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HB2428 - 572R - S Ver
Senate Engrossed
House Bill
emissions; reduction
credits; counties
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2428
AN
ACT
amending sections 49-402, 49-426
and 49-480, Arizona Revised Statutes; RELATING to air quality.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 49-402, Arizona Revised
Statutes, is amended to read:
START_STATUTE
49-402.
State and county control
A.
except as provided in subsection G
of this section,
the department shall have original jurisdiction over
such sources, permits and violations that pertain to:
1. Major sources in any county that has not received
approval from the administrator for new source review under the clean air act
and prevention of significant deterioration under the clean air act.
2. Smelting of metal ore.
3. Petroleum refineries.
4. Coal fired electrical generating stations.
5. Portland cement plants.
6. Air pollution by portable sources.
7. Air pollution by mobile sources for the purpose
of regulating those sources as prescribed by article 5 of this chapter and
consistent with the clean air act.
8. Sources that are subject to title V of the clean
air act and that are located in a county for which the administrator has
disapproved that county's title V permit program if the department has a title
V program that has been approved by the administrator.� On approval of that
county's title V permit program by the administrator, the county shall resume
jurisdiction over those sources.
B. Except as specified in subsection A of this
section, the review, issuance, administration and enforcement of permits issued
pursuant to this chapter shall be by the county or multi-county air
quality control region pursuant to the provisions of article 3 of this
chapter. After the director has provided prior written notice to the
control officer describing the reason for asserting jurisdiction and has
provided an opportunity to confer, the county or multi-county air quality
control region shall relinquish jurisdiction, control and enforcement over such
permits as the director designates and at such times as the director asserts
jurisdiction at the state level.� The order of the director
which
that
asserts state jurisdiction shall specify the matters,
geographical area, or sources over which the department shall exercise
jurisdiction and control. Such state authority shall then be the
sole and exclusive jurisdiction and control to the extent asserted, and
the provisions of
this chapter shall govern, except as provided
in this chapter, until jurisdiction is surrendered by the department to such
county or region.
C. Portable sources under jurisdiction of the
department under subsection A, paragraph 6 of this section may be required to
file notice with the director and the control officer who has jurisdiction over
the geographic area that includes the new location before beginning operations
at that new location.
D. Notwithstanding any other law, a permit issued to
a
state regulated
state-regulated
source shall include the emission standard or standard of performance adopted
pursuant to section 49-479, if such standards are more stringent than
those adopted by the director and if such standards are specifically identified
as applicable to the permitted source or a component of the permitted source.�
Such standards shall be applied to sources identified in subsection A,
paragraph 2, 3, 4 or 5 of this section only if the standard is formally
proposed for adoption as part of the state implementation plan.
E. The regional planning agency for each county
which
that
contains a vehicle emissions
control area shall develop plan revisions containing
transportation
related
TRANSPORTATION-related
air quality
control measures designed to attain and maintain primary and secondary ambient
air quality standards as prescribed by and within the time frames specified in
the clean air act. In developing the plan revisions, the regional
planning agency shall consider all of the following:
1. Mandatory employee parking fees.
2. Park and ride programs.
3. Removal of on-street parking.
4. Ride share programs.
5. Mass transit alternatives.
6. Expansion of public transportation systems.
7. Optimizing freeway ramp metering.
8. Coordinating traffic signal systems.
9. Reduction of traffic congestion at major
intersections.
10.
Site specific
site-specific
transportation control measures.
11. Reversible lanes.
12. Fixed lanes for buses and carpools.
13. Encouragement of pedestrian travel.
14. Encouragement of bicycle travel.
15. Development of bicycle travel facilities.
16. Employer incentives regarding ride share
programs.
17. Modification of work schedules.
18. Strategies for controlling the generation of air
pollution by nonresidents of nonattainment or maintenance areas.
19. Use of alternative fuels.
20. Use of emission control devices on public diesel
powered vehicles.
21. Paving of roads.
22. Restricting off-road vehicle travel.
23. Construction site air pollution control.
24. Other air quality control measures.
F. Each regional
planning agency shall consult with the department of transportation to
coordinate the plans developed pursuant to subsection E of this section with
transportation plans developed by the department of transportation pursuant to
any other law.
g.
After
RECEIVING a voluntary request from an applicant, A county may
claim concurrent jurisdiction over both of the following
for the sole purpose of issuing, revising or enforcing a permit to
certify emission reduction credits pursuant to section 49-410:
1.
Components
of a portable source within the county's jurisdiction.
2. mobile sources
WITHIN the county's jurisdiction.
h. Notwithstanding any other law, an
applicant's election to PARTICIPATE in any program that results in the
certification of emission reduction credits PURSUANT to SUBSECTION G of this
section is VOLUNTARY. if, after the effective date of this amendment to this
section, PARTICIPATION of an on-road vehicle fleet in the EMISSION
reduction credit program becomes MANDATORY PURSUANT to an act of the
legislature, administrative rule or state implementation plan commitments, a
control officer may not certify any new SURPLUS emission REDUCTION credits as
PROVIDED in subsection g, PARAGRAPH 2 of this section.� Only mobile source
fleets with a base of operations in a nonattainment area are ELIGIBLE for
certification pursuant to subsection G, paragraph 2 of this section.
I. after a county issues a permit or
permit REVISION THAT CERTIFIES emission reduction credits PURSUANT to
subsection G of this section, the permit or permit REVISION are binding on the
applicant.
END_STATUTE
Sec. 2. Section 49-426, Arizona Revised
Statutes, is amended to read:
START_STATUTE
49-426.
Permits; duties of director; exceptions; applications;
objections; fees; definitions
A. A permit shall:
1. Be issued by the director in compliance with the
terms of this section.
2. Be required for any person seeking a compliance
extension pursuant to section 49-426.03, subsection B, paragraph 3 and
section 112(a)(5) of the clean air act and for any person beginning actual
construction of or operating any source, except as prescribed in subsection B
of this section or section 49-426.01.
B.
The provisions of
This
section shall not apply to motor vehicles, to agricultural vehicles or
agricultural equipment used in normal farm operations, or to fuel burning
equipment
which
that
, at a location
or property other than a one or two family residence, is rated at less than one
million British thermal units per hour. The director may establish
by rule additional sources or classifications of sources for which a permit is
not required and pollutant-emitting activities and emissions units at permitted
sources that are not required to be included in the permit. The
director shall not adopt such rules unless the director makes a written finding
with supporting facts that the exempted source, class of sources,
pollutant-emitting activities or emissions units will have an insignificant
adverse impact on air quality. In adopting these rules, the director
may consider any rule that is adopted by the administrator pursuant to section
502 of the clean air act and that exempts one or more source categories from
the requirement to obtain a permit under title V of the clean air act.
If an applicant voluntarily submits
a permit application, section 49-104 and this subsection do not preclude
the director or the control officer from issuing a permit or
permit revision that
requires reductions in
emissions from motor VEHICLES,
agricultural vehicles or
equipment, mobile sources or nonroad ENGINES in a permit
that
the applicant
agreed to at the time of issuance.
C. Every application for a permit shall be filed in
the manner and form prescribed by the director, and shall contain all the
information necessary to enable the director to make the determination to grant
or deny such application. The director shall establish by rule
requirements for permit applications, including the standard application form
for title V sources. The director shall establish by rule
requirements for applications for general permits. An application
for a permit issued pursuant to title V of the clean air act shall include a
compliance plan that describes how the applicant will comply with all of the
applicable requirements of this chapter and the clean air act, including a
schedule of compliance and a schedule under which progress reports will be
submitted to the director at least every six months. The director
may require that such application include all sources that are used or to be
used by the applicant in a certain process or a single facility or
location. Before acting on an application for a permit, the director
may require the applicant to furnish further information or further plans or
specifications. The director shall act, within a reasonable time, on
such application and shall notify the applicant in writing of the proposed
approval or denial of such application, except that the director may have a
reasonable period of time in which to gather information, inspect premises, and
issue such permits. The director shall adopt rules that establish
procedures for determining when applications are complete, for processing
applications and for reviewing permit actions. The director shall
also establish by rule criteria for determining reasonable times for processing
permit applications. Rules adopted pursuant to this subsection for
permits issued pursuant to title V of the clean air act shall conform to the
requirements of section 505(a) of the clean air act.
D. The director shall give notice of a proposed
permit for a source required to obtain a permit pursuant to title V of the
clean air act once each week for two consecutive weeks in two newspapers of
general circulation in the county in which the source is or will be
located. The notice shall describe the proposed permit and air
contaminants to be emitted and shall state that any person may submit comments
on the proposed permit and may request a public hearing. The director
shall require the applicant at the time of the first notice to post the site
where the source is or may be located. If permitted by federal,
state and local law, the posting shall be prominently placed at a site that is
under the applicant's legal control and that is adjacent to the nearest public
roadway. The posting shall be visible to the public using the public
roadway and shall contain the information in the notice that is published by
the director. If a public hearing is requested, the director shall
require the applicant to place an additional posting that provides notice of
the public hearing. A posting shall be maintained until the public
comment period on the proposed permit is closed. The director shall
make available to the public notices of proposed permits. Each
public notice that is issued under this chapter shall be mailed to the permit
applicant, to the affected federal, state and local agencies and to those
persons who have requested in writing copies of proposed permit action notices.�
During the public comment period, any person may submit a request to the
department to conduct a public hearing for the purpose of receiving oral or
written comments on the proposed permit. A written comment shall
state the name and mailing address of the person, shall be signed by the person
, his
or the person's
agent or
his
attorney and shall clearly set forth reasons why the permit
should or should not be issued. Grounds for comment are limited to
whether the proposed permit meets the criteria for issuance prescribed in this
section or in section 49-427. The department shall consider
and prepare written responses to all comments received during the public
comment period
,
including comments made at a public
hearing conducted by the department. At the time a final permit
decision is made, copies of the department's responses shall be made available
to the applicant and any person who commented on the proposed permit.
E. Permits or revisions issued pursuant to this
section or section 49-426.01 may be issued subject to such terms and
conditions as are consistent with the requirements of this article, article 1
of this chapter and the clean air act and are found by the director to be
necessary, following public notice and an opportunity for a public hearing as
provided in subsection D or H of this section or in section 49-426.01,
and subject to payment of a reasonable fee to be determined as follows:
1. For a source that is required to obtain a permit
pursuant to title V of the clean air act, the director shall establish by rule
a system of fees that is consistent with and equivalent to that prescribed by
section 502 of the clean air act. These rules shall prescribe
procedures for increasing the fee each year by the percentage
,
if any
,
by which the consumer price index for the
immediately preceding calendar year exceeds the consumer price index for
calendar year 1989.
2. For a facility that is required to obtain a
permit pursuant to this chapter but that is not required to obtain a permit
pursuant to title V of the clean air act, the director shall determine a fee
based on the total actual cost of processing the permit application, but not
exceeding twenty-five thousand dollars
more than
$25,000
.
The director shall establish an annual inspection fee, not to
exceed the average cost of inspection. The director shall adopt, by
rule, criteria for determining fees and for public hearings.
F.
except as provided in subsection Q
of this section,
permits issued pursuant to this section shall be issued
for a period of five years.
G. Except as provided in subsection H of this
section, any person burning used oil, used oil fuel, hazardous waste or
hazardous waste fuel in any machine, incinerator or device shall first obtain a
permit from the director. Any permit issued by the director under
this subsection shall contain, at a minimum, conditions governing:
1. Limitations on the types, amounts and feed rates
of used oil, used oil fuel, hazardous waste or hazardous waste fuel
which
that
may be burned.
2. The frequency and types of fuel testing to be
conducted by the person.
3. The frequency and type of emissions testing or
monitoring to be conducted by the person.
4. Requirements for
record keeping
recordkeeping
and reporting.
5. Numeric emission limitations expressed in pounds
per hour and tons per year for air contaminants to be emitted from the facility
burning off-specification used oil fuel, hazardous waste or hazardous waste
fuel.
H. The director may issue a general permit for a
defined class of facilities if the class contains a large number of facilities
that are substantially similar in nature and that have substantially similar
emissions and if the following conditions are met:
1. A general permit shall comply with all of the
requirements for permits prescribed by this section except for the requirements
of subsection D of this section and shall be consistent with the clean air act.
2. The director shall give notice of the proposed
general permit once each week for two consecutive weeks in a newspaper of
general circulation in each county. The notice shall describe the
proposed general permit, the general class of sources that would be subject to
the proposed permit and the air contaminants to be emitted. The
notice shall also state that any person may submit comments on the proposed
general permit and may request a public hearing. A written comment
shall state the name of the person and the person's agent or attorney and shall
clearly set forth reasons why the general permit should or should not be
issued. Grounds for comment are limited to whether the proposed
general permit meets the criteria for issuance prescribed in this section or
section 49-427.
3. On issuance of a general permit
,
any person seeking to permit a source under this subsection shall submit an
application pursuant to subsection C of this section.
4. If the director approves an application to be
permitted under a general permit, the director shall provide notice of the
approval in a newspaper of general circulation in the county in which the
source is or will be located.
5. If a person violates a general permit, the
director may require the source to obtain a permit pursuant to subsection A of
this section.
6. A general permit may be revoked or revised at any
time by the director if necessary to comply with this chapter. If
the director revokes or revises a general permit, the director shall notify all
persons whose sources are affected by the revocation or revision and shall
include notice of procedures to obtain a permit pursuant to subsection A of
this section or notice of procedures for compliance with the revisions.
7. The director by rule shall adopt procedures for
the issuance of general permits.
8. The director may adopt conditions in a general
permit applicable to sources located in a specified geographic area either
independently of or
upon
on
petition
by a county air pollution control officer.
I. Permits issued pursuant to this section for a
source required to obtain a permit under title V of the clean air act shall
contain all of the following:
1. Conditions reflecting all applicable requirements
of this article and rules adopted pursuant to this article.
2. Enforceable emission limitations and standards.
3. A schedule for compliance, if applicable.
4. The requirement to submit at least every six
months the results of any required monitoring.
5. Any other conditions that are necessary to assure
compliance with this article and the clean air act, including the applicable
implementation plan.
J. The director may refuse to issue any permit to
any source subject to the requirements of title V of the clean air act if the
administrator objects to its issuance in a timely manner as prescribed under
title V of the act.
K. If an applicant has submitted a timely and
complete application for a permit required under this section, but final action
has not been taken on that application, failure to obtain a permit shall not be
a violation of this chapter unless the delay in final action is due to the
failure of the applicant to submit information required or requested to process
the application. This subsection does not apply to any person
required to obtain a permit before commencing construction of a source as
required under this section or any person seeking a permit revision as provided
under section 49-426.01.
L. The director may issue a single permit
authorizing emissions from similar operations at multiple temporary locations,
if the permit includes conditions that will assure compliance with all
applicable requirements of this chapter and the clean air act at all locations.
Any permit issued pursuant to this subsection shall require the applicant to
notify the director in advance of each change in location.� In issuing a single
permit, the director may require a separate permit fee for operations at each
location.
M. In the case of a permit with a term of three or
more years issued pursuant to the requirements of title V of the clean air act
to a major source, the director shall require revisions to the permit to
incorporate applicable standards and regulations adopted by the administrator
pursuant to the clean air act after the issuance of the permit. The
director shall require any revisions as expeditiously as practicable, but not
later than eighteen months after the promulgation of such standards and
regulations. No permit revision shall be required if the effective
date of standards and regulations is after the expiration of the
permit. Any permit revision required pursuant to this subsection
shall be treated as a permit renewal.
N. Any permit issued pursuant to the requirements of
this article and title V of the clean air act to a unit subject to
the provisions of
title IV of the clean air act shall include
conditions prohibiting all of the following:
1. Annual emissions of sulfur dioxide in excess of
the number of allowances to emit sulfur dioxide held by the owners or operators
of the unit or by the designated representative of the owners or operators.
2. Amounts in excess of applicable emission rates.
3. The use of any allowance prior to the year for
which it was allocated.
4. Contravention of any other provision of the
permit.
O. The director shall adopt a rule specifying the
notice, public participation requirements and other permit issuance procedures
for permits that are not issued pursuant to title V of the clean air act.
P. In determining whether a permitting threshold
established pursuant to this section applies to an existing source, the
director shall exclude particulate matter that is not subject to a national
ambient air quality standard under the clean air act.
Q.
Permits and
permit revisions that an applicant has voluntarily applied for and that are
issued by the director or control officer for the sole purposes of certifying
emission reduction credits pursuant to section 49-410 shall:
1.
remain subject
to all applicable rules, conditions and enforcement provisions of the permit
program pursuant to which the permitting authority issues the permit.
2. be
issued at the DISCRETION of the permitting AUTHORITY.
3.
be for a term of not more than twenty years.
R. For the purposes of this section:
1. "Control officer" has
the same meaning prescribed in section 49-471.
2. "Nonroad engines" has
the same meaning prescribed in section 216 of the clean air act.
END_STATUTE
Sec. 3. Section 49-480, Arizona Revised
Statutes, is amended to read:
START_STATUTE
49-480.
Permits; fees
A. The board of supervisors may adopt a program for
the review, issuance, revision, administration and enforcement of permits and
for public review of proposed permits for sources that are subject to section
49-426,
subsection A,
that are not under the
jurisdiction of the state pursuant to section 49-402 and that are not
otherwise exempt pursuant to section 49-426, subsection B and subsection
K of this section. This program shall include provisions for
administration, inspection and enforcement of general permits issued pursuant
to section 49-426, subsection H and subsection J of this section.
B. Procedures for the review, issuance, revision and
administration of permits issued pursuant to this section and required to be
obtained pursuant to title V of the clean air act
,
including sources that emit hazardous air pollutants shall be substantially
identical to procedures for the review, issuance, revision and administration
of permits issued by the department under this chapter.� Such procedures shall
comply with the requirements of sections 165, 173 and 408 and titles III and V
of the clean air act and implementing regulations for sources subject to titles
III and V of the clean air act. Procedures for the review, issuance,
revision and administration of permits issued pursuant to this section and not
required to be obtained pursuant to title V of the clean air act shall impose
no greater procedural burden on the permit applicant than procedures for the
review, issuance, revision and administration of permits issued by the
department under sections 49-426 and 49-426.01 and other applicable
provisions of this chapter.
C.
Upon
on
adoption of a permit program by the board of supervisors pursuant to this
section, no person may begin actual construction, operate or make a
modification to any source subject to the permit program without complying with
the requirements of that program.
D. Permits issued pursuant to a program adopted
under this section are subject to payment of a reasonable fee to be determined
as follows:
1. For any source required to obtain a permit under
title V of the clean air act, the board of supervisors shall establish by rule
a system of fees consistent with and equivalent to that prescribed under
section 502 of the clean air act. Such system shall prescribe
procedures for increasing the fee each year by the percentage, if any by which
the consumer price index for the most recent calendar year ending before the
beginning of such year exceeds the consumer price index for the calendar year
1989.
2. For any facility subject to the permitting
requirements of this chapter but not required to obtain a permit under title V
of the clean air act, the board of supervisors shall determine a permit fee
based on all reasonable direct and indirect costs required to administer the
permit, but not
exceeding twenty-five thousand dollars
more than $25,000
.
The board of supervisors shall establish an annual inspection
fee, not to exceed the average cost of services.
E.
Funds
monies
received for permits issued pursuant to this section shall be deposited in a
special public health fund and shall be used by the control officer to defray
the costs of implementing this article.
F. Permits issued pursuant to this section for a
source required to obtain a permit under title V of the clean air act shall,
and for a source that is not required to obtain a title V permit may, contain
all of the following:
1. Conditions reflecting all applicable requirements
of this article and rules adopted pursuant to this article.
2. Enforceable emission limitations and standards.
3. A schedule for compliance, if applicable.
4. The requirement to submit at least every six
months the results of any required monitoring.
5. Any other conditions that are necessary to assure
compliance with this article and the clean air act, including the applicable
implementation plan.
G. The control officer may refuse to issue any
permit to any source
,
subject to the requirements of
title V of the clean air act
,
if the administrator
objects to its issuance in a timely manner as prescribed under title V of the
act.
H. In the case of a permit with a term of three or
more years issued pursuant to the requirements of title V of the clean air act
to a major source, the control officer shall require revisions to the permit to
incorporate applicable standards and regulations adopted by the administrator
pursuant to the clean air act after the issuance of the permit. The
control officer shall require any revisions as expeditiously as practicable but
not later than eighteen months after the promulgation of such standards and
regulations. No permit revision shall be required if the effective
date of the standards and regulations is after the expiration of the
permit. Any permit revision required pursuant to this subsection
shall be treated as a permit renewal.
I. Except as provided in section 49-426,
subsection B and subsection A of this section, any person burning used oil,
used oil fuel, hazardous waste or hazardous waste fuel in any machine,
incinerator or device shall first obtain a permit from the control
officer. Any permit issued by the control officer under this
subsection shall contain, at a minimum, conditions governing:
1. Limitations on the types, amounts and feed rates
of used oil, used oil fuel, hazardous waste or hazardous waste fuel
which
that
may be burned.
2. The frequency and types of fuel testing to be
conducted by the person.
3. The frequency and type of emissions testing or
monitoring to be conducted by the person.
4. Requirements for
record keeping
recordkeeping
and reporting.
5. Numeric emission limitations expressed in pounds
per hour and tons per year for air contaminants to be emitted from the facility
burning used oil, used oil fuel, hazardous waste or hazardous waste fuel.
J. The board of supervisors may authorize by rule
the control officer to issue a general permit for a defined class of facilities
if that class of facilities has not been issued a general permit by the
director for sources in that county pursuant to section 49-426,
subsection H. The criteria for issuance of a general permit are
those applicable to the director pursuant to section 49-426, subsection
G.
K. The board of supervisors may identify by rule
sources or classifications of sources for which a permit is not required and
pollutant-emitting activities and emissions units at permitted sources
that are not subject to inclusion in the permit. The criteria for
exemptions granted pursuant to this subsection are those applicable to
exemptions granted by the director pursuant to section 49-426,
subsection B.
L. In determining whether a permitting threshold
established pursuant to this section applies to an existing source, the control
officer shall exclude particulate matter that is not subject to a national
ambient air quality standard under the clean air act.
M. The board of supervisors may adopt a rule or
ordinance that establishes less burdensome permit procedures and requirements
for permits that are not required to be obtained pursuant to title V of the
clean air act.� Until the effective date of a rule or ordinance adopted by a
board of supervisors pursuant to this section, the control officer, either on
the control officer's own initiative or on the request of a permit applicant,
may waive requirements that are not appropriate for non-title V sources.
END_STATUTE