HB 2540 Summary

• Establishes a temporary groundwater and irrigation efficiency projects fund to finance construction and rehabilitation of wells and related infrastructure for irrigation districts in the Pinal active management area and Harquahala irrigation non-expansion area.

• Authorizes a new groundwater withdrawal fee of up to $2.50 per acre-foot per year in the Pinal active management area from January 1, 2020 through December 31, 2026 specifically for groundwater and irrigation efficiency projects, replacing the Arizona water banking fee during this period.

• Appropriates $5,000,000 from the state general fund in fiscal year 2018-2019 to the temporary groundwater and irrigation efficiency projects fund.

• Requires the Director of Water Resources to administer the fund, accept grants and contributions from irrigation districts, grant monies to eligible districts, and submit annual reports to the legislature on fund expenditures.

• Terminates the temporary fund on March 31, 2028, with any remaining unencumbered monies from withdrawal fees transferred to the Arizona water banking fund for use in the Pinal active management area.