Arizona Lawmakers Advance Sweeping Reforms For State Land Department Amid Years Of Inaction

Arizona Lawmakers Advance Sweeping Reforms For State Land Department Amid Years Of Inaction

By Ethan Faverino |

The Arizona House of Natural Resources, Energy, and Water Committee held a special hearing on last week to examine the Arizona State Land Department (ASLD) and advance legislation aimed at its continuation, improved administration, and the siting of utility-scale wind and solar energy projects near residential communities.

In a sweeping action, lawmakers advanced all 16 bills on the agenda, demonstrating strong, unified momentum to reform persistent operational and cultural problems within the department.

HB 2426, which mandates the development and adoption of a required five-year disposition plan for state trust lands, was adopted as an amendment to HB 2150, the primary continuation bill for the ASLD.

Sponsored by Rep. Gail Griffin (R-LD19), HB 2150 repeals the department’s prior sunset date and continues its operation until July 1, 2030, with the repeal of related statutes effective January 1, 2031. The measure requires a two-year hearing, quarterly updates to the Legislature, and compliance with existing statutes mandating a five-year disposition plan under ARS § 37-331.03.

“The State Land Department is not a constitutional agency. The Legislature created the Department, and the Legislature can set guardrails to ensure the highest and best use of land,” stated Chairman Gail Griffin in a press release addressing the issues at the ASLD.  “For years, the Department has failed to keep land and housing development moving with consistent long-term disposition planning and predictable decisions. That means less trust revenue for classrooms and fewer lots available for homes.”

ASLD manages approximately 9.2 million acres of state trust land, with a statutory mandate to prioritize the highest and best use to generate maximum revenue for 13 trust beneficiaries, primarily K-12 public schools.

However, recent audits—including the 2025 performance audit and sunset review by the Auditor General—along with multiple legislative hearings and recommendations from the Joint Committee of Reference, have highlighted persistent problems.

These include a lack of consistent long-term planning, unresolved pending applications without final decisions, unwritten regulatory processes and procedures, lost revenue opportunities, due-process concerns, and unnecessary strain on Arizona’s housing supply amid land scarcity and rising costs.

Effective management of state trust lands directly impacts housing affordability and education funding. The Department could immediately alleviate pressures by accelerating sales and leases of suitable parcels, increasing available land for residential development, and generating sustained revenue for schools without new taxes.

Yet reports indicate practices such as withholding land from public auction and canceling leases without replacement tenants, while the Hobbs administration is actively devaluing urban-adjacent land to favor utility-scale solar development near residential areas.

“This is not complicated,” added Griffin.  “Arizona’s high-tech economy requires new affordable rooftops for workers, and Arizona’s schools depend on trust returns from the sale of available trust parcels. The Department can improve housing supply and education funding today by selling more land and ending the internal practices that keep projects stalled.”

The sunset review process provides the Legislature with significant leverage to enforce accountability and measurable change. During the hearing, committee members questioned the Governor’s appointed Land Commissioner on fundamental Department functions, processes, and documentation. Responses were often inadequate or nonexistent—raising concerns about leadership after three years in that role.

Senate Natural Resources Committee Vice Chairman Tim Dunn (R-LD25) echoed the call for reform. “The current administration didn’t create these problems, but it certainly inherited them. Now the burden is on the current commissioner to change the culture and redirect the agency in the right direction. The agency needs oversight, but the Department has an opportunity to make a meaningful difference for the state. A positive change could bring in millions of dollars of additional revenue for the trust.”

“Arizona House and Senate Republicans are unified in our understanding of the issues and of the breadth of changes that are needed,” added Senator Dunn. “Based on the clear recommendation of the Joint Committee of Reference, I think it’s safe to say that the Department will not be receiving a clean continuation, and that any continuation the Department receives will be contingent on significant improvements codified in law.”

HB 2426 requires the State Land Commissioner, within two years of the act’s effective date, to complete the five-year disposition plan, adopt written policies for updating it every five years, establish procedures for using the plan to guide public auctions, and submit copies to legislative leadership.

The bill’s legislative findings highlight years of inaction, noting the department’s failure since 2016 to produce the required plans and the fact that all five positions on the advisory Urban Land Planning Oversight Committee have remained vacant since 2018.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Arizona House Passes $1 Million Boost To Colorado River Litigation Fund

Arizona House Passes $1 Million Boost To Colorado River Litigation Fund

By Matthew Holloway |

The Arizona House of Representatives nearly unanimously approved legislation on Tuesday to increase funding for the state’s legal defense fund related to Colorado River water rights, advancing the measure to the Arizona Senate. The bill passed the House with 56 votes in favor and 4 members not voting.

The measure, known as House Bill 2116, sponsored by Rep. Gail Griffin (R-LD14), and supported by fellow Republican Reps. Pamela Carter and Matt Gress of Legislative District 4, would appropriate $1 million from the state’s general fund to the Colorado River Litigation Fund for fiscal year 2026-27.

“Waiting until a lawsuit is filed to start planning would be reckless,” Griffin told AZ Family. “HB 2116 puts Arizona on offense, not defense.”

The Colorado River Litigation Fund was created during the 2025 legislative session to ensure that Arizona could pursue or defend legal action if disputes arise over its legally entitled share of Colorado River water.

In a joint news release, Carter said the additional funding would help protect Arizonans’ water supply by preparing the state for litigation if interstate negotiations fail. She noted that cities, including Phoenix and Scottsdale, remain dependent on water delivered through the Central Arizona Project (CAP).

“We must ensure a safe and reliable water supply for our residents,” Carter said in a statement. “If other states refuse to honor the Compact, we have to be ready to defend our rights in court. HB 2116 ensures Arizona is not caught flat-footed if negotiations fail and litigation becomes unavoidable. I voted yes to protect our water supply, families, jobs, and future.”

Gress emphasized that proactive funding was necessary in case the governor could not secure a satisfactory agreement in ongoing multistate negotiations over river water allocation, saying, “No one wants to go to court over water, but ignoring the risk of litigation would be irresponsible. This funding gives Arizona the ability to defend itself and its rights if the Governor fails to reach a fair agreement. When the water supply of millions of Arizonans and our state’s economy are on the line, every step we take in preparation matters.”

Griffin, chair of the House Natural Resources, Energy and Water Committee, also issued a statement highlighting the importance of readiness. “Other states have been positioning themselves for court long before this fund was created. Hopefully the fund will not be needed, but if it is — this bill makes sure that Arizona is ready to defend the water that millions of people and billions of dollars of economic activity depend on,” she said.

The House approved HB 2116, following bipartisan support in the House Natural Resources, Energy and Water Committee and the Appropriations Committee, and with unanimous approval from the House Rules Committee.

About 36 percent of Arizona’s water supply is drawn from the Colorado River, a resource shared by seven Western states that are currently negotiating a post-2026 operating agreement. If states fail to reach a new deal by the federal government’s deadline of Feb. 14, 2026, federal authorities could impose their own rules on water cuts.

Arizona’s top elected officials, both Republican and Democrat, penned a joint letter in November 2025, urging federal action in the absence of an agreement between the seven Colorado River Basin states. The letter cited the upper basin states’ refusal to commit to verifiable conservation.

In the news release from House GOP Leaders, they note, “Officials from Upper Basin states have openly stated they want to see [Central Arizona Project] CAP deliveries cut before accepting reductions themselves, despite their legal obligation under the 1922 Colorado River Compact to deliver minimum flows to Lower Basin states like Arizona.”

State leaders and stakeholders have increasingly framed the funding boost as a precautionary legal strategy amid complex negotiations and possible delivery shortfalls, as reported by KJZZ. Some water policy analysts say litigation may be difficult to avoid given entrenched positions among basin states; others urge continued negotiation to reach a sustainable agreement without court involvement.

The bill now moves to the Arizona Senate for further consideration.

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.

GOP Lawmakers Advance Broad Package To Lower Gas Prices And Protect Ratepayers

GOP Lawmakers Advance Broad Package To Lower Gas Prices And Protect Ratepayers

By Ethan Faverino |

Arizona House Republicans on the Natural Resources, Energy, and Water Committee have taken action to address skyrocketing gas prices and utility bills, passing a sweeping package of bills designed to lower fuel costs, enhance energy reliability, and defend ratepayers.

Under the leadership of Chairman Gail Griffin (R-LD19), the measures align with the House Republican Majority Plan’s core priorities of unleashing economic prosperity, promoting government efficiency, and protecting individual rights and liberties.

The legislation, which advanced on a party-line vote with Democrats in opposition, targets the challenges faced by Arizona families, particularly in Maricopa and Pinal Counties, where severe summer fuel blend requirements have driven up prices at the pump. By prioritizing affordability and reliable power, these bills aim to ease the financial burden on households amid rising energy demand.

“The cost of living for Arizona families, including gas and electricity, continues to increase, and Republicans are acting,” stated Chairman Griffin. “This package puts affordability first by lowering fuel costs, protecting ratepayers from higher utility bills, and making sure Arizona has dependable power as demand grows. The Majority Plan is clear: government should work to ease the cost burden on families, not make them worse.”

Bills Tackling High Gas Prices

  • HB 2145 (Rep. Griffin): Amends motor fuel statutes to empower the President of the Senate and Speaker of the House to jointly request EPA fuel waivers during shortages if the Governor does not act, providing a defense against price surges.
  • HB 2400 (Reps. Willoughby, R-LD13, and Biasiucci, R-LD30): Implements a seasonal suspension of the state’s 18-cent gas tax from May through September in Maricopa and Pinal Counties. The bill ensures local governments are reimbursed for lost highway revenue through allocations from the Arizona Highway User Revenue Fund, including $27.588 million to counties, $39.93 million to cities and towns, and $5.082 million to larger municipalities. It also includes an emergency clause for immediate implementation and exempts the Department of Transportation from rulemaking for one year.
  • HB 2696 (Rep. Willoughby): Directs the Arizona Commerce Authority to prioritize reducing fuel and gas prices as its primary objective for two years, expiring December 31, 2029. The authority must collaborate with the oil and gas industry to study repealing the cleaner-burning gasoline blend, building new pipelines, establishing a strategic reserve, and exploring in-state refineries, including reviving a proposed facility in Yuma County. Status updates will be provided to legislative committees, with a final report due by October 1, 2026.
  • HB 2955 (Rep. Willoughby): Amends motor fuel standards to end the expensive summer fuel blend in populous counties, subject to EPA waiver under the Clean Air Act. It allows for gasoline compliant with ASTM D4814 and vapor pressure limits, addressing supply shortages and enabling lower-cost alternatives.
  • HCM 2008 (Rep. Willoughby): A concurrent memorial urging Congress and the EPA to eliminate the federal gas tax on Arizona’s cleaner-burning gasoline in Maricopa and Pinal Counties from May to September or grant the EPA administrator emergency waiver authority for costlier blends. This recognizes Arizona’s progress toward National Ambient Air Quality Standards while highlighting the undue tax burden on specialized fuels.

Supporting these efforts are additional bills to promote long-term solutions:

  • HB 2014 (Rep. Fink, R-LD27): Requires the Department of Environmental Quality (ADEQ) and Arizona Department of Agriculture to conduct air emissions modeling and feasibility studies on alternative gasoline blends, including federal reformulated, California phase 3, and conventional options. Reports must be published by September 30, 2027, with $100,000 appropriations each for modeling and studies.
  • HB 2401 (Willoughby and Biasiucci): Mandates biennial reviews by ADEQ of fuel formulations available under federal standards, assessing air quality impacts in regulated areas, and submitting recommendations to the Department of Agriculture, the Governor, the President of the Senate, the Speaker of the House, and the Secretary of State by December 31 of each review year.
  • HB 2428 (Griffin): Authorizes voluntary mobile emissions reduction credit programs, permitting emissions credits for nonroad engines under Clean Air Act guidelines, with permits issued by ADEQ for up to 20 years, supported by chambers of commerce, utilities, and Maricopa County.

“Today we heard from organizations with the time and resources to lobby against affordable prices for Arizona families, but not from the families paying more at the pump,” explained Majority Whip Julie Willoughby. “Working families cannot take time off to come to the Capitol and ask for relief; that is why we are here to help be their voices.”

“Eighteen cents a gallon may sound small to some, but it matters to families trying to make ends meet,” Willoughby added. “I will do everything in my power to deliver relief now while we continue working to fix the fuel blend and supply problems. Families need lower prices, not excuses.”

Bills Ensuring Energy Reliability and Ratepayer Protections

  • HB 2331 (Reps. Marshall, R-LD7 and Heap, R-LD10): Renames and expands energy reliability statutes to require public power entities and service corporations to prioritize domestically produced fuels, minimize foreign reliance, and evaluate resources for affordability, reliability, and cleanliness. Defines “clean energy” to include low-emission sources like nuclear and natural gas, with reliable sources needing at least 50% capacity factor and rapid ramp-up capabilities. The bill emphasizes hydrocarbons and finds domestic sourcing essential for public health and safety.
  • HB 2756 (Reps. Griffin and Blackman, R-LD7): Adds provisions for public power entities and electric corporations to report quarterly on new extra-high load factor customers, including interconnection requests and completions. These customers must be factored into load growth projections. The Arizona Corporation Commission (ACC) is directed to adopt rules on contracts, minimum billing, and pre-execution reviews to protect other ratepayers, excluding member-owned cooperatives. Requires cost-of-service studies within 180 days and an ACC workshop within 90 days to assess impacts on residential bills and potential new customer classes.

These bills now advance for further legislative consideration.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Lawmakers Deny Full Continuation Of Arizona State Land Department After Sunset Review

Lawmakers Deny Full Continuation Of Arizona State Land Department After Sunset Review

By Matthew Holloway |

The Arizona House and Senate Joint Legislative Committee of Reference (JLCOR) declined to grant the Arizona State Land Department a full, unconditional continuation following its sunset review. Citing systemic compliance failures, Republican legislative leaders are advancing legislation to restructure the agency.

According to a statement from House Republican leadership, the committee voted against a standard continuation during the sunset review hearing, raising concerns over deficiencies in oversight, transparency, and adherence to statutory requirements.

The Arizona State Land Department manages more than 9 million acres of state trust land, with proceeds constitutionally required to benefit public schools and other designated beneficiaries.

Lawmakers cited findings from a sunset review and Auditor General reports indicating the department has failed to comply with statutory requirements governing land disposition planning and long-term development strategy. Committee members said those deficiencies warranted legislative action before the agency could receive a full continuation.

According to House GOP leadership, the proposed reforms would require the State Land Department to:

  • Develop and follow five-year land disposition plans as required by statute
  • Increase transparency and public engagement related to land sales and leases
  • Strengthen requirements for competitive bidding and limit single-bid transactions
  • Improve coordination with municipalities and reporting on undeveloped trust land

Alongside the sunset review, lawmakers, led by Rep. Gail Griffin (R-LD19), Chair of the House Natural Resources, Energy & Water Committee and Co-Chair of the JLCOR, introduced several bills to reform the Arizona State Land Department.

HB 2426 would require the department to produce a statutorily mandated five-year disposition plan for trust lands within two years, addressing longstanding planning deficiencies. HB 2427 would compel the commissioner to implement all 51 recommendations from the Auditor General’s July 2025 performance audit, with regular reporting and oversight until completion. Meanwhile, HB 2150 clarifies the department’s continuation under sunset law by setting its termination date and laying groundwork for legislative reconsideration of its structure and authority.

“The Department has had issues for a long time,” Rep. Griffin said. “But they’ve gotten worse under the current administration. Licensing timeframes, five-year disposition plans, and written policies and procedures are essential to upholding the best interests of the trust. These were the top issues. The Commissioner acknowledged these issues during her confirmation hearing and committed to fixing them, but they haven’t been fixed. The captain isn’t steering the ship.”

Supporters of the reform effort said the changes are intended to ensure the department fulfills its constitutional obligation to maximize long-term value for trust beneficiaries, including Arizona’s public education system.

“I see an agency that needs significant reforms,” said Rep. Chris Lopez (R-LD16), Vice Chair of the House Natural Resources, Energy & Water Committee. “I think the lack of licensing timeframes is violating applicants’ due process rights. I think the Department’s decision to hold applications permanently in abeyance, so it can avoid appeals, is unlawful, serving functionally as a denial without a written decision. And I think the criteria the Department utilizes to determine which applications move forward are entirely subjective. At a time when transparency is key, I’m surprised the agency hasn’t already been sued.”

Under Arizona’s sunset review process, state agencies may be continued, modified, or allowed to expire based on legislative findings. The committee’s rejection of a full continuation means the State Land Department’s future structure and authority will now be considered as part of the broader legislative process.

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.

Arizona Land Department Prioritizing Construction Of Solar Panels Over New Homes

Arizona Land Department Prioritizing Construction Of Solar Panels Over New Homes

By Staff Reporter |

The Arizona State Land Department (ASLD) may be prioritizing the construction of solar panels over new home construction.

The agency maintains a unique map for “best” locations to put solar — but they don’t maintain similar maps for ideal locations for other industries, like housing, mining, and grazing for agriculture. 

ASLD’s Land Parcel Viewer has a unique dataset for mapping existing and ideal spots for solar, complete with ratings: 0.0 to 0.9 for the best in green, all the way to 5.0 to 10.0 for the worst in red. 

The map shows where parcels are for mineral and oil and gas, and whether those are unleased or permitted; the locations of rights of way and their perpetuity; and where grazing allotments exist. However, it does not offer any compatibility measure for the available land for each industry.

These industries would require knowledge to include resources, depth, size, and proximity to development for mining; animal unit month (the forage amount required for one animal per month), slope, and grass type and quality for grazing; soil conditions, water supply, and slope for agriculture; and path of development and slope for housing. 

Spencer Kamps, vice president of the Home Builders Association of Central Arizona, said in a statement that the unique treatment of mapping land by ASLD may give the solar industry an unfair competitive edge in arguing for priority land use.

“In the absence of a similar map for other industries, some might say the solar map is serving functionally as a ‘presumptive highest and best use map,’ which gives solar a ‘rebuttable presumption’ of highest and best use in each parcel indicated in green,” said Kamps. 

Last September, Gov. Katie Hobbs issued an executive order directing ASLD to outline proposals to streamline and expedite energy infrastructure projects on state land, as well as accelerate those energy-related projects already underway.

ASLD should have delivered the requested report last October.

The governor’s order also established a task force to come up with a strategic plan to “cut red tape related to the lease, sale, or other use of state lands in a way that advances the streamlined deployment of necessary generation and transmission projects.

That plan is part of three reports due by March 1 of this year. That task force, announced last November, includes ASLD Commissioner Robyn Sahid. 

The two other reports include a policy framework for large energy users — data centers — to balance state interests in expansion with ratepayer costs, and an energy strategy plan to capitalize on technologies such as geothermal and advanced nuclear power.

Hobbs also directed her Office of Resiliency to use State Energy Program funding to fund one full-time staffer for ASLD to complete work on energy infrastructure projects. 

ASLD doesn’t just have criticisms coming from the industries that sustained the state economy long before solar came on the scene. The state legislature believes the agency is in need of serious reform.

The House and Senate Joint Legislative Committee convened earlier this week to discuss ASLD’s scheduled sunset later this year. 

In a significant departure from the standard renewal period of eight years for a state agency, the committee instead opted for a four-year continuation with conditions attached.

Official recommendations from the committee attributed their decision to “deep, longstanding issues” within the agency, describing its operations as an opaque, “unaccountable ‘black box’” per a press release issued on Wednesday. 

Several of the committee recommendations outlined in the press release concerned solar leases and sales. 

The committee advised the agency open additional investigations into intentionally vacant land, commissioner-initiated sales with only one bidder, solar leases and sales with only one bidder, reclamation of lands after solar leases, vacant land located within municipalities, vacant land location within five miles of urban areas, and vacant land located within 10 miles of urban areas. 

Rep. Gail Griffin, committee co-chair, said in that press release the agency’s longstanding issues have worsened under Gov. Hobbs’ administration. 

“Licensing timeframes, five-year disposition plans, and written policies and procedures are essential to upholding the best interests of the trust. These were the top issues,” said Griffin. “The Commissioner acknowledged these issues during her confirmation hearing and committed to fixing them, but they haven’t been fixed. The captain isn’t steering the ship.”

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.