ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
NATURAL RESOURCES, ENERGY &
WATER COMMITTEE
DATE: February 07, 2022
SUBJECT: Strike everything amendment to S.B. 1171, relating to treated process water;
definitions
Purpose
Adds treated process water to the definition of water that cannot reasonably be used
directly and outlines rules regarding the storage of treated process water.
Background
A storer is the holder of a water storage permit or a person to whom a water storage permit
has been conveyed (A.R.S. § 45-802.01). The Director of the Arizona Department of Water
Resources (Director) may issue a water storage permit to store water at a storage facility if the
Director determines that: 1) the applicant has a right to use the proposed source of water; 2) the
applicant has applied for any water quality permit required by the Arizona Department of
Environmental Quality and by federal law; and 3) the water storage will occur at a permitted
storage facility (A.R.S. § 45-831.01).
Water that cannot reasonably be used directly is water a storer cannot reasonably put to a
direct use, without first storing the water in an aquifer, during the calendar year, which
includes: 1) Central Arizona Project (CAP) water in excess of a municipality's withdrawn mined
groundwater in the Active Management Area (AMA) during a calendar year; 2) excess deficit
groundwater withdrawn in the AMA by a municipality with an assured water supply; 3) CAP water
stored in an AMA in excess of withdrawn groundwater during the calendar year for a storer in an
AMA that is not a municipality; 4) CAP water stored in an AMA by an agricultural improvement
district for use of certain electrical generating facilities; 5) surface water made available by
certain dams; 6) AWBA-acquired water delivered through the CAP; 7) water stored in an AMA
or groundwater basin that, without the efforts of the storer, would not have reached the AMA or
groundwater basin; and 8) effluent.
Statute allows stored water to be credited to a long term storage account if the Director
determines that: 1) the stored water cannot be reasonably used directly or, under certain
circumstances, was stored in an AMA; 2) the stored water was not recovered on an annual basis;
and 3) if the water was stored at a facility within an AMA, the water would not have been naturally
recharged within the AMA or, if the water in the AMA was stored at a facility that could add value
to a national park, national monument or state park, the water could have been used or disposed of
by means other than discharging the effluent into the stream. If these conditions are met, the
Director must credit 95 percent of the recoverable amount of stored water to the storer's long-term
storage account, with specified exceptions (A.R.S. § 45-852.01).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
RACHEL CALDWELL
LEGISLATIVE RESEARCH ANALYST
NATURAL RESOURCES, ENERGY & WATER
COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
S.B. 1171
Page 3
Provisions
1. Adds treated process water to the definition of water that cannot reasonably be used directly.
2. Exempts treated process water from requirements for municipal providers storing water that
cannot reasonably be used directly.
3. Allows treated process water that has been stored pursuant to a water storage permit to be used
or exchanged by the storer, or an affiliate or successor of the storer, for non-irrigation use
within the same groundwater sub-basin in which the water was stored.
4. Limits the assignment of long-term storage credits created through the storage of treated
process water to an affiliate or successor of the treated process water storer.
5. Defines treated process water as groundwater that is used for a non-irrigation use in a facility
that manufactures food and beverage products and subsequently is treated at the site of use for
storage pursuant to statute.
6. Makes conforming changes.
7. Becomes effective on the general effective date.