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New rules go into effect to allow development in groundwater depleted metro areas

Woman in sunglasses and white shirt at podium
Marnie Jordan/Cronkite News
Arizona Gov. Katie Hobbs on Thursday, April 11, 2024.

A proposal to allow development in metro Phoenix despite low groundwater supplies was voted into effect Friday by a state rulemaking agency.

Groundwater is protected in urban areas which are part of “active management areas.”

Last year, Democratic Gov. Katie Hobbs limited certain kinds of development in areas like Buckeye and Queen Creek because models show basin levels are low and certificates that prove 100 years of assured water supply would fall short based on new data.

The new rules approved by the Governor’s Regulatory Review Council on Friday allow building if developers use new water sources and offset groundwater pumping.

“The rules will open the market for new homes while ensuring that growth depends on renewable supplies, not on finite groundwater supplies. By moving on from growth based on groundwater toward the use of sustainable water supplies, we can provide long-term economic benefits as well as long-term protection of remaining groundwater supplies,” the Arizona Department of Water Resources said in a statement.

Opponents argue the rule changes are illegal and expensive.

“The idea that this is an optional condition defies law and logic alike. Indeed the statement at a prior meeting from the chief counsel is that this is well the only feasible path for many housing builders,” Attorney Andrew Gould said on behalf of the Homebuilders Association of Central Arizona, in response to ADWR representatives saying the program is voluntary.

This is not the last chapter in the debate although the rules immediately went into effect.

Opponents of the plan voiced many legal concerns, and Republican state lawmakers have also expressed disapproval of the plan.

In fact, a committee led by GOP-lawmakers is scheduled to hold a meeting on this issue next week.

For opponents of the rules like the Homebuilders, the offset rules are too high a price to pay.

ADWR estimates that a 25% offset of new water supplies (which is what the new rules require) will only amount to about 5% of all water supplies for the provider.

Vice President of Legislative Affairs for the Homebuilders Association of Central Arizona Spenser Kamps argued that the 25% amount isn’t justified in any real way by ADWR and is far too much, especially since residential development uses far less groundwater than things like commercial or industrial building.

“They’ve literally never provided any data about the need for the 25%,” Kamps said. “In this environment where nobody can move forward with housing projects because of the groundwater situation … there’s a really good argument that it’s not voluntary,” he said.

But not everyone is opposed to the rules.

“The proposed ADAWS rules assist the city and Arizona water company to provide water security to all our existing and future residents,” Casa Grande Mayor-elect Lisa Fitzgibbons told GRRC.

These rules will also affect growth in the Pinal AMA — which includes Casa Grande.

“Today, GRRC listened to the hundreds of stakeholders, including business leaders, homebuilders, local elected officials and water users interested in growing Arizona’s economy with ensuring a sustainable water future. Governor Hobbs looks forward to continued partnerships and innovative policy solutions that protect Arizona water while continuing our state’s economic growth,” Hobbs’ spokesperson Chrsitian Slater said in a text.

The rules passed GRRC 4-1 with only Councilmember John Sundt voting no.

Camryn Sanchez is a field correspondent at KJZZ covering everything to do with state politics.