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9/18/18
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Land Reuse and Brownfields Yakima Workshop September 18, 2018
Topics
• Brownfields Context of Infill & Agriculture • Regulatory Overview • Economics of Brownfield Redevelopment • Due Diligence and Risk Management
Definitions
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 • Land recycling or reuse
– The reuse of abandoned, vacant, or underused properties for redevelopment
• Not all sites which use brownfields funds are contaminated
• Brownfields resources can be used for land recycling
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Redevelopment | Urban Infill or Agricultural
• Opportunities & Public Policy Goals o Growth management o Economic development o Efficient use of existing infrastructure o Minimize environmental impacts of growth
Redevelopment | Urban Infill or Agricultural
• Challenges o Costs of Development Compared to Greenfield Sites o Potential To Encounter Environmental Contamination
Scale of the Contaminated Site Issue
NoFurtherAction6,121
O&M/Monitoring
169
CleanupStarted3,911
AwaitingCleanup1,778
52%
15%
32%
2%
12,776 Known & Suspected Contaminated Sites
4
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Redevelopment Barriers
• Uncertainty of Cost • Fear of Liability • Uncertainty of Timing
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Category Description Implication
MarketValueExceedsCleanupCosts
PrivateMarketCompletesCleanup&Redevelopment
ValueClosetoCoveringDevelopment&CleanupCosts
TargetedPublicInvestmentCanMakeProjectFeasible
EnvironmentalLiabilityFarExceedsPropertyValue
RequiresSignificantPublicInvestmentorMarketChange
Integrating Cleanup & Redevelopment
Redevelopment Assessment
• Infrastructure • Topography • Natural Resources • Market Study
Environmental Assessment
• Remedial Investigation
Analysis of Cleanup Options
• Feasibility Study Cleanup Action Plan
Future Use Vision • Conceptual Site
Plan
Design • Site Improvements • Vertical
Community Involvement
Risk Management
Integrating Remedy & Redevelopment
• Future Use Drives the Cleanup • Preventing Exposure vs. Clean • Redevelopment can be the Remedy
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Regulatory Overview
Legal Framework
• Superfund Law (CERCLA) ◦ Brownfields Law
• Model Toxics Control Act (MTCA) • Liability: Owner, Operator, Arranger,
Transporter o Strict—Regardless of fault, lack of
diligence or ignorance o Joint & Several—All parties responsible for
all costs o Retroactive
MTCA Cleanup Process
STEP 1:
Remedial Investigation
STEP 2:
Feasibility Study
STEP 3:
Cleanup Action Plan
STEP 4:
Implement Cleanup
STEP 5: Cleanup Action Report
NFA!
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Translating Between WA & Federal
Federal WashingtonState PhaseIEnvironmentalSiteAssessment
SiteHazardAssessment(Similarlevelofevaluation,butnotequivalent.ConductedbyEcology)
PhaseIIEnvironmentalSiteAssessment
RemedialInvestigation(Typicallymorerobust)
AnalysisofBrownfieldCleanupAlternatives(ABCA)
FeasibilityStudy(Typicallymorerobust)
CleanupActionPlan CleanupActionPlan
Purpose of a Phase I ESA
• Liability Defense—All Appropriate Inquiry (AAI)
• Support go/no go decision making • Lender requirement • EPA Brownfield Grant requirement
• Not a requirement of the MTCA Cleanup Process
Elements of a Phase I ESA • Environmental Records Review
• Review of Historical Land Use Sources
• Site Reconnaissance
• Interviews
• Report
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Phase I ESA Outcomes
• Recognized Environmental Conditions
• Controlled Recognized Environmental Conditions
• Historical Recognized Environmental Conditions
Transactional Document
• Phase I ESAs must be completed prior to closing
• Phase I ESAs are valid for 180 days • Reliance—Typically conducted on behalf of
buyer, or specifically identified in report
Phase II ESA
• Sampling and data analysis to evaluate Recommended Environmental Conditions
• Assess exposure pathways and cleanup scenarios
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Remedial Investigation • Like a Phase II • Purpose—To
characterize the nature and extent of contamination sufficiently to develop and evaluating cleanup action alternatives
• Iterative process of sampling and data gap analysis
Feasibility Study • Purpose—To develop and evaluate cleanup
action alternatives to enable a cleanup action to be selected for the site
• Minimum requirements ◦ Long-term risk ◦ Short-term risk
• Disproportionate cost analysis
Cleanup Action Plan
• Purpose—To outline the preferred cleanup approach
• Engineering Design Report • Plan Set & Specifications
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Remedy Implementation
MTCA Administrative Pathways
FORMAL • Ecology Supervision • Public Involvement
Requirements
INDEPENDENT • Limited Ecology
Supervision
Consent Decree Agreed Order Voluntary Cleanup
Program No Ecology Consultation
• Ecology approves scope and schedule
• Settlement of liability with State
• Protection from contribution claims
• Letter of Satisfaction
• Ecology approves scope and schedule
• No liability settlement
• No protection from contribution claims
• Letter of Satisfaction
• Owner determines scope, schedule, and Ecology involvement • Opinion letters from
Ecology • NFA determination
• No liability settlement
• No protection from contribution claims
• No Ecology supervision
• No liability settlement
• No protection from contribution claims
Managing Risk
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Managing Risk
CLEANUP
• Dig & Haul • In Situ Treatment • Capping • Monitored
Natural Attenuation
• Institutional Controls
ADMINISTRATIVE
• Consent Decree • Agreed Order • Voluntary
Cleanup • Independent
Cleanup
FUNDING
• Public Grants / Loans
• Private Investment
• Historical Insurance
• Contribution Claims
DEAL STRUCTURE
• Due Diligence • Price Reduction • Contractual Risk / Cost Allocation • Environmental Insurance • Liability Buyout • Prospective Purchaser Agreement
LIABILITY DEFENSES
• Statutory • Tort / Common
Law
Supporting Urban Revitalization: Economics of Brownfields
Integrating Remedy & Redevelopment
Environmental Cleanup
Visioning & Branding Entitlements Infrastructure Vertical
Construction Operations
$$$ $ 0 ($) Pr
oper
ty V
alue
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Urban Revitalization Strategies
Gap Awareness
• Pro Forma Analysis (Revenues and Costs) • Potential Impacts of Interventions
Nurture Relationships
• Public Investments • Coordinate otherwise disparate
investments • Leverage public/institutional anchors
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Planning/Broader Investments
• Create platform for future development
• Support greater intensity
• Public amenities with broad-based benefits
Seed Investments
• Improve Urban Fabric • Attract/Foster Urban Pioneers • Catalyze Small Projects • Activate Public Spaces
Resources
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Brownfield Funding Overview GRANT MAX $ MATCH NOTES
INTEGRATED PLANNING GRANT
$200K 0% Planning & environmental
OVERSIGHT REMEDIAL ACTION GRANT
N/A 50% - 90% Formal Cleanup
INDEPENDENT REMEDIAL ACTION GRANT
$600K 50% - 75% Voluntary Cleanup
EPA AREA-WIDE PLANNING GRANT
$200k 0% Planning
EPA BROWNFIELD ASSESSMENT GRANT
$200-600K 0% Environmental assessment only Eligibility Criteria
EPA BROWNFIELD CLEANUP GRANT
$500K 20% Cleanup only Eligibility Criteria
MULTI-PURPOSE BROWNFIELD GRANT
$1 M 20% Assessment & Cleanup Eligibility Criteria
Brownfield Resource Overview Program Purpose(s)
WA Ecology grants and programs
Planning & environmental, formal cleanup, voluntary cleanup; prioritization
WA Commerce Loans for cleanup, other
EPA grants and programs
Assessment, voluntary cleanup, planning, loan programs, technical assistance
Commerce (EDA) Infrastructure, planning, utilities, improvements
USDA Business, infrastructure, utilities, feasibility
HUD Planning, infrastructure
Treasury “Groan” Gap Financing (NMTC), Equity (Opportunity Zones), Construction and restoration (Tax Credits)
Energy Feasibility, capacity building, construction
Insurance / Deal structure
Remediation, Site monitoring and management
Thank You MaryMonahanWADept.ofEcologymary.Monahan@ecy.wa.gov509.454.7840MichaelStringerMaulFoster&Alongi,[email protected]
JohnMeansAltaS&[email protected]“Gus”WinkesBeveridge&[email protected]
IgnacioDayritCenterforCreativeLandRecyclingIgnacio.dayrit@cclr.org415.728.3848
