From: | Peter Strauss <petestrauss1@comcast.net> |
Date: | Tue, 28 Apr 2009 18:55:37 -0700 (PDT) |
Reply: | cpeo-brownfields |
Subject: | Re: [CPEO-BIF] When. where, and how? - continuing the debate |
Katherine:From my point of view this is the most interesting discussion that we have had on this list serve for some time. Keep it going! Peter Strauss On Apr 28, 2009, at 2:00 PM, Catherine J. Knudsen wrote: Gentlemen! Is there any chance you can now take this off line. Maybe I am in the minority but this continuing debate is now getting a bit annoying! Thanks! -----Original Message----- From: brownfields-bounces@lists.cpeo.org[mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Samford, JerroldSent: Tuesday, April 28, 2009 3:59 PM To: 'Schnapf, Lawrence'; reshen@mindspring.com; Walsh, William; lsiegel@cpeo.org; Larry Schnapf Cc: Brownfields Internet Forum Subject: Re: [CPEO-BIF] When. where, and how? - continuing the debate Based on your numbering (below):1. aaargh. I'm not even going to consider purchasing a piece of commerical real estate under the constraint of being forced to do sampling if there is a suspicion of a release. I MAY choose to, or I MAY choose to walk. ThatMUST be MY decision. Not YOURS.2. Historical contamination that meets reportable thresholds is alreadyrequired to be reported when discovered. 3. Secured creditor exemptions are designed to facilitate loans anddistinguish between lenders who have engaged in active management and thosethat don't. Your suggested revision would pretty much doom commercial mortgages. Why would we do that? The liability belongs with the owner/operator who released the contaminants, not with the bank. 4. See previous posts5. Have to get educated regulators hired. States don't have the staff toenforce things now..... 6. Not sure what this means.7. Requiring source removal obviates the risk-based approach. Why remove thesource area if a) other alternatives such as treatment in-situ or b) "natural attenuation" meet risk-based goals? Why calculate risk? Don'tunderstand the nexus between groundwater and water resources under a climatechange scenario. We'll be better off treating sea-water for drinking purposes.8. dis-incentive to developers who need to put up their money, sell theproperty, and get out.9. Or at the very least some way of easily tracking where they are and whois responsible for them. 10. Incentive for a state to do all that? -------------------------------------------- W. Jerrold Samford, P.G. Environmental Compliance Specialist Troutman Sanders, LLP 1001 Haxall Point Richmond, Virginia 23219 (804) 697-2225 (direct) (804) 698-6451 (fax)~~~~~~~ Effective January 2009, Troutman Sanders will operate offices in Chicago, San Diego and Orange County, as well as have an expanded presence in Washington, DC as part of the addition of Ross, Dixon, and Bell LLP.Learn more at www.troutmansanders.com ~~~~~~~~~~~ This e-mail message and its attachments are for the sole use of the designated recipient(s). If you are not a designated recipient of thismessage, please notify the sender by replying to this message and delete ordestroy all copies of this message and attachments. -----Original Message----- From: brownfields-bounces@lists.cpeo.org[mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Schnapf, LawrenceSent: Tuesday, April 28, 2009 1:43 PMTo: reshen@mindspring.com; Walsh, William; lsiegel@cpeo.org; Larry SchnapfCc: Brownfields Internet Forum Subject: Re: [CPEO-BIF] When. where, and how? - continuing the debateIn an ideal world, the regulators would supervise all the cleanups butwewill be living in an era of constrained budgets and limited government resources for quite awhile. Thus, I have to swallow hard and grudgingly admit that the future isprobably going to be voluntary cleanups conducted by licensed professionals that are audited by the government. The key to me is to make sure we haverobust programs that do not incentivize a race to the bottom but instead encourage better quality cleanups.I believe a key to this approach is greater transparency. If I was king, following would be my top ten reforms that I think could accomplish thesegoals: (1) revise AAI to require phase 2 reports when RECs or releases are identified;(2) reporting of historical contamination when discovered so we no longer have "no hunt" or "no look" contracts (may require amending CERCLA 103(C);(3) Revise lender liability so that banks that originate and sell loans like CMBS do not qualify for secured creditor exemption as they are not holding "indicia of ownership" primarily to proect security interest but instead are being driven by fee profits (but allowed to assert applicable CERCLA LLPs);(4) a database of phase 2 reports both to provide enhance communityinformation, oversight of the regulators/regulated and reduce transactionalcosts for future deals; (5) strong enforcement focus and penalties for non-disclosure; (6) An AAI-like rule for Continuing Obligations;(7) Source removal for groundwater contamination as part of any risk- based cleanup approach as water resources are going to be the KEY concern forclimate change;(8) Financial assurance for all post-remedial obligations exceeding twoyears;(9) Periodic Compliance Monitoring For IC/EC (likely privatized as well);and(10)EPA should be required to certify that state remedial programs qualify as "state response programs" under CERCLA 128 as it is currently ambiguous if a EPA is required to officially "bless these programs. EPA delegates other environmental programs to states and given the growing importance of state voluntary cleanup programs it seems important that EPA ensures these programs or their LSP programs are sufficiently robust. States would have to adopt the minimal CERCLA reforms above to be designated a "state responseprogram". Larry -----Original Message----- From: Bruce-Sean Reshen [mailto:reshen@mindspring.com] Sent: Tuesday, April 28, 2009 12:40 PMTo: Schnapf, Lawrence; 'Walsh, William'; lsiegel@cpeo.org; Larry SchnapfCc: 'Brownfields Internet Forum' Subject: RE: [CPEO-BIF] When. where, and how? - continuing the debate Larry, Your email has finally shifted the debate. We are no longer debatingvoluntary programs vs. what Lenny refers to as compliance-based regulatoryprograms.The issue is whether or not our society is willing to understand and fund regulatory oversight, no matter what we call the program. Without suchfunding for oversight, the unscrupulous among us will evade their responsibilities. Most compliance-based programs incorporate suchoversight, but are chronically under funded and unable to effectuate their mission. Most voluntary programs need stronger oversight mandates as wellas increased funding.Note the NJ DEP program that on paper is excellent. However, a self- study showed that a huge number of participants simply never filed or inadequatelyfiled the required forms and no one noticed. We are not talking bad regulators, we are simply observing the impact of inadequate funding.No program can be effective without proper funding. This is actually themajor issue before us. Bruce Bruce-Sean Reshen p. 203-259-1850 c. 917-757-5925 This communication may contain information that is legally privileged, confidential or exempt from disclosure. If you are not the intendedrecipient, please note that any dissemination, distribution or copying of this communication is strictly prohibited. Anyone who receives this message in error should notify the sender immediately by telephone or return emailand, delete the message from their computer. -----Original Message----- From: Schnapf, Lawrence [mailto:Lawrence.Schnapf@srz.com] Sent: Tuesday, April 28, 2009 11:41 AM To: Walsh, William; lsiegel@cpeo.org; Bruce-Sean Reshen Cc: Brownfields Internet Forum Subject: RE: [CPEO-BIF] When. where, and how? - continuing the debate The key statement in William Walsh's email is the following:"I believe that voluntary clean up programs if properly overseen will result in more expeditious cleanup, less costly clean up, without the cleanup beinginadequate (or secret)"I agree with that statement. The critical question to me is how best can we accomplish or incentivize that outcome. We have seen that the market cannot discipline itself and will unleash the "animal spirits" if not properlyregulated. Without proper controls, there's just the law of the junglebecause there is greed. Greed has to be tempered by fear and regulation. Ithink we need to move back towards more oversight. That does not meantelling developers how many holes to dig or where to dig them but to makesure that sites are properly characterized and remediated. Larry ************************************************************************ *****U.S. Treasury Circular 230 Notice: Any U.S. federal tax advice included inthiscommunication was not intended or written to be used, and cannot be used,for the purpose of avoiding U.S. federal tax penalties. ************************************************************************ ***** NOTICEThis e-mail message is intended only for the named recipient(s) above. Itmaycontain confidential information that is privileged or that constitutesattorney work product. 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