Arizona 2025 Regular Session

Arizona House Bill HB2412 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	REFERENCE TITLE: augmentation; Phoenix; Pinal; Tucson; AMA State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2412 Introduced by Representative Kolodin An Act amending sections 49-1210, 49-1303 and 49-1304, Arizona Revised Statutes; relating to the long-term water augmentation fund. (TEXT OF BILL BEGINS ON NEXT PAGE)
2	2
3	3
4	4
5	5
6	6
7	7
8	8
9	9	REFERENCE TITLE: augmentation; Phoenix; Pinal; Tucson; AMA
10	10	State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
11	11	HB 2412
12	12	Introduced by Representative Kolodin
13	13
14	14	REFERENCE TITLE: augmentation; Phoenix; Pinal; Tucson; AMA
15	15
16	16
17	17
18	18
19	19
20	20
21	21
22	22
23	23
24	24	State of Arizona
25	25
26	26	House of Representatives
27	27
28	28	Fifty-seventh Legislature
29	29
30	30	First Regular Session
31	31
32	32	2025
33	33
34	34
35	35
36	36
37	37
38	38
39	39
40	40	HB 2412
41	41
42	42
43	43
44	44	Introduced by
45	45
46	46	Representative Kolodin
47	47
48	48
49	49
50	50
51	51
52	52
53	53
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63
64	64	An Act
65	65
66	66
67	67
68	68	amending sections 49-1210, 49-1303 and 49-1304, Arizona Revised Statutes; relating to the long-term water augmentation fund.
69	69
70	70
71	71
72	72
73	73
74	74	(TEXT OF BILL BEGINS ON NEXT PAGE)
75	75
76	76
77	77
78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Section 49-1210, Arizona Revised Statutes, is amended to read: START_STATUTE49-1210. Limitations on water activities A. The authority may not purchase any mainstream Colorado River water or rights to mainstream Colorado River water and may not provide funding or financial assistance to transfer, purchase or lease any such water or rights to such water, except that this prohibition does not apply to any water or rights to water held by a federally recognized Indian tribe or to purchases made with monies from the clean water revolving fund established by section 49-1221 or the drinking water revolving fund established by section 49-1241. For purposes of this subsection, "mainstream Colorado River water" means Colorado River water that is available to satisfy entitlements in this state but that is not delivered through the central Arizona project. B. The authority may not enter into any agreements to convey or deliver water to a water user within the incorporated boundaries of a city or town, within a city or town water service area or within the boundaries of a certificate of convenience and necessity of a private water company without the written consent of the city, town or private water company. C. The authority may not operate or maintain any water-related facilities but may enter into agreements with public or private entities to operate or maintain water-related facilities owned or constructed by the authority. D. Except as provided in section 49-1203.01, subsection C, paragraph 4, the authority may not acquire or own water-related facilities that are either: 1. Located within this state and used to convey or deliver water that is not imported water. 2. Located outside this state. E. If the authority acquires imported water or long-term storage credits created from imported water in its own name, the authority may not sell or lease that water or those long-term storage credits for amounts greater than necessary to comply with section 49-1303, subsection E F or to repay long-term water augmentation bonds issued to fund any project to acquire the imported water or long-term storage credits. END_STATUTE Sec. 2. Section 49-1303, Arizona Revised Statutes, is amended to read: START_STATUTE49-1303. Long-term water augmentation fund; purposes; limitation A. Monies and other assets in the long-term water augmentation fund may be used for the following purposes: 1. Funding water supply development projects that import water from outside the boundaries of this state or that create new sources of water WITHIN the boundaries of this state. At least seventy-five percent of the monies in the fiscal years 2022-2023, 2023-2024 and 2024-2025 appropriations to the fund shall be reserved for one or more projects with this purpose, and those monies shall be accounted for separately. 2. Purchasing imported water or rights to imported water or purchasing new water created within this state or rights to new water created within this state. monies issued for this purpose may not be used to purchase existing water or rights to existing water from an in-state user unless the purchase is related to the creation of a new source of water within this state or rights to new water created within this state. 3. Acquiring or constructing water-related facilities in this state to convey or deliver imported water within the this state or newly created water within this state. 4. Conducting investigations, including performing environmental or other reviews. 5. Contracting for water needs assessments. 6. Providing financial assistance to eligible entities for the purposes of financing or refinancing water supply development projects within this state, including projects for conservation through reducing existing water use or more efficient uses of existing water supplies. 7. Guaranteeing debt obligations of eligible entities that are issued or incurred to finance or refinance water supply development projects within this state or providing credit enhancements in connection with these debt obligations. 8. Paying the costs to administer the fund. 9. Funding not more than ten full-time equivalent positions of the authority. b. At least seventy-five percent of the monies CONTEMPLATED in subsection A, paragraph 1 of this section and remaining within the Long-term water augmentation fund as of the EFFECTIVE date of this amendment to this section shall be used to fund water supply development projects that meet the requirements of subsection a, paragraph 1 of this section and that SUPPLY imported water for the benefit of end users IN the Phoenix, Pinal or Tucson Active mANAGEMENT areas. B. c. In providing financial assistance from the fund, the authority shall comply with section 49-1304. C. d. Monies in the long-term water AUGMENTATION fund may not be used to purchase conservation or other similar easements on real property. D. e. If the monies pledged to secure long-term water augmentation bonds issued pursuant to section 49-1309 become insufficient to pay the principal and interest on the long-term water augmentation bonds guaranteed by the long-term water AUGMENTATION fund, the authority shall direct the state treasurer to liquidate securities in the long-term water AUGMENTATION fund as may be necessary and shall apply those proceeds to make current all payments then due on the long-term water augmentation bonds. The state treasurer shall immediately notify the attorney general and auditor general of the insufficiency. The auditor general shall audit the circumstances surrounding the depletion of the long-term water AUGMENTATION fund and report the findings to the attorney general. The attorney general shall conduct an investigation and report those findings to the governor and the legislature. E. f. The authority shall take necessary actions to obtain full repayment for monies or financial assistance provided from the long-term water AUGMENTATION fund by the recipients of the funding or financial assistance or the recipients of any water supply development project made available from monies from the long-term water AUGMENTATION fund through water subcontracts, loan repayments, rates, fees, charges or otherwise, as appropriate. This subsection does not apply to monies spent by the authority for investigations and studies or monies spent in connection with loan guarantees or credit enhancement. END_STATUTE Sec. 3. Section 49-1304, Arizona Revised Statutes, is amended to read: START_STATUTE49-1304. Evaluation criteria for projects from the long-term water augmentation fund A. The authority shall determine the order and priority of water supply development projects proposed to be funded in whole or in part with monies from the long-term water augmentation fund, participation in projects to import water or allocation of imported water based on the following, as applicable: 1. The benefits of the project to current and future residents of this state, including the ability of the project to improve access to water supplies for use within this state and promote economic growth, in relation to the projected cost of the project. 2. The ability of the project to provide multiple water supply development benefits. 3. The projected costs of the project. 4. The ability of the project to address or mitigate water supply reductions to existing water users, considering the existence, feasibility and long-term reliability of mitigation measures available to the applicant or proposed beneficiaries, including the availability of water supplies from the Arizona water banking authority. 5. The cost-effectiveness of the project. 6. The reliability and long-term security of the water supply to be developed through the project. 7. Existing and planned conservation, best management practices and water management programs of the applicant or potential applicant. 8. The degree to which the project will maximize or leverage multiple available funding sources, including federal funding. 9. The applicant's ability to meet any applicable environmental requirements imposed by any federal or state agency. 10. The qualifications, industry experience, including experience with similar projects, general reputation and financial capacity of the applicant or any private partner, based on appropriate due diligence. 11. The feasibility of the project, including the feasibility of the proposed design and operation of the project. 12. Comments from water users, local citizens and affected jurisdictions. 13. For projects involving the construction or operation of water-related facilities, the safety record of any private partner. 14. Existing, near-term and long-term water demands compared to the volume and reliability of existing water supplies of the beneficiaries of the funding or project. In evaluating this criterion, the authority shall consider information contained in any applicable water supply and demand assessment that has been issued by the director of water resources pursuant to section 45-105, subsection B, paragraph 14, in addition to any other information submitted to evaluate this criterion. 15. Potential impacts to ratepayers. 16. The ability of the applicant and any public or private partner to fully repay all financial obligations to the authority. 17. For agreements entered into pursuant to section 49-1203.01, subsection C, paragraph 5, the impact of any such agreement on the ability of the authority to comply with the requirements of section 49-1303, subsection E F. 18. Other criteria that the authority deems appropriate. B. The board shall conduct background checks, financial checks and other reviews deemed appropriate for individual applicants, applicants' boards of directors and other partners of the applicants. END_STATUTE
79	79
80	80	Be it enacted by the Legislature of the State of Arizona:
81	81
82	82	Section 1. Section 49-1210, Arizona Revised Statutes, is amended to read:
83	83
84	84	START_STATUTE49-1210. Limitations on water activities
85	85
86	86	A. The authority may not purchase any mainstream Colorado River water or rights to mainstream Colorado River water and may not provide funding or financial assistance to transfer, purchase or lease any such water or rights to such water, except that this prohibition does not apply to any water or rights to water held by a federally recognized Indian tribe or to purchases made with monies from the clean water revolving fund established by section 49-1221 or the drinking water revolving fund established by section 49-1241. For purposes of this subsection, "mainstream Colorado River water" means Colorado River water that is available to satisfy entitlements in this state but that is not delivered through the central Arizona project.
87	87
88	88	B. The authority may not enter into any agreements to convey or deliver water to a water user within the incorporated boundaries of a city or town, within a city or town water service area or within the boundaries of a certificate of convenience and necessity of a private water company without the written consent of the city, town or private water company.
89	89
90	90	C. The authority may not operate or maintain any water-related facilities but may enter into agreements with public or private entities to operate or maintain water-related facilities owned or constructed by the authority.
91	91
92	92	D. Except as provided in section 49-1203.01, subsection C, paragraph 4, the authority may not acquire or own water-related facilities that are either:
93	93
94	94	1. Located within this state and used to convey or deliver water that is not imported water.
95	95
96	96	2. Located outside this state.
97	97
98	98	E. If the authority acquires imported water or long-term storage credits created from imported water in its own name, the authority may not sell or lease that water or those long-term storage credits for amounts greater than necessary to comply with section 49-1303, subsection E F or to repay long-term water augmentation bonds issued to fund any project to acquire the imported water or long-term storage credits. END_STATUTE
99	99
100	100	Sec. 2. Section 49-1303, Arizona Revised Statutes, is amended to read:
101	101
102	102	START_STATUTE49-1303. Long-term water augmentation fund; purposes; limitation
103	103
104	104	A. Monies and other assets in the long-term water augmentation fund may be used for the following purposes:
105	105
106	106	1. Funding water supply development projects that import water from outside the boundaries of this state or that create new sources of water WITHIN the boundaries of this state. At least seventy-five percent of the monies in the fiscal years 2022-2023, 2023-2024 and 2024-2025 appropriations to the fund shall be reserved for one or more projects with this purpose, and those monies shall be accounted for separately.
107	107
108	108	2. Purchasing imported water or rights to imported water or purchasing new water created within this state or rights to new water created within this state. monies issued for this purpose may not be used to purchase existing water or rights to existing water from an in-state user unless the purchase is related to the creation of a new source of water within this state or rights to new water created within this state.
109	109
110	110	3. Acquiring or constructing water-related facilities in this state to convey or deliver imported water within the this state or newly created water within this state.
111	111
112	112	4. Conducting investigations, including performing environmental or other reviews.
113	113
114	114	5. Contracting for water needs assessments.
115	115
116	116	6. Providing financial assistance to eligible entities for the purposes of financing or refinancing water supply development projects within this state, including projects for conservation through reducing existing water use or more efficient uses of existing water supplies.
117	117
118	118	7. Guaranteeing debt obligations of eligible entities that are issued or incurred to finance or refinance water supply development projects within this state or providing credit enhancements in connection with these debt obligations.
119	119
120	120	8. Paying the costs to administer the fund.
121	121
122	122	9. Funding not more than ten full-time equivalent positions of the authority.
123	123
124	124	b. At least seventy-five percent of the monies CONTEMPLATED in subsection A, paragraph 1 of this section and remaining within the Long-term water augmentation fund as of the EFFECTIVE date of this amendment to this section shall be used to fund water supply development projects that meet the requirements of subsection a, paragraph 1 of this section and that SUPPLY imported water for the benefit of end users IN the Phoenix, Pinal or Tucson Active mANAGEMENT areas.
125	125
126	126	B. c. In providing financial assistance from the fund, the authority shall comply with section 49-1304.
127	127
128	128	C. d. Monies in the long-term water AUGMENTATION fund may not be used to purchase conservation or other similar easements on real property.
129	129
130	130	D. e. If the monies pledged to secure long-term water augmentation bonds issued pursuant to section 49-1309 become insufficient to pay the principal and interest on the long-term water augmentation bonds guaranteed by the long-term water AUGMENTATION fund, the authority shall direct the state treasurer to liquidate securities in the long-term water AUGMENTATION fund as may be necessary and shall apply those proceeds to make current all payments then due on the long-term water augmentation bonds. The state treasurer shall immediately notify the attorney general and auditor general of the insufficiency. The auditor general shall audit the circumstances surrounding the depletion of the long-term water AUGMENTATION fund and report the findings to the attorney general. The attorney general shall conduct an investigation and report those findings to the governor and the legislature.
131	131
132	132	E. f. The authority shall take necessary actions to obtain full repayment for monies or financial assistance provided from the long-term water AUGMENTATION fund by the recipients of the funding or financial assistance or the recipients of any water supply development project made available from monies from the long-term water AUGMENTATION fund through water subcontracts, loan repayments, rates, fees, charges or otherwise, as appropriate. This subsection does not apply to monies spent by the authority for investigations and studies or monies spent in connection with loan guarantees or credit enhancement. END_STATUTE
133	133
134	134	Sec. 3. Section 49-1304, Arizona Revised Statutes, is amended to read:
135	135
136	136	START_STATUTE49-1304. Evaluation criteria for projects from the long-term water augmentation fund
137	137
138	138	A. The authority shall determine the order and priority of water supply development projects proposed to be funded in whole or in part with monies from the long-term water augmentation fund, participation in projects to import water or allocation of imported water based on the following, as applicable:
139	139
140	140	1. The benefits of the project to current and future residents of this state, including the ability of the project to improve access to water supplies for use within this state and promote economic growth, in relation to the projected cost of the project.
141	141
142	142	2. The ability of the project to provide multiple water supply development benefits.
143	143
144	144	3. The projected costs of the project.
145	145
146	146	4. The ability of the project to address or mitigate water supply reductions to existing water users, considering the existence, feasibility and long-term reliability of mitigation measures available to the applicant or proposed beneficiaries, including the availability of water supplies from the Arizona water banking authority.
147	147
148	148	5. The cost-effectiveness of the project.
149	149
150	150	6. The reliability and long-term security of the water supply to be developed through the project.
151	151
152	152	7. Existing and planned conservation, best management practices and water management programs of the applicant or potential applicant.
153	153
154	154	8. The degree to which the project will maximize or leverage multiple available funding sources, including federal funding.
155	155
156	156	9. The applicant's ability to meet any applicable environmental requirements imposed by any federal or state agency.
157	157
158	158	10. The qualifications, industry experience, including experience with similar projects, general reputation and financial capacity of the applicant or any private partner, based on appropriate due diligence.
159	159
160	160	11. The feasibility of the project, including the feasibility of the proposed design and operation of the project.
161	161
162	162	12. Comments from water users, local citizens and affected jurisdictions.
163	163
164	164	13. For projects involving the construction or operation of water-related facilities, the safety record of any private partner.
165	165
166	166	14. Existing, near-term and long-term water demands compared to the volume and reliability of existing water supplies of the beneficiaries of the funding or project. In evaluating this criterion, the authority shall consider information contained in any applicable water supply and demand assessment that has been issued by the director of water resources pursuant to section 45-105, subsection B, paragraph 14, in addition to any other information submitted to evaluate this criterion.
167	167
168	168	15. Potential impacts to ratepayers.
169	169
170	170	16. The ability of the applicant and any public or private partner to fully repay all financial obligations to the authority.
171	171
172	172	17. For agreements entered into pursuant to section 49-1203.01, subsection C, paragraph 5, the impact of any such agreement on the ability of the authority to comply with the requirements of section 49-1303, subsection E F.
173	173
174	174	18. Other criteria that the authority deems appropriate.
175	175
176	176	B. The board shall conduct background checks, financial checks and other reviews deemed appropriate for individual applicants, applicants' boards of directors and other partners of the applicants. END_STATUTE