Assigned to NREW FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2647
physical availability credits; water supply
Purpose
Allows 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 to retain a physical
availability credit. Prescribes requirements necessary for a physical availability credit to be used
to withdraw groundwater from the land for non-irrigation use. Requires the Director of Arizona
Department of Water Resources (ADWR) to consider groundwater on non-irrigation lands when
determining the existence of an assured water supply.
Background
An irrigation grandfathered right is granted to a person who owns land within an AMA
which was legally irrigated in whole or in part with groundwater at any time during the five years
preceding January 1, 1980 for initial AMAs or the date of the notice of the initiation of designation
procedures or the call for the election for subsequent AMAs (A.R.S § 45-465). Non-irrigation use
is a use of groundwater other than irrigation use. Irrigation use is the use of groundwater on two
or more acres of land to produce plants or parts of plants for sale or human consumption, or for
use as feed for livestock, range livestock or poultry (A.R.S. § 45-402).
A person who proposes to offer subdivided lands for sale or lease in an AMA must apply
for and obtain a certificate of assured water supply from the Director of the ADWR before
presenting the plat for approval to the city, town or county in which the land is located. The
Director of the ADWR must also designate private water companies, cities and towns in AMAs
where an assured water supply exists. An assured water supply means: 1) sufficient groundwater,
surface water or effluent of adequate quality will be continuously available to satisfy the water
needs of the proposed use for at least 100 years; 2) that the projected groundwater use is consistent
with the management plan and achievement of the management goal for the AMA; and 3) the
financial capability has been demonstrated to construct the water facilities necessary to make the
supply of water available for the proposed use (A.R.S. § 45-576).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Allows a person who owns land that may be legally irrigated with groundwater pursuant to an
irrigation grandfathered right and that is located within an AMA to permanently retire the land
from irrigation in anticipation of a future non-irrigation use and retain a physical availability
credit. FACT SHEET
H.B. 2647
Page 2
2. Allows a physical availability credit to be used to withdraw from or receive for the land subject
to irrigation the amount of groundwater calculated for a non-irrigation use if the:
a) land has been actively farmed in one of the last five calendar years and is permanently
retired from irrigation use;
b) new non-irrigation use of water remains appurtenant to the original irrigation acres
described in the certificate of grandfathered right or portion thereof retired; and
c) 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 groundwater that is part of the delivery
from within its service area.
3. Requires the maximum amount of groundwater that may be withdrawn annually per acre for
non-irrigation use to be the lesser of the following:
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; or
b) three acre-feet multiplied by the water duty acres in the farm or portion thereof in which
the right is appurtenant divided by the number of irrigation acres in the farm or portion
thereof.
4. Requires the Director of the ADWR, in determining whether to issue a certificate of assured
water supply or whether 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 the groundwater used meets the
physical availability requirements to demonstrate an assured water supply.
5. Requires groundwater withdrawn or received using a physical availability credit to be used on
the original grandfathered irrigation acres.
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.
7. States the balance of the physical availability credit to be the difference between the amount
of water calculated for non-irrigation use and the water demand for use on the original
irrigation acres.
8. Outlines governance of administrative proceedings, rehearing or review and judicial review of
the final decisions of the Director of the ADWR.
9. Defines municipal provider as a city, town, private water company or irrigation district that
supplies water for non-irrigation use.
10. Makes technical and conforming changes.
11. Becomes effective on the general effective date. FACT SHEET
H.B. 2647
Page 3
House Action
NREW 2/13/24 DP 6-4-0-0
3
rd
Read 3/4/24 32-28-0
Prepared by Senate Research
March 19, 2024
RA/KP/slp