WIFA details long‑term water augmentation process; Legislature passes concurrent resolution and memorial supporting recharge and future augmentation funding

Chelsea McGuire, interim director of the Water Infrastructure Finance Authority, told the committee WIFA operates like a bank for water projects and administers five funds, including state revolving funds, a Water Conservation Grant Fund, a Water Supply Development Revolving Fund (rural fund), and the Long‑Term Water Augmentation Fund.

“Think of us as a bank,” McGuire said, describing WIFA’s role providing below‑market loans, forgivable principal and project managers who guide borrowers. She said WIFA’s state revolving fund portfolio totals about $1.2 billion and supports Clean Water and Safe Drinking Water projects including sewer upgrades, storage tanks, PFAS remediation and advanced water purification projects. McGuire said WIFA’s recent Water Conservation Grant Fund (about $200 million initial ARPA allocation) supported roughly 158 approved projects expected to save an estimated 5.5 million acre‑feet of water over their lifetimes; the board identified additional demand and the governor allocated another $14 million for a second round.

On the Long‑Term Water Augmentation Fund, McGuire said the 2022 statute envisioned a $1 billion commitment to identify and help bring augmented water supplies into Arizona. WIFA currently holds roughly $450 million of the anticipated commitment. McGuire described a three‑phase competitive project development process: (1) solicit qualified teams and project concepts, (2) put selected teams on contract to perform in‑depth feasibility analyses (financial, environmental, permitting, political), and (3) enter project development with the successful teams. The process is intended to produce fully vetted projects before substantial public investment.

McGuire listed example augmentation categories from WIFA’s solicitation—ocean desalination with inland delivery or exchange, imported surface water from outside Arizona, brackish groundwater desalination and managed floodwater capture—and stressed that WIFA is seeking technical teams able to design, finance, permit and operate projects.

Public comment included Sandy Barr of the Sierra Club’s Grand Canyon chapter, who said she opposed HCR 2016’s broad statement supporting a reinstated augmentation appropriation without guardrails and objected to prior nondisclosure negotiations on large out‑of‑state desalination proposals. “There is no such thing as new water,” Barr said, urging prioritization of conservation.

The committee considered House Concurrent Resolution 2016, a legislative statement committing to reinstating the full three‑year appropriation envisioned for the Long‑Term Water Augmentation Fund as budget conditions improve. A motion to return HCR 2016 with a due‑pass recommendation passed; the committee recorded the outcome as 6 ayes and 2 nays (roll call recorded in committee minutes). The committee also considered House Concurrent Memorial 2003, which records the legislature’s interest that ADWR and the State Land Department focus on increasing groundwater recharge infrastructure and notes a DWR report identifying 331 potential underground water storage sites; the motion to return HCM 2003 passed with a committee vote recorded as 5 ayes and 3 nays with two members absent.

McGuire told members WIFA is not asking for a large new appropriation in the immediate session but sought the legislature’s continued political support and small additional conservation funding. She said WIFA will continue the competitive solicitation and publish feasibility work in an open, public phase of the process.