‘Game Changer’ Environmental Regulatory Reforms Adopted

A key legislative committee has approved sweeping reforms to the state’s outdated Transfer Act, long seen as an obstacle to economic development.

The Regulation Review Committee unanimously approved the release-based cleanup regulations April 22, with new regulations set to take effect in March 2026.

CBIA member companies and partners met monthly over the past four years with Department of Energy and Environmental Protection and Department of Economic and Community Development officials to develop the regulatory framework.

The working group was led by DEEP Commissioner Katie Dykes, Deputy Commissioner Emma Cimino, Bureau of Water Protection and Land Reuse chief Graham Stevens, and legal director Brendan Schain.

The working group met more than 50 times to collaborate and create a new regulatory framework to replace the Transfer Act, the primary program for pollution cleanup in the state.

“This is a game changer for Connecticut,” Gov. Ned Lamont said.

“This new system truly is a win-win, resulting in faster environmental cleanups and unlocking countless blighted properties that will go from being community hazards to being community assets.”

‘Milestone’

DEEP Commissioner Katie Dykes said “replacing the Transfer Act with a release-based framework is one of the most significant improvements to Connecticut environmental regulation in many years.”

“This milestone is the result of thousands of hours of work by DEEP and DECD staff, environmental professionals, industry stakeholders, and legislators.

“I look forward to implementing this modern cleanup program and bring valuable properties back into productive reuse.”

The current Transfer Act has been largely ineffective, with only about 500 out of 5,000 sites successfully exiting the program.

DECD Commissioner Dan O’Keefe called the new framework “a long overdue reform that provides the predictability that businesses need, fueling new investment that will create thousands of construction jobs, generate millions in new tax revenue, and accelerate our efforts to build vibrancy in our cities and towns.”

DECD officials estimate the release-based regulations will create 2,100 new construction jobs, $3.78 billion in new GDP growth, and $115 million in additional revenue for the state over the next five years.

‘Major Win’

“We view this as a major win for economic development,” said CBIA senior public policy associate Pete Myers.

“The collaboration between the business community and government has created a program that will significantly help increase investment into our state.”

The release-based cleanup regulations eliminate the requirement for a comprehensive environmental review prior to property transfers, instead requiring property owners to report and address contamination as it occurs.

The release-based system aligns Connecticut with 48 other states, promoting consistency and reducing the stigma associated with potentially polluted properties.

The reform process drew widespread support from state agency leaders and the business community, with an unprecedented level of collaboration driving regulatory development. 

“We view this as a major win for economic development.”

CBIA’s Pete Myers

Commerce Committee co-chair Sen. Joan Hartley (D-Waterbury), a long-time legislative champion for replacing the Transfer Act, said the new regulations “will exponentially drive economic development, as well as improve environmental outcomes in Connecticut.”

“This would not have been possible but for the thousands of hours of hard work by the members of the Transfer Act working group and the leadership of DEEP and DECD,” she said.

Regulatory Review Committee co-chair Rep. Christie Carpino (R-Cromwell) said the regulatory changes “will help drive our local economies.”

“It is a safe and efficient path forward to put properties back into productive use and increase both their value as well as the communities around them,” she said.

“It’s been a long time coming and I appreciate the hard work of the industry professionals, advocates, and business community to make sure we do it right.”

Economic Impact

CBIA supports the release-based cleanup regulations as a critical modernization of the state’s environmental regulatory framework. Features include:

• Streamlined process: Provides a clear process for property owners and developers, reducing delays and confusion associated with property transactions.
• Economic benefits: Transitioning to a release-based cleanup system is projected to create over 2,100 new construction jobs and contribute $3.78 billion in new GDP growth over the next five years.
• Enhanced environmental protection: Ensures all releases, new or existing, are cleaned up to the same standard, protecting health and the environment.
• Flexibility and efficiency: Allows property owners to conduct investigations based on business decisions rather than historical records, enabling more efficient use of resources.
• Incentivizing redevelopment: Eliminates the burdensome requirements of the Transfer Act, encouraging property owners to revitalize sites and increase property values.

The Transfer Act mandated the disclosure of environmental conditions during the transfer of certain properties or businesses, requiring extensive and often unnecessary investigations, leading to delays and higher costs.

Transfer Act

The 40-year-old system has faced widespread criticism for years from developers and property brokers, who consider it an overreaching impediment that prevents deals and hampers redevelopment initiatives, especially in former industrial centers such as Waterbury and Hartford.

In earlier testimony before the legislature’s Commerce Committee, Myers noted the urgency for moving past the act.

“Unfortunately, the current Transfer Act program has proven ineffective in remediating properties, resulting in blighted downtowns across our state and stalled economic development,” he said.

Both DEEP and the business community will prepare for the program’s commencement in March 2026.

With the passage of these regulations, both DEEP and the business community will prepare for the program’s commencement in March 2026.

CBIA and allied organizations support HB 7085, which establishes a working group to continuously evaluate the new regulations and recommend improvements as they are implemented.

The legislature’s Commerce Committee unanimously approved the bill March 20 and it now awaits action in the House.

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For more information, contact CBIA’s Pete Myers (860.244.1921).