Utah lawmakers met Wednesday, Oct. 21, 2026, to review a performance audit regarding water and sewer planning, funding, and rate setting for Salt Lake Public Utilities, a move following investigations into the accuracy of state water funding studies. The Political Subdivisions Interim Committee's session focused on the audit and the status of unpassed water rate legislation, addressing long-standing concerns about how the state manages and coordinates water infrastructure assistance.
Legislative Audit Review
The meeting included a review of audit 2026-26, titled "A Review of Water and Sewer Planning, Funding, and Rate Setting." The audit, presented by Office of the Legislative Auditor General staff members Leah Blevins, a manager, and Morgan Hagey, a strategic lead performance auditor, was part of a broader legislative effort to examine how political subdivisions manage essential utilities. The committee also heard from the Department of Public Utilities for Salt Lake City during the session.
Unpassed Water Rate Legislation
The committee discussed the status of H.B. 501, "Water Modifications," which did not pass during the 2026 General Session. According to the Utah Legislature, the unpassed bill would have required secondary water providers to amend contracts to include metering and usage-based billing requirements starting in 2030. Additionally, the bill would have required local investment in water infrastructure as a condition for water providers to receive state funding.
Stakeholder Testimony
During the discussion on water rates, several key figures provided testimony or were scheduled for input. Shalaine DeBernardi, the Deputy Director of the Utah Division of Water Resources, and Zach Frankel of the Utah Rivers Council were among those involved in the discussion. Danyce Steck, the Director of Administrative Services for West Jordan City, also participated in the dialogue regarding water-related policy and the impact of rate modifications.
Coordinating State Water Funds
The discussion comes amid ongoing efforts to manage the state's water infrastructure through the Water Development Coordinating Council. This council, which includes representatives from the Division of Water Resources, the Water Quality Board, the Drinking Water Board, and the Department of Agriculture and Food, is tasked with coordinating the use of state money to provide financial assistance to political subdivisions. The council's goal is to promote the conservation, development, treatment, and protection of Utah's waters.
The Unified Water Plan
The council recently adopted the Unified Water Infrastructure Plan (UWIP) by March 1, 2026, as required by statute. The UWIP is designed to be a comprehensive, prioritized list of water infrastructure projects that may require state financial assistance over the next 20 years. This framework aims to improve funding coordination by determining how funds are distributed between agencies and identifying when additional funds must be requested from the Utah Legislature.
Infrastructure Planning Requirements
The Utah Division of Water Resources manages the UWIP, which encourages proactive planning by requiring entities—such as cities, counties, and water conservancy districts—to submit projects for consideration. The first UWIP funding process was not expected to be fully implemented until July 1, 2026, marking the beginning of the 2027 fiscal year. To qualify for most state funds, water infrastructure projects must be included on the prioritized list, with a yearly cutoff date of May 1 for incorporation into the upcoming agency plan.
Drinking Water Oversight
The Drinking Water Board, which is the administrative arm of the Division of Drinking Water, is responsible for adopting and enforcing rules related to public drinking water systems. The board's mission involves monitoring issues such as "forever chemicals" in the state's drinking water. The board maintains a schedule of open meetings held at locations throughout the state to address public drinking water concerns.
