department of environmental quality; programs

Chapter 0209 - 572R - S Ver of HB2986

Senate Engrossed
House Bill

department of
environmental quality; programs

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

CHAPTER 209

HOUSE BILL 2986

AN
ACT

Amending sections 9-511.03, 44-1322,
49-353, 49-501, 49-802, 49-832 and 49-836,
Arizona Revised Statutes; repealing section 49-837, Arizona Revised
Statutes; amending section 49-881, Arizona Revised Statutes; amending
laws 2021, chapter 27, section 9, as amended by Laws 2023, chapter 78, section
1; amending Laws 2017, chapter 295, section 3, as amended by Laws 2022, chapter
177, section 12 and Laws 2024, chapter 70, section 1; appropriating monies;
relating to the department of environmental quality.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 9-511.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
9-511.03.

Outside waste or garbage collection, landfill services or
recycling collection or processing services; requirements; exceptions

A. If a city or town provides waste or garbage
collection services, landfill services or recycling collection or processing
services outside of its boundaries, for those services the city or town shall:

1. Keep all records of the services separate from
all other city or town municipal records.

2. For land and equipment dedicated to providing
services outside of its boundaries and for any net income generated from
providing services outside its boundaries, make an in-lieu contribution
to all state, city, town, county and other taxing districts equal to the taxes
that would be required of private companies performing the same service.

3. For the portion of equipment or land used by a
city or town to provide services outside its boundaries, make an in-lieu
contribution to all state, city, town, county and other taxing districts equal
to the taxes that would be required of private companies performing the same
services, including any income tax obligation that would be incurred by a
private company for services provided by the city or town outside of the city
or town.

4. Pay an in-lieu contribution to the
recycling

solid waste fee
fund established
by section
49-837

49-881

equal to the federal taxes that would be required of private companies
performing the same service.

5. Pay all fees and costs that are applicable to
private companies, including landfill fees.

6. Ensure that no city or town taxes, fees or
revenues are used to subsidize those services outside the city or town.

B. This section does not restrict the ability of a
city or town to enter into mutual aid or intergovernmental agreements with
other cities or towns to respond to requests for emergency assistance.

C. This section does not apply to a city or town if
all of the following apply:

1. The city or town provides waste or garbage
collection services, landfill services or recycling collection or processing
services outside its boundaries in an unincorporated territory that is within
three miles of its boundaries and within its municipal planning area as
designated in the land use map of the municipality's general plan.

2. The city or town does not provide waste or
garbage collection services, landfill services or recycling collection or
processing services in an incorporated area other than its own.

3. The city or town
is located in a county with a population exceeding two million persons or the
city or town has a population of less than two thousand five hundred persons
and allows private enterprise to provide commercial and residential waste or
garbage collection services, landfill services or recycling collection or
processing services in the city or town.

D. For a city or town that has entered into a
contract or mutual aid, reciprocal assistance or intergovernmental agreement
with another entity before January 1, 2015 for landfill services or recycling
collection or processing services outside of its boundaries, this section does
not apply until the contract or mutual aid, reciprocal assistance or
intergovernmental agreement expires or terminates or January 1, 2020, whichever
is earlier.

E. This section does not apply to the disposal of
noncommercial solid waste from a single-family residence brought to a
municipal landfill by a private person who resides outside of the municipal
boundaries.

F. This section does not apply to a city or town
with a population of less than five thousand persons and that only provides
landfill services or recycling collection or processing services outside of its
boundaries.
END_STATUTE

Sec. 2. Section 44-1322, Arizona Revised
Statutes, is amended to read:

START_STATUTE
44-1322.

Disposal of lead acid batteries

A. The disposal of lead acid batteries in landfills
and the incineration of those batteries is prohibited.

B. An owner or operator of a solid waste disposal
facility shall not knowingly accept a lead acid battery for disposal.

C. A lead acid battery shall be discarded or
disposed of only as follows:

1. A lead acid battery retailer or wholesaler may
deliver a lead acid battery to any one of the following:

(a) A permitted secondary lead smelter.

(b) A battery manufacturer.

(c) A collection or recycling facility
authorized by the federal environmental protection agency or the
department of environmental quality
.

(d) In the case of battery retailers only, an agent
of a battery wholesaler.

2. A person other than a lead acid battery retailer
or wholesaler may deliver a lead acid battery to any one of the following:

(a) A lead acid battery retailer or wholesaler.

(b) A permitted secondary lead smelter.

(c) A collection or recycling facility
authorized by the federal environmental protection agency or the
department of environmental quality
.

D. The director of the department of environmental
quality shall register
collection and
recycling facilities
that accept lead acid batteries.
The director shall
require collection and recycling facilities that handle lead acid batteries to
pay an initial registration fee and annual fee established by rule. The
director shall deposit, pursuant to sections 35-146 and 35-147,
registration fees in the solid waste fee fund established by section 49-881.

END_STATUTE

Sec.
3.
Section
49-353, Arizona Revised Statutes, is amended to read:

START_STATUTE
49-353.

Duties of
director; rules; prohibited lead use

A. The director shall:

1. Exercise general supervision over
all matters related to water quality control of public water systems throughout
this state.

2. Prescribe rules regarding the
production, treatment, distribution and testing of potable water by public
water systems, except that such rules shall not apply to irrigation, industrial
or similar systems where the water is used for nonpotable
purposes. The rules shall comply with at least the following:

(a) The requirements established by
the United States environmental protection agency for state primary enforcement
responsibility of the safe drinking water act, including the requirements of 40
Code of Federal Regulations parts 141 and 142.

(b) Require that the plans and
specifications for all public water systems, including water treatment plants,
distribution systems, distribution system extensions, water treatment methods
and devices and all appurtenances and devices for sale to be used in water
supplies and public water systems be submitted with a fee for review to the
department. The department, in establishing fees authorized by this
section, shall comply with title 41, chapter 6. The department shall
not set a fee at more than the department's cost of providing the service for
which the fee is charged. State agencies are exempt from all fees imposed
pursuant to this section. Monies collected from the fees shall be
deposited in the water quality fee fund established by section 49-210.
The director may require that plans and specifications for public water systems
include programs to meet future needs for drinking water and to supply
specified minimum quantities of drinking water. The director shall:

(i) Require that a new public water
system demonstrate that the system possesses adequate managerial and financial
capacity to operate in compliance with this article and the rules adopted
pursuant to this article.

(ii) Accept adequate findings of other
public authorities regarding the adequate managerial and financial capacity of
a public water system to operate in compliance with this article and the rules
adopted pursuant to this article.

(c) Provide that no public water
system, including a water treatment plant, distribution system, distribution
system extension, water treatment method or device, appurtenance and device
used in water supplies or public water systems be constructed, reconstructed,
installed or initiated before compliance with the standards and rules has been
demonstrated by approval of the plans and specifications by the
department. The rules shall prescribe minimum standards for the
bacteriological, physical and chemical quality of water distributed through
public water systems. The director of environmental quality may
consult with the director of the department of health services in developing
these standards.

(d) Provide for a simplified
administrative procedure for approving structural revisions, additions,
extensions or modifications to existing small public water systems for potable
water serving a population of three thousand three hundred or fewer persons.

(e) Exempt from the plan review
requirements of this paragraph, including any requirements for approval to
construct or approval of construction, any structural revisions, additions,
extensions or modifications to public water systems
which

that
are in compliance with
the department's rules applicable to those systems or
which

that
are making
satisfactory progress towards compliance under a schedule approved by the
department if
either

Any

of
the following conditions
is

are
satisfied:

(i) The revision, addition, extension
or modification has a project cost of
twelve thousand five
hundred dollars

$12,500
or less.

(ii) The revision, addition, extension
or modification is made to a water line
which

that
is not for a
subdivision requiring plat approval by a city, town or county, and has a
project cost of more than
twelve thousand five hundred
dollars

$12,500

but less than
fifty thousand dollars

$50,000
, the design of
which is sealed by a professional engineer registered in this state and the
construction of which is reviewed for conformance with the design by a
professional engineer.

(
iii
) the
revision or modification is to the type, material, location or alignment of a
water line, valve or appurtenance and the water line, valve or appurtenance
after the revision or modification has the same capacity, function and
performance and is in the same right-of-way or easement as the water line,
valve or appurtenance before the revision or modification.

(f) Require a notice of compliance
with the conditions for exemption on the completion of any revisions,
additions, extensions or modifications completed in accordance with subdivision
(e) of this paragraph.

(g) Provide for the submission of
samples at stated intervals.

(h) Provide for inspection and
certification of such water supplies.

(i) Provide for the abatement as
public nuisances of any premises, equipment, process or device, or public water
system that does not comply with the minimum standards and rules.

(j) Provide for records regarding
water quality to be kept by owners and operators of the public water systems
and that reports regarding water quality be filed with the department.

(k) Provide for appropriate actions to
be taken if a water supply does not meet the standards established by the
department.

(l) Require a public water system to
implement a specified program to control contamination from backflow,
backsiphonage or cross connection. All such programs shall be consistent with
section 37-1388.

(m) Require that public water systems
identify and provide notice to persons that may be affected by lead
contamination of their drinking water where such contamination results from
either or both of the following:

(i) The lead content in the
construction materials of the public water distribution system.

(ii) Corrosivity of the water supply
sufficient to cause leaching of lead.

(n) Provide for relief from water
testing and monitoring requirements for public water systems qualifying under
the federal safe drinking water act (P.L. 93-523; 88 Stat.
1661

1660
; P.L. 95-190; 91 Stat. 1393; P.L. 104-182; 110 Stat. 1613),
as amended in 1996.

3. Develop and implement strategies to
assist public water systems in acquiring and maintaining the technical,
managerial and financial capacity to operate in compliance with this article
and the rules adopted pursuant to this article. Assistance may be
provided based on the needs of the water system.

B. Pipes, pipe fittings and plumbing
fittings and fixtures having a lead content in excess of a weighted average of
one-quarter of one percent lead when used with respect to the wetted surfaces
and solders and flux having a lead content in excess of two-tenths of one
percent shall not be used in the installation or repair of public water systems
or of any plumbing in residential or nonresidential facilities providing water
for human consumption. The weighted average lead content of a pipe, pipe
fitting or plumbing fitting or fixture shall be calculated as follows:

1. For each wetted component, the
percentage of lead in the component shall be multiplied by the ratio of the
wetted surface area of that component to the total wetted surface area of the
entire product to arrive at the weighted percentage of lead of the component.

2. The weighted percentage of lead of
each wetted component shall be added together, and the sum of these weighted
percentages shall constitute the weighted average lead content of the product.

3. The lead content of the material
used to produce a wetted component shall be used to determine compliance with
this subsection.

4. For lead content of materials that
are provided as a range, the maximum content of that range shall be used.

C. Subsection B of this section does
not apply to:

1. Leaded joints necessary for the
repair of cast iron pipes.

2. Pipes, pipe fittings and plumbing
fittings and fixtures, including backflow preventers, that are used exclusively
for nonpotable water services such as manufacturing, industrial processing,
irrigation, outdoor watering or any other uses where the water is not
anticipated to be used for human consumption.

3. Toilets, bidets, urinals, fill
valves, flushometer valves, tub fillers, shower valves or service saddles or
water distribution main gate valves that are two inches in diameter or larger.

D. Notwithstanding subsection A,
paragraph 2, subdivision (c) of this section, a public water system may
construct, reconstruct, install, extend or initiate a water supply system,
water treatment plant, distribution system, water treatment method or device,
or appurtenance that is used in water supply or in a public water system when
the system is out of compliance with standards and rules adopted pursuant to
this article only if the construction is necessary to correct the system's
noncompliance.

E. This section and the rules adopted pursuant to
this section apply to public water systems as described by section 49-352,
subsection B.
END_STATUTE

Sec. 4. Section 49-501, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-501.

Unlawful open burning; exceptions; civil penalty; definition

A. Notwithstanding the provisions of any other
section of this article:

1. It is unlawful for any person to ignite, cause to
be ignited, permit to be ignited, or suffer, allow, or maintain any open
outdoor fire except as provided in this section.

2. From May 1 through September 30 each year, it is
unlawful for any person to ignite, cause to be ignited, permit to be ignited or
suffer, allow or maintain any open outdoor fire in area A as defined in section
49-541.

B. The following fires are excepted from this
section:

1. Fires used only for cooking
of

food
,

or for
providing warmth for
human beings or
the
branding
of

animals or
the use of
using
orchard
heaters for the purpose of frost protection in farming or nursery operations.

2. Any fire set or permitted

by
any public officer in the performance of official duty, if such fire is set or
permission given for the purpose of weed abatement, the prevention of a fire
hazard, or instruction in the methods of fighting fires.

3. Fires set by or permitted

by
the director of the department of agriculture or county agricultural agents of
the county for the purpose of disease and pest prevention.

4. Fires set by or permitted

by
the federal government or any of its departments, agencies or agents or the
state or any of its agencies, departments or political subdivisions for the
purpose of watershed rehabilitation or control through vegetative manipulation.

5. Fires permitted by any rule or regulation issued
pursuant to this article, by any conditional permit issued by a hearing board
established under this article or by any rule or conditional permit issued
pursuant to article 2 of this chapter when the department of environmental
quality pursuant to section 49-402 has assumed jurisdiction of the county
in which the fire is located.

6. Fires set for the disposal of dangerous materials
where there is no safe alternate method of disposal.

C. Permission for the setting of any fire given by a
public officer in the performance of official duty under subsection B,
paragraph 2, 3 or 4 of this section shall be given in writing and a copy of the
written permission shall be transmitted immediately to the director of
environmental quality and the control officer of the county, district or region
in which such fire is allowed. The setting of any such fire shall be
conducted in a manner and at such time as approved by the control officer or
the director of environmental quality, unless doing so would defeat the purpose
of the exemption.

D. Notwithstanding section 49-107,
if the department assumes jurisdiction over
open
burning in a county pursuant to section 49-402,
the director may
delegate authority for the issuance of open burning permits to a county, city,
town or fire district. A county, city, town or fire district that
has been delegated authority for the issuance of open burning permits may
assign the issuance of these permits to a private fire protection service
provider that performs fire protection services within that county, city, town
or fire district. Any private fire protection service provider that
is authorized to issue open burning permits pursuant to this subsection shall
maintain a copy of all currently effective permits issued
,

including a means of contacting the person authorized by the permit to set the
fire in the event that an order to extinguish the open burning is
issued. Permits issued pursuant to this subsection shall contain
both of the following:

1. Conditions that limit the manner and time of
setting the fire and that are consistent with this section and rules adopted
pursuant to this section.

2. A provision that all burning be extinguished at
the discretion of the director or the director's authorized representative
during periods of inadequate atmospheric smoke dispersion, periods of excessive
visibility impairment that could adversely affect public safety or periods when
smoke is blown into populated areas so as to create a public nuisance.

E. The director may issue a general permit to allow
persons engaged in farming or ranching on forty acres or more in an
unincorporated area to burn household waste, as defined in section 49-701,
that is generated on site, if no household waste collection and disposal
service is available. The general permit shall include the following:

1. Conditions governing the method, manner and times
for burning.

2. Limitation on materials
which
that
may be burned, including a prohibition on burning of
materials
which
that
generate
noxious fumes.

3. A requirement that any person seeking coverage
under the general permit shall register with the director on a form prescribed
by the director.
Upon
on

receipt of a registration form, the director shall notify the county in which
the farm or ranch is located of such registration.

4. A statement that the director, a local air
pollution control officer, or any other public officer may order the
extinguishment of burning or may prohibit burning during periods of inadequate
smoke dispersion or excessive visibility impairment or at other times when
public health or safety could be adversely affected.

F.
Nothing in
This section
is intended to
does not
permit any
practice
which
that
is a violation
of any statute, ordinance, rule or regulation in a county with a population in
excess of one million two hundred thousand persons. Notwithstanding any other
law, such a county shall prohibit by ordinance the use of wood burning
chimineas, outdoor fire pits and similar outdoor fires on those days for which
the county has issued a no burn day restriction.

G. A person who violates
any provision
of
this section may be served a notice of violation and be subject to
the enforcement provisions of this article to the same extent as a person
violating any rule or regulation adopted pursuant to this article, except that
:

1.
A violation that lasts
no
not
more than twenty-four hours
and that is the first violation committed by that person is subject to a civil
penalty of
no
not
more than
five hundred dollars
$500
.

2. A violation
that
is subject to the department's jurisdiction pursuant to section 49-402 is
subject to enforcement as provided in article 2 of this chapter.

H. For the purposes of this section, "open
outdoor fire" means any combustion of combustible material of any type
outdoors, in the open where the products of combustion are not directed through
a flue. For the purposes of this subsection, "flue" means any duct or
passage for air, gases or the like, such as a stack or chimney.
END_STATUTE

Sec. 5. Section 49-802, Arizona Revised Statutes, is amended to read:

START_STATUTE
49-802.

Federal used oil program; incorporation by reference; rulemaking

A. The department
shall administer
a used oil program. the program shall be not
more stringent than
42 United States Code section 6935
, as

amended on January 1, 1997, as the used oil program for this
state. For that purpose,
and
40 Code of Federal
Regulations part 279
.
, as amended on
January 1, 1997,
40 code of federal REGULATION PART 279
is
adopted by reference. For purposes of this program, the United
States, the environmental protection agency and the administrator shall be
applied to mean this state, the department and the director, respectively.

B. The department may adopt rules for the
administration of the federal program. Rules adopted pursuant to
this subsection shall not be more stringent than or conflict with 40 Code of
Federal Regulations part 279. The department shall require an
annual registration fee established by rule for handlers of used oil that are
required to obtain a United States environmental protection agency
identification number pursuant to 40 Code of Federal Regulations part 279. The department
shall deposit, pursuant to sections 35-146 and 35-147, fees in the
solid waste fee fund established by section 49-881.

C. The following requirements apply in addition to
40 Code of Federal Regulations part 279:

1. A used oil collection center, as defined in 40
Code of Federal Regulations part 279, shall register with the department by
obtaining an identification number from the department. A request
for an identification number shall include:

(a) The company name.

(b) The name of the owner of the company.

(c) The mailing address and telephone number of the
company.

(d) The location of the collection center.

(e) A description of the type of used oil activity
at the company.

2. A person who sends used oil fuel to a person who
burns the used oil fuel for energy recovery shall certify to the burner that
the used oil fuel has been analyzed or otherwise tested for compliance with the
used oil specifications in 40 Code of Federal Regulations part 279.

3. Each used oil fuel transporter, used oil fuel
marketer and used oil processor and re-refiner, as defined in 40 Code of
Federal Regulations part 279, shall submit to the department a written report
annually. The report shall be submitted within thirty days after the
end of the calendar year to which the report applies, and it shall contain a
copy of the tracking information required to be kept pursuant to 40 Code of
Federal Regulations part 279 or a summary of such tracking information on a
reporting form supplied by the department.

4. Each person who burns used oil fuel in devices
identified in 40 Code of Federal Regulations section 279.61(a)(1) through (3)
shall submit to the department a written annual report. The report
shall be submitted to the department by February 1 for the previous calendar
year and shall contain the following information:

(a) The name, address and telephone number of the
person reporting.

(b) The name, address and telephone number of the
burner facility.

(c) The United States environmental protection
agency identification number of the burner facility.

(d) The total volume of on-specification used oil
burned.

(e) The period being reported.

(f) The total volume of self-generated used oil
burned on site.

(g) The total volume of used oil fuel burned.

(h) A summary of the tracking information required
to be kept pursuant to 40 Code of Federal Regulations part 279.

5. Used oil fuel marketers and used oil fuel burners
shall label all tanks that store on-specification used oil with the words
"on-specification used oil". The department may
sample and test used oil or used oil fuel to determine its properties or
characteristics as prescribed in this article and rules adopted pursuant to
this article.

6. A household "do-it-yourselfer"
used oil generator, as defined under 40 Code of Federal Regulations part 279,
shall send its used oil to a "do-it-yourselfer"
collection station, a household hazardous waste collection center, a used oil
collection center, a used oil fuel marketer or a used oil processor or refiner.

D. In administering this section or in adopting or
administering rules pursuant to this section, the department shall maintain the
level of discretion that is permitted pursuant to applicable federal rules.

E. Any client names or related identifying data
required to be submitted to the department pursuant to this section are
confidential.
END_STATUTE

Sec. 6. Section 49-832, Arizona Revised Statutes,
is amended to read:

START_STATUTE
49-832.

Administration and enforcement by department of environmental
quality; powers and duties

A. The department
of environmental
quality
shall administer and oversee the enforcement of this article.

B. In addition to its other powers and duties, the
department shall:

1. Prepare, update and oversee implementation of the
Arizona recycling program consistent with the goals of this article.

2. Designate an Arizona recycling coordinator to
oversee the program.

3. Serve as the agency of this state for the receipt
of monies from the federal government or other public or private institutions.

4. Cooperate with appropriate federal, state,
interstate and local units of government and with appropriate private
organizations in carrying out its duties under this article.

5. Initiate, conduct and support research,
demonstration projects and investigations and monitor all agency research
programs in this state pertaining to recycling and source reduction.

6. Administer and distribute monies in the
recycling

solid waste fee
fund
established by section 49-881
for public education
programs on recycling and source reduction that the department believes will
provide technical assistance for recycling and source reduction, for research
and for other purposes consistent with this article.

7. Administer and distribute monies in the
recycling

solid waste fee
fund
established by section 49-881 that are
designated for the
award of grants established under this article.

8. Adopt rules pursuant to title 41, chapter 6 to
implement, administer and enforce
the provisions of
this
article.

9. Encourage the use of private industry through
contracts for some or all of the requirements of the Arizona recycling program
and other activities as may be considered necessary.

10. Monitor municipalities and counties for
compliance with sections 9-500.07 and 11-269 concerning an
opportunity to engage in recycling and waste reduction.

C. The department of environmental quality, in
consultation with the department of health services regarding matters of public
health significance, shall do both of the following:

1. Initiate, conduct and support research,
demonstration projects and investigations and coordinate all state agency
research programs pertaining to municipal and county solid waste management
systems.

2. Spend monies for studies and research with
respect to the provisions and goals of this article and the rules adopted under
it.
END_STATUTE

Sec. 7. Section 49-836, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-836.

Solid waste landfill disposal fees

A. Each operator of a solid waste landfill or
facility shall make the fee payments required by this section as determined by
the department. Monies from fees shall be deposited in the
recycling fund established by section 49-837 and the
solid
waste fee fund established by section 49-881. Fees shall be
calculated and paid as follows until the effective dates of rules adopted
pursuant to subsection G of this section:

1. A disposal fee of $.25 for each six cubic yards
of uncompacted solid waste, $.25 for each three cubic yards of compacted solid
waste or $.25 per ton of solid waste received at landfills regulated by the
department.
From and after June 30, 2005, all $.25
collected in disposal fees shall be deposited in the recycling fund.

2. A solid waste landfill that receives only waste
generated
on site

on-site

shall compute the fee by using one of the following methods:

(a) By actual volume or weight.

(b) By estimate based on landfill capacity use,
volume or number of waste loads or any other reasonable means for approximating
the volume or weight of disposed waste.

3. Facilities that generate waste from recycling
solid waste, effluent from a secondary wastewater treatment plant or
wastewaters shall pay one-half of the fee calculated pursuant to
paragraph 1 of this subsection. The maximum annual amount paid by a
facility for on-site disposal of waste generated from recycling shall not
exceed $15,000. The fee for these facilities may be computed based
on the dry or dewatered weight or volume of the waste generated from recycling.

B. Each fee payment shall be accompanied by a form
prepared and furnished by the department and completed by the
operator. The form shall state the total volume or weight of solid
waste disposed of at that landfill during the payment period and shall provide
any other information deemed necessary by the department. The form
shall be signed by the operator.

C. A person who for a fee disposes of waste in a
solid waste landfill that is not regulated by the department shall keep
accurate records of the waste disposed of in those landfills and shall remit a
fee to the department at the same rate and in the same manner as provided in
subsection A of this section or rules adopted pursuant to subsection G of this
section.

D. For solid waste landfills that are operated
pursuant to section 49-741 and that do not have on-site operators
or scales, the fee shall be based on a formula that multiplies the population
of the political subdivisions served by the landfill by $.07.
From and after June 30, 2005, all fees shall be deposited in the
recycling fund.
The fee shall be paid in the same manner as
provided in subsection A of this section or rules adopted pursuant to
subsection G of this section.

E. This section or any rules adopted pursuant to
subsection G of this section do not apply to:

1. Persons disposing of a load containing less than
six cubic yards of uncompacted solid waste or three cubic yards of compacted
solid waste.

2. A site used solely for the reclamation of land
through the introduction of landscaping rubble or inert material.

3. Material produced in connection with a mining or
metallurgical operation.

F. Solid waste management service companies and
agencies affected by the landfill disposal fees established by this section may
adjust the fees charged to customers by passing through to the customers the
additional costs.

G. The department shall establish by rule the solid
waste landfill disposal fees.
END_STATUTE

Sec.
8.
Repeal;
transfer of monies

A. Section 49-837,
Arizona Revised Statutes, is repealed.

B. All unexpended and
unencumbered monies remaining in the recycling fund established by section 49-837,
Arizona Revised Statutes, as repealed by subsection A of this section, are
transferred to the solid waste fee fund established by section 49-881,
Arizona Revised Statutes, as amended by this act, on the effective date of this
section.

Sec. 9. Section 49-881, Arizona Revised
Statutes, is amended to read:

START_STATUTE
49-881.

Solid waste fee fund; uses; exemption

A. The solid waste fee fund is
established. The director shall administer the fund. The
fund consists of legislative appropriations, donations, gifts, grants,
in lieu contributions pursuant to section 9-511.03,

registration fees collected pursuant to sections 44-1303 and 44-1304.01,
waste tire administrative monies distributed pursuant to section 44-1305,
subsection B, paragraph 1,
lead acid battery collection and
recycling fees collected pursuant to section 44-1322,
licensure
fees collected pursuant to section 49-104, subsection B, paragraph 14,
subdivision (b), solid waste general permit fees collected pursuant to section
49-706, solid waste landfill registration fees from section 49-747,
licensure fees collected pursuant to section 49-761, subsection D,
paragraphs 2 and 3 and subsections H, J and M, solid waste fees collected
pursuant to section 49-762.03, subsection F,
used oil
handler fees collected pursuant to
section 49-802, subsection B,
special waste management plan fees collected pursuant to section 49-857,
special waste management fees collected pursuant to section 49-863,
private consultants expedited plan review fees collected pursuant to section 49-762.03,
subsection G, self-certification filing fees collected pursuant to
section 49-762.05, subsection H, solid waste landfill disposal fees
collected pursuant to section 49-836, special waste fees collected
pursuant to section 49-855
, subsection C, paragraph 2

and coal combustion residuals permit processing fees and annual fees collected
pursuant to section 49-891.

B. Monies in the fund are subject to legislative
appropriation for solid waste control programs established in the funding
sources pursuant to subsection A of this section
,

and
as determined by the director
.

and for the following purposes:

1. Grants to or contracts with
political subdivisions, nonprofit organizations or private enterprise for
research, demonstration projects, new technologies, market development and
source reduction studies and implementation of the recommendations or reports
prepared pursuant to article 8 of this chapter.

2. Public information, public
education and technical assistance programs concerning litter control,
recycling and source reduction. In making expenditures pursuant to this
paragraph, the director shall ensure that counties WITH a population of less
than five hundred thousand persons receive benefits in proportion to their
contributions to the fund.

3. The collection and administration
of monies in the fund.

4. The administration of article 8 of
this chapter.

5. The administration of the Arizona
commerce authority's recycled market development program. At the end of each
fiscal year, any MONIEs not spent by the Arizona commerce authority for this
purpose revert to the solid waste fee fund.

6. The department's solid waste
control program activities prescribed in this chapter and title 44.

C. On notice from the director, the state treasurer
shall invest and divest monies in the fund as provided in section 35-313,
and monies earned from investment shall be credited to the
fund. Monies deposited in the fund are exempt from the provisions of
section 35-190 relating to lapsing of appropriations.

D. The director shall appoint an
advisory committee to advise the director on the use of monies in the fund for
recycling grants, recycling education and technical assistance in managing or
establishing recycling programs. The advisory committee shall consist of two
representatives from private solid waste collection businesses, two
representatives from private solid waste recycling businesses, four
representatives from political subdivisions that have implemented recycling and
source reduction programs, at least one of whom resides in a county with a
population of less than five hundred thousand persons and one representative of
the general public. The members of the committee serve at the pleasure of the
director and are not eligible to receive compensation.

END_STATUTE

Sec. 10. Laws 2021, chapter 27, section 9, as
amended by Laws 2023, chapter 78, section 1, is amended to read:

Sec. 9.
Conditional
enactment

A. Section 49-542, Arizona Revised Statutes, as
amended by Laws

2021, chapter 27, section 3, and section
49-542.03, Arizona Revised Statutes, as amended by Laws 2021, chapter 27,
section 4, do not become effective unless on or before July 1,
2027
2029
the United States environmental protection agency
approves the proposed modifications to the vehicle emissions testing program
protocols as part of the state implementation plan for air quality.

B. The director of the department of environmental
quality shall notify in writing the director of the Arizona legislative council
on or before September 1,
2027
2029
either:

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

2. That the condition was not met.

Sec. 11. Laws 2017, chapter 295, section 3, as
amended by Laws 2022, chapter 177, section 12 and Laws 2024, chapter 70,
section 1, is amended to read:

Sec. 3.
Conditional
enactment; notice

A. Section 3-3493, Arizona Revised Statutes, as
amended by Laws 2017, chapter 295, section 2, does not become effective unless
on or before July 1,
2027
2029
the
United States environmental protection agency approves the proposed
modifications to the gasoline fuel formulation requirements as part of the
state implementation plan for air quality.

B. The director of the department of environmental
quality shall notify in writing the director of the Arizona legislative council
on or before October 1,
2027
2029
either:

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

2. That the condition was not met.

APPROVED BY THE GOVERNOR JUNE 19, 2026.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.