HB 2298
Initials CW Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: NREW DPA/SE 5-3-0-2
HB 2298: technical correction; management goals; AMAs
NOW: physical availability exemption credit; groundwater
Sponsor: Representative Griffin, LD 19
House Engrossed
Overview
Allows a person who owns land in an active management area (AMA) with an irrigation
grandfathered right (IGFR), to permanently relinquish all or a portion of the IGFR in
exchange for a physical availability exemption credit.
History
The right to withdraw or receive and use groundwater in an AMA is known as a
grandfathered right. There are three categories of grandfathered rights:
a) non-irrigation grandfathered rights associated with retired irrigated lands;
b) non-irrigation grandfathered rights that may be sold separately from retired irrigated
lands; and
c) irrigation grandfathered rights (A.R.S. § 45-462).
An irrigation grandfathered right is associated with land in an AMA that was legally
irrigated with groundwater between January 1, 1975 and January 1, 1980 and has not been
retired from irrigation for non-irrigation use. To irrigate means to grow crops for sale, human
consumption or livestock or poultry feed by applying water on two or more acres (A.R.S. §§
45-402, 45-465).
Provisions
1. Allows a person who owns land within an AMA that may be legally irrigated with
groundwater pursuant to an irrigation grandfathered right, to permanently relinquish all
or a portion of the IGFR in exchange for a physical availability exemption credit
(exemption credit) if certain conditions are met. (Sec. 1)
2. Provides that a physical availability exemption credit may be used to withdraw and use
a certain volume of groundwater each year for non-irrigation use in:
a) the Phoenix and Tucson AMAs: and
b) the Pinal AMA. (Sec. 1)
3. Outlines replenishment obligations for groundwater used under the physical availability
exemption credit. (Sec. 1)
4. Requires the Director of ADWR to identify the following when issuing a physical
availability exemption credit:
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2298
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a) the volume of groundwater that may be withdrawn and used and the corresponding
replenishment obligation;
b) the number and location of the acres that are associated with the relinquishment;
c) the wells that have been used to serve the irrigation grandfathered right;
d) the owner of the land at the time of the relinquishment, which shall be the holder of
the physical availability exemption credit; and
e) the determination that, based on the most recent assured water supply projection, the
applicant demonstrates that groundwater can be withdrawn to serve the proposed use
for one hundred years without exceeding the lesser of either the depth of the aquifer
or the applicable depth to static water level. (Sec. 1)
5. Requires that the Director's determination be applied to an assured water supply
application that is submitted to ADWR within two years after the physical availability
exemption credit is granted and remain valid until the Director makes a decision on the
assured water supply application. (Sec. 1)
6. Exempts a holder of a physical availability exemption credit from the requirement to
demonstrate that groundwater supply is physically available in an application for an
assured water supply if certain provided conditions apply. (Sec. 1)
7. Outlines ADWR responsibilities with respect to the timeframe and notification
requirements to process a request for an exemption credit. (Sec. 1)
8. Prohibits a person from receiving a physical availability exemption credit that exceeds
that person's irrigation grandfathered right. (Sec. 1)
9. Authorizes, with notice to the director, a holder of a physical availability exemption credit
to assign some or all of the credit to a municipal provider or a subsequent owner of the
land associated with the relinquishment. (Sec. 1)
10. Requires the Director to identify the volumes and corresponding replenishment obligation
remaining for the physical availability exemption credit if only a portion of the credit is
applied to a certificate of assured water supply or a designation of assured water supply.
(Sec. 1)
11. Mandates a physical availability exemption credit that is the basis for a certificate of
assured water supply for land served by a municipal provider be used to support the
designation of the municipal provider that becomes a designated provider. (Sec. 1)
12. Provides, by reference, the requirements for:
a) administrative proceedings;
b) rehearing or review; and
c) judicial review. (Sec. 1)
13. Outlines the applicable depth-to-static water level for each AMA. (Sec. 1)
14. Permits replenishment obligations be met with effluent. (Sec. 1)
15. Exempts a holder of a physical availability exemption credit from replenishment
obligation if they meet the criteria for replenishment obligation outlined in A.R.S. § 45-
411.01. (Sec. 1)
16. Defines by reference:
a) municipal provider; and
b) well. (Sec. 1) HB 2298
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17. Provides that the amount of groundwater calculated for the physical availability
exemption credit is exempt from the physical availability requirement of an assured
water supply if outlined conditions are met. (Sec. 2)
18. Prohibits the Director from including any volume of groundwater that is subject to a
physical availability credit for the calculation used in modifying the designation of
assured water supply in the Pinal AMA. (Sec. 3)
19. Makes technical and conforming changes. (Sec. 2 and 3)