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Ontario Environmental Protection Act and Regulatory Changes: More Brownfields Open for Business

Written by F.F. (Rick) Coburn and Barbora Grochalova, Borden Ladner Gervais LLP (“BLG“)

On May 2, 2019, the Government of Ontario introduced Bill 108, the More Homes, More Choice Act, 2019. Bill 108 makes several amendments to the Environmental Protection Act (EPA), such as enhancing the enforcement powers available to the Ministry of the Environment, Conservation and Parks (the Ministry), and broadening the scope of use of administrative monetary penalties.

The Ministry has also proposed amendments to the Records of Site Condition Regulation (O. Reg.153/04, Brownfields Regulation), with the stated purpose of enhancing the economic viability of brownfield projects by reducing delays, enhancing clarity, and providing certainty for redevelopment. The proposed regulatory amendments are provided on the Environmental Registry.

Brownfields and Redevelopment

Brownfields are properties that have become contaminated as a result of prior industrial or commercial use. Brownfield properties are often left vacant or underutilized, and may be located in areas where redevelopment would otherwise be desirable.

The Brownfields Regulation governs the process of redevelopment of contaminated properties and converting them into more sensitive types of use. Part XV.1 of the EPA only allows the change of use of a property from those that are potential sources of contamination to the types of use that are more sensitive (e.g., residential, agricultural, community, or institutional use) upon first completing and filing a Record of Site Condition (RSC). An RSC summarizes the environmental condition of the RSC property, describes any contaminants that are found to exceed the applicable standard, and reports any remediation measures that were done, including the removal of contaminated soil from the RSC property.

Proposed Exemptions to the Requirement to File a Record of Site Condition

The proposed regulatory amendments exempt certain redevelopment from the requirement to file an RSC.

  • Low-rise buildings changing from commercial or community use to a mixed use adding either residential and institutional use would be exempt, as long as the residential and institutional use is limited to floors above the ground floor. This exemption would only apply to properties that have never been in industrial use, or as a garage, a bulk liquid dispensing facility, a gas station or a dry cleaning operation, and if the building envelope will not be changed during the redevelopment.
  • Properties which are not otherwise included in the exemption described above may be exempt in situations where a part of a building is already in residential or institutional use and another part is used for commercial or community use, and the property is converted for a more sensitive use. This exemption would similarly be applicable only to properties that have never been in industrial use, or as a garage, a bulk liquid dispensing facility, a gas station or a dry cleaning operation, and the building envelope will not be changed during the redevelopment.
  • The definition of community use is proposed to be amended by removing from the definition temporary roads that are required only during the early phases of construction. The effect of this change is that an RSC would not be required once the temporary roads are converted to residential use when the buildout is completed.  
  • The conversion of indoor places of worship to residential use is also proposed to be exempt from the requirement to file an RSC.
  • Indoor cultivation of crops using hydroponics or other cultivation methods that do not rely on soil from the property is proposed to be defined as industrial use, as opposed to the more sensitive agricultural use, if the building was previously in industrial, commercial, or community use.

Additional Situations Deemed not to Exceed the Standard

The brownfields regime requires that if the RSC property is contaminated, the concentrations of each contaminant must be sampled and evaluated against the generic site condition standard. If certain contaminants exceed the applicable standard, the owner of the RSC property must either undertake further remediation, or prepare a risk assessment that provides a site-specific plan to address the risk posed by the exposure to those substances.

The Brownfields Regulation already included a provision by which exceedances resulting from the application of road salt or other de-icing substances were deemed to be within the standard. The deeming provision was previously restricted only to road salt use on a highway by the Ministry of Transportation and road authorities, but that restriction would be removed by the proposed amendments. Three new situations are proposed to be added where exceedances on any property are deemed to meet the standard:

  • Exceedances resulting from a discharge of treated drinking water;
  • Exceedances in fill material where a contaminant exceeds the applicable standard but does not exceed the naturally occurring concentration typically found in the area; and
  • Exceedances that arise from the deposit of excess soil onto the subject property, if the concentrations are in accordance with the standards established as part of the proposed On-Site and Excess Soil Management Regulation. (This proposed regulation would establish a comprehensive excess soil management regime, and will be discussed in more detail in a future update.)

Reduced Requirement to Delineate Contaminants

The Brownfields Regulation prescribes the requirements for phase one and phase two environmental site assessments. One of the elements required of a phase two study has previously been the full delineation, vertically and laterally, of contaminants which exceed the applicable site condition standards.

The proposed amendments introduce a “non-standard delineation”, which would not require the delineation of the full extent of a contaminant on the phase two property in situations where a risk assessment for that property has been accepted by the Ministry. The phase two study must instead show that appropriate steps have been taken to locate the maximum concentration of each contaminant found on the property, and that any additional efforts to delineate the contaminant are unlikely to contribute significant or meaningful information.

The proposed amendments to the Brownfields Regulation also introduce other technical changes to how phase one, phase two, risk assessment and other environmental studies are to be completed.

While the Brownfields Regulation are not part of Bill 108, these proposed amendments are an important piece in the larger landscape of changing environmental and land-use laws in Ontario. The majority of the amendments are proposed to come into force on the day the regulation will be filed. The proposed regulatory amendments are provided on the Ontario Environmental Registry.


About the Authors

Rick Coburn is a partner in the Toronto office of Borden Ladner Gervais LLP. Rick practises in the area of environmental law with an emphasis on environmental aspects of major development initiatives and transactions involving heavy industry, transportation, energy and infrastructure projects. With members of BLG’s litigation practice groups, he also acts as defence counsel on regulatory prosecutions and in civil actions.

Barbora Grochalova

Barbora Grochalova is an associate in the Environmental, Municipal, Expropriation and Regulatory Group in our Toronto office. Barbora is member of the Canadian and Ontario Bar Associations and acted as Counsel for the Canadian Environmental Law Association prior to joining BLG. She has had exposure to many different areas of law, with a focus on environmental, administrative, and regulatory matters before the Ontario Municipal Board (OMB) and the Environmental Review Tribunal (ERT).

Montreal’s $75 million grant program for brownfield redevelopment

The City of Montreal has $75 million available in grants it will be giving away to encourage redevelopment of brownfield sites in the City. The funding was made available from the Quebec government last year.

Map of the City of Montreal outlining the Island of Montreal

The Funds will be available for eligible developers that decontaminated brownfields within the city and redevelop them. The money is to be spent between now and 2022.

Quebec Environment Minister Chantal Rouleau with Montreal Mayor Valerie Plante

Montreal Mayor Valerie Plante said a portion of the fund will also go toward decontaminating buildings. “It’s huge because I hate to say it but the entire island of Montreal is contaminated except for the existing greenlands of course. So every time we want to attract businesses, big investments, and they want to build something somewhere, and even for housing or anything; schools, parks, everything, we need to go through the decontamination phase,” said Ms. Plante.

The grants will cover 15 to 70 percent of costs for eligible projects. The remainder of the clean-up costs would need to come from the other parties involved.

Companies or developers will present their projects to the city and Montreal will grant an amount based on the type of project presented and its environmental-friendliness.

Windsor provides $10.5 million in incentives to develop brownfield site

Farhi Holdings Corporation has been approved for almost $10.5 million in financial incentives from the City of Windsor as part of the Brownfield Redevelopment Community Improvement Plan.

The developer has owned a 24.5 hectare (60 acre) piece of vacant land next to the WFCU Centre, Windsors sports and entertainment complex, since 2005. It had been zoned industrial and had been the home of a GM trim plant and other industrial operations.

Farhi is working toward developing the site as office/retail/commercial space that will include 119 detached residential lots, four townhouse blocks, five multiple dwellings buildings, and a hotel. Approximately 3.1 hectares will remain for commercial development. The redevelopment is estimated to cost $59 million. The company is anticipating that work at the site will begin in the Fall.

The 24.5 hectare property represents approximately 11 percent of the City of Windsor’s brownfield inventory. It’s location next to the WCFU Centre makes it an ideal redevelopment opportunity.

The Windsor Brownfield Redevelopment Community Improvement Plan is designed to encourage the development of brownfields by offering incentives for development. In case of the Farhi Holdings property, the
$10.5 million in incentives from the City of Windsor will be in the form of tax breaks over a 13 year time period.

Farhi Holdings had a consultant conducted an environmental site assessment and estimate the cost of remediation. The environmental report estimates that 31,215 cubic metres of contaminated soil will need to be removed and replaced with clean fill. The total estimated cost for remediation and demolition work at the property is $6.4 million.

One section of the property (the area for the proposed hotel) has already been remediated and is not part of brownfield redevelopment incentive agreement. The hotel, once built, would generated between $380,000 to $450,000 in annual property tax revenue to the City.

A search of the Record of Site Condition (RSC) registry shows that one has not yet been filed for the property – 1600 Lauzon Road. Typically, an RSC is required prior a property zoning being changed. An RSC is a record of the site conditions and includes information on any remedial activity and the level of contamination at a site.

Farhi Holdings Corporation is a real estate and development company based in London, Ontario. The company was founded in 1988.

Nature based solutions for contaminated land remediation and brownfield redevelopment in cities: A review

A collaboration of researchers from various Universities from around the world recently published a research paper in Science of the Total Environment that reviews nature based solutions for contaminated land remediation. The paper contends that Nature-based solutions (NBS) including phytoremediation and conversion of brownfield sites to public greenspaces, holds much promise in maximizing a sustainable urban renaissance.

The researchers claim that urban industrialization has caused severe land contamination at hundreds of thousands of sites in cities all around the world, posing a serious health risk to millions of people. The also state that many contaminated brownfield sites are being left abandoned due to the high cost of remediation.

Traditional physical and chemical remediation technologies also require high energy and resource input, and can result in loss of land functionality and cause secondary pollution.

NBS is an umbrella concept that can be used to capture nature based, cost effective and eco-friendly treatment technologies, as well as redevelopment strategies that are socially inclusive, economically viable, and with good public acceptance. The NBS concept is novel and in urgent need of new research to better understand the pros and cons, and to enhance its practicality.

The review article summarizes NBS’s main features, key technology choices, case studies, limitations, and future trends for urban contaminated land remediation and brownfield redevelopment.

Brownfield Redevelopment in New York City and Community Air Monitoring – What you need to know

Written by Paul R. Pickering, Aeroqual Ltd.

Brownfield cleanup in New York City

As New York City’s need for space grows, existing stock of land must be used more effectively. Brownfield cleanup and redevelopment represents one of the best opportunities to engage communities and reclaim land for development in many cities. In 2018, the Mayor’s Office of Environmental Remediation (MOER) announced 1000×21, the most aggressive land cleanup and revitalization goal of any city in the world. This OneNYCinitiative seeks to remediate and redevelop 1,000 lots in NYC by the end of the de Blasio administration in 2021.

A vacant lot in Mott Haven, NY before remediation. Photo: OneNYC

Remediation air quality challenges

Any time a remediation or construction project involves earth-moving, it has the potential to release particulate (dust) and volatile organic compounds (VOCs) contaminants that exist below the surface. VOCs will readily transition to the gaseous, breathable phase, when exposed to air. Particulate emissions must be controlled to prevent impacts to the respiratory system. Negative impacts range from mild lung irritation to chronic lung disease. 

Regulations to protect community

To protect workers and the surrounding community, construction and demolition projects that involve excavation need to follow a stringent Community Air Monitoring Plan(CAMP), as specified by the New York State Department of Health (NYSDOH). If the excavation activities are occurring on a remediation or cleanup site, additional requirements are outlined in a guidance document known as DER-10. NYSDOH and DER-10 specifically apply to sites in New York. However, agencies and authorities in other states may also recognize these guidelines. They have been known to apply or refer to them for projects in their designated territories.

What is DER-10?

In 2010, the New York State Department of Environmental Conservation (NYSDEC) issued Division of Environmental Remediation (DER)-10 Technical Guidance for Site Investigation and Remediation, known as DER-10. This is the source document the NYSDEC refer to for authority to oversee remediation projects. It was designed to help parties and consultants (environmental and engineering) in developing and implementing investigation and remediation projects at contaminated sites.

DER-10 extensively (over 225 pages) describes the A to Z requirements for remedial site investigations, cleanups, post-cleanup monitoring and site closure. It presents detailed technical guidance for each of the investigative and remedial steps undertaken at contaminated sites. DER-10 covers procedures for assessing the environmental conditions at the site, including air monitoring during remediation activities.

What is CAMP?

Appendix 1A of the DER-10 outlines requirements for the implementation of a CAMP. This air monitoring plan is prescribed by NYSDOH. It involves direct-reading air monitoring instruments placed at defined locations around the perimeter of a remediation, construction or demolition site.

A CAMP requires real-time air monitoring for total VOCs (also referred to as total organic vapors) and PM10 (particulate matter 10 micrometers or less in diameter) at downwind and upwind locations relative to each designated work area when certain activities are in progress at contaminated sites. The CAMP is not intended for use in establishing action levels for worker respiratory protection. Rather, it is intended to protect the downwind community) from potential airborne contaminants released as a direct result of investigative and remedial work activities. The downwind community includes off-site receptors such as residences, businesses, and on-site workers not directly involved with the subject work activities. The specified CAMP action levels require increased monitoring, corrective actions to abate emissions, and/or work shutdown. Additionally, the CAMP helps to confirm that work activities did not spread contamination off-site through the air.

VOC and particulate monitoring

Basic requirements of a CAMP call for real-time air monitoring for VOCs and/or particulate levels at the perimeter of the exclusion zone, or work area. Sites known to be contaminated with heavy metals alone may only require particulate monitoring. If radiological contamination is a concern, additional monitoring requirements may be necessary in consultation with NYSDEC and NYSDOH. The table below summarizes CAMP Monitoring Action Levels for total VOC and particulate monitoring.

CAMP air monitoring equipment

Since the introduction of DER-10 in 2010, sensor-based technologies have reduced the cost of air monitoring and increased efficiency of the implementation of CAMP. Real-time air monitoring solutions are available to fit the budget and complexity requirements of every project. Below is a sampling of equipment options:

Entry Level – Basic environmental dust monitoring kit

Assembled kits, like this Basic Environmental Dust Monitoring Kit from Raeco Rents, are portable and suited to short-term or temporary CAMP. The ensemble includes an off-the-shelf dust monitor, handheld PID monitor for total VOCs, and a cloud-based telemetry system mounted in an environmental enclosure.

Ultimate Flexibility – All-in-one air quality monitor

All-in-one air quality monitors, like the AQS1 and the Dust Sentry from Aeroqual, are highly flexible and defensible, as well as good allrounders for short or long-term CAMP. In addition to the primary particulate fraction PM10, these monitors can also measure PM2.5, PM1 and Total PM. They can also be configured for monitoring total VOCs and NO2 emissions from remediation and construction sites. A robust light-scattering Nephelometer with sharp cut cyclone is integrated with a PID-based VOC analyzer module (or GSE-based NO2 gas module), Cloud telemetry platform, air quality software, and optional plug-and-play weather and noise sensors. Trigger alerts are programmable for SMS and email notifications, or can be used to activate an external VOC canister sample collection for speciated analysis according to EPA Method TO-15.

The Rolls Royce – GC-based perimeter air monitoring station

Perimeter air monitoring stations, like the AirLogics Classic 2, contain analytical, climatic, and communications instrumentation. This equipment includes: a gas chromatograph (GC) to measure specific VOCs, a respirable particulate meter to measure dust levels, shelter heaters and air conditioners, and a radio-based data acquisition system. These systems were originally developed for use in the cleanup of former manufactured gas plant (MGP) sites.

Weather monitoring

DER-10 guidelines require daily measurement of wind speed and direction, temperature, barometric pressure, and relative humidity, to establish background weather conditions. Wind direction data is used to position the air monitoring equipment in appropriate upwind and downwind locations.

The evaluation of weather conditions is also necessary for proper fugitive dust control. When extreme wind conditions make dust control ineffective, remedial actions may need to be suspended. There may be situations that require fugitive dust suppression and particulate monitoring requirements with more stringent action levels.

Additional monitoring

Under some circumstances, the contaminant concentration and/or toxicity may require additional monitoring to protect site personnel and the community. Additional integrated sampling and chemical analysis of the dust may be required. This must be evaluated when a Health and Safety Plan (HASP), is developed. Appropriate suppression and monitoring requirements are established for protection of people’s health and the environment.

Reporting

All recorded monitoring data is downloaded and field logged daily, including Action Limit Reports (if any) and daily CAMP monitoring location plans. Records are required to be maintained onsite for NYSDEC and NYSDOH to review. A description of the CAMP-related activities is also included in a monthly progress report submitted to the NYSDEC. The overall report submitted to the NYSDEC should include all CAMP monitoring records. If site works are stopped due to inability to control fugitive emissions to below the action limit, the NYSDEC is to be notified within twenty-four hours of the work stoppage.

For a real-life example of air monitoring at a remediation site please read my blog about the pilot cleanup of the Gowanus Canal, NY.

What CAMP solutions does Aeroqual offer?

Aeroqual’s Dust Sentry and AQS1 are flexible air monitoring platforms used by air quality professionals, and environmental and geotechnical consultants, for community air monitoring plans on remediation sites. We help environmental consultants deliver defensible data on projects by providing cost-effective and reliable instrumentation. For insights on the latest air monitoring trends at construction sites please read our blog about measuring NO2 and multiple PM fractions.


About the Author

Paul R. Pickering is the Business Development Director at Aeroqual Ltd., and is located in Auckland, New Zealand. Aeroqual Ltd. is a company that delivers innovative air quality and environmental monitoring solutions. He is passionate about making it easier to measure the air with advanced sensor-based technology. He believes that more relevant information about our environment can help us make better informed decisions, enjoy better quality of life, and make our planet a better home. 

City of Brantford gets loan for completed brownfield project

As reported by Susan Gamble in the Brantford Expositor, The City of Brantford, Ontario is securing a $4.6 million load to cover the expenses related to the remediation of the Sydenham Pearl Brownfield Site.

The site has already been remediated. City Councillors recently voted in favour of the $4.6 million debenture from the Ontario Infrastructure and Lands Corporation with a 20-year interest rate of 3.4 per cent. The agreement will mean the city repays the loan at a rate of $322,878 a year.

The debenture was approved, along with the project, in 2012 and the remediation at the site is complete, but the money has to be returned to the city’s capital project fund, which has been fronting the money.

Joelle Daniels, the city’s director of finance, explained to the Brantford Expositor that the city had been able to finance the costs of the project over the last six years from working capital since the cash flow was available.

“Typically we have an interim balance and that allows us to not issue the debenture until we know the final cost of the project. We wouldn’t have wanted to borrow the money up front and then carry the interest longer.”

The city has about a dozen outstanding debentures, most of them with the Ontario Infrastructure Lands Corporation but others through the Federation of Canadian Municipalities or regular lending institutions.

The Sydenham-Pearl Brownfield Site is a 6 acre property that had most recently owned by two industrial companies, namely Domtar and Crown Electric, which is surrounded by residential properties, a public playground, a vacant school property, and a rail line.

Crown Electric Manufacturing 17 Sydenham Street
Image Source: (City of Brantford Records Department)

Prior to remediation, soil testing and groundwater testing had shown high levels of industrial chemicals, including but not limited to trichloroethylene and its breakdown products, ethylbenzene and vinyl chloride. 

As is the case with many brownfields, the Sydenham-Pearl Brownfield site has its history rooted in industrial purposes.  The properties have changed hands many times over the course of several decades, and have survived many changes in environmental policies.  Policies including the disposal of hazardous waste and even what chemicals are considered to be hazardous in the first place.

The remediation took 8 weeks to complete and included: the removal of underground storage tanks; excavation and offsite disposal of petroleum hydrocarbons in soil; and in situ soil mixing to break down volatile organic compounds in soil and groundwater.

With remediation activities complete, Phase 3 soil capping and berm construction began. Installation of the soil cap was a requirement of the Ontario Environment Ministry in accordance with the Risk Assessment completed for these properties. Milestone Environmental Contracting completed soil capping and berm construction.

Work at the Sydenham Pearl Brownfield Remediation project was completed in 2017 with required certificates received from the province last spring. The city is currently finishing off sampling and monitoring of the site as required by the Ministry of Environment Conservation and Parks.

The project, which took in 17 and 22 Sydenham, involved removing more than 3,000 cubic metres of contaminated soil to a provincial landfill.

Formerly the site of Crown Electric and Domtar, which made roofing materials, the site was an eyesore, inhabited by squatters and an invitation for fires.

Large fires in 2001 and 2004 meant the city spent hundreds of thousands of dollars to level buildings and clear the area. The properties were seized for tax sales and a remediation plan was created.

Milestone Environmental Contracting spent $2.4 million of the budget on the remediation and another $2.2 million was set aside for the greening process and contingency funding.

Ontario Government’s Plans on the Environment: Impact on Brownfield Development

The Ontario Government released a Made-in-Ontario Environment Plan in late 2018 in partially in response to criticism that it had no plan for addressing climate change after it cancelled the greenhouse gas (GHG) cap-and-trade program of the previous government. The plan includes several proposals that should be on interest to persons involved in brownfield development.

The Ontario government 52-page document (entitled (“Preserving and Protecting or Environment for Future Generations: A Made-in-Ontario Environment Plan”) commits to protecting air, lakes and rivers; addressing climate change; reducing litter and waste; and conserving land and greenspace. Many of the measures establish a direction but the details will have to be further developed.

With respect to contaminated sites and brownfields, the document talks about the “polluter pay”, and engaging environment business and entrepreneurs. However, it is lacking in details.

Generating GHG from Brownfield Projects

The Ontario government’s proposed replaced to the scraped GHG trading regulation is the Creating the Ontario Carbon Fund. While details are to be worked out, the plan proposes to use $400M of government funding with the aim of leveraging additional private funds on a 4:1 basis to support “investment in clean technologies that are commercially viable.” The fund will also support a “reverse auction” model whereby emitters will “bid” for funding to support their GHG reduction projects.

There is a possibility that developers involved in brownfield redevelopment could be eligible for government funding depending on if clean technologies are employed in the clean-up and GHG reductions are realized versus the traditional dig-and-dump approach to site clean-up.

2010 Photo of the former Kitchener Frame Building (Photo Credit: Philip Walker/Record staff)

Streamlined environmental approvals

The Made-in-Ontario Plan notes that environmental approvals should be prioritized for businesses that want to implement low GHG technology or approaches. This is the latest promise from the Ontario government to speed up the approval process.

Seasoned veterans in the environmental sector remember similar promises made the government on fast-tracked approvals. There are still those who remember the Environmental Leaders Program in which speedy approval was promised to companies that committed to above-compliance environmental activities and targets.

With respect to this latest promise on speedy approvals, the document is silent on if “speed” will be applied to the Environment Ministry review of site specific risk assessments (SSRA’s) that are submitted to the Ontario Environment Ministry for approval instead of following the generic clean-up standards.

Measures to promote healthy, clean soils

The Made-in-Ontario Plan plan commits to “revise the brownfield regulation and record of site condition guide” as part of a basket of measures to promote clean soils. Again, the document is lacking in details.

The previous Ontario government had proposed reasonable changes to the Record of Site Condition Regulations (O. Reg. 153/04). One important aspect of the proposed change is related to road-salt impacts on a property. As the regulations currently stands, road salt-related impacts can only be exempted from clean-up if it can be proven they are related to the application of de-icing salts on a public highway. Under the proposed changes to the regulations, the exemption will include road salt applied to a property ‘for the purpose of traffic and pedestrian safety under conditions of snow/ice’. This one change, if implemented, would save thousands of dollars in clean-up costs at many sites undergoing redevelopment in Ontario.

The previous Ontario government had also proposed a much-need excess soil regulation. There has been extensive consultation on the proposed regulation over a five-year period. If implemented, the regulation would address the gaps surrounding the ability for enforcement on mismanagement of excess soils in Ontario. It would also open up the opportunity for beneficial reuse of excess soil.

Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital

The International Institute for Sustainable Development (IISD) recently released a report entitled Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital.

The report makes the statement that governments around the world are looking at opportunities to attract private capital participation in both land remediation and its productive use and redevelopment thereafter. The business case is intrinsically the value capture in the increase in retail price of land and related business opportunities once the remediation is complete. However, where land value capture is lower and related revenue streams remain uncertain, the case for private capital participation is much less compelling. Governments, in this case, have to fund the remediation through public budgets and thereafter seek opportunities to partner with private counter-parties to use the land as “fit for purpose.”

The IISD report presents 17 case studies on a variety of financing instruments that blend public and private capital. Each case study includes a short discussion on the extent to which each instrument could be used to finance the remediation of contaminated soil. The case studies in thereport demonstrate a variety of financing strategies, from index-linked bonds to savings accounts and from peer-to-peer lending platforms to debt-for-nature swaps. Find out more about Loanpad by reading this review, if peer-to-peer lending is something you have been considering to do for your business.

This report is a part of a series of outputs of a four-year project, Financing Models for Soil Remediation. The overall objective of the project is to harness the full range of green finance approaches and vehicles to manage the associated risk and fund the remediation of contaminated soils.

The series of reports focuses on the financial vehicles available to attract investment to environmental rehabilitation of degraded land and the financial reforms needed to make these vehicles a viable and desirable means of investing in land rehabilitation. The IISD draws on best practices worldwide in funding environmental rehabilitation, with a special focus on the design and use of financial mechanisms to attract private investors, share the risk and offer a clear benefit for the rehabilitated land. If you would like to make some investments, with regards to personal investment then you may want to check out some mutual funds.

Several lessons emerge from these case studies described in the report in the context of financing the remediation of contaminated land, including the following:

  1. As with all financial arrangements, the risk appetite of different investors has to match the risk profile of
    the investment. It is difficult to crowd in private and institutional investors when projects remain below
    investment grade.
  2. Money follows a good deal. When legal, technological, revenue and other risks are understood and are
    transparent, feasible ways to reduce these uncertainties can be planned and financing strategies can be
    worked upon.
  3. When there is reasonable certainty that the value of the land will increase after remediation and will
    subsequently generate stable and predictable revenues, there is a strong case for blending public and
    private financing.
  4. When, on the other hand, projects have less attractive revenue potential, governments have to step in to
    finance the remediation, or at least a larger part of it.

About the IISD

The International Institute for Sustainable Development (IISD), headquartered in Winnipeg, Manitoba, is an independent think tank championing sustainable solutions to 21st–century problems. The mission of the IISD is to promote human development and environmental sustainability. IISD focuses on research, analysis, and knowledge products that support sound policy making.

Kitchener, Ontario’s Largest Brownfield Redevelopment

Kitchener, Ontario’s biggest abandoned industrial site is well on its way into being redeveloped into a 50,000-square-foot facility for a tool and die company and a 3,150-square-metre medical office building.

The 78-acres industrial site is located on the southeast corner of Bleams Road and Homer Watson Boulevard in Kitchener, approximately 100 km west of Toronto.  It was developed with a 1.2 million square foot manufacturing facility that was constructed in several phases beginning in 1967.  The facility had been used by Budd Canada to manufacture auto parts, ThyssenKrupp Budd Canada, and eventually by Kitchener Frame.  The land has sat idle since 2009.

2010 Photo of fhe former Kitchener Frame Building (Photo Credit: Philip Walker/Record staff

In 2010, a group of investors purchased the property with the vision of redeveloping it.  It has taken eight years for the redevelopment to reach its current state – a series of approvals from various levels of government and a plan to start construction in early 2019.

The site is still waiting approval of the Record of Site Condition (RSC) from the Ontario Ministry of the Environment, Conservation and Parks (MOECP). It was filed in January of 2018.  An RSC is typically required by on Ontario Municipality if a property is being redevelopment for a more sensitive land use (i.e., from industrial to commercial or residential).  It is filed by an environmental consultant following the clean-up of a property.  It summarizes the environmental condition of a property based on the completion of environmental site assessments (i.e., Phase I & II ESAs).

Site Clean-up

Demolition work and subsequent site cleanup got underway in November 2011. The environmental remediation cost an estimated $8.5 million.

A soil remediation program was conducted at the property between April and June 2016 in an attempt to reduce the
concentrations of the contaminants of concern s in soil identified at the property. The remediation activity at the site included the excavation of approximately 9,360 cubic metres (5,200 tonnes) of contaminated soil for disposal at a licensed non-hazardous waste landfill.  No sediment or groundwater was remediated or removed for the purpose of remediation.

The clean-up of the site included the preparation of a Streamlined Tier 3 Risk Assessment Report.   A risk assessment provides an approach for developing property specific standards (PSS) under Ontario Regulation 153/04 (Records of Site Condition (RSC) – Part XV.1 of the Act), made under the Environmental Protection Act (the Regulation). A Tier 3 Risk Assessment goes beyond the generic approach of a Tier 2 risk assessment and involves a longer and more detailed review by the MOECP. According to the filed RSC, the MOECP has approved of the Streamlined Tier 3 Risk Assessment.

As reported in the Kitchener Post, a total of $7,787,000 in direct remediation costs are eligible to be reimbursed by the city and region under a joint tax increment grant application. The total estimated post redevelopment assessment value is estimated at more than $111 million.

Redevelopment

In an interview with the Daily Commercial News, Janinen Oosterveld, manager of site development and customer service in Kitchener-Waterloo’s planning division stated: “Approvals to finalize the subdivision of the lands into development parcels is currently underway.”

As of mid-October, the city had received site plan applications for two developments — a 50,000-square-foot facility for a tool and die company and a 3,150-square-metre medical office building.

Plans for the redevelopment envisage nine industrial parcels, totaling approximately 39 acres.

Future redevelopment of the former industrial property on Homer Watson Boulevard, Kitchener, Ontario (Photo Credit: Bill Jackson/Metroland)

 

Can a Saskatoon brownfield be transformed into fertile green space?

The City of Saskatoon, Saskatchewan is in the process of implementing a Brownfield Renewal Strategy that it deems essential to growth in its main corridors. The initiative aims to assess and prioritize redevelopment potential of abandoned, vacant, derelict, or underutilized properties along the City’s major corridors that may have or do have perceptions of contamination.

The results of the brownfields evaluation will lead to the formulation of an incentive program that will help overcome financial and environmental barriers for redevelopment, as well as provide contamination management plans for future development.

One recent brownfield development in Saskatoon was initiated by a not-for-profit organization called CHEP Good Food.  CHEP has been promoting food security in Saskatoon for nearly 30 years. The organization is currently working toward restoring a plot of contaminated land to an agricultural plot of land.

The non-profit group, which works to promote food security, has already won a grant from CN Rail that will help them plant native trees and bushes at another brownfield site in Saskatoon and to restore the soil.   The project received the CN EcoConnexions grant through Tree Canada / Arbres Canada and Canadian National Railway Company to plant native trees and shrubs on the site.

The Askîy Project grows crops on brownfield land in Saskatoon using re-purposed containers. (CBC)

A previous fruit and vegetable garden project by CHEP began in 2014 under a different name as rooftop gardens at the University of Saskatchewan. The project relocated to the brownfield site  in 2015 and was renamed the Askîy Project — which means “Earth” in Cree.

The latest CHEP project is more ambitious than the existing Askîy Project.  It involves growing trees and bushes directly in the soil as well as remediation the site.  A professor from the University of Saskatchewan, Susan Kaminskyj, will oversee experimental bio-remediation at the site.

The bio-remediation will consist of utilizing native a fungi that will assist the plants in growing but will also biodegrade the petroleum hydrocarbon contamination at the brownfield site.

Professor Kaminskyj explained in an interview with CBC, that the microbe is a common fungus, but one with “unique abilities.”  A property in the fungus allowed plants to grow and thrive on coarse Oil Sands tailings.  In early field trials, Professor Kaminskyj’s team found more than 90 per cent of dandelion seeds treated with the fungus sprouted on coarse tailings while no untreated seeds sprouted. The researchers also found the fungus was able to grow with diesel, crude oil and similar materials as its only nutrient source.