(1) Water management and infrastructure improvement projects eligible for funding involve changes in how and when water is diverted, withdrawn, conveyed, or used to benefit streamflows and instream resources to implement chapter 90.94 RCW. Examples include conservation and efficiency projects such as diversion modifications, lining and piping, sprinkler conversion, and other irrigation efficiencies, as well as source switches, and streamflow retiming projects. Innovative methods will be considered.

(2) Projects must include sufficient provisions and protections so that completed projects will provide either or both:

(a) Permanent streamflow improvement.

(b) Access to new water supplies when identified in a watershed plan adopted under RCW 90.94.020 or 90.94.030.

(3) To meet subsection (2) of this section, conservation and water use efficiency projects must permanently convey the saved water to ecology to be held in the trust water rights program for instream flow purposes.