House Engrossed

 

environment; FY2026

 

 

 

 

State of Arizona

House of Representatives

Fifty-seventh Legislature

First Regular Session

2025

 

 

 

HOUSE BILL 2965

 

 

 

 

AN ACT

 

Appropriating monies; relating to the environment.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1. Arizona water protection fund; use of monies

Notwithstanding section 45-2114, Arizona Revised Statutes, in fiscal year 2025-2026, 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 2025-2026.

Sec. 2. Underground storage tank revolving fund; use of monies

Notwithstanding any other law, in fiscal year 2025-2026, the department of environmental quality may use up to $6,531,000 from the underground storage tank revolving fund established by section 49-1015, Arizona Revised Statutes, in fiscal year 2025-2026 for:

1. Administrative costs of the department.

2. Remediating sewage discharge issues in Naco, Arizona and other border areas of this state.

Sec. 3. Arizona water banking fund; use of monies

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 2025-2026 to pay legal fees.

Sec. 4. Appropriation limit; water quality assurance revolving fund

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 2025-2026 may not exceed $15,000,000.

Sec. 5. Department of environmental quality; vehicle emissions testing fee; exemption from rulemaking

A. Notwithstanding any other law, in fiscal year 2025-2026, the director of the department of environmental quality shall reduce fees for tests conducted in area A so that vehicle emissions testing fee revenues collected from area A are reduced by five percent of fiscal year 2023-2024 area A collections. For the purposes of this subsection, "area A" has the same meaning prescribed 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, 2026 for the purpose of establishing fees pursuant to this section.

Sec. 6. Agricultural fees; emergency rulemaking

A. For fiscal year 2025-2026, notwithstanding any other law, the director of the Arizona department of agriculture, subject to the review of the department of agriculture advisory council, may lower existing fees for any funds held in trust by the department.

B. The Arizona department of agriculture shall adopt emergency rules pursuant to title 41, chapter 6, Arizona Revised Statutes, through July 1, 2026, in conjunction with the industry, to modify fees deposited in the dangerous plants, pests and diseases trust fund established by section 3-214.01, Arizona Revised Statutes. These rules must be reviewed by the department of agriculture advisory council.