Governor Ducey Picks Water, Finance Experts for Historic Water Infrastructure Board.jpg)
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Board Charged with Securing Long-Term Water Supplies
PHOENIX — Governor Doug Ducey today announced four appointments to a new board charged with overseeing a bold plan to secure Arizona’s water future.
The Water Infrastructure Finance Authority board was established this year with Governor Ducey’s signing of monumental water legislation, which took effect September 24.
“We passed the most significant water legislation in 40 years this year in partnership with our legislative leaders,” said Governor Ducey. “Now, with the right team, we’re positioned with $1.4 billion to secure our state’s water future for the next 100 years. The board members of the Water Infrastructure Finance Authority will be important stewards of our water resources, pursuing innovative augmentation and conservation projects. I’m confident that with fresh ideas and diverse backgrounds, representing every corner of our state, we will ensure Arizona remains a land of opportunity for families and businesses. Our appointees have the right skills and experience to position our state for future success.”
✓ The nine-member board, appointed jointly by the Arizona Legislature and Governor Ducey, is responsible for providing loans and grants to water providers and entities for the purposes of importing water into Arizona, conservation, efficiency and reuses, and new technologies.
✓ Through the funds, WIFA will have the ability to acquire, store and sell new imported water as well as engage in private-public partnerships.
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✓ The President of the Arizona Senate and the Senate Minority Leader previously announced their respective appointees. Each had one selection. The Speaker of the House and House Minority Leader will make their appointments next, pursuant to the law passed this year.
✓ The governor has one remaining available appointment. The statewide, at-large position will be selected from a list of nominees from the House Speaker and Senate President.
Water security has been a top priority for Governor Ducey. In 2019, he signed the Drought Contingency Plan – a historic plan between Arizona and six other western states to manage and conserve more water from the Colorado River. Most recently, the governor visited Israel – thee world’s leader on water technology – to learn more about innovative solutions like desalination. The governor’s May trip was followed by House Speaker Rusty Bowers in August.
The Governor appointed the following individuals to serve on the Water Infrastructure Finance Authority board:
David Beckham from Maricopa County has an extensive background in developing, acquiring and operating real estate projects and operating businesses. David’s expertise includes working with governmental agencies and creating unique financial transactions with some of the largest institutions in the U.S. He has been involved in various capacities related to Arizona water issues for many years. David is a principal in Beckham Gumbin Ventures, a real estate investment firm established in 2011.
Buchanan Davis from Pinal County has an expansive policy background in water issues, agriculture, environment and other natural resources. Buchanan previously served as Senior Director for Municipal County Strategic Initiatives at the University of Arizona, providing strategic direction for University engagement with Arizona communities and stakeholders. He also has experience in the public sector, working for U.S. Senator Jeff Flake and most recently, as Natural Resources policy advisor to Governor Ducey.
Jonathan Lines from Yuma County has deep knowledge of water policy in rural counties. He currently serves on the Yuma County Board of Supervisors, the Arizona-Mexico Commission and is the Chairman of the Arizona State Fair and Expositions. Jonathan has also served as the Chairman of the Arizona Republican Party and the Arizona Republican Party Treasurer. Jonathan’s family has been involved in water policy for generations, originally settling in Arizona in the late 1880s.
Andy Tobin from Yavapai Countyhas 15 years of public service. Andy has served as the Director of the Arizona Department of Administration since 2019. Prior to his appointment, he served as a Commissioner on the Arizona Corporation Commission, was a long-time member of the Arizona House of Representatives and served as Speaker of the House. Before joining the Arizona Legislature, Director Tobin served as Director of the Arizona Department of Insurance and the Arizona Department of Financial Institutions.
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RELATED CONTENT
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Water Infrastructure Finance Authority of Arizona
✓ Water Infrastructure Finance Authority of Arizona
September 18, 2022
Arizona is at a crossroads. Nearly 40% of Arizona’s annual water uses are supplied by the Colorado River. However, the outlook for Colorado River water availability – and Arizona’s junior allocation, in particular – is deeply concerning.
The Arizona Department of Water Resources (ADWR) has determined that there is insufficient water to support various projects in Central Arizona where development would otherwise naturally occur over the next several years (west Maricopa County and Pinal County). Additional water supplies will be needed to support the growth and economic prosperity we all want for our children and our grandchildren. Arizona must start today.
Sean Hood
The present water crunch occurs alongside a historic budget surplus that allowed Arizona to make a substantial investment in water augmentation. In July, Governor Doug Ducey signed a bill directing $1 billion to a water augmentation fund over the next three years. The fund will be administered by the Water Infrastructure Finance Authority of Arizona (WIFA). A minimum of 75% of these dollars must be devoted to projects that import water from outside of Arizona.
The new law does not direct WIFA to implement any particular projects. Instead, WIFA is authorized to select importation projects based on a variety of considerations. WIFA has been vested with significant discretion, and it is critical that WIFA make wise investment decisions.
We must hope that WIFA will resist pressures to invest in stop-gap measures. WIFA should focus on projects to provide direct delivery of desalinated ocean water, likely in partnership with Mexico. The technology is proven. More than 15,000 desalination plants operate today in hundreds of countries, and Israel is on the verge of satisfying approximately 90% of its municipal and industrial water demand through desalination.
The previous desalination concept involved a water exchange with Mexico. Arizona would have helped fund treatment plants to provide desalinated water to users in Mexico. In exchange, Arizona would have received a portion of Mexico’s supply of Colorado River water. Investing billions of dollars in an increased Colorado River allocation is now a questionable strategy. Would that water be physically available on a reliable basis?
Arizona should think bigger. The Gulf of California is Arizona’s closest ocean water source, and Arizona’s partnership with Mexico should include a water pipeline to provide direct delivery of desalinated ocean water to Arizona. This would involve more legal issues and land use complications, and it would be significantly more expensive. However, this solution would provide a significant, long-term infusion of additional water to Arizona. It would be drought-proof, and therefore far more reliable than a Colorado River exchange because the source would be ocean water. An international water pipeline would be a large project, but that’s what’s required to adequately address Arizona’s water shortage.
Sean Hood is a litigator and water lawyer at Fennemore. He chairs Fennemore’s largest practice group, business litigation, and has nearly 20 years of experience advising and litigating on a broad range of water rights issues and business disputes.
Issue: California Colorado River Department of Water Resources desalination doug ducey Maricopa County Mexico Pima County Water Infrastructure Finance Authority
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