environment; 2026-2027.

This bill establishes annual groundwater withdrawal fees for specific areas in Arizona, including Prescott, Santa Cruz, Tucson, Phoenix, and Pinal, with a maximum charge of $5 per acre-foot. The collected funds are allocated to cover administrative costs, water supply augmentation, conservation assistance, water banking, and the purchase of older water rights, while also creating a dedicated fund to help irrigation districts build and repair wells. Small-scale farmers using fewer than ten acres for irrigation are exempt from these fees unless their land is part of a larger integrated farming operation. The legislation applies to individuals or entities that withdraw and beneficially use groundwater, excluding stored water from certain areas.