New CT environmental regulations could create thousands of jobs; add millions to state coffers
Thousands of properties across Connecticut could become more attractive for redevelopment now that the state legislature has streamlined regulations for how properties are evaluated for potential contamination and cleanup — a major issue in a state with a deep-rooted industrial heritage.
The legislature approved changes to the 'Transfer Act,' which since 1980 has set regulations for environmental testing of properties that were up for sale.
The law has long criticized as dampening development because all properties at which 100 kilograms — about 220 pounds — of hazardous waste was dealt with in any one month had to undergo environmental testing before a sale could be completed, according to Brendan Schain, legal director for the environmental quality division at the state Department of Energy and Environmental Protection, said.
The regulations pertained to properties even where there was not a known discharge or spill, Schain said.
The changes, which will go into effect in 2026, were approved by the General Assembly's legislative regulation review committee and rely on investigation performed by property owners or prospective buyers and lenders to determine whether pollution is present and needs a cleanup.
'We know that buyers don't want to buy polluted properties with unknown liabilities,' Schain said. 'We know that lenders and others make people look for pollution, right? It relies on the investigation that we know is already being done – the market-driven investigation.'
'And instead of requiring an investigation, it starts from there,' Schain said. 'So, if you discover a release, you have to tell us about it, in certain circumstances, and clean it up to the state's cleanup standard.'
Since the 1980s, 5,000 properties in the state have entered the Transfer Act program, but less than half have been remediated, according to the state. The regulation changes bring Connecticut in line with 48 other states.
Economists at the state Department of Economic and Community Development estimate that the new systems will boost the state's economy. Over the next five years, the change could create 2,100 new construction jobs, $3.78 billion in new economic growth, as measured by gross domestic product and $115 million in new revenue to the state.
'This is a gamechanger for Connecticut,' Gov. Ned Lamont said, in a statement. 'This new system is truly a win-win, resulting in faster environmental clean-ups and unlocking countless blighted properties that will go from being community hazards to being community assets.'
DEEP Commissioner Katie Dykes echoed those sentiments: 'I look forward to implementing this modern cleanup program and bring valuable properties back into productive reuse.'
Kenneth R. Gosselin can be reached at kgosselin@courant.com.
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