Official Summary Text
SB1837 - 572R - Senate Fact Sheet
Assigned to
ATT������������������������������������������������������������������������������������������������������������������������������ AS
VETOED
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
VETOED
FACT SHEET FOR
H.B. 4144/S.B. 1837
2026-2027; environment.
Purpose
Makes session
law changes relating to the environment necessary to implement the FY 2027
state budget.
Background
The Arizona
Constitution prohibits substantive law from being included in the general
appropriations, capital outlay appropriations and supplemental appropriations
bills. However, it is often necessary to make statutory and session law changes
to effectuate the budget. Thus, separate bills called budget reconciliation
bills (BRBs) are introduced to enact these provisions. Because BRBs contain
substantive law changes, the Arizona Constitution provides that they become
effective on the general effective date, unless an emergency clause is enacted.
H.B. 4144
contains the budget reconciliation provisions for changes relating to the
environment.
Provisions
1.
Continues to authorize the Arizona Department of Environmental Quality
(ADEQ) to use up to $6,531,000 from the Underground Storage Tank Revolving Fund
in FY 2027 for the administrative costs of ADEQ and for remediating sewage
discharge issues in Naco, Arizona and other border areas of Arizona.
2.
Continues to include legal fees as an authorized use of Arizona Water
Banking Fund monies appropriated to the Arizona Navigable Stream Adjudication
Commission in FY 2027 in addition to the statutorily prescribed purposes of the
Arizona Water Banking Fund.
3.
Continues to authorize the Arizona Water Protection Fund Commission to
grant to the Arizona Department of Water Resources (ADWR) up to $336,000 of the
unobligated balance in the Arizona Water Protection Fund in FY 2027 to pay for
ADWR's FY 2027 administrative costs.
4.
Continues to require the Director of ADEQ, in FY 2027, to maintain fees
for tests conducted in Area A at the Area A emission fee level as of June 30,
2025.
5.
Prohibits the statutorily prescribed appropriation from the state
General Fund to the Water Quality Assurance Revolving Fund for FY 2027 from
exceeding $15,000,000.
6.
Makes conforming changes.
7.
Becomes effective on the general effective date.
Governor's Veto Message
The Governor
indicates in her
veto
message
that H.B. 4144, and this version of the FY 2027 state budget as a
whole, would cause Arizona to default on its debt obligations, endanger
vulnerable children, cut public safety funding and provide tax breaks for billionaires,
data centers and special interests. The Governor outlines her specific
concerns, including cuts to funding for specified agencies and programs, and
invites the Legislature to return to the negotiating table.
House Action
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Senate
Action
APPROP�������� 4/28/26����� DP������ 11-7-0-0������������ ATT���������������� 4/28/26����� DP������������� 6-4-0�������������������������
3
rd
Read��������� 4/29/26����������������� 33-20-7�������������� 3
rd
Read��������� 5/4/26��������������������������� 16-12-2
(H.B. 4144
was substituted for S.B. 1837 on 3
rd
Read)
Vetoed by the Governor 5/5/26
Prepared by
Senate Research
May 7, 2026
SB/hk
Current Bill Text
Read the full stored bill text
SB1837 - 572R - S Ver
Senate Engrossed
2026-2027;
environment
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1837
AN
ACT
appropriating monies; RELATING to the
ENVIRONMENT.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1.
Underground storage tank revolving fund; use of
monies
Notwithstanding any other law, in
fiscal year 2026-2027, the department of environmental quality may use up to
$6,531,000 from the underground storage tank revolving fund established by
section 49-1015, Arizona Revised Statutes, in fiscal year 2026-2027 for:
1. Administrative costs of
the department.
2. Remediating sewage
discharge issues in Naco, Arizona and other border areas of this state.
Sec. 2.
Arizona water
banking fund; use of monies
In addition to the purposes provided
in section 45-2425, Arizona Revised Statutes, monies appropriated to the
Arizona navigable stream adjudication commission from the Arizona water banking
fund established by section 45-2425, Arizona Revised Statutes, may be
used in fiscal year 2026-2027 to pay legal fees.
Sec. 3.
Arizona water protection fund; use of monies
Notwithstanding section 45-2114,
Arizona Revised Statutes, in fiscal year 2026-2027, the Arizona water
protection fund commission may grant to the department of water resources up to
$336,000 of the unobligated balance in the Arizona water protection fund
established by section 45-2111, Arizona Revised Statutes, to pay for
administrative costs of the department in fiscal year 2026-2027.
Sec. 4.
Department of
environmental quality; vehicle emissions testing fees; definition
A. Notwithstanding any
other law, in fiscal year 2026-2027, the director of the department of
environmental quality shall maintain fees for tests conducted in area A at the
area A emission fee level as of June 30, 2025.
B. For the purposes of this
subsection, "area A" has the same meaning prescribed in section
49-541, Arizona Revised Statutes.
Sec. 5.
Appropriation
limit; water quality assurance revolving fund
Notwithstanding section 49-282,
Arizona Revised Statutes, the appropriation from the state general fund to the
water quality assurance revolving fund established by section 49-282,
Arizona Revised Statutes, for fiscal year 2026-2027 may not exceed
$15,000,000.