AMWUA vigorously protects our members’ ability to provide assured, safe, and sustainable water supplies and advocates for Arizona’s continued water security.
Where We Stand On The Issues
Smart water policy and careful planning, investment, and management have enabled AMWUA’s members to build robust, reliable water supplies that support our communities and economy. It is imperative that we continue to address the issues in front of us to ensure the future viability of those supplies. Learn more about some of the issues we are working on:
Where We Stand on Legislation
2023 - Fifty-sixth Legislature - First Regular Session
Arizona Senate
SB 1079: Water treatment facilities; loan repayment
In Brief: Removes the statutory requirement that cities and towns larger than 150,000 are required to hold an election to receive approval for a WIFA loan.
Sponsor(s): Shope
Last Action: Was never heard in committee.
Description: Removes the statutory requirement that cities and towns larger than 150,000 are required to hold an election to receive approval for a WIFA loan. The election requirement is an unnecessary stipulation as municipal loan agreements go before publicly elected city councils. The requirement causes additional delays and expenses for cities that seek federal infrastructure funds, and only impacts municipalities above the 150,000-person threshold. AMWUA ran this legislation in 2022, and SB 1079 has been introduced on AMWUA’s behalf by Senator Shope.
SB 1090: Groundwater pumping; foreign ownership; prohibition
In Brief: Prohibits foreign entities from being eligible to pump groundwater
Sponsor(s): Kern
Last Action: Was never heard in committee.
Description: “A corporation or other entity in which the government of another country has a controlling interest is not eligible to pump groundwater in this state.” Controlling interest is defined as direct or indirect ownership of at least 80% of the voting shares or interests of the entity.
SB 1223: Water infrastructure; commerce grant fund
In Brief: Appropriates $8 million to the AZ Commerce Authority for a Pinal County employer
Sponsor(s): Shope
Last Action: Failed to pass House NREW on March 28th.
Description: Appropriates $8 million to the “Water Infrastructure and Commerce Grant Fund” in FY24. The Fund was created in 2022 for the purpose of providing grants to eligible entities for design and construction of water infrastructure. Eligible entities are Pinal County employers with more than 250 employees, or a private water company acting on the behalf of the Pinal County company.
SB 1257: Water resources; assistant director
In Brief: Requires ADWR to appoint an Assistant Director for coordination with WIFA
Sponsor(s): Peterson
Last Action: Passed House RULES on March 20th.
Description: Requires the Director of ADWR to appoint an Assistant Director whose exclusive duties are coordinating with WIFA and water users on water importation projects for augmentation, and projects to increase water storage.
SB 1278: S/e state preemption; utilities; appliances; restrictions; prohibition; limitation; definitions
In Brief: Prohibits municipalities from imposing further regulation to limit what types of appliances utility customers can use.
Sponsor(s): Montenegro
Last Action: Passed House RULES on April 4th.
Description: This bill would prohibit municipalities from imposing further regulation to limit what types of appliances utility customers can use. AMWUA is concerned that this bill could impact municipal water conservation initiatives because the bill as written applies to dishwashers "or other appliance that is designed to use the services of a utility provider".
SB 1306: Local groundwater stewardship areas
In Brief: Creates a new rural water management framework.
Sponsor(s): Borelli & Biasiucci
Last Action: Was never heard in committee.
Description: SB 1306 and HB 2731 creates a new water management framework titled “Local Groundwater Stewardship Areas” (LGSA) that can be established via designation by a County Board of Supervisors, the Director of ADWR, or petition of residents within a groundwater basin if certain conditions related to groundwater depletion are met. For any LGSA that is formed, the Governor shall appoint persons to an LGSA Council that represents water users in the area. The Council is charged with establishing a Management Plan and Goal(s) for the LGSA and recommending best management practices designed to reduce groundwater withdrawals in the area. SB 1306 also establishes the Department of Water Resources Local Groundwater Stewardship Fund consisting of monies deposited from State Lottery, to support ADWR’s administration of the LGSA.
SB 1358: Homeowners’ associations; solar, water devices
In Brief: Disallows an HOA from prohibiting homeowner water conservation practices
Sponsor(s): Mendez & 5 others
Last Action: Was never heard in committee.
Description: Homeowners Associations (HOA) cannot prohibit the installation of a water saving device or indoor or outdoor water conservation practice. The HOA may adopt reasonable rules governing proposed water conservation practices. This bill could empower individual homeowners to convert their landscapes to desert-appropriate landscapes and make positive reductions in outdoor water use. AMWUA supported this legislation in 2022.
SB 1390: Water infrastructure finance authority; amendments
In Brief: Technical amendments to the WIFA statutes
Sponsor(s): Kerr
Last Action: Passed House RULES March 20th.
Description: This bill makes various technical and conforming changes to the WIFA legislation that was passed in 2022. Clean up amendments include clarification that WIFA is not a public service corporation, the WIFA Board is authorized to adopt policies and guidelines regarding employee compensation, and conforming changes to align the definition of “eligible entity” for the Conservation Grant Fund with existing WIFA statutes.
SB 1391: S/e use of monies in state lottery fund; report
In Brief: Strike everything directs $9.06 million from state lottery fund to ADEQ water quality fee fund.
Sponsor(s): Griffin
Last Action: The budget included a one-time appropriation of $9.5 million from the state General Fund into the Water Quality Fee Fund. The Water Quality Fee Fund's structural deficit remains.
Description: This bill would direct $9,060,000 left over from the state lottery fund to ADEQ’s water quality fee fund, which has been underfunded for many years. ADEQ worked with Representative Griffin to develop this legislation as a permanent fix to the water quality fee fund’s structural deficit. This bill would allow ADEQ to fix that deficit without having to raise fees for water providers or rely on annual funding from the State General Fund.
SB 1432: Assured water; small residential developments
In Brief: Requires anyone seeking a building permit for six or more residences within an unincorporated area of an AMA to secure an Assured Water Supply.
Sponsor(s): Wadsack, Jones
Last Action: Passed House RULES on April 4th.
Description: This is another piece of legislation that is intended to close the “build-to-rent loophole” in the Assured Water Supply Program. This bill accomplishes this by requiring that anyone seeking a building permit for six or more residences within an unincorporated area of an AMA must obtain a Certificate of Assured Water Supply or a commitment of service from a Designated provider. This applies to all developments, regardless of any proposed lease term.
SB 1438: Active management; non-expansion area; fees
In Brief: Allows ADWR to reduce fees for certification of grandfathered rights in new AMAs and INAs
Sponsor(s): Sundareshan
Last Action: Was never heard in committee.
Description: Allows ADWR to reduce fees for the certification of grandfathered rights in Active Management Areas and Irrigation Non-Expansion Areas established after January 1, 2022 without having to pursue a Rulemaking. This would apply to the newly formed Douglas AMA and Hualapai INA.
SB 1439: State lands; leases; groundwater use
In Brief: Requires ASLD to collect groundwater withdrawal fees and pumping data from lessees.
Sponsor(s): Sundareshan, Bennett, Mendez
Last Action: Was never heard in committee.
Description: Requires the Arizona State Land Department to collect annual withdrawal fees and groundwater pumping data from any lessees of ASLD agricultural lands located outside of an AMA or INA.
SB 1448: Subsequent active management area; designation
In Brief: Requires ADWR to designate groundwater basins as AMAs if certain conditions are met.
Sponsor(s): Sundareshan & 7 others
Last Action: Was never heard in committee.
Description: Requires the ADWR Director to designate a groundwater basin as an AMA if it is determined that AMA practices are needed to preserve the existing supply of groundwater, land subsidence is occurring, or groundwater withdrawals are threatening water quality degradation. Previously the ADWR had the discretion to designate subsequent AMAs for these reasons, not a mandate.
SB 1660: Water; effluent; credits
In Brief: Expands legal definition of effluent to allow industrial facilities to generate LTSC
Sponsor(s): Kerr, Kaiser, Dunn
Last Action: Passed House RULES on April 10th.
Description: Expands the legal definition of effluent to include wastewater generated by industrial facilities that is treated at the site of use. SB 1660 allows an industrial facility to treat and recharge its wastewater to earn effluent LTSC. The bill stipulates that LTSC earned by the industrial effluent can only be “used” at the site of storage. The AMWUA cities have serious concerns with the proposed statutory amendments, particularly the potential for this bill to incentivize industrial users to extract fossil groundwater and expand their pumping rights through the generation of LTSC. The bill also sets a precedent of allowing groundwater-dependent industrial users to proliferate and remove themselves from centralized water management, threatening the aquifers that municipal water providers rely upon. AMWUA opposed previous iterations of this legislation in 2022. A floor amendment was adopted for SB 1660 that includes a 25% cut to the aquifer and limits the legislation to only companies that apply for long-term storage credits through 2025 – none of which changes our opposition but reinforces that this is special interest legislation for companies that already do not have to demonstrate an assured water supply.
Arizona House
HB 2026: Appropriation; on-farm efficiency fund
In Brief: Appropriates $30 million to UofA for agricultural irrigation efficiency grants.
Sponsor(s): Dunn
Last Action: Passed Senate APPROP on March 21st.
Description: Appropriates $30 million to the “On-farm irrigation efficiency fund” created in the 2022 legislative session. The Fund is administered by University of Arizona and designed to fund improvements in irrigation water efficiency. The Fund is reportedly on track to have spent the entire $30 million appropriation from the 2022 budget, offering $1,500 per AF. For more information: https://extension.arizona.edu/water-irrigation-efficiency-program
HB 2048: Assured water; small residential developments
In Brief: Requires development in unincorporated areas with 6 residences or more to obtain a Certificate of AWS
Sponsor(s): Bliss
Last Action: Was never heard in committee.
Description: The bill would require any developer who seeks a building permit for 6 or more residences in an unincorporated area of an AMA to apply for a Certificate of Assured Water Supply (AWS). This proposed concept differs from the existing AWS regulations by triggering the requirement with a building permit, rather than subdivision plat. It also requires a Certificate for rental properties, which are currently exempted from the AWS Program.
HB 2143: S/e gray water reuse; residential standards; rules
In Brief: Allows ADEQ to permit a gray water system that would use recycled shower and bath water for indoor toilet flushing.
Sponsor(s): Kerr
Last Action: Bill was signed into law by the Governor on May 1, 2023.
Description: This bill allows ADEQ to permit a graywater system that would use recycled shower and bath water for indoor toilet flushing. Such systems would only be for new builds, must have a NSF 350 Class R Certification - consistent with both the International Plumbing Code and the Uniform Plumbing Code, and meet ADEQ’s regulatory rules for such system, which ADEQ would be tasked to develop. Currently, Arizona allows graywater use outside but not indoors. This concept arose from a piloted indoor residential graywater project among Tucson Water, Lennar Homes and Greyter Water Systems that was initiated in 2019. The pilot estimated a family of four can save close to 9,000 gallons annually. California, Colorado, Florida, Georgia, and Texas are the most notable states that allow graywater for shower to toilet use that is consistent with the two common plumbing codes requiring NSF 350. The positives for allowing ADEQ to permit this type of graywater system is it would be another step in using technology to advance water conservation, it only applies to new builds, and it increases public familiarity and acceptance with recycling water.
HB 2164: Subsequent irrigation; non-expansion areas; procedures
In Brief: Modifies the procedures for determination of a new Irrigation Non-Expansion Area (INA)
Sponsor(s): Stahl Hamilton
Last Action: Was never heard in committee.
Description: This measure introduces a number of modifications to the procedures for establishment of new irrigation non-expansion areas (INA). The proposal would allow ADWR to consider projected rates of groundwater withdrawal as part of the determination of a new INA. The bill also clarifies which entities are eligible to petition the State to create a new INA and requires that petitioners submit a groundwater model and hydrologic assessment using methodology approved by the ADWR Director. The language aligns with the suggested statutory changes presented by ADWR in the summer of 2017 during the Governor’s Water Solutions Conversations. The bill has been introduced successively for a number of years, and AMWUA has supported the legislation.
HB 2217: S/e appropriation; brackish groundwater studies
In Brief: Appropriates $50,000 to ADWR in FY24 to review and update studies on brackish groundwater in Arizona.
Sponsor(s): Griffin
Last Action: Passed Senate NREW on March 9th.
Description: Appropriates $50,000 to ADWR in FY24 to review and update studies on brackish groundwater in Arizona.
HB 2260: Wells; permits; spacing rules
In Brief: Requires ADWR adopt well spacing rules for wells >35 gpm outside of AMAs
Sponsor(s): Cano
Last Action: Was never heard in committee.
Description: Requires that ADWR adopt rules governing the location of new and replacement wells >35 gpm located outside of AMAs, within groundwater basins that the Director determines to be experiencing declining groundwater levels. AMWUA has historically supported legislation to this effect.
HB 2266: Groundwater pumping; measuring; reporting
In Brief: Requires measuring, monitoring and annual reporting for nonexempt groundwater wells throughout the state.
Sponsor(s): Cano
Last Action: Was never heard in committee.
Description: Requires measuring, monitoring and annual reporting for nonexempt groundwater wells throughout the state. Water users who irrigate 10 or fewer acres that are not part of a larger farming operation, or water users who pump <10 acre-feet per year for non-irrigation use are exempted from this requirement. AMWUA supported this legislation in the 2020 and 2021 sessions.
HB 2278: Well drilling; groundwater basins
In Brief: Establishes a well drilling moratorium in the Upper San Pedro and Verde Valley sub basins
Sponsor(s): Cano
Last Action: Was never heard in committee.
Description: Establishes a well drilling moratorium that prevents new wells in the Upper San Pedro and Verde Valley groundwater subbasins until the conclusion of the General Stream Adjudication unless a well is a replacement well or does not pump subflow. AMWUA adopted a “Monitor” position on this legislation in the 2020, 2021, and 2022 sessions.
HB 2323: Water augmentation fund; brackish groundwater
In Brief: Characterizes brackish groundwater desalination as an importation project for WIFA funding.
Sponsor(s): Kolodin & 4 others
Last Action: Was never heard in committee.
Description: Currently, WIFA’s Long-Term Water Augmentation (LTWA) Fund carries a stipulation that 75% of the monies must be spent on a water supply development project that imports water from outside of Arizona. HB 2323 modifies the statutes to characterize brackish groundwater desalination as an importation project for the purposes of being eligible for this funding. Brackish groundwater desalination would already be eligible for the other 25% of LTWA Fund monies without this statutory change.
HB 2372: Colorado River water transfers; limit
In Brief: Prohibits transfers of Colorado River P4 entitlements from on-river communities
Sponsor(s): Biasiucci, Gillette, Borrelli
Last Action: Was never heard in committee.
Description: This bill prohibits transfers of Colorado River P4 entitlements from La Paz County, Mohave County, and Yuma County to other areas of the state. The pending Queen Creek transfer is exempted from this prohibition. This language was introduced in 2022 as a strike-everything amendment that faced lawmaker concerns and opposition from CAP and the development community. Additional legislative intent language has been added that characterizes transfers as an attempt to circumvent “Colorado River water reductions by replacing those reductions with transferred water.”
HB 2376: Agricultural land; foreign ownership; prohibition
In Brief: Prohibits the Arizona State Land Department from leasing agricultural state lands to an entity that is a foreign government
Sponsor(s): Biasiucci & 9 others
Last Action: Was never heard in Senate committee.
Description: Prohibits the Arizona State Land Department from leasing or subleasing agricultural state lands to an entity that is a foreign government or is a subsidiary of a foreign government. This legislation is a response to the reports of Fondomonte, a Saudi Arabian company, growing alfalfa for export on state lands with no pumping restrictions.
HB 2406: Water treatment facilities; loan repayment
In Brief: Removes the statutory requirement that cities and towns larger than 150,000 are required to hold an election to receive approval for a WIFA loan.
Sponsor(s): Terech
Last Action: Was never heard in committee.
Description: Removes the statutory requirement that cities and towns larger than 150,000 are required to hold an election to receive approval for a WIFA loan. The election requirement is an unnecessary stipulation as municipal loan agreements go before publicly elected city councils. The requirement causes additional delays and expenses for cities that seek federal infrastructure funds, and only impacts municipalities above the 150,000-person threshold. AMWUA ran this legislation in 2022, and SB 1079 has been introduced on AMWUA’s behalf by Senator Shope.
HB 2438: Board of supervisors; powers; water
In Brief: Expands the authorities of a County Board of Supervisors to participate in water reuse and recharge programs
Sponsor(s): Griffin
Last Action: Passed Senate RULES on March 27th.
Description: Expands the authorities of a County Board of Supervisors to allow participation “in water reuse and recycling programs and regional wastewater recharge projects and related infrastructure.” Similar legislation was introduced last session on behalf of the Pinal County Board of Supervisors.
HB 2442: Temporary non-expansion area
In Brief: Establishes procedures for the creation of a “temporary non-expansion area” (TNA) that prohibits irrigation of new acreage for 5 years
Sponsor(s): Griffin
Last Action: Passed Senate RULES on March 27th.
Description: This bill establishes procedures for the creation of a “temporary non-expansion area” (TNA) that prohibits irrigation of new acreage for a period of 5 years. To establish a TNA, at least 50% of “irrigation users of groundwater” or 10% of registered voters residing within the groundwater basin must submit a petition to the ADWR Director. After ADWR holds a public hearing on the TNA, the establishment of the TNA will be determined by election of all registered voters within the proposed boundaries. A majority of voters must approve the formation of the TNA for the regulations to take effect.
HB 2443: Navigable stream adjudication commission; extension
In Brief: Extends the legislative authorization for the Arizona Navigable Stream Adjudication Commission (ANSAC) for four years to June 30, 2028
Sponsor(s): Griffin
Last Action: Passed Senate RULES on March 20th.
Description: This bill extends the legislative authorization for the Arizona Navigable Stream Adjudication Commission (ANSAC) for four years to June 30, 2028. The ANSAC is charged with determining which of Arizona’s rivers and streams were navigable at time of statehood. If determined to be navigable at time of statehood, the land beneath the watercourse is subject to ownership by the State to be held in public trust. If non-navigable, the watercourse is subject to ownership by the person whose property it crosses. The commission is scheduled to sunset on June 30, 2024.
HB 2445: S/e subdivisions; leased properties exemption; emergency
In Brief: Expand applicability of the Assured Water Supply Program to “build-to-rent” developments.
Sponsor(s): Griffin
Last Action: Passed Senate RULES on April 10th.
Description: The intent of HB 2445 is to expand applicability of the Assured Water Supply Program to “build-to-rent” developments that often exploit Assured Water Supply Program loopholes. The bill accomplishes this by changing the definition of a sub-division to include “Six or more detached single family residences that are constructed or proposed to be constructed for the purpose of sale or lease”. This bill passed Senate NREW on March 30, 2023 with an amendment that adds the building permit language from SB 1432. The amendment also clarifies that the person must apply and obtain a certificate for assured water supply and apply to the CAGRD.
HB 2448: Appropriation; groundwater; Santa Rosa canal
In Brief: Appropriates $25 million to ADWR to distribute to MSIDD and CAIDD to construct a way to convey groundwater separate from the Santa Rosa canal.
Sponsor(s): Martinez, Cook, Smith
Last Action: This project was included in the budget. However, the monies were appropriated from the Long-Term Water Augmentation Fund instead of the State General Fund.
Description: Appropriates $25 million from the state General Fund to ADWR to distribute to MSIDD and CAIDD to construct a way to convey groundwater separate from the Santa Rosa canal. This bill is related to a pending settlement between the Ak-Chin Indian Community and the two Pinal irrigation districts. The settlement is anticipated to lead to Reclamation approving the water quality standards for moving non-Colorado River water through the CAP canal.
HB 2535: Private property; wells; regulation; prohibition
In Brief: Precludes municipal regulation of private wells after annexation.
Sponsor(s): Smith & 23 others
Last Action: Vetoed by the Governor on April 5th.
Description: In an unincorporated area, a well drilled on private property and any buildings or structures that rely on that well are not subject to “municipal regulation” if the area is annexed by a city or town. HB 2535 has the potential for broad and significant negative impacts on public health and safety – including preventing a municipality from implementing building safety codes, fire codes, or water quality and sanitation measures in an annexed area. On March 16, 2023, the Senate Natural Resources Committee voted 4-1 to pass out of Committee. Senator Fernandez offered an amendment that AMWUA assisted with drafting to address our concerns. The sponsor, Rep Smith, said he was supportive of the amendment, had a few word changes, and would work with Senator Fernandez. However, the bill ended up passing without this amendment. When asked, Smith said that he did not like the amendment after all, but that the bill would end up being vetoed anyway, so he would work on it next year.
HB 2590: Real estate disclosures; water; solar
In Brief: Adds requirements for disclosure for water provider information to prospective property buyers
Sponsor(s): Griffin
Last Action: Passed Senate RULES on March 20th.
Description: The State Real Estate Department shall require each realtor to provide information on water resources to buyers or residential property or vacant land, including if there is water service to the property, if property is served by water that is transported from elsewhere, and details about the water provider serving the property. Specifies that the seller of the property must provide contact information for any applicable water hauling company, as well as the leasing company for any leased solar panels on the property.
HB 2616: Subdivisions; leased properties
In Brief: Expands the applicability of Assured Water Supply requirements to leasehold offerings of one year or less (i.e., build-to-rent properties).
Sponsor(s): Bliss
Last Action: Held in House NREW on February 14th.
Description: Arizona’s Groundwater Code requires that prior to the sale of subdivided land in AMAs, an assured water supply must be demonstrated. HB 2616 removes an exemption from the definition of “Subdivision” for “leasehold offerings of one year or less.” Removing this exemption would expand the applicability of Assured Water Supply requirements to leasehold offerings of one year or less (i.e., build-to-rent properties). Rental properties such as apartments and mobile home communities would remain excluded from the definition of “subdivision.”
HB 2669: Prohibition, biosolids, land application
In Brief: Limits the application of biosolids to agricultural land near residential areas and fields producing a crop meant for human consumption.
Sponsor(s): Dunn
Last Action: Passed Senate RULES on April 10th.
Description: Biosolids are used a soil amendment, conditioner or fertilizer. This bill prohibits the application of Class B biosolids within three miles of a population center, within one mile of a crop produced for human consumption, or within one mile of any property zoned residential.The prohibition will drastically reduce the number of acres available for land application and significantly increase costs for larger municipal utilities and their customers statewide without correcting any identified safety or health risk. This bill passed Senate NREW on March 30, 2023 with an amendment that removed the distance limitations for land applications and shifted the focus away from biosolids to the land application of sewage and septage.
HB 2731: Local groundwater stewardship areas
In Brief: Creates a new rural water management framework.
Sponsor(s): Biasiucci
Last Action: Was never heard in committee.
Description: HB 2731 creates a new water management framework titled “Local Groundwater Stewardship Areas” (LGSA) that can be established via designation by a County Board of Supervisors, the Director of ADWR, or petition of residents within a groundwater basin if certain conditions related to groundwater depletion are met. For any LGSA that is formed, the Governor shall appoint persons to an LGSA Council that represents water users in the area. The Council is charged with establishing a Management Plan and Goal(s) for the LGSA and recommending best management practices designed to reduce groundwater withdrawals in the area. SB 1306 also establishes the Department of Water Resources Local Groundwater Stewardship Fund consisting of monies deposited from State Lottery, to support ADWR’s administration of the LGSA.
HB 2793: Water efficient plumbing fixtures
In Brief: Updates Arizona’s water-efficiency plumbing standards to align with criteria established by the WaterSense Program
Sponsor(s): Mathis & 6 others
Last Action: Was never heard in committee.
Description: Arizona adopted water-efficiency standards for indoor plumbing fixtures in 1992 which have since been superseded by various federal laws and requirements. This bill would update Arizona’s water-efficiency standards to align with criteria established by the WaterSense Program, a public-private partnership between industry, utilities, and regulators. AMWUA drafted this legislation in 2019 and has supported it in subsequent legislative sessions.
The AMWUA Press Room
Media ContactLatest News
AZ Mirror
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KJZZ
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