AZ SB1165

Amends Arizona Revised Statutes Section 45-454 regarding exemptions for small non-irrigation wells with a maximum pump capacity of 35 gallons per minute.

Clarifies that landowners can obtain an exemption from the prohibition on drilling exempt wells near municipal water systems if the total capital cost and fees for connecting to the municipal distribution system exceed the total capital cost and fees for drilling and fully equipping an exempt well.

Requires landowners seeking exemption under the cost comparison provision to provide the director with at least three estimates of the total capital cost and fees for drilling and fully equipping an exempt well, including costs for pumps, accessories, connection, and regulatory compliance.

Maintains existing provisions regarding exempt well registration, completion reporting, withdrawal limits, and restrictions on groundwater transportation.

Makes grammatical corrections by replacing "which" with "that" throughout the statute for consistency and clarity.