brownfields executive session

1. Brownfields Executive Session Timing and Money: Making Brownfields Projects Work in Pennsylvania

3. PA DEP Partnering in Brownfield Revitalization Presented by: Jill Gaito Brownfields Policy Specialist Office of Community Revitalization & Local Government Support PA Department of Environmental Protection February 2005 The Department of Environmental Protection is working very hard to eliminate the belief that we need to choose the economy or the environment. We can grow our economy and improve the job climate at the same time. Brownfield redevelopment is the best way to achieve that end. Pennsylvania has a well-deserved reputation for having one of the most progressive brownfields remediation programs in the country. Since the inception of the LRP, close to 2000 sites have been cleaned-up. Historically, DEP�s primary focus has been on the front-end of the revitalization process - site remediation. The goal of LRP was to create a remediation process that was flexible and predictable while still being protective of HH and the environment. Although remediation is an essential step, it is really just a piece of the puzzle when it comes to realizing the community revitalization goals of the Rendell Administration. The Department of Environmental Protection is working very hard to eliminate the belief that we need to choose the economy or the environment. We can grow our economy and improve the job climate at the same time. Brownfield redevelopment is the best way to achieve that end. Pennsylvania has a well-deserved reputation for having one of the most progressive brownfields remediation programs in the country. Since the inception of the LRP, close to 2000 sites have been cleaned-up. Historically, DEP�s primary focus has been on the front-end of the revitalization process - site remediation. The goal of LRP was to create a remediation process that was flexible and predictable while still being protective of HH and the environment. Although remediation is an essential step, it is really just a piece of the puzzle when it comes to realizing the community revitalization goals of the Rendell Administration.

4. Office of Community Revitalization & Local Government Support Current Administration�s Commitment Revitalization of PA Communities Establishing DEP as a Revitalization Partner Secretary took Unprecedented Actions Creation of Economic Development Deputate within Department of Environmental Protection Development & Implementation of new tools and programs with input from stakeholders Commitment and Actions are getting Results Community revitalization through brownfields redevelopment should be an approach that is market driven and developed with a sustainable end-use in view. Early in the Secretary�s administration, she made it clear that she was committed to conquering environmental challenges to create economic opportunities. That was one of the driving forces behind the creation of CRLGS. CRGLS is staffed with professionals with varied backgrounds include environmental law, economic development, remediation and redevelopment, environmental insurance and governing at the local, state and federal levels. Most of us have significant and recent private sector experience that brings a different perspective to DEP. Through new and innovative approaches and the development of tools and programs that streamline the site closure process, DEP is beginning to be recognized as a key and beneficial partner in the redevelopment process. Community revitalization through brownfields redevelopment should be an approach that is market driven and developed with a sustainable end-use in view. Early in the Secretary�s administration, she made it clear that she was committed to conquering environmental challenges to create economic opportunities. That was one of the driving forces behind the creation of CRLGS. CRGLS is staffed with professionals with varied backgrounds include environmental law, economic development, remediation and redevelopment, environmental insurance and governing at the local, state and federal levels. Most of us have significant and recent private sector experience that brings a different perspective to DEP. Through new and innovative approaches and the development of tools and programs that streamline the site closure process, DEP is beginning to be recognized as a key and beneficial partner in the redevelopment process.

5. Specific Enhancements Program Changes: Streamlined Reporting & NIR Processes Low Risk Sites Program Buyer-Seller Agreements (BSAs) MultiSite Remediation Agreements (MSAs) Local Government Actions MOA with EPA Brownfield Action Team Objective of Enhancements Implement a program to demonstrate that human health/environmental protection and economic revitalization are not mutually exclusive goals Unlock the potential economic benefits of recycling brownfields and grayfields across the Commonwealth Improve the voluntary program and define a role for the enforcement program via client and staff suggestions Program Changes to improve responsiveness and streamline process. Policy � BSAs & MSAs LG Actions - Project Advocates within DEP to work with other DEP staff, other state agencies (DCED) and EPA. MOA � save time, money and eliminate uncertainty BAT � id priority projects; project advocate; facilitate redevelopment Objective of Enhancements Implement a program to demonstrate that human health/environmental protection and economic revitalization are not mutually exclusive goals Unlock the potential economic benefits of recycling brownfields and grayfields across the Commonwealth Improve the voluntary program and define a role for the enforcement program via client and staff suggestions Program Changes to improve responsiveness and streamline process. Policy � BSAs & MSAs LG Actions - Project Advocates within DEP to work with other DEP staff, other state agencies (DCED) and EPA. MOA � save time, money and eliminate uncertainty BAT � id priority projects; project advocate; facilitate redevelopment

6. BSAs � Facilitate Transactions Gives the Seller the assurance that it will have the money to complete the cleanup, because it helps lock in the sale of the property. The Buyer (and DEP) have an enforceable commitment in writing from the Seller to remediate the site by a certain date. � Three-party agreements between: DEP, Seller of a contaminated site, and Buyer of that site. � Three-party agreements between: DEP, Seller of a contaminated site, and Buyer of that site.

7. BSAs � Bottom Line Once the Seller completes the cleanup and DEP approves the Final Report, the Seller gets the full Act 2 liability protection, and it automatically and immediately passes on to the Buyer. BSA alleviates uncertainty. Benefit for both Buyer and Seller: ��������� Once the Seller completes the cleanup and DEP approves the Final Report, the Seller gets the full Act 2 liability protection, and it automatically and immediately passes on to the Buyer as Act 2 provides. (Although this would have happened even without the B/S Agreement, sometimes the cleanup and the sale would never have happened without the B/S.) Note � Model BSA available on website. Caution � Does not address financial aspects of transaction. Therefore, does not afford cost-containment protections. Benefit for both Buyer and Seller: ��������� Once the Seller completes the cleanup and DEP approves the Final Report, the Seller gets the full Act 2 liability protection, and it automatically and immediately passes on to the Buyer as Act 2 provides. (Although this would have happened even without the B/S Agreement, sometimes the cleanup and the sale would never have happened without the B/S.) Note � Model BSA available on website. Caution � Does not address financial aspects of transaction. Therefore, does not afford cost-containment protections.

8. Multi-Site Agreements Designed specifically for companies with multiple sites within PA. Especially beneficial when dealing with multiple regional jurisdictions. Results in significant savings in: Time. Money. Frustration. A DEP-sponsored program that allows companies to cleanup multiple sites in an efficient, fair and financially sensible manner. Idea is to promote: Predictability. Efficiency. Flexibility. Cooperation. A DEP-sponsored program that allows companies to cleanup multiple sites in an efficient, fair and financially sensible manner. Idea is to promote: Predictability. Efficiency. Flexibility. Cooperation.

9. Multi-Site Agreements � Streamlining & Consistency One comprehensive agreement for all sites. Mutually developed procedures, plans, reports, and formats - generic work plans. Interface with one core group at DEP � MSA team coordinates with other program or regional staff who may have input (one-stop shopping). Efficiency of Multi-Site Remediation Agreements Less time for preparation and travel. Economy of scale (standard approach). Less �back and forth� communications concerning questions and proposal deficiencies. � DEP BUYIN Established work plans can save $ upfront � one case $50K � also saves time & money by getting right into actual cleanup activities � less time on paper pushing Note � MSA examples on Remediation Svs website. Cost Containment for private firms wishing to establish annual cleanup budget � sets priorities while maintaining progress Contact me if you are interested in investing the MSA option.Efficiency of Multi-Site Remediation Agreements Less time for preparation and travel. Economy of scale (standard approach). Less �back and forth� communications concerning questions and proposal deficiencies. � DEP BUYIN Established work plans can save $ upfront � one case $50K � also saves time & money by getting right into actual cleanup activities � less time on paper pushing Note � MSA examples on Remediation Svs website. Cost Containment for private firms wishing to establish annual cleanup budget � sets priorities while maintaining progress Contact me if you are interested in investing the MSA option.

10. Local Government Action Items ID mothballed properties � facilitate action Project Development Site Marketing Matching with Private Partners Project Advocate Participation in roundtables Outreach to explain program and process Mothballed Properties � Facilitate ownership strategies Project Development � Community Visioning; partnering; marketingMothballed Properties � Facilitate ownership strategies Project Development � Community Visioning; partnering; marketing

11. MOA with EPA One Cleanup Program Provision for addressing CERCLA, RCRA, and TSCA issues through the Act 2 Coordination throughout the process State relief from liability Federal declaration of No Further Action First MOA under the Fed Brownfields Law Saves time & money � eliminates fear of federal action Establish all cleanup requirements upfront Both agencies designate high level Project Managers Facilitate coordinated reviews by DEP and EPA Colsolidated reporting requirements DEP acts as an advocate with EPA � gentle nudges on timing, etc. First site under MOA should receive Final Closure Letters within next several weeks. DEP and EPA actively promoting and encouraging MOA � several more sites have begun negotiations.Saves time & money � eliminates fear of federal action Establish all cleanup requirements upfront Both agencies designate high level Project Managers Facilitate coordinated reviews by DEP and EPA Colsolidated reporting requirements DEP acts as an advocate with EPA � gentle nudges on timing, etc. First site under MOA should receive Final Closure Letters within next several weeks. DEP and EPA actively promoting and encouraging MOA � several more sites have begun negotiations.

12. Brownfield Action Team Selection identifies site as a DEP priority Assistance with Project Development Support for Funding Initiatives Project Advocates � Single Point of Contact �Top of the Pile� permit reviews Application available online About a dozen sites selected so far. Assistance has included: development of ownership strategies rapid response on permitting Letters of support for EPA BF grants Coordination with DCED o n BIOS applications Investigation of additional funding sources Assistance with investigating insurance options Assistance with clarifying historical site requirementsAbout a dozen sites selected so far. Assistance has included: development of ownership strategies rapid response on permitting Letters of support for EPA BF grants Coordination with DCED o n BIOS applications Investigation of additional funding sources Assistance with investigating insurance options Assistance with clarifying historical site requirements

13. Guaranteed Fixed-Price Remediation

15. Brownfield Projects Require a Team

16. Brownfield Environmental Remediation Requirements Comprehensive Characterization Remedial Planning- from the outset Procuring Early Government Buy-in Integration of Remediation with End-Use Reliable & Comprehensive Cost Estimation Cost-Effective, Closure-Driven Project Execution Speed �Time is Money.

17. Traditional Environmental Clean-Up�is inefficient..

20. What is Guaranteed Fixed-Price Remediation (GFPR)? A Paradigm Shift in Environmental Cleanup Contracting Project Responsibility is Fully Transferred to the professional. Provider Remediates the Property Completely for Your Planned Use GFPR Services are Turn-Key - Design/Implement to Conclusion Provider Procures Governmental Sign-Off The Price is Set and Provider takes the Financial Risk of the Remediation.

21. Major GFPR Benefits Known Remediation Cost - early in the project. Cost is all inclusive Results are Guaranteed/Transferable Turn-Key nature reduces your time and expense in managing project. Quicker

24. Traditional Remediation Contracting

25. Mis-Alignment of Objectives�Traditional Contracting�

26. Alignment of ObjectivesGFPR

27. Performance Security Dedicated �Fixed-Price Remediation Agreement� detailing results and schedules. Progress Payments Only After Milestone accomplishment Performance Guarantor of Contract Insurance*: Insured by Underwriters with over $20 Billion in Assets

29. Thank You �

31. CHESTER COUNTY BROWNFIELDS CASE STUDIES

32. BACKGROUND CHESTER COUNTY ECONOMIC DEVELOPMENT COUNCIL PRIVATE NONPROFIT 501(C) 6 ECONOMIC DEVELOPMENT AGENCY PROVIDES SERVICES TO THE BUSINESS COMMUNITY OF CHESTER COUNTY

33. BACKGROUND PROVIDE ADMINISTRATIVE SUPPORT TO OTHER ORGANIZATIONS CHESTER COUNTY ECONOMIC DEVELOPMENT FOUNDATION 501(C) 3 CHESTER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY COUNTY AUTHORITY

34. BACKGROUND CENTRAL & WESTERN CHESTER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY TOWNSHIP AUTHORITY SEED CO OF PA REGIONAL & STATEWIDE ECONOMIC DEVELOPMENT ORGANIZATION

35. BROWNFIELDS INITIATIVE BEGAN ABOUT 5 YEARS AGO BROWNFIELDS INVENTORY GRANT (BIG) PROGRAM EPA ASSESSMENT PROGRAM FUNDING FOR PHASE I AND PHASE II ENVIRONMENTAL ASSESSMENTS

36. BISHOP TUBE SITE

37. BISHOP TUBE SITE CHARACTERISTICS FACILITY USED FOR PRODUCTION OF STAINLESS STEEL SEAMLESS TUBING SINCE 1950�S ABANDONED IN 1990�S 13.7 ACRES ZONED INDUSTRIAL 144,000 SQ. FT. BUILDING, 65 FT. CEILINGS PAVED PARKING FOR 200 CARS UTILITIES - ELECTRIC, WATER, SEWER

38. BISHOP TUBE SURROUNDING AREA LOCATED BETWEEN CONRAIL AND AMTRAK LINES LIMITED ACCESS TO SITE UNDER RAILROAD TUNNEL LITTLE VALLEY CREEK ON EASTERN BORDER RESIDENTIAL ON HILL ABOVE SITE TANK FARM & INDUSTRIAL USE ON WEST

39. BISHOP TUBE ENVIRONMENTAL HISTORY DEGREASANTS USED IN PRODUCING STAINLESS STEEL TUBES CONTAINED TCE OPERATION INCLUDED TCE STORAGE TANK AND 2 TCE VAPOR DEGREASORS EXISTING TEST WELLS ON SITE AND OFF SITE CONTAINED TCE

40. BISHOP TUBE LEGAL OWNER: CENTRAL & WESTERN CHESTER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY CCEDC LISTED ON PA DEP BROWNFIELDS INVENTORY LIST DEP DESIGNATED HSCA SITE DEP FUNDED & COMPLETED SOIL & WATER ASSESSMENTS

41. BISHOP TUBE RESULTS OF DEP ASSESSMENTS TCE CONCENTRATION IN 3 MAJOR AREAS ON SITE TCE CONTAMINATION IN LITTLE VALLEY CREEK DEP AGREED TO ASSUME RESPONSIBILITY FOR REMEDIATION PLAN FOR GROUNDWATER

42. BISHOP TUBE CCEDC ROLE IDENTIFY DEVELOPER FOR PROPERTY DEVELOPER REQUIRED TO ADDRESS SOIL REMEDIATION BASED ON FINAL USE OBTAIN TAX FORGIVENESS PREPARE REQUEST FOR PROPOSALS 5 RESPONSES RESIDENTIAL, RECREATION, WAREHOUSE/INDUSTRIAL, OFFICE

43. BISHOP TUBE ROUND #1 REVIEW DEVELOPERS� PROPOSALS INTERVIEW PROCESS BY COMMITTEE SELECTED DEVELOPER PROPOSING RESIDENTIAL USE NEGOTIATED FOR 9 MONTHS DEVELOPER WALKED � LESSON LEARNED!

44. BISHOP TUBE ROUND #2 NEW REQUEST FOR PROPOSAL WAREHOUSE/INDUSTRIAL USE TIME PARAMETERS TWO DEVELOPERS WITH VIABLE PROPOSALS NEGOTIATIONS COULD NOT REACH SATISFACTORY AGREEMENT

45. BISHOP TUBE ROUND #3 ORIGINAL DEVELOPER FROM ROUND #1 BACK WITH NEW PROPOSAL CLOSING EXPECTED BY MARCH 17, 2005 CELEBRATION PROHIBITED UNTIL DEAL IS DONE!

46. PUBLIC SAFETY TRAINING FACILITY

47. PUBLIC SAFETY TRAINING FACILITY PURPOSE: NEW TRAINING FACILITY FOR POLICE, FIRE, AND EMERGENCY PERSONNEL LOCATION: SOUTH COATESVILLE BOROUGH & EAST FALLOWFIELD TOWNSHIP 120 ACRES NEAR GEOGRAPHIC CENTER OF CHESTER COUNTY

48. PUBLIC SAFETY TRAINING FACILITY KNOWN ENVIRONMENTAL ISSUES ELECTRIC ARC FURNACE ASH (MONOFILL) SLAG PILES FORMER PISTOL RANGE

49. PUBLIC SAFETY TRAINING FACILITY MONOFILL CLEAN UP PLAN APPROVED BY DEP & EPA BUT NEVER COMPLETED VERBAL AGREEMENT BY DEP TO USE EARLIER PLAN AS PART OF OUR FINAL REMEDIATION PLAN NO EVIDENCE OF MIGRATION OFF OF THE SITE

50. PUBLIC SAFETY TRAINING FACILITY BALANCE OF SITE NEED PHASE II ASSESSMENT TEST PIT SAMPLING OF SLAG ISSUES BELOW SLAG? SAMPLES FROM FORMER PISTOL RANGE 1 WELL PER ACRE IN AREAS TO BE DEVELOPED

51. PUBLIC SAFETY TRAINING FACILITY CURRENT STATUS SEEKING PERMISSION OF BOTH LAND OWNERS TO PERFORM PHASE II ASSESSMENTS DISCUSSIONS WITH DEP & EPA REGARDING SAMPLING PLAN & PRELIMINARY REMEDIATION PLAN PERFORMING SITE SURVEY DEVELOPING PROJECT COST BUDGET PRELIMINARY NEGOTIATIONS WITH LAND OWNERS

52. PUBLIC SAFETY TRAINING FACILITY SPECIAL BROWNFIELDS RESOURCES APPROVAL AS DEP �BAT� SITE REQUEST FOR BUSINESS IN OUR SITES �BOS� FEASIBILITY STUDY FUNDING APPROVAL TO USE EPA ASSESSMENT GRANT FUNDS IN-KIND SERVICES FROM EPA (UP TO $50,000)

53. PUBLIC SAFETY TRAINING FACILITY CHALLENGES AHEAD IDENTIFY CONTAMINATION AND ESTIMATE COST GO � NO GO DEVELOP AND OBTAIN APPROVAL FOR CLEAN UP PLAN TO STATEWIDE HEALTH STANDARDS COORDINATE CLEAN UP AND CONSTRUCTION PISTOL RANGE SOIL TO MONOFILL?

54. EPA FUNDED PROJECTS PHASE I & II ASSESSMENTS HABITAT FOR HUMANITY RED CLAY CREEK REVOLVING LOAN FUND PETROLEUM BASED REMEDIATION

55. WORTHINGTON STEEL

56. BROWNFIELD �PARTNER� SITES WORTHINGTON STEEL � O�NEILL PROPERTIES BETHLEHEM/LUKENS ISG DOWNTOWN � CITY OF COATESVILLE ATWATER � TRAMMELL CROW PHOENIX STEEL � DELTA ORGANIZATION DOWNINGTOWN AMTRAK � BOROUGH OF DOWNINGTOWN COATESVILLE � OLIVER TYRONE PULVER

57. CHESTER COUNTY ECONOMIC DEVELOPMENT COUNCIL 737 CONSTITUTION DRIVE EXTON, PA 19341 610-458-5700 WWW.CCECONOMICDEVELOPMENT.COM MISSY MYERS KATE BAGANSKI