11-25-14 master new waste site cleanup rules
TRANSCRIPT
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 1/117
Environmental Business Council of New EnglandEnergy Environment Economy
EBC Site Remediation andRedevelopment Program
What Do the New Waste SiteCleanup Rules Mean for
Development & Construction inMassachusetts?
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 2/117
Introduction
Environmental Business Council of New EnglandEnergy Environment Economy
Stephen SakakeenyProgram Chair & Moderator
PrincipalSAK Environmental LLC
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 3/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 4/117
2014 MCP Amendments
November 25, 2014Environmental Business Council
Liz Callahan, MassDEP Bureau of Waste Site [email protected]
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 5/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 6/117
• Process Improvements :- Eliminate Tier I Permits- Simplify Tier Classification- Streamline AULs, Notices of AULs on Federal Sites
• Enhanced Protection :- Updated Cleanup Standards based on latest science
- Triggers to expedite vapor intrusion assessment- Clearer requirements for addressing Sources of OHM
Intent of the Amendments
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 7/117
• More Ways to Achieve Closure : - Vapor Intrusion sites- Petroleum sites with “LNAPL”- Closure with “Conditions” but no AUL
• More Transparency
- Clearer closure terms
- Clearer documentation ofclosure conditions
Intent of the Amendments
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 8/117
8
Of the 1,928 MCP Numerical Standards -
• 408 values (21%) went up (less stringent)• 192 values (10%) went down (more stringent)
• 1,328 values (69%) stayed the same
Enhanced Protection: UpdatedStandards
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 9/117
Notable Standard Changes
• Lead (Pb)S-1: 300 → 200 mg/kg S-2 and S- 3: 300 → 600 mg/kg
• PCBsS-1: 2 → 1 mg/kgS-2 & S-3: 3 → 4 mg/kg
• Trichloroethylene (TCE)GW-2: 30 ug/L → 5 ug/L
• NickelS-1 (& RCS-1): 20 → 600 mg/kg
• CadmiumS-1 (& RCS-1): 2 → 70 mg/kg
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 10/117
• More specific triggers on when to look for vaporintrusion based on conditions near schools, daycare facilities and occupied residences
• Results in 72 hour notification and performanceof Immediate Response Actions
Enhanced Protection: ExpeditePotential Vapor Intrusion Assessment
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 11/117
Expedite Assessment -Potential Vapor Intrusion
lEvidence of Vapor
MigrationAlong Preferential
Pathways
VOC Groundwater Contamination >GW-2
VOCs in Soil Gas VOCs in Soil
30 ft.
<15 ft.
MonitoringWell
Volatile LNAPL ≥ 1/8 inch
School, Daycare,Residence
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 12/117
12
Enhanced Protection: SourceControl Provisions
• Clearer Definition of Sources of OHM
• Performance Standards for PermanentSolutions and Temporary SolutionsSource Elimination or Control
Migration ControlNonaqueous Phase Liquid
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 13/117
13
More Ways to Achieve Closure
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 14/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 15/117
• Subslab depressurizationsystems - most effective& reliable VI mitigationmeasure, particularly athigher concentrations
• (pre-2014) MCPdisallowed PermanentSolution if Active O&Mis ongoing
Inability to reach closurewith an active subslabdepressurization systemwas a disincentive fortheir use
15
More Ways to Achieve Closure – Vapor Intrusion Sites
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 16/117
• Remove obstacle forclosure where the
only ongoing O&Mis an Active ExposurePathway MitigationMeasure
• Ensure requirementsrelated to Sources
and plume migrationare clear, well-defined
• Ensure adequatechecks and balances
16
Amendments
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 17/117
Soil
Contamination
Active Remedial System Active Exposure PathwayMitigation Measure
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 18/117
Active Exposure Pathway MitigationMeasures
Operating at
the point ofexposure
18
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 19/117
Required withAEPMM?
Perm. Soln. withConditions
ROS, Temp. Soln.
AUL with standard
conditions
Remote Monitoring
Notification after30 days ofshutdown
Status Reports &RMRs
Annual Certification
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 20/117
• No Non-Stable NAPL• Removal to Extent Feasible
• AUL for NAPL with MicroscaleMobility
• Eliminated the ½ inch NAPLUpper Concentration Limit
Achieving Closure – LNAPL Sites
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 21/117
Release Source
VaporPhase
Modified from Huntley and Beckett, 2002
DissolvedPhase
LNAPL
Achieving Closure – LNAPL Sites
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 22/117
22
More Transparency
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 23/117
23
A-1 B-3
Former Response Action OutcomeCategories Worked Well, IF…
… You Knew the Code!
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 24/117
24
TEMPORARY SOLUTIONS PERMANENT SOLUTIONS
PERMANENT SOLUTIONWith NO CONDITIONS
PERMANENT SOLUTIONWith CONDITIONS
NATURALBACKGROUND
RESIDENTIAL/UNRESTRICTED
NO AUL REQUIRED
ACTIVITY & USE LIMITATION
NOTHINGFEASIBLE
Working TowardsPermanent Solution
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 25/117
Makes you ask... “ What Conditions ?”
Permanent Solutions withConditions
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 26/117
1. Residual contamination within a public way orwithin a rail right-of-way
2. Recommended Use of Gardening BMPs3. Elevated OHM attributable to Anthropogenic
Background4. Absence of an occupied building, but OHM in
groundwater greater than GW-2 levels(potential future vapor intrusion concern)
Permanent Solutions with Conditions- No AUL Required
h k d h l l f
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 27/117
Anthropogenic Background means those levels ofoil and hazardous material that would exist in theabsence of the disposal site of concern and whichare:
27
(e) petroleum residues that are incidental to the normal operation of motorvehicles.
(d) releases to groundwater from a public water supply system; or
(c) associated with sources specifically exempt from the definitionsof disposal site or release as those terms are defined in MGL c.21E and 310 CMR 40.0006;
(a) attributable to atmospheric deposition of industrial process or engineemissions and are ubiquitous and consistently present in theenvironment at and in the vicinity of the disposal site of concern;
(b) attributable to Historic Fill;
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 28/117
Historic Fill means Fill Material that based onthe weight of evidence and consistent with theConceptual Site Model:
(a) was emplaced beforeJanuary 1, 1983;
(b) may contain, but is notprimarily composed of,
construction anddemolition debris,reworked soils, dredgespoils, coal ash, woodash or other solid wastematerial;
28
ll f
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 29/117
Historic Fill Definition, continued…
(c) was contaminated with metals, hydrocarbons, and/or polycyclicaromatic hydrocarbons prior to emplacement, at concentrationsconsistent with the pervasive use and release of such materialsprior to 1983;
(d) does not contain oil or hazardous materials originating fromoperations or activities at the location of emplacement;
(e) is not and does not contain a generated hazardous waste, otherthan Oil or Waste Oil
(f) does not contain chemical production waste, manufacturingwaste, or waste from processing of metal or mineral ores,
residues, slag or tailings; and(g) does not contain waste material disposed in a municipal solid
waste dump, burning dump, landfill, waste lagoon or otherwaste disposal location.
29
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 30/117
Background & Historic Fill
Background
Natural
Background
AnthropogenicBackground
Historic Fill
Other
PERMANENT SOLUTIONNO CONDITIONS
PERMANENT SOLUTIONWITH CONDITIONS
NO AUL
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 31/117
• Provisions at 310 CMR 40.1067 (4) & (5) Management of Remediation Waste
Installation of SSD system/vapor barrier• Most work can be conducted as a Release
Abatement Measure
• If pathway elimination measure needed tomaintain No Significant Risk, AUL required
31
Permanent Solutions with Conditions – Post Closure Site Development
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 32/117
32
Guidance to Support
Implementation
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 33/117
33
Information specific to the 2014 MCPimplementation is located athttp://www.mass.gov/eea/agencies/massdep/cleanup/regulations/site-cleanup-regulations-and-standards.html#6
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 34/117
34
Guidance Status Discussions
MCP Q&A final
Greener Cleanups final
Gardening BMPs Draft – comments
receivedAUL Guidance Draft – comments
received
LNAPL Guidance Draft – comments
received
December 16, 2014
Vapor Intrusion Draft – comments dueFebruary 2, 2015
December 11, 2014
Historic Fill Draft under
development
G Cl G id
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 35/117
Greener Cleanups Guidance
• Greener cleanups consistent
with Commonwealth’smandates to improve energyefficiency, reduce emissionsand expand the use ofrenewable energy resourceswhere practicable.
• Advocates for the use of the ASTM Standard Guide forGreener Cleanups in additionto other available resources
• Case studies
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 36/117
36
Amended MCP -
Experience to Date
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 37/117
37
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 38/117
• 6 disposal sites (3 NERO, 1 CERO, 1 SERO, 1 WERO)
• 15 AEPMMs – 12 Remedy Operation Status
– 1 Phase V O&M
– 2 Post-Temporary Solution O&M
38
Registered Remote Monitoring Systems
- Active Exposure Pathway Mitigation Measures
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 39/117
Jun Jul Aug Sept Oct Nov(partial)
Total
Permanent Soln - No Conditions 95 71 79 89 77 31 442
Permanent Soln with Conditions – AUL 21 2 8 5 11 4 51
Permanent Soln with Conditions – No AUL 1 8 9 9 8 2 37
Gardening BMPs 1 1 2 4
Anthropogenic Background 2 5 2 2 11
OHM in Rail/Road Right of Way 1 3 4
Groundwater > GW-2, no current bldg 1 1 1 1 4
More than one condition 5 2 3 4 14
Temporary Soln 9 1 3 6 3 4 26
593
Closures Aft er June 20, 2014
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 40/117
Environmental Business Council of New EnglandEnergy Environment Economy
How the New Rules Change Design& Development
Ileen Gladstone, P.E., LSPVice President
GEI Consultants, Inc.
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 41/117
consulting engineers and scientists
How the New
Environmental Ruleswill Change Designand Development
Ileen Gladstone, P.E., LSP, LEED APNovember 2014
MCP Ch h Aff D i d
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 42/117
• Permanent Solutions with Conditions – GW2 Areas with No Buildings – Best Management Practices for Gardening – Historic Fill
– Extended MCP Deadlines• Lowered (i.e., more conservative) standardsexpand the number of MCP sites
• Expanded Response to Potentials for Vapor
Intrusion (VI)• Incorporate Principles of Green Remediation• Brownfield Tax Credits
MCP Changes that Affect Design andDevelopment
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 43/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 44/117
• Vacant property currently GW3, but OHM ingroundwater is greater than GW2 standards• Permanent Solution WITH Condition, but NO
AUL• Identify during due diligence• New buildings
– Demonstrate VI pathway is not significant – Design sub-slab system to mitigate VI pathway
• Confirm passive or active – Record AUL
No Building where OHM > GW2
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 45/117
• Did not meet Method 1 standards orquantitative Method 3 for “unrestricted use”
• Permanent Solution with Conditions: BMPs
• Challenge: – Communicate need for BMPs to tenants or owners – Knowledge of compliance with BMPs
Residential Gardening BMPs
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 46/117
• Anthropogenic Background is Attributable, in part, to Historic Fill• Anthropogenic Background
– Permanent Solution WITH Condition, but NO AUL – Simplify site closure
• Historic Fill – Placed prior to January 1, 1983 – May contain metals, petroleum, PAHs, construction and
demo debris, wood/coal ash – Does not contain OHM originating from operations
– Is not and does not contain a generated hazardous waste• The improvement is that previously historic fill meant you had to have
an AUL
Historic Fill
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 47/117
• Urban Fill —Historic Fill• Naturally occurring arsenic• Industrial or manufacturing history• Former gas station• Former dry cleaner• Underground storage tanks (USTs)
– Often found during construction• Former Manufactured Gas Plant (MGP) Site• Landfill• Odorous organics
Development on Contaminated Property
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 48/117
• During due diligence for a transaction• During the geotechnical investigatio n
– Can be cost effective• As close to the start of construction as feasible (?)
– Delays reporting to MassDEP for as long as possible – Complete construction within 4 years of notification (before
the Phase II Report is due) – Need data for design documents and specifications
• Reporting exemptions (should you use them) – Contaminants associated with coal/wood ash – Naturally occurring arsenic – Avoids MCP compliance costs but precludes filing for
Brownfields Tax Credits
When to Look for Contamination – It Depends
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 49/117
• From Time of Tier Classification – Phase II now due 3 years (was 2) – Phase III now due 4 years (was 2) – Phase IV now due 4 years (was 3) – Permanent Solutions or Remedy Operation Status
(ROS) still 5 years
• Four years from notification to Phase II
• Simplify compliance with just Release Abatement Measure (RAM)
Complete Construction before Phase II Due
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 50/117
• Health and Safety – Occupational Safety and Health Administration
(OSHA)-trained personnel• Excavated Materials Management
• Earthwork – Backfilling and compaction – Chemical testing requirements for backfill
• Dewatering
• Well Decommissioning• Underslab Vapor Barrier• Soil Gas Venting System
Design Documents – Specifications
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 51/117
• Early analysis and estimate of cut/fill• Sources of excess soil
– Basements, garages, utilities, foundations, stormwater retention/infiltration
• Soil pre-characterization – Know where the building is going – Sample collection, chemical testing
– Typically soil borings• Soil stockpiling during construction
– Room to stockpile
How Will Contaminated Soil Be Managed
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 52/117
• All contamination is not created equal…
How Dirty is the Dirt?
Cost of cleanup
Complexityof cleanup
Urban fill
Metals
Solvents
PCBs
Oil
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 53/117
Checker Board Soil
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 54/117
• Establish budget for soil disposal early – Pre-characterization reduces uncertainty and risk
• Establish budget for dust monitoring• Soil management options
– Reuse, capping, stabilization, solidification, off-sitedisposal• Optimize/minimize soil disposal costs
– Reuse lightly contaminated soil; dispose of clean soil
• Limited landfill capacity – Cost and schedule implications – Potential liability issues and associated due diligence
How Will Contaminated Soil Be Managed
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 55/117
• Excavated MaterialsManagement – How soil is managed – Dig and haul – Stockpiling requirements – Sampling requirements – Categories of soil for reuse
or disposal – Disposal options – Dust monitoring and dust control – Treatment for lead contaminated soil – Truck decontamination – Odor control
Design Documents – Specifications
How Will Contaminated Groundwater Be
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 56/117
• Construction dewatering effluent – Recharge vs. discharge• Permitting
– City, Massachusetts Water Resource Authority (MWRA), U.S. Environmental
Protection Agency (EPA)• Treatment
– Sedimentation tank, oil separation, filtration, carbonadsorption, ion exchange
• Testing – Start up and ongoing effluent monitoring
• Discharge – Storm water system, surface water, sewer system
How Will Contaminated Groundwater BeManaged
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 57/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 58/117
Vapor I ntrusion: Conceptual Site Model (NJDEP)
h d
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 59/117
• Some soil and groundwater contaminants can affectindoor air quality – Dry-cleaning chemicals [Tetrachloroethlyene (PCE)] – Solvents [Trichloroethylene (TCE)] – Gasoline
• Very high priority for MassDEP – Reduced standard for TCE from 30 micrograms per liter
(µg/L) to 5 µg/L – Coming soon: PCE from 50 µg/L to 20 µg/L
• Building over contaminated groundwater plume• Leaving contaminated soil beneath new building• Renovating a building located over contaminated
groundwater and/or soil
When to Protect Indoor Air
P I d Ai Mi i i O i
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 60/117
• Intrinsically safe design – Open air first level parking
• VI barrier
• Sub-slab venting system (passive)• Sub-slab depressurization system (SSDS)
(active)• Testing for effectiveness• Deed restriction (AUL) to require system
Protect Indoor Air – Mitigation Options
Complex Design Considerations for Vapor
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 61/117
• Design considerations – Vapor barrier (contaminant dependent) – Sheet vs. spray applied membrane – Piping and subgrade ventilation layer
– Vent stack(s) above roofline – Power for fan – Automated notification to MassDEP of system failure
• Construction considerations – Welded or taped membrane seams – Seals around penetrations (utilities, columns) – Quality control testing including smoke testing
Complex Design Considerations for VaporMitigation
V B i D il
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 62/117
Vapor Barrier Details
L T C id i
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 63/117
• Deed restriction: AUL – Affects Brownfields Tax Credits• Passive system
– Indoor air testing at least 3 times over 2 years• Active system
– Indoor air testing during heating season and verify pressuredifferential across slab
– Annual checks for pressure drops and fan operation – Remote telemetry that notifies owner and MassDEP upon
system failure
– Notify occupants and MassDEP of system shutdowns lasting30 days – Owner certification that the $$ is available for repairs – Annual certification that system is operating
Long-Term Considerations
Transactional Impacts Associated with VI Issues
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 64/117
Transactional Impacts Associated with VI Issues
• More uncertainty concerning what it takes to achieve MCP• Extended timeframes to conduct sampling• How do you evaluate a site that was closed under the “old” system?
• Redevelopment of VI sites, if at all, may be conducted in a muchmore conservative manner – This is particularly so with respect to proposed residential and
mixed-use site redevelopment projects• More sampling; more data; more remediation (beyond NSR?)• More time, more money, and a more conservative approach results
in fewer sites being redeveloped
G R di ti
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 65/117
• EPA: “ The practice of considering all environmental effectsof remedy implementation and incorporating options tominimize the environmental footprints of cleanup actions.”
• MassDEP: Five core elements for reducing theenvironmental footprint of a cleanup: – Minimizing total energy use and maximizing renewable
energy use; – Minimizing air pollutants and greenhouse gas emissions; – Minimizing water use and impacts to water resources;
– Reducing, reusing and recycling material and waste; and – Protection of land and ecosystems
Green Remediation
Standard Guide for Greener Cleanups
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 66/117
• MassDEP adopted ASTM E2893-13• Process to incorporate Best Management
Practices (BMPs) to reduce environmentalfootprint
• BMP process – Opportunity assessment – Prioritization
– Selection – Implementation – Documentation
p( ASTM E2893-13)
E l G R di ti BMP
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 67/117
• Use local staff (including subcontractors) when possible tominimize resource consumption• Use local laboratory to minimize impacts from transportation• Use stressed vegetation to locate contaminant hotpsots to guide
development of sampling and analysis plans and optimize
design of monitoring well network• Minimize clearing of trees throughout investigation and cleanup• Restore and maintain surface water banks in ways that mirror
natural conditions• Implement an idle reduction plan for vehicles• Use gravel roads, porous pavement, and separated pervious
surfaces rather than impermeable materials to maximizeinfiltration
Example Green Remediation BMPs
Brownfield Tax Credits
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 68/117
• Created in Massachusetts in 1998• Goal: Encourage redevelopment of
Brownfields
• Some of the significant requirements: – A Permanent Solution or Remedy OperationStatus (ROS)
– 50% tax credit if no AUL is used to close out the site
– 25% tax credit if an AUL is used to close out the site
Brownfield Tax Credits
New Regs and Tax Credits
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 69/117
• Historic fill sites – Condition without AUL – 50% tax credit
• VI sites – Permanent solution or ROS – AUL – 25% tax Credits
• NAPL sites – Permanent solution now possible – AUL – 25% tax credit
New Regs and Tax Credits
Takeaways
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 70/117
• Soil management will continue to be a costly andsignificant aspect of development• Urban fill is now less regulated by MassDEP, but
it still costs a lot to dispose of
• More projects will require vapor mitigation• The design and installation of vapor mitigationsystems are more complex because ofMassDEP’s requirements
• Think about the underground, early and often, asyou develop programming.
Takeaways
Questions?
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 71/117
Questions?
Ileen Gladstone, P.E., LSPGEI Consultants sultants.com 400 Unicorn Park DriveWoburn, MA [email protected]
Phone: 781-721-4012
http://www.geiconsultants.com
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 72/117
Environmental Business Council of New England
Energy Environment Economy
Perspective from a MajorPetroleum Retailer
Raymond Leather
Vice President of Environmental andRegulatory Affairs
The Cumberland Gulf Group of Companies
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 73/117
The Impact of MCP Regulatory Revisionson Development & Construction
A Petroleum Retailer’s Perspective
Ray Leather, Vice President of Environmental & Regulatory Affairs
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 74/117
G lf S i
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 75/117
Gulf Station
G lf T i l
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 76/117
Gulf Terminals
Ch l T i l
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 77/117
Chelsea Terminal
C b l d F G lf Wh
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 78/117
• 584 Cumberland Farms stores in 8 states• 400 Gulf Owned Stations in 9 states
• 2,800 Gulf licensed stations in 33 states
• 12 Petroleum distribution terminals
• +7,000 employees
Cumberland Farms – Gulf: Who we are
C b l d F G lf Wh
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 79/117
• Headquarters: Framingham, MA• Home grown, family owned business• Charitable contributions: $600,000• We’re part of the fabric in the community • Vested interest with environmental regulations
Cumberland Farms – Gulf: Who we are
UST C li C F ti
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 80/117
PermittingTestingTraining
RegulatoryKnowledge
UST Compliance Core Functions
InspectionsRelease DetectionSpill Response
Financial Assurance
C li & E i t l
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 81/117
Compliance & Environmental
The Environmental team handles spills thatoccur below the surface, installmonitoring wells and remediatethe site, following all Federal, Stateand Local regulations.
The Compliance team keep the stations incompliance with current Federal, State, and Localregulations by performing tank testing and filling outthe proper paperwork. Environmental Compliancehandles surface spills.
C t ti A ti iti
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 82/117
Construction Activities
• 23 major projects in MA• 185,000 tons of soil moved this past yearin MA
150,000 tons recycled35,000 tons landfilled
• Soil Management key to construction
MCP Hot Topics Impacting CFI G lf
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 83/117
MCP Hot Topics Impacting CFI Gulf
• SOIL MANAGEMENT/DISPOSAL
• VAPOR INTRUSION (VI)
• LIGHT NON-AQUEOUS PHASE LIQUID (LNAPL)
• ACTIVITY AND USE LIMITATION (AUL)
• GREEN REMEDIATION
Geotechnical and Soil Management for Site
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 84/117
Development: Soil Categories
“Clean” Soils – No detections and/or below established state
background levels (e.g., metals) . Typically from a “greenfield” site.
“Gap” Soils – Soil contaminated below applicable state remediationstandards for the generating location. Not Clean and not Remediation(not saturated with petroleum; not soil for residential use but possiblycould be re-used at commercial facilities or re-used on site).
“Remediation” Soils – Soils contaminated above stateremediation standards.
Major Construction Projects
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 85/117
Major Construction Projects
• Soil is the driver• Geotechnical investigation
• Soil Pre-Characterization
• Wider net- As, Pb, Cd, Pesticides, &Herbicides, etc.
• Minimize cuts
• Soil Management Plan
Re Use or Dispose?
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 86/117
Re-Use or Dispose?
• On Site Re-Use [Clean Soils-Gap Soils-possiblyRemediation Soils]
• Off Site Re-Use [Clean Soils-Possibly Gap Soils] (noRemediation soils to be re-used offsite)
• Off Site Disposal [Clean-Gap-Remediation Soils]
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 87/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 88/117
Vapor Intrusion
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 89/117
Vapor Intrusion
• Engineered Vapor Barriers• Major Construction Projects & Divestments
• Average annual depth to GW < 15’
• Chlorinated compounds in soil and/or GW
• Site specific criteria
• Depth to GW > 15’ modified vapor barrier
Vapor Barriers
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 90/117
Vapor Barriers
LNAPL
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 91/117
LNAPL
• Higher risk tolerance for acquisition withLNAPL
• Facilitates Closure
• LNAPL site achieve PS with AUL
• Facilitates divestment due to certainty
• LNAPL in bedrock and DNAPL guidanceneeded
Chlorinated Compounds
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 92/117
Chlorinated Compounds
• TCE lowered from 30 µg/L to 5 µg/L for GW-2
• Need to revisit sites RAO’ed with TCE
• Sub-Slab Depressurization System?
AUL
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 93/117
AUL
• AUL for LNAPL and AEPMMs for PS
• Simplified paperwork
• Online AULs
• More AULs
• Increased filing fee
Greener Cleanups
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 94/117
Greener Cleanups
• Green remediation evaluation
• Source removal through excavation and T&D?
• Green insitu remediation?
• ASTM Guidance available
• MassDEP end-point needed
Source Removal
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 95/117
Source Removal
Typical Spills
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 96/117
Typical Spills
Hazardous Materials Management
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 97/117
Hazardous Materials Management
• Asbestos Containing Materials (ACM)
• Lead Based Paint (LBP)
• Polychlorinated Biphenyls (PCBs)
• Mercury
• Historic Contaminants
Summary
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 98/117
Summary• MCP Reg Changes – We Applaud MassDEP
• Soil Guidance Needed to Avoid Town by TownApproach
• VI is a Double-Edged SwordA. AEPMM is positive in conceptB. Telemetry will increase costsC. Chlorinated Compounds = Revisit Sites
• LNAPL Reg Changes Employ Better Science
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 99/117
The Future
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 100/117
The Future
“The Only Thing That is Constant Is Change”
Heraclitus
Lending and Environmental Risk
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 101/117
Environmental Business Council of New England
Energy Environment Economy
Lending and Environmental RiskManagement
Susan P. Peck, Esq.Environmental Risk Director
Santander Bank, NA
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 102/117
Environmental Business Council NE, Inc.Meeting: November 25, 2014
Presented by: Susan P. Peck, Esq.Santander Bank, NAEnvironmental Risk Director
Lending & EnvironmentalRisk Management
Overview of Presentation107
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 103/117
Santander Bank: Who We Are
Internal Environmental Unit Staff: Why We’re Here
Environmental Regulations/Laws that drive Environmental Due Diligence
Understanding Environmental Risk
Types of Environmental Due Diligence Reports
Approach to Evaluating and Quantifying Environmental Risk
Difference between Lending vs. Work Out/Foreclosure Risk
Will the April 2014 MCP Changes Affect Environmental Due Diligence forFinancial Institutions?
Presentation Summary & Take-Aways
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 104/117
Internal Environmental Unit Staff: Why We’re Here 109
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 105/117
• As an OCC regulated bank, an internal environmental risk unit isrequired. The OCC Comptroller’s Handbook booklet, “Commercial Real
Estate Lending,” provides guidance for bank examiners and bankers oncommercial real estate (CRE) lending activities.
• Other agencies, including but not limited to SBA, FDIC, Fannie Mae, andFreddie Mac, also require environmental due diligence reviews priorto real-estate collateralized lending transactions.
• The level of review is often dependent upon property risk (historicaland current), lending amount, and transaction type .
• The staff evaluates environmental risk as part of deal screens/lendingtransactions to limit potential future Bank losses and environmentalliabilities relative to real estate collateral.
• The staff provides timely and cost effective solutions to environmentalrisk issues.
Regulations that drive Environmental Due Diligencefor Borrowers
110
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 106/117
• OCC’ s Handbook booklet, provides guidance for bank examiners and bankers on commercial realestate (CRE) lending activities
• Comprehensive Environmental Response, Compensation & Liability Act of 1980 (CERCLA)1. CERLCA is commonly know as SUPERFUND2. Established to address abandoned hazardous waste sites and establishes a liability
framework for determining who can be held accountable for release of hazardous substances3. Provides protection for Innocent land owners, contiguous property owner or bonafide
prospective purchaser.4. Required to conduct “All Appropriate Inquiry (AAI)” in compliance with 40 CFR Part 312, prior
to acquiring the property; and, 2) Comply with all continuing obligations after acquiring the
property.• What Is “AAI” ?
AAI is the process of evaluating a property’s conditions and environmental liabilities and isdefined under EPA Final Rule Standards and Practices for All Appropriate Inquiries, effectiveNovember 1, 2006 or the ASTM E1527-13 standard .
AAI must be conducted or updated within one year prior to the date of acquisition of aproperty.
Why Banks conduct Environmental Due DiligenceDespite CERCLA Exemptions
111
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 107/117
• Under CERCLA/Superfund, Banks that take real estate as collateral (mortgages) associated withlending transactions are generally EXEMPT from CERCLA liability, as long as the Bank does not
“participate in management ”. “Participation in Management ” has been defined by the courts asexercising decision making control.
• Despite CERCLA Exemptions, Banks conduct Environmental Due Diligence Review for all CRElending transactions because ….
1. Regulators/Agencies (OCC/SBA/FDIC, etc.) require Review;
2. Contamination may result in decline in real estate collateral market value OR rendercollateral worthless;
3. Contamination may potentially have an adverse impact on collateral marketability due to on-site/off-site issues and associated stigmas;
4. Contamination may result in potential future restrictions on property use via deed restrictions ;
5. If borrower is held responsible for clean up/remediation costs, it may impair borrower’s abilityto repay the loan ; and,
6. Borrower’s operational non-compliance (while not real estate related) may also impairborrower’s ability to repay the loan.
Understanding Environmental Risk112
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 108/117
• Environmental risk is not limited to a single point in time . Must evaluate past andproposed future business operations.
• The physical appearance or attributes of a piece of real estate or a structure built uponthe real estate provides only a limited view of potential environmental issues. Mustunderstand the historical use of a property and the environmental regulatory complianceof present and past occupants, especially as related to off-site waste disposal.
• Environmental risk to a customer is not limited to the value of the specific propertybut can extend to considerable fines, fees and resultant remediation costs to be borneby any owner or operator who causes or contributes to a facility’s environmentalproblem.
• Environmental risk to a lender is not limited to impairment of collateral securing aspecific loan but can extend to amounts far beyond the principal of the underlying loanas outlined above, if the lender has exercised significant control over a borrower’soperations and is deemed to be the owner or operator.
Types of Environmental Due Diligence Reports1 P S E l i A I l B k P d d P d l i l i k d
113
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 109/117
1. Pre-Screen Evaluation: An Internal Bank-Produced Product to evaluate environmental risk anddetermine the appropriate level of environmental due diligence for the transaction.
2. Transaction Screen Report; Developed by the American Standards for Testing Materials (ASTM)
under Practice E1528-06 and includes questionnaire and database search obtained fromcommercial vendor, summarizing federal/state government environmental records.
Questionnaire- completed by Relationship Manager and Borrower/Site Owner during Siteinspection.
Database Search - ordered by the Bank’s Environmental Unit from a pre -qualified vendor.
Alternative Approach: Screen Reports can be ordered from environmental consultant vendors.
3. Phase I: Developed by ASTM under Practice E1527-13, Completed by environmental consultantvendor and includes Site inspection, historic review of property use, review of federal/stategovernmental environmental records. Either the Unit orders/reviews the report or Unit reviewsborrower-provided report.
4. Phase II: Includes completion of soil and groundwater sampling in areas of concern.
5. MCP (or other state) Regulatory Submittals: Includes all investigation/remediation reportscompleted to address open release incidents.
Evaluating and Quantifying Environmental RiskAs Part of a Lending Transaction
114
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 110/117
Myth: Financial Institutions only lend on CLEAN properties!
• Review existing reports (Phase Is, Phase IIs, regulatory submittals (MCPreports) or ordering new reports – don’t always have to start over.
• Identify significant environmental issues and require further investigation
• Quantify environmental liabilities/costs for all areas of concern through SiteAction Plan including details on required environmentalinvestigation/remediation, associated costs, and timeframes for completion.
• Utilize appropriate tools to mitigate environmental risk at closing (i.e.:environmental reserve accounts/undertakings, environmental insurance, andconstruction budget line items/contingencies)
• Ensure loan documents allow for continued monitoring of knownenvironmental issues throughout the term of the loan .
Difference Between Environmental Risk Evaluationsfor Lending Transactions vs. Work Out/Foreclosure
E i l R i f L di T i
115
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 111/117
Environmental Review for Lending Transaction:
• Reasonably evaluate and quantify environmental issues and liabilities through reportreviews.
• Ensure borrower investigates and remediates environmental issues prior to OR withinshort timeframe post-closing
• Establish mitigants to ensure that Bank is protected in event of default and has resourcesto pay for environmental issues (environmental reserve/insurance/budgets)
• Do NOT participate in management or exercise decision-making control overenvironmental investigations/compliance.
Environmental Review for Work Out/Foreclosure Transaction:
• Update Information! Order new environmental reports to ensure no new issues andqualify for AAI protections
• Quantify any new environmental issues through investigation BUT no remediation pre-foreclosure
• Sell It!! After foreclosure, market property for resale/lease “at earliest practicable time,on commercially reasonable terms, taking into account market conditions and legalregulatory requirements.”
Will the April 2014 MCP Changes Affect EnvironmentalDue Diligence Reviews for Financial Institutions?116
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 112/117
• New MCP changes will not significantly impact Bank’s approach toevaluating and quantifying environmental risk
• Bank relies on expertise of qualified environmental consultants to completereports (do not complete internally)
• New MCP changes will require internal staff training to understand new
approach and terminology (no more RAOs, etc.)
• New MCP changes will likely simplify internal Bank review process , asregulations improve requirements for AULs (ensure restrictions transfer withdeed), less “releases” due to historical fill, and broader definition of background
conditions.
Presentation Summary & Take Aways…. 117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 113/117
Effect of New
MCPRegulatoryChanges
Will not significantly impact Bank due diligence process
May decrease number of release Sites and improve processby ensuring use restrictions transfer with deed, result in less“releases” due to historical fill, and broader definition of backgroundconditions.
What if myproperty isContaminated?
Banks DO lend on impacted properties!
Various tools can be used to mitigate environmental risk atclosing (i.e.: environmental reserve accounts/undertakings,environmental insurance, and construction budget lineitems/contingencies)
Why Banks
RequireEnvironmentalDue Diligence
To Comply with Regulatory RequirementsIdentify and Quantify Environmental LiabilitiesLimit Borrower and Bank Risks
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 114/117
Thank you!
Susan P. Peck, Esq.Santander Bank, NA
Environmental Risk Director
2 Morrissey BoulevardDorchester, MA 02125
(617)757-5632//[email protected]
Networking Break
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 115/117
Environmental Business Council of New England
Energy Environment Economy
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 116/117
8/10/2019 11-25-14 MASTER New Waste Site Cleanup Rules
http://slidepdf.com/reader/full/11-25-14-master-new-waste-site-cleanup-rules 117/117