Official Summary Text
SB1200 - 572R - Senate Fact Sheet
Assigned to
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ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
S.B. 1200
assured water supply;
certificate; model
Purpose
An emergency
measure that requires the Arizona Department of Water Resources (ADWR) to
review the merits of a certificate of assured water supply and issue a new
written determination of action if prescribed conditions apply and using
outlined models as criteria. Requires a certificate of assured water supply
issued pursuant to outlined requirements to relate back as if issued in
calendar year 2023 for the purposes of an application for designation of
assured water supply under outlined rules adopted by ADWR.
Background
A person who
proposes to offer subdivided lands for sale or lease in an active management
area (AMA) must apply for and obtain a certificate of assured water supply from
the Director of ADWR before presenting the plat for approval to the city, town
or county in which the land is located and before filing with the State Real
Estate Commissioner a notice of intention to offer such lands for sale or
lease, unless the subdivider has obtained a written commitment of water service
for the subdivision from a designated provider. A city, town or county may only
approve a subdivision plat if the subdivider has obtained a certificate of
assured water supply from the Director of ADWR or the subdivider has obtained a
written commitment of water supply from a designated provider.
An
assured
water supply
means that: 1) sufficient groundwater, surface water or
effluent of adequate quality will be continuously available to satisfy the
water needs of the proposed use for at least 100 years; 2) the projected
groundwater use is consistent with the management plan and achievement of the
management goal for the AMA; and 3) the financial capability has been
demonstrated to construct the water facilities necessary to make the supply of
water available for the proposed use, including a delivery system and any
storage facilities or treatment works (
A.R.S.
� 45-576
).
There is no anticipated fiscal impact to the state
General Fund associated with this legislation.
Provisions
1.
Requires
ADWR, on request of an applicant, to review the merits of an application for a
certificate of assured water supply and issue a new written determination of
action if:
a)
the
application is for a certificate of assured water supply for land located in
the Phoenix AMA;
b)
the
application was submitted on or after January 26, 2021, and by August 31, 2023;
c)
ADWR
has not issued a certificate of assured water supply; and
d)
the
municipal provider for the land covered by the application has submitted to
ADWR a notice of intent to serve.
2.
Requires
the outlined notice of intent to serve to state that:
a)
each
year after the issuance of the certificate of assured water supply for the land
covered by the application, the municipal provider must calculate the total
amount of excess groundwater delivered by the municipal provider during the
preceding calendar year to parcels of member land contained within the land
covered by the application;
b)
the
municipal provider, by March 31 of each year after the issuance of the
certificate of assured water supply for the land covered by an application,
must offer to assign to the multi-county water conservation district long-term
storage credits accrued in the Phoenix AMA and held by the municipal provider;
c)
the
number of long-term storage credits offered by the municipal provider in a year
must equal 25 percent of the total excess groundwater calculated by the
municipal provider for the preceding calendar year;
d)
the
Central Arizona Groundwater Replenishment District (CAGRD) may elect to
purchase all, or a portion of the long-term storage credits offered in a year
and the municipal provider must accept a purchase price per acre foot of not
less than the average per-acre-foot price paid by CAGRD for long-term storage
credits in the Phoenix AMA during the preceding five calendar years; and
e)
the
obligation to assign long-term storage credits must continue for so long as the
parcels of member land contained within the land covered by the certificate of
assured water supply retain all or any portion of a parcel replenishment
obligation.
3.
Requires, if a municipal provider enters into a member service area
agreement with CAGRD, the minimum amount of excess groundwater that the
municipal provider is obligated to report to CAGRD in a year and that is
subject to an annual replenishment tax to be reduced by the long-term storage
credits transferred to CAGRD by the municipal provider in that year.
4.
Prohibits CAGRD's purchase of long-term storage credits that are offered
by a municipal provider from affecting the annual replenishment assessment
charged by CAGRD against parcels of member land contained within the land
covered by a certificate of assured water supply.
5.
Requires ADWR, if an application for a certificate of assured water
supply reviewed by ADWR was supported using either the 2006-2009 Salt River
Valley Regional Model or the 2006 Lower Hassayampa Sub-Basin Groundwater Flow
Model, to determine that the application meets the physical availability
requirements for groundwater.
6.
Requires all remaining requirements for a certificate of assured water
supply to remain applicable to the determination to issue the certificate of
assured water supply.
7.
Requires ADWR, within 10 days after the effective date of this
legislation, to notify all applicants that meet the outlined criteria of the
ability to have determinations of assured water supply reviewed.
8.
Allows applicants to request that ADWR review their pending
applications.
9.
Allows applicants to resubmit and request review of a withdrawn
application.
10.
Requires a
certificate of assured water supply issued pursuant to outlined requirements to
relate back as if issued in calendar year 2023 for the purposes of an
application for designation of assured water supply under rules adopted by ADWR
for inclusion in the base supply of physically available groundwater for the
municipal provider on issuance of the designation of assured water supply.
11.
Repeals the
outlined requirements relating to certificates of assured water supply on
January 1, 2029.
12.
Becomes
effective on signature of the Governor, if the emergency clause is enacted.
Prepared by Senate Research
January 30, 2026
SB/hk
Current Bill Text
Read the full stored bill text
SB1200 - 572R - S Ver
Senate Engrossed
assured water supply;
certificate; model.
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1200
AN
ACT
providing
for certificates of assured water supply.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section
1.
Certificate of assured water supply; review; delayed repeal
A. On request of an
applicant, the department of water resources shall review the merits of an
application for a certificate of assured water supply and shall issue a new
written determination of action if all of the following apply:
1. The application is for a
certificate of assured water supply
for land
located in the Phoenix active management area.
2. The application was
submitted on or after January 26, 2021 and on or before
August 31, 2023.
3.
As of the effective date of this section, the department of
water resources
has
not
issued the applicant a certificate of
assured water supply.
4. The municipal provider
for the land covered by the application has submitted to the department of
water resources a notice of intent to serve that states that:
(
a
) Each
year after the issuance of the certificate of assured water supply for the land
covered by the application, the municipal provider shall calculate the total
amount of excess groundwater delivered by the municipal provider during the preceding
calendar year to parcels of member land contained within the land covered by
the application.
(
b
) On
or before March 31 of each year after the issuance of the certificate of
assured water supply for the land covered by the application, the municipal
provider shall offer to assign to the multi-county water conservation
district that is established pursuant to title 48, chapter 22, Arizona Revised
Statutes, and that operates as the central Arizona groundwater replenishment
district or the central Arizona groundwater replenishment district pursuant to
title 48, chapter 22, article 4, Arizona Revised Statutes, long-term storage
credits accrued pursuant to title 45, chapter 3.1, Arizona Revised Statutes, in
the Phoenix active management area and held by the municipal provider.
(
c
) The
number of long-term storage credits offered by the municipal provider in a year
shall equal twenty-five percent of the total excess groundwater calculated by
the municipal provider for the preceding calendar year pursuant to subdivision (
a
) of this paragraph.
(
d
) The
central Arizona groundwater replenishment district may elect to purchase all or
a portion of the long-term storage credits offered in a year and the municipal
provider shall accept a purchase price per acre-foot of not less than the
average per-acre-foot price paid by the central Arizona groundwater
replenishment district for long-term storage credits in the Phoenix
active management area during the preceding five calendar years.
(
e
) The
obligation to assign long-term storage credits shall continue for so long as
the parcels of member land contained within the land covered by the certificate
of assured water supply retain all or any portion of a parcel replenishment
obligation pursuant to section 48-3771, Arizona Revised Statutes.
B. If a municipal provider
enters into a member service area agreement with the central Arizona
groundwater replenishment district, the minimum amount of excess groundwater
that the municipal provider is obligated to report to the central Arizona
groundwater replenishment district in a year and that is subject to an annual
replenishment tax under section 48-3781, Arizona Revised Statutes, shall be
reduced by the long-term storage credits transferred to the central Arizona
groundwater replenishment district by the municipal provider in that year
pursuant to subsection A of this section.�
C. The central Arizona
groundwater replenishment district's purchase of long-term storage
credits that are offered by a municipal provider pursuant to subsection A of
this section shall not affect the annual replenishment assessment charged by
the central Arizona groundwater replenishment district against parcels of
member land contained within the land covered by a certificate of assured water
supply issued under this section.
D. If an application for a
certificate of assured water supply reviewed by the department of water
resources under this section was supported
using either the 2006-2009 Salt River valley regional
model or the 2006 Lower Hassayampa Sub-basin groundwater flow model
, the department of water resources shall determine that the
application meets the physical availability requirements for groundwater
pursuant to section 45-576, Arizona Revised Statutes. All remaining
requirements for a certificate of assured water supply shall remain applicable
to the determination to issue the certificate of assured water supply.
E. Within
ten
days after the effective date of this section, the
department shall notify all applicants
that
meet the criteria of subsection A, paragraphs 1, 2 and 3 of this section of the
ability to have their determinations of assured water supply reviewed.
F. Applicants
may
request that the department review their
pending
applications
or may resubmit
and request review of a withdrawn application.
G. A certificate of assured
water supply issued pursuant to this section shall relate back as if issued in
calendar year 2023 for the purposes of an application for designation of
assured water supply under rules adopted by the department of water resources
pursuant to section 45-576, Arizona Revised Statutes, for inclusion in
the base supply of physically available groundwater for the municipal provider
on issuance of the designation of assured water supply.
H. This section is repealed
from and after December 31,
2028.
(ENACTED
WITHOUT THE EMERGENCY)
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.