[As Amended by Senate Committee of the Whole]

         
As Amended by Senate Committee
         
Session of 2000
         
Substitute for HOUSE BILL No. 2144
         
By Committee on Environment
         
2-21
         

11             AN  ACT [relating to water; prohibiting sales of motor-vehicle fuel
12             containing certain chemicals threatening water quality and pro-
13             viding penalties for violations;]concerning the multipurpose small
14             lakes program; amending K.S.A. 82a-1602 and 82a-1603, 82a-1603,
15             82a-1604, 82a-1605 and 82a-1606 and repealing the existing
16             sections.
17      
18       Be it enacted by the Legislature of the State of Kansas:
19             Section  1. K.S.A. 82a-1602 is hereby amended to read as follows:
20       82a-1602. (a) In order to provide public water supply storage and water
21       related recreational facilities in the state there is hereby established a
22       multipurpose small lakes program. The program shall be administered by
23       the state conservation commission.
24        (b)  Except as provided by subsection (c), the state conservation com-
25       mission shall adopt all rules and regulations necessary to implement the
26       provisions of this act.
27        (c)  The Kansas water office shall adopt all rules and regulations gov-
28       erning recovery of the state's costs incurred in providing public water
29       supply storage in multipurpose small lake projects.
30        Sec.  2. K.S.A. 82a-1603 is hereby amended to read as follows: 82a-
31       1603. When used in this act:
32        (a)  ``Chief engineer'' means the chief engineer of the division of water
33       resources of the state board department of agriculture.
34        (b)  ``Class I funded project'' means a proposed new project or reno-
35       vation of an existing project located within the boundaries of an organized
36       watershed district which is receiving or is eligible to receive financial
37       participation from the state conservation commission for the flood control
38       storage portion of the project.
39        (c)  ``Class II funded project'' means a proposed new project or reno-
40       vation of an existing project which is receiving or is eligible to receive
41       financial participation from the federal government.
42        (d)  ``Class III funded project'' means a proposed new project or ren-


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  1       ovation of an existing project located outside the boundaries of an organ-
  2       ized watershed district which is not receiving or is not eligible to receive
  3       financial participation from the state conservation commission or the fed-
  4       eral government except as provided in K.S.A. 82a-1606, and amendments
  5       thereto.
  6        (e)  ``Flood control storage'' means storage space in reservoirs to hold
  7       flood waters.
  8        (f)  ``General plan'' means a preliminary engineering report describing
  9       the characteristics of the project area, the nature and methods of dealing
10       with the soil and water problems within the project area, and the projects
11       proposed to be undertaken by the sponsor within the project area. Such
12       plan shall include maps, descriptions and other data as may be necessary
13       for the location, identification and establishment of the character of the
14       work to be undertaken; a cost-benefit analysis of alternatives to the pro-
15       ject, including but not limited to, nonstructural flood control options and
16       water conservation and reuse to reduce need for new water supply stor-
17       age; and any other data and information as the chief engineer may require.
18        (g)  ``Land right'' means real property as that term is defined by the
19       laws of the state of Kansas and all rights thereto and interest therein and
20       shall include any road, highway, bridge, street, easement or other right-
21       of-way thereon.
22        (h)  ``Multipurpose small lake project'' means:
23        (1) A dam and lake containing (1): (A) Flood control storage; and (2)
24       (B) either public water supply storage or recreation features, or both; or
25        (2)  renovation or reconstruction of an existing dam or lake to provide
26       at least two of the following: (A) Increased or restoration of flood control
27       storage; or (B) increased or restoration of public water supply storage; or
28       (C) increased or restoration of recreation features.
29        (i)  ``Public water supply'' means a water supply for municipal, indus-
30       trial or domestic use.
31        (j)  ``Public water supply storage'' means storage of water for municipal,
32       industrial or domestic use.
33        (k)  ``Recreation feature'' means water storage and related facilities for
34       activities such as swimming, fishing, boating, camping or other related
35       activities.
36        (1)  ``Sponsor'' means (1) any political subdivision of the state which
37       has the power of taxation and the right of eminent domain; (2) any public
38       wholesale water supply district; or (3) any rural water district.
39        (m)  ``Water user'' means any city, rural water district, wholesale water
40       district or any other political subdivision of the state which is in the busi-
41       ness of furnishing municipal or industrial water to the public.
42        Sec.  3. K.S.A. 82a-1604 is hereby amended to read as follows:
43       82a-1604. (a) The state may participate with a sponsor in the de-


3

  1       velopment, construction or renovation of a class I multipurpose
  2       small lake project if the sponsor has a general plan which has been
  3       submitted to and approved by the chief engineer in the manner
  4       provided by K.S.A. 24-1213 and 24-1214, and amendments thereto.
  5       If the Kansas water office determines that additional public water
  6       supply storage shall be needed in that area of the state within 20
  7       years from the time such project is to be completed and a water user
  8       is not available to finance public water supply storage, the state
  9       may include public water supply storage in the project. The Kansas
10       water office shall apply for a water appropriation right sufficient
11       to insure a dependable yield from the public water supply storage.
12       The Kansas water office shall be exempt from all applicable fees
13       imposed pursuant to K.S.A. 82a-701 et seq., and amendments
14       thereto, for such applications.
15             (b) The sponsor of such class I project shall be responsible for
16       acquiring land rights and for the costs of operation and mainte-
17       nance of such project. The sponsor participating in the construction
18       of recreation features of a project shall pay for that portion of the
19       project attributable to recreation. The state may provide up to 50%
20       of the engineering and construction costs and up to 50% of the costs
21       of land rights associated with recreation features. Subject to the
22       provisions of subsection (a) subsections (a) and (c), the state may pay
23       up to 100% of the engineering and construction costs of flood con-
24       trol and public water supply storage. All other costs of such project,
25       including land, construction, operation and maintenance shall be
26       paid by the sponsor.
27             (c) The state shall not participate in the costs of public water supply
28       storage in a renovation project unless the Kansas water office determines
29       that renovation is the most cost effective alternative for such storage. The
30       state shall be authorized to pay only up to 50% of the engineering and
31       construction costs of public water supply storage in such a renovation
32       project.
33             (d) The Kansas water office may recover the state's costs in-
34       curred in providing public water supply storage in such a new class
35       I project by selling such storage and the associated water rights.
36             Sec.  4. K.S.A. 82a-1605 is hereby amended to read as follows:
37       82a-1605. (a) The state may participate with a sponsor in the de-
38       velopment, construction or renovation of a class II multipurpose
39       small lake project if the sponsor has a general plan which has been
40       submitted to and approved by the chief engineer in the manner
41       provided by K.S.A. 24-1213 and 24-1214, and amendments thereto.
42       If the Kansas water office determines that additional public water
43       supply storage shall be needed in that area of the state within 20


4

  1       years from the time such project is to be completed and a water user
  2       is not available to finance public water supply storage, the state
  3       may include public water supply storage in the project. The Kansas
  4       water office shall apply for a water appropriation right sufficient
  5       to insure a dependable yield from public water supply storage. The
  6       Kansas water office shall be exempt from all applicable fees imposed
  7       pursuant to K.S.A. 82a-701 et seq., and amendments thereto, for such
  8       applications.
  9             (b) In a class II project, the state may assume initial financial
10       obligations for public water supply storage in watersheds by enter-
11       ing into long-term contracts with the federal government. In order
12       to provide security to the federal government, the state may grant
13       assignments of water rights, either appropriation rights or water
14       reservation rights; assignments of rights under existing or prospec-
15       tive water purchase contracts; assignments, mortgages or other
16       transfers of interests in real property held by the state and devoted
17       to the specific small lake project for which security is sought; or
18       may provide other security that is permissible under state law and
19       acceptable by the federal government. Instead of contracting to re-
20       pay costs under long-term contracts, the state may pay all of the
21       required costs of the public water supply storage in a lump sum.
22             (c) The sponsor of such class II project shall be responsible for
23       acquiring land rights and for the costs of operation and mainte-
24       nance of such project. The sponsor participating in the construction
25       of recreation features of a project shall pay for that portion of the
26       project attributable to recreation. The state or federal government
27       may provide up to 50% of the engineering and construction costs
28       and up to 50% of the costs of land rights associated with recreation
29       features. The state shall not participate in the costs of public water supply
30       storage in a renovation project unless the Kansas water office determines
31       that renovation is the most cost effective alternative for such storage. The
32       state shall be authorized to pay only up to 50% of the engineering and
33       construction costs of public water supply storage in such a renovation
34       project.
35             (d) The Kansas water office may recover the state's costs in-
36       curred in providing public water supply storage in such a new class
37       II project by selling such storage and the associated water rights.
38             Sec.  5. K.S.A. 82a-1606 is hereby amended to read as follows:
39       82a-1606. (a) The state may participate with a sponsor in the de-
40       velopment, construction or renovation of a class III multipurpose
41       small lake project if the sponsor has a general plan which has been
42       submitted to and approved by the chief engineer in the manner
43       provided by K.S.A. 24-1213 and 24-1214, and amendments thereto.


5

  1       If public water supply storage is included in the project, the sponsor
  2       of such class III project shall pay for 100% of the costs associated
  3       with the public water supply storage portion of such project unless
  4       the Kansas water office determines that additional public water
  5       supply storage shall be needed in that area of the state within 20
  6       years from the time such project is to be completed and a sponsor
  7       is not available to finance 100% of the costs associated with the
  8       public water supply storage, the state may participate in the public
  9       water supply storage costs of the project. If the state participates in
10       the public water supply storage costs, the Kansas water office shall
11       apply for a water appropriation right sufficient to insure a depend-
12       able yield from public water supply storage. The Kansas water of-
13       fice shall be exempt from all applicable fees imposed pursuant to
14       K.S.A. 82a-701 et seq., and amendments thereto, for such
15       applications.
16             (b) The sponsor of such class III project shall be responsible for
17       acquiring land rights and for the costs of operation and mainte-
18       nance of the project. The sponsor participating in the construction
19       of recreation features of a project shall pay for that portion of the
20       project attributable to recreation. The state may provide up to 50%
21       of the engineering and construction costs and up to 50% of the costs
22       of land rights associated with recreation features. Subject to the pro-
23       visions of subsections (a) and (c), the state may pay up to 100% of the
24       engineering and construction costs of flood control storage and pub-
25       lic water supply storage. All other costs of such project, including
26       land, construction, operation and maintenance, shall be paid by the
27       sponsor.
28             (c) The state shall not participate in the costs of public water supply
29       storage in a renovation project unless the Kansas water office determines
30       that renovation is the most cost effective alternative for such storage. The
31       state shall be authorized to pay only up to 50% of the engineering and
32       construction costs of public water supply storage in such a renovation
33       project.
34             (d) The Kansas water office may recover the state's costs in-
35       curred in providing public water supply storage in such a new class
36       III project, and interest on such costs, by selling such storage and
37       the associated water rights. Interest on such costs shall be computed
38       at a rate per annum which is equal to the greater of: (1) The average
39       rate of interest earned the past calendar year on repurchase agree-
40       ments of less than 30 days' duration entered into by the pooled
41       money investment board, less 5%; or (2) four percent.
42        [New Sec.  6. (a) No person shall sell or offer for sale in Kansas
43       any motor-vehicle fuel, as defined in K.S.A. 79-3401, and amend-


6

  1       ments thereto, containing methyl tertiary-butyl ether (MTBE), ex-
  2       cept as provided in this act.
  3             [(b) On and after July 1, 2002, no motor-vehicle fuel delivered
  4       to any service station within Kansas shall contain MTBE in quan-
  5       tities greater than 0.5% by volume. On and after July 1, 2003, no
  6       motor-vehicle fuels delivered at the pump to any motor vehicle in
  7       Kansas shall contain MTBE in quantities greater than 0.5% by
  8       volume.
  9             [(c) On and after July 1, 2002, the motor-vehicle fuel retailer
10       shall be provided, at the time of delivery of motor-vehicle fuel, on
11       an invoice, bill of lading, shipping paper or other documentation,
12       a declaration of the MTBE content, by volume percent, in the motor-
13       vehicle fuel delivered.
14             [(d) On and after July 1, 2001, a notice stating ``THIS FUEL
15       CONTAINS MTBE'' shall be displayed on each dispenser from
16       which motor-vehicle fuel containing MTBE in excess of the detec-
17       tion limit of the approved test method is sold to the public. The
18       letters on the notice shall be at least 1/2 inch in height and 1/16 inch
19       stroke (width of type). The notice shall be conspicuously displayed
20       on the upper 50% of the dispenser front panel in a position clear
21       and conspicuous from the driver's position.
22             [(e) Determination of the volume percentage of MTBE in motor-
23       vehicle fuel shall be by one or more test methods approved by the
24       secretary of agriculture.
25             [(f) In no event shall the provisions of this act be interpreted to
26       authorize quantities of MTBE in motor-vehicle fuels to exceed those
27       specified in any applicable Kansas or federal statute.
28             [(g) The secretary of health and environment or the director of
29       the division of environment, upon a finding that a person knowingly
30       and willfully has violated this section, may impose a penalty not to
31       exceed $10,000 which shall constitute an actual and substantial ec-
32       onomic deterrent to the violation for which it is assessed. In the case
33       of a continuing violation, every day such violation continues shall
34       be deemed a separate violation. No such penalty shall be imposed
35       except after notice of violation and opportunity for hearing upon
36       the written order of the secretary or the director of the division of
37       environment issued to the person who committed the violation. The
38       order shall state the violation, the penalty to be imposed and the
39       right to request a hearing thereon. The request for hearing shall be
40       in writing, directed to the secretary and filed with the secretary
41       within 15 days after service of the order. The hearings shall be
42       conducted in accordance with the Kansas administrative procedure
43       act.


7

  1             [(h) Nothing in this section shall be construed to abridge, limit
  2       or otherwise impair the right of any person to damages or other
  3       relief on account of injury to persons or property and to maintain
  4       any action or other appropriate proceeding therefor.
  5             [(i) The provisions of this section shall not take effect until the
  6       United States environmental protection agency grants a waiver al-
  7       lowing the state of Kansas to control or prohibit the use of MTBE
  8       in motor-vehicle fuels.]
  9        Sec.  3. 6. [7.] K.S.A. 82a-1602 and 82a-1603, 82a-1603, 82a-1604,
10       82a-1605 and 82a-1606 are hereby repealed.
11        Sec.  4. 7. [8.] This act shall take effect and be in force from and
12       after its publication in the statute book.
13