This bill proposes significant updates to the Arizona groundwater code by amending section 45-558 and adding article 13 to title 45, chapter 2 of the Arizona Revised Statutes. It introduces new provisions allowing individuals with grandfathered rights to groundwater in the Phoenix, Tucson, or Pinal active management areas to sell, lease, or convey their rights to pump groundwater or the groundwater itself, while establishing specific conditions for such transactions. The bill outlines the notification requirements for the Department of Water Resources regarding these transactions, including details about the parties involved, the amount of groundwater, and any transaction costs.

Additionally, the bill stipulates that a portion of the groundwater rights conveyed (35%) cannot be pumped or further conveyed, and it establishes guidelines for how the Department will treat the groundwater forgone by sellers. It also clarifies that the conveyed groundwater will be exempt from replenishment obligations and will be considered available for obtaining a certificate of assured water supply. Furthermore, the bill mandates the creation of an online water exchange to facilitate transparency and accessibility for groundwater transactions, ensuring that all relevant information is publicly available.

Statutes affected:
Introduced Version: 45-558, 3-201