AZ SB1147

Amends section 45-2457 of Arizona Revised Statutes to modify rules for distributing long-term storage credits by the Arizona Water Banking Authority.

Authorizes the authority to distribute long-term storage credits directly to CAWCD's municipal and industrial subcontractors, not just to CAWCD itself, when CAWCD's Colorado River diversions are disrupted by shortages or operational disruptions.

Prohibits subcontractors who receive long-term storage credits under this provision from selling those credits and makes subcontractors responsible for all authority fees and cost recovery expenses associated with the distributed credits.

Maintains existing provisions allowing the authority to distribute credits to non-CAWCD municipal and industrial users, implement Indian water settlements, and fulfill other water management objectives specified in state law.