ARIZONA STATE SENATE
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RACHEL CALDWELL |
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LEGISLATIVE RESEARCH ANALYST NATURAL RESOURCES, ENERGY & WATER COMMITTEE Telephone: (602) 926-3171 |
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
NATURAL RESOURCES, ENERGY & WATER COMMITTEE
DATE: February 07, 2022
SUBJECT: Strike everything amendment to S.B. 1171, relating to treated process water; definitions
Purpose
Adds treated process water to the definition of water that cannot reasonably be used directly and outlines rules regarding the storage of treated process water.
Background
A storer is the holder of a water storage permit or a person to whom a water storage permit has been conveyed (A.R.S. § 45-802.01). The Director of the Arizona Department of Water Resources (Director) may issue a water storage permit to store water at a storage facility if the Director determines that: 1) the applicant has a right to use the proposed source of water; 2) the applicant has applied for any water quality permit required by the Arizona Department of Environmental Quality and by federal law; and 3) the water storage will occur at a permitted storage facility (A.R.S. § 45-831.01).
Water that cannot reasonably be used directly is water a storer cannot reasonably put to a direct use, without first storing the water in an aquifer, during the calendar year, which includes: 1) Central Arizona Project (CAP) water in excess of a municipality's withdrawn mined groundwater in the Active Management Area (AMA) during a calendar year; 2) excess deficit groundwater withdrawn in the AMA by a municipality with an assured water supply; 3) CAP water stored in an AMA in excess of withdrawn groundwater during the calendar year for a storer in an AMA that is not a municipality; 4) CAP water stored in an AMA by an agricultural improvement district for use of certain electrical generating facilities; 5) surface water made available by certain dams; 6) AWBA-acquired water delivered through the CAP; 7) water stored in an AMA or groundwater basin that, without the efforts of the storer, would not have reached the AMA or groundwater basin; and 8) effluent.
Statute allows stored water to be credited to a long term storage account if the Director determines that: 1) the stored water cannot be reasonably used directly or, under certain circumstances, was stored in an AMA; 2) the stored water was not recovered on an annual basis; and 3) if the water was stored at a facility within an AMA, the water would not have been naturally recharged within the AMA or, if the water in the AMA was stored at a facility that could add value to a national park, national monument or state park, the water could have been used or disposed of by means other than discharging the effluent into the stream. If these conditions are met, the Director must credit 95 percent of the recoverable amount of stored water to the storer's long-term storage account, with specified exceptions (A.R.S. § 45-852.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Adds treated process water to the definition of water that cannot reasonably be used directly.
2. Exempts treated process water from requirements for municipal providers storing water that cannot reasonably be used directly.
3. Allows treated process water that has been stored pursuant to a water storage permit to be used or exchanged by the storer, or an affiliate or successor of the storer, for non-irrigation use within the same groundwater sub-basin in which the water was stored.
4. Limits the assignment of long-term storage credits created through the storage of treated process water to an affiliate or successor of the treated process water storer.
5. Defines treated process water as groundwater that is used for a non-irrigation use in a facility that manufactures food and beverage products and subsequently is treated at the site of use for storage pursuant to statute.
6. Makes conforming changes.
7. Becomes effective on the general effective date.