AN ACT CONCERNING BROWNFIELDS DEVELOPMENT PROJECTS.

1. extends Transfer Act exemptions to property municipalities take by eminent domain,

2. eliminates the sunset date on a Connecticut Development Authority (CDA) program that finances brownfield projects, and

3. makes it easier for state agencies to develop property in floodplains.

EFFECTIVE DATE: July 1, 2009, except that the Transfer Act exemptions take effect upon passage.

The bill broadens the Transfer Act exemption for municipalities. The Transfer Act allows a potentially contaminated property to be sold only after the owner indicates its environmental condition and, if the property is contaminated, a party agrees to clean it up. Current law exempts municipalities from the act when they acquire tax delinquent property by foreclosing on a tax lien or through a tax warrant sale. The bill additionally exempts property municipalities or their development agencies take by eminent domain.

The bill also broadens the exemption that applies when municipalities convey these properties. The exemption currently applies only to property they acquired to recover back taxes and that were cleaned up under DECD's Brownfields Pilot Program. The bill extends it to any property municipalities or their development agencies take by eminent domain or acquired for back taxes, regardless of whether it is being cleaned up under the pilot program.

1. the party acquiring the property did not cause or contribute to the pollution and has no connection with the party that did and

2. the property is being cleaned or will be cleaned under the DEP voluntary remediation program.

The bill permanently allows CDA to issue bonds on behalf of municipalities to finance brownfield remediation and information technology projects. Municipalities must repay the bonds with property tax and other revenues. Under current law, CDA's authority to issue the bonds expires on July 1, 2010.

The bill makes it easier for state agencies to develop property in floodplains. By law, an agency must obtain the DEP commissioner's approval before transferring state-owned property in these areas or doing things that could affect land uses there. Under current law, the commissioner may approve the activity if it serves the public interest, will not harm people or property, and complies with the National Flood Insurance program. She may also approve a flood control project that meets these criteria and is more cost effective than one constructed to or above the base flood or base flood for a critical activity.

Under the bill, the commissioner can approve an activity that changes the permitted use of a property subject to DEP clean up requirements. The change must not be considered an “intensive use,” but the bill does not define this term or specify who determines if the use meets this criterion.

The bill specifically allows the reuse of mills and abandoned or underutilized sites to occur without having to obtain an exemption if:

1. the project renovates existing structures,

2. the new structure's footprint does not exceed the former's structure's historic footprint,

3. residential living space is above the 500-year flood elevations, and

4. the renovation complies with the National Flood Insurance Program.

SB 271 (File 411) allows the DEP commissioner, regardless of any contrary state floodplain law, to waive state floodplain management laws for a proposed improvement or redevelopment of a property on which there is a mill, provided the improvement conforms to National Flood Insurance Program requirements.

sSB 885 (File 842) extends the sunset date for the CDA program that finances brownfield projects from July 1, 2010 to July 1, 2012.

The House referred the bill to the Appropriations Committee, which reported a substitute eliminating provisions:

1. expanding the range of costs that developers and municipalities can recover for cleaning up brownfields, specifying criteria for establishing immunity from liability for these costs, and setting deadlines by which brownfield remediators must act to recover costs;

2. limiting the remediation a developer must perform under a covenant not to sue to the contamination within a property's boundaries; and

3. limiting liability for municipalities entering and inspecting property.

Yea

Nay

(03/12/2009)

Yea

Nay

(04/13/2009)

Yea

Nay

(04/27/2009)