Arizona 2024 2024 Regular Session

Arizona House Bill HB2186 Comm Sub / Analysis

Filed 04/01/2024

                    Assigned to NREW 	AS PASSED BY COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Sixth Legislature, Second Regular Session 
 
REVISED 
AMENDED 
FACT SHEET FOR H.B. 2186 
 
remedial groundwater incentive; brackish groundwater 
Purpose 
Defines brackish groundwater as groundwater containing total dissolved solids between 
1,000 and 10,000 milligrams per liter and deems the use of the outlined hazardous substances and 
brackish groundwater as consistent with the management goal of an active management area 
(AMA) if outlined conditions apply. 
Background 
For the purpose of determining whether an assured water supply exists, the Director of the 
Arizona Department of Environmental Quality (ADEQ) must find that a groundwater 
replenishment district member's projected use is consistent with achieving the management goal 
for the AMA if: 1) the land for which a certificate or the city, town or private water company for 
which a designation is sought is in a groundwater replenishment district; 2) the Director of ADEQ 
has made either a preliminary determination that has not expired or a final determination that the 
district's plan for operation is consistent with achieving the management goal; and 3) the master 
replenishment account does not have a debit balance that exceeds the cumulative amount of the 
district's debits accrued during the four preceding calendar years (A.R.S. § 45-576.01). 
Hazardous substance includes: 1) any substance designated by outlined statute and the 
Federal Clean Water Act; 2) any element, compound, mixture, solution or substance designated 
pursuant to section 102 of CERCLA; 3) any hazardous air pollutant listed by the Federal Clean Air 
Act; 4) any imminently hazardous chemical substance or mixture with respect to which the 
administrator has taken action pursuant to the Federal Toxic Substances Control Act; 5) and any 
substance that the Director of ADEQ, by rule, either designates as a hazardous substance following 
the designation of the substance by an outlined administrator or designates as a hazardous 
substance on the basis of a determination that such substance represents an imminent and 
substantial endangerment to public health (A.R.S. § 49-201). 
Inert material means broken concrete, asphaltic pavement, manufactured asbestos-
containing products, brick, rock, gravel, sand and soil. Inert material also includes material that, 
when subjected to a water leach test that is designed to approximate natural infiltrating waters, will 
not leach substances in concentrations that exceed numeric aquifer water quality standards, 
including overburden and wall rock that is not acid generating, taking into consideration acid 
neutralization potential, and that has not and will not be subject to mine leaching operations 
(A.R.S. § 49-201). 
Remedial actions means actions that are reasonable, necessary, cost-effective and 
technically feasible in the event of the release or threat of release of hazardous substances into the 
environment, such as actions as may be necessary to investigate, monitor, assess and evaluate such  FACT SHEET – Amended/Revised  
H.B. 2186 
Page 2 
 
 
release or threat of release, actions of remediation, removal or disposal of hazardous substances or 
taking such actions as may be necessary to prevent, minimize or mitigate damage to the public 
health or welfare or to the environment that may otherwise result form a release or threat of release 
of a hazardous substance. Remedial actions include the use of biostimulation with indigenous and 
bioaugmentation using microbes that are nonpathogenic, that are nonopportunistic and that are 
naturally occurring (A.R.S. § 49-281). 
ADEQ may conduct a remedial investigation and feasibility study of a scored site or 
portion of the site to assess conditions on the site or portion of the site and to evaluate alternative 
potential remedies to the extent necessary to select a final remedy in a manner consistent with 
adopted rules and procedures. After evaluating the site or portion of a site, the Director of ADEQ 
must prepare a proposed remedial action plan and issue notice of the proposed plan to pursuant to 
the community involvement plan. A copy of the proposed remedial action plan must also be sent 
to each person on the preliminary list of potentially responsible parties with a notice that includes 
the outlined required information and that also must: 1) notify the recipients of the opportunity to 
propose alternative methods of allocation of liability among responsible parties; 2) provide a 
preliminary list of potentially responsible parties and summarize the basis for each party's liability, 
if the Director of ADEQ determines that cost recovery may be appropriate; 3) advise the recipient 
that all information known to the recipient regarding a person who may be liable and any facility 
within the site from which a release of hazardous substance may have occurred must be provided 
to ADEQ within a reasonable period set by ADEQ, but at least within 60 days; 4) within 90 days 
after the end of the public comment period, if ADEQ has received sufficient information 
identifying additional persons who may be responsible or facilities where a release of a hazardous 
substance may have occurred, the Director of ADEQ must investigate that person or facility within 
the site or decline to investigate and notify the person providing the information in writing of the 
decision (A.R.S. §§ 49-287.03 and 49-287.04). 
The Joint Legislative Budget Committee (JLBC) fiscal note on H.B. 2186 estimates an 
increase in the workload of the Arizona Department of Water Resources (ADWR), but states that 
the magnitude of the impact cannot be determined in advance. JLBC notes that the increase in 
workload would depend on the number of applicants in AMAs that propose to use brackish 
groundwater and that H.B. 2186 would require ADWR to establish new rules, change operational 
processes and update information systems to separately track brackish groundwater approvals, 
plans and annual reports as well as differentiate brackish groundwater withdrawals from regular 
groundwater withdrawals. The JLBC fiscal note states that the new rule and data requirements 
would increase ADWR's administrative costs, but that ADWR has not yet provided an estimate of 
the fiscal impact of H.B. 2186 (JLBC fiscal note). 
Provisions 
1. Deems the use of brackish groundwater by a person with or applying for a certificate or 
designation of assured water supply during a year as consistent with the management goal of 
the AMA in which the remedial groundwater is withdrawn and is excluded when determining 
compliance with the management goal requirements if:  
a) the Director of ADEQ determines that the brackish groundwater use is consistent with the 
management goal; 
b) the person complies with outlined metering and reporting requirements;  FACT SHEET – Amended/Revised  
H.B. 2186 
Page 3 
 
 
c) the Director of ADEQ approves the brackish groundwater plan for the proposed withdrawal 
and use; 
d) the person agrees to desalinate the brackish groundwater so that the water no longer meets 
the definition of brackish groundwater and complies with all applicable potable drinking 
water standards; and 
e) if the brackish groundwater will be withdrawn from an exemption area or that is located 
within the boundaries of an irrigation district, the person uses or otherwise returns the 
treated brackish groundwater to the same exemption area or service area of an irrigation 
district from which the brackish groundwater was originally withdrawn. 
2. Allows a person with or applying for a certificate or designation of assured water supply that 
is using or proposing to use brackish groundwater to apply to the Director of ADEQ for a 
determination that the person's use of the remedial groundwater is consistent with the 
management goal of the AMA by submitting an application on a form provided by the Director 
of ADEQ. 
3. Requires the Director of ADEQ, if the Director approves an application for an approved 
brackish groundwater plan, to calculate the annual amount of brackish groundwater use that is 
deemed consistent with the management goal. 
4. Requires the Director of ADEQ to establish rules; 
a) establishing a simplified application process to determine that brackish groundwater use is 
consistent with the management goals of an AMA; 
b) outlining the timeline for review for a submitted application; and 
c) outlining the formulation to calculate, increase or decrease the annual authorized volume 
that can be withdrawn. 
5. Requires a person with or applying for a certificate or designation of assured water supply that 
is withdrawing or proposing to withdraw brackish groundwater that is or has been determined 
to be consistent with the management goal to:  
a) meter the brackish groundwater withdrawals separately from groundwater withdrawn 
pursuant to another groundwater withdrawal authority; and 
b) include in its annual reports the amount of brackish groundwater withdrawn during the 
reporting year that is consistent with the management goal and the purposes for which the 
brackish groundwater was used. 
6. Requires a person with or applying for a certificate or designation of assured water supply that 
is withdrawing or proposing to withdraw or use brackish groundwater and is deemed consistent 
with the management goals of an AMA to provide, at least 120 days before commencement of 
the withdrawals or use or 120 days after the general effective date, whichever is later, written 
notice to the Director of ADEQ of: 
a) the annual volume of brackish groundwater to be withdrawn from each well pursuant to 
the approved brackish groundwater plan; 
b) the total amount of brackish groundwater that is located in the relevant area from which 
the annual authorized volume of brackish groundwater will be withdrawn; 
c) the time period in which brackish groundwater will be withdrawn and used; 
d) the anticipated or actual commencement date of withdrawals or use; 
e) the purpose for which the brackish groundwater will be used;  FACT SHEET – Amended/Revised  
H.B. 2186 
Page 4 
 
 
f) the person with or applying for a certificate or designation of assured water supply to which 
the brackish groundwater will be pledged; and 
g) the name and telephone number that the Arizona Department of Water Resources may 
contact regarding the withdrawal or use.  
7. Defines annual authorized volume as the annual volume of brackish groundwater that a person 
may withdraw pursuant to an approved brackish groundwater plan issued by the Director of 
ADEQ. 
8. Defines approved brackish groundwater plan as a plan that the Director of ADEQ has 
approved and determined to be consistent with the management goals of an AMA for the 
withdrawal of brackish groundwater within the AMA. 
9. Defines brackish groundwater as groundwater that contains total dissolved solids between 
1,000 and 10,000 milligrams per liter. 
10. Defines brackish groundwater use to mean, for any year, the amount of remedial groundwater 
withdrawn from within an AMA pursuant to an approved brackish groundwater plan and used 
by a person with or applying for a certificate or designation of assured water supply during the 
year, not to exceed the annual authorized volume. 
11. Makes technical and conforming changes.  
12. Becomes effective on the general effective date.  
Amendments Adopted by Committee 
1. Outlines requirements for the use and regulation of brackish groundwater, rather than remedial 
groundwater. 
2. Deems the use of remedial brackish groundwater by a person with or applying for a certificate 
or designation of assured water supply during a year as consistent with the management goal 
of the AMA in which the remedial groundwater is withdrawn and is excluded when 
determining compliance with the management goal requirements if:  
a) the Director of ADEQ approves the brackish groundwater plan for the proposed withdrawal 
and use; 
b) the person agrees to desalinate the brackish groundwater so that the water no longer meets 
the definition of brackish groundwater and complies with all applicable potable drinking 
water standards; and 
c) if the brackish groundwater will be withdrawn from an exemption area or that is located 
within the boundaries of an irrigation district, the person uses or otherwise returns the 
treated brackish groundwater to the same exemption area or service area of an irrigation 
district from which the brackish groundwater was originally withdrawn. 
3. Removes the use of remedial groundwater by a person with or applying for a certificate or 
designation of assured water supply during a year for which outlined conditions apply as 
consistent with the management goal of an AMA in which the remedial groundwater is 
withdrawn and is excluded when determining compliance with management goal requirements 
without approval of the Director of ADEQ.  FACT SHEET – Amended/Revised  
H.B. 2186 
Page 5 
 
 
4. Allows a person to apply to the Director of ADEQ for a determination that the person's use of 
the remedial groundwater is consistent with the management goal of the AMA by submitting 
an application on a form provided by the Director of ADEQ if the person has or is applying for 
a certificate or designation of assured water supply that is using or proposing to use brackish 
groundwater, rather than has or is applying for a certificate or designation or has agreed in a 
consent decree or other document approved by ADEQ or the U.S. Environmental Protection 
Agency (EPA) to use remedial groundwater. 
5. Requires the Director of ADEQ to calculate the annual amount of brackish groundwater use 
that is deemed consistent with the management goal if the Director approves an application for 
an approved brackish groundwater plan, rather than a determination that the person's use of the 
remedial groundwater is consistent with the management goal of the AMA. 
6. Requires the written notice to the Director of ADEQ by a person with or applying for a 
certificate or designation of assured water supply that is withdrawing or proposing to withdraw 
or use brackish groundwater and is deemed consistent with the management goals of an AMA 
to provide the total amount of brackish groundwater that is located in the relevant area from 
which the annual authorized volume of brackish groundwater will be withdrawn, rather than 
the remedial groundwater that meets the outlined definition of a hazardous substance. 
7. Removes the requirement that written notice to the Director of ADEQ by a person with or 
applying for a certificate or designation of assured water supply that is withdrawing or 
proposing to withdraw or use brackish groundwater and is deemed consistent with the 
management goals of an AMA provide a copy of a document evidencing ADEQ or EPA 
approval of the person's withdrawal and use of remedial groundwater, such as a remedial action 
plan, record of decision or consent decree. 
8. Removes the requirement that a copy of a proposed remedial action plan be sent to each person 
on the preliminary list of potentially responsible parties to advise the recipient that all 
information known to the recipient regarding a person who may be liable and any facility 
within the site from which a release of hazardous substance, except remedial groundwater that 
meets the outlined definition of a hazardous substance, may have occurred must be provided 
to ADEQ within a reasonable period of time set by ADEQ, but at least within 60 days. 
9. Removes the exemption of a hazardous substance that meets the outlined definition from 
substances that the Director of ADEQ must investigate within 90 days after the end of the 
public comment period, if ADEQ has received sufficient information identifying additional 
persons who may be responsible. 
10. Removes the modifications to the definitions of hazardous substance, inert material and 
remedial action.  
11. Removes the definitions of remedial groundwater and authorized remedial groundwater use. 
12. Defines terms. 
13. Makes technical and conforming changes.  
   FACT SHEET – Amended/Revised  
H.B. 2186 
Page 6 
 
 
Revisions 
• Updates the fiscal impact statement. 
House Action 	Senate Action 
NREW 2/13/24 DP 6-4-0-0 NREW 3/21/24 DPA 4-3-0 
3
rd
 Read 2/22/24  31-28-0-0-1 
Prepared by Senate Research 
April 1, 2024 
RA/SDR/slp