Arizona 2024 2024 Regular Session

Arizona House Bill HB2200 Comm Sub / Analysis

Filed 01/26/2024

                      	HB 2200 
Initials EB/KK 	Page 1 Natural Resources, Energy & Water 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
Second Regular Session 
 
 
HB 2200: groundwater transportation; Harquahala non -expansion area 
Sponsor: Representative Dunn, LD 25 
Committee on Natural Resources, Energy & Water 
Overview 
Adds a public service corporation to the list of eligible entities authorized to transport 
groundwater from the Harquahala Irrigation Non-expansion Area (INA) to an initial active 
management area (AMA).   
History 
Unless specifically authorized, groundwater that is withdrawn in a basin or sub-basin located 
outside an initial AMA may not be transported to an initial AMA. Current law identifies four 
groundwater basins and sub-basins from which groundwater can be withdrawn and 
transported to an initial AMA. Those basins are: 1) McMullen Valley; 2) Butler Valley; 3) 
Harquahala INA; and 4) Big Chino sub-basin of the Verde River groundwater basin.  
Transportation of groundwater from these basins is subject to limitations, including: 
1) a municipal or private water company with Central Arizona Project water delivery 
subcontracts must use most of its entitlements before using transported water; 
2) any property from which groundwater is withdrawn must remain free of noxious 
weeds; 
3) only certain wells can be used to withdraw groundwater for transportation; 
4) an entity transporting groundwater must pay annual transportation fees to the 
affected county; and 
5) depending on the infrastructure utilized, transportation may be subject to the 
National Environmental Policy Act process (A.R.S. §§ 9-431 et seq., 42-15251 et seq., 
45-551, 45-556, 45-557, 45-558, 45-559, 42 U.S.C. § 4332 et seq.).  
In the Harquahala INA, only Arizona and its political subdivisions can withdraw and 
transport groundwater from legally irrigable lands.  The groundwater can be withdrawn up 
to a depth of 1,000 feet at a rate that, when combined with current withdrawals, does not 
cause groundwater declines at the site by more than 10 feet annually during a 100-year 
period. There are limitations on how much can be withdrawn per acre over specified time 
periods (A.R.S. § 45-554). 
The Arizona Corporation Commission (ACC) regulates public service corporations, including 
non-municipal utilities that provide water for irrigation, fire protection and other public uses. 
The ACC issues certificates of convenience and necessity that authorize the corporation to 
provide a service in a certain geographical area (Constitution of Arizona, Article 15 §§ 2 and 
3, A.R.S. § 40-281). 
 
 
    	HB 2200 
Initials EB/KK 	Page 2 Natural Resources, Energy & Water 
Provisions 
1. Adds public service corporations to the list of authorized entities that may transport 
groundwater from the Harquahala INA to an initial AMA. (Sec. 1) 
2. Specifies that the public service corporation must be regulated by the ACC, hold a 
certificate of convenience and necessity for water service in an initial AMA and own land 
in the INA that is eligible to be irrigated. (Sec. 1) 
3. Specifies the transported groundwater must be used by the transporting entity's 
customers within five years of the time it is transported and cannot be sold or conveyed 
for use other than by the eligible entity. (Sec. 1) 
4. Requires all costs associated with withdrawing, transporting and delivering groundwater 
that is transported away from the basin by a public service corporation to be collected 
from the customers of the corporation's water distribution system where the transported 
groundwater is used. (Sec. 1) 
5. Requires the ADWR Director to adopt administrative rules to implement the provisions 
of this legislation and include reporting of groundwater transported from the Harquahala 
INA. (Sec. 1) 
6. Exempts ADWR from rulemaking requirements related to this measure for one year after 
the effective date of this legislation. (Sec. 2) 
7. Makes technical changes. (Sec. 1) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note