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ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2737

 

groundwater permits; technical correction

(NOW: water supply development; reclamation projects)

Purpose

Modifies the definition of water supply development as it relates to the Water Infrastructure Finance Authority (WIFA) to include planning, designing, building or developing water-related facilities, permits or plans reasonably necessary for those facilities for remediation, including by a reclamation or remediation project that is approved by the U.S. Environmental Protection Agency (EPA) and that increases the availability of water.

Background

The Water Supply Development Revolving Fund and the Long-Term Water Augmentation Fund are administered by WIFA and consist of statutorily outlined monies, gifts, grants, donations, interest and legislative appropriations (A.R.S. §§ 49-1203; 49-1271; and 49-1302).

Monies in the Water Supply Development Revolving Fund may be used for: 1) making loans to eligible entities in Arizona for water supply development projects; 2) Making grants or providing technical assistance to eligible entities for water supply development projects in Arizona; 3) purchasing or refinancing debt obligations of water providers at or below market rate if the debt obligation was issued for a water supply development purpose; 4) providing financial assistance to water providers with bonding authority to purchase insurance for local bond obligations incurred by them for water supply development purposes; and 5) other statutorily prescribed uses (A.R.S. § 49-1273).

Monies and other assets in the Long-Term Water Augmentation Fund may be use for:
1) funding water supply development projects that import water from outside the boundaries of Arizona; 2) providing financial assistance to eligible entities for the purposes of financing or refinancing water supply development projects within Arizona, including projects for conservation through reducing existing water use or more efficient uses of existing water supplies;
3) guaranteeing debt obligations of eligible entities that are issued or incurred to finance or refinance water supply development projects within Arizona or providing credit enhancements in connection with these debt obligations; and 4) other statutorily prescribed uses (A.R.S. § 49-1303).

Water supply development means: 1) acquiring water, water rights or contracts for water to augment the water supply of a water provider; 2) planning, designing, building or developing water-related facilities for conveyance or delivery of water, storage or recovery of water, reclamation and reuse of water, replenishment of groundwater or active or passive stormwater recharge structures that increase water supplies; and 3) conservation through reducing existing water use or more efficient uses of existing water supplies (A.R.S. § 49-1201).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Modifies the definition of water supply development to include planning, designing, building or developing water-related facilities, permits or plans reasonably necessary for those facilities for remediation, including by a reclamation or remediation project that is approved by the EPA and that increases the availability of water.

2.   Makes technical changes.

3.   Becomes effective on the general effective date.

House Action

NREW            2/20/25      DPA/SE    5-3-0-2

3rd Read          2/26/25                        53-6-1

Prepared by Senate Research

March 7, 2025

SB/slp