Assigned to NREW & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
REVISED
FACT SHEET FOR H.B. 2026
appropriation; on-farm efficiency fund
Purpose
Appropriates $30 million from the state General Fund (state GF) in FY 2024 to the
On-Farm Irrigation Efficiency Fund (Fund).
Background
In cooperation with the U.S. Department of Agriculture, one or more colleges in each state
may provide for agricultural extension work to diffuse useful and practical information, develop
practical applications of research knowledge and give practical demonstrations of existing or
improved practices or technologies to persons who do not attend the college relating to:
1) agriculture; 2) uses of solar energy with respect to agriculture; 3) home economics; and 4) rural
energy. The federal Smith-Lever Act of 1914 (Act) authorized the Arizona Board of Regents to
receive appropriated grant monies under the Act and organize and conduct agricultural extension
work in connection with the College of Agriculture of the University of Arizona. The University
of Arizona Cooperative Extension (Cooperative Extension) offers services relating to: 1) 4-H
youth development; 2) agriculture and natural resources; 3) family, consumer and health sciences;
and 4) tribal extension (7 U.S.C. §§ 341 and 342; A.R.S. § 3-121; and UA).
In 2022, the Legislature established the On-Farm Irrigation Efficiency Pilot Program (Pilot
Program) and the Fund, both administered by the Cooperative Extension, to provide grants and
collect data for on-farm irrigation efficiency systems to reduce on-farm use of groundwater,
surface water, mainstream Colorado River water or water delivered through the Central Arizona
Project, while minimizing or eliminating the use of flood irrigation or fallowing to reduce on-farm
use. The Fund consists of legislative appropriations, grants from federal agencies and monies from
any other lawful source. Fund monies may be granted to qualified applicants to acquire and install
an approved on-farm irrigation efficiency system to replace or modify flood irrigation systems, if
certain conditions are met. The Pilot Program and Fund terminate on January 1, 2027.
An on-farm irrigation efficiency system is a water delivery system consisting of all
component parts and equipment necessary to deliver water to an irrigable field through a method
other than flood irrigation (Laws 2022, Ch. 332).
The Joint Legislative Budget Committee (JLBC) fiscal note estimates that H.B. 2026
would cost the state GF $30 million (JLBC fiscal note).
Provisions
1. Appropriates $30 million from the state GF in FY 2024 to the Fund. FACT SHEET – Revised
H.B. 2026
Page 2
2. Becomes effective on the general effective date.
Revisions
• Updates the fiscal impact statement.
House Action
NREW 1/24/23 DP 9-0-0-1
APPROP 2/8/23 DP 15-0-0-0
3
rd
Read 2/22/23 60-0-0
Prepared by Senate Research
April 19, 2023
RA/FB/slp