The proposed bill would update current statutes by introducing a new section (45-465.05) that allows landowners within active management areas (AMAs) to permanently relinquish their irrigation grandfathered rights (IGFR) in exchange for a physical availability exemption credit. This credit would permit specified annual groundwater withdrawals based on the AMA and the credit volume, contingent upon compliance with management plans and approval from the Director of the Arizona Department of Water Resources (ADWR). The bill also amends existing sections (45-576 and 45-576.08) to incorporate these new provisions and outlines specific conditions for relinquishment and withdrawal.

Furthermore, the bill establishes new administrative processes for managing these exemption credits, including timelines for the Director's determinations and the ability for credit holders to assign their credits to municipal providers or subsequent landowners. It specifies replenishment obligations based on groundwater usage relative to the credit, with different requirements for the Phoenix, Tucson, and Pinal AMAs. Overall, the bill aims to improve water management practices while providing landowners with greater flexibility in managing their water rights.

Statutes affected:
Introduced Version: 45-465.05, 45-576, 45-576.08, 45-576.01, 41-1075, 45-114, 45-411.01, 45-561, 45-597, 45-598, 32-2101, 32-2181, 48-3772, 48-3774.01, 45-514, 45-515, 49-201, 45-497, 45-579, 45-576.02, 9-463.01, 11-823, 11-822