ArizonaSB 1611Fifty-seventh Legislature - First Regular SessionSenateWALLET

physical availability exemption credit; groundwater

Sponsored By: Thomas "T.J." Shope (Republican)

Signed by Governor

adwr (see also: department of water resources)assured water supplyauthoritycertificates of assured water supply (h)cities and towns - title 9definitiondefinitionsdelayed repealdepartment of water resources (adwr)districtduties and powersestablishmentexceptionexemptiongroundwatergroundwater savings creditgroundwater savings creditsgroundwater savings programinitial active management areairrigation grandfathered rightslandscaping requirementslegislative findingslegislative intentpermanent relinquishmentphoenix active management area (h)physical availabilityphysical availability exemption creditphysical availability exemption creditspinal active management areaprohibitionrepealingreplenishmentreportrequirementsrulemakingrulesspecial taxing districts - title 48statewide concernturf and plant installationwaters - title 45

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

New reserve targets for groundwater replenishment

The district must set a separate groundwater replenishment reserve target for each of its three active management areas. It totals eligible projected replenishment obligations for the 20 years after the plan is submitted, divides by 20, then multiplies by five. Certain resolution costs and category 2 member-land costs are excluded. Any account balance above the target on the amendment’s effective date stays in the account.

More flexible water rules for projects

Land sales for developments with certain mineral-processing or industrial-use permits are covered by an exemption from assured-water-supply requirements. When reviewing an assured-water-supply application, the state water director may accept required construction assurances as proof of financial ability to build needed water facilities. This does not guarantee approval or remove other application requirements.

Subdivision rules protect planned homebuilding

For covered subdivisions using groundwater savings credits, municipalities cannot require a school site unless they provide enough qualifying water and do not make the applicant pay for it. In initial active management areas, several landscaping rules are limited, including minimum turf and some tree, shrub, and ground-cover requirements. Required active open space cannot exceed the greater of 10% of the subdivision or the area needed for retention, and right-of-way landscaping cannot exceed 20% of its cross section. After zoning approval, municipalities cannot increase lot sizes or reduce the number of lots, or enlarge rights-of-way to add landscaping beyond the size required when the law took effect.

Groundwater credits for eligible landowners

Eligible owners in the Phoenix or Pinal area can give up an irrigation right for groundwater savings credits. The land must have been legally irrigated in 3 of the past 5 years, and owners must meet reporting and other requirements. Credits are 150 acre-feet per acre in Phoenix or 100 in Pinal, capped by past water use. Owners can apply to restore a relinquished right only when its credits have not been pledged. The director must decide by December 31, 2033 whether to extend the program in each area; new credits generally stop January 1, 2036, but an area may get a 10-year extension.

New limits on turf and water features

Through December 31, 2035, covered providers and community associations cannot use certain groundwater or stored water for nonqualifying turf, water parks, or decorative water features on relinquished acres or within 1 mile. Community associations also cannot require that turf or require those features to be installed, filled, or refilled. In initial active management areas, municipalities cannot require minimum turf or plants missing from the current low-water-use plant list. Qualifying public-use turf is excepted, but subdivision stormwater areas do not qualify for that exception.

Water credits ease some supply reviews

Certain water tied to groundwater savings credits does not have to pass one physical-availability test for some assured-water-supply applications. For a designation or change, the application must be filed within 2 years after credits are issued and meet service-area rules. For a certificate, the proposed use must be on the relinquished acres or within 1 mile. The water must serve the use for 100 years and meet the applicable depth limits: 1,000 feet in Phoenix or 1,100 feet in Pinal, or a lower water-level limit. Pinal reviews also exclude qualifying recovered water from a specified calculation. Applicants may use pledged credits for certificate applications filed by December 31, 2030, but not for applications filed starting January 1, 2031. Other supply rules still apply, and the exemption ends after December 31, 2035.

Sponsors & Cosponsors

Sponsor

  • Thomas "T.J." Shope

    Republican • Senate

Cosponsors

  • Warren Petersen

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 65 • No: 27

Senate vote • 6/23/2025

THIRD: Passed

Yes: 35 • No: 20

Senate vote • 6/19/2025

THIRD: Passed

Yes: 26 • No: 4

Senate vote • 2/18/2025

DP

Yes: 4 • No: 3

Actions Timeline

  1. Third Reading: Passed

    6/23/2025Senate
  2. Third Reading: Passed

    6/19/2025Senate
  3. Committee of the Whole: do pass amended

    6/19/2025Senate
  4. undefined: PFC

    2/24/2025Senate
  5. undefined: DP

    2/18/2025Senate

Bill Text

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