HB378ENROLLED Page 0 CVB4JW-3 By Representative Brown RFD: Economic Development and Tourism First Read: 25-Apr-23 2023 Regular Session 1 2 3 4 5 HB378 EnrolledHB378 Enrolled Page 1 Enrolled, An Act, Relating to environmental protection; to amend Sections 22-30E-2, 22-30E-3, 22-30E-4, 22-30E-5, 22-30E-9, and 35-19-4, Code of Alabama 1975, to provide potentially responsible parties with limitations of liability with respect to a brownfield site; to create the Brownfield Remediation Reserve Fund; to add Sections 22-30E-14, 22-30E-15, and 22-30E-16 to the Code of Alabama 1975, to provide for the creation of brownfield redevelopment districts; and to make nonsubstantive, technical revisions to update the existing code language to current style BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 22-30E-2, 22-30E-3, 22-30E-4, 22-30E-5, 22-30E-9, and 35-19-4, Code of Alabama 1975, are amended to read as follows: "§22-30E-2 (a) The Legislature finds that rural and urban property properties in Alabama may have areas of with actual or perceived contamination at levels that may not be subject to assessment or cleanup under applicable laws and regulations. The Legislature finds that this perception of contamination discourages the purchase and productive use of otherwise usable properties. The Legislature further finds that the voluntary assessment and /or cleanup of such properties is in the public interest. (b) The Legislature finds that industries and developers often give preference to previously unused 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB378 EnrolledHB378 Enrolled Page 2 greenfield sites are often selected for development over previously used property due largely to concerns over the financial and environmental liabilities which may be incurred in acquiring such previously used property for reuse and redevelopment. The Legislature further finds that the appropriate reuse and redevelopment of properties which are contaminated, or perceived to be contaminated, is in the public interest. (c) The Legislature finds that the reuse of previously utilized property is an important component of a sound land use policy that will help to preserve heretofore undeveloped farmland, open space areas, and natural areas; and reduce public costs for installing new water, sewer, and other utilities and highway infrastructure. (d) The Legislature finds that it is necessary to pass legislation that provides a mechanism to implement a cleanup program which encourages applicants to voluntarily assess, cleanup, remediate, and provide for the productive reuse of such properties. The Legislature further finds that such a cleanup program will increase the overall acreage and inventory of potential properties for redevelopment that would otherwise remain unavailable while also providing sources of revenue for payment of additional cleanup costs which may arise after remediation , while not relieving . This finding shall not be interpreted to relieve a "responsible person ," as defined by Section 22-30E-3, from any liability for administrative, civil, or criminal fines or penalties otherwise authorized by law and imposed as a result of illegal 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB378 EnrolledHB378 Enrolled Page 3 disposal of waste or for pollution of the land, air, or waters of the state in violation of established laws and regulations on an identified property. (e) Therefore, the Legislature hereby establishes a program, to be implemented, maintained, and administered by the Alabama Department of Environmental Management, to encourage the voluntary cleanup and the reuse and redevelopment of such properties." "§22-30E-3 Unless otherwise defined in this chapter, the definition of all terms included in Section 22-30-3 shall be applicable to this chapter. Other definitions as necessary may be promulgated adopted as rules and regulations by the department for further implementation of this chapter. Also, as used in this chapter, the following words and terms have the following meanings: (1) ALABAMA LAND RECYCLING AND ECONOMIC REDEVELOPMENT COMMISSION. That commission which is created in Section 22-30E-12. (2)(1) APPLICANT. An owner or operator or prospective purchaser of a qualifying property seeking to participate in the voluntary cleanup program established pursuant to this chapter. (2) BROWNFIELD REMEDIATION RESERVE FUND. The account or fund authorized by Section 22-30E-5. (3) BROWNFIELD REMEDIATION RESERVE FUND CONTRIBUTION. An amount provided to the department by a responsible person applicant pursuant to Section 22-30E-5 for deposit into and to 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB378 EnrolledHB378 Enrolled Page 4 be used for the purposes of the Brownfield Remediation Reserve Fund. (3)(4) CERTIFICATE OF COMPLIANCE. A statement prepared by a professional engineer or geologist licensed to practice in the State of Alabama which certifies compliance with a voluntary cleanup plan required by Section 22-30E-9. (4)(5) CLEANUP. For purposes of this chapter, cleanup means the The cleaning up, remediation, control, or removal of contaminants from the environment in accordance with an approved voluntary cleanup plan. (5)(6) COMMISSION. The Environmental Management Commission as defined in subdivision (4) of Section 22-22A-3 , unless the context clearly indicates a reference to the Alabama Land Recycling and Economic Redevelopment Commission . (6)(7) DEPARTMENT. The Alabama Department of Environmental Management. (7)(8) ENVIRONMENT. The term includes the following, as defined by the federal Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C., Section § 9601, et seq.: a. The navigable waters, the waters of the contiguous zone, and the ocean waters of which the natural resources are under the exclusive management authority of the United States under the Magnuson Fishery Conservation and Management Act. b. Any other surface water, ground water, drinking water supply, land surface or subsurface strata, or ambient air within the State of Alabama or under the jurisdiction of the State of Alabama. 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB378 EnrolledHB378 Enrolled Page 5 (8)(9) FACILITY. The term is synonymous with "property." (9)(10) HAZARDOUS SUBSTANCE. Any substance listed on the List of Hazardous Substances and Reportable Quantities, codified as 40 C.F.R., Part 302, Table 302.4, in force and effect on May 21, 2001, and subsequent revisions thereof, or any substance listed on the List of Extremely Hazardous Substances and Their Threshold Planning Quantities, codified as 40 C.F.R., Part 355, Appendix A, in force and effect on May 21, 2001, and subsequent revisions thereof. (10)(11) HAZARDOUS WASTE TREATMENT, STORAGE, OR DISPOSAL FACILITY. Any property or facility which is intended or used for the treatment, storage, or disposal of hazardous waste subject to the permit requirements of Section 22-30-12. (11)(12) LAND USE CONTROLS. Any restriction or control, which serves to protect human health and/or the environment, that limits use of and/or exposure to any portion of a property, including water resources. (13) LETTER OF CONCURRENCE WITH CONDITIONS. A letter issued by the department to an applicant upon the department's concurrence with the certificate of compliance that pertains to the response action and contains a legal description. (12)(14) OWNER or OPERATOR. a. The term includes the following: 1. In the case of a facility, any person owning who is the owner or operating operator of such the facility. 2. Any person who owned, operated, or otherwise controlled activities at a facility immediately prior to title 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB378 EnrolledHB378 Enrolled Page 6 or control of the facility being conveyed due to bankruptcy, foreclosure, tax delinquency, abandonment, or similar means to a unit of state or local government. b. The term does not include a person who can show evidence of ownership or a deed in lieu of foreclosure primarily to protect that person's security interest in the facility or who acts in good faith solely in a fiduciary capacity and who did not actively participate in the management, disposal, or release of hazardous wastes, hazardous constituents, or hazardous substances from the facility. c. The term does not include a unit of state or local government which acquired ownership or control involuntarily through bankruptcy, tax delinquency, abandonment, or other circumstances in which the government involuntarily acquires title by virtue of its function as sovereign. However, this exclusion shall not apply to any state or local government which has caused or contributed to the release of hazardous waste, hazardous constituents, or hazardous substances from the facility. (15) PERSON. Any individual, corporation, general or limited partnership, limited liability company or partnership, joint venture, association, trust, unincorporated organization, or governmental authority. (16) POST-REMEDIATION COSTS. Includes all costs to which all of the following apply: a. Are incurred after issuance of the Letter of Concurrence with Conditions for, or with respect to, the 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB378 EnrolledHB378 Enrolled Page 7 investigation, assessment, cleanup, remediation, control, or removal of contaminants resultant from, in whole or part, a preexisting release at the qualifying property that were identified and addressed in reports, assessments, or plans approved by the department to demonstrate compliance with the risk reduction standards from the qualifying property. b. Are not incurred as a result of noncompliance with the applicable response action or land use controls within the environmental covenant by the applicant. (13)(17) PREEXISTING RELEASE. A release , as that term is defined in this section, which occurred prior to an applicant's application for a limitation of liability pursuant to Section 22-30E-9. (14)(18) PROPERTY. The term is synonymous with "facility" and includes the following: a. Any land, building, structure, installation, equipment, pipe or pipeline, sewer or publicly owned treatment works, pipe into a sewer or publicly owned treatment works, well, pit, pond, lagoon, impoundment, ditch, landfill, or storage container. b. Any site or area where a hazardous waste, hazardous constituent, hazardous substance, or petroleum product has been deposited, stored, disposed of, placed, or has otherwise come to be located. (15)(19) PROSPECTIVE PURCHASER. A person who intends to purchase a qualifying property. (16)(20) QUALIFYING PROPERTY. A property which meets the criteria of Section 22-30E-6. 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB378 EnrolledHB378 Enrolled Page 8 (17)(21) RELEASE. Any intentional or unintentional act or omission resulting in the spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, including, without limitation, the abandonment or discarding of barrels, containers, and other closed receptacles, of any hazardous waste, hazardous constituent, petroleum products, or hazardous substance. (18)(22) REMEDIATION. This term is synonymous with "cleanup." (23) REMEDIATION COSTS. Includes all costs incurred for, or in relation to, the investigation or cleanup of, equitable relief relating to, or damages resultant from, in whole or in part, either of the following: a. A preexisting release at a qualifying property, including any liability to the state or any other person for the cleanup of the property under Chapters 22, 27, 30, 30A, and 35. b. A new release of a substance, constituent, or material which had been a part of a preexisting release at the property, unless the new release results from noncompliance with an approved voluntary property assessment plan or voluntary cleanup plan or from the negligent, wanton, willful, or intentional conduct of the applicant. (19)(24) RESPONSE ACTION. Those actions taken in the event of a release or threatened release of a hazardous waste, hazardous constituent, petroleum product, or hazardous substance into the environment to remove, or to prevent, or 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB378 EnrolledHB378 Enrolled Page 9 minimize the release of hazardous waste, hazardous constituents, petroleum products, or hazardous substances so that they do not pose a threat to public health or the environment. (20)(25) RESPONSIBLE PERSON. This term generally means Except as otherwise provided, any person who has contributed or is contributing to a release of any hazardous waste, hazardous constituent, or hazardous substance at a property. This term specifically includes those persons described in Sections 107(a)(1) through 107(a)(4) of the federal Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C., § 9601, et seq. This term specifically excludes a responsible person applicant for those matters addressed in the assessment plan and those persons described in Section 107(b) of the federal Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C., §9601, et seq. (26) RESPONSIBLE PERSON APPLICANT. Any owner or operator who makes application and submits an assessment plan for a qualifying property into the voluntary cleanup program and who has been accepted by and whose assessment plan has been approved by the department. (21)(27) RISK ASSESSMENT. A written site specific evaluation of the risks to human health and the environment posed by conditions at a site. (22)(28) VOLUNTARY CLEANUP PLAN. A voluntary cleanup plan approved under Section 22-30E-9. (23)(29) VOLUNTARY CLEANUP PROPERTIES INVENTORY. The 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB378 EnrolledHB378 Enrolled Page 10 Voluntary Cleanup Properties Inventory compiled and updated by the department pursuant to Section 22-30E-11. (24)(30) VOLUNTARY PROPERTY ASSESSMENT PLAN. A voluntary property assessment plan approved under Section 22-30E-9." "§22-30E-4 (a) The department, acting through the commission, may adopt, promulgate, modify, amend, and repeal rules and regulations to implement and enforce this chapter as necessary to provide for the voluntary assessment, cleanup, reuse, and redevelopment of qualifying properties. All rules and regulations established pursuant to this chapter shall comply with applicable provisions of the Alabama Administrative Procedure Act, Section 41-22-11. (b) The department's rules and regulations shall include, at a minimum, the following: (1) Rules and regulations establishing cleanup standards. (2) Rules and regulations governing procedures for placement of properties on and removal of properties from the Voluntary Cleanup Properties Inventory required under the provisions of Section 22-30E-11. (3) Rules and regulations governing procedures for the filing in the deed records of the probate courts of appropriate notice upon approval of a certificate of compliance. (4) Rules and regulations governing the maintenance and retention of records pertaining to activities carried out 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB378 EnrolledHB378 Enrolled Page 11 under this chapter. (5) Rules and regulations providing for public notice and participation and for meaningful community involvement in the voluntary cleanup program. (6) Rules and regulations for establishing the criteria for conducting a voluntary assessment plan. (7) Rules and regulations for establishing the criteria for a responsible person applicant to participate in the voluntary cleanup program and to be eligible for the limitations of liability provided in this chapter. (8) Rules and regulations with respect to the terms, provisions, contributions, custody, and application of the Brownfield Remediation Reserve Fund. (9) Rules and regulations addressing the reporting of preexisting contamination or a preexisting release detected during the course of due diligence or site assessment activities to the department, provided that any release-reporting obligations shall be co-extensive with federal release-reporting obligations. (7)(10) Rules and regulations governing the issuance of variances to the criteria for property qualification for the voluntary cleanup program pursuant to subsection (b) of Section 22-30E-6 (b), and to the criteria for applicant participation in the voluntary cleanup program pursuant to subsection (b) of Section 22-30E-7 (b). (c)(1) For purposes of subsection (b)(10), the a. The department may grant a variance from the eligibility requirements contained in subsection (a) of 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB378 EnrolledHB378 Enrolled Page 12 Section 22-30E-6 (a), and/or subsection (a) of Section 22-30E-7(a), or both, only if the department finds that such the requirements would render a property ineligible for cleanup under this chapter, that no other qualified party has applied to participate in the voluntary cleanup program at the subject property, and that: 1. Such ineligibility a. Ineligibility would result in the continuation of a condition which does that poses or could pose a threat to human health and/or the environment. 2.b. Compliance with an eligibility requirement will not provide for a cost-effective response and the proposed voluntary cleanup plan will attain cleanup standards that are equivalent to those required under any otherwise applicable requirement through the use of a department approved method or approach. 3.c. In the case of an abandoned site, the department would otherwise be required to perform the necessary cleanup using funds from the Alabama Hazardous Substance Cleanup Fund, as described in Section 22-30A-3, and the department would be unable to recover the cost of the cleanup as provided in Chapter 30A of this title. 4.d. In the case of a facility subject to the permitting, closure, postclosure, and/or corrective action requirements of Sections 22-30-12 and 22-30-16, the cleanup will be conducted in a manner consistent with the requirements of any applicable regulations and permits issued thereunder. Participation in the voluntary cleanup program may be used to speed up required investigation and cleanup at such sites, but 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB378 EnrolledHB378 Enrolled Page 13 shall not serve to limit the applicability or enforcement of any applicable requirements at such facilities. (2) The department may place such conditions upon the grant of a variance as it deems appropriate including, without limitation, a provision relating to the time in which all or a portion of the cleanup must be completed, and if the applicant fails to comply with such the conditions the department may modify or withdraw such the variance, with such the withdrawal subject to the department's administrative appeals process. b.(3) The department shall not grant any variance from the criteria for qualification for limitation of liability, as contained in Section 22-30E-8. (c)(d) In establishing cleanup standards pursuant to subdivision (1) of subsection (b) of this section: (1) The department shall consider impacts to human health and the environment. In establishing cleanup standards, cleanup levels may be based on specific requirements of relevant environmental laws or regulations (e.g., Clean Water Act, Clean Air Act, TSCA, RCRA, CERCLA), derived using the procedures outlined in Section 300.430(e)(2) of the National Oil and Hazardous Substances Pollution Contingency Plan (40 C.F.R. Part 300), and/or based upon the results of a site-specific risk assessment. (2) The department may set cleanup levels for all hazardous constituents, a subset of hazardous wastes, or for those hazardous constituents that the department has reason to believe may have been released at the property. (3) The department may set cleanup levels which that 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB378 EnrolledHB378 Enrolled Page 14 reflect current and future use scenarios for the property as follows: a. A site shall be deemed to have met the requirements for unrestricted use if the cleanup levels are derived in a manner consistent with department or Environmental Protection Agency guidelines for assessing human and environmental health risks from hazardous constituents. b. For sites that do not achieve the unrestricted use classification, restrictions on site use may be applied to achieve cleanup standards. Restrictions shall include, but not be limited to, land use controls. The restrictions imposed upon a site shall be media-specific and may vary according to site-specific conditions." "§22-30E-5 (a) In addition to the powers and duties specified in this chapter and in Sections 22-22A-1 to 22-22A-16, inclusive Chapter 22A of Title 22 , the department shall have and may exercise the following powers and duties: (1) To establish and collect fees from applicants for participation in the voluntary cleanup program authorized by this chapter, to be utilized for the administration of this chapter. (2) To deposit all Brownfield Remediation Reserve Fund contributions into the Brownfield Remediation Reserve Fund solely for the administration and purpose of this chapter as further provided in subsection (d). (2)(3) To make determinations, in accordance with procedures and criteria enumerated in this chapter and rules 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB378 EnrolledHB378 Enrolled Page 15 and regulations promulgated adopted pursuant to this chapter, as to whether a proposed voluntary cleanup plan is sufficient to bring the qualifying property into compliance with the cleanup standards. (3)(4) To monitor actions taken under approved voluntary property assessment plans and voluntary cleanup plans for the purpose of determining whether an applicant remains eligible for limitation of liability and for the purpose of determining whether to concur in a certificate of compliance. (4)(5) To approve voluntary property assessment plans. (5)(6) To approve voluntary cleanup plans. (6)(7) To concur with certifications of compliance. (7)(8) To seek and to receive federal, state, and local,legislative appropriations, or other funds, grants, delegations, materials, and services applicable for the programs and activities described herein in this section . (9) To establish a separate, segregated account or fund designated the Brownfield Remediation Reserve Fund. (10) To deposit in the Brownfield Remediation Reserve Fund all amounts received by the department from Brownfield Remediation Reserve Fund contributions. (11) To invest the amounts in the Brownfield Remediation Reserve Fund as provided by law for state funds and in a manner consistent with the purposes of the fund. (12) To apply and use the amounts in the Brownfield Remediation Reserve Fund, in the determination of the department, provided the amount does not exceed four million 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 HB378 EnrolledHB378 Enrolled Page 16 dollars ($4,000,000) per property, to pay the post-remediation costs with respect to any property in the state which was cleaned up or remediated in accordance with the provisions of this act after December 31, 2023, for which there is no responsible person, or in instances where the established risk reduction standards upon which a cleanup or remediation was previously conducted have changed, without regard to whether the amounts in the Brownfield Remediation Reserve Fund to be used for the property were derived from, or in respect of, the property. The Brownfield Remediation Reserve Fund may not be used to pay or reimburse any costs incurred as a result of noncompliance with the applicable response action or land use controls within an environmental covenant. (b) The powers and duties described in subsection (a) may be exercised and performed by the department through such duly authorized agents and employees as the director deems necessary and proper. (c) The obligations of the department for the application of amounts in the Brownfield Remediation Reserve Fund as provided in this chapter shall not constitute a work of internal improvement, a loan of money, or an extension of credit by the state to any private or corporate enterprise or any individual, association, or corporation. To the extent there are insufficient funds in the fund to be used to pay for remediation costs or post-remediation costs, the department shall have no obligations or responsibility to pay for or conduct cleanup activities. (d) The department shall collect from each responsible 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 HB378 EnrolledHB378 Enrolled Page 17 person applicant a Brownfield Remediation Reserve Fund contribution in the amount of five hundred dollars ($500) per acre for each qualifying property in addition to the voluntary cleanup program application and oversight fees established by the department. (e) Any unexpended or unencumbered funds remaining in the Brownfield Remediation Reserve Fund at the end of the state fiscal year shall not revert to the State General Fund but shall be retained in the fund for continued use in accordance with this chapter. " "§22-30E-9 (a) Subject to Sections 22-30E-8 and 22-30E-10, upon the first to occur of the department's approval of a voluntary property assessment plan, approval of a voluntary cleanup plan, or concurrence with the certification of compliance described in this section, whichever first occurs, an applicant who is not a responsible person , as defined in Section 22-30E-3, at the with respect to a qualifying property, shall be fully discharged and released from any and all liability not be liable to the state or any third party other person, including any successor in interest to the applicant with respect to the qualifying property, for costs incurred, including any remediation costs or post-remediation costs.in the investigation or cleanup of, or equitable relief relating to, or damages resultant from, in whole or in part, a preexisting release at the qualifying property, including, but not limited to, any liability to the state for the cleanup of the property under Chapters 22, 27, 30, 30A, and 35 of this 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 HB378 EnrolledHB378 Enrolled Page 18 title, or a new release of a substance, constituent, or material which had been part of a preexisting release at the property, unless such new release results from noncompliance with an approved voluntary property assessment plan or voluntary cleanup plan or from the negligent, wanton, willful, or intentional conduct of the applicant. (b)(1) A voluntary property assessment plan submitted by an applicant shall describe in sufficient detail those actions planned to develop information necessary to perform a risk assessment or identify applicable cleanup standards for the qualifying property utilizing risk-based corrective action principles through the appropriate implementation of applicable response actions and/or land use controls. (2) A voluntary property assessment plan shall include that a responsible person applicant for a qualifying property may limit the assessment of contaminants and may limit the delineation of potential contamination to the qualifying property boundaries or portions thereof. (2)(3) Upon the department's approval of the voluntary property assessment plan, the applicant shall implement the plan. (3)(4) The department's approval of the voluntary property assessment plan shall specify a time within which the applicant shall initiate activities under the voluntary property assessment plan. The department shall approve or disapprove each complete plan within 60 days of receiving the submittal. Failure to act within this time shall be deemed approval. 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 HB378 EnrolledHB378 Enrolled Page 19 (4)(5) If at any time the department determines activities at the property are not being implemented in accordance with the voluntary property assessment plan, the department may, after a reasonable opportunity is given to cure the deficiency, revoke the limitation of liability by providing the applicant with written notification specifying the basis for making such the determination and requesting modification and resubmission of a modified plan or an opportunity to address any deficiencies in implementing the plan within a reasonable specified time. If at any time the applicant or the department determines that any element of an approved voluntary property assessment plan must be modified in order to develop the information necessary to perform a risk assessment or identify applicable cleanup standards for the qualifying property, the applicant shall modify the approved plan and obtain approval of the proposed modification. If at any time the applicant determines that any element of an approved voluntary property assessment plan must be modified in order to terminate activities at the property for any reason, the applicant shall notify the department and obtain approval of the proposed modification which may be withheld only if the requested modification to terminate assessment activities would increase the risk to human health and the environment posed by the conditions at the property. (5)(6) An applicant shall, upon completion of those activities specified in the voluntary property assessment plan, submit to the department a report of the assessment and findings from the assessment, which may include a 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 HB378 EnrolledHB378 Enrolled Page 20 recommendation for applying cleanup standards to the property. (c)(1) A voluntary cleanup plan submitted by an applicant shall describe in sufficient detail those actions planned to satisfy the cleanup standards for the qualifying property. (2) The applicant shall submit proof of financial assurance, in such a form as specified by the department, of his or her ability to implement the voluntary cleanup plan, provided one form of acceptable assurance shall be to rely solely on the assets of the applicant. (3) Upon the department's approval of the voluntary cleanup plan, the applicant shall then implement the plan. The department's approval of a voluntary cleanup plan shall not in any way be construed as a guarantee, promise, or assurance that the department will concur with the applicant's certification of compliance with the cleanup standards. (4) The department's approval of the voluntary cleanup plan shall specify a time within which the applicant must initiate activities under the voluntary cleanup plan. The department shall approve or disapprove each properly submitted plan within 60 days after completion of applicable requirements established pursuant to subdivision (5) of subsection (b) of Section 22-30E-4 (b)(5). Failure to act within this time shall be deemed approval. (5) If at any time the department determines the cleanup is not being implemented in accordance with the voluntary cleanup plan, the department may, after a reasonable opportunity is given to cure the deficiency, revoke the 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 HB378 EnrolledHB378 Enrolled Page 21 limitation of liability by providing the applicant with written notification specifying the basis for making such the determination and requesting modification and resubmission of a modified plan or an opportunity to address any deficiencies in implementing the voluntary cleanup plan within a reasonable specified time. If at any time the applicant determines that any element of an approved voluntary cleanup plan must be modified in order to achieve the applicable cleanup standards for the qualifying property, the applicant shall notify the department and obtain approval of the proposed modification. If at any time the applicant determines that any element of an approved voluntary cleanup plan must be modified in order to terminate activities at the property for any reason, the applicant shall notify the department and obtain approval of the proposed modification which may be withheld only if the requested modification would increase the risk to human health and the environment posed by the conditions at the property. (6) An applicant shall, upon completion of those activities specified in the voluntary cleanup plan, submit to the department a compliance status report certifying the compliance of the qualifying property with the cleanup standards and cleanup requirements. The qualifying property shall be deemed in compliance with the cleanup standards upon the applicant's receipt of the department's written concurrence with the compliance status report. (d) Upon the department's approval of the voluntary property assessment plan or voluntary cleanup plan, the property shall be listed on the Voluntary Cleanup Properties 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 HB378 EnrolledHB378 Enrolled Page 22 Inventory as provided in Section 22-30E-11. (e) For those properties that are cleaned up to standards less stringent than those required for unrestricted residential use, the property owner shall comply with the requirements of subsection (b) of Section 22-30E-11 within 60 days of the submission of the certification of compliance. (f) Subject to Sections 22-30E-8 and 22-30E-10, upon the department's concurrence with the certification of compliance described in this section with respect to a qualifying property , an applicant shall be relieved of further liability to the state for the cleanup of the property under Chapters 22, 27, 30, 30A, and 35 of this title, for any contamination identified and addressed in reports, assessments, or plans submitted to and approved by the department to demonstrate compliance with the risk-reduction standards. (g) Subject to Sections 22-30E-8 and 22-30E-10, upon the first to occur of the department's approval of a voluntary property assessment plan, approval of a voluntary cleanup plan, or concurrence with the certification of compliance described in this section, with respect to a qualifying property, a responsible person applicant shall be fully discharged and released from any and all liability to the state or to any other person, including any successor in interest to the applicant, with respect to the qualifying property for post-remediation costs incurred in connection with, equitable relief relating to, or damages resultant from, in whole or in part, a preexisting release at the qualifying 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 HB378 EnrolledHB378 Enrolled Page 23 property." "§35-19-4 (a) An environmental covenant must meet all of the following requirements: (1) State that the instrument is an environmental covenant executed pursuant to this chapter. (2) Contain a legally sufficient description of the real property subject to the covenant. (3) Describe the activity and use limitations on the real property. (4) Identify every holder. (5) Be signed by the director, every holder, and unless waived by the agency, every owner of the fee simple of the real property subject to the covenant. (6) Identify the name and location of any administrative record for the environmental response project reflected in the environmental covenant. (b) In addition to the information required by subsection (a), an environmental covenant may contain other information, restrictions, and requirements agreed to by the persons who signed it, including any of the following: (1) Requirements for notice following transfer of a specified interest in, or concerning proposed changes in use of, applications for building permits for, or proposals for any site work affecting the contamination on, the property subject to the covenant. (2) Requirements for periodic reporting describing compliance with the covenant. 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 HB378 EnrolledHB378 Enrolled Page 24 (3) Rights of access to the property granted in connection with implementation or enforcement of the covenant. (4) A brief narrative description of the contamination and remedy, including the contaminants of concern, the pathways of exposure, limits on exposure, and the location and extent of the contamination. (5) An exculpatory provision that releases the grantor from future claims by the grantee or the grantee's successor in title that is consistent and enforceable under the laws of this state. (5)(6) Limitation on amendment or termination of the covenant in addition to those contained in Sections 35-19-9 and 35-19-10. (6)(7) Rights of the holder in addition to its right to enforce the covenant pursuant to Section 35-19-11. (c) In addition to other conditions for its approval of an environmental covenant, the agency may require those persons specified by the agency who have interests in the real property to sign the covenant." Section 2. Sections 22-30E-14, 22-30E-15, and 22-30E-16 are added to the Code of Alabama 1975, to read as follows: §22-30E-14 (a) The owner or owners of any affected property may deliver to any local government that has jurisdiction over the affected property a written petition requesting the local government to establish a brownfield redevelopment district, as a separate public corporation for the purposes of this chapter, for the affected property. The petition shall be 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 HB378 EnrolledHB378 Enrolled Page 25 executed by the owners of all affected properties who elect to be included within the district and shall set forth therein, or by attachments, all of the following: (1) The name and address of each owner. (2) A confirmation of the ownership of the affected properties to be included in the district. (3) The designation of a person, who may or may not be an owner of any affected property, to act as a representative of the owners before the local government. (4) A request that the local government adopt a resolution approving the formation of the district as a public corporation, approving the form of the articles of incorporation of the district, and authorizing the representative of the owners to form the district. (5) A proposed form of the articles of incorporation of the district which shall include: a. The names of the owners of the affected properties to be included within the district. b. A statement that the district is organized pursuant to this section by authority of the resolution adopted by the local government, a copy of which shall be attached to the articles of incorporation. c. The name of the district which shall be in the form of "The Brownfield Redevelopment District of the City (or Town) of," including such words or numerals sufficient to distinguish the district from other districts established by the local government (e.g., "West," "1," or "I"). d. A description by any reasonable reference method, 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 HB378 EnrolledHB378 Enrolled Page 26 including metes and bounds, tax assessment tracts, subdivision lots, or deeds of the affected properties to be included in the district. e. The location of the principle office of the district which shall be within the boundaries of the district and may be the principle office of the local government. f. The number and terms of office of the directors of the district. g. The period of the duration of the district, which shall not exceed 30 years from the October 1 which next succeeds the date of establishment of the district. h. That the district shall be a nonprofit corporation and no part of the net earnings which remain after payment of expenses shall inure to the benefit of any person other than the local government. i. That upon dissolution of the district as provided by law, title to any property then owned by the district shall immediately vest in the local government. (b) The governing body of the local government shall consider the petition as soon as practicable after receipt and, if the governing body determines that formation of the district is in the public interest, shall adopt a resolution upon original introduction of the petition for immediate consideration at a meeting of the body. The resolution need not be by unanimous consent and shall become effective immediately without publication and shall include all of the following: (1) A legislative determination that the establishment 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 HB378 EnrolledHB378 Enrolled Page 27 and incorporation of the district is necessary and in the public interest. (2) A legislative determination that all of the affected properties to be included in the district are located within the corporate limits or territorial boundaries of the local government. (3) The approval of the proposed form of the articles of incorporation of the district as set forth in the petition. (4) The authorization of the records clerk of the local government to provide to the representative of the owners of the affected property a certified copy of the resolution and of the proceedings of the governing body of the local government regarding the adoption of the resolution. (5) The authorization of the representative of the owners to proceed to establish, form, and incorporate the district by recording the articles of incorporation in the office of the judge of probate of the county in which the principal office of the local government is located. (c)(1) Upon receipt of the resolution and proceedings of the governing body of the local government by the representative of the owners of the affected property, the representative shall complete, execute, and acknowledge the articles of incorporation before an officer authorized by the laws of the state to take acknowledgments of deeds and cause the articles to be filed in the office directed by the resolution. (2) Upon filing the articles of incorporation, the district shall come into existence as a public corporation 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 HB378 EnrolledHB378 Enrolled Page 28 under the name provided in the articles and have all authority and powers provided by this chapter. The recorded articles of incorporation shall be conclusive evidence of the due, legal, and valid incorporation of the district in all courts. (d) A municipality or county may only establish a brownfield redevelopment district that includes affected property within the corporate limits or territorial boundaries thereof, provided a county may include any affected property within a municipality that is within the county so long as a majority of the members of the governing body of the municipality consent. (e) A brownfield redevelopment district established pursuant to this chapter shall constitute a governmental entity as defined in Chapter 93 of Title 11 for purposes of limiting the damages for which the district, and all of the district's directors, officers, and agents may be liable. (f) Upon establishing a brownfield redevelopment district, the applicants of qualifying property located within the district who meet the criteria provided in Section 22-30E-8 shall qualify for those limitations of liability provided in Section 22-30E-9(a) and (g), provided that each applicant of a qualifying property located within the district shall covenant not to sue any other applicant within the district commensurate with the release of liability provided to each applicant. §22-30E-15 (a) A brownfield redevelopment district formed and incorporated pursuant to Section 22-30E-14 shall be governed 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 HB378 EnrolledHB378 Enrolled Page 29 by a board of directors who shall have and exercise all power and authority of the district. (b) The board of directors shall be appointed by the governing body of the establishing local government and composed of the number of directors, provided not less than three, and for the terms of office as provided for in the articles of incorporation. Any officer of the local government or owner of any affected property within the district, regardless of residence, may serve as a director of the district. The board shall elect a chair, vice chair, and secretary-treasurer from the members of the board. (c) All directors shall remain in office upon the expiration of their term until a successor is appointed, and may be impeached and removed from office as provided in Section 175 of the Constitution of Alabama of 2022, and by the general laws of the state for impeachment and removal of officers mentioned in Section 175. A majority of the directors shall constitute a quorum for the exercise of all authority and powers of the district. Each director shall serve without compensation. §22-30E-16 A brownfield redevelopment district may do any of the following: (1) Adopt and amend bylaws not in conflict with the articles of incorporation. (2) Sue and be sued in civil action subject to the limitations of liability provided by this chapter. (3) At the direction of the local government which 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 802 803 804 805 806 807 808 809 810 811 812 HB378 EnrolledHB378 Enrolled Page 30 established the district: a. Provide for the administration, management, and supervision of the activities and business of the district. b. Acquire interests in property. c. Incur indebtedness for purposes of this chapter on behalf of the local government that is payable only from funds provided by the local government to the district for such use. (4) Make agreements and contracts, take all actions, and do any and all things not otherwise prohibited by law to accept, realize, and use any financial aid or other assistance provided by any person or other entity. (5) Take any other actions as necessary to carry out the authority expressly given in this section. Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law. 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 HB378 EnrolledHB378 Enrolled Page 31 ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 09-May-23, as amended. John Treadwell Clerk Senate 24-May-23 Passed 829 830 831 832 833 834 835 836 837 838 839 840 841 842 843 844 845 846 847 848 849 850 851 852 853 854