Water bonds

Water systems will have five years to comply, although the Biden administration estimates only between 6% and 10% of systems will need to treat.

Gov. Michelle Lujan Grisham said her public-private sector plan to build a strategic water supply will remain a top priority after a bill for financing failed to advance in the legislature.

The authority is one of the few investment-grade U.S. issuers actively selling triple-tax-exempt paper.

The funds will go through State Drinking Water and Clean Water Revolving Funds, which states often use together with municipal bonds to finance projects.

The deal may represent a measuring stick for triple-A benchmark yields amid market volatility.

The Texas city's project joins other efforts in Southwest states to find new water sources as supplies dwindle due to persistent drought conditions.

A California Department of Water Resources spokeswoman said the department is considering an appeal of the Superior Court judge's decision.

The proposed pipeline, which dates back to 2006, would transport Colorado River water from the Lake Powell reservoir to the southwest corner of Utah.

The Water Infrastructure Financing Authority will use information it received from banks, businesses, conservation groups, and others to solicit water augmentation projects next year.

A significant chunk of the costs will be passed to ratepayers, experts said.