Brownfields
The term Brownfield refers to an industrial or commercial site which has potentially been marked by the disposal of hazardous waste or other pollutants making it undesirable and in need of remediation. These sites are typically underused and often abandoned, leaving patches of unproductive space in the community. Do to the known or potential contaminants on site, many of these sites remain idle because developers don’t want to be responsible for the pollution or full price of cleanup. However, this philosophy is changing.

What is being done to salvage these sites?
Financial assistance, new programs and legislation bring a new attitude to redevelop areas that would have remained dormant in the past because of strict regulations. Through tax incentives, Volunteer Cleanup Programs (VCP), federal and state government aid available, and environmental insurance, the heavy financial burden that once existed is mitigated, now making these sites more attractive to perspective buyers. With the help of remediation companies specializing in contaminated sites, coupled with environmental insurance, brownfield sites are a much better risk for developers and can once again play an active role in a community.

What steps are needed in re mediating a Brownfield Site?
When a developer or investor decides they want to buy a potentially contaminated site, they must make sure all bases are covered to protect themselves and meet environmental standards. The basic steps are:

• Phase I Site Assessment: The Investor must hire someone (typically from the private sector) to conduct a preliminary site assessment this involves a walk through of the site, historical use review, regulatory records review, etc.
• Phase II Site Assessment: If contamination is probable, further investigation and sampling will follow.
• Remedial Action Plan: Once the contaminants are identified the presumptive remedy must be decided upon and a Remedial Action Plan and Cost Estimate are prepared.
• Remediation Activities: Once feedback on the RAP is received from State Environmental Agencies, work can begin.

What type of Insurance would cover Brownfield Cleanup?
When purchasing environmental insurance for a brownfield cleanup you want to get the most extensive coverage to minimize loss. The best option would be the purchase of an Environmental Impairment Liability policy to cover pollution paired with a Cost Cap policy, which covers any project cost overruns. This way the developer or investor is covered for a preexisting pollutant or any incident that occurs during cleanup and for any additional costs which might arise as the project gets underway.

What can be done to obtain Environmental Insurance?
Once the site has been thoroughly investigated by the remediation company or environmental consultant the site summary and Phase I and II can be passed along to the environmental insurance company. The insurance company will evaluate the risks involved and quote an adequate policy limit to cover the project.

Required information for the carrier:

• Completed and signed application and environmental survey
• Completed site investigation Phase I and II (if applicable)
• Projected cleanup technology that will be utilized
• Additional requirements may apply dependant upon the carrier.

Trends in Brownfield Remediation Projects
Through increased federal funding and legislation that limits liability, Brownfield Investment has grown into a multi-million dollar market. As brownfield projects continue to grow at a steady rate hundreds of successful brownfield remediation projects have been completed nationwide benefiting the communities as well as employment rates creating thousands of jobs from these newly revitalized locations.