Government Affairs REPORT

Third-party liability bill approved

(May 20, 2005) After several previous attempts to pass similar bills, both the House and Senate have this year passed SB-795, An Act Concerning Third-Party Liability For Contaminated Property. The bill provides liability protection for owners of brownfield and other contaminated properties that have been remediated under a DEP approved cleanup.

SB-795 is expected to help foster development of abandoned sites returning them to productive economic use. The bill now heads to Gov. Rell, who is expected to sign it.

According to the Connecticut Brownfields Redevelopment Authority, concern over future liability is one of the most significant barriers to getting these sites back to productive use. Enactment of SB-795 will encourage the redevelopment of abandoned, contaminated properties and as a result create more opportunities for job creation and increased local tax revenue.

Under SB-795, developers investing in formerly contaminated properties (e.g. “brownfield” sites) that have been cleaned up under a state-approved program would receive limited liability protection in the event the cleanup missed some contamination that later affects another party.

The bill explicitly provides no liability protection from state or federal agencies. In the event of future impacts from contamination not detected under the DEP-approved cleanup, state and federal authorities retain full authority to take whatever actions they would deem necessary to address the problem and seek cost-recovery from any liable person or entity.

For more information, contact CBIA’s Eric Brown at browne@cbia.com or 860-244-1900.