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SB 1837

2026-2027; environment

57th Legislature - Second Regular Session Introduced by Dave Farnsworth and 1 co-sponsor

SB 1837 reallocates and caps funding to cover DEQ administrative costs and border sewage remediation, while preserving fees and limiting WQARF General Fund use to $15 million for F

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Bill Summary · SB 1837

Summary of SB 1837 (57th Legislature, 2nd Regular Session – Arizona)

Purpose and Intent

SB 1837 proposes a set of targeted appropriations and administrative adjustments within several environmental programs and funds for fiscal year 2026-2027. The bill primarily reallocates existing fund balances and preserves current fee levels, with emphasis on:
- Administrative costs for state environmental agencies.
- Remediation of sewage discharge issues in border areas (notably Naco, AZ) and other border regions.
- Legal and administrative funding related to water resources, protections, and pollution control.

Key Provisions

1) Underground Storage Tank (UST) Revolving Fund
- Allowance: The Department of Environmental Quality (DEQ) may use up to $6,531,000 from the UST Revolving Fund for FY 2026-2027.
- Authorized Uses:
- Administrative costs of DEQ.
- Remediation of sewage discharge issues in Naco, AZ, and other border areas.

2) Arizona Water Banking Fund – Legal Fees
- The Arizona Navigable Stream Adjudication Commission (as part of the Water Banking Fund framework) may use appropriations in FY 2026-2027 to pay legal fees.
- Governing statute: Section 45-2425 (Arizona Revised Statutes).

3) Arizona Water Protection Fund – Administrative Costs
- The Arizona Water Protection Fund Commission may grant up to $336,000 (from unobligated balance) to the Department of Water Resources (DWR) for administrative costs in FY 2026-2027.
- Governing statute: Section 45-2111 and related provisions.

4) DEQ Vehicle Emissions Testing Fees – Area A
- For FY 2026-2027, the DEQ Director must maintain vehicle emission test fees in Area A at the level in effect as of June 30, 2025.
- Area A definition: As set forth in §49-541, ARS.

5) General Fund Appropriation Limit for Water Quality
- The total appropriation from the State General Fund to the Water Quality Assurance Revolving Fund (WQARF) for FY 2026-2027 may not exceed $15,000,000.
- Governing statute: §49-282, ARS.

Affected Entities and Impacts

  • State agencies: Department of Environmental Quality (DEQ), Department of Water Resources (DWR), and the Arizona Navigable Stream Adjudication Commission.
  • Programs/funds impacted:
    • Underground Storage Tank Revolving Fund (USTRF)
    • Arizona Water Banking Fund
    • Arizona Water Protection Fund
    • Water Quality Assurance Revolving Fund (WQARF)
  • Public health and environmental impacts:
    • Potentially faster funding for administrative work and border-area sewage remediation.
    • Sustained or stabilized Area A vehicle emissions testing fees, protecting fee predictability for facilities and consumers.
    • Limits on general fund exposure to WQARF, constraining total annual appropriations.

Procedural and Timeline Details

  • Fiscal Year Scope: All provisions apply to FY 2026-2027.
  • Financial controls: Several sections specify “notwithstanding” existing statutes, permitting specific Fund use or funding limits for the specified fiscal year only.
  • Introduction and hearings: SB 1837 was introduced by Senators Farnsworth and Kavanagh (with Rules Committee permission); assigned to the appropriate committee, with action history indicating a First Reading on April 27, 2026.

Notes

  • The bill emphasizes maintaining existing fee structures and leveraging specific environmental funds to address administrative costs and border-area sewage issues.
  • Key fiscal caps include a $15 million cap on WQARF general fund appropriations for FY 2026-2027 and a $336,000 grant from the Water Protection Fund to DWR for administrative costs.

If you’d like, I can add a brief comparison to current law or map out potential fiscal impacts under different assume scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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