Senate Bill 1564 Summary

• Establishes the on-farm irrigation efficiency pilot program to provide grants for on-farm irrigation efficiency systems that reduce groundwater, surface water, and Colorado River water use while minimizing flood irrigation and fallowing.

• Creates the on-farm irrigation efficiency fund consisting of legislative appropriations, federal grants, and other lawful sources, with the University of Arizona Cooperative Extension administering the fund and able to use up to 10 percent of monies for administration costs and up to $1,000,000 for demonstration, research, and education.

• Grants are limited to $1,000,000 per single applicant or related applicants on the same farm unit and $1,500 per irrigable acre, and systems must demonstrate at least 20 percent water savings compared to flood irrigation through independently verified demonstration projects or accredited university analysis.

• Applicants must provide proof of active farming for three of the previous five years and demonstrate that the crop type has been grown in the region for the previous five years; recipients cannot claim state tax credits for the grant-funded portion of efficiency systems.

• University of Arizona Cooperative Extension must submit annual reports before December 31 to the legislature detailing expenditures, affected fields, water legal character, soil types, crop types, and water conservation quantities; the program is repealed December 31, 2026.