HB 2298 Summary

• Creates "physical availability exemption credits" allowing landowners with irrigation grandfathered rights to permanently relinquish water rights in exchange for exemptions from groundwater physical availability requirements for new uses.

• Establishes tiered groundwater withdrawal volumes (ranging from 0.5 to 2 acre-feet per irrigation acre depending on the active management area) with corresponding replenishment obligations ranging from 0% to 100%.

• Permits exemption credits to be used for assured water supply applications on retired irrigation acres or land within one mile of those acres, and for wells used to serve the original irrigation right or wells within one mile of those wells.

• Requires the Director to issue exemption credits within 90 days and allows credits to be assigned to municipal water providers or subsequent landowners.

• Amends sections 45-576 and 45-576.08 to integrate the new exemption credits into the assured water supply and Pinal Active Management Area designation processes.