ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	House: NREW DPA 7-2-0-1

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HB 2200: groundwater transportation; Harquahala non-expansion area

Sponsor: Representative Dunn, LD 25

House Engrossed

Overview

Adds a public service corporation to the list of eligible entities authorized to transport groundwater from the Harquahala Irrigation Non-expansion Area (INA) to an initial active management area (AMA). 

History

Unless specifically authorized, groundwater that is withdrawn in a basin or sub-basin located outside an initial AMA may not be transported to an initial AMA. Current law identifies four groundwater basins and sub-basins from which groundwater can be withdrawn and transported to an initial AMA. Those basins are: 1) McMullen Valley; 2) Butler Valley; 3) Harquahala INA; and 4) Big Chino sub-basin of the Verde River groundwater basin.  Transportation of groundwater from these basins is subject to limitations, including:

1) a municipal or private water company with Central Arizona Project water delivery subcontracts must use most of its entitlements before using transported water;

2) any property from which groundwater is withdrawn must remain free of noxious weeds;

3) only certain wells can be used to withdraw groundwater for transportation;

4) an entity transporting groundwater must pay annual transportation fees to the affected county; and

5) depending on the infrastructure utilized, transportation may be subject to the National Environmental Policy Act process (A.R.S. §§ 9-431 et seq., 42-15251 et seq., 45-551, 45-556, 45-557, 45-558, 45-559, 42 U.S.C. § 4332 et seq.).

In the Harquahala INA, only Arizona and its political subdivisions can withdraw and transport groundwater from legally irrigable lands.  The groundwater can be withdrawn up to a depth of 1,000 feet at a rate that, when combined with current withdrawals, does not cause groundwater declines at the site by more than 10 feet annually during a 100-year period. There are limitations on how much can be withdrawn per acre over specified time periods (A.R.S. § 45-554).

The Arizona Corporation Commission (ACC) regulates public service corporations, including non-municipal utilities that provide water for irrigation, fire protection and other public uses. The ACC issues certificates of convenience and necessity that authorize the corporation to provide a service in a certain geographical area (Constitution of Arizona, Article 15 §§ 2 and 3, A.R.S. § 40-281).

Provisions

Public Service Corporations

1. Adds public service corporations to the list of eligible entities that may transport groundwater from the Harquahala INA to an initial AMA. (Sec. 1)

2. Requires the public service corporation to be: 1) regulated by the ACC; 2) hold a certificate of convenience and necessity for water service in an initial AMA; and 3) own land in the INA that is eligible to be irrigated. (Sec. 1)

3. Requires all costs associated with withdrawing, transporting, and delivering groundwater that is transported away from the Harquahala INA by a public service corporation to be collected from the customers of the corporation's water district where the transported groundwater is used. (Sec. 1)

Entities Eligible to Transport Groundwater

4. Expands the criteria for an eligible entity to withdraw and transport groundwater from the Harquahala INA by requiring:

a) compliance with the assured water supply program and hydrological studies;

b) installation of water measuring devices to determine the volume of groundwater withdrawn and transported from the Harquahala INA; and

c) monthly reports to ADWR containing:

i) information on the volume of groundwater withdrawn and transported from the Harquahala INA; and

ii) the end use or destination of the transported groundwater. (Sec. 1)

Arizona Department of Water Resources (ADWR)

5. Requires the ADWR Director to adopt administrative rules to implement provisions relating to transportation of groundwater from the Harquahala INA and include reporting requirements. (Sec. 1)

6. Exempts ADWR from rulemaking requirements for one year after the effective date of this legislation. (Sec. 2)

7. Requires an annual report from ADWR that lists the amount of groundwater withdrawn and transported from the Harquahala INA for the preceding year,  in total and by each entity, and to include a delineation of the end use or destination of all groundwater transported. (Sec. 1)

8. Requires ADWR to submit the report annually, by July 1, to the Governor, President of the Senate and Speaker of the House of Representatives and provide a copy to the Secretary of State. (Sec. 1)

Miscellaneous

9. Makes technical changes. (Sec. 1)

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                  HB 2200

Initials EB/KK    Page 0 House Engrossed

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