AZ SB1056

Allows municipal providers applying for new assured water supply designations in the Pinal Active Management Area to elect whether parcels of member land retain replenishment obligations under member service area agreements.

Requires municipal providers that choose to allow member lands to retain replenishment obligations to gradually assume those obligations over ten years or the first term of their designation, increasing by at least 10% annually.

Permits municipal providers to use groundwater allowances and extinguishment credits associated with assumed member lands in accordance with member service area agreements.

Modifies reporting requirements so municipal providers with member service area agreements must report groundwater delivered to member lands and the percentage of deliveries assumed by the provider.

Directs the Department of Water Resources to amend assured water supply rules by January 1, 2025 to incorporate extinguishment credits and groundwater allowances for member lands consistent with the new member service area agreement provisions.