ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DP 10-0-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2827: groundwater withdrawal fee; Pinal AMA.

Sponsor: Representative Lopez, LD 16

Caucus & COW

Overview

Extends the Pinal active management areas (AMA) exemption from the groundwater withdrawal fee for water banking by four years.

History

The Arizona Department of Water Resources (ADWR) Director must levy and collect an annual groundwater withdrawal fee from each person who withdraws groundwater in the Pinal AMA in an amount not more than $2.50 per acre-foot per year (A.R.S. § 45-611).

The Temporary Groundwater and Irrigation Efficiency Projects Fund (Fund) consists of state General Fund monies, groundwater withdrawal fees collected in the Pinal AMA, grants from federal agencies and monies deposited into the fund by qualified irrigation districts in the Phoenix AMA, Pinal AMA and the Harquahala irrigation non-expansion area (INA). The Fund exists for the purpose of funding projects for the construction and rehabilitation of wells and related infrastructure for the withdrawal and efficient delivery of groundwater by qualified irrigation districts in the Phoenix and Pinal AMA as well as the Harquahala INA.

The Fund is repealed on March 21, 2028, and on June 30, 2027 any unencumbered monies in the Fund must be proportionally distributed to fund contributors by December 31, 2027, according to the total amount of monies deposited in the Fund by each contributor (JLBC).

Provisions

1.   Extends, by four years:

a.   the exemption from a groundwater withdrawal fee of not more than $2.50 per acre-foot in the Pinal AMA for water banking purposes; and

b.   the groundwater withdrawal fee of not more than $2.50 per acre-foot in the Pinal AMA for groundwater and irrigation efficiency projects. (Sec. 1)

2.   Extends the deadline for remaining monies in the Fund to be proportionally distributed to the Fund's contributors by five years. (Sec. 2)

3.   Delays the repeal of the Fund by five years. (Sec. 3)

4.   Makes technical and conforming changes. (Sec. 1, 3)

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8.   Initials CW/RS                HB 2827

9.   2/13/2026  Page 0 Caucus & COW

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