Bill Text: AZ HB2202 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Subsequent AMA; previously nonirrigated land
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-28 - House NREW Committee action: Do Pass, voting: (5-4-0-1-0-0) [HB2202 Detail]
Download: Arizona-2025-HB2202-Introduced.html
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REFERENCE TITLE: subsequent AMA; previously nonirrigated land |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HB 2202 |
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Introduced by Representative Griffin
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AN ACT
Amending sections 45-452, 45-470, 45-472, 45-473 and 45-512, Arizona Revised Statutes; RELATING to groundwater rights.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 45-452, Arizona Revised Statutes, is amended to read:
45-452. No new irrigated acreage in active management areas; central Arizona project water; exemption
A. In an initial active management area, except as provided in subsections B, H, I, and J and K of this section and sections 45-172, 45-465.01 and 45-465.02, only acres of land which that were legally irrigated at any time from January 1, 1975 through January 1, 1980, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 and for which the irrigation grandfathered right has not been conveyed for a non-irrigation use, may be irrigated with any groundwater, effluent, diffused water on the surface or surface water, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before June 12, 1980. In an initial active management area, land which that was not irrigated at any time from January 1, 1975 through January 1, 1980 is deemed to have been in irrigation if the director finds that either of the following applies:
1. In areas of an initial active management area not designated as critical groundwater areas under prior statutory law prior to before the date of the designation of the active management area, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced prior to before the date of the designation of the active management area.
2. In areas of an initial active management area which that were designated as critical groundwater areas under prior statutory law, land is deemed to have been in irrigation if substantial capital investment has been made in the twelve months before June 12, 1980 for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under prior statutory law.
B. In an initial active management area, a person who owns acres of land which that may be irrigated pursuant to subsection A of this section may apply to the director to permanently retire all or a portion of such acres from irrigation and to irrigate conjunctively with central Arizona project water the same number of substitute acres. The director may approve the substitution of acres if the director determines that all of the following exist:
1. The substitute acres were legally irrigated during the period of September 30, 1958 to September 30, 1968, or such other period as the United States secretary of the interior may designate.
2. The acres to be retired from irrigation and the substitute acres are located outside of the exterior boundaries of the service area of a city, town or private water company and such acres are located within the same irrigation district and the same sub-basin subbasin.
3. The substitution of acres is necessary to enable the irrigation district within which the acres are located to more efficiently deliver central Arizona project water.
4. Central Arizona project water available to the irrigation district within which the acres are located will be adequate to supply the substitute acres.
5. The substitution of acres will benefit the management of the active management area in which the acres are located.
C. Any acres permanently retired from irrigation pursuant to subsection B of this section relinquish their irrigation grandfathered rights, and such rights are deemed to be appurtenant to the substitute acres. Groundwater withdrawn or received for the irrigation of the substitute acres pursuant to an irrigation grandfathered right shall be reduced by the amount of central Arizona project water received for such acres.
D. The service area of the irrigation district in which the acres are located shall be modified to permanently delete the acres permanently retired from irrigation and include the substitute acres.
E. If a person retires land from irrigation pursuant to subsection B of this section, groundwater shall not be withdrawn from such retired land for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within the service area of such city, town or private water company.
F. The director may reverse the substitution of irrigated acres as provided by subsections B through E of this section under the following conditions and procedures:
1. Title to the retired acres and substitute acres has reverted involuntarily, or voluntarily in lieu of foreclosure or forfeiture, to a previous owner or owners of the retired and substitute acres.
2. The current owner of the retired acres must apply to the director in writing stating:
(a) The history of the original substitution of acres under subsections B through E of this section.
(b) The circumstances regarding the reversion of title to the current owner or owners.
(c) Why reversal of the substitution of acres is necessary.
3. The director must find that reversing the substitution of acres:
(a) Will benefit the management of the active management area.
(b) Is necessary to prevent unreasonable hardship to the current owner of the retired acres.
(c) Will not cause unreasonable hardship to the current owner of the substitute acres, if owned separately from the retired acres.
4. If the director decides to reverse the substitution of acres:
(a) The originally retired irrigation acres regain their original irrigation grandfathered rights, but groundwater withdrawn or received for the irrigation of those acres pursuant to an irrigation grandfathered right shall be reduced by any amount of central Arizona project water received for such acres.
(b) The substitute acres relinquish all irrigation grandfathered rights that were transferred to them under the original substitution of acres.
(c) The service area of the irrigation district in which the acres are located shall be modified to delete the substitute acres and include the originally retired irrigation acres.
(d) Groundwater may not thereafter be withdrawn from the substitute acres for any purpose unless pursuant to a groundwater withdrawal permit or unless withdrawn by a city, town or private water company within its service area.
G. In a subsequent active management area, except as provided in subsections H, I, and J and K of this section or section 45-172, only acres of land which that were legally irrigated at any time during the five years preceding the date of the notice of the initiation of designation procedures or the call for the election, which that are capable of being irrigated, which that have not been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 and for which the irrigation grandfathered right has not been conveyed for a non-irrigation use, may be irrigated with groundwater, effluent, diffused water on the surface or surface water, except that this does not prohibit irrigation with surface water used pursuant to decreed or appropriative rights established before the date of the notice or the call. In a subsequent active management area, land is deemed to have been in irrigation if the director finds that either of the following applies:
1. In areas of a subsequent active management area which that were not irrigation non-expansion areas, land is deemed to have been in irrigation if substantial capital investment has been made for the subjugation of such land for an irrigation use including on-site irrigation distribution facilities and a well or wells the drilling and construction of which were substantially commenced before the date of the notice of the initiation of designation procedures or the call for the election.
2. In areas of a subsequent active management area which that were irrigation non-expansion areas, land is deemed to have been in irrigation if the director finds that substantial capital investment has been made in the twelve months before the date of the notice of the initiation of designation procedures or the call for the election, for the improvement of the land and on-site irrigation distribution facilities, including the drilling of wells, for an irrigation use. This paragraph does not allow irrigation of land which that could not have been legally irrigated under section 45-437.
h. in a subsequent active management area, on the director's determination of irrigation GRANDFATHERED rights, a person may irrigate land that was not pREVIOUSLY subject to IRRIGATION if both of the following CONDITIONS apply:
1. the land is adjacent to a farm unit or parcel that was PREVIOUSLY subject to irrigation.
2. The person's irrigation of the land would not cause the person to exceed the volume of groundwater awarded to the person by an irrigation grandfathered right.
H. i. In an active management area, a state university engaged in the teaching and study of and experimentation in the science of agriculture may irrigate not more than three hundred twenty acres of land for such purposes with not more than five acre-feet of groundwater per acre per year. Water produced from any well pursuant to this subsection shall not be leased, sold or transported off the irrigated land operated by the state university. The right to withdraw and use groundwater pursuant to this subsection does not require a withdrawal permit, is not a grandfathered right, shall not give rise to a grandfathered right and may not be conveyed to any other user.
I. j. In an active management area, a correctional facility under the jurisdiction of the state department of corrections may irrigate with groundwater, effluent, diffused water on the surface or surface water up to a total of ten acres of land that otherwise may not be irrigated pursuant to subsection A or G of this section if the irrigation is for the purpose of producing plants or parts of plants for consumption by inmates at the correctional facility as part of a prisoner work program and if the correctional facility notifies the director of water resources in writing of the location of the acres of land to be irrigated prior to before their irrigation. The actual number of acres of land that a correctional facility may irrigate pursuant to this subsection shall be calculated by subtracting the number of acres of land the correctional facility may already irrigate under subsection A or G of this section from ten. The amount of water that a correctional facility may use during a year to irrigate acres of land pursuant to this subsection shall not exceed an amount calculated by multiplying the number of acres of land that are actually irrigated by the correctional facility during the year pursuant to this subsection, by four and one-half acre-feet of water. The right to withdraw and use groundwater pursuant to this subsection does not require an irrigation grandfathered right, is not a grandfathered right, shall not give rise to a grandfathered right, and may not be conveyed to any other user.
J. k. During the second management period, acres of land in an active management area which that have been retired from irrigation for a non-irrigation use pursuant to section 45-463 or 45-469 or for which the irrigation grandfathered right has been conveyed for a non-irrigation use pursuant to section 45-472 may be irrigated with effluent, other than effluent recovered pursuant to a recovery well permit issued under chapter 3.1 of this title or effluent given or received pursuant to a water exchange under chapter 4 of this title, and shall retain its appurtenant type 1 non-irrigation grandfathered right where the following conditions are met:
1. The land to be irrigated lies within the boundaries of an incorporated city or town.
2. The governing body or manager of the city or town has consented in writing to the irrigation of the land with effluent.
3. The effluent proposed for irrigation of the land cannot be reasonably beneficially used otherwise.
4. The owner of the land gives written notice to the director of intention to irrigate the land with effluent and receives written approval from the director before commencing irrigation. The notice shall set forth the legal description of the land to be irrigated, the certificate number of the type 1 non-irrigation grandfathered right appurtenant to the land, the source of effluent and the reasons the effluent cannot be reasonably beneficially used otherwise, and shall be accompanied by a copy of the written consent of the city or town in which the land to be irrigated is located.
K. l. A person who may irrigate with effluent land to which a type 1 non-irrigation right is appurtenant under subsection J k of this section may relinquish the right to irrigate all or a portion of the land by giving the director written notice that the person relinquishes the right. The notice shall include a legal description of the acres to be relinquished. The relinquishment is effective upon on receipt of the notice by the director.
L. m. If a person who may irrigate with effluent land to which a type 1 non-irrigation grandfathered right is appurtenant under subsection J k of this section conveys all or a portion of the land to a successor owner, the successor owner shall not irrigate the land prior to providing written notification to the director of the successor owner's intention to irrigate the land and receiving approval from the director pursuant to subsection J k of this section.
M. n. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. If an administrative hearing is held, it shall be conducted in the active management area in which the use is located.
Sec. 2. Section 45-470, Arizona Revised Statutes, is amended to read:
45-470. Use of type 1 non-irrigation grandfathered right by original owner; definition
A. Except as provided in section 45-469, subsection I, or as provided in subsection B of this section, the original owner of a type 1 non-irrigation grandfathered right pursuant to section 45-463 or 45-469 may:
1. Use groundwater withdrawn pursuant to the right for any non-irrigation use:
(a) On the land to which the right is appurtenant.
(b) On any other land, subject to the provisions governing transportation of groundwater in articles 8 and 8.1 of this chapter, except that, if the land to which the right is appurtenant is included within the exterior boundaries of the service area of a city, town or private water company, use groundwater on other land only if the use on other land was commenced prior to before the date of the designation of the active management area or is pursuant to a development plan filed with the director prior to before the inclusion of the land within the exterior boundaries of the service area of the city, town or private water company.
2. Pursuant to section 45-473, convey retired irrigated land with the appurtenant type 1 non-irrigation grandfathered right. Any land not conveyed shall retain its appurtenant type 1 non-irrigation grandfathered right.
B. The original owner of a type 1 non-irrigation grandfathered right pursuant to section 45-463 or 45-469 shall not withdraw or use groundwater pursuant to the portion of the type 1 non-irrigation grandfathered right that is appurtenant to land which the original owner may irrigate with effluent under section 45-452, subsection J k.
C. For the purposes of this section, "original owner" means:
1. The person who acquired and retired land from irrigation prior to before the date of the designation of the active management area pursuant to section 45-463 and any person or entity that holds such land under the same ownership as defined by section 45-461.
2. The person who retires legally irrigated land after the date of the designation of the active management area pursuant to section 45-469 and any person or entity that holds such land under the same ownership as defined by section 45-461.
Sec. 3. Section 45-472, Arizona Revised Statutes, is amended to read:
45-472. Conveyance of irrigation grandfathered right; within service area; outside service area; change to non-irrigation grandfathered right; forfeiture of right to convey to non-irrigation use; definition
A. The owner of an irrigation grandfathered right may convey the right only with the land to which the right is appurtenant.
B. If the land to which an irrigation grandfathered right is appurtenant is within the exterior boundaries of the service area of a city, town or private water company:
1. The irrigation grandfathered right may be conveyed only for an irrigation use, except for expanded animal industry use or as provided in paragraphs 2 and 3 of this subsection. If an irrigation grandfathered right is conveyed for an irrigation or expanded animal industry use, the full amount of the right is conveyed. The amount of groundwater conveyed pursuant to the right:
(a) For an irrigation use may be withdrawn from the land to which the right is appurtenant or any other land and may be used only on the land to which the right is appurtenant or on contiguous irrigation acres under common ownership within the service area of the city, town or private water company subject to the provisions of articles 8 and 8.1 of this chapter relating to transportation of groundwater. For the purposes of this subdivision, irrigation acres that are separated by a road, highway, easement or right-of-way from the land to which the irrigation grandfathered right is appurtenant are deemed to be contiguous.
(b) For an expanded animal industry use may be withdrawn by the new owner of the right only from the land to which the right is appurtenant and used on that land or on any other land, subject to the provisions of articles 8 and 8.1 of this chapter relating to transportation of groundwater. If the groundwater was delivered by an irrigation district to the previous owner of the right, the irrigation district may continue to deliver groundwater to the new owner pursuant to the right. If any portion of the amount of groundwater conveyed is withdrawn by the new owner and used on other land, no additional groundwater may be withdrawn for use on the land to which the right is appurtenant.
2. The irrigation grandfathered right may be conveyed to an industry engaged in the generation of electrical energy for the purpose of electrical energy generation, except that, if the facility for the generation of electrical energy is not subject to title 40, chapter 2, article 6.2, the conveyance is subject to the approval of:
(a) The appropriate city or town, if the irrigation grandfathered right to be conveyed is appurtenant to land within the exterior boundaries of the service area of a city or town.
(b) The director, if the irrigation grandfathered right to be conveyed is appurtenant to land within the corporate limits of a city or town and within the exterior boundaries of the service area of a private water company.
3. If an irrigation grandfathered right is conveyed for a non-irrigation use pursuant to paragraph 2 of this subsection, the amount of the right that is conveyed is the lesser of:
(a) The current maximum amount of groundwater that may be used pursuant to the right, as calculated pursuant to section 45-465, subsection B.
(b) Three acre-feet per year multiplied by the number of water duty acres in the farm in which the acre to which the right is appurtenant is located divided by the number of irrigation acres in the farm.
4. The new owner of an irrigation grandfathered right conveyed pursuant to paragraph 2 of this subsection may withdraw the amount of groundwater conveyed pursuant to that right, as determined in paragraph 3 of this subsection, only from the land to which the right is appurtenant and use the groundwater on that land, but may not use the groundwater on other land, except that, if the groundwater was delivered by an irrigation district to the previous owner of the right, the irrigation district may continue to deliver groundwater to the new owner pursuant to the right for use on the land to which the right is appurtenant.
5. All withdrawal or use of groundwater pursuant to this subsection is subject to subsection H of this section.
C. If the land to which an irrigation grandfathered right is appurtenant is included within the exterior boundaries of the service area of a city, town or private water company subsequent to the date of the designation of an active management area, the owner of the right may, with the approval of the director and consistent with the provisions of this chapter, may convey the grandfathered right for a non-irrigation use, other than an expanded animal industry use, on the land to which the right is appurtenant, upon a showing that adequate water service is unavailable at rates comparable to rates charged similar classes of water users within such service area. The amount of the right conveyed is determined pursuant to subsection B, paragraph 3 of this section. All withdrawal or use of groundwater pursuant to this subsection is subject to subsection H of this section.
D. If the land to which an irrigation grandfathered right is appurtenant is outside of the exterior boundaries of the service area of a city, town or private water company:
1. The irrigation grandfathered right may be conveyed for an irrigation use or a non-irrigation use. If an irrigation grandfathered right is conveyed for an irrigation or an expanded animal industry use, the full amount of the right is conveyed. If an irrigation grandfathered right is conveyed for a non-irrigation use, other than an expanded animal industry use, the amount of the right that is conveyed is the lesser of:
(a) The current maximum amount of groundwater that may be used pursuant to the right as calculated pursuant to section 45-465, subsection B.
(b) Three acre-feet per year multiplied by the number of water duty acres in the farm in which the acre to which the right is appurtenant is located and divided by the number of irrigation acres in the farm.
2. The amount of groundwater conveyed pursuant to the right for a non-irrigation use, as determined in paragraph 1 of this subsection, may be withdrawn by the new owner of the right only from the land to which the right is appurtenant and used on that land or on any other land, subject to section 45-473.01 and to the provisions of articles 8 and 8.1 of this chapter relating to transportation of groundwater, except that, if the groundwater was delivered by an irrigation district to the previous owner of the right, the irrigation district may continue to deliver groundwater to the new owner pursuant to the right. If any portion of the amount of groundwater conveyed is withdrawn by the new owner and used on other land, no additional groundwater may be withdrawn for use on the land to which the right is appurtenant, except that, if the new owner is an industry, it may withdraw a portion of the amount of groundwater conveyed for use on other land and withdraw the remainder of the amount of groundwater conveyed for municipal and industrial use on the land to which the right is appurtenant for purposes directly related to the industry's industrial operation.
3. The amount of groundwater conveyed pursuant to the right for an irrigation use, as determined in paragraph 1 of this subsection, may be withdrawn from the land to which the right is appurtenant or from any other land and may be used only on the land to which the right is appurtenant or on contiguous irrigation acres under common ownership, subject to the provisions of articles 8 and 8.1 of this chapter relating to transportation of groundwater. For the purposes of this paragraph, irrigation acres that are separated by a road, highway, easement or right-of-way from the land to which the irrigation grandfathered right is appurtenant are deemed to be contiguous.
4. All withdrawal or use of groundwater pursuant to this subsection is subject to subsection H of this section.
E. If an irrigation grandfathered right is conveyed for a non-irrigation use, the new owner's right to withdraw or receive groundwater is a non-irrigation grandfathered right associated with retired irrigated land, or a type 1 non-irrigation grandfathered right. All subsequent conveyances of that right are governed by section 45-473.
F. The amount of a type 1 non-irrigation grandfathered right shall be determined at the time it is established and shall remain fixed at that amount.
G. An irrigation grandfathered right may not be conveyed for a non-irrigation use if one of the following applies:
1. The irrigation grandfathered right has not been retired in anticipation of a future non-irrigation use and has not been exercised for five consecutive years.
2. The land to which the irrigation grandfathered right is appurtenant was previously designated by the director as protected farmland pursuant to section 45-483, subsection A. This paragraph shall not apply to land that was designated by the director as protected farmland if the director revoked the designation pursuant to section 45-483, subsection C, paragraph 1 and the director determined at that time that the conservation easement in the land was terminated because a partial or full condemnation of the land made farming impracticable.
H. A person who owns a type 1 non-irrigation grandfathered right under this section shall not withdraw or use groundwater pursuant to the portion of the type 1 non-irrigation grandfathered right that is appurtenant to land that the owner may irrigate with effluent pursuant to section 45-452, subsection J k.
I. For the purposes of this section, "land to which the right is appurtenant" means the acre or group of contiguous acres conveyed with an irrigation grandfathered right.
Sec. 4. Section 45-473, Arizona Revised Statutes, is amended to read:
45-473. Conveyance of type 1 non-irrigation grandfathered right; use by new owner; appurtenancy; within service area; outside service area; definition
A. The owner of a type 1 non-irrigation grandfathered right may convey the right only for a non-irrigation use and only with the land to which it is appurtenant. For the purposes of this section, a type 1 non-irrigation grandfathered right means a non-irrigation grandfathered right associated with retired irrigated land pursuant to section 45-463 or 45-469 or an irrigation grandfathered right which that was conveyed for a non-irrigation use pursuant to section 45-472.
B. If a type 1 non-irrigation grandfathered right is conveyed, the full amount of the right is conveyed.
C. If the land to which a type 1 non-irrigation grandfathered right is appurtenant is within the exterior boundaries of the service area of a city, town or private water company, the amount of groundwater conveyed pursuant to the right may be withdrawn by the new owner of the right only from the land to which the right is appurtenant subject to subsection F of this section. The groundwater may be used on the land to which the right is appurtenant, but may not be used on other land unless the use on other land was commenced prior to before the date of the designation of the active management area or was commenced by the original owner of the right pursuant to a development plan filed with the director prior to before the inclusion of the land within the exterior boundaries of the service area of the city, town or private water company.
D. If the land to which the type 1 non-irrigation grandfathered right is appurtenant is outside of the exterior boundaries of the service area of a city, town or private water company, the amount of groundwater conveyed pursuant to the right may be withdrawn by the new owner of the right only from the land to which the right is appurtenant and used on that land or on any other land, subject to section 45-473.01 and to the provisions of articles 8 and 8.1 of this chapter relating to transportation of groundwater, and to subsection F of this section. If any portion of the amount of groundwater conveyed is withdrawn by the new owner and used on other land, no additional groundwater may be withdrawn for use on the land to which the right is appurtenant, except that, if the new owner is an industry, it may withdraw a portion of the amount of groundwater conveyed for use on other land and withdraw the remainder of the amount of groundwater conveyed for municipal and industrial use on the land to which the right is appurtenant for purposes directly related to the industry's industrial operation.
E. If groundwater was delivered by an irrigation district to the previous owner of a type 1 non-irrigation grandfathered right, the irrigation district may continue to deliver groundwater pursuant to the right to the new owner of the right.
F. The new owner of a type 1 non-irrigation grandfathered right pursuant to section 45-463 or 45-469 shall not withdraw or use groundwater pursuant to the portion of the type 1 non-irrigation grandfathered right that is appurtenant to land which that the new owner may irrigate with effluent under section 45-452, subsection J K.
G. For the purposes of this section, "land to which the right is appurtenant" means the acre or group of contiguous acres conveyed with a type 1 non-irrigation grandfathered right.
Sec. 5. Section 45-512, Arizona Revised Statutes, is amended to read:
45-512. Categories of groundwater withdrawal permits
Except as provided in section 45-452, subsection H i, section 45-513, subsection B and articles 5 and 6 of this chapter, a person may not withdraw groundwater from a nonexempt well in an active management area unless the person obtains a groundwater withdrawal permit from the director pursuant to this article. The categories of groundwater withdrawal permits are as follows:
1. Dewatering permits issued pursuant to section 45-513.
2. Mineral extraction and metallurgical processing permits issued pursuant to section 45-514.
3. General industrial use permits issued pursuant to section 45-515.
4. Poor quality groundwater permits issued pursuant to section 45-516.
5. Temporary permits issued pursuant to sections 45-517 and 45-518.
6. Drainage water permits issued pursuant to section 45-519.
7. Hydrologic testing permits issued pursuant to section 45-519.01.
Sec. 6. Retroactivity
This act applies retroactively to from and after August 29, 2022.
