Bill Text: AZ HB2540 | 2019 | Fifty-fourth Legislature 1st Regular | Introduced
Bill Title: Pinal groundwater infrastructure fund; appropriation.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2019-01-29 - House read second time [HB2540 Detail]
Download: Arizona-2019-HB2540-Introduced.html
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REFERENCE TITLE: Pinal groundwater infrastructure fund; appropriation. |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HB 2540 |
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Introduced by Representatives Bowers: Griffin
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AN ACT
amending sections 45-611, 45-613 and 45-615, Arizona Revised Statutes; amending title 45, chapter 2, article 11, Arizona Revised Statutes, by adding section 45-615.01; repealing section 45‑615.01, Arizona Revised Statutes; amending section 45‑2425, Arizona Revised Statutes; appropriating monies; relating to water.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 45-611, Arizona Revised Statutes, is amended to read:
45-611. Groundwater withdrawal fee; amounts and purposes of fee; exception
A. Except as provided in subsection B of this section, the director shall levy and collect an annual groundwater withdrawal fee from each person withdrawing groundwater in the Prescott active management area or the person who owns the right to withdraw the groundwater, in an amount not to exceed five dollars $5 per acre-foot of groundwater withdrawn and beneficially used. The director shall levy and collect an annual withdrawal fee from each person withdrawing water, other than stored water, from a well in the Santa Cruz active management area or the person who owns the right to withdraw the water, in an amount not to exceed five dollars $5 per acre-foot of water, other than stored water, that is withdrawn and beneficially used. For the purposes of this article, the annual withdrawal fee levied and collected in the Santa Cruz active management area shall be considered a groundwater withdrawal fee. The actual amount of the fee levied and collected by the director pursuant to this subsection shall be set by the director as follows:
1. For administration and enforcement of this chapter, an amount not less than fifty cents $.50 and not greater than one dollar $1 per acre-foot per year. The initial fee for administration and enforcement shall be levied as soon as practicable after the active management area is established.
2. For augmentation of the water supply of the active management area, conservation assistance to water users within the active management area and monitoring and assessing water availability within the active management area, an amount not greater than two dollars $2 per acre-foot per year.
3. For purchasing and retiring grandfathered rights, an amount not greater than two dollars $2 per acre-foot per year. The initial fee for purchasing and retiring grandfathered rights shall be levied in the first year in which the director develops and implements a program for the purchase and retirement of grandfathered rights as part of the management plan for the active management area, but not earlier than January 1, 2006. The director may not levy a fee under this paragraph on a district member of a groundwater replenishment district that withdraws groundwater in the district for a non‑irrigation use in the district.
B. A person, other than an irrigation district, who withdraws groundwater in an active management area from a non-exempt well for use pursuant to an irrigation grandfathered right that is appurtenant to ten or fewer irrigation acres and the person who owns the right to withdraw the groundwater are exempt from the groundwater withdrawal fee requirements of subsections A and C of this section for those withdrawals unless the irrigation acres are part of an integrated farming operation.
C. Except as provided in section 45‑411.01, subsection C and subsection B of this section, the director shall levy and collect an annual groundwater withdrawal fee from each person who withdraws groundwater in the Tucson, Phoenix and Pinal active management areas or the person who owns the right to withdraw the groundwater, in an amount of not more than five dollars $5 per acre-foot of groundwater withdrawn and beneficially used. The director shall set the actual amount of the fee as follows:
1. In the Tucson and Phoenix active management areas, beginning in 2017, for administration and enforcement of this chapter, an amount of at least fifty cents $.50 but not more than one dollar $1 per acre-foot per year. In the Pinal active management area, beginning in 2017, for administration and enforcement of this chapter, an amount of not more than one dollar $1 per acre‑foot per year.
2. Through 2016, For augmentation of the water supply of the active management area, conservation assistance to water users within the active management area and monitoring and assessing water availability within the active management area, an amount of not more than fifty cents per acre-foot per year, and after 2016, an amount of not more than two dollars $2 per acre‑foot per year. If a permanent board of directors of an active management area water district assumes office under section 48‑4831, the fee for augmentation under this paragraph shall not be levied in that active management area.
3. In the Tucson and Phoenix active management areas, for Arizona water banking purposes, the amount of two dollars fifty cents $2.50 per acre‑foot per year. In the Pinal active management area, through 2016, for Arizona water banking purposes, including replenishment under chapter 15, article 3 of this title, the amount of two dollars fifty cents per acre‑foot per year and, beginning in 2017, for Arizona water banking purposes, including replenishment under chapter 15, article 3 of this title, an amount of not more than two dollars fifty cents $2.50 per acre‑foot per year, except that no fee shall be levied in the Pinal active management area for this purpose during calendar years 2020 through 2026.
4. For purchasing and retiring grandfathered rights, an amount of not more than two dollars $2 per acre-foot per year. The initial fee for purchasing and retiring grandfathered rights shall be levied in the first year in which the director develops and implements a program for the purchase and retirement of grandfathered rights as part of the management plan for the active management area, but not earlier than January 1, 2006. The director may not levy a fee pursuant to this paragraph on a district member of a groundwater replenishment district that withdraws groundwater in the district for non-irrigation use in the district.
5. IN THE PINAL ACTIVE MANAGEMENT AREA, BEGINNING from and after December 31, 2019 THROUGH from and after December 31, 2026, AN AMOUNT OF NOT MORE THAN $2.50 PER ACRE-FOOT PER YEAR FOR GROUNDWATER AND IRRIGATION EFFICIENCY PROJECTS.
Sec. 2. Section 45-613, Arizona Revised Statutes, is amended to read:
45-613. Use of withdrawal fees collected for augmentation and conservation and purchase and retirement of grandfathered rights, Arizona water banking purposes and groundwater and irrigation efficiency projects
A. Except as provided in section 45‑615, paragraph 2 and sections 45‑1972 and 48‑4504, monies collected in an active management area for purposes of augmentation, conservation assistance and monitoring and assessing water availability under section 45‑611, subsection A, paragraph 2 and subsection C, paragraph 2 shall be used only to finance the augmentation and conservation assistance programs that are part of the management plan for the active management area and to fund any projects that are authorized by the director for monitoring and assessing water availability within the active management area.
B. Monies collected in an active management area for the purpose of purchasing and retiring grandfathered rights under section 45‑611, subsection A, paragraph 3 and subsection C, paragraph 4 shall be used only to finance the program for the purchase and retirement of grandfathered rights that is part of the management plan for the active management area.
C. Monies collected in an active management area for the purpose of Arizona water banking under section 45‑611, subsection C, paragraph 3 shall be used only for the benefit of the active management area in which they are collected.
D. MONIES COLLECTED IN THE PINAL ACTIVE MANAGEMENT AREA FOR THE PURPOSE OF GROUNDWATER AND IRRIGATION EFFIciENCY PROJECTS UNDER SECTION 45-611, SUBSECTION C, PARAGRAPH 5 SHALL BE USED ONLY TO FINANCE PROJECTS FOR THE CONSTRUCTION AND REHABILITATION OF WELLS AND RELATED INFRASTRUCTURE FOR THE WITHDRAWAL AND EFFICIENT DELIVERY OF GROUNDWATER BY IRRIGATION DISTRICTS IN THE PINAL ACTIVE MANAGEMENT AREA.
Sec. 3. Section 45-615, Arizona Revised Statutes, is amended to read:
45-615. Deposits; divisions of collections into funds
Except as provided in section 45‑113, subsection C, the director shall deposit, pursuant to sections 35‑146 and 35‑147, all monies collected by the department pursuant to section 45‑611, subsection A, paragraphs 2 and 3 and subsection C, paragraphs 2, 3 and 4 and any other monies received for that purpose. Based on the statement of the director transmitted pursuant to section 45‑614, subsection B, the monies collected shall be allocated as follows:
1. Except as provided in paragraph 2 of this section, monies received for the purpose of augmentation of the water supply of the active management area, conservation assistance to water users within the active management area and monitoring and assessing water availability within the active management area shall be kept in an augmentation and conservation assistance fund. Separate accounts for each active management area shall be maintained within the fund. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.
2. If an active management area water district has been established in an active management area, all monies received pursuant to section 45‑611, subsection A, paragraph 2 for the purpose of augmentation of the water supply of that active management area shall be transmitted to the secretary‑treasurer of the district for deposit in the general fund of the district.
3. Monies received for the purpose of purchase and retirement of grandfathered rights shall be kept in a purchase and retirement fund. Separate accounts for each active management area shall be maintained within the fund. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.
4. Monies received for the purpose of Arizona water banking shall be deposited, pursuant to sections 35‑146 and 35‑147, in the Arizona water banking fund.
5. Monies collected by the director pursuant to section 45-611, subsection C, paragraph 5 shall be deposited in the temporary groundwater and irrigation efficiency projects fund ESTABLISHED by section 45‑615.01.
Sec. 4. Title 45, chapter 2, article 11, Arizona Revised Statutes, is amended by adding section 45-615.01, to read:
45-615.01. Temporary groundwater and irrigation efficiency projects fund; purpose; report
A. The TEMPORARY GROUNDWATER AND IRRIGATION EFFICIENCY PROJECTS FUND IS ESTABLISHED FOR THE PURPOSE OF FUNDING PROJECTS FOR THE CONSTRUCTION AND REHABILITATION OF WELLS AND RELATED INFRASTRUCTURE FOR THE WITHDRAWAL AND EFFICIENT DELIVERY OF GROUNDWATER BY IRRIGATION DISTRICTS IN THE PINAL ACTIVE MANAGEMENT AREA AND THE HARQUAHALA IRRIGATION NON-EXPANSION AREA. THE FUND CONSISTS OF legislative APPROPRIATIONS, GROUNDWATER WITHDRAWAL FEES COLLECTED IN THE PINAL ACTIVE MANAGEMENT AREA PURSUANT TO SECTION 45-611, SUBSECTION C, PARAGRAPH 5, GRANTS FROM FEDERAL AGENCIES AND MONIES DEPOSITED IN THE FUND BY IRRIGATION DISTRICTS IN THE PINAL ACTIVE MANAGEMENT AREA AND THE HARQUAHALA IRRIGATION NON‑EXPANSION AREA. GROUNDWATER WITHDRAWAL FEES DEPOSITED IN THE FUND SHALL BE accounted for SEPARATELY FROM OTHER MONIES IN THE FUND AND SHALL BE USED ONLY FOR CONSTRUCTING AND REHABILITATING WELLS AND RELATED INFRASTRUCTURE IN THE PINAL ACTIVE MANAGEMENT AREA. Monies in the fund are continuously appropriated for the purposes of this section.
B. THE DIRECTOR MAY ACCEPT and deposit into the fund MONIES, GRANTS, GIFTS, CONTRIBUTIONS AND DEVISES TO ASSIST IN CARRYING OUT THE PURPOSES OF THIS SECTION.
C. THE DIRECTOR SHALL ADMINISTER THE FUND. ON NOTICE FROM THE DIRECTOR, THE STATE TREASURER SHALL INVEST AND DIVEST MONIES IN THE FUND AS PROVIDED BY SECTION 35-313, AND MONIES EARNED FROM INVESTMENT SHALL BE CREDITED TO THE FUND.
D. THE DIRECTOR MAY GRANT MONIES FROM THE FUND TO IRRIGATION DISTRICTS IN THE PINAL ACTIVE MANAGEMENT AREA AND THE HARQUAHALA IRRIGATION DISTRICT FOR THE PURPOSES DESCRIBED IN SUBSECTION A of this section. In granting monies from the fund, the director may give preference to wells and related infrastructure that would be used to recover stored water. GRANTS MADE TO THEse IRRIGATION DISTRICTS ARE EXEMPT FROM TITLE 41, CHAPTER 24.
E. BEFORE DECEMBER 31 OF EACH YEAR, THE DIRECTOR SHALL SUBMIT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE A WRITTEN REPORT DESCRIBING THE ACTIVITIES OF THE DEPARTMENT FOR THE PRECEDING FISCAL YEAR RELATED TO EXPENDITURES FROM THE FUND. THE REPORT SHALL INCLUDE AN ACCOUNTING FOR EXPENDITURES FROM THE FUND AND HOW THE MONIES WERE USED TO FINANCE PROJECTS FOR THE CONSTRUCTION AND REHABILITATION OF WELLS AND RELATED INFRASTRUCTURE FOR THE WITHDRAWAL AND EFFICIENT DELIVERY OF GROUNDWATER BY IRRIGATION DISTRICTS IN THE PINAL ACTIVE MANAGEMENT AREA AND THE HARQUAHALA IRRIGATION NON-EXPANSION AREA.
F. EXCEPT AS PROVIDED IN SUBSECTION g OF THIS SECTION, MONIES IN THE FUND ARE EXEMPT FROM THE PROVISIONS OF SECTIONS 35-190 RELATING TO LAPSING OF APPROPRIATIONS.
G. ON JUNE 30, 2027, ANY unencumbered monies IN THE FUND SHALL BE PROPORTIONALLY DISTRIBUTED TO THE FUND'S CONTRIBUTORS BY DECEMBER 31, 2027 ACCORDING TO THE TOTAL AMOUNT OF monies DEPOSITED IN THE FUND BY EACH CONTRIBUTOR. THE PROPORTION OF THE unencumbered MONIES ATTRIBUTABLE TO GROUNDWATER WITHDRAWAL FEES LEVIED UNDER SECTION 45-611, SUBSECTION C, PARAGRAPH 5 SHALL BE DEPOSITED IN THE ARIZONA WATER BANKING FUND ESTABLISHED by SECTION 45-2425 AND SHALL BE USED only in the Pinal active management area IN THE SAME MANNER AS GROUNDWATER WITHDRAWAL FEES COLLECTED IN THE PINAL ACTIVE MANAGEMENT AREA PURSUANT TO SECTION 45-611, SUBSECTION C, PARAGRAPH 3.
H. ALL MONIES DEPOSITED IN THE TEMPORARY GROUNDWATER AND IRRIGATION EFFICIENCY PROJECTS FUND SHALL BE HELD IN TRUST. THE MONIES IN THE FUND MAY BE USED ONLY FOR THE PURPOSES PRESCRIBED IN THIS SECTION AND may NOT BE APPROPRIATED OR TRANSFERRED BY THE LEGISLATURE TO FUND THE GENERAL OPERATIONS OF THIS STATE OR TO OTHERWISE MEET THE OBLIGATIONS OF THE state GENERAL FUND. THIS SUBSECTION DOES NOT APPLY TO ANY TAXES OR OTHER LEVIES THAT ARE IMPOSED PURSUANT TO TITLE 42 OR 43.
Sec. 5. Delayed repeal
Section 45-615.01, Arizona Revised Statutes, as added by this act, is repealed from and after March 31, 2028.
Sec. 6. Section 45‑2425, Arizona Revised Statutes, is amended to read:
45-2425. Arizona water banking fund
A. The Arizona water banking fund is established and shall include subaccounts based on funding sources. The authority shall administer the banking fund in accordance with this chapter.
B. The banking fund consists of all of the following:
1. Monies appropriated from the state general fund by the legislature for water banking purposes other than replenishment under chapter 15, article 3 of this title.
2. Monies appropriated from the state general fund by the legislature for replenishment under chapter 15, article 3 of this title.
3. Reimbursement for the distribution of long-term storage credits, collected by the authority in accordance with section 45‑2457, subsection B, paragraph 2.
4. Monies paid to the authority by the recipients of in lieu water at a groundwater savings facility, in accordance with section 45-2455, subsection C.
5. Monies collected in accordance with section 45‑611, subsection C, paragraph 3.
6. Monies deposited in the banking fund in accordance with section 48‑3715.03, subsection B.
7. Monies paid to the authority by agencies that have entered into interstate water banking agreements with the authority in accordance with section 45‑2471. All monies received through an interstate water banking agreement with the state of Nevada that are not used to purchase or store water or otherwise fulfill contractual obligations with the state of Nevada are subject to legislative appropriation.
8. Monies paid to the authority by persons and Indian communities in this state that have entered into water banking services agreements with the authority in accordance with section 45‑2458.
9. Monies deposited in the fund in accordance with section 45‑615.01, subsection G.
C. In addition to the monies prescribed in this section, the authority may accept any gifts, grants or donations and deposit those monies in the banking fund.
D. Monies in the banking fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the banking fund. The authority may invest the monies paid to the authority in accordance with section 45‑2471 with the state treasurer pursuant to section 35‑326.
E. The authority may use the banking fund to pay all reasonable expenses incurred in carrying out its duties and responsibilities in accordance with this chapter.
F. The authority shall establish a reserve subaccount in the fund for the deposit of monies to be used for the purposes of article 5 of this chapter.
Sec. 7. Legislative intent; possible Colorado River shortage; temporary groundwater and irrigation efficiency fund; projects
A. The legislature finds that the people of Arizona are dependent on Colorado River water to meet a significant portion of their water needs. In times of shortages in this state's annual Colorado River entitlement, deliveries through the central Arizona project are the first to be reduced. In particular, irrigation districts in central Arizona have relied on central Arizona project deliveries of Colorado River water to replace the withdrawal of groundwater for agricultural purposes. As the junior priority users within the central Arizona project system, deliveries for agricultural use are reduced first.
B. It is anticipated that the prolonged drought in the Colorado River basin will require the Secretary of the Interior to declare a shortage as soon as 2020. The legislature finds that reductions in deliveries of central Arizona project water to irrigated agriculture in central Arizona would cause substantial injury to the local economy and seriously harm the general economy and welfare of this state and its citizens.
C. It is therefore declared to be the public policy of this state that in the interest of protecting and stabilizing the general economy and welfare of this state and its citizens it is necessary to establish the temporary groundwater and irrigation efficiency projects fund to be partially funded by a state general fund appropriation and a temporary groundwater withdrawal fee to be collected in the Pinal active management area in place of a groundwater withdrawal fee authorized to be collected in the active management area for Arizona water banking purposes. Contributions to the fund will also be made by the irrigation districts within the Pinal active management area and the Harquahala irrigation non-expansion area. Monies in the fund are to be used to fund projects to construct and rehabilitate groundwater wells and related infrastructure for the withdrawal and efficient delivery of groundwater by irrigation districts in the Pinal active management area and the Harquahala irrigation non-expansion area. On completion of these construction and rehabilitation projects, the fund will terminate. The legislature does not intend to grant authorities or imply authority to perform any tasks or accept any responsibilities not expressly set forth in this legislation.
Sec. 8. Appropriation; temporary groundwater and irrigation efficiency projects fund; exemption
A. The sum of $5,000,000 is appropriated from the state general fund in fiscal year 2018-2019 to the temporary groundwater and irrigation efficiency projects fund established by section 45-615.01, Arizona Revised Statutes, as added by this act.
B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
Sec. 9. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
Sec. 10. 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.
