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CENTRAL ARIZONA PROJECTPublic Policy CommitteeMarch 7, 2019 9:00 AM
Central Arizona Project23636 N. 7th StreetPhoenix, ArizonaBoard Room
FINAL AGENDATimes shown are approximate. Some items may take more or less time than scheduled, or the President
may grant requests to hear items in an order other than shown.
1. Consideration of Action to Approve the Minutes of the February 7, 2019 Public Policy Committee Cesare
2. Report on State Issues that Could Affect CAP and Possible Consideration of a Recommendation thatthe Board Take Action on State Issues that Could Impact CAP including but not limited to HB2586 (Leadership and Public Trust: Relationships Other Stakeholders^) Gray
3. Report on Federal Issues that Could Affect CAP and Possible Consideration of a Recommendationthat the Board Take Action on Federal Issues that Could Impact CAP (Leadership and Public Trust:Relationships Other Stakeholders^) Gray
4. Public Comment5. Adjourn
^ Linkage to 2016 CAWCD Board of Directors Strategic Plan.
CENTRAL ARIZONA WATER CONSERVATION DISTRICT
Public Policy Committee February 7, 2019
A special meeting of the Public Policy Committee ("Committee") of the Central Arizona Water Conservation District’s ("CAP" or "CAWCD") Board of Directors was called to order by Chairwoman Karen Cesare on February 7, 2019 at 9:12 a.m. The meeting was held at the Central Arizona Project, 23636 North Seventh Street, Phoenix, Arizona, in the Board Room Committee members present were Karen Cesare, Pima County; Lisa Atkins, Maricopa County; Jim Hartdegen, Pinal County; and Heather Macre, Maricopa County,
Staff members present were Ted Cooke, General Manager, Jay Johnson, General Counsel; Bridget Schwartz-Manock, Director of Public Affairs; Jeff Gray, Legislative Affairs Manager; Jennifer Miller, Board Support Specialist; and Jessika Rodriguez, Executive Secretary.
1. CONSIDERATION OF ACTION TO APPROVE THE MINUTES OF THE JANUARY 3, 2019
PUBLIC POLICY COMMITTEE AND THE JANUARY 24, 2019 SPECIAL PUBLIC POLICY COMMITTEE - CESARE On a motion (Board Member Macre) and second (Board Member Hartdegen), approved the minutes of the January 3, 2019 Committee meeting and the January 24, 2019 Special Committee meeting.
Voting yes: Cesare, Atkins, Hartdegen, Macre
2. REPORT ON STATE ISSUES THAT COULD AFFECT CAP AND POSSIBLE CONSIDERATION OF A RECOMMENDATION THAT THE BOARD TAKE ACTION ON STATE ISSUES THAT COULD IMPACT CAP (LEADERSHIP AND PUBLIC TRUST: RELATIONSHIPS - OTHER STAKEHOLDERS^) - GRAY
Mr. Gray, Legislative Affairs Manager, provided an overview of the Governor’s State of the State address, a timeline for the release of the Executive Budget and the upcoming legislative session.
Mr. Gray discussed the Governors FY2020 budget requesting $65.914M for ADWR, which includes a $37M increase for the Drought Contingency Plan (DCP). He said $250k is requested for the Arizona Water Protection Fund.
Mr. Gray reported on the status of the following bills:
• HB2013 - $1M appropriation to the Arizona Water Protection Fund • SB1227 / HB2545 –Authorization for the AWBA to exchange existing LTSCs between
AMAs; LTSC transfer fee waiver. Limited repeal of “WaterBUD.” General Fund appropriation of $7 million; $2M from ADWR DCP funds; repurposing Pinal withdrawal fee for groundwater infrastructure in Pinal AMA; General Fund appropriation of $30 million; ADWR authority to act as
Public Policy Committee February 7, 2019 Page 2
the fiscal agent for NGO contributions. $2M from ADWR DCP funds to the Augmentation and Conservation Assistance Fund at ADWR for conservation grants in AMAs for conservation of groundwater. ADWR report to Legislature on DCP agreements.
• SJR1001/ HJR2002 – Resolution to authorize the ADWR Director to sign the Interstate DCP Agreements on behalf of the state of Arizona with specific stipulations.
Mr. Gray presented on the following bills:
• HB2434, introduced by State Representative Cobb. The bill allows for an irrigation and water conservation district located in a county that has formed a county water authority is prohibited from transferring fourth priority Colorado River water that is subject to the Boulder Canyon Project Act to a location outside the counties in Arizona that border the Colorado River.
• HB2468, also introduced by State Representative Cobb. This bill is a requirement of ADWR to adopt an emergency rule to implement policies to provide for the review and advice of the Director on any negotiation or contract that affects the allocation and use of main stream Colorado River water or the allocation and use of Colorado River water delivered through the Central Arizona Project.
• HB2586, introduced by State Representative Cook. This addresses assured water supply issues in Pinal County, as well as makes changes to statutes related to the CAGRD.
• SB1541, introduced by State Representative Borrelli. This bill allows for an irrigation and water conservation district established in a county with more than 200,000 persons and that has a Colorado River boundary, defines land or real property as all real property regardless of use or designation and applies to instances in which holding ownership or evidence of title is required for: voting or holding office in a District; or signing a formation, dissolution, boundary change or recall petition or any other District function.
3. REPORT ON FEDERAL ISSUES THAT COULD AFFECT CAP AND POSSIBLE CONSIDERATION OF A RECOMMENDATION THAT THE BOARD TAKE ACTION ON FEDERAL ISSUES THAT COULD IMPACT CAP (LEADERSHIP AND PUBLIC TRUST: RELATIONSHIPS - OTHER STAKEHOLDERS^) - GRAY Mr. Gray gave an overview of the newly appointed committees, highlighting the position of members of Arizona’s congressional delegation. He discussed the impact of the Federal shutdown and the temporary agreement to fund the Federal Government until February 15.
Mr. Gray provided a summary of S.47, Natural Resources Management Act, and also provided an update on the timing of Federal rulemaking relating to the Waters of the US (WOTUS).
Chairwoman Cesare mentioned DCP requires congressional approval and requested the status.
Mr. Cooke advised Chairwoman Cesare, and members of the committee, that there have been discussions with the seven basin states, including the Bureau of Reclamation, relating to timing and a possible letter to congressional offices.
Public Policy Committee February 7, 2019 Page 3
4. PUBLIC COMMENT No Public Comment.
5. ADJOURN There being no further business to come before the Committee, the meeting adjourned at 9:35 am. _____________________________________ Karen Cesare Chair
623-869-2333 | From Tucson 520-579-0046 | Fax 623-869-2332 | CentralArizonaProject.com
Agenda Number 2.
CONTACT: Bridget [email protected]
Jeff [email protected]
MEETING DATE: Thursday, March 7, 2019
AGENDA ITEM: Report on State Issues that Could Affect CAP and Possible Consideration of a Recommendation that the Board Take Action on State Issues that Could Impact CAP including but not limited to HB 2586 (Leadership and Public Trust: Relationships - Other Stakeholders^) - Gray
RECOMMENDATION: See attached document and proposed staff recommendations.
FISCAL IMPLICATIONS: No
Impact on Budget: None
Additional spending authority requested: None
Impact on Reserves: None
Impact on Rates: None
LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: CAWCD 2016 Board of Directors Strategic Plan
• Leadership & Public Trust: Relationships – Improve relationships with customers and stakeholders• Leadership & Public Trust: CAP Board Leadership – Equip Board members to effectively represent CAP and its positions• Water Supply: Optimize reliability and sustainability of CAP water supply
PREVIOUS BOARD ACTION/ACTIVITY:November 1, 2018 Public Policy Committee previewed and discussed the draft proposed 2019 State
Legislative Agenda.December 6, 2018 Board adopted 2019 State Legislative Agenda.January 3, 2019 Board adopted a position of support for HB 2013 (Appropriation; Arizona Water
Protection Fun)January 24, 2019 Board adopted a position of support on the DCP Joint Resolution. February 7, 2019 Public Policy Committee discussed 2019 Legislative issues.
ISSUE SUMMARY/DESCRIPTION:This report describes CAP's State Legislative Agenda and provides an update on those issues. In addition, this update reports on and requests guidance on bills being considered by the State Legislature.
See attached documents and issue description.
SUGGESTED MOTION:I move that the Board adopt a position on the following pending state legislation of interest to CAP: (staff recommendation in parenthesis) HB 2586 water supplies; groundwater replenishment credits (MONITOR)
ATTACHMENTS:1. State-Legislative-Issues-Update2. State PowerPoint Meeting March 73. H.2586 NATURAL RESOURCES ENERGY WATER
Legislative Affairswww.CentralArizonaProject.com623-869-2425
[1]
February 27, 2019
State UpdateFebruary 27 marks the 45th day of the legislative session. There were a total of 1,289 bills and 96 memorials/resolutions introduced by respective deadlines in each house (this number will rise slightly once budget bills are introduced later in session). To date, the Governor has signed 6 and vetoed 1. The last day for bills to be heard in committee in their house of origin was February 22, except for bills that have also been assigned to the Appropriations committees, which get one additional week. As is custom, non-Appropriations committee hearings are cancelled the week after committee hearing deadlines (“change-over” week) to allow the House and Senate to process bills through Caucus, Committee of the Whole (COW), and 3rd Read. This usually results in long floor sessions given the large volume of bills. Committee hearings for bills in opposite houses will likely resume as soon as March 4.
There has been little public movement on the state budget to date. With the passage of the DCP legislative package, attention at the Legislature has turned to other issues such as tax conformity, regulation of the “car-sharing” industry, charter schools and education funding.
The following State Legislative Issues Update outlines the status of the Board-approved 2019 Legislative Agenda, as well as other relevant state issues. Legislative Affairs staff comes before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed legislation and rules that may arise during the year.
Central Arizona Project Authorities and OperationsCAP Position: Monitor legislative and regulatory efforts that could impact CAP’s contractual authorities or directly impact CAP water supplies and operations.
No update to report at this time.
Colorado River Water SupplyCAP Position: Support the Lower Basin Drought Contingency Plan (DCP), including state legislative authorization for the Arizona Department of Water Resources to enter into the DCP agreements with other necessary Arizona and interstate parties. Continue to cooperate with Federal, State, Tribal and other stakeholders to support conservation efforts that protect water elevations in Lake Mead.
Legislative Affairswww.CentralArizonaProject.com623-869-2425
[2]
HB2590 groundwater irrigation efficiency fund; appropriation (s/e amendment) – Rep. Cook• Appropriates $20M from the state general fund in fiscal year 2019-2020 to the temporary
Groundwater and Irrigation Efficiency Projects Fund at ADWR. All monies unencumbered on Dec. 31, 2021 revert to the state general fund.
Passed House NREW on Feb 19, but failed to pass House Appropriations on Feb 25.
Arizona Water ResourcesCAP Position: Continue to collaborate with elected officials and stakeholders on efforts to address in-state and interstate water resources issues. Monitor legislative efforts that encourage in-state water conservation and augmentation activities.
No update to report at this time.
Multi-Species Conservation Program (MSCP) FundingCAP Position: Support the Arizona Game and Fish Department's efforts to collect and maintain revenues sufficient to continue its annual contribution toward the costs of the MSCP. Monitor legislative and executive proposals that impact dedicated annual state funding of the MSCP.
No update to report at this time.
Funding of State Water Agencies and CommissionsCAP Position: Support the efforts of the Arizona Department of Water Resources and the Arizona Water Protection Fund Commission to secure sufficient state General Fund appropriations in order to carry out statutory functions. Monitor legislative actions that propose to use funds available to the Arizona Water Banking Authority Commission for other purposes.
HB2013 appropriation; Arizona water protection fund would appropriate $1,000,000 to the Arizona Water Protection Fund in FY 2020.The bill passed the House by a vote of 60-0 on Feb 11 and was assigned to Senate Appropriations, and Water & Agriculture Committees. CAP Position: SUPPORT
Legislative Affairswww.CentralArizonaProject.com623-869-2425
[3]
Central Arizona Groundwater Replenishment District (CAGRD)CAP Position: Monitor any proposed CAGRD-related legislation to ensure its operations are not adversely impacted. Promote awareness of CAGRD’s statutory functions, operations, and funding to inform lawmakers of its critical contribution to Arizona’s water management and economic development.
Four bills were introduced that would have had a direct or indirect impact to the CAGRD. Three of the four were not heard in committee by the deadline and the fourth has since been amended to remove most of the CAGRD-related provisions.HB2586 water supplies; groundwater replenishment; credits (s/e amendment) – Rep. Cook The bill provides for extension of an Assured Water Supply (AWS) analysis in the Pinal AMA if
certain conditions are met, as well as outlines new factors to be considered in the AWS model. As introduced, the bill also contained a number of CAGRD-related provisions. A strike-everything amendment was adopted in House Natural Resources, Energy and Water on Feb 19 retaining the Pinal AMA section of the bill and removing all but one CAGRD provision to clarify the 100-year reserve target calculation.
CAP Recommended Position on HB2586: MONITOR.
Bills not heard in committee by deadline:
HB2434 Colorado river transfer; limitation – Rep. Cobb Prohibits an irrigation and water conservation district located in a county that has formed a
county water authority from transferring fourth priority Colorado River water that is subject to the Boulder Canyon Project Act to a location outside the counties in Arizona that border the Colorado River.
HB2468 Colorado river transfer; emergency rulemaking – Rep. Cobb Requires ADWR to adopt an emergency rule to implement policies to provide for the review
and advice of the Director on any negotiation or contract that affects the allocation and use of main stream Colorado River water or the allocation and use of Colorado River water delivered through the Central Arizona Project.
SB1541 irrigation districts; qualified electors; definitions – Sen. Borrelli For an irrigation and water conservation district established in a county with more than
200,000 persons and that has a Colorado River boundary, defines land or real property as all real property regardless of use or designation and applies to instances in which holding ownership or evidence of title is required for: voting or holding office in a District; or signing a formation, dissolution, boundary change or recall petition or any other District function.
Legislative Affairswww.CentralArizonaProject.com623-869-2425
[4]
Agency RulemakingCAP Position: Continue to monitor state rulemaking and implementation related to energy, air quality, water quality and other issues that may affect CAP operations.
No update to report at this time.
If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Legislative Affairs at 623-869-2425.
1
State Legislative Update
Public Policy CommitteeMarch 7, 2019
Jeff GrayLegislative Affairs Manager
State Update
• 1,289 bills and 96 memorials/resolutions introduced by deadline.
• The last day for bills to be heard in committee in their house of origin was February 22, except for bills that have also been assigned to the Appropriations committees, which get one additional week.
• House and Senate are processing bills through Committee of the Whole (COW) and 3rd Read.
• Committee hearings for bills in opposite houses may begin as soon as March 4.
2
Arizona Water Protection Fund
• Rep. Gail Griffin introduced HB2013, a bill that would appropriate $1,000,000 to the Fund.
• HB2013 passed the House by a vote of 60-0 on Feb 11 and was assigned to Senate Appropriations, and Water & Agriculture.
• CAP Position: SUPPORT
Colorado River Water Supply► Support the Lower Basin Drought Contingency Plan (DCP), including state legislative authorization for the Arizona Department of Water Resources to enter into the DCP agreements with other necessary Arizona and interstate parties. ► Continue to cooperate with Federal, State, Tribal and other stakeholders to support conservation efforts that protect water elevations in Lake Mead.
HB2590 groundwater irrigation efficiency fund; appropriation (s/e amendment) – Rep. Cook• Appropriates $20M from the state general fund in fiscal year
2019-2020 to the temporary Groundwater and Irrigation Efficiency Projects Fund at ADWR. All monies unencumbered on Dec. 31, 2021 revert to the state general fund.
Passed House NREW on Feb 19, but failed to pass House Appropriations on Feb 25.
3
Central Arizona Groundwater Replenishment District (CAGRD)
► Monitor any proposed CAGRD-related legislation to ensure its operations are not adversely impacted. ► Promote awareness of CAGRD’s statutory functions, operations, and funding to inform lawmakers of its critical contribution to Arizona’s water management and economic development.
HB2586 water supplies; groundwater replenishment; credits(s/e amendment) – Rep. Cook• The bill provides for extension of an Assured Water Supply
(AWS) analysis in the Pinal AMA if certain conditions are met, as well as outlines new factors to be considered in the AWS model.
• As introduced, the bill also contained a number of CAGRD-related provisions. A strike-everything amendment was adopted to the bill in House Natural Resources, Energy and Water on Feb 19 leaving the Pinal AMA section of the bill and removing all but one CAGRD provision to clarify the 100yr reserve target calculation.
CAP Recommended Position on HB2586: MONITOR.
Central Arizona Groundwater Replenishment District (CAGRD)
► Monitor any proposed CAGRD-related legislation to ensure its operations are not adversely impacted. ► Promote awareness of CAGRD’s statutory functions, operations, and funding to inform lawmakers of its critical contribution to Arizona’s water management and economic development.
Not heard in committee by deadline
• HB2434 Colorado river transfer; limitation (Rep. Cobb)
• HB2468 Colorado river transfer; emergency rulemaking (Rep. Cobb)
• SB1541 irrigation districts; qualified electors; definitions (Sen. Borrelli)
4
Other Bills
HB2111 s/e water adequacy provision; rescission• Status: Passed House Caucus Feb 25
HB2467 s/e committees; west basin water users• Status: Passed House NREW Feb 19
HB2475 water use; criminal penalty; wells• Status: Passed House Caucus Feb 25
HB2476 surface water forfeiture; repeal• Held in House NREW Feb 19
HB2477 adjudication statutes; unconstitutional provisions; repeal• Status: Passed House Caucus Feb 25
HB2609 Harquahala non-expansion area; groundwater transfer• Status: Passed House Caucus Feb 25
HCM2004 reserved water rights; exclusion• Status: Passed House Caucus Feb 25
HCR2001 s/e Navajo generating station• Status: Passed House Caucus Feb 26
HCR2019 s/e support; water management policies• Status: Passed House Caucus Feb 25
KNOWYOURWATER
Questions?CentralArizonaProject.com ~ CAGRD.com
Fifty-fourth Legislature First Regular Session
COMMITTEE ON NATURAL RESOURCES, ENERGY & WATER
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2586
(Reference to printed bill)
Strike everything after the enacting clause and insert: 1
"Section 1. Section 45-576, Arizona Revised Statutes, is amended to 2
read: 3
45-576. Certificate of assured water supply; designated 4
cities, towns and private water companies; 5
exemptions; definition 6
A. Except as provided in subsections G and J of this section, a 7
person who proposes to offer subdivided lands, as defined in section 8
32-2101, for sale or lease in an active management area shall apply for and 9
obtain a certificate of assured water supply from the director prior to 10
BEFORE presenting the plat for approval to the city, town or county in 11
which the land is located, where such is required, and prior to BEFORE 12
filing with the state real estate commissioner a notice of intention to 13
offer such lands for sale or lease, pursuant to section 32-2181, unless the 14
subdivider has obtained a written commitment of water service for the 15
subdivision from a city, town or private water company designated as having 16
an assured water supply pursuant to this section. 17
B. Except as provided in subsections G and J of this section, a 18
city, town or county may approve a subdivision plat only if the subdivider 19
has obtained a certificate of assured water supply from the director or the 20
subdivider has obtained a written commitment of water service for the 21
subdivision from a city, town or private water company designated as having 22
an assured water supply pursuant to this section. The city, town or county 23
House Amendments to H.B. 2586
-2-
shall note on the face of the approved plat that a certificate of assured 1
water supply has been submitted with the plat or that the subdivider has 2
obtained a written commitment of water service for the proposed subdivision 3
from a city, town or private water company designated as having an assured 4
water supply pursuant to this section. 5
C. Except as provided in subsections G and J of this section, the 6
state real estate commissioner may issue a public report authorizing the 7
sale or lease of subdivided lands only on compliance with either of the 8
following: 9
1. The subdivider, owner or agent has paid any activation fee 10
required under section 48-3772, subsection A, paragraph 7 and any 11
replenishment reserve fee required under section 48-3774.01, subsection A, 12
paragraph 2 and has obtained a certificate of assured water supply from the 13
director. 14
2. The subdivider has obtained a written commitment of water service 15
for the lands from a city, town or private water company designated as 16
having an assured water supply pursuant to this section and the subdivider, 17
owner or agent has paid any activation fee required under section 48-3772, 18
subsection A, paragraph 7. 19
D. The director shall designate private water companies in active 20
management areas that have an assured water supply. If a city or town 21
acquires a private water company that has contracted for central Arizona 22
project water, the city or town shall assume the private water company's 23
contract for central Arizona project water. 24
E. The director shall designate cities and towns in active 25
management areas where an assured water supply exists. If a city or town 26
has entered into a contract for central Arizona project water, the city or 27
town is deemed to continue to have an assured water supply until December 28
31, 1997. Commencing on January 1, 1998, the determination that the city 29
or town has an assured water supply is subject to review by the director 30
and the director may determine that a city or town does not have an assured 31
water supply. 32
House Amendments to H.B. 2586
-3-
F. The director shall notify the mayors of all cities and towns in 1
active management areas and the chairmen of the boards of supervisors of 2
counties in which active management areas are located of the cities, towns 3
and private water companies designated as having an assured water supply 4
and any modification of that designation within thirty days of the 5
designation or modification. If the service area of the city, town or 6
private water company has qualified as a member service area pursuant to 7
title 48, chapter 22, article 4, the director shall also notify the 8
conservation district of the designation or modification and shall report 9
the projected average annual replenishment obligation for the member 10
service area based on the projected and committed average annual demand for 11
water within the service area during the effective term of the designation 12
or modification subject to any limitation in an agreement between the 13
conservation district and the city, town or private water company. For 14
each city, town or private water company that qualified as a member service 15
area under title 48, chapter 22 and was designated as having an assured 16
water supply before January 1, 2004, the director shall report to the 17
conservation district on or before January 1, 2005 the projected average 18
annual replenishment obligation based on the projected and committed 19
average annual demand for water within the service area during the 20
effective term of the designation subject to any limitation in an agreement 21
between the conservation district and the city, town or private water 22
company. Persons proposing to offer subdivided lands served by those 23
designated cities, towns and private water companies for sale or lease are 24
exempt from applying for and obtaining a certificate of assured water 25
supply. 26
G. This section does not apply in the case of the sale of lands for 27
developments that are subject to a mineral extraction and processing permit 28
or an industrial use permit pursuant to sections 45-514 and 45-515. 29
H. The director shall adopt rules to carry out the purposes of this 30
section. On or before January 1, 2008, the rules shall provide for a 31
reduction in water demand for an application for a designation of assured 32
House Amendments to H.B. 2586
-4-
water supply or a certificate of assured water supply if a gray water reuse 1
system will be installed that meets the requirements of the rules adopted 2
by the department of environmental quality for gray water systems and if 3
the application is for a certificate of assured water supply, the land for 4
which the certificate is sought must qualify as a member land in a 5
conservation district pursuant to title 48, chapter 22, article 4. For the 6
purposes of this subsection, "gray water" has the same meaning prescribed 7
in section 49-201. 8
I. If the director designates a municipal provider as having an 9
assured water supply under this section and the designation lapses or 10
otherwise terminates while the municipal provider's service area is a 11
member service area of a conservation district, the municipal provider or 12
its successor shall continue to comply with the consistency with management 13
goal requirements in the rules adopted by the director under subsection H 14
of this section as if the designation was still in effect with respect to 15
the municipal provider's designation uses. When determining compliance by 16
the municipal provider or its successor with the consistency with 17
management goal requirements in the rules, the director shall consider only 18
water delivered by the municipal provider or its successor to the municipal 19
provider's designation uses. A person is the successor of a municipal 20
provider if the person commences water service to uses that were previously 21
designation uses of the municipal provider. Any groundwater delivered by 22
the municipal provider or its successor to the municipal provider's 23
designation uses in excess of the amount allowed under the consistency with 24
management goal requirements in the rules shall be considered excess 25
groundwater for purposes of title 48, chapter 22. For the purposes of this 26
subsection, "designation uses" means all water uses served by a municipal 27
provider on the date the municipal provider's designation of assured water 28
supply lapses or otherwise terminates and all recorded lots within the 29
municipal provider's service area that were not being served by the 30
municipal provider on that date but that received final plat approval from 31
a city, town or county on or before that date. Designation uses do not 32
House Amendments to H.B. 2586
-5-
include industrial uses served by an irrigation district under section 1
45-497. 2
J. Subsections A, B and C of this section do not apply to a person 3
who proposes to offer subdivided land for sale or lease in an active 4
management area if all the following apply: 5
1. The director issued a certificate of assured water supply for the 6
land to a previous owner of the land and the certificate was classified as 7
a type a certificate under rules adopted by the director pursuant to 8
subsection H of this section. 9
2. The director has not revoked the certificate of assured water 10
supply described in paragraph 1 of this subsection, and proceedings to 11
revoke the certificate are not pending before the department or a court. 12
The department shall post on its website a list of all certificates of 13
assured water supply that have been revoked or for which proceedings are 14
pending before the department or a court. 15
3. The plat submitted to the department in the application for the 16
certificate of assured water supply described in paragraph 1 of this 17
subsection has not changed. 18
4. Water service is currently available to each lot within the 19
subdivided land and the water provider listed on the certificate of assured 20
water supply described in paragraph 1 of this subsection has not changed. 21
5. The subdivided land qualifies as a member land under title 48, 22
chapter 22 and the subdivider has paid any activation fee required under 23
section 48-3772, subsection A, paragraph 7 and any replenishment reserve 24
fee required under section 48-3774.01, subsection A, paragraph 2. 25
6. The plat is submitted for approval to a city, town or county that 26
is listed on the department's website as a qualified platting authority. 27
K. Subsection J of this section does not affect the assignment of a 28
certificate of assured water supply as prescribed by section 45-579. 29
L. FOR LAND LOCATED IN THE PINAL ACTIVE MANAGEMENT AREA, THE INITIAL 30
TERM OF AN ANALYSIS OF ASSURED WATER SUPPLY ISSUED BY THE DIRECTOR IS TEN 31
YEARS. A HOLDER OF AN ANALYSIS OF ASSURED WATER SUPPLY PERTAINING TO LAND 32
House Amendments to H.B. 2586
-6-
LOCATED IN THE PINAL ACTIVE MANAGEMENT AREA MAY APPLY TO EXTEND THE 1
ANALYSIS BEFORE THE EXPIRATION DATE OF THE ANALYSIS. EXCEPT AS PROVIDED IN 2
SUBSECTION M OF THIS SECTION, THE DIRECTOR SHALL EXTEND THE ANALYSIS FOR AN 3
ADDITIONAL FIVE YEARS IF MATERIAL PROGRESS IN THE DEVELOPMENT OF THE LAND 4
DESCRIBED IN THE ANALYSIS HAS OCCURRED AT ANY TIME DURING THE CURRENT 5
ANALYSIS PERIOD. EACH ANALYSIS EXTENSION COMMENCES ON THE DATE THE 6
ANALYSIS OF ASSURED WATER SUPPLY WOULD HAVE OTHERWISE EXPIRED. FOR ANY 7
ANALYSIS UNDER THIS SUBSECTION: 8
1. FOR THE FIRST AND SECOND RENEWAL TERMS, THE DIRECTOR SHALL ACCEPT 9
ANY ONE OF THE FOLLOWING ACTIONS AS CONSTITUTING MATERIAL PROGRESS IN THE 10
DEVELOPMENT OF LAND, AND FOR THE THIRD AND LATER RENEWAL TERMS, THE 11
DIRECTOR SHALL ACCEPT ANY TWO OF THE FOLLOWING ACTIONS AS CONSTITUTING 12
MATERIAL PROGRESS IN THE DEVELOPMENT OF LAND: 13
(a) A CITY, TOWN OR COUNTY HAVING JURISDICTION HAS APPROVED THE 14
ZONING FOR OR ISSUED A USE PERMIT FOR THE LAND DESCRIBED IN THE ANALYSIS. 15
(b) A CITY, TOWN OR COUNTY HAVING JURISDICTION HAS APPROVED A MAJOR 16
AMENDMENT TO A ZONING OR USE APPROVAL FOR THE LAND DESCRIBED IN THE 17
ANALYSIS. A MAJOR AMENDMENT TO A ZONING APPROVAL IS AN AMENDMENT THAT 18
REQUIRES A HEARING AND NOTICE OF HEARING PURSUANT TO SECTION 9-462.04, 19
SUBSECTION A, PARAGRAPHS 4 AND 5 OR SECTION 11-813, SUBSECTION E, 20
PARAGRAPHS 1 AND 2, AS APPLICABLE. 21
(c) A PERSON OR ENTITY AND A CITY, TOWN OR COUNTY HAVING 22
JURISDICTION HAVE ENTERED INTO A DEVELOPMENT AGREEMENT PERTAINING TO THE 23
LAND DESCRIBED IN THE ANALYSIS. 24
(d) A PERSON OR ENTITY HAS INSTALLED WATER, SEWER, ROADWAY OR 25
DRAINAGE INFRASTRUCTURE TO PROVIDE SERVICE TO NOT LESS THAN A SUBSTANTIAL 26
PORTION OF THE LAND DESCRIBED IN THE ANALYSIS. 27
(e) THE DEPARTMENT OF ENVIRONMENTAL QUALITY OR A COUNTY HAVING 28
JURISDICTION HAS ISSUED AN APPROVAL TO CONSTRUCT OR APPROVAL OF 29
CONSTRUCTION FOR WATER INFRASTRUCTURE TO PROVIDE SERVICE TO NOT LESS THAN A 30
SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS. 31
House Amendments to H.B. 2586
-7-
(f) A PERSON OR ENTITY HAS INSTALLED WELLS THAT ARE ADEQUATE TO 1
SATISFY THE ESTIMATED WATER DEMAND ASSOCIATED WITH NOT LESS THAN A 2
SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS. 3
(g) A FEDERAL, STATE OR LOCAL GOVERNING BODY HAVING JURISDICTION HAS 4
ISSUED A PERMIT OR LICENSE THAT IS NECESSARY TO DEVELOP LAND AND THAT 5
APPLIES TO NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE 6
ANALYSIS. 7
(h) A PERSON OR ENTITY AND A CITY, TOWN OR PRIVATE WATER COMPANY 8
HAVE ENTERED INTO AN AGREEMENT FOR WATER SERVICE TO NOT LESS THAN A 9
SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE ANALYSIS AND THE AGREEMENT 10
INCLUDES WATER INFRASTRUCTURE CONSTRUCTION REQUIREMENTS. 11
(i) THE DEPARTMENT HAS ISSUED A CERTIFICATE OF ASSURED WATER SUPPLY 12
FOR NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN THE 13
ANALYSIS. 14
(j) A PERSON OR ENTITY HAS COMPLETED A MASTER WATER, MASTER 15
WASTEWATER OR MASTER DRAINAGE PLAN FOR NOT LESS THAN A SUBSTANTIAL PORTION 16
OF THE LAND DESCRIBED IN THE ANALYSIS AND HAS FILED THE PLAN WITH A LOCAL 17
GOVERNING BODY HAVING JURISDICTION OR WITH A PRIVATE WATER COMPANY OR 18
PRIVATE SEWER COMPANY THAT IS OBLIGATED TO PROVIDE UTILITY SERVICE TO THE 19
LAND DESCRIBED IN THE ANALYSIS. 20
(k) A PERSON OR ENTITY HAS COMPLETED ANY OF THE FOLLOWING SURVEYS OR 21
REPORTS FOR NOT LESS THAN A SUBSTANTIAL PORTION OF THE LAND DESCRIBED IN 22
THE ANALYSIS AND HAS FILED THE SURVEY OR REPORT WITH A LOCAL GOVERNING BODY 23
HAVING JURISDICTION: 24
(i) ENVIRONMENTAL STUDY. 25
(ii) ENGINEERING SURVEY. 26
(iii) ARCHEOLOGICAL SURVEY. 27
(iv) TRAFFIC IMPACT ANALYSIS. 28
(v) GEOTECHNICAL SURVEY. 29
(vi) ECONOMIC IMPACT ANALYSIS. 30
(vii) LAND SURVEY. 31
House Amendments to H.B. 2586
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2. AN APPLICANT FOR AN EXTENSION OF AN ANALYSIS MAY RELY ON THE 1
OCCURRENCE OF AN ACTION PRESCRIBED IN PARAGRAPH 1, SUBDIVISIONS (d) THROUGH 2
(k) OF THIS SUBSECTION AS PROOF OF MATERIAL PROGRESS IN THE DEVELOPMENT OF 3
THE LAND IN MULTIPLE EXTENSION APPLICATIONS IF, FOR EACH EXTENSION 4
APPLICATION, THE PRESCRIBED ACTION HAS OCCURRED FOR A DIFFERENT SUBSTANTIAL 5
PORTION OF THE LAND. 6
3. FOR THE PURPOSES OF THIS SUBSECTION: 7
(a) "CURRENT ANALYSIS PERIOD" MEANS, FOR A FIRST APPLICATION TO 8
EXTEND AN ANALYSIS, THE INITIAL TEN-YEAR ANALYSIS PERIOD AND, FOR A SECOND 9
AND ANY LATER APPLICATION TO EXTEND AN ANALYSIS, EITHER THE FIVE-YEAR 10
EXTENSION PERIOD OR THE FIFTEEN-YEAR EXTENSION PERIOD IN EFFECT AT THE TIME 11
AN APPLICANT FILES AN APPLICATION TO EXTEND THE ANALYSIS OF ASSURED WATER 12
SUPPLY. 13
(b) "SUBSTANTIAL PORTION OF THE LAND" MEANS THE LESSER OF ONE 14
HUNDRED SIXTY ACRES OR ONE-QUARTER OF THE DEVELOPABLE LAND DESCRIBED IN THE 15
ANALYSIS. 16
M. WHEN CONSIDERING AN APPLICATION TO EXTEND AN ANALYSIS OF ASSURED 17
WATER SUPPLY, THE DIRECTOR SHALL EXTEND THE ANALYSIS FOR AN ADDITIONAL 18
FIFTEEN YEARS IF BOTH OF THE FOLLOWING HAVE OCCURRED: 19
1. THE DEPARTMENT HAS ISSUED CERTIFICATES OF ASSURED WATER SUPPLY 20
FOR SUBDIVIDED LANDS FOR THE LAND DESCRIBED IN THE ANALYSIS AND EITHER THE 21
SUBDIVIDED LANDS CUMULATIVELY INCLUDE NOT LESS THAN FIFTY PERCENT OF THE 22
LAND THAT IS SUITABLE FOR DEVELOPMENT AND THAT IS DESCRIBED IN THE ANALYSIS 23
OR THE SUBDIVIDED LANDS INCLUDE A CUMULATIVE NUMBER OF RESIDENTIAL LOTS 24
THAT CONSTITUTE NOT LESS THAN FIFTY PERCENT OF THE NUMBER OF RESIDENTIAL 25
LOTS DESCRIBED IN THE ANALYSIS. 26
2. THE IMPROVED AND SOLD LOTS AT THE LAND DESCRIBED IN THE ANALYSIS 27
CUMULATIVELY INCLUDE NOT LESS THAN TWENTY-FIVE PERCENT OF THE LAND THAT IS 28
SUITABLE FOR DEVELOPMENT AND THAT IS DESCRIBED IN THE ANALYSIS OR THE 29
NUMBER OF THE IMPROVED AND SOLD RESIDENTIAL LOTS AT THE LAND DESCRIBED IN 30
THE ANALYSIS IS NOT LESS THAN TWENTY-FIVE PERCENT OF THE NUMBER OF 31
RESIDENTIAL LOTS DESCRIBED IN THE ANALYSIS. A LOT IS DEEMED TO BE IMPROVED 32
House Amendments to H.B. 2586
-9-
AND SOLD FOR THE PURPOSES OF THIS PARAGRAPH WHEN A BUILDING HAS BEEN 1
CONSTRUCTED ON THE LOT AND THE LOT HAS BEEN SOLD IN AN ARMS' LENGTH 2
TRANSACTION. 3
L. N. For the purposes of this section, "assured water supply" means 4
all of the following: 5
1. Sufficient groundwater, surface water or effluent of adequate 6
quality will be continuously available to satisfy the water needs of the 7
proposed use for at least one hundred years. Beginning January 1 of the 8
calendar year following the year in which a groundwater replenishment 9
district is required to submit its preliminary plan pursuant to section 10
45-576.02, subsection A, paragraph 1, with respect to an applicant that is 11
a member of the district, "sufficient groundwater" for the purposes of this 12
paragraph means that the proposed groundwater withdrawals that the 13
applicant will cause over a period of one hundred years will be of adequate 14
quality and will not exceed, in combination with other withdrawals from 15
land in the replenishment district, a depth to water of one thousand feet 16
or the depth of the bottom of the aquifer, whichever is less. In 17
determining depth to water for the purposes of this paragraph, the director 18
shall consider the combination of: 19
(a) The existing rate of decline PROJECTED WITHDRAWALS BY EXISTING 20
GROUNDWATER USERS, INCLUDING EXPECTED CHANGES IN FUTURE WITHDRAWAL PATTERNS 21
CAUSED BY: 22
(i) THE EXPECTED PRODUCTION, REUSE, OR RECHARGE OF EFFLUENT. 23
(ii) REASONABLY ANTICIPATED CHANGES IN AGRICULTURAL WATER USE OR 24
IRRIGATED ACREAGE, WHICH THE DIRECTOR SHALL DETERMINE IN CONSULTATION WITH 25
IRRIGATION DISTRICTS OR IRRIGATION GRANDFATHERED RIGHT HOLDERS. 26
(iii) OTHER FACTORS REASONABLY DETERMINED BY THE DIRECTOR TO AFFECT 27
FUTURE WITHDRAWALS BY EXISTING GROUNDWATER USERS. 28
(b) The proposed withdrawals. 29
(c) The expected water requirements of all recorded lots that are 30
not yet served water and that are located in the service area of a 31
municipal provider. 32
House Amendments to H.B. 2586
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(d) IF THE PROPOSED USE IS WITHIN THE PHOENIX, PINAL OR TUCSON 1
ACTIVE MANAGEMENT AREAS, THE EFFECTS OF EXPECTED GROUNDWATER REPLENISHMENT 2
BY A CONSERVATION DISTRICT UNDER TITLE 48, CHAPTER 22, ARTICLE 4 WITHIN THE 3
APPLICABLE ACTIVE MANAGEMENT AREA, EXCEPT THAT THE DIRECTOR SHALL NOT 4
CONSIDER THAT EXPECTED GROUNDWATER REPLENISHMENT WHEN BOTH OF THE FOLLOWING 5
APPLY: 6
(i) THE DIRECTOR DETERMINES WHETHER TO DESIGNATE OR MAINTAIN THE 7
DESIGNATION OF A CITY, TOWN OR PRIVATE WATER COMPANY AS HAVING AN ASSURED 8
WATER SUPPLY. 9
(ii) THE SERVICE AREA OF THAT CITY, TOWN OR PRIVATE WATER COMPANY 10
DOES NOT QUALIFY AS A MEMBER SERVICE AREA OF A CONSERVATION DISTRICT 11
PURSUANT TO TITLE 48, CHAPTER 22, ARTICLE 4. 12
2. The projected groundwater use is consistent with the management 13
plan and achievement of the management goal for the active management area. 14
3. The financial capability has been demonstrated to construct the 15
water facilities necessary to make the supply of water available for the 16
proposed use, including a delivery system and any storage facilities or 17
treatment works. The director may accept evidence of the construction 18
assurances required by section 9-463.01, 11-823 or 32-2181 to satisfy this 19
requirement. 20
Sec. 2. Section 48-3772, Arizona Revised Statutes, is amended to 21
read: 22
48-3772. Duties and powers of district regarding replenishment 23
A. The district shall: 24
1. Establish annually the costs and expenses to replenish 25
groundwater pursuant to this article with respect to all parcels of member 26
lands and all member service areas located in each active management area, 27
including capital expenses, debt service expenses, the operation, 28
maintenance, replacement and administrative costs and expenses of the 29
district, replenishment reserve costs and expenses as provided in 30
subsection E of this section and reasonable reserves. Separate 31
calculations of costs and expenses shall be made for each active management 32
House Amendments to H.B. 2586
-11-
area in which member lands or member service areas are located and for each 1
membership category. Costs and expenses attributed by the district to 2
contract replenishment obligations shall not be included in these 3
calculations. 4
2. Provide for the payment of all costs and expenses to replenish 5
groundwater pursuant to this chapter and the payment of operation, 6
maintenance, replacement and administrative costs and expenses and debt 7
service expenses of the district. 8
3. Levy an annual replenishment assessment against each parcel of 9
member land pursuant to section 48-3778 and an annual replenishment tax 10
against each municipal provider that has a member service area pursuant to 11
section 48-3781 to pay the district's costs and expenses as established 12
pursuant to paragraph 1 of this subsection. 13
4. Levy a contract replenishment tax against municipal providers 14
that are parties to contracts authorized under subsection B, paragraph 9 of 15
this section to pay the district's costs and expenses to replenish 16
groundwater based on contract replenishment obligations. 17
5. Establish and maintain reserve accounts in amounts as may be 18
deemed necessary to perform the district's obligations under this article. 19
6. Fulfill all obligations under resolutions adopted pursuant to 20
subsection B, paragraph 10 of this section. 21
7. Levy an activation fee as follows: 22
(a) For subdivisions within member lands and member service areas 23
that are enrolled before May 6, 2004 and that had not been issued a public 24
report before August 12, 2005, the district shall levy a one-time 25
activation fee against each housing unit to be constructed within the 26
subdivision. 27
(b) For subdivisions within member lands and member service areas 28
that are enrolled on or after May 6, 2004, the district shall levy a one-29
time ONETIME activation fee against each housing unit to be constructed 30
within the subdivision. 31
House Amendments to H.B. 2586
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(c) The activation fee shall be paid to the district according to 1
either of the following schedules, whichever the subdivider elects: 2
(i) Paid in full before issuance of a public report for each real 3
estate subdivision identified in subdivision (a) or (b) of this paragraph. 4
(ii) One-half paid before issuance of a public report for each real 5
estate subdivision identified in subdivision (a) or (b) of this paragraph 6
and the remaining amount paid no later than one year after the issuance of 7
the public report. The total amount of the activation fee must be the 8
amount of the activation fee in effect at the time of the initial payment. 9
Payment of the initial one-half of the activation fee pursuant to this item 10
constitutes sufficient payment of applicable fees for notice of intent to 11
subdivide as prescribed in section 32-2181, subsection C and for issuance 12
of a public report as prescribed in section 32-2183, subsection G and 13
section 45-576, subsection C, except that on failure to pay the remaining 14
amount, the commissioner shall suspend the public report for that 15
subdivision pursuant to section 32-2183. 16
(d) The activation fee shall be established annually by the 17
district. The amount of the activation fee to be paid to the district under 18
subdivision (c) of this paragraph must be the amount of the activation fee 19
in effect at the time of payment. Revenues from the activation fee 20
together with revenues from other sources that are legally available to the 21
district for those uses shall be used by the district to acquire, lease or 22
exchange water or water rights and develop infrastructure necessary for the 23
district to perform its replenishment obligations. 24
8. For any year, set all of its rates and charges associated with 25
the acquisition, lease or exchange of water or water rights and development 26
of infrastructure necessary for the district to perform its replenishment 27
obligations, other than the annual membership dues established pursuant to 28
section 48-3779, so that the total projected revenues from revenue sources 29
other than the annual membership dues, that are legally available to the 30
district in that year to pay costs associated with the acquisition, lease 31
or exchange of water or water rights and development of infrastructure 32
House Amendments to H.B. 2586
-13-
necessary for the district to perform its replenishment obligations, shall 1
be at least three times the total projected revenues from the annual 2
membership dues in that year. For the purposes of this paragraph, costs 3
associated with the acquisition, lease or exchange of water or water rights 4
do not include the annual costs associated with delivery of water for 5
replenishment purposes. 6
B. The district may: 7
1. Acquire, develop, construct, operate, maintain, replace and 8
acquire permits for water storage, storage facilities and recovery wells 9
for replenishment purposes. 10
2. Acquire, transport, hold, exchange, own, lease, store or 11
replenish water, except groundwater withdrawn from an active management 12
area, subject to the provisions of title 45, for the benefit of member 13
lands and member service areas. 14
3. Acquire, hold, exchange, own, lease, retire or dispose of water 15
rights for the benefit of member lands and member service areas. 16
4. Require municipal providers to provide such information, in such 17
form and within the time limits prescribed by the district, as may be 18
necessary to carry out the purpose of this chapter. 19
5. Levy and collect assessments, fees, charges, taxes and other 20
revenues as are provided in this chapter for the financing of replenishment 21
activities. 22
6. Contract for or perform feasibility studies of water storage, 23
storage facilities and recovery wells for replenishment purposes. 24
7. Acquire real and personal property for water storage, storage 25
facilities and recovery wells for replenishment purposes by purchase, 26
lease, donation, dedication, exchange or other lawful means. 27
8. Use any facilities and any excess storage capacity of any state 28
demonstration projects undertaken pursuant to title 45, chapter 3.1 for 29
water storage for replenishment purposes. 30
9. Subject to subsection G of this section, contract with any 31
municipal provider having a member service area to replenish groundwater on 32
House Amendments to H.B. 2586
-14-
behalf of the municipal provider and with respect to the member service 1
area in an amount in excess of the sum of the service area replenishment 2
obligations applicable to the member service area for all years in which 3
the district has not completed the replenishment of the groundwater 4
replenishment obligation for the member service area. 5
10. Adopt resolutions granting water availability status to a member 6
service area of a city, town or private water company and committing to 7
replenish a specified average annual volume of water in a location where 8
the city, town or private water company may physically access the water for 9
service to its customers, if all of the following apply: 10
(a) The district has reviewed its requirements for transportation of 11
central Arizona project water, its contracts, subcontracts, letter 12
agreements, excess water contracts, and other contractual obligations and 13
its member service area and member land requirements and has determined 14
that the district can meet those obligations and that capacity remains in 15
the central Arizona project to meet the obligations undertaken through the 16
resolution. 17
(b) The resolution acknowledges that the commitment to replenish the 18
specified average annual volume of water in the location cited in the 19
resolution shall be a permanent obligation of the district, unless one of 20
the following applies: 21
(i) A permanent substitute supply of water is found for the city, 22
town or private water company and the substitution is approved by the 23
director of water resources, thus terminating the water availability status 24
of the member service area. 25
(ii) The requirements of section 45-576.07, subsection A are not 26
met, and thus the director of water resources does not issue an order 27
granting or maintaining the city, town or private water company as having 28
an assured water supply based in whole or in part on section 45-576.07. If 29
no order is issued within two years of the district adopting the 30
resolution, the resolution may be repealed, and the district shall be 31
relieved of all obligations under the resolution. 32
House Amendments to H.B. 2586
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(c) The average annual volume of water specified in the resolution, 1
when added to the average annual volume of water specified in all other 2
resolutions adopted pursuant to this paragraph, does not exceed twenty 3
thousand acre-feet. 4
(d) The district has entered into an agreement with the city, town 5
or private water company under which the city, town or private water 6
company will hold for the district's future use, and provide to the 7
district when needed, sufficient water to meet the obligations undertaken 8
by the district through the resolution. 9
(e) The district determines that the obligations undertaken by the 10
district through the resolution will not increase annual replenishment 11
assessment rates or costs to central Arizona project contract and 12
subcontract holders and its member service areas and member lands. 13
(f) The director of water resources has found, pursuant to section 14
45-576.07, subsection H, that the district has the capability to grant 15
water availability status to member service areas. 16
11. Provide in resolutions adopted pursuant to paragraph 10 of this 17
subsection that the district may fulfill its obligations under the 18
resolution in any year by directly delivering to the city, town or private 19
water company the water that otherwise would have been replenished pursuant 20
to the resolution, if all of the following apply: 21
(a) The district has reviewed its requirements for transportation of 22
central Arizona project water, its contracts, subcontracts, letter 23
agreements, excess water contracts, and other contractual 24
obligations, AND its member service area and member land requirements and 25
has determined that the district can meet those obligations and that 26
capacity remains in the central Arizona project to make direct deliveries 27
pursuant to this paragraph. 28
(b) The district determines that the delivery will not increase 29
annual replenishment assessment rates or costs to central Arizona project 30
contract and subcontract holders, its member service area and member lands. 31
House Amendments to H.B. 2586
-16-
12. Enter into agreements with a city, town or private water company 1
that will have water made available to it through a resolution adopted 2
pursuant to paragraph 10 of this subsection and under which the city, town 3
or private water company compensates the district for the costs and fair 4
value of the water supply provided by the district. 5
13. Issue revenue bonds pursuant to article 3 of this chapter to 6
fund the costs and expenses of the district for the acquisition, lease or 7
exchange of water or water rights and the development of infrastructure 8
necessary for the district to perform its replenishment obligations subject 9
to the following: 10
(a) The principal of, interest and premiums, if any, on revenue 11
bonds issued pursuant to article 3 of this chapter to acquire, lease or 12
exchange water or water rights and develop infrastructure necessary for the 13
district to perform its replenishment obligations are not payable from any 14
revenues of the district other than revenues generated or collected 15
pursuant to this article that are legally available to the district for 16
those purposes and revenues from the investment of the proceeds of the 17
bonds. 18
(b) The district may not use the proceeds of the bonds to acquire or 19
lease: 20
(i) Groundwater, as defined in section 45-101, except as expressly 21
authorized in sections 45-547, 45-553 and 45-554. 22
(ii) Surface water, as defined in section 45-101, that is the 23
subject of a general adjudication pursuant to title 45, chapter 1, article 24
9. 25
(c) Nothing in subdivision (b) of this paragraph prohibits DOES NOT 26
PROHIBIT the district from acquiring or leasing central Arizona project 27
water. 28
14. Except as provided in section 48-3780.01, subsection B, in 29
addition to any other assessments, fees, charges or taxes levied and 30
collected under this chapter, or under any declaration, contract or 31
agreement entered into under this chapter, charge annual dues for 32
House Amendments to H.B. 2586
-17-
membership pursuant to section 48-3779 against each parcel of member land 1
and each municipal provider that has a member service area. 2
C. The functions of the district under subsection B, paragraph 1 of 3
this section may be performed on behalf of the district by other persons 4
under contract with the district. 5
D. The capital costs of the facilities of any state demonstration 6
projects used by the district pursuant to subsection B, paragraph 8 of this 7
section shall not be included in the capital costs and expenses established 8
by the district under subsection A, paragraph 1 of this section. 9
E. The district shall establish and maintain a replenishment reserve 10
as follows: 11
1. The district shall calculate a reserve target for each of the 12
three active management areas within the district and shall identify the 13
reserve target in the plan of operation prepared pursuant to section 14
45-576.02. The reserve target for each active management area shall be 15
calculated as follows: 16
(a) Establish FOR EACH ACTIVE MANAGEMENT AREA, ADD TOGETHER the 17
projected one hundred year replenishment obligation for each active 18
management area OF THE ONE HUNDRED YEARS FOLLOWING SUBMISSION OF THE PLAN 19
OF OPERATION. For the purposes of this subdivision, each active management 20
area's projected one hundred year replenishment obligation does not include 21
replenishment obligations under resolutions adopted pursuant to subsection 22
B, paragraph 10 of this section or replenishment obligations for category 2 23
member lands. 24
(b) Subtract from the SUM OF THE active management area's projected 25
one hundred year replenishment obligation OVER THE ONE HUNDRED YEAR PERIOD 26
AND the sum of the following volumes of water derived from sources 27
identified in the plan as water that the district plans to use to meet its 28
replenishment obligations for that active management area: 29
(i) The annual volume of each nondeclining, long-term municipal and 30
industrial subcontract for central Arizona project water multiplied by one 31
hundred. 32
House Amendments to H.B. 2586
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(ii) The annual volume of water under leases or contracts that can 1
be made physically and legally available to the district consistent with 2
the rules adopted pursuant to section 45-576, subsection H, multiplied by 3
the number of years, not to exceed one hundred, in which the water is to be 4
made available to the district. The water need not be continuously 5
available to be included in this item. A lease or contract shall not be 6
considered under this item if the water to be made available under the 7
lease or contract is for a term of less than twenty years. 8
(iii) The total volume of groundwater that the district plans to 9
transport to the active management area during the next one hundred years 10
as allowed by title 45, chapter 2, article 8.1. 11
(iv) The total volume of all sources of water not identified in 12
items (i), (ii) or (iii) of this subdivision that will not be held by the 13
district under a lease or contract. Volumes to be included under this item 14
must be consistent with the rules adopted by the director pursuant to 15
section 45-576, subsection H. 16
(c) Multiply the result from subdivision (b) of this paragraph by 17
twenty per cent PERCENT. The result is the reserve target for the active 18
management area. 19
2. The reserve target for an active management area may be adjusted 20
by the district, subject to the approval of the director of water 21
resources, based on changes in either of the following: 22
(a) The active management area's projected one hundred year 23
replenishment obligation. 24
(b) The volumes of water identified in the plan of operation 25
prepared pursuant to section 45-576.02 as water that the district plans to 26
use to meet its replenishment obligations for that active management area. 27
3. The district shall include a replenishment reserve charge in the 28
annual replenishment assessment levied against all parcels of category 1 29
member land as provided in section 48-3774.01 and in the annual 30
replenishment tax levied against all municipal providers that have member 31
service areas as provided in section 48-3780.01. The replenishment reserve 32
House Amendments to H.B. 2586
-19-
charge for each active management area is established annually by the 1
district based on the reserve target for that active management area. 2
4. The district shall levy a replenishment reserve fee against 3
category 1 member lands pursuant to section 48-3774.01 and against member 4
service areas pursuant to section 48-3780.01. For category 1 member lands 5
the fee is equal to twice the applicable replenishment reserve charge 6
multiplied by the total projected average annual replenishment obligation 7
for the member lands as reported by the director of water resources 8
pursuant to section 45-578, subsection F. For member service areas the fee 9
is equal to twice the applicable replenishment reserve charge multiplied by 10
the excess groundwater increment. With the approval of the district and 11
the director of water resources, long-term storage credits as defined in 12
section 45-802.01 may be assigned to the district's replenishment reserve 13
subaccount in lieu of paying the replenishment reserve fee. 14
5. The district shall use replenishment reserve charges and 15
replenishment reserve fees collected within each active management area 16
together with all interest earned on the charges and fees to store water in 17
that active management area in advance of groundwater replenishment 18
obligations for the purpose of developing long-term storage credits as 19
defined in section 45-802.01 that shall be credited to the replenishment 20
reserve subaccount for that active management area as provided in section 21
45-859.01. 22
6. Beginning on January 1, 2030 or earlier, on approval of the 23
director of water resources pursuant to section 45-859.01, subsection K, 24
the district may transfer credits from a replenishment reserve subaccount 25
to a conservation district account as provided in section 45-859.01, 26
SUBSECTION F to satisfy its groundwater replenishment obligations. 27
7. If the district transfers credits from the replenishment reserve 28
subaccount for an active management area pursuant to section 45-859.01, 29
subsection E, the district shall include in the annual replenishment 30
assessment levied against all parcels of category 1 member land in that 31
active management area and, except as provided in section 48-3780.01, 32
House Amendments to H.B. 2586
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subsection B, in the annual replenishment tax levied against all municipal 1
providers that have member service areas in that active management area a 2
reserve replacement component to fund the replacement of the transferred 3
credits. The district shall use all monies from the reserve replacement 4
component collected within an active management area together with all 5
interest earned on the monies to develop long-term storage credits as 6
defined in section 45-802.01 within that active management area to be 7
credited to the replenishment reserve subaccount for that active management 8
area as provided in section 45-859.01. 9
8. For the purposes of establishing and maintaining the 10
replenishment reserve, the district shall have access to excess central 11
Arizona project water equivalent to but no NOT more than the access the 12
Arizona water banking authority has for the purposes specified in section 13
45-2401, subsection H, paragraph 2. 14
F. Groundwater replenished by the district pursuant to a contract to 15
replenish groundwater under subsection B, paragraph 9 of this section shall 16
not be credited to a replenishment reserve subaccount established under 17
section 45-859.01. 18
G. The district shall not enter into a contract authorized under 19
subsection B, paragraph 9 of this section unless the district has 20
determined that the contract will not adversely affect the district's 21
ability to fulfill its obligations under this chapter. For each contract 22
entered into under subsection B, paragraph 9 of this section, the district 23
shall perform its contract replenishment obligations in the active 24
management area in which the service area of the municipal provider that is 25
the party to the contract is located. 26
H. If the district replenishes groundwater on behalf of a municipal 27
provider pursuant to a contract to replenish groundwater under subsection 28
B, paragraph 9 of this section, the amount of groundwater so replenished 29
shall be a replenishment credit to the municipal provider that may be 30
applied by the municipal provider on notice to the district to reduce the 31
House Amendments to H.B. 2586
-21-
service area replenishment obligations applicable to the municipal 1
provider. 2
I. In the Phoenix active management area, the district, to the 3
extent reasonably feasible, shall replenish groundwater in the east portion 4
of the active management area and in the west portion of the active 5
management area in the approximate proportion that the groundwater 6
replenishment obligation attributable in a particular year to member lands 7
and member service areas located in the east portion of the active 8
management area bears to the groundwater replenishment obligation 9
attributable in that year to member lands and member service areas located 10
in the west portion of the active management area. For the purposes of 11
this subsection, the boundary between the east Salt river valley subbasin 12
and the west Salt river valley subbasin is the boundary between the east 13
and west portions of the active management area. 14
J. The costs and expenses charged by the district to an active 15
management area water district established under chapter 28 of this title 16
for delivery of surplus central Arizona project water to such active 17
management area water district for replenishment purposes shall not exceed 18
the costs and expenses for delivery of such water that are or would be 19
included by the district in the costs and expenses of replenishment for 20
member lands and member service areas within the active management area in 21
which such active management area water district is situated." 22
Amend title to conform 23
And, as so amended, it do pass
GAIL GRIFFIN CHAIRMAN
2586NATURAL RESOURCES ENERGY WATER 02/19/2019 06:01 PM H: ra
Legislative Affairswww.CentralArizonaProject.com623-869-2425
[1]
February 27, 2019
Federal Update Appropriations Deal Averts a ShutdownThe 116th Congress managed to avoid a government shutdown that would have occurred in mid-February by passing a deal to fund the federal government. On February 15, 2019, President Trump signed a deal to fund the federal government and declared a national emergency to provide additional funding for a border wall. The bipartisan spending bill includes $1.4 billion for border barriers, below the $5.7 billion that the president had initially requested. President Trump said he would bridge the gap through executive actions and funding for military construction and drug-countering efforts but will not redirect federal disaster aid. A coalition of sixteen states, not including Arizona, have mounted legal challenges against the emergency declaration on the grounds that it diverts funds from other high priority needs. The lawsuit raises questions over congressional control of spending, the scope of emergency powers granted to the president, and the role of courts in these kinds of disputes.
Department of Interior and Environmental Protection Agency FundingThe U.S. Department of Interior (DOI) and the U.S. Environmental Protection Agency (EPA) had been operating on short-term funding authority while a final budget agreement was reached. Included in the budget agreement was a small increase in overall discretionary funding appropriations for these two agencies. The total package constituted $35.6 billion for covered agencies, an increase of $300 million for FY 2018. DOI received approximately $13 billion in discretionary funds which is $95.2 million less than FY2018, but an increase of $2.43 billion in what was requested by the White House. The Interior’s Fish and Wildlife Service saw the biggest decrease from FY2018. EPA received $8.6 billion, remaining flat with FY2018 funding. However, the EPA funding countered the White House’s requests for significant cuts to EPA programs to the tune of $1.87 billion.
Department of Interior and Environmental Protection Agency StaffingPresident Trump announced that David Bernhardt will be nominated as Secretary of the Interior. The nomination process is likely to take several months. Bernhardt is currently the Acting Secretary following the resignation of Secretary Zinke. The President also announced the nomination of Daniel Jorjani as Solicitor of the Interior. Jorjani is currently the Principal Deputy Solicitor.The Senate Environment and Public Works Committee advanced the nomination of Andrew Wheeler to be Administrator of the EPA on February 5, 2019. Wheeler is currently Acting Administrator of the EPA following the departure of former Administrator Scott Pruitt. Before the February recess, Senate Majority Leader Mitch McConnell filed for cloture on Wheeler’s nomination setting up a vote for the week of February 25.
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The following Federal Legislative Issues Update outlines the status of the Board-approved 2019 Legislative Agenda, as well as other relevant federal issues. Legislative Affairs staff comes before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed legislation and rules that may arise during the year.
Colorado River Water SupplyCAP Position: Support the Lower Basin Drought Contingency Plan (DCP), including legislation that directs the Secretary of the Interior to implement the DCP. Continue to cooperate with Federal, State, Tribal, and other stakeholders to mitigate potential impacts on the CAP water supply and support water conservation and augmentation activities, such as the Pilot System Conservation Program, desalination, weather modification, and water reuse and recycling programs, as well as other programs. Continue to support the operation of the Yuma Desalting Plant or suitable alternatives to reduce system losses.
S. 47 Natural Resources Management ActOn February 12, the Senate passed S. 47, the Natural Resources Management Act, a broad public lands package that combined over 100 bills that were introduced last Congress related broadly to federal land management. The House followed suit and passed the bill under a suspension of the rules on February 26, sending the bill to the President.
The bill was sponsored by Senate Energy and Natural Resources Chairman Lisa Murkowski (R-AK). Title VIII of the omnibus lands bill deals with water and power and includes a provision on title transfer for Bureau of Reclamation facilities, as well as an extension of authorization for endangered fish programs. An amendment in the nature of a substitute that passed the Senate added two additional provisions of interest, language amending authorization for the Bureau of Reclamation’s Watersmart program to clarify the eligibility of Indian tribes and a section on Bureau of Reclamation Transparency that requires the Bureau of Reclamation to prepare reports for Congress related to the status of assets including information about major repair and rehabilitation needs.
Cybersecurity CAP Position: Monitor legislative efforts to address cybersecurity and potential threats to critical infrastructure and vital computer systems.
No update to report at this time.
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Central Arizona Project Water Infrastructure CAP Position: Monitor proposals by the Executive and Congress to provide financing opportunities to modernize U.S. infrastructure and determine possible opportunities for CAP.
Recent comments by both parties and the President indicate that there is interest in working on a comprehensive infrastructure package. Although the President was successful in getting some streamlined permitting processes enacted for infrastructure projects last year, his $1-trillion infrastructure package largely did not gain enough momentum over the past two years despite its high profile.
At a February 13, 2019 Senate Commerce Committee hearing on infrastructure needs in the U.S., lawmakers stressed bipartisan cooperation in putting together a comprehensive package. The panel of witnesses endorsed a gas tax increase and exploring long-term user or vehicle miles traveled fees. However, Sen. Mike Lee (R-UT) argued that a gas tax hike would regressively hurt the poor and middle class, and Sen. Cory Gardner (R-CO) inquired about alternatives to this option. Both parties expressed concerns about transportation safety and congestion, but no agreements about the best way to fund long-term investments were made. After the hearing, Chair Roger Wicker (R-MS) expressed uncertainty about the future of infrastructure legislation, stating that he doesn’t know if an infrastructure bill will pass this year.
Energy LegislationCAP Position: Monitor legislative efforts that may impact CAP operations, including CAP’s ability to secure affordable energy and ensure reliable transmission delivery. Continue efforts to engage elected officials, stakeholders, and governmental agencies regarding federal activities that affect the Navajo Generating Station.
Green New DealAlexandria Ocasio-Cortez (D-NY) and Sen. Ed Markey (D-MA) released a draft nonbinding resolution this week that outlined the policy goals of the “Green New Deal.” The resolution contains five core goals of the policy which include achieving net-zero GHG emissions, job creation, sustainable industry and infrastructure investment, environmental stewardship for future generations, and environmental justice for marginalized groups. The resolution remains vague on how these goals should be realized within the 10-year timeframe referenced in the resolution. Support and opposition of the nonbinding resolution is drawn along party lines. Senate Majority Leader Mitch McConnell (R-KY) announced that he will put S.Res.59, the Senate resolution outlining the Green New Deal, on the legislative calendar. The vote could potentially occur in the coming two weeks. A vote on the resolution would require Senators to go on record regarding their stance on the Green New Deal. The companion House
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resolution, H.Res.109, has been introduced however, House Democratic leadership has not scheduled the measure for a vote.
Water Quality and Salinity IssuesCAP Position: Monitor water quality issues impacting the Colorado River that may affect CAP operations. Support the activities of the Colorado River Basin Salinity Control Forum, including efforts to secure adequate funding and improve water management.Support the efforts of the Lower Colorado River Water Quality Partnership to address water quality issues of the Colorado River.
No update to report at this time.
Indian Water Rights Settlements CAP Position: Continue to collaborate with Arizona Tribes and other stakeholders on issues related to resolving water rights claims. Continue to support legislation necessary and appropriate to enact the Hualapai Tribe water rights settlement.
No update to report at this time.
Federal RulemakingCAP Position: Continue to monitor federal rulemaking and implementation related to energy, air quality, water quality, and other issues that may affect CAP operations.
On December 11, the EPA and the U.S. Army Corps of Engineers released a new proposed “waters of the U.S” (WOTUS) rule to replace the 2015 WOTUS rule that was promulgated by the previous administration. The rule proposes a new regulatory definition for WOTUS for the purpose of determining whether they are jurisdictional waters under the Clean Water Act (CWA). The proposed WOTUS rule under the Trump Administration would seem to adopt a narrower scope for what is considered a WOTUS by excluding all ephemeral waters and doing away with the concept of “significant nexus,” which referred to the hydrological connectivity to jurisdictional waters.
According to the released rule, the agencies are proposing definitions “in simple, understandable, and implementable terms to reflect the ordinary meaning of the statutory term, as well as to adhere to Constitutional and statutory limitations, the policies of the CWA,
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and case law, and to meet the needs of regulatory agencies and the regulated community.” In this regard, jurisdictional “waters of the U.S.” would be those waters that are typically associated with the term WOTUS, such as oceans, rivers, streams, lakes, and traditionally navigable waters, including tributaries of those waters.
The new rule would also define other key terms such as tributaries and ditches. The proposed definition of “tributary” would include rivers and streams that contribute perennial or intermittent flow to traditional navigable waters, but would exclude ephemeral flows or dry channels. This position is consistent with the Rapanos plurality’s position in 2006 (Rapanos v. United States).
A new category under the WOTUS definition is created for ditches and similar artificial features. In this rule, irrigation ditches and other artificial channels, including canals, generally do not appear to be considered jurisdictional waters, with some exceptions. This is in contrast with the 2015 rule that included man-made features such as ditches and canals in the definition of tributaries.
The agencies are seeking public comment on all aspects of the proposed definition, including “whether it would strike the proper balance between the regulatory authority of the Federal government and States, meets its obligation to provide fair notice to members of the regulated community, and adheres to the overall structure and function of the CWA by ensuring the protection of the nation’s waters.” The proposed rule was published in the Federal Register on February 14, 2019 and comments are due within 60 days of the publication date.
If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Legislative Affairs at 623-869-2425.
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Federal Legislative Update
Public Policy CommitteeMarch 7, 2019
Jeff GrayLegislative Affairs Manager
Federal Update
• On February 15, 2019, President Trump signed a deal to fund the federal government and declared a national emergency to provide additional funding for a border wall. The bipartisan spending bill includes $1.4 billion for border barriers, far below the $5.7 billion that the president had initially requested.
• A coalition of sixteen states, not including Arizona, have mounted legal challenges against the emergency declaration on the grounds that it diverts funds from other high priority needs.
• The lawsuit raises questions over congressional control of spending, the scope of emergency powers granted to the president, and the role of courts in these kinds of disputes.
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Federal Update Dept of Interior & EPA Funding
• Included in the budget agreement passed on February 14, 2019, was a small increase in overall discretionary funding appropriations for the Dept of Interior (DOI) and the Environmental Protection Agency (EPA).
• The total package constituted $35.6 billion for covered agencies, an increase of $300 million for FY 2018. DOI received approximately $13 billion in discretionary funds which is $95.2 million less than FY2018, but an increase of $2.43 billion in what was requested by the White House. Interior’s Fish and Wildlife Service saw the biggest decrease from FY2018. EPA received $8.6 billion, remaining flat with FY2018 funding.
• The EPA funding exceeded the White House’s requests for significant cuts to EPA programs by $1.87 billion.
Colorado River Water Supply► Support the Lower Basin Drought Contingency Plan (DCP), including legislation that directs the Secretary of the Interior to implement the DCP. ► Continue to cooperate with Federal, State, Tribal, and other stakeholders to mitigate potential impacts on the CAP water supply and support water conservation and augmentation activities, such as the Pilot System Conservation Program, desalination, weather modification, and water reuse and recycling programs, as well as other programs. ► Continue to support the operation of the Yuma Desalting Plant or suitable alternatives to reduce system losses.
S.47 Natural Resources Management Act• Omnibus public lands bill introduced in the Senate by Committee on
Energy and Natural Resources Chair Lisa Murkowski (R-AK). • Passed the Senate on February 12 and the House on February 26. • Includes Title VIII on Water and Power with notable provisions:
Title Transfer authority for the Bureau of Reclamation. Extends authorization for appropriations for endangered fish
programs. Clarifies eligibility of Indian Tribes for Watersmart grants. Reclamation Transparency provision requires reports to Congress
on assets.
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