state waters; rules; ecological services

HB2538 - 572R - I Ver

REFERENCE TITLE:
state waters; rules; ecological services

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2538

Introduced by

Representative
Mathis

AN
ACT

amending sections 49-203, 49-221,
49-222, 49-255.01, 49-255.02, 49-255.03, 49-255.04
and 49-371, Arizona Revised Statutes; relating to water quality.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 49-203, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-203.

Powers and duties of the director and department

A. The director shall:

1. Adopt, by rule, water quality standards in the
form and subject to the considerations prescribed by article 2 of this chapter.

2. Adopt, by rule, a permit program for WOTUS that
is consistent with
but not

and
more
stringent than the requirements of the clean water act for the point source
discharge of any pollutant or combination of pollutants into WOTUS.� The
program and the rules shall be sufficient to enable this state to administer
the permit program identified in section 402(b) of the clean water act,
including the sewage sludge requirements of section 405 of the clean water act
and as prescribed by article 3.1 of this chapter.

3. Apply the program and rules authorized under
paragraph 2 of this subsection to point source discharges to non-WOTUS
protected surface waters, consistent with section 49-255.04, which
establishes the program components and rules that do not apply to non-WOTUS
protected surface waters. The following are exempt from the non-WOTUS
protected surface waters point source discharge program:

(a) Discharges to a non-WOTUS protected
surface water incidental to a recharge project.

(b) Established or ongoing farming, ranching and
silviculture activities such as plowing, seeding, cultivating, minor drainage
or harvesting for the production of food, fiber or forest products or upland
soil and water conservation practices.

(c) Maintenance but not construction of drainage
ditches.

(d) Construction and maintenance of irrigation
ditches.

(e) Maintenance of structures such as dams, dikes
and levees.

4. Adopt, by rule, a program to control nonpoint
source discharges of any pollutant or combination of pollutants into WOTUS.

5. Adopt, by rule, an aquifer protection permit
program to control discharges of any pollutant or combination of pollutants
that are reaching or may with a reasonable probability reach an aquifer.� The
permit program shall be as prescribed by article 3 of this chapter.

6. Adopt, by rule, the permit program for
underground injection control described in the safe drinking water act.

7. Adopt, by rule, technical standards for
conveyances of reclaimed water and a permit program for the direct reuse of
reclaimed water.

8. Adopt, by rule or as permit conditions, discharge
limitations, best management practice standards, new source performance
standards, toxic and pretreatment standards and other standards and conditions
as reasonable and necessary to carry out the permit programs and regulatory
duties described in paragraphs 2 through 6 of this subsection.

9. Assess and collect fees to revoke, issue, deny,
modify or suspend permits issued pursuant to this chapter and to process permit
applications. The director may also assess and collect costs
reasonably necessary if the director must conduct sampling or monitoring
relating to a facility because the owner or operator of the facility has
refused or failed to do so on order by the director. The director
shall set fees that are reasonably related to the department's costs of
providing the service for which the fee is charged. Monies collected
from aquifer protection permit fees and from Arizona pollutant discharge
elimination system permit fees shall be deposited, pursuant to sections 35-146
and 35-147, in the water quality fee fund established by section 49-210.�
Monies from other permit fees shall be deposited, pursuant to sections 35-146
and 35-147, in the water quality fee fund unless otherwise provided by
law.� Monies paid by an applicant for review by consultants for the department
pursuant to section 49-241.02, subsection B shall be deposited, pursuant
to sections 35-146 and 35-147, in the water quality fee fund
established by section 49-210.� State agencies are exempt from all fees
imposed pursuant to this chapter.

10. Adopt, modify, repeal and enforce other rules
that are reasonably necessary to carry out the director's functions under this
chapter.

11. Require monitoring at an appropriate point of
compliance for any organic or inorganic pollutant listed under section 49-243,
subsection I if the director has reason to suspect the presence of the
pollutant in a discharge.

12. Adopt rules establishing what constitutes a
significant increase or adverse alteration in the characteristics or volume of
pollutants discharged for purposes of determining what constitutes a major
modification to an existing facility under the definition of new facility
pursuant to section 49-201. Before adopting these rules, the
director shall determine whether a change at a particular facility results in a
significant increase or adverse alteration in the characteristics or volume of
pollutants discharged on a case-by-case basis, taking into account
site conditions and operational factors.

13. Consider evidence gathered by the Arizona
navigable stream adjudication commission established by section 37-1121
when deciding whether a permit is required to discharge pursuant to article 3.1
of this chapter.

14. Establish a water quality program
to restore and maintain the chemical, physical and biological integrity of this
state's waters.

B. The director may:

1. On presentation of credentials, enter into, on or
through any public or private property from which a discharge has occurred, is
occurring or may occur or on which any disposal, land application of sludge or
treatment regulated by this chapter has occurred, is occurring or may be
occurring and any public or private property where records relating to a
discharge or records that are otherwise required to be maintained as prescribed
by this chapter are kept, as reasonably necessary to ensure compliance with
this chapter. The director or a department employee may take
samples, inspect and copy records required to be maintained pursuant to this
chapter, inspect equipment, activities, facilities and monitoring equipment or
methods of monitoring, take photographs and take other action reasonably
necessary to determine the application of, or compliance with, this chapter.�
The owner or managing agent of the property shall be afforded the opportunity
to accompany the director or department employee during inspections and
investigations, but prior notice of entry to the owner or managing agent is not
required if reasonable grounds exist to believe that notice would frustrate the
enforcement of this chapter. If the director or department employee
obtains any samples before leaving the premises, the director or department
employee shall give the owner or managing agent a receipt describing the
samples obtained and a portion of each sample equal in volume or weight to the
portion retained. If an analysis is made of samples, or monitoring
and testing are performed, a copy of the results shall be furnished promptly to
the owner or managing agent.

2. Require any person who has discharged, is
discharging or may discharge into the waters of the state under article 3, 3.1
or 3.3 of this chapter and any person who is subject to pretreatment standards
and requirements or sewage sludge use or disposal requirements under article
3.1 of this chapter to collect samples, to establish and maintain records,
including photographs, and to install, use and maintain sampling and monitoring
equipment to determine the absence or presence and nature of the discharge or
indirect discharge or sewage sludge use or disposal.

3. Administer state or federal grants, including
grants to political subdivisions of this state, for the construction and
installation of publicly and privately owned pollutant treatment works and
pollutant control devices and establish grant application priorities.

4. Develop, implement and administer a water quality
planning process, including a ranking system for applicant eligibility, wherein
appropriated state monies and available federal monies are awarded to political
subdivisions of this state to support or assist regional water quality planning
programs and activities.

5. Enter into contracts and agreements with the
federal government to implement federal environmental statutes and programs.

6. Enter into intergovernmental agreements pursuant
to title 11, chapter 7, article 3 if the agreement is necessary to more
effectively administer the powers and duties described in this chapter.

7. Participate in,
conduct and contract for studies, investigations, research and demonstrations
relating to the causes, minimization, prevention, correction, abatement,
mitigation, elimination, control and remedy of discharges and collect and
disseminate information relating to discharges.

8. File bonds or other security as required by a
court in any enforcement actions under article 4 of this chapter.

C. Subject to section 38-503 and other
applicable statutes and rules, the department may contract with a private
consultant to assist the department in reviewing aquifer protection permit
applications and on-site wastewater treatment facilities to determine
whether a facility meets the criteria and requirements of this chapter and the
rules adopted by the director. Except as provided in section 49-241.02,
subsection B, the department shall not use a private consultant if the fee
charged for that service would be greater than the fee the department would
charge to provide that service. The department shall pay the
consultant for the services rendered by the consultant from fees paid by the
applicant or facility to the department pursuant to subsection A, paragraph 9
of this section.

D. The director shall integrate all of the programs
authorized in this section and other programs affording water quality
protection that are administered by the department for purposes of
administration and enforcement and shall avoid duplication and dual permitting
to the maximum extent practicable.
END_STATUTE

Sec. 2. Section 49-221, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-221.

Water quality standards in general; protected surface waters
list; definition

A. The director shall:

1. Adopt, by rule, water quality standards for all
WOTUS and for all waters in all aquifers to preserve and protect the quality of
those waters for all present and reasonably foreseeable future
uses.
For non-WOTUS protected surface waters,
the director shall apply surface water quality standards established as of
January 1, 2021, until specifically changed by the director pursuant to
paragraph 2 of this subsection.� Rules regarding the following shall not be
adopted or applied as water quality standards for non-WOTUS protected
surface waters:

(a) Antidegradation.

(b) Antidegradation criteria.

(c) Outstanding Arizona waters.

2. Adopt, by rule, water quality standards for
non-WOTUS protected surface waters
, by December 31, 2022,
consistent with paragraph 1 of this subsection and
as determined
necessary in the rulemaking process. In adopting those standards,
the director shall consider the unique characteristics of this state's surface
waters and the economic, social and environmental costs and benefits
, including ecological services,
that would result from the
adoption of a water quality standard at a particular level or for a particular
water category.�
beginning on the effective date of this
amendment to this section, The department shall provide public notice and an
opportunity to comment on surface water quality standards for non-wotus
protected surface waters. the department shall prepare written
responses to comments received on the standards.� The department shall publish
the standards and a summary of the responses to comments on the standards in
the Arizona administrative register.

3. Adopt, by rule, a permit program
for the discharge of dredged or fill material into non-WOTUS protected
surface water for the PURPOSES of implementing a permit PURSUANT to 33 United
States Code section 1344.

B. The director may adopt, by rule, water quality
standards for waters of the state other than those described in subsection A of
this section, including standards for the use of water pumped from an aquifer
that does not meet the standards adopted pursuant to section 49-223,
subsections A and B and that is put to a beneficial use other than drinking
water. These standards may include standards for the use of water
pumped as part of a remedial action. In adopting such standards, the
director shall consider the economic, social and environmental costs and
benefits that would result from the adoption of a water quality standard at a
particular level or for a particular water category.

C. In setting standards pursuant to subsection A or
B of this section, the director shall consider the following:

1. The protection of the public health and the
environment.

2. The uses that have been made, are being made or
with reasonable probability may be made of these waters.

3. The provisions and requirements of the clean
water act and safe drinking water act and the regulations adopted pursuant to
those acts.

4. The degree to which standards for one category of
waters could cause violations of standards for other, hydrologically connected,
water categories.

5. Guidelines, action levels or numerical criteria
adopted or recommended by the United States environmental protection agency or
any other federal agency.

6. Any unique physical, biological or chemical
properties of the waters.

D. Water quality standards shall be expressed in
terms of the uses to be protected and, if adequate information exists to do so,
numerical limitations or parameters, in addition to any narrative standards
that the director deems appropriate.

E. The director may adopt by rule water quality
standards for the direct reuse of reclaimed water. In establishing
these standards, the director shall consider the following:

1. The protection of public health and the
environment.

2. The uses that are being made or may be made of
the reclaimed water.

3. The degree to which standards for the direct
reuse of reclaimed water may cause violations of water quality standards for
other hydrologically connected water categories.

F. If the director proposes to adopt water quality
standards for agricultural water, the director shall consult, cooperate,
collaborate and, if necessary, enter into interagency agreements and memoranda
of understanding with the Arizona department of agriculture relating to its
administration pursuant to title 3, chapter 3, article 4.1 of this state's
authority relating to agricultural water under the United States food and drug
administration produce safety rule (21 Code of Federal Regulations part 112, subpart
E) and any other federal produce safety regulation, order or guideline or other
requirement adopted pursuant to the FDA food safety modernization act (P.L. 111-353;
21 United States Code sections 2201 through 2252).� For the purposes of this
subsection:

1. "Agricultural water":

(a) Means water that is used in a covered activity
on produce where water is intended to, or is likely to, contact produce or food
contact surfaces.

(b) Includes all of the following:

(i) Water used in growing activities, including
irrigation water, water used for preparing crop sprays and water used for
growing sprouts.

(ii) Water used in harvesting, packing and holding
activities, including water used for washing or cooling harvested produce and
water used for preventing dehydration of produce.

2. "Covered activity" means growing,
harvesting, packing or holding produce.� Covered activity includes processing
produce to the extent that the activity is within the meaning of farm as
defined in section 3-525.

3. "Harvesting" has the same meaning
prescribed in section 3-525.

4. "Holding" has the same meaning
prescribed in section 3-525.

5. "Packing" has the same meaning
prescribed in section 3-525.

6. "Produce" has the same meaning
prescribed in section 3-525.

G. The director shall maintain and publish a
protected surface waters list. The department shall publish the
initial list on the department's website and in the Arizona administrative
register
.
�
within thirty days after
September 29, 2021.� Not later than December 31, 2022,
The department
shall adopt by rule the protected surface waters list, including procedures for
determining economic, social and environmental costs and benefits.
Not later than December 31, 2027, The department shall
begin the rulemaking process to update the protected SURFACE waters
list. The director shall provide public notice and an opportunity to
comment on surface water quality standards for non-wotus protected surface
waters. the department shall prepare written responses to comments
received on the standards.� The department shall publish the standards and a
summary of the responses to comments on the standards in the Arizona
administrative register.
Publication of the list in the
Arizona administrative register is an appealable agency action pursuant to
title 41, chapter 6, article 10 and may be appealed by any party
that
provides evidence of an actual adverse effect that the party appealing the
decision would suffer as a result of the director's decision
.� All of
the following apply to the protected surface
water
waters
list:

1. The protected surface waters list shall include:

(a) All WOTUS.

(b) Any perennial, intermittent and ephemeral
reaches and any impoundments of the following rivers, not including tributaries
or reaches of waters wholly within tribal jurisdiction or reaches of waters
outside of the United States:

(i) The Bill Williams River, from the confluence of
the Big Sandy and Santa Maria Rivers at 113�31'38.617"w,
34�18'22.373"n, to its confluence with the Colorado River at
114�8'9.854"w, 34�18'9.33"n.

(ii) The Colorado River, from the Arizona-Utah
border at 111�32'35.741"w, 36�58'51.698"n, to the Arizona-Mexico
border at 114�43'12.564"w, 32�43'6.218"n.

(iii) The Gila River, from the Arizona-New
Mexico border at 109�2'52.8"w, 32�41'11.2015"n, to the confluence
with the Colorado River at 114�33'28.145"w, 32�43'14.408"n.

(iv) The Little Colorado River, from the confluence
of the east and west forks of the Little Colorado River at 109�28'7.131"w,
33�59'39.852"n, to its confluence with the Colorado River at
111�49'4.693"w, 36�12'10.243"n.

(v) The Salt River, from the confluence of the Black
and White Rivers at 110�13'39.5"w, 33�44'6.082"n, to the confluence
with the Gila River at 112�18'5.704"w, 33�22'42.978"n.

(vi) The San Pedro River, from the Arizona-Mexico
border at 110�9'1.704"w, 31�20'2.387"n, to the confluence with the
Gila River at 110�47'0.905"w, 32�59'5.671"n.

(vii) The Santa Cruz River, from its origins in the
Canelo Hills of southeastern Arizona at 110�37'3.968"w,
31�27'39.21"n, to its confluence with the Gila River at
111�33'26.02"w, 32�41'39.058"n.

(viii) The Verde River, from Sullivan Lake at
112�28'10.588"w, 34�52'11.136"n, to its confluence with the Salt
River at 111�39'48.32"w, 33�33'20.538"n.

(c) Any non-WOTUS waters of the state that are
added under paragraphs 3 and 4 of this subsection.

2. Notwithstanding paragraph 1 of this subsection,
the protected surface waters list shall not contain any of the following
non-WOTUS waters:

(a) Canals in the Yuma project and ditches, canals,
pipes, impoundments and other facilities that are operated by districts
organized under title 48, chapters 18, 19, 20, 21 and 22 and that are not used
to directly deliver water for human consumption, except when added pursuant to
paragraph 4 of this subsection and in response to a written request from the
owner and operator of the ditch or canal until the owner and operator withdraws
its request.

(b) Irrigated areas, including fields flooded for
agricultural production.

(c) Ornamental and urban ponds and lakes such as
those owned by homeowners' associations and golf courses, except when added
pursuant to paragraph 4 of this subsection and in response to a written request
from the owner of the ornamental or urban pond or lake until the owner
withdraws its request.

(d) Swimming pools and other bodies of water that
are regulated pursuant to section 49-104, subsection B.

(e) Livestock and wildlife water tanks and
aquaculture tanks that are not constructed within a protected surface water.

(f) Stormwater control features.

(g) Groundwater recharge, water reuse and wastewater
recycling structures, including underground storage facilities and groundwater
savings facilities permitted under title 45, chapter 3.1 and detention and
infiltration basins, except when added pursuant to paragraph 4 of this
subsection and in response to a written request from the owner of the
groundwater recharge, water reuse or wastewater recycling structure until the
owner withdraws its request.

(h) Water-filled depressions created as part
of mining or construction activities or pits excavated to obtain fill, sand or
gravel.

(i) All waste treatment systems components,
including constructed wetlands, lagoons and treatment ponds, such as settling
or cooling ponds, designed to either convey or retain, concentrate, settle,
reduce or remove pollutants, either actively or passively, from wastewater
before discharge or to eliminate discharge.

(j) Groundwater.

(k) Ephemeral waters except for those
prescribed in paragraph 1, subdivision (b) of this subsection.

(l)

(
k
)
Lakes and ponds owned and managed by the United
States department of defense and other surface waters located on and that do
not leave United States department of defense property, except when added
pursuant to paragraph 4 of this subsection and in response to a written request
from the United States department of defense until it withdraws its request.

3. Unless listed in paragraph 2 of this subsection,
the director shall add the following non-WOTUS surface waters to the protected
surface waters list:

(a) All lakes, ponds and reservoirs that are public
waters used as a drinking source, for recreational or commercial fish
consumption or for water-based recreation such as swimming, wading and boating
and other types of recreation in and on the water.

(b) Perennial waters
, ephemeral
waters
or intermittent waters of the state that are used as a drinking
water source, including ditches and canals.

(c) Perennial
, ephemeral
or
intermittent tributaries to the Bill Williams River, the Colorado River, the
Gila River, the Little Colorado River, the Salt River, the San Pedro River, the
Santa Cruz River and the Verde River.

(d) Perennial
, ephemeral
or
intermittent public waters used for recreational or commercial fish
consumption.

(e) Perennial
, ephemeral
or
intermittent public waters used for water-based recreation such as swimming,
wading, boating and other types of recreation in and on the water.

(f) Perennial
, ephemeral
or
intermittent wetlands adjacent to waters on the protected surface waters list.

(g) Perennial
, ephemeral
or
intermittent waters of the state that cross into another state,
the
Republic of
Mexico or the reservation of a federally recognized
indian
tribe.

(
h
) All waters
within the jurisdiction of this state that have cultural or religious
importance to the federally recognized Indian tribes in this state.

4. The director
may
shall
add additional non-WOTUS surface waters to the protected
surface waters list if all of the following apply:

(a) The water is not required to be listed under
paragraph 1 or 3 of this subsection.

(b) The water is not excluded under paragraph 2 of
this subsection.

(c)
The
there
are
economic, environmental
, including ecological
services,
and social benefits of adding the water
outweigh
the economic, environmental and social costs of excluding the water from the
list
.

5. The director shall remove any erroneously listed,
non-WOTUS waters from the protected surface waters list when the water is
excluded under paragraph 2 of this subsection and shall not regulate discharges
to those waters in the interim.

6. The director shall remove non-WOTUS
waters from the protected surface waters list when the water is not required to
be listed under paragraph 3 of this subsection and the economic, environmental
and social benefits of removing the water outweigh the economic, environmental
and social costs of retaining the water on the list.

6. The director shall consider any
claim by a federally recognized Indian tribe that the water is of cultural or
religious importance to the tribe.

7. The director, on an emergency basis, may add a
water to the protected surface waters list if the director discovers an
imminent and substantial danger to public health or welfare or the environment,
if the water would otherwise qualify to be added under paragraph 3 of this
subsection.� Notwithstanding any other law, the emergency addition shall take
effect immediately on the director's determination that describes the imminent
and substantial danger in writing.� Within thirty days after the director's determination,
the department shall publish a notice of that determination in the Arizona
administrative register and on the department's website. Waters
added under this subsection shall be incorporated into the protected surface
waters list during the next rulemaking that follows the addition.

H. For the purposes of this section,
"ecological services" means the many and varied benefits to humans
PROVIDED by the NATURAL environment and from healthy ecosystems.
END_STATUTE

Sec. 3. Section 49-222, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-222.

Water quality standards for WOTUS

A. Standards for the quality of WOTUS shall assure
water quality, if attainable, which provides for protecting the public health
and welfare, and shall enhance the quality of water taking into consideration
its use and value for public water supplies, the propagation of fish and
wildlife and recreational, agricultural, industrial and other purposes
including navigation.

B. The director shall establish water
quality standards that restore and maintain the chemical, physical and
biological integrity of this state's waters.

B.

c.
The
director shall adopt standards for the quality of all WOTUS that establish
numeric limitations on the concentrations of each of the toxic pollutants
listed by the administrator pursuant to section 307 of the clean water act (33
United States Code section 1317).

C.

d.
In
setting numeric standards for the quality of WOTUS, the director may consider
the effect of local water quality characteristics on the toxicity of specific
pollutants and the varying sensitivities of local affected aquatic populations
to such pollutants, and the extent to which the natural flow of the stream is
intermittent or ephemeral, as a result of which the instream flow consists
mostly of treated wastewater effluent, except that such standards shall not, in
any event, be inconsistent with the clean water act. In applying
such standards the director may establish appropriate mixing zones.
END_STATUTE

Sec. 4. Section 49-255.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-255.01.

Arizona pollutant discharge elimination system program; rules and
standards; affirmative defense; fees; general permit

A. A person shall not discharge except under either
of the following conditions:

1. In conformance with a permit that is issued or
authorized under this article or rules authorized under section 49-203,
subsection A, paragraph 2.

2. Pursuant to a permit that is issued or authorized
by the United States environmental protection agency until a permit that is
issued or authorized under this article takes effect.

B. The director shall adopt rules to establish an
AZPDES permit program for discharges to WOTUS consistent with the requirements
of sections 402(b) and 402(p) of the clean water act. This program
shall include requirements to ensure compliance with section 307 and
requirements for the control of discharges consistent with sections 318 and
405(a) of the clean water act. The director shall not adopt any
requirement for WOTUS that is
more

less

stringent than any requirement of the clean water act. The director
shall not adopt any requirement that conflicts with any requirement of the
clean water act.� The director may adopt federal rules pursuant to section 41-1028
or may adopt rules to reflect local environmental conditions to the extent that
the rules are consistent with and
not
more stringent than
the clean water act and this article.

C. The rules adopted by the director under
subsection B of this section shall provide for:

1. Issuing, authorizing, denying, modifying,
suspending or revoking individual or general permits.

2. Establishing permit conditions, discharge
limitations and standards of performance as prescribed by section 49-203,
subsection A, paragraph 8 including case-by-case effluent limitations that are
developed in a manner consistent with 40 Code of Federal Regulations section
125.3(c).

3. Modifications and variances as allowed by the
clean water act.

4. Other provisions necessary for maintaining state
program authority under section 402(b) of the clean water act.

D. This article does not affect the validity of any
existing rules that are adopted by the director and that are equivalent to and
consistent with the national pollutant discharge elimination system program
authorized under section 402 of the clean water act until new rules for AZPDES
discharges are adopted pursuant to this article.

E. An upset constitutes an affirmative defense to
any administrative, civil or criminal enforcement action brought for
noncompliance with technology-based permit discharge limitations if the
permittee complies with all of the following:

1. The permittee demonstrates through properly
signed contemporaneous operating logs or other relevant evidence that:

(a) An upset occurred and that the permittee can
identify the specific cause of the upset.

(b) The permitted facility was being properly
operated at the time of the upset.

(c) If the upset causes the discharge to exceed any
discharge limitation in the permit, the permittee submitted notice to the
department within twenty-four hours after the upset.

(d) The permittee has taken appropriate remedial
measures including all reasonable steps to minimize or prevent any discharge or
sewage sludge use or disposal that is in violation of the permit and that has a
reasonable likelihood of adversely affecting human health or the environment.

2. In any administrative, civil or criminal
enforcement action, the permittee shall prove, by a preponderance of the
evidence, the occurrence of an upset condition.

F. Compliance with a permit issued pursuant to this
article shall be deemed compliance with both of the following:

1. All requirements in this article or rules adopted
pursuant to this article relating to state implementation of sections 301, 302,
306 and 307 of the clean water act, except for any standard that is imposed
under section 307 of the clean water act for a toxic pollutant that is
injurious to human health.

2. Limitations for pollutants in WOTUS adopted
pursuant to sections 49-221 and 49-222, if the discharge of the
pollutant is specifically limited in a permit issued pursuant to this article
or the pollutant was specifically identified as present or potentially present
in facility discharges during the application process for the permit.

G. Notwithstanding section 49-203, subsection
D, permits that are issued under this article shall not be combined with
permits issued under article 3 of this chapter.

H. The decision of the director to issue or modify a
permit takes effect on issuance if there were no changes requested in comments
that were submitted on the draft permit unless a later effective date is
specified in the decision. In all other cases, the decision of the
director to issue, deny, modify, suspend or revoke a permit takes effect thirty
days after the decision is served on the permit applicant, unless either of the
following applies:

1. Within the thirty-day period, an appeal is filed
with the water quality appeals board pursuant to section 49-323.

2. A later effective date is specified in the
decision.

I. In addition to other reservations of rights
provided by this chapter, this article does not impair or affect rights or the
exercise of rights to water claimed, recognized, permitted, certificated,
adjudicated or decreed pursuant to state or other law.

J. The director shall establish by rule fees,
including maximum fees, to pay expenses incurred in implementing the AZPDES
permit
program. Monies collected pursuant to this
section shall be deposited, pursuant to sections 35-146 and 35-147,
in the water quality fee fund established by section 49-210.

K. Any permit conditions concerning threatened or
endangered species shall be limited to those required by the endangered species
act.

L. When developing a general permit for discharges
of storm water from construction activity, the director shall provide for
reduced control measures at sites that retain storm water in a manner that
eliminates discharges from the site, except for the occurrence of an extreme
event.� Reduced control measures shall be available if all of the following
conditions are met:

1. The nearest downstream receiving water is
ephemeral and the construction site is a sufficient distance from a water
warranting additional protection as described in the general permit.

2. The construction activity occurs on a site
designed so that all storm water generated by disturbed areas of the site
exclusive of public rights-of-way is directed to one or more retention
basins that are designed to retain the runoff from an extreme
event. For the purposes of this subsection, "extreme
event" means a rainfall event that meets or exceeds the local one hundred-year,
two-hour storm event as calculated by an Arizona registered professional
engineer using industry practices.

3. The owner or operator complies with good
housekeeping measures included in the general permit.

4. The owner or operator maintains the capacity of
the retention basins.

5. Construction conforms to the standards prescribed
by this section.

M. If the director commences proceedings for the
renewal of a general permit issued pursuant to this article, the existing
general permit shall not expire and coverage may continue to be obtained by new
dischargers until the proceedings have resulted in a final determination by the
director.� If the proceedings result in a decision not to renew the general
permit, the existing general permit shall continue in effect until the last day
for filing for review of the decision of the director not to renew the permit
or until any later date that is fixed by court order.
END_STATUTE

Sec. 5. Section 49-255.02, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-255.02.

Pretreatment program; rules and standards

A. The director shall adopt rules to establish a
pretreatment program that is consistent with the requirements of sections 307,
308 and 402 of the clean water act.� The director shall not adopt any
requirement that is
more
less

stringent than or conflicts with any requirements of the clean water act,
except the director shall apply the pretreatment program to publicly owned
treatment works that discharge to a non-WOTUS protected surface water.

B. The rules adopted
by the director shall provide for all of the following:

1. Development or
modification of local pretreatment programs by the owners of publicly owned
treatment works that discharge or as otherwise required under the clean water
act or this article to prevent the use or disposal of sewage sludge produced by
a publicly owned treatment works in violation of section 405 of the clean water
act or requirements established pursuant to section 49-255.03, subsection
A.

2. Approval by the director of new or modified local
pretreatment programs or site specific modifications to pretreatment standards.

3. Oversight by the director of local program
implementation.

C. The rules adopted by the director shall provide
for the department to ensure that any industrial user of any publicly owned
treatment works will comply with the requirements of sections 307 and 308 of
the clean water act.
END_STATUTE

Sec. 6. Section 49-255.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-255.03.

Sewage sludge program; rules and requirements

A. The director shall adopt rules to establish a
sewage sludge program that is consistent with the requirements of sections 402
and 405 of the clean water act.� Except as otherwise required by this article,
the director shall not adopt any requirement that is
more
less
stringent than any requirements of the clean water
act. The director shall not adopt any requirement that conflicts
with any requirement of the clean water act.

B. The rules adopted by the director shall provide
for the regulation of all sewage sludge use or disposal practices used in this
state.

C. Notwithstanding any other law or rule, the
director shall require any land application of a substance that contains sewage
or septage to comply with the rules established pursuant to subsection A of
this section, including pathogen reduction requirements that
is
are
consistent with the clean water act.

D. Notwithstanding any other law or rule, a biosolid
combined with a solid waste shall be regulated as a solid waste pursuant to
chapter 4 of this title.
END_STATUTE

Sec. 7. Section 49-255.04, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-255.04.

Special provisions for discharges to non-WOTUS protected surface
waters

A. Permits and conditions of permits for discharges
to non-WOTUS protected surface waters shall not implement any sections of the
clean water act, including sections 301, 302, 306, 307, 308, 312, 318 and 405,
and shall not be subject to review, approval or enforcement by the United
States environmental protection agency.

B. The director shall apply the rules established
pursuant to sections 49-255.01, 49-255.02 and 49-255.03 to non-WOTUS protected
surface waters until the director adopts rules for discharges to non-WOTUS
protected surface waters, except the director is not required to follow any
provisions related to United States environmental protection agency review,
approval or involvement in permit review or approval. The director
shall not adopt or apply rules regarding the following discharges to non-WOTUS
protected surface waters:

1. Except as applied to discharges from publicly
owned treatment works, requirements specific to new sources or new dischargers
under the clean water act.

2. Except as applied to discharges from publicly
owned treatment works, technology-based effluent limitations, standards or
controls, including new source performance standards, under sections 301(b),
304(b), and 306 of the clean water act.

3. Requirements to express all permit limitations,
standards or prohibitions for a metal solely in terms of total recoverable
metal.

4. Requirements for review and approval of permits
by the United States environmental protection agency before issuance.

C. The director shall issue general permits or
authorize coverage under existing general permits, subject to the limitations
prescribed in subsection B of this section
and section 49-221,
subsection A, paragraph 1
for point source discharges of storm water
from industrial or construction activity to non-WOTUS protected surface
waters.� The director shall use a best management practices approach when
issuing and implementing general permits for storm water discharges from
industrial or construction activity to non-WOTUS protected surface waters and
may include analytical monitoring and discharge limits if best management
practices cannot achieve applicable surface water quality
standards. The director may issue an individual permit for those discharges
only if the director determines, using reasonably current credible and
scientifically defensible data, that a particular discharge is a significant
contributor of pollutants to a non-WOTUS protected surface water that
causes the water to exceed one or more applicable water quality
standards. When making this determination, the director shall
consider the location of the discharge with respect to the non-WOTUS protected
surface water, the size of the discharge and the quantity and nature of the
pollutants discharged. If the director determines that an individual
permit is required for a discharge of storm water from industrial or
construction activity to a non-WOTUS protected surface water, the discharger
must be notified in writing and informed of the reasons for the determination
and the right to appeal the individual permit determination.

D. The director shall issue general permits or
authorize coverage under existing general permits, subject to the limitations
in subsection B of this section
and section 49-221,
subsection A, paragraph 1
for other categories of potential point source
discharges, including de minimis discharges, to non-WOTUS protected surface
waters that involve the same or substantially similar types of operations,
contain the same or substantially similar types of pollutants and are more
appropriately controlled under a general permit than under an individual
permit.

E. The director may adopt rules for point source
discharges to non-WOTUS protected surface waters. The rules
adopted by the director under this subsection shall not include any requirement
that is
more
less
stringent than
requirements of the clean water act, shall provide for issuing, authorizing,
denying, modifying, suspending or revoking individual or general permits and
shall establish permit conditions to carry out the permit program established
by this section.

F. The director shall not construe any rule to
require oversight by the United States environmental protection agency of
permits or portions of permits for discharges to non-WOTUS protected surface
waters, and a rule shall not apply if it would require review, approval or
enforcement by the United States environmental protection agency of discharges
to non-WOTUS protected surface waters.

G. In permits for discharges to WOTUS and non-WOTUS
protected surface waters, the director shall not impose duplicative permit
requirements.

H. The director shall not delegate to any city, town
or county the authority to require permits for point source discharges from
construction activity to non-WOTUS protected surface waters.
END_STATUTE

Sec. 8. Section 49-371, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-371.

Local stormwater quality programs; authority; limitations; fee;
civil penalty; definition

A. A county that is required by the clean water act
to obtain coverage under a national or state pollutant discharge elimination
system stormwater program or a county that is required to obtain coverage under
an Arizona pollutant discharge elimination system permit pursuant to article
3.1 of this chapter may do all of the following:

1. Develop and implement stormwater pollution
prevention plans and stormwater management programs as prescribed by the clean
water act or article 3.1 of this chapter.

2. Adopt, amend, repeal and implement any
ordinances, rules or regulations necessary to comply with the minimum
requirements of the clean water act or article 3.1 of this chapter, including
the imposition and collection of fees for issuing and administering permits,
reviewing plans and conducting inspections. Any fees imposed pursuant to this
section shall not exceed the reasonable costs of the county to issue and
administer permits, review plans and conduct inspections. Fees collected pursuant
to this section may not be used to fund stormwater infrastructure costs.

3. Adopt rules, regulations or ordinances regulating
the use of lands or rights-of-way owned or leased by the county as may be
necessary to implement and enforce its national or state pollutant discharge
elimination system stormwater management program.� Rules, regulations or
ordinances adopted pursuant to this paragraph may include provisions for both
of the following:

(a) Establishing and enforcing a county permit
program, including conditions for the review, issuance, revision, renewal,
revocation, administration and enforcement of a permit.

(b) Establishing fees for the use of lands or
rights-of-way and the discharge of stormwater or other waters onto or across
those lands or rights-of-way pursuant to a permit.

4. Enforce the ordinances, rules or regulations
adopted pursuant to this section consistent with section 49-372.

5. Seek a civil penalty of not more than $2,500 for
each violation.� Each day of a violation constitutes a separate offense.

B. An ordinance, rule or regulation adopted pursuant
to this section, or a stormwater management program developed and implemented
by a county pursuant to this section, shall not be
more
less
stringent than or conflict with any requirement of the
clean water act or article 3.1 of this chapter.� A city, town or county may not
regulate under this section any activity that does not discharge to a protected
surface water.

C. A county that operates a regulated small
municipal separate storm sewer system that discharges to a protected surface
water shall conduct its pollutant discharge elimination system stormwater
management program and shall limit the application of any ordinance, rule or
regulation as follows:

1. In urbanized areas as described in 40 Code of
Federal Regulations section 122.32 as necessary to meet the requirements of 40
Code of Federal Regulations section 122.34(b)(3).� For small municipal separate
storm sewer systems that discharge to non-WOTUS protected surface waters, the
county shall apply this paragraph as if the small municipal separate storm
sewer system discharged to a WOTUS protected surface water.

2. As necessary to meet the requirements of public
education and outreach, public involvement and participation as provided by the
clean water act or article 3.1 of this chapter.

D. Except as required by the clean water act, a
county may not require a permit from any person with a federal or state
pollutant discharge elimination system permit regulating the same activity at
the same location.

E. Except as required by 40 Code of Federal
Regulations section 122.34, a county may not regulate any person or activity
exempt under 33 United States Code section 1342(l), 40 Code of Federal
Regulations section 122.3 or Arizona administrative code R18-9-A902(G).

F. If adopting an ordinance, rule or regulation
pursuant to this section, a county shall use the definitions prescribed in
section 49-255.

G. Fees received by a county pursuant to an
ordinance or rule adopted pursuant to this article shall be deposited with the
county for use in administering the programs or plans developed and implemented
pursuant to this section.

H. Before adopting any ordinance, rule or regulation
pursuant to this section, a county shall file with the secretary of state a
written statement including a summary of the proposed rule, ordinance or other
regulation.� The summary shall provide the name of the person with the county
to contact with questions or comments. The secretary of state shall
publish the written statement in the next issue of the Arizona administrative
register at no cost to the county.� The county shall make the text of the rule,
ordinance or other regulation available to the public at the same time it files
the written summary of the rule, ordinance or other regulation with the
secretary of state as provided in this subsection.� The county shall also
comply with the requirements of section 49-112, subsection D, paragraphs 2, 3
and 4.

I. For the purposes of this article,
"county" means a county that operates a regulated medium or large
separate storm sewer system pursuant to 40 Code of Federal Regulations section
122.26 or a small municipal separate storm sewer system pursuant to 40 Code of
Federal Regulations section 122.32.� For municipal separate storm sewer systems
that discharge to non-WOTUS protected surface waters, this definition
shall apply as if the municipal separate storm sewer system discharged to a
WOTUS protected surface water.
END_STATUTE