SB 1660
Initials PAB Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
Senate: NREW DPA 5-2-0-0 | 3
rd
Read 16-13-1-0
House: NREW DP 6-4-0-0
SB 1660: water; storage; effluent; credits
Sponsor: Senator Kerr, LD 25
Caucus & COW
Overview
Allows a qualifying industrial facility to treat a certain type of effluent on-site, store it underground
to accrue long-term storage credits and then use these credits to recover water at a later date for
non-irrigation use by the storer at the same site, subject to prescribed terms and conditions.
Directs the Arizona Department of annually report information on the permits and water stored as
authorized under this act.
History
Conservation Requirements for Industrial Users In Active Management Areas
The Groundwater Management Act regulates groundwater usage in designated areas of the state
called active management areas (AMAs) (A.R.S. §§ 45-401 and 45-411). Each AMA has a
management goal and a series of successive management plans with various conservation
measures and strategies for different water users to help achieve that goal (A.R.S. §§ 45-562 and
45-563). Most AMAs, including the Phoenix AMA, have a management goal of achieving safe
yield, which attempts to maintain a long-term balance between groundwater withdrawals and
recharge, by 2025 (A.R.S. §§ 45-561 and 45-562).
Industrial water users, including power plants and turf-related facilities, are covered by the act's
requirement to include a conservation program for non-irrigation groundwater users (A.R.S. § 45-
567). This program's requirements are based on using the latest commercially available
conservation technology consistent with reasonable economic returns. Under the current
management plans, industrial users must comply with certain requirements such as avoiding
waste, endeavoring to recycle water, and tracking the total amount of water used by source
(including effluent). There are additional requirements for certain classes of industrial users. For
example, a new large industrial user (which is one that begins using more than 100 acre-feet of
water per year for industrial purposes after January 1, 2023) must submit a conservation plan for
improving water efficiency at its facility and an implementation schedule to the Arizona
Department of Water Resources (ADWR).
Storing Water To Earn Credits
Water may be stored underground to earn long-term storage credits (LTSCs) subject to certain
terms and conditions. To qualify for credits, the water must be stored pursuant to a water storage
permit at a storage facility and meet all the following requirements:
1) The water must qualify as water that cannot be reasonably used directly, which includes
effluent and, in certain circumstances, Central Arizona Project water;
2) If stored within an AMA, the water would not have been naturally recharged within the
AMA. Alternatively, the water was stored in an AMA at a managed underground storage
facility that adds value to a national park, national monument or state park; and
3) The stored water is not recovered in the same calendar year that it was stored
underground. SB 1660
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If the water stored meets all the above criteria, ADWR will credit LTSCs to the storer's account.
The amount of LTSCs credited depends on factors such as the type of water stored and the facility
used to store the water. For example, ADWR will credit 100% of the effluent that will reach the
aquifer by being stored at a constructed underground storage facility to the storer's account
(A.R.S. §§ 45-802.01 and 45-852.01).
A storer may use LTSCs to recover stored water at a later date if the storer has a recovery well
permit and complies with additional criteria that are specific to where the water was stored. ADWR
will debit the storer's account for the amount of water recovered. Additionally, when water is stored
in an AMA, ADWR will debit the amount of water during the calendar year that migrates outside
the AMA or to a location within the AMA where it cannot be beneficially used within a reasonable
period of time by those other than the storer who have rights to withdraw and use groundwater
(A.R.S. §§ 45-834.01 and 45-852.01).
Aquifer Protection Permits
Aquifer protection permits are required for discharges of any pollutant to an aquifer or to an area
where it is reasonable that the pollutant will reach an aquifer (A.R.S. § 49-241). This permit will
be issued for water storage if it can be shown that the facility is designed, built and operated to
ensure that it will not cause or contribute to any violation of aquifer water quality standards at the
applicable point of compliance (A.R.S. § 49-243).
However, certain uses and facilities are not required to obtain an aquifer protection permit. For
example, facilities that store water underground are exempt from being required to obtain an
aquifer protection permit unless reclaimed water is added. (Reclaimed water is a term in the
state's environmental laws for water that has been treated or processed by a wastewater
treatment plan or an on-site wastewater treatment facility). Further, industrial wastewater
treatment facilities designed and operated to reduce discharges through best available
demonstrated control technologies, processes, operating methods or other alternatives and that
use Arizona Department of Environmental Quality-approved systems to treat wastewater to
aquifer water quality standards before discharge are exempt from these permits if the water is
stored at a groundwater storage facility (A.R.S. § 49-250).
Effluent
Effluent is a term in the state's water statutes for water that has been collected in a sanitary sewer
for subsequent treatment in a facility that is regulated as a sewage system, disposal plant or
wastewater treatment facility. This water remains effluent until it acquires the characteristics of
groundwater or surface water (A.R.S. § 45-101).
Provisions
1. Adds, to the definition of effluent, water that meets all the following criteria:
a) Was not originally supplied by a city, town or private water company;
b) Is used in an industrial facility within the service area of a private wastewater provider; and
c) Is treated at the site of use to meet or exceed the aquifer water quality standards
established by the Arizona Department of Environmental Quality. (Sec. 1)
2. States that this water ("special effluent") remains effluent until it acquires the characteristics
of groundwater or surface water. (Sec. 1)
3. Defines industrial facility as an enterprise that consists of facilities and equipment used to
produce, process or assemble goods and which does not include facilities used for agriculture,
mining or power generation. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1660
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4. Establishes two additional criteria that a water storage permit will need to satisfy if the water
stored is special effluent:
a) The special effluent will be stored at a constructed underground storage facility at the site
where the water was used before treatment; and
b) ADWR must receive the application for a new water storage permit by December 31, 2025,
except that the permit applicant may submit amendments, supplements, modifications or
renewals of the permit after the application is submitted. (Sec. 2)
5. Specifies that special effluent stored pursuant to a water storage permit may be used by the
storer only for a non-irrigation use at the same site where the water was stored. (Sec. 3)
6. Prohibits at LTSC holder or someone who may annually recover water stored pursuant to a
water storage permit within an AMA from recovering special effluent from a recovery well that
is outside the area of impact of stored water. (Sec. 4)
7. Requires, when special effluent is stored pursuant to a water storage permit, that:
a) Any LTSCs accrued may only be used at the site where the water was stored; and
b) ADWR must credit 75% of the recoverable amount of the stored water to the storer's
account. (Sec. 5)
8. Authorizes special effluent to continue to be stored and LTSCs to be accrued and used by the
holder of a water storage permit without regard to whether the water was stored and LTSCs
were accrued or used after December 31, 2025. (Sec. 5)
9. Instructs ADWR to annually report information on water storage permits for special effluent
specifically:
a) The number of water storage permits issue in the preceding year;
b) The total amount of water stored pursuant to those permits in the preceding year; and
c) The total amount of stored water that was withdrawn in the preceding year (Sec. 6)
10. Specifies that facilities which treat and store special effluent are not exempt from an aquifer
protection permit (Sec. 7)
11. Makes technical and conforming changes. (Sec. 1-4 and 7)