State outlines Unified Water Infrastructure Plan, fee study to fund billions in water needs

Shalane DeBernardi, assistant director at the Division of Water Resources, presented an overview of the Unified Water Infrastructure Plan and an accompanying fee study during the Utah Watersheds Council meeting. The presentation summarized statutory changes from last year and the schedule the state must meet under House Bill 280 to create a prioritized, multi‑year plan for water projects.

The plan matters because the state faces large long‑term costs for water infrastructure. DeBernardi said estimates show maintenance, expansion and new construction needs could total about $60,000,000,000 by 2060. House Bill 280 (2024) created a new Water Infrastructure Fund (WIF) and directed the Water Development Coordinating Council to assemble a Unified Water Infrastructure Plan and to prioritize projects; subsequent legislation implemented some fund transfers and governance changes.

DeBernardi said agencies collected project submissions in a short application window and received nearly 3,700 project proposals from about 250 entities, with a combined estimated cost of roughly $17,500,000,000. Those project lists were divided among the three agencies identified by statute—drinking water, water quality and water resources—and initial plans were prepared by the June 30 statutory deadline. The Water Development Coordinating Council must compile those agency plans into the first UIP and provide a draft to the Utah Watersheds Council for advice before final adoption.

The presentation noted related statutory actions implemented by the 2025 Legislature. House Bill 285 moved some existing balances (for example, the old City Water Loan Fund) into the new Water Infrastructure Fund and adjusted which agencies must report fund status; the Division said UDAF and Housing and Community Development were removed from the list of agencies that must consolidate funds because their accounts fund projects beyond WIF eligibility.

A separate fee study — led by Zions Public Finance and required by statute — is evaluating whether a new user fee or tax is needed to provide ongoing revenue to the WIF. DeBernardi said the fee study work group includes a broad mix of providers (large and small, rural and urban), and the study is comparing current funding capacity to the identified project needs. The study is scheduled for completion this fall and will present options to the Legislature, including whether a new fee should be assessed and whether existing sales tax authority (the one‑sixteenth option) should be increased.

Council members asked whether the short application window created coverage gaps. DeBernardi and others said the primary gap was volume: many providers submitted projects but the state expects to open another submission period before the March 1 statutory deadline for the first UIP so entities that missed the first window can add projects. The presenters also noted the UIP process will change how state funds are awarded — entities able to self‑fund a project may not be prioritized for state dollars — and discussed how emergencies will be distinguished from lack of planning.

Next steps outlined by the Division include completing the fee study, finalizing prioritization rules and public‑comment processes, and coordinating public meetings and outreach (including using local watershed councils for input). The UIP must be substantially complete by March 1 of the year specified in statute, with project ranking by July 1 and the state water plan completed by the end of that year.

The Division encouraged watershed councils to provide comment on the UIP draft and said it is exploring a project portal so providers can keep project lists continually updated. DeBernardi asked watershed councils to contact her office (Shalane DeBernardi, Division of Water Resources) to coordinate local input.