Executive Agreement 002-2021

This regulation develops the principles, scope and objectives of the General Water Law, issued by means of Decree No. 181-2009 dated the fourteenth (14) of December of two thousand nine (2009); for the protection, conservation, valorization and utilization of the water resource and to promote the integrated management of the use, exploitation, development, applications and any other forms of utilization of the water resource, as well as the exploitation or utilization of ecosystems and resources related thereto at the national level.

The provisions of this Regulation are of public order and general interest, of general and mandatory compliance and extend generically its scope of application to all waters comprised in Article 4 of the General Water Law. Notwithstanding the foregoing, taking into account their material particularities and different organic and functional treatment, maritime waters shall be subject to subsequent regulatory development, all of this without prejudice to other future developments that complete the mandate of Article 104 of the aforementioned Law. This Regulation constitutes the general regulatory framework to which the particular legislation on maritime waters, fishing, waters for human consumption, irrigation for agricultural purposes, hydroelectric generation, protection of aquatic ecosystems, biodiversity and any other that may be promulgated in relation to water uses shall be subordinated. CHAPTER II DEFINITIONS AND CONCEPTS

For the purposes of this Regulation, the reference to the Law shall mean the General Water Law, issued by means of Decree No. 181-2009 dated the fourteenth (14) of December of two thousand nine (2009); Likewise, the reference to MI AMBIENTE+ shall mean the Secretariat of State in the Offices of Natural Resources and Environment and when reference is made to "this Regulation", it shall mean the present Regulation. For the purposes of this Regulation, the following definitions shall apply, in addition to those indicated in the Law:

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  Utilization: The use of a determined volume of water that is taken from one or several points, for one or more uses that generate economic benefits, whether through permits, licenses or concessions granted, according to the case by the authority that in accordance with the Law and this Regulation corresponds.

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  Reef: Marine community of shallow waters near the coast.

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  Canon: It is a payment that taxes the utilization of water, based on the use made thereof.

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  Environmental Certification: (mentioned in Article 69 of the Law) understood as Environmental License or Environmental Audit issued by the competent authority.

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  Compensation and Payment for Environmental Services: For the purposes of this Regulation, these are considered basic institutional mechanisms, recently utilized in order to generate incentives to local actors to provide environmental services and favor the protection and conservation of the public hydraulic domain and its associated ecosystems.

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  Consultative Councils: As established in the Forest Law, these are instances of citizen participation, consultation, conciliation, social control and coordination of actions of the public sector and private and community organizations involved in the protection, exploitation, conservation and social control of forest areas, protected areas and wildlife. The representations and participation in such instance shall be exercised ad honorem. These councils shall have the competencies granted to them by the Law.

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  Water Rights: Granted through permits, licenses and concessions: It refers to the Rights of use of public domain waters, of a consumptive and non-consumptive nature, which the Water Authority or the Municipalities grant through a title of utilization that permits their exploitation and use or utilization. Such titles of utilization may be of different types: permits, licenses and concessions.

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  Springs: It is a natural source of water that springs from the earth or among the rocks, may be permanent or temporary.

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  Special Management of Water Resources: When the Water Authority, at the proposal of the National Council of Water Resources (CNRH) or some Basin Council, determines that the conditions of utilization of the water resource, whether to guarantee the well-being of the population or the conservation of ecosystems, require modification of the current management thereof, it may carry out the appropriate measures to achieve adequate management of the resource.

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  Mangrove: Land covered by water from high tides, full of artificial lakes that cut through it forming many low islands, where trees that live in salt water grow.

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  Hydrographic Microbasin: A first-order portion proper to the territory of a specific subbasin, which comprises a delimited territory with its water bodies that correspond and that invariably flow into a tributary, subtributary or subsubtributary of the main channel, and that because of the entity of its water resources, the number of users that utilize them, the economic activity that they support or other singular circumstances, justify their consideration as a territorial unit grouped for more efficient and sustainable management of its water resources.

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  Basin Organizations: Used in this regulation as a synonym for Basin Councils and smaller units of subbasin and microbasin, they are instances of coordination and conciliation of actions of public and private agents involved in multisectorial management in their geographic scope; which includes Basin, Subbasin and Microbasin Councils constituted with the purpose of achieving active and permanent participation of the Central Government, through regional offices, local governments, civil society, water user organizations and communities that intervene in their geographic scope, for the integrated management of the water resource.

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  Water User Organization: Organizations of natural and/or legal persons legally constituted that, sharing the use, utilization and conservation of a water source, channel the participation of their members in the multisectorial and sustainable management of water resources.

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  National Water Plan: Used in the Law and in this regulation as a synonym for Sectorial Master Plan of the Water Resource or National Hydrological Plan.

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  Ecological Easement: It is a type of "reserve" as defined in Article 37 of the Law that are created over spaces, resources and biological systems with the objective of conserving, protecting and preserving water resources and the biodiversity associated with them.

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  Legal Ecological Easement: It is a right in favor of the State (Water Authority), created for purposes of public utility that establishes legal limitations to the rights of use and utilization over property for reasons of conservation, protection and sustainability of water resources and the biodiversity associated with them.

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  Hydrographic Subbasin: It is a second-order portion, proper to the territory of a principal basin, which comprises a delimited territory, with several water bodies and which contains a tributary or affluent that directly flows into the main channel, possibly comprising diverse microbosins.

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  Tariff: Payment or charge that shall be fixed by the competent authority in concept of administrative procedures for the services it provides.

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  Users: Any natural or legal person that benefits from the use or utilization of the water resource for their subsistence, generation of economic activity or the enjoyment of cultural or recreational activities.

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  Beneficial Use of Water: It is the efficient, rational and sustainable utilization of the resource, in the volumes and for the purposes authorized.

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  Common Domestic Uses: Those that have as their purpose the satisfaction of primary subsistence needs, including drinking and human hygiene and other domestic uses, such as plant irrigation, washing of clothes and utensils and watering of domestic animals when the water resource is not accessed through installed public systems.

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  Residential Uses for Human Consumption: Those that have as their purpose the satisfaction of primary subsistence needs, including drinking and human hygiene and other domestic uses, such as plant irrigation, washing of clothes and utensils and watering of domestic animals when the water resource is accessed through installed public systems and that does not pose a risk to human health. TITLE II ADMINISTRATIVE ORGANIZATION CHAPTER I GENERAL ASPECTS

It is incumbent upon the Secretariat of Natural Resources and Environment (MI AMBIENTE+), the direction and sectorial leadership of water resources, in accordance with the Law and this Regulation, for which it shall act in coordination with the other competent state organisms in matters of water supply for human use and consumption, hydroelectric generation, irrigation for agricultural purposes, sanitary surveillance of waters and other associated activities, including the corresponding regulatory organisms, within the framework of the Law and other applicable legal provisions, in accordance with the organic framework defined in Article 5 of this regulation.

The Law constitutes the general regulatory framework to which legislation on water management shall be subordinated, for the protection, conservation, valorization and utilization of the water resource at the national level. In accordance with the Law, the Organic Framework for the direction and sectorial leadership of water resources is conformed as follows:

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  The National Council of Water Resources (CNRH).

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  The Water Authority. a) The National Institute of Water Resources (INRH); and b) Regional Agencies.

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  Basin Organizations, User Organizations and Consultative Councils.

The Law, in its Article 5, Objective 3, proposes to define the framework of competencies, functions and responsibilities of public administration in the management of water resources. For its part, the Institutionalization of the Bodies established in the Law is supported by the General Principles of the General Law of Public Administration, Articles 3, 14 and 45, referred to the scope of deconcentration.

Other organisms, such as the Regulatory Entity of Potable Water and Sanitation Services (ERSAPS), the National Autonomous Service of Water and Sewers (SANAA), the National Council of Water and Sanitation (CONASA), the municipalities, the Secretariat of Agriculture and Livestock (SAG), National Institute of Conservation and Forestry Development, Protected Areas and Wildlife (ICF), the Secretariat of Energy (SEN), General Directorate of Merchant Marine or others that had related competencies, shall exercise their functions in accordance with the corresponding laws, without prejudice to the functions proper to the Water Authority as provided in the Law and this Regulation. CHAPTER II NATIONAL COUNCIL OF WATER RESOURCES

The National Council of Water Resources (CNRH), is the consultative, deliberative and advisory body for proposing and concerting policies, giving follow-up and social control to the management of the water sector, whose opinions are determinative for instructing the Water Authority in the management of the water resource.

The National Council of Water Resources (CNRH) shall be governed by an Internal Operating Regulation that regulates its action in accordance with the provisions contained in the Law and this Regulation, with the purpose of contributing to the direction and sectorial leadership of the Water Resources of Honduras.

The National Council of Water Resources (CNRH) is conformed by a set of institutions, which are organized to develop and ensure integrated, participatory and multisectorial management, sustainable utilization, conservation, protection of quality and increase of the availability of water resources. In addition to the members mentioned in Article 8 of the Law, the Council may be integrated by: one (1) representative of the Regulatory Entity of Potable Water and Sanitation (ERSAPS), one (1) representative of the National Council of Potable Water and Sanitation (CONASA) and other public institutions that are established in the internal regulation of the council.

Only the representatives of the Association of Municipalities of Honduras (AMHON), National Autonomous University of Honduras (UNAH), National Federation of Farmers and Livestock Breeders of Honduras (FENAGH), Honduran Council of Private Enterprise (COHEP), Representative of all Basin Councils of the Country, National Institute of Conservation and Forestry Development, Protected Areas and Wildlife (ICF) and Peasant Confederations of Honduras referred to in numerals 7), 8), 9), 10), 11), 12), 13) and 15) of Article 8 of the Law, in addition to the Regulatory Entity of Potable Water and Sanitation (ERSAPS) and the National Council of Potable Water and Sanitation (CONASA), shall designate one principal and one alternate representative for each of them as representatives in the National Council of Water Resources (CNRH), accrediting them before MI AMBIENTE+, within two (2) months following the publication of this Regulation. In the event that it is deemed necessary to replace representatives of the National Council of Water Resources (CNRH), the Council Secretary must be informed as soon as possible, and their replacement must be formalized within a maximum period of two (2) months from when the replacement actually occurs. In those cases where the members of the organizations referred to in the preceding paragraph are not accredited within the previously established period, the National Council of Water Resources (CNRH) shall function normally with the duly accredited members without this affecting the quorum for sessions; at any later time they may be integrated following designation and accreditation.

The attributions of the National Council of Water Resources (CNRH) shall be those established in Article 9 of the Law and its functioning and internal regime shall be developed by regulation.

For administrative purposes, the National Council of Water Resources (CNRH) shall function attached to MI AMBIENTE+, and shall be presided over by the Secretary of State in the Offices of Natural Resources and Environment. The members of the National Council of Water Resources (CNRH) shall have the right to voice and vote. The full Council shall have the support of a Technical Secretariat, appointed by the Council, to facilitate the fulfillment of the functions and responsibilities of the National Council of Water Resources. Likewise, it may appoint multidisciplinary technical team committees integrated by personnel from each member Institution that has expertise on the subject, and the work produced by these committees shall be incorporated when appropriate in the National Water Plan, Annual Operating Plan or other type of planning that may be required, standardizing the processes of its application. The Technical Secretariat shall be responsible for part of the functions of this Council, such as:

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  Advisory services for proposing and concerting policies;

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  Give follow-up and social control to the management of the water sector;

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  Propose the guidelines of the instruments of water planning and ordering;

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  Propose to the competent authority the declarations of emergency or special management of water resources;

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  Give follow-up and evaluate the progress and compliance of the plans and policies approved for the water sector;

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  Act as facilitator, manager, conciliator and guarantor of social actions in the water sector;

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  Act as agent of arbitration and prevention and resolution of conflicts in the water sector, whether these refer to disputes of right and competencies;

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  Give permanent continuity to the activity of the National Council of Water Resources (CNRH) and the Water Authority;

The sessions of the National Council of Water Resources (CNRH) shall be of the character: a) Ordinary and b) Extraordinary. Ordinary sessions shall be held two (2) times per year, in the months of June and December. Extraordinary sessions shall be held when it is deemed appropriate, either to deal with urgent matters or because the importance of the case warrants knowing it immediately. Such sessions may be held in person or electronically, in accordance with what is established in Article 113 of the General Law of Public Administration. The convocation shall be made by the Secretary of State in the Offices of Natural Resources and Environment, communicating at least fifteen (15) business days in advance the agenda to be discussed, with the information and copy of the documents that may be pertinent. Convocation to extraordinary sessions may be made at the request of any of its members. The quorum for installation shall be, at least, half plus one (1) of the accredited members, unless it is extraordinary sessions in which case the presence of two thirds of the total shall be required. Decisions shall be taken by majority vote of the members present, in case of tie the President shall decide with a tie-breaking vote. A record of the development of the session shall be left in minutes, signed by the President and by the Secretary.

At the request of the members of the National Council of Water Resources, technical or administrative personnel that is deemed necessary to be heard on topics of interest related to the Water Resources Sector may be invited to participate in the sessions of said Council without the right to vote.

Among the powers of the Presidency of the National Council of Water Resources is that of calling a public competition for the position of Executive Director of the Water Authority and proposing a slate of three candidates before the Board of Directors of the Water Authority for their selection and appointment in accordance with Article 103 of the Law. CHAPTER III WATER AUTHORITY SECTION A: GENERAL ASPECTS

The Law creates the Water Authority as a deconcentrated body of the Public Administration, attached to the Secretariat of Natural Resources and Environment (MI AMBIENTE+), with legal personality and its own patrimony, with technical, administrative, financial, and operational autonomy in matters within its competence, with responsibility for executing water sector policies and framed within what is established in the General Law of Public Administration for deconcentrated bodies. The Water Authority shall exercise its functions throughout the entire national territory. It shall be headquartered in the city of Tegucigalpa, establishing Regional Agencies in such places as deemed appropriate according to the Law and this Regulation.

The Superior Administration of the Water Authority corresponds to a Board of Directors, presided over by the Secretary of Natural Resources and Environment, who shall exercise the legal representation of the Water Authority and shall delegate in the Executive Director of the Water Authority the Executive Administration with express delegation of the respective powers. Among the powers of the Board of Directors is that of appointing the Executive Director selected by the Evaluating Committee appointed for that purpose, as a result of the public competition convocation by the National Council of Water Resources in accordance with what is established in Article 103 of the Law. The members that shall make up said Board of Directors shall be those enumerated in Article 10 of the Law.

The Water Authority, in addition to the powers contained in Article 11 of the Law, shall exercise the following:

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  The contracting of goods, works or services, observing the procedures of the State Contracting Law and other applicable laws;

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  The management of special accounts opened in its name to meet obligations derived from its competence;

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  To manage and obtain resources from external cooperation applying the procedures provided in legislation relating to public credit in coordination with competent entities.

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  In the case of administrative infractions referred to in numeral 9 of Article 11 of the Law, the Internal Regulation of MI AMBIENTE+ shall be applied while the Internal Regulation of the Water Authority is issued. In the case of administrative or criminal infractions or crimes, the Water Authority shall bring it to the attention of the competent authority so that it may undertake the actions that are appropriate under law.

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  In the case indicated in numeral 12 of Article 11 of the Law, it shall be based on what is established in this Regulation and the Special Regulation of Tariff System that will be issued.

The Executive Directorate shall be responsible for establishing the units required by the Technical Directorates established and necessary to carry out the process of launching the institutionality of the Water Authority; subsequently, and in a progressive manner, as the institution is strengthened and has the required financial resources, the structure may be reviewed, adjusted, and updated in accordance with the demand for services that arises.

The patrimony of the Water Authority shall be comprised of movable and immovable property, equipment, and public works that the Executive Power transfers to it in accordance with what is established in Article 102 of the Law and others that the State determines, for which an inter-institutional commission shall be formed that the Board of Directors of the Water Authority shall define, which shall establish the procedure for the transfer of such property and shall supervise its compliance.

The Water Authority shall be financed through the sources set forth in Articles 90, 91, 92, and 102 of the Law. The National Water Resources Fund trust shall be administered by the Water Authority.

The technical, administrative, and operational structure of the Institutionality of the Water Authority established by the General Water Law defines various levels of authority and their respective operational bodies. In accordance with their degrees of authority, the operational structure and its support bodies, have the following levels: 1) Political Decision: Secretariat of Natural Resources and Environment (MI AMBIENTE+) National Council of Water Resources and its Technical Secretariat. 2) Managerial Level: Board of Directors and Executive Directorate 3) Technical Operational: defines the following Technical Directorates: a. Water Governance and Culture. b. Public Domain. c. Ordering and Management of Water Resources. d. Regional Agencies of Water Authority comprised of three units: 1) Regional Hydrological Information System, 2) Regional Water Governance and Culture and 3) Regional Planning and Technical Support. e. National Institute of Water Resources comprised of three units:

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  Hydrometeorological Services;

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  Research, Studies, Standards and Norms; and, 3) Hydrological Information System. 4) Administrative Support: Administration and Finance comprising the Units of a) Budgetary Administration, b) Human Resources, c) Accounting and Finance, d) Procurement and Contracting, e) General Services; and, f) custody of property. 5) Advisory and Control comprises the Units of: General Secretariat, Legal Advisory, Internal Audit, Planning and Management Evaluation; and, Communication, which in turn addresses issues related to Oversight, Institutional Transparency and Modernization. 6) Legal and Administrative Support at the Regional level: Units of legal and Administrative support in the Regional Agencies. 7) Coordination Bodies: River Basin Organizations, Users and Consultative Councils. Users and Consultative Councils are part of the River Basin Organizations that are formed at three levels: 1) Micro-basin Councils, 2) Sub-basin Councils and 3) River Basin Councils. SECTION B: BOARD OF DIRECTORS

The Board of Directors of the Water Authority shall exercise its functions in accordance with the Law, this Regulation, and the internal organization standards that are issued.

The members that make up the Board of Directors of the Water Authority are those described in Article 10 of the Law and those established in this Regulation, which may delegate their representation to those officials or persons they wish to designate for that purpose, who must be properly accredited in writing by those with the authority to do so; in those cases where the members of the organizations referred to in Article 10 of the Law are not accredited, the Board of Directors shall function normally only with members properly accredited; they may be incorporated at any later time upon designation and accreditation. The Board of Directors shall be in session with a quorum of more than half of the members.

The presidency of the Board of Directors of the Water Authority corresponds to the Secretary of State of MI AMBIENTE+, with right to voice and vote. The Executive Director of the Water Authority shall serve as Secretary of the Board of Directors, with right to voice but not to vote. The other members and representatives of the Board of Directors described in Article 10 of the Law shall have right to voice and vote.

The Board of Directors shall hold ordinary sessions on a quarterly basis through convocation by the President through the Secretary, communicating the agenda to be discussed with at least fifteen business days' notice and a copy of pertinent documents. Convocation to extraordinary sessions may be made at the request of no fewer than three of its Members. The quorum for installation shall be more than half (1) of the accredited Members, except when it concerns the appointment or removal of the Executive Director, or the approval of plans, the budget draft or the canon, tariffs and fees, referred to in subsections 3, 5, 7, and 12 of Article 11 of the Law, in which case the presence of at least six of its Members present or represented shall be required. A record shall be kept of the development of the agenda in minutes signed by the President and the Secretary and signed by the Members in attendance. All decisions shall be made by majority vote of the Members present. In case of a tie, the President shall decide with a casting vote.

The full Board may agree to the establishment of a Technical Commission to provide continuity to its work when necessary.

The functions of surveillance and oversight of the property and operations of the Water Authority shall be the responsibility of the Internal Audit.

In all other respects, the activity of the Board of Directors shall be subject to the provisions regarding collegiate bodies provided in Articles 106 to 115 of the General Law of Public Administration. Section C: EXECUTIVE DIRECTORATE

The general administration of the Water Authority shall be exercised by the Executive Director whose powers are defined in article 13 of the Law and developed in this Regulation.

For the proper compliance with the powers established in the Law, the Executive Director may also:

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  Exercise the legal and institutional representation of the Water Authority, delegated by the Board of Directors.

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  Establish Regional Agencies of the Water Authority and appoint the respective Regional Heads, as well as the subordinate personnel that may be necessary.

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  Comply with and enforce the agreements of the Board of Directors.

• 4)

  Issue resolutions and other provisions that are necessary for the management of the Water Authority.

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  Convene sessions of the Board of Directors, where he/she acts as secretary.

• 6)

  Act as Secretary of the Board of Directors.

In accordance with the provisions of articles 11 numeral 4 of the Law and 4 and 5 of the Administrative Procedure Law, the Board of Directors may delegate the power to sign acts and contracts or other powers to the Executive Direction. When this occurs, in the contracts signed or in the acts issued by the Executive Direction this circumstance shall be expressed, being understood as issued by the Board of Directors as the delegating body; however, the responsibility arising from said acts or contracts shall correspond to the Executive Direction.

In case of absence or legal impediment to hear a particular matter, the Executive Director shall be replaced by a delegate representative, while the impediment lasts. Regarding impediments, the pertinent regulations shall be applied. SECTION D: NATIONAL INSTITUTE OF WATER RESOURCES

It is the responsibility of the Water Authority to create the National Institute of Water Resources (INRH), as a specialized technical body, whose purpose is to conduct research, studies, and technical analyses related to water resources necessary for the design and implementation of the technical management instruments provided for in the Law. The Institute shall be attached to the Water Authority and shall provide technical support to it and shall provide technical assistance to other actors linked to the water sector.

The Director of the National Institute of Water Resources (INRH) and subordinate personnel shall be appointed by the Executive Director of the Water Authority, in accordance with the internal regulations and its Position and Salary Manual. Non-compliance with what is established in the Regulation entails administrative, civil, or criminal responsibility, as appropriate.

The National Institute of Water Resources (INRH) shall guarantee access to hydrological and meteorological information collected through the generation of services and products following the procedures established by it and approved by the Water Authority. The National Institute of Water Resources (INRH) shall have a network of technological and institutional integration to facilitate the systematization, access, distribution, use, and exchange of information necessary for the management of water resources and shall have as its objective to make available to users the official information related to water resources for use in the various activities related to the management and planning of said resources.

All public institutions or organizations that generate information related to water resources are obligated to provide such information to the Water Authority, at no cost, with the periodicity and subject to the procedure defined by it, to contribute to the National Institute of Water Resources (INRH) in fulfilling its purposes. Private institutions may voluntarily share information they have with the Water Authority for the same purposes.

The responsibilities and powers of the National Institute of Water Resources are detailed in article 18 of the Law.

The National Institute of Water Resources shall have three (3) Technical Units for the fulfillment of its functions:

• 1)

  The Hydrometeorological Services Unit shall have the power to: a. Develop all activities inherent to meteorological sciences complying with responsibilities of monitoring, analysis, forecasting, studies, and research of related sciences; in order to comply with national requirements and responsibilities, agreements, and international bodies of which Honduras is a member. With special attention to the monitoring and study of the effects of climate change. b. For the networks under its management, it shall conduct the necessary studies for the definition of new networks and redefinition of existing ones in case relocation is required. It shall also define the most appropriate instrumentation for each one, maintenance plans, calibration procedures, and validation methods for each of the measured variables. c. Coordinate with other organizations and institutions that also have climate variable control networks, the periodic exchange of information and shall promote with them cooperation in this matter. d. Guarantee the generation of information through the network of Hydrometeorological stations owned by the Water Authority. e. Other duties of a related nature that the Water Authority assigns to it.

• 2)

  The Studies, Standards and Norms Unit shall have the power to: a. Conduct water balances both at the national level and at the watershed level with the support and information from the Regional Agencies and Basin Organizations. For this purpose it shall use the information collected, analyzed, and validated, both through its National Water Information System and that provided by the Regional Agencies and Basin Organizations, in relation to water resources, existing hydraulic infrastructures, current and future demands, taking into account climate change scenarios. To elaborate such balances, the criteria and methodologies for calculating water balances by basin and at the national level shall first be established and technical assistance shall be requested in the cases where necessary. For the preparation of the national water balance, the National Institute of Water Resources (INRH) shall place special emphasis on water transfers and interconnections between basins, shared aquifers, and transboundary basins when appropriate. All of this at the instigation of the Water Authority. b. Prepare the National Water Plan (PHN) with the support of the Regional Agencies and Basin Organizations, in accordance with the objectives and scope defined in current legislation. It shall consider as key aspects for the development of the National Water Plan (PHN) the interconnections and transfers between basins, shared aquifers, and in case it applies, transboundary basins. Ensure that the implementation of the Plan promotes equitable regional development, to guarantee environmental, economic, and social sustainability, through the implementation of measures that guarantee integrated water resources management, taking into account climate change scenarios. Ensure the monitoring and updating of the National Water Plan (PHN) with the periodicity defined by current regulations. c. Develop Water Plans by watershed with the support of the Regional Agencies and Basin Councils, in coherence with the guidelines that emanate from the Water Authority. For this purpose it shall define the objectives, scope, methodologies, and technical criteria on which such development shall be based, in fulfillment of the hydrological planning objectives defined in the country's water regulations, taking into account climate change scenarios. It shall also ensure the monitoring and updating of Basin Water Plans, for which it shall have, in the same manner, the support of the Regional Agency and Basin Councils. The Water Authority as guarantor of the implementation of the Basin Plans shall rely on the National Institute of Water Resources (INRH) to carry out all activities that are necessary to facilitate and guarantee such implementation, all with the objective of advancing in the process of integrated management of water resources in the basin. d. Ensure proper monitoring of water resources: quality, quantity, and piezometry, both from information gathering and maintenance of monitoring stations. Coordinate with other organizations and institutions that also have control networks for surface and underground resources, both in quality and quantity, the periodic exchange of information and promote with them cooperation in this matter. e. Formulate proposals on methods, procedures, standards, and national norms required for the management of water information networks, as well as to guarantee the sustainability of the resource and its associated ecosystems, the improvement of its quality, and the increase of its quantity and availability. Propose the technical requirements for the various actions and requests that affect the public water domain. Prior to approval by the Water Authority, these methods, procedures, standards, and national norms shall be made available to organizations and institutions that require their use so that procedures and calculation methods are standardized, guaranteeing their technical quality. f. Propose the technical specifications for the accreditation of laboratories and entities engaged in water-related analysis and testing. Said accreditation shall be granted by the Water Authority. g. Develop research and innovation on technologies and applications of water resources. As well as promote and develop better knowledge of it, including possible impacts that could jeopardize its quantity and quality, taking into account climate change scenarios provided for in the Reports of the Intergovernmental Panel on Climate Change (IPCC) and its foreseeable effects on water resources. Propose the research guidelines for water resources that institutions or entities should follow, in accordance with current policies and regulations. h. Contribute with water-related inputs for the preparation of risk management plans promoted by competent authorities and conduct studies, research work, definition of monitoring networks, and any action that allows or facilitates the management of water-related disasters. Collaborating with organizations and entities that participate in one way or another in the management of such situations.

• 3)

  Water Information System, shall have the power to: a. Develop the National Water Information System that stores and allows the graphic and alphanumeric management of all information related to water resources management. b. Perform system operation, its maintenance and updating, guaranteeing its sustainability. Said system shall include the instruments and tools that facilitate the development of all those tasks that correspond to the Water Authority in the exercise of its functions and shall support the availability of information for users, the guarantee of transparency and citizen participation to which the Water Authority is committed.

The Water Authority shall support itself in the exercise of its functions at the national level in the Regional Agencies, who direct in their territorial jurisdictions the management of water resources within the framework of the law, this Regulation, the National Water Policy, and other provisions issued by the Board of Directors and Executive Director. The geographic scope of the Regional Agencies shall be determined by the Water Authority based on the National Maps for Water Planning that MI AMBIENTE+ made official, taking into account the territorial division created in the Law for the Establishment of a Country Vision and the Adoption of a Plan of Nation for Honduras, Decree 286-2009 of January 27, 2010, and it may occur that due to the characteristics of its water resources, the number of users, the economic activity they support, or other unique circumstances, justify the reestablishment of the geographic scope of the same, for a more efficient and sustainable management of its resources. These agencies shall be incorporated progressively, depending on the capacity of the Water Authority. These Agencies shall have as their headquarters the locality determined by the Board of Directors and shall exercise their functions in the territorial scope assigned to them. They shall be under the charge of a Regional Head, who shall have the subordinate personnel that may be necessary, in accordance with the provisions of the Internal Regulations Regime that is issued for that purpose, appointed by the Executive Direction.

For the fulfillment of their functions, the Regional Agencies shall have: one (1) support unit, the Regional Administration and Finance Unit; and, three (3) regional operational technical units: 1) Water Information System, 2) Water Governance and Culture, and 3) Planning and Technical Support.

The Regional Agencies, in addition to the functions established in article 16 of the Law, shall exercise the following through their support unit and operational technical units: Support Unit 1) Administration and Finance a. Prepare the Annual Budget of the Agency and submit it for approval in the corresponding instances. b. Other functions assigned by the Water Authority. Regional Operational Technical Units 1) Water Information System a. Support the Water Authority for the generation and management of information as well as the development of knowledge of water resources, involving the Basin Councils so that they contribute proposals in the corresponding initiatives. b. Support the Institute in the administration of the National Water Information System in the respective basins. c. Other functions assigned by the Water Authority. 2) Water Governance and Culture a. Awareness-raising and education at the territorial level. b. Facilitate the organization of the respective Basin Organizations. c. Support the monitoring of the execution of basin water plans and shall carry out the measures necessary for their correct implementation. d. Communicate to the Water Authority the agreements adopted by Basin Organizations. e. Control and monitoring of the functioning of Basin Organizations. f. Other functions assigned by the Water Authority. 3) Planning and Technical Support a. Support the Water Authority for the preparation of water balances, under the criteria and methodologies developed by it. Facilitate already validated information that will be necessary for its preparation, whose source may be from the Agency itself or from the Basin Council. b. The Regional Agencies shall have active participation in the analysis and review of water balances generated for their area of action, taking into account the opinion of the corresponding Basin Council. c. Support in the preparation of the National Water Plan in whatever the Water Authority requests, in order to ensure proper development of the plan and its subsequent implementation. d. Exercise control and monitoring of the execution of basin water plans and shall carry out the measures necessary for their correct implementation. e. Ensure the proper functioning and maintenance of the network of hydrometeorological monitoring stations in the competent area. f. Ensure strict compliance with water regulations and planning instruments in its geographic area, with the objective of complying with the country's water policy, promoting equitable regional development. g. Participate in the entire process of preparing the Basin Water Plan, from the preliminary phases of identifying needs, collecting and reviewing information to the identification and proposal of measures necessary to guarantee adequate management of water resources, all in collaboration with the Basin Councils. h. The Basin Water Plan document shall be formulated by the Regional Agencies in coordination with the National Institute of Water Resources (INRH), who shall guarantee public and private participation through the corresponding Basin Council, in the process of preparing the Water Plan. i. Support the Water Authority in the preparation of studies, risk plans, research work, monitoring, etc. to prevent and manage emergency situations and propose in coordination with the Basin Councils declarations of emergency related to water resources. j. Coordinate with the Water Authority and municipalities regarding the granting of water use and beneficial uses and actions for protection and conservation. In the same manner it shall coordinate with the Water Authority the authorization of wastewater discharges to receiving bodies in accordance with current regulations. k. Other functions assigned by the Water Authority. CHAPTER IV BASIN ORGANIZATIONS AND CITIZEN PARTICIPATION

The Water Authority through its Regional Agencies shall promote the formation and constitution of Basin Organizations in accordance with the Special Regulation of Basin Organizations in force, with the participation of public and private organizations and civil society referred to in article 22 of the Law and in accordance with the powers established therein. The Water Authority shall promote the organization of Basin Organizations under the designation of Basin Councils, Sub-Basin, or Microbasin Councils. Articles 19 and 22 of the Law determine the nature and functions of these councils.

All Basin Organizations formed and their actions must be approved by the Water Authority.

The Water Authority and Regional Agencies shall actively promote actions to achieve the participation of the main institutions related to the management of water resources in the Basin, Sub-basin, and Micro-basin Councils. They shall make known the provisions of the Law, the advantages of forming Basin Organizations, the importance of protection, conservation, valorization, and utilization of the water resource to promote integrated management in the territory. The role of the Administration shall be pioneering, promoting the commitment and participation of institutions for the formation, at the territorial level, of a strategically organized temporary management committee, which shall be the entity committed to promoting preliminary actions for the formation of Basin Organizations.

The creation, organization, and operation of Basin Organizations are governed by the "Special Regulation of Basin Organizations", approved through Ministerial Agreement Number 0840–2019 of the Secretariat of Natural Resources and Environment, published in the Official Gazette "La Gaceta". CHAPTER V ORGANIZATIONS OF WATER USERS

Water User Organizations are constituted for the purpose of achieving better management of the water resource and/or providing a service. They may be composed of legal and natural persons who share the same surface or groundwater source or a common hydraulic system in order to achieve sustainable use of water resources. In those cases where in a basin there exists only one representative per type of use, it shall be included as a User Organization for purposes of forming Basin Organizations. Users may be organized by type of use found in a geographic area established in accordance with water planning tools.

Water user organizations include: Water Administration Boards, Drinking Water and Sanitation Service Providers, Irrigation Associations, Energy Generators, and others that could be grouped according to water resource use.

The Water Authority and municipalities, in accordance with the scope of their competencies, shall facilitate coordination among water user organizations to improve dialogue, planning, distribution of responsibilities, and decision-making related to the protection, utilization, and regulation of water, in accordance with the Law and applicable regulations.

The operation and composition of water user organizations shall be regulated by their bylaws or internal regulations that shall be drafted and approved by the users themselves.

The Water Authority shall create the National Public Registry of Water User Organizations, in which all those constituted in the Republic shall be registered.

Municipal Councils shall maintain a Registry of Water User Organizations that are constituted in the Villages, Hamlets, or Communities that belong to their jurisdiction, communicating to the Water Authority, through Regional Agencies, within a maximum period of 15 business days counted from their registration, all information regarding them. Upon receipt of such information, the Water Authority shall proceed to register them in the National Public Registry of Water User Organizations.

These Water User Organizations, once registered, when applicable, shall request permits, licenses, or concessions contemplated in the Law and this Regulation in accordance with the availability of the water resource and the priority of uses established in the Law. The Water Authority may promote, when the general interest so justifies, the constitution of user organizations. Likewise, it may establish specific provisions regarding use and utilization, in accordance with the typology of each organization and the particularities of the use and utilization. These organizations shall be subject to the same obligations as other holders of licenses, permits, or concessions. TITLE III PUBLIC DOMAIN, RIGHTS, AND RESTRICTIONS ON WATER RESOURCES CHAPTER I PUBLIC DOMAIN OF WATER RESOURCES AND USE RESTRICTION ZONES

Water constitutes part of the patrimony of the State, the dominion over it is inalienable, imprescriptible, and non-attachable in character, without being susceptible to private property rights over it, constituting a public use asset for the benefit of natural or legal persons, becoming an indispensable resource for the sustainable development of the Country.

The following are assets of public domain, administered by the State, in perpetuity, with inalienable and imprescriptible character: 1. Continental and insular waters, both surface and groundwater 2. Maritime waters and others over which the State of Honduras exercises sovereignty or holds rights 3. The beds or channels of rivers and other natural courses or streams, continuous or discontinuous 4. The beds or bottoms of lakes, ponds, and other natural deposits 5. Artificial reservoirs constructed in public channels 6. Underground aquifers 7. Hydraulic infrastructures constructed by the State such as dams, aqueducts, canals, irrigation units, containment dikes, or other works constructed for the exploitation, use, utilization, and management of waters 8. The public use strips referred to in this Regulation 9. Rainwater flowing over land of public property or draining into a public channel 10. Lands gained by natural causes or by artificial works from the sea, rivers, lakes, ponds, and other courses or water embankments 11. Lands exposed as a result of the limiting or partial or total drainage of a vessel owned by the State.

Hydraulic infrastructures constructed by private parties to retain or mobilize the water resource such as: wells, reservoirs, tanks, pools, canals, aqueducts, and similar others, constructed on private property, are private property. The use or utilization of the water contained therein shall be regulated by the Water Authority, ensuring that they are developed in harmony with environmental protection and applicable regulations.

The use or utilization at any paid or free title of these resources or assets does not cause them to lose their character as national assets of public use.

Public dominion of aquifers and subsurface formations that contain or through which groundwater flows does not prejudice the right to superficial property ownership of the property. The performance of any work aimed at their utilization or activity that implies contamination or deterioration of the aquifer shall be subject to the provisions of the Law.

In springs and sources or water outcrops, public dominion shall comprise an area resulting from applying a radius of thirty (30) meters around the water outcrop, except water that emerges from a private parcel and does not make an appreciable contribution to a course of public waters, with the understanding that the owner shall ensure the protection and conservation of such area.

The public domain of a watercourse or riverbed extends to the line of the upper limit of the bank corresponding to the highest point reached by the waters in their ordinary maximum floods. The level of ordinary maximum waters shall be determined by the ordinary maximum flood that shall be determined by the Water Authority, in accordance with its respective competencies and based on the annual instantaneous maximum flows produced during at least ten consecutive years, taking into account, whenever possible, the geomorphological, ecological characteristics and available historical references. Or any other method established by said Authority in the exercise of its functions.

Banks are understood to be the lateral strips of public riverbeds comprised between the level of low waters and the level of ordinary maximum flood, and margins are understood to be the lands adjoining the riverbeds as defined in this Regulation. The level of low waters being the minimum level reached in the watercourse during the dry season period.

The public domain of waters accumulated naturally or as a result of public works forming lakes, lagoons or reservoirs extends to the highest point reached by these waters in their maximum floods or to the elevation corresponding to the spillway point.

Maritime waters comprised in the spaces in which the State exercises sovereignty are also of public domain, including the territorial sea, the zones contiguous to the territorial sea, the exclusive economic zone and the bays, coves, gulfs, estuaries, mangroves and sea beaches. Its regulation shall be subject to particular norms subordinated to the Law.

A circulation and public use strip of five (5) meters in width is established following the bank line, throughout the entire longitudinal or perimetral extension of watercourses, lakes, lagoons and reservoirs as established in article 31 of the Law.

In the case of maritime waters, according to article 31 of the Law, the circulation and public use strip shall have a width of twenty-five (25) meters, following the established margins.

The strips defined in articles 69 and 70 are goods of public hydraulic domain. Their width may be subject to modifications at the discretion of the Water Authority, in accordance with the geomorphological, environmental and social characteristics.

While the property of the circulation and public use strip of five meters in width along rivers or streams referred to in article 31 of the Law is determined and/or recovered, the latter shall be held as an area of easement for public use or free circulation, and passage must be permitted therein for the exercise of fluvial fishing activities, the transit of livestock for watering, the passage of personnel assigned for watercourse surveillance, collection of hydrometric data, maintenance of water conveyance lines and/or intake works, passage for rescue of persons or property, the establishment of protection or conservation works in case of necessity or any other work or activity permitted under law.

Once the State acquires title to the circulation and public use strip, at any title and in accordance with the laws, it shall form part of the public domain, in accordance with the Law and this Regulation.

The construction of permanent works on said strip that could prevent the activities provided therein shall require authorization issued by the Water Authority, which shall be granted in cases that are fully justified.

The provisions of the preceding articles are understood without prejudice to the protection strips provided for in forest legislation or in other laws, which shall be subject to what is provided therein.

Following the circulation and public use strips, a zone of use restriction, not of public domain, of one hundred (100) linear meters in width is defined, where land uses and activities developed therein shall be regulated, in accordance with the special regulations issued by the Water Authority.

The Water Authority, in any action aimed at expanding or reducing the width of use restriction zones, shall act prior to study of the topography of the zone, hydraulics and other parameters that may be involved.

The Water Authority shall transmit to the Municipalities, as competent administrations, the established delimitaciones concerning the circulation and public use strips, as well as the use restriction zone, in order for them to be incorporated into the cadastre and considered in territorial planning instruments and urban planning. CHAPTER II SPACES OF SPECIAL INTEREST

Apart from the protection of public hydraulic domain referred to in the Law and this Regulation, the Water Authority shall ensure the prevention and control of impacts to spaces considered of special interest, either because they correspond to drinking water supplies, involve impacts to human health or the life of persons, or have assigned an ecological and environmental function:

• 1)

  Environmental safeguards, core zones, buffer zones, riparian forest strips and easements of passage in which land use is limited to those indicated in territorial planning;

• 2)

  Protected areas, national parks and hydrological reserves created pursuant to law that shall indicate the domain and title impacts necessary to carry out management and achieve the purposes thereof;

• 3)

  Water-producing or reserve zones in which springs are located, aquifer recharge areas, surface intakes, spaces of protection or environmental safeguard; and,

• 4)

  Flood zones and areas of hydrological risk, limits and easements of beaches and other spaces that could affect water volumes and quality or constitute risks to persons. The definition of these spaces shall be established by the Water Authority based on the respective technical studies or approved territorial planning instruments.

The Water Authority shall maintain a registry of zones that have been identified as spaces of special interest that require control and prevention of the harm that may result from variations in water flow or alterations in water quality or occupation. Said registry shall collect the information that the competent Administrations shall provide periodically to the Water Authority.

For spaces that according to the Law require special control and prevention to avoid possible harm, at the time of granting any permit for the use of national waters, the regulations established by the Water Authority shall be taken into account, with the purpose of protecting such spaces and enabling their sustainable use.

The Water Authority shall define the concrete measures of exploitation and protection in areas of special interest, through specific studies that shall be carried out in accordance with the Special Regulation that shall be developed for such purpose. CHAPTER III SPECIAL REGULATIONS AND OTHER SPECIFIC NORMATIVE

The normative development relating to maritime waters, surface waters and groundwaters defined as goods of public hydraulic domain in article 25 of the Law, shall be carried out through special regulations or specific particular norms developed for such purpose by the Water Authority.

The Water Authority, in coordination with the pertinent entities, shall promote the development of a Special Regulation for shared or transboundary basins and international rivers. Furthermore, it shall promote the execution of agreements or treaties, so that jointly the prevention, control and reduction of environmental impact may be achieved with the purpose of conserving and improving the quality and quantity of water.

In the same manner and in coordination with the pertinent entities, a Special Regulation or Tripartite Agreement shall be developed for the Waters of the Gulf of Fonseca where mandatory measures shall be contemplated that guarantee the protection of the environment and the sustained exploitation of the resources of the Gulf waters, since in accordance with the Judgment of the International Court of Justice of September 11, 1992, these waters are under co-sovereignty, except for the three (3) nautical miles, measured from the coast and that belong to each State.

To regulate the constitution and functioning of Basin Organisms, the Water Authority shall develop the Special Regulation of Basin Organisms, including the technical-administrative aspects that, in compliance with the Law and this Regulation, correspond to such Organisms.

The Water Authority, with competence in the territorial planning of the water sector, shall elaborate the Special Regulations relating to:

• •

  Hydraulic Works.

• •

  Zones of Special Interest and that require special protection.

• •

  The Control of discharges and reuse of treated waters.

• •

  Compensation for environmental services.

• •

  The Tariff Regime.

• •

  Special Regulation of Functioning of Regional Agencies.

• •

  And others that are deemed necessary.

The Water Authority may issue the juridical norms and complementary technical norms that it deems necessary for the correct application of the Law and this Regulation.

The regulatory process shall be a participatory process, led by the Water Authority and the regulations or special norms shall be issued by mutual agreement and in coordination with the state bodies that by law have jurisdiction and competencies in these sectors. CHAPTER IV ADMINISTRATIVE EASEMENTS, EXPROPRIATIONS, RESTRICTIONS ON OWNERSHIP AND ACQUISITIONS Section A. Easements

Based on the regulation and definitions established in Titles I and X of Book II of the Civil Code, the easement is defined as that real right that limits the domain or ownership, through which the owner of a dominant estate obtains a utility from an estate of another owner, called the servient estate, which suffers a burden or a limitation against the first. According to the Civil Code there are various classes of easements; natural, legal and voluntary.

Taking into account the provisions of articles 70 numeral 5), 72 numeral 5) and 73 numeral 6) of the Law, in cases where for the granting of a right of use or exploitation of the water resource the establishment of an easement is required, the interested party shall process them in accordance with the provisions of the Civil Code and other applicable current norms applicable to the case. The document evidencing the same shall be attached to the application for said right.

The ecological easements mentioned in article 37 of the Law may be legal or voluntary and the provisions of the Civil Code relating to easements shall be applicable to the same, when applicable. "Legal ecological easements occur when for reasons of conservation and sustainability of the water resource, legal limitations are established in the rights of use and exploitation of the property, for purposes of public utility". "Ecological easements may also be established on a voluntary basis when the owner of the property limits his property rights in favor of the State or third parties, with the objective of protecting and conserving water and natural resources". In both cases, the holders of the right shall have preferential access to the incentive program mentioned in article 89 of the Law and in articles 226 and following of this Regulation.

For the exercise of its functions, including among others, the carrying out of studies, measurements or hydrological investigations and attention to complaints related to the water resource, the officials and employees of the Water Authority and its dependencies shall have access to private property, with prior notice, identification and indication of the function that they are to perform. If necessary, the aid of public force may be requested. Likewise, the competent local Authorities may coordinate with the owners of the servient property the access to the property for purposes of maintenance or preventive actions of protection and conservation of the hydraulic infrastructure with prior notice". Section B. Expropriations

In accordance with article 34 of the Law regarding the acquisition of goods and management of expropriations in function of the public interest, real property necessary for carrying out the adequate integrated management of water resources, for the construction of hydraulic works or installations or for the protection or exploitation of water resources or their energy are considered of public utility, with general character. For such effect and according as may be necessary, the Water Authority shall determine in each case the goods to be expropriated. The expropriation procedure and the fixing of the corresponding indemnification shall be governed by the current legislation on the matter.

In circumstances of extreme hydrological conditions (droughts and floods), severe overexploitation of aquifers, or in similar states of necessity or urgency, the Water Authority, following legally established procedures, may adopt such measures as are necessary in relation to the use of public water domain, even though it may have been subject to concession, permit or license and for the purposes of temporary occupation and forced expropriation of property and rights. Section C. Restrictions on Ownership

In application of the provisions of the Law relating to the protection, conservation and use of water resources, as well as those relating to defense against their harmful effects, disaster management and other related activities, the Water Authority, by reasoned resolution, may impose necessary restrictions for the more efficient management of the corresponding areas in order to achieve rational and comprehensive administration of the resource and conserve its quality, imposing on owners of private land and water users obligations to do, not to do, or to allow to be done, in accordance with the availability of the resource and the characteristics of the zone.

When the Water Authority, at the proposal of the National Council of Water Resources or any Basin Council, determines that the conditions of use of the water resource, whether to guarantee the well-being of the population or the conservation of ecosystems, require modification of the current management thereof, it may carry out appropriate measures to achieve adequate management of the resource. The restrictions or limitations on ownership or its use that result from the application of the Law shall give rise to payment for environmental services, if as a direct and immediate consequence of its implementation damage or concrete harm is proven. The application of the Law in payment for environmental services shall be for the purpose of compensating to improve, control or prevent concrete damage or harm to the quality and quantity of water, insofar as possible and just, for the environmental benefits generated. TITLE IV CONSERVATION AND PROTECTION OF WATER RESOURCES AND MANAGEMENT OF WATER-RELATED DISASTERS CHAPTER I CONSERVATION OF WATER RESOURCES Section A. Conservation Actions

The actions for conservation of waters have the purpose of conserving, managing, increasing water volumes and/or improving its quality, intervening in the ecosystems that generate it and affecting the activities that harm its biodiversity, through applicable instruments.

The spaces, resources and biological systems established in article 37 of the Law and those others established in the Forest, Protected Areas and Wildlife Law and other applicable laws shall be catalogued as reserves.

• 1)

  Protected areas.

• 2)

  National parks.

• 3)

  Water-producing zone.

• 4)

  Ecological easements.

• 5)

  Special management areas established according to the purposes of this Law. Which shall include: Cloud forests, water recharge areas, water catchment areas and water sources for human consumption, mangroves, wetlands, coral reefs, river mouths, estuaries, river deltas, freshwater, brackish and salt coastal lagoons, lakes and any other space or body of freshwater, brackish and saltwater that conforms to the purposes of this article.

The declaration of the reserves referred to in the preceding article carries implicit the power to limit, condition or prohibit any activity that directly or indirectly affects the conservation and biodiversity, creating such legal conditions as may be warranted. Section B. Zones Subject to Conservation Closure

If the danger of depletion, degradation or contamination of water resources in a given zone is verified through corresponding technical studies, complaints or any other mechanism, the Water Authority may suspend, restrict or condition authorized uses, seeking recovery of the source or the elimination or reduction of contamination to tolerable limits, in accordance with the respective technical standards, or the elimination or reduction of the causes that have otherwise occasioned its degradation. These measures shall not entail any compensation, as provided in article 48 of the Law. For the purposes of the preceding paragraph and in accordance with article 40 of the Law, the Water Authority at the national or intermunicipal level and the same at the municipal level, heeding the suggestion of the municipalities, may declare closures for the protection and temporary conservation of waters or of the ecosystems that protect them. In the case of declaration of closures that involves or affects forest ecosystems, the municipalities or the Water Authority, as the case may be, shall coordinate with the National Institute of Forest Conservation and Development, Protected Areas and Wildlife (ICF), and this Institute shall provide the necessary guidelines from the perspective of its competence. The Water Authority shall maintain a registry of zones subject to conservation closure. Section C. Afforestation and Reforestation for Water Production

The declaration, delimitation and management of the reserve areas provided for in articles 37 and 38 of the Law shall be made in accordance with forest legislation. The Water Authority shall coordinate with the Forest Conservation Institute the activities of afforestation or reforestation of the areas provided for in article 41 of the Law that are deforested. In the areas indicated in the preceding paragraphs, limitations or restrictions on ownership may be imposed, including the prohibition of activities incompatible with the conservation and protection of water resources, in accordance with the Law, this Regulation, forest legislation and, where applicable, the respective legally approved management plans. CHAPTER II DEFENSE AGAINST HARMFUL EFFECTS PRODUCED BY WATERS

The conservation works to compensate for the loss of the natural absorption capacity of aquifers, defined in article 42 of the Law, shall be carried out in accordance with the technical criteria established by the National Institute of Water Resources (INRH), and where appropriate shall be done jointly with other related institutions; and shall be regulated by the Special Regulation on Groundwater protected under the Law and this Regulation.

A similar situation shall apply to the regulation of matters contained in articles 43, 44, 45, 46 and 47 of the Law, which shall be subject to special regulations issued under the Law or other legislation related to the thematic areas dealt with in the aforementioned articles. CHAPTER III PAYMENT FOR ENVIRONMENTAL SERVICES

For the purposes of this Regulation, all payment or compensation for environmental services mentioned in the Law shall be made in accordance with what is provided in the Regulation that the Water Authority shall develop for such purpose, and furthermore, what is provided in the Special Regulation for the Implementation of Mechanisms for Compensation for Goods and Ecosystem Services (Agreement 021-2015 of March 10, 2016) shall be considered.

The Water Authority, through the National Institute of Water Resources (INRH) and other competent entities, shall establish the methodology for the calculation and valuation of environmental goods and services, which shall be considered in the Special Regulation developed for such purposes.

The income collected for environmental goods and services related to water resources shall constitute part of the patrimony of the trust fund of the National Water Resources Fund.

The objective of this compensation system shall be to promote the conservation, recovery and sustainable use of the ecosystems that provide environmental goods and services related to water resources to direct and indirect users.

The limitations or restrictions on ownership referred to in articles 92 and 98 of this Regulation and the ecosystems cited in article 50 of the Law are considered to provide environmental services that shall be compensated as referred to in articles 51 and 52 of the Law and the specific regulation for such purposes.

The competent authority for the application of said Special Regulation and other provisions issued on the matter shall be the Water Authority.

Income from environmental goods and services related to the water resource, which shall form part of the National Water Resources Fund, shall be applied as a priority, in the proportion that the Water Authority determines, for the conservation, restoration, and protection of the basin where it is generated, in coordination with the corresponding basin council. CHAPTER IV MANAGEMENT OF WATER-RELATED DISASTERS

Cases classified as urgent or emergency situations include: extreme hydrological events (circumstances of extraordinary droughts or floods), serious overexploitation of aquifers, situations of risk to water quality or other events that endanger the lives of persons, their property, or prejudice natural resources.

In the circumstances described in the previous article, the Executive Branch, upon proposal of the National Water Resources Council and in coordination with the Permanent Contingencies Commission (COPECO), may declare the emergency situation by Executive Decree, adopting the necessary measures to mitigate its effects and to overcome said situations. The approval of said measures shall implicitly carry the declaration of public utility of the works, actions, and studies necessary to carry them out, for the purposes of temporary occupation and forced expropriation of property and rights, as well as the declaration of urgent necessity of the occupation. Said measures shall cease their application when the National Water Resources Council in coordination with the Permanent Contingencies Commission (COPECO) considers the emergency situation overcome and timely informs the Executive Branch.

The Water Authority, after prior verification, may issue a resolution to declare Closure Zones and Periods for the exploitation, use, or utilization of waters, in cases of overexploitation, drought, extreme scarcity, emergency or urgent situations, and water contamination, in the following cases: a. It is not possible to maintain or increase water extractions from a certain volume fixed by the Water Authority without affecting the sustainability of the resource and without the risk of inducing harmful economic or environmental effects on the water sources in the zone in question or on the users of the resource. b. It is necessary to prohibit or limit the uses of water in order to protect its quality and quantity in basins or aquifers. The Municipalities, in compliance with article 40 of the Law, must coordinate with the Water Authority regarding the declaration of Closure Zones and Periods.

The Constitution of the Republic establishes that the human person is the supreme purpose of society and the State, and in that sense the provisions must be issued and the necessary actions executed to protect it and protect its water resource. Additionally, access to water and sanitation is declared a human right, whose use and benefit shall be equitable, preferentially for human consumption. The Law establishes that human consumption has a preferential and privileged relationship over other uses. For this reason, any natural or legal person who possesses constructed works to retain or mobilize waters such as: wells, reservoirs, tanks, canals, aqueducts, and others of similar nature, within private land and for singular and particular benefit, in periods declared as droughts, must provide at least ten percent (10%) of the daily water exploitation capacity of the related source to supply the water needs for human consumption, food and nutritional security of populations neighboring the property where these works are constructed, with the users obligated to compensate according to the cost of water extraction.

The process of water sharing established in the previous paragraph equivalent to ten percent (10%) shall be planned by the National Council for Drinking Water and Sanitation (CONASA) and regulated by the Regulatory Entity for Water and Sanitation Services (ERSAPS) or through the municipalities and Water Boards as appropriate, in order to ensure that water for human consumption has priority over other uses.

The State, through the competent body, shall manage compensation mechanisms according to the cost of water extraction for natural or legal persons who share their singular and particular benefit to provide a percentage of the daily water production capacity of the related source to supply water needs for human consumption, food and nutritional security of neighboring populations.

The Water Authority, the Permanent Contingencies Commission (COPECO), municipalities, Basin Organizations, and other related authorities shall collaborate with the prevention and management of water-related disasters, acting jointly and participatively to define: policies, strategies, plans, and concrete actions for protection and conservation of water resources, prevention or management of said contingencies.

The Permanent Contingencies Commission (COPECO) shall be responsible for proposing the design of integrated risk management plans with a basin approach, which shall be developed in coordination with the National Institute of Water Resources (INRH) and basin councils, ensuring their incorporation into national water planning.

The Water Authority, in coordination with the Permanent Contingencies Commission (COPECO), shall promote the design and construction of defense or protection works against floods or other harmful effects produced by waters in those areas identified as risk areas, in which cyclically or eventually damage occurs, threatening the lives of persons or causing harm to their property, infrastructure, or other natural resources. The Water Authority through the National Institute of Water Resources (INRH) and with the support of the Permanent Contingencies Commission (COPECO) shall conduct, within the framework of the comprehensive risk management plan, the necessary studies to allow classification of flood-prone zones according to their probability of occurrence, in consideration of the risks they present in the short and long term, which shall be reflected in flood risk maps for each hydrographic basin. Likewise, it shall promote, within hydraulic planning, the establishment of restricted zones as well as the norms for the use of said zones, which shall establish the characteristics of constructions that may be implanted in them, in order to prevent loss of lives and damage. Furthermore, the Water Authority and competent entity shall manage the easements that may be necessary, with private land owners being obligated to allow access to persons, equipment, and necessary materials. It shall be the municipalities, according to their powers, that shall ensure the establishment and compliance with said use restrictions and the norms that have been issued for them.

The National Institute of Water Resources (INRH), which shall integrate the National Meteorological Service, in accordance with article 102 of the Law, shall implement and operate the Early Warning System that shall form part of the control system of hydrometeorological variables that shall be fed with information gathered by different public and private institutions or entities. The main objective of this system is to alert and prevent in extreme hydrological situations, minimizing damage to the population and the environment, in coordination with the Permanent Contingencies Commission (COPECO).

In case of an emergency declared by the Executive Branch and to the extent strictly necessary, it may proceed with the demolition or removal of works or installations that constitute obstacles and that aggravate the risk or danger to human lives or their property, taking into account the provisions of article 54 of the Law. In the case of works or installations related to the water resource, said actions must be ordered by the Water Authority, by its own initiative or at the suggestion of Regional Agencies, the Secretariat of Infrastructure and Public Services, the municipalities with jurisdiction in the zone, or the Permanent Contingencies Commission (COPECO).

In the same situations, the necessary works and installations may be carried out to mitigate or prevent the effects produced by water-related risks (floods, droughts, among others), which may be of public or private initiative, always with the knowledge and authorization of the Water Authority.

To obtain the authorization established in the previous article, one must submit to the Water Authority prior to execution the permit request accompanied by a location plan of the work or installation and a technical report containing the current status and description of the work to be performed.

In case of urgency, provisional protection works may be carried out on the margins of watercourses; with the caveat that the responsibility for any eventual damages that may result from such works shall be assumed by the owners or, as the case may be, by the promoters who have constructed them. Only in these cases shall notification to the Water Authority be permitted in a phase subsequent to their execution.

Owners of riparian properties with natural watercourses or water deposits may protect their properties against the action of waters by means of defense works constructed within the boundaries of their properties, and must immediately notify the Water Authority. If the works referred to in the preceding paragraph threaten to divert the current from its natural course, cause flooding or damages to third parties, their owners may be ordered to proceed with their paralyzation or demolition, as appropriate.

If such works are to be introduced into watercourses or riverbeds, prior authorization from the Water Authority shall be required. Such authorization may be granted following study of the project, evaluation of the hydrological regime and possible impacts to the natural watercourse that could cause damages to third parties. The Water Authority may require necessary technical modifications or prohibit its execution, if it would substantially harm water resources, damage ecosystems, or cause impacts to third parties.

Any natural or legal person may construct on properties of their ownership works or installations to recover inundated or marshy lands, provided that such does not harm third parties nor adversely alter the system of protection and utilization of water resources, or associated ecosystems, such as mangroves, natural wetlands or other protected areas, including, among others, those that are refuges for wildlife or flora. To this effect, the interested party shall notify the Water Authority of the works proposed to be executed, accompanying a descriptive technical plan thereof, documentation evidencing ownership and the favorable report of the municipality; this Authority may require necessary technical modifications or prohibit its execution, if it would damage the aforementioned ecosystems or otherwise substantially harm water resources. CHAPTER V HYDRAULIC WORKS FOR PROTECTION AND MONITORING

Hydraulic protection works are considered to be fundamentally:

• •

  Defense works, which are executed on the margins and banks of watercourses, on one or both.

• •

  Regulation reservoirs that permit control of flooding or significantly attenuate the magnitude of floods, which may be multipurpose.

• •

  Provisional defense works executed in emergency situations.

• •

  Living defenses, related to natural vegetation and revegetation.

• •

  Channel containment works and other related works.

In accordance with Article 57 of the Law, the design, approval and construction of hydraulic protection works shall be sustained in the sectoral/local ordering and planning approved by the Water Authority and the corresponding municipality. For their execution, the performance of pertinent studies shall be mandatory, which shall be carried out under the direction and guidelines of the National Institute of Water Resources (INRH). Such works may be executed by State institutions or by interested third parties, who must comply with environmental impact assessment requirements, without prejudice to other permits or licenses required by other laws. The complete process from the presentation of the prefeasibility study for approval by the competent authority, the environmental license, the construction permit to the startup, shall be that established in the Special Regulation of Hydraulic Works and applicable legislation in force.

The National Institute of Water Resources (INRH) at the instance of the Water Authority, shall define and make available to regional councils, local governments and interested users, the hydrological data and other data required for the dimensioning of hydraulic works proposed in flood control, disaster and flooding programs and others, as well as general guidelines for their design and maintenance.

The cost of hydraulic works constructed by the State that are utilized for profit purposes shall be recovered in whole or in part, charged to the various users and in proportion to the benefits derived therefrom.

The Water Authority, through the National Institute of Water Resources (INRH), shall conduct hydrometeorological monitoring in order to comply with actions mentioned in Articles 57 and 58 of the Law; the National System of Water Information shall be fed with this information and that generated by other public or private institutions.

The Water Authority shall conduct the registration, authorization and monitoring of discharges in accordance with the special regulation. Discharges shall be integrated into the respective registry.

The maintenance, operation, expansion and other needs of the hydrometeorological observation and data collection network shall be financed with the 20% or the percentage that the Water Authority designates of the resources of the trust, as established in Article 93 of the Law.

The Water Authority through the National Institute of Water Resources (INRH) shall be in charge of monitoring the quantity and quality of water and its corresponding registration, considering also the information generated by other entities in the public or private sphere. TITLE V WATER USES AND UTILIZATION CHAPTER I GENERAL ASPECTS

The right to use or utilize water, whether surface or groundwater, shall be granted by legal provision in accordance with that established in Articles 67 and 68 of the Law, by permit or license granted by the competent municipality that has authorization from the Water Authority or through concession granted by the Water Authority, in accordance with the Table of Categorization of Water Uses and Utilization issued for such purpose.

The use and utilization of water resources is conditioned by their availability and priority, must be carried out in an efficient manner and with respect for the rights of third parties, in accordance with that established in the Law, guaranteeing the water necessary for human consumption through equitable access, public health, national security and social and economic development, as well as the conservation, sustainability and protection of the resource and the generation of minimal environmental impacts.

The order of priority of the classes of water use and utilization shall be as follows: 1.- Common use and domestic use. 2.- Productive and economic use and utilization. Within common and domestic uses, water for human consumption shall have priority.

The permits or licenses for water use established in article 67 of the Law shall be extended by the competent Municipality based on territory, safeguarding that the competent Authority for the imposition of tariffs for water use is exclusively the Water Authority.

The State guarantees to all persons the human right to water, for the purpose of satisfying personal and domestic needs.

In states of water scarcity, the local, regional, and national authorities responsible for the regulation and operation of water supply services must adopt rationing measures in order to guarantee basic supply.

Productive and economic use of water refers to its utilization in production processes or prior to them. It is exercised through water use rights granted by the competent authority in accordance with what is established in this Regulation.

The types of productive and economic use of water are the following: 1. Agroforestry: Livestock, agricultural, and forestry. 2. Aquaculture and fisheries. 3. Energy. 4. Industrial and commercial. 5. Sanitary and therapeutic. 6. Geological and mining. 7. Tourism and recreational. 8. Navigation and aquatic and maritime transport. 9. Other productive uses different from the aforementioned. The utilization of the water resource by micro and small enterprises is subject to permits and licenses extended by municipalities provided that the volume used complies with what is established in the Tariff Regime Regulation; the utilization of such resource by medium and large enterprises shall be the sole responsibility of the water authority under the terms of article 68 of the Law.

The right to use or utilize water may be granted for uses not provided for in the preceding articles, respecting the provisions of the Law, the Regulation, and other applicable regulations in the matter.

The rights granted for a specific use may not be allocated to other uses without the corresponding authorization.

Authorizations for the utilization of Surface and Groundwater Resources shall be granted through the modality of Permits, Licenses, and Concessions in accordance with the Administrative Procedure Law, the Law, General Environmental Law, Forest Law of Protected Areas and Wildlife, this Regulation, and other applicable legal foundations in the matter of water resources. For the granting of concessions for productive uses, the Water Authority may request an opinion from the basin councils, as well as from any other corresponding entity.

In cases where the water source on which the title for utilization of the water resource is granted is located in an area declared as a protected area, prior to granting the corresponding authorization, the opinion of the competent authority responsible for the management of these areas and other corresponding entities must be obtained.

The rights of utilization granted or to be granted shall be conditioned to water availability, to priorities of use and utilization, as well as to the real needs of the holder. Neither the State nor the Water Authority shall be responsible for diminution or lack of water in the sources, nor for their depletion due to natural causes or for the satisfaction of justifiably public needs. CHAPTER II UTILIZATION THROUGH ADMINISTRATIVE REAL RIGHTS Section A. General Aspects

The criteria for the approval of the rights of utilization are contained in this Regulation and shall be subject to further development in the Table of Categorization of Uses and Water Resources that shall be prepared by the Water Authority within six months following the approval of this Regulation.

In cases where a servitude is required to grant the authorization for utilization, the corresponding supporting document shall be attached to the application, without prejudice to indemnifications according to law. It shall also comprise the concession of public domain lands necessary to make it effective. Should these lands be abandoned or allocated to a different purpose, it shall be understood that they shall revert to their previous status.

For the granting of rights of utilization, a field inspection shall be required for prior evaluation and subsequent inspections for proper control and monitoring with the objective of verifying the adequate use of the utilization in accordance with the right granted. Such inspections shall be conducted by the competent authority, in accordance with what is established in this Regulation, for which the applicant shall bear the cost of the same. In the case of Licenses and Permits, the cost of the aforementioned inspections shall be established by the competent municipality through its budget plans; in the case of Concessions, Licenses, and Special Permits for water use and utilization, the cost for inspections shall be established by the Water Authority through the Special Tariff Regime Regulation.

The utilization of Groundwater shall be subject to what is provided in the special regulation that, in accordance with article 79 of this Regulation, the Water Authority shall issue.

The permit, license, or concession only grants to its holder the right to the use granted, under the conditions and with the limitations that are established in the Law and its regulation and those determined in the license, permit, or concession. Except for rights validly granted in accordance with prior legislation, any permit, license, or concession that is not granted in accordance with the provisions of the Law and this regulation shall be void and shall be deemed non-existent; the foregoing is understood without prejudice to the adjustments provided for in article 101 of the Law.

Different rights for the use of waters from the same source may be granted for different purposes, provided that these are not incompatible or do not prejudice pre-existing rights; those who consider themselves harmed may oppose any request for new uses. For the granting of water use rights in the situations indicated in the preceding paragraph, the Water Authority shall attend to the principles for use and prioritization indicated in the Law and in this Regulation. According to the use intended for the water, the resolution granting the use must take into account what is prescribed in the Framework Law of the Drinking Water and Sanitation Sector, the Law of Municipalities, or other applicable legislation. Section B. Permits and Licenses for Use Subsection First. General Aspects

The municipalities in their respective jurisdiction and under the directives of the Water Authority and in accordance with their competence in order to guarantee the right of citizens to equality in the application of the Law and the Regulation, may grant permits or licenses in accordance with the provisions of article 67 of the Law and 140 of this Regulation, the criteria that will be established in the Table of Categorization of Uses and Water Use and what is established in this Regulation.

Applications for the granting of permits or licenses for the use of national waters, which involve water diversions, must be accompanied by the justification of the requested flow and the absence of significant impact on other pre-existing uses, whether upstream or downstream, and the documentation established by article 69 of the Law, this Regulation, and others that the Water Authority deems appropriate.

Permits or licenses grant the right to beneficial use of water; they do not grant property rights over the same and may only be exercised in accordance with the authorized limits. The construction of works or installations necessary for the exercise of the authorized use shall be at the expense of its holder.

Once permits and licenses for the right to use national waters are granted, the holder must present in the month of December annually the volume of water used, which must not exceed the volume granted, in order to calculate the value to be paid for said use to the competent authority. In case of non-compliance with this provision, the right that was granted may be revoked.

For matters not provided for in this Regulation, the administrative procedure for granting licenses and permits for water use shall be subject to the provisions of the Law of Administrative Procedure and, subsidiarily, to the procedure regulated in the following articles for the granting of concessions.

Permits or licenses shall be granted with a validity of ten (10) years; they may be renewed at the request of the interested party for the same period originally granted, four (4) months before their expiration, if the reasons that determined their granting continue to exist. For this purpose, technical studies and evaluations shall be taken into consideration that determine the feasibility of the extension and its convenience to the general interest, as well as water availability and other hydrological considerations.

Respecting the priority of water for human consumption, when different requests concerning the same water source occur, the competent municipality shall decide in favor of the one that represents greater economic-social importance and utility and protection of associated ecosystems, taking into account the advantages for the corresponding region; in case of equal conditions, preference shall be given to the one that was presented first. Subsection Second. Procedure

The uses related in article 67 of the Law shall require a permit or license from the competent municipality, whose granting shall be subject to the procedure established in this Regulation, taking into account the water availability shown in the National Water Balance or updated hydrometeorological records of the source and what is provided in article 66 of the Law.

The interested party shall submit an application to the competent municipality containing the documentation or information detailed in article 69 of the Law through a technical report format with verification means when appropriate, established by the Water Authority, legal requirements established in current and applicable legislation in the case, receipt of payment for field inspection for prior evaluation to granting, publication in a newspaper of wider circulation in the zone once only with five days before the submission of the application; as well as the opinion of the competent Basin Organization and other technical and legal requirements at the consideration of the Water Authority.

The Municipalities duly authorized for the granting of licenses or permits for the use of the water resource must consult the Water Authority regarding the competence of said application. In case the Water Authority authorizes the Municipality as competent to grant the water resource use, the Municipality must determine whether or not its granting proceeds, and in case it is granted, it must inform the Water Authority for its proper registration within a period not exceeding 30 calendar days.

The holders of licenses and permits for water use shall be obligated to permit the inspections and other control and monitoring activities that the corresponding municipality may order in the exercise of its functions. They shall also be obligated to pay the indemnities resulting from the easements that may be imposed to facilitate the holders in the exercise of the right to water use and to comply with the other obligations provided in article 73 of the Law. Section C. Concession Subsection First. General Aspects

The uses related in article 68 of the Law shall require a concession agreement granted by the Water Authority. Concessions shall be formalized through agreements signed by the Water Authority and the applicant, in accordance with what is provided in the aforementioned provision, in this Regulation, and the criteria that will be established in the Table of Categorization of Uses and Water Use.

In accordance with the Law, the State may grant concessions for the use of water resources for special use of waters and, where applicable, of hydraulic works, materials in suspension or sections or portions of the channels or beds. The concession does not mean any alienation of water resources, without prejudice to the use or exploitation to which it is destined, and shall be granted in any case, without prejudice to rights of third parties legitimately established, whether upstream or downstream. The construction of works or installations necessary for the exercise of the authorized use shall be at the expense of its holder. Applications for the granting of concessions for the use of national waters, which involve water diversions must be accompanied by the justification of the requested flow and the absence of significant impact on other pre-existing uses, whether upstream or downstream, and the documentation established by article 69 of the Law, this Regulation, and others that the Water Authority deems appropriate.

Once concessions for the right to use national waters are granted, the applicant must present in the month of December annually the volume of water used, which must not exceed the volume granted, in order to calculate the value to be paid for said use to the Water Authority. In case of non-compliance with this provision, the right that was granted may be revoked.

Every concession for the use of water resources shall be granted with a term of thirty (30) years. Said term may be extended at the request of the interested party, in accordance with the provisions of article 71 of the Law. For this purpose, technical studies and evaluations shall be taken into consideration that determine the viability of the extension and its convenience to the general interest, as well as water availability and other hydrological considerations. The term of the concession shall, in any case, be set taking into account the scheduling of the activity to be developed, the return of planned investments, hydrological planning or other technical, economic, social or environmental considerations. The request for extension must be submitted within the year prior to the expiration of the term; in addition to the foregoing considerations, it shall also be evaluated whether there have been no grounds for revocation or lapse, as provided in articles 76 and 77 of the Law.

Respecting the priority of water for human consumption, when different requests concerning the same source of use are submitted concurrently, the Water Authority shall decide in favor of the one that represents greater importance and economic-social utility and protection of associated ecosystems, taking into account the advantages for the corresponding region; in the event of equal conditions, preference shall be given to the one submitted first.

The holders of concessions for water use shall be obligated to permit inspections and other control and monitoring activities that the Water Authority may order in the exercise of its functions. They shall also be obligated to pay the indemnities resulting from easements that may be imposed to facilitate the exercise of the right to use the water and to comply with the other obligations provided in article 73 of the Law.

Every concession, when applicable, shall be subject to forced expropriation, in accordance with the provisions of general legislation on the matter.

The uses listed in article 68 of the Law shall require a concession agreement with the Water Authority whose processing shall be subject to the procedure established in the following articles.

The Water Authority may submit the granting of concessions for water use for determined purposes to a project competition, taking into account the water availability shown in the National Water Balance and the provisions of article 66 of the Law. For matters not provided for in this Regulation, the procedure for the award of these concessions through the project competition process shall be that provided in the Concessions Law approved by Decree No. 283/98 and other concordant regulations that are applicable. In all other cases, concessions shall be granted at the request of the interested party, observing the procedure referred to in the following articles.

The interested party shall submit an application to the Water Authority containing the documentation or information detailed in article 69 of the Law through a technical memorandum format with verification means when appropriate, as established by the Water Authority, legal requirements established in current and applicable legislation in the case, payment receipt for field inspection for evaluation prior to granting, publication in a newspaper of major circulation in the area only once five days prior to the submission of the application; as well as the statement from the competent Basin Organization and other technical and legal requirements at the consideration of the Water Authority.

The following documentation shall accompany the application: 1. That cited in article 69 of the Law. 2. At the discretion of the Water Authority and depending on the characteristics of the requested Concession, the following documentation shall be attached: a. In the case of uses that require hydraulic infrastructure, a project document in duplicate signed by a competent technician in which the necessary works and installations and their execution timelines shall be determined, justifying the flows to be used. The project may be replaced by a preliminary project, in which the characteristics of the use, the works and the effects are defined in sufficient detail to carry out a possible project competition, with the obligated party to complete the definition level if the Water Authority deems it still insufficient. The submitted document shall include a diagram of the installations. When the requested concession is for irrigation, the technical justifying document for this type of use shall include an agronomic study that shall cover at a minimum a calculation of the water allocation referred to each of the months in which irrigation is necessary. Likewise, the application shall be accompanied by an analysis and proposal of best practices to limit diffuse pollution, salt export or other contaminants, especially in areas declared to be of special protection. b. In the case of uses that do not require hydraulic infrastructure, the interested party shall submit an application to the Water Authority containing the documentation or information detailed in article 69 of the Law through a technical memorandum format with verification means, payment receipt for field inspection for evaluation prior to granting, as appropriate, and other technical and legal requirements established in this Regulation and at the consideration of the Water Authority. 3. The Water Authority may request, in any case and in view of the importance of the impacts, the provision of supplementary studies on the sanitary, social and environmental impacts and their solutions, with the assessment of each of them. The studies shall comply with standardized models, in the case that the same exist.

Once the application is admitted, the Water Authority shall publish a notice to the general public providing the relevant data of the application submitted on its electronic portal or other dissemination means. In the case of municipalities and pertinent basin organizations, said notice shall be published in the dissemination media they have available.

In addition to the applicant, any natural or legal person shall be considered an interested party in the proceeding who, in view of the notices referred to in the previous article or by direct citation by the Water Authority, when it becomes aware of their existence, appears in the case filing an opposition by alleging interference of the requested use in their subjective rights or legitimate interests. The aforementioned citation shall be issued in parallel with the publication referred to in the previous article. Such opposition must be filed within the period established in the Administrative Procedure Law from the publication or citation previously indicated.

If documented opposition is presented, the Water Authority may request further information from the person who filed it or from other sources. The opposition shall be processed in accordance with the process established in the Administrative Procedure Law. The oppositions and the results of the analysis conducted by the Water Authority shall be incorporated into the proceeding for the purpose of being taken into account in the resolution issued for this purpose. If no oppositions are presented, the proceeding shall be considered completed.

Cases shall be processed observing the provisions of the Administrative Procedure Law. If the resolution is favorable, the Water Authority and the applicant shall execute an agreement indicating the characteristics and conditions of the granted use, including, among others, the term, fee for use subject to corresponding updates, payment of the indemnity that may correspond for the easements that may be necessary and other obligations of the concessionaire, as well as the mentions provided in articles 70, 73, 74, 75, 76 and 77 of the Law. For the purposes of what is prescribed in the first paragraph of article 68 of the Law, by Concessions Law shall be understood the Law on Promotion and Development of Public Works and National Infrastructure or other legislation on concessions that may be issued subsequently.

The Water Authority shall grant special permits and licenses in the following cases:

• 1)

  Licenses for the conduct of studies and research.

• 2)

  Licenses for the conduct of temporary work.

• 3)

  Permit for the use of surplus water, drainage or seepage.

• 4)

  Permit for small water uses or waterways, or for transitory uses, meaning those that do not require water diversion through permanent works.

• 5)

  Permit for discharges to the public hydraulic domain, which shall be regulated in the Special Discharge Regulation. The Water Authority, when appropriate, may delegate to Regional Agencies or Municipalities the granting of the special Licenses and Permits described above. The Water Authority shall determine the temporality of the permits and licenses described, based on the technical documentation attached to the application.

A permit or license from the Water Authority shall also be required for commercial navigation on lakes, lagoons, reservoirs or water courses, for rafts for the transport of persons or things, or for flotation as a means of commercial timber transport, when such uses are permitted by the natural conditions of the waters and are not merely artisanal activities.

To obtain a permit or license from the Water Authority for ferries or crossing boats, a description of the installations, landing places and characteristics of the vessel shall accompany the corresponding application.

The Water Authority shall be competent for the granting of permits or licenses for river flotation for timber transport. The application shall indicate, among others, the section or sections of the river that is intended to be used, dates, existing obstacles and the manner of overcoming them, characteristics and number of the pieces to be transported. The permit holder shall be responsible for any damage that may be caused to property belonging to the State or to third parties in the section subject to flotation.

When it comes to applications for metallic and non-metallic mining extraction, from the area of hydraulic public domain, water recharge zones and other areas linked to the affectation of the quality and quantity of water, prior to its authorization by the corresponding entity, the opinion of the Water Authority shall be required. The Water Authority shall examine the technical justification, and shall evaluate whether the discharge of the current is altered or the risk of flooding or other damage to the environment or to public or private property is increased, or whether the quantity and/or quality of the water resource is altered.

In the case of marine navigation, the Water Authority shall coordinate actions with the General Directorate of Merchant Marine or other competent entities, to guarantee the conservation of marine and coastal resources.

The procedures for granting these permits shall be subject to what is applicable as described in this title relating to permits, licenses and concessions and to the specific requirements established by the Water Authority. The fees and tariffs to which they shall be subject shall be developed through special regulations. CHAPTER III EXTINCTION AND SUSPENSION OF WATER USE RIGHTS

The right of water use is extinguished by any of the following causes: a. Renunciation. b. Expiration of the term. c. Revocation. d. Forfeiture. e. Loss of the object to be conceded. f. Lack of permanent water availability. g. Other causes established in this Regulation or that the Water Authority considers. Once the right is extinguished, the Water Authority or the competent municipality shall arrange for the cancellation of the registration in the Public Water Register referred to in article 85 of the Law, directing the corresponding communication for such purposes. It shall also proceed to the cancellation in the administrative register of water use rights that the Water Authority shall keep, in accordance with what is provided in this regulation.

The holder of water use rights may renounce them, as provided in the second paragraph of article 74 of the Law, provided that this does not prejudice third parties.

The expiration of the term for which the water use right was granted shall result in its automatic extinction, without prejudice to the right holder presenting the corresponding extension request.

Water use rights may be revoked, without right to compensation, in the cases provided in article 76 of the Law and in this Regulation. Temporary suspension of the uses shall not produce the effects of revocation, being limited to the time that is strictly necessary to avoid affecting water supply to populations or other public service; when this occurs, the use shall be resumed when the reason for such suspension ceases.

Forfeiture of water use rights shall occur, without obligation to pay any compensation, when any of the causes provided in article 77 of the Law occurs.

In both cases of revocation and forfeiture of water use rights referred to in the preceding articles, the competent authority shall act ex officio or upon complaint by a third party, and the right holder shall be heard before issuing a resolution, which shall be sufficiently reasoned.

The use title shall be extinguished, without right to any compensation, when the source of supply is naturally exhausted or when the waters lose their natural suitability for the use to which they are intended. The provisions of this Regulation regarding the extinction and completion of the term for which the water use right was granted shall also be applicable to these cases.

The competent Authority may suspend water use, prior to the corresponding technical analyses, in the cases established in article 75 of the Law and in those enumerated below: a. When users have not prepared the internal aqueduct system, as applicable; and, b. In case of sanctions, as provided in article 95 of the Law. Uses may be resumed when the causes that motivated their suspension disappear. In the preceding cases, as provided in article 75 of the Law, the suspension shall not entail responsibility of the Water Authority. Every resolution of the Water Authority that orders the suspension must be duly reasoned and notified to the interested parties.

The suspension and extinction of the water use right, whatever its cause, shall leave intact the faculty of the Water Authority to collect the canon for use or other economic rights that are pending payment, until the date of suspension or extinction of the water use right as provided in the applicable regulations. TITLE VI PLANNING, CADASTRE AND PUBLIC WATER REGISTER CHAPTER I WATER PLANNING

In accordance with the National Water Policy and the guidelines defined by the National Council of Water Resources, the Water Authority shall define the guidelines for the elaboration of the National Water Plan and the Water Plans of the watersheds.

Hydrological planning shall have as its general objective to achieve adequate satisfaction of water demands, increasing the availability of the resource, protecting its quality and making its use and exploitation more efficient within the framework of the Nation Plan and in harmony with the environment and other natural resources. All this while ensuring the balance and harmonization of the economic, social and environmental development of the nation.

For purposes of execution and compliance with the National Water Policy, MY ENVIRONMENT+ shall propose to the Executive Branch the draft National Water Plan for its corresponding approval. In a similar manner and with identical purpose, it shall propose the Basin Water Plans. Both shall use as reference the Vision for the Country, the Plan of the Nation, and the corresponding Government Plan, within the framework of development planning.

The instruments of Water Planning are the National Water Plan (or Master Sectorial Plan of Water Resource) and the Basin Water Plans, in coherence with the Plan of the Nation and the corresponding Government Plan, within the framework of development planning.

Water policy is in service of the strategies and sectorial plans established by the public administration regarding the different uses and utilizations, which is why the elaboration of water planning documents shall require the participation and commitment of inter-institutional cooperation and all competent entities, both in the prior phases of information contribution as well as during the elaboration process and in the phase of defining measures, with the Water Authority being responsible for ensuring the rational and sustainable management of the resource and therefore shall condition all rights of water resource use, authorization, or future infrastructure that is requested through this Regulation, special regulations, and other applicable legal instruments.

The Basin Water Plans and the National Water Plan and their updates shall be public and binding documents and shall not create rights in favor of private parties or entities by themselves, therefore their modification shall not give rise to compensation, without prejudice to the provisions of this Law regarding water use rights granted for the use of water.

The elaboration and proposal of subsequent revisions of the National Water Plan and the Basin Water Plans shall be carried out by the Water Authority, through the National Institute of Water Resources (INRH) with the collaboration of the corresponding Regional Agencies and Basin Organisms and with the participation of other entities, organisms, users, and all agents related to the integrated management of water resources, taking into account the guidelines proposed by the National Council of Water Resources, in the context of the Plan of the Nation and corresponding Government Plan. The Water Authority shall guarantee citizen participation throughout the entire planning process, both in the phases of prior consultations as well as in the development and approval or revision phases of the plan.

Water plans shall be elaborated in coordination with the different sectorial planning that affects them, both with respect to the uses and utilizations of water as well as land uses and especially with what is established in the planning of irrigated areas and other agricultural and productive uses, therefore, sectorial or multi-sectorial development plans by competent entities shall be in accordance with the Water Plans.

Plans that are developed for risk control in extreme hydrological situations shall be integrated into the Water Plans.

The territorial scope of each basin water plan shall be coincident with the corresponding hydrographic basin, delimited by the Water Authority.

In the preparation of water plans, the following information shall be taken into consideration: 1. Available hydrological statistics, including precipitation, evaporation, runoff, and any information that may be relevant for the adequate evaluation of the quantity and quality of water resources, both surface and groundwater. 2. Available statistics on water consumption, with indication of their sources and the uses for which they are intended. 3. Historical information available on maximum and minimum flow rates. 4. Available data on groundwater exploration. 5. The inventory of available hydraulic infrastructure and their main characteristics. 6. Other information that is considered relevant.

The Basin Water Plans shall include at least: 1. The country's goals and commitments to the national and international community with respect to the provision of water to the population and the objectives for the conservation and improvement of water resources and their associated ecosystems. 2. The indicators defined to monitor compliance with the national water plan. 3. Collection, analysis, and complementation of necessary information. 4. A general description of the characteristics of the hydrographic basin from the physical, climatological, hydrological, social, economic, and environmental perspective. 5. The inventory and evaluation of surface and groundwater resources, from the perspective of quantity and quality. 6. The existing and foreseeable water uses, utilizations, or demands. 7. Environmental flow rates. 8. The water balance of the basin, which shall be updated every five years. 9. The compatibility criteria for utilizations and uses that are considered priority. 10. The allocation and reservation of waters for uses and utilizations. 11. A summary of the effects of human activity on waters. 12. The reserve areas and protection perimeters for the conservation and recovery of water resources, municipal micro-basins that supply water, soils, or the environment in general and the measures necessary to achieve these objectives. 13. The basic standards for water quality and the regulations for wastewater discharges. 14. Proposal to improve and expand existing monitoring networks for the control of water resources in quantity and quality, both surface and groundwater and discharge control. 15. The guidelines for groundwater aquifer recharge and protection. 16. Study of extreme hydrological situations: droughts and floods. 17. The relationship and coordination with other sectorial planning with effects on the management of water resources. 18. Criteria for the development of studies, activities, or works to prevent and avoid damage due to floods, flooding, or other hydraulic phenomena. 19. Economic analysis of water use. 20. Catalog of projects, actions, and measures that may be required, including their approximate budget, the entity or entities responsible for their execution, source of financing, and temporal horizon for execution. 21. Economic and social impacts of the planned activities. 22. A summary of the public information and consultation measures taken, their results, and the consequent changes made to the plan. 23. Inventory of stakeholders present related to the integrated management of water resources and their performance characteristics. 24. Other aspects that may be necessary for the adequate management of water resources.

The National Water Plan shall contain, in addition to what is established in Article 83 of the Law, all those topics that are required for the development of said content, the necessary measures for the coordination of the different basin water plans, considering territorial planning and sectorial planning in matters of irrigation, energy, supply to populations, or other water uses, as well as the protection of the environment and the promotion of different productive activities, all of this within the framework of the policy guidelines that emanate from the Presidency of the Republic through the Office of General Government Coordination or the competent entity.

Citizen participation shall be guaranteed in any case throughout the entire planning process, both in the phases of prior consultations as well as in the development and approval or revision phases of the plan. To such effect, in the prior phases the National Institute of Water Resources (INRH), at the instance of the Water Authority and with the support of the Regional Agencies and the Basin Organisms, shall define the organization and procedure to make citizen participation effective for each of the water plans. The document of organization and participation procedure shall include: the prior list of involved actors, the organization and schedules of the public information, citizen consultation, and active participation procedures in the water plan, and the description of the methods and participation techniques to be used in the different phases of the process.

The procedure for the elaboration and revision of water plans shall be defined by the National Institute of Water Resources (INRH) with the support of the Regional Agencies and Basin Organisms, as appropriate, and shall be approved by the Water Authority. It shall contemplate the programming of calendars, work programs, elements to consider, and prior drafts to enable adequate public information and citizen consultation from the beginning of the process. For this purpose, prior to the elaboration and proposal for revision of the water plan, a work program shall be prepared that shall include the planned phases for said elaboration and revision, the execution period, and the institutions involved in each one. As a guide, these shall be: PHASES INSTITUTIONS INVOLVED · Definition of Water Plan Guidelines. · Scope and Work Program · Citizen Participation Program · Base Information: technical, social, water, environmental, economic activities of each area MY ENVIRONMENT+ Water Authority Basin Organisms Institutions and State Secretaries linked · Analysis and Complementation of Information National Institute of Water Resources (INRH) Regional Agencies Basin Organisms · Citizen Participation in Diagnosis with Governmental Entities, Private Enterprise, and Civil Society Users Water Authority Basin Organisms State Secretaries and Linked Institutions · Closing Gaps (Unmet Needs, Infrastructure in General, and Other Activities) MY ENVIRONMENT+ Water Authority Basin Organisms · Citizen Participation in the Proposal for Closing Gaps MY ENVIRONMENT+ Water Authority Basin Organisms State Secretaries and Linked Institutions · Definition of Actions and Measures: a. Prioritization of Actions b. Execution Schedule of Actions c. Execution Budget of Actions Water Authority, National Institute of Water Resources (INRH) MY ENVIRONMENT+ State Secretaries and Linked Institutions, Office of Finance and Municipalities · Elaboration of Executive Decree Water Authority with suggestions from the National Council of Water Resources · Presentation of Executive Decree to the Office of General Government Coordination (SCGG) MY ENVIRONMENT+ · Approval of Water Plans Executive Branch. Official Delivery of Water Plans to the Corresponding Competent Instances (Basin Councils and Municipalities) Water Authority

The Water Plans shall be in accordance with the country's environmental policy and regulations relating to the evaluation of environmental effects with the competent entities.

The National Water Plan shall be approved by the Executive Branch through an Executive Agreement of the Presidency of the Republic. The National Institute of Water Resources (INRH) shall present to the Water Authority the proposal of the National Water Plan duly socialized. The Water Authority shall approve it technically, once the favorable opinion of the National Council of Water Resources is received, which shall verify the guidelines with the National Water Policy and collect its suggestions and recommendations. MY ENVIRONMENT+ shall present this proposal of the National Water Plan to the Office of General Government Coordination, which shall review it before its presentation to the Executive Branch for definitive approval through Executive Decree.

The Basin Water Plans shall be approved by MI AMBIENTE+ through Ministerial Agreement. The National Institute of Hydric Resources (INRH) shall present to the Water Authority the proposal of the Basin Water Plans duly socialized. The Water Authority shall technically approve the same, which shall verify compliance with the guidelines of the National Water Policy and National Water Plan. The Water Authority shall present these proposals of Basin Water Plans before MI AMBIENTE+, for final approval through Ministerial Agreement.

The approval of the National Water Plan shall imply the adaptation of the basin water plans to the provisions thereof, in case it is necessary.

The basin water plans and the National Water Plan shall be monitored, evaluated and adjusted periodically, as may be appropriate to the national interest. The following shall be subject to special monitoring: the variation of available water resources, the evolution of demand and the characteristics of water quality. In accordance with the updating of the water balance, the updating of the Water Plans shall be carried out every five (5) years.

At the end of the term of validity of each Water Plan, an evaluation of the results thereof shall be carried out, prior to the formulation of a new Water Plan. It shall be monitored with respect to the fulfillment of its goals and objectives, through the monitoring of the defined indicators.

The updates of the Water Plans, apart from the matters subject to monitoring with their corresponding updates, shall comprise: 1. A summary of all changes or updates made since the publication of the preceding version of the plan. 2. An evaluation of the progress made in accordance with the measures and proposals made in the previous version of the plan. 3. A summary and explanation of the measures envisioned in the previous version of the basin water plan that have not been implemented. 4. Proposal of new measures.

Without prejudice to the powers that correspond to the State Secretariat of the Offices of Infrastructure and Public Services (INSEP), to the municipalities or to other competent authorities, the Water Authority shall keep up-to-date information on the development of public or private works or other activities envisioned in the plans, which shall serve as the basis for the next planning cycle to be carried out every five (5) years.

It is the responsibility of the Water Authority to create and keep up-to-date the General Cadastre of Works and Hydric Resources referred to in article 84 of the Law. This shall include the inventory of hydric resources, with specification of their quantity and quality, geographic location and other data indicated in article 84 of the Law. The Hydric Cadastre shall also include the catalog of available public and private infrastructures, with indication of their principal characteristics and their purpose. The available information shall be referenced through automated geographic information systems and registered in the Public Registry of Waters and shall be available for consultation by interested parties. All institutions that intervene in the integral management of water shall actively collaborate with the Water Authority in the gathering and updating of all information that is the subject of the aforementioned Cadastre of Waters.

For administrative purposes, the Water Authority shall maintain the Public Registry of Waters integrated into the Property Registration System. For legal purposes, the Public Registry of Waters shall function as a tool of information and management associated with the Property Institute. In the aforementioned Registry shall be noted ex officio the permits, licenses and concessions granted for the use of water rights, the permits for exploration and perforation of groundwater and the authorizations for discharges, including their modifications, extensions, temporary suspensions, sanctions imposed on their holders and termination for any cause. Likewise, shall be noted the public uses for which water reserves shall have been constituted, in accordance with the provisions of this regulation. The municipalities shall have the obligation to notify the Water Authority of the information regarding those permits and licenses that they have granted, within thirty (30) days following their granting.

Water use rights may not be granted that contradict the water use rights already registered in the Public Registry of Waters, without prior annulment having been proceeded.

The administrative registry referred to in the preceding article shall be maintained in the central offices of the Water Authority, and may be consulted by any interested party. In the Regional Agencies a digitalized summary shall be maintained. In the registry shall be noted the number of each permit, license or concession, the name of the holder, geographic location of the water intake, class and characteristics of the use or affection of the waters, maximum flow granted, term and specific conditions of the right granted or conferred and other data indicated in this regulation.

It is the responsibility of the Water Authority through the Governing Board to determine and propose to manage the values of: 1. The economic compensation for use of continental and insular waters and their public domain. 2. The economic compensation for authorizations of water discharge. 3. The economic compensation for environmental services. 4. Other charges provided for in the Law and in this regulation. For the remaining waters and in general of the public domain, over which the State of Honduras exercises sovereignty or holds rights, it shall be the competent authorities that establish the value of economic compensation and for their use and exploitation.

The economic compensation for the use and exploitation of continental and insular waters that the Water Authority based on Law establishes, during the regularization process in this Regulation shall be the following: a. For banana cultivation three (3) annual dollars per hectare or the equivalent in lempiras at the current exchange rate of the currency at the time of payment. b. For the other uses contained in the Law, this Regulation and those that shall be detailed in the Table of Categorization of Uses and Exploitation of Water, mentioned in the provisions of this instrument, the canon shall be one quarter of one centavo of lempira (L. 0.0025) per cubic meter. The economic compensation for the use and exploitation of national waters for the development of hydroelectric projects shall be the canon and process established in article 68 and other applicable articles of the Law for the Promotion of Generation of Electrical Energy with Renewable Resources, while there is no other provision. The holder of the right of exploitation shall pay the canon annually in advance in the month of January of each year. The Water Authority shall adjust the value by volume of the economic compensation for the use and exploitation of continental and insular waters, through a Regulation of the Tariff Regime where the amount and conditions thereof shall be readapted, which shall be socialized with the water user actors, which shall be applied upon the expiration of the term granted for the regularization process in this Regulation.

The economic compensation for use or authorizations of water discharges, for environmental services and other charges provided for in the Law and in this regulation, shall be in accordance with the means, modality and processes determined by the Water Authority and the rates fixed in the Regulation of the Tariff Regime.

The municipalities shall implement the charges or economic compensations established in this Regulation and in the Regulation of the Tariff Regime that is approved for its applicability and in order to comply with what is defined in articles 67 and 86 of the Law.

For the determination of economic compensations, the criteria provided for in article 87 of the Law shall be taken into account, and must be the result of technical and economic studies.

Maritime waters are excepted from the economic retribution for the use and exploitation of waters cited in this chapter. CHAPTER II INCENTIVES

The Water Authority shall prepare an incentives program for the fulfillment of the purposes provided in article 89 of the Law. As regulated in the program, these incentives may be financed with resources from the National Water Resources Fund created in article 91 of the Law, all without prejudice to the fact that, through inter-institutional coordination, within the Program may be included the incentives contained in forestry legislation and other applicable laws for the stated purposes. Said program may be reviewed periodically to adjust it to variations in the circumstances that were considered for its formulation.

Natural or legal persons who request to be admitted to the incentives program shall submit an application where the following is evidenced: 1. That their proposal is framed within any of the five subsections of article 89 of the Law. 2. The capacity in which they conduct the activity (concessionaire of rights, owner of land, provider of environmental services, etc.). 3. The purpose of the activity. 4. The favorable opinion of the Basin Council of the jurisdiction. 5. The ruling of the competent institution if the activity involves another sector, or of the municipality if an ejidal property is affected. 6. Accompany the environmental license corresponding to the category of the activity.

The Water Authority shall receive the applications, which it shall review and technically process within the following 15 business days. If the application presented is not sufficiently explicit for its correct assessment, the procedure provided for in article 63 of the Administrative Procedure Law and other applicable provisions shall be followed.

Once the requirements are met, the Water Authority shall resolve the manner in which incentives will be granted in accordance with the guidelines of the Program, priority of the incentivized activity at the time, available resources, and order of application submission.

In matters not provided for in this chapter, the provisions of the Administrative Procedure Law shall apply. TITLE VIII RESOURCES, JURISDICTION, INFRACTIONS AND SANCTIONS CHAPTER I RESOURCES AND JURISDICTION

The system of remedies applicable to the content of this Regulation shall be that regulated in Chapter II, Title IV of the Administrative Procedure Law.

The competent jurisdiction in this matter shall be administrative law matters in accordance with the provisions of the Law of the Jurisdiction of Administrative Law Matters. CHAPTER II INFRACTIONS

In accordance with the provisions of article 96 of the Law, the following shall be considered administrative infractions in this matter as defined in the following articles.

The following shall constitute minor administrative infractions: 1. The commencement of execution of works or labor of any kind in the area of public hydraulic domain or in areas legally subject to some type of limitation without the due authorization by the competent Authority, provided that the damages caused according to their appraisal do not exceed ten (10) monthly minimum wages. 2. The extraction of sand, rocks or other materials, their invasion or occupation in the area of public hydraulic domain, without due authorization, provided that the damages caused according to their appraisal do not exceed ten (10) monthly minimum wages. 3. Non-compliance with the conditions established in permits, licenses or concessions for exploitation, authorizations for discharge or disposal of wastewater, or any other special permit or license granted, provided that the damages caused according to their appraisal do not exceed ten (10) monthly minimum wages. 4. Other actions or omissions that cause damage to infrastructures or other property of the public hydraulic domain provided that the damages caused according to their appraisal do not exceed ten (10) monthly minimum wages. 5. Non-compliance with any prohibition established in the Law and this Regulation or the omission of acts to which they are obligated, provided that they are not considered serious or very serious. 6. Actions intended to prevent inspections or examinations by the competent Authority, or concealment or falsity of data requested by it. 7. Disobedience to the orders or requirements of officials of the competent Authority, in the exercise of their functions. 8. The exploitation of water resources without having a permit, license or concession that supports it. 9. The carrying out of any of the activities included in Section D of Chapter I of Title V of this Regulation without the corresponding license or authorization. 10. Other actions or omissions that contravene the provisions of the Law and of this Regulation, provided that they are not classified as serious or very serious infractions.

The following shall constitute serious infractions: 1. The diversion of water from watercourses and the pumping of groundwater without the corresponding right of exploitation, when required in accordance with the Law and this Regulation. 2. The execution of drilling or investigation work of groundwater and installation of equipment for that purpose, without the corresponding title of exploitation when required. 3. Discharges into watercourses or infiltration into the subsoil of polluting substances or those that may affect the quality and quantity of surface or groundwater, without prior authorization for the discharge or in contravention of the authorized conditions. 4. The use of water in volumes exceeding those authorized. 5. The execution without due authorization of works or labor of any kind, in public watercourses, or in areas legally subject to some type of limitation, when damage is produced in the area of public hydraulic domain or in areas legally subject to some type of limitation without due authorization by the competent Authority, provided that the damages caused according to their appraisal do not exceed twenty (20) monthly minimum wages. 6. The extraction of sand, rocks or other materials, or their invasion or occupation, in the area of public hydraulic domain, without the corresponding authorization when required, when damage is produced to the public hydraulic domain exceeding twenty (20) monthly minimum wages. 7. Non-compliance with the conditions established in permits, licenses or concessions for exploitation or in authorizations for disposal or discharge of wastewater, or any other special permit or license granted, when damage is produced to the public hydraulic domain exceeding twenty (20) monthly minimum wages. 8. Actions in a recurrent manner intended to prevent inspections or examinations by the competent Authority, or concealment or falsity of data requested by it. 9. Recurrence in disobeying orders or requirements of officials of the Water Authority, in the exercise of their functions. 10. Other actions or omissions that cause damage to infrastructures or other property of the public hydraulic domain, provided that the damages caused according to their appraisal do not exceed twenty (20) monthly minimum wages. 11. The actions or omissions included in items 1), 2), 3) and 4) of the previous article, when the value of damages exceeds the value indicated in each of them. 12. Actions or omissions contrary to the regime of protection of hydrological reserves or to the regime of ecological flows when they are susceptible to causing serious damage to the environment.

For purposes of the first paragraph of article 97 of the Law, recurrence in any of those provided in article 234 of this Regulation or the same actions or omissions when damages to the property of the public hydraulic domain result from them are considered serious infractions. For purposes of the first paragraph of article 97 of the Law, recurrence in any of those provided in the preceding article or the same actions or omissions when damages to the property of the public hydraulic domain result from them are considered very serious infractions.

For the purposes of this chapter, it shall be the responsibility of the competent entities in environmental matters or of the affected resources to determine the value and severity of the damages. CHAPTER III SANCTIONS

The infractions covered by the preceding Chapter shall be sanctioned with the fine that applies in accordance with the provisions of articles 97 and 98 of the Law; this is understood without prejudice to the declaration of lapse, suspension or revocation of the right of exploitation, as appropriate in accordance with the Law and this Regulation, or of the civil or criminal liability that results from the same facts in application of the current legislation.

The corresponding files may be initiated ex officio or by complaint of third parties and shall be processed in accordance with the Administrative Procedure Law.

For purposes of applying the fines provided for in Article 97 of the Law, it shall be understood that their amount shall be up to the values indicated therein, as a maximum scale so that, if appropriate, they may be imposed in a lesser amount, taking into account the damages generated, the circumstances of the commission of the violation, and the assessment of the greater or lesser risk of affecting the health of persons or protected areas.

The process that the Water Authority shall conduct for the involuntary payment of fines and sanctions for the causes established in the preceding articles shall be carried out in accordance with the Administrative Procedure Law, the Law of Administrative Contentious Jurisdiction, and other applicable laws in the matter.

The economic revenue generated by fines and sanctions that the Water Authority or other State entities at its discretion collect due to non-compliance with the Law and this Regulation shall be incorporated into the National Water Resources Fund. TITLE IX TRANSITIONAL, FINAL AND REPEALING PROVISIONS

Transitional Provision.

A.- The Municipal Corporations interested in assuming the responsibilities derived from Article 67 of the Law and other applicable provisions regarding permits and licenses for the use of water resources shall issue a Municipal Agreement whereby they manifest to the Water Authority their intention and capacity to comply with the aforementioned article. To comply with the foregoing, the Municipalities shall submit a request attaching the municipal agreement issued in this regard and shall submit to an evaluation and accreditation process by the Water Authority, which shall issue a resolution within a period not exceeding sixty (60) days after the request is submitted. While the municipalities have not been accredited in accordance with the provisions of the preceding paragraphs, the Water Authority shall exercise the power to grant the permits and licenses established by the Law and this Regulation.

B.- In accordance with the provisions of Article 101 of the Law, any natural or legal person who, at the time this Regulation enters into force, was using, enjoying, or benefiting in any way from the use of water resources without having a right granted in accordance with prior legislation, shall submit to the Water Authority a declaration containing a complete description of their use of resources in accordance with the means, methods, and procedures determined by the Water Authority, for purposes of regularization and compliance with the Law and this Regulation. Once this Regulation enters into force, the Water Authority shall initiate this process; interested parties shall have one (1) year to regularize their use of resources counted from the date of appointment of the Executive Director of the Water Authority.

C(D).- While the Water Authority is permanently institutionalized, the State Secretary in the Office of Natural Resources and Environment (MI AMBIENTE+) through the General Directorate of Water Resources (DGRH), shall be responsible for executing the policies of the water sector attributed to said Authority by the Law and the provisions that develop it.

Complementarity and Repeal. All provisions of equal or lower rank that oppose what is provided for in this Regulation are hereby repealed.

Final Provision and Effective Date. This Regulation shall enter into force on the day following its publication in the Official Journal "La Gaceta". Done in the city of Tegucigalpa, municipality of the Central District, on the sixteenth day of the month of September in the year two thousand twenty-one. BE COMMUNICATED AND PUBLISHED. CARLOS ALBERTO MADERO ERAZO State Secretary in the Office of General Government Coordination By delegation of the President of the Republic. Executive Agreement No. 043-2020. Published in the Official Journal "La Gaceta" October 7, 2020 LILIAM LIZETH RIVERA State Secretary in the Offices of Natural Resources and Environment