1. Land Transaction Screening Blake Velde Sr. Environmental Scientist USDA Hazardous Materials Management Group October 2006

2. Overview Environmental Liability Innocent land owner/Bona fide prospective purchaser Land transactions All Appropriate Inquiry Department Guidance Checklist Overview Technical Assistance

3. Environmental Liability CERCLA and other environmental laws Report quarterly to OCFO OCFO Act requirement CERCLA Liability -- $2 B plus DM-5600-1 Goal All Appropriate Inquiry shield

4. Environmental Liability Superfund Sites USDA program No more increase to environmental liability

5. Innocent Landowner/BPP Land Acquisitions after November 1, 2006 Protection from CERCLA liability Conduct search to determine condition of property at the time of acquisition Includes easements Defense for innocent landowner and a bona fide prospective purchaser

6. Why Should NRCS Care? WRP and other conservation programs Trigger CERCLA or RCRA liability when lands are “managed” Disturb hazardous substances or materials that otherwise may not be mobile “Protective of Human Health & the Environment”

7. Inundation Changes to the condition of the property Potentially increase mobility of contaminants Management of land features (dykes, berms) where contaminants may be concentrated Adverse impacts

8. All Appropriate Inquiry EPA promulgated rule (40 CRF 312) 2002 Brownfield Act provisions Amended CERCLA (Superfund) Prospective land purchases afforded shield to liability USDA/Interior Land managing agency joint guidance/policy

9. Joint Workgroup USDA (OPPM, OGC, Forest Service, NRCS Interior (OEPC, Solicitors, FWS, BLM, BIA, NPS) Justice Others on the sidelines – GSA, Defense, EPA, USCG Federal Land managers – over 33% of US

10. Requirements of AAI § 312 (a) One year prior to Acquisition (b) 180 day refresh (b)(1) Interviews (b)(2) Record Search for cleanup liens (b)(3) Record Search other Fed/State/Local (b)(4) Visual Inspection (b)(5) Report by Environmental Professional

11. Guidance Overview Interior/USDA developed guidance for each of these requirements General overview and explanation of terms Detailed checklists for record search, interviews, site visits Overseeing a Contractor Reviewing Environmental Professional qualifications

12. AAI Process Exercise of Professional Judgment Current/past practices causing release of HAZMATS Gathering records Interviews with current/past owner operators Site inspection Report detailing findings Sign-off by qualified Environmental Professional AAI conducted by individuals under the “responsible charge of a qualified Environmental Professional

13. Qualified Environmental Professional (EP) -- § 312.10 (a) (1) Possesses specific training, work experience, education to conduct this work: (2)(i) PE or PG license and 3 yrs full time relevant experience (FTRE), or (2)(ii) Lic. or certified by Fed/State/Local to conduct this and 3 yrs FTRE, or (2)(iii) Bachelors Science or Engineering and 5 yrs FTRE, or (2)(iv) Equivalent of 10 yrs FTRE

14. EP Full Time Relevant Experience Participation in AAI’s Env. Site Assessments Phase 1/Phase 2’s CERCLA PA/SI’s, RI/FS’s EE/CA’s RCRA, NEPA or other site assessments Full Time definition

15. EP Relevant Experience Years and qualifications may not be enough Specialized experience for specific projects Team approach ASTM standard and “non-scope” items Partial responsibility = partial year experience (10 yrs @ 50% duty = 5 yrs)

16. EP Education Bachelor of Science or Engineering and professional registration Other AAI certification/licensing – ongoing project Relevant Training Possible course information provided

17. Pre-Acquisition Environmental Site Assessment (PESA) Similar to Phase 1 Similar to ASTM Phase 1 – non scope items Updated existing ASTM standard -- ASTM E1527-00 suffices for EPA rule – USDA and other federal land managing agencies have other legal requirements - CFO Act

18. Why Non-Scope? CFO Act “environmental liabilities” Impact on Mission Asbestos, Lead Paint, oil Assess Fair Market Value DM-5600-1 requirement to provide costs/liabilities to decision makers Early go/no-go decision making

19. Process Qualified EP – Appendix C Responsible Charge of EP Record Search Interviews On-site survey EP report

20. Who? Qualified EP ultimately signs report Responsible Charge of EP may conduct actual work §312.10(b)(5): “A person who does not qualify as an environmental professional … may assist in the conduct of all appropriate inquiries … if such person is under the supervision or responsible charge of a person meeting the definition of an environmental professional…” Oversight, Control, Direction of Work Does NOT have to be direct report Contractor – new appendix under development

21. What? Records Search Interviews Site Survey Report

22. Record Search Gather existing records Fed/State/Local Old photos, maps Check waste site inventories Adjacent properties Permits, wells, sewer, waste treatment

23. Interviews Past and current owners/operators/ occupants/employees Subject/Adjacent properties Site History Use Problems Follow-up from record search

24. Site Survey On-site visit 1 yr of acquisition - 180 days prior to transaction Waiver for unusual circumstances Adjacent properties Obvious contamination Verify questions from records search and interviews Photo log and journal

25. EP Final Report Critical component of AAI Written Documentation of findings from records search, interviews, site survey No specific format – additional guidance forthcoming on outline Findings ID data gaps

26. EP Final Report Cont. Professional judgment Sign – qualified EP (312.10) Sign – conducted inquiry consistent with 312 Does not require professional “stamp” No retention requirements, but need to retain for future court actions.

27. Next Steps Issue Secretary Memo authorizing use of interim guidance, checklists and other tools Use for a year and update DM-5600-1 and AGPMRs Continue developing common tools for use by federal land managing agencies Develop more detailed training courses

28. Contact Information Blake Velde USDA HMMD 1400 Independence Ave SW MS-9100 Washington DC 20250 blake.velde@usda.gov 202.205.0906

29. Questions?