Assigned to NR                                                                                                        AS PASSED BY ADD COW

 


 

 

 


ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

AMENDED

FACT SHEET FOR H.B. 2986

 

department of environmental quality; programs

Purpose

Modifies requirements for the Arizona Department of Environmental Quality (ADEQ) relating to the Solid Waste Fee Fund and the Lead Acid Battery Disposal, Open Burning Permitting and Used Oil Programs.

Background

The Arizona Legislature created ADEQ in 1986 to consolidate and focus responsibility for environmental management and administration of water quality, air quality, solid waste and hazardous waste regulation with the goal of increasing effectiveness, efficiency and public acceptance of environmental regulation (Laws 1986, Ch. 368).

ADEQ must: 1) formulate policies, plans and programs to implement statute to protect the environment; 2) prevent pollution through regulating the storage, handling and transportation of solids, liquids and gases that may cause or contribute to pollution; 3) promote the restoration and reclamation of degraded or despoiled areas and natural resources; 4) ensure, unless specifically authorized by the Legislature, that state laws, rules, standards, permits, variances and orders are adopted and construed to be consistent with and not more stringent than the corresponding federal law that addresses the same subject matter and does not adversely affect standards adopted by an Indian Tribe under federal law; and 5) carry out other statutorily prescribed duties.

            ADEQ, through the Director of ADEQ, must also establish or revise fees by rule for ADEQ to adequately perform its duties. Fees must be fairly assessed and impose the least burden and cost to the parties subject to the fees. When establishing or revising fees, ADEQ must base the fees on the direct and indirect costs of ADEQ's relevant duties (A.R.S. § 49-104).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

Solid Waste Fee Fund

1.   Allows monies in the Solid Waste Fee Fund to be used for:

a)   grants to, or contracts with, political subdivisions, nonprofit organizations or private enterprise for research, demonstration projects, new technologies, market development and source reduction studies and implementation of the recommendations or reports relating to the Arizona Recycling Program;

b)   public information, public education and technical assistance programs concerning litter control, recycling and source reduction;

c)   the collection and administration of monies in the Solid Waste Fee Fund;

d)   the administration of the Arizona Recycling Program;

e)   the administration of the Arizona Commerce Authority's (ACA's) Recycled Market Development Program; and

f) ADEQ's Solid Waste Control Program activities.

2.   Removes the lead acid battery collection and recycling facility initial and annual registration fees from the statutorily prescribed list of monies from which the Solid Waste Fee Fund consists.

3.   Adds, to the list of monies of which the Solid Waste Fee Fund may consist, in-lieu contributions and used oil handler fees.

4.   Stipulates that monies from solid waste landfill disposal fees be deposited in only the Solid Waste Fee Fund, rather than the Recycling Fund and the Solid Waste Fee Fund.

5.   Requires a city or town that provides waste or garbage collection services, landfill services or recycling collection or processing services outside of its boundaries to pay an in-lieu contribution to the Solid Waste Fee Fund, rather than the recycling fund, equal to the federal taxes that would be required of private companies performing the same service.

6.   Requires ADEQ to administer and distribute monies in the Solid Waste Fee Fund, rather than the Recycling Fund, that are for public education programs on recycling and source reduction and that are designated for the award of Arizona Recycling Program grants.

7.   Requires the Director of ADEQ, when making expenditures for public information, public education and technical assistance programs concerning litter control, recycling and source reduction, to ensure that counties with a population of fewer than 500,000 persons receive benefits in proportion to their contributions to the Solid Waste Fee Fund.

8.   Reverts, at the end of each fiscal year, any monies not spent by the ACA for the administration of the ACA's Recycled Market Development Program to the Solid Waste Fee Fund.

9.   Requires the Director of ADEQ to appoint an advisory committee to advise the Director on the use of monies in the Solid Waste Fee Fund for recycling grants, recycling education and technical assistance in managing or establishing recycling programs.

10.  Requires the Advisory Committee to consist of:

a)   two representatives from private solid waste collection businesses;

b)   two representatives from private solid waste recycling businesses;

c)   from political subdivisions that have implemented recycling and source reduction programs, at least one of whom resides in a county with a population of fewer than 500,000 persons; and

d)   one representative of the general public.

11.  Specifies that the Advisory Committee members serve at the pleasure of the Director of ADEQ and are not eligible to receive compensation.

12.  Repeals the Recycling Fund and transfers all unexpended and unencumbered monies remaining in the Recycling Fund to the Solid Waste Fee Fund on the general effective date.

Lead Acid Batteries

13.  Removes the requirement that a collection or recycling facility must be authorized by the federal EPA or the ADEQ to accept lead acid batteries for discard or disposal.

14.  Removes the requirement that the Director of ADEQ must require collection and recycling facilities that handle lead acid batteries to pay an initial and annual registration fee.

Open Burning Permits

15.  Specifies that, if ADEQ assumes jurisdiction over open burning in a county, the Director of ADEQ may delegate authority for the issuance of open burning permits to a county, city, town or fire district.

16.  Specifies a violation pursuant to open burning permit issuance by a private fire protection service provider is subject to the statutorily prescribed enforcement relating to state air pollution controls.

Used Oil Program

17.  Establishes a state used oil program for Arizona.

18.  Prohibits the state used oil program from being more stringent than the federal used oil program.

SIP Proposed Modifications

19.  Extends, from July 1, 2027, to July 1, 2029, the conditional enactment deadline for the U.S. EPA to approve the proposed modifications to the vehicle emissions testing program as part of the Arizona state implementation plan (SIP) for air quality.

20.  Extends, from July 1, 2027, to July 1, 2029, the conditional enactment deadline for the U.S. EPA to approve the proposed modifications to the gasoline fuel formulation requirements as part of the Arizona SIP for air quality.

Miscellaneous

21.  Adds, to the list of conditions that exempt any structural revisions, additions, extensions or modifications to a public water system from the statutorily prescribed plan review requirements, that the revision or modification is to the type, material, location or alignment of a water line, valve or appurtenance and the water line, valve or appurtenance after the revision or modification has the same capacity, function and performance and is in the same right-of-way or easement as the water line, valve or appurtenance before the revision or modification.

22.  Makes technical and conforming changes.

23.  Becomes effective date on the general effective date, subject to the provisions of the conditional enactments.

Amendments Adopted by Additional Committee of the Whole

1.   Requires a city or town that provides waste or garbage collection services, landfill services or recycling collection or processing services outside of its boundaries to pay an in-lieu contribution to the Solid Waste Fee Fund, rather than the recycling fund, as outlined.

2.   Requires ADEQ to administer and distribute monies in the Solid Waste Fee Fund, rather than the Recycling Fund, that are for public education programs on recycling and source reduction and that are designated for the award of Arizona Recycling Program grants.

3.   Requires monies from solid waste landfill disposal fees to be deposited in Solid Waste Fee Fund, rather than the Recycling Fund.

4.   Adds, to the list of monies of which the Solid Waste Fee Fund may consist, in-lieu contributions and solid waste landfill disposal fees.

5.   Repeals the Recycling Fund and transfers all unexpended and unencumbered monies remaining in the Recycling Fund to the Solid Waste Fee Fund on the general effective date.

6.   Outlines what monies in the Solid Waste Fee Fund may be used for.

7.   Requires the Director of ADEQ, when making expenditures for public information, public education and technical assistance programs concerning litter control, recycling and source reduction, to ensure that counties with a population of fewer than 500,000 persons receive benefits in proportion to their contributions to the Solid Waste Fee Fund.

8.   Reverts, at the end of each fiscal year, any monies not spent by the ACA for the administration of the ACA's Recycled Market Development Program to the Solid Waste Fee Fund.

9.   Requires the Director of ADEQ to appoint an advisory committee to advise the Director on the use of monies in the Solid Waste Fee Fund for recycling grants, recycling education and technical assistance in managing or establishing recycling programs.

10.  Outlines the Advisory Committee membership.

11.  Adds, to the list of conditions that exempt any structural revisions, additions, extensions or modifications to a public water system from the statutorily prescribed plan review requirements, that the revision or modification is to the type, material, location or alignment of a water line, valve or appurtenance and the water line, valve or appurtenance after the revision or modification has the same capacity, function and performance and is in the same right-of-way or easement as the water line, valve or appurtenance before the revision or modification.

12.  Makes technical and conforming changes.

House Action                                                           Senate Action

NREW            2/10/26      DP       10-0-0-0             NR                  3/24/26      DP              6-0-2                         

3rd Read          2/26/26                  53-0-7

Prepared by Senate Research

June 18, 2026

SB/SF/hk