SB1445 - 492R

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

Section 1. Section 45-543, Arizona Revised Statutes, is amended to read:

START_STATUTE45-543. Transportation between sub-basins or away from an active management area; damages; non-irrigation grandfathered right not associated with retired irrigated land; service area withdrawals; permit; exempt well

A. Groundwater may be transported between sub-basins of an active management area or away from an active management area, subject to payment of damages, if the groundwater is withdrawn:

1. Pursuant to a type 2 non-irrigation grandfathered right, except that groundwater withdrawn pursuant to a type 2 non-irrigation grandfathered right may not be transported away from the Pinal active management area to another initial active management area for the purpose of demonstrating and providing an assured water supply.

2. By a city, town or private water company within its service area and transported within its service area, except that groundwater withdrawn by a city, town or private water company within its service area may not be transported away from the Pinal active management area.

3. By an irrigation district within its service area and transported within its service area.

4. Pursuant to a groundwater withdrawal permit.

5. From an exempt well.

B. Groundwater which that is withdrawn by a city, town or private water company within its service area may be transported pursuant to a delivery contract authorized by section 45-492, subsection C between sub‑basins of an active management area and shall be subject to payment of damages unless the groundwater is withdrawn pursuant to a type 1 non‑irrigation grandfathered right.

C. Groundwater that is withdrawn and transported to an active management area pursuant to article 8.1 of this chapter may be transported between sub-basins of the active management area without payment of damages. END_STATUTE

Sec. 2. Section 45-555, Arizona Revised Statutes, is amended to read:

START_STATUTE45-555. Transportation of groundwater withdrawn in Big Chino sub-basin of the Verde River groundwater basin to initial active management area; exception

A. A city or town that owns land consisting of historically irrigated acres in the Big Chino sub-basin of the Verde River groundwater basin, as designated by order of the director dated June 21, 1984, or a city or town with the consent of the landowner, may withdraw from the land for transportation to an adjacent initial active management area an amount of groundwater determined pursuant to this section. The amount of groundwater that may be withdrawn from the land pursuant to this section shall not exceed:

1. In any year two times the annual transportation allotment for the land determined pursuant to subsection B of this section.

2. For any period of ten consecutive years computed in continuing progressive series beginning in the year transportation of groundwater from the land begins, ten times the annual transportation allotment for the land.

B. The director shall determine the annual transportation allotment as follows:

1. Determine each farm or portion of a farm owned or leased by the city or town in the sub-basin.

2. For each such farm or portion of a farm, determine the historically irrigated acres retired from irrigation. Multiply the sum of those historically irrigated acres by three acre-feet per acre.

C. In making the determination required by subsection B of this section, the director shall rely only on credible documentary evidence submitted by the city or town or otherwise obtained by the department.

D. For the purposes of this section subsections A, B and C:

1. "Documentary evidence" means correspondence, contracts, other agreements, aerial photography, affidavits, receipts or official records.

2. "Farm" means an area of land in the sub-basin that is or was served by a common irrigation water distribution system.

3. "Historically irrigated acres" means acres of land overlying an aquifer that were irrigated with groundwater at any time between January 1, 1975 and January 1, 1990.

E. This article does not apply to the withdrawal and transportation of up to fourteen thousand acre-feet per year of groundwater by the city of Prescott, or the United States in cooperation with the city of Prescott, A city or town in the prescott active MANAGEMENT area may withdraw and transport eight thousand sixty-eight acre-feet per year of groundwater from the Big Chino sub-basin of the Verde River groundwater basin if the groundwater is withdrawn and transported either to the Prescott active management area if the city or town does both of the following:

1. In exchange for or replacement or substitution of supplies Relinquishes a supply of water from the central Arizona project allocated to Indian tribes, cities, towns or private water companies in the Prescott active management area or in the Verde River groundwater basin the city or town.

2. For the purpose of directly or indirectly facilitating the Enters into a federally-approved settlement of the water rights claims of the Yavapai-Prescott an Indian tribe and the Camp Verde Yavapai-Apache Indian community in the Prescott active management area.

F. Notwithstanding the volume limitation in subsection E, in any year in which a city or town that qualifies under subsection E delivers more than two hundred thirty-one acre-feet of water to an Indian tribe for use on its reservation in the Prescott active management area pursuant to a federally‑approved Indian water rights settlement, the city or town may withdraw and transport additional groundwater from the Big Chino sub-basin to the Prescott active management area in an amount equal to the amount by which those deliveries exceed two hundred thirty-one acre-feet.

G. Groundwater that is withdrawn and transported pursuant to subsections E and F may be delivered to and used by any city, town or Indian tribe in the Prescott active management area without regard to whether that entity withdraws and transports the water. END_STATUTE

Sec. 3. Section 45-557, Arizona Revised Statutes, is amended to read:

START_STATUTE45-557. Requirements for transporting groundwater to an initial active management area; exception

A. Except as provided in subsection subsections B and C of this section:

1. The director shall not consider groundwater that is being or will be withdrawn in a groundwater basin or sub-basin pursuant to this article or the Pinal active management area and transported to an initial active management area for purposes of determining or providing an assured water supply pursuant to section 45-576 if the groundwater is being or will be used by a city, town or private water company that was offered but did not sign a central Arizona project water delivery subcontract.

2. A city, town or private water company that has signed a central Arizona project water delivery subcontract may not use groundwater withdrawn in a groundwater basin or sub-basin pursuant to this article or the Pinal active management area and transported to an initial active management area until it has both:

(a) Demonstrated that it has the physical capacity, including the water treatment plant and delivery system, to accept delivery of ninety-five per cent of its central Arizona project water entitlement under its central Arizona project water delivery subcontract.

(b) Accepted delivery of or exchanged eighty per cent or more of the central Arizona project water available to it under its central Arizona project water delivery subcontract in at least one of the three years immediately preceding the year it intends to begin using groundwater transported away from a groundwater basin or sub-basin pursuant to this article or the Pinal active management area.

B. Subsection A of this section does not apply to groundwater withdrawn in the Big Chino sub-basin of the Verde river groundwater basin and transported to an adjoining initial active management area pursuant to section 45-555.

C. Groundwater transported to an adjoining initial active management area pursuant to section 45-555, subsections E and F shall be deemed to be legally available under the rules adopted pursuant to section 45‑576. END_STATUTE

Sec. 4. Section 45-559, Arizona Revised Statutes, is amended to read:

START_STATUTE45-559. Well spacing requirements for withdrawing groundwater for transportation to an active management area

Except as provided in section 45-554, subsection A and except for groundwater withdrawn and transported pursuant to section 45-555, subsections E and F, a person may not use a well constructed after the effective date of this section September 21, 1991 for the purpose of withdrawing groundwater for transportation to an active management area pursuant to article 8.1 of this chapter unless the person wishing to use the well for that purpose applies to the director for approval and the director approves the application. The director shall approve the application if the director determines that the withdrawals for that purpose will not unreasonably increase damage to surrounding land or other water users from the concentration of wells. In making this determination, the director shall follow the criteria for proposed withdrawals in the rules adopted pursuant to section 45-598, subsection A. END_STATUTE