appropriation; irrigation grandfathered rights; retirement

HB 2246 appropriates $50 million from Arizona's long-term water augmentation fund for the Department of Water Resources to compensate irrigation rights holders for permanently retiring or reducing their existing water rights. This directly affects agricultural water users who hold "grandfathered" irrigation rights, offering them financial compensation to reduce or eliminate their water usage. The bill requires the department to begin purchasing these rights by December 31, 2025, using funds specifically exempt from standard appropriation rules. The policy change focuses on incentivizing voluntary reductions in water allocation for irrigation through direct financial compensation.