ARIZONA STATE SENATE
Phoenix, Arizona
water development block
grants
Purpose
Establishes the water
development block grant fund to assist cities and towns with the development
and enhancement of water resources.
Background
Current statute contains
grants and low-interest financing programs for water infrastructure activities
through the Water Infrastructure Financing Authority (WIFA) and the Greater
Arizona Development Authority (GADA).
WIFA provides loans for drinking water and wastewater facilities and
projects, source water protection and land acquisition. However, acquiring water rights, building
reservoirs and financing future growth have historically been a lower priority
for WIFA funds.
In addition to other public projects, GADA also assists Arizona communities and tribal governments with the development and financing of public water infrastructure projects. Generally, GADA prioritizes projects based on local support for the project, the project’s impact on the community, the source of permanent funding for the project, and sufficient financial and managerial capacity to operate and maintain the project.
Some small cities and towns
without direct access to Central Arizona Project water are concerned about
future water availability as their communities grow. Neither WIFA nor GADA financing programs directly address the
development of new water resources
for communities. S.B. 1083 establishes
the water development block grant fund to assist cities and towns that rely
solely on underground water with the development of new water resources and the
improvement of existing resources.
Because the bill establishes a fund but does not deposit monies into it,
there is no fiscal impact to the state general fund during the current
biennium.
Provisions
1. Establishes the water development block grant program within the Department of Water Resources (ADWR) to assist cities and towns with developing new water resources, enhancing the productivity of current water resources, recharging treated effluent and improving existing municipal water systems.
2. Establishes the water development block grant fund. Continuously appropriates fund monies, and directs the Treasurer to invest and divest monies in the fund and credit interest earnings to the fund.
3. Allows ADWR to award grants from the fund and requires grant recipients to provide ongoing progress and performance standard reports.
4. Directs ADWR to consider the city or town’s application, comprehensive water resources plan and the ability to comply with progress and performance standards in awarding the grants.
5. Limits eligibility for grants to cities and towns that own and operate their own water system, rely solely on pumped underground water and have no access to Central Arizona Project water, demonstrate that the water supply and funds for resource development are limited and have a comprehensive water resources plan.
6. Provides for a general effective date.
Amendments
Adopted by the NRAE Committee
1. Allows fund monies to be used to recharge treated effluent.
2. Eliminates the requirement that a city operate a public water system in order to qualify for funding.
3. Makes technical and clarifying changes.
Senate Action
NRAE 2/14/02 DPA 6-0-2-0
APPROP 1/29/02 DP 11-0-1-0
Prepared by Senate Staff
January 15, 2002