1. Brownfields 2004 Putting the Pieces Together - Effective and Reliable Institutional Controls September 21, 2004 Amy L. Edwards, Esq. (202) 457-5917

2. “Legal or Physical Restrictions on the Use of, or Access to, a Site or Facility to Eliminate or Minimize Potential Exposures to Chemicals of Concern, or to Prevent Activities That Could Interfere With…the Effectiveness of a Response Action" What Are Institutional Controls? (AKA Land Use Controls (LUCs) or Activity and Use Limitations (AULs))

3.  Institutional Controls Are an Integral Part of the Remedy Selection Process  Four Basic Types of Institutional Controls –Proprietary Controls –State and Local Government Controls –Statutory Enforcement Tools –Informational Devices What Are Institutional Controls? (AKA Land Use Controls (LUCs) or Activity and Use Limitations (AULs))

4.  Critical Role of ICs Has Been Implicitly Recognized in the Brownfields Amendments of 2002 –Affirmative Obligation Not to Impede the Integrity and Effectiveness of ICs and to be in Compliance With Land Use Restrictions –State Obligation to Maintain Registries of Brownfields Sites Relying on ICs What Are Institutional Controls? (AKA Land Use Controls (LUCs) or Activity and Use Limitations (AULs))

5. Corrective Action and Institutional Controls So What's the Beef?

6. Corrective Action and Institutional Controls  Deficiencies in Implementation/Enforcement of ICs Have Been Well Documented in Recent Years –ELI Study, “Protecting Public Health at Superfund Sites: Can ICs Meet the Challenge?" (July 2000) –ICMA Study, “Beyond Fences: Brownfields and the Challenge of Land Use Controls” (2000) –EPA IC Fact Sheets (October 2000) and Workshops (2001) –CPEO Forums (February and June 2000) –National Research Council Study (September 2000) –GAO Report? (to be released in November 2004)

7. Corrective Action and Institutional Controls  Tools Have Been Developed to Address Some of These Concerns, But More is Needed –ASTM Standard Guide E 2091-00 –ABA Book on ICs (2003) –EPA Guidance Documents  Identifying, Evaluating and Selecting ICs  Implementing, Monitoring and Enforcing ICs (draft)

8. Corrective Action and Institutional Controls By Default, Parties Have Generally Had to Rely on State Property Law in Order to Implement and Enforce Institutional Controls. These Common Law or Property Law Devices are Known as Proprietary Controls

9. Proprietary Controls  Proprietary Controls Have Their Own Weaknesses. State Property Law: –Requires horizontal and vertical privity –Frowns on "spurious" easements –Dislikes affirmative obligations –Requires "appurtenant" property interests –Requires covenants to "touch and concern" the land –Is limited by Marketable Title Act (generally, 40- 60 years)

10. Uniform Environmental Covenants Act ("UECA")  With the support of DoD, the National Conference of Commissioners on Uniform State Laws ("NCCUSL") began a two-year effort in 2001 to develop a model law that would provide a better foundation for institutional controls

11. Uniform Environmental Covenants Act ("UECA")  The final model law required a series of compromises between traditional real property principles and environmental interests

12. Uniform Environmental Covenants Act ("UECA")  REAL ESTATE Principles have been the same for hundreds of years. –Covenants vs servitudes  ENVIRONMENTAL Rules are constantly chanaging

13. Uniform Environmental Covenants Act ("UECA")  REAL ESTATE Strict formalities –Grantor –Holder –Recording requirements  ENVIRONMENTAL Formalities? What's a holder? Subordination rights???

14. Uniform Environmental Covenants Act ("UECA")  REAL ESTATE Future use? Exposure pathways???  ENVIRONMENTAL Covenant is part of a cleanup/remedy

15. Uniform Environmental Covenants Act ("UECA")  REAL ESTATE Law should not be prescriptive  ENVIRONMENTAL Law should provide a "roadmap" of best practices - Notice to various parties - Notice to agency in the event of changes in land use/zoning

16. Uniform Environmental Covenants Act ("UECA")  REAL ESTATE Restrictions are frowned upon and should expire after a set period of time  ENVIRONMENTAL Restrictions should last in perpetuity -Concerns about eminent domain, tax lien foreclosures

17. Uniform Environmental Covenants Act ("UECA")  The result of these compromises was the Uniform Environmental Covenant Act ("UECA"), approved by the full Commission in August 2003  The model law now needs to be adopted in all 50 states