A. A groundwater replenishment district established under title 48, chapter 27 may lease from an irrigation district located entirely within the Harquahala irrigation non-expansion area the use of one or more of the wells in the irrigation district to withdraw the groundwater that can be withdrawn from a depth to one thousand feet, at a rate that, when added to the existing rates of withdrawal in the area, does not cause the groundwater table at the site or sites to decline more than ten feet per year, for transportation to an initial active management area. The lease payments shall be made to the members of the irrigation district on a pro rata basis, per acre of land that is eligible to be irrigated under section 45-437, subsection B, minus the irrigation district's administrative costs. Wells leased under this subsection are exempt from well spacing requirements under section 45-559.
B. An entity described in subsection D of this section that owns land eligible to be irrigated under section 45-437, subsection B in the Harquahala irrigation non-expansion area may withdraw groundwater from the land for transportation to a location and for the purposes prescribed in subsection F of this section:
1. If the groundwater is withdrawn:
(a) From a depth to one thousand feet at the site or sites of the proposed withdrawals.
(b) At a rate that, when added to the existing rate of withdrawals in the area, does not cause the groundwater table at the site or sites of the withdrawals to decline more than an average of ten feet per year during the one hundred year evaluation period.
2. In an amount either:
(a) Per acre of the eligible land, not to exceed:
(i) Six acre-feet in any year.
(ii) Thirty acre-feet for any period of ten consecutive years computed in continuing progressive series beginning in the year transportation of groundwater from the land begins.
(b) Established by the director, but only if the director determines that withdrawals in an amount greater than that allowed by subdivision (a) of this paragraph will not unreasonably increase damage to residents of surrounding land and other water users in the irrigation non-expansion area, or that one or more of the entities withdrawing the groundwater will mitigate the damage to the residents and other water users.
3. By a public service corporation, if all costs associated with withdrawing, transporting and delivering groundwater away from the Harquahala irrigation non-expansion area are collected from the customers of the public service corporation's water district where the transported groundwater is used.
4. If before the withdrawal of groundwater from the Harquahala irrigation non-expansion area or September 14, 2024, whichever is later, the eligible entity has demonstrated compliance with the criteria in this subsection or subsection C of this section using a hydrological study. The director shall prescribe the contents of the study that is submitted with the application.
5. If before the withdrawal of groundwater from the Harquahala irrigation non-expansion area or September 14, 2024, whichever is later, the eligible entity installs water measuring devices, or other similarly reliable and accessible methods as approved by the department to determine the volume of groundwater withdrawn from all relevant wells and transported out of the Harquahala irrigation non-expansion area by pipelines, canals or conduits.
6. If within thirty days after the withdrawal of groundwater from the Harquahala irrigation non-expansion area for transportation or September 14, 2024, whichever is later, the eligible entity submits a monthly report to the department containing all of the following:
(a) The volume of groundwater the entity withdrew from the Harquahala irrigation non-expansion area in the preceding month.
(b) The volume of groundwater the entity transported out of the Harquahala irrigation non-expansion area in the preceding month.
(c) The end use or destination of groundwater the entity transported out of the Harquahala irrigation non-expansion area in the preceding month.
C. If this state or one or more political subdivisions of this state own eighty percent or more of the land that is eligible to be irrigated under section 45-437, subsection B in the irrigation non-expansion area, each of the entities may withdraw groundwater from the eligible land it owns for transportation to an initial active management area:
1. From a depth to one thousand feet at the site or sites of withdrawals.
2. From a depth between one thousand and one thousand two hundred feet at the site or sites of the withdrawals only if the director determines either that the withdrawals will not unreasonably increase damage to residents of surrounding land or that one or more of the entities withdrawing the groundwater will mitigate the damage to the residents.
D. The following entities are eligible to transport groundwater away from the Harquahala irrigation non-expansion area pursuant to subsection B of this section:
1. This state.
2. A political subdivision of this state.
3. A public service corporation that is regulated by the corporation commission and that holds a certificate of convenience and necessity for water service.
E. The director shall adopt rules to implement this section, including for the reporting of groundwater transported from the Harquahala irrigation non-expansion area.
F. The following locations and purposes are eligible to receive groundwater transported away from the Harquahala irrigation non-expansion area pursuant to subsection B of this section:
1. An initial active management area for use by an eligible entity or the Arizona water banking authority pursuant to section 45-2491.
2. La Paz county by an eligible entity in a total cumulative volume not to exceed ten percent of the total annual volume of groundwater the department determines is available for transport out of the Harquahala irrigation non-expansion area. An eligible entity in La Paz county may do either of the following:
(a) Transport groundwater from eligible acres in the Harquahala irrigation non-expansion area owned by the eligible entity to a location in La Paz county for the eligible entity's own use.
(b) Sell or lease groundwater from eligible acres owned by the eligible entity that are located in La Paz county to a designated provider in the Phoenix, Tucson or Pinal active management area for the designated provider's own use.
G. Any local use of groundwater by an eligible entity that sells or leases groundwater pursuant to subsection F, paragraph 2 of this section shall count towards the eligible entity's maximum per acre withdrawal limit prescribed in subsection B, paragraph 2, subdivision (a) of this section.
H. On or before July 1 of each year, the department shall submit a report of all of the following to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state:
1. The total amount of groundwater all eligible entities withdrew from the Harquahala irrigation non-expansion area in the preceding year.
2. The total amount of groundwater each eligible entity withdrew from the Harquahala irrigation non-expansion area in the preceding year delineated by entity.
3. The total amount of groundwater all eligible entities transported from the Harquahala irrigation non-expansion area in the preceding year.
4. The total amount of groundwater each eligible entity transported from the Harquahala irrigation non-expansion area in the preceding year delineated by entity.
5. The end use or destination of all groundwater all eligible entities transported from the Harquahala irrigation non-expansion area in the preceding year.
6. The end use or destination of all groundwater each eligible entity transported from the Harquahala irrigation non-expansion area in the preceding year, delineated by destination or end use.