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Arizona proposes a water withdrawal fee on state lands to fund conservation

Original title: water withdrawal fee; state lands

Last action · February 9, 2026: Senate Second ReadingSponsor: Priya Sundareshan

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Arizona lawmakers are proposing a ballot measure to require a water withdrawal fee for pumped from state-owned and trust lands, with revenues directed toward water protection and conservation grants. If approved by voters at the next general election, the measure directs the Director of Water Resources to set fees based on fair market value, with higher tiered rates for large-volume users.

Why it matters

The measure introduces a new cost for extracting from state-owned lands and redirects 90 percent of collected fees into state water protection and conservation grant funds. Large-volume users face potential tiered rate structures, while the Department of Water Resources retains up to 10 percent for administrative expenses.

Background
  • State trust lands in Arizona are managed to generate revenues primarily to support public education and other institutional trusts. context
  • Concurrent resolutions in Arizona proposing statutory changes or constitutional amendments require approval from a majority of voters at a general election. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

large-volume water users

Large-volume water users may be assessed a higher groundwater withdrawal fee under a tiered structure established by the director.

Directly affected

Arizona Water Protection Fund

The fund receives a portion of the revenues collected from the new water withdrawal fees.

Directly affected

Water Conservation Grant Fund

The fund receives a portion of the revenues collected from the new water withdrawal fees.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What does SCR 1039 propose to change?
It proposes creating a mandatory water withdrawal fee for any pumped from state-owned or trust lands, subject to voter approval at the next general election.
Where do the collected fees go?
Up to 10 percent is retained by the department for administration, while the remaining 90 percent is split evenly between the Arizona Water Protection Fund and the Water Conservation Grant Fund.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · on the Senate floor.

Procedural history

2 actions
  1. Feb 9, 2026SenateFloor
    Senate Second Reading
  2. Feb 5, 2026SenateIntroduced
    Senate First Reading

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Introduction of Market-Based Groundwater Fees on State Lands

The measure shifts state policy toward establishing fair market value fees specifically for groundwater withdrawals on state and trust lands, creating a dedicated recurring revenue stream for conservation funds.

Connected Entities

Arizona Water Protection Fund, Water Conservation Grant Fund, Priya Sundareshan and 1 more
OrganizationArizona Water Protection Fund“Recipient fund for 45 percent of collected withdrawal fees”Map →
OrganizationWater Conservation Grant Fund“Recipient fund for 45 percent of collected withdrawal fees”Map →
PersonPriya Sundareshan“Arizona State Senator who introduced SCR 1039”Map →
locationArizona“State where the legislation and land apply”Map →

Sources

Open source document

apps.azleg.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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