HB 2737 Arizona House · 57th Legislature - First Regular Session

groundwater permits; technical correction

HB 2737 is a technical correction to Arizona’s groundwater permit rules, specifically amending Section 45-516 of the Arizona Revised Statutes. It clarifies that permits for withdrawing "poor quality groundwater" (water unsuitable for most uses) may be issued for up to 35 years, based on the estimated life of the groundwater source, and requires the director to monitor withdrawals and terminate permits if conditions change. The bill does not create new policies or affect new groups - it only fixes outdated language in existing permit rules. It passed the legislature and was signed by the governor in April 2025.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

House Passage

Feb 2025

Senate Passage

Apr 2025

Signed into Law

Apr 2025

Introduced Feb 18, 2025 Signed Apr 18, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

House Engrossed Version → Chaptered Version · 5 edits

MODERATE

This bill amended the definitions in Arizona Revised Statutes Section 49-1201 to clarify and expand terminology related to water infrastructure and supply development. The changes include adding new definitions for 'natural resource conservation district' and 'water supply development', updating the definition of 'water provider' to include new entities, and refining descriptions of water-related activities and funding mechanisms.

Scope change

The bill expanded the scope of eligible entities that can be classified as 'water providers' and clarified what constitutes 'water supply development' to include additional activities like stormwater recharge and groundwater replenishment.

DEFINITION

Added new definition for 'natural resource conservation district' as a type of water provider

Updated 'water provider' definition to include counties with intergovernmental agreements for water supply projects

Expanded 'water supply development' definition to include stormwater recharge structures and groundwater replenishment

Added 'water-related facilities' definition to clarify what infrastructure counts under the program

TECHNICAL

Changed document title from 'groundwater permits' to 'water supply development' to reflect broader scope

Introduced Version → House Engrossed Version · 5 edits · Apr 16, 2025

MODERATE

The bill was significantly revised from a technical correction about groundwater permits to a comprehensive water infrastructure finance bill. The scope changed from addressing poor quality groundwater withdrawals to establishing definitions for water infrastructure financing, public-private partnerships, and water supply development projects.

Scope change

The bill's scope expanded from a narrow groundwater permit technical correction to a broad water infrastructure finance framework covering water supply development, public-private partnerships, and related funding mechanisms.

SCOPE

Changed from groundwater permit technical correction to water infrastructure finance and public-private partnership framework.

DEFINITION

Added 22 new definitions including Authority, Board, Bonds of a political subdivision, Clean water act, Concession agreement, Drinking water facility, Financial assistance loan repayment agreement, Imported water, Import water, Indian tribe, Long-term water augmentation bonds, Long-term water augmentation fund, Nonpoint source project, Political subdivision, Private partner, Public-private partnership project, Safe drinking water act, Technical assistance loan repayment agreement, Wastewater treatment facility, Water provider, Water-related facilities, and Water supply development.

FISCAL

Added definitions for long-term water augmentation bonds and fund, and technical assistance loan repayment agreements with specific borrowing limits ($500,000) and terms (not more than three years).

ELIGIBILITY

Added eligibility criteria for water providers including municipal water delivery systems, county water augmentation authorities, county water authorities, Indian tribes, community facilities districts, public water systems, counties with population under 300,000, natural resource conservation districts, and counties with intergovernmental agreements for water supply development projects.

REQUIREMENT

Added requirements for water supply development including acquiring water rights, planning and building water-related facilities, reclamation and remediation projects requiring EPA approval, groundwater replenishment, and stormwater recharge structures.

Floor votes · Senate Apr 16, 2025 · House Feb 26, 2025

How they voted

28–1

Passed · 1 other

Total votes 30

Apr 16, 2025

D Democratic13

11 Yea 1 Nay 1

84% Yea

R Republican17

17 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 18, 2025

Signed into law

Signed by Governor

executive

Apr 16, 2025

Upper · Passed

PASSED

upper

Mar 11, 2025

Upper · Passed

upper

Feb 26, 2025

Lower · Passed

PASSED

lower

Feb 25, 2025

Lower · Passed

DPA

lower

Feb 20, 2025

Lower · Passed

DPA/SE

lower

1 primary · 0 co-sponsors