ARIZONA STATE SENATE RESEARCH STAFF TO: MEMBERS OF THE SENATE NATURAL RESOURCES COMMITTEE DATE: February 17, 2025 SUBJECT: Strike everything amendment to S.B. 1236, relating to storm water Purpose Allows a storer to recharge stormwater within a constructed underground storage facility pursuant to outlined requirements and permits and receive a replenishment credit. Allows a storer to use replenishment credits or transfer the replenishment credits to any other eligible entity and offset an equal amount of the storer's replenishment obligation within the same subbasin for any year. Background Current statute allows a person to apply to the Director of the Arizona Department of Water Resources (ADWR) for a water storage permit and store water at a storage facility only pursuant to a water storage permit. The Director of ADWR may issue a water storage permit to store water at a storage facility if: 1) the applicant has a right to use the proposed source of water; 2) the applicant has applied for any water quality permit required by the Arizona Department of Environmental Quality and by federal law; and 3) the water storage will occur at a permitted storage facility. The Director of ADWR may only issue a water storage permit for up to 50 years unless statutorily outlined exceptions apply (A.R.S. § 45-831.01). Multi-county water conservation districts and active management area water districts may replenish groundwater with Central Arizona Project water or water from any other lawfully available source except groundwater withdrawn from within an active management area (A.R.S. §§ 48-3771 and 48-4972). Replenishment is the storage of water or use of long-term storage credits by a groundwater replenishment district, a multi-county water conservation district or an active management area water district to fulfill their statutorily outlined duties (A.R.S. § 45-802.01). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Allows a storer to recharge stormwater within a constructed underground storage facility pursuant to the operational terms of the water storage and constructed underground storage facility permits and in compliance with all applicable water quality permits and receive a replenishment credit. 2. Requires the Director of ADWR to annually determine the quantity of stormwater recharged by a storer and credit the storer's replenishment credit account with 95 percent of the total volume of recharged stormwater in the previous calendar year. SAWYER BESSLER LEGISLATIVE RESEARCH ANALYST NATURAL RESOURCES COMMITTEE Telephone: (602) 926-3171 STRIKER MEMO S.B.1236 Page 2 3. Requires the Director of ADWR to maintain a record of earned and transferred replenishment credits for each credit holder and debit credits from the holder's account equal to the amount of credits used. 4. Allows a storer to use replenishment credits or transfer the replenishment credits to any other eligible entity and offset an equal amount of the storer's replenishment obligation within the same subbasin for any year. 5. Allows a storer to use replenishment credits to offset the storer's replenishment if the offset is for: a) groundwater withdrawn from a well within two miles of the constructed underground storage facility where the replenishment occurred; or b) groundwater withdrawn and served by a water provider within the water provider's service area and a portion of the service area is located within two miles of the constructed underground storage facility where the replenishment occurred. 6. Requires the Director of ADWR to treat replenishment credits as groundwater and not as stored water. 7. Adds to the conditions that allow the Director of ADWR to issue a water storage permit that the proposed source of water is stormwater that will be recharged for aquifer replenishment in a constructed underground storage facility. 8. Makes technical changes. 9. Becomes effective on the general effective date.