Prospective Purchaser Agreements and Liability Relief
A Prospective Purchaser Agreement between DTSC and a person who will be a responsible party upon the purchase of a site releases the purchaser from environmental liability when the site is cleaned-up according to DTSC's direction.
Senate Bill 1285 (Killea, Kelley) provides limited liability exemption for lenders and fiduciaries for releases of hazardous materials on property in which they have a legal interest, but did not directly cause or contribute to the release or potential release of hazardous substances.Management Memo: RP Ownership at Property Over Contaminated Ground Water (MM 90-11, December 1990)
California Land Reuse and Revitalization Act of 2004 (AB 389, SB 989 and SB 143)
The California Land Reuse and Revitalization Act of 2004 (Health and Safety Code Chapter 6.82 and 6.83), effective January 1, 2005, provides liability protections to bona fide purchasers, innocent landowners and contiguous property owners which are intended to promote the cleanup and redevelopment of blighted contaminated properties. The bill establishes a process for eligible property owners to obtain the immunities, conduct a site assessment and implement a response action, if necessary, to ensure that the property is ready for reuse.
The sunset date for the original CLRRA bill, Assembly Bill 389, was set to expire in 2010. Senate Bill 143 extends the repeal date to January 1, 2017. This bill also authorizes a prospective purchaser who is in contract to acquire a site and who qualifies as a bona fide purchaser to enter into a CLRRA Agreement. The qualified bona fide prospective purchaser who enters into an agreement will receive immunity upon site acquisition. Another senate bill, Senate Bill 989, outlines provisions for a bona fide ground tenant. For more information on bona fide prospective purchaser or bona fide ground tenant agreements, please contact your local Brownfields coordinator.
One of the eligibility requirements for this program is that All Appropriate Inquiries (AAI) be conducted in compliance with the Final Rule at 40 CFR Part 312 and ASTM E1527-05. For more information on the DTSC process for evaluation of AAI, refer to the EPA All Appropriate Inquiries Rule: Reporting Requirements Checklist for Assessment Grant Recipients.
The California Environmental Protection Agency’s (Cal EPA) web site contains links for General Information. DTSC Boilerplate documents have been developed in order to make the agreement and implementation process more predictable and expeditious. DTSC recognizes that property owner and site specific issues may necessitate minor modifications to the boilerplate documents listed below: