Assigned to NR FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session FACT SHEET FOR S.B. 1260 assured water supply; agricultural water Purpose Allows the Director of the Arizona Department of Water Resources (ADWR) to designate a portion of the city or town that is located on lands served by a contracted agricultural water company as having an assured water supply, if outlined conditions are met. Background 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 active management area (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. § 45-576). On application to ADWR by a city or town, the Director of ADWR may designate a portion of a city or town that is located both in the area delineated for exemption and in the Phoenix AMA as having an assured water supply if: 1) the portion of the city or town seeking an assured water supply designation is located entirely within an irrigation and water conservation district; 2) the city or town seeking an assured water supply designation has contracted with the irrigation and water conservation district for a term of not less than 100 years under which the city or town will receive water that the landowners in the district have the right to use on their lands and will treat and deliver the water for exclusive use on irrigation and conservation district lands for municipal use; 3) sufficient surface water or effluent of adequate quality will be continuously available to satisfy the portion of a city's or town's proposed water needs for not less than 100 years; and 4) the city or town demonstrates the financial capability to construct the water facilities, including delivery systems, storage facilities and treatment works, necessary to make the supply of water available for the proposed use (A.R.S. § 45-576.10). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Modifies the conditions on which a portion of a city or town may be designated as having an assured water supply by allowing the Director of ADWR, on application to ADWR by the city or town, to designate a portion of the city or town that is located both in the area delineated for exemption and in the Phoenix AMA as having an assured water supply, if: a) the portion of the city or town seeking an assured water supply designation is located on lands served by an agricultural water company; and b) the city or town seeking an assured water supply designation has contracted with the agricultural water company for a term of not less than 100 years under which the city or town will receive water that the landowners in the district have the right to use on lands served by an agricultural water company. FACT SHEET S.B. 1260 Page 2 2. Makes technical changes. 3. Becomes effective on the general effective date. Prepared by Senate Research January 31, 2025 SB/slp