Brownfields were the surprise winner in last year’s legislative session in Connecticut. The Connecticut General Assembly enacted two significant environmental laws that provide resources and create incentives for the private sector to clean up brownfields and put them into use.

Most prominently, An Act Concerning Brownfields, Public Act No. 06-184, raises the profile of brownfields statewide by (1) establishing a sub-agency dedicated solely to brownfields; (2) funding a pilot program for municipalities or economic development agencies to remediate brownfield sites; (3) creating a liability exemption for entities that purchase brownfield sites remediated under this pilot program; and (4) forming a “task force to study strategies for providing long-term solutions for the state’s brownfields.”

Establishes Brownfields Office
Section 1 of An Act Concerning Brownfields establishes an Office of Brownfield Remediation and Development (Brownfields Office), administered by Connecticut’s Department of Economic and Community Development, with liaisons from the Department of Environmental Protection (DEP) and the Connecticut Development Authority.

The Act charges the Brownfields Office to develop procedures to streamline the brownfield remediation process; identify and create funding sources and expedite the funds’ release; facilitate compliance with cleanup requirements; identify and prioritize brownfield development opportunities; analyze other states’ actions, and; educate property owners about brownfield remediation.

Creates Pilot Program with Liability Exemptions
The Connecticut Brownfields Office will establish and operate a state-funded pilot program to identify brownfield remediation economic opportunities in four Connecticut municipalities of varying sizes, and to provide them with grants.

Section 4 of the Act renders municipalities and economic development agencies receiving grants under the brownfields pilot program as “innocent parties” and therefore exempt from state environmental liability. Section 3 provides an incentive for municipalities to enter into the program properties that they have acquired through foreclosure on tax liens or at tax warrant sales.

After remediation is complete, a municipality or economic development agency may transfer the property to anyone who is not otherwise liable under state environmental law. Section 6 of the Act shields eligible purchasers from liability so long as the purchaser does not cause or contribute to the discharge and is not in any way related to or affiliated with the liable party. The DEP will provide the purchaser with a covenant not to sue and will waive fees. Liable parties seeking to acquire title or an interest in a property remediated under the pilot program must reimburse all investigatory and remedial costs plus 18 percent interest.

Brownfields Task Force
The Act also created a nine-member task force to help guide the legislature with regard to long-term brownfield issues. Task force members, who were appointed by various legislative officials and the Commissioner of Environmental Protection, have “expertise in brownfield development either in environmental law, engineering, finance, development, consulting, insurance, or other relevant experience.” A task force report is expected any day now.

The Connecticut Brownfields Office, pilot program and available funding combine to create promising new tools for developing Connecticut brownfields. While more remains to be done, the Connecticut General Assembly has begun to encourage the private sector to clean up and reuse environmentally contaminated sites.

Sharon R. Siegel and Barry J. Trilling are attorneys with Wiggin and Dana, LLP, in Stamford, Conn.