STATEMENT: Gallego on Gov. Hobbs Terminating Fondomente Lease
WASHINGTON, DC — Today, Rep. Ruben Gallego (AZ-03) released the following statement in response to Gov. Katie Hobbs terminating Fondomente’s lease in the Butler Valley and announcing Arizona would not renew the other leases that are set to expire in February 2024.
Statement from Rep. Ruben Gallego (AZ-03):
“Saudi Arabia should never have been to steal Arizona’s water. I applaud the Governor for terminating Fondomente’s lease, but we must ensure this can never happen in Arizona again by passing my Domestic Water Protection Act. That’s how we can forever keep Arizona’s water for Arizonans.”
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.
Rep. Gallego’s legislation would ensure sweetheart deals like the Fondomonte one would not be possible in any state.
The bill builds on Rep. Gallego’s continued efforts to protect Arizona’s water. In May, Rep. Gallego introduced the Drought Related Overpricing Prevention (DROP) Act to stop outside investors from buying up scarce Western water and selling it at excess prices.