HB2658 - 532R

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

Section 1. Title 45, chapter 2, Article 4, Arizona Revised Statutes, is amended by adding section 45-456, to read:

START_STATUTE45-456. West basin water users advisory councils; La Paz and Mohave counties; membership; report; council termination

A. The La Paz County west basin water users advisory council and the Mohave County west basin water users advisory council are ESTABLISHED, each consisting of nine members who are appointed to represent the users of groundwater in the Hualapai Valley basin, the Sacramento Valley basin, the Renegras Plain basin, the McMullen Valley basin and the Butler Valley basin.

B. The governor shall appoint seven Members of each advisory council within six months after the effective date of this section after receiving the nonbinding advice of the respective Board of Supervisors for that county. The governor shall appoint members on the basis of their knowledge of, interest in and experience with the development, use and conservation of water. For each west basin water users advisory council, the seven members must reside or own property in that County, and those members shall be as follows:

1. For the mohave county west basin water users advisory council, two members of a County Farm Bureau Livestock Association for Mohave County, and for the la Paz County west basin water users advisory council, two members of a County Farm Bureau association for La Paz County.

2. one County Supervisor from the respective county.

3. One City or Town Council Member or the Mayor from a city or town that is located in the respective county.

4. one person who represents industrial water users in the respective county.

5. one person who represents a natural resource conservation district that is located in the respective county.

6. one member of the public who owns five or more water wells in the applicable county.

C. Two legislators shall be appointed to each advisory council within six months after the effective date of this section or within six months after the election of any new legislators as follows to serve as advisory nonvoting members who are not members for the purpose of determining whether a quorum is present:

1. One member of the house of REPRESENTATIVES who is appointed by the Speaker of the house of representatives and who represents a legislative district that contains one or more of the basins prescribed in subsection A of this section.

2. One member of the senate who is appointed by the President of the Senate and who represents a LEGISLATIVE district that contains one or more of the basins prescribed in subsection A of this section.

D. The term of office of each member who is appointed pursuant to subsection B of this section is six years. For each advisory council, the terms of two members expire on the third Monday of January each even‑numbered year, except that on each third even-numbered year, the term of one member expires. At their first meeting, the initial Members of the council shall determine by lot the length of each member's term of office, and all subsequent terms of office are six years.

E. Members of the advisory councils are not eligible to receive compensation, but members are eligible for reimbursement from the department for travel and subsistence while engaged in advisory council business under title 38, chapter 4, article 2.

F. Each west basin water users advisory council established pursuant to this section shall:

1. Receive and analyze all groundwater withdrawal data developed by the department, advise the Director and make recommendations on sound groundwater management programs and policies for the basins prescribed in subsection A of this section and develop and make comments to the director on any draft best management practices for the basins before plans for the basins are proposed to the legislature. Each advisory council shall submit a report of its recommendations to the director, the governor, the speaker of the house of representatives and the president of the senate on or before December 31, 2022 and shall provide a copy of this report to the secretary of state. It is the intent of the legislature that only recommendations transmitted to the director by the advisory councils be considered for enactment into law by the Legislature.

2. Analyze the utility of underground water storage in the basins prescribed in subsection A of this section and provide comments and recommendations to the director regarding that storage.

3. Keep the minutes of its meetings and all records, reports and other information relative to its work and programs in permanent form, systematically indexed and filed with the department.

4. Elect from its members a chairperson and vice chairperson for terms of two years expiring on the third Monday of January of each even‑numbered year.

5. Designate the person or persons to execute all documents and instruments on behalf of the advisory council.

6. Manifest and record its actions by motion, resolution or other appropriate means.

7. Make a complete record of its proceedings. Each advisory council shall make these records open to public inspection during regular business hours by making the records available in the office of the clerk of the board of supervisors in the respective county or by posting the records on a public website.

G. The advisory councils established by this section end on July 1, 2026 pursuant to section 41‑3103.END_STATUTE

Sec. 2. Section 49-210, Arizona Revised Statutes, is amended to read:

START_STATUTE49-210. Water quality fee fund; appropriation; exemption; monies held in trust

A. The water quality fee fund is established consisting of monies appropriated by the legislature and fees received pursuant to sections 49‑104, 49‑203, 49‑241, 49-241.02, 49‑242, 49‑255.01, 49‑332, 49-352, 49‑353 and 49-361. The director shall administer the fund.

B. Monies in the fund are subject to annual legislative appropriation to the department for water quality programs. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

C. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

D. Monies in the water quality fee fund shall be used for the following purposes:

1. The issuance of aquifer protection permits pursuant to section 49‑241.

2. The aquifer protection permit registration fee procedures pursuant to section 49‑242.

3. Dry well registration fee procedures pursuant to section 49‑332.

4. Technical review fee procedures pursuant to section 49‑353.

5. Inspection fee procedures pursuant to section 49‑104, subsection C.

6. The issuance of permits under the Arizona pollutant discharge elimination system program pursuant to section 49‑255.01.

7. Operator certification pursuant to sections 49‑352 and 49‑361.

8. Paying the cost of implementing section 49‑203, subsection A, paragraph 6 and section 49‑221, subsection E.

9. Water quality monitoring pursuant to section 49‑225 and reporting of aquifer pollution information pursuant to section 49‑249.

E. Any fee, assessment or other levy that is authorized by law or administrative rule and that is collected and deposited in the water quality fee fund shall be held in trust. The monies in the fund may be used only for the purposes prescribed by statute and shall not be appropriated or transferred by the legislature to fund the general operations of this state or to otherwise meet the obligations of the general fund of this state. This subsection does not apply to any taxes or other levies that are imposed pursuant to title 42 or 43. END_STATUTE

Sec. 3. Laws 2018, chapter 225, section 11 is amended to read:

Sec. 11. Conditional repeal; notice

A. Sections 17-265, 35-142, 49-104, 49-203, 49-210, 49-261, 49-262 and 49-263.01, Arizona Revised Statutes, as amended by this act, are repealed on August 1, 2023 unless the United States environmental protection agency approves the department of environmental quality's clean water act section 404 dredge and fill permit program established pursuant to title 49, chapter 2, article 3.2, Arizona Revised Statutes, as added by this act, under the terms of the clean water act, 33 United States code sections 1251 through 1376.

B. A. Title 49, chapter 2, article 3.2, Arizona Revised Statutes, as added by this act Laws 2018, chapter 225, section 6, is repealed on August 1, 2023 unless the United States environmental protection agency approves the department of environmental quality's clean water act section 404 dredge and fill permit program established pursuant to title 49, chapter 2, article 3.2, Arizona Revised Statutes, as added by this act Laws 2018, chapter 225, section 6, under the terms of the clean water act, 33 United States Code sections 1251 through 1376.

C. B. The director of environmental quality shall notify in writing the director of the Arizona legislative council on or before September 1, 2023 either:

1. Of the date on which the condition was met.

2. That the condition was not met.

Sec. 4. Arizona water protection fund; use

Notwithstanding section 45‑2114, Arizona Revised Statutes, in fiscal year 2018-2019, 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 2018-2019.

Sec. 5. 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 2018-2019 for parks board operating expenses.

Sec. 6. Underground storage tank revolving fund; use of monies

Notwithstanding any other law, in fiscal year 2018‑2019, 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 2018-2019 for:

1. Administrative costs of the department.

2. Remediating sewage discharge issues in Naco, Arizona.

Sec. 7. 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 2018‑2019 to pay legal fees.

Sec. 8. Appropriations; reduction; water quality assurance revolving fund; intent

A. Notwithstanding section 49‑282, Arizona Revised Statutes, no monies are appropriated from the state general fund to the water quality assurance revolving fund established by section 49-282, Arizona Revised Statutes, for fiscal year 2018-2019.

B. Notwithstanding any other law, the following amounts from the following sources are appropriated in fiscal year 2018-2019 to the water quality assurance revolving fund established by section 49-282, Arizona Revised Statutes:

1. $6,500,000 from the emissions inspection fund established by section 49-544, Arizona Revised Statutes.

2. $5,000,000 from the air quality fund established by section 49‑551, Arizona Revised Statutes.

3. $2,052,000 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 $2,000,000 of monies directly deposited in the water quality assurance revolving fund established by section 49‑282, Arizona Revised Statutes.

Sec. 9. Appropriations; groundwater withdrawal estimates; exemption; reporting requirements; intent; delayed repeal

A. The sum of $200,000 is appropriated from the state general fund in fiscal year 2018-2019 and the sum of $300,000 is appropriated from the state general fund in fiscal year 2019-2020 to the department of water resources to estimate the amount of withdrawals of groundwater from and resulting effects on the aquifers in the Hualapai Valley basin, the Sacramento Valley basin, the Renegras Plain basin, the McMullen Valley basin and the Butler Valley basin for calendar years 2018, 2019 and 2020 and to report as prescribed by this section. These monies may also be used to pay the travel and subsistence expenses of advisory council members pursuant to section 45-456, subsection E, Arizona Revised Statutes, as added by this act. The department may collect information directly from water users who voluntarily provide that information in addition to using other sources of data for making estimates, except that the department may not install well meters or monitors to make estimates pursuant to this section.

B. Before spending the monies appropriated by subsection A of this section in fiscal year 2019-2020, the department of water resources shall submit an expenditure report for review by the joint legislative budget committee that includes:

1. An accounting of the monies spent from the fiscal year 2018-2019 appropriation made by subsection A of this section.

2. An expenditure plan for any monies remaining from the fiscal year 2018-2019 appropriation and for the monies appropriated by subsection A of this section in fiscal year 2019-2020.

C. The appropriations made in subsection A of this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

D. On or before December 31, 2021, the department of water resources shall report the estimated amount of water annually withdrawn and the estimated effect on each aquifer in each basin to the governor, the speaker of the house of representatives, the president of the senate and the chairpersons of the west basin water users advisory councils established by section 45‑456, Arizona Revised Statutes, as added by this act.

E. It is the intent of the legislature that the appropriations made in subsection A of this section be used by the department of water resources to obtain the most reliable estimates of the amount of withdrawals of groundwater from the basins prescribed in subsection A of this section and the resulting effects on each aquifer. The department, in its discretion, may partner with a university in this state to carry out the provisions of this section. The university shall charge not more than twenty-five percent for indirect overhead on the project.

F. This section is repealed from and after June 30, 2022.

Sec. 10. Permit administration fund; underground storage tank revolving fund; use; e-licensing project

A. Notwithstanding section 49-455, Arizona Revised Statutes, the department of environmental quality may use the amount appropriated in fiscal year 2018-2019 from the permit administration fund established by section 49-455, Arizona Revised Statutes, for the costs of developing and implementing an e-licensing project.

B. Notwithstanding section 49-1015, Arizona Revised Statutes, the department of environmental quality may use the amount appropriated in fiscal year 2018-2019 from the underground storage tank revolving fund established by section 49-1015, Arizona Revised Statutes, for the costs of developing and implementing an e-licensing project.

Sec. 11. 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 2018-2019 that were charged in fiscal year 2017-2018 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, 2019 for the purpose of establishing fees pursuant to this section.

Sec. 12. Water resources fees; increase; intent; exemption from rulemaking

A. Notwithstanding any other law, the director of water resources may increase fees in fiscal year 2018-2019 for services in fiscal year 2018‑2019.

B. Monies received from the 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, 2019 for the purpose of establishing fees pursuant to this section.