Assigned to NR FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session FACT SHEET FOR H.B. 2638 on-farm irrigation efficiency program; continuation Purpose Extends the On-Farm Irrigation Efficiency Pilot Program (Pilot Program) from January 1, 2027, to January 1, 2030. Background The Pilot Program and the On-Farm Irrigation Efficiency Fund (Fund) were established by the Legislature in 2022 for the purposes of providing grants and collecting 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 monies from legislative appropriations, grants from federal agencies and any other lawful source. The Fund is administered through the University of Arizona's (U of A) Cooperative Extension and monies from the Fund may be granted to qualified applicants for acquiring and installing on-farm irrigation efficiency systems to replace or modify flood irrigation systems. In determining whether to approve an on-farm irrigation efficiency system application, the U of A Cooperative Extension may give preference to a system that the U of A Cooperative Extension determines will: 1) most cost-effectively reduce on-farm water usage; 2) minimize energy usage to the benefit of Arizona; and 3) maximize any other irrigable land or crops grown on the irrigable land. The Pilot Program is repealed on January 1, 2027 (Laws 2022, Ch. 332). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Extends the Pilot Program until January 1, 2030. 2. Becomes effective on the general effective date. House Action NREW 2/11/25 DP 9-0-0-1 3 rd Read 2/20/25 58-0-2 Prepared by Senate Research March 7, 2025 SB/SN/slp