A.R.S. tit. 49 ch. 8 — Arizona Revised Statutes Title 49 Chapter 8 — Water Infrastructure Finance Program

49-1201. Definitions In this chapter, unless the context otherwise requires: 1. "Authority" means the water infrastructure finance authority of Arizona. 2. "Board" means the water infrastructure finance authority board established by section 49-1206. 3. "Bonds of a political subdivision" means bonds issued by a political subdivision as authorized by law. 4. "Clean water act" means the federal water pollution control act amendments of 1972 (P.L. 92-500; 86 Stat. 816), as amended by the water quality act of 1987 (P.L. 100-4; 101 Stat. 7). 5. "Concession agreement" means any lease, ground lease, franchise, easement, permit or other binding agreement transferring rights for the use or control, in whole or in part, of water-related facilities by the authority to a private partner in accordance with this chapter. 6. "Drinking water facility": (a) Means a community water system or a nonprofit noncommunity water system as defined in the safe drinking water act of 1974 (P.L. 93-523; 88 Stat. 1660; P.L. 95-190; 91 Stat. 1393; P.L. 104-182; 110 Stat. 1613) that is located in this state. (b) Does not include water systems owned by federal agencies. 7. "Financial assistance loan repayment agreement" means an agreement to repay a loan provided to design, construct, acquire, rehabilitate or improve water or wastewater infrastructure, related property and appurtenances or a loan provided to finance a water supply development project. 8. "Imported water" means any water that originates outside of this state and that is made available to water users within this state by conveyance or exchange or otherwise through projects that are funded or financed in whole or in part with monies from the long-term water augmentation fund. 9. "Import water" means to make water originating outside of this state available to water users within this state by conveyance or exchange or otherwise through projects that are funded or financed in whole or in part with monies from the long-term water augmentation fund. 10. "Indian tribe" means any Indian tribe, band, group or community that is recognized by the United States secretary of the interior and that exercises governmental authority within the limits of any Indian reservation under the jurisdiction of the United States government, notwithstanding the issuance of any patent and including rights-of-way running through the reservation. 11. "Long-term water augmentation bonds" means bonds that are issued by the authority in accordance with article 4 of this chapter. 12. "Long-term water augmentation fund" means the fund established by section 49-1302. 13. "Nonpoint source project" means a project designed to implement a certified water quality management plan or this state's nonpoint source management plan that is developed pursuant to section 319 of the clean water act and approved by the United States environmental protection agency. 14. "Political subdivision" means a county, city, town or special taxing district authorized by law to construct wastewater treatment facilities, drinking water facilities or nonpoint source projects. 15. "Private partner" means a person, entity or organization that is not the federal government, this state or a political subdivision of this state. 16. "Public-private partnership project" means any water supply development project that is the subject of a public-private partnership agreement in accordance with this chapter. 17. "Safe drinking water act" means the federal safe drinking water act of 1974 (P.L. 93-523; 88 Stat. 1660; P.L. 95-190; 91 Stat. 1393; P.L. 104-182; 110 Stat. 1613), as amended in 1996. 18. "Technical assistance loan repayment agreement" means either of the following: (a) An agreement to repay a loan provided to develop, plan and design water or wastewater infrastructure, related property and appurtenances. The agreement shall be for a term of not more than three years and the maximum amount that may be borrowed is limited to not more than $500,000. (b) An agreement to repay a loan provided to develop, plan or design a water supply development project. 19. "Wastewater treatment facility" means a treatment works, as defined in section 212 of the clean water act, that is located in this state and that is designed to hold, cleanse or purify or to prevent the discharge of untreated or inadequately treated sewage or other polluted waters for purposes of complying with the clean water act. 20. "Water provider" means any of the following: (a) A municipal water delivery system as defined in section 42-5301. (b) A county water augmentation authority established under title 45, chapter 11. (c) A county water authority established under title 45, chapter 13. (d) An Indian tribe. (e) A community facilities district as established by title 48, chapter 4. (f) A public water system as prescribed in section 49-352. (g) A county with a population of less than three hundred thousand persons. (h) A natural resource conservation district. (i) For purposes of funding from the water supply development revolving fund pursuant to article 3 of this chapter only, a county that enters into an intergovernmental agreement or other formal written agreement with a city, town or other water provider regarding a water supply development project. 21. "Water-related facilities" means any facility related to the production, delivery, conservation or storage of water, including any canals, pipelines, desalination plants, pumping stations, storage projects, recovery wells, delivery and retention projects, water and wastewater treatment plants, and other equipment and facilities installed for water conservation purposes, together with any land, buildings or other improvements and equipment or personal property related thereto. 22. "Water supply development" means any of the following: (a) Acquiring water or rights to or contracts for water to augment the water supply of a water provider, including any environmental or other reviews, permits or plans reasonably necessary for that acquisition. (b) Planning, designing, building or developing water-related facilities, including any environmental or other reviews, permits or plans reasonably necessary for those facilities, for any of the following purposes: (i) Conveyance or delivery of water. (ii) Storage or recovery of water under title 45, chapter 3.1. (iii) Reclamation, remediation and reuse of water, including by a reclamation or remediation project that is approved by the United States environmental protection agency and that increases the availability of water. (iv) Replenishment of groundwater. (v) Active or passive stormwater recharge structures that increase water supplies. (c) Conservation through reducing existing water use or more efficient uses of existing water supplies. 49-1202. Water infrastructure finance authority of Arizona The water infrastructure finance authority of Arizona is established. The board shall govern the authority. 49-1203. Powers and duties of authority; definition A. The authority is a corporate and politic body and shall have an official seal that shall be judicially noticed. The authority may sue and be sued, contract and acquire, hold, operate and dispose of property. Notwithstanding any other law and unless expressly waived by the authority, the authority is not subject to any statutory requirement to pay another party's attorney fees or costs in any administrative or judicial proceeding. The authority is not a public service corporation subject to regulation by the corporation commission. B. The authority, through its board, may: 1. Issue negotiable water quality bonds pursuant to section 49-1261 for the following purposes: (a) To generate the state match required by the clean water act for the clean water revolving fund and to generate the match required by the safe drinking water act for the drinking water revolving fund. (b) To provide financial assistance to political subdivisions, Indian tribes and eligible drinking water facilities for constructing, acquiring or improving wastewater treatment facilities, drinking water facilities, nonpoint source projects and other related water quality facilities and projects. 2. Issue water supply development bonds for the purpose of providing financial assistance to eligible entities for water supply development purposes pursuant to sections 49-1274 and 49-1275. 3. Provide financial assistance to political subdivisions and Indian tribes from monies in the clean water revolving fund to finance wastewater treatment projects. 4. Provide financial assistance to drinking water facilities from monies in the drinking water revolving fund to finance these facilities. 5. Provide financial assistance from monies in the water supply development revolving fund to finance water supply development as prescribed by this article. 6. Guarantee debt obligations of, and provide linked deposit guarantees through third-party lenders to: (a) Political subdivisions that are issued to finance wastewater treatment projects. (b) Drinking water facilities that are issued to finance these facilities. 7. Provide linked deposit guarantees through third-party lenders to political subdivisions and drinking water facilities. 8. Apply for, accept and administer grants and other financial assistance from the United States government and from other public and private sources. 9. Enter into capitalization grant agreements with the United States environmental protection agency. 10. Adopt rules pursuant to title 41, chapter 6 governing the application for and awarding of wastewater treatment facility, drinking water facility and nonpoint source project financial assistance under this chapter, administering the clean water revolving fund and the drinking water revolving fund and issuing water quality bonds. 11. Hire a director who serves at the pleasure of the board and who shall hire staff for the authority. The board may prescribe the terms and conditions of the director's and staff's employment as necessary to carry out the purposes of the authority. The board shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses. The officers and employees of the authority may participate in the Arizona state retirement system established by title 38, chapter 5, article 2, and the board, consistent with section 38-656, subsection A, may provide that the authority's officers and employees participate in the state employee health and accident insurance prescribed by title 38, chapter 4, article 4. The officers and employees of the authority are exempt from any laws regulating state employment, including the following: (a) Title 41, chapter 4, article 4, relating to the state personnel system. (b) Title 41, chapter 4, articles 5 and 6, relating to state service. 12. Contract for or employ the services of outside advisors, attorneys, engineers, financial and other consultants and aides reasonably necessary or desirable to allow the authority to adequately perform its duties. 13. Contract and incur obligations as reasonably necessary or desirable within the general scope of authority activities and operations to allow the authority to adequately perform its duties. 14. Assess financial assistance origination fees and annual fees to cover the reasonable costs of administering the authority and the monies administered by the authority. Any fees collected pursuant to this paragraph constitute governmental revenue and may be used for any purpose consistent with the mission and objectives of the authority. 15. Perform any function of a fund manager under the CERCLA Brownfields cleanup revolving loan fund program as requested by the department. The board shall perform any action authorized under this article on behalf of the Brownfields cleanup revolving loan fund program established pursuant to chapter 2, article 1.1 of this title at the request of the department. In order to perform these functions, the board shall enter into a written agreement with the department. 16. Provide grants, staff assistance or technical assistance in the form of loan repayment agreements and other professional assistance to political subdivisions, any county with a population of less than five hundred thousand persons, Indian tribes and community water systems in connection with developing or financing wastewater, drinking water, water reclamation or related water infrastructure. Assistance provided under a technical assistance loan repayment agreement shall be in a form and under terms determined by the authority and shall be repaid not more than three years after the date that the monies are advanced to the applicant. Technical assistance provided by the authority does not create any liability for the authority or this state regarding designing, constructing or operating any infrastructure project. 17. Provide grants, staff assistance or technical assistance in the form of loan repayment agreements and other professional assistance in accordance with section 49-1273. Assistance provided under a technical assistance loan repayment agreement shall be repaid not more than three years after the date that the monies are advanced to the applicant. Technical assistance provided by the authority does not create any liability for the authority or this state regarding designing, constructing or operating any water supply development project. 18. Award financial assistance, including forgivable principal, for the remediation, closure or replacement of cesspools pursuant to section 11-671, subsection G. C. The authority may adopt rules pursuant to title 41, chapter 6 governing the application for and awarding of assistance under this chapter and the administration of the funds established by this chapter. D. The board shall deposit, pursuant to sections 35-146 and 35-147, any monies received pursuant to subsection B, paragraph 8 of this section in the appropriate fund as prescribed by the grant or other financial assistance agreement. E. The authority is not subject to title 41, chapter 23. In coordination with the department of administration, the authority shall establish procurement procedures by rule to administer the long-term water augmentation fund. F. For the purposes of the safe drinking water act and the clean water act, the department is the state agency with primary responsibility for administering this state's public water system supervision program and water pollution control program and, in consultation with other appropriate state agencies as appropriate, is the lead agency in establishing assistance priorities as prescribed by section 49-1224, subsection B, paragraph 3, section 49-1243, subsection A, paragraph 6 and section 49-1244, subsection B, paragraph 3. G. For the purposes of this section, "CERCLA" has the same meaning prescribed in section 49-201. 49-1203.01. Water infrastructure finance authority of Arizona; additional powers and duties A. The authority, acting through its board, shall: 1. Administer the long-term water augmentation fund in accordance with article 4 of this chapter. 2. Use monies from the long-term water augmentation fund established by section 49-1302 to investigate the feasibility of entering into agreements with public or private entities for projects to import water into this state. The authority may consider any existing studies or plans it deems relevant for this purpose. B. Except as limited in this chapter or by other laws and as reasonable or necessary to administer or carry out the purposes of the long-term water augmentation fund and water supply development revolving fund established by section 49-1271, the authority may: 1. Acquire, sell, lease, exchange or otherwise dispose of real and personal property of every kind within this state. 2. Apply for and hold permits that are required by law to engage in any of the activities described in this chapter. 3. Negotiate and enter into intergovernmental agreements and agreements with private and public entities within and outside of this state. 4. Contract for or perform feasibility studies of water storage, storage facilities and recovery wells. 5. Apply for and accept grants, gifts or donations of monies or other property from any source that may be spent for any purpose consistent with this chapter. 6. Conduct any other activities that are reasonably necessary and related to the powers and duties described in this chapter. C. Except as limited in this chapter or by other laws and as reasonable or necessary to administer or carry out the purposes of the long-term water augmentation fund, the authority may: 1. Issue long-term water augmentation bonds in accordance with article 4 of this chapter. The long-term water augmentation bonds shall be in the name of the authority, and the authority may pledge sources for security and payment of such bonds in accordance with article 4 of this chapter. 2. Issue refunding bonds if the authority deems refunding expedient. 3. Refund by issuing new bonds for any bonds issued by the authority if these bonds are secured from the same source of revenues as the bonds authorized by this chapter without regard to whether the bonds to be refunded have matured. 4. Take, hold and enforce a security interest in water-related facilities inside and outside of this state in connection with the terms of any agreement entered into by the authority if the authority determines that such a security interest is necessary to adequately protect this state's interests. 5. To the extent necessary to facilitate an approved water supply development project: (a) Plan, construct, acquire, own, improve and equip water-related facilities within this state to transport or deliver imported water within this state. (b) Negotiate and execute agreements to acquire, sell, lease, exchange, hold, sever or transfer imported water and rights to imported water. The authority may acquire imported water and rights to imported water in its own name. (c) Enter into and carry out contracts or subcontracts for the transport, treatment and delivery of imported water acquired by the authority. (d) Store imported water and acquire, hold, assign or otherwise dispose of credits for imported water registered to storage accounts under title 45, chapter 3.1. (e) Negotiate and enter into agreements to use existing water-related facilities. 6. Conduct investigations, including performing environmental or other reviews, in association with any of the activities prescribed by paragraphs 4 and 5 of this subsection. 7. Assess fees and charges in connection with the authority's design, construction, acquisition, improvement, equipping and ownership of water-related facilities, including for the conveyance or delivery of water and in connection with operation and maintenance agreements entered into by the authority in connection with water-related facilities. Any fees collected pursuant to this paragraph constitute governmental revenue, may be used for any purpose consistent with the purposes of the authority and must be deposited in the long-term water augmentation fund. D. This chapter does not replace, supplant or diminish the powers and duties of the director of water resources set forth in title 45, including sections 45-105 and 45-107. 49-1204. Annual audit and report A. The board shall cause an audit to be made of the funds administered by the authority. The audit shall be conducted by a certified public accountant within one hundred twenty days after the end of the fiscal year. The board shall immediately file a certified copy of the audit with the auditor general. B. The auditor general may make any further audits and examinations as deemed necessary and may take appropriate action relating to the audit or examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes no official action within twenty days after the audit is filed, the audit is deemed sufficient. C. The board shall pay any fees and costs of the certified public accountant and auditor general under this section from the funds administered by the board. D. Not later than January 1 of each year the board shall make an annual report of its activities, including a copy of the annual audit, to the governor, the president of the senate and the speaker of the house of representatives. E. In addition to the reporting requirements of subsection D of this section, not later than January 1 of each year, the board shall make an annual report that summarizes financial assistance, including forgivable principal, awarded by the board pursuant to section 11-671, subsection G. The report shall include all of the following: 1. The number and location of cesspools that have been remediated or replaced using financial assistance, including forgivable principal. 2. The total amount of financial assistance, including forgivable principal, that was awarded and forgiven. 3. Recommendations for improving the administration of financial assistance, including forgivable principal, that is awarded for the remediation, closure or replacement of cesspools pursuant to section 11-671, subsection G. 49-1205. Water infrastructure finance authority board; legislative intent A. The legislature finds that: 1. Now and into the foreseeable future that regions in this state lack access to the necessary water supplies to meet their current and long-term water needs. 2. Protecting current and future residents, the economy and the environment of this state is best achieved through a comprehensive water strategy that conserves water, improves the efficiency and reuse of existing water resources and augments existing water resources with new renewable supplies of water. B. The authority is established for the benefit of current and future residents, the economy and the environment of this state. C. The authority shall accomplish its purposes of helping to meet existing and future water needs of this state by developing or facilitating water conservation, reuse and augmentation projects. D. The authority may accomplish its purpose individually, through collaboration or by partnering with public or private entities. If possible, the authority may leverage existing resources and infrastructure while not interfering with already available usable water resources. 49-1206. Water infrastructure finance authority board; membership; fingerprinting; conduct of office; definition A. The water infrastructure finance authority board is established to evaluate and approve funding requests for monies from the clean water revolving fund, the safe drinking water revolving fund, the water supply development revolving fund, the long-term water augmentation fund and the water conservation grant fund and to perform other duties as prescribed in this chapter. B. The board consists of the following members: 1. Four persons from a county with a population of four hundred thousand persons or more. 2. Four persons from a county with a population of less than four hundred thousand persons. 3. One person who specializes in finance or statewide water needs. 4. The following as advisory members without the power to vote but who may attend executive sessions of the board: (a) The president of the senate or the president's designee. (b) The speaker of the house of representatives or the speaker's designee. (c) The minority leader of the senate or the minority leader's designee. (d) The minority leader of the house of representatives or the minority leader's designee. (e) The director of water resources or the director's designee. (f) The director of the department of environmental quality or the director's designee. (g) The state land commissioner or the commissioner's designee. (h) The director of the department of administration or the director's designee. (i) The chief executive officer of the Arizona commerce authority or the chief executive officer's designee. C. The following apply to the eight members appointed pursuant to subsection B, paragraphs 1 and 2 of this section: 1. No three appointed members of the board may be residents of the same county, and at least one appointed member of the board shall be a resident of each county with a population of four hundred thousand persons or more. 2. Members must have a substantial knowledge of and experience with water or finance, including public finance. D. The following apply to all members appointed pursuant to subsection B, paragraphs 1 through 3 of this section: 1. The governor shall appoint two of the members from a county with a population of four hundred thousand persons or more, shall appoint two of the members from a county with a population of less than four hundred thousand persons and shall appoint the member who specializes in finance or statewide water needs from the joint list of at least five qualified applicants submitted by the president of the senate and the speaker of the house of representatives. 2. The president of the senate and minority leader of the senate shall appoint one of the members from a county with a population of four hundred thousand persons or more and one of the members from a county with a population of less than four hundred thousand persons. The president of the senate and minority leader of the senate shall alternate the terms in which these members are appointed. 3. The speaker of the house of representatives and minority leader of the house of representatives shall appoint one of the members from a county with a population of four hundred thousand persons or more and one of the members from a county with a population of less than four hundred thousand persons. The speaker of the house of representatives and minority leader of the house of representatives shall alternate the terms in which these members are appointed. 4. Appointed members serve five-year terms of office beginning and ending on the third Monday in January and are eligible for reappointment. A member may be removed only for cause by the person who then holds the same office as the person who appointed that member. 5. Members shall be residents of this state for at least two years. 6. The order in which the members are appointed pursuant to subsection B, paragraphs 1 and 2 is: (a) For the initial term and every third term thereafter, the president of the senate and the minority leader of the senate shall appoint first, the governor shall appoint second and the speaker of the house of representatives and the minority leader of the house of representatives shall appoint third. (b) For the second term and every third term thereafter, the governor shall appoint first, the speaker of the house of representatives and the minority leader of the house of representatives shall appoint second and the president of the senate and the minority leader of the senate shall appoint third. (c) For the third term and every third term thereafter, the speaker of the house of representatives and the minority leader of the house of representatives shall appoint first, the president of the senate and the minority leader of the senate shall appoint second and the governor shall appoint third. E. Before a member is appointed to the board pursuant to subsection C or D of this section, the prospective member shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The governor shall submit the fingerprints to the department of public safety. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. F. The board shall elect a chairperson of the board from among the voting members. The chairperson may appoint subcommittees as necessary. G. The board may request assistance from representatives of other state agencies. The department of water resources shall provide technical assistance to the board. H. Board members serve without compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. A board member who is otherwise employed as a public officer may not receive reimbursement pursuant to this subsection if it is otherwise prohibited by law. I. A majority of the voting members constitutes a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the voting members present at an official meeting is sufficient for the board to take any action, except that approval of funding or other financial assistance from the water conservation grant fund established by section 49-1331, the water supply development revolving fund established by section 49-1271 or the long-term water augmentation fund requires the affirmative vote of at least six of the voting members present at an official meeting of the board. J. The board shall keep and maintain a complete and accurate record of all board proceedings. K. The board, committees and any subcommittees are subject to title 38, chapter 3, article 3.1, relating to public meetings, except advisory nonvoting members of the board may attend executive sessions of the board. L. The board, its subcommittees and the officers and any employees of the board are subject to title 38, chapter 3, article 8, relating to conflicts of interest. In addition to the conflict of interest provisions in title 38, chapter 3, article 8, and except for employees of this state or a political subdivision of this state, the following apply: 1. A person is not eligible for appointment to the board if the person or the person's relative meets any of the following criteria: (a) Is employed by or participates in the management of a business entity or other organization that receives monies from the authority. (b) Owns, controls or has, directly or indirectly, more than a ten percent interest in a business entity or other organization that receives monies from the authority. (c) Uses or receives a substantial amount of tangible goods, services or monies from the authority. (d) Has a personal financial interest in the award or expenditure. The person or the person's relative does not have a personal financial interest if the person or the person's relative is a member of a class of persons and it reasonably appears that a majority of the total membership of that class is to be affected by the action. 2. A person may not be a voting member of the board or act as the general counsel to the board or authority if the person is required to register as a lobbyist. 3. A person may not be a member of the board or an employee of the authority if the person or the person's relative is an officer, employee or paid consultant for a water users' association or trade association. M. An employee of a political subdivision of this state who serves on the board may not participate in the consideration of or a vote concerning any award or expenditure by the authority for projects that will directly benefit the political subdivision. N. The board shall adopt written policies, procedures and guidelines for standards of conduct, including a gift policy, for members of the board and for officers and employees of the board. O. The board is a public body that is subject to title 38, chapter 3, article 3. The board shall operate on the state fiscal year. P. All state agencies shall cooperate with the board and make available data pertaining to the functions of the board as requested by the board. Q. For the purposes of this section, "trade association" means any cooperative, association or business organization, whether or not incorporated under federal or state law, that is designed to assist its members, industry or profession in advocating for or promoting their common interest. 49-1207. Federal water programs committee; membership; recommendations A. The federal water programs committee is established to advise the board and consists of the following voting members who are appointed by the board: 1. One member who represents a public water system that serves five hundred or more connections. 2. One member who represents a public water system that serves less than five hundred connections. 3. One member who represents a domestic water improvement district or sanitary district in a county with a population of less than five hundred thousand persons. 4. One member who represents a domestic water improvement district or sanitary district in a county with a population of five hundred thousand or more persons. 5. One member who represents a city or town with a population of less than fifty thousand persons. 6. One member who represents a city or town with a population of fifty thousand or more persons. 7. One member who represents a county with a population of five hundred thousand or more persons. 8. The director of environmental quality or the director's designee. 9. The director of water resources or the director's designee. 10. The executive director of the corporation commission or the executive director's designee. 11. The chief executive officer of the Arizona commerce authority or the chief executive officer's designee. B. The federal water programs committee shall review applications for financial or other assistance from the clean water revolving fund program, the safe drinking water revolving fund program and the hardship grant fund program and shall make recommendations to the board regarding those applications for assistance. 49-1208. Water supply development committee; long-term water augmentation committee; membership; recommendations A. The water supply development committee is established consisting of seven members of the board, including the four members who are from counties with populations of less than four hundred thousand persons, two members who are from counties with populations of four hundred thousand persons or more and who are selected by a vote of the board and the member of the board who is appointed by the governor and who specializes in finance or statewide water needs. The water supply development committee shall review applications for financial assistance from the water supply development revolving fund and make recommendations to the board regarding those applications for assistance. B. The long-term water augmentation committee is established consisting of seven members of the board, including the four members who are from counties with populations of four hundred thousand persons or more, two members who are from counties with populations of less than four hundred thousand persons and who are selected by a vote of the board and the member of the board who is appointed by the governor and who specializes in finance or statewide water needs. The long-term water augmentation committee shall review applications for financial assistance from the long-term water augmentation fund and make recommendations to the board regarding those applications for assistance. 49-1209. Cooperation with governmental entities A. The authority may request assistance from representatives of other state agencies, and all state agencies shall cooperate with the authority and make available data pertaining to the functions of the board as requested by the authority. B. In the acquisition, construction or development of water-related facilities, the authority shall cooperate with established and existing state agencies and political subdivisions of this state and with the United States and other states. C. The authority may not begin negotiations regarding any agreement involving the use, storage or conservation of Colorado River water outside this state without the express written approval of the director of water resources and may not enter into any agreement involving the use, storage or conservation of Colorado River water outside this state without the director of water resources' express written approval. 49-1210. Limitations on water activities A. The authority may not purchase any mainstream Colorado River water or rights to mainstream Colorado River water and may not provide funding or financial assistance to transfer, purchase or lease any such water or rights to such water, except that this prohibition does not apply to any water or rights to water held by a federally recognized Indian tribe or to purchases made with monies from the clean water revolving fund established by section 49-1221 or the drinking water revolving fund established by section 49-1241. For purposes of this subsection, "mainstream Colorado River water" means Colorado River water that is available to satisfy entitlements in this state but that is not delivered through the central Arizona project. B. The authority may not enter into any agreements to convey or deliver water to a water user within the incorporated boundaries of a city or town, a city or town water service area or within the boundaries of a certificate of convenience and necessity of a private water company without the written consent of the city, town or private water company. C. The authority may not operate or maintain any water-related facilities but may enter into agreements with public or private entities to operate or maintain water-related facilities owned or constructed by the authority. D. Except as provided in section 49-1203.01, subsection C, paragraph 4, the authority may not acquire or own water-related facilities that are either: 1. Located within this state and used to convey or deliver water that is not imported water. 2. Located outside this state. E. If the authority acquires imported water or long-term storage credits created from imported water in its own name, the authority may not sell or lease that water or those long-term storage credits for amounts greater than necessary to comply with section 49-1303, subsection E or to repay long-term water augmentation bonds issued to fund any project to acquire the imported water or long-term storage credits. 49-1211. Project delivery methods The authority may provide for the development or operation of water-related facilities using a variety of project delivery methods and forms of agreement. The methods may include: 1. Predevelopment agreements leading to other implementing agreements. 2. A design-build agreement. 3. A design-build-maintain agreement. 4. A design-build-finance-operate agreement. 5. A design-build-operate-maintain agreement. 6. A design-build-finance-operate-maintain agreement. 7. A concession agreement providing for the private partner to design, build, operate, maintain, manage or lease a water-related facility. 8. Any other project delivery method or agreement or combination of methods or agreements that the authority determines are reasonable or necessary to carry out the authority's purposes. 49-1212. Procurement for water-related facilities; insurance; evaluations; deviations A. The authority may procure services for the development, design, acquisition, construction, improvement or equipping of water-related facilities using any of the following: 1. Requests for project proposals in which the authority describes a class of water-related facilities or a geographic area in which entities are invited to submit proposals to develop water-related facilities. 2. Solicitations using requests for qualifications, short-listing of qualified proposers, requests for proposals, negotiations, best and final offers or other procurement procedures. 3. Procurements seeking development and finance plans that are most suitable for the project. 4. Best value selection procurements based on price or financial proposals, or both, and any other relevant factors. 5. Other procedures that the authority determines may further the implementation of this chapter. B. For any procurement in which the authority issues a request for qualifications, request for proposals or similar solicitation document, the request shall set forth generally the factors that will be evaluated and the manner in which responses will be evaluated. If contractor insurance is required for services procured pursuant to this section, the insurance shall be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer approved and identified by the director of the department of insurance and financial institutions pursuant to title 20, chapter 2, article 5. C. In evaluating proposals under this section, the authority shall consider the criteria prescribed pursuant to section 49-1304. D. The authority may deviate from any requirements in this section to the extent necessary to make use of any available federal funding for the design, development, acquisition, construction, improvement or equipping of water-related facilities. 49-1213. Public-private partnership agreements; private partners; political subdivisions; tax exemptions; prohibition A. In any public-private partnership under this chapter, the authority may include provisions that: 1. Allow the authority or the private partner to establish and collect delivery charges, service charges, operation and maintenance charges or similar charges, including provisions that: (a) Establish circumstances under which the authority may receive all or a share of revenues from such charges. (b) Govern enforcement of collection of such charges. (c) Allow the authority to continue or cease collection of charges after the end of the term of the agreement. 2. Allow for payments to be made by this state to the private partner. 3. Allow the authority to accept payments of monies and share revenues with the private partner. 4. Address how the partners will share management of the risks of the public-private partnership project, including any risks associated with public-private partnership projects that will originate outside of this state. 5. Specify how the partners will share the costs of the design, development, acquisition, construction, improvement and equipping of the public-private partnership project. 6. Allocate financial responsibility for cost overruns. 7. Establish the damages to be assessed for nonperformance. 8. Establish performance criteria or incentives, or both. 9. Address the acquisition of rights-of-way and other property interests that may be required. 10. Establish recordkeeping, accounting and auditing standards to be used for the public-private partnership project. 11. For a public-private partnership project that reverts to public ownership, address responsibility for reconstruction or renovations that are required in order for water-related facilities to meet all applicable government standards on reversion of the water-related facilities to this state. 12. Identify any authority specifications that must be satisfied, including provisions allowing the private partner to request and receive authorization to deviate from the specifications on making a showing satisfactory to the authority. 13. Require a private partner to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security or a combination of any of these, the penal sum or amount of which may be less than one hundred percent of the value of the contract involved based on the authority's determination, made on a project-by-project basis, of what is required to adequately protect this state. 14. Allow the private partner in any concession agreement to establish and collect delivery charges, operation and maintenance charges or similar charges to cover its costs and provide for a reasonable rate of return on the private partner's investment, including any of the following provisions: (a) The charges may be collected directly by the private partner or by a third party engaged for that purpose. (b) A formula for the adjustment of charges during the term of the agreement. (c) For an agreement that does not include a formula described in subdivision (b) of this paragraph, provisions regulating the private partner's return on investment. 15. Specify remedies available and dispute resolution procedures, including forum selection and choice of law provisions and the right of the parties to institute legal proceedings to obtain an enforceable judgment or award and procedures for use of dispute review boards, mediation, facilitated negotiation, arbitration and other alternative dispute resolution procedures. 16. Allow the authority to acquire real property that is needed for water-related facilities, including acquisition by exchange for other real property that is owned by the authority. B. The authority may approve any request from another unit of government to develop water-related facilities in a manner similar to that used by the authority for public-private partnerships. C. Notwithstanding any other law, agreements under this chapter that are properly developed, operated or held by a private partner under a concession agreement pursuant to this chapter are exempt from all state and local ad valorem and property taxes that otherwise might be applicable. D. A public-private partnership agreement under this chapter shall contain a provision by which the private partner expressly agrees that it is prohibited from seeking injunctive or other equitable relief to delay, prevent or otherwise hinder the authority or any jurisdiction from developing, constructing or maintaining any water-related facilities that were planned and that would or might impact the revenue that the private partner would or might derive from the water-related facilities developed under the agreement, except that the agreement may provide for reasonable compensation to the private partner for the adverse effect on revenues resulting from development, construction and maintenance of an unplanned revenue impacting water-related facilities. E. A foreign private corporation that enters into an agreement with the authority pursuant to this section must provide satisfactory evidence to the board that the foreign entity is in compliance with the requirements of title 10, chapter 38. 49-1214. Attorney general public-private partnership agreement certification A. The authority shall submit to the attorney general any public-private partnership agreement entered into by the authority. On the submission of the agreement to the attorney general, the attorney general shall investigate and determine the validity of the agreement. B. If the agreement complies with this chapter and the attorney general determines that the agreement will constitute a binding and legal obligation of the authority that is enforceable according to the terms of the agreement, the attorney general shall certify, in substance, that the agreement has been entered into in accordance with the constitution and laws of this state. 49-1215. Joint legislative water committee; membership; duties A. The joint legislative water committee is established consisting of the following members: 1. The president of the senate or the president's designee. 2. The speaker of the house of representatives or the speaker's designee. 3. The minority leader of the senate or the minority leader's designee. 4. The minority leader of the house of representatives or the minority leader's designee. 5. The chairperson of the senate committee with jurisdiction over water issues. 6. The chairperson of the house of representatives committee with jurisdiction over water issues. 7. The ranking minority party member of the senate committee with jurisdiction over water issues. 8. The ranking minority party member of the house of representatives committee with jurisdiction over water issues. 9. The chairperson of the joint legislative budget committee. B. The joint legislative water committee shall review awards of $50,000,000 or more from the long-term water augmentation fund established by section 49-1302 and the board shall provide the joint legislative water committee with the relevant information. 49-1216. Financial assistance; loan repayment agreements; political subdivisions A. Notwithstanding sections 9-571, 11-671, 48-1019 and 48-2011.01, during fiscal years 2022-2023, 2023-2024, 2024-2025, 2025-2026 and 2026-2027, the political subdivisions described in subsection B of this section may enter into a financial assistance loan repayment agreement with the authority without submitting the question of entering and performing the financial assistance loan repayment agreement to the qualified electors of the political subdivision if the agreement is financed with funding made available to the authority under the infrastructure investment and jobs act, division J, title VI (P.L. 117-58) and the financial assistance agreement is not payable from secondary property tax revenue. B. The following political subdivisions may enter into a financial assistance loan repayment agreement described in subsection A of this section: 1. A city or town, without regard to the city or town's population. 2. A county, without regard to the county's population. 3. A sanitary district that contains a population of fewer than fifty thousand persons. 4. A domestic water or wastewater improvement district, without regard to the population of that district. 49-1221. Clean water revolving fund A. The clean water revolving fund is established to be maintained in perpetuity consisting of: 1. Monies appropriated by the legislature for the clean water revolving fund. 2. Monies received for that purpose from the United States government, including capitalization grants. 3. Monies received from the issuance and sale of bonds under section 49-1261. 4. Monies received from political subdivisions or Indian tribes as loan repayments, interest and penalties. 5. Interest and other income received from investing monies in the fund. 6. Gifts, grants and donations received for that purpose from any public or private source. B. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 49-1222. Clean water revolving fund; administration A. The clean water revolving fund is established. The board shall administer the fund pursuant to rule and in compliance with the requirements of this article and the clean water act. B. On notice from the board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. The board shall use the monies and other assets in the fund solely for the purposes authorized by this article. D. The board shall establish a capitalization grant transfer account and as many other accounts and subaccounts as required to administer the clean water revolving fund and any other fund that is administered by the board. 49-1223. Clean water revolving fund; purposes; capitalization grants A. Monies in the clean water revolving fund may be used for the following purposes: 1. Making wastewater treatment facility and nonpoint source project loans to political subdivisions and Indian tribes under section 49-1225. 2. Purchasing or refinancing debt obligations of political subdivisions or refinancing debt obligations of Indian tribes at or below market rates, provided that the debt obligation was issued after March 7, 1985 for the purpose of constructing, acquiring or improving wastewater treatment facilities or nonpoint source projects. 3. Providing financial assistance to political subdivisions to purchase insurance for local wastewater treatment facility or nonpoint source project bond obligations. 4. Paying the costs to administer the fund, but no more than four per cent of the aggregate of federal capitalization grants may be used to pay these costs. Monies from other sources may be used without limit to pay these costs. 5. Funding other programs that are authorized for federal monies deposited in the fund including programs relating to nonpoint source discharges. 6. Providing linked deposit guarantees through third party lenders by depositing monies with the lender on the condition that the lender make a loan on terms approved by the board, at a rate of return on the deposit approved by the board and the state treasurer and by giving the lender recourse against the deposit of loan repayments that are not made when due. 7. Funding of financial assistance, including forgivable principal, that is awarded pursuant to section 11-671, subsection G. B. If the monies pledged to secure water quality bonds become insufficient to pay the principal and interest on the water quality bonds that are guaranteed by the clean water revolving fund, the board shall direct the state treasurer to liquidate securities in the fund as may be necessary and apply those proceeds to make current all payments then due on the bonds. The state treasurer shall immediately notify the attorney general and auditor general of the insufficiency. The auditor general shall audit the circumstances surrounding the depletion of the fund and report the findings to the attorney general. The attorney general shall conduct an investigation and report those findings to the governor and the legislature. C. All proceeds of capitalization grants received from the United States pursuant to the clean water act shall be deposited in the capitalization grant transfer account and shall be used solely to provide financial assistance to political subdivisions and Indian tribes to construct, acquire, restore or rebuild wastewater treatment facilities, to purchase bond insurance or for any other purpose permitted by the clean water act including nonpoint source projects. All principal received on loan repayments made by borrowers pursuant to this section shall be deposited in the clean water revolving fund and shall be invested and used to provide additional financial assistance or shall be used to support the administration of the fund subject to the limits prescribed by the clean water act. 49-1224. Clean water revolving fund financial assistance; procedures; rules A. In compliance with any applicable requirements, a political subdivision may apply to the authority for, accept and incur indebtedness as a result of a loan, or other financial assistance under section 49-1223, subsection A, paragraphs 1, 2 and 3, from the clean water revolving fund to support a wastewater treatment facility or nonpoint source project owned by the political subdivision. An Indian tribe may apply to the authority for, accept and incur indebtedness as a result of a loan or refinancing under section 49-1223, subsection A, paragraphs 1 and 2 from the clean water revolving fund to support a wastewater treatment facility or nonpoint source project owned by the Indian tribe. To qualify for financial assistance under this section the wastewater treatment facility or nonpoint source project must appear on this state's priority list pursuant to section 212 of the clean water act. B. In compliance with any applicable requirements, the board shall: 1. Prescribe a simplified form and procedure to apply for and approve assistance. 2. Establish by rule criteria by which assistance will be awarded, including requirements for local participation in project costs, if deemed advisable. The criteria shall include a determination of the ability of the applicant to repay a loan according to the terms and conditions established by this section. At the option of the board, the existence of a current investment grade rating on existing debt of the applicant that is secured by the same revenues to be pledged to secure repayment under the loan repayment agreement constitutes evidence regarding ability to repay a loan. 3. Determine the order and priority of projects assisted under this section based on the merits of the application with respect to water quality issues. C. The authority shall review on its merits each application received and shall inform the applicant of the board's determination within ninety days after receipt of a complete and correct application. If the application is not approved, the board shall notify the applicant, stating the reasons. If the application is approved, the board may condition the approval on assurances the board deems necessary to ensure that the financial assistance will be used according to law and the terms of the application. 49-1225. Clean water revolving fund financial assistance; terms A. Financial assistance from the clean water revolving fund shall be evidenced by a financial assistance agreement or bonds of a political subdivision, delivered to and held by the authority. B. A loan under this section: 1. Shall be repaid in not to exceed thirty years from the date incurred for wastewater treatment facility and nonpoint source loans. 2. Shall require that interest payments begin not later than the next date that either principal or interest must be paid by the authority to the holders of any of the authority's bonds that provided funding for the loan. The authority may provide that loan interest accruing during construction and one year beyond completion of the construction be capitalized in the loan. 3. Shall be conditioned on the establishment of a dedicated revenue source for repaying the loan. 4. To an Indian tribe shall either be conditioned on the establishment of a dedicated revenue source under the control of a tribally chartered corporation, or any other tribal entity that is subject to suit by the attorney general to enforce the loan contract, or be secured by assets that, in the event of default of the loan contract, are subject to execution by the attorney general without the waiver of any claim of sovereign immunity by the tribe. C. The authority shall prescribe the rate of interest on loans made under this section, but the rate shall not exceed the prevailing market rate for similar types of loans. The authority may also provide for flexible interest rates and interest free loans under rules adopted by the authority. All financial assistance agreements or bonds of a political subdivision shall clearly specify the amount of principal and interest and any redemption premium that is due on any payment date. The authority shall not unilaterally amend a financial assistance agreement, loan or bond after its execution or implement any policy that modifies terms and conditions or affects a previously executed financial agreement, loan or bond. The authority shall not impose a redemption premium or interest payment beyond the date the principal is paid as a condition of refinancing or receiving prepayment on a financial assistance agreement, loan or bond if the financial assistance agreement, loan or bond did not originally contain a redemption premium or interest payment beyond the date the principal is paid. D. The approval of a loan is conditioned on a written commitment by the political subdivision or Indian tribe to complete all applicable reviews and approvals and to secure all required permits in a timely manner. E. All monies received from political subdivisions or Indian tribes as loan repayments, interest and penalties shall be deposited in the appropriate accounts of the clean water revolving fund. F. A loan made to a political subdivision under this section after June 30, 2001 may be secured additionally by an irrevocable pledge of the shared state revenues due to the political subdivision for the duration of the loan as prescribed by a resolution of the authority's board. If the authority's board requires an irrevocable pledge of the shared state revenues for financial assistance loan repayment agreemen