Goldwater Institute sues Arizona Department of Water

The Goldwater Institute has filed a lawsuit against the Arizona Department of Water Resources on behalf of the Home Builders Association of Central Arizona (HBACA). The suit alleges Governor Katie Hobbs’ office and the Arizona Department of Water Resources enacted a water rule without going through the proper legislative channels. Jon Riches, Vice President for Litigation at Goldwater Institute, joined us to discuss.

Last fall, the Arizona Department of Water Resources imposed a new rule requiring a 100-year groundwater supply across water management areas, not just at development sites. The Goldwater Institute’s legal team says the rule was allegedly imposed without legislative authorization or the required formal rule making process.

Riches explained the Department imposed two rules restricting several HBACA members from obtaining Certificates of Assured Water Supply: (1) an “AMA-Wide Unmet Demand Rule,” and (2) an “AMA-Wide Depth-to-Water Rule.”

The AMA-Wide Unmet Demand Rule states if any part of Phoenix Active Management Area (AMA) is expected to have water shortages in the next 100 years, then the entire AMA is considered to have a shortage.

The AMA-Wide Depth-to-Water Rule states if groundwater levels are expected to drop below 1,000 feet anywhere in the Phoenix AMA within the next 100 years, then it is considered insufficient water for development. It applies to the entire AMA.

Under these rules, Riches said, no developers, including members of the HBACA, can prove a 100-year water supply necessary to obtain a Certificate of Assured Water Supply and start construction on new development. In areas of growth, like Queen Creek and Buckeye, construction has come to a complete stop, contributing to the ongoing housing crisis in Arizona.

The ADWR’s Director, Tom Buschatzke, stands by its process for making determinations on assured water supply applications. The suit also said cities and towns including Buckeye and Queen Creek that are not yet designated water providers are being devastated by the ruling, as are the state’s efforts to build affordable housing.