Bill Text: AZ HB2857 | 2024 | Fifty-sixth Legislature 2nd Regular | Introduced
Bill Title: Rural groundwater management
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-02-12 - House read second time [HB2857 Detail]
Download: Arizona-2024-HB2857-Introduced.html
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REFERENCE TITLE: rural groundwater management |
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State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024
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HB 2857 |
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Introduced by Representative Mathis: Senator Sundareshan
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An Act
amending section 45-105, Arizona Revised Statutes; amending title 45, chapter 2, Arizona Revised Statutes, by adding article 2.1; amending title 45, chapter 2, article 4, Arizona Revised Statutes, by adding section 45-451.01; amending sections 45-453, 45-598, 45-604, 45-632, 45-2602 and 49-1304, Arizona Revised Statutes; relating to the groundwater code.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 45-105, Arizona Revised Statutes, is amended to read:
45-105. Powers and duties of director
A. The director may:
1. Formulate plans and develop programs for the practical and economical development, management, conservation and use of surface water, groundwater and the watersheds in this state, including the management of water quantity and quality.
2. Investigate works, plans or proposals pertaining to surface water and groundwater, including management of watersheds, and acquire, preserve, publish and disseminate related information the director deems advisable.
3. Collect and investigate information on and prepare and devise means and plans for the development, conservation and use of all waterways, watersheds, surface water, groundwater and groundwater basins in this state and of all related matters and subjects, including irrigation, drainage, water quality maintenance, regulation of flow, diversion of running streams adapted for development in cooperating with the United States or by this state independently, flood control, use of water power, prevention of soil waste and storage, conservation and development of water for every useful purpose.
4. Measure, survey and investigate the water resources of this state and their potential development and cooperate and contract with agencies of the United States for such purposes.
5. Acquire, hold and dispose of property, including land, rights-of-way, water and water rights, as necessary or convenient for the performance of the groundwater and water quality management functions of the department.
6. Acquire, other than by condemnation, construct, improve, maintain and operate early warning systems for flood control purposes and works for the recovery, storage, treatment and delivery of water.
7. Accept grants, gifts or donations of money or other property from any source, which may be used for any purpose consistent with this title. All property acquired by the director is public property and is subject to the same tax exemptions, rights and privileges granted to municipalities, public agencies and other public entities.
8. Enter into an interagency contract or agreement with any public agency pursuant to title 11, chapter 7, article 3 and contract, act jointly or cooperate with any person to carry out the purposes of this title.
9. Prosecute and defend all rights, claims and privileges of this state respecting interstate streams.
10. Initiate and participate in conferences, conventions or hearings, including congressional hearings, court hearings or hearings of other competent judicial or quasi-judicial departments, agencies or organizations, and negotiate and cooperate with agencies of the United States or of any state or government and represent this state concerning matters within the department's jurisdiction.
11. Apply for and hold permits and licenses from the United States or any agency of the United States for reservoirs, dam sites and rights-of-way.
12. Receive and review all reports, proposed contracts and agreements from and with the United States or any agencies, other states or governments or their representatives and recommend to the governor and the legislature action to be taken on such reports, proposed contracts and agreements. The director shall take action on such reports, if authorized by law, and review and coordinate the preparation of formal comments of this state on both the preliminary and final reports relating to water resource development of the United States army corps of engineers, the United States secretary of the interior and the United States secretary of agriculture, as provided for in the flood control act of 1944 (58 Stat. 887; 33 United States Code section 701-1).
13. Contract with any person for imported water or for the acquisition of water rights or rights to withdraw, divert or use surface water or groundwater as necessary for the performance of the groundwater management functions of the director prescribed by chapter 2 of this title. If water becomes available under any contract executed under this paragraph, the director may contract with any person for its delivery or exchange for any other water available.
14. Recommend to the administrative heads of agencies, boards and commissions of this state, and political subdivisions of this state, rules to promote and protect the rights and interests of this state and its inhabitants in any matter relating to the surface water and groundwater in this state.
15. Conduct feasibility studies and remedial investigations relating to groundwater quality and enter into contracts and cooperative agreements under section 104 of the comprehensive environmental response, compensation, and liability act of 1980 (P.L. 96-510) to conduct such studies and investigations.
16. Dispose informally by stipulation, agreed settlement, consent order or alternative means of dispute resolution, including arbitration, if the parties and director agree, or by default of any case in which a hearing before the director is required or allowed by law.
17. Cooperate and coordinate with the appropriate governmental entities in Mexico regarding water planning in areas near the border between Mexico and Arizona and for the exchange of relevant hydrological information.
B. The director shall:
1. Exercise and perform all powers and duties vested in or imposed on the department and adopt and issue rules necessary to carry out the purposes of this title.
2. Administer all laws relating to groundwater, as provided in this title.
3. Be responsible for the supervision and control of reservoirs and dams of this state and, when deemed necessary, conduct investigations to determine whether the existing or anticipated condition of any dam or reservoir in this state is or may become a menace to life and property.
4. Coordinate and confer with and may contract with:
(a) The Arizona power authority, the game and fish commission, the state land department, the Arizona outdoor recreation coordinating commission, the Arizona commerce authority, the department of health services, active management area water authorities or districts and political subdivisions of this state with respect to matters within their jurisdiction relating to surface water and groundwater and the development of state water plans.
(b) The department of environmental quality with respect to title 49, chapter 2 for its assistance in the development of state water plans.
(c) The department of environmental quality regarding water plans, water resource planning, water management, wells, water rights and permits, and other appropriate provisions of this title pertaining to remedial investigations, feasibility studies, site prioritization, selection of remedies and implementation of the water quality assurance revolving fund program pursuant to title 49, chapter 2, article 5.
(d) The department of environmental quality regarding coordination of databases that are necessary for activities conducted pursuant to title 49, chapter 2, article 5.
5. Cooperate with the Arizona power authority in the performance of the duties and functions of the authority.
6. Maintain a permanent public depository for existing and future records of stream flow, groundwater levels and water quality and other data relating to surface water and groundwater.
7. Maintain a public docket of all matters before the department that may be subject to judicial review pursuant to this title.
8. Investigate and take appropriate action on any complaints alleging withdrawals, diversions, impoundments or uses of surface water or groundwater that may violate this title or the rules adopted pursuant to this title.
9. Adopt an official seal for the authentication of records, orders, rules and other official documents and actions.
10. Provide staff support to the Arizona water protection fund commission established by chapter 12 of this title.
11. Exercise and perform all powers and duties invested in the chairperson of the Arizona water banking authority commission as prescribed by chapter 14 of this title.
12. Provide staff support to the Arizona water banking authority established by chapter 14 of this title.
13. In performing the director's duties pursuant to chapter 2, article 2.1 of this title, coordinate and confer with federally recognized Indian tribes that have reservation land located within the boundaries of a rural groundwater management area.
13. 14. In the year following each regular general election, present information to the committees with jurisdiction over water issues in the house of representatives and the senate. A written report is not required but the presentation shall include information concerning the following:
(a) The current status of the water supply in this state and any likely changes in that status.
(b) Issues of regional and local drought effects, short-term and long-term drought management efforts and the adequacy of drought preparation throughout the state.
(c) The status of current water conservation programs in this state.
(d) The current state of each active management area and the level of progress toward management goals in each active management area.
(e) Issues affecting management of the Colorado river and the reliability of this state's two million eight hundred thousand acre-foot allocation of Colorado river water, including the status of water supplies in and issues related to the Colorado river basin states and Mexico.
(f) The status of any pending or likely litigation regarding surface water adjudications or other water-related litigation and the potential impacts on this state's water supplies.
(g) The status of Indian water rights settlements and related negotiations that affect this state.
(h) Other matters related to the reliability of this state's water supplies, the responsibilities of the department and the adequacy of the department's and other entities' resources to meet this state's water management needs.
14. 15. Not later than December 1, 2023 and on or before December 1 of each year thereafter, prepare and issue a water supply and demand assessment for at least six of the fifty-one groundwater basins established pursuant to section 45-403. The director shall ensure that a water supply and demand assessment is completed for all groundwater basins and initial active management areas at least once every five years. The director may contract with outside entities to perform some or all of the assessments and those outside entities shall be identified in the assessment.
Sec. 2. Title 45, chapter 2, Arizona Revised Statutes, is amended by adding article 2.1, to read:
ARTICLE 2.1. RURAL GROUNDWATER MANAGEMENT AREAS
45-429. Rural groundwater management areas; director; powers; local initiation; hearing
A. The director may designate an area that is not included within an active management area as a rural groundwater management area if the director determines that one or more of the following applies:
1. Management practices are needed to manage the existing groundwater supply for future or current needs.
2. Land subsidence or fissuring is endangering property or potential groundwater storage.
3. Groundwater use is resulting in actual or threatened water quality degradation.
B. The designation of a rural groundwater management area may be initiated by petition to the director signed by either:
1. The majority of a county board of supervisors with lands that are located within the boundaries of the proposed rural groundwater management area specified in the petition. Any county board of supervisors that applies for a designation shall include with the application for designation a resolution passed by the board, including a statement that the designation of a rural groundwater management area will serve the public interest.
2. Ten percent of the registered voters residing within the proposed rural groundwater management area specified in the petition as of the most recent report compiled by the county recorder in compliance with section 16-168, subsection H. The form of the petition shall be the same as for an initiative petition and the applicant for such petition shall comply with the provisions of section 19-111. If the proposed rural groundwater management area is located in two or more counties, the number of registered voters required to sign the petition shall be ten percent of the registered voters residing within the boundaries of the proposed rural groundwater management area, as of the most recent report compiled by the county recorder in compliance with section 16-168, subsection H, within the county in which the plurality of the registered voters in the groundwater basin or subbasin resides.
C. After receiving a petition signed by registered voters pursuant to subsection B, paragraph 2 of this section, the director shall transmit the petition to the county recorder of each county in which the proposed rural groundwater management area is located for verification of signatures. In addition, the director shall transmit a map of the proposed rural groundwater management area to the county recorder of each county included. The map shall be on a scale adequate to show with substantial accuracy where the boundaries of the proposed rural groundwater management area cross the boundaries of county voting precincts. The director shall also transmit to the county recorder all other factual data concerning the boundaries of the proposed rural groundwater management area that may aid the county recorder in determining which registered voters of the county are residents of the proposed rural groundwater management area.
D. If the director finds that the proposed rural groundwater management area meets the criteria prescribed in subsection A of this section or a petition is filed and verified pursuant to this section, the director shall hold a public hearing to receive public comment on the following:
1. Whether to issue an order that declares the rural groundwater management area established.
2. The boundaries of the proposed rural groundwater management area, which shall be coterminous with the boundaries of a groundwater basin or subbasin, except that in the regional aquifer system of northern Arizona the boundaries may be smaller than a subbasin if based on reasonable hydrology or water management considerations.
E. The director shall give reasonable notice of the hearing. The director shall publish the notice once each week for two consecutive weeks in a newspaper of general circulation in each county in which the proposed rural groundwater management area is located. The notice shall contain the following:
1. The time and place of the hearing.
2. The legal description and a map clearly identifying the proposed rural groundwater management area.
3. Any other information the director deems necessary.
F. The public hearing shall be held at a location in the proposed rural groundwater management area not less than thirty but not more than sixty days after the notice of the hearing. The director shall present factual data in the department's possession in support of or opposition to the proposed action. Any person may appear at the hearing, either in person or by representative, and submit oral or documentary evidence for or against the proposal. In making a determination, the director shall consider the comments of the public and of the local political subdivisions.
G. Within thirty days after the hearing, the director shall make and file with the department written findings of the matters considered at the public meeting. If the director decides to declare the rural groundwater management area established, the director shall make and file an order designating the area as a rural groundwater management area. The findings and order shall be published in the same manner as a notice of hearing prescribed in subsection E of this section. On final notice, the order shall be effective and the director shall file a true copy of the map in the county recorder's office or offices where the rural groundwater management area is located. All factual data, the map of the rural groundwater management area, hearing records and public comments are a public record and shall be made available for public examination during regular business hours. The findings and order are subject to judicial review as provided in 45-114, subsection B.
45-429.01. Rural groundwater management areas; designation review
On or before the tenth anniversary of the designation of the rural groundwater management area and every ten years thereafter, the director shall review and make a determination if the criteria for establishing a rural groundwater management area still apply. If the director determines the criteria no longer apply, the director may do either of the following:
1. Rescind the designation as a rural groundwater management area and comply with the same notice and hearing requirements prescribed by section 45-429.09.
2. Direct the rural groundwater management area council to develop a management plan for the maintenance of the improved conditions.
45-429.02. Limitation on new groundwater uses and number or irrigated acres
A. If the procedure to designate a rural groundwater management area is initiated by the director or by petition pursuant to section 45-429, the following apply:
1. A person who withdraws groundwater from a nonexempt well for non-irrigation use may use only groundwater in approximately the same amount and location that was legally used at any time during the ten years preceding the date of the notice of the initiation of designation procedures.
2. A person who withdraws groundwater from a nonexempt well for irrigation use may irrigate within the proposed rural groundwater management area only those acres of land that were legally irrigated at any time during the ten years preceding the date of the notice of the initiation of designation procedures.
B. The limitation on new groundwater uses and on the acres that may be irrigated remains in effect until the director makes a final determination to approve a rural groundwater management area plan.
C. The director may grant a variance to a groundwater user subject to the moratorium on expanded groundwater use and number of acres irrigated on a finding by the director that a variance is necessary to protect public health or safety. If granted, the variance shall specify the amount of groundwater that may be withdrawn by the person during the variance period, which shall be the time from when a notice of initiation of designation is filed to when a rural groundwater management area plan is adopted.
45-429.03. Certificate of groundwater use
A. A person who was legally withdrawing and using groundwater from a nonexempt well as of the date of designation of a rural groundwater management area has the right to withdraw or receive and use groundwater as determined by the director pursuant to this article. The right to withdraw or receive and use groundwater pursuant to this article is a certificate of groundwater use. A certificate of groundwater use shall remain subject to any conservation requirements adopted pursuant to a rural groundwater management area plan approved by the director.
B. Within fifteen months after the designation of a rural groundwater management area, a person who owns or leases property from which groundwater may have been legally withdrawn in the preceding ten years may apply to the director for a certificate of groundwater use and provide verification of the average amount of groundwater withdrawn in the preceding ten years. The director may accept either of the following methods as proper verification:
1. Data from a water measuring method approved by the director, including meter readings from a water measuring device approved by the director.
2. A calculation of the average amount of water required to irrigate the crops historically grown in the farm unit based on the total irrigation requirement per acre of the historic crops and a reasonable irrigation efficiency for the farm unit after factoring in the historic conditions and infrastructure.
C. A person who used groundwater in the rural groundwater management area for less than twelve months immediately preceding the date of the designation of the rural groundwater management area may receive a certificate of groundwater use consistent with the director's determination of the reasonable amount of groundwater expected to be used in a twelve-month period based on the person's facility, service area or lands as of the date of designation.
D. The director shall factor a person's substantial capital investment in the amount of groundwater granted under a certificate of groundwater use as follows:
1. For a person withdrawing groundwater from a nonexempt well for non-irrigation use, a volume of groundwater expected for new non-irrigation water use from a construction project that substantially commenced within the ten years preceding the petition to initiate designation.
2. For a person withdrawing groundwater from a nonexempt well for irrigation use, a volume of groundwater expected from the subjugation of land for a new irrigation water use, including on-site irrigation distribution facilities or wells, the drilling and construction of which substantially commenced within the ten years preceding the petition to initiate designation.
E. A person who does not file an application for a certificate of groundwater use with the department within fifteen months after the designation of the rural groundwater management area waives and relinquishes any right to withdraw, receive or use groundwater pursuant to this article.
F. The director shall review and evaluate any application submitted pursuant to this section. The director may request additional information and conduct an independent investigation to determine the amount of groundwater granted to a person under a certificate of groundwater use pursuant to this section.
G. A person who is issued a certificate of groundwater use pursuant to this section may sell, assign or lease the entirety or any portion of the person's groundwater granted under the certificate to another person within the same rural groundwater management area for any new or existing use subject to any conservation or other requirements adopted pursuant to a rural groundwater management area plan. Any portion of a certificate of groundwater use that a person conveys to another person shall be reduced by fifteen percent on each conveyance.
H. A person who holds a certificate of groundwater use, whether through issuance, sale, assignment, lease or other conveyance, may withdraw, receive or use groundwater on the person's property or any other property in the rural groundwater management area as long as the use is consistent with any conservation or other requirements adopted by a rural groundwater management area council if the groundwater use does not exceed the volume of water granted to a person pursuant to a valid certificate of groundwater use.
I. A person shall maintain property from which a certificate of groundwater use is originally granted free of noxious weeds as defined in section 3-201, Russian thistles and blowing dust that create a threat to health and safety.
45-429.04. Registry of applications; objection; hearing; issuance; appeals
A. The director shall establish a registry of all applications received for a certificate of groundwater use. After the deadline for an application for certificate of groundwater use has passed, the director shall notify all applicants that the registry is available in the offices of the department for public inspection during regular business hours.
B. Within ninety days after the date of notice required by subsection A of this section, any person who resides in the rural groundwater management area may file a written objection to any application for a certificate of groundwater use. A person may file an objection only on the basis that information submitted in an application is incorrect or insufficient to issue a certificate of groundwater use.
C. In appropriate cases, including cases where a person has filed a proper written objection, the director may hold a hearing in which a person may challenge the director's determination on an application for a certificate of groundwater use. Thirty days before any administrative hearing is held pursuant to this section, the director shall provide notice to the applicant and any person who filed a proper written objection to the application. A hearing held pursuant to this section shall be scheduled not less than sixty and not more than ninety days after the expiration of time to file objections.
D. The director shall issue a final decision to an applicant for a certificate of groundwater use. A person who contests a certificate of groundwater use by filing a proper objection pursuant to this section may seek judicial review of the final decision pursuant to section 45-114, subsection B in superior court.
45-429.05. Rural groundwater management area council; membership; appointment; establishment
A. A rural groundwater management area council shall be established in each rural groundwater management area. The council shall be composed of seven members who are knowledgeable of the condition, development and use of groundwater within the rural groundwater management area. Council members shall be representative of all the major groundwater users in the rural groundwater management area such as agricultural, municipal and industrial users.
B. The governor shall appoint council members as follows:
1. One member from a list of three names submitted by The president of the senate.
2. One member from a list of three names submitted by the speaker of the house of representatives.
3. One member from a list of three names submitted by the minority leader of the senate.
4. One member from a list of three names submitted by the minority leader of the house of representatives.
5. Three members selected directly by the governor.
C. At least six members of the council must reside in the rural groundwater management area.
D. Before a COUNCIL member is appointed or RECOMMENDED to a rural groundwater management area council pursuant to subsection B of this section, INTERESTED parties, including a city, town, county or political subdivision of this state, an indian tribe, a conservation district, a private water company, an irrigation district or state legislators with experience in groundwater use and management within the rural groundwater management area, may submit a list of prospective members to the director. The director shall forward all LISTs to the governor aND all persons who MAY RECOMMEND APPOINTMENTS PURSUANT to this section. LEGISLATIVE LEADERSHIP and the governor may only appoint or RECOMMEND persons WHOSE NAMES ARE on one or more of the LISTS forwarded by the director PURSUANT TO THIS SUBSECTION.
e. The initial members shall assign themselves by lots to terms of three and five years in office. All subsequent members serve five-year terms. The chairperson shall notify all appointing authorities of these terms. A council member may be removed only for cause by the appointing authority.
F. Council members serve without compensation but are eligible to receive reimbursement of expenses pursuant to title 38, chapter 4, article 2.
45-429.06. Rural groundwater management area council; powers and duties
A. The rural groundwater management area council shall:
1. Adopt and submit to the director for approval one or more management goals for the rural groundwater management area.
2. Develop a management plan that includes water management practices and other possible actions to address the groundwater conditions identified as the reason for the designation of a rural groundwater management area and to achieve the management goals adopted for the rural groundwater management area.
3. Cooperate with federally recognized Indian tribes, cities, towns and counties or other public or private agencies or organizations to engage in coordinated regional water resources planning.
4. Keep minutes of all meetings and preserve all records, reports, and other information relative to the work and programs of the council in a permanent, indexed and systematically filed form that is available to public inspection during regular business hours.
5. Elect a chairperson and a vice chairperson from the council membership who serve two-year terms expiring on the third Monday of each even numbered year.
6. Designate a person or persons to execute all documents and instruments on behalf of the council.
7. Form a technical committee to provide technical support to the council. The technical committee shall include at least one representative from the department and may include members of the council or members of the public who are selected by the council.
B. The rural groundwater management area council may:
1. Request technical assistance from the department to develop a management plan for the rural groundwater management area.
2. Gather information and data.
3. Establish a steering committee, advisory committee or other similar structure to solicit and receive public participation, comment and advice from residents of the rural groundwater management area and other interested parties on the development and operation of the rural groundwater management area and management plan.
45-429.07. Rural groundwater management area goals
A. Within ninety days after the designation of a rural groundwater management area, the rural groundwater management area council shall adopt one or more goals for the rural groundwater management area and shall submit the goals to the director for approval.
B. The council shall consider the stated reasons for designation as prescribed in section 45-429 when adopting any management goal. The management goals may include:
1. Achieving safe-yield as defined in section 45-561.
2. Controlling, reducing or mitigating land subsidence.
3. Controlling, reducing or mitigating water quality degradation.
4. Reducing the rate of or preventing long declines in groundwater levels.
45-429.08. Rural groundwater management area plan; notice
A. WITHIN two years after the DESIGNATION of a RURAL GROUNDWATER MANAGEMENT AREA, the COUNCIL SHALL DEVELOP and SUBMIT to the director for approval A RURAL GROUNDWATER MANAGEMENT AREA PLAN THAT INCLUDEs GROUNDWATER PROGRAMS AND POLICIES the department must IMPLEMENT TO ADVANCE AND ACHIEVE THE SELECTED RURAL groundwater MANAGEMENT area goal.
B. WITHIN two years after the DESIGNATION of a RURAL GROUNDWATER MANAGEMENT AREA, the COUNCIL SHALL DEVELOP and SUBMIT to the APPROPRIATE city, town, county, irrigation DISTRICT, private water company and other GOVERNMENTAL entities, INCLUDING MUNICIPAL CORPORATIONS subject to the JURISDICTION of this state, any PROPOSED actions the entities should take to IMPLEMENT a RURAL GROUNDWATER MANAGEMENT AREA PLAN.
C. A rural groundwater management area plan shall include:
1. A DESCRIPTION of the APPROPRIATE PHYSICAL and ECONOMIC conditions of the area and how the MANAGEMENT goal relates to those CONDITIONs.
2. a summary of current groundwater management in the area, including GROUNDWATER conservation programs adopted by federally RECOGNIZED INDIAN tribes, federal and state AGENCIES and local GOVERNMENTS, including MUNICIPAL general plans and county comprehensive PLANS and THE current GROUNDWATER CONDITIONs.
3. Methods to MONITOR and report on the progress of ACHIEVING the management goals.
4. a requirement to measure and annually report the groundwater use of nonexempt wells in the rural GROUNDWATER MANAGEMENT area.
5. Water CONSERVATION programs for groundwater users served by nonexempt wells, including a water conservation program as PRESCRIBED by section 45-429.10.
6. Requirements for the location of new and replacement wells within a rural groundwater management area.
7. For the first rural groundwater management area plan only, a requirement that total groundwater withdrawals in a rural groundwater management area be reduced by ten percent within ten years after the designation of a rural groundwater MANAGEMENT area. For each subsequent management plan, the plan shall include an area-wide conservation requirement as determined by a rural groundwater management area council.
D. A rural groundwater management area plan may include:
1. a program to approve VOLUNTARY compensated land and WATER CONSERVATION plans with actions that LANDOWNERS AND WATER users in the rural groundwater management area MAY PARTICIPATE in to conserve or augment groundwater supplies WITHIN the rural GROUNDWATER MANAGEMENT area. These programs may include:
(a) SHORT-term OR LONG-TERM VOLUNTARY land use or water use agreements with landowners or water users.
(b) INCENTIVES for Stormwater RETENTION and recharge.
(c) Low-water use DEVELOPMENTS.
(d) INCENTIVES for low-water use practices, fixtures or landscaping THAT reduces RESIDENTIAL or COMMERCIAL use.
(e) INCENTIVES for irrigation EFFICIENCY and conservation.
2. Other groundwater protection or programs the DIRECTOR may adopt in COORDINATION with the rural groundwater management area council.
3. Actions RECOMMENDED by the council for cities, towns, counties, irrigation DISTRICTS or private water companies or other GOVERNMENTAL ENTITIES, INCLUDING MUNICIPAL CORPORATIONS subject to the JURISDICTION of this state, to adopt through an INTERGOVERNMENTAL agreement or contract. The COUNCIL may recommend:
(a) That a county or MUNICIPAL government LOCATED within the rural groundwater MANAGEMENT area adopt INCENTIVES or POLICIES to require water conservation and protection of water RESOURCES consistent with the MANAGEMENT GOALS.
(b) That a water UTILITy LOCATED within the rural groundwater MANAGEMENT area adopt INCENTIVES or POLICIES to require water conservation and protection of water RESOURCES consistent with the MANAGEMENT GOALS.
(c) a plan for recharge, storage and RECOVERY to improve aquifer RECHARGE as prescribed in chapter 3.1 of this title, including a recommendation that the county and MUNICIPAL GOVERNMENT construct and operate relevant INFRASTRUCTURE.
4. Notwithstanding sections 9-463.01 and 11-823, a requirement that a city, town or county not approve a final plat for a subdivision that is composed of subdivided lands as defined in section 32-2101 located in a rural groundwater management area unless the director has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 and the subdivider has included the report with the plat.
5. Any other actions the council deems appropriate to achieve the rural groundwater management area goals in coordination with the director and other necessary governmental ENTITIES.
E. A rural groundwater management area council shall provide NOTICE to the public of how a person can PARTICIPATE in the ACTIVITIES of the COUNCIL and shall hold any COUNCIL meetings that address the adoption or consideration of a MANAGEMENT plan PURSUANT to title 38, chapter 3, article 3.1.
F. If a rural GROUNDWATER MANAGEMENT area council does not adopt a MANAGEMENT goal and plan within two years after the DESIGNATION of the rural groundwater management area, the director SHALL DEVELOP goals AND A management PLAN for the area consistent with this article.
45-429.09. Rural groundwater management area goals, plan and actions; approval; hearings; notice
A. The rural groundwater management area council shall submit the final rural groundwater management area goals to the director for approval within ninety days after the date of the designation of the rural groundwater management area and shall submit the plan, including any proposed actions in the plan to be implemented by the department, to the director for approval within two years after the date of the designation of the rural groundwater management area.
B. The rural groundwater management area council shall submit to the appropriate cities, towns, counties, irrigation districts or private water companies or other governmental entities, political subdivisions or municipal corporations any proposed actions in the management plan that are recommended for implementation by those entities in the rural groundwater management area.
C. The director shall hold a public hearing on receipt of:
1. The final rural groundwater management area goals, to approve those goals.
2. The final management plan and any recommended actions contained in the management plan, to approve the management plan and the recommended actions before implementing the management plan and actions.
D. The director shall provide notice of the public hearings prescribed by this section within thirty days after receiving the council's final submissions.
E. The director shall publish the notice for the public to approve the management goals on the department's website and in a newspaper of general circulation in each county in which the rural groundwater management area is located once each week for two consecutive weeks. The director shall provide all of the following in the notice:
1. The management goals.
2. A map or description of the boundaries of the rural groundwater management area.
3. The time and place of the hearing.
F. The director shall publish the notice for the public to approve the management plan on the department's website and in a newspaper of general circulation in each county in which the rural groundwater management area is located once each week for two consecutive weeks. The director shall provide all of the following in the notice:
1. A summary of the proposed management plan and recommended actions to be taken by the department.
2. A map or description of the boundaries of the rural groundwater management area.
3. The time and place of the hearing.
G. The public hearings prescribed by this section shall be held at a location within the rural groundwater management area not less than thirty days and not more than sixty days after the initial notice is published.
H. At the public hearing to approve the management goals, the rural groundwater management area council shall present data and information in support of the management goals and a summary of all public comment considered when considering the goals.
I. At the public hearing to approve the management plan, the rural groundwater management area council shall present data and information in support of the management plan and a summary of all public comment considered when considering the management plan.
J. Any person may appear at the hearings, either in person or by representative, and submit oral or documentary evidence in support of or opposition to adoption. Within thirty days after a public hearing, the director shall determine that the proposed goals or management plan are reasonable and consistent with the requirements of this article. Before the director makes a final determination to approve the management plan, the director must find the management plan is consistent with achieving the management goals. The director shall include a summary of any findings considered during the public hearings and a summary of all public comments received in writing or orally during the public meetings alongside the director's decisions.
K. All information compiled by the director pursuant to the development and approval of the management goals or management plan, including all records of the hearings and public comments, copies of the findings, management goals and management plan are public records of the department and shall be available for public inspection during regular business hours.
L. The final decisions of the director are subject to rehearing or review and judicial review as provided in section 45-114, subsection B.
45-429.10. Rural groundwater management area; conservation program; rules
A. Pursuant to a rural groundwater management area plan and supplementary to any other water conservation programs included in a management plan, the rural groundwater management area council shall recommend a mandatory water conservation program to the director that requires all persons with a certificate of groundwater use, except for a water user who receives a variance or exemption as prescribed by this section, to reduce groundwater use to help achieve the goals of a rural groundwater management area.
B. A rural groundwater management area water conservation program recommended to the director may include one or more of the following:
1. A best management practices program that allows a person who is entitled to use groundwater pursuant to a certificate to implement the person's choice of conservation programs approved by the department and appropriate to the person's type of water use.
2. Conservation or rate of use requirements for all or a selected group of nonexempt groundwater uses within a rural groundwater management area that may be applied to a certificate of groundwater use for irrigation and non-irrigation uses and that shall be determined by the council and the director to be reasonable. To determine reasonableness pursuant to this paragraph, the director and council may consider the following:
(a) For irrigation users, the quantity of water reasonably required to irrigate crops historically grown in a farm unit based on the total irrigation requirement per acre and the irrigation efficiency appropriate to the goals and conditions of the rural groundwater management area. The council and department may not recommended greater than an eighty percent efficiency.
(b) For municipal providers, programs including long-range planning, cooperative regional efforts, technical assistance, public education and conservation requirements.
(c) For industrial water users, programs and requirements to move industrial users within a rural groundwater management area to the greatest level of water use efficiency that are economically attainable given the latest available water technology.
3. A program for additional augmentation of the water supply of the rural groundwater management area, including incentives for artificial groundwater recharge.
4. In consultation with the director of the department of water resources and the director of the department of environmental quality, a program that provides for an assessment of groundwater quality and groundwater quality protection.
5. A program for conservation assistance to water users within the rural groundwater management area.
6. A program for the purchase and retirement of certificates of groundwater use.
7. For municipal providers, programs including non-per capita conservation, total gallons per capita conservation, lost and unaccounted for water conservation and specific water conservation for new, large or small municipal providers.
8. For industrial water users, general conservation requirements that apply to all users or conservation requirements that apply to certain current or new industrial users such as turf-related facilities, sand and gravel facilities, mining facilities, large-scale power plants, cooling facilities and dairy operations.
C. A person with a certificate of groundwater use may apply to the director at any time for a variance or exemption from a management plan's conservation requirements. The director shall grant a variance or exemption if the applicant demonstrates to the director's satisfaction that granting the variance or exemption is consistent with achieving the goals of the rural groundwater management area.
45-429.11. Management plan review; modification
Unless the director rescinds a rural groundwater management area designation or directs a rural groundwater management area council to develop a management plan for the maintenance of improved conditions as prescribed by section 45-429.01, a rural groundwater management area council shall review the management plan every ten years and do either of the following:
1. Readopt the existing management plan for an additional ten-year period.
2. Adopt a new management plan pursuant to the procedures for adopting a management plan as prescribed by this article except the plan is not subject to administrative review.
45-429.12. Rural groundwater management area; preemption
A. This chapter does not preempt or affect the following:
1. Decreed or appropriative water rights.
2. Surface water as defined in section 45-101.
3. Water subject to appropriation as prescribed in section 45-141.
4. A general adjudication of water rights as prescribed by chapter 1, article 9 of this title.
B. A rural groundwater management area council may not take or recommended any action to restrict, regulate or authorize transportation of groundwater that is inconsistent with articles 8 and 8.1 of this chapter.
45-429.13. Department of water resources rural groundwater management area fund; report
A. The department of water resources rural groundwater management area fund is established consisting of monies appropriated to the fund.
B. The director shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
C. The department shall spend monies in the fund to implement and support rural groundwater management areas that are established pursuant to this article, including administration and enforcement of actions in the plan implemented by the department, and may grant monies for conservation assistance to any person with a certificate of groundwater use within the rural groundwater management area to implement programs to approve and fund voluntary, compensated land and water conservation plans to conserve and augment groundwater supplies AS approved by the director.
D. The department may not exercise any power of eminent domain to acquire property using monies from the fund.
E. On or before December 31 of each year, the director shall submit an annual report to the president of the senate, the speaker of the house of representatives and the chairpersons of the senate and house of representatives committees on natural resources and agriculture, or their successor committees, and shall provide a copy of this report to the secretary of state. The annual report shall include information on the amount of monies spent or encumbered in the fund during the preceding fiscal year and a summary of the projects, activities and expenditures relating to implementing and supporting rural groundwater management areas and voluntary, compensated land and water conservation plans.
Sec. 3. Title 45, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 45-451.01, to read:
45-451.01. Groundwater uses in rural groundwater management areas; certificates of groundwater use
A. In a rural groundwater management area, a person may:
1. Withdraw and use groundwater only in accordance with the articles 2.1 and 3 of this chapter.
2. Store water in a storage facility, as defined in section 45-802.01, only in accordance with chapter 3.1 of this title.
B. This chapter does not affect decreed and appropriative water rights. This chapter does not affect surface water as defined in section 45-101, water subject to appropriation as prescribed in section 45-141 or a general adjudication of water rights as prescribed by chapter 1, article 9 of this title.
Sec. 4. Section 45-453, Arizona Revised Statutes, is amended to read:
45-453. Groundwater rights and uses in areas outside active management areas and rural groundwater management areas; amounts; transportation; irrigation non-expansion areas
In areas outside of active management areas and rural groundwater management areas, a person may:
1. Withdraw and use groundwater for reasonable and beneficial use, except as provided in article 8.1 of this chapter.
2. Transport groundwater pursuant to articles 8 and 8.1 of this chapter.
3. Use groundwater for irrigation purposes within the exterior boundaries of an irrigation non-expansion area only pursuant to article 3 of this chapter.
Sec. 5. Section 45-598, Arizona Revised Statutes, is amended to read:
45-598. New wells and replacement wells in new locations in active management areas; rules; permit required
A. The director shall adopt rules governing the location of new wells and replacement wells in new locations in active management areas to prevent unreasonably increasing damage to surrounding land or other water users from the concentration of wells.
B. The director shall adopt rules governing the location of new wells and replacement wells in new locations in rural groundwater management areas to manage the concentration of wells pursuant to a rural groundwater management area plan.
B. C. A person that is entitled to withdraw groundwater in an active management area pursuant to article 5 or 6 of this chapter may construct a new well or a replacement well in a new location if the location of the new well or the replacement well complies with the rules adopted by the director pursuant to subsection A of this section and if the person has applied for and received a permit from the director pursuant to section 45-599.
D. A person who is entitled to withdraw groundwater in a rural groundwater management area pursuant to article 2.1 of this chapter may construct a new well or a replacement well in a new location if the location of the new well or the replacement well complies with the rules adopted by the director pursuant to subsection A of this section and if the person has received a permit from the director pursuant to section 45-599.
C. E. An applicant for a general industrial use permit pursuant to sections 45-515 and 45-521 who proposes to construct a new well or a replacement well in a new location shall also apply for a permit pursuant to section 45-599.
D. F. A person who is entitled to withdraw groundwater in an active management area under article 5 or 6 of this chapter may withdraw groundwater under article 5 or 6 of this chapter from a well drilled to withdraw groundwater pursuant to a groundwater withdrawal permit issued under article 7 of this chapter if the location of the well complies with the rules adopted by the director under subsection A of this section and if the person has applied for and received a permit from the director pursuant to section 45-599. A person that is entitled to withdraw groundwater in an active management area under a general industrial use permit issued under section 45-515 may withdraw groundwater under section 45-515 from a well used to withdraw groundwater pursuant to another category of groundwater withdrawal permit issued under article 7 of this chapter if the location of the well complies with the rules adopted by the director under subsection A of this section and if the person has applied for and received a permit from the director pursuant to section 45-599.
Sec. 6. Section 45-604, Arizona Revised Statutes, is amended to read:
45-604. Water measuring devices
A. Except as provided in subsections B, C and D of this section, a person who withdraws groundwater from a nonexempt well in an active management area, or an irrigation non-expansion area or rural groundwater management area, a person who withdraws water from a non-exempt nonexempt well in the Santa Cruz active management area or a person who withdraws groundwater for transportation to an initial active management area pursuant to article 8.1 of this chapter shall use a water measuring device approved by the director.
B. A person who holds a type 2 non-irrigation grandfathered right or a groundwater withdrawal permit in the amount of ten or fewer acre-feet per year is not required to use a water measuring device to measure withdrawals pursuant to that grandfathered right or groundwater withdrawal permit unless the person holds more than one such right or permit in the aggregate amount of more than ten acre-feet per year and withdraws more than ten acre-feet of groundwater per year pursuant to those rights or permits from one well.
C. In an irrigation non-expansion area:
1. A person who withdraws ten or fewer acre-feet of groundwater per year from a non-exempt nonexempt well for a non-irrigation use is not required to use a water measuring device to measure withdrawals from that well.
2. A person who withdraws groundwater from a non-exempt nonexempt well for an irrigation use is not required to use a water measuring device to measure withdrawals from that well if both of the following apply:
(a) Groundwater withdrawn from the well for an irrigation use is used only on land that is owned by a person who has the right under section 45-437 to irrigate ten or fewer contiguous acres at the place of the use.
(b) Groundwater withdrawn from the well is not used on land that is part of an integrated farming operation.
D. In an active management area, a person, other than an irrigation district, who withdraws groundwater from a non-exempt nonexempt well for use pursuant to an irrigation grandfathered right that is appurtenant to ten or fewer irrigation acres is not required to use a water measuring device to measure withdrawals from that well unless groundwater withdrawn from the well is also used pursuant to either a service area right pursuant to article 6 of this chapter or a grandfathered groundwater right other than an irrigation grandfathered right that is appurtenant to irrigation acres that are exempt from irrigation water duties pursuant to section 45-563.02.
E. The director shall adopt rules setting forth the requirements and specifications for water measuring devices.
Sec. 7. Section 45-632, Arizona Revised Statutes, is amended to read:
45-632. Records and annual report of groundwater pumping, transportation and use; penalty
A. Each person who is required to file an annual report under this section or who files an annual report under subsection E of this section shall maintain current accurate records of the person's withdrawals, transportation, deliveries and use of groundwater and, in the Santa Cruz active management area, current accurate records of the person's withdrawals, deliveries and use of all water withdrawn from a well, as prescribed by the director under subsection P Q of this section.
B. Except as provided in subsections C and D of this section, an annual report shall be filed with the director by each person who:
1. Owns or leases a right under this chapter to withdraw, receive or use groundwater in an active management area, unless a report is filed for that person by an irrigation district under subsection E of this section or by another person in a form acceptable to the director.
2. Uses groundwater which that is transported from an active management area.
3. Is an individual user subject to a municipal conservation requirement for appropriate conservation measures included in a management plan adopted by the director pursuant to article 9 of this chapter.
4. Withdraws groundwater for transportation to an initial active management area pursuant to article 8.1 of this chapter.
5. Withdraws water from a well in the Santa Cruz active management area or who uses water, other than stored water, withdrawn from a non-exempt nonexempt well in the Santa Cruz active management area.
6. Withdraws groundwater from a nonexempt well in a rural groundwater management area.
C. Persons who withdraw groundwater from exempt wells and non-irrigation customers of cities, towns, private water companies and irrigation districts, except customers receiving water pursuant to a permit, are exempt from the record keeping and reporting requirements of this section for such water.
D. A person who owns or leases an irrigation grandfathered right that is appurtenant to ten or fewer irrigation acres is exempt from the record keeping and reporting requirements of this section for the irrigation grandfathered right unless one of the following applies:
1. The land to which the irrigation grandfathered right is appurtenant is part of an integrated farming operation.
2. Groundwater is withdrawn from the land to which the irrigation grandfathered right is appurtenant and delivered for use pursuant to either a service area right pursuant to article 6 of this chapter or a grandfathered groundwater right other than an irrigation grandfathered right that is appurtenant to irrigation acres that are exempt from irrigation water duties pursuant to section 45-563.02.
3. Groundwater is withdrawn from land that is both owned by the owner of the irrigation grandfathered right and contiguous to the land to which the irrigation grandfathered right is appurtenant and delivered for use pursuant to either a service area right pursuant to article 6 of this chapter or a grandfathered groundwater right other than an irrigation grandfathered right that is appurtenant to irrigation acres that are exempt from irrigation water duties pursuant to section 45-563.02.
E. An irrigation district which that delivers and distributes groundwater in an active management area may file an annual report with the director for each person who holds an irrigation grandfathered right appurtenant to irrigation acres within the service area of the irrigation district, if the irrigation district delivers all the water used on the person's irrigation acres. If an irrigation district files an annual report for such a person, the irrigation district shall report the following information for each such person:
1. The name of the person and the certificate number of the person's irrigation grandfathered right.
2. The quantity of groundwater, if any, delivered during the calendar year.
F. Persons who are required to report under subsection B, paragraph 1 of this section and who withdraw groundwater during the calendar year in an active management area shall report the following information for each well:
1. The registration number and location of the well.
2. The quantity of groundwater withdrawn from the well during the calendar year. A person who, under section 45-604, subsection B, is not required to use and does not use a water measuring device to measure withdrawals made pursuant to a type 2 non-irrigation grandfathered right or a groundwater withdrawal permit shall estimate the quantity of groundwater withdrawn pursuant to the grandfathered right or withdrawal permit.
3. The quantity of fuel or electricity consumed by the pump during the calendar year.
4. The uses to which the groundwater was applied or the persons to whom the groundwater was delivered during the calendar year.
G. Persons who are required to report under subsection B, paragraph 1 of this section and who use groundwater during the calendar year in an active management area and persons who are required to report under subsection B, paragraph 2 of this section shall report the following information:
1. The source of the groundwater, including:
(a) The name of the person from whom the groundwater was obtained.
(b) The registration number and location of the well, if known.
2. The quantity of groundwater used during the calendar year.
3. The specific uses to which the groundwater was applied during the calendar year.
H. Persons who are required to report under subsection B, paragraph 4 of this section and who transport groundwater during the calendar year to an initial active management area under article 8.1 of this chapter shall report the following information:
1. The registration number and location of each well.
2. The quantity of groundwater withdrawn from each well during the calendar year.
3. The quantity of groundwater transported during the calendar year to an initial active management area.
4. The quantity of groundwater that was withdrawn during the calendar year and that was not transported to an initial active management area and the uses to which the groundwater was applied.
5. The quantity of fuel or electricity consumed by each pump during the calendar year.
6. The uses to which the groundwater was applied or the persons to whom the groundwater was delivered during the calendar year.
I. Persons who are required to report under subsection B, paragraph 1 of this section and who neither withdraw nor use groundwater during the calendar year shall report the following information:
1. The fact that no groundwater was withdrawn or used during the calendar year.
2. The registration number and location of each well, if any.
J. Persons who are required to report under subsection B, paragraph 5 of this section and who withdraw water from a non-exempt nonexempt well in the Santa Cruz active management area during the calendar year shall report the following information:
1. The registration number and location of the well.
2. The quantity of water, by type, withdrawn from the well during the calendar year.
3. The quantity of fuel or electricity consumed by the pump during the calendar year.
4. The uses to which the water was applied or the persons to whom the water was delivered during the calendar year.
K. Persons who are required to report under subsection B, paragraph 5 of this section and who use water withdrawn from a non-exempt nonexempt well in the Santa Cruz active management area during the calendar year shall report the following information:
1. The source of the water, including:
(a) The name of the person from whom the water was obtained.
(b) The registration number and location of the well, if known.
2. The quantity of the water, by type, used during the calendar year.
3. The specific uses to which the water was applied during the calendar year.
L. Persons who are required to report under subsection B, paragraph 6 of this section and who withdraw water from a nonexempt well in a rural groundwater management area during the calendar year shall report the following information:
1. The registration number and location of the well, including global positioning system coordinates.
2. The quantity of water, by type, that is withdrawn from the well during the calendar year.
3. The specific uses to which the water was applied during the calendar year.
L. m. If a person both withdraws groundwater in an active management area and uses such water, the person may combine the information required by subsections F and G of this section into one report. If a person both withdraws water, other than stored water, from a non-exempt well in the Santa Cruz active management area and uses such water, the person may combine the information required by subsections J and K of this section into one report.
M. n. The director may require such other information in the report as may be necessary to accomplish the management goals of the applicable active management area.
N. o. Each report shall contain either a sworn statement or a certification, under penalty of perjury, that the information contained in the report is true and correct according to the best belief and knowledge of the person filing the report.
O. p. The annual report shall be maintained on a calendar year basis and shall be filed with the director no later than March 31 of each year for the preceding calendar year. If a person who is required under this section to file an annual report for calendar year 1985 or any subsequent calendar year fails to file a report for the calendar year in question on or before March 31 of the following year, the director may assess and collect a penalty of twenty-five dollars $25 for each month or portion of a month that the annual report is delinquent. The total penalty assessed under this subsection shall not exceed one hundred fifty dollars $150. The director shall deposit, pursuant to sections 35-146 and 35-147, all penalties collected under this subsection in the state general fund.
P. q. The records and reports required to be kept and filed under this section shall be in such form as the director prescribes. The director shall prepare blank forms and distribute them on a timely schedule throughout each active management area and furnish them upon request. Failure to receive or obtain the forms does not relieve any person from keeping the required records or making any required report. The director shall cooperate with cities and towns, private water companies and irrigation districts in establishing the form of the records and reports to be kept and filed by them.
Sec. 8. Section 45-2602, Arizona Revised Statutes, is amended to read:
45-2602. Establishment of southside protection zones; reporting requirements
A. The following southside protection zones are established on the effective date of this section December 14, 2007:
1. The eastern protection zone north.
2. The eastern protection zone south.
3. The western municipal and industrial protection zone.
4. The western municipal protection zone.
5. The central protection zone.
B. The boundaries of the southside protection zones established under subsection A of this section are shown on the maps that are dated March 25, 2002 and that are on file in the department. The maps shall be available for examination by the public during regular business hours.
C. Each person in the Pinal active management area who withdraws underground water during a calendar year in a southside protection zone established under this section, other than the central protection zone, shall file an annual report with the director no later than March 31 of each year for the preceding calendar year. The report shall contain the following information in addition to any other information required by section 45-632:
1. The amount of underground water withdrawn within the southside protection zone and the name of the protection zone.
2. If the underground water was used for a nonirrigation use, the purpose for which the underground water was used, the location of the use, the acreage of the parcel or parcels of land on which the underground water was used and the date the use commenced.
3. The amount of any water replenished during the year pursuant to section 45-2611, subsection B, paragraph 2, the water use for which the water was replenished and the manner in which the water was replenished.
4. The amount of any water replaced during the year pursuant to section 45-2611, subsection B, paragraph 3, the water use for which the water was replaced and the manner in which the water was replaced.
D. A person who is required to file an annual report for a year under subsection C of this section:
1. Shall use a water measuring device approved by the director unless exempt under section 45-604.
2. Shall maintain current accurate records of the person's withdrawals, transportation, deliveries and use of underground water as prescribed by the director.
3. May combine the report with an annual report for the same year filed under section 45-632.
4. Shall comply with the requirements prescribed in section 45-632, subsections N, O and P O, P and Q and is subject to the penalties prescribed in section 45-632, subsection O P as if the report was required by section 45-632.
E. A person who withdraws underground water from an exempt well is exempt from the record keeping and reporting requirements of subsections C and D of this section. For the purposes of this subsection, "exempt well" means a well that has a pump with a maximum capacity of not more than thirty-five gallons per minute, that is used to withdraw underground water and that would qualify as an exempt well under section 45-454 if used to withdraw groundwater.
F. If stored water is withdrawn in the Pinal active management area in a southside protection zone established under this section, other than the central protection zone, the annual report filed under section 45-875.01, subsection D shall include:
1. The amount of stored water withdrawn within the southside protection zone and the name of the protection zone.
2. If the stored water was used for a nonirrigation use, the purpose for which the water was used, the acreage of the parcel or parcels of land on which the water was used, the location of the use and the date the use commenced.
3. The identification of the storage facility in which the water was stored.
4. The amount of any water replenished during the year pursuant to section 45-2611, subsection B, paragraph 2, the water use for which the water was replenished and the manner in which the water was replenished.
5. The amount of any water replaced during the year pursuant to section 45-2611, subsection B, paragraph 3, the water use for which the water was replaced and the manner in which the water was replaced.
Sec. 9. Section 49-1304, Arizona Revised Statutes, is amended to read:
49-1304. Evaluation criteria for projects from the long-term water augmentation fund
A. The authority shall determine the order and priority of water supply development projects proposed to be funded in whole or in part with monies from the long-term water augmentation fund, participation in projects to import water or allocation of imported water based on the following, as applicable:
1. The benefits of the project to current and future residents of this state, including the ability of the project to improve access to water supplies for use within this state and promote economic growth, in relation to the projected cost of the project.
2. The ability of the project to provide multiple water supply development benefits.
3. The projected costs of the project.
4. The ability of the project to address or mitigate water supply reductions to existing water users, considering the existence, feasibility and long-term reliability of mitigation measures available to the applicant or proposed beneficiaries, including the availability of water supplies from the Arizona water banking authority.
5. The cost-effectiveness of the project.
6. The reliability and long-term security of the water supply to be developed through the project.
7. Existing and planned conservation, best management practices and water management programs of the applicant or potential applicant.
8. The degree to which the project will maximize or leverage multiple available funding sources, including federal funding.
9. The applicant's ability to meet any applicable environmental requirements imposed by any federal or state agency.
10. The qualifications, industry experience, including experience with similar projects, general reputation and financial capacity of the applicant or any private partner, based on appropriate due diligence.
11. The feasibility of the project, including the feasibility of the proposed design and operation of the project.
12. Comments from water users, local citizens and affected jurisdictions.
13. For projects involving the construction or operation of water-related facilities, the safety record of any private partner.
14. Existing, near-term and long-term water demands compared to the volume and reliability of existing water supplies of the beneficiaries of the funding or project. In evaluating this criterion, the authority shall consider information contained in any applicable water supply and demand assessment that has been issued by the director of water resources pursuant to section 45-105, subsection B, paragraph 14 15, in addition to any other information submitted to evaluate this criterion.
15. Potential impacts to ratepayers.
16. The ability of the applicant and any public or private partner to fully repay all financial obligations to the authority.
17. For agreements entered into pursuant to section 49-1203.01, subsection C, paragraph 5, the impact of any such agreement on the ability of the authority to comply with the requirements of section 49-1303, subsection E.
18. Other criteria that the authority deems appropriate.
B. The board shall conduct background checks, financial checks and other reviews deemed appropriate for individual applicants, applicants' boards of directors and other partners of the applicants.
