The bill SB1041 introduces the concept of a Groundwater Savings Certificate as an alternative to the existing Certificate of Assured Water Supply. This certificate would be applicable to those proposing to offer subdivided lands for sale or lease within an Active Management Area (AMA). The bill outlines the requirements for obtaining a Groundwater Savings Certificate, which include enrollment of the land in a groundwater replenishment district, demonstration of a continuous 100-year water supply without exceeding certain aquifer depth limits, relinquishment of any claims to sewage produced from water use on the land, consistency with the AMA's management plan and goals, adequate water quality for the proposed needs, and financial capability to deliver the necessary water.

The bill also mandates that by January 1, 2025, the Arizona Department of Water Resources (ADWR) rules must provide for a reduction in water demand for applications for a Groundwater Savings Certificate if a gray water system is installed. Additionally, the bill exempts certain lands served by designated cities, towns, and private water companies from the need to obtain a Groundwater Savings Certificate. The bill is designated as the Groundwater Protection and Housing Affordability Act and requires the Legislative Council staff to prepare proposed legislation to conform the Arizona Revised Statutes to the provisions of this act for consideration in the next legislative session.

Statutes affected:
Introduced Version: 45-576
Senate Engrossed Version: 45-576