Assigned to NREW AS VETOED
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
VETOED
AMENDED
FACT SHEET FOR H.B. 2063
exempt wells; certificate; groundwater use
Purpose
Grants an exempt well that is registered with the Arizona Department of Water Resources
(ADWR) a right to withdraw up to 35 gallons per minute.
Background
Exempt and non-exempt wells are the two primary types of wells drilled in Arizona.
Exempt wells are typically used for domestic purposes, are equipped to pump up to 35 gallons per
minute and serve water uses related to the supply, service and activities of households and private
residences. Non-exempt wells have a pump capacity greater than 35 gallons per minute and require
grandfathered rights, service area rights and withdrawal permits to withdraw water in active
management areas (AMAs) (ADWR; A.R.S. § 45-402).
Wells constructed in an AMA may not have withdrawals of groundwater for non-irrigation
uses other than domestic purposes and stock watering exceed 10 acre-feet per year, and exempt
wells in a subsequent AMA that is designed for a portion of a groundwater basin in the regional
aquifer systems of Northern Arizona may be used only for domestic and stock watering. In an
AMA, only one exempt well may be drilled or used to serve the same non-irrigation use at the
same location, unless the Director of ADWR determines that all of the following apply: 1) the
exempt well's location is not capable of consistently producing more than 3 gallons per minute of
groundwater when equipped with a pump with a maximum capacity of 35 gallons per minute;
2) the second exempt well is located on the same parcel of land as the first exempt well, the parcel
of land is at least one acre in size, all groundwater withdrawn from both exempt wells is used on
that parcel of land and there are no other exempt wells on that parcel of land; 3) combined
withdrawals from both wells do not exceed 5 acre-feet per year; 4) the county health authority or
any other local health authority that controls the installation of septic tanks or sewer systems in the
county has approved the location of the well in writing after physically inspecting the well site;
and 5) use of two wells for the same non-irrigation use at the same time is not contrary to health
and welfare of the public. If two or more exempt wells in an AMA that were drilled before June
12, 1980, are used to serve the same non-irrigation use at the same location, the aggregate quantity
of groundwater withdrawn may not exceed 56 acre-feet per year (A.R.S. § 45-454).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Grants an exempt well that is registered with ADWR a right to withdraw up to 35 gallons per
minute. FACT SHEET – Amended/Vetoed
H.B. 2063
Page 2
2. Requires the Director of ADWR to issue, to each groundwater user that registers the
groundwater user's exempt well with ADWR, a certificate of water rights which allows the
groundwater user to pump up to 35 gallons per minute.
3. Prohibits the outlined groundwater user from appropriating subflow or surface water out of
priority.
4. Specifies that the withdrawn water is not exempt from a general stream adjudication.
5. Specifies that the issuance of a certificate of water rights does not preempt or affect:
a) decreed or appropriative rights;
b) surface water;
c) water that is subject to appropriation; and
d) a general adjudication of water rights.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
• Specifies that the issuance of a certificate of water rights does not preempt or affect:
a) decreed or appropriative rights;
b) surface water;
c) water that is subject to appropriation; and
d) a general adjudication of water rights.
Governor's Veto Message
The Governor indicates in her veto message that H.B. 2063 serves no water management
purpose and would divert meaningful functions of a critical agency to unnecessary paperwork.
House Action Senate Action
NREW 1/8/24 DP 6-4-0-0 NREW 3/14/24 DPA 3-2-2
3
rd
Read 2/28/24 31-28-0-0-1 3
rd
Read 4/10/24 16-11-3
Final Read 4/24/24 31-29-0
Vetoed by the Governor 4/30/24
Prepared by Senate Research
April 30, 2024
RA/SDR/slp