Connecticut Department of Energy and Environmental Protection

1. Connecticut Department of Energy and Environmental Protection Connecticut Department of Energyand Environmental Protection

2. DEEP’s Role in Brownfields Redevelopment - How Can We Help You?May 27, 2014Mark Lewis, DEEP Brownfields Coordinator

3. My Background • Connecticut DEEP - Remediation Division Environmental Analyst- 1993-2014 • Previous work: land surveying, environmental consulting, US Geological Survey • BS - Geology - Bates College, Lewiston, Maine

4. Shared Success • State Assistance • Proposed Cleanup Transformation Today’s Topics

5. Willimantic Thread Factory- J. Alden Weir- 1893 Our mills inspired 19th century landscape painters. They remain a resource and a source of inspiration today.

6. Changing the perception of site cleanup • Work with

7. Brownfields Coordination

8. Success – Past and Future • State and Federal Agencies have been working with Municipalities on Brownfields since 1992 • Partnership have yielded great success • Connecticut is interested in more success with municipal projects

9. Bryant Electric / Industrial Redevelopment- Bridgeport • New Businesses • AkdoIntertrade Inc. • Chaves Bakery II Inc. • Carr's Ice Cream LLC • Modern Plastics, Inc.

10. Brownfield to Grocery Store- Bridgeport • Partners • State of CT • City of Bridgeport • Bridgeport Housing Authority • Tools Used • $2.5 M Urban Act Grant • $15.0 M Private Investment • DEEP Technical Assistance • Project • Redevelopment of moth-balled housing development

11. Main & Pavilion Shopping Center- Hartford • US EPA • $160,000 Revolving Loan Fund • City of Hartford • $100,000 Community Development Block Grant • Donation of land • Community Economic Development Fund • $5,000 Technical Assistance Grant • $100,000 Bridge Loan Financing • US HUD • $1,500,000 Section 108 Loan • $300,000 Brownfield Economic Development Grant • $300,000 Urban Development Action Grant • Private • $2,200,000 Construction • $500,000 Loan Guarantee

12. Remington Rand, Middletown City acquired through tax foreclosure • State grant for general improvement - $765K • DEEP identified Responsible Party through Urban Sites program • RPs funded most cleanup • State provided $200,000 in EPA funds to complete remediation 10 business leasing space at the complex

13. Killingly Commons- Killingly • CBRA $1.5M Tax Increment Financing • 1,000,000 ft2 manufacturing and warehouse buildings Redevelopment of site into retail center

14. University of Hartford – Performing Arts Center Former Auto Dealership • State provided $4M grant • CBRA $2.5M PILOT (payment in lieu of taxes) • Over $16M private investment

15. Goodwin College, East Hartford • CBRA $3M PILOT • State grant $2.25M • USEPA – 3 Cleanup Grants ($200K each) • Leveraged over $20M in private investment • Former petroleum tank farm

16. Occum Park, Norwich Former factory destroyed in 1988 fire Redeveloped into Riverside Park • Two State grants $2.1 M • Local funding $200,000 2008 Real Estate Exchange Award for Community Development

17. State Brownfield Assistance • Funding (DECD) • Liability Relief (DEEP and DECD) • Technical Assistance (DEEP and DECD)

18. State Liability Relief • Many programs offered to limit the liability of municipalities, economic development organizations, and private parties

19. Liability Relief • Covenants Not To Sue • Third-party liability relief • Abandoned Brownfield Cleanup Program • Brownfield Remediation and Redevelopment Program (a.k.a. Section 17) • Municipal Brownfields Liability Relief

20. Covenants Not To Sue • Obtained early – after submitting a Brownfield Investigation Plan and Remediation Schedule • Two types: CGS §22a-133aa and §22a-133bb • 133aa transferable, discretionary, has many protections, costs 3% of property value • Free for municipalities; other parties can schedule payments over time • 133bb: non-transferable, less protections, free

21. Third Party Liability Relief • Third-party liability limited for non-responsible parties that own a contaminated property and investigate and remediate such properties CGS §22a-133- 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

22. Innocent Land Owners CGS § 22a-452d & 22a-452e • 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)

23. Abandoned Brownfield Cleanup Program • For properties unused or significantly underutilized for 5 years prior • Redevelopment of regional or municipal benefit by non-responsible party • No obligation to investigate/ remediate off-site • Liability relief from state or any third party • No fee, exempt from Property Transfer Act • Must apply prior to property acquisition

24. Brownfield Remediation and Redevelopment Program • 32 properties per year admitted by DECD • Must be bona fide prospective purchaser, innocent property owner or contiguous landowner • Off-site obligation to investigate and remediate eliminated • Liability relief from state or any third party • Fee is 5% value of the land, exempt from Property Transfer Act

25. Municipal Brownfields Liability Relief Program • Open to municipalities or development corps that are not responsible parties • Simple application submitted prior to acquisition • Provides state and third party liability relief, exemption from Property Transfer Act • Not required to fully investigate or cleanup the Brownfield but are required to serve as good stewards of the land

26. Municipal Access Liability Relief CGS § 22a-133dd • Any municipality, economic development entity, or LEP may enter a property to conduct an investigation without liability if: • Owner cannot be located • Property encumbered by tax lien • Notice of eminent domain filed • Municipality finds investigation in public interest to determine if property should be redeveloped • Municipal official determines investigation necessary to assess potential risk to health or environment

27. Transforming Cleanup in Connecticut

28. Why Transform Now • Status quo not good for: • environment and public health – pollution remains and risks can increase with time • economy – too much uncertainty to get needed investment • Everyone has learned from the pros and cons of the current system • Current system too cumbersome and too slow to yield timely results commensurate with risk

29. Entered Cleanup Program 1986 We’re Still Working on It Remington- Bridgeport

30. Waterbury

31. October 2008 visit to Mill #52American Rental, 2100 South Main Street, Waterbury Southern view. Notice: roof collapse, fence down and site accessibility, overgrown vegetation.

32. What We Need To Change CURRENT STATE FUTURE STATE • Unified Program ……. • Primarily a Release-based System • Earlier and Multiple Exits • Self-Implementation and Clearer Obligations • Multiple and Overlapping Programs • Property-based and Release-based System • Few Properties Exit Cleanup Program • Command and Control System TO: TO: TO: TO: HIGH ENVIRONMENTAL STANDARDS PRESERVED

33. BASIC STRUCTURE OF PROPOSED SYSTEM

34. Current RSRs – Limited Options Releases Many Few

35. Future RSRs – Risk Based &Tiered Approach Releases Many Few

36. Key Takeaways • Release-based approach • Self-implementing with robust auditing and enforcement • Multiple, clear, and early exits • Risk-based cleanup options and alternatives • Transparency and meaningful participation • No more Transfer Act • Level playing field for all businesses

37. Keys To Success

38. Ongoing Priorities Continue to work on making DEEP’s processes more efficient • DEEP Remediation Roundtable • Quarterly meetings- Next- August 26, 2014 1:30 pm • Information at www.ct.gov/deep/remediation • Contact me with your ideas/ questions/ concerns • I’m here to listen and help

39. This? • Or This? What do You See? Proposed city boat launch at former oil terminal- Norwich

40. Thank you Mark R. Lewis DEEP Brownfields Coordinator Mark.lewis@ct.gov (860) 424-3768