Ariz. Rev. Stat. § 41-625 – Environmental risk management; purpose; administration

A. Environmental risk management responsibility is established within the department of administration. The department of administration shall use resources from the risk management revolving fund to prevent, manage and remedy environmental damage and health threats associated with property and facilities owned or operated by this state on or at which materials, operations and hazardous wastes are located or conducted, including the following functions:
1. 1. Investigation of release of hazardous substances.
2. 2. Site characterization.
3. 3. Analysis and feasibility studies.
4. 4. Remedial action.
5. 5. Site maintenance.
6. 6. Loss prevention and reduction expenses.
B. The department of administration shall pay from the risk management revolving fund environmental property and environmental liability claims and processing costs including adjusting costs, legal defense costs and attorney fees.
C. Actuarial projections of the costs for environmental property and liability claims shall be obtained each year in the same manner as those for property and casualty claims. Monies requested for the risk management revolving fund as specified in section 41-622, subsection D shall include monies to pay for environmental property and liability claims, lawsuits and costs.