by Matthew Holloway | May 6, 2025 | News
By Matthew Holloway |
The Goldwater Institute recently sent an email that its lawsuit announced in January against the Hobbs administration is moving forward.
In the email, Goldwater highlighted the potential impact of the Arizona Department of Water Resources (ADWR) controversial new rule imposing the requirement of a 100-year groundwater supply across wide swaths of the state.
Goldwater’s Vice President for Litigation Jon Riches wrote, “This government overreach sets a troubling precedent for other bureaucratic agencies to bypass the authority of the legislature. Due to ADWR disregarding the legislative process and the risks posed by the water rule, the Goldwater Institute is suing Governor Hobbs’ administration.”
Goldwater is challenging the Arizona Department of Water Resources’ (ADWR) controversial new rule imposing the requirement of a 100-year groundwater supply across wide swaths of the state. The troubling regulation was detailed earlier this year in an op-ed from Goldwater’s Vice President for Litigation Jon Riches and in a report by AZ Free News.
Riches explained that Hobbs’ appointed Director of ADWR, Tom Buschatzke, is “working outside Arizona law,” by implementing the new “unmet demand” rule, unilaterally without legislative approval or following the statutory rule-making process.
He wrote, “Despite Buschatzke’s apparent desire to act as a mini czar with unilateral power to determine this state’s water policy, his authority — like all government power — is constrained by Arizona law. And that law is crystal clear: When regulatory agencies like ADWR attempt to impose sweeping policies — such as halting all new home construction across large parts of the Valley — they must do so through formal rulemaking, allowing for public input. Instead, Buschatzke sidestepped this requirement and imposed his homebuilding moratorium with the stroke of a pen. The Goldwater Institute, where I work, is now suing the agency to halt the illegal rule.”
In the email, Riches warned, “If someone wanted to build a house, they would be blocked from doing so if another part of the designated region, miles and miles away, did not meet the criteria of this water rule.”
The email also outlined three direct impacts that Arizona taxpayers could expect to feel: “Increased housing costs, prevention of homebuilding, [and] a dangerous precedent for government overreach.”
Riches added, “This is one of the most critical lawsuits by the Goldwater Institute in our history. We have been successful in challenging unconstitutional laws in the past, and we are ready to fight this one.”
The complaint in Home Builders Association of Central Arizona v. Arizona Department of Water Resources can be found online here. The case is currently in the Maricopa County Superior Court pending a response from the ADWR.
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.
by Matthew Holloway | Mar 26, 2025 | News
By Matthew Holloway |
On Monday, Common Sense Institute (CSI) Arizona released a new report on Arizona’s water resources. In the report, CSI made a determination that contrasts wildly with commonly preconceived notions that a supply scarcity issue is Arizona’s largest problem. Instead, the group called out gaps in “infrastructure and ingenuity.”
In a press release, CSI advised, “If Arizona opts to address its water future by ending growth and limiting development, rather than investing in infrastructure and addressing water policies, the Grand Canyon state faces the potential of billions in lost economic activity and thousands of new jobs.“
Glenn Farley, CSI Arizona’s Director of Policy & Research explained, “In general, Arizona’s water challenges are not just about scarcity; they are about infrastructure and ingenuity. For centuries, Arizona’s dry central valley has thrived through engineering solutions that move water from areas of plenty to areas of need. Leaders today have options that could lead to very different outcomes for the future economy of our state. Our data finds that investing in innovative infrastructure and giving property owners the legal and physical flexibility they need to access the water our economy demands, will result in increased economic growth for the state of Arizona.”
In particular, the report took aim at the home-building moratorium in the Phoenix Active Management Area (AMA) imposed by Governor Katie Hobbs’ administration. According to CSI, should the moratorium be maintained for the next decade, Arizona could see a catastrophic $2 billion in lost GDP. However, the report adds, “Augmenting water supply by 300,000 acre-feet could create $4.7 billion in net state product.”
The report details that the expansion of “legal and physical infrastructure to move and trade water can help increase water availability without forced cuts or forced reallocation.”
CSI Arizona highlighted a 2018 controversial water deal between an investment firm representing the owners of farmland in Cibola, Arizona, near the Colorado River, and the town of Queen Creek that enabled Queen Creek to pay a private landowner $24 million for an annual allotment of 2,033 acre-feet of water. In other words: “the voluntary retirement of legacy agricultural farmland” through a private sale allowed a city without assured water rights through the Phoenix AMA to obtain the water needed to grow.
The report found: “Political and legal structures that acknowledge and facilitate, rather than impede, these kinds of transactions can help manage Arizona’s ongoing transition and continued growth. Furthermore, the ensuing injection of money and capital into the rural sources can be used for local economic development, creating a win-win.”
The think tank also called upon Arizona lawmakers to seek out alternative external sources of water citing the potential for desalination operations in Mexico at the Sea of Cortez, just 250 miles from Phoenix.
Citing the successes of Israel and Singapore to develop such systems, CSI noted, “While existing studies suggest the cost of desalination is high, approximately $2,000/acre-foot, costs may decline as the technology matures. Additionally, consumers may be more willing to pay if existing scarcity issues are not resolved.” Indeed, Israel currently relies upon desalination from the Mediterranean and Red Seas for over half of its fresh water supply.
According to a USA Today story from 2021, officials from Arizona, Nevada, California and Mexico have been exploring collaboration on such a project in exchange for trading some of the drinking water produced for a portion of Mexico’s allocation of the Colorado River.
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.
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 Matthew Holloway | Jan 25, 2025 | News
By Matthew Holloway |
Governor Katie Hobbs is now facing a serious legal challenge from the Goldwater Institute, acting on behalf of the Home Builders Association of Central Arizona, to put a stop to what Goldwater described as “one of the most significant bureaucratic overreaches in Arizona’s history.”
On Wednesday, Goldwater announced the lawsuit against Arizona’s Democrat Governor stating that Hobbs is “taking illegal actions” that would worsen the state’s ongoing housing crisis by imposing a certification requirement in parts of Maricopa County that, in addition to showing a 100-year groundwater supply, must also meet the dubious standard of “unmet demand.”
Writing for Goldwater, Stacy Skankey explained, “Although the phrase ‘unmet demand’ does not exist in Arizona law, this new rule now requires homebuilders to show a 100-year groundwater supply across the entire water management area (a specially designated area with a reliance on groundwater) rather than at the site of the proposed development. In other words, if a groundwater shortage is projected anywhere within a management area, the Department of Water Resources now claims that there is insufficient groundwater elsewhere in the Valley.”
As reported by AZ Free News in December, Goldwater penned a letter to the Arizona Department of Water Resources (ADWR) urging the agency under Hobbs to reconsider its “AMA Wide Unmet Demand Rule,” noting that the new rule was in violation of the law having been imposed without legislative approval or via the required rulemaking process.
According to ADWR, “Unmet demand occurs when the model cannot simulate pumping of all demands included, thereby creating a pumping shortfall or deficit. This pumping shortfall or deficit occurs when there is insufficient saturated aquifer to satisfy the pumping demand (i.e., the depth-to-water level reaches bedrock) or when the depth to water exceeds 1,100 feet after 100 years of simulated pumping.”
Essentially, unmet demand occurs when the state’s modeling is insufficient to predict demand. In other words, the basis for shutting down Arizona housing development is that the Hobbs administration’s simulation doesn’t work.
As noted in an op-ed for the AZ Capitol Times by CEO of the Home Builders Association of Central Arizona Jackson Moll and Goldwater Institute Vice President for Litigation Jon Riches, the Phoenix Active Management Area (AMA) Groundwater Model being used by the Hobbs administration, coupled with the ‘unmet demand’ standard, moves the goalposts on developers who have mitigated impact on the state’s water needs for nearly 30 years by replenishing pumped groundwater back into the water table.
Riches said in a statement, “Decisions on vital statewide concerns like the availability of affordable housing and the responsible stewardship of our natural resources should be made through a transparent, democratic process—not imposed by executive fiat.”
Moll added, “Gov. Hobbs’ deeply inaccurate and flawed claim that Arizona is running out of groundwater is having devastating effects on housing affordability in the state, which already ranks among the worst in the country.”
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.
