Official Summary Text
HB4100 - 572R - House Bill Summary
ARIZONA HOUSE OF REPRESENTATIVES
57th
Legislature, 2nd Regular Session
Majority Research Staff
HB4100
:
municipal water providers; notice; rates
Sponsor:
Representative Kolodin, LD 3
Committee
on Natural Resources, Energy & Water
Overview
An
emergency measure that directs a municipal provider that receives water from
the Central Arizona Project (CAP) to notify customers as outlined of the
potential increase of their water rates as a result of losing 100% of the water
provided by the CAP.
History
In 1968, the CAP was established by the
Colorado River
Basin Project Act
to deliver 1.5 million acre-feet of Colorado
River to the most populous areas of the state and reduce the use of groundwater
for agriculture and other activities. The CAP water is used by cities, water
utilities, agricultural districts and Native American communities throughout
central and southern Arizona.
In 1971, the Central Arizona Water Conservation District
(CAWCD), a special taxing district, was created to provide Arizona a means to
repay the federal government for the reimbursable costs of construction and to
manage and operate the physical system. The price of water is determined
annually by the CAWCD Board of Directors based on projections of energy,
operation, maintenance and replacement costs (
CAP
)(
Arizona State Library
).
Provisions
1.
Requires a
municipal provider, by April 15, 2026, that receives or has an allocation of
water from the CAP pursuant to a subcontract with the CAWCD or a lease with
another person or subcontract to:
a.
estimate the
total cost per acre-foot of securing, treating and delivering an alternative
water supply if 100% of the water acquired or leased from the CAP is no longer
available; and
b.
provide
public notice to each customer of the potential increase in rates resulting
from losing 100% of the water from CAP. (Sec. 1)
2.
Mandates
that the notice be in the same form and manner as the public notices required
of public service corporations in rate cases by the Arizona Corporation
Commission. (Sec. 1)
3.
Requires the
notice include:
a.
the
potential revenue increase levels for each customer class, in percent;
b.
the
potential monthly bill increase for a typical residential water customer that
are served by a five-eighths inch meter with an average monthly usage; and
c.
the typical
current bill, potential bill, potential dollar increase and potential
percentage increase. (Sec. 1)
4.
Instructs a
municipal provider, by April 15, 2026, to:
a.
mail the
notice as a bill insert or a separate mailing to each of its customers in each
affected service area;
b.
publish the
notice at least once in a newspaper in each affected service area; and
c.
post the
notice in a prominent location on its website. (Sec. 1)
5.
Repeals this
legislation on January 1, 2027. (Sec. 1)
6.
Defines
municipal
provider
. (Sec. 1)
7.
Contains an
emergency clause. (Sec. 2)
8.
9.
10.
---------- DOCUMENT
FOOTER ---------
11.
Initials CW��������������������� HB
4100
12.
2/15/2026� Page 0 Natural
Resources, Energy & Water
13.
14.
---------- DOCUMENT
FOOTER ---------
Current Bill Text
Read the full stored bill text
HB4100 - 572R - I Ver
REFERENCE TITLE:
municipal water providers; notice; rates
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 4100
Introduced by
Representative
Kolodin
AN
ACT
PROVIDING for notice of a potential water
rate increase.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1.
Municipal
providers; central Arizona project subcontracts; rates; notice; delayed repeal;
definitions
A. On or before April 15,
2026, each municipal provider that receives or has an allocation of water from
the central Arizona project pursuant to a subcontract with the central Arizona
water conservation district organized under title 48, chapter 22, Arizona
Revised Statutes, or that receives or has an allocation of water from the
central Arizona project pursuant to a lease with another person or subcontract
with the central Arizona water conservation district shall do both of the
following:
1. Estimate the total cost
per acre-foot of securing, treating and delivering an alternative water supply
if one hundred percent of the water that is acquired or leased directly or
indirectly from the central Arizona project is no longer available.
2. Provide public notice to
each customer of the potential increase in rates resulting from losing one
hundred percent of the water that is acquired or leased directly or indirectly
from the central Arizona project.� The notice shall be in substantially the
same form and manner as the public notices required of public service
corporations in rate cases by the corporation commission and shall include the
following information:
(
a
)
The potential revenue increase levels for each
customer class, in percent.
(
b
)
The potential monthly bill increase for a
typical residential water customer that are served by a five-eighths inch meter
with an average monthly usage.
(
c
) T
he typical current bill, potential bill, potential dollar
increase and potential percentage increase.
B. On or before April 15,
2026, a municipal provider that is subject to this section shall do all of the
following:
1. Mail to each of its
customers in each affected service area a copy of the notice required pursuant
to this section as a bill insert or as a separate mailing.
2. Cause a copy of the
notice required pursuant to this section to be published at least once in a
newspaper of general circulation in each affected service area.
3. Post a copy of the
notice required pursuant to this section in a prominent location on its
website.
C. This section is repealed
from and after December 31, 2026.
D. For the purposes of this
section, "municipal provider" has the same meaning prescribed in
section 45-561, Arizona Revised Statutes.
Sec. 2.
Emergency
This act is an emergency measure that
is necessary to preserve the public peace, health or safety and is operative
immediately as provided by law.