By Matthew Holloway |
A groundwater fee provision backed by Rep. Chris Lopez (R-LD16) has been included in Arizona’s FY2027 budget, extending Pinal County agricultural water fee relief through 2030 and giving irrigation districts additional time to use funds for groundwater and irrigation efficiency projects.
The provision is part of HB 4159, the environment budget reconciliation bill signed by Gov. Katie Hobbs on June 13 and enacted as Chapter 131 of the 2026 session laws. The law amended state groundwater statutes by extending the period during which no groundwater withdrawal fee is levied in the Pinal Active Management Area (AMA) for Arizona water banking purposes from 2026 to 2030. It also extends through 2030 the $ 2.50-per-acre-foot annual fee cap for groundwater and irrigation efficiency projects in the Pinal AMA.
Lopez introduced the policy earlier in the session as HB 2827. The introduced version listed Lopez as the primary sponsor, with Reps. Gail Griffin (R-LD19), Teresa Martinez (R-LD16), Michele Peña (R-LD23), and James Taylor (R-LD29) also listed as sponsors.
Lopez serves as vice chair of the House Natural Resources, Energy & Water Committee and represents Legislative District 16, which includes portions of Pinal and Pima counties.
The Temporary Groundwater and Irrigation Efficiency Projects Fund provides money for projects tied to construction and rehabilitation of wells and related infrastructure for qualified irrigation districts in the Phoenix AMA, Pinal AMA, and Harquahala Irrigation Non-Expansion Area. Under Chapter 131, groundwater withdrawal fees collected in the Pinal AMA for groundwater and irrigation efficiency projects are deposited into the fund and used solely to construct and rehabilitate wells and related infrastructure in the Pinal AMA.
The law also extends the distribution schedule for unencumbered fund money. The previous June 30, 2027, deadline for distributing remaining funds to contributors is moved to June 30, 2032, with proportional distribution by Dec. 31, 2032. The repeal date for the Temporary Groundwater and Irrigation Efficiency Projects Fund is extended from March 31, 2028, to March 31, 2033. HB 4159 also extends the repeal date for the Arizona System Conservation Fund from March 31, 2027, to March 31, 2031.
Lopez said that, with ongoing Colorado River negotiations, the extension was needed to “provide stability for irrigation districts” preparing for reduced Colorado River water. He also said the measure helps “keep Pinal money in Pinal” and allows irrigation districts to upgrade wells and switch from open canals to closed-pipe systems, which he said conserves water by reducing evaporative losses.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
