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June 27, 2002 THIS WEEK:
---------------------------------------------------------------------------- Brownfields Weekly welcomes your organization's press releases, industry conference announcements, and brownfields project updates. Click here to contact the Editors. ----------------------------------------------------------------------------
BP-ARCO Fined Record $45 Million for Storage Tank Violations SAN FRANCISCO, California - Oil giant BP-ARCO will spend $45.8 million to settle charges that it installed inadequate underground storage tanks in at least 59 Arco gas stations in California. The leaky tanks may have allowed gasoline and the additive MTBE to leak into soil and groundwater, prosecutors charged. "My administration has moved forcefully to make sure that California's vital water supply is protected now and for years to come," said California Governor Gray Davis. "Protecting our ground water from potentially leaking tanks, with or without MTBE, is a top priority." California Attorney General Bill Lockyer filed the agreement June 19, noting that the settlement includes the largest penalty ever imposed for underground tank violations. "Gasoline stations were given 10 years to make required safety upgrades to underground fuel storage tanks to better safeguard our water supplies and protect the environment from unseen leaks," Lockyer said. "The landmark settlement ends our two year investigation which found that ARCO failed to make required safety improvements at 59 service stations spread across the state from San Diego in the south to Sacramento and Marysville in the north and failed to disclose the truth to government officials." The case was based on investigations of underground tanks by the California Environmental Protection Agency, state Water Resources Control Board and the San Francisco Department of Health. In 1987, California gave gasoline stations a 10 year deadline by which to meet strengthened underground fuel tank standards for corrosion protection, leak detection, spill prevention and environmental protection. Upgrades such as the use of double walled or non-corrosive fiberglass linings were required to be installed by December 22, 1998. Responding to industry concerns that delays in government inspections could result in service stations closures, oil companies were allowed to self certify completion of upgrade work. Violations could result in civil penalties of up to $5,000 per day. ARCO sponsored the legislation allowing self certification, and in 1998, the oil company sued several local regulatory agencies in California who would not issue the upgrade certification without actual on site inspections. The state's investigation found that ARCO falsely self certified some of its own stations, claiming they had fiberglass tanks and piping, when portions of the piping were actually unprotected steel, which can corrode and leak. Prosecutors argued that ARCO's actions provided the company with an unfair business advantage. While other companies were shutting down service stations to meet the deadline for underground tank improvements, ARCO continued selling gasoline at 59 stations, postponing upgrade costs and hiring contractors to do the work after the rush by other companies seeking to meet the state deadline. The settlement provides for $25 million in penalties and costs to be paid by ARCO and $20.8 million in improvements that the oil company claims it has already made, but must now demonstrate have been completed at its gas stations. The payment includes civil penalties, reimbursement of investigation and enforcement costs and funding for the prosecution of other environmental protection cases. The company also agreed to court enforceable monitoring, inspection and enforcement conditions at more than 900 ARCO stations in California. ARCO merged with BP Amoco in April 2000. "We believe that ARCO, which cooperated in this enforcement case, is now in full compliance with the upgrade standards at all its gasoline stations," Lockyer said. "As further assurance, the oil company under the settlement must provide state inspectors with access to ARCO stations and close immediately any gasoline stations discovered with upgrade violations until required improvements are made."
Ohio to Award First $40 Million Under Revamped Cleanup Plan COLUMBUS, Ohio - Ohio will kick off a revamped brownfields initiative next month when it awards the first round of grants under its new cleanup program. The Ohio Department of Development will parcel out $40 million among 27 applications. The requests total more than $64 million, but the program's guidelines limit the state's total contribution to $40 million annually for four years, under a program approved by voters in 2000. Each application is capped at $3 million. The money will go for site studies, demolition and remediation work. Like most brownfields efforts, the program's aims are dual: cleaning up distressed or abandoned industrial properties and returning them to the tax rolls through productive re-use. "The program is aimed at moving these projects along quickly. The contracts run for 30 months," says John McGill, who oversees the program for the state. The U.S. Environmental Protection Agency found Ohio's eight-year-old Voluntary Action Plan lacking because of insufficient oversight. VAP cleanup teams were not required to provide information about site contaminant characterization or cleanup programs until work was finished. As a result, EPA never certified the plan. The modified program gives Ohio EPA and the public access to information from the early stages. Each program team must have a state-certified contractor who will ensure that the plan and the work comply with state standards. Akron-based consulting engineer Environmental Design Group is optimistic that its two applications will succeed. "The applications come from 19 public works districts all over the state, to make sure that every area gets a fair shot" says Betsey Bowe, who prepares grant applications. "We have two strong candidates, one in Akron and one near Cincinnati." Akron's $2.8-million Middlebury Grocery renewal project involves an 81,000-sq-ft structure on a 6.5-acre site. Contamination involves "slight asbestos contamination, several old underground storage tanks and groundwater aquifer contamination," says Ron Clark, EDG program manager. The $2-million Lockland project involves the abandoned American Tissue papermill between lanes of Interstate 75 near Cincinnati. "We're looking at a substantial building - 48-inch I beams on 6-ft centers," says Clark. Problems include USTs and polychlorinated biphenyls from old transformers. But, he points out, the location is hard to beat. Reprinted with permission from Engineering News-Record, copyright The McGraw-Hill Companies, Inc., June 10, 2002. All rights reserved.
Last Chance to Enter the Phoenix Awards - Deadline June 30 The 2002 Phoenix Awards - the nationally recognized award honoring those working to solve the critical environmental problem of transforming brownfields into productive new uses - will be one of the highlights of this year's National Brownfields Conference, Brownfields 2002, in Charlotte, North Carolina this November 13-15. The Phoenix Awards encourages any individual, group, government body or agency, company or organization to apply for a Phoenix Award. If you have a last-minute entry, for an application, visit the Phoenix Awards web site or call Sharon Williams at (717) 783-3143.
Banks Taking Action on Environmental Initiatives, Brownfields Lending ARLINGTON, Virginia - According to a recent survey conducted by the Environmental Bankers Association (EBA), financial institutions are paying closer attention to corporate citizenship including environmental, social and sustainability issues. EBA found that 76% of financial institution respondents offer sustainable products and services such as Brownfields-related lending products. The survey results further indicate that close to 80% of the financial institutions believe that there would be changes related to corporate disclosure and transparency from boards of directors as a result of the recent Enron/Arthur Anderson debacle. Further, 91% of the respondents agreed that global climate change is a timely political issue with 70% implementing either a strategic energy policy or energy efficiency projects at some level within their organization. Concerning internal initiatives, 92% state that their financial institutions have recycling programs. Approximately 94% of respondents believe that there is value in collecting data associated with internal initiatives such as paper consumption, waste removal, recycling, energy consumption and facility remediation activity. The Environmental Bankers Association (EBA) recently conducted the survey of its member institutions in response to investor inquiries that were targeted at several EBA member institutions. "In the wake of public concerns related to corporate citizenship, our members are more and more frequently being questioned by investors that are benchmarking the financial services sector in the area of corporate responsibility," said Helen Sahi, president of the EBA. "This survey will help guide the financial services sector to better address these valid concerns and understand market trends and demands on institutions to be more transparent."
PA SiteFinder: Brownfield Property Selling Made Easy Real estate professionals will attest to the challenges of owning and selling brownfield properties. For years, the brownfield market was regarded as a black hole, and the selling process was laced with caveats, restrictions and liability concerns. Today, the brownfield landscape has improved, and more than ever, sellers have resources to effectively reach and market to prospective buyers. The Commonwealth of Pennsylvania has led this transition by introducing PA SiteFinder, a unique Internet resource for brownfield real estate transactions that links buyers and sellers of brownfield properties. Sponsored by the Pennsylvania Department of Environmental Protection's Land Recycling Program, PA SiteFinder is transforming brownfields into investment opportunities. The web site currently lists more than 300 commercial and industrial brownfield properties for sale or lease throughout Pennsylvania. The first of its kind in the nation, PA SiteFinder compiles property information, financial assistance and other technical assistance in one user-friendly place to help guide buyers and sellers through real estate transactions. The site is a key resource for the Land Recycling Program, which offers liability relief and financial incentives to encourage brownfield redevelopment. Prior to PA SiteFinder, sellers of brownfield properties had to rely on traditional marketing strategies to attract buyers. Strategies such as advertising were often costly and did not always reach the intended target audience. Potential buyers, on the other hand, had to do a significant amount of legwork to identify available brownfield properties. PA SiteFinder's services and convenience help facilitate brownfield remediation and offer a clear road to redevelopment. Stephen Pholar, with West-to-West Coalition, has sold three of his brownfield properties through PA SiteFinder and currently has 17 properties listed on the web site. Pholar believes that PA SiteFinder's positioning as a "one-stop-shop" has lured many potential investors and venture capitalists to the website. "PA SiteFinder allowed me to connect with three out-of-town buyers who really appreciated being able to view photographs of the brownfield properties that I had listed and read detailed description without ever having to leave their offices," he stated. Pennsylvania has been a leader in brownfield redevelopment since the launch of the Land Recycling Program in 1995. To date, the Pennsylvania Land Recycling Program has rehabilitated more than 1,000 brownfield sites and has been responsible for creating or retaining more than 25,000 jobs. This success has not gone unnoticed. The Pennsylvania Land Recycling Program recently received the Ford Foundation's Innovations in American Government Award for the second time in five years. In 2001, the Washington, DC Chapter of the International Association of Business Communicators awarded PA SiteFinder a "Silver Inkwell" award of merit for outstanding website. For more information on the Land Recycling Program and PA SiteFinder, visit http://www.state.pa.us (PA Keyword "Land Recycling"), or go to http://www.pasitefinder.com. |