Department of Economic and Community Development Peter Simmons and Brian Dillon Office of Brownfield Remediation and Development - Office of Responsible Development In the Business of Building Your Community www.ctbrownfields.gov
Jan 03, 2016
Department of Economic and Community Development
Peter Simmons and Brian DillonOffice of Brownfield Remediation and Development - Office of Responsible Development
In the Business of Building Your Community
www.ctbrownfields.gov
Brownfield Challenges
Brownfields are real estate projects with a
“clean-up” component• More complex• Need Predictability• Smart growth in a small state
ORD - OBRD www.ctbrownfields.gov
Who Do You Call? DECD
DEP
EPA DPH
CDA
ORD - OBRD www.ctbrownfields.gov
To develop and implement strategies that:
Attract and retain business
Revitalize neighborhoods
Ensure quality housing
Foster responsible growth
DECD Mission
ORD - OBRD www.ctbrownfields.gov
DECD Mission
ORD - OBRD www.ctbrownfields.gov
• Discretionary Financial Assistance and Technical Support to support municipalities, businesses and organizations, such as…
• Economic Development• Municipal Development Program, formerly known as “Industrial Parks”• Infrastructure Development• Manufacturer’s Assistance Act (MAA)/CDA Collaboration
• Community Development• HUD Small Cities Program• Urban Act/Small Town Economic Assistance Program (STEAP)
• Housing Development• HOME• FLEX• CHFA Collaboration
• Brownfields Redevelopment
Responsible Growth (RG) is economic, social and environmental development that incorporates land use and resources in ways that enhance the long-term quality of life for current and future generations of Connecticut residents. Responsible growth supports a vibrant and resilient economy, preserves natural resources, and maximizes previous investments in existing infrastructure while preserving distinctive landscapes, historic structures, landmarks, and villages. Brownfields are a big part of responsible growth strategies.
Definitions
ORD - OBRD www.ctbrownfields.gov
• BLUF: the balance between our growth and conservation needs
• The “nutshell”• Focus efforts where previous investment has occurred• Brownfield reuse• In-fill development (allow higher densities land use)• Integrated Transportation: improve public transit• Mixed use development• Regional Collaboration
Responsible Growth
ORD - OBRD www.ctbrownfields.gov
• July 2009 DECD Reorganization consolidated OBRD with ORD
• OBRD is lead agency (one stop) for assistance - financial & technical
• Return brownfield properties to productive use• Promote responsible growth principles• Strengthen public-private partnerships by
providing solutions, timely resources, and expertise
OBRD
ORD - OBRD www.ctbrownfields.gov
Real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous waste substance, pollutant, or contaminant
US: 600,000 6,000 (1%) Superfund NPL CT: ≈ 13,000 18 Superfund NPL, 3 done
EPA Definition of Brownfields
ORD - OBRD www.ctbrownfields.gov
• Urban Sites Remedial Action Program• Special Contaminated Property Remediation & Insurance Fund• Dry Cleaning Establishment Remediation Fund• EPA RLFs - Hartford & Statewide• EPA Site Assessment Program• Urban & Industrial Site Reinvest. Tax Credit• Municipal Brownfield Pilots• Regional Brownfield Redevelopment Loan Fund• Abandoned Brownfield Program
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
Urban Site Remedial Action Program (USRAP)
Seed Capital: DEP may pursue PRP Available for projects in Distressed Municipalities DECD/DEP Program Investigation, remediation Available funds: $2,000,000 (bond capacity)
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
Special Contaminated Properties Remediation and Insurance Fund (SCPRIF)
Short-term Loans Municipalities, Businesses, Individuals Investigation, remediation, demolition Available funds: $486,000
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
Dry Cleaning Establishment Remediation Fund
• Administered by DECD under CGS. 12-263m • Provides up to $300,000 for the remediation of active sites• All funding is provided by the State Dry Cleaning Surcharge• Operators must be current on all state filings DRS, DOL etc.• Program is currently over-subscribed with a backlog of over
30 applications pending review by DECD• DECD is working with DEP to prioritize sites for funding.• DECD expects to have another application round in late
2010
EPA Revolving Loan Fund
Loans/Grants to municipalities and businesses Remediation Available funds
• Hazardous - $833,000
• Petroleum - $35,000
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
EPA Site Assessment Grants
Sites recommended by Municipalities Investigation prior to cleanup and reuse Available funds
• Hazardous - $200,000
• Petroleum - $200,000
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
Municipal Pilot Program – $2.25M
• 5 Awards in October 2008(2) Cities with population > 100,000
• Stamford – Harbor Point Project, 80 acre mixed use• Waterbury – Cherry St. Industrial Park, Bender Plumbing expansion
(1) Small City with population 50,000 – 100,000• Norwalk – Norwalk Train Station, mixed use TOD
(1) Town with population under 50,000• Redding – Georgetown Development, 51 acre, mixed use
(1) Selected by the Commissioner any size • Shelton – former Axton Cross site – to be privately developed
• October 2009: $2.25M approved for new funding round • Fifteen applications received – 5 will be chosen• Currently being processed
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
New for 2009/2010
1. Regional Brownfield Loan Program2. Abandoned Brownfield Clean Up Program3. Changes to Floodplain Management Requirements
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
OBRD Funding Programs
ORD - OBRD www.ctbrownfields.gov
Regional Brownfield Loan Program – $2.5M
• Approved by Bond Commission October 30th, 2009• New targeted statewide brownfield redevelopment
loan program• Loans to assist returning brownfield sites to
productive use• Loan proceeds will revolve to provide assistance to
additional sites• Applications accepted on an ongoing basis
Clarified LEP involvement in Milestone Requirements
• 2 yr requirement to document investigation of site is complete
• 3 yr requirement to document remediation of the site has been initiated (submit cleanup plan)
• Milestone documents must be approved in writing by LEP
2007-Transfer Act Amended
ORD - OBRD www.ctbrownfields.gov
• Major Categories of the Act– Floodplain Management– Transfer Act (exemptions, cost recovery & new
requirements)– Municipal Liability Relief– Abandoned Brownfields Cleanup Program– Expansion of the Voluntary Program
2009 Brownfield bill (PA 09-235)
ORD - OBRD www.ctbrownfields.gov
• Transfer Act – complete cleanup
• Encourage Municipalities to take control– Reduce fear of getting stuck w/ cleanup liability
• Voluntary Cleanup – open it to anyone
• Abandoned Brownfields – progress at the worst first
2009 Brownfield Bill Themes
ORD - OBRD www.ctbrownfields.gov
Municipalities - New Exemptions:
• exemption for certain municipal “transfers,” 22a-134(1)(B)
• formerly just for tax foreclosure
• Now enhanced to include:– Acquisition by eminent domain process– Subsequent transfer if to innocent new owner who
remediates under Voluntary Cleanup law (22a-133x)
2009 - Transfer Act
ORD - OBRD www.ctbrownfields.gov
• “Municipality” includes related entities – Economic Development Agency or entity under
CGS chapter 130 or 132– Nonprofit economic development corporation
formed to promote common good of a muni• funded directly or by in-kind services of a muni,
– nonstock corp or LLC controlled/established by a muni, econ development agency or entity under CGS chapter 130 or 132
2009 - Transfer Act (cont’d)
ORD - OBRD www.ctbrownfields.gov
• Transfers after 10/1/09– 8 year requirement– achieve Final Verification or Interim Verification
• New “Interim Verification”– Soil: achieve soil cleanup standards/remedies– Groundwater: if don’t achieve stds by 8 yrs, at least
• ensure no exposures,
• have GW remedy in operation,
• LEP approved O&M plan must be implemented
Transfer Act – New Requirements
ORD - OBRD www.ctbrownfields.gov
• Remediation Grants from DECD: no additional liability if Muni is innocent party (32-9ee)
• Investigation: Municipality will not incur liability for cleanup by entering property for investigation (22a-133dd)
• Muni not liable to owner or 3rd party for existing pollution muni didn’t create or negligently or recklessly exacerbate (22a-133dd)
Municipal Liability Relief
ORD - OBRD www.ctbrownfields.gov
• 2009 law, Administered by DECD, consults DEP • Available for White Knight redevelopers• Abandoned (since 1999) Brownfields• Need significant economic benefits• White Knight must cleanup on-site & stop
migration off the site• White Knight not responsible for off-site cleanup
Abandoned Brownfield Cleanup Program
ORD - OBRD www.ctbrownfields.gov
• For Non-responsible parties – certainty for a completed remediation, no future surprises
• 22a-133aa is transferable, discretionary, has many protections, and costs 3% of property value – Brownfields: Covenants can be approved early in
investigation phase!
– free for municipalities; other parties can schedule payments over time!
• 22a-133bb: non-transferable, less protections, free
Covenants Not to Sue
ORD - OBRD www.ctbrownfields.gov
• Innocent Land Owners will not be liable for State actions taken to contain, remove or mitigate a spill
• Innocent Land Owners will not be liable for any order of the Commissioner to abate or remediate a spill or discharge (which order was issued on or before August 1990)
• Innocent Land Owners are defined in CGS §22a-452d
State Liability Relief
ORD - OBRD www.ctbrownfields.gov
Third-party liability is limited for non-responsible parties that own a contaminated property and investigate and remediate such properties
CGS § 22a-133ee– No owner shall be liable for any costs or damages to any person
other than this state, any other state or the federal government, with respect to any pollution or source of pollution on or emanating from such owner's real property that occurred or existed prior to such owner taking title to such property
Third Party Liability Relief
ORD - OBRD www.ctbrownfields.gov
• An Act concerning state funding of affordable housing located in a five-hundred-year flood plain.
• Three exceptions to prohibition against construction/rehabilitation of affordable housing at or below 500-year flood plain:
1. DECD’s current affordable housing appeals list;
2. Adaptive reuse of existing structures; and
3. Demolition of existing structures and new low/mod income housing.
• Projects can be undertaken only after certification that there will be no significant flood impacts and risks.
2010 New Legislation - SB 302
ORD - OBRD www.ctbrownfields.gov
• An Act concerning remediation accounts of dry cleaning establishments and regulated activity on sites undergoing remedial action.
• Permission to conduct a regulated activity in an aquifer protection area where hazardous waste is being cleaned, as long as certain criteria are satisfied
• Owners of sites formerly occupied by a dry cleaning establishment are eligible for grants from the dry cleaning establishment remediation account provided certain criteria are satisfied.
2010 New Legislation – PA 10-86 (HB 5119)
ORD - OBRD www.ctbrownfields.gov
• An Act concerning brownfield remediation liability
• Expands scope of brownfield programs.
• Allows funds from USRAP and SCPRIF to be used for other newer BF programs.
• Ability to fix assessment on contaminated properties before remediation.
• Forgiveness of back taxes on contaminated property slated for clean up under a state-approved plan.
• Permission with conditions for regulated activities on municipally-owned sites undergoing remediation in aquifer protection areas.
• Establishes 11-member working group to examine brownfield issues - report findings by January 15, 2011.
2010 New Legislation – (HB 5436)
ORD - OBRD www.ctbrownfields.gov
Office of Brownfield Remediation and Development www.ctbrownfields.gov
www.ctbrownfields.gov
ORD - OBRD www.ctbrownfields.gov
OBRD -DECD Contact
•Peter Simmons •Executive Director, Office of Responsible Development
•(860) 270-8149
•Brian Dillon•Program Manager, OBRD, Office of Responsible Development
•(860) 270-8156
www.ctbrownfields.gov
ORD - OBRD www.ctbrownfields.gov