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Wednesday, March 12, 2025

Arizona House sues water agency over alleged illegal housing cost increases

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Michael Carbone, Arizona State Representative for 25th District | https://en.wikipedia.org/wiki/Michael_Carbone

Michael Carbone, Arizona State Representative for 25th District | https://en.wikipedia.org/wiki/Michael_Carbone

The Arizona House of Representatives has filed a lawsuit against the Arizona Department of Water Resources (ADWR), accusing the agency of imposing illegal regulations that could raise housing costs. The legal action targets ADWR's "Alternative Path to Designation of Assured Water Supply" (ADAWS) rules, which require developers to secure 33.3% more water than necessary. According to the Legislature, this mandate forces future homebuyers to subsidize unreplenished groundwater pumping by other users.

Speaker Montenegro expressed strong opposition to these regulations, stating, "This is government overreach at its worst. The people of Arizona elected us to defend their interests, not allow unelected bureaucrats to impose illegal taxes that make the American Dream of homeownership even more out of reach." He further described the 33.3% groundwater tax as a significant overreach of executive authority and a direct attack on Arizona families.

The lawsuit contends that ADAWS regulations were implemented without legislative approval and exceed existing law. It argues that such mandates cannot be enforced legally. The Legislature has consistently opposed this groundwater tax through formal resolutions, including one adopted by the Joint Legislative Ad Hoc Study Committee on Water Security in December and another advanced by the House during the current session.

Speaker Montenegro emphasized the clarity of their case: "This is a cut-and-dried case. The department has gone rogue, acting as if it is above the law and unaccountable to the people of Arizona." He criticized ADWR for ignoring legislative warnings, bypassing stakeholder input, and rushing through rulemaking processes that would increase home prices for Arizonans.

The lawsuit aims to restore order and accountability within ADWR while defending legislative authority and preventing additional costs from being passed onto homebuyers in Arizona.

A copy of the lawsuit can be accessed here: https://www.azleg.gov/press/house/57LEG/1R/250310MONTENEGROADWR.pdf.

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