The proposed bill would update current statutes by establishing a new Agriculture and Water Innovation Fund and a Pilot Program to improve water use efficiency in agriculture through grants for innovative technologies, administered by the Arizona Department of Agriculture (AZDA). The bill outlines provisions for continuous fund appropriation, grant distribution guidelines, and reporting requirements on the effectiveness of funded projects. It also introduces new definitions for terms like "farm unit" and "innovative technology," and specifies conditions under which grant recipients may not qualify for state tax credits. Additionally, the bill would repeal the existing Pilot Program and Agriculture and Water Innovation Fund on January 1, 2029, while extending certain provisions such as the moratorium on groundwater withdrawal fees. It includes administrative changes, such as requiring annual reports from the AZDA on fund activities and allowing third-party reviewers for grant applications. Overall, these updates aim to enhance Arizona's water resource management and promote sustainable agricultural practices.

Statutes affected:
Introduced Version: 3-109.04, 45-611, 45-615.01, 35-190, 45-411.01, 48-4831
House Engrossed Version: 3-109.04, 37-132, 45-611, 45-615.01, 35-190, 37-202, 41-1092.08, 38-611, 37-107, 9-461.06, 11-805, 37-312, 45-411.01, 48-4831