HB2095 - 552R - Senate Fact Sheet

Purpose

Allows specified entities to transport, to La Paz County, water from the Butler Valley Groundwater Basin (Butler Basin), McMullen Valley Groundwater Basin (McMullen Basin) and Harquahala Irrigation Non-expansion Area (Harquahala INA) and outlines transportation requirements.

Background

Statute allows: 1) groundwater to be withdrawn from land owned by the state or a political subdivision in the Butler Basin for transportation to an initial active management area (AMA); and 2) title to Butler Basin land owned by the state or a political subdivision and from which groundwater is withdrawn for transportation to an initial AMA to be sold, exchanged or otherwise conveyed only to the state or another political subdivision (A.R.S. § 45-553).

A city that purchased land in the McMullen Basin before January 1, 1988, may transport groundwater from the land to an adjacent initial AMA for use by any city, town, private water company or groundwater replenishment district in an amount not to exceed: 1) in any year, two times the annual transportation allotment for land determined by the Director of the Arizona Department of Water Resources (ADWR); 2) for any period of 10 consecutive years computed in continuing progressive series beginning in the year transportation of groundwater from the land begins, 10 times the annual transportation allotment for the land determined by the Director of ADWR (Director); or 3) 6,000,000 acre-feet in total (A.R.S. § 45-552).

The state or a political subdivision that owns land eligible to be irrigated in the Harquahala INA may withdraw groundwater from the land for transportation to an initial AMA for its own use or use by the Arizona Water Banking Authority (AWBA) in an amount: 1) per acre of the eligible land, not to exceed 6 acre-feet per year or 30 acre-feet per 10 consecutive years; or 2) established, after consideration of potential damage to residents of surrounding land and other water users in the Harquahala INA, by the Director. The groundwater must be withdrawn from a depth of up to 1,000 feet or at a rate that, when added to the existing rate of withdrawals in the area, does not cause the groundwater table to decline more than an average of 10 feet per year during the 100 year evaluation period (A.R.S. § 45-554).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Allows an entity to withdraw groundwater from land it owns in the Butler Basin, portion of the McMullen Basin or portion of the Harquahala INA in La Paz County for direct or indirect transportation and use within a groundwater basin or sub-basin in La Paz County if:

a) the entity is:

i. a political subdivision of the state located in La Paz County; or

ii. a public service corporation regulated by the Arizona Corporation Commission that holds a certificate of convenience and necessity for water service in La Paz County;

b) the groundwater is used by customers of an eligible entity within five years after transportation;

c) the groundwater is not sold or otherwise conveyed for use other than by an eligible entity; and

d) for a public service corporation, all costs associated with withdrawing, transporting and delivering groundwater are collected from the customers of the water distribution system of the public service corporation where the transported groundwater is used.

2. Subjects the transportation of water away from the Harquahala INA to La Paz County to existing statutory Harquahala INA withdrawal requirements.

3. Subjects the transportation of water away from the McMullen Basin to La Paz County to existing statutory McMullen Basin withdrawal requirements.

4. Specifies that the amount of groundwater that may be transported away from the McMullen Basin is capped at a total of 6,000,000 acre-feet for the combination of water transported to
La Paz County and to an initial AMA, rather than for each method of transportation.

5. Requires all persons that own or control property in La Paz County from which groundwater is or will be transported from McMullen Basin, Butler Basin or Harquahala INA to keep the property free of noxious weeds, Russian thistles and blowing dust that creates a threat to health or safety.

6. Subjects groundwater transportation from the Butler Basin, McMullen Basin and Harquahala INA to La Paz County to the liability statute regarding the payment of damages for transportation of groundwater.

7. Requires the Director to prescribe rules for groundwater transportation from the Butler Basin, McMullen Basin and Harquahala INA to La Paz County.

8. Exempts ADWR from the Administrative Procedures Act for one year.

9. Defines terms.

10. Makes conforming changes.

11. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Adopted the strike-everything amendment.

2. Specifies that:

a) an entity may withdraw groundwater for transportation to La Paz County from the portions of the McMullen Basin and the Harquahala INA located in La Paz County, rather than any part of the McMullen Basin or Harquahala INA;

b) the 6,000,000 acre-feet cap on the amount of groundwater that may be transported away from the McMullen Basin applies to the total amount of water withdrawn from the McMullen Basin for transportation to La Paz County or an initial AMA, rather than to each type of transportation;

c) the limitation on customers using the groundwater transported to La Paz County within five years applies to customers of an eligible public service corporation or political subdivision in La Paz County; and

d) the exception for the allowance of groundwater transportation to La Paz County applies only to the prohibition against groundwater transportation away from a groundwater basin and not all statute governing the transportation of groundwater outside of an AMA.

3. Makes technical changes.

Senate Action

NREW 3/16/22 DPA/SE 5-4-0