Senate Bill 1181 Summary

• Allows municipal providers applying for new assured water supply designations in the Phoenix Active Management Area to elect for member lands within their service areas to retain groundwater replenishment obligations rather than having them eliminated.

• Requires municipal providers electing to keep member lands' replenishment obligations to notify the district and Department of Water Resources at time of application and prohibits new member lands from being enrolled after the service area receives assured water supply designation.

• Establishes a 10-year phase-in period where municipal providers gradually assume groundwater deliveries to member lands at a minimum rate of 10 percent per year, with associated replenishment obligations transferring accordingly.

• Allows municipal providers to use groundwater allowance and extinguishment credits associated with member lands under terms of member service area agreements, with specific rules for credits used during phased assumption versus after complete assumption.

• Requires the Department of Water Resources to amend rules by January 1, 2025 to incorporate extinguishment credits and groundwater allowances for member lands in assured water supply designations consistent with this legislation.