Arizona 2025 2025 Regular Session

Arizona House Bill HCR2039 Comm Sub / Analysis

Filed 03/21/2025

                    Assigned to NR 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Seventh Legislature, First Regular Session 
 
FACT SHEET FOR H.C.R. 2039 
 
assured water supply; legislative intent 
Purpose 
Expresses the Legislatures opposition to the Arizona Department of Water Resources 
(ADWR) rulemaking relating to the alternative path to the designation of assured water supply 
(ADAWS) and determines that it is contrary to Arizona statute and therefore null and void. 
Expresses the Legislatures opposition to any rule, regulation, policy or condition that the Governor 
or the Director of ADWR proposes or adopts that meets outlined conditions.  
Background 
A person who proposes to offer subdivided lands for sale or lease in an active management 
area (AMA) must apply for and obtain a certificate of assured water supply from the Director of 
ADWR before presenting the plat for approval to the city, town or county in which the land is 
located and before filing with the Arizona Real Estate Commissioner a notice of intention to offer 
such lands for sale or lease, unless the subdivider has obtained a written commitment of water 
service for the subdivision from a designated provider. 
An assured water supply means that: 1) sufficient groundwater, surface water or effluent 
of adequate quality will be continuously available to satisfy the water needs of the proposed use 
for at least 100 years; 2) the projected groundwater use is consistent with the management plan 
and achievement of the management goal for the AMA; and 3) the financial capability has been 
demonstrated to construct the water facilities necessary to make the supply of water available for 
the proposed use, including a delivery system and any storage facilities or treatment works (A.R.S. 
ยง 45-576). 
On August 23, 2024, ADWR issued a notice of proposed rulemaking for ADAWS. On 
November 22, 2024, the Governor's Regulator Review Council approved the ADAWS rulemaking 
with an immediate effective date upon filing with the Secretary of State and on November 25, 
2024, ADWR filed its notice of final rulemaking for ADAWS with the Secretary of State (ADWR). 
Provisions 
1. Expresses the Legislatures opposition to the rules proposed by ADWR on August 23, 2024, 
and approved by Secretary of State on November 25, 2024, and determines that it is contrary 
to Arizona statutory law and therefore null and void.  
2. Expresses the Legislatures opposition to any rule, regulation, policy or condition that the 
Governor or Director of ADWR proposes or adopts that:  
a) requires an applicant for a certificate or designation of assured water supply meet, provide 
or demonstrate more water than is necessary to satisfy the water needs of the applications 
proposed use for one hundred years; or   FACT SHEET 
H.C.R. 2039 
Page 2 
 
 
b) denies or withholds the approval or timely resolution of an application for a certificate or 
designation of assured water supply on the basis: 
i. that any portion or all of the groundwater that the applicant is or will be relying on to 
satisfy a portion of the water needs of the proposed use will not be continuously available 
for one hundred years, if the applicant has otherwise demonstrated that the applicant has 
sufficient surface water, effluent or any combination of these non-groundwater supplies 
continuously available for the remainder of the one hundred-year period;  
ii. that the applicant relies on a combination of groundwater, surface water or effluent that 
is or may be comingled in one or more districts, systems or service areas; or  
iii. of other users well depth or unmet demand if the applicant has otherwise demonstrated 
that the applicant has sufficient groundwater, surface water, effluent or any 
combination continuously available to satisfy the water needs of the applicants 
proposed use for 100 years.   
3. Declares that any rule, regulation, policy or condition, proposed by the Governor or Director 
of ADWR as outlined, is contrary to the text and legislative intent of the of the 1980 
Groundwater Management Act and is accordingly void and unenforceable.  
4. Declares that the Legislature determines that when an applicant submits an application for a 
certificate or designation of assured water supply , and the application indicates that the 
applicant is or will be relying on groundwater to satisfy any part or all of the water needs of 
the proposed use during any part or all of the 100 year period that the Director of ADWR must 
ascertain the maximum volume of groundwater, measured in years that the Director of ADWR 
deems is continuously available.  
5. Declares that the Legislature determines that, if the application meets the requirements of the 
1980 Groundwater Management Act and the legislative intent articulated in this resolution, the 
Director of ADWR has no authority to deny or withhold the issuance of a certificate or 
designation of assured water supply for the processing of an application.  
House Action 
NREW 2/14/25 DP 6-3-0-1 
3
rd
 Read 2/26/25 32-26-2 
Prepared by Senate Research 
March 21, 2025 
SB/SN/slp