The legislation significantly changes the obligations of municipal water providers by ensuring that customers receive compensation for wastewater they contribute. It delineates rights over effluent, establishing that any effluent not recharged in an active management area remains the property of the eligible customer, aiming to incentivize better water management practices. Municipal providers will now be required to account for effluent volumes and provide appropriate credits on water bills based on the proportional value of effluent not recharged.
Summary
House Bill 2419 introduces provisions for effluent compensation in Arizona, specifically addressing the relationship between municipal providers of water and eligible customers located within active management areas with a groundwater management goal of safe yield. This bill mandates that municipal providers compensate eligible customers for effluent produced from wastewater, particularly when the effluent is not recharged back in the eligible customers' active management area. The bill aims to recognize and protect the rights of customers while ensuring equitable management of water resources.
Contention
As discussions around HB 2419 unfold, notable concerns may arise regarding the feasibility of implementation for municipal providers. Providers must adapt to new accounting requirements and potentially adjust their financial models to accommodate this compensation structure. Opponents of the bill may argue that the additional administrative burden could detract from existing service provisions, while supporters emphasize the importance of recognizing customer contributions to wastewater management. The bill could also lead to legal challenges or disputes over how proportional shares are calculated.