AZ SB1278

Amends Arizona Revised Statutes Section 28-2416 to allow issuance of alternative fuel vehicle special plates or stickers to owners of vehicles exclusively powered by alternative fuels.

Requires owners to provide proof that their vehicle is exclusively powered by an alternative fuel and incapable of operating on other fuel types, with certificates issued by dealers or the Department of Environmental Quality.

Charges an $8 special plate administration fee, with exemptions for vehicles registered under Section 28-2511; fees deposited into the state highway fund.

Allows vehicles with alternative fuel plates or stickers to use high occupancy vehicle (HOV) lanes at any time regardless of occupancy level, with a $350 civil penalty for misuse.

Grants the Department of Transportation authority to limit issuance of alternative fuel plates and remove HOV lane privileges if necessary.