Read the full stored bill text
SB1176 - 572R - S Ver
Senate Engrossed
stormwater storage;
replenishment credits
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1176
AN
ACT
amending section 45-831.01, arizona
revised statutes; amending title 45, chapter 3.1, article 3, Arizona Revised
Statutes, by adding section 45-837.01; relating to water storage.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 45-831.01, Arizona Revised
Statutes, is amended to read:
START_STATUTE
45-831.01.
Water storage permits
A. A person may apply to the director for a water
storage permit and may store water at a storage facility only pursuant to a
water storage permit.
B. The director may issue a water storage permit to
store water at a storage facility if the director determines that all of the
following apply:
1. The applicant has a right to use the proposed
source of water
or the PROPOSED source of water is STORMWATER
as defined in section 45-837.01
that will be RECharged for aquifer REPLENISHMENT in a CONSTRUCTED
underground storage fACILITY PURSUANT to section 45-837.01
. Any
determination made by the director for purposes of this subsection regarding
the validity, nature, extent or relative priority of a water right claimed by
the applicant or another person is not binding in any other administration
proceeding or in any judicial proceeding.
2. The applicant has applied for any water quality
permit required by the department of environmental quality under title 49,
chapter 2, article 3 and by federal law.
3. The water storage will occur at a permitted
storage facility.
C. In addition to the requirements of subsection B
of this section, if the applicant has applied for a water storage permit to
store water at a groundwater savings facility, the director shall not issue the
water storage permit unless the applicant has agreed in writing to comply with
the plan by which the quantity of groundwater saved at the facility will be
proved each year.
D. If the director issues a water storage permit,
the director may make, if possible, the following determinations:
1. Whether the water to be stored is water that
cannot reasonably be used directly by the applicant and otherwise meets the
requirements of section 45-852.01 for long-term storage credits.
2. If use of the water to be stored is appurtenant
to a particular location, and if so, where the water may be legally used after
recovery. Any determination made by the director for purposes of this
subsection regarding the validity, nature, extent or relative priority of a
water right claimed by the applicant or another person is not binding in any
other administrative proceeding or in any judicial proceeding.
E. The director may issue a water storage permit for
a period of not more than fifty years, except that:
1. On request of the holder of the permit, the
director may renew the permit if the director determines that the requirements
of subsection B of this section apply and, if the requirement of subsection C
of this section applied at the time of issuance, that the requirement of
subsection C of this section applies at the time of renewal.
2. Subject to the provisions of this chapter, the
holder of long-term storage credits earned pursuant to the permit may
recover the water over a period longer than the duration of the permit.
F. The holder of a water storage permit may apply to
the director for approval to convey the permit to another
person. The director may approve the conveyance if the director
determines that the person to whom the permit is to be conveyed and the water
storage will continue to meet the applicable requirements of this
section. If long-term storage credits accrued pursuant to the
water storage permit are being assigned pursuant to section 45-854.01
with the water storage permit, the director shall be given notice of the
impending assignment of long-term storage credits at the time the holder
of the water storage permit applies to convey the permit.
G. A person who holds a water storage permit may
apply to the director on a form approved by the director for a modification of
that water storage permit. The director may modify the permit within
twenty days
of
after
receiving the
application without complying with section 45-871.01 if all of
the following apply:
1. The holder of the storage facility permit with
which the water storage permit is affiliated has consented to the modification.
2. The modification to the water storage permit does
not require a modification of the affiliated water storage facility permit.
3. The only modification requested is to add an
amount of Colorado river water as a type of water to be stored under the water
storage permit.
4. Water storage of Colorado river water has
previously been permitted at the affiliated storage facility.
5. The person requesting the modification has the
right to use the Colorado river water.
H. A water storage permit shall include the
following information:
1. The name and mailing address of the person to
whom the permit is issued.
2. The storage facility where the water storage will
occur and the name of the active management area, irrigation non-expansion
area, groundwater basin or groundwater
sub-basin
subbasin
, as applicable, in which that facility is located.
3. The maximum annual amount of water that may be
stored.
4. If the applicable finding of subsection D of this
section has been made, whether the water to be stored is water that cannot
reasonably be used directly by the applicant.
5. If the applicable finding of subsection D of this
section has been made, any restrictions on where the water to be stored may
legally be used.
6. Other conditions consistent with this chapter.
7. The duration of the permit.
I. If the water
storage will occur at a groundwater savings facility, the water storage permit
shall include, in addition to the information required by subsection H of this
section, the requirements of the plan by which the quantity of groundwater
saved at the storage facility will be proved each year.
J. If the director of the department of water
resources decides to issue a water storage permit and the applicant has not
received a water quality permit required by the department of environmental
quality under title 49, chapter 2, article 3 and by federal law, the director
of the department of water resources shall make receipt of the water quality
permit a condition of the water storage permit and the holder of the water
storage permit shall not store water until receiving the water quality permit.
END_STATUTE
Sec. 2. Title 45, chapter 3.1, article 3,
Arizona Revised Statutes, is amended by adding section 45-837.01, to read:
START_STATUTE
45-837.01.
Stormwater storage; replenishment credits; definition
A. a storer
in
the phoenix active management area
may recharge stormwater within a constructed underground storage
facility pursuant to the operational terms of the water storage and constructed
underground storage facility permits and in compliance with all applicable
water quality permits and receive a replenishment credit.
b. The Director shall annually
determine the quantity of stormwater recharged by a storer AND shall credit the
storer's replenishment credit account with ninety-five percent of the total
volume of recharged stormwater in the previous calendar year.� The Director
shall maintain a record of earned and transferred replenishment credits for
each credit HOLDER AND shall debit credits from the holder's account equal to
the amount of credits used.
C. a storer may use Replenishment
credits or TRANSFER the CREDITS to any other eligible entity and offset an
equal amount of the storer's replenishment obligation within the same subbasin
for any year.� a storer may use REPLENISHMENT credits to offset the storer's
REPLENISHMENT
obligation if the offset is for either:
1. groundwater withdrawn from a well
within two miles of the constructed underground storage facility where
replenishment occurred.
2. groundwater withdrawn and served
by a water provider within the water provider's service area and a portion of
the service area is located within two miles of the constructed underground
storage facility where the replenishment occurred.
D. The director shall treat
REPLENISHMENT credits as GROUNDWATER AND NOT as stored water.
E. Notwithstanding any other law, the
director may issue a permit to an underground storage facility solely for the
storage of stormwater as provided in this section or for a combination of water
sources.
F. THE STORAGE OF STORMWATER PURSUANT
TO THIS SECTION does NOT AFFECT, INFRINGE ON OR INTERFERE WITH VESTED OR
EXISTING RIGHTS TO THE USE OF WATER.
G. FOR THE PURPOSES OF THIS SECTION,
"STORMWATER":
1. Means water that has been
collected in a system designed to carry rainfall RUNOFF FROM STREETS,
SIDEWALKS, GUTTERS AND OTHER IMPERVIOUS SURFACES, INCLUDING THOSE IN
SUBDIVISIONS, TO A LOCATION WHERE THE WATER IS RETAINED.
2. DOES NOT INCLUDE SURFACE WATER,
EFFLUENT, INCIDENTAL RECHARGE AS DEFINED IN SECTION 45-561 OR NET NATURAL
RECHARGE AS DEFINED IN SECTION 48-4401.
END_STATUTE