House Bill 2873 Summary

• Establishes a new Water Infrastructure Finance Authority of Arizona board with 9 voting members (4 from large counties, 4 from small counties, 1 finance expert) and 9 advisory members from state agencies and legislature to govern water financing programs.

• Creates three new funding mechanisms: a long-term water augmentation fund ($333-334 million annually) to finance water supply development projects and import water; a water supply development revolving fund for loans to eligible entities outside active management areas; and a water conservation grant fund for voluntary conservation programs.

• Authorizes the authority to issue long-term water augmentation bonds, enter into public-private partnerships for water-related facilities, and facilitate projects to import water into Arizona while maintaining director of water resources approval for Colorado River agreements.

• Establishes evaluation criteria for funding projects based on benefits to Arizona residents, cost-effectiveness, reliability, environmental requirements, and ability to repay, with preference for projects serving multiple jurisdictions and maximizing leverage of federal funding.

• Requires the department of water resources to complete water supply and demand assessments for all 46 groundwater basins at least once every five years, with $3.5 million appropriated for this purpose.