HB 2055
Initials PAB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: NREW DP 7-5-0-0
HB 2055: Harquahala non-expansion area; groundwater transportation
Sponsor: Representative Griffin, LD 14
House Engrossed
Overview
Allows a public service corporation to transport groundwater from the Harquahala irrigation non-
expansion area (INA) to an active management area (AMA) if it holds a certificate of convenience
and necessity for water service in an AMA and owns legally irrigable land in the INA.
History
Transporting Groundwater to AMAs
The Harquahala INA is one of four groundwater basins and sub-basins from which groundwater
can be withdrawn and transported to AMAs. Transportation from these basins and sub-basins is
subject to several general limitations:
• A municipality or private water company with a Central Arizona Project water delivery
subcontract must use most of its entitlement before using transported groundwater (A.R.S.
§ 45-557);
• Only certain wells can be used to withdraw groundwater for transportation (A.R.S. § 45-
559);
• Any property from which groundwater is withdrawn must remain free of noxious weeds
and blowing dust (A.R.S. § 45-558);
• An entity transporting groundwater must pay annual transportation fees to the affected
county. If the entity is a political subdivision, it must also make contributions in lieu of
property taxes to the affected county (A.R.S. §§ 9-431 et seq., 42-15251 et seq. and 45-
556); and
• Depending on the infrastructure utilized, transportation may be subject to the National
Environmental Policy Act process (42 U.S.C. § 4332 et seq.).
There are additional limitations for transporting groundwater from the Harquahala INA. Only the
state and its political subdivisions can withdraw and transport groundwater from legally irrigable
lands. This groundwater can be withdrawn up to a depth of 1,000 feet at a rate that (when
combined with current withdrawals) does not cause the groundwater declines at the sites by an
average of more than 10 feet annually during a 100-year period. There are also limitations on how
much can be withdrawn per acre over certain time periods (A.R.S. § 45-554(B)). However, more
groundwater can be withdrawn under two scenarios:
• The Arizona Department of Water Resources either determines withdrawals will not
unreasonably increase damage to surrounding lands and other water users or that other
withdrawing entities will mitigate the damage; and
• When the state or its political subdivisions own over 80% of legally irrigable lands,
groundwater can be withdrawn from greater depths subject to certain limitations (A.R.S. §
45-554(C)).
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2055
Initials PAB Page 2 House Engrossed
The groundwater can be used by the state or political subdivision that transported it or by the
Arizona Water Banking Authority to fulfill the state’s obligations under the Arizona Water
Settlements Act (A.R.S. § 45-554(B)).
Public Service Corporations
The Arizona Corporation Commission (ACC) regulates public service corporations, which include
non-municipal utilities that provide water for irrigation, fire protection and other public uses. The
ACC sets these corporation's rates and charges and issues certificates of convenience and
necessity that grant a corporation the authority to exclusively provide a service within a certain
geographic area (Constitution of Arizona, Article 15 §§ 2 and 3 and A.R.S. § 40-281).
Provisions
1. Allows a public service corporation to transport groundwater from the Harquahala INA to an
AMA if it holds a certificate of convenience and necessity for water service in an AMA and
owns legally irrigable land in the INA. (Sec. 1)
2. Adds the following criteria for withdrawing and transporting groundwater from the Harquahala
INA to an AMA:
a) The transported groundwater must be used by the transporting entity's customers within
five years of when it is transported and cannot sold or otherwise conveyed for use other
than by the transporting entity.
b) When the groundwater is transported by a public service corporation, all costs associated
with withdrawing, transporting, and delivering the groundwater must be collected from the
customers of the corporation's water distribution system where the transported
groundwater is used. (Sec. 1)
3. Requires ADWR to adopt rules to evaluate compliance with the requirements for using
transported groundwater by the transporting entity's customers. (Sec. 1)
4. Exempts ADWR from rulemaking requirements for one year after this act's effective date.
(Sec. 1)
5. Makes technical and conforming changes. (Sec. 1)