HB 2647
Initials EB/BSR Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: NREW DP 6-4-0-0
HB 2647: physical availability credits; water supply.
Sponsor: Representative Smith, LD 29
House Engrossed
Overview
Authorizes a person who owns land with an irrigation grandfathered right, within an active
management area (AMA), to permanently retire the land from irrigation use and retain a
physical availability credit.
History
The Groundwater Management Code (Code) w as enacted in 1980 and established the
statutory framework to regulate and control the use of groundwater. Determining who may
pump groundwater and how much they may pump is a vital part of groundwater
management. In an AMA, a person who was legally withdrawing and using groundwater as
of the designation of the AMA or who owns land legally entitled to be irrigated with
groundwater has the right to withdraw or receive and use groundwater. The right to
withdraw or receive and use groundwater is a grandfathered right. There are three types of
grandfathered rights:
1) Type 1 non-irrigated grandfathered rights associated with retired irrigated lands;
2) Type 2 non-irrigated grandfathered rights associated with retired irrigated lands;
and
3) Irrigation grandfathered right (A.R.S. § 45-462)(SOS).
A Type 1 right is associated with land permanently retired from farming after January 1,
1965 and converted to a non-irrigation use that has the right to withdraw from and receive 3
acre-feet of groundwater per acre per year is specified criteria are met (A.R.S. § 45-463).
A Type 2 right is associated with historical pumping of groundwater for a non-irrigation use
and equals the maximum amount of irrigated groundwater in any one year between January
1, 1975 and January 1, 1980 (A.R.S. § 46-464).
An Irrigation grandfathered right is associated with land within an AMA that was legally
irrigated with groundwater between January 1, 1975 and January 1, 1980 and has not been
retired from irrigation for non-irrigation use. To irrigate means to grow crops for sale, human
consumption or livestock or poultry feed by applying water on two or more acres (A.R.S. §§
45-402, 45-465).
Provisions
1. Allows a person who owns land, within an AMA, that may be legally irrigated with
groundwater under a grandfathered right to permanently retire the land from irrigation
in anticipation of future non-irrigation use. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2647
Initials EB/BSR Page 2 House Engrossed
2. Permits a person that retires land from irrigation to retain a physical availability credit.
(Sec. 1)
3. States that a physical availability credit may be used to withdraw from or receive for the
irrigated land a specified amount of groundwater calculated for non-irrigation use if:
a) the land has been actively farmed in one of the last five calendar years and is
permanently retired from irrigation use;
b) the new non-irrigation use of water remains appurtenant to the original irrigation
acres described in the certificate of grandfathered right; and
c) the water is delivered by a municipal provider within an AMA pursuant to a contract
that requires the municipal provider to deliver at least the same quantity of water
available to the retired original irrigation acres and to withdraw any groundwater
that is part of the delivery form within its service area. (Sec. 1)
4. Requires the amount of groundwater per acre that may be withdrawn or received
annually to be less than:
a) the current maximum amount of groundwater that may be used pursuant to the
irrigation grandfathered right for the acre at the time it is retired;
b) three acre-feet multiplied by the water duty acres in the farm in which the right is
appurtenant divided by the number of irrigation acres in the farm. (Sec. 1)
5. Requires groundwater withdrawn or received using a physical availability credit to be
used on the original irrigation acres. (Sec. 1)
6. Allows the balance of the physical availability credit to be used anywhere within the
municipal provider's service area if the amount of water calculated is more than needed
to meet the water demand on the original irrigation acres. (Sec. 1)
7. States the balance of the physical availability credit is the difference between the amount
of water calculated for non-irrigation use and the water demand for use on the original
irrigation acres. (Sec. 1)
8. Instructs the ADWR Director, in determining whether to issue a certificate of assured
water supply or to designate or redesignate a municipal provider as having an assured
water supply, to:
a) include the amount of groundwater calculated for non-irrigation use that may be
withdrawn and used annually; and
b) include the amount of groundwater calculated for non-irrigation use that may be
withdrawn based on the reduction in water use resulting from the transition from an
irrigation use to a non-irrigation use and based on that reduction, find that
groundwater used meets the physical availability requirements to demonstrate an
assured water supply. (Sec. 1)
9. Outlines the ADWR Director's governance of administrative proceedings, rehearing or
review and judicial review of final decisions. (Sec. 1)
10. Defines municipal provider to mean a city, town, private water company or irrigation
district that supplies water for non-irrigation use. (Sec. 1)
11. Removes the effective date by which rules must provide for a reduction in water demand
for an application for a designation of assured water supply or a certificate of assured
water supply. (Sec. 2) HB 2647
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12. Requires the ADWR Director to find the amount of groundwater calculated that is
physically available for assured water supply purposes. (Sec. 2)
13. Makes technical changes. (Sec. 2)