HB2541 - 531R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-5304, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5304. Disposition of revenues

The department shall separately account for monies paid under this article and shall deposit, pursuant to sections 35-146 and 35-147, the first $1,800,000 of net revenues collected under this article in the safe drinking water program fund established by section 49-360 and the remaining net revenues in the water quality assurance revolving fund established by section 49-282. END_STATUTE

Sec. 2. Section 49-360, Arizona Revised Statutes, is amended to read:

START_STATUTE49-360. Monitoring assistance program for public water systems; fees; monitoring assistance fund; safe drinking water program fund; rules

A. The department shall establish a monitoring assistance program to assist public water systems in complying with monitoring requirements under the federal safe drinking water act (P.L. 93‑523; 88 Stat. 1660; P.L. 95‑190; 91 Stat. 1393; P.L. 104‑182; 110 Stat. 1613; 42 United States Code sections 300f through 300j-26), as amended. The program shall provide for the collection, transportation and analysis of baseline samples from public water systems in a frequency sufficient to keep the systems in compliance with the federal safe drinking water act requirements. At a minimum, the program shall include monitoring for the following categories of contaminants:

1. Volatile organic chemicals.

2. Synthetic organic chemicals.

3. Inorganic chemicals except for copper and lead.

4. Radiochemicals.

B. The department shall contract with one or more private parties or statewide nonprofit organizations representing water systems to implement the monitoring assistance program subject to available funding. Contracts shall be awarded for up to three years, beginning January 1, 1999. Entities with which the department contracts shall:

1. Provide updated monitoring schedules, developed in conjunction with the department, to participating water systems.

2. Take samples for participating water systems, allow for certified operators to take samples and train system personnel to take samples.

3. Assist participating water systems when resampling is required by the federal safe drinking water act.

4. Assist participating water systems to apply for and qualify for available interim monitoring relief and waivers.

5. Provide any other on-site technical assistance necessary to help the participating water systems comply with the monitoring requirements of the federal safe drinking water act.

C. Any public water systems serving more than ten thousand persons may elect to participate in the monitoring assistance program subject to the payment of the fees pursuant to subsection F of this section.

D. The department shall utilize use licensed environmental laboratories as defined by in section 36‑495 or laboratories certified or designated by the United States environmental protection agency to analyze samples collected under the monitoring assistance program. The department shall establish specific criteria for measuring contractor qualifications and performance.

E. Each environmental laboratory that the department utilizes uses pursuant to subsection D of this section shall deliver copies of the analysis results to the water system owner, the monitoring assistance program contractor and the department.

F. The director shall establish fees for the monitoring assistance program to be collected from all public water systems serving up to ten thousand persons. The participating water systems shall remit these fees to the department for deposit in the monitoring assistance fund.

G. The monitoring assistance fund is established consisting of fees collected from participating public water systems pursuant to subsection F of this section. The director shall administer the fund. If the fund has a surplus after execution of the previous year's contract, any surplus in excess of two hundred thousand dollars in any year shall be used to reduce the fee for the subsequent year in a manner consistent with the program invoicing system. Monies in the fund shall be used to pay the monitoring assistance program contractors, the environmental laboratories utilized used for the purposes of this section and administrative costs incurred by the department. Monies in the fund are exempt from lapsing pursuant to section 35‑190. Interest earned on monies in the fund shall be credited to the fund. The allowable administrative costs of the department are limited to no more than fifteen per cent percent of monies deposited in the fund annually or one hundred eighty‑four thousand dollars, whichever is less. As used in this subsection, administrative costs include only those costs necessary to perform do the following:

1. To assure Ensure contractor performance and quality control.

2. Administration of Administer the contracts.

3. Collection of Collect fees as provided in subsection F of this section.

4. Providing Provide direct technical assistance related to the implementation of the monitoring assistance program only to the extent the department's assistance is required by this section.

H. The safe drinking water program fund is established consisting of monies deposited in the fund pursuant to section 42-5304. The director shall administer the fund. Subject to legislative appropriation, monies in the fund shall be used to pay for the costs of programs required by this article incurred by the department. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Interest earned on monies in the fund shall be credited to the fund.

H. I. The department shall adopt rules for the monitoring assistance program.

I. J. Any site visit made pursuant to this section by a monitoring assistance program contractor shall not be regarded as an inspection or investigation. No Enforcement actions shall not be taken as a result of these site visits, except that nothing in this section affects does not affect the authority of the department to enforce this article pursuant to section 49-354. END_STATUTE

Sec. 3. Arizona water protection fund; use

Notwithstanding section 45‑2114, Arizona Revised Statutes, in fiscal year 2017-2018, the Arizona water protection fund commission may grant to the department of water resources up to $336,000 of the unobligated balance in the Arizona water protection fund established by section 45‑2111, Arizona Revised Statutes, to pay for administrative costs of the department in fiscal year 2017-2018.

Sec. 4. Off-highway vehicle recreation fund; use

Notwithstanding section 28-1176, Arizona Revised Statutes, the Arizona state parks board may spend up to $692,100 from the Arizona state parks board portion of the off-highway vehicle recreation fund established by section 28‑1176, Arizona Revised Statutes, in fiscal year 2017-2018 for parks board operating expenses.

Sec. 5. Underground storage tank revolving fund; transfer of monies; use

Notwithstanding any other law, the provisions of section 49-1015, subsection C, Arizona Revised Statutes, are suspended for fiscal year 2017‑2018, and the department of environmental quality may transfer up to $6,531,000 from the underground storage tank revolving fund established by section 49‑1015, Arizona Revised Statutes, in fiscal year 2017-2018 for administrative costs of the department.

Sec. 6. Arizona water banking fund; use

In addition to the purposes provided in section 45‑2425, Arizona Revised Statutes, monies appropriated to the Arizona navigable stream adjudication commission from the Arizona water banking fund established by section 45‑2425, Arizona Revised Statutes, may be used in fiscal year 2017‑2018 to pay legal fees.

Sec. 7. Appropriations; reduction; water quality assurance revolving fund; intent

A. Notwithstanding section 49‑282, Arizona Revised Statutes, the appropriation from the state general fund to the water quality assurance revolving fund established by section 49-282, Arizona Revised Statutes, for fiscal year 2017-2018 may not exceed $2,823,600.

B. Notwithstanding any other law, the following amounts from the following sources are appropriated in fiscal year 2017-2018 to the water quality assurance revolving fund established by section 49-282, Arizona Revised Statutes:

1. $4,000,000 from the emissions inspection fund established by section 49-544, Arizona Revised Statutes.

2. $2,000,000 from the air quality fund established by section 49‑551, Arizona Revised Statutes.

3. $3,713,300 from the permit administration fund established by section 49-455, Arizona Revised Statutes.

4. $1,000,000 from the recycling fund established by section 49‑837, Arizona Revised Statutes.

C. It is the intent of the legislature that the amounts appropriated in subsection B of this section be supplemented by $1,500,000 of monies directly deposited in the water quality assurance revolving fund established by section 49‑282, Arizona Revised Statutes.

D. It is the intent of the legislature that the fund balances in the emissions inspection fund established by section 49‑544, Arizona Revised Statutes, the air quality fund established by section 49‑551, Arizona Revised Statutes, the permit administration fund established by section 49-455, Arizona Revised Statutes, and the recycling fund established by section 49-837, Arizona Revised Statutes, be evaluated to determine whether there are sufficient monies available to continue to use these fund sources in fiscal year 2018‑2019 for the purposes of the water quality assurance revolving fund established by section 49‑282, Arizona Revised Statutes.

Sec. 8. Water quality fee fund; use

Notwithstanding section 49‑210, Arizona Revised Statutes, the director of environmental quality may use monies in the water quality fee fund established by section 49‑210, Arizona Revised Statutes, for water quality monitoring as prescribed by section 49-225, Arizona Revised Statutes.

Sec. 9. Department of environmental quality; vehicle emissions testing fees; exemption from rulemaking

A. Notwithstanding any other law, the director of environmental quality shall charge the same fees in fiscal year 2017-2018 that were charged in fiscal year 2016-2017 for tests conducted in Area A, as defined in section 49‑541, Arizona Revised Statutes.

B. The department of environmental quality is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, until July 1, 2018 for the purpose of establishing fees pursuant to this section.

Sec. 10. Water resources fees; increase; intent; exemption from rulemaking

A. Notwithstanding any other law, the director of water resources may increase fees in fiscal year 2017-2018 for services in fiscal year 2017‑2018.

B. Monies received from any fees collected pursuant to subsection A of this section shall be deposited in the water resources fund established by section 45-117, Arizona Revised Statutes.

C. It is the intent of the legislature that the monies generated by the fees collected pursuant to subsection A of this section not exceed $100,200.

D. The department of water resources is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, until July 1, 2018 for the purpose of establishing fees pursuant to this section.