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