ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

 

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


HB 2096: forgivable financial assistance; cesspool remediation

Sponsor: Representative Griffin, LD 19

Committee on Natural Resources, Energy & Water

Overview

Allows the Water Infrastructure Finance Authority (WIFA) to award financial assistance to counties for the purpose of remediating, replacing or closing cesspools that present risks to water sources and public health.

History

WIFA is statutorily charged with the administration of financing for the construction, rehabilitation, acquisition and improvement of water infrastructure across the state. WIFA uses both federal and state funds to award grants, issue bonds and enter into loan agreements.

WIFA administers both the Clean Water Revolving Fund and Drinking Water Revolving Fund, which exist to assist eligible entities in complying with water quality standards including but not limited to the Safe Drinking Water Act and Clean Water Act (A.R.S. §§ 49- 1203, 49-1203.01, 49- 1222, 49- 1242).

Current Arizona Department of Environmental Quality (ADEQ) rules prohibit the construction and use of cesspools for sewage disposal due to groundwater contamination risks.

Cesspool is defined as a pit, collection structure or subsurface fluid distribution system, which may or may not be partially lined, that receives discharged sewage. A cesspool is not an on-site wastewater treatment facility, such as a septic tank, vault, or other structure permitted by ADEQ (A.A.C. R18-9-101, R18-9-A309).

Provisions

1.   Allows a county to apply for and receive financial assistance from WIFA for the remediation, closure or replacement of cesspools that present a risk to groundwater, surface water or public health. (Sec. 1)

2.   Directs WIFA to award financial assistance using monies from the Clean Water Revolving Fund or the Drinking Water Revolving Fund. (Sec. 1)

3.   Specifies that financial assistance received may be used only for projects that eliminate existing cesspools and replace the cesspool with an on-site wastewater system approved by ADEQ or that has a connection to a wastewater treatment facility. (Sec. 1)

4.   Requires a county that receives such financial assistance to prioritize the remediation, closure or replacement of cesspools that are located in areas that:

a.   have known groundwater vulnerability;

b.   are near surface waters; or

c. are in communities with low-to-moderate income households. (Sec. 1)

5. Allows a county to establish income-based eligibility criteria for owner-occupied properties but prohibits the application of means testing to the remediation of abandoned or uninhabitable properties. (Sec. 1)

6.   Requires a county coordinate with ADEQ to ensure that each project that receives financial assistance complies with the county's water quality management plan. (Sec. 1)

7.   Specifies that a county that receives financial assistance is not required to obtain voter approval to accept the financial assistance. (Sec. 1)

8.   Expands WIFA's powers to include awarding financial assistance for the remediation, closure or replacement of cesspools. (Sec. 2)

9.   Requires the WIFA Board to provide an annual report summarizing financial assistance awarded for the closure or remediation of cesspools and that contains certain outlined data. (Sec. 3)

10.  Expands authorized uses of monies in the Clean Water Revolving Fund and the Drinking Water Revolving Fund to include funding of financial assistance for remediation and closure of cesspools. (Sec. 4, 5)

11.  Contains a legislative findings and intent clause. (Sec. 6)

12.  Makes technical and conforming changes. (Sec. 1, 2, 5)

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16.  Initials CW                    HB 2096

17.  1/16/2026 Page 0           Natural Resources, Energy & Water

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