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WQARF Reform Legislation of 1997

Water Quality Assurance Revolving Fund (WQARF) program underwent significant revisions as a result of the WQARF Reform Legislation of 1997 (Laws 1997, Chapter 287). Major provisions include: 

• Proportionate Liability — Liability for the contaminated site’s cleanup costs is proportionate rather than joint (as it is in federal regulations). These cleanup costs are proportionally allocated among responsible parties by ADEQ using a process defined in statute. ADEQ is responsible for identifying responsible parties and allocating cleanup costs. A non-judicial allocation hearing process is available for dispute resolution. 

• Settlements — To provide a favorable alternative to litigation, ADEQ is authorized to offer a 25 percent discount to responsible parties who settle after they’ve been notified of their proportionate share of liability.

• Program Funding — The adoption of a proportionate liability system increased the need for adequate and dedicated program funding. To ensure such funding and pay allocated, non-collectable orphan shares, WQARF reform legislation provides for an annual $18 million expenditure. The program is dependent upon the direct transfer of funds from legislative appropriations, corporate income tax, cost recovery and special fees. 

• Site Prioritization — Sites are prioritized with a greater emphasis on risk to human health. The statute provides a process to score sites according to actual and potential exposure to hazardous substances. This score and other factors are considered when prioritizing the expenditure of WQARF funds. 

• Cleanup Methods and Goals — WQARF reform provides increased flexibility in selecting groundwater cleanup methods and levels. ADEQ adopted and applies remedy selection rules that incorporates an analysis of a range of cleanup options. The statute clarifies that the cleanup need not always result in achieving drinking water standards within the aquifer. 

• Community Involvement — Enhanced community involvement is required at all stages of cleanup. The statute establishes a process to encourage active community involvement, including provisions for notices, plans and the formation of a Community Advisory Board (CAB) for each site.

For a more detailed look at the WQARF program see our WQARF Registry>