Assigned to NR FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session FACT SHEET FOR H.B. 2203 historical water use; subsequent AMA Purpose Retroactive to August 30, 2022, modifies the time frames, from 5 years to 10 years, prior to a designation of a subsequent active management area (AMA) or an AMA, that are used to determine the amount of groundwater a person has the right to withdraw for irrigation and non- irrigation groundwater rights. Background Irrigation Grandfathered Rights In an initial AMA, only acres of land that were legally irrigated at any time from January 1, 1975, through January 1, 1980, that are capable of being irrigated, that have not been retired from irrigation for a non-irrigation use and for which the irrigation grandfathered right (IFGR) has not been conveyed for a non-irrigation use may be irrigated with any groundwater, effluent, diffused water on the surface or surface water. In a subsequent AMA, only acres of land that were legally irrigated at any time during the five years preceding the date of the notice of the initiation of designation procedures or the call for the election, that are capable of being irrigated, that have not been retired from irrigation for a non-irrigation use and for which the IGFR has not been conveyed for a non-irrigation use may be irrigated with groundwater, effluent, diffused water on the surface or surface water (A.R.S. § 45-452). Type 1 Non-Irrigation Grandfathered Rights In a subsequent AMA, a person who owns land that was legally entitled to be irrigated with groundwater and retires such land from irrigation before the date of the designation of the AMA in anticipation of a non-irrigation use has the right to withdraw from or receive for such land the lesser of three acre-feet of groundwater per acre per year or the average annual amount of groundwater that was used per acre during the five years preceding the time the land was retired on showing that: 1) the land has been held under the same ownership since it was retired; and 2) a development plan for the proposed non-irrigation use existed at the time the land was retired (A.R.S. § 45-463). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Allows an irrigation user to irrigate within the proposed AMA only acres of land that were legally irrigated at any time during the 10 years, rather than 5 years, preceding the date of the notice of the initiation of designation procedures or the call for the election. FACT SHEET S.B. 2203 Page 2 2. Stipulates that in a subsequent AMA, only acres of land that were legally irrigated at any time during the 10 years, rather than 5 years, preceding the date of the notice of the initiation procedures or call for the election, that are capable of being irrigated, that have not been retired from irrigation for a non-irrigation use and for which the irrigation grandfathered right has not been conveyed for a non-irrigation use, may be irrigated with groundwater, effluent, diffused water on the surface or surface water. Non-Irrigation Grandfathered Rights 3. Grants, in a subsequent AMA, a person who owns land that was legally entitled to be irrigated with groundwater and retires such land from irrigation before the date of the designation of the AMA in anticipation of non-irrigation use, the right to withdraw from or receive for such land the average annual amount of groundwater that was used per acre during the 10 years, rather than 5 years, preceding the time the land was retired on meeting outlined conditions. 4. Grants a person who holds a certificate of exemption and who owns land in an AMA from which groundwater was being legally withdrawn and used for a non-irrigation purpose as of the date of the designation of the AMA, the right to annually withdraw the maximum amount of water legally withdrawn from such land in any one of the 10 years, rather than 5 years, preceding the date of the designation of the AMA, if the amount is greater than the amount of groundwater established in proceedings on the application for the certificate of exemption. 5. Grants a person who does not hold a certificate of exemption and who owns land in an AMA from which groundwater was being legally withdrawn and used for a non-irrigation purpose as of the date of the designation of the AMA, the right to annually withdraw the maximum amount of water legally withdrawn from such land in any one of the 10 years, rather than 5 years, preceding the date of the designation of the AMA. Miscellaneous 6. Modifies the definition of service area of an irrigation district. 7. Makes technical and conforming changes. 8. Becomes effective on the general effective date, retroactive to August 30, 2022. House Action NREW 1/28/25 DP 5-4-0-1 3 rd Read 2/12/25 32-27-1 Prepared by Senate Research February 28, 2025 SB/slp