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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
groundwater replenishment; member lands; areas
Purpose
Allows a municipal provider that submits an application for a new designation of assured water supply in the Phoenix Active Management Area (AMA) to elect for parcels of member land to retain a replenishment obligation.
Background
For each active AMA in which member lands or member service areas are or may be located, the water conservation district (district) must replenish groundwater in an amount equal to the groundwater replenishment obligation for that AMA. If a parcel of member land is included in the service area of a municipal provider that is not a member service area but that has been designated as having an assured water supply, the parcel of member land has no parcel replenishment obligation, and the district has no groundwater replenishment obligation attributable to that parcel of member land for as long as the designation remains in effect. Additionally, if a parcel of member land is included in the service area of a municipal provider that is a member service area and that has been designated as having an assured water supply, the parcel of member land has no further parcel replenishment obligation (A.R.S. § 48-3771).
For each AMA in which member lands or members service areas are or may be located, a groundwater replenishment obligation is the total of the cumulative parcel replenishment obligation of all parcels of member land in the AMA for a particular calendar year plus the cumulative service area replenishment obligation of all members service areas in that AMA for a particular calendar year. A parcel replenishment obligation, with respect to any particular parcel of member land, is an amount of groundwater that is equal to the amount of groundwater delivered to the parcel of member land in a calendar year multiplied by the percentage that the excess groundwater of the applicable member land for that year bears to the total amount of groundwater delivered to the applicable member land during that year (A.R.S. § 48-3701).
Statute outlines the qualifications of member land, including the: 1) real property must be located in an AMA; 2) real property is not in a member service area or in a groundwater replenishment district; 3) real property is not a water district member land or a parcel of water district member land; 4) conditions regarding achieving the AMA management goal are satisfied; and 5) owner of the real property, or other person or entity, such as a property owners' or homeowners' association, if the person or entity has proper authority, records a declaration that has been approved by the district against the real property in the office records of the county as outlined (A.R.S. § 48-3774).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows, after the general effective date, a municipal provider that submits an application for a new designation of assured water supply pursuant to adopted rules in the Phoenix AMA that relies on a member service area agreement to elect for all parcels of member land in the municipal service area to retain a replenishment obligation.
2. Requires the district, for parcels of member land that retain a replenishment obligation, to replenish groundwater in an amount equal to the obligation applicable to that parcel of member land.
3. Requires the municipal provider, if a municipal provider's service area contains member lands and the municipal provider applies to become designated as having an assured water supply, to notify the district whether it chooses to assume the member lands' replenishment obligation under the municipal provider's designation member service agreement.
4.
States the outlined regulations do not authorize new member lands to
be enrolled within the municipal provider's service area after the service area
is designated as having an assured water supply.
5. Requires the designation of assured water supply and member service area agreement for the municipal provider, if a municipal provider chooses to allow parcels of member land within its service area to retain the parcel replenishment obligation, to provide that the parcels of member land retain the parcel replenishment obligation for the lesser of either:
a) 10 years from the date of commencement of the first term of the designation; or
b) the first term of the designation.
6. Requires the municipal provider, on the lesser of the outlined conditions, to begin to assume an escalating percentage of the groundwater delivered to parcels of member land and any associated parcel replenishment obligation and provide the information to the water conservation district in the annual reports.
7. Allows the municipal provider, in the first year of reporting, to assume at least 10 percent of the total reported groundwater delivered to each parcel of member land.
8. Requires the municipal provider, in each successive year, to assume at least an additional 10 percent so that within 10 years, all reported groundwater delivered, and parcel replenishment obligation are assumed by the municipal provider and the parcels of member land have no further parcel replenishment obligation.
9. Requires the municipal provider, after a municipal provider assumes all groundwater deliveries from all parcels of member land, to cease submitting reports to the district for parcels of member land while the municipal provider's designation of assured water supply remains valid.
10. Allows, if a municipal provider assumes the parcel replenishment obligation of member lands pursuant to a designation of assured water supply that relies on a member service area agreement, any groundwater allowance or extinguishment credits, as provided in rules adopted by the Arizona Department of Water Resources (ADWR), associated with the member lands assumed by the municipal provider be used as follows:
a) if the parcel replenishment obligation and reported groundwater delivered to the member lands are entirely assumed on the initial designation of an assured water supply, the remaining extinguishment credits or groundwater allowance associated with the member lands may be used by the municipal provider as authorized pursuant to a member service area agreement; or
b) if the parcel replenishment obligation and reported groundwater delivered to the member lands are assumed in stages as provided, the municipal provider may use the groundwater allowance and extinguishment credits for the member lands in the same manner as authorized in the applicable agreement and notice of municipal reporting requirements if the groundwater is being reported as delivered to member lands, and thereafter, any remaining extinguishment credits or groundwater allowance may be used by the municipal provider as authorized under the member service area agreement.
11. Requires ADWR to amend adopted rules for the incorporation of extinguishment credits and groundwater associated with member land in a designation of assured water supply consistent with outlined regulation.
12. Becomes effective on the general effective date.
Amendments Adopted by the Committee of the Whole
1. Adds the ability for a municipal provider that submits an application for a new designation of assured water supply in the Phoenix AMA that relied on a member service area agreement to elect for all parcels of member land in the municipal service area to retain a replenishment obligation.
2. Adds the requirement for the water conservation district, for a parcel of member land that retains a replenishment obligation, to replenish groundwater in an amount equal to the obligation applicable to that parcel of member land.
3. Adds the requirement for the designation of assured water supply and member service area agreement for the municipal provider, if a municipal provider chooses to allow parcels of member land within its service area to retain the parcel replenishment obligation, to provide that the parcels of member land retain the parcel replenishment obligation for the lesser of the two outlined timelines.
4. Adds the requirement for the municipal provider, on the lesser of the outlined conditions, to begin to assume an escalating percentage of the groundwater delivered to parcels of member land and any associated parcel replenishment obligation and provide the information to the water conservation district in the annual reports.
5. Adds the ability for the municipal provider, in the first year of reporting, to assume at least 10 percent of the total reported groundwater delivered to each parcel of member land.
6. Adds the requirement for the municipal provider, in each successive year, to assume at least an additional 10 percent so that within 10 years, all reported groundwater delivered, and parcel replenishment obligation are assumed by the municipal provider and the parcels of member land have no further parcel replenishment obligation.
7. Adds the requirement for the municipal provider, after a municipal provider assumes all groundwater deliveries from all parcels of member land, to cease submitting reports to the district for parcels of member land while the municipal provider's designation of assured water supply remains valid.
8. Adds the ability for any groundwater allowance or extinguishment credits associated with the member lands assumed by the municipal provider be used as outlined.
9. Adds the requirement for ADWR to amend rules relating to the outlined regulations.
Senate Action
NREW 2/8/24 DPA 4-3-0
Prepared by Senate Research
February 29, 2024
RA/slp