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

Brownfield Challenges Brownfields are real estate projects with a “clean-up” component More complex Need Predictability Smart growth in a small state ORD - OBRD

Who Do You Call? DECD DEP EPA DPH CDA ORD - OBRD

To develop and implement strategies that: Attract and retain business Revitalize neighborhoods Ensure quality housing Foster responsible growth DECD Mission ORD - OBRD

DECD Mission ORD - OBRD 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

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

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

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, Superfund NPL, 3 done EPA Definition of Brownfields ORD - OBRD

OBRD Funding Programs ORD - OBRD

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

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

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

OBRD Funding Programs ORD - OBRD Dry Cleaning Establishment Remediation Fund Administered by DECD under CGS m 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

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

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

New for 2009/ Regional Brownfield Loan Program 2.Abandoned Brownfield Clean Up Program 3.Changes to Floodplain Management Requirements OBRD Funding Programs ORD - OBRD

OBRD Funding Programs ORD - OBRD 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

OBRD Funding Programs ORD - OBRD Abandoned Brownfield Clean up Program Eligible owner/site shall not be responsible for investigation or remediation of contamination that emanated prior to acquisition. Eligibility: Brownfield site Redevelopment plan with regional or municipal economic development benefit No responsible party No consent order Must enter DEP voluntary remediation program Applicant will investigate pollution in accordance with DEP requirements Eliminate further migration of contamination

Legislative Actions/Updates ORD - OBRD

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

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 ) ORD - OBRD

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

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) Transfer Act ORD - OBRD

“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 Transfer Act (cont’d) ORD - OBRD

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

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 3 rd party for existing pollution muni didn’t create or negligently or recklessly exacerbate (22a-133dd) Municipal Liability Relief ORD - OBRD

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

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

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

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

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 New Legislation - SB 302 ORD - OBRD

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 New Legislation – PA (HB 5119) ORD - OBRD

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, New Legislation – (HB 5436) ORD - OBRD

Office of Brownfield Remediation and Development ORD - OBRD

OBRD -DECD Contact Peter Simmons Executive Director, Office of Responsible Development (860) Brian Dillon Program Manager, OBRD, Office of Responsible Development (860) ORD - OBRD