New York Brownfield Remediation Services

Brownfield Remediation

A "Brownfield" is any real property where redevelopment or reuse is complicated by the presence or potential presence of a hazardous waste, petroleum, pollutant, or contaminant.

New York Brownfield Remediation Consultants

The Pirro Group has specialized in environmental procedure and processes under the New York State Environmental Conservation Law (ECL) since 1975. With the advent of article 8 ECL and the State Environmental Quality Review Act (SEQRA), the implementing regulations for article 8 ECL, Pirro Group has been a key consulting partner to a multitude of successful real estate projects from minor subdivisions to large scale solid waste Recycling Facilities.

In 2003, Governor George Pataki established the NYS Brownfield Cleanup Program (BCP). Administered by both NYS DEC and NYS Department of State, this program continues to foster environmental cleanup initiatives and to spur economic redevelopment by providing developers with a myriad of tax credits for the development or adaptive reuse of contaminated sites.

BCP Benefits

Three tax credits are available to taxpayers, subject to applicable tax law, who remediate a site under the Brownfield Cleanup Program under Title 14 of Article 27 of the Environmental Conservation Law. To be eligible for these tax credits, a taxpayer must have been issued a Certificate of Completion from the NYS Commissioner of Environmental Conservation. The services provided by the Pirro Group, detailed in the following section, are designed to provide this certificate in a timeframe that will meet the needs of their clients.

The first and most significant tax credit is The Brownfield Redevelopment Credit. A credit of 10% to 22% of the costs incurred in the following three areas:

  • Site preparation costs (expenses related to qualification for a remediation certificate or preparing a site for development)
  • Tangible property costs (similar to ITC credit, covering all capitalized expenses, such as buildings and structural components)
  • On-site groundwater costs (remediation of groundwater contamination)

For many Pirro Group clients, this tax credit represents millions of dollars in immediate return on investment. However, only costs incurred on or after the date of execution of the NYS Brownfield Cleanup Agreement are eligible for purposes of computation of the credit. Please contact a Pirro Group consultant for more information on this issue.

The second tax credit, the Remediated Brownfield credit for Real Property Taxes, is a yearly credit. This credit is for developers bringing employment to the developed site. Based on number of employees as well as location of the site, the tax credit can be up to 100% of the eligible yearly real property taxes paid with a limitation equal to the number of employees time $10,000. For instance, if the developed site pays $50,000 in real property taxes and employs 100 employees, the tax credit could be up to $50,000 per year. Further, improving the developers return on investment.

The third tax credit is the Environmental Remediation Insurance Credit. This is for premiums paid fro Environmental Remediation Insurance ( section 3447 of the Insurance Law) up to $30,000 or 50% of the premium.

As mentioned earlier, there are limitations and a defined process to be followed to successfully earn these tax credits. The services provided by the Pirro Group will guide the developer successfully through this process.

BCP Services

The Pirro Group has the ability to conduct site assessments, prepare investigative reports, prepare remedial work plans, and advise developers on the benefits, requirements and procedures for completion of most hazardous waste projects.

Under the Brownfield Cleanup Program, the Pirro Group, LLC will coordinate either with our staff attorneys, or the clients counsel, a turn-key coordination of the BCP program including:

  1. A determination whether the taxpayer is a "participant" or a "volunteer" under the BCP;
  2. A review of whether the site is eligible;
  3. A review of whether the parties (taxpayers) are eligible;
  4. Schedule and attendance at a pre-application meeting with the NYSDEC;
  5. Preparation of the BCP Application, together with attachments;
  6. Upon a NYSDEC determination of eligibility, Pirro Group, together with counsel, will assist in the preparation of the Brownfield Cleanup Agreement (BCA);
  7. Together with an environmental remediation consultant of the developer's choice, assist in the preparation of Investigative Work Plans and Reports, Remedial Work Plans, review of Alternative Analysis, Institutional Controls and Engineering Controls, Environment Easements;
  8. Upon achievement of remediation requirements, and review of the Final Engineering Report, make application to NYSDEC for a Certificate of Completion.

Upon issuance of the Certificate of Completion, the site owner receives liability limitations for hazardous waste and/or petroleum emanating from the site under Environmental Conservation Law Section 27-1421; and the taxpayer is eligible for tax credits (note that where the NYSDEC refers to a Certificate of Completion, the Tax Law refers to this document as a Remediation Certificate).

The applicability of the BCP to your project should be checked with and supervised by appropriate attorneys specializing in the respective areas.

We welcome the opportunity to meet with you to discuss your requirements in detail and to review specific proposals for the services we may provide. Please contact us to schedule a consultation.