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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2055: brackish groundwater recovery program
Sponsor: Representative Griffin, LD 19
Committee on Natural Resources, Energy & Water
Overview
Establishes the Brackish Groundwater Recovery Program and an associated fund under the Water Infrastructure Finance Authority. Allows Long-Term Water Augmentation Fund monies to be used for brackish groundwater recovery projects.
History
Laws 1989, Chapter 280 established the Wastewater Management Authority of Arizona (WMA) and allowed cities, town, counties and sanitary districts to borrow money or receive financial assistance from the WMA. Laws 1998, Chapter 72 repealed the WMA and established the Water Infrastructure Finance Authority of Arizona (WIFA). Laws 2022, Chapter 366 reestablished WIFA as a separate state agency.
In 2022, WIFA's authority was expanded to provide financial resources for projects relating to water supply development in order to improve current and long-term water supplies WIFA may issue bonds, enter into short-term emergency loan agreements and administer federal grants. WIFA administers the Clean Water Revolving Fund, the Safe Drinking Water Revolving Fund, the Hardship Grant Fund, the Water Supply Development Revolving Fund, the Long-Term Water Augmentation Fund and the Water Conservation Grant Fund (A.R.S. §§ 49-1203, 49-1203.01) (Laws 2022, Chapter 366).
Monies in the Long-Term Water Augmentation Fund (LTWAF) are currently used for several outlined purposes, including, but not limited to: 1) funding water supply development projects that import water from outside of Arizona; 2) purchasing imported water or rights to imported water; 3) acquiring or constructing water-related facilities in Arizona to convey or deliver imported water; 4) conducting investigations, including environmental or other reviews; 5) contracting for water needs assessments; and 6) providing financial assistance to eligible entities (A.R.S. § 49-1303).
Provisions
1. Expands the purposes for which monies and assets in the LTWAF may be used to include developing one or more brackish groundwater recovery projects that create new sources of potable water within the boundaries of this state. (Sec. 1)
Brackish Groundwater Recovery Program Fund
2. Establishes the Brackish Groundwater Recovery Program Fund (Fund) under WIFA. (Sec. 2)
3. Specifies the monies that constitute the Fund. (Sec. 2)
4. States that monies in the Fund are continuously appropriated and exempt from lapsing. (Sec. 2)
5. Directs the state Treasurer, on notice from WIFA, to invest and divest monies in the Fund and requires monies earned from such investment to be credited to the Fund. (Sec. 2)
6. Requires all monies to be deposited in the Fund and held in trust. (Sec. 2)
7. Specifies that the monies in the Fund may not be appropriated or transferred by the Legislature for other purposes unless approved by a three-fourths vote of the members of each chamber of the Legislature. (Sec. 2)
8. Designates WIFA as the administrator of the Fund. (Sec. 2)
9. Stipulates that WIFA must establish as many other accounts and subaccounts as required to administer the Fund. (Sec. 2)
10. Limits the Fund's staffing and administrative costs to 10%. (Sec. 2)
11. Authorizes WIFA to use Fund monies and other Fund assets solely for the outlined purposes. (Sec. 2)
Fund Purposes and Rules
12. Requires WIFA to use monies from the Fund and the LTWAF to provide matching dollars for the development and construction of qualifying brackish groundwater recovery and desalination projects in Arizona. (Sec. 2)
13. Specifies that not more than $1 is to be awarded per $3 of total capital expenditures per qualifying project and that not more than one qualifying project is to be awarded monies per request for proposal. (Sec. 2)
14. Directs WIFA to, within 120 days, issue a request for proposals to develop and construct a qualifying brackish groundwater recovery and desalination project in Arizona. (Sec. 2)
15. Instructs WIFA to, within one year, evaluate proposals submitted in response to the outlined request for proposals and select a proposal for issuing matching dollars. (Sec. 2)
16. Specifies that WIFA must grant monies contingent on the execution of proposed projects and expenditure of capital costs within a time frame that WIFA determines following the award of monies. (Sec. 2)
WIFA Rulemaking Requirements re: Request for Proposals
17. Instructs WIFA to, in consultation with the Arizona Department of Water Resources and not later than 90 days after the effective date of this act, adopt rules to implement the outlined provisions and specifies what the rules must establish. (Sec. 2)
Miscellaneous
18. Makes technical changes. (Sec. 1)
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22. Initials CW/GG HB 2055
23. 1/21/2026 Page 0 Natural Resources, Energy & Water
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