Brownfields Tax Incentive A Georgia law passed in 2003 provides tax relief for properties where costs were incurred to obtain a brownfields limitation of liability. Cost documentation is submitted to EPD for review, and a certification of eligible costs is issued to the prospective purchaser who then applies to the local taxing authority for the preferential brownfield assessment. Preferential brownfield assessment provides tax savings by freezing the ad valorem value of the property for up to ten years (unless certified costs are recovered sooner). A recent amendment allows extension of preferential assessment (by a maximum of 5 years) for brownfields properties where construction ceased for 180 days or more and later resumed. Costs to Participate in the Program The application for a brownfields limitation of liability must be accompanied by an initial application review fee of $3,000. This non‐ refundable fee covers the costs incurred by the division during the review of the application. Application reviews are tracked on an hourly basis through issuance of the final limitation of liability certificate, and applicants are invoiced for review costs that exceed the initial fee. Brownfields Program Results Since the program began, over 450 applications for limitations of liability have been received. Investigation and cleanup have been completed at over 260 brownfields. These properties represent over 2,500 acres where prospective purchasers have certified that soil is in compliance with risk reduction standards. At two thirds of these properties, compliance with residential standards was achieved. Applicable Laws and Rules: Georgia’s Brownfields Law: Hazardous Site Reuse and Redevelopment Act O.C.G.A. §12‐8‐200, et seq. Georgia’s State Superfund Law and Rules: Hazardous Site Response Act O.C.G.A. §12‐8‐90, et seq. Rules for Hazardous Site Response Chapter 391‐3‐19 Environmental Covenants: Uniform Environmental Covenants Act O.C.G.A. § 44‐16‐1 Brownfields Tax Incentive: Ad Valorem Taxation of Property O.C.G.A. §48‐5‐1, et seq. Brownfields Eligibility Form: www.gaepd.org/Documents/brownfields.html Contact: Madeleine Kellam Brownfields Coordinator Georgia Environmental Protection Division Response and Remediation Program 2 Martin Luther King Jr. Drive SE Suite 1054 East Tower Atlanta, Georgia 30334 (404) 656‐2833 State of Georgia Department of Natural Resources Environmental Protection Division Brownfields Redevelopment in Georgia The Georgia Brownfields Program
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BrownfieldsTaxIncentiveA Georgia law passed in 2003 provides taxreliefforpropertieswherecostswereincurredto obtain a brownfields limitation of liability.Cost documentation is submitted to EPD forreview, and a certification of eligible costs isissued to the prospective purchaser who thenapplies to the local taxing authority for thepreferentialbrownfieldassessment.
Preferential brownfield assessment providestaxsavingsbyfreezingtheadvaloremvalueofthe property for up to ten years (unlesscertified costs are recovered sooner).A recentamendment allows extension of preferentialassessment (by a maximum of 5 years) forbrownfields properties where constructionceasedfor180daysormoreandlaterresumed.
CoststoParticipateintheProgramThe application for a brownfields limitation ofliability must be accompanied by an initialapplication review fee of $3,000. This non‐refundablefeecoversthecostsincurredbythedivision during the review of the application.Application reviews are tracked on an hourlybasisthroughissuanceofthefinallimitationofliability certificate, and applicants are invoicedforreviewcoststhatexceedtheinitialfee.
BrownfieldsProgramResultsSincetheprogrambegan,over450applicationsfor limitations of liability have been received.Investigationandcleanuphavebeencompletedat over 260 brownfields. These propertiesrepresent over 2,500 acres where prospectivepurchasers have certified that soil is incompliance with risk reduction standards. Attwothirdsoftheseproperties,compliancewithresidentialstandardswasachieved.
ApplicableLawsandRules:
Georgia’sBrownfieldsLaw:
HazardousSiteReuseandRedevelopmentActO.C.G.A.§12‐8‐200,etseq.
Georgia’sStateSuperfundLawandRules:
HazardousSiteResponseActO.C.G.A.§12‐8‐90,etseq.
RulesforHazardousSiteResponseChapter391‐3‐19
EnvironmentalCovenants:
UniformEnvironmentalCovenantsActO.C.G.A.§44‐16‐1
BrownfieldsTaxIncentive:
AdValoremTaxationofPropertyO.C.G.A.§48‐5‐1,etseq.
BrownfieldsEligibilityForm:
www.gaepd.org/Documents/brownfields.htmlContact:
MadeleineKellamBrownfieldsCoordinatorGeorgiaEnvironmentalProtectionDivisionResponseandRemediationProgram2MartinLutherKingJr.DriveSESuite1054EastTowerAtlanta,Georgia30334(404)656‐2833
StateofGeorgia
DepartmentofNaturalResourcesEnvironmentalProtectionDivision
Brownfields Redevelopment in
Georgia
The Georgia Brownfields Program
TheGeorgiaBrownfieldsProgram Brownfields come inmany forms, from cornergas stations to sprawling industrial facilities.Some have extensive contamination requiringsignificantresourcesforcleanup;othersmaybeminimallyimpacted.Regardlessoftheextentofcontamination, uncertainty regarding financialand legal liabilities can affect the market forbrownfields,eventhosewithgreatlocationsorotherdesirablefeatures.TheGeorgiaEnvironmentalProtectionDivision(EPD) established the Brownfields Program in2003 to address economic and environmentalchallenges posed by contaminated properties.The program facilitates voluntary cleanup andreuse of brownfields by offering liabilityprotection and other incentives designed toimprovedemandfortheseproperties.With the goal of fostering revitalization, theprogram uses a collaborative, streamlinedapproach to the oversight of site investigationand cleanup. This approach can accommodatethe time constraints and complexities of realestate transactions and redevelopmentprojects.Under the Brownfields Program, prospectivepurchasers investigate contaminant releasesandconductsoilandsourcematerialcleanupifneeded. In return, prospective purchasers arerelieved of liability for groundwater cleanupand third party claims arising from pastreleases.This limitationof liability transfers tosubsequentpurchasersoftheproperty.A companion property tax law providespreferential ad valorem tax assessment forbrownfields, creating opportunities forrecovery of investigation and cleanup costs.
PropertyEligibility
Propertiesmusthaveapre‐existingreleaseofhazardousconstituentsorpetroleum.
Any underground storage tank or statesuperfundprogramliensmustbesatisfied.
Properties listedon thenationalprioritieslist or undergoing response activitiesunderfederalorderarenoteligible.
Hazardouswastefacilitiesarenoteligible.
ProspectivePurchaserEligibility Persons “contributing to a release” under
thestatesuperfundlawarenoteligible. Purchasermustnotberelatedtoaperson
contributingtoarelease. Purchaser must not be in violation of
environmentallaws.
TheBrownfieldsApplication
Prospective purchasers may apply for alimitation of liability by submitting either acorrective action plan (PPCAP) or acompliance status report (PPCSR) prior topurchasing an eligible property. A non‐refundable$3,000applicationreviewfeemustaccompany the application. The BrownfieldEligibilityForm,whichcanbe foundonEPD’swebsite, should also be completed andincludedintheapplication.
CorrectiveActionPlanThe corrective action plan application isappropriate for most properties. The PPCAPshouldprovideaplanforsitecharacterization,identify a preferred method for soil cleanupshould it prove necessary, and provide aschedulethroughcompletionofthePPCSR.
ComplianceStatusReportOnce site investigation and cleanup arecomplete,aPPCSRdocumentingcomplianceofsoil and source material with cleanupstandards is filed. For some properties, theremaybesufficientsamplingdataatthetimethebrownfields application is filed to documentcompliance, andaPPCSRcanbesubmittedastheapplicationinthesecases.
LimitationofLiabilityThe limitation of liability takes effect uponapproval of the PPCAP or state concurrencewiththecertificationofcompliance,whicheverfirst occurs. Prospective purchasers are notrequired to perform corrective action forgroundwaterandarenotliabletothirdpartiesforclaimsresultingfrompre‐existingreleases.The limitation of liability automaticallytransferstosuccessors intitle(excludingonlysuccessors“contributingtoarelease”).
CleanupStandards
Soil and sourcematerialmust be brought intocompliance with risk reduction standardspromulgated under the state superfund law.Therearefiveavailablecleanupstandards:
Type1Residentialstandardwithdefaultassumptions.
Type2Residentialstandardwithsite‐specificassumptions.
Type3Nonresidentialstandardwithdefaultassumptions.
Type4Nonresidentialstandardwithsite‐specificassumptions.
Type5Allowsuseofinstitutionaland/orengineeringcontrolswithmonitoring,asappropriate,forpropertieswhereTypes1‐4arenotpracticable.
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