CAP committee opposes state bill threatening 'unlimited' groundwater replenishment enrollment

CAP committee opposes state bill threatening 'unlimited' groundwater replenishment enrollmentThe Central Arizona Project's Public Policy Committee has formally opposed House Bill 2027, warning that a recent amendment removing groundwater availability checks could create unmanageable replenishment obligations for the district.

The committee unanimously voted to recommend the CAP board oppose HB2027 during its March 5 meeting.

An amendment to the bill removes the requirement to prove physical groundwater availability before enrolling in the Central Arizona Groundwater Replenishment District (CAGRD).

CAP Legislative Affairs Manager Jeff Gray warned the change creates 'unlimited potential enrollment,' making it impossible to forecast the impact on replenishment operations.

The Central Arizona Project (CAP) Public Policy Committee unanimously voted on March 5 to recommend that its board officially oppose Arizona House Bill 2027, citing severe concerns over its potential to uncap groundwater replenishment obligations. The committee's opposition stems from a recent amendment to the legislation that fundamentally alters how entities enroll in the Central Arizona Groundwater Replenishment District (CAGRD). According to CAP Legislative Affairs Manager Jeff Gray, the amended bill removes the requirement for the Department of Water Resources to review and determine the physical availability of groundwater before issuing certificates for CAGRD enrollment. Under the proposed framework, the act of enrolling in the CAGRD would effectively serve as proof of physical water availability, operating under the proponents' assumption that the aquifer is not impacted if the water is eventually replenished. Gray warned the committee that this reversal of the standard process poses a significant threat to CAP's operational forecasting. "By saying that there's no longer physical availability tied to obtaining a certificate and thus enrolling in the GRD, that now has a huge impact to us," Gray said. "This would now create a potential scenario where there would be no cap, and really there's no way to enumerate what that impact would be." Gray contrasted the open-ended nature of HB2027 with previous legislative proposals that capped enrollment at specific volumes, such as 320,000 acre-feet, which allowed the utility to tie obligations to pending certificates and analyses. The committee approved the motion to oppose the bill without objection. In addition to HB2027, the committee received updates on other state-level water legislation. Staff highlighted ongoing concerns with House Bill 2099, which would prohibit municipal and private water providers from ordering CAP water for underground storage during a declared Colorado River shortage. Staff noted the bill lacks a clear definition of "shortage" and could inadvertently ban municipal providers from earning long-term storage credits in their own underground storage facilities. The committee also noted its continued monitoring of House Bill 2134, a critical infrastructure security bill that would prohibit the use of software produced by Chinese companies. CAP is seeking an amendment to exempt federal reclamation facilities from the bill's Corporation Commission oversight requirements, noting that the utility already operates under strict federal IT and security protocols.