1. (1) As used in this section:

   1. (a) "Agricultural land" means land in agricultural use, as defined in Section 59-2-502.
   2. (b) "Dedicated water" means water that has been recognized for delivery or use under Section 73-3-30 and a dedicated water application.

   3. (c) "Dedicated water application" means an application to change the existing nature of use and place of use for a water right by adding a nature of use for:

      1. (i) an instream flow within a specified reach of a natural or altered stream;
      2. (ii) use on sovereign lands; or
      3. (iii) a project to deliver water to a reservoir located partially or entirely within the Colorado River System in the state in accordance with this section.
   4. (d) "Split season use" means making sequential use of a portion of a water right in the same calendar year.

2. (2) A dedicated water application may:

   1. (a) be filed for:

      1. (i) a fixed period of time; or
      2. (ii) an indefinite period of time; and
   2. (b) include a split season use.

3. (3) Approval of a dedicated water application does not:

   1. (a) change an existing element of the underlying water right;
   2. (b) extend the time for filing proof or taking other required action associated with the underlying water right; or
   3. (c) require the applicant to make dedicated water available for use in a given year or in a specific quantity or volume.

4. (4)

   1. (a) The state engineer shall process a dedicated water application in accordance with Sections 73-3-3 and 73-3-8.
   2. (b) The state engineer shall prioritize the processing of a dedicated water application.
   3. (c) The state engineer may deny a dedicated water application if the state engineer determines that the dedicated water application would result in land being removed from agricultural land for a full irrigation season in more than two years out of a five-year period on the same agricultural field.

5. (5) The state engineer may require an owner of an approved dedicated water application under this section to provide:

   1. (a) annual notice of intent to exercise the dedicated water application;
   2. (b) information about the annual volume of water to be dedicated by the owner from the underlying water right; and

   3. (c) other information the state engineer considers necessary to:

      1. (i) ensure the dedication of water is taking place;
      2. (ii) establish that the owner still has a legal interest in the underlying water right used as the basis for the dedication of water; or
      3. (iii) determine the quantity of water being dedicated.

6. (6) An approved dedicated water application lapses:

   1. (a) automatically on the date the underlying water right that is the basis of the dedicated application:

      1. (i) lapses;
      2. (ii) is withdrawn; or
      3. (iii) is declared forfeited or abandoned; or

   2. (b) upon notice from the state engineer if:

      1. (i) the applicant no longer holds a legal interest in the underlying water right that is the basis of the dedicated water application;
      2. (ii) the delivery of dedicated water can no longer be carried out as stated in the dedicated water application;
      3. (iii) the applicant has not complied with the conditions established by the state engineer in the order approving the dedicated water application; or
      4. (iv) the applicant fails to provide the information requested by the state engineer under Subsection (5).

Enacted by Chapter 313, 2026 General Session