Arizona 2025 2025 Regular Session

Arizona Senate Bill SB1236 Comm Sub / Analysis

Filed 04/17/2025

                    Assigned to NR 	AS PASSED BY HOUSE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Seventh Legislature, First Regular Session 
 
AMENDED 
FACT SHEET FOR S.B. 1236 
 
government anti-identification procedures; technical correction 
(NOW: storm water) 
Purpose 
Allows a storer in the Phoenix Active Management Area (AMA) 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 AMA water districts may replenish 
groundwater with Central Arizona Project water or water from any other lawfully available source 
except groundwater withdrawn from within an AMA (A.R.S. §§ 48-3771 and 48-4972).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 AMA 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 in the Phoenix AMA 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.  FACT SHEET – Amended  
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. Allows the Director of the ADWR to issue a permit to an underground storage facility solely 
for the storage of stormwater or for a combination of water sources. 
7. Requires the Director of ADWR to treat replenishment credits as groundwater and not as stored 
water. 
8. 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. 
9. Stipulates that the storage of stormwater must not affect, infringe on or interfere with vested 
or existing rights to the use of water. 
10. Defines stormwater as water that has been collected in a system designed to carry rainfall 
runoff from streets, sidewalks, gutters and other impervious surfaces, including those in 
subdivisions, to a location where the water is retained. 
11. Stipulates that stormwater does not include surface water, effluent, incidental recharge or net 
natural recharge. 
12. Makes technical changes. 
13. Becomes effective on the general effective date. 
Amendments Adopted by Committee 
• Adopted the strike-everything amendment. 
Amendments Adopted by Committee of the Whole 
1. Allows the Director of the ADWR to issue a permit to an underground storage facility solely 
for the storage of stormwater or for a combination of water sources. 
2. Makes technical changes.  FACT SHEET – Amended  
S.B. 1236 
Page 3 
 
 
Amendments Adopted by the House of Representatives 
1. Specifies that the outlined storer may only be in the Phoenix AMA. 
2. Stipulates that the storage of stormwater must not affect, infringe on or interfere with vested 
or existing rights to the use of water. 
3. Defines stormwater as water that has been collected in a system designed to carry rainfall 
runoff from streets, sidewalks, gutters and other impervious surfaces, including those in 
subdivisions, to a location where the water is retained. 
4. Stipulates that stormwater does not include surface water, effluent, incidental recharge or net 
natural recharge. 
5. Makes technical changes. 
Senate Action 	House Action 
NR 2/18/25 DPA/SE 4-3-1 NREW 3/25/25 DP 6-4-0-0 
3
rd
 Read 3/6/25  17-10-3 3
rd
 Read 4/16/25  33-25-2 
Prepared by Senate Research 
April 17, 2025 
SB/slp