Assigned to NREW AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.B. 1660
water; effluent; credits
Purpose
Allows an industrial facility to construct and operate an on-site wastewater treatment
facility for wastewater, and discharge its effluent after treatment by the on-site wastewater
treatment facility, to a constructed underground storage facility, under outlined conditions.
Background
A person who wishes to operate a constructed underground storage facility must apply for
and obtain a constructed underground storage facility permit from the Arizona Department of
Water Resources (ADWR). Additionally, the person must apply for and obtain a water storage
permit to store water in the constructed underground storage facility and a recovery well permit to
recover the water stored at the storage facility. Each permit is subject to its own application
requirements as prescribed by law (A.R.S. §§ 45-811.01; 45-831.01; and 45-834.01).
The Director of ADWR is required to establish a long-term storage account for each person
holding long-term storage credits. Up to 95 percent of the recoverable water stored at a storage
facility may be credited to a long-term storage account if the conditions prescribed in law are
satisfied. A long-term storage account may include a subaccount for each active management area,
irrigation non-expansion area, groundwater basin or groundwater subbasin in which the person's
stored water is located and may be subdivided by type of water (A.R.S. § 45-852.01)
Effluent is water that has been collected on a sanitary sewer for subsequent treatment in a
facility that is regulated by the Arizona Department of Environmental Quality and that remains
effluent until it acquires the characteristics of groundwater or surface water (A.R.S. § 45-101).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
Water Storage Permit
1. Prohibits facilities that treat and store effluent from being exempt of aquifer protection permit
requirements.
2. Allows the Director of ADWR to issue a water storage permit for effluent if the effluent:
a) will be stored at a constructed underground storage facility at the site where the water was
used before treatment; and
b) if the application is for a new water storage permit, the application be received by the
Director of ADWR by December 31, 2025. FACT SHEET – Amended
S.B. 1660
Page 2
3. Allows the applicant for the water storage permit for effluent to submit amendments,
supplements, modifications or renewals of the water storage permit after the application is
timely submitted.
4. Allows effluent that has been stored pursuant to a water storage permit to be used only by the
storer for a nonirrigation use at the same site where the water was stored.
Long-Term Storage Credit
5. Requires the Director of ADWR to credit 75 percent of the recoverable amount of stored
effluent water to the storer's long-term storage credit.
6. Allows a person who holds long-term storage credits or who may recover water on an annual
basis to recover the water stored pursuant to a water storage permit if the stored water is not
effluent.
Report
7. Requires the Director of ADWR to prepare a report regarding water storage permits for effluent
that includes:
a) the number of water storage permits that were issued in the preceding calendar year;
b) the total amount of water stored pursuant to those permits in the preceding calendar year;
and
c) the total amount of stored water that was withdrawn in the preceding calendar year.
8. Requires the Director of ADWR to submit the report to the Governor, the President of the
Senate and the Speaker of the House of Representatives on June 30 of each year and provide a
copy of the report to the Secretary of State.
Miscellaneous
9. Adds to the definition of effluent water, water that is not originally supplied by a city, town or
private water company, that is used in an industrial facility and that is used by an industrial
facility located within the service area of a wastewater provider that holds a certificate of
convenience and necessity issued by the Arizona Corporation Commission and that is treated
at the site of use to meet or exceed aquifer water quality standards as determined by the Arizona
Department of Environmental Quality.
10. Defines industrial facility as an enterprise that consists of the facilities and equipment used for
producing, processing or assembling goods, not including facilities used for agriculture,
mining or power generation.
11. Makes technical and conforming changes.
12. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Prohibits the exemption of effluent from aquifer protection permit requirements. FACT SHEET – Amended
S.B. 1660
Page 3
2. Modifies regulations regarding effluent stored pursuant to water storage permits.
3. Adds to the definition of effluent water.
Amendments Adopted by Committee of the Whole
1. Adds, to the requirements for issuing a water storage permit, that if the application is for a new
water storage permit, the application must be received by the Director of ADWR by December
31, 2025, except that the applicant for the permit may submit amendments, supplements,
modifications or renewals of the permit after the application is timely submitted.
2. Requires the Director of ADWR to credit 75 percent of the recoverable amount of stored
effluent water to the storer's long-term storage credit.
3. Allows water to continue to be stored and long-term storage credits to continue to accrue and
be used by the holder of a lawfully issued permit without regard to whether the water was
stored and long-term storage credits were accrued or used after December 31, 2025.
4. Requires the Director of ADWR to prepare a report regarding water storage permits for
effluent, and outlines the included information.
5. Defines industrial facility.
6. Makes conforming changes.
Senate Action
NREW 2/16/23 DPA 5-2-0
Prepared by Senate Research
March 16, 2023
RA/slp