SB 1172
Initials EB/BSR Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: NREW DP 4-3-0-0 | 3
rd
Read 16-12-2-0
House: NREW DPA 6-4-0-0
SB 1172: physical availability credits; water supply
Sponsor: Senator Shope, LD 16
Caucus & COW
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) was 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 SB 1172
Initials EB/BSR Page 2 Caucus & COW
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 the three of the last seven 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 Arizona Department of Water Resources (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;
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; and
c) find that the projected use of the groundwater that is determined to be available for
assured water supply is consistent with achievement of the management goal
requirements of the AMA.
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) SB 1172
Initials EB/BSR Page 3 Caucus & COW
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)
12. Requires the ADWR Director to find:
a) the amount of groundwater calculated that is physically available for assured water
supply purposes; and
b) the projected us of groundwater that is determined to be available for assured water
supply purposes that is consistent with achievement of the management goal. (Sec. 2)
13. Makes technical changes. (Sec. 2)
Amendments
Committee on Natural Resources, Energy & Water
1. Modifies the conditions to use a physical availability credit.
2. Revises the amount of groundwater per acre that can be withdrawn and received
annually.
3. Modifies the ADWR Director's determination relating to the physical availability of an
assured water supply.
4. Eliminates the ability to use the balance of the physical availability credit anywhere
within the municipal provider's service area.
5. Establishes criteria for the ADWR Director to accept an analysis of assured water supply
as a valid demonstration of physical availability of groundwater to meet the estimated
demand of a proposed development and issue a physical availability credit based on the
analysis.
6. Requires the ADWR Director to revise administrative rules relating to extinguishment
credits.
7. Allows a holder of a physical availability credit to apply for a variance based on
alternative methodology to adjust projected demand for a subdivision.
8. Defines pertinent terms.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note