Assigned to NREW FOR
COMMITTEE
Assigned to NREW FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
Pinal AMA; groundwater; extinguishment credits
Purpose
Requires, in the Pinal Active Management Area (AMA), the Director of the Arizona Department of Water Resources (DWR) to adopt rules for extinguishment credits by January 2019, and to recalculate the amount of groundwater available for assured water supply determinations.
Background
Grandfathered Rights and Extinguishment Credits
The 1980 Groundwater Management Act (Act) established AMAs and a comprehensive management framework to address groundwater rights and groundwater overdraft. Under current law, the right to pump groundwater in an AMA is generally determined by historic use, which requires the land to have been irrigated with groundwater anytime between 1975 and 1980. These rights are known as grandfathered rights and fall into three categories: 1) non-irrigation grandfathered rights associated with retired irrigated land; 2) non-irrigation grandfathered rights not associated with retired irrigated land; and 3) irrigation grandfathered rights (A.R.S. § 45-462).
An extinguishment credit is created when an existing grandfathered groundwater right is extinguished pursuant to a process established by DWR in administrative rule. The credit reflects an amount of groundwater that may be withdrawn and pledged to a certificate or designation of assured water supply. The amount of the credit is based on a formula outlined in administrative rule for each AMA and provides for a gradual reduction of the amount of the credit based on the year of extinguishment (Arizona Administrative Code R12-15-723 and R12-15-725.01).
Assured Water Supply
Current law requires a developer to obtain a determination from the state regarding the sufficiency of water supplies before a subdivision can be marketed. The Director of DWR is required to evaluate the water supplies that will be used for a new subdivision based on the development’s projected needs, the source of the water and the method of delivery. If the subdivision is inside an AMA, lots may not be sold unless the Director of DWR determines that an assured water supply exists.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the Director of DWR to adopt rules for calculating extinguishment credits in the Pinal AMA by January 1, 2019.
2. Exempts adoption of specified rules from the standard administrative rulemaking process and provides the rules with an immediate effective date.
3. Requires the Director of DWR to recalculate the amount of groundwater that is available for use in the Pinal AMA for purposes of determining an assured water supply.
4. Makes conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 7, 2018
KK/lat