brownfield redevelopment resources petroleum orphan sites...
TRANSCRIPT
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Brownfield Redevelopment Resources –
Petroleum Orphan Sites Initiative (POSI)
Michele Oertel
Federal Funding & Community Relations Coordinator
317-234-0235
www.brownfields.in.gov
Midwestern States Environmental
Consultants Association
Indianapolis April 28, 2016
Environmental Stewardship. Economic Development.
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Today’s Topics
What are brownfields and why do we care?
How do petroleum UST sites fit into the redevelopment picture?
Who needs financial, technical, and/or legal/liability assistance?
How can the Indiana Brownfields Program help?
What is POSI?
What are some redevelopment success stories in Indiana?
What are some take-home points?
Brownfield? Problem Property?
Obstacle? Opportunity?
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What is a Brownfield?
Indiana defines a brownfield site as:
a parcel of real estate
abandoned, inactive, or underutilized
on which expansion, redevelopment, or reuse
is complicated because of the presence or
potential presence of a hazardous substance,
a contaminant, petroleum, or a petroleum
product that poses a risk to human health and
the environment.
Similar to U.S. EPA definition (real property)
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What are Obstacles to
Brownfield Redevelopment?
Real or potential environmental contamination
Assessment / Cleanup costs
Liability concerns for the lender, prospective purchaser,
and third parties
Economic development climate
Viability of re-use plans for the site
Unknowns – risks, ownership, access
Lack of resources – knowledge, money, partners
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Why do we care about
Brownfield Redevelopment?
Industrial (single building or park complex)
Commercial (bank)
Retail (shopping center, grocery store)
Residential (houses, condos, apartments)
Public (government offices)
Greenspace (park, soccer field, golf course, trail,
greenway)
Mixed
Environmental Stewardship. Economic Development.
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Indiana Brownfields Program
Background
Created by 2005 legislation (SEA 578); IC 13-11-2-19.3
Housed under the Indiana Finance Authority (IFA)
Funded by state appropriations & federal funds
Allows for voluntary participation – not enforcement
Provides governmental assistance to address environmental issues
that impede brownfield redevelopment
Works in partnership with U.S. EPA & IDEM
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Indiana Brownfields Program
Background
Works typically with communities or prospective purchasers vs. RPs
Relies on existing laws/regs/policies to protect
human health and environment
Has different processes for different incentives
Uses consultants differently per incentive
Utilizes IDEM’s Remediation Closure Guide
Offers closure documents
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Indiana Brownfields Program
Lends a Hand
Helps stakeholders by providing:
Educational Assistance
Financial Assistance
Legal Assistance
Technical Assistance
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Indiana Brownfields Program
Lends a Hand
Coordinates with U.S. EPA to provide
financial assistance
Coordinates with IDEM’s
Voluntary Remediation Program
Certificates of Completion
Covenants Not to Sue
Coordinates with other related
IDEM programs as appropriate
Coordinates with other agencies
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Financial Incentives
Indiana Brownfields Program (IBP) – loan funding,
professional services
Revolving Loan Fund (RLF) Incentive (federally funded)
IFA State Revolving Fund (SRF) Loan Program coordination
IDEM Supplemental Environmental Project (SEP)
Phase I Initiative
Petroleum Orphan Sites Initiative (POSI)
OCRA-IFA partnership (e.g., demo, Phase I/II)
DLGF Tax Waiver brownfield determinations
Misc. brownfield determinations/support letters (e.g., PEDs)
Current/Future funding from U.S. EPA (e.g., 128(a))
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Financial Incentives
IBP in partnership with IDEM – Petroleum Orphan Sites
Initiative (POSI) - professional services
Assists/benefits political subdivisions
Addresses petroleum contamination on brownfield sites resulting
from leaking underground storage tanks that cannot be addressed
by the responsible party due to an inability-to-pay, bankruptcy, or
other factors (orphan sites)
Includes site assessment, UST removal, and remediation
Also covers hazardous substances or petroleum contamination
from other on-site sources (e.g., hydraulic lifts, etc.) if funding is
available
Funding source: $3M ELTF transfer to IBP for SFYs ’14 &’15;
$2.91M ELTF transfer for SFYs ‘16 & ‘17
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POSI PROCESS
No application
Sites referred by IDEM Enforcement and LUST programs
Petroleum Eligibility Determination (PED) if necessary
Site awards obtain IFA Board approval
Bids solicited from IBP-qualified consultant pool for site work
Assigned IBP Project Manager works with stakeholders
throughout process to ensure needs are met
NFA letter by IDEM is goal of IBP
For questions, contact John Morris of IBP
Financial Incentives
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POSI STATS (Update through 3/31/16):
First site approved in April 2014
29 sites approved for funding in 26 communities (22
counties)
Total obligated: $4,865,378 (109% of ELTF $ received to
date; 82% of funds available through SFY ‘17)
Disbursed to date: $2,652,577 (55% of approved budgets)
Average project budget: $167,772 (highest: $535,033;
lowest: $18,055)
Closures: 3 NFAs issued, 5 in draft (28% of awarded sites
closed/in process)
Financial Incentives
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POSI STATS (Update through 3/31/16):
10 underground storage tanks removed, 1 closed in place
1 fuel oil underground storage tank removed
1 hydraulic lift removed
2,732 tons of petroleum-impacted soil removed
11,600 gallons of liquid/sludge removed
Financial Incentives
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Indiana Brownfields Program (IBP) – environmental
technical oversight, letters at no cost via request form; not only
tied to financial assistance
Comment Letters
Environmental liability clarification/closure letters
(per non-rule policy)
- Comfort Letters
- Site Status Letters
- No Further Action Letters (petro. sites)
Other Incentives
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Comfort Letter:
Issued to a party that qualifies for an applicable
exemption to liability found in Indiana law or IDEM policy,
but is not a legal release from liability.
Explains the applicable liability exemption or defense, or
IDEM’s exercise of enforcement discretion under an
applicable IDEM policy.
Phase I ESA prior to purchase for due diligence!
Phase II ESA (recommended) for due care/continuing
obligations/reasonable steps!!
Other Incentives – Liability Clarification Letters
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Site Status Letter:
Issued to a non-responsible party that can demonstrate that
current levels of contaminants of concern substantially meet
current risk-based cleanup criteria as established by IDEM per the
Remediation Closure Guide (RCG)
Does not address the potential liability of the party requesting the
letter
States that based on a technical analysis of information
submitted to IDEM pertaining to site conditions, IDEM
concludes that current site conditions do not present a
threat to human health or the environment and that IDEM
does not plan to take or require a response action at the
brownfield site
Other Incentives – Closure Letters
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Environmental Restrictive Covenants (ERCs) Attached to letters as necessary
Recorded/attached to property deeds
Describe land use restrictions (residential, commercial, industrial,
wells)
Include maps and tables
Discuss site contaminants of concern
- Hazardous substances
- Petroleum
Discuss affected media
- Soil
- Ground water
- Surface water
- Soil Gas
- Indoor Air
Other Incentives – Liability Clarification/Closure Letters
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Jeffersonville: Former BP Ellis Gas Station
Community need: Gateway to City
Resources: Brownfield RLF loan funds; NFA letter
Teamwork leads to Success!
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Fort Wayne: Four small sites with USTs
Community need: Harrison Square Mixed Use/New Baseball
Stadium
Resources: IBP Petroleum Remediation Grant for UST removal,
etc.
Teamwork leads to Success!
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Gary: Former Straughter Body Shop
Community need: Cleared lot for a future park
Resources: American Recovery & Reinvestment Act (ARRA)
Leaking Underground Storage Tank (LUST) Trust Fund; SEP
funds; NFA letter
Teamwork leads to Success!
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Indianapolis: Former Gas Stations
Community need: Area redevelopment into vibrant live-work
residences
Resources: U.S. EPA USTfields grant; Site Status Letter; HUD
CDBG
Teamwork leads to Success!
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Silver Lake: Abandoned Marathon Gas Station
Community need: Memory Park
Resources: SEP funds (part of Agreed Order between IDEM
and polluting industry)
Teamwork leads to Success!
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Brownfields: embrace opportunities to overcome
obstacles/challenges!
Small petro UST sites: remember these can lead to big success
stories.
The end: begin with this in mind – reuse/revitalization vs. “just”
remediation.
Success: talk with other successful stakeholders & don’t reinvent the
wheel.
Indiana Brownfields Program: inquire about tools and access to other
resources to address environmental issues to facilitate brownfield
redevelopment.
Next steps: determine needs and ask for appropriate
assistance….
Take-home Points
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Meredith Gramelspacher, Program Director /General Counsel 317- 233-1430
Michele Oertel, Federal Funding & Community Relations Coordinator 317- 234-0235
Andrea Robertson Habeck, Technical Staff Coordinator 317-234-0968
Kyle Hendrix, Redevelopment Coordinator 317-234-4860
Nancy Dollar, Planning Measures & Compliance Coordinator 317-234-9764
Check out the Indiana Brownfields Program web site at: www.brownfields.in.gov
Environmental Stewardship. Economic Development
Contact Information