Arizona’s Water Infrastructure Finance Authority is “strongly considering” public financing as it seeks ideas on how the drought-prone state could expand its water supply with the help of a $1 billion fund, the agency’s head said.

WIFA Director Chuck Podolak told reporters Friday that bonds are “on the table” in conjunction with the long-term , with groundwater accounting for 41%, in-state rivers generating 18%, and reclaimed water providing 5%.

WIFA will launch a project solicitation process later this year or early next year and expects IDE Technologies to participate in that competitive process with its desalination proposal, according to Podolak.

In December, the WIFA board agreed to evaluate the Israel-based company’s proposal that envisions a pipeline from a yet-to-be-built desalination facility in Puerto Penasco, Mexico, to the state’s major water distributor, the Central Arizona Project.

In the initial phase of the project, WIFA would provide a long-term commitment on behalf of the state to purchase 300,000 acre-feet per year of treated water that could increase to up to 1 million acre-feet annually in subsequent phases.

“It’s very, very clear the board wants to see alternatives and the board wants to see projects like IDE compared against other options,” Podolak said, adding WIFA staff has yet to present an analysis of the IDE proposal to the board.