Arizona’s Department of Water Resources (ADWR) recently presented findings on the proposed “Ag-to-Urban” program, a water management strategy aimed at addressing groundwater conservation and sustainable growth. The program is still in the planning phase, with significant details yet to be finalized before implementation. Its development reflects a larger effort led by the Governor’s Water Policy Council to change Arizona’s groundwater policies in response to prolonged drought and population growth.
Formation of the Governor’s Water Policy Council
The Governor’s Water Policy Council was established through Executive Order 4, signed by Governor Katie Hobbs on January 9, 2023. The council is tasked with recommending updates to the 1980 Arizona Groundwater Management Act (GMA) and related water policies. It includes a diverse group of stakeholders appointed by the Governor, representing:
- State agencies such as the Arizona Department of Water Resources and Agriculture.
- Academia, including Arizona State University’s Kyl Center for Water Policy.
- Tribal communities, private water companies, conservation organizations, and the agricultural and development sectors.
The council also collaborates with water utilities like the Salt River Project and Central Arizona Project, ensuring that its decisions are informed by technical expertise and regional needs.
A Voluntary Program for Land Conversion
The Ag-to-Urban program is designed as a voluntary initiative that encourages landowners to transition their high-water-use agricultural lands into urban developments. Participation is based on incentives aimed at reducing overall groundwater demand while providing economic opportunities for farmers.
Key methods for implementing these conversions include:
- Incentive-Based Participation: Landowners are offered financial or resource-based incentives to retire agricultural land and convert it to urban use. These incentives are tied to sustainable water usage goals.
- Credit Allocation: Participating landowners receive water credits based on the amount of water conserved through the conversion. These credits can be applied to urban developments near the retired agricultural land, ensuring minimal disruption to local economies.
- Strict Eligibility Criteria: Only agricultural lands with at least three years of irrigation history in the past five years are eligible for the program, ensuring that conversions target active farmland rather than abandoned areas.
This voluntary framework balances conservation efforts with the need to support farmers and maintain economic stability in agricultural regions like Pinal County.
How Ag-to-Urban Conversion Reduces the Water Footprint
The Ag-to-Urban program proposes converting retiring agricultural lands, which use significantly more water, to urban developments with smaller water demands. The specifics include:
- Agricultural Water Use vs. Urban Water Use:
- Irrigated agriculture in Arizona consumes approximately 5 acre-feet per acre annually, whereas urban developments use about 1 acre-foot per acre annually, primarily for residential and municipal needs.
- Reduction in Consumptive Use:
- Agriculture’s consumptive water use includes evaporation and plant transpiration, while urban areas lose less water through these processes. This shift reduces the overall water footprint in high-use areas.
- Urban Conservation Measures:
- Features like xeriscaping, efficient appliances, and water recycling further decrease urban water use compared to agricultural irrigation.
Challenges in Pinal County
ADWR analysis indicates that agricultural lands in the Phoenix Active Management Area (AMA) use approximately 508,000 acre-feet of water annually across 139,000 acres, while the Pinal AMA consumes 576,000 acre-feet across 245,000 acres. The Pinal AMA faces unique hurdles due to its reliance on groundwater and its role as a major agricultural hub:
- Economic Dependency on Agriculture: The county relies heavily on farming for its economy, making stakeholders wary of policies that might harm agricultural output. Efficient irrigation practices are a priority for preserving agricultural productivity.
- Replenishment Concerns: The Central Arizona Groundwater Replenishment District (CAGRD) raised alarms about additional replenishment obligations amid shrinking renewable water supplies like those from the Colorado River.
Legislative Inaction: Political Divisions and Economic Concerns Stall Key Water Bills
Efforts to address Arizona’s groundwater challenges through legislation have faced significant roadblocks due to political divisions and economic concerns, leaving the Ag-to-Urban program as one of the few actionable programs in the interim. The failure of two key bills earlier this year highlights the difficulty in balancing conservation efforts with the interests of agricultural and rural communities.
Key reasons for the failure of these bills include:
- Resistance to Regulation: Some legislators and stakeholders opposed expanding groundwater management regulations, citing concerns about government overreach and potential impacts on private property rights.
- Economic Impact on Rural Communities: Critics of the bills argued that the proposed restrictions on groundwater use could harm agricultural economies, particularly in areas like the Pinal AMA, where farming is a cornerstone of local livelihoods.
- Lack of Consensus Among Stakeholders: Diverse opinions from urban, rural, agricultural, and environmental groups created challenges in building bipartisan support for the legislation.
The two failed bills were as follows:
- HB 2857 – Rural Groundwater Management Areas (RGMAs):
- Date Introduced: February 8, 2024.
- Summary: This bill proposed creating RGMAs to regulate groundwater use in rural areas outside current Active Management Areas (AMAs). It aimed to establish restrictions on new groundwater pumping and required councils to develop management plans tailored to local aquifers. Groundwater certificates would also track and limit withdrawals in designated areas.
- Outcome: HB 2857 was read a second time on February 12, 2024, but it stalled in committee, with opponents arguing that the bill could disproportionately impact small farmers and lacked sufficient incentives for participation.
- SB 1221 – Basin Management Areas (BMAs):
- Date Introduced: January 15, 2024.
- Summary: SB 1221 sought to establish BMAs in high-demand groundwater basins to impose stricter limits on new groundwater withdrawals and promote conservation through water credit systems. It also included a provision for transitioning BMAs into more regulated Active Management Areas (AMAs) if approved by voters.
- Outcome: After passing the Senate on February 29, 2024, with a vote of 16-12, SB 1221 failed in the House on June 15, 2024, by a narrow vote of 29-28. Opponents cited concerns over the economic burden of additional regulations on rural communities and the lack of guaranteed renewable water sources for replenishment.
These legislative setbacks reflect the complexity of enacting comprehensive groundwater reforms in a state with diverse and often competing water needs. Policymakers face the ongoing challenge of reconciling conservation priorities with economic realities.
Stakeholder Input and Broader Implications
Stakeholders provided a wide range of input during recent council meetings:
- Agricultural Representatives: Emphasized the importance of improving irrigation efficiency instead of widespread farmland conversion.
- Tribal Leaders: Called for transparent, science-driven approaches that address broader water resource challenges, including those tied to the Colorado River basin.
- Rural Representatives: Expressed frustration over long-standing delays in implementing groundwater management reforms.
The Path Forward
The Ag-to-Urban program remains in the planning phase, with its future dependent on further analysis, stakeholder input, and regulatory adjustments. While the program offers significant potential to reduce groundwater use, concerns over its impact on Arizona’s agricultural economy and food supply remain central to the discussion.
For Arizona, the Ag-to-Urban initiative represents a pivotal opportunity to rethink water use in a way that fosters sustainable growth without jeopardizing its agricultural backbone. The path forward will require innovative solutions, transparent policy-making, and a commitment to protecting the state’s resources for future generations.
