Attachment C - ASU Kyle Center for Water Policy at the Morrison Institute
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‘Kyl Center for Water Policy at Morrison Institute Arizona State University HOW ARIZONA MUNICIPAL WATER PROVIDERS ARE REGULATING LARGE-VOLUME WATER USERS Recognizing the need to manage water supplies sustainably and cognizant of public concerns about long-term availability, at least nine large municipal water providers in Arizona have passed ordinances imposing restrictions on water deliveries to large water users. The City of Chandler was the first to do so, in 2015,’ and the City of Tucson is the latest, in August 2025. And at least one private water provider, EPCOR, has received approval from the Arizona Corporation Commission to limit larger-volume water uses in its service areas throughout the state. Part | of this report discusses considerations for municipal water providers related to regulating large-volume users, Part Il summarizes our findings on the measures providers have taken to regulate large-volume water users and Part Ill details ten measures that have been implemented in Arizona in response to large-volume water users. I. Considerations Related to Regulating Large-Volume Users Authority to Limit or Condition Service. A municipal water provider has a legal duty to provide fair and impartial water service within its water service territory.2 This does not mean, however, that the provider cannot condition service on certain terms or even decline to serve a particular use. Rather, it means that the provider must treat customers in the same circumstances generally the same and may not deny water service or require terms and conditions in an arbitrary and capricious manner. A municipal water provider has latitude to determine the means under which water service will be provided within its service territory, if at all, so long as the requirements are fair and impartial. Arizona’s municipal water providers have long required customers to meet infrastructure standards to gain water service. For example, they commonly require on-site water pipelines, tanks, hydrants and fire suppression systems to be a particular size, material and configuration. They also require customers to meet financial terms and conditions such as the timing and method of payment for service and size of deposits. Water Supply Constraints. Relatively new, however, are requirements related to water resources management. Arizona water providers generally manage their water portfolios carefully, with the intent to provide safe and reliable water service for current and future customers within their service territories. Water providers scrutinize projected water demands for proposed developments — including for large-volume water uses, such as those associated with the high-tech industry — to determine whether they can be accommodated without ‘ Notably, the City of Peoria adopted “Principles of Sound Water Management” in 2007. Policy #6, “Land Use and Water Management” tied land use with water use https://www.peoriaaz.gov/home/showpublisheddocument/4202/636305236355830000. 2Veach v. City of Phoenix, 102 Ariz. 195, 197 (1967). Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 2 impacting existing uses and whether the benefits of the project justify the acquisition of additional water supplies, if necessary. Designations of Assured Water Supply. For many large providers within the state’s Active Management Areas,° another key consideration is whether a proposed new demand will impact their ability to maintain their Designations of an Assured Water Supply. To obtain and keep a Designation, a water provider must demonstrate to the Arizona Department of Water Resources (ADWR) that the provider has the water supply necessary for 100 years for all current water uses and those projected within the designation period (usually five to 15 years) within its service area and that it has the financial capacity to construct the delivery, storage and treatment systems necessary to make the water available to the provider’s customers. A Designation is reviewed by ADWR no less frequently than every 15 years, ensuring that commitments to water service do not exceed supplies. Maintaining a Designation requires constant planning and investments. The prospect of Colorado River shortages in central Arizona pushes providers with Designations to either live within tighter water budgets or endure the trouble and expense to acquire additional water supplies. Arizona Providers Designated as Having an Assured Water Supply Phoenix AMA: Avondale, Chandler, El Mirage, Gilbert, Glendale, Goodyear, Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe, EPCOR Chaparral District (Fountain Hills), EPCOR Johnson Utilities (San Tan Valley), Apache Junction Water Company Pinal AMA: Casa Grande, Eloy, Florence, Global Water Santa Cruz (Maricopa), EPCOR San Tan - Anthem Prescott AMA: Prescott Santa Cruz AMA: Baca Float Water Company, Nogales, Sopori DWID, Tubac Water Company Tucson AMA: Flowing Wells, Global Water — Farmer’s Water Company, Marana, Metropolitan DWID SW — Diablo Village, Metropolitan DWID — Main, Metropolitan DWID — West, Oro Valley, Sahuarita Water Company, Spanish Trail Water Company, Tucson, Vail Water Company, Willow Springs Utilities Il. Findings on Measures to Regulate Large-Volume Users Over the summer of 2025, the Kyl Center for Water Policy surveyed all Arizona water providers with a Designation of Assured Water Supply to determine whether they had implemented an ordinance or other measure related to large-volume water users. Nine municipal providers have an ordinance in place that addresses how to evaluate such water users when they request service. These providers are Avondale, Chandler, Gilbert, Marana, Mesa, Peoria, Phoenix, Tempe and Tucson. In addition, one private provider, EPCOR, has received regulatory approval for a large-volume water user policy, or “tariff,” applicable to all its service areas in Arizona. %Arizona’s Active Management Areas are geographically defined areas of the state in which groundwater use is regulated to reach a management goal established by the state. Ariz. Rev. Stat. §§ 45-402(2), 45- 411, 45-412. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 3 This means that over four million Arizonans are served by water providers with large-volume water user policies in place. No other Designated water providers have ordinances or tariffs addressing large-volume water users. The Kyl Center also surveyed the state’s Adequate water supply providers serving populations over 15,000. None of these providers has a large-volume water user ordinance in place. Key Findings 1. There is no standard definition for "large-volume water user." Water users can be large relative to instantaneous or “peak” daily demands, seasonal demands, annual demands or all three. Each type of demand has different implications for infrastructure and for water resources management. Generally, larger pipes and related infrastructure are necessary to meet larger, instantaneous demands. A single water user’s large, instantaneous demand of five million gallons per day in the boundaries of the City of Phoenix’s municipal water service territory, which meets peak daily demands of over 400 million gallons during the summer, may pose little or no challenge, while that same instantaneous demand may be nearly impossible to meet in a smaller utility such as EPCOR’s Anthem district which sees daily demands peak at approximately 12 million gallons during the summer. Similarly, a large annual demand of 1,000 acre-feet in the City of Tucson’s water service territory, in which around 100,000 acre-feet of water is delivered each year, would likely be much easier to meet than the same annual demand in the Town of Cave Creek’s water service territory, in which approximately 2,000 acre-feet of water is delivered per year. A large water user can have a large, instantaneous demand from time-to-time but not require a relatively large amount of water over a year and conversely can require a large amount of water over a year and have no large, instantaneous demand. In most cases, a large, instantaneous demand places a higher burden on physical infrastructure while a large annual demand places a higher burden on the water resources portfolio. multiple or large meter customer: demand equals or exceeds 25,000 Avondale gallons per day or 28 acre-feet annually, or peak demand requires 3” meter or multiple meters multiple or large meter customer: uses more water than the Tier 1 Chandler allocation associated with the land use or requires a 3” or greater meter or multiple meters new multiple or large meter customer: uses more water than the Tier 1 Gilbert allocation, a 3” or greater meter or more than two meters data center: no water service for the purposes of cooling, humidity control or Marana nar , similar operations September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 4 multiple or large meter customer: exceeds 330 acre-feet in 12 month period Mesa Legacy Customer: exceeds 550 acre-feet annually Established Legacy Customer: exceeds 850-950 acre-feet annually large water user: exceeds 100,000 gallons per day during any 24 hour period Peoria or averages 50,000 gallons per day or more over a consecutive 365 day period Phoenix large water user: demand of at least 250,000 gallons per day; additional requirements for water use of at least 500,000 gallons per day high water use: exceeds 250,000 gallons daily in any consecutive 24 hour period Tempe aos . extreme water use: exceeds 500,000 gallons daily in any consecutive 24 hour period or meter 3” or greater Tucson large quantity water user: monthly use exceeds an average 10,000 centum cubic feet (7,480,520 gallons) EPCOR large water user: average daily water demand greater than 1,700 gallons per day per acre 2. Water resources and demand management requirements for large-volume water users vary widely. While all the large-volume measures require a new large water user to obtain the water provider's permission in advance of connecting to the provider's water system, the conditions for obtaining permission vary substantially. Some providers focus on conservation plans submitted by the large water user and whether the proposed use is in the best interests of the municipality. Other providers require large water users to bring water with them or use recycled water. 3. Refusing to serve large-volume water uses within a provider’s water service area does not necessarily protect the provider against all of the impacts of large-volume water users. Within the Active Management Areas, a person may apply for a permit to withdraw groundwater for a proposed "general industrial use."4 If the proposed use is located within three miles of the exterior boundaries of the service area of a city, town or private water company the applicant must ask for water service. If the city, town or private water company denies service at the customary rate in the customary manner and the general industrial use meets other statutory requirements, the Director must issue the permit. A general industrial use permit authorizes the holder to withdraw groundwater for up to 50 years subject to renewal under the same criteria. 4Ariz. Rev. Stat. § 45-515. “General industrial use” means a non-irrigation use of groundwater, including animal industry uses, but not including uses related to mineral extraction. ARS §§ 45-511, 45-513 & 45- 514. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 5 Pumping pursuant to non-irrigation grandfathered groundwater rights can also impact municipal service areas. A type 1 non-irrigation grandfathered right results when land with irrigation grandfathered rights is retired from agricultural irrigation. The type 1 right is appurtenant to that land and groundwater may be withdrawn only from wells on that land. A type 2 non-irrigation grandfathered right is not associated with formerly irrigated land and may be used anywhere in the AMA in which it was issued. Both rights may be used for industrial purposes. Groundwater uses pursuant to general industrial use permits and Type 1 and Type 2 Non- irrigation grandfathered rights are not subject to replenishment, meaning that these uses deplete local groundwater sources, potentially tapping into the same supplies relied upon by municipal providers. Sometimes, large water users pursue these independent groundwater pumping rights to avoid tying into the local municipal water system and paying the local water rate. In doing so, they are subject only to the state’s Water Quality Assurance Revolving Fund fees of $2.12 per acre-foot plus groundwater withdrawal fees (applicable in Active Management Areas) of $2.00 to $3.50 per acre-foot rather than the industrial class water rates charged by municipal water providers, which among municipal water providers with a Designation are on the order of $700 to $2,200 per acre-foot. In short, if a municipal water provider declines to serve a new industrial use, the industry may arrive in the region anyway and meet demands with local groundwater sources, contributing to aquifer depletion. To avoid depletion, a Designated provider may choose to provide water service to certain large industrial users and apply terms and conditions that enhance sustainable water use for the intended purpose, such as requirements to use reclaimed water or to submit water conservation plans. 4. There is no one-size-fits-all approach. Recently, water demands for data centers have come under increasing scrutiny because of the large volumes of water used for evaporative cooling, which can range from 250 acre-feet per year to well over 2,000 acre-feet per year, depending on size and other factors.° Yet large- volume water users have long been a part of urban communities in central and southern Arizona. For example, golf courses, depending on size and other amenities, use between around 300 and 1,200 acre-feet per year (those with decorative lakes and ponds tend to use much more). Non-nuclear power generating facilities can use between 800 and 10,000 acre-feet per year. A facility in the Phoenix AMA that produces a popular alcoholic beverage uses approximately 700 acre-feet per year, relying on wells using Type 2 non-irrigation grandfathered rights that are not subject to replenishment requirements or local water tariffs. Each municipal water provider determines the terms and conditions under which it will provide water service to large water users, in line with infrastructure, financial and water resources management considerations. Water supply portfolios in Arizona vary widely, even among municipal water providers with a Designation. Some have ample access to renewable supplies 5An acre-foot equals 325,351 gallons. Some data center developers are opting for cooling technologies with significantly reduced water consumption. See Ben Craske, “How are Data Centres Shifting to Zero- Water Cooling Tech?” Data Centre Magazine (July 22, 2025) https://datacentremagazine.com/news /how-are-companies-pioneering-data-centre-zero-water-cooling (“[C]ompanies including Microsoft, Evolution Data Centres, Vertiv and Bridge Data Centres are moving towards zero-water cooling.”); Dan Swinhoe, “Microsoft to swap water for air cooling at campus in Phoenix, Arizona,” Data Center Dynamics (March 16, 2023) https://www.datacenterdynamics.com/en/news/microsoft-swapping-water-for-air- cooling-at-campus-in-phoenix-arizona/. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 6 Salt and Verde Rivers delivered through the Salt River Project canal system; others enjoy access to a relatively large amount of Colorado River water via contracts, leases and exchanges with tribal communities; and others have access only to groundwater and reclaimed water. A new industrial enterprise that uses a large volume of water may be a good fit for one community and not for another. Ill. LARGE-VOLUME WATER USER PROVISIONS Below are the main provisions of the ordinances and tariffs surveyed, organized from least restrictive to most restrictive in terms of the ease of obtaining service. Water Conservation Reports and Water Use Plans City of Tempe e Ordinance® applies to high-water use and extreme-water use customers. e A high-water use is a new non-residential or new commercial portion of a mixed-use structure having a projected water use exceeding 250,000 gallons daily during any consecutive 24 hour period. e Anextreme-water use is new non-residential or new commercial portion of a mixed-use structure having a projected water use exceeding 500,000 gallons daily during any consecutive 24 hour period (excluding turf-related facilities) or using a 3” meter or greater. e Fora high-water use, a Water Conservation Report must be filed with the Public Works Department before a building permit will be issued. e For an extreme-water use, a Water Use Plan must be approved by the Public Works Department before a building permit will be issued. The Water Use Plan must describe any changes to the current general plan and include at least five of several other measures, including the identification of the water resources available to meet the site's needs and on-site recycling and reuse strategies. Consistency with Water Master Plan and Best Interests of the City, Voluntary Conservation Plan City of Peoria e Ordinance’ applies to Large Water Users and Water-Intensive Users. e ALarge Water User is a customer with a water use equaling or exceeding 100,000 gallons per day during any 24 hour period or averaging 50,000 gallons or more per day over a consecutive 365 day period. e ALarge Water User may connect to the City's potable or non-potable water system only if the City issues a permit. ®Tempe City Code §§ 33-140 — 33-142 (2025) https://ibrary.municode.com/az/tempe/codes/city_code?nodeld=CH33WA. 7Peoria City Code §§ 25-15.01 — 25.15.05 (2024) https://codelibrary.amlegal.com/codes/peoria az/latest/peoria_az/0-0-0-59984. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 7 e Upon receipt of a permit application meeting several requirements, the City will issue a permit if: 1. The proposed water use does not exceed 100,000 gallons per day averaged over a 365 day period and aligns with the City's integrated water utilities master plan, or 2. The proposed water use is equal to or greater than 100,000 gallons per day and issuing a permit is in the best interests of the City considering several factors including: othe availability of water not otherwise allocated to which the City has the legal right and physical ability to deliver, othe estimated impact of the proposed water use on the City's economy, o whether the proposed use will further the City's Economic Development Strategic Plan, othe impact of the proposed use on the City's Designation of Assured Water Supply, o whether the applicant will assign any rights to water to the City to offset the projected water use, and o whether the applicant will agree to offset the cost of any infrastructure improvements necessary to accommodate the proposed use. e AWater-Intensive User is a customer where any of the following occurs: 1. Vehicle washes. 2. Cooling that results in water use that exceeds 25,000 gallons per day over a 365 day period. 3. Short-term rental or lodging with 50 or more rooms. 4. Long-term care services at a multi-residential facility with 50 or more rooms. 5. Any water body with a surface area of one-quarter acre or more. e AWater-Intensive User may not connect to the City's potable or non-potable system unless the user attests it will voluntarily implement and maintain applicable water conservation processes. Any Water-Intensive User unwilling to submit a sufficient attestation is required to obtain a Large Water User Permit. Consistency with Water Master Plan, Conservation Plan, Designation of Assured Water Supply; Required Use of Recycled Water City of Phoenix e Ordinance? applies to large water users with a projected demand equal to or exceeding 250,000 gallons per day. e Alarge water user must submit a sustainable water service application that includes a water conservation plan. 8 Phoenix City Code §§ 37-52.01 — 37.52.05 (2024) hitps://phoenix-proof.municipal.codes/CC/37-52.04. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 8 e If the projected water use is less than 500,000 gallons per day, the Director of Water Services will allow the applicant to connect to the City's public water system if: 1. The Large Water User's conservation plan demonstrates that it will undertake to use water as efficiently as practicable and ensure water is not wasted, and 2. The proposed water use is consistent with the City's water master plan. e If the projected water use is 500,000 gallons per day or more, the Director may allow the applicant to connect to the City's public water system unless: 1. The application and water conservation plan fail to demonstrate that the large water user will use water as efficiently as practicable, 2. The applicant's water use would be incompatible with the City's available water resources, The applicant's water use would be inconsistent with the water master plan, The applicant's water use would be of insufficient economic benefits to warrant the large use of water, or 5. The applicant has not agreed to use recycled water to offset at least 30% of its water use or the maximum use of recycled water warranted. e In making the determination whether to allow a large water user with a projected water use of 500,000 or more gallons per day to connect to the City's public water system, the Director shall consider several factors including whether the proposed water use will support a key industry, the impact of the proposed water use on the City's Designation of an Assured Water Supply and whether the applicant will assign to the City a water supply that will fully offset the applicants projected water use. e Alarge water user may not use water in any year in excess of 120% of the amount approved. The Director may suspend water service to a large water user that violates this provision. e Other remedies for violations include civil sanctions. If the City is assessed a civil penalty or ordered to take remedial action by ADWR as a result of a large water user's violation of state law, the large water user is liable. City of Tucson e Ordinance® applies to large quantity water users with a water use that equals or exceeds an average of 10,000 centum cubic feet per month (7,480,520 gallons). e Alarge quantity water user must submit a sustainable water service application at the time of applying for development entitlements. The application must include a water conservation plan. If the location is within one mile of the Tucson Water Reclaimed Water Distribution System, the water conservation plan must include information about the cost of connection to the System and the suitability of the reclaimed water for the user. e Anapplication and water conservation plan will be scheduled for consideration by the Mayor and Council if the Director determines the following elements have been addressed completely and correctly: °Tucson City Code §§ 27-20 — 27-21 (2025). September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 9 1. The large quantity water user will undertake to use water as efficiently as is practicable. The proposed water use is consistent with the City's available water resources. The water use would be of sufficient economic benefit to warrant the large quantity of water use. 4. The applicant has agreed to use reclaimed water to offset at least 30% of its water use or the percentage the Director determines is warranted. The proposed water use will support a key industry for the City. The impact of the proposed water use is consistent with the City's Designation of Assured Water Supply. 7. The applicant has proposed extraordinary conservation techniques and technologies. 8. Whether the applicant will convey to the City legal rights to a physical water supply that will fully offset the applicant's projected water use that will meet the requirements of an assured water supply. 9. The applicant's technical, financial and managerial competence to implement the conservation plan. The Mayor and Council may approve, deny or return an application and conservation plan for more information. A large quantity water user may not use in any year in excess of 120% of the amount approved by the Mayor and Council. The Director may suspend water service for violation of this provision. Other remedies for violations include civil sanctions. If the City is assessed a civil penalty or ordered to take remedial action by ADWR as a result of a large water user's violation of state law, the large water user is liable. Pay More for More Water, if Available City of Chandler Ordinance” applies to "multiple or large meter (MLM)" customers that use more water than the Tier | allocation associated with the land use as determined by the City Council or require a 3” or greater meter or multiple meters. An MLM customer must submit a sustainable water service application to the City when applying for development entitlements. The Public Works and Utilities Director may approve an application and will determine whether Tier II water is available for the development based on the City's master plan. If Tier Il water is not available, the MLM user must purchase Tier III water, if available, in order to continue with its development. Tier III water is water that may be available for purchase from the City at a price determined by the City. 10Chandler City Code §§ 52-43 - 52-48 (2015, amended 2025) https://ibrary.municode.com/az/chandler/codes/code_of ordinances?nodeld=PTVIIIUT _CH52WASE AR TVISUWAALRE. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 10 Use of Tier II or Tier Ill water requires a sustainable water service agreement with the City that includes terms for enforcement and penalties for violations. Town of Gilbert Ordinance" applies to MLM customers who will use more than the Tier | water use allocation approved by the Town Council in the Town's Water Resources Management Strategy Report, will use a 3” or greater meter or will use multiple meters equivalent to a 3” or greater meter. The ordinance does not apply to residential customers or non- residential landscape meters. Auser desiring to exceed the Tier | allocation must enter into a sustainable water service development agreement approved by the Town Council. MLM users under the Tier 1 allocation must agree not to exceed the allocation. The Town Manager determines whether the development is eligible for Tier II water and whether to make it available. Tier Il water is allocated on a case-by-case basis if in alignment with the economic priorities provided in the latest Water Resource Management Strategy Report If Tier Il water is not available, the user must purchase Tier III water from the open market to continue with development. Penalties for exceeding the annual sustainable water use allotment include submission of a water use reduction plan for the first exceedance, reimbursing the Town for water credits it may purchase for the amount of water overused for the second exceedance and potential termination of the agreement for the third exceedance. Bring Water with Them City of Avondale Ordinance’? applies to MLM customers where demand equals or exceeds 25,000 gallons per day or 28 acre-feet of water annually or where peak demand is sufficient to require a 3” meter or multiple meters. City determines a "water allocation" for each specific parcel of land in accordance with the City's latest integrated utility master plan. The MLM applicant (property owner) must submit a water design report to the City that demonstrates the project will not exceed the water allocation. If the demand will exceed the allocation, the applicant may: 1. Acquire the legal and physical rights to additional water supplies and transfer them to the City, Redesign, rezone or re-engineer the project to reduce water demand, or Petition the City for additional water. "Gilbert Municipal Code §§ 66-401 — 66-406 (2019) https://library.municode.com/az/gilbert /codes/code_of_ordinances?nodeld=CO_CH66UTOP_ARTXSUWAALRE. 12Avondale City Code §§ 24-150 — 24-156 (2025) https://www.avondaleaz.gov/home/show publisheddocument/21288/638876639242430000. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 11 e If awater usage is determined to be in excess of the allowance for the property, penalties may include requiring the property owner to purchase additional water to pledge to the City or terminating service. City of Mesa e Ordinance’ applies to MLM customers that exceed a "Demand Ceiling." 1. Fornew MLM customers, the Demand Ceiling is 330 acre-feet in a rolling 12 month period. 2. For "Legacy Customers" in existence as of the effective date of the ordinance the Demand Ceiling is 550 acre-feet annually. 3. For "Established Legacy Customers," the Demand Ceiling is 850 acre-feet to 950 acre-feet depending on their historic demands. e To exceed the Demand Ceiling, a customer must apply for an MLM Permit by submitting a Sustainable Water Service Application to the Mesa Water Resources Department. e AMLM Permit may authorize an Allowance amount in excess of the Demand Ceiling. e Within 90 calendar days of issuance of the MLM Permit, the customer must secure and transfer a sufficient amount of long-term storage credits to the City to meet the Allowance amount for not less than three years. e The customer must maintain a balance with the City of at least 3 years of long-term storage credits. e Penalties apply for water deliveries of 5% more than the applicable Demand Ceiling or Allowance and include increased billing rates and revocation of the MLM Permit. EPCOR (all districts) e Tariff’ applies to any development with a projected average daily water demand greater than 1,700 gallons per day per acre (Large User). e Inorder to "hook up" to the EPCOR's common facilities, a Large User must provide an additional renewable water supply source--such as surface water or a groundwater well with long-term storage credits--to meet the User's demands in excess of this amount. e The rights to the additional renewable water must be conveyed to EPCOR. e The Large User will incur fees for water use in excess of the renewable supply provided to EPCOR and continued excess use may result in requiring the Large User to implement a water reduction plan or court action. 13Mesa City Code §§ 8-10-9 — 8-10-12 (2024) https://library.municode.com/az/mesa/ codes/code_of_ordinances?nodeld=COOR_TITSHESAEN CH10MUWASY_8-10- QDECECOMULAMECUWAPE. 14 See, e.g., EPCOR Water Arizona, Common Facilities Hook-Up Fee, V. Large Water Users, Sheet No. 7.4 (2025) https://www.epcor.com/content/dam/epcor/documents/rates/arizona-water-and-wastewater- rates/san-tan_water-tariff.pdf. September 2025 Kyl Center for Water Policy Large-Volume Water Users Morrison Institute for Public Policy, ASU page 12 Restrict Data Centers Town of Marana Ordinance*® applies only to data centers. Data centers are not permitted to operate in the Town as a principal use unless approved in a specific plan or an amendment created for the purpose of a data center development. Data centers are permitted to operate as an accessory use in certain zoning districts under limited conditions. The Marana Water Department will not provide potable water to a data center for its cooling system, humidity control and other similar operations. The developer must demonstrate an alternative water source for those purposes. ‘SMarana Town Code § 17-6-13 (2024) https://codelibrary.amlegal.com/codes/maranaaz /atest/marana_az/0-0-0-17317#JD_17-6-13. September 2025