Gallego Lauds News of Fondomonte No Longer Stealing Arizona’s Water
WASHINGTON – Following Gov. Katie Hobbs’ announcement that Fondomonte, the Saudi Arabian company that uses Arizona groundwater to grow alfalfa exported to feed cows in the Middle East, is no longer pumping water in the Butler Valley, Rep. Ruben Gallego (AZ-03) released the following statement:
“Fondomonte should never have been allowed to steal Arizona’s water to export crops. Thanks to actions by Gov. Hobbs and Attorney General Mayes, they no longer are. That’s a massive win for our state's water security. But more must be done. Companies hoping to mimic Fondomonte should not be allowed to follow suit. That’s why Congress must pass my legislation, The Domestic Water Protection Act, to ensure Arizona’s water stays in Arizona.”
The Domestic Water Protection Act would impose an excise tax on the sale and export of water-intensive crops grown by foreign companies or foreign governments in areas experiencing prolonged drought.
Specifically, the Domestic Water Protection Act of 2023 directly addresses water abuse by:
- Creating an excise tax on the sale and export of any water-intensive crop by any foreign company or government in areas experiencing prolonged drought;
- Imposing the excise tax at a 300% rate, reflecting the unjustifiable disparity in land lease rates between domestic and foreign producers in Arizona;
- Implementing the tax in a manner consistent with international trade agreements; and
- Using the proceeds from the tax for a Drought Trust Fund that will finance drought response and resilience efforts.