Arizona 2025 Regular Session

Arizona House Bill HB2203 Compare Versions

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1-Senate Engrossed House Bill historical water use; subsequent AMA State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2203 AN ACT amending sections 45-402, 45-416, 45-452, 45-463, 45-464, 45-465 and 45-476, Arizona Revised Statutes; RELATING to the groundwater code. (TEXT OF BILL BEGINS ON NEXT PAGE)
1+House Engrossed historical water use; subsequent AMA State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2203 AN ACT amending sections 45-402, 45-416, 45-452, 45-463, 45-464 and 45-476, Arizona Revised Statutes; RELATING to the groundwater code. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9-Senate Engrossed House Bill historical water use; subsequent AMA
9+House Engrossed historical water use; subsequent AMA
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57-amending sections 45-402, 45-416, 45-452, 45-463, 45-464, 45-465 and 45-476, Arizona Revised Statutes; RELATING to the groundwater code.
57+amending sections 45-402, 45-416, 45-452, 45-463, 45-464 and 45-476, Arizona Revised Statutes; RELATING to the groundwater code.
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69- Be it enacted by the Legislature of the State of Arizona: Section 1. Section 45-402, Arizona Revised Statutes, is amended to read: START_STATUTE45-402. Definitions In this chapter, unless the context otherwise requires: 1. "Accounting period" means the calendar year, except such other twelve-month period as may be otherwise agreed on by the director and the owner of a farm or a district on behalf of its landowners. 2. "Active management area" means a geographical geographic area that has been designated pursuant to article 2 of this chapter as requiring active management of groundwater or, in the case of the Santa Cruz active management area, active management of any water, other than stored water, withdrawn from a well. 3. "Animal industry use" means the production, growing and feeding of livestock, range livestock or poultry, as such those terms are defined in section 3-1201. Animal industry use is included in the term and general treatment of industry in this chapter, unless specifically provided otherwise. 4. "City" or "town" means a city or town incorporated or chartered under the constitution and laws of this state. 5. "Conservation district" means a multi-county water conservation district established under title 48, chapter 22. 6. "Convey" means to transfer the ownership of a grandfathered right from one person to another. 7. "Date of the designation of the active management area" means: (a) With respect to an initial active management area, June 12, 1980. (b) With respect to a subsequent active management area, the date on which the director's order designating the active management area becomes effective as provided in section 45-414 or the date on which the final results of an election approving the establishment of the active management area pursuant to section 45-415 are certified by the board of supervisors of the county or counties in which the active management area is located. 8. "Exempt well" means a well that has a pump with a maximum capacity of not more than thirty-five gallons per minute and that is used to withdraw groundwater pursuant to section 45-454. 9. "Expanded animal industry use" means increased water use by an animal industrial enterprise on the land in use by the enterprise on June 12, 1980 or on immediately adjoining land, excluding irrigation uses. 10. "Farm" means an area of irrigated land that is under the same ownership, that is served by a water distribution system common to the irrigated land and to which can be applied common conservation, water measurement and water accounting procedures. 11. "Farm unit" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, one or more farms that are irrigated with groundwater and that are contiguous or in proximity to each other with similar soil conditions, crops and cropping patterns. (b) With respect to the Santa Cruz active management area, one or more farms that are irrigated with water, other than stored water, withdrawn from a well and that are contiguous or in proximity to each other with similar soil conditions, crops and cropping patterns. 12. "Grandfathered right" means a right to withdraw and use groundwater pursuant to article 5 of this chapter based on the fact of lawful withdrawals and use of groundwater before the date of the designation of an active management area. 13. "Groundwater basin" means an area that, as nearly as known facts allow as determined by the director pursuant to this chapter, may be designated so as to enclose a relatively hydrologically distinct body or related bodies of groundwater, which shall be described horizontally by surface description. 14. "Groundwater replenishment district" or "replenishment district" means a district that is established pursuant to title 48, chapter 27. 15. "Groundwater withdrawal permit" means a permit issued by the director pursuant to article 7 of this chapter. 16. "Initial active management area" means the Phoenix, Prescott or Pinal active management area established by section 45-411, the Tucson active management area established by section 45-411 and modified by section 45-411.02 and the Santa Cruz active management area established by section 45-411.03. 17. "Integrated farming operation" means: (a) With respect to land within an irrigation non-expansion area, more than ten acres of land that are contiguous or in close proximity, that may be irrigated pursuant to section 45-437, that are not under the same ownership and that are farmed as a single farming operation. (b) With respect to land within an active management area, two or more farms that are contiguous or in close proximity, that collectively have more than ten irrigation acres and that are farmed as a single farming operation. 18. "Irrigate" means to apply water to 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, as such those terms are defined in section 3-1201. 19. "Irrigation acre" means an acre of land, as determined in section 45-465, subsection B, to which an irrigation grandfathered right is appurtenant. 20. "Irrigation district" means a political subdivision, however designated, established pursuant to title 48, chapter 17 or 19. 21. "Irrigation grandfathered right" means a grandfathered right determined pursuant to section 45-465. 22. "Irrigation non-expansion area" means a geographical geographic area that has been designated pursuant to article 3 of this chapter as having insufficient groundwater to provide a reasonably safe supply for the irrigation of the cultivated lands at the current rate of withdrawal. 23. "Irrigation use" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, 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, as such those terms are defined in section 3-1201. (b) With respect to the Santa Cruz active management area, the use of water, other than stored water, withdrawn from a well 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, as such those terms are defined in section 3-1201. 24. "Irrigation water duty" or "water duty" means the amount of water in acre-feet per acre that is reasonable to apply to irrigated land in a farm unit during the accounting period, as determined by the director pursuant to sections 45-564 through 45-568 or as prescribed in section 45-483. 25. "Member land" means real property that qualifies as a member land of a conservation district as provided by title 48, chapter 22. 26. "Member service area" means the service area of a city, town or private water company that qualifies as a member service area of a conservation district as provided by title 48, chapter 22. 27. "Non-irrigation grandfathered right" means a grandfathered right determined pursuant to section 45-463, 45-464, 45-469 or 45-472. 28. "Non-irrigation use" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, a use of groundwater other than an irrigation use. (b) With respect to the Santa Cruz active management area, a use of water, other than stored water, withdrawn from a well, other than an irrigation use. 29. "Person" means an individual, public or private corporation, company, partnership, firm, association, society, estate or trust, any other private organization or enterprise, the United States, any state, territory or country or a governmental entity, political subdivision or municipal corporation organized under or subject to the constitution and laws of this state. 30. "Private water company" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, any entity that distributes or sells groundwater, except a political subdivision or an entity that is established pursuant to title 48 and that is not regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity. A city or town is not a private water company. (b) With respect to the Santa Cruz active management area, any entity that distributes or sells water, other than stored water, withdrawn from a well, except a political subdivision or an entity that is established pursuant to title 48 and that is not regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity. A city or town is not a private water company. 31. "Service area" means: (a) With respect to a city or town, the area of land actually being served water, for a non-irrigation use, by the city or town plus: (i) Additions to such area that contain an operating distribution system owned by the city or town primarily for the delivery of water for a non-irrigation use. (ii) The service area of a city, town or private water company that obtains its water from the city pursuant to a contract entered into before the date of the designation of the active management area. (b) With respect to a private water company, the area of land of the private water company actually being served water, for a non-irrigation use, by the private water company plus additions to such area that contain an operating distribution system owned by the private water company primarily for the delivery of water for a non-irrigation use. 32. "Service area of an irrigation district" means: (a) With respect to an irrigation district that was engaged in the withdrawal, delivery and distribution of groundwater as of the date of the designation of the active management area, the area of land within the boundaries of the irrigation district actually being served water by the irrigation district at any time during the five ten years preceding the date of the designation of the active management area plus any areas as of the date of the designation of the active management area within the boundaries of the irrigation district that contain an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district. The service area may be modified pursuant to section 45-494.01. (b) With respect to an irrigation district that was not engaged in the withdrawal, delivery and distribution of groundwater as of the date of the designation of the active management area: (i) The acres of member lands within the boundaries of the irrigation district that were legally irrigated at any time from January 1, 1975 through January 1, 1980 for initial active management areas or during the five ten years preceding the date of the designation of the active management area for subsequent active management areas. (ii) Any areas of land that contain an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district for the withdrawal, delivery and distribution of water, except that additional areas containing an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district may not be added after December 31, 2027. 33. "Stored water" means water that is stored underground for the purpose of recovery pursuant to a permit issued under chapter 3.1 of this title. 34. "Subbasin" means an area that, as nearly as known facts allow as determined by the director pursuant to this chapter, may be designated so as to enclose a relatively hydrologically distinct body of groundwater within a groundwater basin, which shall be described horizontally by surface description. 35. "Subsequent active management area" means an active management area established after June 12, 1980 pursuant to article 2 of this chapter. 36. "Subsidence" means the settling or lowering of the surface of land that results from the withdrawal of groundwater. 37. "Transportation" means the movement of groundwater from the point of withdrawal to the point of use. 38. "Type 1 non-irrigation grandfathered right" means a non-irrigation grandfathered right associated with retired irrigated land and determined pursuant to section 45-463, 45-469 or 45-472. 39. "Type 2 non-irrigation grandfathered right" means a non-irrigation grandfathered right not associated with retired irrigated land and determined pursuant to section 45-464. 40. "Water district" means an active management area water district that is established under title 48, chapter 28 and that has adopted an ordinance or resolution to undertake water district groundwater replenishment obligations as defined and used in title 48, chapter 28, article 7. 41. "Water district member land" means real property that qualifies as water district member land of a water district as provided by title 48, chapter 28. 42. "Water district member service area" means the service area of the city, town or private water company that qualifies as a water district member service area of a water district as provided by title 48, chapter 28. 43. "Well" means a man-made opening in the earth through which water may be withdrawn or obtained from beneath the surface of the earth except as provided in section 45-591.01.END_STATUTE Sec. 2. Section 45-416, Arizona Revised Statutes, is amended to read: START_STATUTE45-416. Limitation on number of irrigated acres A. If the director initiates the procedure for designating a subsequent active management area or the board of supervisors calls an election to establish an active management area, an irrigation user may irrigate within the proposed active management area only acres of land which that were legally irrigated at any time during the five ten years preceding the date of the notice of the initiation of designation procedures or the call for the election. B. The limitation on the acres which that may be irrigated shall continue in effect until the director makes a final determination pursuant to section 45-414 or the final results of an election to establish an active management area pursuant to section 45-415 are certified by the board of supervisors of the county or counties in which the proposed subsequent active management area is located. END_STATUTE Sec. 3. Section 45-452, Arizona Revised Statutes, is amended to read: START_STATUTE45-452. No new irrigated acreage in active management areas; central Arizona project water; exemption A. In an initial active management area, except as provided in subsections B, H, I and J of this section and sections 45-172, 45-465.01 and 45-465.02, only acres of land which that were legally irrigated at any time from January 1, 1975 through January 1, 1980, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 and for which the irrigation grandfathered right has not been conveyed for a non-irrigation use, may be irrigated with any groundwater, effluent, diffused water on the surface or surface water, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before June 12, 1980. In an initial active management area, land which that was not irrigated at any time from January 1, 1975 through January 1, 1980 is deemed to have been in irrigation if the director finds that either of the following applies: 1. In areas of an initial active management area not designated as critical groundwater areas under prior statutory law prior to before the date of the designation of the active management area, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced prior to before the date of the designation of the active management area. 2. In areas of an initial active management area which that were designated as critical groundwater areas under prior statutory law, land is deemed to have been in irrigation if substantial capital investment has been made in the twelve months before June 12, 1980 for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under prior statutory law. B. In an initial active management area, a person who owns acres of land which that may be irrigated pursuant to subsection A of this section may apply to the director to permanently retire all or a portion of such acres from irrigation and to irrigate conjunctively with central Arizona project water the same number of substitute acres. The director may approve the substitution of acres if the director determines that all of the following exist: 1. The substitute acres were legally irrigated during the period of September 30, 1958 to September 30, 1968, or such other period as the United States secretary of the interior may designate. 2. The acres to be retired from irrigation and the substitute acres are located outside of the exterior boundaries of the service area of a city, town or private water company and such acres are located within the same irrigation district and the same sub-basin subbasin. 3. The substitution of acres is necessary to enable the irrigation district within which the acres are located to more efficiently deliver central Arizona project water. 4. Central Arizona project water available to the irrigation district within which the acres are located will be adequate to supply the substitute acres. 5. The substitution of acres will benefit the management of the active management area in which the acres are located. C. Any acres permanently retired from irrigation pursuant to subsection B of this section relinquish their irrigation grandfathered rights, and such rights are deemed to be appurtenant to the substitute acres. Groundwater withdrawn or received for the irrigation of the substitute acres pursuant to an irrigation grandfathered right shall be reduced by the amount of central Arizona project water received for such acres. D. The service area of the irrigation district in which the acres are located shall be modified to permanently delete the acres permanently retired from irrigation and include the substitute acres. E. If a person retires land from irrigation pursuant to subsection B of this section, groundwater shall not be withdrawn from such retired land for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within the service area of such city, town or private water company. F. The director may reverse the substitution of irrigated acres as provided by subsections B through E of this section under the following conditions and procedures: 1. Title to the retired acres and substitute acres has reverted involuntarily, or voluntarily in lieu of foreclosure or forfeiture, to a previous owner or owners of the retired and substitute acres. 2. The current owner of the retired acres must apply to the director in writing stating: (a) The history of the original substitution of acres under subsections B through E of this section. (b) The circumstances regarding the reversion of title to the current owner or owners. (c) Why reversal of the substitution of acres is necessary. 3. The director must find that reversing the substitution of acres: (a) Will benefit the management of the active management area. (b) Is necessary to prevent unreasonable hardship to the current owner of the retired acres. (c) Will not cause unreasonable hardship to the current owner of the substitute acres, if owned separately from the retired acres. 4. If the director decides to reverse the substitution of acres: (a) The originally retired irrigation acres regain their original irrigation grandfathered rights, but groundwater withdrawn or received for the irrigation of those acres pursuant to an irrigation grandfathered right shall be reduced by any amount of central Arizona project water received for such acres. (b) The substitute acres relinquish all irrigation grandfathered rights that were transferred to them under the original substitution of acres. (c) The service area of the irrigation district in which the acres are located shall be modified to delete the substitute acres and include the originally retired irrigation acres. (d) Groundwater may not thereafter be withdrawn from the substitute acres for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within its service area. G. In a subsequent active management area, except as provided in subsections H, I and J of this section or section 45-172, only acres of land which that were legally irrigated at any time during the five ten years preceding the date of the notice of the initiation of designation procedures or the call for the election, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 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, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before the date of the notice or the call. In a subsequent active management area, land is deemed to have been in irrigation if the director finds that either of the following applies: 1. In areas of a subsequent active management area which that were not irrigation non-expansion areas, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced before the date of the notice of the initiation of designation procedures or the call for the election. 2. In areas of a subsequent active management area which that were irrigation non-expansion areas, land is deemed to have been in irrigation if the director finds that substantial capital investment has been made in the twelve months before the date of the notice of the initiation of designation procedures or the call for the election, for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under section 45-437. H. In an active management area, a state university engaged in the teaching and study of and experimentation in the science of agriculture may irrigate not more than three hundred twenty acres of land for such purposes with not more than five acre-feet of groundwater per acre per year. Water produced from any well pursuant to this subsection shall not be leased, sold or transported off the irrigated land operated by the state university. The right to withdraw and use groundwater pursuant to this subsection does not require a withdrawal permit, is not a grandfathered right, shall not give rise to a grandfathered right and may not be conveyed to any other user. I. In an active management area, a correctional facility under the jurisdiction of the state department of corrections may irrigate with groundwater, effluent, diffused water on the surface or surface water up to a total of ten acres of land that otherwise may not be irrigated pursuant to subsection A or G of this section if the irrigation is for the purpose of producing plants or parts of plants for consumption by inmates at the correctional facility as part of a prisoner work program and if the correctional facility notifies the director of water resources in writing of the location of the acres of land to be irrigated prior to before their irrigation. The actual number of acres of land that a correctional facility may irrigate pursuant to this subsection shall be calculated by subtracting the number of acres of land the correctional facility may already irrigate under subsection A or G of this section from ten. The amount of water that a correctional facility may use during a year to irrigate acres of land pursuant to this subsection shall not exceed an amount calculated by multiplying the number of acres of land that are actually irrigated by the correctional facility during the year pursuant to this subsection, by four and one-half acre-feet of water. The right to withdraw and use groundwater pursuant to this subsection does not require an irrigation grandfathered right, is not a grandfathered right, shall not give rise to a grandfathered right, and may not be conveyed to any other user. J. During the second management period, acres of land in an active management area which that have been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 or for which the irrigation grandfathered right has been conveyed for a non-irrigation use pursuant to section 45-472 may be irrigated with effluent, other than effluent recovered pursuant to a recovery well permit issued under chapter 3.1 of this title or effluent given or received pursuant to a water exchange under chapter 4 of this title, and shall retain its appurtenant type 1 non-irrigation grandfathered right where the following conditions are met: 1. The land to be irrigated lies within the boundaries of an incorporated city or town. 2. The governing body or manager of the city or town has consented in writing to the irrigation of the land with effluent. 3. The effluent proposed for irrigation of the land cannot be reasonably beneficially used otherwise. 4. The owner of the land gives written notice to the director of intention to irrigate the land with effluent and receives written approval from the director before commencing irrigation. The notice shall set forth the legal description of the land to be irrigated, the certificate number of the type 1 non-irrigation grandfathered right appurtenant to the land, the source of effluent and the reasons the effluent cannot be reasonably beneficially used otherwise, and shall be accompanied by a copy of the written consent of the city or town in which the land to be irrigated is located. K. A person who may irrigate with effluent land to which a type 1 non-irrigation right is appurtenant under subsection J of this section may relinquish the right to irrigate all or a portion of the land by giving the director written notice that the person relinquishes the right. The notice shall include a legal description of the acres to be relinquished. The relinquishment is effective upon on receipt of the notice by the director. L. If a person who may irrigate with effluent land to which a type 1 non-irrigation grandfathered right is appurtenant under subsection J of this section conveys all or a portion of the land to a successor owner, the successor owner shall not irrigate the land prior to before providing written notification to the director of the successor owner's intention to irrigate the land and receiving approval from the director pursuant to subsection J of this section. M. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. If an administrative hearing is held, it shall be conducted in the active management area in which the use is located. END_STATUTE Sec. 4. Section 45-463, Arizona Revised Statutes, is amended to read: START_STATUTE45-463. Type 1 non-irrigation grandfathered right associated with retired irrigated land; appurtenancy; ownership A. In an initial active management area, a person who owns land which that was legally entitled to be irrigated with groundwater and who retired such land from irrigation after January 1, 1965 but prior to before the date of the designation of the active management area in anticipation of a non-irrigation use has the right to withdraw from or receive for such land three acre-feet of groundwater per acre per year upon on showing that: 1. The land has been held under the same ownership since it was retired. 2. A development plan for the proposed non-irrigation use existed at the time the land was retired. B. In a subsequent active management area, a person who owns land which that was legally entitled to be irrigated with groundwater and retires such land from irrigation prior to before the date of the designation of the active management area 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 which that was used per acre during the five ten years preceding the time the land was retired upon on showing that: 1. The land has been held under the same ownership since it was retired. 2. A development plan for the proposed non-irrigation use existed at the time the land was retired and is filed with the director within ninety days after the active management area is designated. C. The development plan requirements of this section are deemed fulfilled if the land retired from irrigation has been described in an application for a certificate of exemption or if the land retired from irrigation is owned in conjunction with non-irrigation uses existing or for which substantial capital commitments have been incurred for the non-irrigation development of such land as of the date of the designation of the active management area. D. The right to withdraw or receive groundwater pursuant to this section is a non-irrigation grandfathered right associated with retired irrigated land, or a type 1 non-irrigation grandfathered right. E. A type 1 non-irrigation grandfathered right is appurtenant to the acre of retired irrigated land associated with the right, is owned by the owner of the land to which the right is appurtenant and may be leased with the land. F. At the request of a city or town in the Tucson active management area that holds a type 1 non-irrigation grandfathered right under subsection A of this section, the director, in determining whether to designate or redesignate the city or town as having an assured water supply pursuant to section 45-576, shall include four and one-half acre-feet of groundwater for each acre of retired irrigated land to which the right is appurtenant, multiplied by the number of years between the year of retirement and the year of the request, minus the quantity of groundwater withdrawn from the land between June 12, 1980 and the year of the request, except that: 1. No groundwater may be included for any acre of retired irrigated land for any year after the land is developed for any municipal or industrial use. 2. The amount of groundwater that is included under this subsection shall not exceed four and one-half acre-feet for each acre of retired irrigated land to which the right is appurtenant multiplied by the number of years between the year of retirement and December 31, 2025 minus the quantity of groundwater withdrawn from the land between June 12, 1980 and December 31, 2025. 3. The net amount of groundwater included under this subsection shall not exceed two million acre-feet. 4. The city or town, before making the request of the director, shall extinguish any irrigation grandfathered rights or type 1 non-irrigation grandfathered rights held by the city or town and appurtenant to land acquired or contracted for by the city or town after June 12, 1980 in the same sub-basin subbasin. G. In determining whether to designate a city or town as having an assured water supply pursuant to section 45-576, the director shall not consider the exercise of the right to withdraw groundwater under subsection F of this section to be the withdrawal of groundwater available from natural or artificial groundwater recharge. END_STATUTE Sec. 5. Section 45-464, Arizona Revised Statutes, is amended to read: START_STATUTE45-464. Type 2 non-irrigation grandfathered right not associated with retired irrigated land; determination of amount; ownership; definition A. In an active management area, a person who owns land from which groundwater was being legally withdrawn and used for a non-irrigation purpose as of the date of the designation of the active management area has the right to withdraw annually: 1. If the person holds a certificate of exemption, the greater of: (a) The amount of groundwater established in proceedings on the application for certificate of exemption, subject to any modification as a result of a finding on appeal of a factual mistake by the state land department or Arizona water commission in computing the amount of the authorized withdrawal, less the amount of any right obtained by the person pursuant to section 45-463. (b) The maximum amount of groundwater legally withdrawn from such land and used by the person in any one of the five ten years preceding the date of the designation of the active management area, less the amount of any right obtained by the person pursuant to section 45-463. 2. If the person does not hold a certificate of exemption, the maximum amount of groundwater legally withdrawn from such land and used by the person withdrawing the groundwater in any one of the five ten years preceding the date of the designation of the active management area, less the amount of any right that is obtained pursuant to section 45-463 by the person withdrawing groundwater from such land which and that has not been subtracted by the person withdrawing the groundwater in calculating the amount of another right pursuant to this section. B. If the calculation in subsection A of this section results in an amount greater than zero, that amount is a grandfathered right in addition to any right obtained pursuant to section 45-463. C. For the purposes of this section, "person" includes: 1. A city, town or private water company which that owns land outside of the service area of such city, town or private water company from which groundwater was being legally withdrawn for a non-irrigation use as of the date of the designation of the active management area. 2. A city, town or private water company withdrawing groundwater from within its service area pursuant to a certificate of exemption. 3. Any other non-irrigation user. D. If a person has been using groundwater for less than one year during the twelve months immediately preceding the date of the designation of the active management area, the amount of the grandfathered right pursuant to this section is the annual amount determined by the director to be reasonable for a full year to meet the requirements for a facility owned by such person in existence as of the date of the designation of the active management area. E. If a person has received a certificate of environmental compatibility pursuant to title 40, chapter 2, article 6.2 for the construction of an electrical generating facility within a subsequent active management area for which expenditures or financial commitments for land acquisition, water development, materials, construction or engineering in excess of five hundred thousand dollars $500,000 have been made before the date of the notice of the initiation of designation procedures or the call for the election for the area, the amount of the grandfathered right pursuant to this section is the annual amount determined by the director to be reasonable to meet the operational requirements for the facility for a full year. F. The right to withdraw groundwater pursuant to this section is a non-irrigation grandfathered right not associated with retired irrigated land, or a type 2 non-irrigation grandfathered right. G. A type 2 non-irrigation grandfathered right may be leased. Except as provided in subsection H of this section, the owner or lessee of a type 2 non-irrigation grandfathered right may withdraw groundwater pursuant to the right only from a location within the same active management area in which the certificate of grandfathered right is issued. H. Beginning July 1, 1994, the holder of a type 2 non-irrigation grandfathered right issued in the Tucson active management area prior to before July 1, 1994, may withdraw groundwater pursuant to the right only from a location within the same active management area in which the well or wells listed on the certificate of grandfathered right on July 1, 1994, are located. If no well is listed on the certificate of grandfathered right on July 1, 1994, the holder of the right may withdraw groundwater pursuant to the right only from a location within the same active management area in which the land from which the originating withdrawals were made is located. For the purposes of this subsection, the term "originating withdrawals" means the withdrawals of groundwater on which the issuance of a type 2 non-irrigation grandfathered right was based. I. If the user of a type 2 non-irrigation grandfathered right is different from the owner of the right, either the owner, or the user of the right on behalf of the owner, may apply for a certificate of grandfathered right pursuant to section 45-476. END_STATUTE Sec. 6. Section 45-465, Arizona Revised Statutes, is amended to read: START_STATUTE45-465. Irrigation grandfathered right; determination of acres entitled to and amount; appurtenancy A. In an active management area, a person who owns land which that was legally irrigated in whole or in part with groundwater at any time during the five years preceding January 1, 1980 for initial active management areas or who owned land that was legally irrigated in whole or in part with groundwater at any time during the ten years preceding the date of the notice of the initiation of designation procedures or the call for the election for subsequent active management areas, which that is capable of being irrigated and which has not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 has the right to use groundwater for the irrigation of such land as determined pursuant to subsections B and C of this section. B. Except as provided in subsection C of this section, the director shall compute the maximum amount of groundwater which may be used pursuant to this section as follows: 1. Determine the farm units, as defined in section 45-402, within the active management area. 2. Determine the irrigation water duty, as defined in section 45-402, for each farm unit in an active management area, pursuant to sections 45-564 through 45-568. 3. Determine the water duty acres for each farm within the farm unit. The water duty acres are the highest number of acres in the farm, taking land rotation into account, which that were legally irrigated during any one year in the five years preceding January 1, 1980 for initial active management areas or THAT were legally irrigated at any time during the ten years preceding the date of the notice of the initiation of designation procedures or the call for the election for subsequent active management areas. 4. Determine the irrigation acres for each farm within the farm unit. The irrigation acres are the acres in the farm which that were legally irrigated at any time during the five years preceding January 1, 1980 for initial active management areas or THAT were legally irrigated at any time during the ten years preceding the date of the notice of the initiation of designation procedures or the call for the election for subsequent active management areas, which that are capable of being irrigated and which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469. 5. Multiply the water duty acres for each farm within the farm unit by the irrigation water duty for the farm unit and divide that amount by the number of irrigation acres in the farm. The result shall be the maximum amount of groundwater which that may be used per year for the irrigation of each irrigation acre in the farm. If the farm is located in an active management area other than the Santa Cruz active management area and is irrigated solely with groundwater, the amount of groundwater used by the farm for irrigation shall be accounted for pursuant to section 45-467, subsection C. If a farm is located in an active management area other than the Santa Cruz active management area and is irrigated with a combination of surface water and groundwater, the amount of groundwater used by the farm for irrigation shall be accounted for pursuant to section 45-467, subsection D. If a farm is located in the Santa Cruz active management area, the amount of water, other than stored water, withdrawn from a well and used by the farm for irrigation purposes shall be accounted for pursuant to section 45-467, subsection E or F. C. A person who owns land described in subsection A of this section and whose water use on the land is regulated under a best management practices program that is adopted by the director pursuant to section 45-566.02, subsection F, section 45-567.02, subsection G or section 45-568.02, subsection G: 1. Has the right to use groundwater for an irrigation use on the irrigation acres within that land as those acres are determined pursuant to subsection B, paragraph 4 of this section. 2. Is exempt from the provisions of subsection B of this section with respect to that land. D. The right to use groundwater pursuant to this section for the irrigation of an irrigation acre is an irrigation grandfathered right and is appurtenant to that acre. An irrigation grandfathered right is owned by the owner of the land to which it is appurtenant and may be leased for an irrigation use with the land to which it is appurtenant. E. A person who owns or leases irrigation acres may use the total amount of groundwater allowed by the irrigation grandfathered right for such acres for the irrigation of all or a portion of such acres. F. If the irrigation water duty for the farm unit in which an irrigation acre is located is reduced by the director pursuant to article 9 of this chapter, the amount of groundwater which may be used for the irrigation of such acre pursuant to the irrigation grandfathered right under subsection B of this section is reduced accordingly. G. For the purposes of this chapter, the amount of groundwater which may be used or is used is the amount of groundwater withdrawn by the groundwater user, measured at the point of withdrawal, and the amount of groundwater received by the groundwater user from an irrigation district or other source.END_STATUTE Sec. 7. Section 45-476, Arizona Revised Statutes, is amended to read: START_STATUTE45-476. Application for certificate of grandfathered right A. Except as provided in section 45-476.01, a person claiming the right to withdraw or receive and use groundwater pursuant to a grandfathered right shall file an application for a certificate of grandfathered right with the department not later than fifteen months after the date of the designation of the active management area on a form provided by the department. B. The application for a certificate of grandfathered right not based upon on prior proceedings on a certificate of exemption shall include the following: 1. The name and mailing address of the applicant. 2. The name of the active management area within which the withdrawal of groundwater pursuant to the claimed grandfathered right is being or has been made. 3. If the application is for a type 1 non-irrigation grandfathered right: (a) The legal description and a map of the retired irrigated land in respect of which the right is claimed. (b) The date when the irrigated land was retired. (c) Such evidence as the director shall require that the retired irrigated land has been held under the same ownership since it was retired and that a development plan for the proposed non-irrigation use existed at the time the land was retired. (d) If in a subsequent active management area, the amount of groundwater used per acre for the retired irrigated land each year during the five ten years preceding the time the land was retired. (e) Whether the well from which the water will be withdrawn is located in a groundwater replenishment district. 4. If the application is for a type 2 non-irrigation grandfathered right: (a) The maximum amount of groundwater legally withdrawn from land owned by the applicant and used in any one year during the five ten years preceding the date of the designation of the active management area. (b) If the person withdrawing groundwater from the land owned by the applicant has made an application for a type 1 non-irrigation grandfathered right, a copy of the application. 5. If the application is for an irrigation grandfathered right: (a) The legal description and a map of all land owned by the applicant which THAT was legally irrigated at any time during the five years preceding January 1, 1980 for initial active management areas or the date of the designation of the active management area for subsequent active management areas and the highest number of acres legally irrigated with groundwater at one time in any one year during the five-year period. (b) The type of crops grown on such land and the cropping patterns used during the five-year period. (c) The irrigation methods and devices currently being used in the irrigation of such land. 6. The location of each well from which groundwater is being or has been withdrawn by the applicant to irrigate such land. 7. The sworn statement that the information contained in the application is true and correct to the best knowledge and belief of the applicant. 8. Any other information the director may require. C. A person or his the person's successor claiming the right to use groundwater pursuant to a grandfathered right, described in whole or in part by a certificate of exemption, shall file an application for a certificate of grandfathered right as provided in subsection D of this section and shall automatically be entitled to a certificate or certificates of grandfathered right for the portion of the grandfathered right claimed which is evidenced by the certificate of exemption or established by the proceedings on the certificate of exemption. Notice of the application is not required and hearings shall not be held. If the applicant claims grandfathered rights in addition to the amount of use described in the certificate of exemption, application for such additional amount shall be made pursuant to subsection B of this section, and such application is subject to the notice, objection and hearing provisions applicable to applications made pursuant to that subsection. D. The application for a certificate of grandfathered right based upon on prior proceedings upon on an application for a certificate of exemption shall include the following: 1. The name and mailing address of the applicant. 2. The name of the active management area within which the withdrawal of groundwater pursuant to the claimed grandfathered right is being or has been made. 3. The total amount of groundwater to be withdrawn annually under the certificate of exemption. 4. The number of retired irrigated acres described in the application for a certificate of exemption. 5. Such evidence as the director shall require that the retired irrigated land has been held under the same ownership since it was retired. 6. The number of the certificate of exemption and a copy of the certificate of exemption. 7. The sworn statement that the information contained in the application is true and correct to the best knowledge and belief of the applicant. 8. Any other information the director may require. END_STATUTE Sec. 8. Retroactivity This act applies retroactively to from and after August 29, 2022.
69+ Be it enacted by the Legislature of the State of Arizona: Section 1. Section 45-402, Arizona Revised Statutes, is amended to read: START_STATUTE45-402. Definitions In this chapter, unless the context otherwise requires: 1. "Accounting period" means the calendar year, except such other twelve-month period as may be otherwise agreed on by the director and the owner of a farm or a district on behalf of its landowners. 2. "Active management area" means a geographical geographic area that has been designated pursuant to article 2 of this chapter as requiring active management of groundwater or, in the case of the Santa Cruz active management area, active management of any water, other than stored water, withdrawn from a well. 3. "Animal industry use" means the production, growing and feeding of livestock, range livestock or poultry, as such those terms are defined in section 3-1201. Animal industry use is included in the term and general treatment of industry in this chapter, unless specifically provided otherwise. 4. "City" or "town" means a city or town incorporated or chartered under the constitution and laws of this state. 5. "Conservation district" means a multi-county water conservation district established under title 48, chapter 22. 6. "Convey" means to transfer the ownership of a grandfathered right from one person to another. 7. "Date of the designation of the active management area" means: (a) With respect to an initial active management area, June 12, 1980. (b) With respect to a subsequent active management area, the date on which the director's order designating the active management area becomes effective as provided in section 45-414 or the date on which the final results of an election approving the establishment of the active management area pursuant to section 45-415 are certified by the board of supervisors of the county or counties in which the active management area is located. 8. "Exempt well" means a well that has a pump with a maximum capacity of not more than thirty-five gallons per minute and that is used to withdraw groundwater pursuant to section 45-454. 9. "Expanded animal industry use" means increased water use by an animal industrial enterprise on the land in use by the enterprise on June 12, 1980 or on immediately adjoining land, excluding irrigation uses. 10. "Farm" means an area of irrigated land that is under the same ownership, that is served by a water distribution system common to the irrigated land and to which can be applied common conservation, water measurement and water accounting procedures. 11. "Farm unit" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, one or more farms that are irrigated with groundwater and that are contiguous or in proximity to each other with similar soil conditions, crops and cropping patterns. (b) With respect to the Santa Cruz active management area, one or more farms that are irrigated with water, other than stored water, withdrawn from a well and that are contiguous or in proximity to each other with similar soil conditions, crops and cropping patterns. 12. "Grandfathered right" means a right to withdraw and use groundwater pursuant to article 5 of this chapter based on the fact of lawful withdrawals and use of groundwater before the date of the designation of an active management area. 13. "Groundwater basin" means an area that, as nearly as known facts allow as determined by the director pursuant to this chapter, may be designated so as to enclose a relatively hydrologically distinct body or related bodies of groundwater, which shall be described horizontally by surface description. 14. "Groundwater replenishment district" or "replenishment district" means a district that is established pursuant to title 48, chapter 27. 15. "Groundwater withdrawal permit" means a permit issued by the director pursuant to article 7 of this chapter. 16. "Initial active management area" means the Phoenix, Prescott or Pinal active management area established by section 45-411, the Tucson active management area established by section 45-411 and modified by section 45-411.02 and the Santa Cruz active management area established by section 45-411.03. 17. "Integrated farming operation" means: (a) With respect to land within an irrigation non-expansion area, more than ten acres of land that are contiguous or in close proximity, that may be irrigated pursuant to section 45-437, that are not under the same ownership and that are farmed as a single farming operation. (b) With respect to land within an active management area, two or more farms that are contiguous or in close proximity, that collectively have more than ten irrigation acres and that are farmed as a single farming operation. 18. "Irrigate" means to apply water to 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, as such those terms are defined in section 3-1201. 19. "Irrigation acre" means an acre of land, as determined in section 45-465, subsection B, to which an irrigation grandfathered right is appurtenant. 20. "Irrigation district" means a political subdivision, however designated, established pursuant to title 48, chapter 17 or 19. 21. "Irrigation grandfathered right" means a grandfathered right determined pursuant to section 45-465. 22. "Irrigation non-expansion area" means a geographical geographic area that has been designated pursuant to article 3 of this chapter as having insufficient groundwater to provide a reasonably safe supply for the irrigation of the cultivated lands at the current rate of withdrawal. 23. "Irrigation use" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, 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, as such those terms are defined in section 3-1201. (b) With respect to the Santa Cruz active management area, the use of water, other than stored water, withdrawn from a well 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, as such those terms are defined in section 3-1201. 24. "Irrigation water duty" or "water duty" means the amount of water in acre-feet per acre that is reasonable to apply to irrigated land in a farm unit during the accounting period, as determined by the director pursuant to sections 45-564 through 45-568 or as prescribed in section 45-483. 25. "Member land" means real property that qualifies as a member land of a conservation district as provided by title 48, chapter 22. 26. "Member service area" means the service area of a city, town or private water company that qualifies as a member service area of a conservation district as provided by title 48, chapter 22. 27. "Non-irrigation grandfathered right" means a grandfathered right determined pursuant to section 45-463, 45-464, 45-469 or 45-472. 28. "Non-irrigation use" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, a use of groundwater other than an irrigation use. (b) With respect to the Santa Cruz active management area, a use of water, other than stored water, withdrawn from a well, other than an irrigation use. 29. "Person" means an individual, public or private corporation, company, partnership, firm, association, society, estate or trust, any other private organization or enterprise, the United States, any state, territory or country or a governmental entity, political subdivision or municipal corporation organized under or subject to the constitution and laws of this state. 30. "Private water company" means: (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, any entity that distributes or sells groundwater, except a political subdivision or an entity that is established pursuant to title 48 and that is not regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity. A city or town is not a private water company. (b) With respect to the Santa Cruz active management area, any entity that distributes or sells water, other than stored water, withdrawn from a well, except a political subdivision or an entity that is established pursuant to title 48 and that is not regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity. A city or town is not a private water company. 31. "Service area" means: (a) With respect to a city or town, the area of land actually being served water, for a non-irrigation use, by the city or town plus: (i) Additions to such area that contain an operating distribution system owned by the city or town primarily for the delivery of water for a non-irrigation use. (ii) The service area of a city, town or private water company that obtains its water from the city pursuant to a contract entered into before the date of the designation of the active management area. (b) With respect to a private water company, the area of land of the private water company actually being served water, for a non-irrigation use, by the private water company plus additions to such area that contain an operating distribution system owned by the private water company primarily for the delivery of water for a non-irrigation use. 32. "Service area of an irrigation district" means: (a) With respect to an irrigation district that was engaged in the withdrawal, delivery and distribution of groundwater as of the date of the designation of the active management area, the area of land within the boundaries of the irrigation district actually being served water by the irrigation district at any time during the five ten years preceding the date of the designation of the active management area plus any areas as of the date of the designation of the active management area within the boundaries of the irrigation district that contain an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district. The service area may be modified pursuant to section 45-494.01. (b) With respect to an irrigation district that was not engaged in the withdrawal, delivery and distribution of groundwater as of the date of the designation of the active management area: (i) The acres of member lands within the boundaries of the irrigation district that were legally irrigated at any time from January 1, 1975 through January 1, 1980 for initial active management areas or during the five ten years preceding the date of the designation of the active management area for subsequent active management areas. (ii) Any areas of land that contain an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district for the withdrawal, delivery and distribution of water, except that additional areas containing an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district may not be added after December 31, 2027. 33. "Stored water" means water that is stored underground for the purpose of recovery pursuant to a permit issued under chapter 3.1 of this title. 34. "Subbasin" means an area that, as nearly as known facts allow as determined by the director pursuant to this chapter, may be designated so as to enclose a relatively hydrologically distinct body of groundwater within a groundwater basin, which shall be described horizontally by surface description. 35. "Subsequent active management area" means an active management area established after June 12, 1980 pursuant to article 2 of this chapter. 36. "Subsidence" means the settling or lowering of the surface of land that results from the withdrawal of groundwater. 37. "Transportation" means the movement of groundwater from the point of withdrawal to the point of use. 38. "Type 1 non-irrigation grandfathered right" means a non-irrigation grandfathered right associated with retired irrigated land and determined pursuant to section 45-463, 45-469 or 45-472. 39. "Type 2 non-irrigation grandfathered right" means a non-irrigation grandfathered right not associated with retired irrigated land and determined pursuant to section 45-464. 40. "Water district" means an active management area water district that is established under title 48, chapter 28 and that has adopted an ordinance or resolution to undertake water district groundwater replenishment obligations as defined and used in title 48, chapter 28, article 7. 41. "Water district member land" means real property that qualifies as water district member land of a water district as provided by title 48, chapter 28. 42. "Water district member service area" means the service area of the city, town or private water company that qualifies as a water district member service area of a water district as provided by title 48, chapter 28. 43. "Well" means a man-made opening in the earth through which water may be withdrawn or obtained from beneath the surface of the earth except as provided in section 45-591.01.END_STATUTE Sec. 2. Section 45-416, Arizona Revised Statutes, is amended to read: START_STATUTE45-416. Limitation on number of irrigated acres A. If the director initiates the procedure for designating a subsequent active management area or the board of supervisors calls an election to establish an active management area, an irrigation user may irrigate within the proposed active management area only acres of land which that were legally irrigated at any time during the five ten years preceding the date of the notice of the initiation of designation procedures or the call for the election. B. The limitation on the acres which that may be irrigated shall continue in effect until the director makes a final determination pursuant to section 45-414 or the final results of an election to establish an active management area pursuant to section 45-415 are certified by the board of supervisors of the county or counties in which the proposed subsequent active management area is located. END_STATUTE Sec. 3. Section 45-452, Arizona Revised Statutes, is amended to read: START_STATUTE45-452. No new irrigated acreage in active management areas; central Arizona project water; exemption A. In an initial active management area, except as provided in subsections B, H, I and J of this section and sections 45-172, 45-465.01 and 45-465.02, only acres of land which that were legally irrigated at any time from January 1, 1975 through January 1, 1980, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 and for which the irrigation grandfathered right has not been conveyed for a non-irrigation use, may be irrigated with any groundwater, effluent, diffused water on the surface or surface water, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before June 12, 1980. In an initial active management area, land which that was not irrigated at any time from January 1, 1975 through January 1, 1980 is deemed to have been in irrigation if the director finds that either of the following applies: 1. In areas of an initial active management area not designated as critical groundwater areas under prior statutory law prior to before the date of the designation of the active management area, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced prior to before the date of the designation of the active management area. 2. In areas of an initial active management area which that were designated as critical groundwater areas under prior statutory law, land is deemed to have been in irrigation if substantial capital investment has been made in the twelve months before June 12, 1980 for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under prior statutory law. B. In an initial active management area, a person who owns acres of land which that may be irrigated pursuant to subsection A of this section may apply to the director to permanently retire all or a portion of such acres from irrigation and to irrigate conjunctively with central Arizona project water the same number of substitute acres. The director may approve the substitution of acres if the director determines that all of the following exist: 1. The substitute acres were legally irrigated during the period of September 30, 1958 to September 30, 1968, or such other period as the United States secretary of the interior may designate. 2. The acres to be retired from irrigation and the substitute acres are located outside of the exterior boundaries of the service area of a city, town or private water company and such acres are located within the same irrigation district and the same sub-basin subbasin. 3. The substitution of acres is necessary to enable the irrigation district within which the acres are located to more efficiently deliver central Arizona project water. 4. Central Arizona project water available to the irrigation district within which the acres are located will be adequate to supply the substitute acres. 5. The substitution of acres will benefit the management of the active management area in which the acres are located. C. Any acres permanently retired from irrigation pursuant to subsection B of this section relinquish their irrigation grandfathered rights, and such rights are deemed to be appurtenant to the substitute acres. Groundwater withdrawn or received for the irrigation of the substitute acres pursuant to an irrigation grandfathered right shall be reduced by the amount of central Arizona project water received for such acres. D. The service area of the irrigation district in which the acres are located shall be modified to permanently delete the acres permanently retired from irrigation and include the substitute acres. E. If a person retires land from irrigation pursuant to subsection B of this section, groundwater shall not be withdrawn from such retired land for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within the service area of such city, town or private water company. F. The director may reverse the substitution of irrigated acres as provided by subsections B through E of this section under the following conditions and procedures: 1. Title to the retired acres and substitute acres has reverted involuntarily, or voluntarily in lieu of foreclosure or forfeiture, to a previous owner or owners of the retired and substitute acres. 2. The current owner of the retired acres must apply to the director in writing stating: (a) The history of the original substitution of acres under subsections B through E of this section. (b) The circumstances regarding the reversion of title to the current owner or owners. (c) Why reversal of the substitution of acres is necessary. 3. The director must find that reversing the substitution of acres: (a) Will benefit the management of the active management area. (b) Is necessary to prevent unreasonable hardship to the current owner of the retired acres. (c) Will not cause unreasonable hardship to the current owner of the substitute acres, if owned separately from the retired acres. 4. If the director decides to reverse the substitution of acres: (a) The originally retired irrigation acres regain their original irrigation grandfathered rights, but groundwater withdrawn or received for the irrigation of those acres pursuant to an irrigation grandfathered right shall be reduced by any amount of central Arizona project water received for such acres. (b) The substitute acres relinquish all irrigation grandfathered rights that were transferred to them under the original substitution of acres. (c) The service area of the irrigation district in which the acres are located shall be modified to delete the substitute acres and include the originally retired irrigation acres. (d) Groundwater may not thereafter be withdrawn from the substitute acres for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within its service area. G. In a subsequent active management area, except as provided in subsections H, I and J of this section or section 45-172, only acres of land which that were legally irrigated at any time during the five ten years preceding the date of the notice of the initiation of designation procedures or the call for the election, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 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, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before the date of the notice or the call. In a subsequent active management area, land is deemed to have been in irrigation if the director finds that either of the following applies: 1. In areas of a subsequent active management area which that were not irrigation non-expansion areas, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced before the date of the notice of the initiation of designation procedures or the call for the election. 2. In areas of a subsequent active management area which that were irrigation non-expansion areas, land is deemed to have been in irrigation if the director finds that substantial capital investment has been made in the twelve months before the date of the notice of the initiation of designation procedures or the call for the election, for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under section 45-437. H. In an active management area, a state university engaged in the teaching and study of and experimentation in the science of agriculture may irrigate not more than three hundred twenty acres of land for such purposes with not more than five acre-feet of groundwater per acre per year. Water produced from any well pursuant to this subsection shall not be leased, sold or transported off the irrigated land operated by the state university. The right to withdraw and use groundwater pursuant to this subsection does not require a withdrawal permit, is not a grandfathered right, shall not give rise to a grandfathered right and may not be conveyed to any other user. I. In an active management area, a correctional facility under the jurisdiction of the state department of corrections may irrigate with groundwater, effluent, diffused water on the surface or surface water up to a total of ten acres of land that otherwise may not be irrigated pursuant to subsection A or G of this section if the irrigation is for the purpose of producing plants or parts of plants for consumption by inmates at the correctional facility as part of a prisoner work program and if the correctional facility notifies the director of water resources in writing of the location of the acres of land to be irrigated prior to before their irrigation. The actual number of acres of land that a correctional facility may irrigate pursuant to this subsection shall be calculated by subtracting the number of acres of land the correctional facility may already irrigate under subsection A or G of this section from ten. The amount of water that a correctional facility may use during a year to irrigate acres of land pursuant to this subsection shall not exceed an amount calculated by multiplying the number of acres of land that are actually irrigated by the correctional facility during the year pursuant to this subsection, by four and one-half acre-feet of water. The right to withdraw and use groundwater pursuant to this subsection does not require an irrigation grandfathered right, is not a grandfathered right, shall not give rise to a grandfathered right, and may not be conveyed to any other user. J. During the second management period, acres of land in an active management area which that have been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 or for which the irrigation grandfathered right has been conveyed for a non-irrigation use pursuant to section 45-472 may be irrigated with effluent, other than effluent recovered pursuant to a recovery well permit issued under chapter 3.1 of this title or effluent given or received pursuant to a water exchange under chapter 4 of this title, and shall retain its appurtenant type 1 non-irrigation grandfathered right where the following conditions are met: 1. The land to be irrigated lies within the boundaries of an incorporated city or town. 2. The governing body or manager of the city or town has consented in writing to the irrigation of the land with effluent. 3. The effluent proposed for irrigation of the land cannot be reasonably beneficially used otherwise. 4. The owner of the land gives written notice to the director of intention to irrigate the land with effluent and receives written approval from the director before commencing irrigation. The notice shall set forth the legal description of the land to be irrigated, the certificate number of the type 1 non-irrigation grandfathered right appurtenant to the land, the source of effluent and the reasons the effluent cannot be reasonably beneficially used otherwise, and shall be accompanied by a copy of the written consent of the city or town in which the land to be irrigated is located. K. A person who may irrigate with effluent land to which a type 1 non-irrigation right is appurtenant under subsection J of this section may relinquish the right to irrigate all or a portion of the land by giving the director written notice that the person relinquishes the right. The notice shall include a legal description of the acres to be relinquished. The relinquishment is effective upon on receipt of the notice by the director. L. If a person who may irrigate with effluent land to which a type 1 non-irrigation grandfathered right is appurtenant under subsection J of this section conveys all or a portion of the land to a successor owner, the successor owner shall not irrigate the land prior to before providing written notification to the director of the successor owner's intention to irrigate the land and receiving approval from the director pursuant to subsection J of this section. M. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. If an administrative hearing is held, it shall be conducted in the active management area in which the use is located. END_STATUTE Sec. 4. Section 45-463, Arizona Revised Statutes, is amended to read: START_STATUTE45-463. Type 1 non-irrigation grandfathered right associated with retired irrigated land; appurtenancy; ownership A. In an initial active management area, a person who owns land which that was legally entitled to be irrigated with groundwater and who retired such land from irrigation after January 1, 1965 but prior to before the date of the designation of the active management area in anticipation of a non-irrigation use has the right to withdraw from or receive for such land three acre-feet of groundwater per acre per year upon on showing that: 1. The land has been held under the same ownership since it was retired. 2. A development plan for the proposed non-irrigation use existed at the time the land was retired. B. In a subsequent active management area, a person who owns land which that was legally entitled to be irrigated with groundwater and retires such land from irrigation prior to before the date of the designation of the active management area 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 which that was used per acre during the five ten years preceding the time the land was retired upon on showing that: 1. The land has been held under the same ownership since it was retired. 2. A development plan for the proposed non-irrigation use existed at the time the land was retired and is filed with the director within ninety days after the active management area is designated. C. The development plan requirements of this section are deemed fulfilled if the land retired from irrigation has been described in an application for a certificate of exemption or if the land retired from irrigation is owned in conjunction with non-irrigation uses existing or for which substantial capital commitments have been incurred for the non-irrigation development of such land as of the date of the designation of the active management area. D. The right to withdraw or receive groundwater pursuant to this section is a non-irrigation grandfathered right associated with retired irrigated land, or a type 1 non-irrigation grandfathered right. E. A type 1 non-irrigation grandfathered right is appurtenant to the acre of retired irrigated land associated with the right, is owned by the owner of the land to which the right is appurtenant and may be leased with the land. F. At the request of a city or town in the Tucson active management area that holds a type 1 non-irrigation grandfathered right under subsection A of this section, the director, in determining whether to designate or redesignate the city or town as having an assured water supply pursuant to section 45-576, shall include four and one-half acre-feet of groundwater for each acre of retired irrigated land to which the right is appurtenant, multiplied by the number of years between the year of retirement and the year of the request, minus the quantity of groundwater withdrawn from the land between June 12, 1980 and the year of the request, except that: 1. No groundwater may be included for any acre of retired irrigated land for any year after the land is developed for any municipal or industrial use. 2. The amount of groundwater that is included under this subsection shall not exceed four and one-half acre-feet for each acre of retired irrigated land to which the right is appurtenant multiplied by the number of years between the year of retirement and December 31, 2025 minus the quantity of groundwater withdrawn from the land between June 12, 1980 and December 31, 2025. 3. The net amount of groundwater included under this subsection shall not exceed two million acre-feet. 4. The city or town, before making the request of the director, shall extinguish any irrigation grandfathered rights or type 1 non-irrigation grandfathered rights held by the city or town and appurtenant to land acquired or contracted for by the city or town after June 12, 1980 in the same sub-basin subbasin. G. In determining whether to designate a city or town as having an assured water supply pursuant to section 45-576, the director shall not consider the exercise of the right to withdraw groundwater under subsection F of this section to be the withdrawal of groundwater available from natural or artificial groundwater recharge. END_STATUTE Sec. 5. Section 45-464, Arizona Revised Statutes, is amended to read: START_STATUTE45-464. Type 2 non-irrigation grandfathered right not associated with retired irrigated land; determination of amount; ownership; definition A. In an active management area, a person who owns land from which groundwater was being legally withdrawn and used for a non-irrigation purpose as of the date of the designation of the active management area has the right to withdraw annually: 1. If the person holds a certificate of exemption, the greater of: (a) The amount of groundwater established in proceedings on the application for certificate of exemption, subject to any modification as a result of a finding on appeal of a factual mistake by the state land department or Arizona water commission in computing the amount of the authorized withdrawal, less the amount of any right obtained by the person pursuant to section 45-463. (b) The maximum amount of groundwater legally withdrawn from such land and used by the person in any one of the five ten years preceding the date of the designation of the active management area, less the amount of any right obtained by the person pursuant to section 45-463. 2. If the person does not hold a certificate of exemption, the maximum amount of groundwater legally withdrawn from such land and used by the person withdrawing the groundwater in any one of the five ten years preceding the date of the designation of the active management area, less the amount of any right that is obtained pursuant to section 45-463 by the person withdrawing groundwater from such land which and that has not been subtracted by the person withdrawing the groundwater in calculating the amount of another right pursuant to this section. B. If the calculation in subsection A of this section results in an amount greater than zero, that amount is a grandfathered right in addition to any right obtained pursuant to section 45-463. C. For the purposes of this section, "person" includes: 1. A city, town or private water company which that owns land outside of the service area of such city, town or private water company from which groundwater was being legally withdrawn for a non-irrigation use as of the date of the designation of the active management area. 2. A city, town or private water company withdrawing groundwater from within its service area pursuant to a certificate of exemption. 3. Any other non-irrigation user. D. If a person has been using groundwater for less than one year during the twelve months immediately preceding the date of the designation of the active management area, the amount of the grandfathered right pursuant to this section is the annual amount determined by the director to be reasonable for a full year to meet the requirements for a facility owned by such person in existence as of the date of the designation of the active management area. E. If a person has received a certificate of environmental compatibility pursuant to title 40, chapter 2, article 6.2 for the construction of an electrical generating facility within a subsequent active management area for which expenditures or financial commitments for land acquisition, water development, materials, construction or engineering in excess of five hundred thousand dollars $500,000 have been made before the date of the notice of the initiation of designation procedures or the call for the election for the area, the amount of the grandfathered right pursuant to this section is the annual amount determined by the director to be reasonable to meet the operational requirements for the facility for a full year. F. The right to withdraw groundwater pursuant to this section is a non-irrigation grandfathered right not associated with retired irrigated land, or a type 2 non-irrigation grandfathered right. G. A type 2 non-irrigation grandfathered right may be leased. Except as provided in subsection H of this section, the owner or lessee of a type 2 non-irrigation grandfathered right may withdraw groundwater pursuant to the right only from a location within the same active management area in which the certificate of grandfathered right is issued. H. Beginning July 1, 1994, the holder of a type 2 non-irrigation grandfathered right issued in the Tucson active management area prior to before July 1, 1994, may withdraw groundwater pursuant to the right only from a location within the same active management area in which the well or wells listed on the certificate of grandfathered right on July 1, 1994, are located. If no well is listed on the certificate of grandfathered right on July 1, 1994, the holder of the right may withdraw groundwater pursuant to the right only from a location within the same active management area in which the land from which the originating withdrawals were made is located. For the purposes of this subsection, the term "originating withdrawals" means the withdrawals of groundwater on which the issuance of a type 2 non-irrigation grandfathered right was based. I. If the user of a type 2 non-irrigation grandfathered right is different from the owner of the right, either the owner, or the user of the right on behalf of the owner, may apply for a certificate of grandfathered right pursuant to section 45-476. END_STATUTE Sec. 6. Section 45-476, Arizona Revised Statutes, is amended to read: START_STATUTE45-476. Application for certificate of grandfathered right A. Except as provided in section 45-476.01, a person claiming the right to withdraw or receive and use groundwater pursuant to a grandfathered right shall file an application for a certificate of grandfathered right with the department not later than fifteen months after the date of the designation of the active management area on a form provided by the department. B. The application for a certificate of grandfathered right not based upon on prior proceedings on a certificate of exemption shall include the following: 1. The name and mailing address of the applicant. 2. The name of the active management area within which the withdrawal of groundwater pursuant to the claimed grandfathered right is being or has been made. 3. If the application is for a type 1 non-irrigation grandfathered right: (a) The legal description and a map of the retired irrigated land in respect of which the right is claimed. (b) The date when the irrigated land was retired. (c) Such evidence as the director shall require that the retired irrigated land has been held under the same ownership since it was retired and that a development plan for the proposed non-irrigation use existed at the time the land was retired. (d) If in a subsequent active management area, the amount of groundwater used per acre for the retired irrigated land each year during the five ten years preceding the time the land was retired. (e) Whether the well from which the water will be withdrawn is located in a groundwater replenishment district. 4. If the application is for a type 2 non-irrigation grandfathered right: (a) The maximum amount of groundwater legally withdrawn from land owned by the applicant and used in any one year during the five ten years preceding the date of the designation of the active management area. (b) If the person withdrawing groundwater from the land owned by the applicant has made an application for a type 1 non-irrigation grandfathered right, a copy of the application. 5. If the application is for an irrigation grandfathered right: (a) The legal description and a map of all land owned by the applicant which THAT was legally irrigated at any time during the five years preceding January 1, 1980 for initial active management areas or the date of the designation of the active management area for subsequent active management areas and the highest number of acres legally irrigated with groundwater at one time in any one year during the five-year period. (b) The type of crops grown on such land and the cropping patterns used during the five-year period. (c) The irrigation methods and devices currently being used in the irrigation of such land. 6. The location of each well from which groundwater is being or has been withdrawn by the applicant to irrigate such land. 7. The sworn statement that the information contained in the application is true and correct to the best knowledge and belief of the applicant. 8. Any other information the director may require. C. A person or his the person's successor claiming the right to use groundwater pursuant to a grandfathered right, described in whole or in part by a certificate of exemption, shall file an application for a certificate of grandfathered right as provided in subsection D of this section and shall automatically be entitled to a certificate or certificates of grandfathered right for the portion of the grandfathered right claimed which is evidenced by the certificate of exemption or established by the proceedings on the certificate of exemption. Notice of the application is not required and hearings shall not be held. If the applicant claims grandfathered rights in addition to the amount of use described in the certificate of exemption, application for such additional amount shall be made pursuant to subsection B of this section, and such application is subject to the notice, objection and hearing provisions applicable to applications made pursuant to that subsection. D. The application for a certificate of grandfathered right based upon on prior proceedings upon on an application for a certificate of exemption shall include the following: 1. The name and mailing address of the applicant. 2. The name of the active management area within which the withdrawal of groundwater pursuant to the claimed grandfathered right is being or has been made. 3. The total amount of groundwater to be withdrawn annually under the certificate of exemption. 4. The number of retired irrigated acres described in the application for a certificate of exemption. 5. Such evidence as the director shall require that the retired irrigated land has been held under the same ownership since it was retired. 6. The number of the certificate of exemption and a copy of the certificate of exemption. 7. The sworn statement that the information contained in the application is true and correct to the best knowledge and belief of the applicant. 8. Any other information the director may require. END_STATUTE Sec. 7. Retroactivity This act applies retroactively to from and after August 29, 2022.
7070
7171 Be it enacted by the Legislature of the State of Arizona:
7272
7373 Section 1. Section 45-402, Arizona Revised Statutes, is amended to read:
7474
7575 START_STATUTE45-402. Definitions
7676
7777 In this chapter, unless the context otherwise requires:
7878
7979 1. "Accounting period" means the calendar year, except such other twelve-month period as may be otherwise agreed on by the director and the owner of a farm or a district on behalf of its landowners.
8080
8181 2. "Active management area" means a geographical geographic area that has been designated pursuant to article 2 of this chapter as requiring active management of groundwater or, in the case of the Santa Cruz active management area, active management of any water, other than stored water, withdrawn from a well.
8282
8383 3. "Animal industry use" means the production, growing and feeding of livestock, range livestock or poultry, as such those terms are defined in section 3-1201. Animal industry use is included in the term and general treatment of industry in this chapter, unless specifically provided otherwise.
8484
8585 4. "City" or "town" means a city or town incorporated or chartered under the constitution and laws of this state.
8686
8787 5. "Conservation district" means a multi-county water conservation district established under title 48, chapter 22.
8888
8989 6. "Convey" means to transfer the ownership of a grandfathered right from one person to another.
9090
9191 7. "Date of the designation of the active management area" means:
9292
9393 (a) With respect to an initial active management area, June 12, 1980.
9494
9595 (b) With respect to a subsequent active management area, the date on which the director's order designating the active management area becomes effective as provided in section 45-414 or the date on which the final results of an election approving the establishment of the active management area pursuant to section 45-415 are certified by the board of supervisors of the county or counties in which the active management area is located.
9696
9797 8. "Exempt well" means a well that has a pump with a maximum capacity of not more than thirty-five gallons per minute and that is used to withdraw groundwater pursuant to section 45-454.
9898
9999 9. "Expanded animal industry use" means increased water use by an animal industrial enterprise on the land in use by the enterprise on June 12, 1980 or on immediately adjoining land, excluding irrigation uses.
100100
101101 10. "Farm" means an area of irrigated land that is under the same ownership, that is served by a water distribution system common to the irrigated land and to which can be applied common conservation, water measurement and water accounting procedures.
102102
103103 11. "Farm unit" means:
104104
105105 (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, one or more farms that are irrigated with groundwater and that are contiguous or in proximity to each other with similar soil conditions, crops and cropping patterns.
106106
107107 (b) With respect to the Santa Cruz active management area, one or more farms that are irrigated with water, other than stored water, withdrawn from a well and that are contiguous or in proximity to each other with similar soil conditions, crops and cropping patterns.
108108
109109 12. "Grandfathered right" means a right to withdraw and use groundwater pursuant to article 5 of this chapter based on the fact of lawful withdrawals and use of groundwater before the date of the designation of an active management area.
110110
111111 13. "Groundwater basin" means an area that, as nearly as known facts allow as determined by the director pursuant to this chapter, may be designated so as to enclose a relatively hydrologically distinct body or related bodies of groundwater, which shall be described horizontally by surface description.
112112
113113 14. "Groundwater replenishment district" or "replenishment district" means a district that is established pursuant to title 48, chapter 27.
114114
115115 15. "Groundwater withdrawal permit" means a permit issued by the director pursuant to article 7 of this chapter.
116116
117117 16. "Initial active management area" means the Phoenix, Prescott or Pinal active management area established by section 45-411, the Tucson active management area established by section 45-411 and modified by section 45-411.02 and the Santa Cruz active management area established by section 45-411.03.
118118
119119 17. "Integrated farming operation" means:
120120
121121 (a) With respect to land within an irrigation non-expansion area, more than ten acres of land that are contiguous or in close proximity, that may be irrigated pursuant to section 45-437, that are not under the same ownership and that are farmed as a single farming operation.
122122
123123 (b) With respect to land within an active management area, two or more farms that are contiguous or in close proximity, that collectively have more than ten irrigation acres and that are farmed as a single farming operation.
124124
125125 18. "Irrigate" means to apply water to 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, as such those terms are defined in section 3-1201.
126126
127127 19. "Irrigation acre" means an acre of land, as determined in section 45-465, subsection B, to which an irrigation grandfathered right is appurtenant.
128128
129129 20. "Irrigation district" means a political subdivision, however designated, established pursuant to title 48, chapter 17 or 19.
130130
131131 21. "Irrigation grandfathered right" means a grandfathered right determined pursuant to section 45-465.
132132
133133 22. "Irrigation non-expansion area" means a geographical geographic area that has been designated pursuant to article 3 of this chapter as having insufficient groundwater to provide a reasonably safe supply for the irrigation of the cultivated lands at the current rate of withdrawal.
134134
135135 23. "Irrigation use" means:
136136
137137 (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, 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, as such those terms are defined in section 3-1201.
138138
139139 (b) With respect to the Santa Cruz active management area, the use of water, other than stored water, withdrawn from a well 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, as such those terms are defined in section 3-1201.
140140
141141 24. "Irrigation water duty" or "water duty" means the amount of water in acre-feet per acre that is reasonable to apply to irrigated land in a farm unit during the accounting period, as determined by the director pursuant to sections 45-564 through 45-568 or as prescribed in section 45-483.
142142
143143 25. "Member land" means real property that qualifies as a member land of a conservation district as provided by title 48, chapter 22.
144144
145145 26. "Member service area" means the service area of a city, town or private water company that qualifies as a member service area of a conservation district as provided by title 48, chapter 22.
146146
147147 27. "Non-irrigation grandfathered right" means a grandfathered right determined pursuant to section 45-463, 45-464, 45-469 or 45-472.
148148
149149 28. "Non-irrigation use" means:
150150
151151 (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, a use of groundwater other than an irrigation use.
152152
153153 (b) With respect to the Santa Cruz active management area, a use of water, other than stored water, withdrawn from a well, other than an irrigation use.
154154
155155 29. "Person" means an individual, public or private corporation, company, partnership, firm, association, society, estate or trust, any other private organization or enterprise, the United States, any state, territory or country or a governmental entity, political subdivision or municipal corporation organized under or subject to the constitution and laws of this state.
156156
157157 30. "Private water company" means:
158158
159159 (a) With respect to areas outside an active management area and with respect to an active management area other than the Santa Cruz active management area, any entity that distributes or sells groundwater, except a political subdivision or an entity that is established pursuant to title 48 and that is not regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity. A city or town is not a private water company.
160160
161161 (b) With respect to the Santa Cruz active management area, any entity that distributes or sells water, other than stored water, withdrawn from a well, except a political subdivision or an entity that is established pursuant to title 48 and that is not regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity. A city or town is not a private water company.
162162
163163 31. "Service area" means:
164164
165165 (a) With respect to a city or town, the area of land actually being served water, for a non-irrigation use, by the city or town plus:
166166
167167 (i) Additions to such area that contain an operating distribution system owned by the city or town primarily for the delivery of water for a non-irrigation use.
168168
169169 (ii) The service area of a city, town or private water company that obtains its water from the city pursuant to a contract entered into before the date of the designation of the active management area.
170170
171171 (b) With respect to a private water company, the area of land of the private water company actually being served water, for a non-irrigation use, by the private water company plus additions to such area that contain an operating distribution system owned by the private water company primarily for the delivery of water for a non-irrigation use.
172172
173173 32. "Service area of an irrigation district" means:
174174
175175 (a) With respect to an irrigation district that was engaged in the withdrawal, delivery and distribution of groundwater as of the date of the designation of the active management area, the area of land within the boundaries of the irrigation district actually being served water by the irrigation district at any time during the five ten years preceding the date of the designation of the active management area plus any areas as of the date of the designation of the active management area within the boundaries of the irrigation district that contain an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district. The service area may be modified pursuant to section 45-494.01.
176176
177177 (b) With respect to an irrigation district that was not engaged in the withdrawal, delivery and distribution of groundwater as of the date of the designation of the active management area:
178178
179179 (i) The acres of member lands within the boundaries of the irrigation district that were legally irrigated at any time from January 1, 1975 through January 1, 1980 for initial active management areas or during the five ten years preceding the date of the designation of the active management area for subsequent active management areas.
180180
181181 (ii) Any areas of land that contain an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district for the withdrawal, delivery and distribution of water, except that additional areas containing an operating system of canals, flumes, ditches and other works owned or operated by the irrigation district may not be added after December 31, 2027.
182182
183183 33. "Stored water" means water that is stored underground for the purpose of recovery pursuant to a permit issued under chapter 3.1 of this title.
184184
185185 34. "Subbasin" means an area that, as nearly as known facts allow as determined by the director pursuant to this chapter, may be designated so as to enclose a relatively hydrologically distinct body of groundwater within a groundwater basin, which shall be described horizontally by surface description.
186186
187187 35. "Subsequent active management area" means an active management area established after June 12, 1980 pursuant to article 2 of this chapter.
188188
189189 36. "Subsidence" means the settling or lowering of the surface of land that results from the withdrawal of groundwater.
190190
191191 37. "Transportation" means the movement of groundwater from the point of withdrawal to the point of use.
192192
193193 38. "Type 1 non-irrigation grandfathered right" means a non-irrigation grandfathered right associated with retired irrigated land and determined pursuant to section 45-463, 45-469 or 45-472.
194194
195195 39. "Type 2 non-irrigation grandfathered right" means a non-irrigation grandfathered right not associated with retired irrigated land and determined pursuant to section 45-464.
196196
197197 40. "Water district" means an active management area water district that is established under title 48, chapter 28 and that has adopted an ordinance or resolution to undertake water district groundwater replenishment obligations as defined and used in title 48, chapter 28, article 7.
198198
199199 41. "Water district member land" means real property that qualifies as water district member land of a water district as provided by title 48, chapter 28.
200200
201201 42. "Water district member service area" means the service area of the city, town or private water company that qualifies as a water district member service area of a water district as provided by title 48, chapter 28.
202202
203203 43. "Well" means a man-made opening in the earth through which water may be withdrawn or obtained from beneath the surface of the earth except as provided in section 45-591.01.END_STATUTE
204204
205205 Sec. 2. Section 45-416, Arizona Revised Statutes, is amended to read:
206206
207207 START_STATUTE45-416. Limitation on number of irrigated acres
208208
209209 A. If the director initiates the procedure for designating a subsequent active management area or the board of supervisors calls an election to establish an active management area, an irrigation user may irrigate within the proposed active management area only acres of land which that were legally irrigated at any time during the five ten years preceding the date of the notice of the initiation of designation procedures or the call for the election.
210210
211211 B. The limitation on the acres which that may be irrigated shall continue in effect until the director makes a final determination pursuant to section 45-414 or the final results of an election to establish an active management area pursuant to section 45-415 are certified by the board of supervisors of the county or counties in which the proposed subsequent active management area is located. END_STATUTE
212212
213213 Sec. 3. Section 45-452, Arizona Revised Statutes, is amended to read:
214214
215215 START_STATUTE45-452. No new irrigated acreage in active management areas; central Arizona project water; exemption
216216
217217 A. In an initial active management area, except as provided in subsections B, H, I and J of this section and sections 45-172, 45-465.01 and 45-465.02, only acres of land which that were legally irrigated at any time from January 1, 1975 through January 1, 1980, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 and for which the irrigation grandfathered right has not been conveyed for a non-irrigation use, may be irrigated with any groundwater, effluent, diffused water on the surface or surface water, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before June 12, 1980. In an initial active management area, land which that was not irrigated at any time from January 1, 1975 through January 1, 1980 is deemed to have been in irrigation if the director finds that either of the following applies:
218218
219219 1. In areas of an initial active management area not designated as critical groundwater areas under prior statutory law prior to before the date of the designation of the active management area, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced prior to before the date of the designation of the active management area.
220220
221221 2. In areas of an initial active management area which that were designated as critical groundwater areas under prior statutory law, land is deemed to have been in irrigation if substantial capital investment has been made in the twelve months before June 12, 1980 for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under prior statutory law.
222222
223223 B. In an initial active management area, a person who owns acres of land which that may be irrigated pursuant to subsection A of this section may apply to the director to permanently retire all or a portion of such acres from irrigation and to irrigate conjunctively with central Arizona project water the same number of substitute acres. The director may approve the substitution of acres if the director determines that all of the following exist:
224224
225225 1. The substitute acres were legally irrigated during the period of September 30, 1958 to September 30, 1968, or such other period as the United States secretary of the interior may designate.
226226
227227 2. The acres to be retired from irrigation and the substitute acres are located outside of the exterior boundaries of the service area of a city, town or private water company and such acres are located within the same irrigation district and the same sub-basin subbasin.
228228
229229 3. The substitution of acres is necessary to enable the irrigation district within which the acres are located to more efficiently deliver central Arizona project water.
230230
231231 4. Central Arizona project water available to the irrigation district within which the acres are located will be adequate to supply the substitute acres.
232232
233233 5. The substitution of acres will benefit the management of the active management area in which the acres are located.
234234
235235 C. Any acres permanently retired from irrigation pursuant to subsection B of this section relinquish their irrigation grandfathered rights, and such rights are deemed to be appurtenant to the substitute acres. Groundwater withdrawn or received for the irrigation of the substitute acres pursuant to an irrigation grandfathered right shall be reduced by the amount of central Arizona project water received for such acres.
236236
237237 D. The service area of the irrigation district in which the acres are located shall be modified to permanently delete the acres permanently retired from irrigation and include the substitute acres.
238238
239239 E. If a person retires land from irrigation pursuant to subsection B of this section, groundwater shall not be withdrawn from such retired land for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within the service area of such city, town or private water company.
240240
241241 F. The director may reverse the substitution of irrigated acres as provided by subsections B through E of this section under the following conditions and procedures:
242242
243243 1. Title to the retired acres and substitute acres has reverted involuntarily, or voluntarily in lieu of foreclosure or forfeiture, to a previous owner or owners of the retired and substitute acres.
244244
245245 2. The current owner of the retired acres must apply to the director in writing stating:
246246
247247 (a) The history of the original substitution of acres under subsections B through E of this section.
248248
249249 (b) The circumstances regarding the reversion of title to the current owner or owners.
250250
251251 (c) Why reversal of the substitution of acres is necessary.
252252
253253 3. The director must find that reversing the substitution of acres:
254254
255255 (a) Will benefit the management of the active management area.
256256
257257 (b) Is necessary to prevent unreasonable hardship to the current owner of the retired acres.
258258
259259 (c) Will not cause unreasonable hardship to the current owner of the substitute acres, if owned separately from the retired acres.
260260
261261 4. If the director decides to reverse the substitution of acres:
262262
263263 (a) The originally retired irrigation acres regain their original irrigation grandfathered rights, but groundwater withdrawn or received for the irrigation of those acres pursuant to an irrigation grandfathered right shall be reduced by any amount of central Arizona project water received for such acres.
264264
265265 (b) The substitute acres relinquish all irrigation grandfathered rights that were transferred to them under the original substitution of acres.
266266
267267 (c) The service area of the irrigation district in which the acres are located shall be modified to delete the substitute acres and include the originally retired irrigation acres.
268268
269269 (d) Groundwater may not thereafter be withdrawn from the substitute acres for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within its service area.
270270
271271 G. In a subsequent active management area, except as provided in subsections H, I and J of this section or section 45-172, only acres of land which that were legally irrigated at any time during the five ten years preceding the date of the notice of the initiation of designation procedures or the call for the election, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 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, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before the date of the notice or the call. In a subsequent active management area, land is deemed to have been in irrigation if the director finds that either of the following applies:
272272
273273 1. In areas of a subsequent active management area which that were not irrigation non-expansion areas, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced before the date of the notice of the initiation of designation procedures or the call for the election.
274274
275275 2. In areas of a subsequent active management area which that were irrigation non-expansion areas, land is deemed to have been in irrigation if the director finds that substantial capital investment has been made in the twelve months before the date of the notice of the initiation of designation procedures or the call for the election, for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under section 45-437.
276276
277277 H. In an active management area, a state university engaged in the teaching and study of and experimentation in the science of agriculture may irrigate not more than three hundred twenty acres of land for such purposes with not more than five acre-feet of groundwater per acre per year. Water produced from any well pursuant to this subsection shall not be leased, sold or transported off the irrigated land operated by the state university. The right to withdraw and use groundwater pursuant to this subsection does not require a withdrawal permit, is not a grandfathered right, shall not give rise to a grandfathered right and may not be conveyed to any other user.
278278
279279 I. In an active management area, a correctional facility under the jurisdiction of the state department of corrections may irrigate with groundwater, effluent, diffused water on the surface or surface water up to a total of ten acres of land that otherwise may not be irrigated pursuant to subsection A or G of this section if the irrigation is for the purpose of producing plants or parts of plants for consumption by inmates at the correctional facility as part of a prisoner work program and if the correctional facility notifies the director of water resources in writing of the location of the acres of land to be irrigated prior to before their irrigation. The actual number of acres of land that a correctional facility may irrigate pursuant to this subsection shall be calculated by subtracting the number of acres of land the correctional facility may already irrigate under subsection A or G of this section from ten. The amount of water that a correctional facility may use during a year to irrigate acres of land pursuant to this subsection shall not exceed an amount calculated by multiplying the number of acres of land that are actually irrigated by the correctional facility during the year pursuant to this subsection, by four and one-half acre-feet of water. The right to withdraw and use groundwater pursuant to this subsection does not require an irrigation grandfathered right, is not a grandfathered right, shall not give rise to a grandfathered right, and may not be conveyed to any other user.
280280
281281 J. During the second management period, acres of land in an active management area which that have been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 or for which the irrigation grandfathered right has been conveyed for a non-irrigation use pursuant to section 45-472 may be irrigated with effluent, other than effluent recovered pursuant to a recovery well permit issued under chapter 3.1 of this title or effluent given or received pursuant to a water exchange under chapter 4 of this title, and shall retain its appurtenant type 1 non-irrigation grandfathered right where the following conditions are met:
282282
283283 1. The land to be irrigated lies within the boundaries of an incorporated city or town.
284284
285285 2. The governing body or manager of the city or town has consented in writing to the irrigation of the land with effluent.
286286
287287 3. The effluent proposed for irrigation of the land cannot be reasonably beneficially used otherwise.
288288
289289 4. The owner of the land gives written notice to the director of intention to irrigate the land with effluent and receives written approval from the director before commencing irrigation. The notice shall set forth the legal description of the land to be irrigated, the certificate number of the type 1 non-irrigation grandfathered right appurtenant to the land, the source of effluent and the reasons the effluent cannot be reasonably beneficially used otherwise, and shall be accompanied by a copy of the written consent of the city or town in which the land to be irrigated is located.
290290
291291 K. A person who may irrigate with effluent land to which a type 1 non-irrigation right is appurtenant under subsection J of this section may relinquish the right to irrigate all or a portion of the land by giving the director written notice that the person relinquishes the right. The notice shall include a legal description of the acres to be relinquished. The relinquishment is effective upon on receipt of the notice by the director.
292292
293293 L. If a person who may irrigate with effluent land to which a type 1 non-irrigation grandfathered right is appurtenant under subsection J of this section conveys all or a portion of the land to a successor owner, the successor owner shall not irrigate the land prior to before providing written notification to the director of the successor owner's intention to irrigate the land and receiving approval from the director pursuant to subsection J of this section.
294294
295295 M. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. If an administrative hearing is held, it shall be conducted in the active management area in which the use is located. END_STATUTE
296296
297297 Sec. 4. Section 45-463, Arizona Revised Statutes, is amended to read:
298298
299299 START_STATUTE45-463. Type 1 non-irrigation grandfathered right associated with retired irrigated land; appurtenancy; ownership
300300
301301 A. In an initial active management area, a person who owns land which that was legally entitled to be irrigated with groundwater and who retired such land from irrigation after January 1, 1965 but prior to before the date of the designation of the active management area in anticipation of a non-irrigation use has the right to withdraw from or receive for such land three acre-feet of groundwater per acre per year upon on showing that:
302302
303303 1. The land has been held under the same ownership since it was retired.
304304
305305 2. A development plan for the proposed non-irrigation use existed at the time the land was retired.
306306
307307 B. In a subsequent active management area, a person who owns land which that was legally entitled to be irrigated with groundwater and retires such land from irrigation prior to before the date of the designation of the active management area 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 which that was used per acre during the five ten years preceding the time the land was retired upon on showing that:
308308
309309 1. The land has been held under the same ownership since it was retired.
310310
311311 2. A development plan for the proposed non-irrigation use existed at the time the land was retired and is filed with the director within ninety days after the active management area is designated.
312312
313313 C. The development plan requirements of this section are deemed fulfilled if the land retired from irrigation has been described in an application for a certificate of exemption or if the land retired from irrigation is owned in conjunction with non-irrigation uses existing or for which substantial capital commitments have been incurred for the non-irrigation development of such land as of the date of the designation of the active management area.
314314
315315 D. The right to withdraw or receive groundwater pursuant to this section is a non-irrigation grandfathered right associated with retired irrigated land, or a type 1 non-irrigation grandfathered right.
316316
317317 E. A type 1 non-irrigation grandfathered right is appurtenant to the acre of retired irrigated land associated with the right, is owned by the owner of the land to which the right is appurtenant and may be leased with the land.
318318
319319 F. At the request of a city or town in the Tucson active management area that holds a type 1 non-irrigation grandfathered right under subsection A of this section, the director, in determining whether to designate or redesignate the city or town as having an assured water supply pursuant to section 45-576, shall include four and one-half acre-feet of groundwater for each acre of retired irrigated land to which the right is appurtenant, multiplied by the number of years between the year of retirement and the year of the request, minus the quantity of groundwater withdrawn from the land between June 12, 1980 and the year of the request, except that:
320320
321321 1. No groundwater may be included for any acre of retired irrigated land for any year after the land is developed for any municipal or industrial use.
322322
323323 2. The amount of groundwater that is included under this subsection shall not exceed four and one-half acre-feet for each acre of retired irrigated land to which the right is appurtenant multiplied by the number of years between the year of retirement and December 31, 2025 minus the quantity of groundwater withdrawn from the land between June 12, 1980 and December 31, 2025.
324324
325325 3. The net amount of groundwater included under this subsection shall not exceed two million acre-feet.
326326
327327 4. The city or town, before making the request of the director, shall extinguish any irrigation grandfathered rights or type 1 non-irrigation grandfathered rights held by the city or town and appurtenant to land acquired or contracted for by the city or town after June 12, 1980 in the same sub-basin subbasin.
328328
329329 G. In determining whether to designate a city or town as having an assured water supply pursuant to section 45-576, the director shall not consider the exercise of the right to withdraw groundwater under subsection F of this section to be the withdrawal of groundwater available from natural or artificial groundwater recharge. END_STATUTE
330330
331331 Sec. 5. Section 45-464, Arizona Revised Statutes, is amended to read:
332332
333333 START_STATUTE45-464. Type 2 non-irrigation grandfathered right not associated with retired irrigated land; determination of amount; ownership; definition
334334
335335 A. In an active management area, a person who owns land from which groundwater was being legally withdrawn and used for a non-irrigation purpose as of the date of the designation of the active management area has the right to withdraw annually:
336336
337337 1. If the person holds a certificate of exemption, the greater of:
338338
339339 (a) The amount of groundwater established in proceedings on the application for certificate of exemption, subject to any modification as a result of a finding on appeal of a factual mistake by the state land department or Arizona water commission in computing the amount of the authorized withdrawal, less the amount of any right obtained by the person pursuant to section 45-463.
340340
341341 (b) The maximum amount of groundwater legally withdrawn from such land and used by the person in any one of the five ten years preceding the date of the designation of the active management area, less the amount of any right obtained by the person pursuant to section 45-463.
342342
343343 2. If the person does not hold a certificate of exemption, the maximum amount of groundwater legally withdrawn from such land and used by the person withdrawing the groundwater in any one of the five ten years preceding the date of the designation of the active management area, less the amount of any right that is obtained pursuant to section 45-463 by the person withdrawing groundwater from such land which and that has not been subtracted by the person withdrawing the groundwater in calculating the amount of another right pursuant to this section.
344344
345345 B. If the calculation in subsection A of this section results in an amount greater than zero, that amount is a grandfathered right in addition to any right obtained pursuant to section 45-463.
346346
347347 C. For the purposes of this section, "person" includes:
348348
349349 1. A city, town or private water company which that owns land outside of the service area of such city, town or private water company from which groundwater was being legally withdrawn for a non-irrigation use as of the date of the designation of the active management area.
350350
351351 2. A city, town or private water company withdrawing groundwater from within its service area pursuant to a certificate of exemption.
352352
353353 3. Any other non-irrigation user.
354354
355355 D. If a person has been using groundwater for less than one year during the twelve months immediately preceding the date of the designation of the active management area, the amount of the grandfathered right pursuant to this section is the annual amount determined by the director to be reasonable for a full year to meet the requirements for a facility owned by such person in existence as of the date of the designation of the active management area.
356356
357357 E. If a person has received a certificate of environmental compatibility pursuant to title 40, chapter 2, article 6.2 for the construction of an electrical generating facility within a subsequent active management area for which expenditures or financial commitments for land acquisition, water development, materials, construction or engineering in excess of five hundred thousand dollars $500,000 have been made before the date of the notice of the initiation of designation procedures or the call for the election for the area, the amount of the grandfathered right pursuant to this section is the annual amount determined by the director to be reasonable to meet the operational requirements for the facility for a full year.
358358
359359 F. The right to withdraw groundwater pursuant to this section is a non-irrigation grandfathered right not associated with retired irrigated land, or a type 2 non-irrigation grandfathered right.
360360
361361 G. A type 2 non-irrigation grandfathered right may be leased. Except as provided in subsection H of this section, the owner or lessee of a type 2 non-irrigation grandfathered right may withdraw groundwater pursuant to the right only from a location within the same active management area in which the certificate of grandfathered right is issued.
362362
363363 H. Beginning July 1, 1994, the holder of a type 2 non-irrigation grandfathered right issued in the Tucson active management area prior to before July 1, 1994, may withdraw groundwater pursuant to the right only from a location within the same active management area in which the well or wells listed on the certificate of grandfathered right on July 1, 1994, are located. If no well is listed on the certificate of grandfathered right on July 1, 1994, the holder of the right may withdraw groundwater pursuant to the right only from a location within the same active management area in which the land from which the originating withdrawals were made is located. For the purposes of this subsection, the term "originating withdrawals" means the withdrawals of groundwater on which the issuance of a type 2 non-irrigation grandfathered right was based.
364364
365365 I. If the user of a type 2 non-irrigation grandfathered right is different from the owner of the right, either the owner, or the user of the right on behalf of the owner, may apply for a certificate of grandfathered right pursuant to section 45-476. END_STATUTE
366366
367-Sec. 6. Section 45-465, Arizona Revised Statutes, is amended to read:
368-
369-START_STATUTE45-465. Irrigation grandfathered right; determination of acres entitled to and amount; appurtenancy
370-
371-A. In an active management area, a person who owns land which that was legally irrigated in whole or in part with groundwater at any time during the five years preceding January 1, 1980 for initial active management areas or who owned land that was legally irrigated in whole or in part with groundwater at any time during the ten years preceding the date of the notice of the initiation of designation procedures or the call for the election for subsequent active management areas, which that is capable of being irrigated and which has not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 has the right to use groundwater for the irrigation of such land as determined pursuant to subsections B and C of this section.
372-
373-B. Except as provided in subsection C of this section, the director shall compute the maximum amount of groundwater which may be used pursuant to this section as follows:
374-
375-1. Determine the farm units, as defined in section 45-402, within the active management area.
376-
377-2. Determine the irrigation water duty, as defined in section 45-402, for each farm unit in an active management area, pursuant to sections 45-564 through 45-568.
378-
379-3. Determine the water duty acres for each farm within the farm unit. The water duty acres are the highest number of acres in the farm, taking land rotation into account, which that were legally irrigated during any one year in the five years preceding January 1, 1980 for initial active management areas or THAT were legally irrigated at any time during the ten years preceding the date of the notice of the initiation of designation procedures or the call for the election for subsequent active management areas.
380-
381-4. Determine the irrigation acres for each farm within the farm unit. The irrigation acres are the acres in the farm which that were legally irrigated at any time during the five years preceding January 1, 1980 for initial active management areas or THAT were legally irrigated at any time during the ten years preceding the date of the notice of the initiation of designation procedures or the call for the election for subsequent active management areas, which that are capable of being irrigated and which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469.
382-
383-5. Multiply the water duty acres for each farm within the farm unit by the irrigation water duty for the farm unit and divide that amount by the number of irrigation acres in the farm. The result shall be the maximum amount of groundwater which that may be used per year for the irrigation of each irrigation acre in the farm. If the farm is located in an active management area other than the Santa Cruz active management area and is irrigated solely with groundwater, the amount of groundwater used by the farm for irrigation shall be accounted for pursuant to section 45-467, subsection C. If a farm is located in an active management area other than the Santa Cruz active management area and is irrigated with a combination of surface water and groundwater, the amount of groundwater used by the farm for irrigation shall be accounted for pursuant to section 45-467, subsection D. If a farm is located in the Santa Cruz active management area, the amount of water, other than stored water, withdrawn from a well and used by the farm for irrigation purposes shall be accounted for pursuant to section 45-467, subsection E or F.
384-
385-C. A person who owns land described in subsection A of this section and whose water use on the land is regulated under a best management practices program that is adopted by the director pursuant to section 45-566.02, subsection F, section 45-567.02, subsection G or section 45-568.02, subsection G:
386-
387-1. Has the right to use groundwater for an irrigation use on the irrigation acres within that land as those acres are determined pursuant to subsection B, paragraph 4 of this section.
388-
389-2. Is exempt from the provisions of subsection B of this section with respect to that land.
390-
391-D. The right to use groundwater pursuant to this section for the irrigation of an irrigation acre is an irrigation grandfathered right and is appurtenant to that acre. An irrigation grandfathered right is owned by the owner of the land to which it is appurtenant and may be leased for an irrigation use with the land to which it is appurtenant.
392-
393-E. A person who owns or leases irrigation acres may use the total amount of groundwater allowed by the irrigation grandfathered right for such acres for the irrigation of all or a portion of such acres.
394-
395-F. If the irrigation water duty for the farm unit in which an irrigation acre is located is reduced by the director pursuant to article 9 of this chapter, the amount of groundwater which may be used for the irrigation of such acre pursuant to the irrigation grandfathered right under subsection B of this section is reduced accordingly.
396-
397-G. For the purposes of this chapter, the amount of groundwater which may be used or is used is the amount of groundwater withdrawn by the groundwater user, measured at the point of withdrawal, and the amount of groundwater received by the groundwater user from an irrigation district or other source.END_STATUTE
398-
399-Sec. 7. Section 45-476, Arizona Revised Statutes, is amended to read:
367+Sec. 6. Section 45-476, Arizona Revised Statutes, is amended to read:
400368
401369 START_STATUTE45-476. Application for certificate of grandfathered right
402370
403371 A. Except as provided in section 45-476.01, a person claiming the right to withdraw or receive and use groundwater pursuant to a grandfathered right shall file an application for a certificate of grandfathered right with the department not later than fifteen months after the date of the designation of the active management area on a form provided by the department.
404372
405373 B. The application for a certificate of grandfathered right not based upon on prior proceedings on a certificate of exemption shall include the following:
406374
407375 1. The name and mailing address of the applicant.
408376
409377 2. The name of the active management area within which the withdrawal of groundwater pursuant to the claimed grandfathered right is being or has been made.
410378
411379 3. If the application is for a type 1 non-irrigation grandfathered right:
412380
413381 (a) The legal description and a map of the retired irrigated land in respect of which the right is claimed.
414382
415383 (b) The date when the irrigated land was retired.
416384
417385 (c) Such evidence as the director shall require that the retired irrigated land has been held under the same ownership since it was retired and that a development plan for the proposed non-irrigation use existed at the time the land was retired.
418386
419387 (d) If in a subsequent active management area, the amount of groundwater used per acre for the retired irrigated land each year during the five ten years preceding the time the land was retired.
420388
421389 (e) Whether the well from which the water will be withdrawn is located in a groundwater replenishment district.
422390
423391 4. If the application is for a type 2 non-irrigation grandfathered right:
424392
425393 (a) The maximum amount of groundwater legally withdrawn from land owned by the applicant and used in any one year during the five ten years preceding the date of the designation of the active management area.
426394
427395 (b) If the person withdrawing groundwater from the land owned by the applicant has made an application for a type 1 non-irrigation grandfathered right, a copy of the application.
428396
429397 5. If the application is for an irrigation grandfathered right:
430398
431399 (a) The legal description and a map of all land owned by the applicant which THAT was legally irrigated at any time during the five years preceding January 1, 1980 for initial active management areas or the date of the designation of the active management area for subsequent active management areas and the highest number of acres legally irrigated with groundwater at one time in any one year during the five-year period.
432400
433401 (b) The type of crops grown on such land and the cropping patterns used during the five-year period.
434402
435403 (c) The irrigation methods and devices currently being used in the irrigation of such land.
436404
437405 6. The location of each well from which groundwater is being or has been withdrawn by the applicant to irrigate such land.
438406
439407 7. The sworn statement that the information contained in the application is true and correct to the best knowledge and belief of the applicant.
440408
441409 8. Any other information the director may require.
442410
443411 C. A person or his the person's successor claiming the right to use groundwater pursuant to a grandfathered right, described in whole or in part by a certificate of exemption, shall file an application for a certificate of grandfathered right as provided in subsection D of this section and shall automatically be entitled to a certificate or certificates of grandfathered right for the portion of the grandfathered right claimed which is evidenced by the certificate of exemption or established by the proceedings on the certificate of exemption. Notice of the application is not required and hearings shall not be held. If the applicant claims grandfathered rights in addition to the amount of use described in the certificate of exemption, application for such additional amount shall be made pursuant to subsection B of this section, and such application is subject to the notice, objection and hearing provisions applicable to applications made pursuant to that subsection.
444412
445413 D. The application for a certificate of grandfathered right based upon on prior proceedings upon on an application for a certificate of exemption shall include the following:
446414
447415 1. The name and mailing address of the applicant.
448416
449417 2. The name of the active management area within which the withdrawal of groundwater pursuant to the claimed grandfathered right is being or has been made.
450418
451419 3. The total amount of groundwater to be withdrawn annually under the certificate of exemption.
452420
453421 4. The number of retired irrigated acres described in the application for a certificate of exemption.
454422
455423 5. Such evidence as the director shall require that the retired irrigated land has been held under the same ownership since it was retired.
456424
457425 6. The number of the certificate of exemption and a copy of the certificate of exemption.
458426
459427 7. The sworn statement that the information contained in the application is true and correct to the best knowledge and belief of the applicant.
460428
461429 8. Any other information the director may require. END_STATUTE
462430
463-Sec. 8. Retroactivity
431+Sec. 7. Retroactivity
464432
465433 This act applies retroactively to from and after August 29, 2022.