Creates division of developmental assistance, environmental indemnification and land use control to provide developers with indemnification for contamination; repealer

§400-Legislative findings and declarations.

§401-Definitions.

§402-Division of Development Assistance, Environmental Indemnification and Land Use Control.

§403-Executive Board.

§404-Establishment of a plan of indemnification and an Office of Indemnification.

§405-Environmental remediation projects pursuant to this article.

§406-Criteria for a program of indemnification.

§407-Application of indemnification and land use controls.

§408-Cost of indemnification.

§409-Responsibility of responsible parties.

§410-Liability limitation and indemnification.

§411-Change of use.

§412-Continuation of the State Superfund Management Board

§413-Cost of demolition of structures on various sites.

§414- Indemnification for responsible developer.

§415-Municipality participation.

§2-Amends the State Finance Law, by adding new §99q. This new section establishes an Environmental Remediation Indemnification Fund.

§3-Repeals §27-1319 of the Environmental Conservation Law and a new §27-1319 is added related to the State Superfund Management Board. §4- Contains a severability clause.

§5-Effective date.

Justification

New York State's ability to thrive and develop economically is gravely handicapped by the presence of properties that are, or are suspected of being, contaminated with hazardous wastes or substances, which are commonly known as brownfield sites. Many of these sites were once used as industrial areas and were tainted with contaminates employed or used for manufacturing, agriculture or other industrial purposes. A substantial number of these sites would be ideal areas for new uses. Typically these sites are in prime locations where transportation, water, power resources and other existing infrastructures are within a close proximity.

Unfortunately, all too often, these sites are not being remediated and reused. Owners of these properties and possible developers are often concerned that redevelopment of these sites might force upon them extensive future costs due to exposure to possible governmental or third party lawsuits stemming from contamination associated with the properties.

This apprehension to redevelop or develop these sites has an adverse impact upon the economic development of the communities where these properties are located. It is difficult for these communities to attract companies that would bring employment and other vital economic development benefits to the area. This also affects the tax base of the communities by impairing their ability to provide the municipal services that they are required to deliver. This impairment often leads the municipality to seek special assistance from the state, which reduces the state's ability to further reduce its tax burden and its own ability to attract and retain more development in general.

The sooner that the enduring contamination problem of brownfield sites is addressed, the better it will be for the health and environment of the people within the state. There will be a greater opportunity to develop these contaminated properties, to provide more employment opportunities and to assist in promoting economic development throughout the whole state.

Those who wish to develop these sites simply want to be assured that the costs they incur will be ascertainable and reflected in the cost of remediation of the property. The public also wants to be assured that the properties will be remediated to as close to their original, uncontaminated state as appropriate and that they remain so.

The creation of the mechanism embodied in this bill to indemnify brownfield redevelopment projects for possible future costs serves the interests of all New Yorkers and represents a critical piece of the overall comprehensive brownfield remediation approach needed in our state.

Fiscal implications

None.

Prior legislative history

2007-2008: S.1305/A.3894, 2005-2006: A.5764A/S.2808A, 2003-2004: A.6474/S.2896, 2001-2002: A.9269-C/S.5570-C

Effective date

This act shall take effect immediately.