Brownfields Update

This update provides information on a variety of activities that have begun or continued since our meeting in June. In my previous message, we suggested establishing focused discussion groups on a range of topics. Throughout this update, in addition to information items on our latest efforts, I have identified a variety of areas where we are requesting participation to get these discussions started. To help identify them, at the end of this update there is a list of the topics, along with contact information for the person who will be leading the efforts.

In This Update:

• Listserv
• Cal/EPA Brownfields Legislative Proposal
• Guidance Documents
• U.S.EPA Grant Activities
• Information Items/Progress Reports
• Summary of Discussion Groups

Listserv

As discussed in the last update, the Cal/EPA Brownfields Listserv has been established (if all goes according to plan, you should have received this update via the Listserv).  Information on the Listserv, and instructions on subscribing and unsubscribing, can be found at http://www.calepa.ca.gov/Listservs/.

Cal/EPA Brownfields Legislative Proposal

Dorothy Rice of DTSC, in her presentation to the Working Group in June, discussed ideas for legislation that would provide DTSC with flexibility and a cleanup authority that is not confined to Health and Safety Code Chapters 6.5 or 6.8.  DTSC has since developed language for legislation.

Using DTSC’s proposal as its core, Cal/EPA has expanded the legislative proposal to include elements that would create in California law limitations to liability for innocent landowners, bona fide prospective purchasers, and contiguous property owners.  An overview of the proposal is attached, as is a very rough draft of the language that we believe accomplishes these goals in ways that serve to both relieve liability concerns, but also ensure protection of public health and the environment.

• Proposal Bullets (PDF, 58 KB)
• Legislative Proposal (PDF, 68 KB)

We need your feedback on this critical legislative proposal.  Cal/EPA would like to be ready to move the proposal through the legislative process after the first of the year.  Please contact Rick Brausch at rbrausch@calepa.ca.gov or Rachel Harris at rharris@dtsc.ca.gov.

Guidance Documents

At the Brownfields Working Group meeting in June, DTSC and others suggested developing guidance documents and fact sheets to provide brownfields stakeholders with information regarding cleanup requirements at brownfield sites, as well as to assist project proponents in expediting investigation and cleanup efforts, especially at brownfield sites with commonly encountered contaminants or problems.  As a first step in this process, DTSC is modifying several documents that it has used for its Schools Program for general application to brownfields sites.  In particular, guidance is being developed for sites with lead contamination, asbestos, and public participation at brownfield sites.  These modified documents will soon be distributed for your review and feedback.

While these documents are a good first step, we need your help in identifying additional areas where guidance documents or fact sheets might prove useful, ways to augment existing guidance documents and management memos, and ways to present information that provides readers from a wide variety of audiences and perspectives with the information they need in a format they understand (e.g., frequently asked questions format).  Your suggestions are greatly appreciated and will help us tailor our efforts towards issues that are the most relevant.

To begin this discussion, I will host a conference call with those in the group who would like to participate in helping scope our development efforts.   Please contact Megan Cambridge at mcambrid@dtsc.ca.gov if you would like to participate.

U.S.EPA Grants for State Response Programs

DTSC, on behalf of California, applied for and received $1.5 million in U.S.EPA grant funds for State Response Programs under Subtitle C of the federal Small Business Liability Relief and Brownfields Act. The grant will fund ongoing and new activities designed to enhance California’s brownfields programs and encourage brownfields redevelopment in California.  In addition to ongoing activities such as support for the Brownfield Pilot Project and Showcase Communities and the federal Brownfields tax incentive, the grant funds will be used on new activities, including targeted site investigations, data management upgrades, FAIR Program support, and a brownfields inventory.  Below is additional information on two of these activities.

Targeted Site Investigations

One of the new activities to be conducted with the grant funds is Targeted Site Investigations (TSI).  Using the grant funds, DTSC and Regional Boards will perform site investigations at no cost to an applicant.  Only a portion of the grant funds is dedicated to this function, so the number of sites where site investigations will be conducted is very limited (we anticipate 10 sites at most this year).  DTSC, the State and Regional Boards, and Cal/EPA developed and have already been distributing an application packet to solicit applications and to assist in selecting candidate sites.  The TSI application packet (PDF, 40 KB) provides information to potential candidates of the program’s eligibility requirements, site selection process, and guidelines for completing an application.  DTSC, in collaboration with the Regional Boards and Cal/EPA, will review the applications and select a limited number of sites to receive these Targeted Site Investigations.

Applications are due to DTSC or any Regional Board by October 17, 2003.  If there are any remaining funds, additional applications will be solicited in December.

Please contact Megan Cambridge at mcambrid@dtsc.ca.gov to get an application packet or for additional information.

State Brownfields Inventory

To be eligible to receive funding under CERCLA Section 128(a), California had to demonstrate that its response program includes, or is taking reasonable steps to include, four elements cited in the law.  One of those elements is a “timely survey and inventory of brownfield sites in the State.”  Although DTSC and the State Water Board have databases of sites that each has had involvement, neither maintains lists or an inventory of brownfield sites with which they have had no involvement.  California committed to conducting a survey in its grant application.

Historically, DTSC and the State and Regional Boards have not created a list of brownfield sites for a variety of reasons.  The most significant is the tendency for such lists, or a site’s presence on such a list, to create a stigma or negative perception of a property.  In our experience, property owners have often objected to labeling or listing because contamination is not confirmed, and the State’s resources to resolve these uncertainties are limited (the quintessential brownfields dilemma).  Another factor to consider is whether being identified as a brownfield offers any type of advantage to either the current owner or the potential buyer or developer.  In our experience, if there are no incentives available, identification as a brownfield is a negative, not a positive.

That said, in addition to U.S.EPA’s requirement to inventory California’s brownfields, we recognize that there may be potential benefits to developing an inventory (depending on the nature of the inventory and the information kept).  An inventory of some sort could be used to analyze current environmental issues in school facilities planning and cities’ redevelopment and smart growth efforts, to identify emerging trends, and to project workload and funding needs for Cal/EPA boards and departments as well as school districts and local governments to address brownfield sites.

Our inventory efforts must navigate this landscape, and we would like to get your feedback and ideas as we proceed.  I would like to host a conference call with those in the group who would like to participate and help scope our efforts.   Anyone interested in participating in this conference call please contact Rick Brausch at rbrausch@calepa.ca.gov.

Information Items/Progress Reports

CLEAN Program

The table below contains information about each of the recipients of CLEAN Loan Program loans.

Recipient  Previous Use  Planned Use	Amount Approved Dispersed to Date
Downtown Los Angeles (Sun Chemical Site)  Former paint and printing ink manufacturing plant  Commercial, and possibly loft residences	$1 million $556,745
Vacaville Redevelopment Agency  Former chrome plating shop  Mixed use commercial and retail	$237,600 $141,412
East Bay Habitat for Humanity  Former salvage yard  20-24 single-family residences	$425,000 $ 37,507*
Richmond Redevelopment Agency  Former Kaiser shipyard  Commercial, retail, residential, public access/open space	$1.9 million 0**
Santa Fe Springs (Angeles Chemical Site)  Former chemical company  Commercial and industrial facilities	$950,000 $243,677
Murieta  Former battery storage facility  54 market-rate single-family homes	$700,000 $700,000
* Implementation of the approved Removal Action Work Plan has been delayed until May or June 2004 because of the organization’s other project commitments and delays in getting insurance and permanent financing from the city of Oakland. **Although a cleanup plan for the site has been approved, the redevelopment agency has been undergoing staff changes, and the City is negotiating with the site’s developer on the development plan and the extent of necessary cleanup.

Additional information about the program can be found at http://www.dtsc.ca.gov/SiteCleanup/Brownfields/index.html#CLEAN%20Brownfields%20Loan%20Program

Please stay tuned to future Brownfields Updates for additional information on these projects.

FAIR Program

Information about Cal/EPA’s ongoing efforts to implement the Financial Assurance and Insurance for Redevelopment (FAIR) environmental insurance program can be found at http://www.calepa.ca.gov/Brownfields/Fair.htm.

Cal/EPA’s advertisement and selection efforts resulted in the provisional selection of AIG Environmental as the insurer to write policies under the FAIR Program.  Cal/EPA is now negotiating with AIG on the terms and conditions of the cost overrun, liability, and secured creditor policies to be provided under the program, as well as the details of the administration and implementation of the program.  We are targeting reaching agreement with AIG and rolling out the program sometime this quarter.

Please stay tuned to future Brownfields Updates for additional information.

Cal/EPA Screening Values

SB 32 (Chapter 764, Statutes of 2001) by Senator Escutia enacted the California Land Environmental Restoration and Reuse Act. Among other things, the Act required Cal/EPA to develop a set screening values for hazardous materials commonly found at brownfields sites.

The Office of Environmental Health Hazard Assessment is heading up Cal/EPA’s efforts to develop screening values.  OEHHA anticipates having a first draft of the screening numbers available by the end of this year.  Workshops will be scheduled to discuss the draft numbers, as well as a draft users manual for the numbers, around February of next year, with a targeted release of a final set in June 2004.

Additional Information on Cal/EPA’s efforts to develop screening values can be found under the second bullet at http://www.calepa.ca.gov/Brownfields/SB32.htm.

Please stay tuned to future Brownfields Updates for additional information.

Action Agenda

In our June meeting, we spoke of finalizing the Cal/EPA Brownfields Action Agenda (PDF, 31 KB).

Other News:

Brownfields 2003: Growing a Greener America

This year's annual Brownfields Conference is scheduled to take place at the Oregon Convention Center in Portland, Oregon from October 27-29, 2003.  The conference is sponsored by U.S.EPA and registration is free.  For additional information or to register online, go to the conference’s web page at www.brownfields2003.org.

USEPA 2003 Brownfields Workshops

The U.S. Environmental Protection Agency (USEPA) Region 9 Brownfields Team is hosting six California workshops to assist communities interested in applying for brownfields assessment, cleanup, and revolving loan fund grants.  See USEPA 2003 Brownfields Workshops (PDF, 13 KB)

Summary of Discussion Groups Identified Above

Topic	Contact	Contact email
Cal/EPA Brownfields Legislative Proposal	Rick Brausch	rbrausch@calepa.ca.gov
Guidance Document Development	Megan Cambridge	mcambrid@dtsc.ca.gov
State Brownfields Inventory	Rick Brausch	rbrausch@calepa.ca.gov