SB1522 amends Arizona’s groundwater code to extend and modify a long-standing exemption framework for a defined area within the Phoenix Active Management Area. The bill keeps in place exemptions from irrigation water duties and certain groundwater distribution conservation requirements for eligible irrigation acres and specified irrigation districts, and it continues the prohibition on certain groundwater withdrawal and water quality assurance fees for qualifying uses. It also preserves a small annual water duty exemption fee for most acres in the exempt area, with a separate exemption for owners of ten or fewer irrigation acres unless the acres are part of an integrated farming operation.
The bill also updates the treatment of municipal groundwater withdrawals in the exempt area. It directs the director to determine that up to 10,000 acre-feet of water withdrawn by a municipal provider for assured water supply purposes is consistent with the Phoenix AMA management goal and sufficient for long-term municipal needs through December 31, 2034, or a later date if extended after review. The measure requires the director to review hydrologic conditions in the exempt area and submit a recommendation by November 15, 2031 on whether the exemptions should be extended. The bill applies retroactively to December 31, 1988, preserving the historical operation of the exemption scheme.
Impact
SB1522 would amend A.R.S. § 45-411.01, affecting groundwater regulation in the Phoenix Active Management Area by extending existing statutory exemptions, fee provisions, and municipal water-supply determinations through 2034 and tying possible future extension to a hydrologic review. It impacts irrigation right holders, the Arlington Canal Company, Buckeye Water Conservation and Drainage District, St. John’s Irrigation District, small-acreage owners in the exempt area, and municipal providers seeking assured water supply determinations. It also directs fee deposits to the water resources fund and the water quality assurance revolving fund as specified in current law.
Sentiment
The available vote history suggests the bill had mixed but generally favorable support in the Senate Natural Resources Committee, where it passed 4-3 with a divided vote. Subsequent committee actions show no recorded yeas or nays, so the strongest signal is that the measure was advanced but not without opposition. The bill’s subject matter indicates support from stakeholders benefiting from the exemption structure, alongside concern from members wary of continued groundwater exemptions and municipal withdrawal allowances.
Contention
The main points of contention appear to be the continued exemption of certain irrigation acres and districts from water duties, conservation requirements, and some fees, as well as the authorization for municipal providers to withdraw up to 10,000 acre-feet for assured water supply purposes. Opponents are likely concerned that the bill prolongs preferential treatment for a limited set of users and may weaken conservation goals in the Phoenix AMA. Supporters likely include irrigation districts, canal companies, affected landowners, and municipal water providers that rely on the exemption area and the associated groundwater rules. The required 2031 hydrologic review suggests lawmakers also recognized uncertainty about whether the exemptions should continue beyond the current term.