ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
ENACTED
FACT SHEET FOR H.B. 2078/S.B. 1021
groundwater; waterlogged area exemption; date
Purpose
Extends prescribed exemptions through December 31, 2034, for irrigation water duties and groundwater-related requirements for a specified area within the Phoenix Active Management Area (AMA). Requires the Director of the Arizona Department of Water Resources (ADWR) to submit a report on extending the exemptions by November 15, 2031.
Background
Current statute provides an exemption from irrigation or intermediate water duties and groundwater withdrawal fees until December 31, 2024, in the exempted part of the Phoenix AMA, commonly known as the Buckeye Waterlogged Area, which was delineated on a map that was filed with the Secretary of State on May 12, 1988. A person is required to pay a $0.25 per acre Water Duty Exemption Fee annually, unless the person owns 10 or fewer irrigation acres within the area (A.R.S. § 45-411.01).
Pursuant to the statutory reporting requirement, the Director of ADWR published the 2019 Buckeye Waterlogged Area Review and Recommendation, which recommended that: 1) the current exemptions be extended for 10 years, through December 31, 2034; 2) the Legislature require ADWR to submit a subsequent report by November 17, 2031, regarding extending the exemptions; and 3) the Legislature require ADWR to consult with the three irrigation districts and all municipalities within the exempted area on the scope of the hydrologic review (ADWR).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Extends, to December 31, 2034, the termination date for the exemptions in the specified area of the Phoenix AMA from:
a) irrigation and intermediate water duties required by the Phoenix AMA management plans for a person with an irrigation grandfathered right;
b) applicable Phoenix AMA management plan conservation requirements for the distribution of groundwater for the Arlington Canal Company, the Buckeye Water Conservation and Drainage District and the St. John's Irrigation District, or their successors;
c) the Groundwater Withdrawal Fee and the Water Quality Assurance Fee for groundwater withdrawn for irrigation use on irrigation acres; and
d) the Groundwater Withdrawal Fee and the Water Quality Assurance Fee for groundwater withdrawn and used in the area for non-irrigation use if the groundwater user pays an annual $500 fee.
2. Extends the annual $0.25 per-acre Water Duty Exemption Fee for each irrigation acre in the exempted area.
3. Continues the requirement that the Director of ADWR, when determining compliance with statutory conservation requirements, account for groundwater withdrawn by a Drainage Water Withdrawal permittee as surface water if the groundwater is withdrawn before January 1, 2035, within the exempted area of the Phoenix AMA and is used at a turf-related facility or riparian habitat within the area.
4. Requires the Director of ADWR to submit, by November 15, 2031, a recommendation regarding extending the exemptions.
5. Becomes effective on the general effective date.
House Action Senate Action
NREW 1/12/21 DP 10-0-0-0 NREW 1/13/21 DP 8-1-0
3rd Read 1/28/21 59-0-1 3rd Read 1/28/21 27-2-1
(H.B. 2078 was substituted for S.B. 1021 on 3rd Read)
Signed by the Governor 2/5/21
Chapter 4
Prepared by Senate Research
February 12, 2021
KN/gs