Arizona 2023 2023 Regular Session

Arizona Senate Bill SB1257 Comm Sub / Analysis

Filed 03/16/2023

                      	SB 1257 
Initials PAB/AH 	Page 1 	Caucus & COW 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
Senate: NREW DPA 5-2-0-0 | 3
rd
 Read 16-13-1-0 
House: NREW DP 6-4-0-0 
 
SB 1257: water resources; assistant director 
Sponsor: Senator Petersen, LD 14 
Caucus & COW 
Overview 
Requires the Arizona Department of Water Resources (ADWR) Director to appoint an Assistant 
Director to coordinate with the Water Infrastructure Finance Authority of Arizona (WIFA) and water 
users to work on projects that increase water supply and water storage capacity. 
History 
ADWR 
ADWR was established in 1980 to be responsible for water planning and regulation of all state 
waters (Laws 1980, 4th Special Session, Chapter 1). The ADWR Director has general control and 
supervision of surface water and groundwater to the extent allowed by statute (A.R.S. § 45-103). 
All non-federal dams in Arizona are also under the director's jurisdiction and it is unlawful to 
construct, reconstruct, repair, operate, maintain, enlarge, remove or alter any dam without the 
director's approval (A.R.S. § 45-1202). The ADWR Director is also empowered to establish and 
organize divisions within the department and hire and define the duties and terms of employment 
for any personnel deemed necessary to carry out the department's roles and responsibilities 
(A.R.S. § 45-104). 
WIFA 
WIFA provides financial assistance to political subdivisions, tribal communities and other entities 
for water infrastructure and projects that enhance water supplies. It consists of a governing board 
with nine voting members and nine nonvoting advisory members (including the ADWR Director 
or the director's designee) who evaluate and approve funding requests. ADWR provides technical 
assistance to the WIFA Board (A.R.S. § 49-1206). In addition to its governing board, WIFA has 
several committees which oversee the various funds it administers (A.R.S. §§ 49-1207 and 49-
1208). Three WIFA funds may finance projects to increase water supply and water storage 
capacity:  
1) The Water Supply Development Revolving Fund finances projects to acquire additional 
water supplies, develop various facilities to store and deliver water and water supply 
studies. Loans from this fund cannot exceed $3,000,000 and grants cannot exceed 
$2,000,000 (A.R.S. §§ 49-1201 and 49-1273); 
2) The Long-term Water Augmentation Fund finances projects to import water from outside 
Arizona as well as projects to purchase imported water or water rights, acquire or construct 
water-related facilities to convey or deliver imported water within Arizona and provide 
financial assistance to eligible entities to refinance water supply development projects. 
When determining the priority of projects to finance, WIFA relies in part on water supply 
and demand assessments conducted by ADWR. At least 75% of monies appropriated to 
this fund in FYs 2023-2025 must be used for water importation projects (A.R.S. §§ 49-
1303 and 49-1304); and    	SB 1257 
Initials PAB/AH 	Page 2 	Caucus & COW 
3) The Water Conservation Grant Fund may finance programs or projects that improve water 
reliability, which may include programs or projects to promote groundwater recharge, 
improved aquifer health and projects that facilitate coordinated water management 
including groundwater storage and recovery. Program grants cannot exceed $3,000,000 
and project grants cannot exceed $250,000 (A.R.S. §§ 49-1332 and 49-1333). 
Provisions 
1. Requires the ADWR Director to appoint an Assistant Director who is responsible exclusively 
for coordinating with WIFA and water users to work on projects that will: 
a) augment water supplies through importation of water from outside the state; 
b) increase in-state water storage capacity through measures including construction and 
improvement of dams; and 
c) collaborate with federal, state and local government officials. (Sec. 1) 
2. Makes technical and conforming changes. (Sec. 1-3) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note