HB0116

Prohibits the destruction of water molecules through hydrogen and oxygen separation for industrial hydrogen production from being considered a beneficial use of water.

• Establishes that destruction of water molecules by separating hydrogen and oxygen atoms for industrial hydrogen production does not constitute beneficial use, with an exception for uses resulting in evaporation losses where molecular destruction is not the primary purpose and for wastewater uses. (W.S. 41-3-101(b), Sec. 1)
• Requires the board of control to deny petitions for change of water use that would result in destruction of water molecules for hydrogen production when the water source has been subject to priority regulation or interstate compact compliance within the previous ten years. (W.S. 41-3-104(c), Sec. 1)
• Requires the state engineer to deny applications for new water permits that would result in destruction of water molecules for hydrogen production when the proposed source has been subject to priority regulation or interstate compact compliance within the previous ten years, with an exception for by-product water applications. (W.S. 41-3-931(b), Sec. 1)
• Prohibits petitions or applications under the public notice and hearing process from being granted if they would result in destruction of water molecules for hydrogen production, with an exception for by-product water applications. (W.S. 41-3-932(f), Sec. 1)
• Requires the state engineer to deny applications, petitions to amend permits, or applications for temporary transfer that would result in destruction of water molecules for hydrogen production when the proposed source has been subject to priority regulation or interstate compact compliance within the previous ten years, with an exception for by-product water applications. (W.S. 41-4-503(b), Sec. 1)
• Specifies that the act applies only to new water permit applications or change of use applications filed on or after July 1, 2026, and that permits or water rights issued before that date are not construed to authorize destruction of water molecules unless explicitly permitted under prior law. (Sec. 2)

Effective: July 1, 2026

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