Assigned to NR FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1611
physical availability exemption credit; groundwater
Purpose
Allows a person who owns land within an active management area (AMA) that may be
legally irrigated with groundwater pursuant to an irrigation grandfathered right (IGFR) to
permanently relinquish all or a portion of the IGFR in exchange for a physical availability
exemption credit (credit).
Background
A person who proposes to offer subdivided lands for sale or lease in an AMA must apply
for and obtain a certificate from the Director of the Arizona Department of Water Resources
(ADWR) before presenting the plat for approval to the city, town or county in which the land is
located and before filing with the State Real Estate Commissioner a notice of intention to offer
such land for sale or lease. 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. § 45-576).
In an AMA, a person who owns land which was legally irrigated in whole or in part with
groundwater at any time during the five years preceding the date of the notice of the initiation of
designation procedures or the call for the election for subsequent AMA, which is capable of being
irrigated and which has not been retired from irrigation for a non-irrigation use has the right to use
groundwater for the irrigation of such land (A.R.S. § 45-465).
For each AMA in which member lands or member service areas for a multi-county water
conservation district (District) are or may be located, the District must replenish groundwater in
an amount equal to the groundwater replenishment obligation for that AMA. A parcel of member
land that is included in the service area of a municipal provider that is a member service area and
that has been designated as having an assured water supply has no further parcel replenishment
obligation. Additionally, if a parcel of member land is included in the service area of a municipal
provider that is not a member service area but has been designated as having an assured water
supply, the parcel of member land has no parcel replenishment obligation and the District has no
groundwater replenishment obligation attributable to that parcel of member land for as long as the
designation remains in effect (A.R.S. § 48-3771).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation. FACT SHEET
S.B. 1611
Page 2
Provisions
1. Allows a person who owns land within an AMA that may be legally irrigated with groundwater
pursuant to an IGFR to permanently relinquish all or a portion of the IGFR in exchange for a Credit
if both of the following apply:
a) within a reasonable time before or after the land is retired, the person applies to the Director of
ADWR to permanently relinquish all or a portion of the IGFR in exchange for a Credit; and
b) the person's use of the IGFR complies with outlined requirements and the applicable
management plan.
2. Allows a person who receives a Credit to choose to annually withdraw and use the following
amount of groundwater in the Phoenix and Tucson AMAs as follows:
a) two acre-feet per irrigation acre in the farm or portion of the farm;
b) one and one-half acre-feet per irrigation acre in the farm or portion of the farm; or
c) one acre-foot per irrigation acre in the farm or a portion of the farm.
3. Stipulates, for the Phoenix and Tucson AMAs, if the volume of the Credit is two acre-feet per
irrigation acre, that 67 percent of the groundwater used on that parcel of land must be
replenished in accordance with the applicable assured water supply rules adopted by ADWR
for the AMA where the land is located, and that 33 percent of the groundwater used is deemed
consistent with the AMA goal.
4. Stipulates, for the Phoenix and Tucson AMAs, if the volume of the Credit is one and one-half
acre-feet per irrigation acre, that 50 percent of the groundwater used on that parcel of land must
be replenished in accordance with the applicable assured water supply rules adopted by ADWR
for the AMA where the land is located, and that 50 percent of the groundwater used is deemed
consistent with the AMA goal.
5. Stipulates, for the Phoenix and Tucson AMAs, if the volume of the Credit is one acre-foot per
irrigation acre, that 33 percent of the groundwater used on that parcel of land must be
replenished in accordance with the applicable assured water supply rules adopted by ADWR
for the AMA where the land is located, and that 67 percent of the groundwater used is deemed
consistent with the AMA goal.
6. Allows a person who receives a Credit to choose to annually withdraw and use the following
amount of groundwater in the Pinal AMA as follows:
a) one and one-half acre-feet per irrigation acre in the farm or portion of the farm;
b) one acre-foot per irrigation acre in the farm or portion of the farm; and
c) one-half acre-foot per irrigation acre in the farm or a portion of the farm.
7. Stipulates, for the Pinal AMA, if the volume of the Credit is one and one-half acre-feet per
irrigation acre, that 100 percent of the groundwater used on that parcel of land must be
replenished in accordance with the applicable assured water supply rules adopted by ADWR
for the AMA where the land is located, and that none of the groundwater used is deemed
consistent with the AMA goal.
FACT SHEET
S.B. 1611
Page 3
8. Stipulates, for the Pinal AMA, if the volume of the Credit is one acre-foot per irrigation acre,
that 67 percent of the groundwater used on that parcel of land must be replenished in
accordance with the applicable assured water supply rules adopted by ADWR for the AMA
where the land is located, and that 33 percent of the groundwater used is deemed consistent
with the AMA goal.
9. Stipulates, for the Pinal AMA, if the volume of the credit is one-half acre-foot per irrigation
acre, that 33 percent of the groundwater used on that parcel of land must be replenished in
accordance with the applicable assured water supply rules adopted by ADWR for the AMA
where the land is located, and that 67 percent of the groundwater used is deemed consistent
with the AMA goal.
10. Requires the Director of ADWR to identify all of the following when issuing a Credit:
a) the volume of groundwater that may be withdrawn and used and the corresponding
replenishment obligation;
b) the number and location of the acres that are associated with the relinquishment;
c) the wells that have been used to serve the IGFR;
d) the owner of the land at the time of the relinquishment, which must be the holder of the
Credit; and
e) the Director of ADWR's outlined determination relating to whether the applicant
demonstrated that groundwater can be withdrawn to serve the proposed use for 100 years
would be satisfied based on the Director of ADWR's most recent assured water supply
projection.
11. Requires the outlined determination to be applied to an assured water supply application that
is submitted to ADWR within two years after the date the physical availability exemption
credit is issued and to remain valid until the Director of ADWR makes a final decision on the
assured water supply application.
12. Requires the volume of groundwater calculated for a Credit, on request of the holder of a Credit
for the purposes of an application of an assured water supply, to be exempt from the
requirement to demonstrate that the groundwater supply is physically available if the following
apply:
a) the proposed groundwater use associated with an application for an assured water supply
is on one or more of the following locations:
i. the retired irrigation acres; or
ii. land within one mile of the exterior boundary of the retired irrigation acres;
b) the applicant for an assured water supply proposes to withdraw groundwater from one or
more of the following locations:
i. wells that were used to serve the IGFR;
ii. wells located within one mile of any well that was used to serve the IGFR;
iii. wells located on the acres associated with the relinquishment; or
iv. wells located within one mile of the acres associated with the relinquishment; and
c) the applicant demonstrates, using a method of analysis approved by the Director of ADWR,
that groundwater can be withdrawn to serve the proposed use for 100 years without
exceeding the depth of the aquifer or the applicable depth-to-static water level, whichever
is less. FACT SHEET
S.B. 1611
Page 4
13. Requires, if a portion of a parcel of land is within one mile of the exterior boundary of the
retired irrigation acres, the entire parcel to be included for the outlined exemption.
14. Stipulates for the purposes of the outlined demonstration:
a) that the Director of ADWR must not consider other withdrawals of groundwater that
exceed the depth of the aquifer or the applicable depth-to-static water level during the
100-year period; and
b) for groundwater withdrawals located within one mile of any well that was used to serve
the outlined IGFR, the applicant may rely on the Director of ADWR's most recent assured
water supply projection to satisfy the requirement.
15. Requires the Director of ADWR, on request from the holder of an IGFR, to make a
determination to grant a Credit within an overall time frame of 90 days.
16. Requires the overall time frame to include 30 days for an administrative completeness review
and 60 days for a substantive review.
17. Allows the time frame to be extended by mutual agreement.
18. Requires the Director of ADWR, before the Director issues a Credit, to notify the holder of the
IGFR in writing whether outlined criteria relating to groundwater withdrawals within one mile
of any well that was used to serve the outlined IGFR would be satisfied based on the Director
of ADWR's most recent assured water supply projection and to request written confirmation
that the holder of the IGFR would like to proceed with the relinquishment.
19. Prohibits a person from receiving a Credit for a volume of water that exceeds the person's
IGFR.
20. Allows, on notice to the Director of ADWR by the holder of a Credit, some or all of the Credit
to be assigned to a municipal provider or to a subsequent owner of the land associated with the
relinquishment.
21. Requires the Director of ADWR, if only a portion of a Credit is applied to a Certificate or a
designation of assured water supply, to identify the volumes and corresponding replenishment
obligation remaining for the Credit.
22. Requires a Credit to be used to support the designation if a municipal provider that serves land
associated with the relinquishment becomes a designated provider after the issuance of a
certificate of assured water supply based on the Credit.
23. Requires the applicable depth-to-static water level for each AMA, for the purposes of seeking
an exemption from the physical availability requirement for an assured water supply, to be:
a) 1,100 feet below land surface in the Pinal AMA; and
b) 1,000 feet below land surface in all other AMAs.
24. Allows a person that replenishes groundwater pursuant to a Credit to replenish with effluent. FACT SHEET
S.B. 1611
Page 5
25. Stipulates that a person that receives a Credit in the statutorily outlined area delineated for
exemption is not subject to any replenishment obligation relating to permanent relinquishment
of IGFR's for Credits.
26. Outlines statutory requirements that govern administrative proceedings, rehearing or review
and judicial review of final decisions of the Director of ADWR.
27. Defines municipal provider and well.
28. Makes technical and conforming changes.
29. Becomes effective on the general effective date.
Prepared by Senate Research
February 17, 2025
SB/slp