Revised SBA Procedure For Iowa Banks Effective June 1

Since its initial release, the U.S. Small Business Administration (SBA) has made a number of revisions and clarifications to SOP 50 10 5, Chapter 4, Section III (Environmental Policies and Procedures) in response to comments from lenders and the environmental professionals who support work under these two lending programs. Previous revisions reflected new language clarifying the role of qualified environmental professionals, additions/deletions to the NAICS code list of environmentally sensitive industries, a unique set of requirements for gas stations loans or loans on properties that once housed dry cleaners, among other changes.

A new SBA procedure became effective June 1, 2012 for the agency’s 7(a) and Certified Development Company (CDC) loan programs. As of that date, all documentation submitted in support of SBA loans needs to be updated to reflect SOP 50 10 5 (E), not its predecessor, SOP 50 10 5(D). Unlike previous SBA updates, SOP 50 10 5(E) is much more similar to the previous version (D). Version E does have one significant change related to loans processed under the SBA SLA program (as is the case for the SBA’s PLP, SBA Express, Export Express and Patriot Express programs). Lenders must still follow the guidelines, but do not have to submit documentation or obtain SBA’s concurrence prior to approval or disbursement of the loan in most cases.

Like the previous version of the SOP, for all property (except for a unit in a multi-unit building), the lender/CDC must compare the property’s current and known prior uses and compare the NAICS code(s) to the list of environmentally sensitive industries. Then, if there is a NAICS code match, the Environmental Investigation must begin with an AAI-compliant Phase I ESA conducted by a qualified environmental professional, regardless of the amount of the loan. In this revision, SBA did not make any changes to the qualifications required of environmental professionals, the NAICS code list, the Reliance Letter language or other elements of the environmental requirements.

Caltha LLP is a Qualified Environmental Professional and assists Lenders in Iowa in meeting SBA requirements, including Phase 1 Environmental Assessments and Record Search With Risk Assessment (RSRA) evaluations.

To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

EPA, DOE Study Potential For Renewable Energy At Brownfields Site in Perry, Iowa

EPA and the Department of Energy’s (DOE) National Renewable Energy Laboratory are collaborating on a project to evaluate the feasibility of siting renewable energy production on the Milwaukee & St. Paul Rail Yard Company Brownfields Site, owned by the City of Perry, Iowa. The study will explore the potential for solar or wind power generation on the site.

The vacant 138-acre site has been closed and underused since 1986. In 2004 the city acquired the land and secured an EPA Brownfields grant to assess and clean up the site. Cleanup work under the Iowa Land Recycling Program was completed in the summer of 2011, and the city continues to work diligently to eliminate contamination concerns associated with the site. The City of Perry will use the feasibility study as a tool to help develop the type of facility best suited for its future energy needs. The best fit for the former rail yard is likely to solar or wind power technologies.

EPA’s RE-Powering America’s Land Initiative encourages renewable energy development on current and formerly contaminated land and mine sites when it is aligned with the community’s vision for the site. The collaboration pairs EPA’s expertise on contaminated sites with DOE’s expertise in renewable energy.

As part of the RE-Powering America’s Land Initiative, EPA is investing approximately $1 million for projects across the United States aiming to decrease the amount of green space used for development while continuing to ensure the protection of people’s health, the environment and provide economic benefits to local communities, including job creation. EPA Region 7, which is comprised of Iowa, Kansas, Missouri, Nebraska, and nine tribal nations, had four sites selected, with one in each state of the region.

Caltha LLP provides expert environmental consultant services in Iowa to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Derelict Building Grant Program Funds Iowa Property Cleanup

The Iowa Department of Natural Resources – Financial and Business Assistance (FABA) Program has created the Derelict Building Grant Program. The program was established to assist small communities and rural counties in improving the attractiveness and appearance of their jurisdictions by providing them financial assistance to address derelict buildings. In accordance with the statutory requirement on how these funds are to be used the emphasis will be on landfill diversion through the recycling and reuse of building materials.

The eligibility requirements will entail the derelict building be located in a town or unincorporated county area of 5,000 residents or less and require the building to be owned or in the process of being owned by the town or county. The program will provide the following:

100% reimbursement for a certified Asbestos Containing Material (ACM) inspection.
100% reimbursement, not to exceed $5,000, for removing ACM. A 50% cost share is required for those costs exceeding $5,000.
100% reimbursement not to exceed $3,000 for conducting a Phase I Environmental Audit. Applicant is responsible for all costs exceeding $3,000.
50% reimbursement not to exceed $5,000 for conducting a Phase II Environmental Audit.
Building Renovation: If the building is going to be renovated, 50% reimbursement not to exceed $25,000 is available for offsetting costs related to removing materials for reuse, either at the site or offsite, or for recycling. The grant also compensates for the purchase and installation of reused or recycled materials that will be incorporated into the project.
Deconstruction: If the building is going to be deconstructed, 50% reimbursement not to exceed $50,000 is available for offsetting costs related to deconstruction. It is a goal of all deconstruction projects that 30% of the structure by weight be diverted from landfill disposal.
For every additional 10% of landfill diversion by weight above 30% that is documented upon completion of the project, Applicant cost share is reduced by 5% and grant award will increase accordingly. The maximum grant award for deconstruction projects shall not exceed $75,000.

The program is funded by the DNR’s Solid Waste Alternatives Program (SWAP) for the next three years. DNR is partnering with Keep Iowa Beautiful in the application and review process.

Caltha LLP provides expert environmental consultant services in Iowa to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

HUD Environmental Assessments and Vapor Screening In Iowa

Caltha LLP is a leading provider of property assessment services to organizations in Iowa needing to meet US Housing & Urban Development HUD environmental review requirements. Services include Phase 1 Environmental Site Assessment (ESA) meeting the ASTM Standard Method ASTM E-1527-05, and Vapor Encroachment Screening Assessment meeting the ASTM Standard Method ASTM E-2600-10. Caltha provides the required HUD Reliance Letter with all assessments.

To request a quote for ESA or VEC assessments meeting HUD requirements for environmental site assessment and vapor encroachment review, go to:
Request Quote for Iowa ESA and Vapor Encroachment Assessment

Caltha LLP provides expert environmental consultant services in Iowa to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Lender Liability Training - SBA Environmental Requirements

Seminar: Understanding Lender Environmental Liabilities and Environmental Review Requirements
Minnetonka, Minnesota
January 19, 2011

The session begins with an overview of relevant Federal and state environmental laws that impose financial obligations on Lenders and Borrowers, and potentially impact property value. The seminar then will discuss the use and limitations of the typical assessment tools, such as transaction screens, Phase 1 environmental site assessments, and the use of Reliance Letters. Next, the seminar will provide an overview of environmental review procedures and requirements of SBA. During the final session, case studies will be presented to emphasize the key concepts of Lender Environmental Liabilities.

Agenda

1. Legal and Regulatory Aspects of Lender Environmental Liability
2. Lender Liability Protection and Due Diligence Tools
3. Overview of SBA Environmental Policies and Procedures
4. Case Studies
   

For further information go to:
Understanding Lender Environmental Liabilities and Environmental Review Requirements

This half day training seminar is being provided for individuals who have responsibilities for managing liabilities associated with commercial lending, and those needing to meet environmental due diligence requirements prescribed by the U.S. Small Business Administration (SBA).


Sponsored by Caltha LLP, a leading provider of environmental due diligence services in Iowa

www.calthacompany.com

Environmental Site Investigations UST Clean Up Requirements

The Iowa Environmental Protection Commission has published a Notice of Intended Action to amend Chapter 135, “Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks,” The proposed amendments revise existing rules to include the changes in review procedures and acceptance of reports from certified groundwater professionals on investigation and cleanup of petroleum contamination from underground storage tanks.

In 2010, the Iowa General Assembly enacted legislation in 2010 Iowa Acts, House File 2531, sections 169 to 174, that made changes in review procedures and acceptance of reports from certified groundwater professionals on investigation and cleanup of petroleum contamination from underground storage tanks. A groundwater professional’s site investigation, classification, and corrective action design reports must be accepted unless, within 90 days of receipt, the Iowa Department of Natural Resources identifies material information in the report that is inaccurate or incomplete. From July 1, 2010, through June 30, 2011, the Department has 120 days rather than 90 days to review and comment on the reports.

Caltha LLP provides expert environmental consultant services in Iowa to obtain environmental permits, conduct environmental assessments, and to develop cost effective compliance programs.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Iowa SBA Lenders Using Revised Environmental Review Requirement

The U.S. Small Business Administration (SBA) has released the new version of the agency's SOP 50 10 5. The new policy, SOP 50 10 5(C), replaces its predecessor SOP 50 10 5(B), and will apply to all applications for 7(a) or CDC loans received by the SBA on or after October 1, 2010. The new revision includes several modifications to SBA's due diligence requirements.

Changes to the SBA's environmental policies include:

• The only change to the NAICS code list of environmentally sensitive industrial classifications is to clarify that 8123 "laundry & dry cleaning services" applies "if dry cleaning operations have ever existed on site," not just to current operations;
• For small loans of $150,000 or less, if the Environmental Questionnaire determines that further investigation is warranted, the lender must obtain a Records Search with Risk Assessment (RSRA) by a qualified Environmental Professional (this replaces a Transaction Screen requirement);
• Within the unique requirements for gas station loans, the SBA eliminated the requirement that only Professional Engineers or Professional Geologists with three years of experience could conduct Phase Is on gas station sites;
• Any Phase II ESA performed in connection with an on-site dry cleaning facility must be conducted by an independent Environmental Professional who holds a current Professional Engineer's or Professional Geologist's license and has three years of relevant experience; and
• The only change to the SBA's standard Reliance Letter that must accompany all Transaction Screen, Phase I and Phase II ESA reports was to add the words in bold at the end of the Phase II language as follows: "A Phase II...conducted in accordance with generally-accepted industry standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a Release as it impacts the Property."
  

Caltha LLP assists Sellers, prospective Buyers and their Lenders in Iowa in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

New Vapor Intrusion - Vapor Encoachment Screening Standard

ASTM has recently released an update to procedures used to evaluate soil vapor encroachment, or VES, (formerly referred to as ‘soil vapor intrusion’) under “E2600-10 Standard Guide for Vapor Encroachment Screening on Property Involved in Real Estate Transactions”. The newly revised standard reflects several significant amendments, including:

• A more targeted focus on screening for contaminant of concern (COC) vapors with the potential for encroaching upon or migrating to the target property
• Exchanging the term vapor intrusion condition (VIC) with the new term, vapor encroachment condition (VEC)
• Clarifying the relationship between a VEC and a recognized environmental condition under the E1527-05 Phase I ESA standard

The guide is intended for use on a voluntary basis by parties who wish to conduct a VES on a parcel of real estate to determine if a VEC is identified for the property. The process defined in this guide is a screening process that requires information similar to information generally collected as part of a Practice E1527 Phase I ESA as well as additional information. If a VEC is identified by this screening process, the user may conduct further investigation. The guide can be applied to property with existing structures, property with structures that will be substantially rehabilitated, property without existing structures but having planned structures, or property without existing structures and with no planned structures.

Caltha LLP provides expert environmental consultant services in Iowa to conduct property environmental assessments, conduct environmental review and due diligence, and to evaluate environmental liabilities.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Iowa Environmental Assessment - Records Search - Risk Assessment

The Small Business Administration (SBA) procedures under SOP 50-10(5) Lender and Development Company Loan Programs under certain circumstances requires Lenders to conduct a Records Search with Risk Assessment (RSRA) in order to evaluate the likelihood of contamination at the Subject Property and neighboring properties. If the RSRA concludes that there exists a high risk for contamination, additional environmental investigation may be required.

Caltha LLP provides cost-effective Records Search with Risk Assessment (RSRA) services to SBA Lenders across Iowa.

To request a quote for a Records Search with Risk Assessment (RSRA), go to:

Request Records Search with Risk Assessment (RSRA) Quote On-line

or email your request to

info@calthacompany.com

Caltha LLP provides expert environmental consultant services in Iowa to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Regulatory Compliance Updates - EHS Rule Compliance

Caltha LLP maintains several websites to provide regulatory updates and discussion of current environmental, health and safety topics, as listed below. Interested parties can register to receive automatic notification when a new topic is posted.

SWPPP - Stormwater Pollution Prevention Plans - Stormwater Permits - Stormwater Training
Discussions and comments on stormwater permitting programs in all States, including industrial, municipal (MS4) and construction sites. Topics include general stormwater permits, Stormwater Pollution Prevention Plans, monitoring, training, spill prevention and control, SPCC compliance.

Water Quality Standards - Aquatic Toxicology - NPDES Permit Limits
Discussion of a variety of topics related to State and Federal water quality standards, ambient water quality criteria, sediment criteria, NPDES & site-specific discharge standards, water quality management, aquatic toxicology, aquatic community impacts, and water quality assessment.

Environmental Sustainability - Sustainable Environmental Management Systems
Discussion of sustainability topics, including pollution prevention, waste reduction, material reuse, environmental management systems, product stewardship, and international environmental standards.

Environmental Due Diligence - Site Assessments - Phase I ESA - Environmental Liability
Discussions and comments regarding environmental due diligence, environmental liabilities, CERCLA liabilities, Phase I environmental site assessments, corporate liabilities, environmental compliance liabilities, quantitative environmental liability assessment.

Regulatory Briefings
Regulatory Briefings are published periodically by Caltha to highlight new or proposed regulations on a wide range of environmental, health & safety topics. These briefings are generally 2- to 4-pages in length and provide an overview of the regulations and discuss potential impacts on the regulated community. Participants must sign up to receive an email link to new Regulatory Briefings as they are posted.

Caltha LLP provides expert environmental consultant services in Iowa to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Phase I Site Assessment for Rural and Forest Tracts

In December 2008, the U.S. Environmental Protection Agency (“EPA”) issued a final rule amending the standards and practices for “All Appropriate Inquiries” under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) to allow the use of ASTM E 2247-08 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.” The rule applies to any entity conducting a site characterization or assessment on a large forested or rural property with a brownfields grant and will become effective on March 23, 2009. EPA also published a separate proposed rule proposing the same change to the All Appropriate Inquiries regulations.


Conducting environmental site assessments for large tracts of forested or rural lands presents a challenge to strict adherence to the ASTM Standard Method for Phase I environmental site assessments (ASTM E 1527-05). The final rule and the proposed change to the All Appropriate Inquiry requirements will benefit organizations purchasing large tracts of forested lands or large rural properties that may want to claim landowner liability protections as innocent landowners, bona fide prospective purchasers, or contiguous property owners.

[Read more about Landowner Liability Protections – LLPs]
[Read more about All Appropriate Inquiry under CERCLA]

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/

Iowa Environmental Consulting - EH&S Consultant Services

Caltha LLP provides expert technical consulting services to private and public sector clients across Iowa. For further information, clink on links below:

Iowa (IDNR) Air Permit Compliance – Air Emission Permitting Services
Iowa (IDNR) Stormwater Permit Compliance – Storm Water Permitting Services
Iowa (IDNR) Environmental Assessment– Phase I (Phase 1) ESA Services
Iowa Environmental Audit – Environmental Compliance Services
Iowa RCRA Compliance Services
Iowa Haz Com – Hazard Communication Compliance Services

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/

Phase I Environmental Assessment - Phase 1 ESA In Iowa

Caltha LLP provides expert Phase I Environmental Site Assessments (ESA) in Iowa to meet All Appropriate Inquiry requirements. Our environmental assessment services include:

• Phase I Environmental Assessment
• Phase II Environmental Assessment - Site Characterization
• Transaction Screening
• Small Business Administration (SBA) Environmental Review
• Environmental Due Diligence
• Property or Business Acquisition Review
• Environmental, Health & Safety Compliance Audits

To request a quote to conduct a Phase I Environmental Site Assessment or other assessments in Minnesota, Wisconsin or Iowa, go to: Caltha LLP Website


For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/

Iowa Compliance Audits - New Rules for Prospective Buyers

Since 2000, US EPA has offered reduced enforcement for self-disclosure of environmental compliance violations. EPA’s policy document, “Incentives for Self-Policing: Discovery, Disclosure, Correction, and Prevention of Violations” is commonly known as the “Audit Policy”. On August 1, 2008, the EPA published an interim approach to applying the Audit Policy to new owners that allows new owners to make a fresh start with the EPA.

With the interim approach, the EPA recognizes that a new owner should not be penalized for the economic benefit component relating to violations that arose before a facility was under its control, as long as the new owner is willing to correct issues promptly and institute preventive measures.

Some key elements of the interim approach include:

• Defining a “new owner” to ensure that the violations disclosed originated with the prior owner, and that the new owner was not responsible for the non-compliance disclosed;
• Extending the time for reporting for up to nine months after closing the transaction;
• Relief from the economic benefit component of the penalty for new owners; and
• Applying five of the nine qualifying conditions differently to the new owner.
  

One of the important aspects of this policy is that non-compliance at the Seller’s facility can be reported to regulatory agencies before or soon after property transfer. In making the disclosure, the new owner can make the previous owner responsible for penalties, etc., especially associated with economic benefit component, related to the non-compliance.

Caltha LLP conducts compliance audits and environmental management system audits for clients in Iowa.

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/

EPA Audit Policy - Benefits To New Owners

Since 2000, US EPA has offered reduced enforcement for self-disclosure of environmental compliance violations. EPA’s policy document, “Incentives for Self-Policing: Discovery, Disclosure, Correction, and Prevention of Violations” is commonly known as the “Audit Policy”. On August 1, 2008, the EPA published an interim approach to applying the Audit Policy to new owners that allows new owners to make a fresh start with the EPA.

With the interim approach, the EPA recognizes that a new owner should not be penalized for the economic benefit component relating to violations that arose before a facility was under its control, as long as the new owner is willing to correct issues promptly and institute preventive measures.

Some key elements of the interim approach include:

• Defining a “new owner” to ensure that the violations disclosed originated with the prior owner, and that the new owner was not responsible for the non-compliance disclosed;
• Extending the time for reporting for up to nine months after closing the transaction;
• Relief from the economic benefit component of the penalty for new owners; and
• Applying five of the nine qualifying conditions differently to the new owner.
  

One of the important aspects of this policy is that non-compliance at the Seller’s facility can be reported to regulatory agencies before or soon after property transfer. In making the disclosure, the new owner can make the previous owner responsible for penalties, etc., especially associated with economic benefit component, related to the non-compliance.

Caltha LLP conducts compliance audits and environmental management system audits in Iowa.

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/

Iowa Environmental Consultant Services

Caltha LLP is an Environmental Health & Safety (EHS) Consultant serving a broad range in public and private sector clients in Iowa.

Caltha’s practice areas include:

• Air permitting
• Wastewater permitting
• Stormwater permitting
• Environmental review
• Waste management consulting
• ISO 14001 – Environmental management system consulting
• EH&S Training
• Site assessment & environmental due diligence
• Risk assessment
• Hazard communication
• Product stewardship support
• Temporary EHS staffing

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/

Iowa Phase I Environmental Site Assessment (ESA) - Phase 1 ESA

To request a quote to conduct a Phase I Environmental Site Assessment in Minnesota, Wisconsin or Iowa, go to: Caltha LLP Website

Des Moines Phase I ESA
Iowa Phase I ESA
Des Moines Phase 1 ESA
Iowa Phase 1 ESA
Des Moines Phase one ESA
Iowa Phase one ESA
Environmental Site Assessment
Environmental review
Property Condition Assessment
Environmental due diligence

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Website: http://www.calthacompany.com/