Arizona 2022 2022 Regular Session

Arizona House Bill HB2055 Comm Sub / Analysis

Filed 03/07/2022

                    Assigned to NREW 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Fifth Legislature, Second Regular Session 
 
FACT SHEET FOR H.B. 2055 
 
Harquahala non-expansion area; groundwater transportation 
Purpose 
Allows a public service corporation to withdraw groundwater from the Harquahala 
Irrigation Non-expansion Area (Harquahala INA) for transportation to an initial Active 
Management Area (AMA) if specified requirements are met. 
Background 
Statute allows the state or a political subdivision that owns land eligible to be irrigated in 
the Harquahala INA to withdraw groundwater from the land for transportation to an initial AMA 
for its own use or use by the Arizona Water Banking Authority (AWBA) in an amount: 1) per acre 
of the eligible land, not to exceed 6 acre-feet per year or 30 acre-feet per 10 consecutive years; or 
2) established, after consideration of potential damage to residents of surrounding land and other 
water users in the Harquahala INA, by the Director of the Arizona Department of Water Resources 
(ADWR). The groundwater must be withdrawn from a depth to 1,000 feet or at a rate that, when 
added to the existing rate of withdrawals in the area, does not cause the groundwater table to 
decline more than an average of 10 feet per year during the 100 year evaluation period  
(A.R.S. § 45-554). 
Land irrigated any time during the five years preceding the Harquahala INA notice of 
initiation date is considered eligible, unless the right to irrigate the land has been severed or the 
acres have been retired from irrigation (A.R.S. § 45-437). According to ADWR, the notice of 
initiation date for the Harquahala INA is January 6, 1981 (ADWR). 
A public service corporation is any corporation other than municipal engaged in:  
1) furnishing gas, oil or electricity for light, fuel or power; 2) furnishing water for irrigation, fire 
protection or other public purposes; 3) furnishing hot or cold air or steam for heating or cooling 
purposes, for profit; 4) collecting, transporting, treating, purifying and disposing of sewage 
through a system, for profit; 5) transmitting messages or furnishing public telegraph or telephone 
service; or 6) operating as common carriers (Ariz. Const. art. 15 § 2).  
There is no anticipated fiscal impact to the state General Fund associated with this 
legislation. 
Provisions 
1. Allows a public service corporation to withdraw groundwater from Harquahala INA land for 
transportation to an initial AMA for its own use or use by the AWBA if the corporation: 
a) is regulated by the Arizona Corporation Commission; 
b) holds a certificate of convenience and necessity for water service in an initial AMA;  
   FACT SHEET 
H.B. 2055 
Page 2 
 
 
c) owns land eligible to be irrigated in the Harquahala INA; and 
d) collects all costs associated with withdrawing, transporting and delivering groundwater 
away from the Harquahala INA from the customers of the water distribution system of the 
corporation where the transported groundwater is used.  
2. Requires groundwater transported away from the Harquahala INA to be used by customers of 
an eligible transporter within five years after transportation. 
3. Prohibits groundwater transported away from the Harquahala INA from being sold or 
otherwise conveyed for use other than by an eligible entity. 
4. Requires the Director of ADWR to adopt rules regarding compliance and reporting for 
Harquahala INA transportation requirements imposed by this legislation. 
5. Makes technical changes. 
6. Becomes effective on the general effective date. 
House Action 
NREW 1/18/22 DP 7-5-0-0 
3
rd
 Read 2/23/22  32-26-1-1 
Prepared by Senate Research 
March 4, 2022 
RC/slp