Arizona opens $1 million brownfields loan fund for contaminated site cleanup

The Arizona Finance Authority has launched a new revolving loan fund backed by a $1 million EPA grant to help clean up contaminated properties across Arizona. The program is designed to make redevelopment cheaper and faster for eligible nonprofits, businesses and governments, with applications opening on a rolling basis Aug. 1, 2026.

Why it matters: - The new Brownfields Revolving Loan Fund could help turn contaminated properties into sites that can be safely reused. - The program is meant to reduce cleanup costs that often block redevelopment and slow local economic growth. - Arizona communities could see new jobs, new businesses and improved public health outcomes if more brownfield sites are remediated and reused.

What happened: - The Arizona Finance Authority launched the Brownfields Revolving Loan Fund Program on Aug. 10, 2026. - The program is funded by a $1 million grant from the U.S. Environmental Protection Agency. - The loan fund will support environmental cleanup activities at contaminated properties in Arizona. - AFA will accept applications on a rolling basis beginning Aug. 1, 2026.

The details: - Eligible borrowers include nonprofits, private for-profit entities, local governments and Tribal governments. - Loans can cover costs to treat, remove or mitigate contamination. - Funding can also pay hazardous material or waste disposal fees. - The program can cover confirmation sampling and other cleanup-related sampling. - Engineering controls are also eligible expenses. - To qualify, a site must enter the Arizona Department of Environmental Quality Voluntary Remediation Program. - Successful applicants must not be potentially liable under section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act. - The program uses a selective loan process. - Potential applicants can review the program guidelines to check eligibility and access the application. - More information is available in AFA's program page.

Between the lines: - Brownfield sites include former industrial, commercial and manufacturing properties, along with abandoned gas stations, dry cleaners, warehouses, rail yards and landfills. - Even properties with limited contamination may need cleanup before reuse. - Pairing the loan fund with ADEQ’s Voluntary Remediation Program is intended to remove financial barriers while keeping cleanup standards high. - The program links environmental remediation with redevelopment, which can make these sites more attractive to investors and local communities.

What's next: - AFA will review applications and issue low-interest loans to qualifying applicants for approved cleanup work. - Eligible projects that complete remediation could move toward redevelopment and reuse. - The program’s impact will depend on how many sites enter the voluntary remediation process and secure financing.

The bottom line: - Arizona is using federal money and low-interest loans to make contaminated land cleanup more affordable and unlock redevelopment across the state.