§ 48-3771 — District replenishment obligations; replenishment location; source of replenishment; exception

A. For each active management area in which member lands or member service areas are or may be located, the district shall replenish groundwater in an amount equal to the groundwater replenishment obligation for that active management area. Except as provided in section 48-3781, subsection G, the district shall complete the replenishment of the groundwater replenishment obligation of that active management area applicable to a particular year within three full calendar years after the year that the district incurs the groundwater replenishment obligation. Replenishment of the groundwater replenishment obligation of an active management area applicable to a particular year is complete when the amount of water added to aquifers through water storage that has been credited directly to the district's conservation district account pursuant to title 45, chapter 3.1, plus long-term storage credits that have been transferred from the district's long-term storage account to its conservation district account pursuant to title 45, chapter 3.1, less the groundwater replenishment obligation of member lands and member service areas located in the active management area and applicable to previous years, less the contract replenishment obligations relative to municipal providers in the active management area for previous years and the year of the calculation, equals or exceeds the groundwater replenishment obligation of the active management area for that year.

B. With respect to the portion of the groundwater replenishment obligation attributable to a parcel of member land or a member service area, the district shall replenish groundwater in the active management area where the parcel of member land or the member service area is located in an amount equal to the groundwater replenishment obligation applicable to that parcel of member land or that member service area.

C. Except as provided by title 45, chapter 3.1, the district may replenish groundwater with central Arizona project water or water from any other lawfully available source except groundwater withdrawn from within an active management area.

D. Notwithstanding any other provision of this chapter, if a parcel of member land is included in the service area of a municipal provider that is not a member service area but that has been designated as having an assured water supply under section 45-576, the parcel of member land has no parcel replenishment obligation and the district has no groundwater replenishment obligation attributable to that parcel of member land for as long as the designation remains in effect.

E. Notwithstanding any other provision of this chapter and except as provided in subsection F of this section, if a parcel of member land is included in the service area of a municipal provider that is a member service area and that has been designated as having an assured water supply under section 45-576, the parcel of member land has no further parcel replenishment obligation.

F. After September 14, 2024, a municipal provider that submits an application for a new designation of assured water supply pursuant to rules adopted by the department of water resources in the Phoenix and Pinal active management areas that relies on a member service area agreement may elect for all parcels of member land in the municipal service area to retain a replenishment obligation. For parcels of member land that retain a replenishment obligation, the district shall replenish groundwater in an amount equal to the obligation applicable to that parcel of member land.

G. If, pursuant to subsection F of this section, a municipal provider's service area contains member lands and the municipal provider applies to become designated as having an assured water supply, the municipal provider shall notify the district and the director of the department of water resources at the time of application whether it chooses to assume the member lands' replenishment obligation under the municipal provider's designation of assured water supply and member service area agreement. This section does not authorize new member lands to be enrolled within the municipal provider's service area after the service area is designated as having an assured water supply.

H. If a municipal provider chooses to allow parcels of member land within its service area to retain the parcel replenishment obligation pursuant to this section, the designation of assured water supply and member service area agreement for the municipal provider shall provide that the parcels of member land retain the parcel replenishment obligation for the lesser of either of the following:

1. Ten years from the date of commencement of the first term of the designation.

2. The first term of the designation.

I. On the lesser of the conditions prescribed by subsection H of this section, the municipal provider shall begin to assume a percentage of the groundwater delivered to parcels of member land and any associated parcel replenishment obligation and provide the information to the district in the annual reports required by section 48-3775. In the first year of reporting pursuant to this subsection, the municipal provider may assume not less than ten percent of the total reported groundwater delivered to each parcel of member land. In each successive year the municipal provider shall assume at least an additional ten percent so that within ten years, all reported groundwater delivered and parcel replenishment obligation are assumed by the municipal provider and the parcels of member land have no further parcel replenishment obligation.

J. After a municipal provider assumes all groundwater deliveries from all parcels of member land as prescribed by subsection I of this section, the municipal provider shall cease submitting reports to the district for parcels of member land pursuant to section 48-3775 while the municipal provider's designation of assured water supply remains valid.

K. If a municipal provider assumes the parcel replenishment obligation of member lands pursuant to a designation of assured water supply that relies on a member service area agreement, any groundwater allowance or extinguishment credits, as provided in rules adopted by the department of water resources pursuant to section 45-576, associated with the member lands assumed by the municipal provider may be used as follows:

1. If the parcel replenishment obligation and reported groundwater delivered to the member lands are entirely assumed on the initial designation of an assured water supply, the remaining extinguishment credits or groundwater allowance associated with the member lands may be used by the municipal provider as authorized pursuant to a member service area agreement.

2. If the parcel replenishment obligation and reported groundwater delivered to the member lands are assumed in stages as provided in subsection I of this section, the municipal provider may use the groundwater allowance and extinguishment credits for the member lands in the same manner as authorized in the applicable agreement and notice of municipal reporting requirements if the groundwater is being reported as delivered to member lands. Thereafter, any remaining extinguishment credits or groundwater allowance may be used by the municipal provider as authorized under the member service area agreement.