Liability

DNR Updates VPLE Oversight And Insurance Fees

Posted on by Coreen Fallat

The Wisconsin Department of Natural Resources (DNR) updated the hourly oversight fee for review of technical documents submitted through the Voluntary Party Liability Exemption (VPLE) program. The DNR must calculate the hourly billing rate each year (Wis. Admin. Code § NR 750.07(2)). The new hourly rate is $125, an increase from the previous rate of $115 per hour. The new rate took effect on July 1, 2024.

The VPLE program supports voluntary parties who conduct an environmental investigation and cleanup of a brownfield property in exchange for an exemption from future environmental liability for historical contamination. 

The DNR also recently made the VPLE insurance fee schedule available on the VPLE webpage. Insurance is required for VPLE sites where natural attenuation is used to restore groundwater quality to meet enforcement standards (Wis. Stat. § 292.15(2)(ae)(3m)). The insurance fees for sites in the VPLE program have not changed and are in effect until May 15, 2027. Insurance coverage is through a policy with Ironshore Specialty Insurance Company. 

Any questions about the insurance requirements should be directed to Michael Prager at 608-261-4927 or Michael.Prager@wisconsin.gov. 

Brownfield Redevelopment Open House For Local Governments On April 24, 2024

Posted on by Jodie Thistle

The Wisconsin Department of Natural Resources (DNR) will hold a brownfield redevelopment open house for local governments on Wednesday, April 24, 2024. 

A brownfield is a property where expansion, redevelopment or reuse is complicated by real or potential contamination. Brownfields vary in size, location, age and past use; they can be anything from a 500-acre former automobile assembly plant to a small, abandoned gas station.  

The open house will focus on resources available to local governments for redevelopment of brownfield properties into community assets, including funding, liability and other tools and assistance available from the DNR.    

Staff from the DNR and Wisconsin Economic Development Corporation (WEDC) will be available for questions and discussions on brownfield resources as well as due diligence in the acquisition of brownfield properties and how to locate information about contaminated sites.   

Local government officials interested in learning more about brownfield redevelopment in Wisconsin are encouraged to attend.   

When:
April 24, 2024
10 a.m. – noon 

Where:
DNR Spooner Service Center 
Community Room 112
810 W Maple St.
Spooner, WI   

Attendees should RSVP to Thomas.Coogan@wisconsin.gov by April 18, 2024.   

Unable to attend but interested in learning how cleaning up brownfields can help your community? The DNR’s series of on-demand Brownfields Fundamentals webinars cover planning, cleanup, liability, and other topics as part of a well-rounded crash course in Wisconsin brownfield redevelopment.   

The DNR has a wide range of financial and liability tools available to help local governments, businesses, lenders, and others clean up and redevelop brownfields in Wisconsin, including Ready for Reuse financial awards, which may be used for environmental cleanup. DNR staff around the state are available to meet with community leaders, bankers, developers and private individuals to discuss brownfield projects through Green Team meetings.   

More information about the DNR’s brownfield cleanup programs and services is available on the DNR’s brownfields webpage.   

Now Available: Guidance: DNR’s Superior Lien Authority and What It Means for Property Owners (RR-507), Guidance: Environmental Liability Exemptions for Lenders and Representatives (RR-508) and Guidance: Post-Closure Modifications (RR-982)

Posted on by Christine Sieger

Following a public comment period, the following publications are now posted and available online:

Guidance: DNR’s Superior Lien Authority and What It Means for Property Owners (RR-507)
This guidance is intended for property owners and mortgagees. It defines and explains a superior lien, which is a type of environmental lien that the Wisconsin Department of Natural Resources (DNR) places on properties when the DNR cleans up contamination on a property and is not reimbursed. A superior lien allows the DNR to recover the public funds spent on the cleanup.

Guidance: Environmental Liability Exemptions for Lenders and Representatives (RR-508)
The purpose of this guidance is to provide information to lenders and representatives about environmental liability exemptions available for sites with hazardous substance discharges to the environment.

Guidance: Post-Closure Modifications (RR-982)
The purpose of this guidance is to aid in the preparation and review of post-closure modification (PCM) submittals to the DNR. Information about the types of PCMs, the process, fees and types of responses available from the DNR is provided. This guidance is for use by property owners, responsible parties, environmental consultants and DNR staff. It is based on authority provided under Wisconsin Statutes (Wis. Stat.) § 292.12(6) and Wisconsin Administrative Code (Wis. Admin. Code) ch. NR 727.

Additional documents and guidance from the Remediation and Redevelopment (RR) Program may be found using the search tools available on the RR Document Search and Resource Portal.

Questions regarding RR-507 and RR-508 may be submitted to Molly Schmidt at MollyE.Schmidt@wisconsin.gov. Questions regarding RR-982 may be submitted to Jodie Thistle at Jodie.Thistle@wisconsin.gov.

Now Available: Publication RR-619, Guidance: General Liability Clarification Letters

Posted on by Mick

Following a public comment period and consideration of the comments received, the publication RR-619, Guidance: General Liability Clarification Letters, is now posted and available online.

The document can be found here. Additional documents and guidance from the Remediation and Redevelopment Program may be found using the search tools available on the publications and forms webpage.

RR-619 describes when general liability clarification letters, as defined in Wis. Stat. § 292.55, may be helpful and how parties can request a general liability clarification letter from the DNR.

Questions regarding these documents may be submitted to Michael Prager at Michael.Prager@wisconsin.gov.

Public Input Opportunity Ends Soon for Publication RR-619, Guidance: General Liability Clarification Letters

Posted on by Mick

The public comment period ends next week on October 28, 2021 for the publication RR-619, Guidance: General Liability Clarification Letters.

The document can be found at the RR Program’s Public Notices & Guidance web page under the “Program Guidance” tab. Comments may be submitted through Oct. 28, 2021 to Michael Prager at Michael.Prager@wisconsin.gov or to DNRRRGuidance@wisconsin.gov.

The guidance document describes when general liability clarification letters, as defined in Wis. Stat. § 292.55, may be helpful and how parties can request a general liability clarification letter from the DNR.

Public Input Opportunity – Publication RR-619, Guidance: General Liability Clarification Letters

Posted on by Mick

The Remediation and Redevelopment (RR) Program is now seeking input on the publication RR-619, Guidance: General Liability Clarification Letters.

The guidance document describes when general liability clarification letters, as defined in Wis. Stat. § 292.55, may be helpful and how parties can request a general liability clarification letter from the DNR.

The publication can be found at the RR Program’s Public Notices & Guidance web page under the “Program Guidance” tab.

Comments may be submitted through October 28, 2021 to Michael Prager at Michael.Prager@wisconsin.gov or to DNRRRGuidance@wisconsin.gov.

Environmental Liability Exemptions in the VPLE Program

Posted on by Mick

The cleanup and redevelopment of contaminated properties has become a critical land use issue for public and private entities across the country. These brownfields – abandoned or underused properties where redevelopment is hindered by real or perceived contamination – are often the key to a successful community redevelopment project.

Many developers, lenders and prospective purchasers of brownfields choose to enroll in the Voluntary Party Liability Exemption (VPLE) program versus a traditional cleanup path, since the VPLE provides certain liability assurances helpful to investors as well as future property owners.

Continue reading “Environmental Liability Exemptions in the VPLE Program” →

Updated VPLE Insurance Fees

Posted on by Mick

The Voluntary Party Liability Exemption (VPLE) Insurance fee schedule (RR-661) is now updated and available on the DNR website.

The VPLE program allows a party to conduct an assessment and remedial action of an entire property with DNR oversight to obtain a liability exemption. Insurance is required for VPLE sites where groundwater contamination levels are above enforcement standards and the DNR determines that natural attenuation will restore groundwater quality.

Continue reading “Updated VPLE Insurance Fees” →

Environmental Liability Exemptions for Local Governments – Related to Redevelopment

Posted on by elisabethkuisis

Counties, cities, villages and towns, along with RDAs, CDAs, other local governmental units, can fairly easily obtain environmental liability exemptions, civil immunity, and cost recovery authority in Wisconsin when taking title to unproductive/abandoned industrial and commercial properties.

These protections are explicitly authorized by multiple sections in Wis. Statutes Ch. 292, and are designed to enable local governments to take action to stimulate redevelopment activities at contaminated or potentially contaminated properties when the private market is not providing enough capital and economic activity to achieve the desired level of community improvement on its own.

Remediation and Redevelopment Program staff are available to help local government officials understand and use these robust statutory tools, as well as identify financial assistance opportunities for environmental investigation and cleanup work. The DNR’s Green Team meetings are a good way to get started on your first, or next, redevelopment project.

The DNR publication Local Government Environmental Liability Exemptions in Wisconsin (RR-055) provides an overview of several local government environmental liability exemptions, and lists types of documentation that the DNR typically requests to confirm that the exemption is in effect.

Engaging Real Estate Lenders in Brownfields Redevelopment Projects

Posted on by elisabethkuisis

Financing can make or break a redevelopment project; however, lenders are often wary of the environmental liabilities associated with brownfields redevelopments. In order to encourage lenders to finance these projects, Wisconsin state law exempts lenders from environmental liabilities for a range of lending activities, if they meet certain statutory conditions.

In its 2015 report, Investing in Wisconsin, the Brownfields Study Group (BSG) recognized that Wisconsin’s liability exemption for lenders had recently turned 20 years old, and noted that the lending industry had evolved significantly over those two decades. The BSG recommended that a subset of the group meet with stakeholders to examine whether the exemption remains useful and relevant in light of current lending practices and regulations.

Between May 2016 and April 2017, a group of Wisconsin DNR personnel, lenders, attorneys, and trade organizations met five times to discuss, in a public forum, the various components of the state’s lender liability exemption and analyze whether the current exemption meets the needs of lenders and the public. In April 2017, this group of professionals formed a list of recommendations for the BSG, which will consider the proposed items at an upcoming public meeting.

During this effort, the Wisconsin DNR renewed its outreach efforts and strengthened partnerships with the lending community. The Wisconsin DNR reviewed its lender factsheets and updated and republished several guidance documents. The Wisconsin Bankers Association helped the Wisconsin DNR reach the WBA members by authoring informational articles in its membership publications and by distributing Wisconsin DNR’s guidance at its compliance forums, and including information in teaching materials for its compliance courses. Wisconsin DNR staff continue to reach out to bankers and lenders at statewide conferences and via Green Team meetings.