REFERENCE TITLE: ecological water; program; fund

 

 

 

 

State of Arizona

Senate

Fifty-third Legislature

Second Regular Session

2018

 

 

SB 1475

 

Introduced by

Senator Dalessandro

 

 

AN ACT

 

amending sections 45-101, 45-105, 45-151 and 45-172, Arizona Revised Statutes; amending title 45, chapter 1, Arizona Revised Statutes, by adding article 16; relating to water management.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 45-101, Arizona Revised Statutes, is amended to read:

START_STATUTE45-101.  Definitions

In this title, unless the context otherwise requires:

1.  "Appropriator" means the person or persons initiating or perfecting the right to use appropriable water based on state law, or the person's successor or successors in interest.

2.  "Department" means the department of water resources.

3.  "Director" means the director of water resources, who is also the director of the department.

4.  "Ecological water" means water sufficient to sustain freshwater ecosystems and the wildlife habitat and human livelihoods and well‑being that depend on those ecosystems.

4.  5.  "Effluent" means water that has been collected in a sanitary sewer for subsequent treatment in a facility that is regulated pursuant to title 49, chapter 2.  Such water remains effluent until it acquires the characteristics of groundwater or surface water.

5.  6.  "Groundwater" means water under the surface of the earth regardless of the geologic structure in which it is standing or moving.  Groundwater does not include water flowing in underground streams with ascertainable beds and banks.

6.  7.  "Interstate stream" means any stream constituting or flowing along the exterior boundaries of this state, and any tributary originating in another state or foreign country and flowing into or through this state.

7.  8.  "Riparian area" means a geographically delineated area with distinct resource values that is characterized by deep-rooted plant species that depend on having roots in the water table or its capillary zone and that occurs within or adjacent to a natural perennial or intermittent stream channel or within or adjacent to a lake, pond or marsh bed maintained primarily by natural water sources.  Riparian area does not include areas in or adjacent to ephemeral stream channels, artificially created stockponds, man-made storage reservoirs constructed primarily for conservation or regulatory storage, municipal and industrial ponds or man‑made water transportation, distribution, off-stream storage and collection systems.

8.  9.  "Sanitary sewer" means any pipe or other enclosed conduit that carries, among other substances, any water-carried wastes from the human body from residences, commercial buildings, industrial plants or institutions.

9.  10.  "Surface water" means the waters of all sources, flowing in streams, canyons, ravines or other natural channels, or in definite underground channels, whether perennial or intermittent, floodwater, wastewater or surplus water, and of lakes, ponds and springs on the surface.  For the purposes of administering this title, surface water is deemed to include central Arizona project water. END_STATUTE

Sec. 2.  Section 45-105, Arizona Revised Statutes, is amended to read:

START_STATUTE45-105.  Powers and duties of director

A.  The director may:

1.  Formulate plans and develop programs for the practical and economical development, management, conservation and use of surface water, groundwater and the watersheds in this state, including the management of water quantity and quality.

2.  Investigate works, plans or proposals pertaining to surface water and groundwater, including management of watersheds, and acquire, preserve, publish and disseminate related information the director deems advisable.

3.  Collect and investigate information on and prepare and devise means and plans for the development, conservation and utilization of all waterways, watersheds, surface water, groundwater and groundwater basins in this state and of all related matters and subjects, including irrigation, drainage, water quality maintenance, regulation of flow, diversion of running streams adapted for development in cooperating with the United States or by this state independently, flood control, utilization of water power, prevention of soil waste and storage, conservation and development of water for every useful purpose.

4.  Measure, survey and investigate the water resources of this state and their potential development and cooperate and contract with agencies of the United States for such purposes.

5.  Acquire, hold and dispose of property, including land, rights‑of‑way, water and water rights, as necessary or convenient for the performance of the groundwater and water quality management functions of the department.

6.  Acquire, other than by condemnation, construct, improve, maintain and operate early warning systems for flood control purposes and works for the recovery, storage, treatment and delivery of water.

7.  Accept grants, gifts or donations of money or other property from any source, which may be used for any purpose consistent with this title.  All property acquired by the director is public property and is subject to the same tax exemptions, rights and privileges granted to municipalities, public agencies and other public entities.

8.  Enter into an interagency contract or agreement with any public agency pursuant to title 11, chapter 7, article 3 and contract, act jointly or cooperate with any person to carry out the purposes of this title.

9.  Prosecute and defend all rights, claims and privileges of this state respecting interstate streams.

10.  Initiate and participate in conferences, conventions or hearings, including meetings of the Arizona water resources advisory board, congressional hearings, court hearings or hearings of other competent judicial or quasi‑judicial departments, agencies or organizations, and negotiate and cooperate with agencies of the United States or of any state or government and represent this state concerning matters within the department's jurisdiction.

11.  Apply for and hold permits and licenses from the United States or any agency of the United States for reservoirs, dam sites and rights‑of‑way.

12.  Receive and review all reports, proposed contracts and agreements from and with the United States or any agencies, other states or governments or their representatives and recommend to the governor and the legislature action to be taken on such reports, proposed contracts and agreements.  The director shall take action on such reports, if authorized by law, and review and coordinate the preparation of formal comments of this state on both the preliminary and final reports relating to water resource development of the United States army corps of engineers, the United States secretary of the interior and the United States secretary of agriculture, as provided for in the flood control act of 1944 (58 Stat. 887; 33 United States Code section 701‑1).

13.  Contract with any person for imported water or for the acquisition of water rights or rights to withdraw, divert or use surface water or groundwater as necessary for the performance of the groundwater management functions of the director prescribed by chapter 2 of this title.  If water becomes available under any contract executed under this paragraph, the director may contract with any person for its delivery or exchange for any other water available.

14.  Recommend to the administrative heads of agencies, boards and commissions of this state, and political subdivisions of this state, rules to promote and protect the rights and interests of this state and its inhabitants in any matter relating to the surface water and groundwater in this state.

15.  Conduct feasibility studies and remedial investigations relating to groundwater quality and enter into contracts and cooperative agreements under section 104 of the comprehensive environmental response, compensation, and liability act of 1980 (P.L. 96‑510) to conduct such studies and investigations.

16.  Dispose informally by stipulation, agreed settlement, consent order or alternative means of dispute resolution, including arbitration, if the parties and director agree, or by default of any case in which a hearing before the director is required or allowed by law.

17.  Cooperate and coordinate with the appropriate governmental entities in Mexico regarding water planning in areas near the border between Mexico and Arizona and for the exchange of relevant hydrological information.

B.  The director shall:

1.  Exercise and perform all powers and duties vested in or imposed on the department and adopt and issue rules necessary to carry out the purposes of this title.

2.  Administer all laws relating to groundwater, as provided in this title.

3.  Be responsible for the supervision and control of reservoirs and dams of this state and, when deemed necessary, conduct investigations to determine whether the existing or anticipated condition of any dam or reservoir in this state is or may become a menace to life and property.

4.  Coordinate and confer with and may contract with:

(a)  The Arizona power authority, the game and fish commission, the state land department, the Arizona outdoor recreation coordinating commission, the Arizona commerce authority, the department of health services, active management area water authorities or districts and political subdivisions of this state with respect to matters within their jurisdiction relating to surface water and groundwater and the development of state water plans.

(b)  The department of environmental quality with respect to title 49, chapter 2 for its assistance in the development of state water plans.

(c)  The department of environmental quality regarding water plans, water resource planning, water management, wells, water rights and permits, and other appropriate provisions of this title pertaining to remedial investigations, feasibility studies, site prioritization, selection of remedies and implementation of the water quality assurance revolving fund program pursuant to title 49, chapter 2, article 5.

(d)  The department of environmental quality regarding coordination of databases that are necessary for activities conducted pursuant to title 49, chapter 2, article 5.

5.  Cooperate with the Arizona power authority in the performance of the duties and functions of the authority.

6.  Maintain a permanent public depository for existing and future records of stream flow, groundwater levels and water quality and other data relating to surface water and groundwater.

7.  Maintain a public docket of all matters before the department that may be subject to judicial review pursuant to this title.

8.  Investigate and take appropriate action on any complaints alleging withdrawals, diversions, impoundments or uses of surface water or groundwater that may violate this title or the rules adopted pursuant to this title.

9.  Report to and consult with the Arizona water resources advisory board at regular intervals.

10.  9.  Adopt an official seal for the authentication of records, orders, rules and other official documents and actions.

11.  10.  Provide staff support to the Arizona water protection fund commission established pursuant to chapter 12 of this title.

12.  11.  Exercise and perform all powers and duties invested in the chairperson of the Arizona water banking authority commission as prescribed by chapter 14 of this title.

13.  12.  Provide staff support to the Arizona water banking authority established pursuant to chapter 14 of this title.

14.  13.  In the year following each regular general election, present information to the committees with jurisdiction over water issues in the house of representatives and the senate.  A written report is not required but the presentation shall include information concerning the following:

(a)  The current status of the water supply in this state and any likely changes in that status.

(b)  Issues of regional and local drought effects, short‑term and long‑term drought management efforts and the adequacy of drought preparation throughout the state.

(c)  The status of current water conservation programs in this state.

(d)  The current state of each active management area and the level of progress toward management goals in each active management area.

(e)  Issues affecting management of the Colorado river and the reliability of this state's two million eight hundred thousand acre‑foot allocation of Colorado river water, including the status of water supplies in and issues related to the Colorado river basin states and Mexico.

(f)  The status of any pending or likely litigation regarding surface water adjudications or other water related litigation and the potential impacts on this state's water supplies.

(g)  The status of Indian water rights settlements and related negotiations that affect this state.

(h)  The status and health of this state's ecological water.

(h)  (i)  Other matters related to the reliability of this state's water supplies, the responsibilities of the department and the adequacy of the department's and other entities' resources to meet this state's water management needs.

14.  Consider the impact of all actions taken by the department, including the issuance of any permit of approval, on ecological water. END_STATUTE

Sec. 3.  Section 45-151, Arizona Revised Statutes, is amended to read:

START_STATUTE45-151.  Right of appropriation; permitted uses; water rights in stockponds; federal lands

A.  Any person, the this state of Arizona or a political subdivision thereof of this state may appropriate unappropriated water for domestic, municipal, ecological water, irrigation, stock watering, water power, recreation, wildlife, including fish, nonrecoverable water storage pursuant to section 45‑833.01 or mining uses, for his personal use or for delivery to consumers.  The person, the this state of Arizona or a political subdivision thereof of this state first appropriating the water shall have the better right.

B.  To effect the beneficial use, the person, the this state of Arizona or a political subdivision thereof of this state appropriating the water may construct and maintain reservoirs, storage facilities pursuant to chapter 3.1 of this title, dams, canals, ditches, flumes and other necessary waterways.

C.  A water right in a stockpond, certified pursuant to article 10 of this chapter, shall be recognized as if such water had been appropriated pursuant to this article.

D.  The validity of and the right to exercise a water right obtained in accordance with state law shall not be diminished, impaired or otherwise affected because other water is or may be available to the appropriator from an alternative right or source to satisfy the same use.

E.  The right to water appropriated on lands owned by the United States shall be held by the person who first effects the beneficial use of the water appropriated and by the person's successor.  This subsection shall does not be construed to preclude the United States from being the holder of a right if the United States first effects the beneficial use.

F.  A water source that is located on land owned by the United States and that has been or may be appropriated under state law may be beneficially used on any land whether or not owned by the United States. END_STATUTE

Sec. 4.  Section 45-172, Arizona Revised Statutes, is amended to read:

START_STATUTE45-172.  Transfer of water rights; application; limitations; required consent

A.  A water right may be severed from the land to which it is appurtenant or from the site of its use if for other than irrigation purposes and with the consent and approval of the owner of such right may be transferred for use for irrigation of agricultural lands or for municipal, ecological water, stock watering, power and mining purposes and to the state or its political subdivisions for use for recreation and wildlife purposes, including fish, without losing priority theretofore established, subject to the following limitations and conditions:

1.  Except as otherwise provided in this section no such severance or transfer shall be made unless approved by the director, and the approval of the director shall prescribe the conditions of the approval.

2.  Vested or existing rights to the use of water shall not be affected, infringed upon nor on or interfered with, and in no event shall the water diverted or used after the transfer of such rights exceed the vested rights existing at the time of such severance and transfer, and the director shall by order so define and limit the amount of water to be diverted or used annually subsequent to such transfer.

3.  The water rights sought to be transferred shall have been lawfully perfected under the laws of the territory or the state of Arizona and shall not have thereafter been forfeited or abandoned.

4.  No such severance or transfer of water rights shall be permitted or allowed from lands within the exterior boundaries of any irrigation district, agricultural improvement district or water users' association without first having obtained the written consent and approval of such irrigation district, agricultural improvement district or water users' association.

5.  No right to the use of water on or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within an irrigation district, agricultural improvement district or water users' association shall be severed or transferred without the consent of the governing body of such irrigation district, agricultural improvement district or water users' association.  All proposed applications for the severance and transfer of a right to use water of or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district, agricultural improvement district or water users' association shall be submitted to the governing body of such irrigation district, agricultural improvement district or water users' association prior to before the filing of such application with the director.  Within forty‑five days after the receipt of the application such governing body shall reject or approve the proposed application.  Failure of such governing body to approve or reject the proposed application within forty-five days after receipt shall constitute approval of the proposed application by such governing body.  No application for the severance or transfer of a right to the use of water of or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district, agricultural improvement district or water users' association shall be accepted for filing by the director unless accompanied by the written consent of the governing body of such irrigation district, agricultural improvement district or water users' association to the proposed application or by satisfactory evidence that such governing body failed to either accept or reject the proposed application within forty-five days after receipt by such governing body.

6.  A severance and transfer of an irrigation water right appurtenant to lands within the boundaries of an irrigation district to other lands within the boundaries of the same irrigation district for agricultural use may be accomplished by the exclusion of lands to which a water right is appurtenant from within the boundaries of an irrigation district, and the inclusion in lieu of other lands within the boundaries of such irrigation district.  Such severance and transfer of a water right shall require the consent of only the irrigation district within which the affected lands are situated and of the owners of the lands affected by the severance and transfer.  No proceedings before nor or approval by the director shall be required to accomplish such severance and transfer.

7.  An application for severance and transfer of a water right shall be filed with the director.  The director shall give notice of the application by publication once a week for three successive weeks in a newspaper of general circulation in the county or counties in which the watershed or drainage area is located.  The notice shall state that any interested person may file written objections to the proposed severance and transfer with the director within thirty days after the last publication of the notice.  In appropriate cases, including cases in which an objection has been filed, an administrative hearing may be held before the director's decision on the application if the director deems a hearing necessary.

B.  Section 45‑114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. END_STATUTE

Sec. 5.  Title 45, chapter 1, Arizona Revised Statutes, is amended by adding article 16, to read:

ARTICLE 16.  ECOLOGICAL WATER STEWARDSHIP PROGRAM

START_STATUTE45-361.  Ecological water stewardship program; report

A.  The ecological water stewardship program is established.  The director shall adopt rules pursuant to title 41, chapter 6 to carry out this article.

B.  The director shall establish a set of standard measures, using the best available science, to define ecological water needs in this state.  The standard measures established by the director shall include criteria for examining the relationship between ecological water and groundwater and surface water in this state.

C.  To carry out the purposes of this article, the director shall:

1.  Take all reasonable steps necessary to monitor, maintain, improve and restore the surface water systems of this state, including surveying and performing all necessary hydrographic, hydrologic, geologic, climatic and ecologic investigations necessary to understand the quantity, timing and quality of water flow and storage of groundwater and surface water required to maintain, improve and restore ecological water in those systems.

2.  On reaching a determination of the ecological water needs for each watershed or subwatershed, publish a preliminary report that includes a determination of the ecological water and monitoring methods necessary to monitor, maintain, improve and restore the freshwater ecosystems of the watershed or subwatershed.

3.  Post on the department's website all preliminary reports described in paragraph 2 of this subsection, copies of all notices required by section 41-1022 and all proposed rulemakings.

4.  Notify by first class mail, fax or e‑mail each person who has made a timely request to the department for notification of one or more preliminary reports described in paragraph 2 of this subsection or for notification of all proposed rulemakings under section 41-1022.

5.  Hold an open meeting and take public comment in a location near the watershed or subwatershed that is the subject of the preliminary report not sooner than sixty days after the department provides notification under paragraphs 3 and 4 of this subsection.

6.  Respond in writing to all public comments, whether received at the hearing or otherwise, that are received by a date announced by the director in the initial notice.

D.  Within sixty days after the deadline for filing comments for any preliminary report, the director shall post the final report on the department's website and submit the report to the speaker of the house of representatives, the president of the senate and the governor and shall provide a copy of this report to the secretary of state. END_STATUTE

START_STATUTE45-362.  Determination of insufficient water to maintain, improve and restore ecological water

A.  If the director determines in any watershed or subwatershed that there is insufficient water to maintain, improve and restore ecological water, the director shall both:

1.  Take all steps necessary to appropriate unappropriated water sufficient to maintain the ecological water requirements of this state's waters on behalf of this state.

2.  Purchase, lease or accept by gift or assignment existing water rights pursuant to section 45-172 and transfer all acquired rights for beneficial use supporting ecological water pursuant to section 45-172.

B.  The director may use all monies that are appropriated by the legislature for the purchase of existing water rights and monies available in the ecological water stewardship fund established by section 45-363 for the purposes of this section. END_STATUTE

START_STATUTE45-363.  Ecological water stewardship fund

The ecological water stewardship fund is established for the purposes of supporting the acquisition of existing water rights for ecological water purposes.  The fund consists of monies appropriated by the legislature and grants, gifts, devises and donations from any public or private source.  Monies in the fund are continuously appropriated for the purposes of this section.  Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.  The department shall administer the fund and may use not more than five percent of the monies deposited in the fund in a fiscal year for administrative purposes under this section.  On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.  Monies in the fund are subject to state auditing procedures. END_STATUTE

START_STATUTE45-364.  Program termination

The program established by this article ends on July 1, 2028 pursuant to section 41-3102. END_STATUTE

Sec. 6.  Survey of status of waters of this state

The director of water resources shall:

1.  Publish not later than December 31, 2020 a preliminary survey of the status of the waters of this state, including an initial estimate of the amount of additional water or other actions necessary to meet the requirements of ecological water for those water systems.

2.  Provide for notice and comment of the preliminary survey pursuant to section 45-361, subsection C, Arizona Revised Statutes, as added by this act.

3.  Post the final survey on the department of water resources' website for a period of not less than six months.