1. A. The Department shall calculate the fee for an application listed in subsection (B) by multiplying the number of review hours for the application by an hourly rate of $118.00, plus any mileage expenses and the actual cost of mailing or publishing any legal notice of the application.

2. B. A person submitting an application listed in subsections (B)(1) through (10) shall pay an hourly fee for the application, not to exceed the maximum fee shown for the application:

   1. 1. Wells:

      Type of Application	Maximum Fee
      Variance from well construction requirements that has not been pre-approved by the Department	$10,000.00

   2. 2. Groundwater:

      Type of Application	Maximum Fee
      a. Issuance, renewal or modification of groundwater withdrawal permit	$10,000.00
      b. Approval of contract by a city, town or private water company to supply groundwater to another city, town or private water company pursuant to A.R.S. § 45-492(C)	$10,000.00
      c. Notice of intent to establish new service area right by a city, town or private water company	$10,000.00
      d. Final petition to establish new service area right by a city, town or private water company	$10,000.00
      e. Extension of the service area of a city, town or private water company to furnish disproportionately large amounts of water to an industrial or other large water user pursuant to A.R.S. § 45-493(A)(2)	$10,000.00
      f. Addition and exclusion of area by an irrigation district pursuant to A.R.S. § 45-494.01	$10,000.00
      g. Delivery of groundwater by an irrigation district to an industrial user with a general industrial use permit pursuant to A.R.S. § 45-497(B)	$10,000.00
      h. Determination of historically irrigated acres or annual transportation allotment for lands in McMullen valley groundwater basin pursuant to A.R.S. § 45-552	$10,000.00
      i. Determination of volume of groundwater that can be transported from lands in Harquahala irrigation non-expansion area to an initial active management area pursuant to A.R.S. § 45-554	$10,000.00
      j. Determination of historically irrigated acres or annual transportation allotment for lands in the Big Chino sub-basin of the Verde River groundwater basin pursuant to A.R.S. § 45-555	$10,000.00
      k. Permit to transport groundwater away from the Yuma groundwater basin pursuant to A.R.S. § 45-547	$10,000.00
      l. Drought emergency groundwater transfer away from a groundwater basin outside of an active management area	$10,000.00

   3. 3. Grandfathered Rights:

      Type of Application	Maximum Fee
      a. Type 1 non-irrigation grandfathered right for land retired from irrigation after date of designation of active management area pursuant to A.R.S. § 45-469 or 45-472	$10,000.00
      b. Restoration of retired irrigation grandfathered right pursuant to A.R.S. § 45-469(O)	$10,000.00

   4. 4. Substitution of Acres:

      Type of Application	Maximum Fee
      a. Substitution of flood damaged acres in an active management area or an irrigation non-expansion area	$10,000.00
      b. Substitution of acres to eliminate limiting condition impeding efficient irrigation in an active management area or an irrigation non-expansion area	$10,000.00
      c. Substitution of acres to allow irrigation with Central Arizona Project water in an active management area	$10,000.00

   5. 5. Lakes:

      Type of Application	Maximum Fee
      a. Permit to fill body of water with poor quality water pursuant to A.R.S. § 45-132(C)	$10,000.00
      b. Permit for interim water use in a body of water	$10,000.00
      c. Temporary emergency permit for use of surface water or groundwater in a body of water	$10,000.00

   6. 6. Water Exchange:

      Type of Application	Maximum Fee
      a. Issuance, renewal or modification of water exchange permit	$10,000.00
      b. Notice of water exchange for which approval is required pursuant to A.R.S. § 45-1052(6)(b)	$10,000.00

   7. 7. Water Exportation:

      Type of Application	Maximum Fee
      Permit to transport water from this state	$25,000.00

   8. 8. Underground Water Storage, Savings and Replenishment:

      Type of Application	Maximum Fee
      a. Issuance, renewal or modification of an underground storage facility permit	$25,000.00
      b. Issuance, renewal or modification of a groundwater savings facility permit	$10,000.00
      c. Issuance, renewal or modification of a water storage permit	$10,000.00
      d. Recovery well permit, including an emergency temporary recovery well permit	$10,000.00

   9. 9. Assured and Adequate Water Supply:

      Type of Application	Maximum Fee
      a. Physical availability determination	$10,000.00
      b. Analysis of assured or adequate water supply	$10,000.00
      c. Renewal of analysis of assured or adequate water supply	$10,000.00
      d. Certificate of assured water supply	$10,000.00
      e. Issuance or modification of designation of assured water supply	$35,000.00
      f. Issuance or modification of designation of adequate water supply	$25,000.00
      g. Water report (outside an AMA)	$10,000.00
      h. Assignment of Type A certificate of assured water supply	$5,000.00
      i. Assignment of Type B certificate of assured water supply	$5,000.00
      j. Classification of Type A certificate of assured water supply pursuant to R12-15-707	$10,000.00
      k. Review of revised plat to determine whether changes are material	$10,000.00
      l. New certificate of assured water supply pursuant to R12-15-704(G)	$10,000.00
      m. Letter stating that owner is not required to obtain a certificate of assured water supply pursuant to R12-15-704(M)	$10,000.00

   10. 10. Surface Water:

       Type of Application	Maximum Fee
       a. Permit to appropriate public water	$10,000.00
       b. Certificate of water right	$10,000.00
       c. Primary reservoir permit or secondary reservoir permit	$10,000.00
       d. Change in use of water	$10,000.00
       e. Severance and transfer of water right to land that is not within the same parcel or farm unit as the current use, or that includes a change in water source, use or ownership	$25,000.00
       f. Severance and transfer of water right to land that is within the same parcel or farm unit as the current use and that does not include a change in water source, use or ownership	$2,500.00
       g. Request for extension of time to complete construction	$10,000.00

3. C. A person filing an application that is subject to an hourly fee shall submit an initial fee at the time the application is submitted to the Department. The initial fee for applications described in subsections (B)(7), (B)(8)(a), (B)(9)(e), (f) and (B)(10)(e) shall be $2,000.00. The initial fee for all other applications shall be $1,000.00. If requested by the applicant, the Department may set a lower initial fee if the Department estimates that the total application fee will be less than the initial fee specified in this subsection. The Department shall not accept an application for which an initial fee is required under this subsection unless the initial fee is included with the application.

4. D. The Department shall bill the applicant for processing the application no more than monthly, but at least quarterly. Each bill shall contain the following information for the billing period:

   1. 1. The number of review hours accrued by activity and subactivity code during the billing period, the date of each activity, a description of each activity and the effective hourly rate for all activities;
   2. 2. A description and amount of any mileage expenses charged for the application;
   3. 3. A description and amount of the cost of mailing or publishing any legal notice of the application or notice of a pre-decision administrative hearing on the application; and
   4. 4. The total fees paid to date, the total fees due for the billing period, the date when the fees are payable, which shall be at least 60 days after the date of the bill, and the maximum fee for the application.

5. E. A bill for hourly fees becomes past due if the applicant does not pay the bill in full by the due date specified in the bill, unless the applicant submits a timely request for reconsideration of the bill pursuant to subsection (G). If the applicant submits a timely request for reconsideration of the bill, the bill becomes past due if the applicant does not pay the amount due under the Director’s decision on the request by the date specified in the decision. If a bill for hourly fees becomes past due, the following shall apply:

   1. 1. The applicable review time-frame shall be suspended from the date the bill became past due until the applicant pays the bill in full or the application is denied under subsection (E)(2), whichever applies.
   2. 2. The Department shall suspend its review of the application and send a written notice to the applicant that the bill is past due. If the applicant does not pay the outstanding bill by the date specified in the notice, which shall be at least 35 days from the date of the notice, the application shall be denied.

6. F. After the Department makes a determination whether to grant or deny the application, or when an applicant withdraws the application, the Department shall prepare and send to the applicant a final itemized billing statement for the application fee.

   1. 1. If the total fee exceeds the amount of the initial fee paid plus all other payments made to date, the applicant shall pay the balance, up to the maximum fee for the application, plus any mileage expenses and the actual cost of mailing or publishing any legal notice of the application or notice of a pre-decision administrative hearing on the application, by the date specified in the statement, unless the applicant submits a timely request for reconsideration of the bill pursuant to subsection (G). The statement shall specify a date, at least 60 days from the date of the statement, by which the applicant must pay the bill. If the applicant submits a timely request for reconsideration of the bill, the applicant shall pay the amount due under the Director’s decision on the request by the date specified in the decision. The Department shall not release the final permit or approval until the final bill is paid in full.
   2. 2. If the total fee is less than the initial fee plus all other payments made to date, the Department shall refund the difference to the applicant within 35 days of the date of the statement.
7. G. An applicant may seek reconsideration of a bill for hourly fees by filing a written request for reconsideration with the Director. The request shall specify, in detail, why the bill is in dispute and shall include any supporting documentation. The written request for reconsideration shall be delivered to the Director in person, by mail, or by facsimile on or before the payment due date. The Director shall make a final decision on the request for reconsideration of the bill and mail a final written decision to the person within 20 business days after the date the Director receives the written request. The decision shall specify a date, at least 35 days from the date of the decision, by which the applicant must pay the bill. The Director may reduce the amount of any fees billed under this Section if the Director determines that the number of review hours or mileage expenses billed to the applicant was incorrect or that time spent by the Department to review the application and make a decision thereon was not necessary or advisable.
8. H. If a person receives a bill under this Section and the bill becomes past due under subsection (E) or (F), the Department shall not accept for filing any other application by that person until the person pays the past due amount in full.

Historical Note

New Section made by exempt rulemaking at 16 A.A.R. 1205, effective June 15, 2010 (Supp. 10-2). Amended by exempt rulemaking at 16 A.A.R. 1950, effective September 10, 2010 (Supp. 10-3). Amended by exempt rulemaking at 17 A.A.R. 776, effective April 15, 2011 with an automatic repeal date effective June 4, 2011; new Section made by final rulemaking at 17 A.A.R. 659, effective June 4, 2011 (Supp. 11-2). Amended by final expedited rulemaking at 29 A.A.R. 3478 (November 3, 2023), with an immediate effective date of October 13, 2023 (Supp. 23-4).