Proposal for developing Arizona's groundwater depleted areas faces criticism, legal concern

Arizona’s water agency is encouraging an executive council to take action on a controversial issue around building in areas with low water supplies, due to building restrictions imposed by Democratic Gov. Katie Hobbs.

Opponents of the plan say it’s illegal.

In urban areas of Arizona, developers need to show certain planned houses will have a secure water supply before they can build.

Due to a groundwater shortage, Hobbs restricted building in the Phoenix metro area last June. Since then, developers have been advocating for options so they can continue their work in fast-growing areas on the edges of the Valley, like Buckeye and Queen Creek - which are the most affected.

The Arizona Department of Water Resources is pushing rule changes that would allow developers to build in affected areas if they commit to finding new water sources and use a percentage of their water to offset groundwater pumping.

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The plan is called an Alternative Path to Designation of a 100-Year Assured Water Supply (ADAWS).

The ADAWS plan comes from a series of recommendations ADWR made at the governor’s direction, which were released last year.

“You cannot be - in any way shape or form - pro affordable housing when you're asking residents to pay more than 100% of their water use,” said Spencer Kamps, vice president of legislative affairs for the Homebuilders Association of Central Arizona.

Opponents of the rule changes claim the offset rate isn’t justified, the rules could violate licensing laws and the executive branch is overstretching its power by trying to make these changes unilaterally.

Under ADWR’s latest proposal, users would be required to give 25% of their new alternative water source to offset groundwater pumping and reduce reliance on strained groundwater supplies. That’s down from the original proposal of 30%.

“If we want to base our water decisions on efficiencies, the home-building industry would welcome that conversation, because we are the most efficient,” Kamps said, noting that residential land use requires far less water than industrial or agricultural land use.

Ultimately, Kamps said the offset costs will be passed on to homebuyers and be upward of tens of thousands of dollars.

Municipalities like Buckeye and Queen Creek also want the offset percentage to be far lower.

The Governor’s Regulatory Review Council must vote on the proposed rule changes before they can go into effect, so that’s the next step in the process.

The review council is scheduled to have a student session on the issue next week, then vote in early December.

The council was meant to vote on the issue sooner, but Senate President Warren Petersen (R-Gilbert) reminded the council that there’s a lengthy public comment period they must allow.

Sen. T.J. Shope (R-Coolidge) was recently appointed chair of the Senate Natural Resources Committee, which addresses water issues. He cited the housing supply matter as one of his top priorities.

“Administratively, Hobbs is rushing a rulemaking package that the administration knows effectively excludes Queen Creek and Buckeye, the two remaining affordable growth areas in Maricopa County,” Senate Republicans stated in a press release announcing Shope’s appointment. The statement accuses Hobbs of pushing an “anti-growth” agenda.