Brownfields Grants Awarded To Madison, Wisconsin

U.S. Environmental Protection Agency Region 5 has awarded EPA brownfields grants totaling $800,000 to clean up contaminated properties in Madison, Wisconsin. The grants include:

• $400,000 to clean up a former automotive sales and repair site on East Washington Avenue. The City will provide another $80,000 toward the cleanup.
• $400,000 to conduct environmental assessments and plan future cleanups in the surrounding area.

The City of Madison previously received a $400,000 cleanup grant for the East Washington property from WDNR’s brownfield revolving loan program, which is also funded by EPA.


Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.
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Region 7 Brownfields Grant To Nebraska Tribe

US EPA Region 7 Office of Tribal Affairs has awarded two grants to the Winnebago Tribe of Nebraska to support a brownfields tribal response program and increase the capacity of its environmental protection department to protect human health and the environment.

• A $94,298 grant, expressed through a cooperative agreement, will allow the tribe to continue the process of establishing a brownfields tribal response program to address contaminated sites on the reservation with the goal of returning them to beneficial reuse.
• A $15,000 grant to the tribe’s Environmental Protection Department will help the department build its overall capacity to protect human health and the environment.

Specific work to be funded by the grant includes expansion of the tribal solid waste program, including tire removal; research for additional funding opportunities; the mapping of abandoned homesteads; and working with the tribe’s land management office to plot no-till acreage.

EPA provides financial assistance to states and tribes to help them implement environmental programs. States and tribes may receive these funds in individual environmental program categorical grants, or choose to combine grants in a performance partnership grant. The Winnebago Tribe of Nebraska is one of nine federally recognized tribes within EPA Region 7.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Revised SBA Procedure SOP 50 10 5(E) Effective June 1

A new U.S. Small Business Administration (SBA) procedure became effective June 1, 2012 for the agency’s 7(a) and Certified Development Company (CDC) loan programs. As of that date, all documentation submitted in support of SBA loans needs to be updated to reflect SOP 50 10 5 (E), not its predecessor, SOP 50 10 5(D).

Since its initial release, the SBA has made a number of revisions and clarifications to SOP 50 10 5, Chapter 4, Section III (Environmental Policies and Procedures) in response to comments from lenders and the environmental professionals who support work under these two lending programs. Previous revisions reflected new language clarifying the role of qualified environmental professionals, additions/deletions to the NAICS code list of environmentally sensitive industries, a unique set of requirements for gas stations loans or loans on properties that once housed dry cleaners, among other changes.

Unlike previous SBA updates, SOP 50 10 5(E) is much more similar to the previous version (D). Version E does have one significant change related to loans processed under the SBA SLA program (as is the case for the SBA’s PLP, SBA Express, Export Express and Patriot Express programs). Lenders must still follow the guidelines, but do not have to submit documentation or obtain SBA’s concurrence prior to approval or disbursement of the loan in most cases.

Like the previous version of the SOP, for all property (except for a unit in a multi-unit building), the lender/CDC must compare the property’s current and known prior uses and compare the NAICS code(s) to the list of environmentally sensitive industries. Then, if there is a NAICS code match, the Environmental Investigation must begin with an AAI-compliant Phase I ESA conducted by a qualified environmental professional, regardless of the amount of the loan. In this revision, SBA did not make any changes to the qualifications required of environmental professionals, the NAICS code list, the Reliance Letter language or other elements of the environmental requirements.

 Caltha LLP is a Qualified Environmental Professional and assists Lenders in meeting SBA Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.



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Revised ASTM E1527 For Phase 1 Assessments

In April 2012, the ASTM E50 task met to continue discussions regarding revisions to the ASTM E1527-05 Phase I Environmental Site Assessment Standard. The last time the standard was updated was in 2005, when EPA released the details of its All Appropriate Inquires Rule, which cites the current standard as “at least as stringent” as EPA’s rule. According to ASTM bylaws, standards must be updated and reissued every eight years to avoid sun-setting and becoming invalid. A task group formed in 2010 and has since issued two revised versions to sub-committee voting.

In the most recent draft of the standard, the task group has proposed several changes to the standard, most intended to be clarifications rather than changes to industry practices. These proposed revisions include:
• Clarification about when an Agency File Reviews should be conducted as part of a Phase I ESA to create greater consistency without adding undue burden on professionals
• Introduction of a new term, Controlled Recognized Environmental Condition, which would cover past contamination to soil and groundwater that has previously been remediated. A CREC would be distinct from a Historical Recognized Environmental Condition (REC) and a REC.
• Reference to the ASTM E2600-10 Vapor Encroachment Screening Standard and explanation that vapor plumes should be treated as any other source of contamination would be treated within the Phase I ESA.

The task group’s meeting included discussions on each of these topics, and focused on the negative votes and comments that were returned in the latest ballots. The group will adjust the draft accordingly over the next several weeks and is likely to send a new draft to main committee ballot this fall. It is expected that the new E1527 Standard will be finalized sometime in 2013, pending EPA approval and update to the AAI rule

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

New SBA Environmental Review Policy Effective October 1, 2011

Effective on October 1, 2011, the Small Business Administration has revised its SOP relating to environmental review and environmental investigations. Any lenders participating in the 7(a) or CDC loan programs must follow the new requirements under SOP 50 10 5(D). As of October 1, 2011, all documentation submitted in support of SBA loans needs to be updated to reflect SOP 50 10 5 (D), not its predecessor, SOP 50 10 5(C).

Some of the important modifications to the SBA’s environmental due diligence requirements under SOP 50 10 5(D) include:

• The only change to the NAICS code list of environmentally sensitive industrial classifications is for 8111 Automobile Repair and Maintenance. All loans under this NAICS code must start with an AAI-complaint Phase I environmental site assessment with the exception of "car wash only" facilities, which can start with a Transaction Screen.


• If the Property is a unit in a multi-unit building (defined as any non-industrial, multi-unit building that is comprised of four or more individual units), the investigation must proceed as follows:
  -For loans $150,000 and below, the Environmental Investigation may begin with an Environmental Questionnaire.
  -For loans more than $150,000, the Environmental Investigation must, at a minimum, begin with an Environmental Questionnaire and a Records Search with Risk Assessment.


• Within the unique requirements for gas station loans, the SBA:
  - expanded the definition of gas station loans to also include "commercial fueling facilities;" and
  - replaced the previous requirement for UST testing with a requirement that the environmental professional ensure compliance with all state requirements pertaining to tank and equipment testing.


• The provisions for conducting a lead risk assessment for lead based paint and testing for lead in drinking water for certain "special use facilities" (e.g., day cares, nursery schools) were expanded to include "residential care facilities occupied by children."


• To the definition of Environmental Questionnaire, the SBA allows for:
  - The EP to assist with the responses to the questionnaire.
  - Use of the ASTM's questionnaire for Transaction Screens ( ASTM E1528-06) as a protocol for the Environmental Questionnaire.


• To the definition of "Phase I ESA," the SBA added language from the EPA’s AAI rule that allows a person who is not a qualified EP to assist in an AAI-compliant Phase I, provided the person works under the supervision or responsible charge of a qualified EP and the EP reviews and signs the report.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements, including Records Search With Risk Assessment of any property nationwide. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.




For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Draft Revision To ASTM Standard For Phase 1 ESA Completed

The E1527 task group has completed the draft revision to E 1527 and the draft has been submitted to the E50.02 subcommittee for review and input. After initial discussions and review of recent court interpretations involving Phase I ESAs, the overall objective that was established to guide the task group through this revision process was to clarify the process and strengthen the deliverable. The task group has coordinated these revision efforts with EPA, and anticipates completing the full ASTM balloting process no later than late 2012 to allow EPA time to complete its process necessary to reference the updated standard by the end of 2013.

Some of the key elements of the proposed modifications include the following:

• Historical Recognized Environmental Conditions (HRECs): The task group recognized that Environmental Professionals (EPs_ are addressing HRECs with residual contamination differently, so the goal was to establish consistency in how these conditions are described and presented in the final report.
• User Responsibilities: The Group believed that is broad industry confusion about the user responsibilities. The task group did not propose a change to the definition of the user, but the revised standard does explain that a user seeking an LLP or an EPA brownfield assessment grant has certain obligations, in accordance with the CERCLA statute and as specified in the EPA All Appropriate Inquiries rule.
• Regulatory Agency File Reviews: The task group generally agreed that a review of agency file records should be conducted if the property is identified on one of the standard record source databases outlined in section 8.2.1. A new section 8.2.2 has been added to emphasize the need to conduct agency file reviews, recognizing that this effort is subject to reasonable time and cost constraints. This is particularly important with the connection to Continuing Obligation requirements that must be met after property acquisition to maintaining an LLP.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Revised ASTM Standard For Phase 2 Environmental Site Assessment

ASTM has revised the standard practice guidance for conducting Phase 2 Environmental Site Assessment (ASTM E1903 - 11 Standard Practice for Environmental Site Assessments: Phase II Environmental Site Assessment Process). The revised guidance provides practical procedures for further assessment of a commercial property with recognized environmental conditions (REC). It is intended to assist in the evaluation of known releases or likely release areas identified by the user or Phase II Assessor.

Some of the significant changes to the revised standard method include:

• Language to confirm that the Phase II Assessor does not provide legal or business advice


• Use of a scientific approach, which is a collaboration with the servicer provider and user


• Revision of “Assessor” definition to incorporate “Environmental Professional” definition


• Concept that assessment steps are to be implemented “in the manner and level of detail appropriate to achieving the objectives”
  
  

The revised standard practice is intended for use on a voluntary basis by parties who wish to evaluate known releases or likely release areas identified during a Phase I ESA. The practice does not address the evaluation of business environmental risks in light of data collected through the Phase II ESA. Such evaluation is a function of site- and transaction-specific variables, and of the user’s objectives and risk tolerance. However, this practice assumes that the Phase II ESA process will be planned and conducted with such variables in mind, and that the user will evaluate legal, business and environmental risks in light of known data relating to the particular site and transaction, and in consultation with legal and business advisors as well as the Phase II Assessor.

Likewise, ASTM E1903-11 does not define the threshold levels at which target analytes pose a concern of significance to the user. Users may apply this practice not only in light of applicable regulatory criteria and relevant liability principles, but also to meet self-defined objectives.

Regarding reliance on the Phase II, the revised ASTM standard does not define whether or to what extent any person other than the user may use or rely upon a Phase II ESA prepared for the user. The appropriateness of third party use or reliance is a contractual matter that should be addressed between user and Phase II Assessor.

ASTM E1903-11 lays out basic principles that are an integral part of the practice of conduct Phase II investigations, including the elimination of uncertainty, the significance of the failure to detect specific chemicals, the limitations of information, and the significance of possible analytical laboratory error.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Iowa Grant Program To Fund Environmental Assessment And Cleanup

The Iowa Department of Natural Resources – Financial and Business Assistance (FABA) Program has created the Derelict Building Grant Program. The program was established to assist small communities and rural counties in improving the attractiveness and appearance of their jurisdictions by providing them financial assistance to address derelict buildings. In accordance with the statutory requirement on how these funds are to be used the emphasis will be on landfill diversion through the recycling and reuse of building materials.

The eligibility requirements will entail the derelict building be located in a town or unincorporated county area of 5,000 residents or less and require the building to be owned or in the process of being owned by the town or county. The program will provide the following:

100% reimbursement for a certified Asbestos Containing Material (ACM) inspection.
100% reimbursement, not to exceed $5,000, for removing ACM. A 50% cost share is required for those costs exceeding $5,000.
100% reimbursement not to exceed $3,000 for conducting a Phase I Environmental Audit. Applicant is responsible for all costs exceeding $3,000.
50% reimbursement not to exceed $5,000 for conducting a Phase II Environmental Audit.
Building Renovation: If the building is going to be renovated, 50% reimbursement not to exceed $25,000 is available for offsetting costs related to removing materials for reuse, either at the site or offsite, or for recycling. The grant also compensates for the purchase and installation of reused or recycled materials that will be incorporated into the project.
Deconstruction: If the building is going to be deconstructed, 50% reimbursement not to exceed $50,000 is available for offsetting costs related to deconstruction.

The program is funded by the DNR’s Solid Waste Alternatives Program (SWAP) for the next three years. DNR is partnering with Keep Iowa Beautiful in the application and review process.

Caltha LLP assists clients in Iowa and nationwide in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Renewable Energy Projects Through RE-Powering America’s Land Initiative

U.S. Environmental Protection Agency (EPA) is soliciting applications from states, tribes, regional governments, and communities that are interested in the development of renewable energy on current and formerly contaminated properties. The opportunity is offered through EPA’s RE-Powering America’s Land initiative, which takes a multi-pronged approach to site cleanup and development of renewable energy production facilities on potentially contaminated land. Potentially contaminated lands that are being considered include Superfund, brownfields, RCRA corrective action, and former landfill or mining sites.

The US Department of Energy’s National Renewable Energy Laboratory will conduct renewable energy feasibility studies for the selected sites to determine the best renewable energy technology for the site, the optimal location for placement of the renewable energy technology, potential energy generating capacity, the return on the investment, and the economic feasibility of the renewable energy projects.

Through this initiative, potentially contaminated sites will be reused and redeveloped to increase renewable power generation, while also improving communities, creating jobs, and decreasing the use of greenspace necessary for renewable power plants. Proposals are due to EPA by May 20.

Caltha LLP assists public & private sector clients in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Environmental Review Requirements Under New SBA 504 Refinance Program

In response to the significant volume of commercial real estate loans that will mature between now and December 31, 2012, the U.S. Small Business Administration (SBA) has launched a new, temporary 504 refinancing program. Structured much like the SBA's traditional 504 loan program, borrowers cooperate with third-party lending institutions and SBA-approved Certified Development Companies (CDC).

SBA began accepting applications for financing under this program on February 28 and will keep the program in effect until September 27, 2012. Congress authorized SBA to approve up to $15 billion in loans under this program ($7.5 billion in both fiscal 2011 and 2012). This funding is designed to help small business owners who are having difficulty refinancing loans because of record-high real estate values when the loans were originated.

SBA has indicated that the environmental review requirements for 504 refinancing will be the same as those of the SBA's standard 504 (and 7(a)) programs, as detailed under SOP 50 10 5(c). This includes mandatory Phase 1 environmental Site Assessment (ESA) for certain types of properties, and requirements for Transaction Screening Assessment or Records Search With Risk Assessment (RSRA) for other types of properties.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website