California Brown Field Development Framework

8/8/2019 California Brown Field Development Framework

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Brownfield DevelopmentFramework

Prepared by Lim Kok Ching


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Objectives of this study

To develop a comprehensive framework on the subject ofbrownfield development that could be used by planners anddevelopers when they are considering investments orredevelopment of a brownfield

To develop a generic framework that could serve as areference model for adoption by other developing countriesto assist in their pollution control and brownfield developmentefforts

To develop a framework that helps to analyze how changesin each component affect the others


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What are brownfields?

Brownfields are abondoned, idled, or under-used industrial andcommercial facilities where expansion or redevelopment iscomplicated by real or perceived environmentalcontaminations


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3. Legal liability

framework

0. Brownfield

dynamics

- Planner

- Developer

2. Contaminant

framework1. Oversight

agencies

6. Public/private funding

sources

4. Site due

diligence options

5. Risk control

strategies

Brownfield framework


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1.O

versight agencies Federal Level

Environmental Protection Agency (EPA)

State Level

Department of Toxic Substances Control (DTSC)

Regional Water Quality Control Board (RWQCB)

Local Level

Certified Unified Program Agencies (CUPA)

County/City Government


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2.Contaminant framework

Contaminant Definitions & Clean up Goals A source of litigation - conflicting federal and state definitions Safe Drinking Water Act (SDWA) with mandatory five year review of

Contaminant Candidate List (CCL) ensures regular updating of new

contaminants Applicable and/or Relevant and Appropriate Requirements (ARARs) or

look-up tables EPA Region 9 Drinking Water Standards and Health Advisories Tables EPA Region 9 Preliminary Remediation Goals (PRGs) for soil

Site Specific Risk Assessment: expert opinions on maximumcontaminant level (MCL)

Medium: Soil, outdoor air, indoor air, groundwater, surface water RemediationMethods

Soil removal, source control & containment, treatment, institutionalcontrols, natural attenuation, phytoremediation


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3.Legal liability framework

Federal Level Resource Conservation and Recovery Act (RCRA)

Comprehensive Environmental Response, Compensation

& Liability Act (CERCLA or Superfund)

State Level Hazardous Substances Account Act (Californias

Superfund)

HazardousWaste Control Act (Californias RCRA)

Porter-CologneWater Quality Control Act California Environmental Quality Act (CEQA)

Common Law


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4.Site due diligence options (

1)

Limited Site Assessment Does not provide federal liability defense protection

Phase 1 Environmental Site Assessment (ESA) ASTM E152701 qualify for federal liability protection and

certain state protection

$3,500-$6,000

Phase 2 Environmental Site Assessment (ESA) Site conceptual model

Intrusive sampling and analytical methods

Outlines remediation or cleanup process

6-8 weeks, upwards of $50,000


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4.Site due diligence options (

2

) Preliminary Endangerment Assessment (PEA)

DTSC program

Required if developing public school sites

Environmental Risk Assessment DTSC program

Human Health Risk Assessment

Ecological Risk Assessment

Method also addresses continued resource degradation


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5.

Risk control strategies Legal Risk

Prospective Purchaser Agreements California Land Reuse and Revitalization Act (CLRRA or

AB389) Unified Agency Review Program (AB206) The Polanco Redevelopment Act

California Land Environmental Restoration and Reuse Act(CLERRA or SB32)

Financial Risk Environmental Insurance Contractual Buyer/Seller Agreement


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6.

Public/private funding sources (1

)Federal Level:

Environmental Protection Agency (EPA) Assessment Grants (up to $200,000 per site)

Revolving Loan Fund Grants (up to $1

million cleanup) Cleanup Grants ($200,000 per site up to 3 sites)

Department of Housing and Urban Development (HUD) BrownfieldEconomic Development Initiative (BEDI)

Department ofCommerce, Economic DevelopmentAdministration (EDA) N

o specific program, sees brownfield as priority ($900

k) Department ofTransportation (DOT)

needs to link brownfield to transportation issues

Army Corps of Engineers (the Corps) needs to link brownfield project to water issues


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State Level:

California State WaterResources Control Board Underground Storage Tank Cleanup Fund (USTCF) Pays for petroleum UST cleanup

Office ofthe State Treasurer, California Pollution ControlFinancing Authority (CPCFA) Cal ReUSE Forgivable Loan Program grants $300/500k in forgivable

loans for site assessments Phase 1 and 2 and technical assistance(forgiven if project is cancelled)

Cal ReUSE also gives up to $5 million in grant or loans for clean up forinfill residential or mixed-use projects

DTSCTargeted Site Investigation (TSI) Program site investigation free of charged up to $100,000

Department of Housing andCommunity Development Transit Oriented Development (TOD) Housing Program at max $17

million per site for housing development Infill Infrastructure Grant Program ($250k-$20million) for high density

housing redevelopment on infill sites

6.


)


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Local Government Level:

Tax Increment Financing & Redevelopment Agencies

General Obligation Bonds

Mello-Roos Districts Revolving Loan Fund

Other sources:

Continental Environmental Redevelopment Fund

private, for profit company with public purpose

Center forCreative Land Recycling (CCLR)

Project learning program supports up to $25,000/project

6.


)


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0.

Brownfield dynamics

Value ofbrownfieldproject/site

Incrementalvalue ofland use ($)

Incrementalbenefits tohuman andenvironment()

Costs ofcleanup

($)

Risks ofuncertaintyand liabilities($)

= + - -

[feasible if >0] *Commercialdecision

*Social decisionwhereby 1 1$

(exchange ratevaries over timeand space)

*function ofseveral factors

and net ofpublic funding

*occurrenceprobability xestimatedcost


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Prevalence of unenlightened Government/Businessactions (orRegulatory Capture?)

Hydraulic Fracturing for gas Energy Policy Act of2005 exempts Hydraulic Fracturing from regulation

under the Clean Air Act, Safe Water Drinking Act, Clean Water Act, andCERCLA Chemical fluid is toxic, potential endocrine disruptor, and contaminates

groundwater, aquifer etc. Hydraulic fracturing being promoted aggressively by Big Oil in Europe Creation of new brownfield sites

Gulf oil spill Transportation pathway ofOil-Dispersant Mixture over land mass Surrounding states and countries potentially affected Creation of new brownfield sites

Relevance today


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Demand for property developers specialising inbrownfield development will rise

Demand for specialists in brownfieldremediation will rise

Demand for environmental legal services willrise

Predictions


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THANK YOU

California Brown Field Development Framework

Documents

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