Legal Alert: Arizona Enacts Ag-to-Urban Program

Arizona Enacts Ag-to-Urban Program: Governor Hobbs Signs Bipartisan Legislation to Save Water by Facilitating Development on Farmland

By the Gammage & Burnham Water Group: Alexandra M. Arboleda, Grady Gammage, Jr., Michael J. Pearce, Kyle R. Stenseth, and Sean F. Krieg

Today Governor Hobbs signed Senate Bill 1611, creating a new “ag-to-urban” Groundwater Conservation Program to save water by facilitating municipal development on farmland consistent with the Assured Water Supply program. The legislation’s 26-4 supermajority vote in the Arizona Senate and 35-20 majority vote in the Arizona House reflect the program’s broad and bipartisan support.

Governor Hobbs praised the bipartisan legislation, noting its massive water savings and how it shows Arizona is “leading the nation in innovative water management.” Bill sponsor and State Senator T.J. Shope said, “[t]he ag-to-urban plan is the most consequential piece of groundwater conservation legislation since the 1980 Groundwater Management Act.” Former Governor Bruce Babbitt explained, “[t]his legislation is good for our aquifers, good for our residents, and good for our farmers. It proves once again that Arizonans, by working together, can assure our water future. I commend all who worked to make this bipartisan legislation possible.”

Last week Gammage & Burnham published a legal alert on the ag-to-urban Groundwater Conservation Program, discussing the significance and key terms of the program.

On behalf of firm clients Cowley Companies Inc. and Harvard Investments, Inc., Gammage & Burnham’s Water Group chair Alexandra Arboleda advocated for ag-to-urban across two legislative sessions. Alexandra worked with state officials, bipartisan legislators, the Governor’s office, and other stakeholders to create a workable program that will save water while alleviating Arizona’s housing shortage. These data-driven and bipartisan negotiations align with Arizona’s long history of proactively planning for its long-term water security. Enacting this ag-to-urban legislation is a win that is commensurate with Arizona’s history of responsible water management.

With the Governor’s signature, the ag-to-urban legislation will take effect in late September, 90 days after adjournment of the legislature. Over the coming months, the Arizona Department of Water Resources and water providers will adopt procedures for the ag-to-urban program. In this time, landowners and developers can begin preparing eligible lands for the ag-to-urban program.

Gammage & Burnham is proud to have contributed to the ag-to-urban legislation and is prepared to advise clients on how to utilize it.