HB 2545 Summary

• Establishes the Arizona System Conservation Fund administered by the director of water resources to contract with Colorado River water users for system conservation efforts that reduce consumptive use and preserve Lake Mead elevations, funded by legislative appropriations and grants.

• Creates the Temporary Groundwater and Irrigation Efficiency Projects Fund to finance construction and rehabilitation of wells and related infrastructure for qualified irrigation districts in the Phoenix, Pinal, and Harquahala areas, funded through state appropriations, groundwater withdrawal fees, and district contributions.

• Suspends Arizona water banking fees in the Pinal Active Management Area from calendar years 2020 through 2026 and redirects those fees to the groundwater and irrigation efficiency projects fund instead.

• Authorizes the Arizona Water Banking Authority to exchange long-term storage credits between active management areas with Colorado River water banking fund monies through December 31, 2026, if the director determines the exchange benefits state water management.

• Appropriates $30 million to the Arizona System Conservation Fund for fiscal year 2019-2020 and $7 million to the groundwater and irrigation efficiency projects fund for fiscal year 2018-2019, both exempt from standard lapsing appropriations provisions.