Bill > HB2729

This bill establishes a new groundwater marketplace in Arizona that allows owners of grandfathered groundwater rights in the Phoenix, Tucson, and Pinal active management areas to sell, lease, or transfer their groundwater rights. Under the new law, when a groundwater right is sold or leased, the buyer receives 65% of the transferable groundwater, while 35% is permanently retired or cannot be used during the lease term. Sellers must notify the Arizona Department of Water Resources about transaction details, including the amount of water, transaction costs, and price per acre-foot. The bill creates an online water exchange where these transactions will be publicly documented. Notably, the transferred groundwater is exempt from replenishment obligations, excluded from city groundwater use calculations, and can be used toward obtaining a certificate of assured water supply. The groundwater can only be withdrawn from the same subbasin, and the transaction does not modify existing laws about surface water and groundwater distinctions. The bill aims to create more flexibility in water rights management while also promoting water conservation by requiring a portion of transferred rights to be permanently retired.

Agriculture and Natural Resources

https://apps.azleg.gov/BillStatus/BillOverview/83007