ARIZONA STATE SENATE

RESEARCH STAFF

SAWYER BESSLER

LEGISLATIVE RESEARCH ANALYST

NATURAL RESOURCES COMMITTEE

Telephone: (602) 926-3171

TO:                  MEMBERS OF THE SENATE

NATURAL RESOURCES COMMITTEE

DATE:            March 20, 2025

SUBJECT:      Strike everything amendment to H.B. 2091, relating to assured water supply; certificate; model

Purpose

            An emergency measure that requires the Arizona Department of Water Resources (ADWR) to review the merits of a certificate of assured water supply (certificate) and within 15 days, issue a new written determination of action if prescribed conditions apply and using outlined models as criteria.

Background

            A person who proposes to offer subdivided lands for sale or lease in an active management area (AMA) must apply for and obtain a certificate of assured water supply from the Director of ADWR before presenting the plat for approval to the city, town, or county in which the land is located and before filing with the State Real Estate Commissioner a notice of intention to offer such lands for sale or lease, unless the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply. A city, town or county may only approve a subdivision plat if the subdivider has obtained a certificate from the Director of ADWR or the subdivider has obtained a written commitment of water supply from a designated provider.

An assured water supply means that: 1) sufficient groundwater, surface water or effluent of adequate quality will be continuously available to satisfy the water needs of the proposed use for at least 100 years; 2) the projected groundwater use is consistent with the management plan and achievement of the management goal for the AMA; and 3) the financial capability has been demonstrated to construct the water facilities necessary to make the supply of water available for the proposed use, including a delivery system and any storage facilities or treatment works (A.R.S. § 45-576).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Requires ADWR, on request of an eligible applicant, to review the merits of an application for a certificate and issue a new written determination of action within 15 days if:

a) the application is for a certificate in the Phoenix AMA;

b) the application was submitted on or after January 26, 2021, and by May 31, 2023; and

c) the applicant has not received a certificate, or the application has been denied as of the effective date of this legislation.

2. Requires ADWR to review the determination to grant a certificate using either the 2006-2009 Salt River Valley Regional Model or the 2006 Lower Hassayampa Sub-Basin Groundwater Flow Model and any financial information submitted by the applicant.

3. Requires ADWR, within five days after the effective date of this legislation, to notify all eligible applicants of the ability to have determinations of assured water supply reviewed.

4. Repeals the modified application requirements on January 1, 2026.

5. Requires eligible applicants to request that ADWR review their applications within 90 days after the effective date of this legislation.

6. Becomes effective on signature of the Governor, if the emergency clause is enacted.