Wendy True Noe, P.G., American Geosciences, Inc.
David W. Parsonage, American Geosciences, Inc.
David R. Perry, P.G., American Geosciences, Inc.
Most consider the reuse of industrial property, or brownfields, to be preferable to the development of greenspace. However, reuse of industrial properties can and often does present the prospective owner with costly environmental issues. In order to promote reuse of industrial properties, the special industrial area (SIA) standard under Pennsylvania’s voluntary Land Recycling and Environmental Remediation Standards Act (Act 2) provides a means for buyers of contaminated industrial sites that meet the eligibility requirements to utilize focused, risk-based cleanup requirements to obtain a release of liability from the State. A thorough understanding of the opportunities and limitations of these types of regulatory programs can help meet property transaction goals while obtaining the added benefit of environmental liability protection. A case study detailing the successful use of the SIA program is presented.
American Geosciences, Inc., (AGI) was originally retained by a prospective owner to conduct a Phase I Environmental Assessment of a 1.7-acre property with a 54,000 square foot building. The client was interested in reusing the entire property for commercial purposes and planned to construct additions to the building. Previously, portions of the property had been used by a trucking company, gasoline station, printing operation, and light assembly operations. Contaminants of potential concern at the property included petroleum hydrocarbons, solvents, inks, and heavy metals.
Based on the site’s history, investigations of soil and groundwater were conducted to characterize the site for property transaction negotiations. During the course of the investigation, we identified the opportunity for our client to utilize the Act 2 SIA standard to also obtain a regulatory release of liability. This regulatory program is intended to foster redevelopment in “target enterprise” zones, and allowed the prospective owner to apply for various funding sources, including grants. Although the site and our client’s objectives appeared to “fit” the SIA cleanup approach, the challenge was to convince the State to accept the existing property transaction Phase II investigation so the project could proceed on schedule.
Use of the SIA regulatory framework typically requires the State’s review and approval of a comprehensive work plan detailing the investigation prior to conducting the field activities. However, in this case the field investigation had taken place prior to the site’s enrollment into the SIA program. Therefore, a meeting was conducted at the site with the State to discuss the Phase II investigation activities and determine the remaining requirements to achieve an SIA site closure. Through effective presentation of the existing data and negotiation, AGI was able to obtain the State’s approval of the characterization activities conducted at the property with the addition of a few administrative details.
AGI then prepared a baseline remedial investigation report identifying imminent threats to public health or the environment and the owner’s intended use of the property, as required by the standard. The baseline report was used to construct the consent order and agreement between the property owner and the State that outlined the requirements to satisfy the SIA standard. Engineering and institutional controls were implemented to eliminate exposure to the soil and groundwater that contained concentrations of inorganic constituents at concentrations above the State standards. A deed notice/restriction was employed to ensure there would be no exposure to groundwater at the site in the future. Ultimately, the investigation and SIA risk-based cleanup strategy was used to achieve our client’s property transaction and redevelopment goals, while providing the added benefit of environmental liability protection.