by Jonathan Eberle | Mar 17, 2025 | News
By Jonathan Eberle |
Arizona’s ongoing housing crisis is taking center stage as state lawmakers, led by House Majority Leader Michael Carbone, voice strong opposition to Governor Katie Hobbs’ water policies, accusing them of exacerbating the state’s housing shortage. In a statement released last week, Carbone applauded House Speaker Steve Montenegro for authorizing a lawsuit against the Arizona Department of Water Resources (ADWR) over its adoption of a controversial 33.3% groundwater tax. Carbone claims that this policy is driving up the cost of housing and ultimately harming Arizonans who are already grappling with soaring housing prices.
At the center of the dispute is a policy known as the housing moratorium, which has been criticized for preventing the development of large swathes of land that could otherwise be used to build affordable homes. According to Carbone and other critics, the moratorium was adopted illegally, and it has led to a situation where hundreds of thousands of acres of land remain undeveloped. This, in turn, limits the amount of available space for new homes, driving demand to already crowded urban areas and increasing housing costs.
Carbone explained that “water policy is land use policy, and land use policy is housing policy,” suggesting that the restrictions on land development, while related to water conservation, are having broader economic consequences.
As a result of the moratorium, many Arizonans are facing higher costs when it comes to purchasing new homes. The housing moratorium is expected to increase home prices by $19,600 to $23,700 per house. Additionally, the proposed 33.3% groundwater tax has been predicted to add an extra $5,100 to $7,900 to the cost of new homes. These measures have raised concerns about the affordability of housing, especially in a state already struggling with rapid population growth and a housing shortage.
The Arizona House of Representatives, alongside the Home Builders Association of Central Arizona (HBACA) and members of the Arizona Senate, have joined forces in a legal battle against the ADWR’s actions. The lawsuit seeks to halt the 33.3% groundwater tax, which lawmakers argue is not only illegal but also harmful to Arizona’s housing market. Carbone criticized the governor’s policies, stating that they are not about ensuring water security but rather a means of “government control.”
“The Governor wants to dictate where and how Arizona families live, limiting all future growth to cities and driving up home prices,” Carbone said. “Affordable housing is central to the American Dream, and we are committed to fighting these illegal policies that will only make the housing crisis worse.”
The legal battle focuses on the ADWR’s authority to implement such a tax and whether it complies with state law. Proponents of the lawsuit argue that homebuilders have long demonstrated a commitment to responsible water management, having replenished 100% of the groundwater they use annually since 1995. Therefore, they contend, penalizing the homebuilding industry with additional taxes is unfair and counterproductive.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Mar 4, 2025 | News
By Daniel Stefanski |
How much water does Arizona currently have? That’s the question on the mind of Arizona lawmakers this legislative session.
Last week, Arizona House Republicans revealed that a small group of legislators had previously sent a letter to the Arizona Department of Water Resources (ADWR), asking the agency “to provide basic information on the following details related to Arizona’s rural groundwater basins:
- The average depth-to-water level in each basin
- The maximum depth of each basin
- The average depth of each basin
- The total volume of groundwater in each basin
- The number of index wells in each basin.”
The letter, which was authored by State Representative Gail Griffin, Senator Tim Dunn, and former Senator Sine Kerr, was transmitted to ADWR on December 23, 2024.
Speaking about the reasoning behind the letter to ADWR, Representative Griffin said, “The intent was to give Arizonans a better understanding of the groundwater supply beneath their feet. For the last two years however, none of the Department’s assessments have included this basic information – such as ‘how much water do we have’ and ‘how long will that water last.’ This information is a fundamental component of the ‘supply’ side of the ‘supply and demand’ equation and needs to be included in each of the Department’s five-year ‘Supply and Demand’ Assessments.”
According to the press release issued by House Republicans, ADWR “provided a preliminary response to the December 23 letter, stating the number of active index wells in each basin and the maximum depth of each basin at its deepest point.” The response shared that the “Wilcox and Gila Bend groundwater basins are 4,800 feet deep at their deepest point.” However, as the release highlights, “The Department has yet to provide the total amount of groundwater that is available to each of these depths.”
Representative Griffin is not at all satisfied with ADWR’s incomplete answers. She said, “Just because you drill a well does not guarantee that there will be one hundred years’ worth of water. Republicans and Democrats both agree we need to know how much water is available in order to make informed decisions on critical groundwater policy. It’s also essential to our ability to plan for the future. How are we supposed to plan if we don’t know how much water we have?”
With these questions in mind, Griffin introduced a bill (HB 2271) this legislative session “to update the 5-year Supply and Demand Assessment statute and require the Department to include this information in its reports, moving forward.” If the proposal was signed into law, it would “provide critical answers to these basic questions, such as, ‘How much water do we have?’ and ‘How many years will that water last at the current rate of decline?’” Answering these questions would allow legislators to “plan to add new tools that work for rural Arizona, such as groundwater recharge, replenishment, and reuse.”
Focusing on her bill, Griffin said, “we understand that additional steps may be necessary to gather this information, but we also believe that taking these steps is a necessity to do our jobs effectively. I think the Department wants to make decisions based on science and that, if we give it the time and opportunity to gather this information, it will result in a better and more constructive dialogue for everyone.”
HB 2271 was approved by the Arizona House of Representatives last week.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jan 31, 2025 | News
By Daniel Stefanski |
A southern Arizona lawmaker has introduced multiple bills to help restore transparency and accountability to a key state agency.
Earlier this week, State Representative Lupe Diaz announced that he had filed two proposals to “address the lack of transparency and regulatory overreach within the Arizona Department of Water Resources (ADWR).” Those bills were HB 2692 and HB 2550.
According to the press release issued by Diaz, HB 2692 would “slash ADWR’s budget [and] explicitly direct the agency to prioritize its core responsibilities, such as updating its recent groundwater models with the latest information, quantifying the total volume of groundwater available in rural basins (measured in years), and defending Arizona’s water rights on the Colorado River.” HB 2550 would “accelerate ADWR’s sunset date to July 1, 2026…to prompt a thorough review of the department’s regulatory overreach and ensure accountability to the people.”
In a statement accompanying the announcement of his introduced bills, Representative Diaz said, “As Arizonans, we depend on our state agencies to follow the law, uphold their statutory duties, and stay within their lane – especially when it comes to managing our most critical resource: water. Unfortunately, ADWR, under the direction and control of Governor Hobbs, has been sidetracked by extrastatutory activities that lack legislative authorization. The agency has been diverting critical time and resources away from its core functions to frivolous policymaking councils and focus groups, driving up housing costs for thousands of Arizonans. My legislation sends a strong message that the agency must be held accountable to the people it serves. Arizona’s water policies should be guided by the law, not radical political agendas.”
Representative Diaz added, “If there is a ‘Deep State’ in Arizona, it is Governor Hobbs’ Arizona Department of Water Resources. By the stroke of a pen, unelected bureaucrats in Central Arizona are centralizing control over the state’s water resources by unilaterally adopting rules without proper statutory authority, picking winners and losers, and deciding which uses of land and water are worthy of economic development. Their actions are driving up the cost and limiting the availability of food and housing for thousands of rural and urban residents across the state. The Hobbs’ administration claims it must act unilaterally because it cannot work with the Legislature, but what it fails to understand is that the Legislature represents the will of the people.”
The two bills will be heard in committees and, if given a favorable recommendation, considered by the full House chamber this session. The proposals will likely be dead on arrival, however, in the Governor’s Office if passed by both bodies of the Arizona Legislature due to the political chasm between Hobbs and Republicans on water issues.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jan 27, 2025 | News
By Daniel Stefanski |
Republicans in the Arizona Legislature are wasting no time to improve the state’s groundwater situation in this 57th Regular Session.
On Tuesday, the Arizona House of Representatives Committee on Natural Resources, Energy & Water gave a green light to House Concurrent Memorial 2003, which “states the Legislature’s interest in having the Arizona Department of Water Resources and the Arizona State Land Department focus on increasing groundwater recharge through groundwater recharge infrastructure projects,” according to the overview provided by the State House of Representatives.
In a statement, State Representative Gail Griffin, the measure’s sponsor, said, “County supervisors, flood control districts, and natural resource conservation districts have the authority to construct stormwater detention basins and other constructive infrastructure that increase groundwater recharge. Local and county officials should push the Governor’s Department of Water Resources and State Land Department to develop these projects within their communities to increase local water supplies.”
Griffin added, “Over 95 percent of rainfall in the state evaporates before it can naturally recharge aquifers. Increasing the amount of natural recharge by only a few percentage points would increase the amount of local water supplies substantially. The solution to unleashing economic prosperity in rural Arizona through increased water supplies is investing in additional groundwater-stormwater recharge. Local communities have tools to address groundwater issues. We need to work together to utilize those tools to secure our long-term water supplies.”
The press release from the Arizona House Republicans Caucus shared that “projects like Horseshoe Draw Recharge Project in Cochise County and Hualapai Flood Control Project in Mohave County are examples of projects that increase local supplies without expanding the size of government or imposing top-down government regulations on rural industries.” There are “331 sites on state trust land that the agencies have identified as suitable for maximizing groundwater recharge.”
According to the Arizona Legislature’s Request to Speak system, representatives from the Arizona Farm and Ranch Group, Audubon Arizona / National Audubon Society, and Arizona Cotton Growers Association, signed in to support the bill. Representatives from the Sierra Club – Grand Canyon Chapter and CHISPA Arizona – A Program of League of Conservation Voters, signed in to oppose the legislation.
Republicans and Democrats will continue to do battle over water issues in this divided state government, as they have for the previous two years. Governor Katie Hobbs has been largely unwilling to adopt Republican policies on these matters, vetoing bills over the past two sessions that would have strengthened Arizona’s position on water conservation, management, and proliferation for current and future generations. The two sides still appear to be far apart on water issues as another legislative session heads into its second month.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Dec 15, 2024 | News
By Matthew Holloway |
The State of Arizona has engaged in legal battle against a Saudi Arabian firm: Fondomonte Arizona, LLC., on allegations that the agribusiness has violated public nuisance law by aggressively pumping groundwater from the Ranegras Plain Basin of La Paz County. The move could signal a split between Democrats Attorney General Kris Mayes and Governor Katie Hobbs whose chief campaign advisor is partnered with a lobbyist for the Saudi company.
Announcing the lawsuit on Wednesday, Mayes said the company, which enjoys a strong lobbying connection to Democrat Gov. Katie Hobbs, does not have “the right to endanger an entire community’s health and safety for its own gain,” according to KJZZ. She added, “The law is clear on that point.”
Mayes said the consequences are immediate and visible. She cited that the firm has operated in the Ranegras basin since 2014 and has several wells that pump up to 4,000 gallons of water per minute. She also shared that in 2023, it used approximately 31,196-acre feet of water.
“Fondomonte came to Arizona to extract water at an unreasonable and excessive rate because doing so was banned in its home country – another arid desert with limited water,” the lawsuit claims. “Fondomonte is taking advantage of Arizona’s failure to protect its precious groundwater resource.”
The Saudi firm called Mayes’ allegations “totally unfounded,” according to spokesman Barrett Marson.
“We believe the attorney general is setting a dangerous precedent attempting to penalize farming and the wider agricultural industry within the state of Arizona. The company complies with all state and local regulations.”
The amount of water drawn by the alfalfa farms is reportedly enough to serve approximately 93,000 single family homes. Neighboring wells serving homes less than a mile away went dry about five years ago. Mayes noted that the well for the Friendship Baptist Church a little under two miles away ran dry in 2017.
“The land is literally sinking in La Paz County with as much as 9.8 inches of subsidence documented in the immediate vicinity of Fondomonte’s farms,” she told reporters adding that under the nuisance law, action can be taken. However the AG pointed to what she described as the Arizona legislature’s failure to regulate the water use of corporate farms outside active management areas. “They have been completely AWOL when it comes to addressing rural Arizona’s water needs and these situations where people are being harmed,” she said, according to the outlet.
According to the Associated Press, Mayes said, “While laws regulating groundwater pumping could have prevented this situation, the legislature’s inaction has allowed the crisis to grow. When the legislature fails to protect our most basic resources, the attorney general must step in.”
Republican La Paz County Supervisor Holly Irwin praised the move, while castigating Arizona lawmakers for failing to weigh in. “That is why we are seeing foreign companies come over to these areas, purchase land and pump water out so that they can supplement their alfalfa and send it back home,” said Holly.
“Attorney General Kris Mayes is the first one who has stepped up and done anything about it. I know my constituents will be thrilled that somebody’s actually paying attention to the real problems here, which are wells that are going dry, the land subsidence that we’ve seen, and the concern that we have for the future of our basin.”
In March, Fondomonte was reportedly stripped of the ability to use Arizona’s water resources when the State Land Department inspected the company’s land leases in western Arizona’s Butler Valley and determined they were no longer irrigating in the area. The company allegedly pumped over 5.3 billion gallons of groundwater in Butler Valley throughout 2022, stopping after Gov. Hobbs canceled their leases on its thousands of acres of land in October according to The Center Square.
Mayes said in a statement at the time, “The Arizona Attorney General’s Office worked closely with Governor Hobbs’ administration on these inspections, which confirmed what we have suspected — Fondomonte has been in violation of its leases for many years.”
However, she was critical of the delayed reaction. “And while today’s announcement is commendable, it should have been taken by state government much earlier. The failure to act sooner underscores the need for greater oversight and accountability in the management of our state’s most vital resource.”
As reported by AZ Free News in July, Chad Guzmán, who co-manages the lobbying firm Fillmore Strategy with Hobbs’ senior campaign advisor, Joe Wolf, is now working as a lobbyist for Fondomonte. The move came after Fondomente enlisted Guzmán’s company, Signal Peak Consulting, according to a Fondomonte spokesman. Wolf referred to the development as a “nothingburger” at the time, telling the Arizona Republic the he is no longer paid by the Hobbs campaign and has no business dealings with Fondomonte.
Speculation is rife that Mayes could seek to challenge Hobbs in the 2026 Democrat Primary for the Governor’s office, though the Arizona Capitol Times reported in November that Mayes said she is looking at running for a second term as AG in 2026. Stacey Barchenger, state politics reporter at the Arizona Republic, confirmed to KJZZ’s Laren Gilger a day later that she had reached out to Mayes who indicated she intends to seek re-election as Attorney General. Despite these assurances, the outlet noted that the groundwater controversy has proven to be a high-profile dispute between the two Democrats.
With Hobbs’ favorability ratings critically low, the divide on groundwater, an issue that often garners bipartisan support for regulation, could prove to be a wedge issue in 2026 that places Mayes in a position to challenge Hobbs on equal footing, despite the Governor’s hefty $3 million war chest.
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.
