Tax rebate to fund $8.6M cleanup of former Kitchener Frame site

by Catherine Thompson, Waterloo Region Record

As reported by Catherine Thompson in the Waterloo Region Record, It’ll cost about $8.6 million to rid the soil and groundwater of contaminants at the former Kitchener, Ontario Frame site.

The huge industrial site at Homer Watson Boulevard and Bleams Road has been undergoing cleanup for the past three years. The soil and groundwater were contaminated with petroleum hydrocarbons, volatile organic compounds, metals, polychlorinated biphenyls (PCBs) and polycyclic aromatic hydrocarbons (PAHs), contaminants that are often found at former industrial sites.

The former Kitchener Frame Site (Photo Credit: Philip Walker/Record staff)

The city and the developers — Gary Ball and Marty Pathak — are keen to see the site redeveloped, said Rob Morgan, the City of Kitchener’s co-ordinator of development of former industrial sites. The site of the auto parts plant variously known as Budd Canada, ThyssenKrupp Budd Canada and Kitchener Frame, has been vacant since 2009.

Redevelopment of the sprawling 32-hectare site will give a big boost to the city’s supply of industrial land, Morgan said. About 16 hectares are slated industrial, 10 hectares are retail and 1.5 hectares are office. Another four hectares will be used for things like roads and storm water management.

“It’s much-needed land,” Morgan said. “Kitchener doesn’t have a lot of vacant industrial land left to offer.” There’s a couple of parcels, on Shirley Avenue and Strasburg Road, but not much else, he said.

The developers have applied to the city and region for grants under a program to encourage remediation of contaminated land.

The former Kitchener Frame site would be the biggest property ever to apply for the program, Morgan said.

Under the program, a developer cleans up a site and redevelops it. The new development generates far more taxes than the vacant land had. The city and region hand over the additional tax revenue to the developer for a set number of years, to repay the cost of the environmental cleanup.

The site now has an assessed value of $8 million, and generates about $108,000 in property taxes a year, split roughly 40-60 between the city and the Region of Waterloo. Once it’s cleaned up and redeveloped, it’s expected to have an assessed value of around $112 million, and generate $2.2 million in municipal property taxes.

“It’s a great program,” Morgan said. In exchange for foregoing the increased taxes for a certain number of years, the city gets vacant land cleaned up and converted to a productive use that generates more taxes and jobs.

“These lands are sitting dormant, contaminated, sometimes for many years. As a resident I’d rather see it cleaned up and earning money for the tax base.”

The Kitchener Frame site will be split into 11 different parcels from 1.3 to 10 hectares. Kitchener doesn’t expect to see the first new development on the site until about 2020, and development could continue for the next 10 or 15 years beyond that.

Morgan thinks it’s likely the property will be developed well before then, though. “They’ve got a lot of interest in that property. It’s a great location, because of its proximity to the 401; you’ve got a lot of variety in the lots; Kitchener has a strong manufacturing base, and we’ve got a lot of skilled workers.”

City staff are recommending that Kitchener council approve the application, which must also be approved by regional council, likely in June.

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About the Author

Catherine Thompson covers Kitchener City Hall for the Waterloo Region Record.

MOECC Releases Notice of Updated Excess Soil Management Proposal

The Ontario Ministry of Environment and Climate Change (MOECC) recently posted notice on the Environmental Bill of Rights Environmental Registry of the regulatory changes to the management of excess soil (Excess Soil Management Regulatory Proposal, ERO# 013-2774). Excess soil is soil that has been dug up, such as during excavation activities, and cannot be reused at its original site and must be moved off site.  There is much controversy in the Province of Ontario and other provinces concerning the management of excess soil as there are claims and growing evidence that some companies mix clean soil with contaminated soil, some companies dispose of contaminated soil as clean soil, and other questionable practices.

The MOECC proposal clarifies where soils can be reused based on the soil characterization and aims to reduce greenhouse gasses from the transportation of soil by encouraging local reuse. The proposal also clarifies that the project leader is responsible for the management and relocation of the excess soil generated during a project to ensure proper characterization and relocation. Minor amendments to O.Reg. 153/04 and to O. Reg. 347 are also proposed.

The current proposal incorporates responses and comments from the previous proposal as well as from engagement with stakeholders and Indigenous communities. Changes from the previous proposal include:

  • A revised approach to waste designation
  • Reduced regulatory complexity and some details moved to guidance
  • A two to three years transition time for key regulations
  • Several O. Reg. 153/04 amendments to come into effect sooner
  • More flexibility for reuse through new reuse standards and a Beneficial Reuse Assessment Tool to develop site specific standards

This proposal is part of the MOECC’s response to the commitments outlined in Ontario’s Excess Soil Management Policy Framework. Other actions of the framework include developing priority education, outreach and training initiatives to support implementation.

The specific regulations and proposals provided for comments are summarized below:

  • A new proposed On-Site and Excess Soil Management Regulation
    • Excess soil would be designated as waste when it leaves the project area unless it is reused in accordance with the rules set out in this regulation.
    • If designated waste, the regulation would clarify when an ECA is not required.
    • Hauling of excess soil would generally not need an ECA, but is still subject to certain rules, such as maintaining records.
    • Project leaders may use temporary soil storage sites without an ECA as long as certain conditions are met.
    • Unless exempted, a project leader is responsible for preparing an Excess Soil Management Plan (ESMP), which involves determining contaminant concentrations on the soil, finding appropriate receiving sites, develop a tracking system and record keeping requirements.
    • Key information from the ESMP would be registered on a public registry. A qualified person (QP) would need to prepare or supervise the ESMP.
    • The regulation would be phased in over two to three years.
  • Amendments to O. Reg. 153/04
    • Align the requirements for soil being taken to Record of Site Condition (RSC) or phase two properties with the new rules for excess soil proposed in the On-Site and Excess Soil Management Regulation.
    • Resolve delineation challenges experienced at properties going through the Risk Assessment process.
    • Remove Record of Site Condition triggers for low risk projects.
    • Provide flexibility for meeting contamination standards where exceedances are cause by substances used for ice and snow safety, discharges of treated drinking water, and presence of fill that matches local background levels.
  • Amendments to O. Reg. 347
    • Clarify that excess soil is no longer part of the definition of “inert fill.”
    • Clarify operational requirements to support exemptions from ECA requirements for excess soil related activities.
  • Proposal of Rules for On-site and Excess Soil Management
    • A proposed document to be adopted by reference in the On-Site and Excess Soil Management Regulation
    • Specifies ESMP contents, including an assessment of past uses, sampling and analysis plan, excess soil characterization, requirements for excess soil tracking systems, a destination assessment and identification, and declarations required of the project leader and qualified person, and applicable soil quality standards and related rules.
  • The proposed “Beneficial Reuse Assessment Tool” (BRAT)
    • An alternative rules that aim to promote greater reuse of excess soil and the protection of human health and the environment
    • Allows a QP to generate site specific standards using a spreadsheet model

Comments can be made on the proposal up to June 15, 2018 on the Environmental Registry of Ontario proposal site or by mail.

Pulp Mill in British Columbia fined $900K for releasing deleterious effluent

The Mackenzie Pulp Mill Corporation recently pleaded guilty, in the Provincial Court of British Columbia, to depositing a deleterious substance into water frequented by fish, in violation of the pollution-prevention provisions of the Fisheries Act.  The company was ordered to pay a penalty of $900,000, which will be directed to the federal Environmental Damages Fund.  This funding is to be used for the conservation of fish or fish habitat in the Omineca region of British Columbia. The company was also ordered to complete an independent audit of its operations to prevent future incidents of this kind.

The offence relates to incidents in July 2014 and September 2016, when effluent discharging from the Mackenzie Pulp Mill was found to be deleterious to fish. Environment and Climate Change Canada enforcement officers investigated the incidents, and their investigation revealed that the mill’s treatment system had not properly treated the effluent before discharging it, due in part to improper management of the wastewater entering the treatment system. The effluent was deposited into Williston Lake, which is frequented by fish.

As a result of this conviction, the company’s name will be added to the Environmental Offenders Registry.  The Environmental Offenders Registry contains information on convictions of corporations registered for offences committed under certain federal environmental laws.

Environmental Fine of $100,000 for Gas Bar Owner in Big River, Saskatchewan

Big River First Nation was recently sentenced to pay a fine of $100,000 in the Provincial Court of Saskatchewan for failing to comply with an environmental protection compliance order concerning the Miami Gas Bar, a company owned and operated by the Big River First Nation. An environmental protection compliance order is an order under the Canadian Environmental Protection Act, 1999, which directs various measures be taken to stop or prevent a violation of the Act or its regulations.

The conviction stems a 2014 inspection by Officers from Environment Canada and Climate Change (ECCC) to verify compliance with the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations under the Canadian Environmental Protection Act, 1999.  As a result of the investigation, the ECCC Officers issued an environmental protection compliance order. Charges were subsequently laid when the compliance order was not followed.  In court, Big River First Nation pleaded guilty to failing to comply with measures identified in the order.

The Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations aim to reduce the risk of spills and leaks of petroleum products from storage tank systems, which can contaminate soil and groundwater. The Regulations apply to storage tank systems operated by a federal department, board, agency, or Crown corporation; storage tank systems providing services to federal works or undertakings that are a port authority, airport, or railway; and storage tank systems located on federal or Aboriginal lands.

U.S. EPA Hazardous Waste Enforcement in Wisconsin

The United States Environmental Protection Agency (“U.S. EPA”) and Kerry Biofunctional Ingredients, Inc. d/b/a Kerry Bio Sciences (“Kerry”) recently entered a Consent Agreement (“CA”) addressing alleged violations of Subtitle C of the Resource Conservation and Recovery Act (“RCRA”) and its regulations implementing requirements for the management of hazardous waste. See Docket Number : RCRA-02-2017-7108.

Kerry is a subsidiary of Kerry, Inc. whose North American Headquarters is situated in Beloit, Wisconsin.

The CA provides that Kerry operates a facility in Norwich, New York (“Facility”) that has been a generator of hazardous waste.

As a result of the July 2016 inspection and Kerry’s response to the Request for Information, the Facility is alleged to have failed to:

  1. Make hazardous wastes determinations for certain waste-streams found at the Facility
  2. Keep a complete copy of each hazardous waste manifest for at least three years
  3. Meet the conditions necessary to accumulate hazardous waste without having obtained a permit or qualifying for interim status

Such alleged failures are stated to be violations of the RCRA regulations.

The CA assesses a civil penalty of $20,000.

A copy of the CA can be downloaded here.

Kerry Headquarters, Ireland

U.S. Ninth Circuit Rules Military Contractor Liable on CERCLA Clean-up Costs

Written by: By Whitney Jones Roy and Whitney HodgesSheppard Mullin Richter & Hampton LLP

TDY Holdings, LLC brought suit for contribution under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) against the U.S. government relating to environmental contamination at TDY’s manufacturing plant. The district court granted judgment in favor of the government after a 12-day bench trial and allocated 100 percent of past and future CERCLA costs to TDY. On appeal, the Ninth Circuit held that the district court sharply deviated from the two most “on point” decisions regarding allocation of cleanup costs between military contractors and the U.S. government when it determined the cases were not comparable, clarified the applicability of those cases, and remanded the case to reconsider the appropriate allocation of cleanup costs between TDY and the U.S. government.

TDY (formerly known as Ryan Aeronautical Company) owned and operated a manufacturing plant near the San Diego airport

From 1939 through 1999, TDY (formerly known as Ryan Aeronautical Company) owned and operated a manufacturing plant near the San Diego airport. TDY’s primary customer was the U.S. government—99 percent of TDY’s work at the plant between 1942 and 1945, and 90 percent of the work thereafter was done pursuant to contracts with the U.S. military. The United States also owned certain equipment at the site from 1939 to 1979. Id. at 1006. Chromium compounds, chlorinated solvents, and polychlorinated biphenyls (PCBs) were released at the site as a result of their use during manufacturing operations. Id. In some cases, the government’s contracts required the use of chromium compounds and chlorinated solvents. Id. After passage of the Clean Water Act and other environmental laws classifying these chemicals as hazardous substances in the 1970s, TDY began environmental remediation and compliance at the site and billed the government for the “indirect costs” of that work, which the government paid. Id. at 1006–07. TDY incurred over $11 million in response costs at the site. Id. at 1007. Until the plant’s closure in 1999, the government reimbursed 90 to 100 percent of TDY’s cleanup costs at the site. Id. at 1007, 1010.

In 2004, the San Diego Unified Port District brought CERCLA claims against TDY. TDY and the Port District entered into a settlement agreement in March 2007 in which TDY agreed to cleanup releases at the site. TDY then brought suit for contribution under 42 U.S.C. § 9613(f)(1) and declaratory relief against the United States. Id. at 1007. The district court granted TDY’s motion for partial summary judgment declaring that the United States was liable as a past owner of the site under CERCLA. Id. After a 12-day bench trial on equitable allocation of costs, the district court held that the contamination caused by the hazardous substances at issue was attributable to TDY’s storage, maintenance, and repair practices, as well as spills and drips that occurred in the manufacturing process, rather than to the government’s directives to use the chemicals. Id. Accordingly, the district court allocated 100 percent of the past and future response costs for remediation of the three hazardous substances to TDY. Id. at 1008.

On appeal, TDY argued that the district court erred (1) when it allocated liability according to “fault”; (2) that the government’s role as owner rather than operator should not have been a dispositive factor in the court’s allocation, and (3) that the government should bear a greater share of response costs because it specifically required use of the chemicals at the site. Id. The court of appeals summarily rejected TDY’s first two arguments, but found that the district court did err in its analysis and application of binding authority on point: United States v. Shell Oil Co., 294 F.3d 1045 (9th Cir. 2002) and Cadillac Fairview/California, Inc. v. Dow Chem. Co., 299 F.3d 1019 (9th Cir. 2002). Id. at 1008–09. Shell Oil and Dow Chemical each produced products to support the U.S. military during World War II and incurred liability for contamination caused by hazardous chemicals that the government required to be used. In both cases, the Ninth Circuit affirmed the district courts’ allocation of 100 percent of cleanup costs to the government because “the contractors’ costs were ‘properly seen as part of the war effort for which the American public as a whole should pay.’” Id. at 1009.

The Ninth Circuit disagreed with the district court’s conclusion that Shell Oil and Cadillac Fairview were not comparable, but agreed that some deviation from their allocations were appropriate. Id. The Ninth Circuit agreed that the government exercised less control over TDY than it did over Shell Oil Co. or Dow Chemical. In support of this determination, the court noted that the government was an operator, rather than an owner, of TDY’s site, that the government-owned equipment was removed from the site 20 years before TDY ceased operations, and that TDY’s own practices at the site caused the contamination. Id. at 1010. Furthermore, the district court properly determined that “industrial operations undertaken for the purpose of national defense, standing alone, did not justify allocating all costs to the government.” Id.

However, the Ninth Circuit held that, in allocating 100 percent of cleanup costs to TDY, the district court failed to consider that the government required TDY to use two of the three chemicals at issue beginning in the 1940s, when the need to take precautions against environmental contamination from these substances was not known. Id. Furthermore, the Ninth Circuit determined that “[t]he court’s acknowledgement of the evolving understanding of environmental contamination caused by these chemicals, and TDY’s prompt adoption of practices to reduce the release of hazardous chemicals into the environment once the hazards became known, further undercuts the decision to allocate 100 percent of the costs to TDY.” Id. The district court also failed to consider the parties’ lengthy course of dealing through 1999, when the government paid between 90 and 100 percent of cleanup costs at the plant. Id. Although “a customer’s willingness to pay disposal costs . . . cannot be equated with a willingness to foot the bill for a company’s unlawful discharge of oil or other pollutants,” the Ninth Circuit nevertheless determined it should have been a relevant factor in the allocation analysis. Id.

This article was originally published on the Sheppard Mullin Real Estate, Land Use & Environment Law Blog

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About the Authors

Whitney Jones Roy is a litigation partner in firm’s Los Angeles office. Ms. Roy was recognized by Law360 as a “Female Powerbroker” and by the Daily Journal as one of the Top 100 Women Lawyers in California in 2014.  Ms. Roy has experience in all aspects of California and federal civil procedure through trial. She also defends her clients on appeal when necessary.  Ms. Roy also specializes in complex environmental litigation and related products liability litigation. Her expertise includes the Clean Air Act, CERCLA, RCRA, design defect, failure to warn, negligence, nuisance, and trespass.

Whitney Hodges is an associate in the Real Estate, Land Use and Natural Resources Practice Group in the firm’s San Diego office. She also serves on the firm’s Diversity and Inclusion Committee, Pro Bono Committee, Recruiting Committee, Energy, Infrastructure and Project Finance Team and Latin Business Team.  Ms. Hodges specializes in the representation of clients involved in real estate development. Her practice focuses on advising and representing major residential, industrial, commercial and mixed-use development projects, as well as Native American Indian tribes and renewable energy developers through all phases of the land use regulatory process and environmental compliance.

 

 

Activated Carbon-Based Technology for In Situ Subsurface Remediation

The U.S. EPA Office of Superfund Remediation and Technology Innovation recently published a fact sheet about an emerging remedial technology that applies a combination of activated carbon (AC) and chemical and/or biological amendments for in situ remediation of soil and groundwater contaminated by organic contaminants, primarily petroleum hydrocarbons and chlorinated solvents.  The technology typically is designed to carry out two contaminant removal processes: adsorption by AC and destruction by chemical and/or biological amendments.

With the development of several commercially available AC-based products, this remedial technology has been applied with increasing frequency at contaminated sites across the country, including numerous leaking underground storage tank (LUST) and dry cleaner sites (Simon 2015).  It also has been recently applied at several Superfund sites, and federal facility sites that are not on the National Priorities List.

The fact sheet provides information to practitioners and regulators for a better understanding of the science and current practice of AC-based remedial technologies for in situ applications. The uncertainties associated with the applications and performance of the technology also are discussed.

AC-based technology applies a composite or mixture of AC and chemical and/or biological amendments that commonly are used in a range of in situ treatment technologies.  Presently, five commercial AC-based products have been applied for in situ subsurface remediation in the U.S.: BOS-100® & 200® (RPI), COGAC® (Remington Technologies), and PlumeStop® (Regenesis) are the four most commonly used commercial products.  CAT-100® from RPI is the most recent product, developed based on BOS-100®.  One research group in Germany also developed a product called Carbo-Iron®.  The AC components of these products typically are acquired from specialized AC manufacturers.  These types of AC have desired adsorption properties for chlorinated solvents and petroleum hydrocarbons.  Different products also have different AC particle sizes, which determine the suitable injection approach and the applicable range of geological settings.

Example of powdered activated carbon “fracked” into the subsurface under high-pressure, causing preferential pathways into existing monitoring wells (Photo Credit: Regenesis)

 

In Situ Treatment Performance Monitoring: Issues and Best Practices

The U.S. EPA recently released an issue paper (EPA 542-F-18-002) that describes how in situ treatment technologies may impact sampling and analysis results.  The paper discusses the best practices to identify and mitigate issues that may affect sampling and analysis.

The utility of monitoring wells for performance or attainment monitoring is based on the premise that contaminant concentrations measured in the wells are representative of aquifer conditions. However, during in situ treatment, various biogeochemical and hydrogeological processes and sampling and analysis procedures may affect the representativeness of the monitoring well and sample quality, which may not be adequately considered in current remediation practice.

A properly designed monitoring network that anticipates the distribution of amendments after injection would minimize impacts to monitoring wells.  However, predicting amendment distribution prior to injection is challenging such that impacts to monitoring wells are likely.

The purpose of The U.S. EPA issue paper is to:
• describe how in situ treatment technologies may impact sampling and analysis results used to monitor treatment performance; and
• provide best practices to identify and mitigate issues that may affect sampling or analysis.

The U.S. EPA issue  paper discusses eight potential sampling or analytical issues associated with groundwater monitoring at sites where in situ treatment technologies are applied. These issues are grouped under three topic areas:
• Issues related to monitoring wells (Section 2).
• Representativeness of monitoring wells (Section 3).
• Post-sampling artifacts (Section 4).

The paper presents issues that pertain to collecting water samples directly from a monitoring well and does not discuss the use of other sampling techniques, such as passive diffusion bags or direct push groundwater sampling.

Stantec acquires Quebec-based Cegertec

Stantec, a Canadian-headquartered international engineering and consultancy group, recently acquired acquired the Quebec-based consultancy Cegertec for an undisclosed amount. It comes within weeks of Stantec announcing the acquisitions of Calgary-based mining consultancy Norwest and UK specialist hydrogeological consultancy ESI.

Chicoutimi, Quebec

 

This latest target is a 250-person company providing engineering services to industrial, aluminium, mining, power and government clients across Canada and the United States. The firm operates from its headquarters in Chicoutimi but also boasts offices in Quebec City and Montreal with another due to open at St Georges in coming months.

 

In a press release, Stantec’s senior vice president for Quebec Isabelle Jodoin stated: “The acquisition of Cegertec is a sign of our continuing commitment to grow our expertise and diversify our operations in the Quebec market.  Our clients will now have access to a larger, comprehensive pool of resources, and a wide array of expertise and services under one banner, thanks to a combined team of 1,500 employees in Quebec.”

The acquisition is expected to close on the 25 May 2018.

Cegertec had previously explored partnership opportunities with other consultancies with its Saguenéenne engineering unit tied to WorleyParsons in a joint venture formed in 2012 to target mining, metals and oil and gas sectors. However, Cegertec bought out WorleyParsons’ stake in the JV last year returning decision making to its own management board.

Canadian National Brownfield Summit – June 13th 2018

Learning from the Past; Charting the Future
Attend Canada’s First Brownfield Summit, hosted by CBN

CBN is pleased to host the first-ever Brownfield Summit as this year’s edition of our annual conference. Join us in
Toronto June 13. The summit will feature:

  • Our popular Cross-country Check-up: a session on recent regulatory changes and an opportunity to learn about new initiatives from our panel of regulators
  • Legal Update: case law shapes our practice as brownfielders. This session will feature presentations on the most recent court cases affecting brownfields
  • Emerging Technology: focused presentations on the technological trends that will affect your brownfield practice today and in the future
  • NRTEE +15: the cornerstone of the Summit. Revisit the 2003 National Round Table on the Environment and the Economy (NRTEE) report as we find out what has worked, what still needs to be done, and what challenges are emerging. Then, join us in a discussion and determination of the brownfield agenda for the next few years

This will be a working event, so be prepared – bring the knowledge you’ve gained as a brownfield practitioner and your insights into brownfield redevelopment/reuse, roll up your sleeves and set the stage for the future of brownfields in Canada!

Register Today!