WIFA Eyes Creative Solutions as Water Supply Funds Run Dry

Arizona’s Water Infrastructure Finance Authority (WIFA) has initiated a search for innovative solutions to address the state’s looming water crisis. During a recent meeting on November 20, board members took a crucial first step by seeking proposals on how to import over 100 billion gallons of water from external sources. This move comes in the wake of significant funding cuts, leaving the authority with less than half of the $1 billion originally promised by the Legislature for water augmentation projects.

WIFA is focused on solutions that are not only technically feasible but also economically viable. Given the current shortage of local water supplies and the uncertainties surrounding the Colorado River allocation, any imported water will likely come at a higher cost than what Arizonans currently pay for their water.

Historically, this initiative stems from an ambitious plan to desalinate water from Mexico’s Sea of Cortez, which former Governor Doug Ducey championed. However, negotiations with IDE Technologies fell apart due to the lack of sufficient information, prompting WIFA to restart the quest for solutions.

Ted Cooke, a WIFA board member, emphasized the importance of exploring various options, including reclaimed water and alternative sources. He noted that anything not traditionally considered could be part of the equation. “We want to have an open mind to innovative ideas,” Cooke said, acknowledging the many complex challenges ahead.

Arizona’s water challenges are exacerbated by its growing population and a declining reliance on groundwater. Furthermore, reduced allocations from the Colorado River, due to prolonged drought conditions, heighten the urgency for solutions. Studies indicate a potential unmet demand of up to 5 million acre-feet of water across the state, with Central Arizona project areas projecting needs between 100,000 and 500,000 acre-feet within the next decade.

In 2022, lawmakers allocated $1 billion over three years for this water supply initiative, mandating that at least 75% of new water come from outside the state. Nonetheless, budget cuts from Governor Katie Hobbs have significantly reduced available funds, leaving WIFA with approximately $450 million—far below what is needed to tackle major water supply projects. The initial Israeli desalination plan was estimated to cost around $5.5 billion.

The average monthly water bill in Phoenix and Tucson hovers around $45, which includes all costs associated with water treatment and delivery. However, estimates for desalination could significantly increase those costs, adding between $830 and $1,600 per year for families, depending on usage. As officials explore alternative solutions, advanced water purification methods, such as “toilet to tap,” are also gaining traction. This technology involves treating sewage to drinking water standards, exemplified by a facility in Scottsdale.

Despite state regulations emphasizing that most new water must come from outside sources, Cooke believes it is crucial to also evaluate in-state options. “We need to explore all viable options to ensure we don’t overlook more cost-effective solutions,” he stated.

WIFA’s solicitation process is designed to attract diverse proposals without specifying required technologies, broadening the scope for potentially unconventional solutions. However, the reduced financial commitment from the state sends a concerning message to potential stakeholders. Some may perceive Arizona’s hesitance as a lack of seriousness in pursuing water augmentation, which could deter interest in submitting proposals.

McGuire underscored the need for state investment to mitigate the risks associated with high capital costs, stating that state support would make these projects more financially sustainable. Looking ahead, WIFA has pivoted to a strategy that not only assesses the feasibility of various projects but also guarantees financial backing for selected proposals to enable comprehensive evaluations.

As Arizona navigates its budgeting process, the tangible concepts brought forth by WIFA will play a significant role in securing future funding and establishing a sustainable water supply for the state.