water conservation grant fund; disclosure

Plain English Breakdown

The official text states the law becomes effective on the 'general effective date,' but does not list a specific calendar date for when it takes effect.

New Disclosure Rules for Water Conservation Grant Applicants

This law requires certain water providers that get their water from multi-county districts to share specific details about planned water savings when applying for state grants.

What This Bill Does

• Requires eligible entities receiving water from a multi-county district to disclose projected water savings in grant applications.
• Mandates applicants to identify the source of saved water and specify if it is groundwater or surface water.
• Asks applicants to explain their plan for how they will use the saved water.
• Requires the Water Infrastructure Finance Authority (WIFA) to create rules within 90 days of the law's effective date to handle these disclosures.

Who It Names or Affects

• Eligible entities, such as cities, towns, counties, or other public water providers that receive water from a multi-county conservation district.
• The Water Infrastructure Finance Authority (WIFA), which manages the grant program and must write new rules.

Terms To Know

Eligible entity

A water provider or any public group like a city, town, county, district, commission, authority, or other public entity organized under Arizona law.

Multi-county water conservation district

An organization formed by three or more counties working together on water issues.

Limits and Unknowns

• The new disclosure rules only apply to entities that receive water from multi-county districts; other applicants do not face these specific requirements.
• The law does not change existing grant limits, which remain at $3 million for programs and $250,000 for projects.

Official Summary Text

HB2029 - 572R - Senate Fact Sheet

Assigned to
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ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2029

water conservation
grant fund; disclosure

Purpose

Prescribes
disclosure requirements for an eligible entity applying for a grant from the
Water Conservation Grant Fund (Fund) that receives water from a multi-county
water conservation district.

Background

Eligible entities and nongovernmental organizations that
partner with eligible entities may apply for and receive grants from the Fund
for a water conservation program or project that complies with statutorily
prescribed requirements relating to the purposes and procedures of the Fund.
The Water Infrastructure Finance Authority (WIFA) must: 1) prescribe a
simplified form and procedure to apply for and approve assistance; 2) establish,
by rule, criteria for awarding assistance; 3) determine the order and priority
of water conservation programs or projects assisted based on the merits of the
application with respect to statutorily prescribed requirements; 4) limit a
single water conservation program grant from exceeding $3,000,000 and a single
conservation project grant from exceeding $250,000; and 5) require at least a
25 percent match for each water conservation program or project
(
A.R.S.
� 49-1333
).

An
eligible
entity
means: 1) a water provider; or 2) any city, town, county, district,
commission, authority or other public entity that is organized and that is
statutorily outlined or under a voter-approved charter or initiative of Arizona
(
A.R.S.
� 49-1301
).

A
multi-county
water conservation district
means a district composed of three or more
counties that have joined together for the creation of a district (
A.R.S.
� 48-3701
).

There is no anticipated fiscal impact to the state General Fund
associated with this legislation.

Provisions

1.

Requires
an eligible entity that receives water from a multi-county water conservation
district and applies for a grant from the Fund to disclose:

a)

the projected water savings;

b)

the source of any water that the project is estimated to save;

c)

whether the estimated water to be saved is groundwater or surface water;
and

d)

the
eligible entity's plan for the saved water.

2.

Requires WIFA, within 90 days of the general effective date, to adopt
rules to implement the prescribed disclosure requirements.

3.

Defines
eligible entity.

4.

Makes technical and conforming changes.

5.

Becomes effective on the general effective date.

House Action

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Prepared by Senate Research

February 26, 2026

SB/SF/ci

Current Bill Text

Chapter 0035 - 572R - H Ver of HB2029

House Engrossed

water conservation
grant fund; disclosure

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

CHAPTER 35

HOUSE BILL 2029

AN
ACT

Amending section 49-1333, Arizona
Revised Statutes; relating to the water infrastructure finance program.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 49-1333, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-1333.

Water conservation grant fund; procedures; reporting; definition

A. In compliance with any applicable requirements,
an eligible entity
as defined in section 49-1301
may
apply to the authority for and accept grants from the water conservation grant
fund for a water conservation program or project that complies with the
requirements of sections 49-1332 and 49-1334. A
nongovernment

nongovernmental
organization
that focuses on water conservation or environmental protection may apply to the
authority for and accept grants from the water conservation grant fund for a
water conservation program or project if it partners with an eligible entity
as defined in section 49-1301
. An eligible entity may
apply to the authority for and accept grants from the water conservation grant
fund to distribute rebates for the installation of gray water systems.

B. The authority shall:

1. Prescribe a simplified form and procedure to
apply for and approve assistance.

2. Establish by rule criteria that are consistent
with this article by which assistance will be awarded.

3. Determine the order and priority of water
conservation programs or projects assisted under this section based on the
merits of the application with respect to the requirements of sections 49-1332
and 49-1334.

4. Provide that a single water conservation program
grant may not exceed $3,000,000, a single water conservation project grant may
not exceed $250,000 and at least a twenty-five percent match is required
for each water conservation program or project. Monies from any other source
may satisfy the match requirement.

C. An eligible entity that receives
water from a multi-county water conservation district organized pursuant
to title 48, chapter 22 and that applies for a grant from the water
conservation grant fund shall disclose the following in the eligible entity's
application:

1. The projected water savings.

2. The source of any water that the
project is estimated to save and whether the estimated water to be saved is
groundwater or surface water.

3. The eligible entity's plan for the
saved water.

D. For the purposes of this section,
"eligible entity" has the same meaning prescribed in section 49-1301.

END_STATUTE

Sec. 2.
Rulemaking

Not
later than ninety days after the effective date of this act, the water
infrastructure finance authority shall adopt rules to implement this act.

APPROVED BY THE GOVERNOR APRIL 13, 2026.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 13, 2026.