Senate bill would allow stormwater recharge and create transferable replenishment credits

Senate Bill 12-36, presented in caucus, would authorize stormwater as a permitted source of water for applicants seeking water storage permits when the water is recharged into constructed underground storage facilities. The bill would allow permit holders to recharge stormwater and receive replenishment credits; ADWR would be required to annually determine the quantity recharged and credit 95% of that volume as replenishment credits.

The bill prescribes how ADWR must account for replenishment credits, treats those credits as groundwater (not as stored water) for specified purposes, and allows credit holders to transfer replenishment credits to other eligible entities to offset replenishment obligations within the same groundwater sub-basin, subject to statutory conditions.

Committee staff said the measure sets accounting and transfer rules and ties the credits to groundwater replenishment obligations. The caucus discussion did not record floor votes; staff was available for questions and sponsors noted the provisions would establish a framework for treating stormwater recharge as a component of water storage and replenishment accounting.

No implementing appropriation was specified in the caucus discussion; ADWR rulemaking and administrative processes would likely be required to implement the accounting, monitoring and transfer mechanisms described in the bill.