To encourage the purchase, cleanup, reuse and economic revitalization of property that may be environmentally contaminated, EPA announced a proposed rule this week requiring potential owners to conduct certain inquiries into the previous ownership, uses, and environmental conditions of the land prior to purchase.

If the inquiries are performed properly and other reasonable steps undertaken, the purchasers can buy the land with assurance from EPA that they will not be subject to lawsuits under the Superfund hazardous waste cleanup law.

Although the current Superfund law provides some protection to “innocent” land purchasers who unknowingly buy contaminated property, the statutory language is ambiguous. Today’s proposal provides certainty for purchasers of potentially contaminated property and reduces yet another barrier to cleanup and redevelopment in local communities across the nation.

The Agency’s proposal will also apply to any person conducting a waste site characterization or assessment with funding from the federal Brownfields grant program, regardless of whether a purchase takes place.

Prospective property owners who do not conduct the inquiries properly may lose their ability to claim protection from Superfund liability. Superfund authorizes EPA to negotiate with parties that helped create hazardous waste sites to get them cleaned up.

If these parties refuse to cooperate, EPA can sue them to conduct the cleanup. Regardless of how the cleanup is conducted, Superfund also gives EPA the authority to recover from parties any costs it incurs as part of the cleanup effort.

Currently, land purchasers who unknowingly buy contaminated property can find themselves subject to Superfund liability.

8/27/2004