House Speaker David Gowan

PHOENIX — The fate of a new development in Cochise County cities could depend on how Gov. Doug Ducey feels about creating exceptions to existing water supply laws.

On a 33-25 margin, the state House gave final approval Thursday to lifting a key barrier in the path of a Sierra Vista developer: Castle and Cooke, which wants to build the 7,000-residence Tribute development.

The legislation, SB 1268, would allow any city in that county or in Yuma County to opt out of county ordinances that require developers to show a 100-year supply of water. It needs final Senate approval before going to the governor.

The measure to loosen the rules comes against the backdrop of Ducey singling out water as a critical issue in his State of the State speech in January. He praised prior state leaders for having the foresight to enact the 1980 Groundwater Management Act, which requires some areas of the state (notably Phoenix, Tucson and Prescott) to curtail use to balance what’s being pumped with what’s being recharged into the aquifer. A related 2007 law allows counties (including Cochise) outside of those “active management areas” to require builders to show they have assured water supplies.

In his earlier speech, Ducey said he’s put together a group that is “charting the path forward,” including investigating new long-term sources for water and exploring additional conservation opportunities.

Gubernatorial press aide Annie Dockendorff said Ducey would not comment on the new legislation.

“Ensuring the certainty and sustainability of Arizona’s water supply is of high priority for Gov. Ducey,” she said. “He will consider the legislation from that perspective when it reaches his desk.”

House approval, largely along party lines, was spurred by an impassioned speech by Speaker David Gowan, who represents the Sierra Vista area.

“This is our region we’re talking about,” he told colleagues. “We know our region.”

Gowan criticized “environmentalist groups who want to lay waste to our region.” He chided them for filing prior lawsuits against Fort Huachuca over its use of water from the aquifer.

That, however, has nothing to do with the current litigation over the right of Castle and Cooke to construct Tribute.

That fight involves the federal government suing to overturn a finding by the state Water Resources Department that the area has a 100-year assured water supply, a requirement under the county ordinance for new construction. The dispute in court is how much water the federal government is entitled to claim, to ensure water for the San Pedro River riparian area.

If this bill is signed into law and Sierra Vista opts out of the ordinance, Tribute’s developers will no longer need the assured water-supply certification.

That alarms Rep. Rosanna Gabaldón, D-Green Valley.

“Homes may be built that may run out of water before their mortgages are paid,” she argued.

Gowan said lawmakers from other areas of the state should not interfere with the region’s economic development. “There is water there,” he said. “And we have enough to make sure we put people back to work and that other people who want a private home, who want private property, have that ability.”

Rep. Noel Campbell of Prescott was the lone Republican to break party ranks. He said the Legislature should let the lawsuit, now on appeal, play out before changing state policy in this way.


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