AZ SB1221

Establishes that using groundwater to water containerized plants on or above ground surface is a non-irrigation use in active management areas.

Allows holders of irrigation grandfathered rights in initial active management areas to use groundwater to water containerized plants grown for sale, human consumption, or livestock feed on their certificated acres.

Requires separate measurement of groundwater used for containerized plants versus irrigation uses, with combined usage not exceeding the irrigation water duty limit for the farm.

Prohibits registering flexibility account credits in years when groundwater is used to water containerized plants under this provision.

Permits certificate holders to request separation of their irrigation grandfathered right certificate into two separate certificates—one for containerized plant watering and one for irrigation uses—as long as each resulting certificate covers at least two acres.