ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
NATURAL RESOURCES, ENERGY &
WATER COMMITTEE
DATE: March 29, 2023
SUBJECT: Strike everything amendment to H.B. 2441, relating to standpipe service;
continuation; emergency
Purpose
An emergency measure that requires a city or town that provides water service in a county
with a population of more than 500,000 persons to provide water for a period of at least three years
by use of a standpipe for water hauling to residences that are outside the city's or town's water
service area if outlined conditions are met.
Background
In 2022, the U.S. Bureau of Reclamation declared a Tier 1 shortage on the Colorado River.
This shortage resulted in a substantial cut to Arizona's share of Colorado River water allocations
(CAP). In 2023, the Lower Colorado River Basin entered into a Tier 2A shortage, requiring further
cuts to water allocations throughout the Colorado River Basin states (CAP).
According to the City of Scottsdale's Drought Management Plan (Scottsdale DMP), if a
Tier 1 or Tier 2A shortage has been triggered, any water hauling operations must cease unless the
water hauling customer, whether residential or commercial, can prove indisputably that the hauled
water is being supplied directly to a City of Scottsdale resident or business (Scottsdale DMP).
A municipal water provider is a city, town, domestic water improvement district, private
water company or irrigation district that supplies water for non-irrigation use (A.R.S. § 48-5901).
A service area with respect to a city or town, is the area of land actually being served water, for
non-irrigation use, by the city or town (A.R.S. § 45-402).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires a city or town that provides water service in a county with a population of more than
500,000 persons to provide water for a period of at least three years by use of a standpipe for
water hauling to residences that are outside the city's or town's water service area if:
a) the number of residences to be served does not exceed 750, and the residences are in an
area that is an unincorporated community within the county and adjacent to the city or
town;
b) the city or town previously provided standpipe service to water haulers that deliver water
to the residences and the city or town ceased providing that service pursuant to a drought
management plan adopted by the city or town;
c) there is no other source of water for those persons within 10 miles of their residences; and
d) the city or town is reimbursed for the full reasonable costs of providing the water.
RACHEL ANDREWS
LEGISLATIVE RESEARCH ANALYST
NATURAL RESOURCES, ENERGY & WATER
COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
H.B. 2441
Page 2
2. Requires the city or town to not charge residences for water-related costs, expenses and
acre-feet of water that do not provide a direct benefit to the residences.
3. Requires a city or town that provides water, either directly or by way of contract with one or
more third party, to:
a) allow water to be received at the standpipe and delivered through water haulers that have
established a water hauling account with the city or town or its contractors;
b) bill and collect from the water haulers the reasonable cost of providing the water to the
standpipe, not exceeding $7 per each 1,000 gallons; and
c) provide annually at least 150 acre-feet of water to the standpipe.
4. Requires a city or town that provides water at a standpipe to disclose to the public the source
of water that is provided through the standpipe.
5. Exempts a city or town that provides water from liability for any actions taken or omissions
after water is provided at the standpipe.
6. Prohibits a city or town that provides water from reducing or suspending the amount of water
for any reason except if the city or town has disclosed the source of the water and that source
has been reduced or suspended by a proportionate amount outside the city's or town's control.
7. Requires a city or town drought management plan to include the option for the city or town to
enter into contracts with private entities, including private water companies, to ensure the
integration of stable and secure water supplies.
8. Exempts a city or town from liability to any person or entity for providing or failing to provide
water.
9. Excludes standpipe service from being considered a utility service.
10. Stipulates that the requirement for a city or town to provide water service outside a city or town
does not preclude the execution or implementation of a voluntary agreement before the
effective date.
11. Repeals the requirement for a city or town to provide water service outside a city or town on
January 1, 2026.
12. Becomes effective on signature of the Governor, if the emergency clause is enacted.