online exchange; groundwater sales

HB 2729 creates a regulated marketplace for selling or leasing groundwater rights within Arizona’s Phoenix, Tucson, and Pinal active management areas. It allows owners of grandfathered groundwater rights to sell or lease portions of those rights (while reserving 35% of their original right), requiring detailed transaction notices to the Department of Water Resources. Buyers receive 65% of the groundwater forgone by sellers, and forgiven water is split 50/50 between aquifer recharge and reserved for future water supply applications. The bill mandates an online public exchange platform for these transactions and exempts conveyed groundwater from replenishment obligations and city water use calculations.