Washington State Supreme Court Upholds the Municipal Water Law

The Washington State Supreme Court has ruled that key provisions of the Municipal Water Law (MWL) are facially constitutional.1 The ruling affects water rights across Washington State, upholding the flexibility and certainty that the MWL provides to purveyors, municipalities, and other “municipal water suppliers.” However, the Court stressed that the ruling is limited to the “facial constitutional challenges” that were before the Court, leaving room for consideration of similar claims in the future that may be advanced under “as applied” challenges.

Under the MWL, a “municipal water supplier” has distinct legal rights that are largely unavailable to other entities that hold water rights in Washington State:

  1. A municipal water supplier’s water rights that were perfected based on system capacity (“pumps and pipes”), rather than beneficial use, are rights in “good standing.”2
  2. Municipal water suppliers may hold inchoate water rights without being subject to the state’s relinquishment statute.3
  3. Municipal water suppliers may change a water right’s place of use through water system planning.4
  4. Municipal water suppliers may expand the scope of a water right beyond the population figure in their water right document.5
  5. Municipal water suppliers may expand the scope of a water right beyond the service connection figure in their water right document.6

For the first time in state history, the MWL defined “municipal water supplier”7 and “municipal water supply purposes.”8 Specifically, the MWL defined a “municipal water supplier” as any entity that (1) provides water to 15 or more residential service connections, or (2) provides water to a nonresidential population that is, on average, at least 25 people for at least 60 days a year.9

Because the MWL retroactively applied these provisions, opponents of the MWL argued that provisions in the MWL facially violated separation of powers.10 The opponents also argued that the provisions facially violated due process under the Washington State Constitution.

The Court unanimously rejected both facial challenges. However, it is likely that the MWL’s constitutionality will be litigated again in an “as applied” challenge. As the Court noted in its opinion, one such case, Cornelius v. Dep’t of Ecology,11 has already made its way to the Washington Pollution Control Hearings Board.

While municipalities and purveyors holding “pumps and pipes” water right certificates will be encouraged by today’s ruling, an element of risk and uncertainty remains as a result of the limited scope of the legal challenges that were before the Court.

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1 Lummi Indian Nation v. State, ___ Wn.2d ___ (2010), available at:
http://www.courts.wa.gov/opinions/?fa=opinions.disp&filename=818096MAJ
2 RCW 90.03.330(3).
3 RCW 90.14.140(2)(d).
4 RCW 90.03.386(2).
5 RCW 90.03.260(5).
6 RCW 90.03.260(4).
7 RCW 90.03.015(3).
8 RCW 90.03.015(4).
9 RCW 90.03.015(3) and (4).
10 The opponents argued that the MWL’s definition of “municipal water supplier” unsettled a previous Washington State Supreme Court decision. See, Theodoradus v. Ecology, 135 Wn.2d 582, 957 P.2d 1241 (1998).
11 Cornelius v. Dep't of Ecology, No. 06-099 (Wash. Pollution Control Hr'gs Bd. Dec. 7, 2007).

New Public Works Reporting Requirements

EHB 2805, which was recently signed into law by Governor Gregoire, requires contractors on various Washington public works projects estimated to be over $1 million (certain project are exempt) to report information regarding certain off-site, prefabricated, non standard items produced outside of the state of Washington. The information must be provided as part of the contractor’s affidavit of wages paid form. The requisite information includes: (1) the estimated cost of the public works project; (2) the name of the awarding agency and the title of the project; (3) the value of the off-site, pre-fabricated, non-standard project specific items produced outside the state of Washington; and (4) the name, address, and federal employer identification number of the manufacturer of the off-site, pre-fabricated, non-standard project specific items. To review the bill, click here.

Contractors
The teeth behind the new law is that a contractor’s repeated failure (more than once) to provide this information means the contractor is not “responsible”, which would preclude the contractor from bidding on other projects.

Public Owner Requirements
Public agencies must put the reporting requirements in their bid documents. Requisite form language is found at the General Administration Office website, by clicking here.

Questions?
Various questions are addressed on Labor and Industries’ website including, What projects are exempt? When does the law go in effect? What happens to contractors and subcontractors who do not comply with the new law? Click here.
 

Can homebuying consumers bear the cost of new green and energy codes during recession?

Some of our prior posts included information about new energy efficient “Net Zero” Homes and California’s landmark decision to mandate a Green Building Code (CALGREEN). However, there may be unintended financial consequences when code officials mandate green and more energy efficient homes. 

Concern about these consequences caused the Building Industry Association of Washington (BIAW) to file a lawsuit on behalf of its members.  The complaint alleges that the end result of new provisions in the Washington State Energy Code that go into effect in July 2010 will be that fewer homes will be built and sold because consumers cannot afford to buy the homes that would be built under the new code requirements.  BIAW alleges that the cost to comply with these code requirements would increase the cost of an average home by $4,000-$15,000.  Probably a tough sell to first time buyers in recession. 

According to the Washington State Building Code Counsel (SBCC) in the long run these code requirements will result in lower energy costs over the life of the homes.  However that may be small consolation to buyers who cannot afford these energy efficient and code compliant homes in the first place.

This possible energy and code conflict would not be the first of its kind in Washington.  In the 1990s building and energy codes mandated tighter insulated buildings that featured exterior fire resistive gypsum sheathing.  The problem was that in wet climates like western Washington, when rain penetrated behind cladding, the result was mold, a loss of structural capacity and hundreds of millions of dollars in property damage.  This conflict also dramatically increased the cost of insurance on residential construction projects and hence increased the cost of homes.

So apparently major changes in building and energy code requirements may need to be tested by the courts and mother nature before code officials, builders and consumers all realize the intended benefits.