HB2368 is a bill that proposes amendments to the Arizona Revised Statutes, specifically to Title 45, Chapter 2, Article 8.1, by adding section 45-555.01, which relates to the groundwater code. The bill would allow well owners in the Upper San Pedro Groundwater Basin to annually withdraw groundwater and transport it to the Douglas Active Management Area (AMA), provided certain conditions are met. These conditions include the requirement that the groundwater must be used for the same purposes as before December 1, 2022, the well owner or their predecessor must have withdrawn groundwater by that date, and if the owner is a private water company, they must have a certificate of convenience and necessity issued by the Arizona Corporation Commission as of the effective date of the section.

The bill also sets a limit on the amount of groundwater that can be transported, which cannot exceed the highest annual amount withdrawn in any of the ten years preceding December 1, 2022. Additionally, well owners wishing to transport groundwater must submit evidence to the Director of the Arizona Department of Water Resources (ADWR) within 30 days after the effective date of the section or 30 days before the effective date of groundwater withdrawal, whichever is later. This evidence must include details of past withdrawals, the purposes of transportation, and the total annual amount of groundwater withdrawn in the preceding ten years before December 1, 2022.

Statutes affected:
Introduced Version: 45-555.01
House Engrossed Version: 45-555.01
Chaptered Version: 45-555.01