SB 1243 — groundwater sales; online exchange.

House Engrossed Senate BillEngrossed groundwater sales;

REPEALING TITLE 45, CHAPTER 2, ARTICLE 13, ARIZONA REVISED STATUTES;

NOTWITHSTANDING ANY OTHER LAW, A PERSON WITH A GRANDFATHERED RIGHT TO GROUNDWATER AS PRESCRIBED IN SECTION 45-462 IN THE PHOENIX, TUCSON OR PINAL ACTIVE MANAGEMENT AREA MAY SELL, LEASE OR OTHERWISE CONVEY ANY PORTION OF THE RIGHT TO PUMP GROUNDWATER OR THE GROUNDWATER ITSELF TO ANY OTHER PERSON IN THE PHOENIX, TUCSON ACTIVEOR MANAGEMENTPINAL AREA FOR ANY USE IN THE TUCSON ACTIVE MANAGEMENT AREA.

THIS ARTICLE DOES NOT AUTHORIZE A PERSON TO SELL, LEASE OR OTHERWISE CONVEY THE RIGHT TO PUMP GROUNDWATER OR GROUNDWATER ITSELF IN ONE SUBBASIN FOR USE OR WITHDRAWAL IN ANOTHER SUBBASIN BUT GROUNDWATER MAY BE TRANSPORTED BETWEEN SUBBASINS WITHIN THE TUCSON ACTIVE MANAGEMENT AREA BY OTHER MEANS.

A PERSON WHO SELLS, LEASES OR OTHERWISE CONVEYS THE RIGHT TO PUMP GROUNDWATER OR GROUNDWATER ITSELF AS PRESCRIBED BY SUBSECTION A OF THIS SECTION SHALL NOTIFY THE DEPARTMENT IN WRITING OF THE FOLLOWING WITH RESPECT TO THE TRANSACTION:

-7. 1 - S.B.

1243 7.

8.- 1 - S.B.

THE1243 VOLUME8. OF GROUNDWATER TO BE FORGONE BY THE SELLER OR LESSOR.

THE AMOUNT OF GROUNDWATER TO BE FORGONE BY THE SELLER OR LESSOR.

THE VOLUMEAMOUNT OF GROUNDWATER TO BE RECEIVED OR WITHDRAWN BY THE BUYER OR LESSEE.

FOR ANY SALE, LEASE OR CONVEYANCE PRESCRIBED BY SUBSECTION A OF THIS SECTION, THE BUYER OR LESSEE SHALL RECEIVE THE RIGHT TO RECEIVE OR WITHDRAW SIXTY-FIVE PERCENT OF THE TOTAL VOLUMEAMOUNT OF GROUNDWATER FORGONE BY A SELLER OR LESSOR RESULTING FROM THE TRANSACTION.

IN CALCULATING THE VOLUMEAMOUNT OF GROUNDWATER ITSELF OR RIGHT TO PUMP GROUNDWATER THAT A SELLER OR LESSOR MAY FORGO PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL USE THE AVERAGE VOLUMEAMOUNT OF WATER PUMPED PURSUANT TO THE GRANDFATHERED RIGHT OVER THE PRECEDING FIVE YEARS.

EXCEPT AS PROVIDED IN SUBSECTION I OF THIS SECTION, EXEMPT FROM ANY REPLENISHMENT OBLIGATION ON THE PART OF THE BUYER OR LESSEE, INCLUDING A REPLENISHMENT TAX.

DEEMED CONSISTENT WITH THE MANAGEMENT PLAN AND ACHIEVEMENT OF THE MANAGEMENT GOAL FOR THE ACTIVE MANAGEMENT AREAAREA. UNLESS THE PERSON USES THE GROUNDWATER OR RIGHT TO GROUNDWATER TO MEET OR OBTAIN A CERTIFICATE, DESIGNATION OR REDESIGNATION OF ASSURED WATER SUPPLY PURSUANT TO SECTION 45-576.

FOR THE PURPOSE OF OBTAINING A CERTIFICATE,CERTIFICATE DESIGNATION OR REDESIGNATION OF ASSURED WATER SUPPLY, DEEMED PHYSICALLY AVAILABLE TO THE BUYER OR TO THE LESSEE FOR THE NUMBER OF YEARS THAT THE DEPARTMENT DETERMINES THE CONVEYED GROUNDWATER OR RIGHT TO GROUNDWATER, WHETHER SOLD OR LEASED, ISCAN PHYSICALLYBE AVAILABLEPUMPED ATOR THEUSED PROPOSEDAT POINTITS OFFULL WITHDRAWALAMOUNT ANDANNUALLY PROPOSEDUNTIL RATEIT OFIS WITHDRAWAL,NO AFTERLONGER APHYSICALLY THIRTY-FIVEAVAILABLE. PERCENT REDUCTION HAS - 2 - S.B.

1243 BEEN APPLIED PURSUANT TO SUBSECTION E OF THIS SECTION.

NOTWITHSTANDING THIS PARAGRAPH, AN APPLICANT FOR A CERTIFICATE, DESIGNATION OR REDESIGNATION OF ASSURED WATER SUPPLY SHALL COMPLY WITH THE ONE HUNDRED YEAR REQUIREMENT PRESCRIBED IN SECTION 45-576 FOR AN ASSURED WATER SUPPLY.

IF THE DEPARTMENT DETERMINES THAT THE PHYSICAL AVAILABILITY OF THE GROUNDWATER OR THE RIGHT TO GROUNDWATER CONVEYED PURSUANT TO THIS SECTION IS LESS THAN ONE HUNDRED YEARS AS REQUIRED UNDER SECTION 45-576, THE APPLICANT SHALL DEMONSTRATE AN ADDITIONAL SOURCE OF WATER FOR THE REMAINING NUMBER OF YEARS.

NOTWITHSTANDINGGROUNDWATER ANYTHAT OTHERIS LAWRECEIVED ANDOR AFTERWITHDRAWN APPLYING THE THIRTY-FIVE PERCENT REDUCTION PURSUANT TO SUBSECTION EA OF THIS SECTION, A PERSON WHO RECEIVES OR WITHDRAWS GROUNDWATER OR A RIGHT TO GROUNDWATER PURSUANT TO THIS SECTION AND WHO USES OR RELIES ON THAT GROUNDWATER OR RIGHT TO GROUNDWATER TO MEET OR OBTAIN AN ASSURED WATER SUPPLY MAY NOT BE SUBJECTAPPLIED TOTOWARD ANYOBTAINING REPLENISHMENTA OBLIGATIONCERTIFICATE GREATER THAN ONE HUNDRED PERCENT OF THEASSURED ACTUALWATER VOLUMESUPPLY. OF GROUNDWATER THAT THE PERSON ACTUALLY RECEIVES OR WITHDRAWS PURSUANT TO SUBSECTION D OF THIS SECTION.

1.- 2 - S.B.

1243 1.

THIS SECTION DOES NOT APPLY TO APPROPRIABLEWATER SURFACEIN WATERTHE SUBFLOW ZONE OF A RIVER OR SUBFLOWSTREAM OR WATER IN THE CONE OF DEPRESSION OF A WELL THAT MAY BE PUMPING SURFACE WATER AND SHALL NOT BE CONSTRUED TO MODIFY EXISTING LAW IN ANY WAY WITH RESPECT TO DETERMINING WHICH WATER IS SURFACE WATER AND WHICH WATER IS GROUNDWATER.

-M. 3 - S.B.

1243 M.

Sec.- 3 -

3.

Delayed repeal;

applicability;

report A.

Title 45, chapter 2, article 13, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2029.

B.

A sale of groundwater or the right to pump groundwater pursuant to title 45, chapter 2, article 13, Arizona Revised Statutes, as added by this act, that was effective on or before January 1, 2030 is valid and enforceable on and after January 1, 2030, except that any agreement for the sale of groundwater or the right to pump groundwater executed pursuant to title 45, chapter 2, article 13, Arizona Revised Statutes, as added by this act, may not include terms or provisions that allow for the sale or lease of groundwater or the right to pump groundwater after January 1, 2030.

C.

A lease of groundwater or the right to pump groundwater executed pursuant to title 45, chapter 2, article 13, Arizona Revised Statutes, as added by this act:

1.

Shall have an effective date on or before January 1, 2030.

2.

Shall be valid and enforceable until January 1, 2030.

3.