Land Transaction Land Transaction ScreeningScreening

Blake VeldeBlake VeldeSr. Environmental ScientistSr. Environmental Scientist

USDA Hazardous Materials Management GroupUSDA Hazardous Materials Management GroupOctober 2006October 2006

OverviewOverview

• Environmental Liability• Innocent land owner/Bona fide prospective

purchaser• Land transactions• All Appropriate Inquiry• Department Guidance• Checklist Overview• Technical Assistance

Environmental LiabilityEnvironmental Liability

• CERCLA and other environmental laws

• Report quarterly to OCFO

• OCFO Act requirement

• CERCLA Liability -- $2 B plus

• DM-5600-1 Goal

• All Appropriate Inquiry shield

Environmental LiabilityEnvironmental Liability

• Superfund Sites• USDA program• No more increase to

environmental liability

Innocent Landowner/BPPInnocent Landowner/BPP

• Land Acquisitions after November 1, 2006

• Protection from CERCLA liability

• Conduct search to determine condition of property at the time of acquisition

• Includes easements

• Defense for innocent landowner and a bona fide prospective purchaser

Why Should NRCS Care?Why Should NRCS Care?

• WRP and other conservation programs

• Trigger CERCLA or RCRA liability when lands are “managed”

• Disturb hazardous substances or materials that otherwise may not be mobile

• “Protective of Human Health & the Environment”

InundationInundation

• Changes to the condition of the property

• Potentially increase mobility of contaminants

• Management of land features (dykes, berms) where contaminants may be concentrated

• Adverse impacts

All Appropriate InquiryAll Appropriate Inquiry

• EPA promulgated rule (40 CRF 312)

• 2002 Brownfield Act provisions

• Amended CERCLA (Superfund)

• Prospective land purchases afforded shield to liability

• USDA/Interior Land managing agency joint guidance/policy

Joint WorkgroupJoint Workgroup

• USDA (OPPM, OGC, Forest Service, NRCS

• Interior (OEPC, Solicitors, FWS, BLM, BIA, NPS)

• Justice

• Others on the sidelines – GSA, Defense, EPA, USCG

• Federal Land managers – over 33% of US

Requirements of AAI Requirements of AAI § 312§ 312

• (a) One year prior to Acquisition • (b) 180 day refresh• (b)(1) Interviews• (b)(2) Record Search for cleanup

liens• (b)(3) Record Search other

Fed/State/Local• (b)(4) Visual Inspection• (b)(5) Report by Environmental

Professional

Guidance OverviewGuidance Overview

• Interior/USDA developed guidance for each of these requirements

• General overview and explanation of terms

• Detailed checklists for record search, interviews, site visits

• Overseeing a Contractor• Reviewing Environmental Professional

qualifications

AAI ProcessAAI Process

• Exercise of Professional Judgment• Current/past practices causing release of

HAZMATS• Gathering records• Interviews with current/past owner operators• Site inspection• Report detailing findings• Sign-off by qualified Environmental Professional• AAI conducted by individuals under the

“responsible charge of a qualified Environmental Professional

Qualified Environmental Qualified Environmental Professional (EP)Professional (EP)-- -- § 312.10 (a)§ 312.10 (a)

• (1) Possesses specific training, work experience, education to conduct this work:

• (2)(i) PE or PG license and 3 yrs full time relevant experience (FTRE), or

• (2)(ii) Lic. or certified by Fed/State/Local to conduct this and 3 yrs FTRE, or

• (2)(iii) Bachelors Science or Engineering and 5 yrs FTRE, or

• (2)(iv) Equivalent of 10 yrs FTRE

EP Full Time Relevant ExperienceEP Full Time Relevant Experience

• Participation in AAI’s• Env. Site Assessments• Phase 1/Phase 2’s• CERCLA PA/SI’s, RI/FS’s

EE/CA’s• RCRA, NEPA or other site

assessments• Full Time definition

EP Relevant ExperienceEP Relevant Experience

• Years and qualifications may not be enough

• Specialized experience for specific projects

• Team approach

• ASTM standard and “non-scope” items

• Partial responsibility = partial year experience (10 yrs @ 50% duty = 5 yrs)

EP EducationEP Education

• Bachelor of Science or Engineering and professional registration

• Other AAI certification/licensing – ongoing project

• Relevant Training

• Possible course information provided

Pre-Acquisition Environmental Site Pre-Acquisition Environmental Site Assessment (PESA)Assessment (PESA)

• Similar to Phase 1

• Similar to ASTM Phase 1 – non scope items

• Updated existing ASTM standard -- ASTM E1527-00 suffices for EPA rule – USDA and other federal land managing agencies have other legal requirements - CFO Act

Why Non-Scope?Why Non-Scope?

• CFO Act “environmental liabilities”

• Impact on Mission

• Asbestos, Lead Paint, oil

• Assess Fair Market Value

• DM-5600-1 requirement to provide costs/liabilities to decision makers

• Early go/no-go decision making

ProcessProcess

• Qualified EP – Appendix C

• Responsible Charge of EP

• Record Search

• Interviews

• On-site survey

• EP report

Who?Who?

• Qualified EP ultimately signs report• Responsible Charge of EP may conduct actual work• §312.10(b)(5): “A person who does not qualify as an

environmental professional … may assist in the conduct of all appropriate inquiries … if such person is under the supervision or responsible charge of a person meeting the definition of an environmental professional…”

• Oversight, Control, Direction of Work• Does NOT have to be direct report• Contractor – new appendix under development

What?What?

• Records Search

• Interviews

• Site Survey

• Report

Record SearchRecord Search

• Gather existing records Fed/State/Local

• Old photos, maps• Check waste site

inventories• Adjacent properties• Permits, wells, sewer,

waste treatment

InterviewsInterviews

• Past and current owners/operators/ occupants/employees

• Subject/Adjacent properties

• Site History• Use• Problems• Follow-up from record

search

Site SurveySite Survey

• On-site visit 1 yr of acquisition - 180 days prior to transaction

• Waiver for unusual circumstances

• Adjacent properties

• Obvious contamination

• Verify questions from records search and interviews

• Photo log and journal

EP Final ReportEP Final Report

• Critical component of AAI

• Written Documentation of findings from records search, interviews, site survey

• No specific format – additional guidance forthcoming on outline

• Findings

• ID data gaps

EP Final Report Cont.EP Final Report Cont.

• Professional judgment

• Sign – qualified EP (312.10)

• Sign – conducted inquiry consistent with 312

• Does not require professional “stamp”

• No retention requirements, but need to retain for future court actions.

Next StepsNext Steps

• Issue Secretary Memo authorizing use of interim guidance, checklists and other tools

• Use for a year and update DM-5600-1 and AGPMRs

• Continue developing common tools for use by federal land managing agencies

• Develop more detailed training courses

Contact InformationContact Information

• Blake Velde

USDA HMMD

1400 Independence Ave SW MS-9100

Washington DC 20250

blake.velde@usda.gov

202.205.0906

Questions?Questions?