Arizona 2024 2024 Regular Session

Arizona House Bill HB2200 Comm Sub / Analysis

Filed 02/26/2024

                      	HB 2200 
Initials EB/KK 	Page 1 	House Engrossed 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
Second Regular Session 
House: NREW DPA 7-2-0-1 
 
HB 2200: groundwater transportation; Harquahala non -expansion area 
Sponsor: Representative Dunn, LD 25 
House Engrossed 
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Unless specifically authorized, groundwater that is withdrawn in a basin or sub-basin located 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groundwater basins and sub-basins from which groundwater can be withdrawn and 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2) any property from which groundwater is withdrawn must remain free of noxious 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  The groundwater can be withdrawn up 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 There are limitations on how much can be withdrawn per acre over specified time 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 	House Engrossed 
Provisions 
Public Service Corporations 
1. Adds public service corporations to the list of eligible entities that may transport 
groundwater from the Harquahala INA to an initial AMA. (Sec. 1) 
2. Requires the public service corporation to be: 1) regulated by the ACC; 2) hold a certificate 
of convenience and necessity for water service in an initial AMA; and 3) own land in the 
INA that is eligible to be irrigated. (Sec. 1) 
3. Requires all costs associated with withdrawing, transporting, and delivering 
groundwater that is transported away from the Harquahala INA by a public service 
corporation to be collected from the customers of the corporation's water district where 
the transported groundwater is used. (Sec. 1) 
Entities Eligible to Transport Groundwater 
4. Expands the criteria for an eligible entity to withdraw and transport groundwater from 
the Harquahala INA by requiring: 
a) compliance with the assured water supply program and hydrological studies; 
b) installation of water measuring devices to determine the volume of groundwater 
withdrawn and transported from the Harquahala INA; and 
c) monthly reports to ADWR containing: 
i) information on the volume of groundwater withdrawn and transported from 
the Harquahala INA; and 
ii) the end use or destination of the transported groundwater. (Sec. 1) 
Arizona Department of Water Resources (ADWR) 
5. Requires the ADWR Director to adopt administrative rules to implement provisions 
relating to transportation of groundwater from the Harquahala INA and include 
reporting requirements. (Sec. 1)  
6. Exempts ADWR from rulemaking requirements for one year after the effective date of 
this legislation. (Sec. 2) 
7. Requires an annual report from ADWR that lists the amount of groundwater withdrawn 
and transported from the Harquahala INA for the preceding year,  in total and by each 
entity, and to include a delineation of the end use or destination of all groundwater 
transported. (Sec. 1) 
8. Requires ADWR to submit the report annually, by July 1, to the Governor, President of 
the Senate and Speaker of the House of Representatives and provide a copy to the 
Secretary of State. (Sec. 1)  
Miscellaneous 
9. Makes technical changes. (Sec. 1)  
 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note