Bill Text: AZ HB2586 | 2019 | Fifty-fourth Legislature 1st Regular | Introduced
Bill Title: Groundwater replenishment; water supply; credits
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-04 - House Committee of the Whole action: Retained on the Calendar [HB2586 Detail]
Download: Arizona-2019-HB2586-Introduced.html
|
REFERENCE TITLE: groundwater replenishment; water supply; credits |
|
State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
|
|
HB 2586 |
|
|
|
Introduced by Representative Cook
|
AN ACT
amending sections 45-576, 45-576.02 and 45-576.03, Arizona Revised Statutes; amending section 45-802.01, Arizona Revised Statutes, as amended by Laws 2012, chapter 312, section 2; amending section 45-802.01, Arizona Revised Statutes, as amended by Laws 2013, chapter 168, section 4; amending sections 45-834.01, 45-852.01, 45-855.01, 45-859.01, 48‑3701, 48‑3713, 48-3713.01, 48-3771, 48-3772 and 48-3781, Arizona Revised Statutes; relating to water.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 45-576, Arizona Revised Statutes, is amended to read:
45-576. Certificate of assured water supply; designated cities, towns and private water companies; exemptions; definition
A. Except as provided in subsections G and J of this section, a person who proposes to offer subdivided lands, as defined in section 32‑2101, for sale or lease in an active management area shall apply for and obtain a certificate of assured water supply from the director prior to before presenting the plat for approval to the city, town or county in which the land is located, where such is required, and prior to before filing with the state real estate commissioner a notice of intention to offer such lands for sale or lease, pursuant to section 32‑2181, unless the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply pursuant to this section.
B. Except as provided in subsections G and J of this section, a city, town or county may approve a subdivision plat only if the subdivider has obtained a certificate of assured water supply from the director or the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply pursuant to this section. The city, town or county shall note on the face of the approved plat that a certificate of assured water supply has been submitted with the plat or that the subdivider has obtained a written commitment of water service for the proposed subdivision from a city, town or private water company designated as having an assured water supply pursuant to this section.
C. Except as provided in subsections G and J of this section, the state real estate commissioner may issue a public report authorizing the sale or lease of subdivided lands only on compliance with either of the following:
1. The subdivider, owner or agent has paid any activation fee required under section 48‑3772, subsection A, paragraph 7 and any replenishment reserve fee required under section 48‑3774.01, subsection A, paragraph 2 and has obtained a certificate of assured water supply from the director.
2. The subdivider has obtained a written commitment of water service for the lands from a city, town or private water company designated as having an assured water supply pursuant to this section and the subdivider, owner or agent has paid any activation fee required under section 48‑3772, subsection A, paragraph 7.
D. The director shall designate private water companies in active management areas that have an assured water supply. If a city or town acquires a private water company that has contracted for central Arizona project water, the city or town shall assume the private water company's contract for central Arizona project water.
E. The director shall designate cities and towns in active management areas where an assured water supply exists. If a city or town has entered into a contract for central Arizona project water, the city or town is deemed to continue to have an assured water supply until December 31, 1997. Commencing on January 1, 1998, the determination that the city or town has an assured water supply is subject to review by the director and the director may determine that a city or town does not have an assured water supply.
F. The director shall notify the mayors of all cities and towns in active management areas and the chairmen of the boards of supervisors of counties in which active management areas are located of the cities, towns and private water companies designated as having an assured water supply and any modification of that designation within thirty days of the designation or modification. If the service area of the city, town or private water company has qualified as a member service area pursuant to title 48, chapter 22, article 4, the director shall also notify the conservation district of the designation or modification and shall report the projected average annual replenishment obligation for the member service area based on the projected and committed average annual demand for water within the service area during the effective term of the designation or modification subject to any limitation in an agreement between the conservation district and the city, town or private water company. For each city, town or private water company that qualified as a member service area under title 48, chapter 22 and was designated as having an assured water supply before January 1, 2004, the director shall report to the conservation district on or before January 1, 2005 the projected average annual replenishment obligation based on the projected and committed average annual demand for water within the service area during the effective term of the designation subject to any limitation in an agreement between the conservation district and the city, town or private water company. Persons proposing to offer subdivided lands served by those designated cities, towns and private water companies for sale or lease are exempt from applying for and obtaining a certificate of assured water supply.
G. This section does not apply in the case of the sale of lands for developments that are subject to a mineral extraction and processing permit or an industrial use permit pursuant to sections 45‑514 and 45‑515.
H. The director shall adopt rules to carry out the purposes of this section. On or before January 1, 2008, the rules shall provide for a reduction in water demand for an application for a designation of assured water supply or a certificate of assured water supply if a gray water reuse system will be installed that meets the requirements of the rules adopted by the department of environmental quality for gray water systems and if the application is for a certificate of assured water supply, the land for which the certificate is sought must qualify as a member land in a conservation district pursuant to title 48, chapter 22, article 4. For the purposes of this subsection, "gray water" has the same meaning prescribed in section 49‑201.
I. If the director designates a municipal provider as having an assured water supply under this section and the designation lapses or otherwise terminates while the municipal provider's service area is a member service area of a conservation district, the municipal provider or its successor shall continue to comply with the consistency with management goal requirements in the rules adopted by the director under subsection H of this section as if the designation was still in effect with respect to the municipal provider's designation uses. When determining compliance by the municipal provider or its successor with the consistency with management goal requirements in the rules, the director shall consider only water delivered by the municipal provider or its successor to the municipal provider's designation uses. A person is the successor of a municipal provider if the person commences water service to uses that were previously designation uses of the municipal provider. Any groundwater delivered by the municipal provider or its successor to the municipal provider's designation uses in excess of the amount allowed under the consistency with management goal requirements in the rules shall be considered excess groundwater for purposes of title 48, chapter 22. For the purposes of this subsection, "designation uses" means all water uses served by a municipal provider on the date the municipal provider's designation of assured water supply lapses or otherwise terminates and all recorded lots within the municipal provider's service area that were not being served by the municipal provider on that date but that received final plat approval from a city, town or county on or before that date. Designation uses do not include industrial uses served by an irrigation district under section 45‑497.
J. Subsections A, B and C of this section do not apply to a person who proposes to offer subdivided land for sale or lease in an active management area if all the following apply:
1. The director issued a certificate of assured water supply for the land to a previous owner of the land and the certificate was classified as a type a certificate under rules adopted by the director pursuant to subsection H of this section.
2. The director has not revoked the certificate of assured water supply described in paragraph 1 of this subsection, and proceedings to revoke the certificate are not pending before the department or a court. The department shall post on its website a list of all certificates of assured water supply that have been revoked or for which proceedings are pending before the department or a court.
3. The plat submitted to the department in the application for the certificate of assured water supply described in paragraph 1 of this subsection has not changed.
4. Water service is currently available to each lot within the subdivided land and the water provider listed on the certificate of assured water supply described in paragraph 1 of this subsection has not changed.
5. The subdivided land qualifies as a member land under title 48, chapter 22 and the subdivider has paid any activation fee required under section 48‑3772, subsection A, paragraph 7 and any replenishment reserve fee required under section 48‑3774.01, subsection A, paragraph 2.
6. The plat is submitted for approval to a city, town or county that is listed on the department's website as a qualified platting authority.
K. Subsection J of this section does not affect the assignment of a certificate of assured water supply as prescribed by section 45‑579.
L. FOR LAND LOCATED IN THE PINAL ACTIVE MANAGEMENT AREA, tHE INITIAL TERM OF AN ANALYSIS OF ASSURED WATER SUPPLY ISSUED BY THE DIRECTOR is TEN YEARS. A HOLDER OF AN ANALYSIS OF ASSURED WATER SUPPLY PERTAINING TO LAND LOCATED IN THE PINAL ACTIVE MANAGEMENT AREA MAY APPLY TO EXTEND THE ANALYSIS before THE EXPIRATION DATE OF THE ANALYSIS. EXCEPT AS PROVIDED IN SUBSECTION M OF THIS SECTION, THE DIRECTOR SHALL EXTEND THE ANALYSIS FOR AN ADDITIONAL FIVE YEARS IF MATERIAL PROGRESS IN THE DEVELOPMENT OF THE LAND DESCRIBED IN THE ANALYSIS HAS OCCURRED AT ANY TIME DURING THE CURRENT ANALYSIS PERIOD. EACH ANALYSIS EXTENSION COMMENCEs ON THE DATE THE ANALYSIS OF ASSURED WATER SUPPLY WOULD HAVE OTHERWISE EXPIRED. For any analysis UNDER THIS subsection:
1. FOR THE FIRST AND SECOND RENEWAL TERMS, THE DIRECTOR SHALL ACCEPT ANY ONE OF THE FOLLOWING ACTIONS AS CONSTITUTING MATERIAL PROGRESS IN THE DEVELOPMENT OF LAND, and fOR THE THIRD AND LATER RENEWAL TERMS, THE DIRECTOR SHALL ACCEPT ANY TWO OF THE FOLLOWING ACTIONS AS constituting MATERIAL PROGRESS IN THE DEVELOPMENT OF LAND:
(a) A CITY, TOWN OR COUNTY HAVING JURISDICTION HAS APPROVED THE ZONING FOR OR ISSUED A USE PERMIT FOR THE LAND DESCRIBED IN THE ANALYSIS.
(b) A CITY, TOWN OR COUNTY HAVING JURISDICTION HAS APPROVED A MAJOR AMENDMENT TO a ZONING OR USE APPROVAL FOR THE LAND DESCRIBED IN THE ANALYSIS. A MAJOR AMENDMENT TO a ZONING APPROVAL IS AN AMENDMENT THAT REQUIRES A HEARING AND NOTICE OF HEARING pursuant to section 9-462.04, subsection A, paragraphs 4 and 5 or section 11-813, subsection E, PARAGRAPHS 1 and 2, as applicable.
(c) A PERSON OR ENTITY AND A CITY, TOWN OR COUNTY HAVING JURISDICTION HAVE ENTERED INTO A DEVELOPMENT AGREEMENT PERTAINING TO THE LAND DESCRIBED IN THE ANALYSIS.
(d) A PERSON Or ENTITY HAS INSTALLED WATER, SEWER, ROADWAY OR DRAINAGE INFRASTRUCTURE TO PROVIDE SERVICE TO NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS.
(e) THE DEPARTMENT OF ENVIRONMENTAL QUALITY OR A COUNTY HAVING JURISDICTION HAS ISSUED AN APPROVAL TO CONSTRUCT OR APPROVAL OF CONSTRUCTION FOR WATER INFRASTRUCTURE TO PROVIDE SERVICE TO not LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS.
(f) A PERSON OR ENTITY HAS INSTALLED WELLS that are ADEQUATE TO SATISFY THE ESTIMATED WATER DEMAND ASSOCIATED WITH NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS.
(g) A FEDERAL, STATE OR LOCAL GOVERNING BODY HAVING JURISDICTION HAS ISSUED A PERMIT OR LICENSE that is NECESSARY TO DEVELOP LAND AND THAT APPLIES TO NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS.
(h) A PERSON OR ENTITY AND A CITY, TOWN OR PRIVATE WATER COMPANY HAVE ENTERED INTO AN AGREEMENT FOR WATER SERVICE TO NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS AND THE AGREEMENT INCLUDES WATER INFRASTRUCTURE CONSTRUCTION REQUIREMENTS.
(i) THE DEPARTMENT HAS ISSUED A CERTIFICATE OF ASSURED WATER SUPPLY FOR NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS.
(j) A PERSON OR ENTITY HAS COMPLETED A MASTER WATER, MASTER WASTEWATER OR MASTER DRAINAGE PLAN FOR NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS AND HAS FILED THE PLAN WITH A LOCAL GOVERNING BODY HAVING JURISDICTION OR WITH A PRIVATE WATER COMPANY OR PRIVATE SEWER COMPANY that is OBLIGATED TO PROVIDE UTILITY SERVICE TO THE LAND DESCRIBED IN THE ANALYSIS.
(k) A PERSON OR ENTITY HAS COMPLETED ANY OF THE FOLLOWING SURVEYS OR REPORTS FOR NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS AND HAS FILED THE SURVEY OR REPORT WITH A LOCAL GOVERNING BODY HAVING JURISDICTION:
(i) ENVIRONMENTAL STUDY.
(ii) ENGINEERING SURVEY.
(iii) ARCHEOLOGICAL SURVEY.
(iv) TRAFFIC IMPACT ANALYSIS.
(v) GEOTECHNICAL SURVEY.
(vi) ECONOMIC IMPACT ANALYSIS.
(vii) LAND SURVEY.
2. AN APPLICANT FOR AN EXTENSION OF AN ANALYSIS MAY RELY ON THE OCCURRENCE OF AN ACTION prescribed in paragraph 1, subdivisions (d) through (k) OF THIS SUBSECTION AS PROOF OF MATERIAL PROGRESS IN THE DEVELOPMENT OF THE LAND IN MULTIPLE EXTENSION APPLICATIONS if, for each extension application, the prescribed action HAS OCCURRED FOR A DIFFERENT SUBSTANTIAL PORTION OF THE LAND.
M. WHEN CONSIDERING AN APPLICATION TO EXTEND AN ANALYSIS of assured water supply, THE DIRECTOR SHALL EXTEND THE ANALYSIS FOR AN ADDITIONAL FIFTEEN YEARS IF BOTH OF THE FOLLOWING HAVE OCCURRED:
1. THE DEPARTMENT HAS ISSUED CERTIFICATES OF ASSURED WATER SUPPLY FOR SUBDIVIDED LANDs for THE LAND DESCRIBED IN THE ANALYSIS AND EITHER THE SUBDIVIDED LANDs CUMULATIVELY INCLUDE NOT LESS THAN FIFTY PERCENT OF THE LAND that is suitable for development and that is DESCRIBED IN THE ANALYSIS OR THE SUBDIVIDED LANDS INCLUDE A CUMULATIVE NUMBER OF RESIDENTIAL LOTS that constitute NOT LESS THAN FIFTY PERCENT OF THE NUMBER OF RESIDENTIAL LOTS DESCRIBED IN THE ANALYSIS.
2. THE IMPROVED AND SOLD LOTS AT THE LAND DESCRIBED IN THE ANALYSIS CUMULATIVELY INCLUDE NOT LESS THAN TWENTY‑FIVE PERCENT OF THE land that is suitable for development and that is DESCRIBED IN THE ANALYSIS OR THE NUMBER OF THE IMPROVED AND SOLD RESIDENTIAL LOTS AT THE LAND DESCRIBED IN THE ANALYSIS IS NOT LESS THAN TWENTY-FIVE PERCENT OF THE NUMBER OF RESIDENTIAL LOTS DESCRIBED IN THE ANALYSIS. A LOT is DEEMED to be IMPROVED AND SOLD for the purposes of this paragraph WHEN A BUILDING HAS BEEN CONSTRUCTED ON THE LOT AND THE LOT HAS BEEN SOLD IN AN ARMS' LENGTH TRANSACTION.
N. For the purposes of subsection L of this section:
1. "CURRENT ANALYSIS PERIOD" MEANS, FOR A FIRST APPLICATION TO EXTEND AN ANALYSIS, THE INITIAL ten-year ANALYSIS PERIOD AND, FOR A SECOND AND ANY LATER APPLICATION TO EXTEND AN ANALYSIS, EITHER THE five‑YEAR EXTENSION PERIOD OR THE fifteen-YEAR EXTENSION PERIOD IN EFFECT AT THE TIME AN APPLICANT FILES AN APPLICATION TO EXTEND THE ANALYSIS OF ASSURED WATER SUPPLY.
2. "SUBSTANTIAL PORTION OF THE LAND" MEANS THE LESSER OF one hundred sixty ACRES OR ONE-QUARTER OF THE DEVELOPABLE LAND DESCRIBED IN THE ANALYSIS.
L. O. For the purposes of this section, "assured water supply" means all of the following:
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 one hundred years. Beginning January 1 of the calendar year following the year in which a groundwater replenishment district is required to submit its preliminary plan pursuant to section 45‑576.02, subsection A, paragraph 1, with respect to an applicant that is a member of the district, "sufficient groundwater" for the purposes of this paragraph means that the proposed groundwater withdrawals that the applicant will cause over a period of one hundred years will be of adequate quality and will not exceed, in combination with other withdrawals from land in the replenishment district, a depth to water of one thousand feet or the depth of the bottom of the aquifer, whichever is less. In determining depth to water for the purposes of this paragraph, the director shall consider the combination of:
(a) The existing rate of decline. PROJECTED WITHDRAWALS BY EXISTING GROUNDWATER USERS, INCLUDING EXPECTED CHANGES IN FUTURE WITHDRAWAL PATTERNS CAUSED BY:
(i) THE EXPECTED PRODUCTION, REUSE, OR RECHARGE OF EFFLUENT.
(ii) REASONABLY ANTICIPATED CHANGES IN AGRICULTURAL WATER USE OR IRRIGATED ACREAGE, WHICH THE DIRECTOR SHALL DETERMINE IN CONSULTATION WITH IRRIGATION DISTRICTS OR IRRIGATION GRANDFATHERED RIGHT HOLDERS.
(iii) OTHER FACTORS REASONABLY DETERMINED BY THE DIRECTOR TO AFFECT FUTURE WITHDRAWALS BY EXISTING GROUNDWATER USERS.
(b) The proposed withdrawals.
(c) The expected water requirements of all recorded lots that are not yet served water and that are located in the service area of a municipal provider.
(d) IF THE PROPOSED USE IS WITHIN THE PHOENIX, PINAL OR TUCSON ACTIVE MANAGEMENT AREAS, THE EFFECTS OF EXPECTED GROUNDWATER REPLENISHMENT BY A CONSERVATION DISTRICT UNDER TITLE 48, CHAPTER 22, ARTICLE 4 WITHIN THE APPLICABLE ACTIVE MANAGEMENT AREA, except that THE DIRECTOR SHALL NOT CONSIDER THat EXPECTED GROUNDWATER REPLENISHMENT WHEN BOTH OF THE FOLLOWING APPLY:
(i) THE DIRECTOR DETERMINes WHETHER TO DESIGNATE OR MAINTAIN THE DESIGNATION OF A CITY, TOWN OR PRIVATE WATER COMPANY AS HAVING AN ASSURED WATER SUPPLY.
(ii) THE SERVICE AREA OF THAT CITY, TOWN OR PRIVATE WATER COMPANY does NOT QUALIFy AS A MEMBER SERVICE AREA OF A CONSERVATION DISTRICT PURSUANT TO TITLE 48, CHAPTER 22, ARTICLE 4.
2. The projected groundwater use is consistent with the management plan and achievement of the management goal for the active management area.
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. The director may accept evidence of the construction assurances required by section 9‑463.01, 11‑823 or 32‑2181 to satisfy this requirement.
Sec. 2. Section 45-576.02, Arizona Revised Statutes, is amended to read:
45-576.02. Replenishment district plans, conservation district plans and water district plans
A. A groundwater replenishment district that is established pursuant to title 48, chapter 27 shall submit to the director:
1. On or before January 1 of the second calendar year following the year in which the district is established, a preliminary plan describing the activities that the district proposes to undertake during the seventeen calendar years following submittal of the preliminary plan.
2. On or before January 1 of the twelfth calendar year following the year in which the district is established, a long‑range plan describing the district's proposed activities through the first calendar year in which achieving safe‑yield is required.
B. The district's plan shall include:
1. An estimate of the district members' replenishment obligations that will arise during the planning period.
2. A description of water resources that are expected to be available to the district during the planning period.
3. A description of any facilities and projects to be used for replenishment during the planning period.
4. An analysis of potential groundwater replenishment sites in each groundwater subbasin in the district.
5. A description of the district's financial capabilities and financial requirements that are necessary to address the district members' replenishment obligations during the planning period.
6. A description of the district's current capability to meet the district members' replenishment obligations for the five calendar years following the calendar year in which the district submits its plan.
7. Any other information that the director may reasonably require.
C. A conservation district that is established pursuant to title 48, chapter 22 shall submit to the director the following:
1. On or before June 1, 1994, a plan describing the activities that the conservation district proposes to undertake during the twenty calendar years following submitting the plan. Except as provided in subsection D F of this section, the plan shall include the following information for each active management area in which a member land or member service area is or may be located:
(a) An estimate of the conservation district's current and projected groundwater replenishment obligations, as that term is defined and used in title 48, chapter 22, for the twenty calendar years following the submission of the plan.
(b) A description of water resources that are expected to be available to the conservation district for replenishment purposes during the twenty calendar years following the submission of the plan.
(c) A description of any facilities and projects to be used for replenishment purposes during the twenty calendar years following the submission of the plan.
(d) An analysis of potential groundwater replenishment sites in each groundwater subbasin.
(e) A description of the conservation district's financial capabilities and financial requirements that are necessary to address the conservation district's groundwater replenishment obligations during the twenty calendar years following the submission of the plan.
(f) A description of the conservation district's current capability to meet the current and projected groundwater replenishment obligations for the five calendar years following the calendar year in which the conservation district submits the plan.
(g) If a water district has adopted an ordinance or resolution to undertake water district groundwater replenishment obligations pursuant to section 48‑4971, subsection A, a description of central Arizona project water that may be available to the water district for replenishment purposes during the twenty calendar years following the submission of the plan.
(h) Any other information that the director may require.
2. On or before January 1, 2005 and, except as prescribed in subsection D of this section, within one year before January 1 of every tenth calendar year thereafter, a plan describing the activities for each active management area that the conservation district proposes to undertake during the one hundred calendar years following submitting the plan. Except as provided in subsection D F of this section, the plan shall include the following information for each active management area in which a member land or member service area is or may be located:
(a) The conservation district's groundwater replenishment obligations and the extent to which those obligations have been met in the ten years preceding submittal of the plan.
(b) An estimate of the conservation district's current and projected groundwater replenishment obligations, as that term is defined and used in title 48, chapter 22, for current members for the twenty calendar years following the submission of the plan and an estimate of the district's projected groundwater replenishment obligations for the one hundred calendar years following the submission of the plan for current members and potential members based on reasonable projections of real property and service areas that could qualify for membership in the ten years following the submission of the plan.
(c) A description of the water resources that the conservation district plans to use for replenishment purposes during the twenty calendar years following submission of the plan and water resources potentially available to the conservation district for groundwater replenishment purposes during the subsequent eighty calendar years.
(d) A description of the district's current replenishment reserve activities in each active management area for the ten years preceding the current plan and planned replenishment reserve activities for the ensuing ten years to be undertaken pursuant to section 48‑3772, subsection E.
(e) A description of any facilities and projects to be used for replenishment and the replenishment capacity available to the conservation district during the twenty calendar years following submission of the plan.
(f) An analysis of potential storage facilities that may be used by the conservation district for replenishment purposes.
(g) A description of the conservation district's capability to meet the current and projected groundwater replenishment obligations for the twenty calendar years following the calendar year in which the conservation district submits the plan.
(h) Any other information that the director may require.
D. For the ONE-YEAR TIME PERIOD prescribed by subsection C, paragraph 2 of this section DURING WHICH THE CONSERVATION DISTRICT MUST SUBMIT ITS NEXT PLAN, the plan SHALL BE AUTOMATICALLY POSTPONED FOR TEN CALENDAR YEARS FOR ALL ACTIVE MANAGEMENT AREAS IF EITHER OF THE FOLLOWING OCCURs:
1. THE CONSERVATION DISTRICT SUBMITS TO THE DEPARTMENT A REQUEST FOR CONSULTATION ON A PROPOSED CONVEYANCE OR LEASE TO THE CONSERVATION DISTRICT, FOR REPLENISHMENT PURPOSES, OF A COLORADO RIVER ENTITLEMENT HELD BY A NONFEDERAL ENTITY OR INDIVIDUAL in this state TOGETHER WITH A WATER USE MANAGEMENT PLAN PERTAINING TO THAT PROPOSED CONVEYANCE OR LEASE OF THE COLORADO RIVER ENTITLEMENT AT ANY TIME before THE EXPIRATION OF THE DIRECTOR'S MOST RECENT DETERMINATION PURSUANT TO section 45-576.03, SUBSECTION M OR R THAT THE CONSERVATION DISTRICT'S PLAN OF OPERATION IS CONSISTENT WITH ACHIEVING THE MANAGEMENT GOAL AND THE DIRECTOR EITHER REFUSES TO RECOMMEND THAT THE UNITED STATES BUREAU OF RECLAMATION APPROVE THAT PROPOSED CONVEYANCE OR LEASE OF the COLORADO RIVER ENTITLEMENT OR THE DIRECTOR RECOMMENDS THAT THE UNITED STATES BUREAU OF RECLAMATION DISAPPROVE THAT PROPOSED CONVEYANCE OR LEASE OF tHE COLORADO RIVER ENTITLEMENT.
2. THE UNITED STATES BUREAU OF RECLAMATION REFUSES TO APPROVE A PROPOSED CONVEYANCE OR LEASE TO THE CONSERVATION DISTRICT, FOR REPLENISHMENT PURPOSES, OF A COLORADO RIVER ENTITLEMENT HELD BY A NONFEDERAL ENTITY OR INDIVIDUAL in this state.
E. IF THE TIME PERIOD FOR SUBMISSION OF A PLAN IS AUTOMATICALLY POSTPONED FOR TEN YEARS PURSUANT TO subsection D OF THIS SECTION, THE PLANS OF OPERATION FOR ALL ACTIVE MANAGEMENT AREAS that were MOST RECENTLY DETERMINED BY THE DIRECTOR TO BE CONSISTENT WITH ACHIEVING THE MANAGEMENT GOAL PURSUANT TO section 45-576.03, SUBSECTION M OR R SHALL REMAIN IN EFFECT DURING THE TEN-YEAR POSTPONEMENT PERIOD AND DURING THE REVIEW BY THE DIRECTOR OF ANY SUBSEQUENT PLANS OF OPERATION SUBMITTED BY THE CONSERVATION DISTRICT UNDER subsection C, PARAGRAPH 2 of this section AND SHALL NOT EXPIRE UNTIL THE DIRECTOR ISSUES A DECISION PURSUANT TO SECTION 45-576.03, SUBSECTION M ON ANY SUBSEQUENT PLANS OF OPERATION SUBMITTED BY THE CONSERVATION DISTRICT UNDER subsection C, paragraph 2 of this section.
D. F. The information required by subsection C, paragraph 1, subdivisions (b) and (f) and paragraph 2, subdivisions (c) and (g) of this section need not be included in a conservation district's plan if the conservation district demonstrates to the director that it has obtained an allocation of central Arizona project water or other water supplies determined by the director to be consistent with the assured water supply requirements pursuant to section 45‑576 in an amount that equals or exceeds the projected groundwater replenishment obligation for the one hundred calendar years following the submission of the plan. If the conservation district demonstrates to the director that it has obtained an allocation of central Arizona project water or other water supplies determined by the director to be consistent with the assured water supply requirements pursuant to section 45‑576 in an amount that is less than the projected groundwater replenishment obligation for the one hundred calendar years following the submission of the plan, the information required by subsection C, paragraph 1, subdivisions (b) and (f) and paragraph 2, subdivisions (c) and (g) of this section shall be submitted only for the amount of the obligation in excess of the total amount of the central Arizona project water allocation and other supplies. The director shall quantify the amount of an allocation of central Arizona project water associated with a nondeclining municipal and industrial subcontract on the basis of the amount of the contract. The director shall quantify the amount of an allocation of central Arizona project water associated with a subcontract other than a nondeclining municipal and industrial subcontract on the basis of the reliability of the source.
E. G. A water district shall submit to the director on or before June 1 of the calendar year following the year in which the water district has adopted an ordinance or resolution to undertake the water district groundwater replenishment obligations under section 48‑4971, and on or within one year before each date on which a plan is required to be submitted by the conservation district under subsection C of this section, a plan describing the replenishment activities that the water district proposes to undertake during the twenty calendar years following the submittal of the plan. The plan shall include the following information for the active management area in which the water district is located:
1. An estimate of the water district's current and projected water district groundwater replenishment obligation, as that term is defined and used in title 48, chapter 28, for the twenty calendar years following the submission of the plan.
2. A description of water resources that are expected to be available to the water district for replenishment purposes during the twenty calendar years following the submission of the plan.
3. A description of any facilities and projects to be used for replenishment purposes during the twenty calendar years following the submission of the plan.
4. An analysis of potential groundwater replenishment sites in each groundwater subbasin.
5. A description of the water district's financial capabilities and financial requirements that are necessary to address the water district groundwater replenishment obligation during the twenty calendar years following the submission of the plan.
6. A description of the water district's current capability to meet the current and projected water district groundwater replenishment obligation for the five calendar years following the calendar year in which the water district submits the plan.
7. Any other information that the director may require.
F. H. For each plan submitted by the water district, the water district may incorporate applicable portions of the conservation district's plan.
Sec. 3. Section 45-576.03, Arizona Revised Statutes, is amended to read:
45-576.03. Director's review of plans
A. Within sixty days after receiving a groundwater replenishment district's preliminary and long‑range plans pursuant to section 45‑576.02, the director shall determine if the district has submitted sufficient information to determine whether the district's plan for operation is consistent with the management goal of the active management area. If the director determines that the information is insufficient for such a determination, the director shall notify the district of the insufficiency in writing and shall specify what additional information is required. The district shall provide the information to the director within thirty days after receiving the notice.
B. On determining that the district's preliminary or long‑range plan is complete, the director shall publish notice in a newspaper of general statewide circulation once each week for two consecutive weeks:
1. Requesting public comment concerning information supplied by the district to meet the requirements of section 45‑576.02.
2. Setting a date and location of a public hearing to be held pursuant to subsection C of this section.
C. The director shall hold a public hearing within sixty days after the last day of notice under subsection B of this section. The hearing shall be conducted in an informal manner without adhering to the rules of evidence required in judicial proceedings. Any person, including the department, shall have an opportunity to comment on or to present evidence concerning the submitted plan.
D. The district shall respond in writing to all public comments whether received at the hearing or otherwise received by a date announced by the director.
E. Within one hundred twenty days after the hearing on the preliminary plan, the director shall issue a preliminary decision determining whether or not the plan for district operation shall be designated as being consistent with achieving the management goal. If the director determines that the preliminary plan for district operation is consistent with achieving the management goal, the designation expires on January 1 of the thirteenth calendar year following the calendar year in which the district is established. Within one hundred twenty days after the hearing on the long‑range plan, the director shall issue a final decision determining whether or not the plan for district operation shall be designated as being consistent with achieving the management goal. The director shall include findings with the decision and a summary of all public comments received in writing and public comments made at the public hearing.
F. The director shall issue a decision that the district's plan for operation is consistent with achieving the management goal if the director finds that the district has the current capability to meet the district members' replenishment obligations for the five calendar years following the calendar year in which the district submits its plan and, in addition, the director makes either of the following findings, as applicable:
1. If the director is evaluating the preliminary plan, that the district has established an adequate plan for obtaining financing and water resources that are necessary to meet the district members' replenishment obligations through the eighteenth calendar year following the year in which the district is established.
2. If the director is evaluating the long‑range plan, that the district has established an adequate plan to meet the projected replenishment obligations through the first calendar year in which achieving safe‑yield is required.
G. Unless the district successfully appeals the director's decision pursuant to subsection H of this section, if the director has made a determination that the district's plan for operation is not consistent with achieving the management goal, the director shall notify the district of the inconsistency in writing and shall specify how the district's plan for operation is inconsistent with achieving the management goal. The district shall modify its proposed plan and resubmit the plan, and the director shall review the plan as provided by section 45‑576.02 and this section, except that the director shall only hold a hearing regarding those matters that the district has modified in its resubmitted plan.
H. The director's determination under subsection E of this section is subject to rehearing or review and to judicial review as provided in section 45‑114, subsection C, but the court shall not issue a temporary restraining order or preliminary injunction to prevent the director from acting under this chapter while the action is pending.
I. Within sixty days after receiving a conservation district's plan or a water district's plan pursuant to section 45‑576.02, including a revised plan pursuant to subsection R of this section, the director shall determine if the conservation district or water district, as the case may be, has submitted sufficient information to determine whether the conservation district's plan for operation is consistent with the management goals of each of the active management areas in which a member land or member service area is or may be located or whether the water district's plan for operation is consistent with the management goal of the active management area in which a water district member land or a water district member service area is or may be located. If the director determines that the information is insufficient for such a determination, the director shall notify the conservation district or water district, as the case may be, of the insufficiency in writing and shall specify what additional information is required. The conservation district or water district, as the case may be, shall provide the information to the director within a reasonable time as specified by the director.
J. On determining that the conservation district's plan or the water district's plan, as the case may be, is complete, the director shall publish notice in a newspaper of general statewide circulation once each week for two consecutive weeks:
1. Requesting public comment concerning information supplied by the conservation district or water district, as the case may be, to meet the requirements of section 45‑576.02.
2. Setting a date and location of a public hearing to be held pursuant to subsection K of this section.
K. The director shall hold a public hearing within sixty days after the last day of the notice under subsection J of this section. The hearing shall be conducted in an informal manner without adhering to the rules of evidence required in judicial proceedings. Any person, including the department, shall have an opportunity to comment on or to present evidence concerning the submitted plan.
L. The conservation district or the water district, as the case may be, shall respond in writing to all public comments whether received at the hearing or otherwise received by a date announced by the director.
M. Within sixty days after the hearing on the first plan required under section 45‑576.02, subsection C or the first plan required under section 45‑576.02, subsection E G and within one hundred twenty days after the hearing on any subsequent plan required under section 45‑576.02, subsection C or E G, including a revised plan pursuant to subsection R of this section, the director shall issue a decision for each of the active management areas in which a member land or member service area is or may be located, and the active management area in which a water district member land or water district member service area is or may be located, as to whether or not the plan submitted with respect to an active management area is consistent with achieving the management goal of the active management area. The director shall include findings with the decision and a summary of all public comments received in writing and public comments made at the public hearing. If the director's decision includes a determination that the plan submitted for an active management area is consistent with achieving the management goal of that active management area, except as provided in subsection S of this section, the determination expires on December 31 of the year following the year in which the conservation district or the water district, as the case may be, is required to submit its next plan under section 45‑576.02, subsections C and E G, or the date the director issues a decision determining that the next plan is consistent with achieving the management goal of the active management area, whichever occurs first.
N. The director shall make a determination that the conservation district's plan is consistent with achieving the management goal for each active management area if all of the following have been demonstrated:
1. The conservation district has identified sufficient water supplies to meet its replenishment obligations for current members during the twenty calendar years following the submission of the plan and has identified additional water supplies potentially available for the district's projected groundwater replenishment obligations for the one hundred calendar years following the submission of the plan for current members and potential members based on reasonable projections of real property and service areas that could qualify for membership in the ten years following the submission of the plan.
2. The replenishment reserve target for each active management area was calculated as prescribed in section 48‑3772, subsection E, and the district is developing a replenishment reserve in each active management area pursuant to section 48‑3772, subsection E.
3. The conservation district has identified sufficient capacity at storage facilities and projects to be used for replenishment purposes during the twenty calendar years following the submission of the plan.
4. The district has made a reasonable estimate of its projected replenishment obligations for the one hundred calendar years following the submission of the ten year plan as required by section 45‑576.02, subsection C, paragraph 2, subdivision (b).
O. The director shall issue a decision that the water district's plan is consistent with achieving the management goal of the active management area in which the water district is located if the director finds that the water district has the current capability to meet the current and projected water district groundwater replenishment obligation, as that term is defined and used in title 48, chapter 28, for the five calendar years following the calendar year in which the water district submits its plan and, in addition, the director finds the water district has established an adequate plan to meet the projected water district groundwater replenishment obligation for the twenty calendar years following the calendar year in which the plan was submitted.
P. Unless the conservation district or water district successfully appeals the director's decision pursuant to subsection Q of this section, if the director finds for one or more active management areas that the conservation district's plan for operation or the water district's plan is not consistent with achieving the management goal of an active management area, the director shall notify the conservation district or water district, as the case may be, of the inconsistency in writing and shall specify how the conservation district's plan for operation or the water district's plan is inconsistent with achieving the management goal. The conservation district or water district, as the case may be, shall modify its proposed plan and resubmit the plan within sixty days after it has been notified in writing of the director's decision, and the director shall review the plan as provided by section 45‑576.02 and this section, except that the director shall only hold a hearing regarding those matters that the conservation district or water district, as the case may be, has modified in its resubmitted plan.
Q. The director's decision under subsection M or R of this section is subject to rehearing or review and to judicial review as provided in section 45‑114, subsection C, but the court shall not issue a temporary restraining order or preliminary injunction to prevent the director from acting under this chapter while the action is pending.
R. If, at any time between the second anniversary and the eighth anniversary of the director's determination of consistency with the management goal, the director finds that there has been either an unexpected increase in the conservation district's projected groundwater replenishment obligations or an unexpected reduction in water supplies available to meet the conservation district's current obligations such that the conservation district's plan no longer demonstrates consistency with the management goal for one or more active management areas, the director shall require the conservation district to submit a revised plan for operation. The revised plan for operation shall be submitted within one calendar year after the date that the director notifies the conservation district of such a finding, unless the director extends this time for good cause. The director shall review, hold a hearing on and make a decision on the revised plan as provided by this section, except that the director shall only hold a hearing regarding those conditions that have changed. IF THE DIRECTOR EITHER REFUSES TO RECOMMEND THAT THE UNITED STATES BUREAU OF RECLAMATION APPROVE A PROPOSED USE BY THE CONSERVATION DISTRICT OF A COLORADO RIVER ENTITLEMENT HELD BY A NONFEDERAL ENTITY OR INDIVIDUAL in this state FOR REPLENISHMENT PURPOSES OR THE DIRECTOR RECOMMENDS THAT THE UNITED STATES BUREAU OF RECLAMATION DISAPPROVE THAT PROPOSED USE OF THE COLORADO RIVER ENTITLEMENT, THE DIRECTOR SHALL NOT CONSIDER THE UNAVAILABILITY OF THAT COLORADO RIVER ENTITLEMENT TO BE AN UNEXPECTED REDUCTION IN WATER SUPPLIES AVAILABLE TO MEET THE CONSERVATION DISTRICT'S CURRENT OBLIGATIONS UNDER THIS SECTION.
S. Unless the conservation district successfully appeals the director's decision pursuant to subsection Q of this section, if the director's decision includes a finding for one or more active management areas that the conservation district's revised plan for operation is not consistent with achieving the management goal of that active management area pursuant to this section and the conservation district is unable to satisfy the director's concerns within sixty days after the director has notified the conservation district of the decision, the determination that the district's plan is consistent with the management goal of the active management area shall expire.
Sec. 4. Section 45-802.01, Arizona Revised Statutes, as amended by Laws 2012, chapter 312, section 2, is amended to read:
45-802.01. Definitions
Unless the context otherwise requires, the terms defined in section 45‑402 have the same meanings in this chapter and:
1. "Aquifer" means a geologic formation that contains sufficient saturated material to be capable of storing water and transmitting water in usable quantities to a well.
2. "Area of impact" means, as projected on the land surface, the area where the stored water has migrated or is located.
3. "CERCLA" means the comprehensive environmental response, compensation, and liability act of 1980, as amended (P.L. 96‑510; 94 Stat. 2767; 42 United States Code sections 9601 through 9657), commonly known as "superfund".
4. "Constructed underground storage facility" means a facility that meets the requirements of section 45‑811.01 and that is designed and constructed to store water underground pursuant to permits issued under this chapter.
5. "District" means a groundwater replenishment district established under title 48, chapter 27.
6. "District member" means a member of the groundwater replenishment district as provided by title 48, chapter 27.
7. "Electrical district" means a corporate body established pursuant to title 48, chapter 12.
8. "Groundwater savings facility" means a facility that meets the requirements of section 45‑812.01 in an active management area or an irrigation non‑expansion area at which groundwater withdrawals are eliminated or reduced by recipients who use in lieu water on a gallon‑for‑gallon substitute basis for groundwater that otherwise would have been pumped from within that active management area or irrigation non‑expansion area.
9. "In lieu water" means water that is delivered by a storer to a groundwater savings facility pursuant to permits issued under this chapter and that is used in an active management area or an irrigation non‑expansion area by the recipient on a gallon‑for‑gallon substitute basis for groundwater that otherwise would have been pumped from within that active management area or irrigation non‑expansion area.
10. "Long‑term storage account" means an account established pursuant to section 45‑852.01.
11. "Long‑term storage credit" means stored water that meets the requirements of section 45‑852.01 and that has been credited to a long‑term storage account.
12. "Managed underground storage facility" means a facility that meets the requirements of section 45‑811.01 and that is designed and managed to utilize the natural channel of a stream to store water underground pursuant to permits issued under this chapter through artificial and controlled releases of water other than surface water naturally present in the stream. Surface water flowing in its natural channel is not a managed underground storage facility.
13. "Master replenishment account" means an account established pursuant to section 45‑858.01 for a groundwater replenishment district.
14. "Recipient" means a person who receives in lieu water for use at a groundwater savings facility.
15. "Recoverable amount" means the amount of water, as determined by the director, that will reach the aquifer through water storage.
16. "Replenishment" means the storage of water or use of long‑term storage credits by a groundwater replenishment district to fulfill its duties under title 48, chapter 27, article 3, by a multi‑county water conservation district to fulfill its duties under title 48, chapter 22, article 4 or by an active management area water district to fulfill its duties under title 48, chapter 28, article 7.
17. "Reserve target" has the same meaning prescribed in section 48‑3701.
18. "Storage facility" means a groundwater savings facility or an underground storage facility.
19. "Stored water" means water that has been stored or saved underground pursuant to a storage permit issued under this chapter.
20. "Storer" means the holder of a water storage permit issued pursuant to section 45‑831.01 or a person to whom a water storage permit has been conveyed pursuant to section 45‑831.01, subsection F.
21. "Underground storage facility" means a constructed underground storage facility or a managed underground storage facility.
22. "Water that cannot reasonably be used directly" means water that the storer cannot reasonably put to a direct use during the calendar year, including:
(a) Except as provided in subdivision (b) or except for an agricultural improvement district as provided in subdivision (d), if the storer is a municipal provider, the amount of central Arizona project water that exceeds the amount of mined groundwater withdrawn during the calendar year by the storer in the active management area in which the storer's service area is located. If the storer withdrew mined groundwater during a calendar year in which the storer stored central Arizona project water underground pursuant to the storage permit, the amount of central Arizona project water stored underground during that year equal to the amount of mined groundwater withdrawn from the active management area in which the storer's service area is located shall not be credited to the storer's long‑term storage account but may be considered as being available for recovery by the storer on an annual basis under section 45‑851.01. In calculating the amount of mined groundwater withdrawn by the storer from the active management area, the director, at the request of the storer, shall exclude any groundwater withdrawn, treated and delivered for direct use as part of a remedial action undertaken pursuant to CERCLA or title 49, chapter 2, article 5. For the purposes of this subdivision, "mined groundwater" and "municipal provider" have the same meanings prescribed in section 45‑561.
(b) If the storer is a municipal provider that has been designated as having an assured water supply pursuant to section 45‑576, the amount of central Arizona project water that exceeds the amount of deficit groundwater withdrawn during the calendar year by the storer in the active management area in which the storer's service area is located. If the storer withdrew deficit groundwater during a calendar year in which the storer stored central Arizona project water underground pursuant to the storage permit, the amount of the central Arizona project water stored underground during that year equal to the amount of deficit groundwater withdrawn from the active management area in which the storer's service area is located shall not be credited to the storer's long‑term storage account but may be considered as being available for recovery by the storer on an annual basis pursuant to section 45‑851.01. In calculating the amount of deficit groundwater withdrawn by the storer from the active management area, the director, at the request of the storer, shall exclude any groundwater withdrawn, treated and delivered for direct use as part of a remedial action undertaken pursuant to CERCLA or title 49, chapter 2, article 5. For the purposes of this subdivision, "municipal provider" has the same meaning prescribed in section 45‑561 and "deficit groundwater" means that amount of groundwater withdrawn within an active management area for delivery and use within a service area by a municipal provider in excess of the amount of groundwater that may be withdrawn by the municipal provider consistent with the achievement of the active management area's management goals as prescribed by rules adopted by the director pursuant to section 45‑576.
(c) Except as provided in subdivision (d), if the storer is not a municipal provider, the amount of central Arizona project water stored in an active management area that exceeds the amount of groundwater withdrawn during the calendar year by the storer in that active management area. If the storer withdrew groundwater in an active management area during a calendar year in which the storer stored central Arizona project water underground in that active management area pursuant to the storage permit, the amount of central Arizona project water stored underground during that year equal to the amount of groundwater withdrawn from the active management area shall not be credited to the storer's long‑term storage account but may be considered as being available for recovery by the storer on an annual basis under section 45‑851.01. For the purposes of this subdivision, "municipal provider" has the same meaning prescribed in section 45‑561. In calculating the amount of groundwater withdrawn by the storer from the active management area, the director, at the request of the storer, shall exclude:
(i) The amount of groundwater withdrawn, treated and delivered for direct use as part of a remedial action undertaken pursuant to CERCLA or title 49, chapter 2, article 5.
(ii) The amount of groundwater withdrawn by the storer during the year for mineral extraction and metallurgical processing and delivered during that year for direct use to an irrigation district that is established pursuant to title 48, chapter 19 and that is located in the same active management area from which the amount of groundwater was withdrawn to the extent that the irrigation district or its customers demonstrate a reduction in the amount of groundwater that they otherwise would have withdrawn during that year within the irrigation district.
(iii) The amount of groundwater withdrawn by the storer during the year for mineral extraction or metallurgical processing if the storer was engaged in mineral extraction and metallurgical processing within an initial active management area on or before January 1, 2011.
(d) The amount of central Arizona project water stored in an active management area in any year after 1994 by an agricultural improvement district established pursuant to title 48, chapter 17 for use at those portions of electrical generating facilities that are constructed or expanded after June 12, 1980, subject to both of the following:
(i) If groundwater was used during a year in an active management area at those portions of the electrical generating facilities that were owned and operated by the agricultural improvement district and that were constructed or expanded after June 12, 1980, the amount of the central Arizona project water stored during that year equal to the amount of the groundwater withdrawn during the year for use at those portions of the facilities that were owned and operated by the agricultural improvement district and that were constructed or expanded after June 12, 1980 shall not be credited to the agricultural improvement district's long‑term storage account but may be considered as being available for recovery by the agricultural improvement district on an annual basis under section 45‑851.01.
(ii) Long‑term storage credits accrued as a result of the storage of the central Arizona project water may be recovered within the active management area by the agricultural improvement district only for the purpose of providing central Arizona project water to electrical generating facilities that were owned and operated by the agricultural improvement district and only pursuant to any water requirement included in a facility's certificate of environmental compatibility. Subject to section 45‑854.01, the long‑term storage credits may be assigned by the agricultural improvement district only to the owner of an electrical generating facility for use pursuant to any water requirement included in that facility's certificate of environmental compatibility.
(e) Surface water made available by dams constructed or modified after August 13, 1986.
(f) Effluent.
(f) (g) Until the year 2025:
(i) Effluent.
(ii) (i) If the storage facility is in an active management area, water from outside the active management area that would not have reached the active management area without the efforts of the storer.
(iii) (ii) If the storage facility is outside of an active management area, water from outside the groundwater basin in which the storage facility is located that would not have reached the groundwater basin without the efforts of the storer.
(g) (h) Water that is delivered through the central Arizona project and that is acquired by the Arizona water banking authority.
23. "Water storage" means adding water to an aquifer or saving water in an aquifer pursuant to permits issued under this chapter.
24. "Water storage permit" means a permit issued pursuant to section 45‑831.01 to store water at a storage facility.
Sec. 5. Section 45-802.01, Arizona Revised Statutes, as amended by Laws 2013, chapter 168, section 4, is amended to read:
45-802.01. Definitions
Unless the context otherwise requires, the terms defined in section 45‑402 have the same meanings in this chapter and:
1. "Aquifer" means a geologic formation that contains sufficient saturated material to be capable of storing water and transmitting water in usable quantities to a well.
2. "Area of impact" means, as projected on the land surface, the area where the stored water has migrated or is located.
3. "CERCLA" means the comprehensive environmental response, compensation, and liability act of 1980, as amended (P.L. 96‑510; 94 Stat. 2767; 42 United States Code sections 9601 through 9657), commonly known as "superfund".
4. "Constructed underground storage facility" means a facility that meets the requirements of section 45‑811.01 and that is designed and constructed to store water underground pursuant to permits issued under this chapter.
5. "District" means a groundwater replenishment district established under title 48, chapter 27.
6. "District member" means a member of the groundwater replenishment district as provided by title 48, chapter 27.
7. "Electrical district" means a corporate body established pursuant to title 48, chapter 12.
8. "Groundwater savings facility" means a facility that meets the requirements of section 45‑812.01 in an active management area or an irrigation non‑expansion area at which groundwater withdrawals are eliminated or reduced by recipients who use in lieu water on a gallon‑for‑gallon substitute basis for groundwater that otherwise would have been pumped from within that active management area or irrigation non‑expansion area.
9. "In lieu water" means water that is delivered by a storer to a groundwater savings facility pursuant to permits issued under this chapter and that is used in an active management area or an irrigation non‑expansion area by the recipient on a gallon‑for‑gallon substitute basis for groundwater that otherwise would have been pumped from within that active management area or irrigation non‑expansion area.
10. "Long‑term storage account" means an account established pursuant to section 45‑852.01.
11. "Long‑term storage credit" means stored water that meets the requirements of section 45‑852.01 and that has been credited to a long‑term storage account.
12. "Managed underground storage facility" means a facility that meets the requirements of section 45‑811.01 and that is designed and managed to utilize the natural channel of a stream to store water underground pursuant to permits issued under this chapter through artificial and controlled releases of water other than surface water naturally present in the stream. Surface water flowing in its natural channel is not a managed underground storage facility.
13. "Master replenishment account" means an account established pursuant to section 45‑858.01 for a groundwater replenishment district.
14. "Recipient" means a person who receives in lieu water for use at a groundwater savings facility.
15. "Recoverable amount" means the amount of water, as determined by the director, that will reach the aquifer through water storage.
16. "Replenishment" means the storage of water or use of long‑term storage credits by a groundwater replenishment district to fulfill its duties under title 48, chapter 27, article 3, by a multi‑county water conservation district to fulfill its duties under title 48, chapter 22, article 4 or by an active management area water district to fulfill its duties under title 48, chapter 28, article 7.
17. "Reserve target" has the same meaning prescribed in section 48‑3701.
18. "Storage facility" means a groundwater savings facility or an underground storage facility.
19. "Stored water" means water that has been stored or saved underground pursuant to a storage permit issued under this chapter.
20. "Storer" means the holder of a water storage permit issued pursuant to section 45‑831.01 or a person to whom a water storage permit has been conveyed pursuant to section 45‑831.01, subsection F.
21. "Underground storage facility" means a constructed underground storage facility or a managed underground storage facility.
22. "Water that cannot reasonably be used directly" means water that the storer cannot reasonably put to a direct use during the calendar year, including:
(a) Except as provided in subdivision (b) or except for an agricultural improvement district as provided in subdivision (d), if the storer is a municipal provider, the amount of central Arizona project water that exceeds the amount of mined groundwater withdrawn during the calendar year by the storer in the active management area in which the storer's service area is located. If the storer withdrew mined groundwater during a calendar year in which the storer stored central Arizona project water underground pursuant to the storage permit, the amount of central Arizona project water stored underground during that year equal to the amount of mined groundwater withdrawn from the active management area in which the storer's service area is located shall not be credited to the storer's long‑term storage account but may be considered as being available for recovery by the storer on an annual basis under section 45‑851.01. In calculating the amount of mined groundwater withdrawn by the storer from the active management area, the director, at the request of the storer, shall exclude any groundwater withdrawn, treated and delivered for direct use as part of a remedial action undertaken pursuant to CERCLA or title 49, chapter 2, article 5. For the purposes of this subdivision, "mined groundwater" and "municipal provider" have the same meanings prescribed in section 45‑561.
(b) If the storer is a municipal provider that has been designated as having an assured water supply pursuant to section 45‑576, the amount of central Arizona project water that exceeds the amount of deficit groundwater withdrawn during the calendar year by the storer in the active management area in which the storer's service area is located. If the storer withdrew deficit groundwater during a calendar year in which the storer stored central Arizona project water underground pursuant to the storage permit, the amount of the central Arizona project water stored underground during that year equal to the amount of deficit groundwater withdrawn from the active management area in which the storer's service area is located shall not be credited to the storer's long‑term storage account but may be considered as being available for recovery by the storer on an annual basis pursuant to section 45‑851.01. In calculating the amount of deficit groundwater withdrawn by the storer from the active management area, the director, at the request of the storer, shall exclude any groundwater withdrawn, treated and delivered for direct use as part of a remedial action undertaken pursuant to CERCLA or title 49, chapter 2, article 5. For the purposes of this subdivision, "municipal provider" has the same meaning prescribed in section 45‑561 and "deficit groundwater" means that amount of groundwater withdrawn within an active management area for delivery and use within a service area by a municipal provider in excess of the amount of groundwater that may be withdrawn by the municipal provider consistent with the achievement of the active management area's management goals as prescribed by rules adopted by the director pursuant to section 45‑576.
(c) Except as provided in subdivision (d), if the storer is not a municipal provider, the amount of central Arizona project water stored in an active management area that exceeds the amount of groundwater withdrawn during the calendar year by the storer in that active management area. If the storer withdrew groundwater in an active management area during a calendar year in which the storer stored central Arizona project water underground in that active management area pursuant to the storage permit, the amount of central Arizona project water stored underground during that year equal to the amount of groundwater withdrawn from the active management area shall not be credited to the storer's long‑term storage account but may be considered as being available for recovery by the storer on an annual basis under section 45‑851.01. For the purposes of this subdivision, "municipal provider" has the same meaning prescribed in section 45‑561. In calculating the amount of groundwater withdrawn by the storer from the active management area, the director, at the request of the storer, shall exclude:
(i) The amount of any groundwater withdrawn, treated and delivered for direct use as part of a remedial action undertaken pursuant to CERCLA or title 49, chapter 2, article 5.
(ii) The amount of groundwater withdrawn by the storer during the year for mineral extraction or metallurgical processing if the storer was engaged in mineral extraction and metallurgical processing within an initial active management area on or before January 1, 2011.
(d) The amount of central Arizona project water stored in an active management area in any year after 1994 by an agricultural improvement district established pursuant to title 48, chapter 17 for use at those portions of electrical generating facilities that are constructed or expanded after June 12, 1980, subject to both of the following:
(i) If groundwater was used during a year in an active management area at those portions of the electrical generating facilities that were owned and operated by the agricultural improvement district and that were constructed or expanded after June 12, 1980, the amount of the central Arizona project water stored during that year equal to the amount of the groundwater withdrawn during the year for use at those portions of the facilities that were owned and operated by the agricultural improvement district and that were constructed or expanded after June 12, 1980 shall not be credited to the agricultural improvement district's long‑term storage account but may be considered as being available for recovery by the agricultural improvement district on an annual basis under section 45‑851.01.
(ii) Long‑term storage credits accrued as a result of the storage of the central Arizona project water may be recovered within the active management area by the agricultural improvement district only for the purpose of providing central Arizona project water to electrical generating facilities that were owned and operated by the agricultural improvement district and only pursuant to any water requirement included in a facility's certificate of environmental compatibility. Subject to section 45‑854.01, the long‑term storage credits may be assigned by the agricultural improvement district only to the owner of an electrical generating facility for use pursuant to any water requirement included in that facility's certificate of environmental compatibility.
(e) Surface water made available by dams constructed or modified after August 13, 1986.
(f) Effluent.
(f) (g) Until the year 2025:
(i) Effluent.
(ii) (i) If the storage facility is in an active management area, water from outside the active management area that would not have reached the active management area without the efforts of the storer.
(iii) (ii) If the storage facility is outside of an active management area, water from outside the groundwater basin in which the storage facility is located that would not have reached the groundwater basin without the efforts of the storer.
(g) (h) Water that is delivered through the central Arizona project and that is acquired by the Arizona water banking authority.
23. "Water storage" means adding water to an aquifer or saving water in an aquifer pursuant to permits issued under this chapter.
24. "Water storage permit" means a permit issued pursuant to section 45‑831.01 to store water at a storage facility.
Sec. 6. Section 45-834.01, Arizona Revised Statutes, is amended to read:
45-834.01. Recovery of stored water; recovery well permit; emergency temporary recovery well permit; well construction
A. Except as prescribed in SUBSECTION H of this section, a person who holds long‑term storage credits or who may recover water on an annual basis may recover the water stored pursuant to a water storage permit only:
1. If the person seeking to recover stored water has applied for and received a recovery well permit under this article.
2. For water stored within an active management area, if one of the following applies:
(a) The proposed recovery well is located within the area of impact of the stored water, as determined by the director, and either the person recovering the water is the storer or the stored water to be recovered is Colorado river water. If the stored water to be recovered is effluent that is stored in a managed underground storage facility and if the proposed recovery well is not an already constructed well owned by the person recovering the water and is located within the exterior boundaries of the service area of a city, town, private water company or irrigation district, that city, town, private water company or irrigation district must be notified by the person recovering the stored water and must have the right to offer to recover the water stored on behalf of that person. If the city, town, private water company or irrigation district offers to recover the water on behalf of the person seeking recovery and the water that is offered for recovery is of comparable quality to the water that the person could recover, the person seeking to recover the water shall consider accepting the best offer from the city, town, private water company or irrigation district overlying the area of impact that has offered to recover the stored water.
(b) The proposed recovery well is located outside the area of impact of the stored water, as determined by the director, and all of the following apply:
(i) The proposed recovery well is located within the same active management area as storage.
(ii) The director determines that recovery at the proposed location is consistent with the management plan and achievement of the management goal for the active management area.
(iii) If the proposed recovery well is located within the exterior boundaries of the service area of a city, town, private water company or irrigation district, that city, town, private water company or irrigation district is the person seeking to recover the water or has consented to the location of the recovery well.
(iv) If the proposed recovery well is located outside, but within three miles of, the exterior boundaries of the service area of a city, town, private water company or irrigation district, the closest city, town, private water company or irrigation district has consented to the location of the recovery well.
(c) The proposed recovery well is located within the area of impact of the stored water, as determined by the director, the person recovering the water is not the storer, the stored water to be recovered is not Colorado river water and all of the conditions prescribed by subdivision (b), items (i) through (iv) of this paragraph are met.
3. For water stored outside of an active management area, if recovery will occur within the same irrigation non‑expansion area, groundwater basin or groundwater sub‑basin, as applicable, in which the water was stored.
B. Before recovering from any well water stored pursuant to a water storage permit, a person shall apply for and receive a recovery well permit from the director. The director shall issue the recovery well permit if the director determines that:
1. If the application is for a new well, as defined in section 45‑591, or except as provided in paragraphs 2 and 3 of this subsection for an existing well, as defined in section 45‑591, the proposed recovery of stored water will not unreasonably increase damage to surrounding land or other water users from the concentration of wells. The director shall make this determination pursuant to rules adopted by the director.
2. If the applicant is a city, town, private water company or irrigation district in an active management area and the application is for an existing well within the service area of the city, town, private water company or irrigation district, the applicant has a right to use the existing well.
3. If the applicant is a conservation district and the application is for an existing well within the conservation district and within the groundwater basin or sub‑basin in which the stored water is located, the applicant has a right to use the existing well.
C. A city, town, private water company or irrigation district in an active management area may apply with a single application to the director to have all existing wells, as defined in section 45‑591, that the applicant has the right to use within its service area listed as recovery wells on the recovery well permit, if those wells otherwise meet the requirements of this section.
D. If the applicant is a conservation district, the director may issue an emergency temporary recovery well permit without complying with section 45‑871.01, subsection F if the director determines that all of the following apply:
1. The conservation district cannot reasonably continue to supply central Arizona project water directly to a city, town, private water company or irrigation district due to an unplanned failure of a portion of the central Arizona project delivery system.
2. The emergency temporary recovery well permit is necessary to allow the conservation district to provide immediate delivery of replacement water to the city, town, private water company or irrigation district.
3. The application is for an existing well as defined in section 45‑591 that is within the groundwater basin or groundwater sub‑basin in which the stored water is located, is within the conservation district and is within the service area of the city, town, private water company or irrigation district.
E. An emergency temporary recovery well permit issued pursuant to subsection D of this section may be issued for a period of up to ninety days and may be extended for additional ninety day periods if the director determines that the conditions prescribed in subsection D of this section continue to apply.
F. If the application for a recovery well permit is approved, the director shall issue a permit and the applicant may proceed to construct or use the well. If the application is rejected, the applicant shall not proceed to construct or use the well. A new well shall be completed within one year of receipt of the permit, unless the director in granting the permit approves a longer period to complete the well. If the well is not completed within one year or the longer period approved by the director, the applicant shall file a new application before proceeding with construction.
G. A recovery well permit shall include the following information:
1. The name and mailing address of the person to whom the permit is issued.
2. The legal description of the location of the existing well or proposed new well from which stored water may be recovered pursuant to the permit.
3. The purpose for which the stored water will be recovered.
4. The depth and diameter of the existing well or proposed new well from which stored water may be recovered pursuant to the permit.
5. The legal description of the land on which the stored water will be used.
6. The maximum pumping capacity of the existing well or proposed new well.
7. If the permit is for a proposed new well, the latest date for completing the proposed new well.
8. Any other information as the director may determine.
H. A CITY, TOWN, PRIVATE WATER COMPANY OR IRRIGATION DISTRICT THAT HAS BEEN GRANTED A RECOVERY WELL PERMIT MAY WITHDRAW STORED WATER ON BEHALF OF A PERSON WHO OWNS the LONG-TERM STORAGE CREDITS AND MAY TRANSPORT the STORED WATER THROUGH THE CITY'S, TOWN'S, PRIVATE WATER COMPANY'S OR IRRIGATION DISTRICT'S WATER DELIVERY FACILITIES TO THE PERSON WHO OWNS the LONG-TERM STORAGE CREDITS. Those STORED WATER DELIVERIES MAY BE COMMINGLED WITH OTHER WATER SUPPLIES IN TRANSPORT, BUT are DEEMED TO BE STORED WATER DELIVERED WHOLLY, DIRECTLY AND EXCLUSIVELY TO THE PERSON WHO OWNS THE LONG-TERM STORAGE CREDITS.
I. IF the LONG-TERM STORAGE CREDITS INCLUDED BY THE DIRECTOR IN DETERMINING WHETHER TO ISSUE A CERTIFICATE OF ASSURED WATER SUPPLY TO A PERSON PURSUANT TO SECTION 45-576 OR A REPORT OF ADEQUATE WATER SUPPLY PURSUANT TO SECTION 45-108 ARE ASSIGNED TO AND HELD BY A CITY, TOWN OR PRIVATE WATER COMPANY PROVIDING WATER TO THE SUBDIVISION PURSUANT TO section 45-855.01, subSECTION C, THE CITY, TOWN OR PRIVATE WATER COMPANY MAY TRANSPORT STORED WATER WITHDRAWN BASED ON THE ASSIGNED LONG-TERM STORAGE CREDITS THROUGH THE CITY'S, TOWN'S OR PRIVATE WATER COMPANY'S WATER DELIVERY FACILITIES TO THE SUBDIVISION FOR WHICH THE CERTIFICATE OF ASSURED WATER SUPPLY OR CERTIFICATE OF ADEQUATE WATER SUPPLY HAS BEEN ISSUED. those STORED WATER DELIVERIES MAY BE COMMINGLED WITH OTHER WATER SUPPLIES IN TRANSPORT, BUT are DEEMED TO BE STORED WATER DELIVERED WHOLLY, DIRECTLY AND EXCLUSIVELY TO THE SUBDIVISION FOR WHICH THE CERTIFICATE OF ASSURED WATER SUPPLY OR CERTIFICATE OF ADEQUATE WATER SUPPLY HAS BEEN issued.
Sec. 7. Section 45-852.01, Arizona Revised Statutes, is amended to read:
45-852.01. Long‑term storage accounts
A. The director shall establish one long‑term storage account for each person holding long‑term storage credits. The director shall establish subaccounts within the long‑term storage account according to each active management area, irrigation non‑expansion area, groundwater basin or groundwater subbasin in which the person's stored water is located. The long‑term storage account shall be further subdivided by type of water, if the person holds long‑term storage credits for more than one type of water.
B. Water stored pursuant to a water storage permit at a storage facility may be credited to a long‑term storage account if the director determines that all of the following apply:
1. The water that was stored was water that cannot reasonably be used directly.
2. If the stored water was stored at a storage facility within an active management area, either:
(a) The water would not have been naturally recharged within the active management area.
(b) If the water was stored at a managed underground storage facility that has been designated as a facility that could add value to a national park, national monument or state park and the water stored is effluent, the water stored is water that could have been used or disposed of by the storer by means other than discharging the effluent into the stream.
3. The stored water was not recovered on an annual basis pursuant to section 45‑851.01.
C. The director shall credit ninety‑five per cent of the recoverable amount of stored water that meets the requirements of subsection B of this section to the storer's long‑term storage account, except that:
1. If the water was stored at a managed underground storage facility that had not been designated at the time of storage as a facility that could add value to a national park, national monument or state park and the water stored is effluent, the director shall credit to the storer's long‑term storage account fifty per cent of the recoverable amount of water that meets the requirements of subsection B of this section. For storage of effluent in a managed underground storage facility that is located in a recreational corridor channelization district established pursuant to title 48, chapter 35, the director may increase the storage credits earned from fifty per cent to ninety‑five per cent if both of the following apply:
(a) The effluent was not discharged into the stream where the facility is located before the permit application for that facility was filed.
(b) The director determines that the storage of effluent in the facility will provide a greater benefit to aquifer conditions in the active management area or, if outside an active management area, to the groundwater basin than would accrue to the active management area or groundwater basin if the effluent is used or disposed of in another manner.
2. If the water was stored at a groundwater savings facility and the storer has not met the burden of proving that one hundred per cent of the in lieu water was used on a gallon‑for‑gallon substitute basis for groundwater, the director shall credit to the storer's long‑term storage account only the percentage of the in lieu water that meets the requirements of subsection B of this section and that was proven to the director's satisfaction as being used on a gallon‑for‑gallon substitute basis for groundwater.
3. The director shall credit to the storer's long-term storage account ninety per cent of the recoverable amount of the water that meets the requirements of subsection B of this section if all of the following apply:
(a) The stored water was central Arizona project water that qualifies as water that cannot reasonably be used directly due solely to the exclusion of groundwater withdrawn by the storer for mineral extraction or metallurgical processing under section 45‑802.01, paragraph 22, subdivision (c).
(b) The storer was engaged in mineral extraction and metallurgical processing within an initial active management area on or before January 1, 2011.
(c) All exterior boundaries of the storage facility that is used to store the stored water are more than twenty miles from a well owned by the storer on January 1, 2012 and that well is not an exempt well and any one or more of the following apply:
(i) The well is an existing well as defined in section 45-591, paragraph 1.
(ii) The department has issued a permit for the well under section 45‑599, subsection C.
(iii) The well was drilled pursuant to a mineral extraction and metallurgical processing permit issued by the department under section 45‑514.
4. Except as otherwise provided in paragraphs 1, 2 and 3 of this subsection, the director shall credit to the storer's long‑term storage account or conservation district account one hundred per cent of the recoverable amount of water that meets the requirements of subsection B of this section if any of the following applies:
(a) The water stored was effluent.
(b) The water was stored in an active management area and the stored water is water from outside the active management area that would not have reached the active management area without the efforts of the holder of the long‑term storage credits.
(c) The water was stored outside an active management area and the stored water is water from outside the groundwater basin in which the water was stored that would not have reached the groundwater basin without the efforts of the holder of the long‑term storage credits.
(d) The water was stored for purposes of establishing and maintaining a replenishment reserve pursuant to section 48‑3772, subsection E.
(e) The water was stored for replenishment purposes pursuant to section 48‑3771 and credited directly to a conservation district account pursuant to section 45‑859.01, subsection E F.
D. The director shall credit a person's long‑term storage account by the amount of long‑term storage credits assigned to that person by another holder of long‑term storage credits pursuant to section 45‑854.01.
E. The director shall debit the appropriate subaccount of a person's long‑term storage account:
1. One hundred per cent of the amount of stored water that the holder of the long‑term storage credits has recovered during the calendar year pursuant to the permit.
2. The amount of long‑term storage credits that the person has assigned to another person or transferred to a master replenishment account, conservation district account or water district account.
3. If the water was stored in an active management area, the amount of water during the calendar year that migrates to a location outside the active management area or to a location within the active management area where it cannot be beneficially used within a reasonable period of time by persons other than the storer with rights to withdraw and use groundwater.
4. If the water was stored outside of an active management area, the amount of water during the calendar year that migrates to a location outside the groundwater basin in which the storage facility is located or to a location in the groundwater basin where it cannot be beneficially used within a reasonable period of time by persons other than the storer with rights to withdraw and use groundwater.
5. The amount of long‑term storage credits that the storer, pursuant to section 45‑853.01, subsection B, has applied to offset groundwater withdrawn or used in excess of the storer's per capita municipal conservation requirements under the second management plan.
6. The amount of long‑term storage credits that are held by the Arizona water banking authority and that the authority has chosen to extinguish.
F. To the extent the total amount of water withdrawn by a person from wells designated as recovery wells pursuant to section 45‑834.01 during a calendar year exceeds the amount of stored water recovered by the person on an annual basis pursuant to section 45‑851.01 and the amount of long‑term storage credits recovered by the person, the excess amount of water recovered shall be considered groundwater withdrawn pursuant to chapter 2 of this title.
Sec. 8. Section 45-855.01, Arizona Revised Statutes, is amended to read:
45-855.01. Effect of long-term storage credits on assured water supply and adequate water supply
A. In an active management area, except as provided in section 45‑853.01, subsection C, and on the request of a person who holds long‑term storage credits, the director shall include the amount of long-term storage credits requested by the person in determining whether to issue a certificate of assured water supply to the person pursuant to section 45‑576, or if the person is a city, town or private water company, whether to designate or predesignate the city, town or private water company as having an assured water supply. This subsection shall does not be construed to prohibit or require the director to include projected additions to a long-term storage account in determining whether to issue a certificate of assured water supply to the person, or if the person is a city, town or private water company, whether to designate or redesignate the city, town or private water company as having an assured water supply.
B. Outside an active management area, except as provided in section 45‑853.01, subsection C and on the request of a person who holds long-term storage credits, the director shall include the amount of long-term storage credits requested by the person in determining whether to issue a report of adequate water supply pursuant to section 45‑108 for a subdivision to the person, or if the person is a city, town or private water company, whether to designate the city, town or private water company as having an adequate water supply. This subsection shall does not be construed to prohibit or require the director to include projected additions to a long-term storage account in determining whether to issue a report of adequate water supply for a subdivision to the person, or if the person who holds the long-term storage account is a city, town or private water company, whether to designate the city, town or private water company as having an adequate water supply.
C. Long-term storage credits included by the director in making the determinations and designations in subsections A and B of this section are not assignable by the person holding the credits, unless the director has determined that the credits will continue to be used for the subdivision for which the certificate of assured water supply or certificate of adequate water supply has been issued or for the service area that has been designated as having an assured water supply or an adequate water supply. LONG-TERM STORAGE CREDITS INCLUDED BY THE DIRECTOR IN DETERMINING WHETHER TO ISSUE A CERTIFICATE OF ASSURED WATER SUPPLY TO A PERSON PURSUANT TO SECTION 45-576 OR A REPORT OF ADEQUATE WATER SUPPLY PURSUANT TO SECTION 45-108 MAY BE ASSIGNED TO AND HELD BY A CITY, TOWN OR PRIVATE WATER COMPANY that provides WATER TO a SUBDIVISION FOR WHICH THE CERTIFICATE OF ASSURED WATER SUPPLY OR report OF ADEQUATE WATER SUPPLY HAS BEEN ISSUED REGARDLESS OF THE CITY'S, TOWN'S OR PRIVATE WATER COMPANY'S ELIGIBILITY TO EARN, HOLD OR ACCEPT ASSIGNMENTS OF LONG-TERM STORAGE CREDITS that are NOT INCLUDED IN SUCH A DETERMINATION.
Sec. 9. Section 45-859.01, Arizona Revised Statutes, is amended to read:
45-859.01. Conservation district account; replenishment reserve subaccount; debits and credits
A. The director shall establish a long‑term storage account and a conservation district account for each active management area in which a member land or member service area is or may be located. The director shall establish a replenishment reserve subaccount within the long‑term storage account for each active management area in which a member land or member service area is or may be located.
B. For each reporting year, the groundwater replenishment obligation as defined in section 48‑3701 for each active management area shall be debited from the conservation district account for that active management area.
C. For each reporting year, the contract replenishment obligation as defined in section 48‑3701 for each active management area shall be debited from the conservation district account for that active management area.
D. On application by a conservation district to the director, credits in the conservation district's long‑term storage account for an active management area, including credits earned through the use of excess capacity of each project permitted under article 6 of this chapter, shall be transferred and credited to its conservation district account for the same active management area.
E. Before JANUARY 1, 2030, ON APPLICATION BY A CONSERVATION DISTRICT TO THE DIRECTOR, CREDITS IN THE CONSERVATION DISTRICT'S REPLENISHMENT RESERVE SUBACCOUNT FOR AN ACTIVE MANAGEMENT AREA SHALL BE TRANSFERRED AND CREDITED TO ITS CONSERVATION DISTRICT ACCOUNT FOR THE SAME ACTIVE MANAGEMENT AREA if tHAT TRANSFER DOES NOT CAUSE THE BALANCE IN THE REPLENISHMENT RESERVE SUBACCOUNT FOR THE ACTIVE MANAGEMENT AREA TO FALL BELOW THE RESERVE TARGET FOR THAT ACTIVE MANAGEMENT AREA.
E. F. On or after January 1, 2030 or earlier, on approval of the director of water resources pursuant to subsection K of this section, on application by a conservation district to the director, credits in the conservation district's replenishment reserve subaccount for an active management area shall be transferred and credited to its conservation district account for the same active management area, except that any such transfer that would cause the balance in the replenishment reserve subaccount for an active management area to fall below twenty‑five per cent percent of the reserve target for that active management area shall be subject to the approval of the director.
F. G. Except as provided in subsection E or F of this section, credits in a replenishment reserve subaccount may be assigned or transferred out of the replenishment reserve subaccount only on application by the conservation district to the director and only if the director determines that the assignment or transfer is warranted due to a reduction in the reserve target as defined in section 48‑3701. If credits in a replenishment reserve subaccount are assigned or transferred to any account other than a conservation district account, then five per cent percent of the assigned or transferred credits shall be permanently extinguished.
G. H. For each reporting year, the director shall credit the conservation district's conservation district account by the amount of water stored by the conservation district during the reporting year, if the conservation district has requested the director to credit the stored water directly to its conservation district account and the stored water would otherwise be eligible for credits in a long‑term storage account.
H. I. For each reporting year, the director shall credit the conservation district's replenishment reserve subaccount for each active management area by the amount of long‑term storage credits developed by the conservation district in that active management area during the reporting year for that purpose.
I. J. By October 31 of each year, the director shall determine whether the conservation district has completed the groundwater replenishment obligation for each active management area as prescribed by section 48‑3771.
J. K. Credits in a conservation district account may not be assigned or transferred out of the conservation district account.
K. L. For credit transfers from a conservation district's REPLENISHMENT reserve SUBACCOUNT for an active management area to its conservation district account for the same active management area that do not satisfy the requirements of SUBSECTION E of this section, a conservation district may apply to the director to transfer credits in the conservation district's replenishment reserve subaccount for an active management area to its conservation district account for the same active management area earlier than January 1, 2030. The application shall specify the reason for the request, state the amount of credits sought to be transferred and include a plan for replacing the credits in the replenishment reserve subaccount. The director shall approve the application if the director determines that both of the following apply:
1. The conservation district has demonstrated good cause for the transfer.
2. The conservation district's plan for replacing the transferred credits is adequate.
Sec. 10. Section 48-3701, Arizona Revised Statutes, is amended to read:
48-3701. Definitions
In this chapter, unless the context otherwise requires:
1. "Active management area" means an active management area established under title 45, chapter 2, article 2.
2. "AMA-SPECIFIC SHORTAGE REDUCTION" MEANS, FOR EACH COLORADO RIVER ENTITLEMENT HELD BY THE DISTRICT FOR REPLENISHMENT PURPOSES FOR USE IN A SPECIFIC ACTIVE MANAGEMENT AREA, THE SHORTAGE VOLUME OF THAT COLORADO RIVER ENTITLEMENT MINUS THE SHORTAGE SUPPLY OF THAT COLORADO RIVER ENTITLEMENT, BUT NOT LESS THAN ZERO.
2. 3. "Board" means the board of directors of a multi‑county water conservation district.
3. 4. "Contract replenishment obligation" means an amount of groundwater that the district contracts to replenish in a year on behalf of a municipal provider pursuant to a contract authorized under section 48‑3772, subsection B, paragraph 9.
4. 5. "Credits" means any groundwater in addition to the amount of groundwater that may be used at a member land or delivered within a member service area for use within the member service area pursuant to the applicable assured water supply rules adopted by the department of water resources.
5. 6. "Declaration" means an instrument recorded against real property and conforming to the requirements prescribed by section 48‑3774, subsection A, paragraph 5.
6. 7. "District" means a multi‑county water conservation district organized under the authority of this chapter.
7. 8. "Excess groundwater" means an amount of groundwater equal to that amount of groundwater delivered to a member land in a calendar year or delivered within a member service area by the municipal provider for that member service area in a calendar year in excess of the amount of groundwater that may be used at the member land in that calendar year or that may be delivered by the municipal provider for use within the member service area in that calendar year and consistent with the applicable assured water supply rules adopted by the department of water resources for the active management area where the member land or the member service area is located.
8. 9. "Excess groundwater increment" means the amount by which excess groundwater reported for a member service area under section 48‑3775, subsection B in any year exceeds the maximum amount of excess groundwater reported for that member service area in any prior year.
10. "GENERAL SHORTAGE REDUCTION" MEANS, FOR EACH COLORADO RIVER ENTITLEMENT HELD BY THE DISTRICT FOR REPLENISHMENT PURPOSES FOR USE IN ANY OF THE PHOENIX, PINAL OR TUCSON ACTIVE MANAGEMENT AREAS, THE SHORTAGE VOLUME OF THAT COLORADO RIVER ENTITLEMENT MINUS THE SHORTAGE SUPPLY OF THAT COLORADO RIVER ENTITLEMENT, BUT NOT LESS THAN ZERO.
9. 11. "Groundwater replenishment obligation" means, for each active management area in which member lands or member service areas are or may be located, the total of the cumulative parcel replenishment obligation of all parcels of member land in that active management area for a particular calendar year plus the cumulative service area replenishment obligation of all member service areas in that active management area for a particular calendar year, ADJUSTED FOR EACH SHORTAGE YEAR AS PROVIDED IN section 48-3771, SUBSECTION F.
10. 12. "Member land" means any real property that meets the requirements of section 48‑3774.
11. 13. "Member service area" means the service area of a municipal provider that qualifies as a member service area under section 48‑3780, including any additions to or extensions of the service area.
12. 14. "Multi‑county water conservation district" means a district composed of three or more counties that have joined together for the creation of a district.
13. 15. "Municipal provider" means a city, town or private water company or an irrigation district that supplies water for non‑irrigation use.
14. 16. "Parcel of member land" means any portion of member land for which the tax assessor for the county in which the member land is located has issued a separate county parcel number.
15. 17. "Parcel replenishment obligation" means, with respect to any particular parcel of member land, an amount of groundwater that is equal to the amount of groundwater delivered to the parcel of member land in a calendar year multiplied by the percentage that the excess groundwater of the applicable member land for that year bears to the total amount of groundwater delivered to the applicable member land during that year.
16. 18. "Population" means the population determined in the most recent United States decennial census.
17. 19. "Private water company" has the same meaning prescribed in section 45‑402.
18. "Projected one hundred year replenishment obligation" means for each active management area, the district's total projected annual groundwater replenishment obligation at active management area build-out, multiplied by one hundred.
19. 20. "Replenish" means to increase the amount of groundwater in an aquifer through water storage pursuant to title 45, chapter 3.1 for the purpose of meeting the obligations of article 4 of this chapter.
20. 21. "Reserve target" means the volume calculated for each active management area as prescribed by section 48‑3772, subsection E.
21. 22. "Resolution" means a resolution adopted by the governing body of a city or town, by the board of directors of a private water company that is a corporation, by the general partners of a private water company that is a partnership or by the individual owners of a private water company that is individually owned.
22. 23. "Secretary" means the secretary of the interior of the United States of America.
23. 24. "Service area" has the same meaning prescribed in section 45‑402.
24. 25. "Service area replenishment obligation" means, with respect to any particular member service area, the excess groundwater of that member service area in a particular calendar year reduced by the replenishment credits, if any, applied by the municipal provider with respect to the member service area under section 48‑3772, subsection H.
26. "SHORTAGE PERCENTAGE" MEANS, FOR EACH SHORTAGE YEAR, A PERCENTAGE DETERMINED BY calculating THE CUMULATIVE GROUNDWATER REPLENISHMENT OBLIGATION OF ALL ACTIVE MANAGEMENT AREAS FOR THE SHORTAGE YEAR, MINUS THE CUMULATIVE GENERAL SHORTAGE REDUCTIONS FOR THE SHORTAGE YEAR and dividing that amount BY THE CUMULATIVE GROUNDWATER REPLENISHMENT OBLIGATION OF ALL ACTIVE MANAGEMENT AREAS FOR THE SHORTAGE YEAR, except that FOR PURPOSES OF CALCULATING THE SHORTAGE PERCENTAGE FOR A SHORTAGE YEAR DURING WHICH AN AMA-SPECIFIC SHORTAGE REDUCTION OCCURS, THE CUMULATIVE GROUNDWATER REPLENISHMENT OBLIGATION OF ALL ACTIVE MANAGEMENT AREAS FOR THE SHORTAGE YEAR SHALL BE REDUCED BY THE CUMULATIVE AMOUNT OF THE AMA-SPECIFIC SHORTAGE REDUCTIONS IN THAT SHORTAGE YEAR.
27. "SHORTAGE SUPPLY" MEANS, FOR EACH COLORADO RIVER ENTITLEMENT HELD BY THE DISTRICT FOR REPLENISHMENT PURPOSES, THE AMOUNT OF THAT COLORADO RIVER ENTITLEMENT DELIVERED TO THE DISTRICT DURING A SHORTAGE YEAR.
28. "SHORTAGE VOLUME" MEANS, FOR EACH COLORADO RIVER ENTITLEMENT HELD BY THE DISTRICT FOR REPLENISHMENT PURPOSES, EIGHTY PERCENT OF THAT COLORADO RIVER ENTITLEMENT.
29. "SHORTAGE YEAR" MEANS A CALENDAR YEAR FOR WHICH THE SECRETARY HAS ISSUED A DECLARATION THAT A SHORTAGE CONDITION EXISTS ON THE COLORADO RIVER PURSUANT TO SECTION G.2.d OF THE 2007 GUIDELINES. For the purposes of this paragraph, "2007 GUIDELINES" MEANS THE RECORD OF DECISION, COLORADO RIVER INTERIM GUIDELINES FOR LOWER BASIN SHORTAGES AND THE COORDINATED OPERATIONS FOR LAKE POWELL AND LAKE MEAD, SIGNED BY THE COMMISSIONER OF THE UNITED STATES BUREAU OF RECLAMATION ON DECEMBER 13, 2007, AS SUCH MAY BE EXTENDED OR AMENDED.
25. 30. "Water storage" has the same meaning prescribed in section 45‑802.01.
Sec. 11. Section 48-3713, Arizona Revised Statutes, is amended to read:
48-3713. Powers of district
A. The district, acting through its board, shall:
1. Enter into a contract or contracts with the secretary to accomplish the purposes of this chapter.
2. Provide for the repayment of construction costs, interest and annual operation, maintenance and replacement costs allocated to the district and payment of administrative costs and expenses of the district.
3. Levy an annual tax to defray district costs and expenses and to effect repayment of a portion of the district's obligation to the United States. Such tax levy shall not exceed ten cents $.10 per each one hundred dollars $100 of assessed valuation of the taxable property within the district.
4. Establish and cause to be collected charges for water consistent with federal reclamation law and contracts entered into between the district and the secretary pursuant to this chapter.
5. Cooperate and contract with the secretary to carry out the provisions of the reclamation act of June 17, 1902 (32 Stat. 388), and acts amendatory thereof or supplementary thereto, including the Colorado river basin project act (82 Stat. 885).
6. Establish and maintain reserve accounts in amounts which that may be required by any contract between the district and the secretary and in such additional amounts as may be deemed necessary to accomplish the purposes of this chapter.
7. Coordinate and cooperate with the Arizona water banking authority.
B. The district, acting through its board, may:
1. Contract with the United States to be the operating agent of the central Arizona project and to maintain all or portions of the project and subcontract with others for the operation or maintenance of portions of the project.
2. Acquire in any lawful manner real and personal property of every kind necessary or convenient for the uses and purposes of the district.
3. Acquire electricity or other forms of energy necessary for the operation of the central Arizona project. Effective retroactively to taxable years beginning from and after December 31, 1984, the acquisition of electricity or other forms of energy by the district for the purposes of pumping central Arizona project water shall not be subject to any state or municipal transaction privilege or use tax.
4. Contract for or perform feasibility studies of water storage, storage facilities and recovery wells.
5. Acquire, develop, construct, operate, maintain and acquire permits for water storage, storage facilities and recovery wells pursuant to title 45, chapter 3.1 using surplus central Arizona project water.
6. Enter into contracts to acquire, permit, develop, construct, operate and maintain water storage, storage facilities and recovery wells with any person pursuant to title 45, chapter 3.1. Such projects may utilize water, including central Arizona project water, which such persons have the right to store pursuant to title 45, chapter 3.1.
7. Plan, analyze, propose, apply for, construct, operate, maintain and dismantle state demonstration projects for water storage and recovery under title 45, chapter 3.1, article 6.
8. Acquire real property for state demonstration projects for water storage and recovery under title 45, chapter 3.1 by purchase, lease, donation, dedication, exchange or other lawful means in areas suitable for demonstration projects for water storage and recovery of state water in counties in which the district has water transportation facilities.
9. Advance monies necessary for the installation, construction, repair, maintenance or replacement of capital improvements related to any water storage, storage facilities and recovery wells or any other replenishment activities of the district undertaken pursuant to article 4 of this chapter. Monies advanced under this paragraph bear interest as determined by the board. Repayment of the advances shall be amortized over the useful life of the capital improvements, as determined by the board. Utilization of excess capacity in a state demonstration project for replenishment purposes pursuant to section 48‑3772, subsection B, paragraph 8 does not constitute the advancement of monies under this paragraph. Monies advanced under this paragraph shall not be used to pay the principal of, or interest or premium on, revenue bonds issued pursuant to article 3 of this chapter to acquire, lease or exchange water or water rights and develop infrastructure necessary for the district to perform its replenishment obligations.
10. Advance monies for the payment of the operation and administrative costs and expenses of the district relating to performance of the groundwater replenishment obligations under article 4 of this chapter, including replenishment reserve activities and reasonable reserves. Monies advanced under this paragraph shall bear interest as determined by the board. Repayment of the advances may be amortized over a reasonable period, as determined by the board. Monies advanced under this paragraph shall not be used to pay the principal of, or interest or premium on, revenue bonds issued pursuant to article 3 of this chapter to acquire, lease or exchange water or water rights and develop infrastructure necessary for the district to perform its replenishment obligations.
11. Assign to the account of the district at fair value long‑term storage credits, as defined in section 45‑802.01, held by the district.
12. Provide technical and operational support to the Arizona water banking authority and shall be reimbursed by the Arizona water banking authority for providing that support.
13. Appoint certain employees of the district as peace officers only for purposes of providing law enforcement on property which that is under the control of the district. The district shall not have any more than ten employees designated as peace officers at any one time.
14. Except for electric capacity and energy allocated to the Arizona power authority under the Hoover power plant act of 1984 (P.L. 98‑381; 98 Stat. 1333), sell, resell, deliver or distribute electricity or other forms of energy acquired by the district for purposes of operating the central Arizona project but not needed by the district for such purposes, except that the district may not sell, resell, deliver or distribute electricity to a retail electric customer as defined in section 30‑801.
15. ENTER INTO INTERGOVERNMENTAL AGREEMENTS PURSUANT TO TITLE 11, CHAPTER 7, ARTICLE 3 WITH ANY COUNTY IN WHICH ANY PROPERTY OR INTEREST IN PROPERTY IS LOCATED TO REQUIRE THE DISTRICT TO PAY TO THE COUNTY CONTRIBUTIONS IN LIEU OF TAXES ON THE PROPERTY, OR INTEREST IN PROPERTY. THE AMOUNT OF THE CONTRIBUTION SHALL BE DETERMINED ACCORDING TO THE PROCEDURES IN TITLE 42, CHAPTER 15, ARTICLE 6. IF THE DISTRICT AND THE COUNTY HAVE ENTERED INTO aN INTERGOVERNMENTAL AGREEMENT pursuant to this paragraph, THE PROPERTY OR INTEREST IN PROPERTY that is ACQUIRED UNDER THIS paragraph IS DEEMED TO BE TAXABLE PROPERTY IN THE COUNTY ONLY FOR PURPOSES OF DETERMINING THE COUNTY'S LEVY LIMIT UNDER SECTION 42-17051 AND THE DISTRIBUTION OF STATE TRANSACTION PRIVILEGE TAX REVENUES TO THE COUNTIES UNDER SECTION 42-5029, SUBSECTION D, PARAGRAPH 3, SUBDIVISION (a), ITEM (i).
C. The authority granted under title 45, chapter 3.1, article 6 does not authorize the district to withdraw and use groundwater that exists naturally in the basin in which the stored water is located. The authority provided in subsection B, paragraph 7 of this section is in addition to and distinct from any authority granted to the district by subsection B, paragraphs 5 and 6 of this section.
D. The functions of the district under subsection B, paragraph 5 of this section may be performed on behalf of the district by other persons under contract with the district.
E. The district may enter into and carry out subcontracts with water users for the delivery of water through the facilities of the central Arizona project. Such contracts as may be entered into between the district and the secretary and between the district and water users shall be subject to the provisions of the Colorado river basin project act (P.L. 90‑537; 82 Stat. 885). Before entering into such contracts the district shall determine that the proposed contract or proposed amendment, and all related exhibits and agreements, have been submitted to the director of water resources as required by section 45‑107, subsection D.
F. The district may in conjunction with any other marketing entity or entities be a marketing entity under section 107 of the Hoover power plant act of 1984 (P.L. 98‑381; 98 Stat. 1333) solely for the limited purposes of establishing and collecting the additional rate components authorized by that act and may enter into contracts for that purpose. This subsection does not limit the authority of the district under subsection B, paragraph 3 of this section and does not prohibit the United States western area power administration or the Arizona power authority from making incidental disposition of power acquired by the district for purposes of operating the central Arizona project but not needed by the district for such purposes.
G. Persons who are appointed as peace officers by the district pursuant to subsection B of this section shall provide law enforcement on the property which that is under the control of the district. District peace officers shall not preempt the authority and jurisdiction of other police agencies of this state or its political subdivisions. A district peace officer shall notify appropriate agencies of this state and its political subdivisions after making a felony arrest or beginning a felony investigation within the jurisdiction of that agency. District peace officers shall have at least those qualifications prescribed by section 41‑1822 and are not eligible to participate in the public safety personnel retirement system. The district is not eligible to receive funds from the peace officers' training fund specified in established by section 41‑1825. The district shall reimburse the Arizona peace officer standards and training board for all training expenses incurred by the board for the district and all audit expenses incurred by the board in reviewing compliance by the district with peace officer standards and law enforcement standards established by the board.
Sec. 12. Section 48-3713.01, Arizona Revised Statutes, is amended to read:
48-3713.01. Additional authority and limitations regarding water storage
A. Except for water storage undertaken for replenishment purposes pursuant to article 4 of this chapter and water storage undertaken in cooperation with the Arizona water banking authority pursuant to title 45, chapter 14, water storage undertaken by the district pursuant to section 48‑3713, subsection B, paragraph 5 shall be limited to that which benefits holders of central Arizona project water services subcontracts.
B. The charges to be assessed to the purchasers of water recovered pursuant to title 45, chapter 3.1 shall include the cost of acquiring, developing, constructing, operating and maintaining the water storage.
C. The revenues obtained pursuant to subsection B of this section shall be placed into a separate account by the district. Revenues shall be used to offset the levy of the district pursuant to section 48‑3715 on a schedule adopted by the district to the extent that revenues from levies made pursuant to section 48‑3715 were used to acquire, develop, construct, operate or maintain the water storage.
D. Water storage of central Arizona project water by the district pursuant to this section is limited to water which that would otherwise not be delivered to central Arizona project subcontractors for direct use.
E. In connection with the development and operation of water storage, the district may acquire outside of an active management area by purchase, donation, dedication, exchange or other lawful means, except by eminent domain, authority to recover stored water pursuant to title 45, chapter 3.1.
F. The district may enter into an intergovernmental agreement, pursuant to title 11, chapter 7, article 3, with the county in which any property, or interest in property, acquired under this section is located to require the district to pay to the county contributions in lieu of taxes on the property, or interest in property. The amount of the contribution shall be determined according to the procedures in title 42, chapter 15, article 6. If the district and the county have entered into such an intergovernmental agreement, the property, or interest in property, acquired under this subsection is deemed to be taxable property in the county only for purposes of determining the county's levy limit under section 42‑17051 and the distribution of state transaction privilege tax revenues to the counties under section 42‑5029, subsection D, paragraph 3, subdivision (a), item (i).
G. F. The district may expend any money received to pay any cost of acquisition, development, construction, operation and maintenance for water storage, storage facilities and recovery wells authorized pursuant to this section from sources including district taxes, bond proceeds from bonds authorized pursuant to section 48‑3713, subsection B, paragraph 5 and municipal and industrial water service contract revenues not otherwise pledged to other obligations of the district.
H. G. The board may authorize, issue and sell negotiable revenue bonds to provide monies to acquire, develop, construct, operate and maintain by purchase or lease any water storage, storage facilities and recovery wells authorized by section 48‑3713, subsection B, paragraph 5. The bonds may be in one or more series and may be secured by revenues received pursuant to the contracts authorized by this section or section 48‑3713.02. The district shall not have outstanding at any one time bonds issued pursuant to this section having an aggregate par value in excess of thirty-five million net of original use discount and any reserve and sinking funds securing said bonds. The bonds may have different dates, be payable in a medium and at different places, have reserve or sinking funds, carry registration privileges, bear a rate or rates of interest which that may vary from time to time, but which that shall not exceed twelve per cent percent per annum, contain terms, covenants and conditions, be in a form, be executed in a manner and be sold at prices as the board may prescribe. The issuer may assign its interest in any or all revenues, contracts and reserve or sinking funds securing any bonds to a bank or trust company doing business in this state that shall act as indenture trustee. The resolution of the board or the trust indenture authorizing the issuance of the bonds may contain such covenants, conditions and provisions as the board deems necessary to secure the bonds. The board is also authorized to purchase credit or liquidity enhancement and to expend bond proceeds or contract revenues to aid such purchase. The board is authorized, in its discretion, to employ such consultants, experts or agents and to expend bond proceeds or contract revenues to pay any and all fees and expenses of bond issuance and administration.
I. H. Bonds issued under the provisions of this section shall be legal investments for all banks, trust companies and insurance companies organized and operating under the laws of this state. The bonds and interest thereon on the bonds shall be paid solely in accordance with their terms and shall not be obligations general, special or otherwise of this state or any political subdivision of this state other than the issuer. The issuer shall not in any event be liable for the payment of the principal of or interest on the bonds from any source of revenues other than those pledged for the payment of the bonds. The holder of the bonds shall never have the right to compel any exercise of the taxing power of the this state, any political subdivision thereof of this state or the issuer to provide for payment of the bonds or to pay any claim arising of any nature with respect to the issuance or sale of the bonds. The bonds shall never be construed to do not constitute an indebtedness of the issuer within the meaning of any constitutional or statutory debt or spending limitations.
Sec. 13. Section 48-3771, Arizona Revised Statutes, is amended to read:
48-3771. District replenishment obligations; replenishment location; source of replenishment; exception
A. For each active management area in which member lands or member service areas are or may be located, the district shall replenish groundwater in an amount equal to the groundwater replenishment obligation for that active management area. Except as provided in section 48‑3781, subsection G, the district shall complete the replenishment of the groundwater replenishment obligation of that active management area applicable to a particular year within three five full calendar years after the year that the district incurs the groundwater replenishment obligation. Replenishment of the groundwater replenishment obligation of an active management area applicable to a particular year is complete when the amount of water added to aquifers through water storage that has been credited directly to the district's conservation district account pursuant to title 45, chapter 3.1, plus long-term storage credits that have been transferred from the district's long-term storage account to its conservation district account pursuant to title 45, chapter 3.1, less the groundwater replenishment obligation of member lands and member service areas located in the active management area and applicable to previous years, less the contract replenishment obligations relative to municipal providers in the active management area for previous years and the year of the calculation, equals or exceeds the groundwater replenishment obligation of the active management area for that year.
B. With respect to the portion of the groundwater replenishment obligation attributable to a parcel of member land or a member service area, the district shall replenish groundwater in the active management area where the parcel of member land or the member service area is located in an amount equal to the groundwater replenishment obligation applicable to that parcel of member land or that member service area.
C. Except as provided by title 45, chapter 3.1, the district 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.
D. Notwithstanding any other provision of this chapter, if a parcel of member land is included in the service area of a municipal provider that is not a member service area but that has been designated as having an assured water supply under section 45‑576, 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.
E. Notwithstanding any other provision of this chapter, if a parcel of member land 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 under section 45‑576, the parcel of member land has no further parcel replenishment obligation.
F. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, DURING EACH SHORTAGE YEAR, THE GROUNDWATER REPLENISHMENT OBLIGATION FOR ACTIVE MANAGEMENT AREAS IN WHICH MEMBER LANDS OR MEMBER SERVICE AREAS ARE LOCATED SHALL BE CALCULATED AS FOLLOWS:
1. IF THE DISTRICT HOLDS A COLORADO RIVER ENTITLEMENT FOR REPLENISHMENT PURPOSES FOR USE IN A SPECIFIC ACTIVE MANAGEMENT AREA, THE GROUNDWATER REPLENISHMENT OBLIGATION FOR THAT ACTIVE MANAGEMENT AREA SHALL EQUAL the amount determined by calculating the TOTAL OF THE CUMULATIVE PARCEL REPLENISHMENT OBLIGATION OF ALL PARCELS OF MEMBER LAND IN THAT ACTIVE MANAGEMENT AREA FOR THE PARTICULAR SHORTAGE YEAR plus THE CUMULATIVE SERVICE AREA REPLENISHMENT OBLIGATION OF ALL MEMBER SERVICE AREAS IN THAT ACTIVE MANAGEMENT AREA FOR THE PARTICULAR SHORTAGE YEAR, MINUS THE CUMULATIVE AMA-SPECIFIC SHORTAGE REDUCTIONS, IF ANY, APPLICABLE TO THAT ACTIVE MANAGEMENT AREA FOR THE PARTICULAR SHORTAGE YEAR and MULTIPLYING That AMOunt BY THE SHORTAGE PERCENTAGE FOR THE PARTICULAR SHORTAGE YEAR.
2. FOR EACH ACTIVE MANAGEMENT AREA TO WHICH paragraph 1 of this subsection DOES NOT APPLY, THE GROUNDWATER REPLENISHMENT OBLIGATION FOR THAT ACTIVE MANAGEMENT AREA SHALL EQUAL THE amount determined by calculating the TOTAL OF THE CUMULATIVE PARCEL REPLENISHMENT OBLIGATION OF ALL PARCELS OF MEMBER LAND IN THAT ACTIVE MANAGEMENT AREA FOR THE PARTICULAR SHORTAGE YEAR PLUS THE CUMULATIVE SERVICE AREA REPLENISHMENT OBLIGATION OF ALL MEMBER SERVICE AREAS IN THAT ACTIVE MANAGEMENT AREA FOR THE PARTICULAR SHORTAGE YEAR and multiplying that amount by THE SHORTAGE PERCENTAGE FOR THAT SHORTAGE YEAR.
G. SUBSECTION F of this section does not MODIFY THE CALCULATIONS BY THE DISTRICT OF EXCESS GROUNDWATER, PARCEL REPLENISHMENT OBLIGATIONS OR SERVICE AREA REPLENISHMENT OBLIGATIONS FOR THAT SHORTAGE YEAR.
H. UNTIL 2028, THE DISTRICT SHALL NOT USE EXCESS CENTRAL ARIZONA PROJECT WATER TO SATISFY THE GROUNDWATER REPLENISHMENT OBLIGATION FOR AN ACTIVE MANAGEMENT AREA DURING A CALENDAR YEAR IF BOTH OF THE FOLLOWING EVENTS OCCUR:
1. Before the 2028 CALENDAR YEAR, THE UNITED STATES DEPARTMENT OF THE INTERIOR HAS ENTERED INTO A CONTRACT WITH THE DISTRICT FOR THE DELIVERY TO THE DISTRICT OF NOT LESS THAN eighteen thousand ACRE‑FEET PER year OF NON-INDIAN AGRICULTURAL PRIORITY CENTRAL ARIZONA PROJECT WATER, AS RECOMMENDED BY THE DEPARTMENT OF WATER RESOURCES TO THE UNITED STATES DEPARTMENT OF THE INTERIOR BY LETTER DATED JANUARY 16, 2014.
2. AT ANY TIME ON DECEMBER 31 OF THE IMMEDIATELY PRECEDING CALENDAR YEAR, THE WATER LEVEL OF LAKE MEAD WAS BELOW ELEVATION one thousand eighty FEET, AS REPORTED BY THE UNITED STATES BUREAU OF RECLAMATION.
I. FOR the PURPOSES OF subsection H of THIS SECTION, "EXCESS CENTRAL ARIZONA PROJECT WATER" has THE SAME MEANING AS THE TERM "EXCESS WATER" as DEFINED IN THe STIPULATED JUDGMENT AND STIPULATION FOR JUDGMENT ENTERED ON NOVEMBER 21, 2007 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA IN CENTRAL ARIZONA WATER CONSERVATION DISTRICT v. UNITED STATES, et. al. (Nos. CIV. 95-625-TUC-WDB‑EHC, civ. 95‑1720‑PHX‑EHC).
Sec. 14. Section 48-3772, Arizona Revised Statutes, is amended to read:
48-3772. Duties and powers of district regarding replenishment
A. The district shall:
1. Establish annually the costs and expenses to replenish groundwater pursuant to this article with respect to all parcels of member lands and all member service areas located in each active management area, including capital expenses, debt service expenses, the operation, maintenance, replacement and administrative costs and expenses of the district, replenishment reserve costs and expenses as provided in subsection E of this section and reasonable reserves. Separate calculations of costs and expenses shall be made for each active management area in which member lands or member service areas are located and for each membership category. Costs and expenses attributed by the district to contract replenishment obligations shall not be included in these calculations.
2. Provide for the payment of all costs and expenses to replenish groundwater pursuant to this chapter and the payment of operation, maintenance, replacement and administrative costs and expenses and debt service expenses of the district.
3. Levy an annual replenishment assessment against each parcel of member land pursuant to section 48‑3778 and an annual replenishment tax against each municipal provider that has a member service area pursuant to section 48‑3781 to pay the district's costs and expenses as established pursuant to paragraph 1 of this subsection.
4. Levy a contract replenishment tax against municipal providers that are parties to contracts authorized under subsection B, paragraph 9 of this section to pay the district's costs and expenses to replenish groundwater based on contract replenishment obligations.
5. Establish and maintain reserve accounts in amounts as may be deemed necessary to perform the district's obligations under this article.
6. Fulfill all obligations under resolutions adopted pursuant to subsection B, paragraph 10 of this section.
7. Levy an activation fee as follows:
(a) For subdivisions within member lands and member service areas that are enrolled before May 6, 2004 and that had not been issued a public report before August 12, 2005, the district shall levy a one-time activation fee against each housing unit to be constructed within the subdivision.
(b) For subdivisions within member lands and member service areas that are enrolled on or after May 6, 2004, the district shall levy a one‑time onetime activation fee against each housing unit to be constructed within the subdivision.
(c) The activation fee shall be paid to the district according to either of the following schedules, whichever the subdivider elects:
(i) Paid in full before issuance of a public report for each real estate subdivision identified in subdivision (a) or (b) of this paragraph.
(ii) One‑half paid before issuance of a public report for each real estate subdivision identified in subdivision (a) or (b) of this paragraph and the remaining amount paid no later than one year after the issuance of the public report. The total amount of the activation fee must be the amount of the activation fee in effect at the time of the initial payment. Payment of the initial one-half of the activation fee pursuant to this item constitutes sufficient payment of applicable fees for notice of intent to subdivide as prescribed in section 32‑2181, subsection C and for issuance of a public report as prescribed in section 32‑2183, subsection G and section 45‑576, subsection C, except that on failure to pay the remaining amount, the commissioner shall suspend the public report for that subdivision pursuant to section 32‑2183.
(d) The activation fee shall be established annually by the district. The amount of the activation fee to be paid to the district under subdivision (c) of this paragraph must be the amount of the activation fee in effect at the time of payment. Revenues from the activation fee together with revenues from other sources that are legally available to the district for those uses shall be used by the district to acquire, lease or exchange water or water rights and develop infrastructure necessary for the district to perform its replenishment obligations.
8. For any year, set all of its rates and charges associated with the acquisition, lease or exchange of water or water rights and development of infrastructure necessary for the district to perform its replenishment obligations, other than the annual membership dues established pursuant to section 48‑3779, so that the total projected revenues from revenue sources other than the annual membership dues, that are legally available to the district in that year to pay costs associated with the acquisition, lease or exchange of water or water rights and development of infrastructure necessary for the district to perform its replenishment obligations, shall be at least three times the total projected revenues from the annual membership dues in that year. For the purposes of this paragraph, costs associated with the acquisition, lease or exchange of water or water rights do not include the annual costs associated with delivery of water for replenishment purposes.
B. The district may:
1. Acquire, develop, construct, operate, maintain, replace and acquire permits for water storage, storage facilities and recovery wells for replenishment purposes.
2. Acquire, transport, hold, exchange, own, lease, store or replenish water, except groundwater withdrawn from an active management area, subject to the provisions of title 45, for the benefit of member lands and member service areas.
3. Acquire, hold, exchange, own, lease, retire or dispose of water rights for the benefit of member lands and member service areas.
4. Require municipal providers to provide such information, in such form and within the time limits prescribed by the district, as may be necessary to carry out the purpose of this chapter.
5. Levy and collect assessments, fees, charges, taxes and other revenues as are provided in this chapter for the financing of replenishment activities.
6. Contract for or perform feasibility studies of water storage, storage facilities and recovery wells for replenishment purposes.
7. Acquire real and personal property for water storage, storage facilities and recovery wells for replenishment purposes by purchase, lease, donation, dedication, exchange or other lawful means.
8. Use any facilities and any excess storage capacity of any state demonstration projects undertaken pursuant to title 45, chapter 3.1 for water storage for replenishment purposes.
9. Subject to subsection G of this section, contract with any municipal provider having a member service area to replenish groundwater on behalf of the municipal provider and with respect to the member service area in an amount in excess of the sum of the service area replenishment obligations applicable to the member service area for all years in which the district has not completed the replenishment of the groundwater replenishment obligation for the member service area.
10. Adopt resolutions granting water availability status to a member service area of a city, town or private water company and committing to replenish a specified average annual volume of water in a location where the city, town or private water company may physically access the water for service to its customers, if all of the following apply:
(a) The district has reviewed its requirements for transportation of central Arizona project water, its contracts, subcontracts, letter agreements, excess water contracts, and other contractual obligations and its member service area and member land requirements and has determined that the district can meet those obligations and that capacity remains in the central Arizona project to meet the obligations undertaken through the resolution.
(b) The resolution acknowledges that the commitment to replenish the specified average annual volume of water in the location cited in the resolution shall be a permanent obligation of the district, unless one of the following applies:
(i) A permanent substitute supply of water is found for the city, town or private water company and the substitution is approved by the director of water resources, thus terminating the water availability status of the member service area.
(ii) The requirements of section 45‑576.07, subsection A are not met, and thus the director of water resources does not issue an order granting or maintaining the city, town or private water company as having an assured water supply based in whole or in part on section 45‑576.07. If no order is issued within two years of the district adopting the resolution, the resolution may be repealed, and the district shall be relieved of all obligations under the resolution.
(c) The average annual volume of water specified in the resolution, when added to the average annual volume of water specified in all other resolutions adopted pursuant to this paragraph, does not exceed twenty thousand acre‑feet.
(d) The district has entered into an agreement with the city, town or private water company under which the city, town or private water company will hold for the district's future use, and provide to the district when needed, sufficient water to meet the obligations undertaken by the district through the resolution.
(e) The district determines that the obligations undertaken by the district through the resolution will not increase annual replenishment assessment rates or costs to central Arizona project contract and subcontract holders and its member service areas and member lands.
(f) The director of water resources has found, pursuant to section 45‑576.07, subsection H, that the district has the capability to grant water availability status to member service areas.
11. Provide in resolutions adopted pursuant to paragraph 10 of this subsection that the district may fulfill its obligations under the resolution in any year by directly delivering to the city, town or private water company the water that otherwise would have been replenished pursuant to the resolution, if all of the following apply:
(a) The district has reviewed its requirements for transportation of central Arizona project water, its contracts, subcontracts, letter agreements, excess water contracts, and other contractual obligations, and its member service area and member land requirements and has determined that the district can meet those obligations and that capacity remains in the central Arizona project to make direct deliveries pursuant to this paragraph.
(b) The district determines that the delivery will not increase annual replenishment assessment rates or costs to central Arizona project contract and subcontract holders, its member service area and member lands.
12. Enter into agreements with a city, town or private water company that will have water made available to it through a resolution adopted pursuant to paragraph 10 of this subsection and under which the city, town or private water company compensates the district for the costs and fair value of the water supply provided by the district.
13. Issue revenue bonds pursuant to article 3 of this chapter to fund the costs and expenses of the district for the acquisition, lease or exchange of water or water rights and the development of infrastructure necessary for the district to perform its replenishment obligations subject to the following:
(a) The principal of, interest and premiums, if any, on revenue bonds issued pursuant to article 3 of this chapter to acquire, lease or exchange water or water rights and develop infrastructure necessary for the district to perform its replenishment obligations are not payable from any revenues of the district other than revenues generated or collected pursuant to this article that are legally available to the district for those purposes and revenues from the investment of the proceeds of the bonds.
(b) The district may not use the proceeds of the bonds to acquire or lease:
(i) Groundwater, as defined in section 45‑101, except as expressly authorized in sections 45‑547, 45‑553 and 45‑554.
(ii) Surface water, as defined in section 45-101, that is the subject of a general adjudication pursuant to title 45, chapter 1, article 9.
(c) Nothing in Subdivision (b) of this paragraph prohibits does not prohibit the district from acquiring or leasing central Arizona project water.
14. Except as provided in section 48‑3780.01, subsection B, in addition to any other assessments, fees, charges or taxes levied and collected under this chapter, or under any declaration, contract or agreement entered into under this chapter, charge annual dues for membership pursuant to section 48‑3779 against each parcel of member land and each municipal provider that has a member service area.
C. The functions of the district under subsection B, paragraph 1 of this section may be performed on behalf of the district by other persons under contract with the district.
D. The capital costs of the facilities of any state demonstration projects used by the district pursuant to subsection B, paragraph 8 of this section shall not be included in the capital costs and expenses established by the district under subsection A, paragraph 1 of this section.
E. The district shall establish and maintain a replenishment reserve as follows:
1. The district shall calculate a reserve target for each of the three active management areas within the district and shall identify the reserve target in the plan of operation prepared pursuant to section 45‑576.02. The reserve target for each active management area shall be calculated as follows:
(a) Establish For each active management area, add together the projected one hundred year replenishment obligation for each active management area of the one hundred years following submission of the plan of operation. For the purposes of this subdivision, each active management area's projected one hundred year replenishment obligation does not include replenishment obligations under resolutions adopted pursuant to subsection B, paragraph 10 of this section or replenishment obligations for category 2 member lands.
(b) Subtract from the sum of the active management area's projected one hundred year replenishment obligation over the one hundred year period the sum of the following volumes of water derived from sources identified in the plan as water that the district plans to use to meet its replenishment obligations for that active management area:
(i) The annual volume of each nondeclining, long-term municipal and industrial subcontract for central Arizona project water multiplied by one hundred.
(ii) The annual volume of water under leases or contracts that can be made physically and legally available to the district consistent with the rules adopted pursuant to section 45‑576, subsection H, multiplied by the number of years, not to exceed one hundred, in which the water is to be made available to the district. The water need not be continuously available to be included in this item. A lease or contract shall not be considered under this item if the water to be made available under the lease or contract is for a term of less than twenty ten years.
(iii) The total volume of groundwater that the district plans to transport to the active management area during the next one hundred years as allowed by title 45, chapter 2, article 8.1.
(iv) The total volume of all sources of water not identified in items (i), (ii) or (iii) of this subdivision that will not be held by the district under a lease or contract. Volumes to be included under this item must be consistent with the rules adopted by the director pursuant to section 45‑576, subsection H.
(c) Multiply the result from subdivision (b) of this paragraph by twenty per cent percent. The result is the reserve target for the active management area.
2. The reserve target for an active management area may be adjusted by the district, subject to the approval of the director of water resources, based on changes in either of the following:
(a) The active management area's projected one hundred year replenishment obligation.
(b) The volumes of water identified in the plan of operation prepared pursuant to section 45‑576.02 as water that the district plans to use to meet its replenishment obligations for that active management area.
3. The district shall include a replenishment reserve charge in the annual replenishment assessment levied against all parcels of category 1 member land as provided in section 48‑3774.01 and in the annual replenishment tax levied against all municipal providers that have member service areas as provided in section 48‑3780.01. The replenishment reserve charge for each active management area is established annually by the district based on the reserve target for that active management area.
4. The district shall levy a replenishment reserve fee against category 1 member lands pursuant to section 48‑3774.01 and against member service areas pursuant to section 48‑3780.01. For category 1 member lands the fee is equal to twice the applicable replenishment reserve charge multiplied by the total projected average annual replenishment obligation for the member lands as reported by the director of water resources pursuant to section 45‑578, subsection F. For member service areas the fee is equal to twice the applicable replenishment reserve charge multiplied by the excess groundwater increment. With the approval of the district and the director of water resources, long‑term storage credits as defined in section 45‑802.01 may be assigned to the district's replenishment reserve subaccount in lieu of paying the replenishment reserve fee.
5. The district shall use replenishment reserve charges and replenishment reserve fees collected within each active management area together with all interest earned on the charges and fees to store water in that active management area in advance of groundwater replenishment obligations for the purpose of developing long‑term storage credits as defined in section 45‑802.01 that shall be credited to the replenishment reserve subaccount for that active management area as provided in section 45‑859.01.
6. Beginning on January 1, 2030 or earlier, on approval of the director of water resources pursuant to section 45‑859.01, subsection K, the district may transfer credits from a replenishment reserve subaccount to a conservation district account as provided in section 45‑859.01, subsection F to satisfy its groundwater replenishment obligations. Before JANUARY 1, 2030, THE DISTRICT MAY TRANSFER CREDITS FROM A REPLENISHMENT RESERVE SUBACCOUNT TO A CONSERVATION DISTRICT ACCOUNT AS PROVIDED IN SECTION 45-859.01, SUBSECTION E TO SATISFY ITS GROUNDWATER REPLENISHMENT OBLIGATIONS. ANY OTHER TRANSFER OF CREDITS BY THE DISTRICT before JANUARY 1, 2030 REQUIREs THE APPROVAL OF THE DIRECTOR OF WATER RESOURCES PURSUANT TO SECTION 45-859.01, SUBSECTION L.
7. If the district transfers credits from the replenishment reserve subaccount for an active management area pursuant to section 45‑859.01, subsection E F, the district shall include in the annual replenishment assessment levied against all parcels of category 1 member land in that active management area and, except as provided in section 48‑3780.01, subsection B, in the annual replenishment tax levied against all municipal providers that have member service areas in that active management area a reserve replacement component to fund the replacement of the transferred credits in amounts necessary to meet the then-applicable reserve TARGET for that active management area. The district shall use all monies from the reserve replacement component collected within an active management area together with all interest earned on the monies to develop long‑term storage credits as defined in section 45‑802.01 within that active management area to be credited to the replenishment reserve subaccount for that active management area as provided in section 45‑859.01.
8. For the purposes of establishing and maintaining the replenishment reserve, the district shall have access to excess central Arizona project water equivalent to but no not more than the access the Arizona water banking authority has for the purposes specified in section 45‑2401, subsection H, paragraph 2.
F. Groundwater replenished by the district pursuant to a contract to replenish groundwater under subsection B, paragraph 9 of this section shall not be credited to a replenishment reserve subaccount established under section 45‑859.01.
G. The district shall not enter into a contract authorized under subsection B, paragraph 9 of this section unless the district has determined that the contract will not adversely affect the district's ability to fulfill its obligations under this chapter. For each contract entered into under subsection B, paragraph 9 of this section, the district shall perform its contract replenishment obligations in the active management area in which the service area of the municipal provider that is the party to the contract is located.
H. If the district replenishes groundwater on behalf of a municipal provider pursuant to a contract to replenish groundwater under subsection B, paragraph 9 of this section, the amount of groundwater so replenished shall be a replenishment credit to the municipal provider that may be applied by the municipal provider on notice to the district to reduce the service area replenishment obligations applicable to the municipal provider.
I. In the Phoenix active management area, the district, to the extent reasonably feasible, shall replenish groundwater in the east portion of the active management area and in the west portion of the active management area in the approximate proportion that the groundwater replenishment obligation attributable in a particular year to member lands and member service areas located in the east portion of the active management area bears to the groundwater replenishment obligation attributable in that year to member lands and member service areas located in the west portion of the active management area. For the purposes of this subsection, the boundary between the east Salt river valley subbasin and the west Salt river valley subbasin is the boundary between the east and west portions of the active management area.
J. The costs and expenses charged by the district to an active management area water district established under chapter 28 of this title for delivery of surplus central Arizona project water to such active management area water district for replenishment purposes shall not exceed the costs and expenses for delivery of such water that are or would be included by the district in the costs and expenses of replenishment for member lands and member service areas within the active management area in which such active management area water district is situated.
Sec. 15. Section 48-3781, Arizona Revised Statutes, is amended to read:
48-3781. Annual replenishment tax; contract replenishment tax
A. On or before the third Monday of August of each year after the qualification of the member service area of any municipal provider, the district shall levy a replenishment tax against each municipal provider having a qualified member service area for the privilege of withdrawing and delivering excess groundwater within the member service area. The replenishment tax shall be calculated by the district in accordance with this article and shall be sufficient to produce the amount of money estimated as needed to pay the costs and expenses to replenish groundwater established under section 48‑3772, subsection A, and taking into account any annual replenishment assessment levied under section 48‑3778.
B. The district shall promptly transmit a statement to each municipal provider having a member service area stating the amount of the annual replenishment tax and any replenishment reserve fee due under section 48‑3780.01.
C. On or before the third Monday of August of each year after the district enters into any contract to replenish water pursuant to section 48‑3772, subsection B, paragraph 9, the district shall levy a tax against each municipal provider that is a party to a contract to replenish groundwater at the assessment rate provided in the applicable contract. The district shall promptly transmit a statement to each municipal provider that is a party to a contract to replenish groundwater stating the amount of the replenishment tax due under the contract.
D. On or before October 15 of each year, each municipal provider that has a member service area shall pay to the district an amount equal to the annual replenishment tax levied by the district and any replenishment reserve fee due under section 48‑3780.01.
E. On or before October 15 of each year, each municipal provider that is a party to a contract to replenish groundwater under section 48‑3772, subsection B, paragraph 9 shall pay to the district the contract replenishment tax levied by the district pursuant to the contract.
F. Annual replenishment taxes and contract replenishment taxes collected by the district shall be deposited, pursuant to sections 35‑146 and 35‑147, in the special fund established pursuant to section 48‑3773, subsection A, paragraph 3 and shall be expended by the district only for the purposes authorized by this article.
G. If a municipal provider is delinquent for more than ninety days in the payment of its replenishment tax, the district shall promptly notify the director of water resources of the delinquency. Except as provided in subsection H of this section, for any municipal provider that is delinquent for more than ninety days in the payment of its replenishment tax, the district shall complete the replenishment of the service area replenishment obligation. The district shall complete that obligation within three five full calendar years after the year that the district is paid an amount equal to the delinquent replenishment tax, plus interest calculated in accordance with section 48‑3782, subsection A, or within ten full calendar years after the year that the district incurs the service area replenishment obligation, whichever is sooner.
H. The district is not required to complete the replenishment of the service area obligation of a municipal provider that is delinquent for more than ninety days in the payment of its replenishment tax if both of the following apply:
1. The district is not paid an amount equal to the delinquent replenishment tax, plus interest calculated in accordance with section 48‑3782, subsection A, within ten full calendar years after the year that the district incurs the service area replenishment obligation.
2. The municipal provider or its successor has violated section 45‑492, subsection D or section 45‑493, subsection D and the director of water resources has not commenced an enforcement action against the municipal provider or its successor for the violation within ten full calendar years after the year that the district incurs the service area replenishment obligation.
Sec. 16. Declaration of policy
A. The legislature finds that the Groundwater Management Act of 1980, Laws 1980, fourth special session, chapter 1, as amended, and state water policies encouraging the use of surface water, central Arizona project water and reclaimed wastewater have protected the groundwater basins and sub-basins within the active management areas of this state, thereby improving and enhancing the economy and welfare of the active management areas and of the state as a whole.
B. The legislature finds that the groundwater replenishment authority and the obligation granted to and imposed on the Central Arizona Water Conservation District in 1993 in Laws 1993, chapter 200, section 19, as amended, commonly referred to as the central Arizona groundwater replenishment district or CAGRD, has ensured that economic development projects with access to groundwater supplies may use those groundwater supplies in a manner consistent with the assured water supply program of the Groundwater Management Act of 1980, as amended. The legislature recognizes that ad valorem property taxes are levied against all private lands within Maricopa, Pinal and Pima counties to pay the costs and expenses of the central Arizona project canal, and further finds that the CAGRD increases the value, utility and benefits of the central Arizona project by providing replenishment services to large areas of Maricopa, Pinal and Pima counties that do not otherwise directly receive central Arizona project water.
C. The legislature further recognizes that, since CAGRD's first year of operation in 1995, over three hundred fifty thousand homes have been built within Maricopa, Pinal and Pima counties through membership in the CAGRD, that economic development within regions served by the CAGRD have resulted in over $20,000,000,000 in state and local tax revenues over the last twenty‑two years and that, without the CAGRD, much of this economic development would not have occurred. Accordingly, the legislature finds that the CAGRD has been and remains critical to economic development within the three-county area and has provided and continues to provide economic benefit to the state as a whole.
D. The legislature further finds that the acquisition of a variety of water supplies by the CAGRD, including supplies from the Colorado River, is crucial for the continued success of the CAGRD.
E. In enacting this act, the legislature declares that it is the policy of this state to support the activities of the CAGRD in providing replenishment services within the three-county area and in acquiring a variety of water supplies, including supplies from the Colorado River, for that purpose, and further declares that such policy is in the best interest of the general economy and welfare of this state and its citizens.
Sec. 17. Effective date
Section 45-802.01, Arizona Revised Statutes, as amended by Laws 2013, chapter 168, section 4 and this act, is effective from and after December 31, 2024.
