HB2580 - 551R

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

Section 1. Repeal

Sections 41-791.03, 41-1291 and 41-1291.01, Arizona Revised Statutes, are repealed.

Sec. 2. Section 49-202, Arizona Revised Statutes, is amended to read:

START_STATUTE49-202. Designation of state agency

A. The department is designated as the agency for this state for all purposes of the clean water act, including section 505, the resource conservation and recovery act, including section 7002, and the safe drinking water act. The department may take all actions necessary to administer and enforce these acts as provided in this section, including entering into contracts, grants and agreements, the adoption, modification adopting, modifying or repeal of repealing rules, and initiating administrative and judicial actions to secure to this state the benefits, rights and remedies of such acts.

B. The department shall process requests under section 401 of the clean water act for certification of permits required by section 404 of the clean water act in accordance with subsections C through H i of this section. Subsections C, and D, subsection E, paragraph 3, subsection F, paragraph 3 g and subsection H i of this section apply to the certification of nationwide or general permits issued under section 404 of the clean water act. If the department has denied or failed to act on certification of a nationwide permit or general permit, subsections C through H i of this section apply to the certification of applications for or notices of coverage under those permits.

C. The department shall review the application for section 401 certification solely to determine whether the effect of the discharge will comply with the water quality standards for navigable waters established by department rules adopted pursuant to section 49-221, subsection A, and section 49-222. The department's review shall extend only to activities conducted within the ordinary high watermark of navigable waters. To the extent that any other standards are considered applicable pursuant to section 401(a)(1) of the clean water act, certification of these standards is waived.

D. The department may include only those conditions on certification under section 401 of the clean water act that are required to ensure compliance with the standards identified in subsection C of this section. The department may impose reporting and monitoring requirements as conditions of certification under section 401 of the clean water act only in accordance with department rules.

E. Until January 1, 1999:

1. The department may request supplemental information from the section 401 certification applicant if the information is necessary to make the certification determination pursuant to subsection C of this section. The department shall request this information in writing within thirty calendar days after receipt of the application for section 401 certification. The request shall specifically describe the information requested. Within fifteen calendar days after receipt of the applicant's written response to a request for supplemental information, the department shall either issue a written determination that the application is complete or request specific additional information. The applicant may deem any additional requests for supplemental information as a denial of certification for purposes of subsection H of this section. If the department fails to act within the time limits prescribed by this subsection, the application is deemed complete.

2. The department shall grant or deny section 401 certification and shall send a written notice of the department's decision to the applicant within thirty calendar days after receipt of a complete application for certification. Written notice of a denial of section 401 certification shall include a detailed description of the reasons for denial.

3. The department may waive its right to certification by giving written notice of that waiver to the applicant. The department's failure to grant or deny an application within the time limits prescribed by this section is deemed a waiver of certification pursuant to this subsection and section 401(a)(2) of the clean water act.

F. Beginning January 1, 1999:

1. e. The department may request supplemental information from the section 401 certification applicant if the information is necessary to make the certification determination pursuant to subsection C of this section. The department shall request this information in writing. The request shall specifically describe the information requested. After receipt of the applicant's written response to a request for supplemental information, the department shall either issue a written determination that the application is complete or request specific additional information. The applicant may deem any additional requests for supplemental information as a denial of certification for purposes of subsection H i of this section. In all other instances, the application is complete on submission of the information requested by the department.

2. f. The department shall grant or deny section 401 certification and shall send a written notice of the department's decision to the applicant after receipt of a complete application for certification. Written notice of a denial of section 401 certification shall include a detailed description of the reasons for denial.

3. g. The department may waive its right to certification by giving written notice of that waiver to the applicant. The department's failure to act on an application is deemed a waiver pursuant to this subsection and section 401(a)(2) of the clean water act.

G. h. The department shall adopt rules specifying the information the department requires an applicant to submit under this section in order to make the determination required by subsections C and D of this section. Until these rules are adopted, the department shall require an applicant to submit only the following information for certification under this section:

1. The name, address and telephone number of the applicant.

2. A description of the project to be certified, including an identification of the navigable waters in which the certified activities will occur.

3. The project location, including latitude, longitude and a legal description.

4. A United States geological service topographic map or other contour map of the project area, if available.

5. A map delineating the ordinary high watermark of navigable waters affected by the activity to be certified.

6. A description of any measures to be applied to the activities being certified in order to control the discharge of pollutants to navigable waters from those activities.

7. A description of the materials being discharged to or placed in navigable waters.

8. A copy of the application for a federal permit or license that is the subject of the requested certification.

H. i. Pursuant to title 41, chapter 6, article 10 an applicant for certification may appeal a denial of certification or any conditions imposed on certification. Any person who is or may be adversely affected by the denial of or imposition of conditions on the certification of a nationwide or general permit may appeal that decision pursuant to title 41, chapter 6, article 10.

I. j. Certification under section 401 of the clean water act is automatically granted for quarrying, crushing and screening of nonmetallic minerals in ephemeral waters if all of the following conditions are satisfied within the ordinary high watermark of jurisdictional waters:

1. There is no disposal of construction and demolition wastes and contaminated wastewater.

2. Water for dust suppression, if used, does not contain contaminants that could violate water quality standards.

3. Pollution from the operation of equipment in the mining area is removed and properly disposed.

4. Stockpiles of processed materials containing ten per cent percent or more of particles of silt are placed or stabilized to minimize loss or erosion during flow events. As used in For the purposes of this paragraph, "silt" means particles finer than 0.0625 millimeter diameter on a dry weight basis.

5. Measures are implemented to minimize upstream and downstream scour during flood events to protect the integrity of buried pipelines.

6. On completion of quarrying operations in an area, areas denuded of shrubs and woody vegetation are revegetated to the maximum extent practicable.

J. k. For purposes of subsection I j of this section, "ephemeral waters" means waters of the state that have been designated as ephemeral in rules adopted by the department.

K. l. Certification under section 401 of the clean water act is automatically granted for any license or permit required for:

1. Corrective actions taken pursuant to chapter 6, article 1 of this title in response to a release of a regulated substance as defined in section 49-1001 except for those off-site facilities that receive for treatment or disposal materials that are contaminated with a regulated substance and that are received as part of a corrective action.

2. Response or remedial actions undertaken pursuant to chapter 2, article 5 of this title or pursuant to CERCLA.

3. Corrective actions taken pursuant to chapter 5, article 1 of this title or the resource conservation and recovery act of 1976, as amended (42 United States Code sections 6901 through 6992).

4. Other remedial actions that have been reviewed and approved by the appropriate government authority and taken pursuant to applicable federal or state laws.

L. m. The department of environmental quality is designated as the state water pollution control agency for this state for all purposes of CERCLA, except that the department of water resources has joint authority with the department of environmental quality to conduct feasibility studies and remedial investigations relating to groundwater quality and may enter into contracts and cooperative agreements under section 104 of CERCLA for such studies and remedial investigations. The department of environmental quality may take all action necessary or appropriate to secure to this state the benefits of the act, and all such action shall be taken at the direction of the director of environmental quality as his the director's duties are prescribed in this chapter.

M. n. The director and the department of environmental quality may enter into an interagency contract or agreement with the director of water resources under title 11, chapter 7, article 3 to implement the provisions of section 104 of CERCLA and to carry out the purposes of subsection L m of this section. END_STATUTE

Sec. 3. Section 49-250, Arizona Revised Statutes, is amended to read:

START_STATUTE49-250. Exemptions

A. The director may, by rule, exempt specifically described classes or categories of facilities from the aquifer protection permit requirements of this article on a finding either that there is no reasonable probability of degradation of the aquifer or that aquifer water quality will be maintained and protected because the discharges from the facilities are regulated under other federal or state programs that provide the same or greater aquifer water quality protection as provided by this article.

B. The following are exempt from the aquifer protection permit requirement of this article:

1. Household and domestic activities.

2. Household gardening, lawn watering, lawn care, landscape maintenance and related activities.

3. The noncommercial use of consumer products generally available to and used by the public.

4. Ponds used for watering livestock and wildlife.

5. Mining overburden returned to the excavation site including any common material that has been excavated and removed from the excavation site and has not been subjected to any chemical or leaching agent or process of any kind.

6. Facilities used solely for surface transportation or storage of groundwater, surface water for beneficial use or reclaimed water that is regulated pursuant to section 49-203, subsection A, paragraph 6 for beneficial use.

7. Discharge to a community sewer system.

8. Facilities that are required to obtain a permit for the direct reuse of reclaimed water.

9. Leachate resulting from the direct, natural infiltration of precipitation through undisturbed regolith or bedrock if pollutants are not added to the leachate as a result of any material or activity placed or conducted by man on the ground surface.

10. Surface impoundments used solely to contain storm runoff, except for surface impoundments regulated by the federal clean water act.

11. Closed facilities. However, if the facility ever resumes operation, the facility shall obtain an aquifer protection permit and the facility shall be treated as a new facility for purposes of section 49-243.

12. Facilities for the storage of water pursuant to title 45, chapter 3.1 unless reclaimed water is added.

13. Facilities using central Arizona project water for underground storage and recovery projects under title 45, chapter 3.1, article 6.

14. Water storage at a groundwater saving facility that has been permitted under title 45, chapter 3.1.

15. Application of water from any source, including groundwater, surface water or wastewater, to grow agricultural crops or for landscaping purposes, except as provided in section 49-247.

16. Discharges to a facility that is exempt pursuant to paragraph 6 if those discharges are regulated pursuant to 33 United States Code section 1342.

17. Solid waste and special waste facilities when rules addressing aquifer protection are adopted by the director pursuant to section 49-761 or 49-855 and those facilities obtain plan approval pursuant to those rules. This exemption shall only apply if the director determines that aquifer water quality standards will be maintained and protected because the discharges from those facilities are regulated under rules adopted pursuant to section 49-761 or 49-855 that provide aquifer water quality protection that is equal to or greater than aquifer water quality protection provided pursuant to this article.

18. Facilities used in:

(a) Corrective actions taken pursuant to chapter 6, article 1 of this title in response to a release of a regulated substance as defined in section 49-1001 except for those off-site facilities that receive for treatment or disposal materials that are contaminated with a regulated substance and that are received as part of a corrective action.

(b) Response or remedial actions undertaken pursuant to article 5 of this chapter or pursuant to CERCLA.

(c) Corrective actions taken pursuant to chapter 5, article 1 of this title or the resource conservation and recovery act of 1976, as amended (42 United States Code sections 6901 through 6992).

(d) Other remedial actions that have been reviewed and approved by the appropriate governmental authority and taken pursuant to applicable federal or state laws.

19. Municipal solid waste landfills as defined in section 49-701 that have solid waste facility plan approval pursuant to section 49-762.

20. Storage, treatment or disposal of inert material.

21. Structures that are designed and constructed not to discharge and that are built on an impermeable barrier that can be visually inspected for leakage.

22. Pipelines and tanks designed, constructed, operated and regularly maintained so as not to discharge.

23. Surface impoundments and dry wells that are used to contain storm water in combination with discharges from one or more of the following activities or sources:

(a) Firefighting system testing and maintenance.

(b) Potable water sources, including waterline flushings.

(d) Routine external building wash down without detergents.

(e) Pavement wash water where no spills or leaks of toxic or hazardous material have occurred unless all spilled material has first been removed and no detergents have been used.

(f) Air conditioning, compressor and steam equipment condensate that has not contacted a hazardous or toxic material.

(g) Foundation or footing drains in which flows are not contaminated with process materials.

(h) Occupational safety and health administration or mining safety and health administration safety equipment.

24. Industrial wastewater treatment facilities designed, constructed and operated as required by section 49-243, subsection B, paragraph 1 and using a treatment system approved by the director to treat wastewater to meet aquifer water quality standards prior to discharge, if that water is stored at a groundwater storage facility pursuant to title 45, chapter 3.1.

25. Any point source discharge caused by a storm event and authorized in a permit issued pursuant to section 402 of the clean water act.

26. Except for class V wells, any underground injection well covered by a permit issued under article 3.3 of this chapter or under 42 United State states Code section 300h-1(c). This exemption does not apply until the date that the United States environmental protection agency approves the department's underground injection control permit program established pursuant to article 3.3 of this chapter. END_STATUTE

Sec. 4. Section 49-289.01, Arizona Revised Statutes, is amended to read:

START_STATUTE49-289.01. Site boundary adjustment petitions

A. A person who owns property within a site may petition the director to adjust the boundaries to exclude the person's property from the site boundaries. The geographic area covered by the boundary adjustment petition shall be described by legal description.

B. The director shall review the petition based on the results of the remedial investigation. If the director determines that the property is either entirely or partially within the area of contamination or is predicted to be either entirely or partially within the area of contamination within two years, the director shall deny the petition to adjust the boundaries of the site. If the director determines based upon on the results of the remedial investigation that the property is not within the area of contamination and is not predicted to be within the area of contamination within two years, the director shall grant the petition to adjust the boundaries of the site.

C. The director shall adopt rules to implement this section.END_STATUTE

Sec. 5. Section 49-289.03, Arizona Revised Statutes, is amended to read:

START_STATUTE49-289.03. Community involvement plan; community advisory boards; rules

A. The public shall receive notice and be provided an opportunity to comment to the director regarding the following actions taken by the director:

1. The placement of a site on the registry as provided in section 49-287.01.

2. The selection of a remedy as provided in section 49-287.04.

3. Entering into a prospective purchaser agreement with a person pursuant to section 49-285.01.

4. Entering into a settlement with a responsible party pursuant to section 49-292, 49-292.01 or 49-292.02.

B. The director shall adopt rules to implement this section and to govern the provision of providing information to communities and community involvement areas that include how to disseminate information, the location of public information repositories and notice requirements.

C. Before it implements a remedial investigation as provided in section 49-287.03, subsection D the department shall develop a community involvement plan for each site that does all of the following:

1. Establishes a community advisory board.

2. Designates a spokesperson to inform the public and to act as a liaison between the department, the local government and the responsible party.

3. Provides for newsletters with current information about the status of remedial action at the site and other pertinent information to be distributed to residents within the site.

4. Schedules community advisory board meetings and participates in the scheduling of public meetings pursuant to section 49-287.01, subsection E.

D. A selection committee shall be established for each site that is required to have a community involvement plan pursuant to section 49-287.03, subsection D. The selection committee shall consist of the following members:

1. One representative of the department.

2. One representative of a potentially responsible party, an owner or operator of a facility within the site or an affected business or industry.

3. One local elected official.

4. Two community members who are not employees of any responsible party, the department or the local government.

E. Each community advisory board shall advise the department, the public and the responsible parties of issues, concerns and opportunities related to the expeditious cleanup of the site. Each community advisory board shall be composed of at least five but not more than twenty members. The members of the community advisory board shall be chosen to represent a diversified cross section of the community with an appropriate balance of interested parties and affected groups. Applications for membership on the community advisory board and the names of the applicants shall be publicly available. Community advisory board members may serve on more than one community advisory board and multiple sites may share a community advisory board to avoid unnecessary multiple boards.

F. Each community advisory board shall:

1. Within ninety days after appointment of members by the selection committee, elect cochairpersons and other officers if needed and shall develop a charter defining at a minimum operating procedures, membership terms and obligations, goals for developing issues, concerns and opportunities related to expeditious cleanup of the site, and any other anticipated activities of the board for identifying and improving the public's access and understanding of information regarding the remediation processes at the site.

2. Meet at least four times each year In response to site activities or a request from a community advisory board member or a city, TOWN or county in which the site is located, meet with the department and any identified responsible parties to receive site briefings, progress reports and other pertinent information.

3. Coordinate with the department to establish local repositories for the dissemination of information about the site.

G. Each community advisory board may:

1. Make site visits and participate in public meetings related to cleanup opportunities and remedy selection decisions.

2. Participate in an annual meeting held by the department in each county that has a site undergoing a remedial investigation and feasibility study under section 49-287.03 or in the process of selecting or implementing a remedy for the purpose of facilitating public involvement and identifying funding priorities for site cleanups. END_STATUTE

Sec. 6. Section 49-405, Arizona Revised Statutes, is amended to read:

START_STATUTE49-405. Attainment area designations

A. The governor may designate the status and classification of areas of this state with respect to attainment of national ambient air quality standards.

B. The director shall adopt rules that both:

1. describe the geographic extent of attainment, nonattainment or unclassifiable areas of this state for all pollutants for which a national ambient air quality standard exists.

2. Establish procedures and criteria for changing the designations of areas that include all of the following:

(a) Technical bases for proposed changes, including ambient air quality data, types and distributions of sources of air pollution, population density and projected population growth, transportation system characteristics, traffic congestion, projected industrial and commercial development, meteorology, pollution transport and political boundaries.

(b) Provisions for review of and public comment on proposed changes to area designations.

C. On promulgation by the administrator of new or revised national ambient air quality standards for pollutants, the department shall develop proposed recommendations regarding designations for geographic areas of this state as being in attainment or nonattainment or unclassifiable with respect to that standard. The proposed recommendations shall be provided to the governor to assist the governor in submitting recommendations to the administrator pursuant to 42 United States Code section 7407(d)(1)(A). The department shall develop the proposed recommendations as follows:

1. No Not earlier than five months before the date by which the governor must make the recommendations and no not later than four months before that date, the department shall complete a draft of the proposed recommendations and a technical support document that explains the scientific and other bases for the draft proposal.

2. No NOt earlier than five months before the date by which the governor must make the recommendations and no not later than four months before that date, the department shall post the draft proposed recommendations and technical support document on the department's website. The department shall provide actual notice of the posting to counties and municipalities that would be included in a nonattainment area under the proposed recommendations and to any person who had previously requested actual notice of the draft documents. Actual notice of the posting may be provided by electronic or other means.

3. The website posting and actual notices prescribed in paragraph 2 of this subsection shall include notice that until the close of the comment period, any person may submit written comments to the department regarding the draft proposed recommendations and technical support document. The notice shall also include the date, time and location of a public hearing for the department to receive verbal comments and answer questions concerning the draft proposal. The written comment period shall close and the hearing shall be held no not later than forty-six days before the date by which the governor must make the recommendations.

4. After the close of the comment period and after the public hearing and not later than one month before the date by which the governor must make the recommendations, the department shall finalize the proposed recommendations and technical support document and submit them to the governor. The department's final proposed recommendations and technical support document shall:

(a) Consider the comments received by the department pursuant to paragraph 3 of this subsection. For any area that is proposed to be designated a nonattainment area in the final proposed recommendations, the department shall with the submittal to the governor include a responsiveness summary that explains with reasonable particularity the department's consideration of and responses to comments received pursuant to paragraph 3 of this subsection.

(b) Be posted on the department's website within five days after the department's submittal to the governor. The posting shall include any responsiveness summary, and the department shall provide actual notice of the posting to counties and municipalities that would be included in a nonattainment area under the final proposed recommendations and to any person who had previously requested actual notice of the documents. Actual notice of the posting may be provided by electronic or other means.

D. The department shall post on its website a copy of the governor's recommendations within five days after the recommendations are submitted to the administrator.

E. If the administrator requires the governor's recommendations to be submitted six months after promulgation of the new or revised national ambient air quality standards or earlier, the time frames prescribed in subsections C and D shall be reduced by one-half. END_STATUTE

Sec. 7. Section 49-425, Arizona Revised Statutes, is amended to read:

START_STATUTE49-425. Rules; hearing

A. The director shall adopt such rules as he the director determines are necessary and feasible to reduce the release into the atmosphere of air contaminants originating within the territorial limits of the state or any portion thereof and shall adopt, modify, and amend reasonable standards for the quality of, and emissions into, the ambient air of the state for the prevention, control and abatement of air pollution. Additional standards shall be established for particulate matter emissions, sulfur dioxide emissions, and other air contaminant emissions determined to be necessary and feasible for the prevention, control and abatement of air pollution. In fixing such ambient air quality standards, emission standards or standards of performance, the director shall give consideration but shall not be limited to the relevant factors prescribed by the clean air act.

B. No rule may be enacted or amended except after the director first holds a public hearing after twenty thirty days' notice of such hearing. The proposed rule, or any proposed amendment of a rule, shall be made available to the public at the time of notice of such hearing.

C. The department shall enforce the rules adopted by the director.

D. All rules enacted pursuant to this section shall be made available to the public at a reasonable charge upon on request. END_STATUTE

Sec. 8. Section 49-426.06, Arizona Revised Statutes, is amended to read:

START_STATUTE49-426.06. State program for control of hazardous air pollutants

A. After publication of the report prescribed by section 49-426.08, subsection B, The director shall by rule establish a state program for the control of hazardous air pollutants that meets the requirements of this section. The program established pursuant to this section shall apply to the following sources:

1. Sources that emit or have the potential to emit with controls ten tons per year or more of any hazardous air pollutant or twenty-five tons per year or more of any combination of hazardous air pollutants.

2. Sources that are within a category designated pursuant to section 49-426.05 and that emit or have the potential to emit with controls one ton per year or more of any hazardous air pollutant or two and one-half tons per year of any combination of hazardous air pollutants.

B. After rules adopted pursuant to subsection A of this section become effective pursuant to section 41-1032, a person shall not commence the construction or modification of a source that is subject to this section without first obtaining a permit or permit revision that complies with section 49-426 and subsection C or D of this section. For purposes of determining whether a change constitutes a modification, the director shall by rule establish appropriate de minimis amounts for hazardous air pollutants that are not federally listed hazardous air pollutants. In establishing de minimis amounts, the director shall consider any relevant guidelines or criteria promulgated by the administrator. A physical change to a source or change in the method of operation of a source is not a modification subject to this section if the change satisfies any of the following conditions:

1. The change complies with section 112(g)(1) of the clean air act.

2. The change, together with any other changes implemented or planned by the source, qualifies the source for an alternative emission limitation pursuant to section 112(i)(5) of the clean air act.

3. The change is required under a standard imposed pursuant to section 112(d) or 112(f) of the clean air act and the change is implemented after the administrator promulgates the standard.

C. A permit or permit revision issued to a new or modified source that is subject to the state hazardous air pollutant program under subsection A, paragraph 1 of this section shall impose the maximum achievable control technology for the new source or modification, unless the applicant demonstrates pursuant to subsection D of this section that the imposition of maximum achievable control technology is not necessary to avoid adverse effects to human health or adverse environmental effects. A permit or permit revision issued to a new or modified source that is subject to the state hazardous air pollutant program under subsection A, paragraph 2 of this section shall impose hazardous air pollutant reasonably available control technology for the new source or modification, unless the applicant demonstrates pursuant to subsection D of this section that the imposition of hazardous air pollutant reasonably available control technology is not necessary to avoid adverse effects to human health or adverse environmental effects. When a reliable method of measuring emissions of a hazardous air pollutant subject to this section is not available, the director shall not require compliance with a numeric emission limit for the pollutant but shall instead require compliance with a design, equipment, work practice or operational standard, or a combination thereof. Standards imposed pursuant to this subsection shall apply only to hazardous air pollutants emitted in amounts exceeding the de minimis amounts established by the administrator or by the director pursuant to subsection B of this section. The director shall not impose a standard under this subsection that would require the application of measures that are incompatible with measures required under a standard imposed pursuant to section 49-426.03, subsection B.

D. If the owner or operator of a new source or modification subject to this section establishes that the imposition of maximum achievable control technology or hazardous air pollutant reasonably available control technology is not necessary to avoid adverse effects to human health or adverse environmental effects by conducting a scientifically sound risk management analysis and submitting the results to the director with the permit application for the new source or modification, the director shall exempt the source from the imposition of such technology. The risk management analysis may take into account the following factors:

1. The estimated actual exposure of persons living in the airshed of the source.

2. Available epidemiological or other health studies.

3. Risks presented by background concentrations of hazardous air pollutants.

4. Uncertainties in risk assessment methodology or other health assessment techniques.

5. Health or environmental consequences from efforts to reduce the risk.

6. The technological and commercial availability of control methods beyond those otherwise required for the source and the cost of such methods.

E. Where maximum achievable control technology or hazardous air pollutant reasonably available control technology has been established in a general permit for a defined class of sources pursuant to subsection C of this section and section 49-426, subsection H, the owner or operator of a source within that class may obtain a variance from the standard by complying with subsection D of this section at the time the source applies to be permitted under the general permit. If the owner or operator makes the demonstration required by subsection D of this section and otherwise qualifies for the general permit, the director shall, in accordance with the procedures established pursuant to section 49-426, approve the application and issue a permit granting a variance from the specific provisions of the general permit relating to the standard. Except as otherwise modified by the variance, the general permit shall govern the source.

F. If the clean air act has established provisions, including specific schedules, for the regulation of source categories pursuant to section 112(e)(5) and 112(n) of the clean air act, those provisions and schedules shall apply to the regulation of those source categories under subsection B of this section.

G. For any category or subcategory of facilities licensed by the nuclear regulatory commission, the director shall not adopt or enforce any standard or limitation respecting emissions of radionuclides which that is more stringent than the standard or limitation adopted by the administrator pursuant to section 112 of the clean air act.

H. For purposes of subsection A of this section, in determining potential to emit, the director shall consider controls that are enforceable under any federal law or regulation, state or local law or rule or that are inherent in the design of the source.

I. In determining whether emissions from a source or modification exceed the thresholds prescribed by subsection A or B of this section, the director shall exclude particulate matter emissions that consist of natural crustal material and are produced either by natural forces, such as wind or erosion, or by anthropogenic activities, such as agricultural operations, excavation, blasting, drilling, handling, storage, earth moving, crushing, grinding or traffic over paved or unpaved roads, or other similar activities. Nothing in This subsection shall does not preclude the regulation of emissions of crustal materials as particulate matter pursuant to other sections of this chapter. END_STATUTE

Sec. 9. Repeal

Section 49-426.08, Arizona Revised Statutes, is repealed.

Sec. 10. Section 49-459, Arizona Revised Statutes, is amended to read:

START_STATUTE49-459. State plan; carbon emissions from power plants

A. The director, in consultation with the corporation commission, and the governing bodies of affected public power entities as defined in section 30-801, electric utilities regulated by the corporation commission and independently owned electric generating generation units shall develop, adopt and enforce a state plan to regulate the emissions of carbon dioxide from existing electric generation units in compliance with rules adopted by the administrator under section 111(d) of the clean air act.

B. On or before the last day of each calendar quarter after July 3, 2015 and until submission of a complete state plan pursuant to subsection F of this section, the director shall transmit a report on actions as prescribed in subsection A of this section to the joint legislative review committee on state plans relating to carbon dioxide emissions from existing power plants.

C. B. The director may participate in one or more full or partial multijurisdictional plans or agreements, including plans or agreements with Indian tribes, for the purposes of complying with this section.

D. Not less than ninety days before submitting a complete state plan adopted pursuant to subsection A of this section to the administrator, the director shall transmit the proposed state plan to the joint legislative review committee on state plans relating to carbon dioxide emissions from existing power plants for review pursuant to section 41-1291.01. The committee may review the proposed state plan concurrently with any public review required for the plan.

E. The director may not transmit a state plan to the joint legislative review committee on state plans relating to carbon dioxide emissions from existing power plants until the administrator adopts rules under section 111(d) of the clean air act.

F. After review and comment by the joint legislative review committee or if the committee fails to act in a timely manner pursuant to section 41-1291.01, the director may submit a state plan to the administrator for approval.

G. C. The director may adopt rules to implement subsection A of this section. Any rulemaking conducted pursuant to this section is exempt from the requirement under sections 41-1024 and 41-1052 to submit the rule to the governor's regulatory review council for approval. Before filing a final rule with the secretary of state, the director shall provide the joint legislative review committee on state plans relating to carbon dioxide emissions from existing power plants notice of any rules proposed pursuant to this section at the same time that a notice of proposed rulemaking is submitted to the secretary of state for publication in the administrative register.

H. D. Submission of a state plan does not impair the ability of any affected state entity to challenge the lawfulness of the federal regulation of carbon dioxide emissions from existing electric generating generation units and does not constitute a waiver of any claims. END_STATUTE

Sec. 11. Repeal

Sections 49-542.06 and 49-542.07, Arizona Revised Statutes, are repealed.

Sec. 12. Section 49-545, Arizona Revised Statutes, is amended to read:

START_STATUTE49-545. Agreement with independent contractor; qualifications of contractor; agreement provisions

A. The director is authorized to enter into an emissions inspection agreement with one or more independent contractors, subject to public bidding, to provide for the construction, equipment, establishment, maintenance and operation of any official emissions inspection stations in such numbers and locations as may be required to provide vehicle owners reasonably convenient access to inspection facilities for the purpose of obtaining compliance with this article and the rules adopted pursuant to this article. The agreement may provide that official inspection stations shall be placed in permanent or movable buildings at particular locations as well as in mobile units for conveyance from one preannounced particular location to another.

B. The director is prohibited from entering into an emissions inspection agreement with any independent contractor who:

1. Is engaged in the business of manufacturing, selling, maintaining or repairing vehicles, except that the independent contractor shall not be precluded from maintaining or repairing any vehicle owned or operated by the independent contractor.

2. Does not have the capability, resources or technical and management skill to adequately construct, equip, operate and maintain a sufficient number of official emissions inspection stations to meet the demand for inspection of every vehicle that is required to be submitted for inspection pursuant to this article.

C. All persons employed by the independent contractor in the performance of an emissions inspection agreement are deemed to be employees of the independent contractor and not of this state. An employee of the independent contractor may not wear any badge, insignia, patch, emblem, device, word or series of words that would tend to indicate that such person is employed by this state. Employees of the independent contractor are specifically prohibited under this subsection from wearing the flag of this state, the words "state of Arizona", the words "official emissions inspection program" or any similar emblem or phrase.

D. The emissions inspection agreement authorized by this section shall contain, in addition to any other provisions, provisions relating to the following:

1. A contract term or duration of up to seven years with reasonable compensation to the contractor if the provisions of this article are repealed.

2. That nothing in the agreement or contract shall require the state to purchase any asset or assume any liability if such agreement or contract is not renewed.

3. The minimum requirements for adequate staff, equipment, management and hours and place of operation of official emissions inspection stations.

4. The submission of such reports and documentation concerning the operation of official emissions inspection stations as the director and the auditor general may require.

5. Surveillance by the department of environmental quality and the auditor general to ensure compliance with vehicular emissions standards, procedures, rules and laws.

6. The right of this state, on providing reasonable notice to the independent contractor, to terminate the contract with the independent contractor and the right of this state on termination of the contract to assume operation of the vehicle emissions inspection program through another contract provider or otherwise.

7. The right of this state on termination of the term of the agreement or on assumption of the operation of the program to have transferred and assigned to it for reasonable compensation any interest in land, buildings, improvements, equipment, parts, tools and services used by the independent contractors in their operation of the program.

8. The right of this state on termination of the term of the agreement or assumption of the operation of the program to have transferred and assigned to it any contract rights, and related obligations, for land, buildings, improvements, equipment, parts, tools and services used by the independent contractors in their operation of the program.

9. The obligation of the independent contractors to provide in any agreement to be executed by them, and to maintain in any agreements previously executed by them, for land, buildings, improvements, equipment, parts, tools and services used in their operation of the program for the right of the independent contractors to assign to this state any of their rights and obligations under such contract.

10. The right of the independent contractor, in the event if the contract is terminated and the state elects to assume operation of the vehicle emissions inspection program through another contractor or otherwise, to retain and not transfer to the state any interest in or any contract rights and related obligations for improvements, equipment, parts, tools and services that are used by the independent contractor in the operation of the program and that are proprietary in nature, as may be more specifically set forth in the contract.

11. The amounts of liquidated damages payable by this state to the independent contractor if the state exercises its right to terminate the contract at the conclusion of each year of the contract pursuant to paragraph 6 of this subsection. The damages recoverable by the independent contractor if the state exercises its right to terminate the contract are limited to the liquidated damages specified in the contract.

12. Any other provision deemed necessary by the director for the administration or enforcement of the emissions inspection agreement.

E. The department shall establish bid specifications or contract terms for a contract with an independent contractor as provided in this section, review bids for an award of a contract with the independent contractors and negotiate any terms of a contract with the independent contractors.

F. In evaluating bids for an emissions inspection agreement, additional consideration may not be given to a bid solely on the basis of the type of conditioning mode proposed in the bid.

G. After a contract is awarded to an independent contractor, the director may modify the contract with the independent contractor to allow the contractor and the state to comply with amendments to applicable statutes or rules. These modifications are exempt from public bidding and may include the addition, deletion or alteration of any contract provision in order to make compliance feasible, including inspection fees and services rendered. Provisions relating to contract term or duration may be amended. Any proposed modification or amendment to the contract is subject to prior review by the joint legislative budget committee. If the director cannot negotiate an acceptable modification of the contract, the state may terminate the contract.END_STATUTE

Sec. 13. Section 49-724, Arizona Revised Statutes, is amended to read:

START_STATUTE49-724. Distribution of appropriated funds to local governments

The department shall may develop criteria in consultation with local governments for the distribution of funds appropriated to county, city or town management agencies or their designated representatives, if funds have been appropriated for this purpose. END_STATUTE

Sec. 14. Section 49-831, Arizona Revised Statutes, is amended to read:

START_STATUTE49-831. Definitions

In this article, unless the context otherwise requires:

1. "Agency" means this state or a state agency, county, municipality or political subdivision.

2. "Collection" means the act of picking up post-consumer secondary materials from homes, businesses, governmental agencies, institutions or industrial sites.

3. "Consumer" means a person who purchases a product for use, consumption or any purpose other than resale.

4. "Consumer of newsprint" means a person who uses newsprint in a commercial printing operation or in a commercial publishing operation.

5. "Disposition" means the transportation, placement, reuse, sale, donation, transfer or temporary storage for a period of not more than six months of designated recyclable materials for all possible uses, except for disposal as solid waste.

6. 4. "Municipal or county solid waste" means any garbage, trash, rubbish, refuse, sludge from a waste treatment plant, water supply treatment plant or pollution control facility and other discarded material, including solid, liquid, semisolid or contained gaseous material but not including domestic sewage or hazardous waste.

7. 5. "Municipality" means an incorporated city or town with a population of more than five thousand persons.

8. 6. "Natural resources" means the supply of materials, not made by man, that are used for making goods.

9. "Newsprint" means uncoated paper, whether supercalendered or machine finished, including the type generally used for the publication of newspapers, commercial advertising inserts, directories or commercial advertising mailers, which is made primarily from mechanical wood pulps combined with some chemical wood pulp. Newsprint includes paper made from old newspapers which have been deinked, using the recycled pulp in lieu of virgin pulp. Newsprint includes all grades of paper sold as newsprint, supercalendered (SC) uncoated groundwood or machine finished (MF) uncoated groundwood.

10. 7. "Paper" means newspaper, high grade office paper, fine paper, bond paper, offset paper, xerographic paper, duplicator paper and related types of cellulosic material containing not more than ten per cent percent by weight or volume of noncellulosic material such as laminates, binders, coatings or saturants.

11. "Paper product" means paper items or commodities, including paper napkins, towels, corrugated paper and related types of cellulosic products containing not more than ten per cent by weight or volume of noncellulosic material such as laminates, binders, coatings or saturants.

12. 8. "Plastic container" means a container which that is hermetically sealed or made airtight with a metal or plastic cap with a minimum wall thickness of not less than 0.010 inches and which that is composed of thermoplastic synthetic polymeric materials.

13. 9. "Plastics" means a specific polymer or mix of polymers in combination with various amounts of plasticizers, stabilizers, colorants, fillers and other organic and inorganic compounds.

14. 10. "Post-consumer material":

(a) Means a discard generated by a business or residence that has fulfilled its useful life. Post-consumer material does include

(b) Includes discards from industrial or manufacturing processes.

15. 11. "Process" or "processing" means the reduction, separation, recovery, conversion or recycling of solid waste.

16. 12. "Recyclable material" means post-consumer materials which that may be collected, separated, cleansed, treated or reconstituted and returned to the economic stream in the form of raw materials or products.

17. 13. "Recycled" means a process by which post-consumer materials are collected, separated, cleansed, treated or reconstituted and returned to the economic stream in the form of raw materials or products.

18. "Recycled-content newsprint" means newsprint which contains post-consumer wastepaper.

19. 14. "Recycled materials" means those materials which that have been separated from the municipal or county solid waste stream, processed and returned to the economic stream in the form of raw materials or products.

20. "Recycled paper" means paper products which have been manufactured from materials otherwise destined for the waste stream.

21. 15. "Recycling" means the process of collecting, separating, cleansing, treating and reconstituting post-consumer materials that would otherwise become solid waste and returning them to the economic stream in the form of raw material for reconstituted products which that meet the quality standards necessary to be used in the marketplace, but does not include incineration or other similar processes.

22. "Recycling equipment" means any machinery or apparatus used exclusively to recycle post-consumer waste material or manufacturing machinery used exclusively to produce finished products composed substantially of post-consumer waste materials.

23. 16. "Recycling program" means the program prepared and adopted by this state and approved by the department to implement the recycling program goals of this state or a program prepared and adopted by a county or municipality of this state.

24. 17. "Reuse" means the return of a commodity into the economic stream for use in the same kind of application as before without change in its identity.

25. 18. "Source reduction" means any action which that causes a net reduction in the generation of solid waste and includes reducing the use of nonrecyclable materials, replacing disposable materials and products with reusable materials and products, reducing packaging, reducing the amount of yard waste generated, establishing garbage rate structures with incentives to reduce the amount of wastes that generators produce and increasing the efficiency of the use of paper, cardboard, glass, metal, plastic and other materials in the manufacturing process. Source reduction does not include the following:

(a) Steps taken after the material becomes solid waste or actions which that would impact air or water resources in lieu of land, such as incineration or pyrolysis or burning for energy recovery.

(b) Replacing disposable material or products with alternative disposable materials or products.

26. 19. "Storage" means the containment or holding of materials, either on a temporary or long-term basis, in such a manner as not to constitute disposal of such materials.

27. 20. "Used oil" means any oil which that has been refined from crude or synthetic oil and, as a result of use, storage or handling, which that has become unsuitable for its original purpose due to the presence of impurities or loss of original properties but which that may be suitable for further use and may be economically recyclable.

28. 21. "Waste generator" means a person, business, government agency or other organization that produces solid waste.

29. 22. "Waste stream" means the solid waste material output of a community, region or facility.

30. 23. "Waste tire" means a tire that is no longer suitable for its original intended purpose because of wear, damage or defect.

31. 24. "Wastepaper" means recyclable paper and paperboard, including high grade office paper, computer paper, fine paper, bond paper, offset paper, xerographic paper, duplicator paper and corrugated paper.END_STATUTE

Sec. 15. Repeal

Section 49-834, Arizona Revised Statutes, is repealed.

Sec. 16. Heading change

The article heading of title 49, chapter 5, article 1, Arizona Revised Statutes, is changed from "HAZARDOUS WASTE DISPOSAL AT STATE SITES" to "GENERAL PROVISIONS".

Sec. 17. Repeal

Sections 49-902, 49-903, 49-904 and 49-905, Arizona Revised Statutes, are repealed.

Sec. 18. Section 49-923, Arizona Revised Statutes, is amended to read:

START_STATUTE49-923. Compliance orders; civil penalties; injunctive relief

A. If the director has reasonable cause to believe that a person is violating this article or article 1 of this chapter or a permit or rule issued or adopted pursuant to this article or article 1 of this chapter, the director may serve upon on the person an order requiring compliance with such provision, permit or rule. The order shall state with reasonable particularity the nature of the violation and shall specify either immediate compliance or a time period for compliance which that the director determines is reasonable, taking into account the seriousness of the violation and any good faith efforts to comply with applicable legal requirements. The alleged violator may request a hearing pursuant to title 41, chapter 6, article 10.

B. If a violator fails to take corrective action within the time specified in a compliance order issued pursuant to subsection A of this section, the director may issue an order assessing a civil penalty of not more than one thousand dollars $1,000 for each day of continued noncompliance with the order. The alleged violator may request a hearing pursuant to title 41, chapter 6, article 10. An attorney or corporate officer or employee of a corporation may represent the corporation at that hearing.

C. Before issuing an order assessing a civil penalty pursuant to subsection B of this section, the director shall give reasonable notice of his the director's intent to issue the order and the circumstances of the case to the attorney general.

D. If the director has reasonable cause to believe that an order issued pursuant to this section is being violated or that a person is engaging in an act or practice which that constitutes a violation for which he the director is authorized to issue an order pursuant to this section, the director or the attorney general may apply to the superior court in the county in which the violation is occurring for a temporary restraining order, preliminary injunction or permanent injunction. Such action has precedence over all other matters pending in the court.

E. All civil penalties assessed pursuant to this section shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. END_STATUTE

Sec. 19. Section 49-929, Arizona Revised Statutes, is amended to read:

START_STATUTE49-929. Annual registration of hazardous waste treatment, storage and disposal facilities, transporters and generators; fee; disposition of revenue

A. All hazardous waste treatment, storage and disposal facilities, hazardous waste transporters and hazardous waste generators, except hazardous waste resource recovery facilities as defined in section 49-930, shall register annually with the department at the time and in the manner prescribed by the director. The registration is valid for one year from the date of registration.

B. The application for registration shall be accompanied by a registration fee based on the following:

1. Hazardous waste treatment, storage and disposal facilities, one thousand five hundred dollars $1,500 plus two dollars $2 per ton of hazardous waste received for treatment, storage for more than ten days or disposal during the preceding calendar year, except that a hazardous waste disposal facility established under article 1 of this chapter, shall be subject to any fees assessed pursuant to section 49-904, and shall not be subject to the two dollar per ton component of the fee imposed by this section.

2. Hazardous waste transporters, two hundred dollars $200.

3. Large quantity hazardous waste generators which that generate one thousand kilograms per month or more, three hundred dollars $300.

4. Small quantity hazardous waste generators which that generate between one hundred and one thousand kilograms per month, one hundred dollars $100.

C. All monies collected under this section shall be deposited in the water quality assurance revolving fund established by section 49-282. The director may authorize expenditures from the fund, pursuant to section 49-282, subsection E, to pay the reasonable and necessary costs of administering the registration program. END_STATUTE

Sec. 20. Section 49-964, Arizona Revised Statutes, is amended to read:

START_STATUTE49-964. Review of reports and plans; enforcement; contempt

A. The department shall review the submissions required under this article, including the plan and any amendments and reports, to determine if the submission is complete and correct as prescribed in sections 49-962 and 49-963.

B. If a facility required to submit a plan or report under this article files an inadequate submission, the department shall notify the facility in writing of the inadequacy, identifying the specific deficiencies. In reviewing the adequacy of a plan or report, or any amendment to a plan or report, the department shall base its determination on whether the plan, report or amendment is complete and correct in accordance with the requirements of this article. If the submission is inadequate, the department shall specify a reasonable time of at least ninety days within which the facility shall file a modified submission addressing the specified deficiencies.

C. If, after the specified time, the facility has not filed a modified submission or the modified submission is otherwise inadequate, the department may enter a formal notice of inadequacy. The department shall place a copy or abstract of the notice of inadequacy in the department's annual report.

D. If a formal notice of inadequacy is entered, the department, pursuant to title 41, chapter 6, article 10, may hold a public hearing after providing written notice to the facility. The department may issue an administrative order requiring the facility to correct the deficiencies. If the facility fails to comply with an administrative order, the department may enforce that order in a judicial proceeding including an action for contempt.

E. In reviewing for adequacy an amendment or annual progress report, the department's review is restricted to the scope of the current submission. Previous amendments to the plan and annual progress reports that were found to be adequate are not subject to review.

F. If a facility required under this article to submit a plan or annual progress report fails to submit the plan or report, the department shall order that facility to submit an adequate plan or report within a reasonable time period of at least ninety days. If the facility fails to develop an adequate plan or progress report in response to that order within the time period specified in that order, the department may do any of the following:

1. Under procedures established by rule, provide for inspecting the facility, gathering necessary information and preparing a plan or progress report for the facility at the facility's expense.

2. Pursuant to title 41, chapter 6, article 10, enter an administrative order for compliance that is enforceable in a judicial proceeding including an action for contempt.

G. The attorney general, at the request of the director, may bring an action in superior court to recover the department's costs incurred under subsection F of this section. The facility owner or operator may appeal the department's determination to proceed under this subsection and subsection F of this section pursuant to title 41, chapter 6, article 10 before the department prepares the plan or progress report. Except as provided in section 41-1092.08, subsection H, any final agency order issued pursuant to this section is subject to judicial review pursuant to title 12, chapter 7, article 6.

H. Failure to implement the pollution prevention plan is a violation of this article and the attorney general, at the request of the director, may bring an action in superior court to compel implementation of the provisions of an approved plan, and the director pursuant to title 41, chapter 6, article 10 may enter an administrative order for compliance that is enforceable in a judicial proceeding including an action for contempt.

I. Reports and submissions made to the department pursuant to this article shall be deemed adequate for purposes of this article unless the department notifies the facility in writing of any deficiencies within ninety days of after receipt of the submission. END_STATUTE