Bill
HB 4144
The bill provides targeted FY2027 funding and fee stability for environmental programs, allowing ADEQ administrative use of funds and border-area remediation, while capping general
Date introduced: 2026-04-27
Sponsor: Representative Livingston (and co-sponsors Carbone, Montenegro, Willoughby, Neal Carter)
Committee: Appropriations
Purpose: The bill makes targeted appropriations and policy adjustments across several environmental programs to support the FY 2027 budget. It focuses on funding administrative costs, border-area environmental remediation, legal fees, and maintaining certain fee levels and funding caps.
Main purposes and intent
- Provide additional appropriations and clarify use of specified environmental funds for FY 2026-2027 (FY 2027 budget year).
- Ensure continued administration and certain programmatic activities within the Arizona Department of Environmental Quality (ADEQ) and other environmental agencies.
Key provisions and changes
1) Underground Storage Tank Revolving Fund (USTRF)
- Section 1: Allows ADEQ to use up to $6,531,000 from the USTRF in FY 2026-2027.
- Authorized uses:
- Administrative costs of ADEQ.
- Remediating sewage discharge issues in Naco, AZ, and other border areas (environmental issues near the border).
2) Arizona Water Banking Fund – Navigable Stream Adjudication Commission
- Section 2: Monies appropriated from the Arizona Water Banking Fund may be used in FY 2026-2027 to pay legal fees for the Arizona navigable stream adjudication commission.
3) Arizona Water Protection Fund (AWPF)
- Section 3: The AWPF Commission may grant up to $336,000 of unobligated AWPF balance to the Department of Water Resources (ADWR) to pay for ADWR administrative costs in FY 2026-2027.
4) Vehicle Emissions Testing Fees – Area A
- Section 4: ADEQ director must maintain vehicle emissions testing fees at Area A emission fee levels as of June 30, 2025, for FY 2026-2027.
- Note: “Area A” refers to a defined geographic area under the state vehicle emissions program (consistent with existing statute 49-541).
5) Water Quality Assurance Revolving Fund (WQARF)
- Section 5: The appropriation from the state general fund to WQARF for FY 2026-2027 is capped at $15,000,000.
- This sets an overall annual limit on general fund transfers to WQARF.
Who is affected
- ADEQ: Direct access to funds for administration and border-area sewage remediation; responsible for maintaining Area A emissions fee levels.
- ADWR: Receives potential AWPF grants for administrative costs.
- Arizona Navigable Stream Adjudication Commission: Eligible to use AWBF-derived funds to pay legal fees.
- Area A vehicle owners/vehicle emissions program participants: Impact depends on maintaining fee levels at the 2025 baseline.
- General fund management: Overall caps and reallocation affect budgeting for WQARF and other environmental programs.
Procedural/timeline notes
- The bill specifies fiscal year 2026-2027 (FY 2027) as the effective period for these appropriations and fee level requirements.
- Any changes are framed as supplements to the ongoing FY 2027 budget process, within the scope of the appropriations act and related session laws (Session Law references noted for each fund/program).
Overall impact
- Provides targeted funding flexibility for ADEQ and related agencies to address administrative needs and border environmental issues.
- Clarifies and stabilizes funding pathways (legal fees, administrative costs) and fee levels for specific programs in the FY 2027 budget.
- Establishes expenditure caps to control state general fund outlays for WQARF while allowing necessary administrative support for ADWR.
Compiled from official sources — confirm details with the bill’s official record.
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