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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature Second Regular Session |
Senate: NREW DPA 4-3-0-0 | 3rd Read 16-12-2-0
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SB 1221: basin management areas; appropriation
Sponsor: Senator Kerr, LD 25
House Engrossed
Overview
An emergency measure that establishes a process to designate a basin management area (BMA) in the Gila Bend, Hualapai Valley or Wilcox Groundwater Basin.
History
The Groundwater Management Code (Code) was enacted in 1980 and established the statutory framework to regulate and control the use of groundwater. As part of the management framework, the Code designated active management areas (AMAs) and irrigation non-expansion areas (INAs) where specific regulations regarding withdrawal and use of groundwater apply (A.R.S. §§ 45-411, 45-411.03, 45-431, 45-554)(ADWR).
Laws 2023, Chapter 133, Section 97 appropriated $5,000,000 from the state General Fund to ADWR in FY 2024 for statewide water resources planning.
Provisions
Initiation Procedures of a BMA
1.
Allows a BMA to be initiated in
the Gila Bend, Hualapai Valley or Wilcox Groundwater Basin, by:
a) the designation of the Arizona Department of Water Resources (ADWR) Director and the ADWR Director's findings; or
b) by petition to the ADWR Director if signed by at least 10% of the registered voters who reside within the boundaries of the groundwater. (Sec. 1)
2. States that if a groundwater basin is located in two or more counties, at least 10% of registered voters who reside within the boundaries of the groundwater basin must sign the petition. (Sec. 1)
3. Requires the petition form to be substantially similar to an initiative petition and the applicant for the petition to comply with statutory petition requirements. (Sec. 1)
4. Specifies that the duties required by the Secretary of State must be performed by the county recorders of the counties in which the registered voters of the groundwater basin reside. (Sec. 1)
5. Prohibits a petition from being accepted more than 180 days after the date of submission of the application for petition. (Sec. 1)
6. Requires, on request of a county recorder, the ADWR Director to transmit to a county recorder any factual data concerning the boundaries of the groundwater basin that can aid the county recorder in determining which registered voters are county residents and eligible voters of the groundwater basin. (Sec. 1)
7. Requires the transmitted data to include a map of the residences in the groundwater basin. (Sec. 1)
8. Requires the respective county BOS to include a question on the next general election ballot for all registered voters who reside in the groundwater basin. (Sec. 1)
9. Requires, within 30 days after the general election results are certified, if a majority of eligible voters voted in favor of the formation of a BMA, the ADWR Director to:
a) make and file written findings with respect to matters considered during the public meetings; and
b) file a true map of the BMA in the office of the county recorder of the county or counties in which the BMA is established. (Sec. 1)
Meeting Requirements
10. Requires the ADWR Director, if the ADWR Director designates a basin as a BMA independent of a general election, to hold a series of public meetings as follows:
a) the first and second meetings must be held at a location in the county in which the major portion of the proposed BMA is located no more than 60 days after the first publication of the notice of the meeting; and
b) any other public meetings the ADWR Director deems necessary. (Sec. 1)
11. Requires the ADWR Director to:
a) give reasonable notice of each meeting;
b) post the notice on the ADWR and county websites; and
c) include a legal description and map of all lands to be included in the BMA. (Sec. 1)
12. Outlines data and information that must be presented by the ADWR Director at the first, second and third meetings. (Sec. 1)
13. Allows any person to appear at the meetings and submit oral or documentary information regarding the proposed action or modeling completed by ADWR. (Sec. 1)
14. Requires the ADWR Director, within 30 days after the final public meeting, to:
a) declare a BMA established; and
b) file a true map of the BMA in the office of the county recorder of the county or counties in which the BMA is located. (Sec. 1)
Certificate of Groundwater Rights
15. Requires, within 15 months after a BMA is established, the ADWR Director to grant each water user who applies for a certificate of groundwater rights a certificate that entitles the user to the annual allocated amount of water as follows:
a) for municipal, industrial or residential users, a certificate of groundwater rights consistent with the maximum amount of groundwater withdrawn and used, in acre feet, in any one year in the five preceding years before the formation of the BMA; and
b) for irrigation users, a certificate of groundwater rights consistent with the average use of the irrigation groundwater user in acre-feet over the 10 years preceding the date of the formation of the BMA. (Sec. 1)
16. Requires the ADWR Director to exclude from the calculation of the average amount of water used annually by an irrigation user in the 10 years preceding the designation of the BMA any years during which the irrigation user did not use. (Sec. 1)
17. Requires ADWR to increase the amount of water entitled to a user via a certificate of groundwater rights if the user has made substantial capital investment in the 12 months before the petition is circulated for a BMA designation. (Sec. 1)
18. Requires, for planned residential or mixed-use developments, a landowner to be granted a certificate of groundwater rights equal to the projected water demand of the development at build out. (Sec. 1)
19. Prohibits new groundwater pumping from occurring in a BMA, beginning after the petition is approved, except that a user with a certificate of groundwater rights can retire or diminish the groundwater user's withdrawal from an existing well and withdraw an equal amount of groundwater from a replacement well or existing well for the same use consistent with the groundwater user's certificated groundwater right on the same property or may do any of the following as long as there remains a net benefit of at least 10 percent to the aquifer:
a) withdraw intentionally recharged water; or
b) transfer a certificate of groundwater rights and the associated groundwater as prescribed. (Sec. 1)
20. Prohibits ADWR from requiring a groundwater user to meter any wells located in a BMA or reporting the user's groundwater use beyond the outlined requirements. (Sec. 1)
21. Requires a groundwater user to annually report to ADWR an estimate of groundwater use based on pumping capacity and the power usage of the user's groundwater pumping. (Sec. 1)
22. Outlines what must be included in an application for a certificate of groundwater rights for a municipal, industrial or agricultural groundwater use. (Sec. 1)
23. Requires ADWR to issue a receipt of water conservation to a groundwater user. (Sec. 1)
Flexibility Accounts
24. Allows a person entitled to use groundwater pursuant to certificate of groundwater right to:
a) use groundwater in excess of the amount allowed by the right in a determined amount; or
b) use less than the amount allowed by the right in one accounting period and use the remaining amount allowed by the right in a succeeding accounting period. (Sec. 1)
25. Requires the ADWR Director to establish rules or the maintenance of a flexibility account for each certificate of groundwater right in a BMA. (Sec. 1)
26. Requires, if a person who is entitled to use groundwater pursuant a certificate of groundwater right uses solely groundwater during any accounting period, the ADWR Director to:
a) debit the account if the amount of groundwater used is greater than the amount of the annual allocation of the groundwater granted; or
b) credit the account if the amount of groundwater used is less than the amount of the annual allocation of groundwater granted. (Sec. 1)
27. Specifies conditions by which groundwater use must be registered as a credit or debit for a person who holds a certificate of groundwater right and uses a combination of surface water, effluent or groundwater. (Sec. 1)
28. States that the maximum excess amount of groundwater that a person can use must be equal to 25% of the annual allocation of water granted pursuant to a certificate of groundwater right. (Sec. 1)
29. Declares that a person is in violation of flexibility account rules if the flexibility account for the certificate of groundwater right is in arrears at any time in the excess of this amount. (Sec. 1)
30. Allows groundwater equal to the credit balance in the flexibility account to be used at any time. (Sec. 1)
31. Requires, if a certificate of groundwater right is conveyed in whole or in part, each acre-foot conveyed to carry with it a proportional share of any debits or credits in the flexibility account for the right. (Sec. 1)
32. Allows each person who owns a certificate of groundwater right that has a registered credit balance to its flexibility account to convey or sell all or a portion of the credit balance to any person who owns another certificate of groundwater right in the same groundwater basin. (Sec. 1)
33. Requires the ADWR Director to be notified of the sale or conveyance of a credit balance within 30 days of the sale or conveyance. (Sec. 1)
34. Specifies that a sale or conveyance of a credit balance is only effective if the ADWR Director is notified. (Sec. 1).
35. Requires the ADWR Director, after receiving the notice, to register a deduction of the credit amount conveyed or sold from the conveyor's or seller's flexibility account balance and the corresponding addition to the conveyer's or purchaser's flexibility account balance. (Sec. 1)
36. Specifies the deduction and addition to the flexibility account balances are effective as of the date of the sale or conveyance. (Sec. 1)
37. Allows a person whose certificate of groundwater right has registered a credit balance to its flexibility account to extinguish all or a portion of a credit balance and establishes notification requirements. (Sec. 1)
38. States that the extinguishment of all or part of a credit balance is effective when the ADWR Director receives a notification. (Sec. 1)
39. Requires the ADWR Director to register a deduction of the credit amount extinguished from the flexibility account balance of the person who extinguished the credit balance. (Sec. 1)
Use of Municipal and Industrial Groundwater Rights
40. Allows the owner of a municipal and industrial groundwater right to:
a) use groundwater withdrawn for any nonagricultural use at any location in the BMA subject to the provisions governing transportation of groundwater;
b) withdraw groundwater only from wells outlined on the user's certificate of groundwater rights;
c) request the ADWR Director to use a revised certificate of groundwater rights to reflect new or additional points of withdrawal or type of nonagricultural use; and
d) lease all or part of the municipal or industrial groundwater right. (Sec. 1)
41. Allows the lessee to use groundwater withdrawn pursuant to the groundwater right if it is leased. (Sec. 1)
Use of Agricultural Groundwater Right
42. Allows the owner of an agricultural certificate of groundwater right to:
a) use groundwater withdrawn for any agricultural use on any land described in the certificate of groundwater rights; and
b) require the ADWR Director to issue a revised certificate of groundwater rights to reflect new or additional acres of land within the BMA on which the owner wishes to use groundwater for agricultural purposes. (Sec. 1)
43. States the right to use groundwater pursuant to the agricultural groundwater right is appurtenant to the acres of land described in the agricultural certificate of groundwater rights. (Sec. 1)
44. Specifies an agricultural groundwater right is owned by the owner of the land to which the groundwater right is appurtenant and may be leased for agricultural use with the land to which it is appurtenant. (Sec. 1)
45. Allows the owner or lessee of an agricultural certificate of groundwater rights to withdraw or receive groundwater from any location in the BMA subject to the provisions governing transportation of groundwater. (Sec. 1)
Conversion of Groundwater Rights
46. Allows an owner of an agricultural certificate of groundwater rights to convert all or part of the groundwater right to a municipal and industrial use. (Sec. )
47. Allows a municipal or industrial groundwater user to withdraw and use a converted agricultural groundwater right annually for municipal and industrial use as follows:
a) if the municipal and industrial use is on land described in the agricultural certificate of groundwater rights, 85% of the amount of the agricultural groundwater right allocation; and
b) if the municipal and industrial use is on land other than land described in the agricultural certificate of groundwater rights, 85% of the amount of the agricultural groundwater right allocation. (Sec. 1)
48. Requires a person who proposed to convert an agricultural groundwater right to notify the ADWR Director of the conversion and specified information. (Sec. 1)
49. Requires the ADWR Director, after receiving notice of a conversion of an agricultural groundwater right, to issue to the owner a revised agricultural certificate of groundwater rights for the remaining agricultural use, if any, and a new municipal and industrial certificate of groundwater rights. (Sec. 1)
Conveyance of Certificate of Groundwater Rights
50. Allows the owner of a municipal and industrial certificate of groundwater rights to sell or convey all or part of the groundwater right for any nonagricultural use in the same groundwater basin. (Sec. 1)
51. Requires, within 30 days after a conveyance of a groundwater right, the conveyer and conveyee of the municipal and industrial groundwater right to notify the ADWR Director of the conveyance. (Sec. 1)
52. Outlines what must be included in the notice. (Sec. 1)
53. Requires the ADWR Director, after receiving notice of a conveyance of a municipal and industrial groundwater right, to issue to the conveyor a revised municipal and industrial certificate of groundwater rights for the portion of the groundwater right retained by the conveyor, if any, and issue to the conveyee a new municipal and industrial certificate of groundwater rights for the portion of the groundwater right conveyed. (Sec. 1)
54. Requires, if the owner of an agricultural certificate of groundwater rights conveys land described in the groundwater user's certificate, each acre conveyed to carry with it a proportional share of the annual allocation of groundwater granted. (Sec. 1)
55. Requires the conveyor and the conveyee, within 30 days after the conveyance of land described in an agricultural certificate of groundwater rights, to each notify the ADWR Director of the conveyance and outlines what must be included in the notice. (Sec. 1)
56. Requires the ADWR Director, after receiving notice of a sale or conveyance of an agricultural certificate of groundwater right, to issue to the conveyor a revised certificate for the portion of the groundwater right retained by the conveyor, if any, and issue to the conveyee a new agricultural certificate of groundwater rights for the portion of the groundwater right conveyed. (Sec. 1)
57. Allows the owner of an agricultural certificate of groundwater rights to sell or convey all or part of the right for agricultural use on other land in the same groundwater basin. (Sec. 1)
58. Requires the conveyor of an agricultural certificate of groundwater rights and the conveyee, within 30 days after a conveyance, to notify the ADWR Director of the conveyance and outlines what must be included in the notice. (Sec. 1)
59. Requires the ADWR Director, after receiving notice of a sale or conveyance of an agricultural certificate of groundwater rights for use on other agricultural land, to issue to the conveyor a revised certificate of groundwater rights for the portion of the right retained by the conveyor, if any, and issue to the conveyee a new agricultural certificate of groundwater rights for the portion of the right conveyed. (Sec. 1)
Retirement of a Certificate of Groundwater Right
60. Allows an owner of certificate of groundwater rights to retire all or part of the groundwater rights. (Sec. 1)
61. Requires a person who proposes to retire all or part of a certificate of groundwater rights to notify the ADWR Director and outlines what must be included in the notice. (Sec. 1)
62. Requires the ADWR Director, after receiving notice of retirement of all or part of a certificate of groundwater rights, to issue to the person who retires the groundwater right a revised certificate of groundwater rights for the portion of the groundwater right not retired, if any. (Sec. 1)
BMA Council
63. Requires an BMA Council to be established in each BMA consisting of five members as follows as outlined. (Sec. 1)
64. Outlines procedures for replacing BMA Council members. (Sec. 1)
65. Specifies that BMA Council members are not eligible to receive compensation but are eligible for reimbursement. (Sec. 1)
66. Requires a BMA Council to:
a) select a chairperson;
b) meet as often as the chairperson deems necessary;
c) hold at least two public meetings in the basin;
d) submit a proposed management plan to the chairpersons of the House of Representatives (House) and Senate Natural Resources, Energy and Water (NREW) Committees;
e) attend a joint legislative hearing to evaluate a management plan on request of the chairperson of the House or Senate NREW Committees;
f) apply for and distribute grants for water conservation, water augmentation or water system upgrades with the BMA;
g) submit a plan for water management to the ADWR Director;
h) provide education to water users and the public on efficient water management and conservation. (Sec. 1)
67. Requires a water management plan to be consistent with the management goals of a BMA, be legally and economically feasible and be approved by a majority of the members of the BMA Council. (Sec. 1)
68. Prohibits a water management plan from:
a) requiring more than a 2% annual reduction in a water user's original allotment granted pursuant to a certificated groundwater right; or
b) prohibiting a groundwater user from withdrawing intentionally created groundwater recharge, including effluent with a 10% net benefit to the aquifer. (Sec. 1)
69. Instructs a water management plan to require:
a) any annual reduction in water use to be equal in percentage for all users with a certificated groundwater right; and
b) reduce annual water use by 10% of the annual allocation of water that the user is entitled to pursuant to a certificate of groundwater rights within 10 years after the formation of the BMA. (Sec. 1)
70. Prohibits a water management plan from requiring any water user to achieve total water use reductions in increments greater than 2% per year. (Sec. 1)
71. Outlines requirements for the ADWR Director relating to economic studies and hydrologic analyses. (Sec. 1)
72. Requires the BMA Council, 24 years after the formation of a BMA and every 15 years thereafter, to set a schedule for the proceeding 10-year period of mandatory reductions in annual allocations of groundwater pursuant to certificates of groundwater rights in an amount between zero and 15%. (Sec. 1)
73. Prohibits mandatory reductions in annual allocations from increasing or decreasing by more than 1% a year. (Sec. 1)
74. Prohibits a BMA Council from reducing the annual allocation of groundwater awarded to an irrigation user pursuant to a certificate of groundwater rights if the irrigation suer farms less than 120 acres and uses less than two and a half acre feet per year. (Sec. 1)
75. Specifies that a BMA Council can only have those powers given to it by statute. (Sec. 1)
76. Prohibits the ADWR Director from taking any action in a BMA not recommended by the BMA Council. (Sec. 1)
77. Outlines goals of a BMA and a BMA Council that may be determined by the BMA Council. (Sec. 1)
Miscellaneous
78. Prohibits the ADWR Director or voters of a BMA or an active BMA from designating a BMA or an active BMA as an AMA or INA. (Sec. 1)
79. Specifies that if a BMA is established in an area that was previously designated as an INA, the ADWR Director must declare all basins or subbasins in the INA as a BMA and the INA and any regulations adopted pursuant to the designation as an INA terminate. (Sec. 1)
80. States that the BMA and active BMA provisions do not preempt the transportation of groundwater to AMAs. (Sec. 1)
81. Defines land subsidence and substantial capital investment. (Sec. 1)
82. Modifies the definition of eligible entity to include a basin management council. (Sec. 2)
83. Contains an emergency clause. (Sec. 3)
84.
85.
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87. SB 1221
88. Initials EB Page 0 House Engrossed
89.
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