ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: NREW DP 9-0-0-0 | 3^rd Read 29-0-1-0 House: NREW DP 8-0-0-2

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SB 1147: water banking; storage credits; subcontractors.

Sponsor:  Senator Kerr, LD 13

Caucus & COW

Overview

Authorizes the Arizona Water Banking Authority (AWBA) to directly distribute long-term storage credits (LTSCs) to the Central Arizona Water Conservation District's (CAWCD) municipal and industrial subcontractors during supply disruptions.

History

LTSCs

LTSCs are earned when permitted facilities in an active management area (AMA) store water underground through direct or indirect recharge. This stored water is eligible for credits when it:

1) Is stored underground for at least one year;

2) Cannot reasonably be used directly, with certain exceptions for the Pinal AMA related to implementing the Drought Contingency Plan; and

3) Would not have been naturally recharged within the AMA.

A holder can use these credits in several ways, including pledging them towards an assured water supply, meeting replenishment obligations, or leasing or selling them subject to certain limitations. Additionally, the holder can withdraw the stored water from the same AMA at a later date provided certain statutory criteria are met (A.R.S. §§ 45-834.01, 45-851.01, 45-852.01 and 45-854.01).

AWBA

The AWBA was created in 1996 to increase Arizona's use of its Colorado River entitlement and develop LTSCs for the state. This agency stores unused Colorado River water underground to be used in times of shortage to firm water supplies in Arizona (A.R.S. § 45-2401). Firming means using recovered water to supplement reductions in another water supply, such as available Central Arizona Project water.

Statute establishes several rules for the accounting system that the AWBA maintains for the LTSCs it accrues and purchases. Specifically, one rule allows the AWBA to distribute LTSCs accrued or purchased with Arizona Water Banking Fund monies only for the county in which those monies were collected. The AWBA distributes these LTSCs to CAWCD to meet the demands of its municipal and industrial subcontractors when the CAWCD's Colorado River water diversions have been or will be disrupted by shortages or issues in the Central Arizona Project's operations (A.R.S. § 45-2457).

Provisions

1. Authorizes the AWBA to directly distribute long-term storage credits to the CAWCD's municipal and industrial subcontractors to meet their demands when the district's Colorado River diversions are disrupted by shortages or issues in the Central Arizona Project's operations. (Sec. 1)

2. Prohibits the distributed LTSCs from being sold. (Sec. 1)

3. Declares the subcontractor receiving the LTSCs is responsible for all fees assessed by the AWBA or the ADWR Director for distributing these credits and all recovery costs. (Sec. 1)

4. Makes a technical change. (Sec. 1)

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8.                   SB 1147

9. Initials PAB           Page 0 Caucus & COW

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