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Pennsylvania Legislature Enacts Uniform Environmental Covenants Act
Date: 02/16/2008

Pennsylvania Legislature Enacts Uniform Environmental Covenants Act

On December 18, 2007, the Commonwealth of Pennsylvania enacted the Uniform Environmental Covenants Act (UECA), a law which imposes significant new procedural requirements for properties where environmental cleanups have occurred. Specifically, UECA affects sites that have been remediated to an Act 2 standard under Pennsylvania's Land Recycling Program or the Storage Tank Act (Act 32).
The basic requirements of UECA, which takes effect February 16, 2008, apply to "Environmental Covenants" associated with a property. Environmental covenants are defined as limitations on access and/or use of a property due to engineering or institutional controls applied during an environmental remediation project to maintain a specific cleanup standard for the foreseeable future. Examples of covenants include access restrictions, such as engineered caps and fences, or deed notices which have been used at many of Pennsylvania's voluntary cleanups using the Site Specific and Statewide Health Standards under Act 2. Soil Management Plans and Post-Remedial Care Plans will also fall under this statute.
The most significant changes associated with UECA relate to new recording requirements for applicable properties. The Pennsylvania Department of Environmental Protection (PADEP) must now review and approve all environmental covenants before they are recorded with the county. In addition, the PADEP is also charged with creating a registry of all environmental covenants in the state. How will these changes affect new and existing environmental covenants?
UECA's affect on new environmental covenants at cleanup sites may occur in several ways. First, the PADEP will have 90 days to review and act upon a proposed environmental covenant. If they fail to approve or deny the proposed covenant in that timeframe, the proposed covenant is deemed approved. Second, any new remedial project under Act 2 or the Storage Tank Act, which uses engineering or institutional controls under the Site Specific Standard or Statewide Health Standard, will first need a PADEP-approved covenant. The necessity of this PADEP-approved covenant may add additional time to the overall Act 2 approval timeframe. Thirdly, Pennsylvania's Environmental Quality Board will develop regulations to administer UECA, which may take more than a year to accomplish. In the meantime, it is unclear how the PADEP will interpret and administer the UECA requirements during the interim.
UECA's affect on existing environmental covenants at cleanup sites will require that all existing environmental land use or access restrictions be converted to PADEP-approved covenants in accordance with this Act. Therefore, all existing deed notices, deed restrictions or other covenants already implemented on properties will need to be readdressed with regard to the new recording requirements. This conversion will need to be completed by December 18, 2012 (five years after the passage of the Act).
In conclusion, properties that are pursuing cleanup liability releases in the near future, using engineering or institutional controls, will need to coordinate with the PADEP regarding the need for their approval of any environmental covenants. Existing sites will eventually need to readdress and convert their current environmental covenants to PADEP-approved covenants. Because UECA becomes effective in Pennsylvania this month, without the benefit of regulations to guide its implementation, it is unclear how the PADEP will interpret and administer the UECA requirements in the interim period before regulations are finalized.
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