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

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

Perchlorate & VOC Drinking Water Standards Proposed By EPA

U.S. Environmental Protection Agency has announced the agency’s decision to develop to regulate perchlorate in drinking water. The decision will lead to the development of the first-ever national standard for perchlorate.

According to EPA, scientific research indicates that perchlorate may disrupt the thyroid’s ability to produce hormones that are critical to developing fetuses and infants. Monitoring data show more than 4% of public water systems have detected perchlorate and 5 - 17 million people may be served drinking water containing perchlorate.

EPA expects to continue to evaluate potential perchlorate health effects and occurrence in public water systems. The agency will also evaluate the feasibility and affordability of treatment technologies to remove perchlorate and examine the costs and benefits of potential standards.

In a separate action, the agency is also plans to establish a drinking water standard to address a group of chemicals that may pose risks to human health. EPA will also be developing one regulation covering as many as 16 volatile organic compounds (VOCs), includes trichloroethylene (TCE) and tetrachloroethylene (PCE) as well as other regulated and some unregulated contaminants that are discharged from industrial operations. The VOC standard will be developed as part of EPA’s new strategy for drinking water to address contaminants as groups rather than individually in order to provide public health protections more quickly and also allow utilities to more effectively and efficiently plan for improvements.

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

Smart Growth Planning Training Seminar In Iowa

The City of Waverly, Iowa, will host a workshop and open house on May 26-27, to solicit input from residents on how the community should determine future growth. The events are designed to explore “Smart Growth” solutions for future community planning efforts.

Through such events, the Federal Emergency Management Agency, U.S. Department of Agriculture - Office of Rural Development, the Rebuild Iowa Office and the Iowa Department of Economic Development are cooperating to assist flood-impacted Iowa communities that have expressed the desire to rebuild using the EPA Smart Growth Planning Program.

The workshop will be held from 5 p.m. to 7:30 p.m. Wednesday, May 26, at the Waverly Library in Waverly.

Smart Growth Work Shop in Iowa

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

Revised Dioxin Toxicity Report

U.S. Environmental Protection Agency (EPA) has released its draft scientific report, “Reanalysis of Key Issues Related to Dioxin Toxicity and Response to NAS Comments”. The draft dioxin report is EPA’s response to key comments and recommendations made by the National Academy of Sciences on the agency’s draft dioxin reassessment. The draft report will now undergo scientific peer review by independent, external experts as well as public review and comment.

EPA’s draft scientific report will now undergo external peer review by an expert panel of scientists convened by EPA’s Science Advisory Board (SAB) in July 2010. Public comments on this draft report are being requested, and the Federal Register Notice provides details on how to submit comments.

More information on dioxin toxicity assessment report

Caltha LLP provides expert consulting services to public and private sector clients nationwide to address Environmental Review and Environmental Impact Assessment.

Caltha Environmental Review Website

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

US HUD Tier I Environmental Screening

The U.S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing has adopted Tier 1 vapor intrusion (VI) screens (the first of four tiers) under ASTM E 2600 as a mandatory component of Phase I environmental site assessments conducted under the agency's MAP (Multifamily Accelerated Processing) Guide. MAP is the procedure used by hundreds of MAP-approved lenders and HUD field offices throughout the country to process loan applications for Federal Housing Administration multifamily mortgage insurance.

Under the revised policy, a HUD Phase I ESA must include an initial vapor intrusion screen to determine if there is a potential for vapors to occur in the subsurface below existing and/or proposed on-site structures from those hazardous substances, petroleum and petroleum products that consist of VOCs, SVOCs and inorganic volatile compounds.

HUD is one of two Federal lending agencies that that prescribe additional mandatory requirements to a Phase I ESA. The Small Business Administration also has additional enviornmental review requirements for participation in its lending programs.

SBA Environmental Review / RSRA / Phase I Environmental Site Assessment Requirements

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 Environmental Review Website

FTA Environmental Analysis for NEPA Categorical Exclusion

The Federal Transit Authority (FTA) has developed specific categories for environmental review in compliance with NEPA. For certain types of projects, FTA may require project proposers to complete sufficient environmental analysis such that FTA can determine that the proposed project meets the criteria for a Categorical Exclusion (CE) under 27 CFR 771.117(d). By meeting these criteria, FTA will meet Categorical Exclusion criteria under NEPA (40 CFR 1508.4), and ultimately neither the proposer nor FTA will be required to conduct an Environmental Assessment as prescribed under 27 CFR 771.119. FTA could then take actions, including providing project funding.

Caltha LLP assists Iowa City, County and State project proposers to conduct environmental analyses required to meet FTA requirements for Categorical Exclusions. Caltha also conducts Environmental Assessments and Environmental Impact Assessments, and other Environmental Review requirements.

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