1996 AZ Legislature Enacts Water Bills

The most significant piece of water legislation, if not the most significant piece of legislation of the entire 1996 legislative session, HB 2494 (Chap 308 H 2494) created the Arizona Water Banking Authority. This piece of legislation represents the latest maneuver to ensure that Arizona gets its fair share of Colorado River water.

Arizona has never used its full allotment of 2.8 million acre-feet of Colorado River water and is not expected to do so until about 2030. California and Nevada consider this unused water up for grabs, and they argue for its redistribution to increase their allotments. HB 2494 is based on the premise that using its water is Arizona's best response to its neighboring states' maneuvers.

HB 2494 establishes the AWBA which annually will purchase a portion of Arizona's unused Colorado River allotment. The water will flow through Central Arizona Project canals to be stored in underground aquifers in central Arizona. The stored water can be used for drought protection, as well as to help replenish depleted aquifers in the state and to help settle Indian Water Right claims.

Three sources make up most of AWBA's funding: existing groundwater pumping fees in the Tucson and Phoenix areas and in Pinal County; a previously authorized water storage tax levied by the Central Arizona Water Conservation District; and a State General Fund appropriation. This year $2 million was appropriated from the General Fund for the effort.

HB 2494 contains a provision allowing water transfers of specific quantities of unused water to similar authorities in California and Nevada. The contracting state would pay to store water in Arizona thus helping to replenish the state's aquifers. They then can make future withdrawals of a similar quantity directly from the river. Under this bill, no future Arizona water rights would be jeopardized by the transfers.

A five-member commission made up of the ADWR director, president or designee of Central Arizona Water Conservation District and three governor appointees will run the AWBA.

Water was also the subject of other pieces of legislation. Brief descriptions of some water legislation follow, with additional pieces of water legislation to be discussed in the next AWR: (Abstracts are from the "Capitol Times" and are reprinted with permission).

Chap 28 S 1152
Water Authority; Mohave County

The statute controlling distribution of revenue from county water authorities is amended to reduce to $7.5 million from $10,250,000 the amount of the required grant for the right to 18,500 acre-feet of Colorado River water transferred in connection with the authority's formation and to exempt some subcontractor payments from having to be deposited in a grant fund. Reference title mentions Mohave County. The $7.5 million can be augmented by any additional amount agreed to by the authority and the member receiving the grant.

Chap 101 H 2549
Flood Control District Study

A committee of 3 senators and 3 representatives is created to compare advantages and disadvantages of city and county flood control districts, taking testimony from specified officials and studying such issues as how tax revenue would be affected if city districts replaced part of county districts. A report is due by December 1, 1996 on the best way to solve flood- and storm-water problems in Arizona. Self-repealing February 1, 1997.

Chap 103 S 1293
Water Amendments; Omnibus

Numerous changes are made in state water law, including: conditions on substitution of acreage that is irrigated with land that is not irrigated; eliminating the requirement for payment when groundwater is transported for mineral extraction and processing; notice requirements for a certificate of assured water supply; restrictions on funds collected in Active Management Areas to purchase and retire grand-fathered rights. The director of water resources shall debit from each long-term shortage account an amount equal to 5 percent of the balance, with certain exceptions. As Passed by House, March 28.

Chap 149 S 1368
Water; Semiprivate Agricultural

The regulatory authority of the Department of Environmental Quality does not extend to semiprivate agricultural water systems unless a health hazard is identified. The quality of water provided by such systems shall comply with maximum contaminant levels for nitrates, nitrites, and total coliform bacteria. Annual tests are required. Tests every three years are required for inorganic chemicals, asbestos, volatile organic chemicals, radiochemicals, and synthetic organic chemicals. Procedures are established for actions if exceedences are found. Private agricultural water systems are defined. Effective July 1, 1997.

Chap 207 H 2191
Water System Viability Study

A joint legislative study committee on the viability of small water systems is established. The committee is to report by December 31, 1996, on: the ability of small water systems to comply with and recover through rate hearings water quality testing requirements, state water policy and water conservation statutes; the feasibility of coordinated water quality testing; development of a program to assess small water systems in meeting regulatory requirements. Self-repealing at end of 1996.

Chap 84 H 2243
County Wastewater District

Purposes for which a county can establish an improvement district are expanded to include construction and operation of wastewater treatment facilities.