State’s Ag‑to‑Urban law could unlock development credit in Queen Creek; council hears implementation plan

Town staff briefed the council on Senate Bill 1611, the Ag‑to‑Urban legislation signed June 30, 2025, which creates a state program allowing owners of irrigated agricultural land to relinquish irrigated rights in exchange for groundwater‑savings credits that can be pledged to obtain certificates of assured water supply for residential development.

Intergovernmental Relations Director Heather Wilkie and Utilities Director Mark Skocific explained the program’s main features and how Queen Creek property owners might participate. Wilkie said the town has identified about 4,210 acres (light green on the town map presented) that could be eligible — roughly 60% of the town’s undeveloped lands excluding state trust land and certain other areas. Eligibility requires the land to have been irrigated in at least three of the last five years. Under the law, eligible applicants receive a groundwater savings credit of 1.5 (acre‑feet) for every acre relinquished; applicants must also enroll in the Central Arizona Groundwater Replenishment District (CAGRD) for replenishment and file a real estate report with the Department of Water Resources (ADWR).

Wilkie said the program becomes effective Sept. 26, 2025, allowing applications to ADWR while ADWR adopts program rules (required by June 30, 2026). She described the program as available to Queen Creek landowners for five years, or up to 10 years if the town becomes a designated water provider under the law. Town staff and consultants also worked with ADWR to update the agency’s groundwater demand calculator as part of negotiations on the bill.

Mark Skocific said staff is preparing program administration materials and aims to provide a draft town process for council review in mid‑September. Staff emphasized they plan to identify all eligible properties and provide assistance to property owners of varying levels of experience so they can participate in an orderly way. Skocific estimated the program implementation and hydrology study steps could take six to nine months, with first development projects from the program appearing in 24–36 months and construction beginning thereafter.

Conservation measures included in the legislation limit the town’s ability to require certain landscaping and turf minimums on Ag‑to‑Urban properties; the presentation said those preemptions apply only to properties that use the program. Town staff noted the town preserved its lake program supported by community effluent and said school and recreational turfs were preserved as allowed uses for turf exceptions.

No council action was required; council members thanked staff and staff said they will return with an administrative approach and outreach plan.