environment; FY2026

HB 2965 is a fiscal year 2025-2026 budget bill that reallocates environmental and water protection funds. It allows $336,000 from the Arizona Water Protection Fund for department administrative costs, permits $6.5 million from the Underground Storage Tank Fund for border sewage remediation (including Naco), and limits water quality fund appropriations to $15 million. The bill also reduces vehicle emissions testing fees by 5% in "Area A" (defined in existing law) and exempts environmental agencies from rulemaking requirements for fee adjustments until July 2026. The bill was passed by the legislature but vetoed by the governor on June 25, 2025, and did not become law.