SB1785

Water storage facility; withdrawals; area

Chamber Passed·3/3/26

Overview

Senate Bill 1785 amends Arizona's water storage and recovery framework by modifying Section 45-834.01 of the Arizona Revised Statutes. The bill establishes a comprehensive regulatory structure governing how holders of long-term storage credits and annual water recovery rights may extract stored groundwater through recovery wells. The legislation aims to balance the rights of water credit holders with the interests of existing water service providers, including municipalities, private water companies, and irrigation districts. By requiring coordination between parties seeking to recover stored water and entities already serving the geographic area where recovery would occur, the bill seeks to optimize water infrastructure utilization and prevent conflicts over water recovery operations. The amendments create a permitting system administered by the Director of the Arizona Department of Water Resources that evaluates recovery well applications based on technical, geographic, and policy criteria while providing mechanisms for emergency water recovery during system failures.

Core Provisions

The bill amends Section 45-834.01 to establish mandatory conditions for recovering stored water. Persons holding long-term storage credits or annual recovery rights must notify cities, towns, private water companies, or irrigation districts when proposing recovery wells within their service areas and must consider offers from these entities to recover water on their behalf if water quality is comparable. The legislation creates a formal recovery well permit system administered by the Director of the Arizona Department of Water Resources, requiring permits before any stored water recovery operations commence. Permit issuance depends on multiple factors including the proposed well's location relative to the stored water's area of impact, the type of water stored such as Colorado River water or effluent, and consistency with active management area plans. The bill authorizes emergency temporary recovery well permits valid for up to ninety days to address unplanned failures of the Central Arizona Project delivery system or similar emergencies. Recovery well permits must specify the permittee's identity, well location, recovery purpose, and applicable conditions. The legislation establishes a one-year deadline from permit receipt to complete new well construction and requires detailed application information including well specifications and water use plans.

Key Points

  • Mandatory notification to service area entities before establishing recovery wells
  • Requirement to consider offers from municipalities and water companies to recover water on behalf of credit holders
  • Director-issued recovery well permits required before water recovery operations
  • Permit conditions based on well location, water type, and management plan consistency
  • Emergency temporary permits available for up to ninety days during system failures
  • One-year construction deadline for new wells after permit issuance

Legal References

  • Arizona Revised Statutes § 45-834.01
  • Arizona Revised Statutes § 45-591 (definition of 'well')
  • Arizona Revised Statutes § 45-871.01 (related permitting requirements)

Implementation

The Director of the Arizona Department of Water Resources serves as the primary implementing authority with responsibility for receiving applications, evaluating permit requests, and issuing recovery well permits under the amended statute. The Director exercises discretion in determining whether proposed recovery wells meet statutory criteria and establishing permit conditions tailored to specific circumstances. Implementation requires coordination between the Department and multiple stakeholder categories including cities, towns, private water companies, irrigation districts, and conservation districts. Applicants must submit comprehensive information demonstrating compliance with location requirements, water quality standards, and active management area plans. The legislation does not specify dedicated funding mechanisms or appropriations for implementation, suggesting reliance on existing Department resources and potentially permit fees. Enforcement occurs through the permit system itself, with the Director's authority to deny permits or impose conditions serving as the primary compliance mechanism. The emergency temporary permit provision requires expedited processing within the ninety-day validity period, necessitating streamlined administrative procedures for crisis situations.

Legal References

  • Arizona Department of Water Resources

Impact

The bill directly affects holders of long-term storage credits and entities with annual water recovery rights by imposing new procedural requirements and coordination obligations before they can access stored water. Cities, towns, private water companies, and irrigation districts benefit from enhanced notification rights and opportunities to provide recovery services within their service areas, potentially generating revenue and optimizing existing infrastructure utilization. The legislation increases administrative burden on both applicants who must navigate the permit process and provide detailed technical information, and on the Department of Water Resources which must evaluate applications against multiple criteria and coordinate with various stakeholders. Conservation districts gain involvement in the permitting process, expanding their role in water resource management decisions. The emergency temporary permit provision provides critical flexibility during infrastructure failures, ensuring water supply continuity during Central Arizona Project disruptions or similar crises. While the bill does not include specific cost estimates, implementation will generate administrative costs for permit processing and compliance monitoring. The coordination requirements may delay some recovery projects but are expected to reduce conflicts over water recovery operations and improve overall water management efficiency within active management areas.

Key Points

  • Long-term storage credit holders face new notification and coordination requirements
  • Municipalities and water companies gain opportunities to provide recovery services
  • Increased administrative burden on applicants and the Department of Water Resources
  • Conservation districts receive expanded involvement in permitting decisions
  • Emergency provisions ensure water supply continuity during infrastructure failures

Legal Framework

The bill operates within Arizona's comprehensive groundwater management statutory framework established under Title 45 of the Arizona Revised Statutes. The amendments to Section 45-834.01 build upon existing water storage and recovery authorities while adding procedural safeguards and coordination requirements. The legislation references Section 45-591 for the definition of wells and Section 45-871.01 for related permitting requirements, demonstrating integration with the broader statutory scheme. The Director's permitting authority derives from the state's police power to regulate natural resources and protect public welfare through water management. The requirement that recovery operations remain consistent with active management area plans ensures alignment with regional water conservation goals and statutory mandates for groundwater sustainability. The bill does not explicitly address preemption of local ordinances, but the state-level permitting system likely establishes minimum standards that local governments cannot undermine. The statute does not specify judicial review procedures, suggesting that standard Arizona administrative law principles govern appeals of permit denials or conditions. The emergency temporary permit provision reflects the state's authority to respond to public health and safety emergencies through expedited administrative processes.

Legal References

  • Arizona Revised Statutes Title 45 (Water)
  • Arizona Revised Statutes § 45-834.01
  • Arizona Revised Statutes § 45-591
  • Arizona Revised Statutes § 45-871.01

Critical Issues

The bill's requirement that credit holders consider offers from service area entities to recover water on their behalf creates potential disputes over what constitutes comparable water quality and reasonable terms for recovery services. The legislation does not establish clear standards for evaluating comparability or resolving disagreements between credit holders and service providers, potentially leading to litigation or administrative appeals. Implementation challenges include the Department's capacity to process permit applications within reasonable timeframes while conducting thorough technical evaluations of well locations, water quality impacts, and management plan consistency. The coordination requirements may significantly delay water recovery projects, particularly when multiple stakeholders assert interests in the same geographic area. The emergency temporary permit provision, while addressing legitimate crisis needs, could be subject to abuse if the ninety-day limitation proves insufficient or if successive temporary permits circumvent normal permitting requirements. The bill does not address cost allocation for recovery services provided by municipalities or water companies, creating uncertainty about pricing and potential disputes over service fees. Opposition may arise from water credit holders who view the notification and coordination requirements as burdensome restrictions on property rights in stored water. Conversely, some conservation advocates may argue the bill insufficiently protects existing water users from impacts of new recovery operations. The one-year construction deadline may prove impractical for complex well projects requiring extensive engineering or encountering unforeseen technical challenges.

Key Points

  • Lack of clear standards for determining comparable water quality may generate disputes
  • Department capacity constraints could delay permit processing
  • Coordination requirements may significantly extend project timelines
  • Emergency permit provisions susceptible to potential abuse or circumvention
  • Absence of cost allocation standards for recovery services creates pricing uncertainty
  • Property rights concerns from water credit holders facing new restrictions
  • One-year construction deadline may prove impractical for complex projects

Where it stands

Last
Passed the Senate · 0–0 · Mar 3
Current
The House
Next
House floor vote

Sponsors

0
1
R
Democratic CaucusRepublican Caucus

Roll Call Votes

Passed

Calendar

Mar 16

1:00 PM

House Rules

Mar 10

2:00 PM

House Natural Resources, Energy & Water

History

Apr 7

House

House Committee of the Whole action: Do Pass

Mar 17

House

House majority caucus: Do pass

Mar 17

House

House minority caucus: Do pass