Arizona 2025 Regular Session

Arizona House Bill HB2418 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: effluent; proportional share; recharge; compensation State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2418 Introduced by Representatives Kolodin: Hendrix, KeshelRepresentatives Kolodin: KeshelRepresentative KolodinRepresentative Kolodin An Act amending title 45, chapter 1, Arizona Revised Statutes, by adding article 16; relating to effluent. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: effluent; proportional share; recharge; compensation
10	10	State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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12	12	Introduced by Representatives Kolodin: Hendrix, KeshelRepresentatives Kolodin: KeshelRepresentative KolodinRepresentative Kolodin
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14	14	REFERENCE TITLE: effluent; proportional share; recharge; compensation
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40	40	HB 2418
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44	44	Introduced by
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46	46	Representatives Kolodin: Hendrix, KeshelRepresentatives Kolodin: KeshelRepresentative KolodinRepresentative Kolodin
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64	64	An Act
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68	68	amending title 45, chapter 1, Arizona Revised Statutes, by adding article
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70	70	16; relating to effluent.
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74	74	(TEXT OF BILL BEGINS ON NEXT PAGE)
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78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Title 45, chapter 1, Arizona Revised Statutes, is amended by adding article 16, to read: ARTICLE 16. EFFLUENT COMPENSATION START_STATUTE45-361. Definitions In this article, unless the context otherwise requires: 1. "Eligible customer" means a customer located in an active management area that has a groundwater management goal of safe yield and in which a municipal provider does all of the following: (a) Owns or operates a wastewater system that is connected to the customer's property. (b) Provides potable water to the customer. (c) Charges the customer for wastewater service. 2. "Municipal provider" has the same meaning prescribed in section 45-561. END_STATUTE START_STATUTE45-362. Effluent; ownership; mandatory compensation A. Notwithstanding any other law, a municipal provider that has an exclusive water service area, that owns or operates a wastewater system and that produces effluent from wastewater the municipal provider receives from eligible customers shall compensate the eligible customers for a proportional share of the full market value of effluent that the municipal provider does not recharge back in the eligible customers' active management area. B. Effluent generated by wastewater that an eligible customer provides to municipal providers and that the municipal provider does not recharge in the eligible customer's active management area is the property of the eligible customer. C. Before charging or billing an eligible customer for water service, each municipal provider shall: 1. Determine the total volume of wastewater that the municipal provider received from the eligible customer during the billing period. 2. Determine the total volume of effluent produced by the wastewater that the eligible customer provided to the municipal provider during the billing period. 3. Determine the total volume of effluent generated by wastewater that the eligible customer provided and that the municipal provider recharged in the eligible customer's active management area during the billing period as certified by the director. 4. Determine the total volume of effluent generated by wastewater that the eligible customer provided and that the municipal provider did not recharge in the eligible customer's active management area during the billing period. 5. Determine the full market value of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider did not recharge in the eligible customer's active management area. 6. Determine the eligible customer's proportional share of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider recharged in the eligible customer's active management area. 7. Determine the eligible customer's proportional share of the full market value of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider did not recharge in the eligible customer's active management area. 8. Award the eligible customer a credit on the eligible customer's bill that is equal to the eligible customer's proportional share of the full market value of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider did not recharge in the eligible customer's active management area. D. For the purposes of this section: 1. Effluent that a municipal provider recharges in an eligible customer's active management area includes both of the following: (a) Effluent that a municipal provider uses to satisfy a replenishment obligation pursuant to title 48, chapter 22, article 4. (b) Effluent that a municipal provider recharges in the eligible customer's active management area without receiving any consideration. 2. Effluent that a municipal provider does not recharge in an eligible customer's active management area includes both of the following: (a) Effluent that is recharged pursuant to chapter 3.1 of this title to generate, earn or accrue long-term storage credits. (b) Effluent that is recharged to satisfy a legal, regulatory, administrative, compliance or contractual need or obligation of the municipal provider beyond the requirements of this section. END_STATUTE START_STATUTE45-363. Agency enforcement; private right of action; challenges; damages A. The director may enforce this article. B. An eligible customer or the eligible customer's agent may do either of the following: 1. submit a written complaint to the director that challenges a municipal provider's determination of proportional share pursuant to section 45-362, subsection c, paragraph 6 or 7. 2. file a private right of action in the superior court of this state that challenges a municipal provider's determination of proportional share pursuant to section 45-362, subsection c, paragraph 6 or 7. C. On RECEIPT of a written complaint or on notice that an ELIGIBLE customer or the ELIGIBLE customer's agent has filed a complaint in the superior court of this state, The director shall investigate the ALLEGATIONs CONTAINED in the complaint and provide any RELEVANT INFORMATION to the ELIGIBLE customer, the ELIGIBLE customer's agent and the MUNICIPAL provider. D. If the superior court or the director finds that A municipal provider miscalculated an eligible customer's proportional share and undercompensated the eligible customer, the MUNICIPAL provider shall be liable to the eligible customer for damages, ATTORNEY fees and interest. END_STATUTE
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Title 45, chapter 1, Arizona Revised Statutes, is amended by adding article 16, to read:
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84	84	ARTICLE 16. EFFLUENT COMPENSATION
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86	86	START_STATUTE45-361. Definitions
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88	88	In this article, unless the context otherwise requires:
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90	90	1. "Eligible customer" means a customer located in an active management area that has a groundwater management goal of safe yield and in which a municipal provider does all of the following:
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92	92	(a) Owns or operates a wastewater system that is connected to the customer's property.
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94	94	(b) Provides potable water to the customer.
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96	96	(c) Charges the customer for wastewater service.
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98	98	2. "Municipal provider" has the same meaning prescribed in section 45-561. END_STATUTE
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100	100	START_STATUTE45-362. Effluent; ownership; mandatory compensation
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102	102	A. Notwithstanding any other law, a municipal provider that has an exclusive water service area, that owns or operates a wastewater system and that produces effluent from wastewater the municipal provider receives from eligible customers shall compensate the eligible customers for a proportional share of the full market value of effluent that the municipal provider does not recharge back in the eligible customers' active management area.
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104	104	B. Effluent generated by wastewater that an eligible customer provides to municipal providers and that the municipal provider does not recharge in the eligible customer's active management area is the property of the eligible customer.
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106	106	C. Before charging or billing an eligible customer for water service, each municipal provider shall:
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108	108	1. Determine the total volume of wastewater that the municipal provider received from the eligible customer during the billing period.
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110	110	2. Determine the total volume of effluent produced by the wastewater that the eligible customer provided to the municipal provider during the billing period.
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112	112	3. Determine the total volume of effluent generated by wastewater that the eligible customer provided and that the municipal provider recharged in the eligible customer's active management area during the billing period as certified by the director.
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114	114	4. Determine the total volume of effluent generated by wastewater that the eligible customer provided and that the municipal provider did not recharge in the eligible customer's active management area during the billing period.
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116	116	5. Determine the full market value of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider did not recharge in the eligible customer's active management area.
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118	118	6. Determine the eligible customer's proportional share of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider recharged in the eligible customer's active management area.
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120	120	7. Determine the eligible customer's proportional share of the full market value of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider did not recharge in the eligible customer's active management area.
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122	122	8. Award the eligible customer a credit on the eligible customer's bill that is equal to the eligible customer's proportional share of the full market value of the total volume of effluent generated by wastewater that the eligible customer provided during the billing period and that the municipal provider did not recharge in the eligible customer's active management area.
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124	124	D. For the purposes of this section:
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126	126	1. Effluent that a municipal provider recharges in an eligible customer's active management area includes both of the following:
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128	128	(a) Effluent that a municipal provider uses to satisfy a replenishment obligation pursuant to title 48, chapter 22, article 4.
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130	130	(b) Effluent that a municipal provider recharges in the eligible customer's active management area without receiving any consideration.
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132	132	2. Effluent that a municipal provider does not recharge in an eligible customer's active management area includes both of the following:
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134	134	(a) Effluent that is recharged pursuant to chapter 3.1 of this title to generate, earn or accrue long-term storage credits.
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136	136	(b) Effluent that is recharged to satisfy a legal, regulatory, administrative, compliance or contractual need or obligation of the municipal provider beyond the requirements of this section. END_STATUTE
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138	138	START_STATUTE45-363. Agency enforcement; private right of action; challenges; damages
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140	140	A. The director may enforce this article.
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142	142	B. An eligible customer or the eligible customer's agent may do either of the following:
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144	144	1. submit a written complaint to the director that challenges a municipal provider's determination of proportional share pursuant to section 45-362, subsection c, paragraph 6 or 7.
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146	146	2. file a private right of action in the superior court of this state that challenges a municipal provider's determination of proportional share pursuant to section 45-362, subsection c, paragraph 6 or 7.
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148	148	C. On RECEIPT of a written complaint or on notice that an ELIGIBLE customer or the ELIGIBLE customer's agent has filed a complaint in the superior court of this state, The director shall investigate the ALLEGATIONs CONTAINED in the complaint and provide any RELEVANT INFORMATION to the ELIGIBLE customer, the ELIGIBLE customer's agent and the MUNICIPAL provider.
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150	150	D. If the superior court or the director finds that A municipal provider miscalculated an eligible customer's proportional share and undercompensated the eligible customer, the MUNICIPAL provider shall be liable to the eligible customer for damages, ATTORNEY fees and interest. END_STATUTE