Minnesota s Brownfield Programs. Gary L Krueger Supervisor, Superfund/Brownfields May 23, 2018

Transcription

1 Minnesota s Brownfield Programs Gary L Krueger Supervisor, Superfund/Brownfields May 23, 2018

2 Minnesota s Brownfield Program Petroleum Brownfields Program (PBP) MN Statute 115.C, the Petroleum Tank Release Cleanup Act Petroleum related contaminants MPCA Voluntary Investigation & Cleanup (VIC) Program MN Statute 115.B, the Minnesota Environmental Response & Liability Act (MERLA)(Superfund) Non-petroleum contaminants MDA AgVIC Program Agricultural Chemicals

3 Purpose of Brownfield Program Created by the legislature to address liability concerns & provide technical oversight Voluntary Parties include: Developers Local Units of Government Lenders Property/Business Owners Non-Profit Organizations Anyone involved in buying, selling, financing, or redeveloping contaminated property

4 What is a Brownfield Site? U.S. Environmental Protection Agency (EPA) Definition: Real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Brownfield sites are commonly abandoned or unused property that is blighted by real or perceived contamination. BF sites are usually identified during the property transaction process. Lenders require a Phase I Environmental Site Assessment (ESA) May identify past/present activities, occupants, uses, etc. that indicate contamination may be present.

5 What is a Brownfield Site? If the Phase I ESA identifies Recognized Environmental Conditions (RECs), then a Phase II ESA will be needed. Collection of soil, groundwater, soil gas samples for analysis of contaminants. If contamination is present at the Site, you and/or your lender may want certain assurance letters from the MPCA s Brownfield Programs. Contamination isn t the responsibility of the new owner; Contamination does not require cleanup; Contamination cleanup has been completed; Contamination risk is being managed; The act of lending does not associate an entity with the contamination.

6 Minnesota s Brownfield Programs Minnesota Pollution Control Agency (MPCA) Voluntary Investigation and Cleanup (VIC) Program Former dry cleaners, old dumps, plating facilities, rail yards, contaminated fill, etc. Hazardous substances: Metals, VOCs, PAHs, PCBs Petroleum Brownfields Program (PBP) Former gas stations, bulk plants, railroads, etc. Tank or Non-Tank sources. Activities undertaken solely for redevelopment are not reimbursable by Petrofund. Minnesota Department of Agriculture (MDA) Agricultural Voluntary Investigation and Cleanup (AgVIC) Program Sites with agricultural related contamination. Fertilizers, pesticides, wood treatment & some arsenic. Legal use of pesticides not a release (i.e. mercury fungicide golf courses)

7 What do the MPCA BF Programs do? Brownfield (BF) staff provide technical oversight of investigations and cleanups at sites. The VIC & PB Programs offer liability assurances. These assurances facilitate property transfer and redevelopment. Governed by: MN Statute 115.B, the Minnesota Environmental Response & Liability Act (MERLA), and MN Statute 115.C, the Petroleum Tank Release Cleanup Act. On-line application Fee for service programs, charge $125/hr/staff person.

8 Liability Assurances Lender No Association Determination No Association Determination (NAD) No (Further) Action Determination Off-Site Source Determination Certificate of Completion (COC) Leak Site Tank Removal Verification Leak Site File Closure Confirmation Off-Site Tank Release Determination General Liability (GL) Letter Vapor Completion Letters Technical Assistance

9 Minn. Stat. 115B.178 Commissioner May issue determination to Requests that proposed actions will not associate Requestor with Identified Releases of Hazardous Substances Commissioner s Determination may be subject to Reasonable terms and conditions Lender NAD/Lender Letter NAD A statement to lenders of the MN statute that they are not liable when solely providing financing. Responsible Parties (RPs) are not eligible. Must have ownership interest in the site. Must have an Identified Release (IR) of hazardous substances, pollutants, or contaminants. Liability protection when a party follows their specific Proposed Actions at the site. Risk Management/Mitigation is Primary Retroactive NAD for past actions VIC Assurances - No Association Determinations

10 No Association Determination (Soil Vapor) Soil gas only investigations are generally not sufficient. Soil and/or Groundwater sampling also needed, or justify not necessary. i.e. within known PLP listed vapor plume site. One sampling event is enough data to document an Identified Release and issuance of NAD Minn. Stat. 115B.177 Off-Site Source Determination is not limited to Groundwater Releases

11 Conditions of NAD Letter(Soil Vapor) Conduct and report 2nd seasonal sampling event or implement vapor mitigation measures, i.e. SSDS. Resolve potential vapor risks for building(s) on the property Define the vapor impacts on property Record appropriate institutional control Environmental Covenant active vapor mitigation systems

12 Two New Vapor Assurance Letters Completion of vapor mitigation response actions for on-site buildings Issued for a specific building(s) Non-Responsible Parties only Must have met terms/conditions of NAD Completion of vapor assessment Determination that building(s) mitigation is not necessary Appropriate evaluation of property Non-Responsible Parties only Must have met terms/conditions of NAD Request Technical Assistance on VRP application

13 Vapor Technical Assistance Best Management Practices for Vapor Intrusion Vapor Specialists/Vapor Hotline ( ) Commercial/Industrial Stakeholder Advisory Group Development of BMPs for commercial/industrial properties Members include Bankers, Consultants, Legal, Real Estate Developers, Grant Funders, Minnesota Brownfields, MDH, Local Unit of Government

14 VIC Assurances - No Action & No Further Action Determinations No Action No cleanup is required. No Further Action Cleanup has been completed. May be issued to RPs and Non-Responsible Voluntary Parties (VPs). Must be an IR of hazardous substances, pollutants, or contaminants. Extent & magnitude of the IR must be defined. RPs required to evaluate extent of releases Non RPs (VPs) do not need to go beyond property boundary Can be issued with conditions such as: Long term groundwater monitoring, ongoing vapor mitigation, etc. Institutional Controls in place/recorded Environmental Covenant (UECA)(114E) ongoing actions (i.e. SSDS systems) Property Affidavit (115B.16)

15 PBP Assurances Tank Removal Verification Letter Verification that the tanks which caused the release have been removed. States that the site was source of a petroleum tank release. States that the prospective buyer or lender will not be considered a RP. General Liability Letter States the definition of a RP in accordance with MN Statute 115.C. States the special provisions for mortgagors. States that if a party comes into possession of a site after the tanks have been removed, that party is not a RP. File Closure Confirmation Letter Confirmation that the leaksite is closed. States that a petroleum tank release occurred at the site. States that the leaksite closure status is still valid. Joint VIC/PBP projects

16 Phase I ESA Phase II ESA Cleanup Plan Cleanup & Redevelopment How it Works

17 Phase I Environmental Site Assessment (site history, known or suspected contamination) Consistent with All Appropriate Inquiries (AAI) Rule Interviews with past/present owners/operators Visual inspection of property and adjoining property Review of readily available regulatory records Time Limit 1 year Phase II ESA (collect soil, groundwater, and/or soil vapor samples) Based on findings of Phase I Prepare Cleanup Plan (what areas need cleanup?) Response Action Plan/Construction Contingency Plan No retroactive approval Complete Cleanup & Redevelopment (cleanup is complete, redevelopment typically complete, final assurance letters given) Institutional Controls in place prior to final no action/no further action Project Phases/Due Diligence

18 Tips to Move Through the BF Programs More Efficiently Ask a lot of questions of your consultant and government agencies & follow appropriate(petroleum, vapor, etc.) guidance when applicable. Know what is required to redevelop a site. This will reduce anxiety about the cleanup and will help maximize liability assurances. Maintain good communication with your consultant and BF staff. Make sure that investigations are complete. No surprises and no extra costs from additional sampling. Determine the level of attorney involvement needed. Legal advice should help address liability risk.

19 How Long Does it Take to Go Through the BF Programs? The length of time to get the desired liability assurances is based on: The type of assurance needed, The complexity of the site, The quality and completeness of the technical information provided about possible or real contamination at the site, and The length of time the applicant takes to complete the project investigations, reports, and tasks. MPCA Brownfield Program GOAL is response within 42 days (30 working days). Dependent on quality of submittals Generally 1 to 3 years.

20 New VIC/VRP Sites Enrolled through April 2018!

21 Brownfield staff - other responsibilities Targeted Brownfield Assessment activities: MPCA conducts Phase I/II actions to assist Local Units of Government in redevelopment projects (i.e. tax forfeited property, Brownfield to Greenspace) Guidance/Policy development ISVs, SRVs, Remediation Program National environmental associations Vapor Specialists/Vapor Hotline BMP Stakeholder Workgroup (Commercial/Industrial) Drycleaner Program management Emerging Contaminant issues (i.e. PFCs) Superfund Project Management (TCAAP/NIROP) Site Assessment activities DEED/Met Council grant reviews/ranking Minnesota Brownfields

22 Minnesota Targeted Brownfield Assessment Program The VIC Program receives an EPA 128(a) grant each year & a portion can be used for assessments

23 What can MNTBA Program do for you? Apply to MNTBA Program MPCA Contractors Complete Work Cleanup Plan for Site!

24 Who can apply to the MNTBA Program? Municipal government County government Tribal government Non-profit organizations

25 How to apply? a PDF of the SHORT application, that s it! Application materials on MPCA website: e/minnesota-targetedbrownfields-assessment-program Applications on a rolling basis Non metro-area sites are encouraged to apply. Preference is given to brownfield to greenfield sites Federal Superfund sites are not eligible. Call/ John Betcher, MNTBAP Coordinator john.betcher@state.mn.us

26 MPCA Brownfields webpage MPCA Remediation Division guidance webpage MPCA Brownfield Success Stories webpage MDA AgVIC webpage Minnesota Brownfields Helpful links

27 Questions? Gary L Krueger Gary.krueger@state.mn.us

28 Brownfield Grants and Loans in Minnesota Kristin Lukes Director Brownfields and Redevelopment Unit

29 Brownfield Grants and Loans in Minnesota Department of Employment and Economic Development (DEED) Statewide Investigations, Cleanup Grants, Cleanup Loans Metropolitan Council TBRA Investigation and Cleanup Grants Hennepin County ERF Investigation and Cleanup Grants, Cleanup Loans

30 Brownfield Grants and Loans in MN (cont.) Ramsey County ERF Cleanup Grants MPCA TBA, Drycleaner Fund, others? EPA Recipients RLF, Assessment, Cleanup

31 Competitive Investigation/Cleanup Grants All grant deadlines are: May 1 and November 1 Per cycle: DEED: ~ $4-5 million Met Council: $2.5 million Counties depend on fees collected: Ramsey: ~ $500,000 Hennepin: ~ 1 million APPLY TOGETHER

32 Eligible Applicants Public Entities Cities Counties HRA EDA Port Authorities *Hennepin County ERF grants and loans and DEED loans can be private applicant

33 Eligible Costs Investigation (Phase I, Phase II, RAP Development) Cleanup of: Soil Ground water Soil Vapors *some can pay for asbestos, acquisition, demo

34 Funding Priorities Jobs (new and retained) Increase in property tax Significant Cleanup Ready to go Other specific criteria per funder

35 For more info: DEED: Met Council: Hennepin County: Ramsey County: Brownfields Resource Guide: