You asked if (1) the state must certify that land it transfers to municipalities is in good environmental condition (i. e. , free of contaminants), (2) the state cleans up such property that is later found to be contaminated, and (3) a town that is unsatisfied with the condition of any property transferred to it by the state can return the property.

SUMMARY

Whether or not the state has to certify the environmental condition of property it transfers to a municipality depends on when the property was transferred and how it was used before the transfer.

Before October 1, 2001, the Transfer Act would have applied to most contaminated property transferred from the state to a municipality. PA 01-204, which became effective on that date, exempts property acquired by a government or quasi-government authority from the act's application. In addition to the exemption for government and quasi-government acquisitions, the Transfer Act contains numerous other exemptions based on the nature of, and sometimes the parties involved in, the process for changing ownership of the property stated above. For example, the act does not apply to the conveyance or extinguishment of an easement.

The Transfer Act requires the transferor (or in some instances, a party associated with the transfer) of most real property, including the state, to certify the condition of that property if hazardous waste was generated or processed there or a dry cleaning, furniture stripping, or vehicle body repair business operated on the site. The transferor (or party associated with the transfer) certifies that (1) there has been no hazardous spill on the property; (2) any hazardous substance has been remediated; (3) there was a spill but the Department of Environmental Protection (DEP) determined that remediation was unnecessary; (4) it is investigating the environmental condition of the property and will remediate it if necessary; or (5) it will conduct post-remediation monitoring, investigate further if monitoring indicates a need, and remediate if necessary.

There is no statutory requirement for the state to (1) clean up any contamination discovered after a transfer is completed or (2) buy back such contaminated property. The municipality could certainly try to return the property as a gift to the state, but the state is under no statutory obligation to take it.

The remainder of this report describes the Transfer Act's certification requirements. If you would like information on how DEP processes the certification forms, please let us know.

TRANSFER ACT

The Transfer Act (CGS §§ 22a-134a to -134d) requires the transferor (or in some instances, a party associated with the transfer) to certify the condition of certain real property before the transfer takes place. PA 01-204 substantially changed the Transfer Act and its application. Of significant importance to this report is a provision that makes the act inapplicable to government, including municipalities, and quasi-government property acquisitions. We have attached a copy and summary of PA 01-204. But, for the remainder of this report, we have summarized the Transfer Act before PA 01-204 became effective on October 1, 2001.

The act applies to property where (1) a business generated more than 100 kilograms (220 pounds) of hazardous waste in any one month after November 18, 1980, but not property where this amount of waste was generated by remediation of polluted soil; (2) hazardous waste generated off-site is disposed of, recycled, reclaimed, reused, stored, handled, treated, or transported; and (3) a dry cleaner, furniture stripper, or vehicle body repair or painting shop was located on or after May 1, 1967.

Exemptions

The act's exemptions include the following, which may be applicable in a transfer from the state to a municipality:

1. conveyance or extinguishment of an easement;

2. conveyance of a security interest;

3. termination of a lease and conveyance, assignment, or execution of a lease for a period less than 25 years;

4. conveyance of a service station;

5. any conveyance of an establishment that was developed and used solely for residential purposes;

6. any conveyance to developers of projects under Chapter 130 or 132 (e. g. , urban renewal or redevelopment projects), an urban rehabilitation agency, or to the Connecticut Development Authority or its subsidiary; or

7. any conveyance of a parcel necessary to develop Adriaen's Landing.

Certification

One of four certification forms must be completed and filed with DEP before a transfer takes place. The type of form depends on whether there has been a hazardous waste spill on the property, and if so, whether it has been remediated. The law requires the transferor to complete forms I and II and any party associated with the transfer (which could be the transferee) to complete forms III and IV. In a conveyance from the state to a municipality, the state is the transferor and the municipality is the transferee.

Form I. This form states, based on an investigation that complied with statutory requirements, that there has been (1) no hazardous waste releases on the parcel or (2) no hazardous waste spill and (3) any spill of hazardous substances has been remediated in accordance with DEP standards.

Form II. The transferor files this form if there has been a hazardous waste spill, but (1) it has been remediated or (2) DEP has determined that no remediation is needed to comply with its remediation standards.

Form III. A party to the transfer files Form III when (1) a hazardous waste spill has occurred on the property or its environmental condition was unknown and (2) the person signing the form agrees to investigate the property and remediate the pollution caused by any release at the establishment.

Form IV. A party to the transfer files Form IV when there has been a hazardous waste spill and all of the necessary remediation tasks have been completed, other than (1) post-remediation monitoring, (2) monitoring how natural processes reduce the contamination, or (3) recording a deed that restricts the future use of the land based on the degree to which it has been remediated. The person signing the form agrees to (1) conduct the monitoring in accordance with DEP's remediation standards, (2) conduct further investigations, and (3) remediate the property in accordance with DEP's standards.

The DEP reviews the forms for completeness and contacts the appropriate party if it needs additional information.

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