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PREPARED Workbook: Process for Risk Evaluation, Property Analysis PREPARED WORKBOOK Process for Risk Evaluation, Property Analysis and Reuse Decisions FOR LOCAL GOVERNMENTS CONSIDERING THE REUSE OF CONTAMINATED PROPERTIES Revised April 2016 / Acknowledgements EPA New England wishes to thank its contractors and the many individuals in the New England office, EPA headquarters, and other regional offices that contributed to this workbook. Contractor support was provided by the Office of Brownfields and Land Revitalization, the Superfund Redevelopment Initiative, and the Conflict Prevention and Resolution Center. Technical contractors on the workbook were SRA International, Inc. and Vita Nuova, LLC. SKEO Solutions (formerly E2, Inc.) provided support on initial project scoping. Adamant Accord, Inc. conducted stakeholder outreach. Table of Contents Providing Comments on this Workbook …………………………….. i A Guide to Using this Workbook ………………………….…………. ii Disclaimers …………………………………………...………...........… vi Acronyms …………………………………………………………. vii 1 Introduction ................................................................................................. 1 1.1 Purpose ........................................................................................................ 1 1.2 Background .................................................................................................... 2 1.3 About Risk Management ............................................................................... 2 1.4 About Property Redevelopment .................................................................. 3 1.5 Outline of the PREPARED Approach ......................................................... 4 2 Establishing Project Goals ....................................................................... 6 2.1 Overview ....................................................................................................... 6 2.2 Key Considerations ....................................................................................... 6 2.3 Other General Considerations Related to Goals ........................................... 7 2.4 Specificity of the Project Goals .................................................................... 7 2.5 Revisiting the Project Goals ........................................................................ 8 2.6 Preliminary Reuse Assessment ................................................................... 8 3 Property Recovery Actions ..................................................................... 13 3.1 Types of Property Recovery Actions .......................................................... 13 3.1.1 Actions that Involve Taking Title to the Property.................................. 14 3.1.2 Actions that Do Not Involve Taking Title to the Property ...................... 16 3.2 Screening Property Recovery Actions Based on Project Goals ................. 20 4 Conducting Due Diligence ........................................................................ 23 4.1 Overview of the Due Diligence Process ..................................................... 23 4.2 Phase I Environmental Site Assessment ..................................................... 25 4.3 Phase II Environmental Site Assessment .................................................... 27 4.4 Environmental Investigation and Cleanup Action ...................................... 28 4.5 Determining Regulatory Status ................................................................. 29 4.6 Property Access ........................................................................................... 30 4.7 Key Questions to Consider When Conducting Due Diligence ................... 31 4.7.1 All Appropriate Inquiries ......................................................................... 31 4.7.2 Property History ..................................................................................... 33 4.7.3 Property Status ....................................................................................... 34 4.7.4 Property Appraisal .................................................................................... 37 4.7.5 Regulatory Status ................................................................................... 38 4.7.6 Environmental Conditions ........................................................................ 41 4.7.7 Environmental Restrictions ...................................................................... 45 5 Redevelopment Obstacles ......................................................................... 52 5.1 General ......................................................................................................... 52 5.2 Identifying Redevelopment Obstacles ........................................................ 52 6 Assessing Project Risk ............................................................................... 57 6.1 General ......................................................................................................... 57 6.2 Environmental Liability ............................................................................. 60 6.3 Financial Risk ........................................................................................... 58 6.4 Community Issues ....................................................................................... 58 7 Potential Liability under Federal and State Cleanup Statutes ............ 60 7.1 General………… ........................................................................................ 60 7.2 CERCLA……………………………………..………………………… 61 7.2.1 Overview of CERCLA ............................................................................. 61 7.2.2 Liability under CERCLA ....................................................................... 63 7.2.3 CERCLA Liability Defenses, Exemptions, and Policies ......................... 64 7.2.4 State Voluntary Cleanup Programs .......................................................... 72 7.2.5 Other CERCLA Considerations ............................................................... 72 7.3 RCRA……………………………………………………………………74 7.3.1 RCRA (Subtitle C) – Hazardous Waste ................................................... 75 7.3.2 RCRA (Subtitle D) – Solid Waste Management ..................................... 81 7.3.3 RCRA (Subtitle I) – Underground Storage Tanks ................................... 85 7.4 TSCA (Title I) – PCB and PCB-Containing Wastes and Equipment ........ 89 7.5 Clean Air Act – NESHAP Requirements for Asbestos ............................. 93 8 Project Economics and Financial Analysis ........................................... 96 8.1 General ......................................................................................................... 96 8.2 Pro Forma .................................................................................................... 97 8.3 Using the Pro Forma Worksheet ............................................................... 99 9 Community Issues ................................................................................. 102 9.1 General ....................................................................................................... 102 9.2 Some Key Principles of Community Engagement ................................... 104 9.3 Meeting Community Needs through Sustainable Development .............. 108 10 Managing Project Risk ......................................................................... 111 10.1 General ....................................................................................................... 111 10.2 Risk Management Tools and Approaches ................................................ 112 10.2.1 Types of Tools and Approaches .............................................................. 112 10.2.2 Selected Risk Management Tools ......................................................... 117 10.2.2.1 Property Activities ........................................................................... 117 10.2.2.1.1 Meeting with Federal and State Regulators ................................... 117 10.2.2.1.2 Due Diligence and All Appropriate Inquiries ................................ 117 10.2.2.1.3 Environmental Investigation .......................................................... 117 10.2.2.1.4 Cleanup Action Planning ............................................................. 118 10.2.2.1.5 Reasonable Worse Case Scenario Planning ................................. 118 10.2.2.1.6 Engaging Stakeholders ................................................................... 118 10.2.2.1.7 Financial Analysis .......................................................................... 118 10.2.2.1.8 Timing Municipal Involvement ..................................................... 119 10.2.2.1.9 Interim Cleanup Action .................................................................. 119 10.2.2.1.10 Cleanup Action ............................................................................... 120 10.2.2.1.11 Voluntary Corrective Action ........................................................ 121 10.2.2.1.12 Maintenance and Monitoring of Remedial Systems ..................... 121 10.2.2.1.13 Institutional Controls .................................................................... 122 10.2.2.1.14 Oversight of the Environmental Contractors ................................. 122 10.2.2.1.15 Following Accepted, Good Commercial Practices ........................ 122 10.2.2.2 Statutory/Regulatory Protections ....................................................... 123 10.2.2.2.1 Statutory Exemptions and Defenses ............................................
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