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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: APPROP DP 8-1-1-0 | 3rd Read 17-13-0-0House: Rules DP/C&P 8-0-0-0 |
SB 1740: 2025-2026; environment
Sponsor: Senator Kavanagh (with permission of committee on Rules), LD 3
House Engrossed
Overview
Contains provisions relating to the environment needed to implement the FY 2026 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.
Provisions
Agriculture and Water Innovation Pilot Program and Fund
1. Establishes the Agriculture and Water Innovation Fund Pilot Program (Pilot Program) and the Agriculture and Water Innovation Fund (Fund). (Sec. 1)
2. Repeals the Pilot Program and Fund January 1, 2029. (Sec. 2)
3. Allows the Arizona Department of Agriculture (ADA) to a administer monies from the fund to qualified applicants to acquire or contract for implementing technology that improves water use efficiency by improving soil health. (Sec. 1)
4. Requires ADA, on or before December 31 of each year, to submit a report describing the activities of the ADA for the preceding fiscal year related to the Fund and prescribes required contents of the report. (Sec. 1)
Game and Fish Publications Revolving Fund
5. Increases the threshold of funds from $80,000 to $250,000 in the Game and Fish Publications Revolving Fund that, upon exceedance of the threshold, revert to the Game and Fish Fund. (Sec. 3)
6. Increases the limit of funds in the Game and Fish Publications Revolving Fund that are exempt from lapsing from $80,000 to $250,000. (Sec. 3)
Hazard Mitigation Revolving Fund
7. Removes the specified fiscal years that the Hazard Mitigation Revolving Fund monies are permitted for use. (Sec. 4)
8. Designates the monies in the Hazard Mitigation Revolving Fund are required to be used. (Sec. 4)
9. Repeals the delayed fiscal year 2028 repeal of the Hazard Mitigation Revolving Fund. (Sec. 9)
Arizona State Land Commissioner (Commissioner) Powers and Duties
10. Allows the Commissioner to contract with a qualified third-party reviewer to review any application to the Arizona State Land Department (ASLD) if the Commissioner determines the ASLD will not be able to take action on the application within sixty working days after the submittal. (Sec. 5)
11. Prescribes requirements of a qualified third party that reviews an application. (Sec. 5)
Trust Land Management Fund
12. Allows the ASLD to retain an amount of monies from the Trust Land Management Fund that is sufficient to pay the ASLD's costs for contracting with a qualified third party reviewer for applications. (Sec. 6)
Wildfire Mitigation Plan Fees
13. Requires the State Forester to deposit fees collected for the review and approval of wildfire mitigation plans into the Cooperative Forestry Fund. (Sec. 7)
Colorado River Litigation Fund
14. Establishes the Colorado River Litigation Fund (Fund) and prescribes the Arizona Department of Water Resources (ADWR) with its administration. (Sec. 8)
15. Exempts the monies in the Fund from lapsing. (Sec. 8)
16. Designates monies in the Fund be used by ADWR for the sole purpose of initiating, defending or participating in litigation related to Arizona's apportionment of Colorado River water or any other rights regarding Colorado River water. (Sec. 8)
17. Requires the State Treasurer on notice of the Director of ADWR to invest and divest monies in the Fund. (Sec. 8)
18. Prohibits monies in the Fund from being used for the purpose of initiating litigation against any entity that holds an entitlement to the state's apportionment of Colorado River water. (Sec. 8)
Fire Incident Management Fund (Incident Fund) (Session Law)
19. Extends the Incident Fund until June 30, 2027. (Sec. 10)
Nuclear Emergency Management Fund (Session Law)
20. Increases the amount appropriated from the nuclear emergency management fund to $2,667,991 for fiscal year 2025 and $2,761,339 for fiscal year 2026. (Sec. 11)
21. Increases the assessment against each consortium of public service corporations and municipal corporations engaged in constructing or operating a commercial nuclear generating station to $2,667,991 for fiscal year 2025 and &2761,339 for fiscal year 2026. (Sec. 12)
Fire Incident Management Grant Program (Session Law)
22. Establishes the Fire Incident Grant Program (Program) and prescribes the Arizona Department of Administration (ADOA) with its administration. (Sec. 13)
23. Outlines requirements of the Program, of ADOA and of monies administered in accordance with the Program. (Sec. 13)
24. Requires ADOA to submit a report, on or before December 31, 2025 including listed information of the Program's applicants, awardees and granted monies. (Sec. 13)
25. Requires awarded monies that are unencumbered that meet certain criteria to be returned to ADOA for ADOA to then have the ability to administer the monies to another entity in the Program. (Sec. 14)
Underground Storage Tank Revolving Fund (USTR Fund) (Session Law)
26. Authorizes the Arizona Department of Environmental Quality (ADEQ) to use up to $6,531,000 from the USTR Fund in FY 2025 for ADEQ administrative costs and to remediate sewage discharge issues in Naco and other border areas of Arizona. (Sec. 15)
Arizona Navigable Stream Adjudication Commission (Commission) (Session Law)
27. Allows monies appropriated to the Commission from the Arizona Water Banking Fund to be used to pay legal fees in FY 2026. (Sec. 16)
Arizona Water Protection Fund (AWPF) (Session Law)
28. Authorizes the AWPF Commission to grant to the Arizona Department of Water Resources (ADWR) up to $336,000 of the unobligated balance in AWPF for ADWR administrative costs in FY 2025. (Sec. 17)
Water Quality Assurance Revolving Fund (WQARF) (Session Law)
29. Suspends the $18,000,000 transfer from the General Fund to the WQARF for FY 2026. (Sec. 18)
Vehicle Emission Testing Fees (Session Law)
30. Directs the ADEQ Director to maintain vehicle emissions testing fees in Area A at the emission fee level as of June 30, 2025. (Sec. 19)
State Land Department Application Processing Report (Session Law)
31. Requires the ASLD provide a report on the total number of applications that are currently pending in certain phases, on or before February 1, 2026. (Sec. 20)
Retroactivity Clause
32. Contains a retroactivity clause that applies July 1, 2025. (Sec. 21)
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36. SB 1740
37. Initials CW Page 0 House Engrossed
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