AZ HB2857

Establishes rural groundwater management areas outside active management areas where groundwater management practices are needed to address supply concerns, land subsidence, or water quality degradation, initiated by county board petition or 10% of registered voters in the proposed area.

Creates certificates of groundwater use for persons legally withdrawing groundwater before designation, with amounts based on verified historical use during the preceding 10 years; certificates may be sold, assigned, or leased with a 15% reduction on each conveyance.

Establishes 7-member rural groundwater management area councils appointed by the governor from nominations by legislative leaders and directly selected by the governor, requiring at least 6 members to reside in the area and be representative of major groundwater users.

Requires councils to adopt management goals and develop management plans within specified timeframes, including water conservation programs, well location requirements, and a mandatory 10% reduction in total groundwater withdrawals within 10 years for the first plan.

Establishes the Department of Water Resources Rural Groundwater Management Area Fund to implement and support rural groundwater management areas, including conservation assistance and voluntary compensated land and water conservation plans.