SB 1056
Initials JL/EB Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: GOV DP 5-3-0-0 | 3
rd
Read 15-11-4-0
House: JUD DPA/SE 6-3-0-0
SB 1056: municipalities; counties; fee increases; vote
S/E: groundwater replenishment; areas; member lands
Sponsor: Senator Petersen, LD 14
Caucus & COW
Summary of the Strike-Everything Amendment to SB 1064
Overview
Outlines a process for a municipal provider (provider) that applies for a new designation of
assured water supply in the Pinal active management area (AMA) to assume the
replenishment obligations of member service lands that are located within the provider's
service area.
History
The Assured and Adequate Water Supply Program requires a developer who plans to sell or
lease subdivided lands in an AMA to obtain a Certificate of Assured Water Supply from the
Director of the Arizona Department of Water Resources (ADWR) or obtain a commitment for
water service from a municipality or private water company with an assured water supply
designation. Otherwise, a municipality or county cannot approve the subdivision plat and the
sale or lease of the subdivided lands cannot be authorized. An assured water supply means:
1) sufficient groundwater, surface water or effluent of adequate quality will be legally,
physically and continuously available to meet proposed water needs for at least 100
years;
2) any projected groundwater use that is consistent with the AMA's management plan
and achieving its management goal; and
3) the applicant has demonstrated the financial capability to build the infrastructure
necessary to make water available for the proposed use (A.R.S. § 45-576).
The Central Arizona Groundwater Replenishment District (CAGRD) is a function of the
Central Arizona Project (CAP) that replenishes groundwater pumped in an AMA in which a
part of the CAP aqueduct is located. Membership in CAGRD is voluntary and provides a way
to comply with requirements of the assured water supply program. CAGRD members pay an
annual replenishment assessment according to the amount of excess groundwater delivered
to the member during a year. There are two types of CAGRD members:
1) member service areas that include the service area of a municipality or private water
company; and
2) member lands that include an individual subdivision or development (CAGRD)
(A.R.S. § 48-3771). SB 1056
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The parcel replenishment obligation is a requirement for groundwater replenishment,
calculated by multiplying the excess groundwater percentage of a member land by the total
amount of groundwater delivered to that land in a calendar year. (A.R.S. § 48-3701).
Provisions
1. Allows a provider that applies for a new designation of assured water supply in the Pinal
AMA that relies on a member service area agreement to elect for all parcels of member
land in the municipal service area to retain a replenishment obligation. (Sec. 1)
2. Requires CAGRD to replenish groundwater in an amount equal to the obligation
applicable to that parcel of member land. (Sec. 1)
3. Requires a provider, if the provider's service area contains member lands and the provider
applies for an assured water supply designation, to notify CAGRD and the ADWR
Director at the time of application whether the provider chooses to assume the member
land's replenishment obligation under the provider's designation of assured water supply
and member service agreement. (Sec. 1)
4. Specifies this legislation does not authorize new member lands to be enrolled within the
provider's service area after the service area is designated as having an assured water
supply. (Sec. 1)
5. Requires the assured water supply designation and the provider's member service area
agreement to specify that the parcels of member land retain the parcel replenishment
obligation for the lesser of either:
a) 10 years from the date of commencement of the first term of the designation; or
b) the first term of the designation. (Sec. 1)
6. Instructs a provider, on the lesser of the outlined conditions, to begin to assume a
percentage of the groundwater delivered to parcels of member land and any associated
parcel replenishment obligation and provide the information to CAGRD in the provider's
annual reports. (Sec. 1)
7. Allows a provider to assume at least 10% of the total reported groundwater delivered to
each parcel of member land in the first year of reporting. (Sec. 1)
8. Requires a provider, in each successive year, to assume at least an additional 10% so that
the provider assumes all reported groundwater delivered and parcel replenishment
obligation within 10 years and the parcels of member land have no further parcel
replenishment obligation. (Sec. 1)
9. Requires, after all groundwater deliveries from all parcels of member land are assumed,
a provider to cease submitting reports to CAGRD for parcels of member land while the
provider's assured water supply designation is still valid. (Sec. 1)
10. Allows any groundwater allowance or extinguishment credits associated with the member
lands assumed by the provider to be used as follows:
a) if the parcel replenishment obligation and reported groundwater delivered to the
member lands are entirely assumed on the initial assured water supply designation,
the remaining extinguishment credits or groundwater allowance associated with the
member lands may be used by the provider pursuant to a member service agreement;
or
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1056
Initials JL/EB Page 3 Caucus & COW
b) if the parcel replenishment obligation and reported groundwater delivered to the
member lands are assumed in stages, the provider may use the groundwater
allowance and extinguishment credits for the member lands in the same manner as
authorized in the applicable agreement and notice of municipal reporting
requirements if the groundwater is being reported as delivered to member lands. (Sec.
1)
11. Specifies if the parcel replenishment obligation and reported groundwater delivered to
the member lands are assumed in stages, any remaining extinguishment credits or
groundwater allowance may be used by the provider as authorized under the member
service area agreement. (Sec. 1)
12. Requires a provider that enters into a member service agreement as established by this
legislation to annually file a report with CAGRD and the ADWR Director that contains
the amount of groundwater delivered to member lands and the percentage of those
groundwater deliveries assumed by the provider. (Sec. 2)
13. Requires CAGRD to take into account any member service agreement as established by
this legislation when levying any annual replenishment assessment against member land
and any annual replenishment tax against a municipal provider. (Sec. 3, 5)
14. Requires a provider to publish a resolution once a week in the counties where the service
area is located that declares the provider has elected to have parcels of member land
within the provider's member service area retain the replenishment obligations. (Sec. 4)
15. Requires ADWR, by January 1, 2025, to amend rules for the incorporation of
extinguishment credits and groundwater associated with member lands in an assured
water supply designation. (Sec. 6)
16. Makes technical changes. (Sec. 1)