(1) Except as provided in Subsection (3), the division may not expend money for construction costs on any phase of a project until:
(a) contracts have been made for the sale or lease of at least 70% of the water developed by that phase; and
(b) all permits required by the environmental impact statement have been obtained.
(2) Construction of the project and implementation of the environmental mitigation plan shall proceed concurrently.
(3) The division may make expenditures for preconstruction costs if money is expressly appropriated or earmarked by statute for that purpose by the Legislature.