STATE CAPITOL, PHOENIX – Arizona State Representative Chris Lopez today introduced House Bill 2826 to eliminate the state transaction privilege tax on prime contracting for concrete and other materials used to improve and maintain irrigation canals, thereby reducing the cost for farmers to improve irrigation efficiency and conserve water.

The bill applies to all materials and supplies used to improve and maintain ditches, lines, and canals on agricultural lands for the purpose of improving irrigation efficiency and conserving water.

Concrete-lined canals significantly reduce seepage losses compared to unlined earthen channels, where water infiltration into permeable soils can account for 30 to 50 percent or more of total conveyed volume, thereby conserving critical water resources and improving overall irrigation efficiency. Converting dirt canals to concrete-lined systems enhances hydraulic performance by increasing flow velocity, minimizing erosion and weed growth, and enabling substantial water savings, often thousands of acre-feet annually, while lowering long-term maintenance requirements.

“The House Republican Majority Plan is focused on affordability, and that starts with food on the table and the cost of water to produce that food,” said Representative Lopez. “Converting dirt canals to concrete-lined canals saves thousands of gallons of water, which reduces pumping costs, energy, and other expenses that go into the price of food. Eliminating the tax on concrete and other contracting costs to convert these canals to concrete lining not only helps to reduce the costs even further but also helps to conserve water at a time when water conservation has never been more critical for our state.”

Canal lining projects awarded by the Water Infrastructure Finance Authority of Arizona to irrigation districts like the Buckeye Water Conservation & Drainage District, San Carlos Irrigation and Drainage District, and Roosevelt Irrigation District are projected to save between 135,000 and 368,864 acre-feet over the respective lives of the projects. At a total cost of approximately $2 to 3 per acre-foot, this makes canal lining one of the most cost-effective tools WIFA and the State of Arizona have to save water.

By applying the prime contracting exemption to concrete and other materials used for improving irrigation ditches and canals, HB 2826 helps to make WIFA dollars go even farther and allows farmers to take proactive steps to save water and hold down food prices, advancing the House Majority Plan’s joint focus on affordability and water security for Arizona families.

Chris Lopez is a Republican member of the Arizona House of Representatives serving Legislative District 16, which includes portions of Pinal and Pima Counties.