‘Ag-to-Urban’ clears Legislature, paves way for new water strategy | Arizona Capitol Times

Key Points:

• Bill would allow the sale of agricultural land for home development

• Proposal intends to increase housing while preserving groundwater

• The measure was sent to the governor for final approval

A bill that’s intended to address two of the state’s biggest issues — groundwater conservation and housing development — passed the Legislature and was sent to Gov. Katie Hobbs for final approval.

The House approved on June 23 Senate Bill 1611,  sponsored by Sen. T.J. Shope, R-Coolidge, that would allow farmers to sell agricultural land and the accompanying water rights to developers in hopes of boosting the state’s housing supply and preserving groundwater, driven by the idea that single family homes use less water than agricultural land.

The measure, dubbed “Ag-to-Urban,” was joined with a mirror bill in the House introduced by Rep. Gail Griffin, R-Hereford.

When the legislation passed the Senate on June 19, Shope hailed it as the most consequential groundwater measure since the Groundwater Management Act of 1980.

“The Ag-to-Urban program is a win-win for farmers who are ready to retire but still want to capitalize on their land and for Arizona families looking to obtain their American dream through homeownership,” Shope said after the bill passed the Senate.

The bill would affect areas of Maricopa and Pinal counties, specifically Queen Creek and Buckeye, where new home construction has been restricted due to groundwater shortages. Pima County could also benefit if state water regulators were to place a moratorium on new water certificates, according to Capitol Media Services.

“This will alleviate some of that pressure that was building up in the West Valley and the Southeast Valley … to the extent that those units could not be produced,” said Nick Ponder, senior vice president for governmental affairs at public affairs firm HighGround, Inc. “Now they can because they’ll be able to get their certificates of assured water supply.”

According to numbers previously shared by Republican Senate staff, there are 425,232 acres of irrigated farmland in the Phoenix, Pinal and Pima Active Management Areas that could use the Ag-to-Urban program. If half of the farmland is converted for development, more than a million homes could be built, as new developments typically average five homes per acre.

The Legislature passed a similar version of the bill last year, but Hobbs vetoed it. In her veto letter, Hobbs stated that she supported the concept of the bill, but the data from the state’s initial Active Management Areas didn’t support the universal adoption of the program.

Shope reintroduced the bill this year, and it initially received Republican support during a Senate Natural Resources Committee meeting in February. 

He spent the following months working with stakeholders and the Governor’s Office to negotiate the bill before it advanced to the Senate floor, where it received bipartisan approval.

Before the chamber passed the bill, Senate Minority Leader Priya Sundareshan, D-Tucson, said, “This represents an important step forward for being able to show that we can continue to put forward rules that can assist with further development in our urban areas while also maintaining our water security.”.

The bill maintained its bipartisan support when it reached the House, although a number of Democrats and Republicans still opposed it.

Democrats who spoke in opposition expressed concerns about how the legislation would impact groundwater replenishment needs in those areas, as well as the Colorado River water supply.

“The added burden this bill will place on this system concerns me deeply, and should concern all of us,” said Rep. Chris Mathis, D-Tucson.

Rep. Sarah Liguori, D-Phoenix, also questioned how the legislation could impact the state’s Colorado River supply while lamenting the Legislature’s inability to pass any significant groundwater management bills this year.

“So while I wholeheartedly hope that this policy turns out to be the great success that will bring housing and water conservation to our state, I have reservations and can’t wholeheartedly support it,” Liguori said.

Rep. Stacey Travers, D-Phoenix, shared her colleagues’ concerns regarding replenishment needs, but said the benefits could be “huge” if the legislation works as expected.

“We can’t let the perfect get in the way of the good,” Travers said. “Should there be an opportunity that allows us to come once again to the table to address those issues that we have some concerns with, then I am completely without a doubt assured that we’re going to do that.”