VRP Programs

Many current owners and potential buyers of brownfields, as well as lenders, developers, and other interested parties are very concerned with the existing or potential liability under the federal and state superfund laws. These superfund statutes provide for strict, joint, and several liability for past environmental contamination, which in many cases, can subject buyers and others to liability for the cleanup of a property even though they played no role in contaminating the property.

These liability concerns have often prevented the re-development and re-use of slightly to moderately contaminated commercial and industrial properties which otherwise could be well used for locating new commercial or industrial enterprises. This, in turn, costs our state new business and industry, new jobs, and new tax revenues.

In 1995, the Louisiana Legislature passed Act 1092, known as the Voluntary Investigation and Remedial Action law, which allows property owners and other persons who clean up properties to risk-based standards (see Louisiana Risk Evaluation/Corrective Action Program (RECAP)) to get a Certificate of Completion from the Louisiana Department of Environmental Quality (LDEQ). With this Certificate, the property owner and any subsequent owners of the property are released from further liability under state law for the past contamination at the site. In effect, the certificate allows potential buyers to acquire and remediate brownfields properties without fear of state superfund liability.

On April 20, 2001, LDEQ promulgated the Louisiana Voluntary Remediation Regulations to implement this statute and formalize the Voluntary Remediation Program within the department. LDEQ will use the statute and these new regulations to facilitate voluntary cleanups.

These state statutes and regulations do not relieve buyers of federal liability under the federal superfund statutes. The United States Environmental Protection Agency (USEPA) could still potentially take action against a buyer or others.

To this end, the LDEQ is working closely with the USEPA. LDEQ is seeking federal recognition of the Louisiana Voluntary Remediation Program in the form of a Memorandum of Agreement. Under this agreement, the USEPA would not generally go after a property owner whose cleanup has been blessed under the state program.

LDEQ is also seeking to partner with other agencies, such as the Louisiana Department of Economic Development (LDED) and the federal Department of Housing and Urban Development (HUD), and also with local governments to promote redevelopment of brownfields properties.

Hopefully, these and future efforts will result in brownfields properties being put back into commerce, thereby generating new business, new jobs, and additional tax revenues for state and local improvements.