Water Infrastructure Finance Program (WIFA)
Agency Contact Information
Water Infrastructure Finance Authority
Authority
WIFA was reestablished as a separate state agency in 2022. Statutory authority is found at A.R.S. §§49-1201 et seq. Administrative rules are found at A.A.C. §§R18-15-101 et seq.
Function
WIFA provides financial assistance and low-interest loans for construction and improvement of drinking water systems, wastewater treatment, and water reclamation systems. The WIFA Board authorizes grants and issues bonds to support public water supply infrastructure and projects.
In 2022, WIFA authority was expanded to provide financial resources for projects relating to water supply development in order to improve current and long-term water supplies. WIFA may issue bonds, enter into short-term emergency loan agreements, and administer federal grants. WIFA administers the Clean Water Revolving Fund; the Safe Drinking Water Revolving Fund; the Hardship Grant Fund, the Water Supply Development Revolving Fund, the Long-Term Water Augmentation Fund, and the Water Conservation Grant Fund.
History
Background
The Water Infrastructure Finance Program (WIFA) was established in 1998 to provide a source of funding for public water treatment projects. It replaced the Wastewater Management Authority, which had been created in 1989, and assumed its responsibilities.
WIFA was a separate state agency until 2016 when the WIFA Board was eliminated and WIFA was transferred to the Arizona Finance Authority within the newly formed Office of Economic Opportunity. WIFA was governed by the Arizona Finance Authority Board of Directors. A WIFA Advisory Board was established of representatives of municipalities, water systems, and sanitary districts.
In 2022, WIFA was again established as a separate state agency. WIFA retained its responsibilities to provide a source of funding and other assistance for public water treatment projects. It was also authorized to enter into public-private partnerships and water supply development projects to improve current and long-term water supplies, achieve a comprehensive water strategy to conserve water, improve the efficiency and reuse of existing water resources and augment existing water resources with new renewable supplies of water.
Session Laws
Laws 1989, Chapter 280 established the Wastewater Management Authority of Arizona (WMA) and allowed cities, town, counties, and sanitary districts to borrow money or receive financial assistance from the WMA. The law authorized the WMA to issue bonds, make loans to political subdivisions, guarantee debt obligations to finance wastewater treatment projects, administer grants, and enter into capitalization grant agreements with the US Environmental Protection Agency. The law also outlined loan repayment agreements, established a seven-member Board of Directors, and created the Wastewater Treatment Revolving Fund, administered by the Board, to receive federal grant and state matching monies.
Laws 1998, Chapter 72 repealed the WMA and established WIFA. The law outlined powers and duties of the Authority, created a 12-member Board authorized to issue bonds for drinking water projects, wastewater treatment projects and nonpoint source projects, and required annual audits and reports. The law also established the Clean Water Revolving Fund, the Drinking Water Revolving Fund and the Hardship Grant Fund outlining their purpose, revenue sources and uses.
Laws 1999, Chapter 295 authorized the Board to serve as fund manager for the Brownfield Cleanup Revolving Loan Fund, used to remediate contamination at certain sites.
Laws 2002, Chapter 141 authorized the Board to provide technical assistance to counties with a population of less than 500,000 (in addition to political subdivisions, Indian tribes and community water systems).
Laws 2005, Chapter 63 authorized the WIFA Board to enter short-term emergency loan agreements with political subdivisions or Indian tribes under specific conditions related to a national disaster or catastrophic event.
Laws 2005, Chapter 64 established the Arizona Department of Environmental Quality as having primary responsibility to administer Arizona’s Safe Drinking Water Act and water quality projects.
Laws 2007, Chapter 226 established the Water Supply Development Revolving Fund to provide loans to water providers for planning or design of water supply developments. The law contained a conditional enactment clause which required passage of SB 1575, relating to water adequacy provisions. SB 1575 was enacted as Laws 2007, Chapter 240.
Laws 2014, Chapter 212 limited use of monies in the Water Supply Development Revolving Fund to areas outside active management areas. The law also established the Rural Water Supply Development and Contamination Prevention Legislative Study Committee and allowed the committee to consult with the Arizona Department of Water Resources, the Arizona Department of Environmental Quality and WIFA as needed. The Committee was required to provide a report containing findings and recommendations to the Legislature and the Secretary of State by November 1, 2014.
Laws 2016, Chapter 372 created the Office of Economic Opportunity, the Arizona Finance Authority and the Arizona Industrial Development Authority. The measure established WIFA within the Arizona Finance Authority (AFA) and provided that the AFA Board of Directors would govern WIFA. The existing WIFA Board was eliminated. The AFA was also required to appoint a Water and Infrastructure Finance Authority Advisory Board.
Laws 2017, Chapter 213 transferred authority for administration of the Small Water Systems Fund from the Arizona Department of Environmental Quality to WIFA and changed the name of the fund to the Small Drinking Water Systems Fund. The measure also modified uses of Fund monies and procedures related to grants.
Laws 2022, Chapter 366 transferred WIFA from the Arizona Finance Authority within the Office of Economic Opportunity, reestablished WIFA as a stand-alone state agency, and expanded its responsibilities.
The measure authorizes WIFA to provide a source of financial and other assistance for water treatment and water supply development projects in order to improve current and long-term water supplies (Section 30, Purpose clause). The measure outlines WIFA Board membership and establishes its powers and duties, including the authority to issue bonds, enter into public-private partnerships, import water into the state, facilitate water supply and water conservation development projects, and develop long-term water augmentation projects. The measure imposes limitations on the Board’s purchases of water rights, conveyance and delivery of water and operation of water facilities. Several committees are established, including the Federal Water Programs Committee, the Water Supply Development Committee, the Long-Term Water Augmentation Committee and the Joint Legislative Water Committee. (See Section 17.)
Three annual installments to the Long-Term Water Augmentation Fund were provided: $334 million in transaction privilege tax and severance tax revenues in fiscal year 2022-2023; $333 million from the state general fund in fiscal year 2023-2024; and $333 million in fiscal year 2024-2025. (See Sections 31, 32 and 33.)
Note: In 2023, the appropriation to the Long-Term Water Augmentation Fund for fiscal year 2023-2024 (described above) was reduced by $143,800,000. Section 96 of the measure appropriates $65 million to finance several special projects listed in the WIFA section of the budget. See Laws 2023, Chapter 133, Section 111 and Section 96.
Laws 2023, Chapter 197 was an omnibus bill amending several issues that were addressed in the 2022 overhaul of WIFA statutes. The measure allows the WIFA Board to adopt policies, procedures and guidelines related to its officers and employees; broadens conflict-of-interest requirements related to who may serve on the WIFA Board; expands the entities eligible for Water Conservation Grant Fund monies; clarifies which entities are eligible for Water Supply Development Revolving Fund monies; and requires the Arizona Department of Water Resources to conduct supply-demand assessments of the five initial AMAs every five years.
Sources
- Arizona Revised Statutes §§49-1201 et seq.
- Arizona Administrative Code §§R18-15-101 et seq.
- Session Laws
- Laws 1989, Chapter 280
- Laws 1998, Chapter 72
- Laws 1999, Chapter 295
- Laws 2002, Chapter 141
- Laws 2005, Chapter 63 and Chapter 64
- Laws 2007, Chapter 226
- Laws 2014, Chapter 212
- Laws 2016, Chapter 372
- Laws 2017, Chapter 213
- Laws 2022, Chapter 366
- Laws 2023, Chapter 133 and Chapter 197
Water Infrastructure Finance Authority website
Arizona Memory Project Water Infrastructure Finance Authority agency collection
Arizona Joint Legislative Budget Committee: FY 2023 Appropriations Report
Governor’s Office of Strategic Planning & Budgeting Master List of State Programs
Performance Audit and Sunset Review, Water Infrastructure Finance Authority, 2021
Performance Audit and Sunset Review, Water Infrastructure Finance Authority, 2013
Performance audit, Water Infrastructure Finance Authority, 2003
Related collections at Arizona State Archives
- Record Group 142: Department of Water Resources
- Record Group 147: Department of Environmental Quality
- Record Group 161: Commission on the Arizona Environment