ARIZONA HOUSE OF REPRESENTATIVES

SB 1511: Pinal AMA; groundwater; extinguishment credits

PRIME SPONSOR: Senator Griffin, LD 14

BILL STATUS: House Engrossed

Abstract

Relating to the Pinal AMA.

Provisions

1. Requires the ADWR Director to recalculate the amount of groundwater available for use in the Pinal AMA for determining an Assured Water Supply. (Sec. 1)

2. Eliminates the groundwater allowance for a certificate of Assured Water Supply for a proposed subdivision after September 1, 2019, rather than 2025. (Sec. 1)

3. Instructs the ADWR Director to adopt rules by January 1, 2019, that reduces the amount of extinguishment credits given for the retirement of farmland in the Pinal AMA by multiplying the amount of credits remaining by:

a. 75% after the 6^th anniversary;

b. 50% after the 11^th anniversary;

c. 25% after the 16^th anniversary; and

d. 0% after the 21^st anniversary.

i. Declares the rules have an immediate effective date and exempts the ADWR from the rulemaking process except that the ADWR Director must file a notice of exempt rulemaking with the SOS. (Sec. 1)

Current Law

The Pinal AMA management goal is to allow development of non-irrigation uses and to preserve existing agricultural economies for as long as feasible, consistent with the necessity to preserve future water supplies for non-irrigation uses (A.R.S. § 45-562). The owner of an irrigation or non-irrigation grandfathered right may permanently retire their right, in full or part, in exchange for extinguishment credits that may be sold to another party and transferred within the same AMA, with exceptions. Extinguishment credits may be pledged to a subdivision to reduce the volume of groundwater used to meet the assured water supply program requirements.

In the Pinal AMA, the ADWR Director is required to calculate extinguishment credits as outlined in rule (R12-15-725.01), which includes an allocation factor associated with the year the grandfathered right is extinguished. The extinguishment credits given for the retirement of grandfathered rights in the Pinal AMA will be reduced beginning in 2019, phasing down to 0% after 2059 (ADWR).

In the Pinal AMA, the groundwater allowance allocation factor, as specified in rule, for a certificate or designation of Assured Water Supply for a proposed subdivision is as follows: 1) 10 for the fourth management period (2010-2020); 2) 5 for the fifth management period (2020-2025); and 3) 0 thereafter (R12-15-725).

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Fifty-third Legislature                  SB 1511

Second Regular Session                               Version 3: House Engrossed

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