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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
ENACTED
FACT SHEET FOR H.B. 2041/S.B. 1446
groundwater replenishment reserves
Purpose
Modifies calculation of a multi-county water conservation district (district) target replenishment reserve.
Background
Statute authorizes formation of a district if three or more counties petition for its formation for the purposes of: 1) levying an ad valorem tax against taxable property within the district to pay for administrative costs and expenses of the district and to assist in Central Arizona Project (CAP) repayment obligations to the federal government; and 2) contracting with the U.S. Secretary of the Interior for the delivery of CAP water (A.R.S. § 48-3703).
The district is required to complete replenishment obligations within each Active Management Area (AMA) to recharge the aquifer, according to statutory formulas. To pay for replenishment costs and expenses, the district levies a replenishment tax against each municipal provider in the service area for withdrawal and delivery of excess groundwater (A.R.S. Title 48, Chapter 22, Article 4).
In addition to replenishment obligations, the district is responsible for establishing and maintaining a replenishment reserve. Current statute requires a district's reserve target to be 20 percent of the number that is calculated by establishing the projected 100-year replenishment obligation for each AMA, then subtracting, from the AMA's projected 100-year replenishment obligation, the sum of the following volumes derived from water sources that the district plans to meet replenishment obligations for that AMA: 1) the annual volume of each non-declining, long-term municipal and industrial subcontract for Central Arizona Project water, multiplied by 100; 2) the annual volume of water under leases or contracts that can be made available consistent with assured water supply rules, multiplied by the number of years the water is available; 3) the total allowable volume of groundwater the district plans to transport to the AMA in the next 100 years; and 4) the total volume of all other sources of water that are consistent with rules that will not be held by the district under a lease or contract (A.R.S. § 48-3772).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Replaces the calculation of the reserve target with the requirement that the reserve target be determined as 20 percent of the following calculation:
a) for each AMA, add together the projected replenishment obligation for each of the 100 years following submission of the plan of operation; then
b) subtract from the sum of the AMA's projected replenishment obligation over the 100-year period, outlined volumes of water derived from sources identified in the plan for replenishment obligations for the AMA.
2. Replaces the definition of projected one-hundred-year replenishment obligation with the definition of projected replenishment reserve.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action Senate Action
NREW 1/12/21 DP 10-0-0-0 NREW 2/3/21 DP 8-1-0
3rd Read 1/28/21 55-3-2 3rd Read 2/11/21 26-3-1
(H.B. 2041 was substituted for S.B. 1446 on 3rd Read)
Signed by the Governor 2/18/21
Chapter 21
Prepared by Senate Research
February 19, 2021
KN/gs