ARIZONA HOUSE OF REPRESENTATIVES

SB 1525/HB 2658: environment; budget reconciliation; 2018-2019.

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: Chaptered

Abstract

Relating to the environment and the FY 2019 budget.

Provisions

Arizona Department of Environmental Quality (ADEQ)

1. Adds the following activities as permissible uses of Water Quality Fee Fund monies:

1. paying permit program implementation costs for direct reuse of reclaimed water; and
2. water quality monitoring and reporting of aquifer pollution information. (Sec. 1)

2. Continues to suspend the $15,000,000 annual transfer from corporate income tax revenues to WQARF and instead appropriates the following amounts in FY 2019 (Sec. 7):

Fund Source	Amount
Emissions Inspection Fund	$6,500,000
Air Quality Fund	$5,000,000
Recycling Fund	$2,052,000
Non-appropriated (revenue from various license and registration fees)	$2,000,000
Total Appropriated to WQARF	$15,552,000

o Statute specifies that WQARF must be assured of an annual funding amount of $18,000,000 each FY, with $15,000,000 transferred from corporate income tax revenues (A.R.S. § 49-282). For TY 2017 and after, the corporate income tax rate is 4.9% of net income (A.R.S. § 43-1111).

3. Continues to require the ADEQ Director to charge the following VEI testing fees in Area A (Maricopa County and portions of Pinal and Yavapai Counties):

Test	Testing Fees (FY 2018)
Onboard Diagnostic (OBD)	$17
Steady State and Idle	$16
Heavy-duty Diesel	$25

a. Exempts ADEQ from rulemaking until July 1, 2019, to establish the fees. (Sec. 10)

4. Allows ADEQ to transfer up to $6,531,000 from the UST Revolving Fund for the following in FY 2019:

a. administrative costs; and

b. remediating sewage discharge issues in Naco, Arizona. (Sec. 5)

5. Permits ADEQ to use the following amounts appropriated in FY 2019 (HB 2665) for the costs of developing and implementing an e-licensing project:

a. $1,800,000 from the Permit Administration Fund; and

b. $1,400,000 from the UST Revolving Fund. (Sec. 9)

6. Corrects drafting error in Laws 2018, Chapter 225 (SB 1493). (Sec. 2)

Arizona Navigable Stream Adjudication Commission (ANSAC)

7. Continues to allow monies appropriated to ANSAC from the Arizona Water Banking Fund to pay legal fees in FY 2019. (Sec. 6)

o HB 2665 appropriates $200,000 in FY 2019.

Arizona State Parks Board (ASPB)

8. Continues to allow ASPB to spend up to $692,100 from its portion of the Off-Highway Vehicle Recreation Fund for operating expenses in FY 2019. (Sec. 4)

Arizona Department of Water Resource (ADWR)

9. Continues to allow the Arizona Water Protection Commission to grant ADWR up to $336,000 of the unobligated balance in the Arizona Water Protection Fund to pay for administrative costs in FY 2019. (Sec. 3)

10. Continues to allow the ADWR Director to increase fees for services in FY 2019, and requires the monies to be deposited into the Water Resources Fund.

a. Contains Legislative intent that generated revenues be limited to $100,200.

b. Exempts ADWR from rulemaking until July 1, 2019, to establish the fees. (Sec. 11)

11. Appropriates $100,000 from the GF to ADWR in FY 2019 for the purposes of contracting with an independent consultant to estimate:

a. the rate of groundwater depletion in the northwest basins planning area; and

b. the number of years of groundwater remaining in the basin.

i. Exempts the appropriation from lapsing. (Sec. 8)

12. Directs ADWR to provide its groundwater data to the independent consultant. (Sec. 8)

13. Requires ADWR to submit the independent consultant's findings to the Speaker, President, Governor by December 31, 2019, and provide a copy to the SOS. (Sec. 8)

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Fifty-third Legislature                                  SB 1525

Second Regular Session                               Version 4: Chaptered

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