Emily Murray Allen Matkins Leck Gamble Mallory & Natsis LLP Eddie Arslanian ENVIRON International Corporation March 21, 2012 Legal Issues In Real Estate Development Introduction to Environmental Law USC RED 562
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Emily MurrayAllen Matkins Leck Gamble Mallory & Natsis LLP
Eddie ArslanianENVIRON International Corporation
March 21, 2012
Legal Issues In Real Estate DevelopmentIntroduction to Environmental Law
USC RED 562
INTRODUCTIONS/CLASS OUTLINE
• Introductions• Presentations
• Environmental Law Overview• Environmental Consultant Perspective
• Mock Case Study
ENVIRONMENTAL AGENCIES
Federal• Environmental Protection Agency (EPA)
California• California EPA• Regional Water Quality Control Boards
(RWQCB)• Department of Toxic Substances Control
(DTSC) Local Level
• Local City and County Departments
ENVIRONMENTAL LAWS - FEDERAL
• Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)• Liability• EPA Enforcement• Private Party Cost
Recovery
ENVIRONMENTAL LAWS - FEDERAL
• Resource Conversation and Recovery Act (RCRA)• Disposal of
waste and hazardous waste
ENVIRONMENTAL LAWS - FEDERAL (CONT.)
• Clean Water Act• Liability• Permits
• National Environmental Protection Act (NEPA)
• Endangered Species Act
ENVIRONMENTAL LAWS - STATE
• Hazardous Substances Account Act – State Superfund
• Hazardous Waste Control Law (Cal-RCRA)• Porter-Cologne Water Quality Control Act• California Environmental Quality Act (CEQA)• Common Law
WHEN DO ENVIRONMENTAL ISSUES ARISE?
• Pre-Purchase• Due Diligence• Contract Negotiation
• Entitlements / Development• CEQA / NEPA• Remediation
• Litigation
DUE DILIGENCE – PURPOSE AND FORM
• Purpose:• Know what you’re buying• Protect yourself from liability• Comply with the law• Satisfy lending institutions
• Form: • Phase I / Phase II Investigation
DUE DILIGENCE PURPOSE: DEFENSES TO LIABILITY
• Adjacent Landowner• Innocent Landowner
• Release precedes ownership• All appropriate inquiry; did not know or
have reason to know of contamination• Cooperation and access
• Bonafide Prospective Purchaser• Release precedes ownership• All appropriate inquiry; knew of
contamination• Cooperation and access
• ASTM Standard
• Satisfies “all appropriate inquiry” requirement
• Phase I
• Phase II
Source: Marc Defoe, 2003; SF Bay Regional Water Control Board, Brownfields)
DUE DILIGENCE FORM: PHASE I AND II
PROTECT YOURSELF: NEGOTIATE YOUR DEAL
• Indemnification• Shift liability to seller, other liable parties
• Price reduction• Allocate responsibility for cleanup activities
PROTECT YOURSELF: NEGOTIATE WITH AGENCIES
• “No Further Action” Letter• Comfort Letter• Prospective Purchaser Agreements
PROTECT YOURSELF: INSURANCE
• Insurance
ENVIRONMENTAL LAW: OTHER CONCERNS
• Entitlements / Development• CEQA / NEPA• Remediation
• Litigation
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