HB 2150 Summary

• Allows persons with grandfathered groundwater rights in the Phoenix, Tucson, or Pinal active management areas to sell, lease, or otherwise convey groundwater rights to other persons within those same areas.

• Buyers or lessees receive 65 percent of the total groundwater forgone by the seller or lessor, while 35 percent of the original grandfathered right conveyed cannot be pumped or further conveyed.

• Requires sellers and lessors to notify the Department of Water Resources with transaction details including parties' names, lease duration, amount of groundwater involved, transaction costs, and price per acre-foot.

• Exempts transferred groundwater from replenishment obligations and taxes, excludes it from cities' groundwater allowances, and deems it consistent with active management area goals and physically available for obtaining certificates of assured water supply.

• Requires the Department of Water Resources to establish and maintain a publicly accessible online water exchange on its website displaying transaction information for all groundwater sales and leases.