House Natural Resources, Energy & Water
March 25, 2025 • 4h 1m
Arizona
Gail Griffin
State Representative. Committee Chairman
69 segments
Nick Kupper
State Representative, District 25
28 segments
Sarah Liguori
State Representative, District 5
28 segments
Patty Contreras
State Representative, District 12
13 segments
Matt Rippentrop
Arizona Department of Environmental Quality Representative
15 segments
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
11 segments
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
14 segments
Senator Frank Carroll
Senator, District 28
23 segments
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
23 segments
Court Rich
Head, Energy & Regulatory Department, Rose Law Group
17 segments
Jeff Duarte
Tree Farmer (in opposition testimony)
9 segments
Stephanie Knight-Dubien
Executive Director, Agribusiness & Water Council of Arizona
3 segments
Dennis Osuch
Finance Director, Town of Welton
18 segments
Philip Beshaw
Arizona Farm Bureau Representative
21 segments
Pamela Carter
State Representative, District 4
27 segments
Chris Lopez
State Representative, District 16
6 segments
Secretary
5 segments
Ralph Heap
State Representative, 10
2 segments
Teresa Martinez
State Representative, District 16
9 segments
Mark Finchem
41 segments
Mike Williams
Petroleum Marketing Association of Arizona
4 segments
Steve Miller
5 segments
Joe Singleton
Executive Directory of the Pinal County Water Accomodation Authority
4 segments
Craig McFarlane
Pinala Partnership Rep
2 segments
Fareed Bailey
Salt River Project Rep
14 segments
Michelle Van Quatham
Law Office of Michelle Van Quatham
16 segments
Tim Dunn
State Senator, District 25
39 segments
Chris Mathis
State Representative, District 25
15 segments
Steve Kissel
Resident and Domestic Well Owner in Wilcox Basin
18 segments
Rona McMillan
Resident and Co-owner of a Vineyard and Winery in the Wilcox Basin
8 segments
Nick Ponder
Government Affairs
12 segments
Lisa Glenn
Resident Wilcox Basin
5 segments
Cheryl Knott
Resident Wilcox Basin
5 segments
Sandy Barr
Directory for Sierra Club's Green Canyon Chapter
8 segments
Kathy Tackett Hicks
Resident Kingman Area
6 segments
Lou Minuta
Resident Wilcox Basin
15 segments
Mae Peshlakai
State Representative, District 6
6 segments
Ed Curry
Arizona Pecan Growers Association Rep
16 segments
Tom
4 segments
Michelle C. Benally
Resident Coconino County and Member of Navajo Nation
3 segments
Karen Welker
Resident and Domestic Well Owner in Wilcox Basin
4 segments
Michael Monte
Arizona Municipal Water Users Association Rep
10 segments
Spencer Camps
Home Builders Association of Central Arizona Rep
5 segments
Gail Griffin
State Representative. Committee Chairman
Good afternoon, everybody. Welcome to the Natural Resource Energy and Water Committee. We're called to order. Madam Secretary, would you please note the roll?
And I think Cooper is here. He'll be here momentarily. For everybody's notice, we are holding 1444. So knock that one off the agenda. And the first three bills we will hear is 1128, 1538, and 1730. So first bill is 1128.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1128 outlines factors that the director of the Arizona Department of Environmental Quality must consider when revising the state implementation plan. This would prohibit the director from considering emissions that originate from outside the United States or the effects of solar radiation and the associated heat increase in the SIP. Senate Bill 1128 requires the director to consider the best interest of the taxpayer, all casual factors that affect air quality when considering any revisions to the SIP or rules for the adoption of an SIP.
Senate Bill 1128 would allow the Attorney General to file a suit on behalf of the state against the EPA if the agency does not approve a demonstration that establishes that this area of the state would achieve and maintain the national ambient air quality standards for emissions originating from outside of the United States. Madam Chair, there is an amendment that I can't explain. Yes. The amendment dated 3-24-25 at 10-31 a.m. Representative Gers' name changes zone to ozone in Section 3 of Senate Bill 1128. And with that, I'm available for any questions.
Gail Griffin
State Representative. Committee Chairman
Any questions? Seeing none, thank you. Mr. Vice Chair, who do we have signed in that would like to speak? Matt Rippentrop. Madam Chair, members of the committee, Matt Rippentrop with the Arizona Department of Environmental Equality, here to speak on Senate Bill 128.
Matt Rippentrop
Arizona Department of Environmental Quality Representative
ADQ is neutral on the bill, but notes concerns with provisions on the adoption of revisions to the State Implementation Plan. The bill includes two provisions that ADQ shall consider in the development of revisions to the State Implementation Plan or in any related rules. The first is the best interest of the taxpayer, while the second is all causal factors affecting air quality, including transportation emissions originating from another state and effects of solar radiation and related heat increases.
Considering the best interest of the taxpayer, while Arizona is generally allowed to consider costs in developing control measures to determine the best mix of controls to achieve the goals of the Clean Air Act, it is unclear what variables the bill intends to be considered when determining the best interest of the taxpayer. This may be interpreted as being broader than simply the cost the taxpayer may bear alone, for example, considerations of the health and welfare benefits of reductions to air pollution.
Concerning causal factors affecting air quality, ADEQ currently considers all interstate impacts when developing SIPs as appropriate.
When interstate transport is a factor, we evaluate the relevant impacts of all possible sources and not just transportation. ADEQ would need clarity on the intended scope of the term solar radiation and related heat increases. While ADEQ does take meteorological conditions into account when developing SIPs, it is important to note that federal national ambient air quality standards are health-based and are not necessarily derived just in the manner that takes local or regional climate into account.
Ultimately, we believe it is important to ensure that any considerations to be taken into account in developing SIPs be directly related to and aimed at satisfying the requirements of the Clean Air Act. Further, as amended, the bill also adds that ADEQ, when considering SIP provisions, is prohibited from considering any emissions that emanate from outside the borders of the U.S. This prohibition would likely prevent ADEQ from developing demonstrations on the Clean Air Act, specifically 179B.
A 179D demonstration is used to show that non-attainment area would be able to attain and maintain, or would have attained, the relevant national ambient air quality standards, but for emissions emanating from outside the U.S. An approval of a 179D demonstration provides relief from the attainment demonstrations, requirements, and the requirements that EPA determines whether the area has attainment.
by the relevant attainment date. 179B demonstrations have proven to be a useful tool in the past. For example, in 2012, a 179B demonstration for Nogales, PM10 non-attainment planning area, was approved. Ultimately, while ADQ appreciates the sponsor's concerns about the impact of out-of-state admissions, we want to ensure that the state has all the necessary and appropriate tools in developing SIP and SIP provisions. With that, I'll stand for questions. Questions?
Sarah Liguori
State Representative, District 5
Madam Chair? Yes. And I'm so sorry, I just lost your name. Matt Ribbentrop. Matt Ribbentrop. And you represent the? Arizona Department of Environmental Quality. Okay. So my question is, is the department concerned that this could jeopardize your department's primacy over any air quality programs?
Matt Rippentrop
Arizona Department of Environmental Quality Representative
Madam Chair, Representative Liguori, yes, that's always a concern with any legislation that is impacting any of our federal programs, including SIP provisions and approvals under the Clean Air Act. So as written with the prohibition on the consideration of emissions emitting from outside the borders of the United States, we believe that there could be primacy issues implicated there.
Sarah Liguori
State Representative, District 5
And Madam Chair? Yes. A follow-up. And what would happen if our state lost the primacy over those programs?
Matt Rippentrop
Arizona Department of Environmental Quality Representative
Madam Chair, Representative Liguori, if we were to lose primacy under any of our federal programs, including the Clean Air Act, there would likely be the loss of federal dollars available to us. Permitting, instead of handled through the state, would be handled through EPA, which could cause delays for those state businesses and state folks who have to seek permitting. So, yeah, those are the potential consequences that we could face by losing primacy. Delays in funding. Okay, thank you.
Patty Contreras
State Representative, District 12
Any other questions? Madam Chair? Yes. Thank you. And I'll call you Matt, because I didn't get your name. So is there a way, or have we been able to figure out the emissions that come from other states and other countries? Is there, takes the air from this side and compare it to the air over here? Or how does that work?
Matt Rippentrop
Arizona Department of Environmental Quality Representative
Madam Chair, Representative Contreras, that has been, I believe, a challenge in the past and a point of ongoing study and work for the agency. For example, AEQ is currently convening a study with NASA, EPA, U of A, and ASU to better understand the factors, both in and out of state, that are contributing to continued exceedances of ozone and other national inequality standards. But that is a point of ongoing work.
I'd be happy to get back with our program folks and follow up with more specifics on some of that information and some of the other work that the agency is currently doing.
Gail Griffin
State Representative. Committee Chairman
We are aware that what's coming in from California, what's coming in from Mexico when they burn tires is a serious problem for Arizona. We get blamed for it. Arizona is a desert area. And the caboose that we see and all the dust storms and everything that we have. And I think we've been talking about this issue for years and how to resolve it.
The new EPA administrator was in town last week and met with many of us and tells us that he's going to be working on these type of issues too and is very concerned about the time limit that it's taken to address these issues in the past and says that
He's wanting to work with the state of Arizona and resolve some of these issues that we're discussing today and other issues.
Nick Kupper
State Representative, District 25
I think this is a good bill. It does address these particular issues. And anybody else has anything to say? Yes. Thank you. You mentioned that the study is ongoing as far as, you know, what is or isn't coming into our space, you know, from outside, whether it's California, Mexico, wherever it may come from. How long ago did the department start studying where this is coming from and what is coming?
Matt Rippentrop
Arizona Department of Environmental Quality Representative
Madam Chair, Representative Kupfer, I would have to follow up with more specifics on the information of when the agency began looking at that in earnest and when that study began. I don't have that information with me, but would happen to follow up with yourself and the committee with that information. Madam Chair? Yes. Thank you. I appreciate that. Thank you very much. Do you happen to have a ballpark at all of like how long ago this was first began to be looked at?
Madam Chair, Representative, I apologize. I don't have to. That's OK. No, thank you for that. Appreciate it. I can say at least a couple of years.
Nick Kupper
State Representative, District 25
A couple years? Madam Chair, if I may comment real quick. So I guess my concern is why has it only been such a short period of time when the Clean Air Act has been around for decades and decades? And this is something that we've been subject to as a state. I feel like this is something we should have been looking into a long time ago. You know, who else is polluting our state that's not us? And what are we being penalized for?
Gail Griffin
State Representative. Committee Chairman
Just a comment. Good comment. Thank you, Matt. Thank you, Madam Chair. Madam Chair, I have a question. Yes, Representative Carter. Almost.
Pamela Carter
State Representative, District 4
Now I'm reading on page 2 of the amendment 80% of the zone in the Maricopa County non-attainment area comes from emissions emanating outside of the United States and are out of control. Can you speak to that at all? 80%? That is alarming.
Matt Rippentrop
Arizona Department of Environmental Quality Representative
Madam Chair, Representative Carter. Yes, those numbers I think can sound alarming. I myself am not familiar with that study, so I don't know that I can speak to those numbers, but would be happy to review those and follow up with the committee.
Gail Griffin
State Representative. Committee Chairman
Madam Chair? Yes. Do you have any comment on that? Yes. In fact, we have a joint committee with the Senate and the House to address clean air and air issues and such. And this is, you know, I know last year we had a joint meeting, and we've had meetings before that as well. Thank you. OK. Thank you, Matt. Thank you. Bonnie Lund, if necessary.
I guess not. OK. All right. Any other questions or discussion from the committee? Seeing none, Mr. Chairman, Vice Chairman, would you please move 1128? The amendment, right? You moved the bill first. Madam Chair, I move that Senate Bill 1128
Chris Lopez
State Representative, District 16
Returned with a do pass recommendation. Thank you. Okay, now move the Griffin Amendment. Madam Chair, I move that Senate Bill 1128 as amended, Griffin Amendment 1031 AM 32425.
Gail Griffin
State Representative. Committee Chairman
be returned with a do pass recommendation. Thank you. I've heard the motion and the sponsor just came in for 1128. Do you want to make a comment?
No. That's a comment. Just pass the bill, I'd appreciate it. Okay, all right, we've heard the motion. All those in favor of the Griffin amendment dated 3-24-25 at 10-31 a.m. signify by saying aye. Aye. All those opposed say nay. The ayes appear to have it, do have it, so ordered. Would you move the bill as amended please?
Chris Lopez
State Representative, District 16
I move that Senate Bill 1128 be returned with a due pass, or as amended, due pass recommendation. Thank you. Any further discussion? Seeing none, let's call the roll. Representative Carter? Aye. Representative Contreras? Nay. Representative Heath? Aye. Representative Cooper? Aye.
Sarah Liguori
State Representative, District 5
Madam Chair. Yes. This is an issue that is most pressing to our state right now as we approach a non-attainment designation. I thank the sponsor, you know, Senator Carroll for working on this. I do think it is something that we have seen for
You know a number of years continue to tick up and a huge portion of that I think is also, you know wildfires that we don't That I haven't heard yet be something that's a factor in this if you take out What's attributed from wire wildfires are we have a significant drop? And where we are at right now, and that's something we need to consider as you know the
planet keeps warming and fires are more abundant. Unfortunately, I have concerns with this on kind of clarity and scope. I think it puts, as we heard testified, there are certain things for ADEQ from a funding standpoint. So I'm not able to support this bill today. I'm voting no, but I do hope that it is something we can continue to have bipartisan alignment on to figure out what that exact solution is so that the air is healthier for all Arizonans.
Secretary
Representative Martinez? Pass. Representative Mathis? Nay. Representative Pestekai? Nay. Representative Martinez? No. Vice Chairman Lopez? Aye. Chairman Griffin? Aye.
Gail Griffin
State Representative. Committee Chairman
By your vote of five ayes, five nays, you have failed to pass Senate Bill 1128 with a do pass recommendation. Next bill on the calendar is 1538.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1538 expands the definition of plant in relation to power plant and transmission line siting to include non-thermal generating units and increase the nameplate rating from at least 100 to 200 megawatts. And with that, I'm available for any questions. Any questions for staff? Thank you. Sponsor of the bill is here. Senator Carroll.
Senator Frank Carroll
Senator, District 28
Thank you, Madam Chair, members of the committee, Senator Frank Carroll from District 28. And I think this was a question asked to me is where to come up with this idea, who was behind it? I'll be honest with you. We were out of session at a bottle of McAllen sitting on my desk and a very naked glass with no ice in it. And it hit me like a light bulb. As I'm looking into the law here,
talking about sources of electric generation. Find out our law for line sighting goes back 1971. In that time, there's a whole classification of electric generation that was not on the books because it didn't exist in that day. Namely, what we classify as what's called non-thermal, meaning solar, wind, batteries, and whatever else is to come as technology advances forward.
So the thinking here was to modernize the statute and line citing, add the definition being non-thermal to it, whether energy has come forward in a different form other than thermal, non-thermal, nuclear, and hydroelectric. Of course, we'll make the move to add that at that time. But it's talking about things at scale.
meaning the size and output of the nameplate that's on the energy generation. And these are the things that I'm addressing right here. So this means that it goes in front of the Corporation Commission. This evens the playing field across every type of energy source. And I'm open to any questions.
Nick Kupper
State Representative, District 25
Thank you. Any questions for the sponsor? Madam Chair? Yes. Thank you. Senator Carroll, do you happen to know, obviously this original regulation was decades old. Do you happen to know, not saying you're that old, but do you happen to know what the original thinking was and why this regulation was put in place?
Senator Frank Carroll
Senator, District 28
Well, I'm sure it wasn't a brand of some other adult beverage. I can assure that. I think, in all honesty, the folks in that day were looking seriously at what would potentially go on with the type of energy that we're making in those days. And, you know, other than that, it's, you know, I'd have to do some research to see where the original intent was with the law being what it was. Appreciate it.
Gail Griffin
State Representative. Committee Chairman
How easily I forget. Thank you. Any other questions for the sponsor? Yes.
Sarah Liguori
State Representative, District 5
Thank you, Madam Chair. Thank you, Senator Carroll. A question for you that kind of is built on from a similar bill we heard a couple weeks ago, which I know you don't know what that conversation was, but we were talking about the free market and how government should not come in and pick and choose what sort of energy sources and uses we have.
When you just said level the playing field, it made me think of that, because I don't know if this would level the playing field. And my question to you is, it seems that it would further exempt fossil fuels from needing to get CEC permits. And then it would also make it harder to regulate solar and wind. And so your comment about modernizing this, we're now in a society where in 1970, they probably didn't
Senator Frank Carroll
Senator, District 28
think that solar and wind would be as efficient and economical and to scale that we have today. So I just, it seems to be going backwards, not modernizing it. And so just... Chair and Representative Liguori, just something you just said now, that back in the day, that they didn't look at solar and wind. They did not look at it at all. It was not even on the radar. And that is the point here.
We are adding other types of energy generation. And just like gas fired, nuclear, if it's coal fired, whatever, it doesn't matter. That's not the point. We're not picking winners and losers. Everybody gets the same day in front of the court commission.
That's the point of the bill. That's the point of the law from 1971. It's just the technology advanced to something completely different. It still makes electricity. And this subject is about electric generation. So by adjusting this bill and putting this language in there for non-thermal, that's what I mean by changing the playing field. Everybody goes before the court commission. Same degree, same scale, same method, and same discussion.
It's not about picking winners and losers, and I know many people have said that, but it's not true about this bill.
That's your court commission that you elect. They examine it, they have rules, they have procedures that they follow, including line citing and evaluating what's gonna work best, what's the appropriate economy that's gonna work for Arizona. They weigh all of those things. It's just that right now, without that being in there, this is exempt from that consideration. So adding this language, one word, thermal or non-thermal, to the definition,
Patty Contreras
State Representative, District 12
That levels the playing field. That's what I mean, but it has nothing to do with picking winners and losers. Okay Thank you. You're welcome. Thank you Thank You madam chair Senator Carroll, can you explain what you mean by thermal? What what how is that being related here? I
Senator Frank Carroll
Senator, District 28
What that refers to, Madam Chair and Representative Contreras, thermal is you're combusting. In other words, it produces CO2 as a result if the combustion is proper. In other words, it's a byproduct of that action. So all you're doing is changing energy from one form to another, whether it's natural gas, whether it's oil, whether it's coal. If those have to combust in order to produce heat that then transfers into what's necessary to make electricity, that's part of the process.
Okay, in the non-thermal, just to add to that, Madam Chair and Representative Contreras, that just says the way that system works is there's a direct connection between, let's say, with solar. It's that photovoltaic effect that comes in as a result of the energy that's coming from the sun. Wind, it's the result of the energy generated through wind that's transferred mechanically into wind jams.
Okay, and then when you get into batteries, which is the other one, that's not thermal That's a chemical reaction that takes place in order to produce electricity. They're just not mentioned in the law So this is what I'm bringing this just what I mean by modernizing it adding to it. So that helps you So thank you. That was a very good explanation. Madam chair. Mr. Senator Carroll. So why are we doubling the threshold to thermal?
Madam Chair and Senator, excuse me, you're not there yet. Someday when you get the opportunity. Thank you. Yeah, I know. I appreciate it while you got it.
The increase is the fact that a lot of what we were able to do in advancements in technology in all of those arena, whether they're thermal or non-thermal and nuclear, we have greater output capabilities of those. So they're going to be much more improved in smaller packages. So I thought it was appropriate to move the labeling up as part of the consideration.
Beyond that there's no, Madam Chair and Representative Contreras, there's no other rationale behind it other than it seemed appropriate to do. Well, it seems to me it would limit our ability to use solar or wind in this kind of a case. Madam Chair and Representative Contreras, it's not true. Okay, this is just about going in front of the Corp Commission where we have this. You still can do smaller scale projects and be fine.
Nick Kupper
State Representative, District 25
Thank you. Madam Chair. Yes. Thank you. Senator Carroll, this seems really extremely simple bill. I like consistency and what I'm seeing here is that this just brings non-thermal generating
into consistency with thermal generating. I don't love new regulation overall. I think there could be an argument potentially if knowing why the original regulation was put in place to say maybe neither are regulated in this particular model. But I'm assuming that's where you're coming from, right? You're trying to just bring use of, you know, parity, try to bring consistency between our two different types of generation. Is that accurate?
Senator Frank Carroll
Senator, District 28
Madam Chair and Representative Kupfer, that's exactly it. The whole thing is, like you said, when a bill is simple, and I wish most legislation here was just simple, get it done, go home early. Okay, like you guys are signing die tomorrow, right? Okay, just checking. It's the simple things, but for some reason, they're always the ones that
get under the most scrutiny for whatever reason. But let's keep it simple, because that's all it is. Just what you mentioned. Thank you, sir. Any other questions? Seeing none, thank you. Mr. Vice Chair? Stan Barnes?
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
So Madam Chairman and members, I'm Stan Lawrence, Copper State Consulting Group, here today representing InterWest Energy Alliance. Madam Chairman, you're doing a fine job with my committee until I return. Thank you. Thank you. May I exercise a little privilege and say I'd like to deputize Representative Cupper to keep his eye on Senator Carroll behind me because I'm about to attack his bill as unnecessary. And I don't really know what he's going to do. You have two minutes. Thank you.
I appreciate, I want you to know I have worked in this space for 25 years. I would dare say I know more about this topic than anyone in this room, perhaps anyone in the building. I've been through the line signing committee dozens of times. I've had projects approved and disapproved. I can tell you that the simple spirit of parity yields nothing.
in this legislation. In fact, it's just the opposite. Representative Cooper, your instinct is right. We don't need a new regulation. We need to go the other way. Instead of adding non-thermal, we need to strike thermal. We have a lack of energy development in the state of Arizona. SRP says it took 100 years to get to 8 gigawatts of load, and they need to triple that in the next 10 years. Why would we add regulatory uncertainty, cost
and slow down the development of any energy. That's what this bill does. In the name of some ideological parody that has gone to its extreme and making no sense, that's my argument. And I've told all of this to the Senator in the past, and I was hoping I didn't have to do this here, but I will remind you, since I only have two minutes, this very committee passed a bill that said you don't need a CEC at the Corporation Commission for nuclear energy.
But yet this would bring solar into that regulatory structure when the counties already have it. And the cities already have it. You would get no improvement in reality, and you would add regulation. That's my comment. I would love a few questions, Madam Chair. Thank you, Stan. Question. Madam Chair? Yes. Thank you. Thanks, Stan. And I appreciate being deputized. I've never been a cop before. Is he looking at you? I'm excited. She's like, I want to be the cop.
Nick Kupper
State Representative, District 25
But to the best of your knowledge, has any legislator in all the decades this particular legislation has been around, have they tried to remove this regulation? Madam Chairman, Representative Cooper, you mean add non-thermal to this regulation?
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
No. No, you mean the other way. What you want. You said you want this regulation gone effectively. Madam Chairman, Mr. Cooper, I don't want it. I would say that if you were interested in simplification and parity, that would be the better play. But I've known no one attempt such a thing. And to your direct question. Thank you. OK. Any other questions? All right. Madam Chair, Representative Carter.
Pamela Carter
State Representative, District 4
Yes, I would like to know how long, you said you've been in this business for how long? What business is that? Thank you Madam Chairman and Representative. I'm a consultant, I'm a lobbyist as you know, but part of my company's activity
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
is to represent energy companies as they develop these projects around the state. So the very first energy project, it was not a utility project, it's called a merchant, a merchant project, we worked on. It's running today, it's a combined cycle gas
generating station outside of Kingman, Arizona. Because we had done that one, we got hired for the next one, and the next one. And so, in the course of 25 years, I've experienced tens, dozens of clients going through the regulatory process and citing generation, gas, solar, wind, battery storage, and transmission lines.
And so normally, I'm an inch deep on some of these topics. But in this one, I'm more than an inch deep, because I've lived it. And I can attest to you that this new regulatory environment will yield you nothing in the real world, but will indeed slow down things in the real world. I don't know why you'd want to do that.
Pamela Carter
State Representative, District 4
Madam chair yes Stan So you do not have an official background in energy or electricity or any of those You are more on the outside looking in would would that be correct or am I? I mean you haven't actually been in that business yourself, but
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
Maybe you can explain. Thank you. I'm not going to put words in your mouth. Thank you, Stan. I've never been employed as an employee of an energy company, but I have advised how to get from idea to generation. And all the politics between idea and generation
Ralph Heap
State Representative, 10
is quite a bit and that's what I have expertise in. Thank you. Thank you. Yes. Just one question Madam Chair. So Stan just one question. This is just for my own education. So right now if you want to do a solar project you don't go through the Corporation Commission?
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
I'm glad you asked, Madam Chairman and Representative Heap. You do if your transmission line to take that generation to market is more than one mile in distance. That exists because Chairman Griffin
managed to pass a bill recognizing that it was taking over a year to get through the regulatory process at the Corporation Commission. She helped that situation by saying if your transmission line is a mile or less, you don't need to.
So if you and I invested in a solar company and it was over 200 megawatts by this bill, we would have to go through, even if the transmission's less than one mile. But the transmission does go through. That's the key, and it's a very important point for this committee to understand. It's not like renewable energy doesn't have its day in the public square.
counties decide whether or not, and cities decide whether or not you can do it. They're doing it all over the state of Arizona. It's happening already. It's already regulated. The transmission
then goes to the Corporation Commission, and they decide whether or not you could string the wire from the generator. The Corporation Commissioners, if they were here, would tell you that when they're thinking about the transmission, they're also thinking about the generation. Even though they don't have direct jurisdiction over non-thermal generation, they know that if they say yes to this transmission, that that solar field or that wind farm is going to get built.
So, the transmission is the key, that would still remain, that does still remain with the Corporation Commission, which is another reason you don't need this bill. So, Madam Chair, one more. Is that the same if you want to do a gas-fired plant or any other plant? They do have to go through the Corporation Commission to do anything, don't they, or not? That's right, Madam Chairman, they do. If they're over a certain nameplate threshold,
the thermal units must go through the Corporation Commission. The transmission, in any respect, still has to go through. We worked on transmission projects that are just infrastructure, not connected directly to a generator. They all have to go through. And I know the answer to Mr. Cupper's question, if he wants to ask it again. Well, but wouldn't it be reasonable to just level the playing field and make both
thermal and non-thermal just go through this exact same process through the Corporation Commission. That seems more reasonable to me. Madam Chairman and Mr. Heap, I appreciate where you're coming from and at one simple level, yeah, you would achieve something. But what would be the outcome? There would be new doubt and variables in signing energy.
but you would not improve whether or not the energy got built and applied to the local people. The local jurisdictions are already deciding that. So if you make solar and wind and battery storage, I might add, which is most of what's happening today, if you make them jump through a new hoop in the name of some parody,
You may feel good about it, but you've done damage to the whole process, even as we need energy now. As I say, if you're really interested in parity, go the other way and let locals zone thermal, which they're doing, but let the Corporation Commission handle the transmission. Instead of adding non-thermal, take thermal out. You'll have parity, and you'll have a market-oriented development to help catch us up where we are delinquent.
Nick Kupper
State Representative, District 25
Madam Chair, one final question. Thank you. So you brought up kind of what you said to me a minute ago. You said you effectively don't want the existing regulation to be gone, but you also don't like this bill where we're adding in non-thermal. And so what I'm hearing is that you want this legislation to stay exactly as it has been for decades, but your argument for why we shouldn't add non-thermal is that you're
we would be creating more hoops to jump through. But the hoops are already there for one. And so it would seem logical to me that you would say you do want this one on because you don't like hoops. But that's not what you're saying. And so I feel like there's a disconnect in the two different things you're saying. On the one hand, you're saying,
Stan Lawrence
Copper State Consulting Group / InterWest Energy Alliance Representative
You don't want any hoops for non-thermal, but since you don't want this regulation to go away, you do want hoops for thermal. Why do you want hoops for thermal? Madam Chairman, Mr. Cover, I'm limited by my representation of clients who want me to oppose the non-thermal and have not had a debate with me about or enabled me to tell you what I think personally.
And I'll tell you what I think personally now, we have all that experience. That the way to get to where Senator Carroll wants is to take thermal out. Because now we have parity. We take a cloud, a doubt over energy generation and remove that cloud. The transmission is still at the Corporation Commission. And the locals get all the zoning they want. Believe me, they turn down projects. And adding a regulator.
because you believe it achieves parity, I think, is taking an ideology and going so far with it that it makes no sense. Thank you. Thank you. Thank you, Stan. Thank you, Madam Chair. And he was always also a radio personality, too, Representative Carter. I would never have known. I hope I get the first name right. It looks like Colt Rich.
Court Rich
Head, Energy & Regulatory Department, Rose Law Group
Madam Chair, members of the committee, my name is Court Rich. I head up the Energy and Regulatory Department at the Rose Law Group. I represent around the state energy developers of all kinds and appreciate the opportunity to come and speak to you today. I'm going to try to not parrot what Stan said, but I do stand before you in opposition to this bill.
Arizona needs more energy right now than we've ever needed in the history of the state. We need it now. We need it for the lowest cost that we can get. We are literally turning away businesses that want to locate here that need tremendous amounts of energy to locate.
But instead, this bill, with that backdrop, it increases regulations, it increases the cost of building that energy that we need, it increases the time it takes to do that, it increases the risk for developers that are doing it, it grows government, it grows bureaucracy.
We don't need that bill, this bill right now. Madam Chair, you did a great thing a few years ago. You ran a bill, as Stan referenced, that made it take less time to go through the Line Sighting Committee and accepted out energy projects that are much needed that have transmission lines that are less than one mile. This bill would all of a sudden make all of those projects have to go back through this process and undo the great progress that we made a couple years ago, a couple sessions ago.
There's been a lot of talk about parity. You have two choices. You have more regulation or less regulation. The idea that to get parity we would go towards the more regulation just seems perverse to me. If we're really concerned about parity, let's look at what we value, which is less regulation. Arizona has a very well-earned
reputation for having a low regulatory touch, a light regulatory touch, why would we think parity means let's upregulate? No, if we want parity and that is the goal, let's do it the right way. And if that means less regulation, then great. But the idea of making something worse for someone because it provides parity just seems perverse. At the end of the day,
This bill is just more regulation. It's more cost. It's more time. It's more risk. And who pays that price? It's the consumers that buy energy in Arizona. And I submit that this committee doesn't want that and has done bill after bill over the years to try to keep energy rates low and keep government effectively operating. I'm happy to answer any questions. I appreciate your time.
Nick Kupper
State Representative, District 25
Any questions? Madam Chair? Yes. Thank you. All these risks that you just mentioned, that this bill would put on non-thermal, does that mean that in your opinion the existing legislation is currently putting those same risks on thermal?
Court Rich
Head, Energy & Regulatory Department, Rose Law Group
Madam Chair, Representative, I think that certainly the risks are there for thermal under the current legislation. The one thing I would point out is that energy projects are developed on a, like, decades scale. So anyone in the thermal energy business has known for 50 years that this legislation was in place. And when they chose to move to Arizona or look at Arizona to develop their project, that was built into the stock price. They knew that this was a thing they'd have to go through.
There are dozens, if not 100 or more, energy projects that were never intending for this bill, never understanding that this regulation would ever apply to them, that would get whiplashed by this. Now understanding that this new regulation in this state that has a low regulatory reputation, all of a sudden would apply to them, and that would change everything. So I think you're certainly correct that those risks are there. Again, that's the case for less regulation, not more. Why impose, in the name of parity, why impose risks as opposed to remove them?
Madam Chair? Yes. Thank you. Arizona's had power for far longer than 50 years, so wouldn't the people who cited power plants before this original regulation was in place, wouldn't they have felt the same situation that you're identifying now? Madam Chair, Representative, I mean, I certainly can't speak to what they were thinking back then, but certainly I would imagine that more regulation at that time probably drove up energy prices too. Thank you.
Pamela Carter
State Representative, District 4
Madam Chair. Yes, Representative Carter. I forgot your name. Court Rich. Court. Thank you. How exactly would this create higher rates? Madam Chair. I mean it's going through the same Corporation Commission, the same restrictions, everything. So how, in your opinion, would that increase costs?
Court Rich
Head, Energy & Regulatory Department, Rose Law Group
Madam Chair, Representative, thank you for the question. So, projects today don't have to, the non-thermal projects don't have to go through this process. To go through this process takes time and costs money. And that money and time, that money, the time costs money. Those fees and costs that are associated with that ultimately make the project cost more.
If it's riskier, the cost of borrowing money, these are billion dollar projects or half a billion dollar projects. Every little amount of risk costs money and adds to the cost of that project. Then when it comes time to sell the energy from the project to the public in Arizona through our utilities,
the price of that energy is going to be higher. Because if I pick up the phone today to try to get on the agenda at the line siting committee, it's going to be a year or more before I can get on that agenda. If all of a sudden every single one of these projects has to go back into that pool and get on that agenda, it's going to be even longer. And we need the energy today, and we need it fast. And so the longer it takes, the more it costs.
Pamela Carter
State Representative, District 4
Madam chair, yes court so I'm not understanding we could choose thermal or no thermal Non-thermal, correct? the consumer could choose which which one of the companies and what kind of energy they wanted for their particular needs and
So you could choose not to go with the higher rate. In fact, it did increase the rate. Madam Chair, Representative.
Court Rich
Head, Energy & Regulatory Department, Rose Law Group
These projects sell energy to the utilities that then turn around and sell that energy to the public. And so me, at my house, or at my business, I can't choose where I get my power from. But the utilities, if the cost of the power they're buying is higher as a result of increased regulation, we all know that regulation just does increase costs, whatever the regulation's on. Whether it's on health care, or it's on schools, or whatever it is, it increased costs.
The consumer ends up paying that one way or the other. They can't choose one or the other. And frankly, if you're forced to choose something else because the cheaper one got more expensive, you're paying more because you're being forced to buy something that you wouldn't have bought for more. Madam Chair, but that doesn't necessarily mean I would choose solar or wind. It doesn't mean that as a consumer I could choose
something else. A company that would produce something else or even the utility company. Madam Chair, Representative, the utilities go through competitive processes when they go to buy power to sell to all of us. They say, give me your best offer. And so solar companies and gas companies and coal companies and whoever
tell the utility, here's what I can get you, and here's what it's going to cost. And then the utility picks the lowest cost version of that. A lot of that has been renewable or clean energy, that then the cost of that would go up as a result of this regulation. Thank you. Thank you. Thank you. OK. Thank you, Court. Thank you. Sandy Barr.
Gail Griffin
State Representative. Committee Chairman
All right, Senator, do you want to conclude? Thank you, Madam Chair. I'll just conclude with a few comments here. Mr. Barnes, I've known for quite a while.
Senator Frank Carroll
Senator, District 28
Not as old as he is, but I've known him for a while. And we get along quite well, and I appreciate and respect the fact that he's defending his clients in this matter. The bill, when it was heard in government committee in the Senate, one of the things that was revealed, it turns out there was an attorney for Rose Law Firm that was up there speaking, and it turns out he's involved in litigation suing the Corp Commission now, which is
impacting some of the decision-making that's taken place there over how they rate the different energy sources. Apparently their focus seems to be affording gas power or thermal generation. And yes, it's true, everything should be on the table. The point of the bill here, and I think the crux of it is, if you want to take everything off the table, that includes
Thermal, nuclear, and hydroelectric as well. So those things would come off. The point here is we've been doing this, and when I say make the playing field level, thermal gets the same consideration. It has to go before the corp just like thermal does, just like nuclear does, all of that. And a lot of those areas are advancing quite a bit in technology. They're fair game. And that's all we're looking for here. So I'm going to come back to parity.
Whether people like the way the Corp Commission thinks about its rules and operations, that's up to the Corporation Commission members that were elected. Okay, this is just from a statutory standpoint saying we left something out that we didn't know existed at the time that this bill, that law was put in place.
So to me, that's modernizing the law and that's making it a fair game for everybody. They have to work just as hard. This does not increase regulation. This does not increase costs. It makes it on par with what you get with thermal and nuclear and so on and so forth. So please support the bill. I hope you will. Thank you. Any other comments or questions? Madam Chair? Yes. If I may, I'd like to ask a question about McGorry. Okay. Yes.
Nick Kupper
State Representative, District 25
Thank you. If I understand right from your earlier comments, you have some concern with adding non-thermal as far as it could put solar, wind, etc. at a disadvantage. Did I understand that right?
Yeah, I think so. And then also the 100 to 200 megawatt change in it too. Okay, Madam Chair, further question? Yes. Thank you. It was brought up by a couple of the people testifying that they thought if we wanted parity to go the other way and just remove the regulation, is that something you would be in favor of? Representative Licari. I'd be happy to have a conversation deeper about this outside of committee, sure.
Madam Chair, just a comment. Yes. I guess I keep getting stuck on what I see Senator Carroll trying to do here is, like he said a few times now, it really does seem like it's a parody. I think 50 years ago, we didn't quite have these other technologies to the level they are today to produce the megawatts that they produce now. And it's great that we have more options now. I think it's fantastic.
Like I mentioned earlier, I really like consistency. I don't love over-regulation, but I do love consistency. It's just interesting to me that some of what I'm hearing in testimony, at least maybe not the personal choices, but the clients themselves,
it almost seems like they want to carve out, and I'm not trying to impugn their motives, but it sounds like they may want to carve out for themselves that the other entities aren't getting. And I don't like that. I like consistency, I like treating each equally. All right, nobody else has signed up to speak. So Mr. Vice Chair. Madam Chair, I move that Senate Bill 1538 be returned with a due pass recommendation.
Gail Griffin
State Representative. Committee Chairman
Thank you for the motion. Any further discussion? Seeing none, please call the roll. Representative Carter? Aye. Representative Contreras? Nay. Representative Heath? Aye. Representative Copper? Pass.
Sarah Liguori
State Representative, District 5
Madam Chair yes I do think there it's not like solar it would have no process right now for their permitting and we need parity because they can just do whatever they want but I do feel like again
The way that the bill is written essentially does not apply to new gas-peaking plants at all. So it favors dirty energy providers. It also puts communities at risk, which also opens up the door to a lot of health harms of having gas-powered plants closer to our communities.
And my final comment there ties into the bill that we just heard, where gas-powered plants are, they do emit volatile organic compounds, which are contributing to ground-level ozone. So it seems we're trying to solve in one, but then we're also favoring a dirty energy that would continue to contribute to the problem on the other hand. So happy to be in conversations after this, but not supporting the bill today.
Secretary
Oh no. Representative Martinez? Pass. Representative Mathis? Nay. Representative Peshpakai? Nay. Representative Cooper? Aye. Representative Martinez?
Teresa Martinez
State Representative, District 16
What was that? I didn't quite hear that. I will vote aye today, but reserve the right to change my vote on the floor and anywhere else and on the other bill. Vice-chairman Locus. Aye. Chairman Griffin. Aye.
Gail Griffin
State Representative. Committee Chairman
By your vote of six ayes, four nays, you have passed Senate Bill 1538 with a do pass recommendation. Thank you, members. Thank you. I see Senator Fincham here, so we'll do his bill next. And that is 1278.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1278 will establish the Department of Natural Resources and the Commission of Natural Resources. Establishing the DNR will give this department the ability to administer laws of the state relating to natural resources, oversee the acquisition and management of state lands, hold or convey state lands, and open state lands for recreation, agriculture, or resource extraction.
This will include lands opened by the state and not held in a trust. The DNR with the commission will appoint a director and a commission will consist of five board members appointed for a term of five years. Three of these members will be appointed by the governor, one by the Speaker of the House, and one by the President of the Senate. And with that, I'm available for any questions. Any questions for staff? Thank you. Sponsor the bill, Senator. Madam Chair, members, thank you for hearing this bill.
Mark Finchem
Going back to about as far back as this state existed, we've had a somewhat schizophrenic attitude, mindset towards managing our public lands and our resources.
We've got Game and Fish that own some land and they grow hay and they compete with farmers to feed wildlife, mainly deer, elk, the larger animals. We have the DFFM that they do what they can to try and manage what has become, if any of you caught the
fire insurance crisis hearing that we had last week over in the Senate. They do what they can with the resources that they have to manage the fire load. We've got a number of other organizations that are charged with watershed management. We've got all these agencies and we've got all these
these organizations within state government, we don't have a unified Department of Natural Resources. Now, many of you probably know I come from Michigan. There, if we use that as a model, which this quite frankly was the model of Michigan, we have a situation where the state of Michigan has about 1% of its land under federal control.
State of Michigan runs the state forests, state parks, state campgrounds, licensing for fishing, game, licensing for harvesting hardwoods that become furniture. All of the natural resources within that state are managed by the Department of Natural Resources, DNR. They have various divisions, but they're agencies within the department.
But one of the things that is coming our way is the federal government right now has an appetite for divesting, for essentially distributing the unappropriated lands that are currently managed, for the most part, by BLM. There are other pieces of land, like Forest Service. Madam Chairman, I'm glad that you read my mind in talking about the map.
It occurs to me that we have, every single term that I've been in the House of Representatives, we have a discussion about education funding. How on earth do you think you're going to fund education when we only control 11% of the tax base?
where in other states it's up to 95%. That's why states like Maryland, Michigan, Ohio, that's why they're able to pay double what we do on a per student basis. I'm not going to go down the tax package side. What I want to focus on today is we do not have an organization
That is prepared to accept federal lands that are not These are not what we're talking about is non trust land. We already got Arizona land trust that's already taken care of It's its own division set up at statehood. They manage trust land
We're talking about non-trust land. This is the land that when, for example, the Department of the Interior decides that it's going to instruct the BLM to dispose of the unappropriated lands that are proprietorial interest only. That means that it's the lowest level of land possession or authority over lands that the federal government maintains. Now, of course, there's people that have said, made wild claims, oh, we're going to see wholesale destruction of the public lands
Building everywhere. Well, we also have a housing shortage. So we've got a bunch of competing interests here. I think we would be well advised to have a Department of Natural Resources that brings all of that under one roof so that we have a coordinated, sane land management policy organization to execute on the policy that this body lays forward. And with that, I'm happy to answer any questions you might have.
Gail Griffin
State Representative. Committee Chairman
Any questions for the sponsor? Madam Chair. In fact, I've passed out the map for the nation that shows how much property is in private hands, what is in white, and also a map of the state of Arizona that shows how much private property and back in the
Mark Finchem
late 90s, the Arizona Farm Bureau did a study and showed that there was only 13% of land in private hands at that time. Yes, Madam Chair. To that point, we're now down to about 11.2%. So that number is shrinking. Okay. But at the same time, we now have an administration that is saying, look, we've created a real problem with fire insurance. It's land management policy that has caused that.
And the Trump administration, I'm hearing from a number of folks in D.C. that they are now open, especially the Department of the Interior, which houses the Bureau of Land Management, they are open to disposing of those unappropriated lands. So essentially, this Department of Natural Resources would be that organization where the catchers met to catch what hopefully will be a fastball.
Teresa Martinez
State Representative, District 16
Any questions for the sponsor? Madam Chair? Yes. First of all, Senator, thank you for bringing this bill. I think it is a fantastic idea, if I'm being completely honest. I guess my question to you is, do you think that with the new administration, and I could be completely off base, that's why I'm just asking the question, that we could somehow be able to have
More state sovereignty over our entire land over our entire state mass and sort of that this is the golden opportunity to be able to have our states more in control.
Mark Finchem
of where we live and what we have, or am I misinterpreting that, Senator? Madam Chair, Representative Martinez, no, I don't think you're misinterpreting that at all. In fact, if we go back to the Madison debates, 1787 in July, Elbridge Gerry mentioned in his commentary, and this is basically where we have the enclaves clause,
An enclave was specifically for one of two purposes. 10 square miles, known as the Washington District of Columbia, okay? Then for forts, magazines, arsenals, dockyards, and other needful buildings, like VA hospitals, okay? It did not contemplate, in fact, Elbridge Gerry said, if the national government, which at the time, we didn't have a federal government, they were debating this very idea.
Elbridge Gerry argued that if the national government is permitted to possess too much land in a state, it will bring that state, it will yield, the state will have to yield. It will be awed into submission. So what do we have today? A national government that every time it decides that it wants to blow on the state of Arizona, something bad happens. So not only do we have the historical reference to that,
We have a president who has openly said that he believes in the concept of federalism. That means the federal government is supposed to be taking care of national security, things that are common to all the states. But the state government, under the 10th Amendment, by the way, where the authority for the federal government came from, from the states, the states do have sovereignty, okay?
I would remind you, in fact, maybe you don't know, 1976, Congress passed law instructing the Department of the Interior that they should re-seed, not putting seeds in the ground, but to re-seed, in other words, to send back to the states, on appropriate land,
dispose of the unappropriated land. That was 1976. 1978, Congress passed a similar bill instructing the same thing to happen with the Department of Agriculture, which is where the Bureau of, I'm sorry, the U.S. Forest Service and U.S. Park Service reside. Now why they didn't put it all under the Department of Interior, I could find out. Seems like an oversight to me, but I live not more than a mile from the Prescott National Forest.
And every time I drive by that sign, I'm wondering, why is that not the Prescott State Forest? I mean, you look at the overgrowth of trees, and I'm happy to provide the photographic evidence of the San Juan fire, if you would like. U of A says, in their scientific work, a healthy forest is 35 to 45 trees.
I have a photograph of a state-managed forest directly across the firebreak road from Federal Forest, which has about 300 trees per acre. So we talk about proper forest management. Well, the Forest Service has not exactly done a great job, but in their defense, and limitedly so, you have organizations like the Sierra Club and Center for Biological Diversity. They want to litigate everything having to do with land management.
Well, therein lies the problem. If the state were to go in and treat, in other words, thin some of this fuel, ladder fuels, and some of this fuel load, we wouldn't have the catastrophic fires that we're now seeing. I think that the federal government has recognized, particularly this administration, has recognized that the federal policy going back decades
has contributed to mismanagement of the lands. And by the way, the Forest Service is supposed to do two things. Not just take care of the forest, but what? Water. Improve the watershed. How do you do that? You know, we have a lot of discussion about water policy, okay?
it takes water to grow trees. And when you say, for example, you have a mature pinyon juniper, that's pulling 47 gallons of water out of the ground a day. Multiply that times 100,000 just in the metro area. It seems kind of funny to call it metro, but just in the immediate area of Prescott and Prescott Valley. That's a lot of water. And then you add to it, you get into tall timber, you've got trees that should be thinned,
I believe it's an 8-inch tall pine that's going to drop between 110-150 gallons of water a day. A day! There are areas where you've got 300-400 trees per acre. It's so thick that a full-grown elk can't walk through that area.
So that's a problem. And I believe the state of Arizona could do a better job under the Department of Natural Resources to do everything from manage our gas, because we do have gases here. We have helium. We have petroleum gases. We have a number of carbon dioxide, for example. But we have a lot of natural resources that would go to funding education, funding infrastructure, public safety. A lot of the things that we have a challenge with
when it comes time for appropriation. So to answer your question in a word, yes, the federal government is ready, in my estimation, what I'm hearing out of D.C. and the relationships I have back there, they're ready. That would be nice. That would be nice. We have a long agenda. Let's move on. Sorry, one quick question. Yes. Thank you. Senator Fincham, thank you for being here. I didn't see a fiscal note. Is there a projected cost to establish this?
That would be up to the scope that the governor's office wants to set. This simply establishes the office. That would be probably an exercise for next year. Once the office is established, then the governor would step forward and populate that in a manner that she would, well, that the governor would prescribe.
Gail Griffin
State Representative. Committee Chairman
And I think several years ago, Senator, we did a study as to how much better we could manage the lands, how much additional funds we could get into the, and all of that would come into play into this new department. So, yes, Representative Cajeras. Yes, thank you, Madam Chair. And I have a question on this picture.
Patty Contreras
State Representative, District 12
So, I have a question on this picture. So, this shows all of the other lands. Are those all the lands that this person would oversee? No, no, no. That's an excellent question, Representative Contreras. So, the white land in that map is private land. Now, what that map does not provide visibility to
Mark Finchem
The upper right-hand corner of that map, for example, that is Navajo treaty land. That does not fall under the Department of Natural Research for the State of Arizona. I think the Navajo and the White Mountain Apache, they're doing a very good job of managing their own lands, and we're not going to intrude on that, okay? In fact, if you want to see solid forest management, visit the White Mountain Apache.
There is study in the right way to do things, okay? Within that map, though, you've also got some municipal lands, but you also have, and it doesn't show the checkerboard. If you'd like, I can get you a full-size map so you can visualize this. There is land that's controlled by the BLM, the Forest Service, the Park Service, and
There's also a wildlife preserve down. It would not take over the military range. And quite frankly, I don't think we want to take responsibility for the Goldwater Range, considering there's a lot of live ordinance out on the ground out there. They can keep that. And to that effect, I have a map in my office I'm having brought down. Does it qualify?
state trust lands, military, reservations, Bureau of Land Management and Forest Service. So it would be BLM and Forest Service, I would imagine that you're talking about. Yeah, Madam Chair, to that point, and this is a number, you're probably gonna have a hard time wrapping your head around it, because I did, okay? 3.2 million acres. BLM, Forest Service, Park Service.
That's those guys. Everything else, this doesn't do anything with, okay? It would just be whatever lands, in fact, federal lands, unless the federal government cedes it back to us, it's not a part of DNR, would not be a part of DNR. Now, to reference the study you were talking about, ma'am, I know you've got a long agenda, but this is, I would urge you to look up the study, Divided Lands, that was published by PERC about 10 years ago.
And it explains the difference between land management styles. When the state manages land, it makes about a buck 27 an acre. When the federal government manages land, I think it loses like 92 or 97 cents an acre. One actually brings something back to the state. The other costs the taxpayers just for sitting on top of it.
Sarah Liguori
State Representative, District 5
Thank you. Thank you, Madam Chair. Yes. I just have a question from a comment from Senator Fincham. And I already forgot the wording that you used, so I'm sorry if I'm going to butcher it. But the essence of it was that we would be able to utilize this land essentially, you know, profitizing off of it. And the comment was also that we would be able to fund education for it.
What I hear from that is we would like to take back these lands to sell or extract or use them from a profit-driven perspective. So that's a question. Is that accurate? And then how would we increase education funding by creating this new regulatory body? That's a great question, Madam Chair, Representative Laguerre. I'll just take one small piece of this, okay? Do you know where Rayon comes from?
Mark Finchem
It's a component in probably what just about everybody in this room is wearing, rayon. It's the fabric, okay? It comes from wood pulp. Debarked, ground, boiled, whatever they do with it, and then they spin it into thread, into fabric, okay? That is a very sought-after resource.
wood pulp. So, you are able to go through and harvest, some people call it thinning, but let's just, for the sake of grins and giggles, harvest the excess over 45 trees per acre. Some of it is going to be timber that can make lumber, but a good portion of it is going to be too small for timber. So, we're talking about 4 inch to 8 inch trees. Yes, I was a stump knocker with a crew for a few years.
But you have four to six inch trees, they're pulling up 100 gallons a day. You come in and you harvest those trees to make the larger trees more healthy, reduce the water consumption. That wood pulp can be sold on the market, I love that wood, can be sold on the market intended for wood pulp manufacturing.
for a whole host of things, everything from paper to rayon to a whole host of products. That is the map, by the way, where you see the blue and white. That's what's called a checkerboard. That's where you have private property mixed in with federal property. The BLM and Forest Service is yellow and green.
Teresa Martinez
State Representative, District 16
To that point, on that map, if you see La Paz County, they have a checkerboard. And so La Paz County, ironically enough, I'm not either for or against it, but cannot have a dispensary in the county, in La Paz, particularly Parker and Quartzsite, because of the way the land checkerboards with the tribal reservation. And so that's yet another example of what Senator Fincham is talking about. And they're stunting business.
Patty Contreras
State Representative, District 12
Point of information, yeah. Madam Chair, I'm sorry, can you explain again which lands this bill is referring to? Pure land management is yellow. US Forest Service is green. So if we were, Madam Chair, if I may, Representative Contreras,
Mark Finchem
If we were to just, in the initial launch of this, because that is the land that the federal government right now is contemplating, Secretary Burgum is contemplating releasing to the states. And it's not just Arizona. You're talking about all the western states where we've got this kind of mishmash of federal intrusion. If we were to just look at the yellow land, now a good bit of it is not terribly useful.
It's rock, it's dirt, not a lot of topsoil. It's pretty, but you've got people that want to hike on it, they want to recreate on it. That's a premium, okay? But you also have forested lands and you have watershed. Again, the Department of Natural Resources, we have this tendency to think of water not really as a natural resource, but try getting along without it.
It's a natural resource that I think when we bring all of these agencies under one roof, the Department of Natural Resources, we now have a coordinated response to managing all of that. Thank you, Madam Chair. Let's move on. Michael Cravens. Michael, are you here? No? I guess that's it. All right. Any further discussion?
Chris Lopez
State Representative, District 16
Seeing none, please move the bill. Madam Chair, I move that Senate Bill 1278 be returned with a do pass recommendation. Thank you for the motion. Any further discussion? Please call the roll. Representative Carter? Representative Contreras? Madam Chair? Yes.
Patty Contreras
State Representative, District 12
Yeah, I'm not for more government. I don't, I think this just kind of builds more bureaucracy. I'm against this. No. Thank you. Hi. Hi. No. Representative Martinez.
Teresa Martinez
State Representative, District 16
Madam Chair, may I? Yes, you may. So I also am not for more government. And I am certainly not more in favor of federal government. And I think any opportunity that the state of Arizona can take back their power away from the federal government, I see as a good thing. So I am an enthusiastic guy. Thank you. Representative Mathis? Nay. Representative Kestenheim? Vice Chairman Lopez? Aye. Chairman Griffin? Aye.
Gail Griffin
State Representative. Committee Chairman
Your vote of five ayes, three nays, two absent. You have passed Senate Bill 1278 with a do pass recommendation. Thank you. All right, we're looking at 1730. Bless you.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1730 requires the Arizona Department of Environmental Quality to compile a report on underground storage tank revolving fund pre-approval process and outlines information for the report to contain. It additionally requires that applicants for reimbursement apply to a DEQ within one year after completion of the eligible work and designates February 1st, 2026 or one year after the completion of the work as the deadline for any application for projects approved before September 1st of 2025.
And finally the bill asserts September 1st of 2025 to begin the one-year submission window and that past that day any applicant who is not timely submitted an application for reimbursement would lose eligibility without Thank you any questions Thank You Mike Williams
Mike Williams
Petroleum Marketing Association of Arizona
Madam Chairman, members of the committee, my name is Mike Williams. I represent the Petroleum Marketing Association of Arizona. That's the, for an easier title, that's the gas stations that are in Arizona. Madam Chairman, the analysts did a great job of explaining the bill. Why are we needing this bill? We've worked with ADEQ to come up with a bill. There was a couple of times where a person did the repair work and never submitted their bills going on two or three years.
that money stays encumbered. And so we want to give them a one-year timeline to do it. We also want a report sent to the legislature on how much money is in the fund and what's actually been being used and what's not being used. Two years ago, we swept a big portion of the money out of the fund because the legislature has no idea of what's been encumbered and what hasn't, what's been committed for cleanup.
So this report will be issued annually to the legislators. And Madam Chairman, because you have a long agenda, I'll be happy to answer any questions. Any questions? Mr. Williams, we've been working on.
Gail Griffin
State Representative. Committee Chairman
underground storage tanks for 30 years and the fund. The abandoned sites that we've had, the fund is used to clean them up. And so we want an accounting as to how much money is there, where it can go, and there's a maximum amount that can be spent. And just to report on this, we talked about in the late 90s as being set up for abandoned sites. So a little bit of history that I'm familiar with.
Very long history, Madam Chairman. Yes, yes. Any questions for
Mike Williams
Petroleum Marketing Association of Arizona
Mr. Williams. Madam Chairman, I'd just like to point out, ADQ would be here, but they're stuck in the committee over in the Senate, and apparently there's a lot of bills they have concerns with over there, so. Okay. All right, thank you. All right, thank you. Matt, are you here? Yes. Sorry, I didn't know he was here. Yeah, Matt, you are here. Any comment? It says neutral if necessary. You're working with them on it?
Matt Rippentrop
Arizona Department of Environmental Quality Representative
Madam Chair, members of the committee, I promise I won't take the full two minutes this time. I just want to emphasize, yes, when the bill was in the Senate, we testified to concerns about the encumbering of the UST involving monies. Proponents engaged with the agency to address our issues, and at this time, ADQ has no concerns that the bill hasn't been due. Thank you. All right. Let's go ahead and move the bill.
Secretary
Madam Chair, I move that Senate Bill 1730 be returned with a due pass recommendation. Thank you. Any further discussion? Seeing none, please call the roll. Representative Carter? Representative Contreras? Aye. Representative Heap? Aye. Representative Cuffer? Aye. Representative Nagori? Aye. Representative Martinez? Aye.
Gail Griffin
State Representative. Committee Chairman
Vice Chairman? Representative Carter? Aye. Vice Chairman Lopez? Aye. Chairman Griffin? Aye. By your vote of nine ayes, one absent, you have passed Senate Bill 1730 with a do pass recommendation. Thank you.
We will go to 1134.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, by way of background, current law allows a county water augmentation authority, or in this case authority, to be established in any active management area under certain conditions. The authority is permitted to construct projects, issue revenue bonds, enter into contracts, and other provided actions to develop and augment water resources within that AMA. The Pinal County Water Authority was established in 1993 to service waters in the Pinal AMA.
The Strike Everything Amendment to Senate Bill 1134 allows monies to be deposited in the authority's general fund or in a bond fund. It repeals and rewrites the authority to issue revenue bonds and the requirements for the board to notify the Attorney General of its intention to issue bonds.
It modifies the scope of resolution for a bond issue and expands the authority of who can set a time and place for a board hearing. The Strike Everything Amendment to Senate Bill 1134 additionally modifies requirements relating to bonds including sale, redemption, and issuance. It allows the authority to borrow monies from the Water Infrastructure Finance Authority and to enter into a loan repayment agreement and finally defines or alters the definition of drinking water facility, wastewater facility, and project. With that, I'm available for any questions. Any questions for Corbin?
Steve Miller
Amen. Thank you. Steve Miller. Welcome. Good afternoon, Madam Chair and committee. Thank you for hearing this bill. Uh,
The Pinal County Water Augmentation Authority has been in place since 1993, as they said, but the text has never been clear as to the ability to bond projects for infrastructure. So this is cleaning up the text.
We've had some bond attorneys workforce get that the text cleaned up so that we can now Finance some infrastructure projects in Pinal County the bonds will be paid back by the
the proceeds from the sale of the water and or leasing, whatever we do in the future. So that being said, this is the purpose for this bill. It's been sorely needed for many years. And all the years I've been a county supervisor, I kept getting told that, no, it's not worded correctly. Now it's worded correctly. We need to be able to go forward.
It's certainly needed in Pinal County for infrastructure in the future. So I'd ask that you give it the support. And I'm standing for any questions. Any questions for supervisor? Thank you, Steve. Thank you. John Singleton. Joe. I apologize, Joe Singleton.
Joe Singleton
Executive Directory of the Pinal County Water Accomodation Authority
There you go Madam chair members for the record. My name is Joe Singleton. I'm the executive director of the Pinal County Water Accommodation Authority We're here today in support of the strike everything amendment to Senate bill 1134 I'd like to thank senator show for championing the issue and
And you, Madam Chairwoman, for sponsoring the amendment and the rest of our local delegation are members of this committee. Supervisor Miller did a pretty good job of explaining the situation. The line item technical provisions that you heard from staff are based on recommendations that we received from Professional Bond Council on how to modernize and update our statutory language that had been in place since 1993 and never used.
Would add just for your benefit this particular section of statute is unlikely to ever apply to anybody but us But the way that the formation provisions are written you need to have under a certain population being an AMA Have somebody in the AMA with the CMP subcontract. So It's not prohibited. It couldn't ever apply to somebody else Necessarily by the size or you can create subsequent AMA's as we've seen but I think the fact that you have to have a CMP contract probably narrows the field to us and
There's a separate section the statute this speaks to a different kind of counter water augmentation authority I think it's two chapters after us, but that's that's not ours. So With that I appreciate you hearing us today. Maybe have any questions you might have any questions Thank you for being here. Thank you Craig McFarland
Craig McFarlane
Pinala Partnership Rep
Madam Chair, fellow committee members, thank you for allowing me to speak. I appreciate the opportunity. I'm here, my name is Craig McFarlane. I represent the Pinala Partnership, which is a membership of over 200 members that represent the different businesses and cities and municipalities and the county.
so we're here to just emphasize really how important this SB 1134 is to our county it gives us another tool in our tool chest for to try and help us with our water future and if it all county is going to continue to grow these are the kind of tools that we need so we'd appreciate your support on this and thank you and answer any questions if you have any. Any questions for Mr. McFarland? Thank you.
Gail Griffin
State Representative. Committee Chairman
Spencer Camps. Spencer here. Can't see him. And if necessary, Cheyenne Walsh. Not necessary. No. OK. All right. Any questions from the committee? Mr. Vice Chair, would you move the bill, please? Madam Chair, I move that Senate Bill 1134 be returned with a do pass recommendation.
Thank you. Would you move to strike all Griffin amendment? Madam Chair, I move that the Griffin strike everything amendment dated 3-21-25 at 2-43 p.m. be adopted. Thank you. I've heard the motion. Any further discussion? Seeing none, all those in favor signify by saying aye. Aye. All those opposed say nay.
If ayes appear to have it, do have it, so ordered. Would you move the bill as amended, please? Madam Chair, I move that Senate Bill 1134, as amended, be returned with a do pass recommendation. Thank you. I've heard the motion. Any further discussion? Seeing none, please call the roll. Representative Carter? Aye. Representative Contreras? Aye.
Teresa Martinez
State Representative, District 16
Madam chair, yes This is a real important bill to Pinal County as you know, it's ground zero for for water We need all the help we can get I am thankful for all my colleagues in the work on this and
and particularly thankful for Supervisor Miller, who's been steadfast and probably the best water buffalo I've ever met. Also, to my dear friend, Craig McFarland, with that, I enthusiastically vote aye. Thank you. Representative Mathis? Aye. Representative Pescatore? Aye. Vice Chairman Lopez? Madam Chair? Yes. Well, can I say that Representative Martinez already hasn't, but with that, I also say aye.
Gail Griffin
State Representative. Committee Chairman
By your vote of nine ayes, one absent. You have passed Senate Bill 1134 as amended with a do pass recommendation. Thank you. We'll move on to 1236.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1236 authorizes stormwater that will be recharged in a constructive underground storage facility as a permitted source of water for an applicant to claim and use to be issued a water storage permit. Additionally, it would authorize a permit holder of a water storage permit to recharge that stormwater within the underground storage facility and be debited a replenishment credit. The bill requires the director of the Arizona Department of Water Resources to annually determine the quantity of stormwater recharged by an individual store
and credit 95% of the volume of recharged water as replenishment credits. It prescribes how ADWR is to conduct the accounting of these replenishment credits and Senate Bill 1236 additionally allows for the use or transfer of replenishment credits to any other eligible entity and the credit to upon use then to offset the credit holder's replenishment obligation within the same sub-basin for any year if certain requirements are met.
Additionally, it mandates that replenishment credits be treated as groundwater and not stored water. And finally, it authorizes the director of ADWR to issue a water storage permit that is either solely for the storage of stormwater or a combination of water sources. And with that, I'm available for any questions. Any questions for Corbyn? Thank you, Corbyn. Reed Bailey.
Fareed Bailey
Salt River Project Rep
Good afternoon, Madam Chair, members of the committee. For the record, Fareed Bailey, representing Salt River Project here in respectful opposition to Senate Bill 1236. I've spoken with the proponents of the bill. We appreciate the sincere intent behind this bill to enable more efficient use of available water resources. Similar to prior years, we remain concerned with any proposed legislative language that we believe could result in a diversion
of appropriable surface water to which other users, including farmers, cities, homeowners, and SRP itself, among others, already have a right. I think the fundamental question here is, where is that water going today? If it's going into the ground, then it's already recharging the aquifer, and it's part of the AMA picture.
If it flows in a channel and flows downstream, then it's appropriable surface water that's already spoken for. There are several issues that we see with the bill, at least in its current form. First, it does not define stormwater, which leaves in place our concerns related to conflicts with vested water rights. Second, it potentially double counts stormwater recharge.
that is already factored into ADWR's existing groundwater models. It's worth noting that ADWR does not currently consider stormwater as an acceptable water source for recharge, stating that it has to be deducted for the purposes of calculating long-term storage credits. Lastly, the bill as drafted directs DWR to make a prescriptive determination that 95% of the total recharge stormwater materializes as an aquifer benefit, which we,
consider somewhat of a large assumption when compared to the volume of credits that would be earned on paper. This legislation doesn't really specify how these credits could be reliably measured, and a lacking data-based analysis, any such overestimation, we think undercuts storage-based investments that other entities have already made.
So for the reasons stated, we respectfully urge a no vote. However, we would welcome an opportunity to work with the proponents to explore whether there's a pathway for the concept in some form. Thank you for the opportunity to testify, Madam Chair. I'll be happy to answer questions. Thank you. And since this is the Senate President's bill, I'm sure he would sit down and work with you on it.
Nick Kupper
State Representative, District 25
Any questions for Fareed? Yes. Thank you. Thanks, Fareed. You mentioned that the bill potentially double counts. Did you use the term potentially because it's an assumption or because it does sometimes, sometimes it doesn't? What were you thinking on that one?
Fareed Bailey
Salt River Project Rep
Yes, Madam Chair, Representative Cooper. As I said, stormwater is already factored into ADWR's existing modeling under this system. It's not clear to us whether you're double counting as a result under this new scheme that we're trying to understand. Madam Chair? Yes.
If ADWR already counts stormwater and this is talking about crediting stormwater, what would make it more clear, I guess, if you could help me out? Madam Chair, Representative Koepper, so this creates a new form of credit that we're still trying to understand. So welcome to explore options. I'm not sure what the solution would be at this point. Madam Chair? Yes. Thank you. Did I hear right that you mentioned
Nick Kupper
State Representative, District 25
a version of this bill has come multiple times in the past.
Fareed Bailey
Salt River Project Rep
Madam Chair, Representative Cooper, there have been stormwater-related bills introduced over the years, and the core issue tends to be stormwater is already appropriable surface water. It already has an end-user in most cases. So we're not sure what this is really trying to capture, but our concerns historically have centered around that premise.
Nick Kupper
State Representative, District 25
Madam Chair, final question? Yes. Thank you. So it sounds like this is something that you guys have had some time to think about, the overall concept. Maybe not this exact bill, this is a new bill this year, but the general concept of this. And you also mentioned, and I appreciate it, that you said you'd be willing to work with the sponsor. Since it has been years that there have been bills like this, have you guys not formed kind of an idea of a way forward with proponents of bills of this yet?
Fareed Bailey
Salt River Project Rep
Madam Chair, Representative Pepper, please, since I've joined SRP, I haven't really seen any like conservative stakeholder process that would lead to that type of pathway. As I've said, we're not closed to the idea of some sort of concept around this. It's just we haven't seen a form that we can support yet.
Thank you. And we, Madam Chair, Representative Pepper, we are working with some partners on a demonstration project involving stormwater-related technologies. So, we've kept that up in mind. Any other questions for Fareed? Madam Chair? Yes, Representative Liguori. Thank you. Fareed, with the credits, like,
Sarah Liguori
State Representative, District 5
Can you elaborate on, if I collect water, you know, my son puts a bucket out every time it rains, what can you do with these credits from the rain that you've, the stormwater that you've collected?
Fareed Bailey
Salt River Project Rep
Madam Chair, Representative Liguori, again, new category of credits that we're trying to understand. My understanding is that this is trying to offset the replenishment obligation of whoever would take advantage of it. It's different from the long-term water storage credit framework that is typical of this. So,
Patty Contreras
State Representative, District 12
I'm still trying to wrap our heads around it. Okay. Thank you Yes analogy there so we have a bucket collects the water and If the bucket weren't there the water would be going into the system. So we would have credits for That water instead. We're taking that bucket out of the system. So it's really not
making more water and just because I have this bucket doesn't mean I should get those credits.
Gail Griffin
State Representative. Committee Chairman
Madam Chair, Representative Contreras, correct that that would be diverting water that would otherwise go into natural channels or whatever, you know, other structures. That's already accounted for. And to that point, you know, much of the much of the rainwater that we get evaporates before we get it into the ground. The Department of Water Resources has already stated that that 95%
Evaporates before it gets into the ground So this is a way to get to catch it and put it and quantify it put in the ground And get credit for it. So that's pretty much The way I read the bill Madam chair. Yes. Thank you, madam chair Is it true that this would also apply outside of the AMA is where there's no replenishment obligation I
Fareed Bailey
Salt River Project Rep
Madam Chair, Representative Mathis, we read it broadly, so. So yes? Yes. All right. Thank you, sir. Thank you for reading.
Pamela Carter
State Representative, District 4
Madam Chair, a question for you. So which areas would this affect with the storm? Is this Maricopa County? Is this Pinell? All counties? What areas would this cover?
Fareed Bailey
Salt River Project Rep
Madam Chair, Representative Carter, we read this as having impact statewide. It's not clear to me what specific beneficiary regions are intended, but this could be conceivably applied broadly. Thank you. Thank you. OK, thank you for reading. Michael Monte.
Michael Monte
Arizona Municipal Water Users Association Rep
Good afternoon.
Madam Chair, members of the committee, I'm Michael Monti here for the Arizona Municipal Water Users Association. We're here in opposition to this bill. I would simply echo Mr. Bailey's comprehensive testimony on those points regarding the lack of definition and the nebulousness of the stormwater term, the double counting possibility and recharge, the uncertainty about who owns the stormwater runoff,
and the fact that it creates an unnecessary new credit system. I think that the AMWA position on this
more succinctly is that this is premature legislation. Maybe a good idea, but that it's being implemented too soon because there are many questions yet to answer about how much of that water can be counted versus what's already counted and about ownership and those other issues. In point of fact though, there is a study, a collaboration with ADWR and our three universities
that is working on studying that issue right now. It's called the Arizona Tri-University Recharge and Water Reliability Project. And so our position is that type of research should be allowed to play out more before legislating a credit system that really relies on precise understanding of where the water winds up before we legislate a system for creating credits for it.
Michelle Van Quatham
Law Office of Michelle Van Quatham
So we are in opposition to this as it stands now. And with that, I'll take any questions. Any questions? Thank you. Thank you. Michelle Van Quatham. Chairman, committee members, I'm Michelle Van Quatham of the Law Office of Michelle Van Quatham and I was asked by
Camarata Ranch, the owner of Camarata Ranch, I'm surprised to come speak to you today. And I authored this legislation and will answer some of the questions that you had about location. This is only for the providers and potentially member lands of the CAGRD. It references the replenishment obligations, which are primarily, you know, Phoenix, Pinal, and Tucson AMAs.
What this is intended to do is to provide an incentive for something that people aren't doing right now, which is capturing stormwater when we have it. It's very rare, but it does happen, and give them an incentive to make the investments and the operation and management trouble.
to get that water into the ground to recharge groundwater where it's taken out. There are restrictions on the area. And the type of credit that they get through this program is all of the mechanisms that this program uses are already set up. This doesn't add much of anything. There are already extinguishment credits that work exactly the same way as the replenishment credits would in practice. They're not the same thing.
The replenishment credits would be something that DWR tracks. It already tracks other types of credits. They would allow a provider who has to pay CGRD to replenish in some place where CGRD decides to replenish. They would allow the avoidance of paying that charge if the provider can prove that through their own investment, their own efforts, they are getting their own water into the ground. As far as the objection that was lodged about the definition of stormwater, I know what stormwater is.
It's what falls from the sky that isn't effluent, that isn't surface water, that isn't groundwater. Surface water is a very specific definition in the statute. And at the point at which it becomes surface water, then it would no longer be stormwater. So that's not a barrier to approval of this program. That's not a term that necessarily even needs to be defined. The program will benefit the local groundwater aquifer because it will offset groundwater withdrawals right where they occur.
The incentive should also be effective because CGRD currently charges those water providers, including potentially some of the ones that are in AMLO, although some of them do self-replenish already, but it charges those who require replenishment services in the 2024-2025 fiscal year $856 per acre foot to replenish
an acre foot of water. A city that takes the initiative, does all the things that the Department of Water Resources tells it to do, does all of the things that Department of Environmental Quality tells it to do to treat this stormwater as it should be treated to get it into the ground effectively,
then they will be rewarded by avoiding that charge that they would otherwise have to pay to CAGRD by showing CAGRD. I really don't think I have too much to add, but if you do have questions, I'm here and available. Any questions? Madam Chair? Yes. Did you work with the stakeholders process with SRP? I have talked to SRP after it was drafted, but no, I was just asked to draft the testimony. I'm a mere caveman lawyer.
I did not organize this matter. I just wrote the legislation at request of a client. Madam Chair? Yes. Who is the client? Camerata Ranch and Surprise, the owner of the land. Madam Chair? Yes. And who are they? They're an owner of a land that would like to see, frankly, and I hesitate to say this, they'd like to see more effort spent on groundwater recharge with stormwater in the Surprise area.
Gail Griffin
State Representative. Committee Chairman
because we've been seeing other states in the vicinity doing a lot more than Arizona. And I'd like to see that statewide. We've been talking about that. As a matter of fact, the Department of Water Resources and State Land Department identified 331 sites in Arizona for recharging. Madam Chair, a comment. I would also like to see that in Pinal County specifically. Statewide, absolutely.
Nick Kupper
State Representative, District 25
Yes. Thank you. So I represent and live in Surprise. What land, where is the land of the alien in Surprise?
This is embarrassing, but I do not know because this particular landowner owns a lot of other parcels too, but I don't know. I apologize for that. We can get that information for you. Thank you. A follow-up? Yes. Thank you. To the best of your knowledge, is the term stormwater defined anywhere in statute?
I do not think I'd search for that. I would have to search. Madam Chair? Yes. Thanks. So you mentioned that you don't believe it needs defined because other things are defined, and so I would assume what you're going by is if everything else is defined, you can assume what's not defined is this. I would argue and push back against that, though,
The words we use in our bills matter very, very much so because I think we need to do the best we can. We'll never make a perfect bill, but I think we need to do the best we can to not leave things up for interpretation. Would you be open to adding a definition of stormwater?
Michelle Van Quatham
Law Office of Michelle Van Quatham
Absolutely. And just thinking about it, there may be a definition in the Department of Environmental Quality Statutes, but I'm not sure. Because they do use that term throughout their rules. We use that term to that effect all the time. So if it's not defined, I think it's defined someplace, but we'll get that information. Absolutely.
Gail Griffin
State Representative. Committee Chairman
And if we're only saving 5% of the rains that we get now, just saving another 5% would be sufficient and really, really important. Any other questions? Thank you for being here. We have beyond another bill as well, I believe. Spencer Camps walked in if necessary. Okay. All right. Any further discussion?
Okay, Mr. Vice Chair, let's move the bill. Madam Chair, I move that Senate Bill 1236 be returned with a do pass recommendation. Thank you. Any further discussion? Seeing none, please call the roll. Representative Carter? Pass. Representative Contreras? Nay. Representative Heap? Aye.
Sarah Liguori
State Representative, District 5
Madam Chair? Yes. As a representative of Surprise, I'm going to vote aye. Thank you. Representative LaGuardia? Madam Chair? Yes. There's been a lot of outreach on this bill and a lot of the themes are at all
It won't do anything to help water-scarce areas. The fact that we can't define credits and that experts in the room don't understand what the bill is, language is getting at. It could increase pumping. I think it goes against kind of everything we're doing when we're looking at water management here. I vote no.
Teresa Martinez
State Representative, District 16
Madam Chair, yes, I Did talk to the to the Senate president and told him I had an issue and I expect him to correct that issue And I told him that today I will be yes However, I reserve the right to change my vote on the floor if he does not correct my issue so with that that's a yes Nay
Secretary
Representative Carter.
Pamela Carter
State Representative, District 4
I think this bill needs a lot more work. In definition, there's 197 people against the bill. SRP is against. I'm a little concerned. I think it needs more work. I'm going to vote aye because it's a Senate president's bill, but I would love to see one of our representatives here work on further definitions. Thank you.
Gail Griffin
State Representative. Committee Chairman
Thank you. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye
6 with a do pass recommendation. Thank you. 1236 what did I say? Okay. With your vote of 6 ayes 4 nays you have passed Senate Bill 1236 with a do pass recommendation. Thank you. All right. Next bill on the calendar is 1520.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1520 establishes a basin management area designation for groundwater management and authorizes the BMA designation to be initiated in certain groundwater basins through either the designation of the director of ADWR and the director's findings on any provided characteristics or a position that is signed by at least 10% of the registered voters within the boundaries of the groundwater basin.
The bill outlines the requirements, maintenance, reporting, and operation of certificates of groundwater rights and a flexibility account associated with each certificate in a BMA. It prescribes duties of the director of ADWR and the department relating to water rights, regulations, and the functioning of the BMA designation. It requires a Basin Management Council be created in each BMA and outlines the council's membership, duties, jurisdiction, and authorized actions. It provides goals for the BMA and Basin Management Council
And finally, repeals the Wilcox AMA and supplants the Wilcox BMA and additionally requires the director of ADWR to file an order designating the Wilcox AMA as repealed and outlines further requirements of the order. With that, I'm available for any questions. Thank you, Corbyn. Any questions for Corbyn? Seeing none. Thank you. The sponsor of the bill is here. Senator Dunn.
Tim Dunn
State Senator, District 25
Thank you Madam Chair and members for the record. Senator Tim Dunn from Legislative District 25. You heard the explanation and you're going to hear a lot of testimony today. What does 1520 do and why do we need it? Why do we want to put more regulations on an area like Gila Bend that doesn't have it currently? We already have Hualapai Basin in the bill that's covered and it's already in an irrigation non-expansion area.
So those farmers have been you're no more no more well drilling those are those are shut down But they're not limited on the amount of pumping you'll hear some testimony from folks up there Wilcox is represented here. I know and we were seven conversation that basin has been heavily
It's one of the depletion of groundwater is extensive. And so what do we need to do? We're trying to do something better than what the current AMA that's proposed that's being established in Wilcox. We're trying to do something better than the INA that makes it equitable for the whole region. This gives a certificated groundwater right to those people that are pumping and goes back 10 years.
take out the zero years. There's a lot of agreement that we've been working with the Governor's office and Representative Mathis and the leaders in adoration over the last year and a half and we're going to continue to work so. We need to continue to come together as far as what we need to do to help these citizens that want to do something.
You'll hear that this bill is not going far enough, that we should be doing something like Representative Mathis' bill that will add 40% cuts to the offer over 40 years. So you'll hear testimony on both sides of what is the right balance.
And I'm not saying this bill here is perfect but we do want to do something for the citizens that and to protect the landowners the people that are pumping down there because We know that these are the three or the basins that are in peril and we have a lot of conversation What should we do for the rest of the state?
I've been engaging with conversations with folks all around on both sides of the issue, and we can continue to have those conversations. But what we can do is try to work on these three basins, open a conversation with the department. We've asked for a couple of the basins that was in Representative Mathis' bill.
You know, what is it? What is the hydrology in those areas? You know, you know, we need to be factual you look at the basis of where the Hydrology shows us we know that these three bases do Considering looking at those other ones when they give us a hydrology and we talk those conversations So it's very you know
A lot of conversations over rural groundwater and what we should be doing, and this is an attempt to make sure that we listen to the constituents in these three districts, work with our stakeholders, work with everybody on both sides of the, what do you want to call it, the aisle. Water shouldn't be partisan, but there seems to be folks on both sides of the situation that says we're going to
We're not doing enough. We've got to do way more, but we have to at least do something. This is my version of doing something, taking that, the regulations they're asking for. I'm not sure if Ben Hoffman is here, but when the Gila Bend Irrigation District votes to support this bill, they'd rather have this certainty as opposed to an AMA. With certain dairy farmers, this is their livelihood. So these guys want to do something, and so I'm asking for your support
pushing this forward, give us a chance to continue talking about that. Because we want to have the safeguards, we want to control what's going on in these areas while at least stopping it at the 10% and making sure that we have the council set up with the right people that are going to work on that. We've been doing this for two years, I could talk for an hour on this, but we'll answer questions and if you have any questions of me.
Pamela Carter
State Representative, District 4
Any questions? Madam Chair? Yes. Yes, Senator Dunn.
Tim Dunn
State Senator, District 25
You just said that this would affect dairy farmers and who else in that area? This particular bill focuses on the Wilcox Basin, the Gila Bend Basin, and the Hualapai Basin, which is up by Kingman. The Hualapai Basin is already an INA, an Irrigation Non-Expansion Area, and so that only applies to farmers. So the farmers are not limited on the amount of pumping in that area.
They're able, but they can't add any more acres to it. So that closes the basin for agricultural pumping, but nothing else. The AMA in Wilcox, that closes the basin for all new pumping. There's some additional certain things, but I believe there's only a limited amount of reductions. So if the residents are wanting reductions, the BMA gives the certificate of rights so we can do things that's better than what the AMA is down there. The Gila Bend Basin does not currently have
An overlay, but they were being threatened with one last year from the Department of Water Resources because they do have benchmarks that they've hit that is potentially in a Could be an AMA so that that's the one that that would be the only new the new spot But they've asked to do this certainty as opposed to not
This would create a new agency. Is that what you're asking for? It's it's it's within it's still within the Department of Water Resources So it's a it's a management of water. So currently we have the ability to have an AMA like the Phoenix sits in and Tucson and we have
So this is not creating an agency. This is taking the authorization or taking the regulation of the water that's in those areas. Right now they can do an INA, do nothing, or do an AMA. And this is a basin management area, so they give the director or the citizens the petition by vote the ability to control some of their destiny.
Pamela Carter
State Representative, District 4
Senator Madam Chair senator So this would give them more the more ability to request by by a vote Being able to pump more water into these areas that need a
The water supply for farmers ranchers dairy or would you sit or agriculture. There is no agriculture involved in this.
Tim Dunn
State Senator, District 25
Madam Chair, Representative Carter. No, there's agriculture in all three of these areas. So it's actually putting regulation, a different type of regulation on these two areas. There's two of them already have it, one of them doesn't. And then there's other areas that you'll hear testimony on that would like to have something. So this gives the authorization to either the director to actually do it. The director could just say, yeah, this meets the qualifications that's in the bill. And we know that they meet the qualifications. And then the director could do it if the director chooses not to.
then the citizens can take 10% and go out and get a petition and say we want to put this on our area. It's only right now in this bill restricted to these three areas. You'll hear testimony that they would like to have it expanded across the state and we'll have those conversations but the bill that you're voting on today is restricted just to those three.
Gail Griffin
State Representative. Committee Chairman
Thank you. Thank you. And to that effect, we've been working on this for a couple years. Last session, we had over 112 meetings on it. So we have the non-expansion irrigation district. We want something maybe a little bit more than that. We have the AMAs that don't necessarily work for rural Arizona, something less than that, but have local management.
Tim Dunn
State Senator, District 25
So that's the goal. Thank you. Madam Chair, we've had, we have, you'll hear some testimony from different folks that are trying to, trying to get to a solution that we know that there, we're still having negotiations and we're still working on that. And so we didn't provide, we had the one amendment that you did, that you are putting up.
But that's just some small technical stuff. The bigger conversation, we didn't want to try to pick and choose which amendments that we, Mr. Chair Griffin and I agreed to. So there's going to be more conversation. There will need to be a COW amendment. And so there will have to be a lot of conversation. I keep saying prior to, right up until the week we sign it, I, is when we would probably hopefully get an agreement, maybe before then. But that's, you know, so we can further explain it if you can help me get it out of committee.
Gail Griffin
State Representative. Committee Chairman
Thank you. And we've been meeting with the Democrats and Republicans and the ninth floor and stakeholders, a wide variety of stakeholders. Thank you. Madam Chair. Yes, you have a question for the sponsor? I do, Madam Chair. Okay. Thank you. Senator, welcome back.
Chris Mathis
State Representative, District 25
As you mentioned, and you have touched on this, but I just wanted to expand it a little bit. And as you've mentioned, Madam Chair, we are still in the process of having discussions and negotiating, yet this bill is, it's a bill and it has, you know, concrete provisions.
How should we approach this hearing today given that and given that this this is still in flux I know we're gonna hear a lot of testimony from folks on various aspects of it, but But that is the that is the situation and you were talking about we may well be Talking about this up until sine die last year. We got up to sine die and we weren't done yet and so he had a bill that was sent up it was vetoed and and now here we are again and
So I just wondered if you could touch on that, and also, Madam Chair, if you would wish to, just as kind of where we are in the process.
Tim Dunn
State Senator, District 25
Madam Chair and thank you for that question, Representative Mathis. We have to have, we need something to negotiate on. We don't have, technically we don't have to. We could be getting an agreement and then we could petition, the governor could call a special session and now then you have to get the president and the speaker to agree to not just gavel in and gavel out. And so if we do get an agreement, that is that pathway. I've had that conversation several times even today. It's like why can't, why do we have to keep moving this forward? We're afraid of just putting something on the governor's desk.
I think it gives us something concrete that we can work around this framework. We continue to have the amendments language. We continue to know where we're at. And we, in good faith, kind of continue negotiating and know where, you know, because we have folks that are concerned on both sides of the aisle that what is this bill going to do? How are we going to go too far, not enough? And so this is the framework we can move forward so that we can kind of continue to have those conversations back and forth and continue to debate it between us as we grow, go through and get our stakeholders process. And so it just keeps us focused.
And so And my goal would be that we could Because because I'm hearing from people and all these residents in these areas that we wanted we don't want to do nothing Again, we need to do something even if it's for just these three And so you know so like we we wait to wait for perfect or do we get instead of good or do we? And or we continue to kick the ball down the road
Chris Mathis
State Representative, District 25
And we've also talked about going out to the different areas that are affected and talking to the people there as well. Yeah, Mr. General, I told you that's a work in progress. Yeah. Right. And thank you, Madam Chair. I appreciate that. And it is a work in progress. And this hearing at least allows us to have some discussion that is based on this version, but comes into play with the various other aspects of the framework that we've been talking about for the past couple of years. So I appreciate that.
Tim Dunn
State Senator, District 25
Madam sure and it's good to have public testimony It's good to come in and because we've been meeting I think I've been meeting with I haven't turned down a request for people to come in and talk about this bill since we started a session so we have all kinds of folks on from both sides of the you know trying to do things so in this and this gives a forum for public public concern to people out there watching could say you know we're doing something we're trying and then they listen to something came back and give us feedback and continue to ask for meetings and whether in those stakeholder meetings Thank You senator. Thank you, ma'am. Thank you
Gail Griffin
State Representative. Committee Chairman
Okay. Corbin, would you want to explain the Griffin Amendment?
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Of course, Madam Chair and members, there is an amendment in the Chair's name dated 3-24-25 at 1114 a.m. that clarifies that current groundwater withdrawal is the reason for certain events in one of the Director's findings that can be used to designate a BMA, that prior to an election for the designation of a BMA, the Director shall hold a series of public meetings with certain criteria. It additionally provides specific data required to be presented by the Director at public meetings during the BMA designation process.
It alters what's included in substantial capital investment for irrigation users and alters the authorized regulations that a Basin Management Council can adopt in the BMA management plan. Without the bill, for any questions on the amendment. Any questions for Corbin? We'll move on to speakers. Stephen Kissel.
Steve Kissel
Resident and Domestic Well Owner in Wilcox Basin
We have set up two minutes for testimony so we can hear everybody. Welcome. Thank you, Madam Chair, members of the committee. My name is Steve Kissel. I'm a resident and domestic well owner in the Wilcox Basin. In early January of this year, Wilcox Basin was officially designated an AMA. Our basin is now closed to new irrigation. We are finally on a path that has the potential to reduce our significant overdraft.
We know it will take a number of generations to make necessary changes, but residents in the area now feel a renewed hope that our water future will be more secure. But much work is left to be done. We've said all along that changes need to be made to the AMA framework to better address the specific needs of groundwater protection in rural Arizona. We need more flexibility.
We need more local input, because every basin is not the same. We need more local input in the decision-making process, and we need new tools and additional resources. We hope the legislative process could help address these needs. Unfortunately, this latest bill, the Basin Management Area, SB 1520, this falls far short of what we had hoped for, and it is clearly the wrong solution to replace an AMA in a place like the Wilcox Basin.
After carefully reading SB 1520 multiple times, it became obvious to me that this bill does more to maintain the current levels of groundwater depletion than it does to reduce the actual overdraft. Simply put, this bill will leave the Wilcox Basin high and dry. There are numerous provisions in this bill that constrain the local council's ability to effectively manage our groundwater.
and meet the needs of the basin in terms of groundwater reductions. But the most troublesome aspect of this bill are the prescribed limits of 10% on required reductions indefinitely, if I'm reading it right, and the absence of meaningful tools and resources to realize any significant voluntary reductions. Because if you can't do it all with required reductions, you're gonna have to get some voluntary reductions.
I don't have time to go into all the specifics in my two minutes, but it is clear to me that with the constraints put on required reductions, a lack of committed resources, and tools for voluntary reductions, the Wilcox Basin will never attain combined voluntary required reductions much greater than 10%. That is simply a death sentence for the Wilcox Basin.
Chris Mathis
State Representative, District 25
Thank you for your attention and I'm happy to answer any questions. Any questions? Yes. Thank you, Madam Chair. Good to see you again, Mr. Kissel. You mentioned tools and resources that would be useful for you in any sort of legislation of this type. Could you go into a little more detail about that?
Steve Kissel
Resident and Domestic Well Owner in Wilcox Basin
Sure, sure. A few things I see that are blatantly missing within the framework listed in 1520. One is clear, there's no dedicated funding source. Clearly, we're going to need funding to make a lot of the changes we need. The voluntary tools in the basin are quite limited. We've got a situation where we have a 350% overdraft.
And to reduce that overdraft, we're going to need voluntary and required reductions.
In the voluntary category, I would put things like a cut to the aquifer with any transfer or conveyance of water. We talk about flex credits within this bill. Those flex credits can be sold in this bill, and there's no cut to the aquifer when that sale is made. The same thing with any conveyance. There's only one condition in this aquifer for conveyance.
that offers any cut to the aquifer and that's 15% for just for just for Conveyances from agriculture to municipal or industrial So those are those are a few of the examples that we could use madam chair. Yes, I call for the question So that we can vote on this if we might we have a lot of people that came a long way to
Gail Griffin
State Representative. Committee Chairman
No, we haven't I caught by calling for the question I'm asking to no longer out of order There's there's too many people here that have traveled a long way Madam chair with your permission, I'd like to ask if we could limit their response to one minute
Chris Mathis
State Representative, District 25
Let's go with two minutes, see how far we get. But if you can, without repeating everything, let's go ahead. Madam Chair? Yes. Mr. Kisly, you also referenced that you feel that the 10% max reduction is inadequate. Can you talk about that a little bit?
Steve Kissel
Resident and Domestic Well Owner in Wilcox Basin
Well, as an example, my well has been going down four and a half feet a year for the last 30 years. We've had deep in it. We have other areas of the basin that are going down 10 feet a year. So our reductions are significant. Those are big reductions in annual depletion and decline in water levels.
And we're dealing with a 350% overdraft. So that means three and a half times more water's been pulled out of the ground water now than is going back in. You simply can't offset the amount of water. A 10% reduction in pumping
would roughly be, you know, I don't know the exact numbers because, you know, we haven't gotten all the irrigated groundwater, the grandfathered rights established yet, but I'm guessing 10% would be somewhere on the order of 18,000 acres. Our overdraft is closer to 100,000 acres. I'm sorry, acre feet, I said acre, I meant acre feet.
So clearly 10%, and the way this bill is written, you might even be lucky to get 10%, especially in any, there's so many, I would say, unreasonable constraints on the hydrological conditions when you go to subsequent management plans after the first management plan that would allow the council to increase the amount of reduction.
If they hadn't already reached eight ten percent, but I believe the bill actually caps it at ten percent ever But let's say after the first measure plan, you only had eight percent The only way you could increase that in the second management plan would be if the basin was dropping Across the entire basin. I mean a mean decline of five feet per year time. That's huge Thank you, sir. Thank you, ma'am. Thank you. Yes a comment, but feel free to you know
Sarah Liguori
State Representative, District 5
add anything to this. So the maximum 10% reduction in groundwater pumping indefinitely is not enough, we're hearing. But also reading the language in the future, the council can adjust reductions between zero and 10%. So it's not even that we're shooting for 10%, which is being described as not helpful, but it could go as low as 1% in the future. Right, and they also have the option to lower it, which is fine if you're meeting your goal.
Steve Kissel
Resident and Domestic Well Owner in Wilcox Basin
But there's no language in there that says that they have to be meeting their goal to be able to do that. I think it's very unlikely they would do reductions if they weren't meeting their goal, but it does seem to be possible under the language. Mr. Kissel, you're saying the AMA doesn't work in Wilcox?
Well, actually it's working great right now because I can't tell you how many times I would leave the house I do a lot of bicycling in the area how many times I would see the the big Earth movers pulling out mesquite and clearing land and we know what they're doing. They're using it for it's not for development It's not for housing. Trust me. I
So the AMA is working? The AMA is certainly helping in terms of keeping new irrigation from starting up. That's for sure. It's too early to know if it's working because we haven't even established the irrigated IGFRs, the Irrigation Grandfathered Rights. But I have hope that under a subsequent AMA that we'll have a little more flexibility than they had in the initial AMAs. But it's still not enough. There's a lot of things lacking in the AMA that we'd like to see.
Rona McMillan
Resident and Co-owner of a Vineyard and Winery in the Wilcox Basin
Thank you. Thank you. You bet. Thanks for being here. Rona McMillan. Madam Chair and committee members, my name is Rona McMillan and I am both a resident
and the co-owner of a vineyard and winery in the Wilcox Basin. And I'm here today in opposition to 1520. As a small farmer, I recognize that the AMA designation is not the optimal solution for managing rural groundwater.
And more effective legislation is required to address the dramatic depletion of water from the aquifer, while also providing some flexibility for farmers to transition to an economy that's more suitable for the water realities of the 21st century. And also securing a stable water supply for residents. And 1520 just doesn't meet those needs. The first and most glaring inadequacy is just what Steve was talking about.
The conservation goals are not going to get us to where we need to be. The 350% overdraft is not going to be dramatically impacted by a mere 1% per year or 10% reduction over the first 15 years. The second one size fits all approach that is being proposed for regulating irrigators
Sounds like it would be really fair, but it's imposing the same requirements on a small farmer that is growing a low water use crop and using great irrigation practices as is one that is growing a high water use crop and perhaps doing nothing to mitigate their impact.
And thirdly, I think that this transfer of water rights and having no opportunity to return any portion to the aquifer is a huge missed opportunity. So I think there's a lot of work to do, and I urge the committee to work on a more bipartisan solution to addressing what we need in the Wilcox Basin. And I can answer any questions.
Sarah Liguori
State Representative, District 5
Thank you. How much land do you have in your vineyard? We have 20 acres. OK, thank you. All right, any questions? I have a quick question. Can you talk about the inequities that you described between the large irrigators and a business owner like yourself? Yeah, so vineyards are a low water use crop. So grapevines use maybe an acre foot, acre foot and a half of water.
Rona McMillan
Resident and Co-owner of a Vineyard and Winery in the Wilcox Basin
Our vineyard is right next to center pivots that are using four, five, six times the amount of water that we are using. So under these new regulations, everyone's gonna be required to reduce by the same amount. So everyone has to reduce by 1% or 10%. If you're already a good steward of the water, you're being penalized
versus someone who is using huge amounts of water right now. So I would hope that we can come up with a more equitable framework that supports low water use promise, and would still focus reductions on those that are using the larger amounts of water. Thank you. Thank you. Next. Nick Bonder.
Nick Ponder
Government Affairs
Madam Chair, members, Nick Ponder here on behalf of Mojave County and the city of Wilcox in opposition to Senate Bill 1520. I want to cover four main points in my two minutes. The four points are the flex accounts, the board makeup, conservation limits, and the limited scope. So first we'll talk about the flex accounts. The right system set up in the bill with the flex accounts officially creates a capital market to commoditize water with unlimited banking.
We've already seen this on housing and in water. When the hedge funds come in, the taxpayers lose. We have a concern with that. Two, rural economies are not monolithic. They're not all the same. The way that this bill is set up, every rural basin basically gets two guaranteed seats for agriculture. All basins are not all agriculturally based. So we don't think that that's fair. I've also heard the chair talk often about
the consent of the governed. However, the way that this bill is set up, 80% of the council can come from outside of the basin. That gives us concerns. Item three, the conservation limits under the bill with particular
Steve's already talked about the Wilcox Basin. I'll speak to the Hualapai Basin. Under the Hualapai Basin, we would never reach beyond the 10% conservation limits. The criteria for anything greater would never be achieved. That 10% cut would keep us at a 29,600 acre foot deficit into perpetuity.
Item four, the limited scope, and this is more for Mojave County than, again, it is for Wilcox, the city of Wilcox. Subsequent basins are not protected. We've waited 45 years for rural groundwater management. We can't wait 45 years for further management. The issue that got us into this situation, at least in part, was a lack of protections from out-of-state and international speculators coming in, muscling out generational farmers,
nothing in this bill deters that from happening. Happy to take any other questions. Thank you.
Madam chair. Yes Mr. Ponder. Can you tell us a little bit about Mojave? County and Like expand a little bit on the concerns. Yeah, so great question So the Hualapai Valley Basin and this goes to not all basins being monolithic The Hualapai Valley Basin had just had co-op farms. It was not an agricultural basin Has a lot of other industry in 2011
There was a groundwater analysis. It had a groundwater deficit of about 5,000 acre feet. So you do an analysis of your inflow to outflow, your natural recharge versus your discharge, your outflow. And we had about a 5,000 acre foot deficit at that point in time.
In 2017, the Arabian Peninsula banned the growing of alfalfa. In 2014, I think it was, California passed SGMA legislation regulating their groundwater. After those two incidents happened, we saw the influx of farms moving into the Hualapai Valley Basin.
Between effectively 2015 and 2021, we saw the groundwater deficit go from the 5,000 acre foot in 2011 to a 34,000 acre foot in 2021. 34,000 acre foot deficit according to USGS and the Department of Water Resources. That is what precipitated us to getting the irrigation non-expansion area in December of 2022.
So, that's just a microcosm of, I think, our concern with respect to Mojave County in particular. Our concern about subsequent basins not being protected. In particular, we have the Kanab Plateau up near the border with Utah.
that could potentially need to be protected in the future. This bill would not allow that to be protected going forward. So we would have to wait for future protections whenever that could come. Thank you. Okay, thank you. Thank you.
Lisa Glenn
Resident Wilcox Basin
Madam Chair and honored committee members, my name is Lisa Glenn and I have lived in Wilcox for 58 years with my husband Lloyd. I am neither anti-growth nor radical leftist environmentalist. I have been a friend, an acquaintance, an educator and colleague, a customer and active member of my community. And I, like many others, have been deeply concerned with the great harm done to this community,
the Wilcox community, and are oft referred to Senate Bill 1341, which was passed by Republican majority and signed into law April 14th, 2011. This bill took away our county super's authority to zone specifically industrial dairies and dairy feedlots, making the Wilcox ground basin the only basin denied by our legislature.
the ability to control and regulate our finite water. We now have a mega-dairy, and today we are pumping out over three and a half times the water that is put back into the aquifer, dropping the average depth to water to 458 feet. We are not in this situation because of our ranchers, our small farmers,
our businesses, our residents, but because our desert climate aquifer cannot sustain this tremendous scale of industrial agriculture. Growth, just for the sake of growth, can eventually destroy everything that makes an environment valuable.
So I stand before you today to ask you to vote no on Senate Bill 1520, a bill whose restrictions are so burdensome that it would prevent any basin from being able to achieve groundwater protection. It actively undermines water control and forbids the basin to have mandatory reading, the very tool needed to acquire new data for all basins. Thank you very much for being here. Thank you.
Cheryl Knott
Resident Wilcox Basin
Cheryl Knott. Madam Chair and members of the committee, my name is Cheryl Knott. I've lived in Pierce for 23 years in the Wilcox groundwater basin, LD19, and I'm opposed to this bill. As I was reading through the 19 pages of the engrossed bill, I became perplexed.
The restrictions on groundwater withdrawal were too small to do much good, if any good. There was no accountability or enforcement. There was virtually no local control of basin management. So what's the purpose? And then I saw it. At the bottom of page 18, the bill's purpose is to destroy the Wilcox AMA.
One of the things most troubling, I think, is this sense that somehow this bill allows for local control. But if you look at the makeup of the council, it's really not local control at all. It would be possible, for instance, for a dairy owner in Buckeye to represent someone with a certificate of groundwater rights in the Wilcox Basin.
Or a vendor in Phoenix who happens to grow grapes on the Wilcox bench, but doesn't live in the area. That person could represent an irrigation user in our basin. There would be a municipal user. There would be an industrial user who could be from the industrial dairy out of Minnesota that is pumping
billions of acres out of our finite groundwater source. And then there could be an at-large member who used to be in the legislature and who now is an official in Cochise County and who is definitely against AMAs or regulation as far as I can tell. So I'm against this and I would respectfully urge you all to please vote against this. Thank you for being here.
Sandy Barr
Directory for Sierra Club's Green Canyon Chapter
Sandy Barr. Sandy's not here. Oh, yes, she is. OK. Madam Chair, members of the committee, Sandy Barr and the director for Sierra Club's Green Canyon chapter, which is the Arizona chapter, and we are opposed to Senate Bill 1520.
As you know, Arizona's Groundwater Management Act limited groundwater pumping within AMAs and left groundwater pumping largely unregulated in most of Arizona. This has allowed massive agricultural and sometimes industrial entities to move in and further deplete precious water resources, contributing to land subsidence, earth fissures, and other lower groundwater levels that contribute to wells drying up. This is all at enormous cost to individuals who live in these areas.
We need real solutions, not bills like Senate Bill 1520. Others have covered that it only addresses Wilcox, Gila Bend, and Hualapai, and in effect would weaken groundwater limits in Wilcox.
And so that's a problem in and of itself. It caps the reduction at 10%, which is much less than is needed to stabilize the aquifers in these areas. I just am going to end, because I know I don't have a lot of time, and I want to make sure everyone else has time. We have been accused of being anti-growth. Well, you know what's anti-growth?
Anti-growth is land subsidence, earth fissures, and people's wells drying up. Running out of water is anti-growth. We urge you to reject Senate Bill 1520. Thank you. Thank you, Sandy. I think there's Kendra Faulkner. Is she here?
Gail Griffin
State Representative. Committee Chairman
No. Kathy Thacker? Hicks? Do you have a form to fill out? OK, good. Thank you. Anybody else? Thank you. Good afternoon, honorable chair, committee members. My name is Kathy Tackett Hicks. I've lived in the Kingman area for close to 40 years.
Kathy Tackett Hicks
Resident Kingman Area
I'm concerned about this. I am here to register my vote of non-support for this for several reasons. And the main one, I believe, is that you have lumped in Hualapai with the Wilcox and the Gila. Wilcox and Gila have had problems for decades. The Hualapai is a very new
I think it was effectively stopped with the INA, and that was two years ago. A year and a half ago, the INA came in and stopped the bleeding in that basin. It's going to be a long time before we find out the actual water use for those trees. They're all immature trees. I'm concerned about provisions in this that ask for a 10% reduction.
when you have some of those farmers having a tremendous technology that's already reducing. Another woman spoke about that. You can't beat them up for doing that. Maybe we'll want to put money in upgrading technologies in any or all of the basins. I also believe that having a committee like this is going to be a huge problem because you have five people that are invested because they use water.
I doubt they're going to have the knowledge for what is sustainability. We have to have an agreement on what the goals are. And they're going to have people there on a committee saying, I want to protect my water. And I just think it's a huge problem. In Mojave County, things are very political. And I think that water would be used like that. These provisions are really awesome for industrial manufacturing. They're not awesome for the irrigated users, even if they're doing a tremendous job.
I think the committee would have to be supported by professional staff, maybe from where you are. And also, you put in here for the tree farms that they would start at three acre feet per acre. And if you do that, you will effectively kill off thousands of acres of trees, because they're going to need between three and four. And if you reduce it, it's like suicide for the tree farmers. Happy to answer questions.
Gail Griffin
State Representative. Committee Chairman
Kathy, thank you for being here. This is a work in progress. I think there's been different amounts for trees that are planted now and what they will require at the majority at 3.5 or 3.6, I understand is the figure.
And so those are those issues are being taken into consideration We've been meeting for two years like senator Dunn had stated and I don't know if there's any particular individuals that have Represented the tree farmers. Is there anybody here that represents tree farmers? Okay. Are you gonna speak? Okay I
So this is a work in progress. Like I said, we had 112 meetings on last year's bill. And so we want to get to a point that if we move forward that it satisfies everybody and we come out and talk to the people that we have not talked to yet. We would welcome that. And I've worked with and for the tree farmers for years, and also the industrial manufacturing.
Kathy Tackett Hicks
Resident Kingman Area
I do project development stuff, so all of these things have an impact. Absolutely. And I'm thrilled to know that you're going to take a deeper dive in some of these other issues. And wallopi, if you calculate the water use for the past 10 years, you're going to have a gross inaccuracy in wallopi. Wallopi should not be in this dealing with these other two bases. This is my personal opinion. It should not be in there, because many of these things don't apply, and they're awkward.
Gail Griffin
State Representative. Committee Chairman
And would you be at the table for further discussions? Absolutely. Thank you. The other individual that would like to speak? Would you give him a form to fill out? I signed up in the hall. Oh, did you? Yeah.
Jeff Duarte
Tree Farmer (in opposition testimony)
Madam Chair, members of the committee, my name is Jeff Duarte. I'm here in opposition to the bill. I am a tree farmer in the Hualapai Basin, Kingman area there. Our company is called Peacock Nut Company. We grow 3,000 acres of pistachios.
I'll give you the perspective from the farmer, from this farmer. Kingman, Arizona is going to produce probably the best pistachios in the world. It's not just because of the water, it's because of the very, very cold winters, the very hot.
summers, the solar units it gets, and the high desert, the 3,000 to 4,000 elevation. It represents kind of what people are used to in the Iranian pistachio product, although we don't have the pest pressures and the aflatoxin that Iran does. So people are already starting to request Arizona pistachios because they've got better quality.
So when we come in here to develop an orchard, it doesn't stop with just drilling wells and planting trees. It gets into hotel rooms. It gets into restaurants and buying Ford trucks and tractors and hiring people and supporting the community. And that's what we want to do.
Our development began in 2019, and we're over $100 million invested in the Kingman area. We're probably 25% of everything that's planted. So you can see what the numbers are. There's a lot of investment in industry in an area that needs it, okay? Kingman's a wonderful town, a lot of good people, a little tourism, but not a lot in the way of industry.
This is God's gift to us to plant this raw desert land into beautiful, high-quality, world-class production pistachio orchards. We've got people willing to come here and do this, people willing to invest in this area, and thankfully it's got the natural resources that are required to make the highest quality pistachios in the world.
There's no shortage of water. We've got three massive sub-basins. To cut to the chase, the INA is in place to limit how much we can plant. We are limited. It's capped. We need 20 years minimum to know what the effects of that INA are. The orchards are very young. We need to see how many of these acres will actually be planted and what the actual draw of the mature orchards will be. Will it be three feet, four feet, somewhere in the middle?
Gail Griffin
State Representative. Committee Chairman
Thank you very much for your time. And would you be willing to be at the stakeholders meetings that we have to continue the conversation? For sure. Absolutely. Thank you. Kathy's got my information. Thank you all. Thank you very much. Oh, wait a minute. We have a question. Mr. Duarte, do you have measuring meters on your wells there? Is that something that's reported to anybody right now?
Jeff Duarte
Tree Farmer (in opposition testimony)
Yeah, we measure, we take our static water levels once a month. And is it reported? It's reported. We have to send that in. I think the ADWR requires that quarterly or so. Okay, thank you.
And we've offered to the ADWR and our local officials, anytime anybody wants to do a branch tour and see what these orchards look like, see what water management looks like, what recharge pits look like, what the software programs look like that help us gauge our water usage, we'd love to do those tours. So open that up to anybody in the room here. We might want the committee to come out if anybody's interested in doing that. That would be nice. Thank you. Stephanie Knight, Dubin.
Stephanie Knight-Dubien
Executive Director, Agribusiness & Water Council of Arizona
Madam Chair and committee members, my name is Stephanie Knight-Dubien. I'm the Executive Director of the Agribusiness and Water Council of Arizona. ABWC was established actually in 1978, and we're a non-profit association. Our membership is from the dish bank to the dinner plate. We represent many folks who have been impacted by the rural declining basins. We like to see legislation that actually makes it across the finish line this year.
ABWC is neutral on SB1520 because there are a number of things that the bill did not include. The problem's been a long time in the making and legislation needs to be worthwhile and solve problems. This type of legislation is absolutely necessary to address the mining and the state and we need to treat each basin separately.
include basins that are asking to be concluded, and they work with stakeholders that are asking to be included as well, and they're addressing their concerns. ABWC would like to thank the bill sponsor, Senator Tim Dunn, Madam Chair Griffin, and the Governor's Water Council for all the time and effort that they've been putting into addressing this important issue. No bill is better than a bill that does not address everyone's concerns, and we're solving a lot of problems that are in rural groundwater in Arizona.
Gail Griffin
State Representative. Committee Chairman
We ask that negotiation and compromise continue and to meet these needs of our rural communities. Thank you. Thank you very much. Thank you. That's all. We have signed in. Others are signed in if necessary. Is it necessary for anybody? Yes? I'd like to sign in. OK. Come on in. What's your name?
The name is Louis Manuta, M-A-N-U-T-A. I signed in earlier today. I don't have you, so would you fill out a form? You haven't? Okay, okay.
Lou Minuta
Resident Wilcox Basin
Yes, proceed please. Thank you. Madam Chair and committee members, my name is Lou Minuta and I reside in the Wilcox Basin. My wife and I moved here in 2020 and as ADWR's measurements recently discovered, our less than five-year-old well has already gone down 15 feet.
This is unequivocally and indisputably due to the overpumping by the industrial agricultural users that have taken over our valley. Let me repeat that. The residences and the local family owned farms, ranches and vineyards are the victims and the abusers are the industrial agricultural users.
I know a lot about victims and abusers. I retired last year as a legal aid lawyer who for the past several years represented domestic violence survivors. The abusers' lawyers always brought into court their courtroom theater with them even when they knew they had no case. And I truly believe that is what's happening in this room today as well. The sponsors of this bill know that
1520 provides virtually no relief from dwindling groundwater supplies, but they want to provide legislative theater to make it look like they're doing something beneficial to constituents. Believe me, it does not. I traveled three hours from Cochise County to here with my friends and neighbors and
to personally express my opposition to SB 1520. Let me give you two reasons why the bill is not the answer to the groundwork challenges facing the Wilcox Basin. Under the proposed Basin Management Area, industrial users would not be required to meter their water use. Rather, they would only need to estimate their water usage to ADWR.
What incentive would an industrial agricultural user have to tell the truth about the water usage when the enforcement mechanisms are vague at best? Further, my conversations with neighbors show overwhelming support for local control. However, the proposed BMA creates a five-member governing council, but only one member of the council is actually required to live in the Wilcox Basin. So what do we do from here? I urge this committee to scrap the entire
10 seconds and to work on a true bipartisan basis to better ensure a stable water supply in Wilcox Basin for this in the next iteration No more legislative theater. No more power to the abusers. We need real solution Please wrap up water is life Thank you Yes
Patty Contreras
State Representative, District 12
Thank you, Madam Chair. Mr. Minuta, thanks for coming up from the Wilcox area. I have some friends down there, and they were also complaining about their local well. They just live there in their local well, kind of dry enough where they're having to drill deeper and all. You mentioned the industrial agricultural users. What type of crops are out there in that area right now that are these industrial users?
Lou Minuta
Resident Wilcox Basin
Well, a lot of it is alfalfa and winter wheat that they use to feed their livestock, and has been previously testified here. One of the largest feedlot has, I believe, over 150,000 heads of cattle. And so it's not only water for them, but water to grow the crops. And the other large industrial users are the tree farms.
tree farms is a problem with taking absolutely no measures to reduce their water usage. And that has been the problem. They make up the vast majority, I would say over 90% of the over-pumping is because of the feedlots. There's one company that owns two of them there and the orchard growers who don't even put any kind of restrictions on their water use.
Patty Contreras
State Representative, District 12
And Madam Chair. Yes. Mr. Minuta, I've been up and down some of those roads over there by Sun Sites and Wilcoxon area and seen some of the subsidence and everything in that area too. What kind of trees are in these orchards? Nut trees? Citrus trees? Primarily the pecan and pistachio.
Sarah Liguori
State Representative, District 5
Thank you. Thank you. Thank you for being here. Madam Chair, I do have one question. Yes. Mr. Minuta, I know that
You know, we say water shouldn't be a partisan issue, which it shouldn't be if we're working for a holistic, long-term, sustainable goal for everyone. I know that Cochise County has been particularly active and vocal. I'm just curious, and I know there's not even alignment in some of these groups down there either.
And that's okay. I am just curious if you could give us any sort of descriptors or sense of what is the sentiment down there in Cochise County when it comes to your future, your neighbor's future, the town's future when it comes to water, like if you could just describe to me, so I can get a feeling as if I'm there, you know, right now in the middle of these discussions, like what are the feelings?
Lou Minuta
Resident Wilcox Basin
Well, I would say that they're mixed and there's an understanding that there is a problem. And people who didn't think there was a problem certainly knew there was one when one of the wells for the city of Wilcox actually went dry.
just in the last year. I think the real differences of opinion is what to do about it. As we all know, there was an AMA vote in the Wilcots Basin, and one of the main reasons why it went down was a really concerted misinformation campaign where people who live in the Village of Sunsides were explicitly told, this doesn't apply to you, you got inadmissible water.
Well, where does the municipal water come from? It's just a different straw in the same aquifer. And there was other allegations made that, oh, even if you have an exempt pump, you're going to need to meet a ratoon. There's going to be restrictions on you. Obviously, none of this was true. So there's just a lot of distrust. But that distrust is couched by a sincere understanding, I believe, of all the residents.
Sarah Liguori
State Representative, District 5
in the Wilcox Basin, that something needs to be done and not, well, let's do a study, let's look at it. No, something needs to be done now. Thank you, Madam Chair. So just as a follow-up, if I could, is this accurate? So confusion, concern, but really a sense of urgency as you're watching this unfold in real time in your lives.
Mae Peshlakai
State Representative, District 6
I think those three are great examples of what it's like down in Wilcox right now. Thank you. Thank you. Madam Chair, I have a question, sir. So these livestock owner ranchers, how long have they been in business or have they all been living there for a long time?
Lou Minuta
Resident Wilcox Basin
Well, it depends on where in the basin that you're looking. There are a couple of very old, 100 years plus old, ranches north of Wilcox, still in the city of Wilcox, still in the basin that have been there for generations.
But there's also a lot of smaller ranches. Those are family owned, but we're talking about really small family owned with maybe like 50 heads of cattle that they have on their ranch. And they don't have the wherewithal to be able to just pick up shop and go somewhere else if their well goes dry.
And that's why I was saying that they're not the problem. The vineyards are not the problem. The small farmers are not the problem. They get it. They don't have the ability to pick up and move from the well that it's drawn. Because you really have two options. One is either you move, or you die there from lack of water. And that's the situation that we're in. Thank you.
Gail Griffin
State Representative. Committee Chairman
Thank you very much. And for that, there's quite a few multi-generation agriculture owners in the valley. Thank you very much. Thank you. Philip Beshaw. You need the mark? OK.
Philip Beshaw
Arizona Farm Bureau Representative
We are the state's largest general farm organization. We have active county farm bureaus and members in all 15 counties of the state. And we are here before you in support of Senate Bill 1520.
First of all, I would like to thank the committee chair and the sponsor of the bill, Senator Tim Dunn, for all the work that they've put into this concept. This is a concept that started several years ago when the Arizona Farm Bureau met with many of our members in these rural communities to find out what sort of solutions they would like to see in rural Arizona.
One of the things we heard over and over again, and I think you've heard from several of the folks testifying here today, both in support and in opposition to this bill, that the AMA is not a great solution for these communities outside of where they exist today. And so we set about trying to find a solution that created
Certainty for water users in these communities that have invested there, that have built their businesses there, flexibility to allow those economies to evolve over time, and balance. Balance between the local control that everyone has talked about without creating an unfettered local council that would have control over these areas, but also to create a balance for those folks at DWR and the Arizona State Legislature that are familiar with these policies and legislation.
You know, today we've talked, you've heard a lot about cuts and the need for cuts and more cuts in these basins. And it's awfully easy to talk about those cuts when those cuts are on paper and they're theoretical. But we had a study done, and for our members, just the agricultural communities in one of these basins, you're talking about tens of millions of dollars of economic activity coming out of these rural areas.
In many of these areas, agriculture is a huge economic driver. And even if it's not, they will be the ones that will have to take the largest cuts. And I don't know about you, but if I had to take a 10% cut in my household income, that would have an impact.
And that would be detrimental and that would be difficult for us. And so that's where this balance comes in. It's finding a balance that helps stabilize these aquifers, finds a solution for groundwater usage in these areas that rely on that for their economic well-being, but also provides some certainty and some flexibility for those folks that operate there.
That doesn't exist under our current options under the AMAs and INAs. We've talked about other options to create some flexibility in subsequent AMAs, and I appreciate those concepts. I think those are well-founded, and those are things that we should continue to talk about. But this bill is a framework that has undergone a lot of work, has undergone a lot of change, and deserves continued debate.
That being said, we recognize there's a lot of concerns about this bill. We recognize that there's a lot of things in this bill that weren't necessarily anticipated when it was crafted and introduced. But that's what this process is for, is to continue those conversations, to resolve some of those issues and work together in a manner that gets us to the best solution possible.
Water regulation doesn't happen overnight, especially something as monumental as what we're talking about today. But the Arizona Farm Bureau is here to continue the conversation and continue the discussion. So with that, I'd be happy to answer any questions. Any questions? Representative Carter.
Chris Mathis
State Representative, District 25
Okay, anybody else? Madam Chair? Representative Mathis. Thank you, Madam Chair. Hello, Mr. Bichotte. The engrossed final version of SB 1221 last year included up to a 15% reduction, I believe. This bill caps reduction at 10%. You referenced that 10% in your remarks. What is your current thinking on what's appropriate in this space?
Philip Beshaw
Arizona Farm Bureau Representative
Madam Chairman, Representative Mathis, I appreciate you bringing up that question. Last year, we went into this and we had a lot of discussions about the legislation, 1221, last year. And then over the summer, we've had subsequent conversations with our members and spent a lot of time thinking and working through the impacts of regulatory cuts and sort of what we're calling the ability for these local councils to institute mandatory cuts. It's important to note that
That is the local control component of this, is those local councils will have the ability to determine what is best for their council and set those numbers.
And then when talking with our members, we thought it was prudent to start the discussion at that 10% mark, and then continue the conversation as this bill continued to evolve. There's a lot of components to this bill, and they all have to be taken together as a whole in understanding what the impact is gonna be, and that takes time to work out. So I would say that, again, this bill is a work in progress, and that is certainly a subject of conversation.
Appreciate that sir madam chair and I get that perhaps also applies to the concept of subsequent management periods over and above the first 10-year period Is that you're thinking as well? I know that has been a topic of conversation and that is something that a lot of folks have approached us with and and have said that they're very concerned that there is no pathway for subsequent basis and
I counter that by saying there is a pathway. You have the potential to come to the legislature and work through that and create eligibility for those basins to become a basin management area. So that would be one possibility. The second thing that I say to that is that we are putting together a pretty novel approach to groundwater regulation in these areas. And we believe it would be prudent to
Institute a policy as we agree to it, and then as some of the other speakers have alluded to, let's see how it works. And let's make sure that we have a proof of concept and this actually does benefit those basins and rural areas before we move on to others.
Chris Mathis
State Representative, District 25
Thank You madam chair one one more You mentioned subsequent Basins, there's also the issue of subsequent management periods for a given basin just to clarify that there's two separate things that we Talk about in the negotiations. I just wanted to to note that but also wanted to note my appreciation for for your participation in the process and look forward to continuing to to talk
Sarah Liguori
State Representative, District 5
I'm sure we represented a massive math. Thank you very much. Good. Thank you, Madam Chair. One question. Thank you, Mr. Sharpe. You mentioned, you know, I know you've been at the table for a long time in these conversations, too, on this version of the bill we're seeing here today. I'm just curious of what stakeholders were at the table. Were there any tribes or, you know, non farming, you know, non agriculture?
Philip Beshaw
Arizona Farm Bureau Representative
entities that participated in the process of crafting this version of the legislation. Thus far, and I'll talk about this as a whole, the negotiations regarding 1221 that have really kind of gotten us to this point included several stakeholders, including mines, utilities, agricultural users.
But really, there was a negotiating team that included several Democratic lawmakers, and I can't tell you who all they spoke with as a part of that stakeholder process. Large stakeholder process on both sides? It was, yes. But no one, Madam Chair, no one directly from the tribes or no one from a rural area that wasn't informing?
Madam Chairman, Representative Liguori, we've had we've had offline conversations with several members, both in and outside of farming, individuals in and outside of farming, about this legislation. And, and we've talked through various concepts, we've brought those to the table. And I know that there's a lot of representatives that were part of that were have been part of the negotiations so far. But again, the discussions are ongoing.
Nick Kupper
State Representative, District 25
Thank you. Madam Chair, so real quick to that point. Yes. I don't know the area extremely well. Are there any federally recognized tribes in the Wilcox Basin? No. Okay. Thank you. Madam Chair. Not that I'm aware of either. Okay. Any other questions? Madam Chair. Yes.
Pamela Carter
State Representative, District 4
I don't know your first name, I just know you're from Farm Bureau. Philip. Philip, thank you. Madam Chair, Philip. I am a little concerned on page five of the council being made up of five members.
And there's only one that has to live actually reside in that area. One is appointed by the governor and then the rest are appointed. I'm a little concerned about that area. Can you speak to how this was decided upon decided.
Philip Beshaw
Arizona Farm Bureau Representative
Madam Chairman, Representative Carter. So that was a significant matter of discussion as well. And what we find is that in a lot of these rural communities, where these basin lines are, they don't necessarily line up with the towns and municipalities that live or that are in those areas. So there's a lot of instances where, for example, my farmers may farm in the agricultural and growing portions of these basins.
yet live in town or live in an adjacent town that aren't necessarily within the basin. However, they do have a significant nexus to that basin as a water user and as an investor in that basin, which is why they do need to have an active water right and they do need to be a resident in the state of Arizona. So we try to put some limitations in there to ensure that these council members had a nexus to that basin, but it's not necessarily where they reside or register to vote.
Pamela Carter
State Representative, District 4
Aren't there, Madam Chair, aren't there three areas, though? Wilcox, and wasn't there two others that were part of this? Or am I wrong? There's three different basins. Three different basins. That's what I thought. We're talking about even considering a separate section. Oh, just for Wilcox. One for Wilcox, one for each one of those. Oh, all right. Because one size doesn't fit all.
Okay. Well, I wasn't different. I didn't transition basins water transportation basins each have a separate page in our statute And so we're talking about that as well. So madam chair So these five members may ask a question sure. So the five members would be a part of all three of those No, it's this is one way separate counsel for each basis separate counsel Okay. Well, thank you. Thank you, sir
Gail Griffin
State Representative. Committee Chairman
Thank you. Thank you Phil. Ed Curry. Ed are you signed up? All right come on up. You're not on my list. I don't know why you should be on my list. You're at the top of my list. What can I say? I hope. Now just for the time being when me
Ed Curry
Arizona Pecan Growers Association Rep
given this for my birthday recently. I've worn it once since as a kid. So anyway. 10 seconds. Hey, he's cat in the hat right there. So I'll start with this.
When I grow up, I can make it short. I hope to be as sharp as you, honey. I hope to be as diplomatic as Senator Dunn, and I want to thank him for bringing this to us.
And I'm going to include Chris Mathis in that, because they're two really good diplomats. And I hope I can speak as clearly as Fareed Bailey back there. Fareed can say something. You can hear it. I love that about Fareed. Now, about Ed Curry and what I'm here. I'm a chili farmer. Have you ate your chili today? That's the first question. Second question. Good, she has. What the time boy is, he ate his. But, you know, first off,
We got the San Simone Basin that I've talked to you all about a little bit. It's not on this bill so let me talk to you later about that. Talk about this bill. We need it in there or we need something for them boys. And you asked specifically about the pecan group. I've represented the Arizona Pecan Growers Association several times in this because they need real water savings and
Honestly, they don't feel like the 10% is enough to make sure that they got water for 100 years for those trees. That's the first thing I'll say. I'll include that. So I talked about the San Sebastian. I'm going to talk about the 10% that, in my humble opinion, we need a little bit more. And up to 25% or something over 40 years, surely,
On my farm, we've had cactus and other rosemary and some things besides the chili, and I did that to balance the water. There's ways. Lastly, power. Our co-op in our valley is farmer-owned originally, and we need to make sure that we don't ask them to cut anymore. It's common sense that we need power. Ten seconds. That's enough said. Questions?
I told you I'd be short. And I'll share with you later about San Simón and what I'm doing for San Simón. Okay, good. Madam Chair? Yes. Thank you, Madam Chair. Hello, Ed. How long have you been farming in the Wilcox Basin, sir? Too long. No, I love what I do. I've been farming there. This is my 54th crop there. Thank you for asking, Chris.
And could you talk a little bit about the need to deepen wells in that area? So this became real apparent. And forgive me if I don't address you all right. I'm just a country boy come to town. And the only thing I'll say is if I don't address you right, you just know that I follow a man from Galilee that said we need to love one another. So I love you. If I don't say it right, forgive me, OK? But so in answer to your question,
Some years ago, after Riverview Dairy moved in, I had put some thousand acres of a cactus crop in, of which I will get shot if I say exactly what it is, but you come to the farm and we'll talk about it. And I'll feed you chili. If any of y'all come to the farm, we'll have fun.
Well started going down even though we weren't using them because I went from Anywhere from two and a half to three acre feet on most crops Some of them higher than that. I have a little bit of pecan orchard. That's where I come into the pecan growers a second
So the wells, they kept going down and we deepened them to a thousand foot. How's that? Mickey's hand didn't move. Madam Chair, how much does it cost for somebody to deepen a well?
In 2023, to go to 1,000 foot on one and 1,200 on another, one of them, around 600,000 for the two, 300 grand apiece. It's not cheap. What size well is it? That was a 12-inch casing. 12-inch casing. Thank you for asking. Thank you. Oh, I'm sorry. Did you have some more questions? Please go ahead.
Patty Contreras
State Representative, District 12
Representative Contreras. Thank you. Mr. Curry, I saw your presentation earlier this year here at the House and thank you for that. It was a great presentation and the chili was good. Regarding your wells, have you seen a marked decrease in the water level over
Ed Curry
Arizona Pecan Growers Association Rep
50 years or has it been just in more recent time? Has it been more recently that you're seeing this? Being there this many years, good question Representative Contreras. Yes, it's kind of consistently gone down but it was going down very, very drastically and then
When we got the big corporate farms, we went like that. Let me make a statement. In the years I've been there, I've seen three times where, because of economics, agriculture slowed down. A lot of farmers went broke, or they parked acres. When they did that, the water came back up. And DWR has the proof of that in 1990, that that level came back up. That's why, if we can incentive follow,
Gail Griffin
State Representative. Committee Chairman
and get a little more percentage than 10%, we can balance this thing out. I believe that with all my heart, Chairman. And to that question, I have the records where in 1974 there was large water usage and
I think in the 80s is when the INA went into effect and the water tables came back up. And I have that information as well. I'd be happy to share that with everybody. Thank you. I can tell you from just what happened with our wells, but it's recorded. Yes, ma'am.
Chris Mathis
State Representative, District 25
Good information. Okay, thank you. Madam Chair, just one more question. All right. Thank you, ma'am. You got three more bills to go through. I understand. I got three more jokes. Go ahead. Mr. Curry, you've become known for your efforts at water conservation.
And what is, what do you think is, what level of conservation do you think is reasonably achievable? I understand situations differ, basins differ, but what have you found to be the case?
Ed Curry
Arizona Pecan Growers Association Rep
Well, I've taken my farm, because of changing crops, already about 70% cut from where I was. I'm still trying my high water use crop, the peppers, which is our breeding work, which is the most important. Obviously uses a little more water. But even then, with drip, and I used the program that Senator Gale, or Representative Gale and Tim put together for us. And that has been very helpful. And we need more of that. We need a lot of incentive. And the big picture.
You've got a $165 billion chip company coming in here. Water, it's going to be like throwing a rock in a pond and you get the ripples. It will affect rural Arizona eventually because it starts here. So, all I'm going to ask is recognize that the big picture, we need to do something sooner rather than later because of national security, the feds will take control of this. Thank you.
Gail Griffin
State Representative. Committee Chairman
It was fun. Thank you. One comment, if I may, Madam Chair. You referred to me as Chili Boy, so the man from Galilee would approve of me being Chili Boy. There you go. All right. I'll wear it with honor. Thank you. Thank you. Thank you. We have one more speaker, if necessary. Tom. Honorable Tom. You have anything to add that hasn't been already said? Anything to add that hasn't already been said? I don't have you signed in. Have you signed in?
Tom
Let's hold it to one minute each so we can get out of here. Thank you, Madam Chair. It's going to be very difficult to follow Mr. Curry. Just wanted to say that there's not much to say that hasn't been said. So I just want to note that this is not a matter of
this bill or nothing. There are other ideas on the table, other proposals on the table to provide flexibility, local governance, and most importantly certainty for the residents of rural Arizona about their water future. And this could be potentially a start for negotiations. I just
It just doesn't seem like a very good start right now. And the status quo is unacceptable, whether that status quo is an AMA that doesn't quite work for the problems of the Wilcox Basin, for instance, or this proposal, which has
a distinct lack of ambition as far as conservation goals and such. And we also need to consider that the economy of these places is much more diverse than agriculture, and even the agricultural economy is quite diverse, and that is not accounted for in this bill. Thank you, Tom. Thank you. All right, this young lady here. One minute. Are you Donna or Aaron?
Michelle C. Benally
Resident Coconino County and Member of Navajo Nation
Michelle Benally. Madam Chair, members of the committee, I am grateful for the chance to address you today. My name is Michelle C. Benally. I am a resident of Coconino County and a member of the Navajo Nation. I am here to respectfully voice my opposition to Senate Bill 1520. This bill does not work for rural Arizonans and it certainly does not work for tribal communities bordering rural towns.
whose water security is already under threat. While SB 1520 does not directly apply to tribal lands, it could impact tribal members living just beyond those borders. And it fails to address groundwater depletion in northern Arizona where our aquifers function very differently from those in the southern parts of the state, which in the future could be in need of protection.
Northern Arizona relies on plateau aquifers that recharge extremely slow, unlike the basins covered in the bill. Overpumping in our region can lead to permanent loss of water, threatening our communities for generations. I'd like to conclude by offering two points to consider. One, respect tribal sovereignty and bring us into the discussion, and two, recognize the difference between plateau aquifers and basin and range systems when shaping groundwater policy.
Gail Griffin
State Representative. Committee Chairman
Thank you. Thank you, Michelle. I think you signed in as necessary, so I do see as necessary. So, OK. And this other lady, Karen, come on up. Karen Welker. Something like that. There you go. Madam Chair and members of the committee, good afternoon. My name is Karen Wylak for the record.
Karen Welker
Resident and Domestic Well Owner in Wilcox Basin
I'm a resident and a domestic well owner in the Wilcox Basin. Everybody's covered most everything except I do want to say this. I live in Representative Griffin's district at the Sunsides Town meeting held by Attorney General Chris Mays in February 2024. Representative Griffin distinctly stated that she would hold public town hall meetings to listen to her constituents concerning the water issues in our basin.
In Representative Griffin's latest press release, she said there have been 112 stakeholder meetings across the state. How many of them have been in the Wilcox Basin and open to the public at large? I'll answer that question. Zero. Zilch. Simply stated, not one single stakeholder meeting has been held in the basin that has the greatest depletion of groundwater in the state.
My apologies to the members of this committee who might possibly support my position, but I shall use the remainder of my time to do what Representative Griffin has done to us. Thank you for being here. Water is life. Any questions?
And I have been in the area. I have been in the district. Well, I certainly haven't seen meetings. And I've been very well informed. Would you put your contact information on the sheet, please? Yes, I would be happy to do that. Thank you. And a point of clarification, the Fort Sill Cherokee Apache Reservation people have four acres in the Cochise Stronghold. So they are represented in the basin. I stand corrected. Thank you. Thank you. OK. All right. I think that's it, huh? Yes. All right.
Chris Lopez
State Representative, District 16
Okay, let's go ahead and move the bill. Madam Chair, I move that Senate Bill 1520 be returned with a due pass recommendation. Thank you. Would you move the Griffin amendment? Madam Chair, I move that the Griffin bill, Griffin amendment dated 3-24-25-11-14 a.m. be adopted. Thank you. All those in favor of the Griffin
Gail Griffin
State Representative. Committee Chairman
Amendment dated 3-24-25 at 11-14 a.m. Signify by saying aye. Aye. All those opposed say nay. The ayes appear to have it, two have it, so order. Would you move the bill as amended, please? Madam Chair, I move that Senate Bill 1520 as amended be returned with a do pass recommendation.
Thank you, I've heard the motion. Just for the record, this is a work in progress. We will continue to work. The 112 meetings we had previously last year, we will continue having stakeholder meetings on this particular bill. And so, any further discussion other than that? Seeing none, please call the roll. Representative Carter? Madam Chair? Yes.
Pamela Carter
State Representative, District 4
I have some concerns about quite a few issues in the bill. I do respect Representative Griffin, Chairman Griffin, as well as Senator Dunn. I would like further conversations. I will be a yes today to get it through our committee so that we can continue our conversations, but I reserve my right to vote no on the floor. Thank you.
Ralph Heap
State Representative, 10
name. Madam chair yes. I share the concerns and I would not vote for the bill in this present condition but I think moving it forward and having additional conversations sounds like a reasonable thing to do. But again so for the day but I thank you.
Nick Kupper
State Representative, District 25
Yes, thank you. I have faith in my sense. Senator Dunn here and I would like to give him the opportunity to try to continue working stakeholders and make this solid and so for today and I thank you. Madam chair, yes.
Sarah Liguori
State Representative, District 5
I feel the sense of urgency. And I sympathize with those who are losing. Water who are losing. We financial interest in their homes in their wells and they're watching the state. And imploring the state to act on this important matter. And I'm disheartened.
I've only been here three years. I'm disheartened that we can't. Effectively come together as our predecessors have in the past to put aside. Our personal interest to put aside. External interest. And to roll up our sleeves. And to really do this for the work of the people and the future of our state.
And I applaud Senator Dunn and those who have been in these conversations. And it is just disheartening to see that although ideas are presented, they always seem to miss the mark. And year after year, time is wasted, water is running out, and people feel frustrated that we are not listening to them.
and I think it's a complete disservice to the job we are sent here to do. I think we have actual solutions on the table that don't get to be heard, that do bring in the voices of not just one industry or one interest, and will protect and preserve water for a longer time. And so I'm voting no on this bill today
And I really, really do hope that a wall can be broken down so that we can take the 112 meetings and turn them into effective policy that will benefit the water future of every single person in this state and actually conserve and do what is intended to do. I vote no. Representative Martinez?
Chris Mathis
State Representative, District 25
Madam chair. Yes Thank You madam chair I've appreciated the discussion today and I appreciate The sponsors participation and your participation participation madam chair and our ongoing discussions and negotiations It is frustrating
I think that certainly at the end of our legislative careers and maybe, well certainly otherwise, that we will be judged by the outcome of these discussions.
It is a weight that I feel heavily. I look forward to getting back to the negotiating table. Hopefully, I think we must get it across the finish line this year.
I think that there is another way to do this late introduction special session. So for today, I'm a no but look forward to hopefully on Thursday, getting back to the table. Thank you, Madam Chair. Thank you. Chair. Yes, I'm going to make a comment, please. As we sit here and talk about water,
Mae Peshlakai
State Representative, District 6
and all these storm waters, we just don't have it. But I would like to see the state has done a disservice to the indigenous tribal nations. We have never been involved, and we like to be sitting at the table anywhere the water goes.
and, you know, for the future of all Arizonians. And we sit here and talk about water and pumping goes on from the lifeline of our people through the little Colorado River. And then if we just don't rely on it for
ourselves, but we rely on it for livestock and our food sources. So we like to have a say-so in all of the indigenous people here in Arizona. We have been not sitting at any table, as I'm aware of, and I became aware of it now, and I like to see it. So with that, you know,
where our water is running out. And thanks to COVID, people have come to realize that we are still here living. And that at that time, before COVID, about 80% of my people didn't have running water. And I think now that we're
we're being recognized that we are the least users of our water, that we need to sit there and work together and be involved with the decisions that are made here. And with that, I'm a nay at this time. Vice Chairman Lopez. Aye. Chairman Drummond.
Gail Griffin
State Representative. Committee Chairman
I'll just say a few things. We do have an AMA in Wilcox. The idea for the challenged basins is to stop the bleeding. The AMA did stop the expansion. We want to stabilize the water tables and we want to figure out how to put water into the basin, back into the basin.
40% water cut over 40 years will put all the farmers, all the agriculture out of business. And that particular area is known for its agriculture community.
I'm continuing to agree to be at the table and work with others, not just with both sides of the aisle, but with the different industries and the residential people as well. I thank Senator Dunn for bringing this forward and sticking in there. And we know we need to continue working on it. And with that, I vote aye.
With your vote of six ayes, four nays, you have passed Senate Bill 1520 as amended with the DuPaz recommendation. Thank you for being here. Thank you for all the ones that have traveled a distance. We appreciate you being here. Thank you, Madam Chair. Thank you, members. And thank you for letting everybody testify. I think it was very diverse. I really appreciate you sticking through that. It's very important. Thank you. Good. Thank you. 1521.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, the Strike Everything Amendment to Senate Bill 1521 assesses a penalty of $100 for excess expenditures of local revenues by the town of Welton for fiscal year 23 and contains a retroactivity date of July 1st, 2022. With that, I'm available for any questions. Any questions? Thank you. No questions.
Gail Griffin
State Representative. Committee Chairman
Madam Chair, we have Spencer Camp signed in. We have the sponsor here. Senator Dunn, 1521, did you explain the amendment?
Tim Dunn
State Senator, District 25
Did you explain the Welton one? This is the Welton one, right? Yes. Did you explain it? Okay, sorry. Thank you Madam Chair and the members for hearing this bill. Thank you Representative Tupper for doing the strike everything amendment. And we do have the town of Welton here to explain how they got here. You know, typically, it's basically because of the census, a small town of Welton.
And Yuma, right before you get into town, they have about 3,500 people. The census came back in way short of the amount of people. They've actually gone back in and we kind of verified that the electricity services have been all, at least have been the same as they were before the census. They have about 1,500 winter visitors that come. And they've done the home rule. They've done all the things they've done to fix the over-expenditure limit. But there's a punitive penalty that's required by the statute and by
the Auditor General. And so this is trying to keep that from punitive because it really will hurt the small town of Welton. So they're here to testify. So thank you. Good. Thank you. We have Dennis Olsic. I'm sorry if I mispronounced that wrong, sir. All right.
Dennis Osuch
Finance Director, Town of Welton
My name is Dennis Osuch, and I'm the finance director for the town of Welton. So thank you, Madam Chair and committee members for giving me the opportunity to speak here. And as Senator Dunn had mentioned, we had an over-expenditure in fiscal year 23. The state of Arizona, if you don't have an alternative to expenditure limitation, you're subject to an expenditure limitation amount that's based on your population.
The penalty that's being assessed to the town of Welton is three times what our penalty is, which amounts to about $1.2 million, and this is a small community.
The issue that we have is prior to the census, the town was reporting population of about 30, a little over 3,300, 3,350 was the population being reported. After the 2020 census, which happened during the COVID period, it came back at a population of 2,300, which was over a 29% decrease in the population, which resulted in a 29% decrease in our expenditure limit.
That dollar amount amounted to about a 1.5 million dollar decrease in our expenditure limitation and which caused the over expenditure that we had in FY23. This is a one-time ask as far as the penalty goes. We, the town did in November of 22, November of 2022,
The voter did adopt an alternative expenditure limitation amount, so that's a voter-approved amount, because the town did recognize that there was an issue with the population. However, for the FY23 year, we were subject to that lower population amount and thus resulting in that over-expenditure during that one year.
You know, if we do have to incur this penalty, it's going to take a significant hit to the town of Welton. The penalty is basically a withholding of the urban revenue sharing that's received. The town of Welton receives about $500,000 annually in urban revenue sharing.
the penalty would ultimately amount to about two and a half years worth of urban revenue sharing being withheld from the town of Welton and impact our budget in the current year and two subsequent years as well. Ten seconds.
So we appreciate your consideration, and I'm more than happy to answer any questions. As Senator Dunn had mentioned, we looked at utility records in order to support the fact that we did not have a 29% decrease as the 2020 census had shown. Any questions? Yes. Thank you.
Patty Contreras
State Representative, District 12
So you're from Walton? I'm the finance director for the town of Walton, correct, yes. I know we had, I'm originally from the town of Somerton, so it's a much, it's small too, and all down in that area, same area, and I know we had a big undercount in that area too, so that was kind of unfortunate in the census.
Dennis Osuch
Finance Director, Town of Welton
So what again was the excess expenditure and what's the penalty that the state? So yeah, let me tell you. So the way the statute reads, there's three tiers and how the penalty is calculated. So if you are from 0% to 5% over your expenditure limitation amount, your penalty is actually equal to your over-expenditure. If you're between 5% and 10%,
And then the penalty is three times your over-expenditure. Our over-expenditure is $400,000. If you're over 10%, the way the statute reads, it's actually the lesser of one-third of your allocation
or five times. And in this case, our allocation is $500,000. So if we had just spent $20,000 more, we would actually have a million dollar less penalty. So it's kind of silly that we're looking at a $1.2 million penalty when if we had spent $20,000 more, we actually would have saved a million dollars in penalties. Wow. And Madam Chair, sir, what is your overall budget, city budget?
So for the general fund alone, we only have about a $3 million expenditure budget for the general fund. And so the only reason I referenced just the general fund is because that penalty of $1.2 million, that's all urban revenue sharing, which is going into the general fund. So on an annual basis, that's about $500,000 out of that $3 million general fund budget. Thank you.
Sarah Liguori
State Representative, District 5
Thank you. Yes, one quick question. Um, Mr. Osuch? Osuch, yeah. So, sorry, what did you attribute to the decline in the population numbers? Yeah, so that was done by the census. So the census came back with a population figure of about 2,300.
Dennis Osuch
Finance Director, Town of Welton
versus what had previously been reported prior to, it was the previous census that came up with 3,300. And so, you know, we were severely undercounted. I think there was a, you know, I think COVID had a big impact on that. And, you know, I think other smaller communities had similar situations where you saw undercounts during that COVID time period. I did go back and I looked at our utility records, so our utility customers,
And when you look at it, we actually have over the last 10 to 15 years, we actually have growth in our utility customers. So those would be permanent customers. So that really doesn't support a 29% decrease that the census was actually showing. And then that's where we're looking at it and saying, okay, there was definitely an undercount.
in the Welton area. And it's sort of compounded as Representative Contreras can probably attest to being in the same area. We have a lot of winter visitors there too that don't get counted in our permanent numbers. So that wasn't even in the 3300 originally. But we still have to provide services to them. But that sort of compounds the impact of the penalty as well. And then Madam Chair, just a quick follow-up. Do you think that this is a problem maybe other small towns might
Have run into or have you heard of other towns running into this? I do think and I think Somerton is probably a good example of one but It may not be stand out as much because other towns and cities may have had an alternative Expenditure limit already established prior to this and may have had it for years So there's a couple of alternatives that can be done. One is a voter approved expenditure limitation amount and
Or you can also do a permanent base adjustment, which is also approved by the voters. So there's two options to do that. The town of Wilton had not previously done that because, as I mentioned, the decrease in the population actually had a million and a half dollar impact on what our expenditure limit was. We overexpended by 440,000. So we still had under the
previous population count, we still have room of $1.1 million, which doesn't sound like a lot for a town of Welton. It is a lot when you're considering a $3 million general fund budget. So we had a lot of room, but then when that census count came in low, it had a big impact. Thank you. Thank you for being here. Any other questions? Thank you. OK. Thank you. Spencer Camps. Spencer, do you need to speak on this one?
Gail Griffin
State Representative. Committee Chairman
We support the bill. Thank you. OK. I think that's it. So let's move the bill. Madam Chair, I move that Senate Bill 1521 be returned with a do pass recommendation. You've heard the motion. Any further discussion? Seeing none, please call the roll. Representative Carter. Wait, wait, wait, wait, wait a minute. Move the amendment.
Chris Lopez
State Representative, District 16
Madam Chair, I move that the Copper Strike Everything Amendment dated 3-2025 at 1-41 p.m. be adopted.
Gail Griffin
State Representative. Committee Chairman
Thank you for the motions. Motion is the Cupper strike all amendment 321, 320, 25 at 141 PM. All those in favor signify by saying aye. Aye. All those opposed say nay. The ayes appear to have it, do have it, so ordered. Would you move the bill as amended, please? Madam Chair, I move that Senate Bill 1521 as amended be returned with a do pass recommendation. Thank you. Any further discussion? Seeing none, please call the roll. Representative Carter?
Nick Kupper
State Representative, District 25
Representative Contreras? Aye. Representative Heath? Aye. Representative Cufford? Madam Chair? Yes. Thank you. I was very happy to sponsor this Strike Everything. This is a situation I believe that the town of Weldon was kind of thrust into from no fault of their own. It's a rural town, it's very small. As Rep. Contreras mentioned, she's from Somerton originally, same, very similar. And I do think unfortunately a lot of times these small rural towns get the
the raw end of the deal when it comes to census, because they are more spread out. I appreciate the work they've done to try to remedy this for future situations. And I also am a firm believer in grace. And with that, I vote aye. Thank you. Representative Labore? Aye. Representative Martinez? Aye. Representative Mathis? Aye. Representative Tesluk? Aye. Vice Chairman Lopez? Aye. Chairman Griffiths? Aye. I call your vote of
Gail Griffin
State Representative. Committee Chairman
By your vote of nine ayes, one absence, you have passed Senate Bill 1521 as amended with a do pass recommendation. Thank you. Thank you. Thank you for being here. We'll move to 1530.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1530 outlines the process of a recovery well application if an applicant does not submit a separate hydrologic study for a recovery well. If an applicant does not submit a hydrologic study for a recovery well, the director can assume that the well is located within the impact of stored water if the well is within one mile of any of the following, the exterior boundary of a constructed underground storage basin facility, or any other water storage infrastructure.
boundary of the district that has received a permit to operate as a groundwater saving facility. With that, I'm available for any questions. Any questions? Seeing none, thank you. Michael Monte.
Michael Monte
Arizona Municipal Water Users Association Rep
Chair members of the committee. Hello again, Michael Monte for Arizona Municipal Water Users Association We are here in opposition to this bill tonight 1530 would expand the area of impact for groundwater savings facilities. We believe that the existing area is sufficient and
that the expansion of the pumping area would enter into areas for which there's not a hydrological justification for that pumping, and that it just isn't really necessary under the circumstances. The existing areas of impact collectively run to hundreds of square miles, and what's interesting is that if you draw that boundary of one mile additional extension around those areas of impact,
the total area is augmented by 51%. So that expansion is much more massive than perhaps seems apparent in the words of the statute. So for these reasons, we would like to object to this and ask you not to vote for it. And with that, I'll take any questions. Any questions? Seeing none, thank you, Michael. Thank you very much. Michelle Van Quacken.
Michelle Van Quatham
Law Office of Michelle Van Quatham
It's Michelle Van Clotham, Chairman and Committee Members. Michelle Van Clotham of the law firm of Michelle Van Clotham for Camarata Ranch again. This is an easy statute. It's basically codification for certainty for people who are regulated.
of a practice that the Department of Water Resources already applies by policy, but we don't know if they're gonna change it any day, so we're asking to put it into statute so that we can rely on it. In 2021, the legislature approved in ARS section 45576.08B, an area of impact of storage definition for the Pinal Active Management Area for designations of a shared water supply that was one mile,
There's a similar concept already in ARS 4527.11, protecting recovery wells within one mile of the storage facility that relates to the San Xavier reservation specifically. But we want that to apply statewide, this policy.
As Emma pointed out, it does make one change in that it says you could go one mile from the edge of a groundwater savings facility. So it's one mile from the edge of a constructed facility, which is what DWR applies already. One mile from the edge of a groundwater savings facility, and I think that's reasonable because the groundwater is modeled in one mile segments typically. So this is hydrologically not a significant distance.
In addition, some of the irrigation districts have cutouts in their membership. And so you have this weird patchwork. And if you gave a little bit of a buffer to those irrigation districts, they'd fill in those little areas as an appropriate withdrawal location. And then it also establishes a similar standard for a managed facility of one mile from the managed facility's storage area. Happy to answer any questions. Any questions for Michelle?
Gail Griffin
State Representative. Committee Chairman
Thank you. It's all who we have signed up. OK. No amendments. Any further discussion? Seeing none, please move the bill. Madam Chair, I move that Senate Bill 1530 be returned with a due pass recommendation. Thank you. I move the motion. Any further discussion? Seeing none, please call the roll.
Secretary
Pass. Representative Agoury? Representative Martinez? Aye. Representative Mathis? Nay. Representative Peshlakai? Nay. Representative Humbert? Aye. Vice Chairman Peshlakai. I'm sorry. Vice Chairman Lopez. Upgrade. Vice Chairman Lopez.
Gail Griffin
State Representative. Committee Chairman
Aye. By your vote of six ayes, three nays, one absent, you have passed Senate Bill 1530 with a do pass recommendation. Last bill on the calendar is 1523.
Senate/Committee Staff (reads bill summaries)
Committee Staff (bill analyst)
Madam Chair and members, Senate Bill 1523 prohibits a municipality located in an initial active management area from adopting or enforcing rules related to certain plants. This would prohibit the installation of plants that are not included on the low water use and drought tolerant plant list published by the department. This prohibits a municipality from adopting or enforcing any code, rule, ordinance, or regulation that directly or indirectly requires a minimum size for trees and shrubs, a minimum number of trees,
an amount of turf or a percentage of irrigated ground cover. There is an exception for minimum turf requirements that allows for functional turf that is associated with public recreation use or other public spaces. Madam Chair, there is an amendment that I can explain.
The amendment in Representative Griffin's name, dated 3-24-25, at 10-46 a.m., removes the language regarding a municipality located in initial AMA from adopting or enforcing a requirement, code, ordinance, rule, regulation, or stipulation of a minimum number of trees, size of trees or shrubs, a minimum percentage of irrigated ground cover, or a minimum amount of turf.
changes a reference for the low water use and drought tolerant plant list published by the department from the most current plan to the current management plan and Will not include stormwater drainage areas located in subdivisions with that I'm available for any questions any questions No questions, thank you sponsor the bill is here I
Tim Dunn
State Senator, District 25
Thank you, Mr. Chair, or Madam Chair, and it's been a long day. Madam Chair and the committee, thanks for hearing this bill. So we've been talking about these kind of things over the last couple years and trying to figure out what we can do. As you all know that we're in the middle of a 2026 guidelines discussion and what is landscaping and non-functional turf and those kind of things have to do with that. I want us to keep sending the message because we are doing more with less.
And we are doing these things, but we can all do more. Ag's doing better, cities are doing better, but let's keep working on what we can do. Non-functional turf is the easiest thing that people agree with because you're not playing on that grass. Why should cities allow it to be required to put non-functional turf in? We wouldn't have the playgrounds, those kind of things.
This sends a message that the director can use and say, you know what, even in this legislative session, we're tightening our belts, we're making sure we do things to protect the waters that we're going to continue to get our share of the water off the Colorado River. That's my biggest reason is save the water and then also be able to say that we are working every little pocket. If we're trying to work on all these little, whether it's ADOZ or Ag to Urban, all these other water bills and everything,
We're trying to make sure we tighten our belt. And so we've had it was the bill was very Very restrictive at the beginning. We've had lots of negotiations nursery association and wa Just different what we can do. So this is the low-hanging fruit that I think we have a good compromise on so that we can move things forward and I appreciate you hearing a bill. I'd love for your support and Without answering questions
Nick Kupper
State Representative, District 25
Any questions for Mr. Dunn? Senator Dunn? Madam Chair? Yes. Thank you. Senator, I see there's two different proposed amendments. Madam Chair, I had proposed an amendment earlier, but the Griffin amendment vitiates the need for that. So I've pulled the amendment.
Pamela Carter
State Representative, District 4
Any other questions for the sponsor? Representative Carter. Senator Dunn. I have an issue with this, Bill, I'm so sorry. I live in Scottsdale, Paradise Valley, North Phoenix area. I grew up in the Arcadia district. We had trees, we had fruit trees, we had grapefruit trees, and we had greenery.
I'm not in favor of taking over the municipalities and their right to build beauty. There's nothing wrong with beauty. God gave us beauty. He gave us creation. And to limit, just because we live in Arizona, I know the issue with water. We can all do better in certain things.
But I still think that there is something about walking through a park, walking along the road and seeing beauty and trees and shade.
I've lived here my whole life. I'm four generations here. I appreciate my area that beautifies our parks, our, you know, I just, I guess I'm just, I have an issue with taking over the right of the municipalities and the builders to put shrubs and trees.
We have also replaced desert with rocks and desert in the area I live. And I'm sure you know this. Heat mitigation, putting rocks in place of grass,
Actually, grass is much better for the environment than the ashore turf and the rocks. Rocks create a lot of heat. Cement, buildings, all that create heat. And I studied a lot of this. And so maybe you can answer beauty,
enjoyment of our neighborhoods versus, you know, always being worried about water. I'm not worried about water. I've lived here all my life, four generations here. We've never had to worry about water. I know that there's an issue which we have to
conserve and take care of areas that are having problems with water. And I really empathize with those areas. But I also know Scottsdale, the area I live in, has one of the best conservation areas in the nation. And we've been able to do it. Our aquifers are full. We have water
My area and I know I I'm here representing all of Arizona, but I have to also Represent my district. So I appreciate you listening and if you have an answer on on that for me what your thought is on on the municipalities and and
Tim Dunn
State Senator, District 25
prohibiting that sort of thing. Thank you Madam Chair and thank you Representative Carter. Yes the on the bill itself we've backed it off so this does not does not
it just restricts the city from requiring non-functional turf. They can't require grass out by the stop lights, that stuff. That doesn't mean you can't have a playground, it doesn't say you can't have parks, a lot of these parks are in it. So it doesn't restrict that thing, it's just when you have green strips along the highway, right there, so that that water, I don't disagree that it's cooler, but we're in a water crisis.
So this does not keep developers from putting in petunias, the things that are not on there. This is only so the city can't require it. The city just says you can only require things that are on the non-native plant list. I mean on the native plant list, low water use crops. It doesn't restrict trees at this point. It was going to. It does not restrict trees. It just takes a non-functional turf.
and makes you only things that they are required to restrict, but that doesn't mean that the developer, if they have enough water, they can put as much, they can put a waterfall in seal, they can put the stuff in, it's just you can't be required from the developers, the cities. Madam Chair, Senator, could you show me what section that might be? That's in the amendment, ma'am. It's in the amendment? Madam Chair, we've got all the other stuff that's in the amendment. It's in the amendment.
But that's because that is a good question because we were restricting it on trees and so we've come to a consensus with the cities in trying to say this is the things that we all know where we are potentially wasting water. And to the bigger question of why should we do this?
because of the 2026 guidelines. We are fighting to keep Arizona, we're going to have a reduction in water. And whether you know it or not, the CAP is the lowest restriction, is the lowest water use. And the rest of the states don't really care. They would rather take CAP to zero. CAP to zero does not help us.
So we do have a big fight to keep our CFP allocation, to keep our Arizona state's allocation, because the other state's against us. So we have to make sure that we are doing all we can so that we can keep those negotiations, because we are doing more with less. And me, representing the West Valley, which is growth, we want to make sure that we're having that ability. And me, representing Yuma, where the water is, we want to make damn sure it doesn't get transferred up here.
Nick Kupper
State Representative, District 25
And I'll say that again, I wouldn't make damn sure the water doesn't get transferred. Thank you, Senator. Madam Chair. Appreciate it. Yes. Thank you. Senator Dunn, thanks for bringing this. And Chair Griffin, thanks for sponsoring the amendment. I believe I'm correct or wrong. This is a great compromise, I think, between making sure we are protecting our water
Tim Dunn
State Senator, District 25
while also protecting private property rights. Is that how you see it? Madam Chair, Representative Cooper, yes. We're not restricting the developers and the private property rights. We're just making sure that they don't do an unburdened thing because we do want things to look pretty. We just gotta tighten our belts and let the developers do that on their own, not let the city over-requirements, with over-requirements. Thank you. Any other questions? Thank you, Senator. Michael Monte.
Michael Monte
Arizona Municipal Water Users Association Rep
So again, Madam Chairman, members, Michael Mani for AMLA, and we're actually here in support of this bill as amended. I recognize all the foregoing that Senator Dunn said, and Representative Carter, if you don't like, if this looked a little scary, you wouldn't really like the original version of this bill. I mean, when AMLA says, hey, wait a minute, we may not be using enough water. So in this case, we're very grateful for the compromise that,
Senator Dunn worked out with us and with the Arizona Nursery Association and it's come out with something we can all live with. So we want to thank him for that collaboration and offer our support. Thank you. Any questions for Michael? Thank you. Spencer Camps. Madam Chair, members of the committee.
Spencer Camps
Home Builders Association of Central Arizona Rep
I didn't testify in the last bit. I represent the Home Builders Association of Central Arizona. Interesting watching this discussion, and I will be quick, but you gotta remember that the amenities that go into a subdivision are an obligation of the private developer, the home builder. And so if amenities are required through municipal requirements, through the planning department, not the water department,
That, for 40 years, has been included in the builder's allocation of water. We can't access water. And so, turf, ball fields,
quite honestly, are a thing of the past if it's an obligation of the builder, because if we're choosing between fall fields and homes, we would prefer the water to go to homes. Now, this bill's a good compromise, but I'm telling you, the Ag to Urban conversation we've been having is a perfect example. They're going to cap the water that can be used for housing. And if we don't balance this requirement under the planning side of municipal governments to say you need to have grass, which uses four acre feet per acre,
And housing uses, two or one, depending on who you ask, we have a serious problem. We are not in a condition in the state of Arizona of telling people what days they can wash their car, what days they can water their lawn. Vegas is doing it. We're not there. We're trying to get ahead of the curve.
and talk about what amenities are going to go into projects going forward. And this is the first step on trying to do that. But this conversation is not over and we're going to have to have a serious conversation about it because we have to put a priority on whether we want to grow grass or we want to grow homes. With that, I'd be happy to answer any questions. Any questions for Spencer? Thank you.
Sandy Barr
Directory for Sierra Club's Green Canyon Chapter
all right i think that's the last speaker right yes all right oh yes you may come on sandy bar i didn't have you oh yes i do have if if necessary so it's necessary it usually isn't i know okay uh madam chair representatives i just wanted to clarify because we're signed in against senate bill 1523 but with the um adoption of the amendment
Will move our position to support as well. And I just wanted to make sure that was clear and appreciate the amendments and also to Say that my yard has no turf. It has beautiful Sonoran desert vegetation and it's very cool Thank you. Thank you. Thank you Madam chair, may I ask Sandy something? Do you have rocks
Do you have rocks in your backyard? Madam Chair, Representative Carter, do I have what? Rocks and just dirt. Yeah, basically. Well, it's all covered with like brittle bush and all the beautiful.
Pamela Carter
State Representative, District 4
Thank you Well, I'm I've lived in the desert my whole life for Mr. Madam chair, but I still love looking out my backyard and seeing beautiful green as well as misty trees Thank you and Palo Verde's yes, so thank you. I like a mix. So, thank you. I
Gail Griffin
State Representative. Committee Chairman
Thank you so much. All right, that was the last speaker. Unless any of the others, if necessary, wants to speak? I don't see any. Please move the bill. Madam Chair, I move that Senate Bill 1523 be returned with a due pass recommendation. Thank you. Would you move the Griffin amendment? Madam Chair, I move that the Senate Bill 1523, as amended, be returned with a due pass recommendation. Thank you. Heard the motion. All those in favor, signify.
Chris Lopez
State Representative, District 16
to move the amendment to the side bench. The Griffin. I've been here so long, I've forgotten where I am. All right, time's up, thank you. Good one, Nick, good one. The Griffin amendment dated 3-24-2025 at 10-46 a.m. be adopted.
Gail Griffin
State Representative. Committee Chairman
Thank you. You've heard the motion. I am so sorry. That's okay. You've heard the motion to accept the Griffin amendment dated 3-24-25 at 1046 a.m. All those in favor signify by saying aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye
Pamela Carter
State Representative, District 4
Madam Chair, I move Senate Bill 1523 as amended be returned with a do pass recommendation. Thank you. Any further discussion? Seeing none, please call the roll. Representative Carter. Madam Chair, may I explain my vote? Yes, you may. I will vote aye on this as amended as long as it's not a, which I understand is not a prohibition on
Patty Contreras
State Representative, District 12
municipalities so. Thank you. All right. I vote aye. Thank you. Madam Chair? Yes. I like this bill as something I proposed a couple years ago very similar and I I'd like that we're allowing for different times of landscaping that's that's water friendly and all and I
It's always bothered me to see grassy areas where, in medians, you know, where the city is responsible for these areas and all, that it's like, why do we need grass there? So I'm in favor of this. I vote aye. Thank you. Representative Heath. Aye. Representative Cooper. Madam Chair. Yes. Thank you.
Nick Kupper
State Representative, District 25
I grew up in the Willamette Valley in Oregon, and we don't have water problems there, except for too much water, honestly. It's very green, it's beautiful, but, you know, I've lived here for four and a half years now, and there's such a beauty in the desert as well. I really love this amendment, I like that it balances private property rights with preserving our water, and I'm happy it not.
Teresa Martinez
State Representative, District 16
Thank you. Aye. Madam Chair. Yes. As a native Arizonan, I vote aye.
Chris Mathis
State Representative, District 25
Madam chair. Yes. Thank you madam chair good bill and as Senator Dunn noted, I think it sends a Strong signal to the our fellow stakeholders in the Colorado River negotiations and with Adam and I All my life I love my desert I
Gail Griffin
State Representative. Committee Chairman
Aye. By your vote of 10 ayes, all present, you have passed Senate Bill 1523 as amended with a do pass recommendation. Thank you. What a way to finish this thing. That was a great way to finish. I do want to say that
I do want to say thank you, all of you members, on both sides of the aisle. Good discussion. It's an honor to serve with all of you. I want to thank the staff for being here and all their hard work. And the pages, thank you for everything that you do. I think this is the last meeting for this session. So thanks for all your help. We can agree to disagree respectfully, and we have done that. And thank you so much.
No further business. Meeting is adjourned.