ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DPA 6-4-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2758: McMullen Valley; eligible entities; groundwater

Sponsor: Representative Griffin, LD 19

House Engrossed

Overview

Outlines the eligible entities, locations and actions regarding transportation of groundwater withdrawn from the McMullen Valley groundwater basin.

History

Unless specifically authorized, groundwater that is withdrawn in a basin or sub-basin located outside an initial active management area (AMA) may not be transported to an initial AMA. Current law identifies four groundwater basins and sub-basins from which groundwater can be withdrawn and transported to an initial AMA. Those basins are:

1)   McMullen Valley;

2)   Butler Valley;

3)   Harquahala INA;

4)   San Pedro; and

5)   Big Chino sub-basin of the Verde River groundwater basin.

Transportation of groundwater from these basins is subject to limitations as outlined in statute (A.R.S. § 45-551).

The McMullen Valley groundwater basin is approximately 720 square miles predominately located in La Paz County with portions of the basin in Maricopa and Yavapai Counties. It is bounded by the Harcuvar Mountains to the North, Harquahala and Vulture Mountains to the South and the Little Harquahala and Granite Wash Mountains to the West (ADWR).

Provisions

1.   Expands the projects eligible for grant monies from a county water improvement financial assistance program to include water hauling. (Sec. 1)

2.   Modifies the list of eligible uses of grant monies to include the acquisition or installation of water storage tanks for storing hauled water. (Sec. 1)

3.   Adds an exception that a county BOS may use general county monies for grants for certain water improvements programs. (Sec. 1)

4.   Modifies the information required for an affidavit of disclosure for selling certain parcels of land. (Sec. 2)

5.   Repeals statute relating to the transportation of groundwater withdrawn in McMullen Valley basin to an AMA. (Sec. 3)

6.   Allows an eligible entity to withdraw groundwater from the McMullen Valley basin for transportation to an eligible location for prescribed purposes if:

a.   the groundwater is withdrawn:

i. from a depth to 1,200 feet at the site or sites of the proposed withdrawals; and

ii.   at a rate that, when added to the existing rate of withdrawals in the area, does not cause the groundwater table at the site to decline more than an average of 10 feet per year during the 100 year evaluation period;

b.   the amount is either:

i. per acre of the historically irrigated acres not to exceed prescribed limits; or

ii.   established by the Director under certain conditions;

c. all costs associated with withdrawing, transporting and delivering groundwater are collected from customers by a public service corporation;

d.   the eligible entity has demonstrated compliance with prescribed hydrological study criteria;

e. the eligible entity has installed approved water measuring devices or other similarly reliable methods to determine volume of withdrawn groundwater; and

f. within 30 days of withdrawal the eligible entity submits a monthly report to ADWR containing certain information. (Sec. 4)

7.   Prescribes eligible entities to transport groundwater away from the McMullen Valley Groundwater basin. (Sec. 4)

8.   Requires rules adopted relating to the transportation of groundwater from the Harquahala INA apply to this act. (Sec. 4)

9.   Outlines the locations eligible to receive groundwater transported away from the McMullen Valley groundwater basin. (Sec. 4)

10.  Requires any local use of groundwater by an eligible entity that sells or leases groundwater to count toward the entity's maximum per acre withdrawal limit.
(Sec. 4)

11.  Prescribes annual reporting requirements of ADWR. (Sec. 4)

12.  Clarifies a person is not prohibited from storing and recovering water that is not groundwater and that the stored groundwater does not count toward withdrawal limits. (Sec. 4)

13.  Defines historically irrigated acres. (Sec. 4)

14.  Requires the ADWR Director to post the provided table of groundwater transportation fees on ADWR's website. (Sec. 5)

15.  Instructs the ADWR Director to annually update the table of fees with changes in the GDP price deflator and fee adjustments determined pursuant to existing statute. (Sec. 5)

16.  Allows a county, that establishes a water improvements program, to allocate a portion of collected groundwater transportation fees to the county water improvements program for qualified owners of residential property who reside within the related groundwater basin or subbasin. (Sec. 5)

17.  Expands the definition of waterworks to include standpipes. (Sec. 7)

18.  Includes a domestic water delivery system, that is in a subsequent AMA or basin from which groundwater may be transported, for delivering water through water hauling as a valid reason for establishing an improvement district. (Sec. 8)

19.  Adds wells and standpipes as waterworks the board of directors of an improvement district can manage. (Sec. 9)

20.  Stipulates that an improvement district formed in an AMA for the purpose of delivering water through water hauling may exercise the power of eminent domain only for acquiring a site in the subsequent AMA for the construction and access to a single well and a standpipe for water hauling. (Sec. 9)

21.  Makes technical and conforming changes. (Sec. 2, 5-9)

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24.  ---------- DOCUMENT FOOTER ---------

25.  Initials CW                      HB 2758

26.  3/25/2026  Page 0 House Engrossed

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28.  ---------- DOCUMENT FOOTER ---------