Arizona SB 1447: well drilling; groundwater basins

Bill Text

SB1447 - 572R - S Ver 

 Senate Engrossed

 groundwater 
 withdrawal fee; Pinal AMA

 State of Arizona

 Senate

 Fifty-seventh Legislature

 Second Regular Session

 2026

 SENATE BILL 1447

AN 
ACT

Amending sections 45-611 and 45-615.01, 
Arizona Revised Statutes; amending laws 2019, chapter 1, section 8; relating to 
groundwater.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it 
enacted by the Legislature of the State of Arizona:

Section 1. Section 45-611, Arizona Revised 
Statutes, is amended to read:

START_STATUTE45-611. Groundwater withdrawal fee; amounts and purposes of fee; 
exception

A. Except as provided in subsection B of this 
section, the director shall levy and collect an annual groundwater withdrawal 
fee from each person withdrawing groundwater in the Prescott active management 
area or the person who owns the right to withdraw the groundwater, in an amount 
not to exceed $5 per acre-foot of groundwater withdrawn and beneficially 
used. The director shall levy and collect an annual withdrawal fee 
from each person withdrawing water, other than stored water, from a well in the 
Santa Cruz active management area or the person who owns the right to withdraw 
the water, in an amount not to exceed $5 per acre-foot of water, other than 
stored water, that is withdrawn and beneficially used.� For the purposes of 
this article, the annual withdrawal fee levied and collected in the Santa Cruz 
active management area shall be considered a groundwater withdrawal fee. The 
actual amount of the fee levied and collected by the director pursuant to this 
subsection shall be set by the director as follows:

1. For administration and enforcement of this 
chapter, an amount not less than $.50 and not greater than $1 per acre-foot per 
year. The initial fee for administration and enforcement shall be levied as 
soon as practicable after the active management area is established.

2. For augmentation of the water supply of the 
active management area, conservation assistance to water users within the 
active management area and monitoring and assessing water availability within 
the active management area, an amount not greater than $2 per acre-foot per 
year. 

3. For purchasing and retiring grandfathered rights, 
an amount not greater than $2 per acre-foot per year.� The initial fee for 
purchasing and retiring grandfathered rights shall be levied in the first year 
in which the director develops and implements a program for the purchase and 
retirement of grandfathered rights as part of the management plan for the 
active management area, but not earlier than January 1, 2006.� The director may 
not levy a fee under this paragraph on a district member of a groundwater 
replenishment district that withdraws groundwater in the district for a non-irrigation 
use in the district.

B. A person, other than an irrigation district, who 
withdraws groundwater in an active management area from a non-exempt well for 
use pursuant to an irrigation grandfathered right that is appurtenant to ten or 
fewer irrigation acres and the person who owns the right to withdraw the 
groundwater are exempt from the groundwater withdrawal fee requirements of 
subsections A and C of this section for those withdrawals unless the irrigation 
acres are part of an integrated farming operation.

C. Except as provided in section 45-411.01, 
subsection C and subsection B of this section, the director shall levy and 
collect an annual groundwater withdrawal fee from each person who withdraws 
groundwater in the Tucson, Phoenix and Pinal active management areas or the 
person who owns the right to withdraw the groundwater, in an amount of not more 
than $5 per acre-foot of groundwater withdrawn and beneficially used.� The 
director shall set the actual amount of the fee as follows:

1. In the Tucson and Phoenix active management 
areas, beginning in 2017, for administration and enforcement of this chapter, 
an amount of at least $.50 but not more than $1 per acre-foot per 
year. In the Pinal active management area, beginning in 2017, for 
administration and enforcement of this chapter, an amount of not more than $1 
per acre-foot per year.

2. For augmentation of the water supply of the 
active management area, conservation assistance to water users within the 
active management area and monitoring and assessing water availability within 
the active management area, an amount of not more than $2 per acre-foot 
per year.� If a permanent board of directors of an active management area water 
district assumes office under section 48-4831, the fee for augmentation 
under this paragraph shall not be levied in that active management area.

3. In the Tucson and Phoenix active management 
areas, for Arizona water banking purposes, the amount of $2.50 per acre-foot 
per year.� In the Pinal active management area, for Arizona water banking 
purposes, including replenishment under chapter 15, article 3 of this title, the director shall set the fee in an amou