Environment

HB 2641 prohibits local governments, fire departments, and state agencies from using class B firefighting foam containing intentionally added PFAS chemicals during training or testing, effective January 1, 2020. Exceptions allow emergency firefighting, fire prevention, and testing at facilities with proper containment, treatment, and disposal measures. The law specifically targets foam for flammable liquid fires (class B) but does not restrict manufacturing, sale, or emergency use of the foam. It defines PFAS chemicals as fluorinated substances used in firefighting formulations and clarifies that the prohibition applies only to non-emergency purposes.

HB 2428 clarifies jurisdiction over air pollution permits in Arizona, giving the state Department of Environmental Quality primary authority for major sources like power plants and refineries in counties without approved air plans. It allows counties to issue voluntary permits for emission reduction credits related to portable and mobile sources (like vehicles or temporary equipment). This affects local air agencies, businesses needing permits, and entities seeking to certify emission reductions under state law. The bill modifies existing permit procedures without changing pollution standards or creating new emission requirements.

HB 2096 creates a program for Arizona counties to receive **forgivable financial assistance** from the Water Infrastructure Finance Authority to remediate cesspools posing risks to water quality, groundwater, or public health. It directly affects counties with high-risk cesspools, prioritizing projects in groundwater vulnerability zones, near surface waters, or in low-to-moderate income communities. Key provisions include: forgivable principal (no repayment required) for replacing cesspools with approved on-site systems or sewer connections, no voter approval needed for this assistance (unlike standard loans), and mandatory coordination with the Department of Environmental Quality. Counties must use funds exclusively for eliminating existing cesspools and cannot apply income-based eligibility to abandoned properties. The bill is proposed legislation (prefiled in 2025) and not yet enacted.

This bill outlines how specific environmental funds in Arizona can be used during the 2026-2027 fiscal year. It allows money from the underground storage tank fund to cover administrative costs and address sewage discharge problems in border areas like Naco. The legislation also permits the use of water banking and water protection funds to pay legal fees and cover departmental administrative expenses. Additionally, it sets a $15 million spending cap for the water quality assurance revolving fund and keeps vehicle emissions testing fees at their 2025 levels. Although the bill passed the legislature, it was vetoed by the Governor.

SB 1503 requires Arizona public pension funds to vote shares solely in the economic interest of plan participants and beneficiaries, directly affecting state-run pension managers and proxy advisory firms. It mandates that if a pension fund votes against a company's board recommendation (with majority independent directors), it must provide a documented economic analysis proving the vote aligns with financial goals, not environmental or ideological aims. Funds must annually report such votes and analyses to the state treasurer and back-test their economic models every three years to ensure accuracy. The bill prohibits using votes to advance non-financial goals unless an economic analysis confirms financial benefits, with strict certification requirements for all documentation.