SB 1740 Summary

• Establishes the Water Infrastructure Finance Authority of Arizona as an independent entity (separate from Arizona Finance Authority) with a dedicated board to manage water financing programs and funds.

• Creates three major funding mechanisms: the Water Supply Development Revolving Fund (up to $3 million loans for water projects outside active management areas), the Long-Term Water Augmentation Fund ($333-334 million annually for water import projects and supply development), and the Water Conservation Grant Fund (grants up to $3 million for conservation programs).

• Appropriates $334 million in fiscal year 2022-2023 and $333 million each in fiscal years 2023-2024 and 2024-2025 to the Long-Term Water Augmentation Fund from transaction privilege tax revenues.

• Authorizes the Authority to issue long-term water augmentation bonds, enter public-private partnerships for water projects, and acquire or construct water-related facilities to convey imported water within the state.

• Requires the Director of Water Resources to conduct water supply and demand assessments for all groundwater basins at least once every five years and terminates the Authority on July 1, 2027, unless debts or obligations remain outstanding.