2015 BROWNFIELDS CONFERENCE Michelle R. Payne Regulatory Analyst ARARs and UECA Coordinator Office of Remediation Programs

What is a Brownfield? “Brownfield" means real property; the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant”

Upcoming Issues in Brownfields James E. Mallonee H.S., Hopewell Virginia Burlington, Clarksville

Brownfield Comfort Letters Bona Fide Prospective Purchaser Letters Lender Liability Letters Contiguous Property Owner Letters Contact: Meade Anderson Bona Fide Prospective Purchaser Letters Lender Liability Letters Contiguous Property Owner Letters Contact: Meade Anderson

Bona Fide Prospective Purchaser Protections Expanded Code of Virginia - § Definitions "Bona fide prospective purchaser" means a person or a tenant of a person who acquires ownership, or proposes to acquire ownership, of real property after the release of hazardous substances occurred.

“It shall be the policy of the Commonwealth to encourage remediation and restoration of brownfields by removing barriers and providing incentives and assistance whenever possible. The Department of Environmental Quality and the Economic Development Partnership and other appropriate agencies shall establish policies and programs to implement these policies, including a Voluntary Remediation Program, the Brownfields Restoration and Redevelopment Fund, and other measures as may be appropriate.”

Virginia Brownfield Tools Grants Tax Exemption Regulatory Variance Uniform Environmental Covenant

Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund Created in 2002 with Virginia Brownfields Legislation First capitalized in 2011 with $1M 24 Grants awarded with typical award of $50,000 (Ranging from $7,000 to $60,000) Re-capitalized in 2015 with $750,000 Wide range of projects from typical Phase I & II ESA to removal actions for historic waste materials Funds available July 1, 2015 Provides a “track record” for localities considering applying for EPA Grant and a leverage and/or match for other grants Flexibility to complete either assessment or remediation if property is owned by the local government

Maximizing Impact with Limited Funds Staff works closely with local governments providing direct input & ideas to assist in moving project forward, making recommendations, obtaining grants & other resources BIO work moves beyond grant application assistance & reaches the next “level” Time intensive however it is a valuable tool & catalyst for assisting rural & small town brownfield revitalization as staff provide tailored recommendations based on experience Brownfields Individualized Outreach (BIO)

VIRGINIA TAX EXEMPTION  Environmental restoration sites are a separate class of property.  Environmental restoration sites are properties that became contaminated by a release of hazardous substances  Any City, County or Town may pass an ordinance exempting such property from local tax  Property must be enrolled in the VRP Program.  A period no longer than 5 years § Environmental restoration sites Statute is 18 years old!

Contaminated Media Variance/Background Soils Promote Management and Reuse of Lightly Contaminated Soils Provides 3 Levels of Re-use ▫Ecological/Groundwater Resource ▫Residential ▫Industrial Self-Implementing Background Soils Results ▫Provide Average Background of Metals ▫Divided Among Geographic Region ▫Provides Point of Reference

UNIFORM ENVIRONMENTAL COVENANTS ACT (UECA)  Effective November 9, 2011  Virginia’s UECA is based on a uniform law developed by the National Conference of Commissioners on Uniform State Laws.  Intended to overcome common law obstacles to creating enforceable environmental real property controls that run with the land.  Creates a new real property instrument “Environmental Covenant”

How UECA Helps  Provides enforcement rights to those not in the chain of title or not in privity of estate: the agency local governments where the property is located a person whose interest in the real property or whose collateral or liability may be affected anyone the covenant expressly identifies  Provides that environmental covenants cannot be extinguished if the grantee dies or ceases to exist.  Allows environmental covenants even if the grantor and grantee are the same person.

Virginia UECA Fees DEQ as “Seen and Received”- $1, DEQ as Agency- $4, DEQ as Holder- $24, Regulation Link: LIS > Administrative Code > 9VAC15-90LIS > Administrative Code > 9VAC15-90 Agency Guidance LPR-REM : Virginia Regulatory Town Hall View Guidance DocumentVirginia Regulatory Town Hall View Guidance Document

Brownfields Story Map

Voluntary Remediation Program Kevin Greene VRP Program Manager Office of Remediation Programs  DEQ Team  Risk Assessor  Project Manager  Good PR- indicates site is safe  Provides Comfort to Lenders  Enforcement Immunity under Virginia  Benefit of MOA with EPA indicating no further interest from EPA.

Years to Complete ( 276 Certificates) ( through 3/1/2015 )

VOLUNTARY REMEDIATION PROGRAM $2000 Phase I registration (application) fee $7500 Phase II (enrollment) registration fee $4500 Phase III annual registration fee for each year the site is participating in the program. Amendment 3 to VRP Regulations (9VAC et seq.) establishes a new fee structure which was effective July 1, 2014

Chicago September 2-4