AZ Rev Stat § 49-193.05 (2021)
2021 Arizona Revised Statutes|Title 49 - The Environment|§ 49-193.05 - Drought mitigation fund financial assistance; procedures

49-193.05.  Drought mitigation fund financial assistance;  procedures A. In compliance with any applicable requirements,  an entity may apply to the board for and accept and incur indebtedness as a result of a loan or any other financial assistance pursuant to section 49-193.04 from the fund for conservation and water supply development purposes. An entity that applies for and accepts a loan or other financial assistance under this article is not precluded from applying for and accepting a loan or other financial assistance under any other law. B. The board shall: 1. Prescribe a simplified form and procedure to apply for and approve assistance. 2. Establish criteria by which assistance will be awarded,  including requirements for local participation in project costs,  if deemed advisable. The criteria shall include a determination of all of the following: (a) The applicant's ability to repay a loan according to the terms and conditions established by this section. At the option of the board,  the existence of a current investment grade rating on the applicant's existing debt that is secured by the same revenues to be pledged to secure repayment under the loan repayment agreement constitutes evidence regarding the applicant's ability to repay a loan. (b) The applicant's legal capability to enter into a loan repayment agreement. (c) The applicant's financial ability to construct,  operate and maintain the project if it receives the financial assistance. (d) The applicant's ability to manage the project. (e) The applicant's ability to meet any applicable environmental requirements imposed by federal or state agencies. (f) The applicant's ability to acquire any necessary regulatory permits. 3. Determine the order and priority of projects assisted under this section based on the merits of the application with respect to drought mitigation issues,  including the following: (a) The existing,  near-term and long-term water demands of the water provider involved in the application compared to the existing water supplies of the water provider. (b) The existing and planned conservation and water management programs of the water provider involved in the application,  including watershed management or protection. (c) The benefits of the project. (d) The sustainability of the water supply to be developed through the project. (e) The applicant's need for financial assistance. (f) The cost-effectiveness of the project. C. The board shall review each application received on its merits and shall inform the applicant of the board's determination within ninety days after receipt of a complete and correct application. If the application is not approved,  the board shall notify the applicant and state the reasons for the denial. If the application is approved,  the board may condition the approval on assurances the board deems necessary to ensure that the applicant will use the financial assistance according to law and the terms of the application. D. On approval of an application under this section,  the board shall use monies in the fund to finance the project.