Support is growing across the country for programs that restore abandoned, contaminated property to productive use. The EPA and the states are offering new ways to protect industry, investors, and lenders from environmental liability where they are willing to redevelop existing contaminated industrial or commercial properties, often referred to as "brownfields." Methods being used to foster redevelopment include agreements and covenants not to sue for buyers of contaminated properties, lender liability policies, and "no further action" letters.
On July 3, 1995, EPA published its guidance on agreements with prospective purchasers of brownfields. This guidance essentially directs EPA regional officers to enter into flexible and fast-track agreements not to sue buyers of contaminated property for contamination that existed prior to acquisition. The guidance lists criteria by which EPA will consider entering covenants not to sue under CERCLA, describes the process by which these agreements may be entered, and includes a Model Agreement.
Having recognized that failure to provide cooperative approaches to the remediation of contaminated properties carries serious consequences, the EPA and the states have taken steps to promote brownfields development on both a national and a local level.
