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HB4100 • 2026

municipal water providers; notice; rates

HB4100 - municipal water providers; notice; rates

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Alexander Kolodin
Last action
2026-02-12
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The effective date in metadata was blank; however, Section 2 states it is an emergency measure operative immediately upon passage.

HB4100: Notice of Potential Water Rate Increases

This bill requires municipal water providers that receive Central Arizona Project (CAP) water to estimate and notify customers about potential rate increases if they lose all CAP water.

What This Bill Does

  • Requires providers to estimate the total cost per acre-foot for securing, treating, and delivering an alternative water supply if 100% of their CAP water is lost.
  • Mandates public notice to each customer about potential rate increases caused by losing all CAP water.
  • Specifies that notices must include percentage revenue increases for each customer class, typical monthly bill changes for a standard residential user, and current versus potential costs.
  • Requires providers to mail the notice as a bill insert or separate letter, publish it in local newspapers, and post it on their websites.
  • Sets April 15, 2026, as the deadline for completing these estimates and sending notices.

Who It Names or Affects

  • Municipal water providers that receive or have an allocation of Central Arizona Project (CAP) water through a subcontract with CAWCD or a lease.
  • Customers who pay bills to those municipal water providers in affected service areas.

Terms To Know

Central Arizona Project (CAP)
A system that delivers Colorado River water to cities, utilities, agricultural districts, and Native American communities in central and southern Arizona.
Municipal provider
An entity defined by state law (ARS 45-561) that supplies water to a city or town.

Limits and Unknowns

  • This bill only requires providers to estimate and report potential costs; it does not actually change current rates.
  • The legislation is repealed on January 1, 2027 (effective after December 31, 2026), so the requirement ends at that time.
  • The text defines who must comply but does not list specific cities or towns by name.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: This amendment requires specific water providers in Arizona to calculate and share with customers how much their bills might rise if they lose all Central Arizona Project water.

  • Expands the rule to include cities, towns, or private water providers that get water from the Central Arizona Project through subcontracts or leases.
  • Requires these providers to estimate the cost of finding alternative water sources if their current supply disappears completely.
  • Mandates a public notice sent by mail, published in newspapers, and posted online showing potential rate increases for different customer types.
  • Sets an April 15, 2026 deadline for sending these notices before the rule expires on December 31, 2026.
  • The amendment does not explain exactly how providers must calculate the cost of alternative water sources.
  • It is unclear if this applies to all private providers or only those with specific types of contracts in Phoenix, Tucson, and Pinal areas.

Bill History

  1. 2026-02-12 House

    House second read

  2. 2026-02-11 House

    House Rules: None

  3. 2026-02-11 House

    House Natural Resources, Energy & Water: FAILED

  4. 2026-02-11 House

    House first read

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.

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4100

12.

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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.