Eastern Northern Southern Western

Page 17: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Proof Made before 1990

Proof Made in the 1990s

Proof Made 2000 to 2009

Proof Made in 2010 or Later

0

200

400

600

800

1000

1200

1400

1600

147

892

1409

716

122

764

1150

593

Idaho Department of Water ResourcesAge of the Water Right Licensing Backlog

4/1/201211/16/2012

Page 18: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Cost Savings from Exempting On-Site Examinations

In 2012 the Beneficial Use Examination Rules were modified to allow some small beneficial uses of water to be confirmed without an on-site inspection. Of the 166 proof statements received April to Oct. 2012, development of the permitted beneficial use was confirmed without a field visit 40 times. IDWR estimates that it requires, on average, $339 more to conduct a field examination than it does to confirm beneficial use through desktop review. The estimated cost savings over seven months has been $13,560.

Projected Cost without Rule Change Estimated Cost with Rule Change$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$153,882$140,322

Estimated Cost Savings from Rule Change(166 Proof Statements Submitted April - Oct. 2012)

Page 19: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Looking Ahead

Page 20: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY120

100

200

300

400

500

600

700

Idaho Department of Water ResourcesApplications for Permit, Transfer Applications, and Licenses

Applications ReceivedTransfer Applications ReceivedLicenses Issued

Page 21: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

0.04 cfs or Less52%

0.05 cfs to 0.99 cfs31%

1.00 cfs or More10%

Storage7%

Idaho Department of Water ResourcesWater Right Licenses Issued

April - Oct. 2012640 Licenses Issued

Page 22: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

0.04 cfs or Less22%

0.05 cfs to 0.99 cfs49%

1.00 cfs or More23%

Storage Only6%

Idaho Department of Water ResourcesActive Permits on Nov. 23, 2012

4181 Permits

Page 23: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Idaho Department of Water Resources

Water Right Licensing – Considerations for the Future

As the previous slides show, the increased licensing effort corresponds to a period of reduced demand for permits and transfers. If the economy improves, and applications for new water rights and transfers increase, the licensing effort may not be sustainable with current staffing levels.

Staff members reassigned from non-Water Right programs contributed 15% of the field examinations in 2012. Committing all of these staff members to field examinations may not be sustainable, depending on demands for services in their respective programs, such as Hydrology and Geospatial Technology.

Field staff members struggled to work with aging equipment and vehicles, and there were not always enough to go around. Also, increased usage results in increased wear-and-tear. Sustaining the examination and licensing effort will require substantial investment in vehicles and equipment.

Retaining experienced staff members is key to the effort, as it was for the transfer backlog reduction. Experienced staff members work more efficiently.

Page 24: Idaho Department of Water Resources 2012 Water Right Licensing Summary By Shelley Keen, Craig Saxton, and Dan Nelson November 29, 2012

Questions?

Shelley KeenWater Rights Section [email protected]

208-287-4947

Craig SaxtonWater Rights Supervisor

[email protected]

Dan NelsonStaff Hydrologist

[email protected]