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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
subsequent AMAs; groundwater portability
Purpose
Allows an owner of an irrigation grandfathered right (IGFR), in a subsequent active management area (AMA), to use, sell, transfer or lease the IGFR and the water duty that was associated with those acres. Allows a person that receives a sold, leased or transferred associated water duty to use the associated water duty anywhere in the subsequent AMA for irrigation use and to further convey the associated water duty.
Background
In an AMA, a
person who was legally withdrawing and using groundwater as of the date of the
designation of the AMA or who owns land legally entitled to be irrigated with
groundwater has the right to withdraw or receive and use groundwater as
determined by the Director of the Arizona Department of Water Resources (ADWR).
There are three categories of grandfathered rights as follows: 1)
non-irrigation grandfathered rights associated with retired irrigated land;
2) non-irrigation grandfathered rights not associated with retired irrigated
land; and 3) IGFR. In an AMA, a person who owns land which was legally
irrigated in whole or in part with groundwater at any time during the five
years preceding the date of the notice of the initiation of designation
procedures or the call for the election for subsequent AMA, which is capable of
being irrigated and which has not been retired from irrigation for a
non-irrigation use has the right to use groundwater for the irrigation of such
land. The owner of an IGFR may convey the right only with the land to which the
right is appurtenant (A.R.S. §§ 45-462;
45-465;
and 45-472).
The Director of ADWR may designate an area which is not included within an initial AMA and a subsequent AMA if the Director of ADWR determines that: 1) active management practices are necessary to preserve the existing supply of groundwater for future needs; 2) land subsidence or fissuring is endangering property or potential groundwater storage capacity; or 3) use of groundwater is resulting in actual or threatened water quality degradation. A groundwater basin that is not included within an initial AMA may be designated an AMA on petition by 10 percent of the registered voters residing within the boundaries of the proposed AMA which triggers a subsequent election held pursuant to the general election laws of Arizona (A.R.S. §§ 45-412 and 45-415). Currently, the Douglas AMA, which was designated on December 1, 2022, after an election and the Willcox AMA, which was designated on January 8, 2025, by the Director of ADWR, are the only two subsequent AMAs in Arizona (ADWR: Douglas AMA and Willcox AMA).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an owner of an IGFR, in a subsequent AMA, to use, sell, transfer or lease the IGFR and the water duty that was associated with those acres.
2. Allows the owner of an IGFR to choose not to irrigate a set portion of lands attached to the IGFR and sell, transfer or lease the associated water duty of the acres that are not irrigated to another irrigator in the subsequent AMA.
3. Allows the original owner of the associated water duty to also retain the associated water duty and use the full volume of the associated water duty that is attached to the acres that the owner does not irrigate anywhere on the farm unit.
4. Allows a person that receives a sold, leased or transferred associated water duty to use the associated water duty anywhere in the subsequent AMA for irrigation use and to further convey the associated water duty.
5. Requires an owner of an IGFR that proposes to use, sell, transfer or lease the IGFR and the associated water duty to notify the Director of ADWR on a form prescribed and furnished by the Director of ADWR.
6. Requires the prescribed form to include the acres that are not subject to irrigation.
7. Requires the owner of an IGFR, if the owner retains the associated water duty for irrigation of the farm unit, to note what acres are subject to irrigation with the associated water duty.
8. Requires the outlined form, if the owner or the holder conveys the associated water duty to another person, to note the type of conveyance and volume of groundwater that the recipient of the conveyance may use.
9. Requires the outlined form, if the conveyance is for a lease, to note the terms and duration of the lease.
10. Requires all forms to note the intended acres where an owner or holder will irrigate with the associated water duty.
11. Requires the Director of ADWR to adopt rules, including for the implementation of flexibility accounts or similar accounting methods, to implement the outlined requirements.
12. Becomes effective on the general effective date.
Prepared by Senate Research
February 13, 2025
SB/slp