Arizona may not get the full $1 billion for water. But there's still reason to celebrate

Corrections & Clarifications: An earlier version of this column omitted money that had been previously allocated for water projects.

Arizona set aside $1 billion for water. Sort of.

The details matter here.

The money was split over three years. But it will be up to the next Legislature to set aside the remaining two-thirds of that cash – something that may or may not happen, depending on its priorities and, more likely, whatever happens with the economy.

(My bet? A downturn is coming. Don’t count on the full billion.)

It's more like $480 million for in-state projects

Lawmakers put $334 million this year into a fund meant primarily to fund additional water sources. But at least three-quarters of that money must go toward an as-yet determined project to import water from out of state.

That leaves about $83.5 million in that fund for in-state projects that could conserve or bolster existing water supplies.

In a last-minute measure, lawmakers also seeded a separate fund with $200 million in federal pandemic relief dollars for a wide array of conservation projects – everything from removing turf to promoting groundwater recharge.

That’s in addition to $190 million that lawmakers had allocated but not spent last year to yet another fund primarily for rural water projects. (An additional $9 million from last year is still available to mitigate Colorado River cuts.)

Put it all together and the state has about $800 million dollars on hand, with more than $480 million of that earmarked for in-state projects.

We need to shore up our own house now

Yes, it would have been better if water had gotten the full billion this year, and if most of it had not been earmarked for some elusive importation project that may or may not ever materialize – including, potentially, desalination in Mexico or maybe even a recycling effort in California.

That doesn’t mean we should stop pursuing those projects with state and federal partners.

But Arizona may soon face cuts to its Colorado River supply that are far deeper and more painful than anyone expected. Even those with the most senior water rights are likely to be affected.

A lot more straws are about to get stuck in the ground to make up for those cuts, and at a time when multiple areas of the state are already rapidly depleting a finite supply.

It’s time to shore up our own house.

The cash may actually be used this time

Then again, even $480 million is a lot more than we had previously to spend on in-state projects.

And unlike the cash that lawmakers set aside last year for these projects, this round might have a better chance of being used.

Water plays a lead role: Ducey signs his $18B final state budget

Urban areas that had previously been shut out are now eligible to apply for some of the loans. And there are grants for some projects, which should catalyze conservation efforts and help cash-strapped rural areas pursue projects that they otherwise could not afford to repay.

Lawmakers also came up with a better structure to dole out the cash.

Instead of creating a powerful new water authority, as Gov. Doug Ducey and legislative leadership initially proposed, they gave those new powers to the existing – albeit now radically beefed up – Water Infrastructure Financing Authority, which has awarded water infrastructure loans for decades.

We'll learn a lot more about supply and demand

The 57-page bill clearly explains the point of this exercise:

“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.”

It spells out how the board should prioritize projects for funding. That includes considering their statewide benefits, cost effectiveness and ability to buffer other water supply reductions, as well as what we’ll learn from a forthcoming water supply and demand study.

The bill also sets aside $3.5 million to conduct that study annually – critical information, considering that the last such study found a statewide gap of at least 600,000 acre-feet, in a best-case scenario, between what we use and what we have.

And that was in 2011, which isn’t even in the same universe as the conditions we now face.

Nowhere near perfect, but still a water win

No, money alone won’t solve our water problems. And because a slew of new members must be appointed to review applications – likely by the next governor and Legislature – it could still be a while before any of this cash sees daylight.

Though lots of folks worked all session on this bill, it wasn’t even formally introduced until the second-to-last day. And even then, it initially lacked the votes to pass.

But after a flurry of 11th-hour amendments, which got almost no public vetting, the legislation passed nearly unanimously.

Is it perfect? Heck no.

And we’re not done. Consider this the down payment for future efforts, including those to shore up weak points in state water policy.

But given the future we are facing – which promises to be an exercise of choosing the least-bad of less-than-ideal options – Arizona should count this as a win.

Reach Allhands at joanna.allhands@arizonarepublic.com. On Twitter: @joannaallhands.

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This article originally appeared on Arizona Republic: Arizona has not set aside $1 billion for water – yet