This law keeps Pinal County-area groundwater fee arrangements in place through 2030, extends a temporary irrigation well fund, and sets several one-year environmental budget rules for fiscal year 2026-2027, including holding area A vehicle emissions test fees at their June 30, 2025 level.
Official title: environment; 2026-2027
- September 12, 2026
- Fiscal year 2026-2027 only: Use of underground storage tank fund, water banking fund and water protection fund monies; area A emissions fee level; water quality assurance revolving fund appropriation limit
- December 31, 2030: End of the Pinal groundwater and irrigation efficiency project fee; the Pinal water banking fee pause runs through calendar year 2030
- Repeal after March 31, 2031: Section 45-118, Arizona Revised Statutes
- June 30, 2032: Leftover money in the temporary groundwater and irrigation efficiency projects fund is to be returned to contributors by December 31, 2032
- Repeal after March 31, 2033: Temporary groundwater and irrigation efficiency projects fund law
What changes
BeforeIn the Pinal active management area, no groundwater withdrawal fee for Arizona water banking was charged for calendar years 2020 through 2026.
NowThat pause on the water banking fee in the Pinal active management area now runs through 2030. After that, the director shall set the fee at not more than $2.50 per acre-foot per year.
BeforeIn the Pinal active management area, a fee of not more than $2.50 per acre-foot per year for groundwater and irrigation efficiency projects applied through December 31, 2026.
NowThis fee of not more than $2.50 per acre-foot per year may now be charged through December 31, 2030.
BeforeThe temporary groundwater and irrigation efficiency projects fund was set to close out on June 30, 2027, with leftover money returned to contributors by December 31, 2027, and the law creating it was set to be repealed after March 31, 2028.
NowThe close-out moves to June 30, 2032, with leftover money returned by December 31, 2032, and the repeal moves to after March 31, 2033. A separate water law section set to be repealed after March 31, 2027 now lasts until after March 31, 2031.
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NowFor fiscal year 2026-2027, the director of the Department of Environmental Quality shall keep vehicle emissions test fees in area A at the area A fee level in effect on June 30, 2025.
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NowFor fiscal year 2026-2027: the Department of Environmental Quality may use up to $6,531,000 from the underground storage tank revolving fund for its administrative costs and for fixing sewage discharge problems in Naco and other border areas; the Arizona Water Protection Fund Commission may grant up to $336,000 to the Department of Water Resources for administrative costs; the Arizona Navigable Stream Adjudication Commission may use its water banking fund money for legal fees; and the state general fund appropriation to the water quality assurance revolving fund may not exceed $15,000,000.
Who it affects
- People and irrigation districts that withdraw groundwater in the Pinal active management area, or own the right to withdraw it
- Qualified irrigation districts in the Phoenix and Pinal active management areas and the Harquahala irrigation non-expansion area
- Vehicle owners who get emissions tests in area A
- Residents of Naco and other border areas with sewage discharge issues
- Arizona Department of Water Resources
- Arizona Department of Environmental Quality
- Arizona Water Protection Fund Commission
- Arizona Navigable Stream Adjudication Commission
What you need to do
Nothing.
What the law doesn't answer
- Which places are included in emissions testing area A
- The dollar amount of the area A emissions test fee
- What section 45-118 covers
- How much the Pinal efficiency project fee will actually be set at within the $2.50 limit
- Which other border areas besides Naco may receive sewage remediation money
- Why the deadlines were extended
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.