Read the full stored bill text
HB2516 - 572R - I Ver
REFERENCE TITLE:
watershed health; use; survey
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2516
Introduced by
Representatives
Stahl Hamilton: Garcia, Gutierrez, Sandoval, Simacek, Travers, Villegas;�
Senators Gabald�n, Ortiz
AN
ACT
amending
sections 45-101, 45-105, 45-151, 45-152.01 and 45-172, Arizona Revised
Statutes; relating to water.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section
1.
Section
45-101, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-101.
Definitions
In
this title, unless the context otherwise requires:
1. "Appropriator"
means the person or persons initiating or perfecting the right to use
appropriable water based on state law, or the person's successor or successors
in interest.
2. "Department"
means the department of water resources.
3. "Director"
means the director of water resources, who is also the director of the
department.
4.
"Effluent" means water that has been collected in a
sanitary sewer for subsequent treatment in a facility that is regulated
pursuant to title 49, chapter 2. Such water remains effluent until
it acquires the characteristics of groundwater or surface water.
5.
"Groundwater"
:
(
a
)
Means water
under the surface of the earth regardless of the geologic structure in which
it
the water
is standing or moving.
Groundwater
(
b
)
Does not
include water flowing in underground streams with ascertainable beds and banks.
6.
"Interstate stream" means any stream constituting
or flowing along the exterior boundaries of this state
,
and any tributary originating in another
state or foreign country and flowing into or through this state.
7.
"Riparian area"
:
(
a
)
Means a
geographically delineated area with distinct resource values
,
that is
characterized by deep-rooted plant species that depend on having roots in the
water table or its capillary zone and that occurs within or adjacent to a
natural perennial or intermittent stream channel or within or adjacent to a
lake, pond or marsh bed maintained primarily by natural water
sources.
Riparian area
(
b
)
Does not
include areas in or adjacent to ephemeral stream channels, artificially created
stockponds, man-made storage reservoirs constructed primarily for conservation
or regulatory storage, municipal and industrial ponds or man-made water
transportation, distribution, off-stream storage and collection systems.
8.
"Sanitary sewer" means any pipe or other enclosed
conduit that carries, among other substances, any water-carried wastes from the
human body from residences, commercial buildings, industrial plants or
institutions.
9.
"Surface water" means the waters of all sources,
flowing in streams, canyons, ravines or other natural channels, or in definite
underground channels, whether perennial or intermittent, floodwater, wastewater
or surplus water, and of lakes, ponds and springs on the
surface. For the purposes of administering this title, surface water
is deemed to include central Arizona project water.
10. "Watershed
health uses" means water that is conserved in a natural watercourse and
not otherwise used and that supports the attributes of watershed health for an
individual watershed as prescribed in the report required by section 45-105,
subsection B, PARAGRAPH 15.
END_STATUTE
Sec.
2.
Section
45-105, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-105.
Powers and
duties of director
A. The
director may:
1. Formulate
plans and develop programs for the practical and economical development,
management, conservation and use of surface water, groundwater and the
watersheds in this state, including the management of water quantity and
quality.
2. Investigate
works, plans or proposals pertaining to surface water and groundwater,
including management of watersheds, and acquire, preserve, publish and
disseminate related information the director deems advisable.
3. Collect
and investigate information on and prepare and devise means and plans for the
development, conservation and use of all waterways, watersheds, surface water,
groundwater and groundwater basins in this state and of all related matters and
subjects, including irrigation, drainage, water quality maintenance, regulation
of flow, diversion of running streams adapted for development in cooperating
with the United States or by this state independently, flood control, use of
water power, prevention of soil waste and storage, conservation and development
of water for every useful purpose.
4. Measure,
survey and investigate the water resources of this state and their potential
development and cooperate and contract with agencies of the United States for
such purposes.
5. Acquire,
hold and dispose of property, including land, rights-of-way, water
and water rights, as necessary or convenient for the performance of the
groundwater and water quality management functions of the department.
6. Acquire,
other than by condemnation, construct, improve, maintain and operate early
warning systems for flood control purposes and works for the recovery, storage,
treatment and delivery of water.
7. Accept
grants, gifts or donations of money or other property from any source, which
may be used for any purpose consistent with this title. All property
acquired by the director is public property and is subject to the same tax exemptions,
rights and privileges granted to municipalities, public agencies and other
public entities.
8. Enter
into an interagency contract or agreement with any public agency pursuant to
title 11, chapter 7, article 3 and contract, act jointly or cooperate with any
person to carry out the purposes of this title.
9. Prosecute
and defend all rights, claims and privileges of this state respecting
interstate streams.
10. Initiate
and participate in conferences, conventions or hearings, including
congressional hearings, court hearings or hearings of other competent judicial
or quasi-judicial departments, agencies or organizations, and negotiate
and cooperate with agencies of the United States or of any state or government
and represent this state concerning matters within the department's
jurisdiction.
11. Apply
for and hold permits and licenses from the United States or any agency of the
United States for reservoirs, dam sites and rights-of-way.
12. Receive
and review all reports, proposed contracts and agreements from and with the
United States or any agencies, other states or governments or their
representatives and recommend to the governor and the legislature action to be
taken on such reports, proposed contracts and agreements. The
director shall take action on such reports, if authorized by law, and review
and coordinate the preparation of formal comments of this state on both the
preliminary and final reports relating to water resource development of the
United States army corps of engineers, the United States secretary of the
interior and the United States secretary of agriculture, as provided for in the
flood control act of 1944 (58 Stat. 887; 33 United States Code section 701-1).
13. Contract
with any person for imported water or for the acquisition of water rights or
rights to withdraw, divert or use surface water or groundwater as necessary for
the performance of the groundwater management functions of the director prescribed
by chapter 2 of this title.� If water becomes available under any contract
executed under this paragraph, the director may contract with any person for
its delivery or exchange for any other water available.
14. Recommend
to the administrative heads of agencies, boards and commissions of this state,
and political subdivisions of this state, rules to promote and protect the
rights and interests of this state and its inhabitants in any matter relating
to the surface water and groundwater in this state.
15. Conduct
feasibility studies and remedial investigations relating to groundwater quality
and enter into contracts and cooperative agreements under section 104 of the comprehensive
environmental response, compensation, and liability act of 1980 (P.L. 96-510)
to conduct such studies and investigations.
16. Dispose
informally by stipulation, agreed settlement, consent order or alternative
means of dispute resolution, including arbitration, if the parties and director
agree, or by default of any case in which a hearing before the director is required
or allowed by law.
17. Cooperate
and coordinate with the appropriate governmental entities in Mexico regarding
water planning in areas near the border between Mexico and Arizona and for the
exchange of relevant hydrological information.
B. The
director shall:
1. Exercise
and perform all powers and duties vested in or imposed on the department and
adopt and issue rules necessary to carry out the purposes of this title.
2. Administer
all laws relating to groundwater, as provided in this title.
3. Be
responsible for the supervision and control of reservoirs and dams of this
state and, when deemed necessary, conduct investigations to determine whether
the existing or anticipated condition of any dam or reservoir in this state is
or may become a menace to life and property.
4. Coordinate
and confer with and may contract with:
(a) The
Arizona power authority, the game and fish commission, the state land
department, the Arizona outdoor recreation coordinating commission, the Arizona
commerce authority, the department of health services, active management area
water authorities or districts and political subdivisions of this state with
respect to matters within their jurisdiction relating to surface water and
groundwater and the development of state water plans.
(b) The
department of environmental quality with respect to title 49, chapter 2 for its
assistance in the development of state water plans.
(c) The
department of environmental quality regarding water plans, water resource
planning, water management, wells, water rights and permits, and other
appropriate provisions of this title pertaining to remedial investigations,
feasibility studies, site prioritization, selection of remedies and
implementation of the water quality assurance revolving fund program pursuant
to title 49, chapter 2, article 5.
(d) The
department of environmental quality regarding coordination of databases that
are necessary for activities conducted pursuant to title 49, chapter 2, article
5.
5. Cooperate
with the Arizona power authority in the performance of the duties and functions
of the authority.
6. Maintain
a permanent public depository for existing and future records of stream flow,
groundwater levels and water quality and other data relating to surface water
and groundwater.
7. Maintain
a public docket of all matters before the department that may be subject to
judicial review pursuant to this title.
8. Investigate
and take appropriate action on any complaints alleging withdrawals, diversions,
impoundments or uses of surface water or groundwater that may violate this
title or the rules adopted pursuant to this title.
9. Adopt
an official seal for the authentication of records, orders, rules and other
official documents and actions.
10. Provide
staff support to the Arizona water protection fund commission established by
chapter 12 of this title.
11. Exercise
and perform all powers and duties invested in the chairperson of the Arizona
water banking authority commission as prescribed by chapter 14 of this title.
12. Provide
staff support to the Arizona water banking authority established by chapter 14
of this title.
13. In
the year following each regular general election, present information to the
committees with jurisdiction over water issues in the house of representatives
and the senate.� A written report is not required but the presentation shall
include information concerning the following:
(a) The
current status of the water supply in this state and any likely changes in that
status.
(b) Issues
of regional and local drought effects, short-term and long-term
drought management efforts and the adequacy of drought preparation throughout
the state.
(c) The
status of current water conservation programs in this state.
(d) The
current state of each active management area and the level of progress toward
management goals in each active management area.
(e) Issues
affecting management of the Colorado river and the reliability of this state's
two million eight hundred thousand acre-foot allocation of Colorado river
water, including the status of water supplies in and issues related to the
Colorado river basin states and Mexico.
(f) The
status of any pending or likely litigation regarding surface water
adjudications or other water-related litigation and the potential impacts
on this state's water supplies.
(g) The
status of Indian water rights settlements and related negotiations that affect
this state.
(h) Other
matters related to the reliability of this state's water supplies, the
responsibilities of the department and the adequacy of the department's and
other entities' resources to meet this state's water management needs.
14.
Not later than December 1, 2023 and
On or before December 1 of each year
thereafter
, prepare and issue a water supply and demand
assessment for at least six of the fifty-one groundwater basins established
pursuant to section 45-403. The director shall ensure that a
water supply and demand assessment is completed for all groundwater basins and
initial active management areas at least once every five years. The
director may contract with outside entities to perform some or all of the
assessments and those outside entities shall be identified in the assessment.
15. On or
before December 31 every three years after the initial preliminary survey,
issue a report that includes an assessment of the overall health of each
watershed in this state.� Any agency or political subdivision of this state
that has information relevant to developing the survey and report prescribed by
this paragraph, including the determinations, assessments and recommendations
prescribed by this paragraph, shall cooperate with the director and shall
timely provide information requested by the director. The assessment
of the overall health of each watershed in this state shall be based on an
evaluation of the following attributes of the watershed:
(
a
) Hydrology.
(
b
) Landscape condition.
(
c
) Habitat condition.
(
d
) Geomorphology.
(
e
) Water quality.
(
f
) Biological condition, including the biodiversity of
plants, animals and aquatic species.
(
g
) Threats to or vulnerabilities of the watershed that
impact the attributes prescribed by this paragraph.
END_STATUTE
Sec.
3.
Section
45-151, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-151.
Right of
appropriation; permitted uses; water rights in stockponds
A. Any
person,
the
this
state
of Arizona
or a political subdivision
thereof
of this state
may
appropriate unappropriated water for domestic, municipal, irrigation, stock
watering, water power, recreation, wildlife, including fish, nonrecoverable
water storage pursuant to section 45-833.01
,
or
mining
or watershed health
uses, for
his
personal use or for delivery to
consumers. The person,
the
this
state
of Arizona
or a political
subdivision
thereof
of this state
first appropriating the water shall have the better
right.
B. To
effect the beneficial use, the person,
the
this
state
of Arizona
or a political
subdivision
thereof
of this state
appropriating the water may construct and
maintain reservoirs, storage facilities pursuant to chapter 3.1 of this title,
dams, canals, ditches, flumes and other necessary waterways.
C. A
water right in a stockpond, certified pursuant to article 10 of this chapter,
shall be recognized as if such water had been appropriated pursuant to this
article.
END_STATUTE
Sec.
4.
Section
45-152.01, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-152.01.
Instream
flow applications; process; definition
A. In
addition to the information prescribed in section 45-152, any person,
including the United States, this state or a municipality, who files an
instream flow application after
the effective date of this
section
August 2, 2012
shall comply with the following:
1. The
applicant shall submit at least five years of streamflow measurement data to
support the proposed beneficial use
,
which shall be submitted at the time the
application is filed.� The director shall not accept for filing an instream
flow application that is not accompanied by at least five years of continuous
streamflow measurement data. The streamflow data submitted shall
consist of gauged on-site measurements of available water flow from the
area in which the claimed beneficial use occurs.
2. The
instream flow application shall describe the proposed beneficial use and shall
specify both of the following:
(a) The
amount of streamflow required for the proposed beneficial use.
(b) The
availability of the requested flows during claimed periods of beneficial use.
B. Applications
that are submitted after
the effective date of this
section
August 2, 2012
shall be rejected if the application does not comply with this section.
C. This
section does not apply to applications for a permit to make an appropriation of
water under section 45-152 for watershed health uses.
C.
D.
For
the purposes of this section, "instream flow application" means an
application for a permit to make an appropriation of water for purposes of
recreation or wildlife, including fish, in a specific stream reach without
diverting the water from the stream.
END_STATUTE
Sec.
5.
Section
45-172, Arizona Revised Statutes, is amended to read:
START_STATUTE
45-172.
Transfer
of water rights; application; limitations; required consent
A. A
water right may be severed from the land to which it is appurtenant or from the
site of its use if for other than irrigation purposes and with the consent and
approval of the owner of such right may be transferred for use for irrigation of
agricultural lands or for municipal,
watershed health,
stock watering, power and mining purposes and to
the
this
state or its political subdivisions for use for recreation and wildlife
purposes, including fish, without losing priority theretofore established,
subject to the following limitations and conditions:
1. Except
as otherwise provided in this section
,
no such severance or transfer shall be made
unless approved by the director, and the approval of the director shall
prescribe the conditions of the approval.
2. Vested
or existing rights to the use of water shall not be affected, infringed
upon nor
on or
interfered with, and
in no event shall
the water
diverted or used after the transfer of such rights
shall
not
exceed the vested rights
existing at the time of such severance and transfer, and the director shall by
order so define and limit the amount of water to be diverted or used annually
subsequent to such transfer.
3. The
water rights sought to be transferred shall have been lawfully perfected under
the laws of the territory or
the
this
state
of
Arizona
and shall not have
thereafter been forfeited or abandoned.
4.
No such
a
severance or transfer of
water rights shall
not
be permitted or allowed from lands within the exterior boundaries of any
irrigation district, agricultural improvement district or water users'
association without first having obtained the written consent and approval of
such irrigation district, agricultural improvement district or water users'
association.
5.
No
a
right to the use of water on or from any watershed or drainage area
which
that
supplies or contributes water for
the irrigation of lands within an irrigation district, agricultural improvement
district or water users' association shall
n0t
be severed or transferred without the consent of
the governing body of such irrigation district, agricultural improvement
district or water users' association. All proposed applications for
the severance and transfer of a right to use water of or from any watershed or
drainage area
which
that
supplies or contributes water for the irrigation
of lands within any irrigation district, agricultural improvement district or
water users' association shall be submitted to the governing body of such
irrigation district, agricultural improvement district or water users'
association
prior to
before
the filing of such application with the
director. Within forty-five days after the receipt of the
application
,
such governing body shall reject or approve the proposed application. Failure
of such governing body to approve or reject the proposed application within
forty-five days after receipt shall constitute approval of the proposed
application by such governing body.
No
an
application for the
severance or transfer of a right to the use of water of or from any watershed
or drainage area
which
that
supplies or contributes water for the irrigation
of lands within any irrigation district, agricultural improvement district or
water users' association shall
not
be accepted for filing by the director unless
accompanied by the written consent of the governing body of such irrigation
district, agricultural improvement district or water users' association to the
proposed application or by satisfactory evidence that such governing body failed
to either accept or reject the proposed application within forty-five days
after receipt by such governing body.
6. A
severance and transfer of an irrigation water right appurtenant to lands within
the boundaries of an irrigation district to other lands within the boundaries
of the same irrigation district for agricultural use may be accomplished by the
exclusion of lands to which a water right is appurtenant from within the
boundaries of an irrigation district, and the inclusion in lieu of other lands
within the boundaries of such irrigation district. Such
a
severance and transfer of
a water right shall require the consent of only the irrigation district within
which the affected lands are situated and of the owners of the lands affected
by the severance and transfer. No proceedings before
nor
or
approval by the director shall be
required to accomplish such
a
severance and transfer.
7. An
application for severance and transfer of a water right shall be filed with the
director. The director shall give notice of the application by
publication once a week for three successive weeks in a newspaper of general
circulation in the county or counties in which the watershed or drainage area
is located. The notice shall state that any interested person may
file written objections to the proposed severance and transfer with the
director within thirty days after the last publication of the notice. In
appropriate cases, including cases in which an objection has been filed, an
administrative hearing may be held before the director's decision on the
application if the director deems a hearing necessary.
B. Section
45-114, subsections A and B govern administrative proceedings, rehearing
or review and judicial review of final decisions of the director under this
section.
END_STATUTE
Sec.
6.
Survey; status of waters of this state; delayed repeal;
definitions
A. The
director of the department of water resources shall:
1. Establish
a set of standard measures using the best available science to define
ecological water needs in this state. The standard measures
established by the director shall include criteria for examining the
relationship between ecological water needs, groundwater withdrawal and surface
water appropriations in this state.
2. On
or before December 31, 2028, publish a preliminary survey of the status of the
waters of this state, including the following:
(
a
) A watershed-by-watershed
description of the waters of this state, including an assessment of the overall
health of each watershed as prescribed by section 45-105, subsection B,
Arizona Revised Statutes, as amended by this act.
(
b
) A description of each subwatershed in which
there is insufficient water to satisfy the ecological water needs that are
identified as prescribed in paragraph 1 of this subsection.
(
c
) A determination of the appropriate methods and
steps necessary to monitor, maintain, improve and restore the ecosystems of
each watershed.
(
d
) A recommendation of any statutory changes that
are needed to facilitate actions supporting the ecological water needs of this
state.
3. Provide
for notice and comment of the preliminary survey by:
(
a
) Posting on the department of water resources'
website the preliminary survey prescribed by subsection A, paragraph 2 of this
section, copies of all notices required pursuant to section 41-1022, Arizona
Revised Statutes, and all proposed rulemakings.
(
b
) Notifying by first class mail, fax or email
each person who has made a timely request to the department of water resources
for notification of the preliminary survey prescribed by subsection A,
paragraph 2 of this section or for notification of all proposed rulemakings
under section 41-1022, Arizona Revised Statutes.
(
c
) Holding an open meeting and taking public
comment not sooner than sixty days after the department of water resources
provides notification under subdivisions (a) and (b) of this paragraph.
(
d
) Responding in writing to all public comments,
whether received at the hearing or otherwise, that are received by a date
announced by the director in the initial notice.
4. Post
the final survey and responses to all public comments received on the
department of water resources' website for a period of at least six months.
B. Any
agency or political subdivision of this state that has information relevant to
developing the survey, the determinations and the recommendations prescribed by
this section shall cooperate with the director of the department of water
resources and shall timely provide information requested pursuant to this
section by the director.
C. This
section is repealed from and after September 30, 2029.
D. For
the purposes of this section:
1. "Ecological
water needs" means water sufficient to sustain freshwater ecosystems,
including riparian areas, and the wildlife habitat, human livelihoods and well-being
that depend on those ecosystems.
2. "Groundwater"
has the same meaning prescribed by section 45-101, Arizona Revised
Statutes, as amended by this act.
3. "Surface
water" has the same meaning prescribed by section 45-101, Arizona
Revised Statutes, as amended by this act.