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WHO IS GETTING TAKEN TO THEDimensions CLEANERS? Advanced Environmental WORKING WITH THE TCEQ’S DRY CLEANER REMEDIATION PROGRAM John Slavich Guida, Slavich & Flores, P.C. 750 N. St. Paul Street, Suite 200 Dallas, Texas 75201 214.692.0009 E-Mail: [email protected] 2 Dry Cleaner Environmental Response Statute • Texas Health & Safety Code Chapter 374 • Originally created by 78th Legislature in 2003 • Amended by 79th Legislature in 2005 © 2006 3 Overview • Provided for registration, operational regulation, investigation and remediation (“corrective action”) of dry cleaning facilities. • Created a fund to pay for corrective action for releases from dry cleaner facilities. (374.101) • Financed by dry cleaner registration fees and fees imposed on the purchase of dry cleaner solvent. (374.055) © 2006 4 Overview (cont’d) • Provided for rules that impose performance standards. (30 TAC § 337.20) • Imposed release reporting for dry cleaning solvents. (374.151(b)) © 2006 5 Definitions • • • • • • • Release (374.001(13)) Dry Cleaning Facility (374.001(7)) Dry Cleaning Solvent (374.001(8)) Contaminated Dry Cleaning Site (374.203(a)) Owner (374.001(12)) Fund (374.001(11)) Corrective Action (374.001(4)) – Also definitions in regulations (30 TAC Ch. 337, as most recently amended effective 2/1/06) © 2006 6 Dry Cleaner Remediation Program • If a contaminated dry cleaning site has been ranked under 374.154, then State of Texas may use money from the fund (up to $5M for that single site) (374.203) for corrective action at the site © 2006 7 Eligibility • Two classes of owners are eligible to apply for a site to be ranked. (374.154(b) and .203) 1. Owner of dry cleaning facility – Not in arrears for money owed to state – In compliance with applicable performance standards (at time of release) 2. Owner of the real property on which the facility is located. – Five-year ownership requirement removed in 2005 amendments • Includes former owners of facility and owners of real property on which facility was formerly located (§ 337.31(a)(2)) © 2006 8 Site Ranking (374.154; § 337.31) • An eligible person must submit a ranking application to be eligible for State cleanup (374.203(c)) • Non-emergency sites are ranked in order of relative significance (374.154(a)) • Deductible of $5,000 per site must be met (374.203(a)) © 2006 9 Site Ranking (con’t) • TCEQ is to assign a rank for a site based on information contained in application (374.154) • Ranking procedures (§ 337.31) – Numerical score assigned for a site • TCEQ to assign ranking within 90 days. © 2006 10 Site Prioritization (§337.30 ) • Determined semi-annually (§337.30(a)) • TCEQ will consider factors in addition to ranking score (§337.30(b)) • Relative priority can change (§337.30(c)) © 2006 11 Corrective Action • TCEQ is responsible for corrective action • Corrective action includes investigation, assessment and cleanup of affected soil, groundwater, and surface water (onsite and offsite) • TCEQ cannot compel eligible persons to undertake corrective action (exceptions) • TCEQ can compel site access • TCEQ can approve “other entities” to perform corrective action © 2006 12 Comparing DCRP to VCP DCRP VCP Who can apply? “Eligible persons” Anyone (subject to site eligibility) Cost to apply $5,000 deductible $1,000 application fee State contractors (State-lead program) Applicant hires contractors Who does work? © 2006 13 Comparing DCRP to VCP DCRP (cont’d) VCP Other costs None Pay for corrective action; pay for State oversight State confirmation of completion No Further Action letter Certificate of Completion Protection Eligible persons exempt from claims under State law for: (i) Cost recovery (ii) Enforcement of corrective action (with exceptions) © 2006 Release of liability to future owners and lenders 14 Points for Clients to Consider • Is the site impacted by contaminants of concern in addition to dry cleaning solvents from the dry cleaning facility? – DCRP limited to addressing dry cleaning solvents from dry cleaning facilities (374.208(b)) – Other COCs need to be addressed under other State programs. • When will NFA letter be issued? – Impact on financing – Impact on exit strategy © 2006 15 Points for Clients to Consider (con’t) • Is a commercial/industrial closure sufficient? – Impact on residential/mixed-use redevelopment. • Cannot dual track DCRP and VCP. – Limit on being in both programs simultaneously. – Can drop out of DCRP and re-enter. • DCRP work can bar later entry of site into VCP. – Remediation will make site ineligible for VCP (See § 333.6 of VCP rules, Q&A C2 and C4). © 2006