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SB 1176

stormwater storage; replenishment credits

57th Legislature - Second Regular Session Introduced by Warren Petersen

Arizona creates tradeable stormwater storage credits to incentivize groundwater replenishment and address chronic water scarcity through market mechanisms.

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Bill Summary · SB 1176

Legislative bill overview

SB 1176 establishes a system of stormwater storage and replenishment credits in Arizona, allowing entities to earn credits by capturing and storing stormwater that recharges groundwater aquifers. These credits can then be traded or used to offset water obligations, creating a market-based mechanism for water resource management. The bill integrates stormwater management with groundwater replenishment programs already operating in the state.

Why is this important

Arizona faces chronic water scarcity, with the Colorado River Compact and Lake Mead depletion creating urgent pressure to find alternative water sources. By monetizing stormwater capture through a credit system, the bill incentivizes private and public investment in infrastructure that converts temporary runoff into permanent groundwater storage. This could increase water security while reducing both flooding risks and reliance on diminishing surface water supplies.

Potential points of contention

  • Water rights complexity: The bill may create ambiguity about who owns captured stormwater and how it interacts with existing senior water rights and Colorado River allocations
  • Credit valuation and verification: Establishing fair market prices for credits and ensuring accurate measurement of actual recharge will require robust regulatory oversight and could create disputes
  • Equity concerns: Large agricultural or commercial entities with capital for storage infrastructure may disproportionately benefit from credit trading, while small landowners and municipalities may struggle to participate

Compiled from official sources — confirm details with the bill’s official record.

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