Arizona Laws 48-4470. Contracts for replenishment services
A. A district may contract with water suppliers to acquire water to replenish the groundwater in the district on behalf of district members. If a district contracts with a water supplier or anticipates contracting with a water supplier, it shall notify all district members of the amount of water under the contract that the district will make available for replenishment services. The notice shall include:
Terms Used In Arizona Laws 48-4470
- Board: means the board of directors of a groundwater replenishment district. See Arizona Laws 48-4401
- Contract: A legal written agreement that becomes binding when signed.
- District: means a groundwater replenishment district established under this chapter. See Arizona Laws 48-4401
- member: means a municipality that contains a service area and petitions for the formation of the district or petitions for the expansion of the district pursuant to this title. See Arizona Laws 48-4401
- Multi-county water conservation district: means a political subdivision established pursuant to chapter 22 of this title. See Arizona Laws 48-4401
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Replenish: means to increase the amount of groundwater in a district either incidentally or through water storage undertaken pursuant to Title 45, Chapter 3. See Arizona Laws 48-4401
- Replenishment tax: means the taxes imposed by sections 48-4470, 48-4472 and 48-4501 on district members for the privilege of withdrawing groundwater. See Arizona Laws 48-4401
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
- Water acquisition costs: means the cost of acquiring water for use by the district in fulfilling its replenishment obligations pursuant to sections 48-4470, 48-4472 and 48-4501, including costs of purchase or lease of water, energy costs for transporting water, operation costs, maintenance costs, withdrawal or severance taxes paid in connection with the water, capital costs for headworks, well or transmission facilities constructed at a water source and interest on monies that are borrowed to acquire water. See Arizona Laws 48-4401
1. The source and amount of the water to be acquired.
2. The term of the contract, the amount of water available for replenishment and the amounts to be charged pursuant to subsection F of this section.
B. After notifying the district members, the district shall contract for replenishment services with those district members that request the services up to the amount of water acquired pursuant to subsection A of this section that the district elects to make available for replenishment services.
C. A district that has a source of water may contract, on a nondiscriminatory basis, to provide replenishment services but only if the district has a water supply available for the term of the contract.
D. If the district receives requests for replenishment services for a specific water acquisition contract that are greater than the amount of water the district elects to make available under the acquisition contract, the district shall apportion the available water based on policies established by the board taking into account the following priorities:
1. First priority shall be assigned to those district members that request services based on the average net groundwater withdrawn in the preceding five year period that is not already covered by a contract for replenishment services.
2. Second priority shall be assigned to those district members that request services based on the increase in the net groundwater that is projected to be withdrawn annually in the next five year period and that is not already covered by a contract for replenishment services.
3. Third priority shall be assigned to the district based on the amount of water the district estimates it is necessary to reserve to provide replenishment services pursuant to sections 48-4472 and 48-4501.
4. Fourth priority shall be assigned to those district members that request services that are not within the scope of paragraphs 1 and 2 of this subsection.
E. No more water may be apportioned to a district member under subsection D of this section than the member specifically requests.
F. A district member that enters into a contract under this section shall pay the district, as a replenishment tax, the water acquisition costs associated with the contract. When the district receives the district member’s payment, the district shall credit the member’s replenishment account established under section 48-4464 with an amount of groundwater equal to the amount of replenishment services the member purchased.
G. The district may agree with a district member to accept an assignment, for a term to be agreed on by the district and the district member, of the district member’s municipal and industrial water service subcontract with the United States and a multi-county water conservation district. If the district accepts such an assignment, the district shall pay to the multi-county water conservation district, to the extent of the assignment, any amounts otherwise payable by the district member during the term in which the contract is assigned and shall accept delivery of the district member’s allocated central Arizona project water supply during the term of the assignment. In connection with the acceptance of such an assignment, the district may agree to reduce the district member’s replenishment tax obligation pursuant to this section and section 48-4472 or 48-4501 in an amount agreed to by the district and the district member for the term of the assignment. The amount of any tax reduction pursuant to this section shall be added to the water acquisition cost of the central Arizona project water acquired by the district pursuant to the assignment.
H. The board shall adopt policies to implement this section.