Substitute House Bill No. 5430
          Substitute House Bill No. 5430

              PUBLIC ACT NO. 98-253


AN  ACT  CONCERNING  BROWNFIELDS  REMEDIATION  AND
RECYCLING  AND  A  REGIONAL  ECONOMIC  DEVELOPMENT
ASSISTANCE REVOLVING FUND.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 1. Section  1  of public act 97-109 is
repealed and the  following is substituted in lieu
thereof:
    [Any   municipality   may,   by  vote  of  its
legislative body or, in a municipality  where  the
legislative body is a town meeting, by vote of the
board of selectmen, and by vote of  its  board  of
finance,  and upon application of the owner of any
eligible real property who  agrees,  in  order  to
redevelop   environmentally   impacted  sites,  to
conduct environmental site assessment, demolition,
remediation  or  other  clean-up  of such property
enter into an agreement to abate the property  tax
due,  during  the period of such redevelopment and
remediation, as of the date of the agreement,  but
for  not  longer  than  seven years, provided such
property meets the criteria  established  by  such
municipality  to  qualify  for such abatement. Any
such tax abatement shall be  contingent  upon  the
continuation  of the redevelopment and remediation
process with respect to  the  property  for  those
purposes  specified in the agreement creating such
abatement and such abatement shall cease upon  the
sale  or  transfer  of  the property for any other
purpose  unless  the   municipality   shall   have
consented  thereto.  Such  a municipality may also
establish  a  recapture  in  the  event  of   sale
provided  such  recapture  shall  not  exceed  the
original amount of taxes abated  and  may  not  go
back further than the date of the agreement.]
    (a)  ANY  MUNICIPALITY  MAY  (1) ENTER INTO AN
AGREEMENT WITH THE OWNER OF ANY REAL  PROPERTY  TO
ABATE  THE  PROPERTY TAX DUE AS OF THE DATE OF THE
AGREEMENT FOR A PERIOD NOT TO EXCEED  SEVEN  YEARS
IF  THE  PROPERTY  HAS BEEN SUBJECT TO A SPILL, AS
DEFINED IN SECTION 22a-452c, AND THE OWNER  AGREES
TO  CONDUCT  ANY  ENVIRONMENTAL  SITE  ASSESSMENT,
DEMOLITION AND REMEDIATION OF THE SPILL  NECESSARY
TO  REDEVELOP THE PROPERTY. ANY SUCH TAX ABATEMENT
SHALL ONLY BE FOR THE PERIOD  OF  REMEDIATION  AND
REDEVELOPMENT  AND  SHALL  BE  CONTINGENT UPON THE
CONTINUATION AND COMPLETION OF THE REMEDIATION AND
REDEVELOPMENT PROCESS WITH RESPECT TO THE PURPOSES
SPECIFIED IN THE AGREEMENT.  THE  ABATEMENT  SHALL
CEASE  UPON  THE  SALE OR TRANSFER OF THE PROPERTY
FOR ANY  OTHER  PURPOSE  UNLESS  THE  MUNICIPALITY
CONSENTS TO ITS CONTINUATION. THE MUNICIPALITY MAY
ALSO ESTABLISH A RECAPTURE PROVISION IN THE  EVENT
OF  SALE  PROVIDED SUCH RECAPTURE SHALL NOT EXCEED
THE ORIGINAL AMOUNT OF TAXES ABATED AND MAY NOT GO
BACK  FURTHER  THAN  THE DATE OF THE AGREEMENT; OR
(2) FORGIVE ALL OR  A  PORTION  OF  THE  PRINCIPAL
BALANCE  AND  INTEREST  DUE ON DELINQUENT PROPERTY
TAXES FOR THE BENEFIT OF ANY PROSPECTIVE PURCHASER
WHO HAS OBTAINED AN ENVIRONMENTAL INVESTIGATION OR
REMEDIATION PLAN APPROVED BY THE  COMMISSIONER  OF
ENVIRONMENTAL    PROTECTION    OR    A    LICENSED
ENVIRONMENTAL PROFESSIONAL UNDER SECTION 22a-133w,
22a-133x, AS AMENDED BY SECTION 13 OF THIS ACT, OR
22a-133y AND COMPLETES SUCH REMEDIATION  PLAN  FOR
AN  ESTABLISHMENT,  AS DEFINED IN SECTION 22a-134,
AS AMENDED BY SECTION 2 OF THIS ACT, DEEMED BY THE
MUNICIPALITY TO BE ABANDONED.
    (b)  ANY  ABATEMENT  OR  FORGIVENESS  OF TAXES
UNDER SUBSECTION (a)  OF  THIS  SECTION  SHALL  BE
APPROVED  BY  VOTE OF THE BOARD OF FINANCE AND THE
LEGISLATIVE BODY OF THE MUNICIPALITY, OR  BY  VOTE
OF THE BOARD OF FINANCE AND THE BOARD OF SELECTMEN
IN A MUNICIPALITY WHERE THE LEGISLATIVE BODY IS  A
TOWN   MEETING   AND  CONTINGENT  UPON  ANY  OTHER
CONDITIONS DEEMED APPROPRIATE BY SUCH BODY.
    (c)    A   MUNICIPALITY   SHALL   NOTIFY   THE
COMMISSIONER  OF  ENVIRONMENTAL  PROTECTION,   THE
COMMISSIONER OF ECONOMIC AND COMMUNITY DEVELOPMENT
AND THE SECRETARY OF  POLICY  AND  MANAGEMENT  NOT
LATER   THAN   THIRTY   DAYS  AFTER  GRANTING  ANY
ABATEMENT OR FORGIVENESS OF TAXES UNDER SUBSECTION
(a) OF THIS SECTION. SUCH NOTICE SHALL PROVIDE THE
OWNER OR PURCHASER'S NAME, AS THE CASE MAY BE, AND
THE ADDRESS OF THE PROPERTY.
    Sec.  2. Subdivision (1) of section 22a-134 of
the general statutes, as amended by section  1  of
public  act  97-218, is repealed and the following
is substituted in lieu thereof:
    (1)  "Transfer  of  establishment"  means  any
transaction  or  proceeding   through   which   an
establishment undergoes a change in ownership, but
does not mean (A) conveyance or extinguishment  of
an  easement, (B) conveyance of property through a
judicial foreclosure, (C) conveyance of a deed  in
lieu  of  foreclosure  to an institutional lender,
including,  but  not   limited   to,   a   banking
institution, (D) conveyance of a security interest
including, without  limitation,  a  mortgage,  (E)
renewal  of a lease, (F) conveyance, assignment or
termination of a lease  for  a  period  less  than
twenty-five   years   from   the   date   of  such
conveyance, assignment or  termination,  including
options  or  extensions  of  such  period, (G) any
change in ownership approved by the Probate Court,
(H)  conveyance  of  title  to  a  surviving joint
tenant,   or   to   a   trustee,   executor,    or
administrator  under  the  terms of a testamentary
trust or will, or  by  intestate  succession,  (I)
corporate    reorganization    not   substantially
affecting  the  ownership  of  the  establishment,
including,  but  not  limited  to,  stock dividend
distributions or stock distributions in connection
with  a merger, (J) the original issuance of stock
or other securities of an  entity  which  owns  or
operates  an  establishment,  (K)  the transfer of
stock, securities  or  other  ownership  interests
representing  less  than  a majority of the voting
power of the entity  that  owns  or  operates  the
establishment,  (L)  any conveyance of an interest
in an establishment where the  transferor  is  the
sibling, spouse, child, parent, grandparent, child
of a  sibling  or  sibling  of  a  parent  of  the
transferee,  (M)  any conveyance of a portion of a
parcel upon which portion no establishment  is  or
has  been  located  and  upon  which there has not
occurred a discharge, spillage, uncontrolled loss,
seepage or filtration of hazardous waste, provided
either the area of such  portion  is  not  greater
than  fifty per cent of the area of such parcel or
written notice of such proposed conveyance and  an
environmental  condition  assessment form for such
parcel is provided to the commissioner sixty  days
prior  to  such  conveyance,  (N)  conveyance of a
service station, as defined in subdivision (5)  of
this  section, [or] (O) any conveyance of a parcel
which, prior to July 1, 1997, had  been  developed
solely  for  residential  use and such use has not
changed, OR (P) ANY CONVEYANCE OF A PARCEL TO  ANY
ENTITY  CREATED  OR OPERATING UNDER CHAPTER 130 OR
132, OR TO  AN  URBAN  REHABILITATION  AGENCY,  AS
DEFINED  IN  SECTION  8-292,  OR TO A MUNICIPALITY
UNDER  SECTION  32-225,  OR  TO  THE   CONNECTICUT
DEVELOPMENT  AUTHORITY  OR  ANY  SUBSIDIARY OF THE
AUTHORITY.
    Sec.   3.  Section  22a-133m  of  the  general
statutes is amended by adding  subsection  (h)  as
follows:
    (NEW)  (h)  The  Commissioner of Environmental
Protection and the Commissioner  of  Economic  and
Community Development shall jointly identify urban
community sites known to  have,  or  suspected  to
have,   environmental   contamination   which,  if
remediated and developed, will improve  the  urban
environment.  The  Commissioner  of  Environmental
Protection and the Commissioner  of  Economic  and
Community  Development shall jointly establish the
priority  of  such  sites   for   evaluation   and
remediation  based upon the following factors: (1)
The  potential  benefits  of  remediation  to  the
environment;  (2) the estimated cost of evaluating
and  remediating  the  site,  if  known;  (3)  the
potential  benefits to the local community of such
site; (4) community support  for  remediation  and
redevelopment  of  such  site;  (5) the commitment
from investors or the  municipality  to  redevelop
the  site;  and  (6)  any  other factors which the
commissioners  deem  relevant.  No  real  property
shall  be  eligible for evaluation and remediation
under this subsection unless: (A) The Commissioner
of Environmental Protection is unable to determine
the responsible party, or the responsible party is
not in timely compliance with orders issued by the
commissioner to provide remedial  action,  or  the
commissioner has not issued a final decision on an
order to a responsible party to  provide  remedial
action  because  of  a request for a hearing on an
order or an issued order is subject to  an  appeal
pending before a court; (B) the site is located in
a distressed municipality, as defined  in  section
32-9p, a targeted investment community, as defined
in section 32-222, or an enterprise corridor zone,
as  defined  in  section  32-80,  or in such other
municipality as the Commissioner of  Economic  and
Community  Development  may designate; and (C) the
site is not undergoing evaluation  or  remediation
under  subsections  (a) to (g), inclusive, of this
section.
    Sec.  4.  Section  22a-133aa  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)    The   Commissioner   of   Environmental
Protection may enter into a covenant  not  to  sue
with   any   prospective  purchaser  OR  OWNER  of
contaminated real property provided (1) a detailed
written  plan [has been submitted] for remediation
of the  property,  in  accordance  with  standards
adopted  by  said commissioner pursuant to section
22a-133k, HAS BEEN APPROVED BY THE COMMISSIONER OF
ENVIRONMENTAL   PROTECTION  which  plan  shall  be
incorporated by reference in the covenant, or  (2)
the  Commissioner  of Environmental Protection has
approved a final remedial action report  for  such
property.  No  such  covenant  may be entered into
unless such purchaser OR OWNER has demonstrated to
the  satisfaction  of  the  commissioner that such
purchaser OR OWNER (A) did not establish or create
a  facility  or  condition  at or on such property
which reasonably  can  be  expected  to  create  a
source of pollution to the waters of the state for
purposes of section 22a-432 and has not maintained
any  such  facility  or condition at such property
for purposes of said section, and  such  purchaser
is not responsible pursuant to any other provision
of the  general  statutes  for  any  pollution  or
source  of  pollution  on the property; (B) is not
affiliated with any person  responsible  for  such
pollution  or  source  of  pollution  through  any
direct or indirect familial  relationship  or  any
contractual,  corporate  or financial relationship
other than that by which such purchaser's interest
in  such  property  is to be conveyed or financed;
and (C) will redevelop the property for productive
use  or  continue  productive use of such property
provided  the  commissioner  determines  that  the
covenant  not  to  sue  is in the public interest.
Upon the request of a  successor  of  an  original
holder  of  a  covenant issued under this section,
the commissioner shall enter  into  such  covenant
with such successor if such successor certifies to
the satisfaction of  the  commissioner  that  such
successor complies with subparagraphs (A), (B) and
(C) of this subsection. The commissioner may enter
into  a  covenant  not  to  sue  with  any lending
institution to whom  a  prospective  purchaser  of
contaminated  real  property  conveys  a  security
interest   in   such   property   provided    such
institution  has  demonstrated to the satisfaction
of the commissioner that such institution did  not
establish  or create a facility or condition at or
on such property which reasonably can be  expected
to  create  a source of pollution to the waters of
the state for purposes of section 22a-432 and  has
not  maintained  any such facility or condition at
such property for purposes of  said  section,  and
such  institution  is  not responsible pursuant to
any other provision of the  general  statutes  for
any  pollution  or  source  of  pollution  on  the
property.  Any  covenant  issued  to   a   lending
institution  under this section shall be effective
with respect to any lending institution which is a
successor  in  interest  to  the  original lending
institution  provided   such   successor   lending
institution did not establish or create a facility
or  condition  at  or  on  such   property   which
reasonably  can  be expected to create a source of
pollution to the waters of the state for  purposes
of section 22a-432 and has not maintained any such
facility  or  condition  at  such   property   for
purposes  of said section, and such institution is
not responsible pursuant to any other provision of
the  general  statutes for any pollution or source
of pollution on the property.
    (b)  Any  covenant  entered  into  under  this
section  shall  release  only  those  claims  said
commissioner   may   have  which  are  related  to
pollution or contamination on  or  emanating  from
the  property, which contamination resulted from a
discharge, spillage, uncontrolled loss, seepage or
filtration on such property prior to the effective
date of the covenant. Such covenant shall  provide
that  the  commissioner  will  not take any action
against the holder  of  the  covenant  to  require
remediation  of  the  parcel  or  any other action
against such holder  related  to  such  discharge,
spillage, uncontrolled loss, seepage or filtration
unless (1) such  property  is  not  remediated  in
accordance   with   the   detailed   written  plan
[submitted to] APPROVED BY  the  commissioner  and
incorporated  by  reference  in such covenant, (2)
prior to completion of remediation  in  accordance
with  such plan, the commissioner finds that there
is substantial noncompliance with  such  plan  and
there   has  not  been  a  good  faith  effort  to
substantially comply therewith, (3) remediation of
the  parcel  in  accordance with such plan did not
comply with standards adopted by the  commissioner
pursuant  to section 22a-133k which were in effect
as of the effective date of the covenant,  or  (4)
if  required  by  the  standards  adopted  by  the
commissioner  pursuant  to  section  22a-133k,  an
environmental  LAND  use  restriction has not been
recorded in accordance with  section  22a-133o  OR
THERE  HAS  BEEN  A  FAILURE  TO  COMPLY  WITH THE
PROVISIONS OF SUCH A RESTRICTION.
    (c)   Any   prospective   purchaser  OR  OWNER
receiving a covenant not to sue pursuant  to  this
section  shall pay to the commissioner a fee equal
to three per cent of the value of the property for
which   the  covenant  was  issued  provided  such
property   is   appraised   as    if    it    were
uncontaminated.  Such  fee shall be deposited into
the Special Contaminated Property Remediation  and
Insurance Fund established under section 22a-133t.
No such fee  shall  be  required  for  a  covenant
issued  to a successor in interest to the original
covenant or for a covenant  issued  in  connection
with a remediation project conducted under section
22a-133m.
    (d)  A  covenant  not to sue issued under this
section may provide for  continued  monitoring  in
accordance  with the remediation standards adopted
under   section   22a-133k,   and,   if    further
remediation is necessary based upon the results of
such monitoring, that further action will be taken
to  remediate the property in accordance with such
standards.
    (e)  A  covenant  not to sue issued under this
section shall not preclude the  commissioner  from
taking  any appropriate action, including, but not
limited to, any action to require  remediation  of
the  property,  if he determines that the covenant
not to sue was based on  information  provided  by
the  person seeking the covenant which information
such person knew, or had reason to know, was false
or misleading.
    Sec.  5.  Section  22a-133bb  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)    The   Commissioner   of   Environmental
Protection [may] SHALL enter into a  covenant  not
to  sue with any PROSPECTIVE PURCHASER OR owner of
contaminated real property provided (1) THE  OWNER
OR  PURCHASER  CERTIFIES  THAT THERE IS a detailed
written plan [has been submitted] for  remediation
of  the  property,  in  accordance  with standards
adopted by said commissioner pursuant  to  section
22a-133k,   APPROVED   BY   THE   COMMISSIONER  OF
ENVIRONMENTAL  PROTECTION,  which  plan  shall  be
incorporated  by  reference  in the covenant, [or]
(2) the Commissioner of  Environmental  Protection
has  approved  a  final remedial action report for
such property AND THE PERSON REQUESTING A COVENANT
CERTIFIES  THAT  THERE HAS BEEN NO DISCHARGE AFTER
THE DATE OF SUCH APPROVAL, (3) A DETAILED  WRITTEN
PLAN FOR REMEDIATION OF THE PROPERTY IN ACCORDANCE
WITH SUCH  REGULATIONS  HAS  BEEN  APPROVED  BY  A
LICENSED  ENVIRONMENTAL  PROFESSIONAL,  WHICH PLAN
SHALL BE INCORPORATED BY REFERENCE IN THE COVENANT
AND  SUCH  PLAN  SHALL  BE IMPLEMENTED PURSUANT TO
SECTION 22a-133x,  22a-133y  OR  22a-134a,  (4)  A
LICENSED  ENVIRONMENTAL PROFESSIONAL HAS VERIFIED,
PURSUANT  TO  SECTION  22a-133x,  AS  AMENDED   BY
SECTION  13  OF  THIS  ACT  OR  22a-134a, THAT THE
PROPERTY HAS BEEN REMEDIATED  IN  ACCORDANCE  WITH
SUCH   STANDARDS   AND  THE  PERSON  REQUESTING  A
COVENANT  CERTIFIES  THAT  THERE   HAS   BEEN   NO
DISCHARGE  AFTER THE DATE OF SUCH APPROVAL, OR (5)
A LICENSED ENVIRONMENTAL PROFESSIONAL HAS APPROVED
A FINAL REMEDIAL ACTION REPORT PURSUANT TO SECTION
22a-133y AND  THE  PERSON  REQUESTING  A  COVENANT
CERTIFIES  THAT  THERE HAS BEEN NO DISCHARGE AFTER
THE   DATE   OF   SUCH   APPROVAL.   NO   LICENSED
ENVIRONMENTAL   PROFESSIONAL   SHALL   APPROVE   A
DETAILED WRITTEN PLAN FOR REMEDIATION OR  A  FINAL
REMEDIAL  ACTION  REPORT  UNLESS SUCH PROFESSIONAL
CERTIFIES THAT THE PROPERTY HAS BEEN  INVESTIGATED
IN    A   THOROUGH   MANNER   AND   THE   LICENSED
ENVIRONMENTAL PROFESSIONAL  HAS  INVESTIGATED  THE
PROPERTY   USING  REASONABLE  CARE  AND  DILIGENCE
APPLYING  THE  KNOWLEDGE  AND   SKILL   ORDINARILY
REQUIRED   OF  A  PROFESSIONAL  IN  GOOD  STANDING
PRACTICING  IN  THE  FIELD   AT   THE   TIME   THE
INVESTIGATION WAS UNDERTAKEN.
    (b)  No  such  covenant  may  be  entered into
unless   such   owner   [demonstrated    to    the
satisfaction  of  the commissioner that such owner
(A)]   OR   PURCHASER   HAS   CERTIFIED   TO   THE
COMMISSIONER  THAT SUCH OWNER OR PURCHASER (1) did
not establish or create a facility or condition at
or  on  such  property  which  reasonably  can  be
expected to create a source of  pollution  to  the
waters  of  the  state  for  purposes  of  section
22a-432; [(B)] (2)  is  not  affiliated  with  any
person responsible for such pollution or source of
pollution through any direct or indirect  familial
relationship  or  any  contractual,  corporate  or
financial  relationship  other   than   [that]   A
RELATIONSHIP  by  which  such  owner's interest in
such property is to be conveyed or  financed;  and
[(C)]   (3)   will   redevelop  the  property  for
productive use or continue productive use of  such
property.  [provided the covenant not to sue is in
the public interest.]
    (c)  The commissioner [may] SHALL enter into a
covenant not to sue with any  lending  institution
to  whom such owner conveys a security interest in
such  property  provided  such  institution   [has
demonstrated to the satisfaction of] HAS CERTIFIED
TO the commissioner that such institution did  not
establish  or create a facility or condition at or
on such property which reasonably can be  expected
to  create  a source of pollution to the waters of
the state for purposes of section 22a-432 and  has
not  maintained  any such facility or condition at
such property for purposes of  said  section,  and
such  institution  is  not responsible pursuant to
any other provision of the  general  statutes  for
any  pollution  or  source  of  pollution  on  the
property.  Any  covenant  issued  to   a   lending
institution  under this section shall be effective
with respect to any lending institution which is a
successor  in  interest  to  the  original lending
institution  provided   such   successor   lending
institution did not establish or create a facility
or  condition  at  or  on  such   property   which
reasonably  can  be expected to create a source of
pollution to the waters of the state for  purposes
of section 22a-432 and has not maintained any such
facility  or  condition  at  such   property   for
purposes  of said section, and such institution is
not responsible pursuant to any other provision of
the  general  statutes for any pollution or source
of pollution on the property.
    [(b)]  (d)  Any  covenant  entered  into under
this section shall  release  [only  those]  claims
said  commissioner  may  have which are related to
pollution or contamination on  or  emanating  from
the  property, which contamination resulted from a
discharge, spillage, uncontrolled loss, seepage or
filtration on such property prior to the effective
date of the covenant. Such covenant shall  provide
that  the commissioner will not take any action to
require remediation of the  parcel  or  any  other
action   related   to  such  discharge,  spillage,
uncontrolled loss, seepage  or  filtration  unless
(1)  such property is not remediated in accordance
with the detailed written plan  submitted  to  the
commissioner and incorporated by reference in such
covenant, (2) prior to completion  of  remediation
in  accordance  with  such  plan, the commissioner
finds that there is substantial noncompliance with
such  plan  and  there  has  not been a good faith
effort  to  substantially  comply  therewith,  (3)
remediation  of  the  property  in accordance with
such plan did not comply with standards adopted by
the  commissioner  pursuant  to  section  22a-133k
which were in effect as of the [effective] date of
the  covenant  or (4) if required by the standards
adopted by the commissioner  pursuant  to  section
22a-133k, an environmental use restriction has not
been recorded in accordance with section  22a-133o
OR  IF THE PROVISIONS OF AN ENVIRONMENTAL LAND USE
RESTRICTION WERE NOT COMPLIED WITH.
    [(c)  Any  person  receiving a covenant not to
sue pursuant to this  section  shall  pay  to  the
commissioner a review fee of five thousand dollars
which  fee  shall  be  deposited  in  the  Special
Contaminated  Property  Remediation  and Insurance
Fund established under section 22a-133t.]
    [(d)]  (e)  A covenant not to sue issued under
this section may provide for continued  monitoring
in  accordance with such standards and, if further
remediation is necessary based upon the results of
such monitoring, that further action will be taken
to remediate the property in accordance with  such
standards.
    [(e)]  (f)  A covenant not to sue issued under
this section shall not preclude  the  commissioner
from taking any appropriate action, including, but
not limited to, any action to require  remediation
of  the  property,  if  he determines that (1) the
covenant not  to  sue  was  based  on  information
provided  by the person seeking the covenant which
information such person knew,  or  had  reason  to
know, was false or misleading, (2) new information
confirms  the  existence  of  previously   unknown
contamination  which  resulted  from  a discharge,
spillage, uncontrolled loss, seepage or filtration
which  occurred prior to the effective date of the
covenant, or (3) the threat to human health or the
environment  is  increased  beyond  an  acceptable
level  due  to  substantial  changes  in  exposure
conditions  at  such  property, including, but not
limited  to,  a  change  from  nonresidential   to
residential use of such property.
    (g)  THE COMMISSIONER SHALL ISSUE THE COVENANT
NOT LATER THAN FORTY-FIVE DAYS AFTER THE  DATE  HE
RECEIVES   THE   CERTIFICATIONS   AND   ALL  OTHER
DOCUMENTS REQUIRED UNDER THIS SECTION.
    Sec.  6.  (NEW)  (a)  (1)  A  lender who holds
indicia  of  ownership  primarily  to  protect   a
security   interest   in   a   property,  business
including its tangible and  intangible  assets  or
establishment,  as  defined  in section 22a-134 of
the general statutes, as amended by section  2  of
this   act   and   does  not  participate  in  the
management   of   such   property,   business   or
establishment,   shall   not  be  liable  for  any
damages, assessment, fine or other  costs  imposed
by  the  state  for  the  containment,  removal or
mitigation of such a spill or  discharge,  or  for
any   order   of  the  commissioner  to  abate  or
remediate such spill  or  discharge  from,  or  in
connection    with   a   property,   business   or
establishment.
    (2)  A  lender  who  did  not  participate  in
management   of   a    property,    business    or
establishment,   but   acquires  right,  title  or
interest in a property,  business,  including  its
tangible or intangible assets, or establishment by
foreclosure, shall not be liable for  any  damage,
assessment,  fine  or  other  costs imposed by the
state for the containment, removal  or  mitigation
of  such a spill or discharge, or for any order of
the commissioner to abate or remediate such  spill
or  discharge  provided such lender seeks to sell,
re-lease,  in  the  case  of   a   lease   finance
transaction,  or  otherwise  divest  itself of the
property,  business  or   establishment   at   the
earliest   practicable,   commercially  reasonable
time, on  commercially  reasonable  terms,  taking
into  account  market  conditions  and  legal  and
regulatory requirements, after the foreclosure.
    (b) For the purposes of this section:
    (1)    "Participate   in   management"   means
actually  taking  part  in   the   management   or
operational  affairs  of  a  property, business or
establishment, but does not mean merely having the
capacity  to influence or the unexercised right to
control the property,  business  or  establishment
operations.  A lender holding indicia of ownership
primarily to protect  a  security  interest  in  a
property,   business  or  establishment  shall  be
considered to participate in management  only  if,
while  the  borrower is still in possession of the
property, business or establishment encumbered  by
the   security   interest,  the  lender  exercises
decision-making  control   over   the   borrower's
environmental  compliance activities such that (A)
the lender has undertaken responsibility  for  the
hazardous substance handling or disposal practices
related   to    the    property,    business    or
establishment, or (B) the lender exercises control
at a level  comparable  to  that  of  a  property,
business  or  establishment  manager  to the point
where  the  lender  has  assumed   or   manifested
responsibility    for   the   overall   management
encompassing   day-by-day   decision-making   with
respect  to  environmental  compliance or decision
making  over  all  or  substantially  all  of  the
operational   functions,   as  distinguished  from
financial  or  administrative  functions,  of  the
property, business or establishment other than the
function   of   compliance   with    environmental
protection  laws. "Participate in management" does
not mean: (i) Performing an act or failing to  act
prior  to the time at which a security interest is
created in a property, business or  establishment;
(ii)   holding   such   a   security  interest  or
abandoning or releasing such a security  interest;
(iii)  including  in  the terms of an extension of
credit, or in a  contract  or  security  agreement
relating to the extension, a covenant, warranty or
other term or condition that relates to compliance
with    environmental    protection   laws;   (iv)
monitoring or enforcing the terms  and  conditions
of  the  extension of credit or security interest;
(v)  monitoring  or  undertaking   one   or   more
inspections   of   the   property,   business   or
establishment; (vi) requiring a response action or
other  lawful  means  of  containing,  removing or
attempting to mitigate a discharge or spill  prior
to, during or on the expiration of the term of the
extension of credit; (vii) providing financial  or
other   advice  or  counseling  in  an  effort  to
mitigate, prevent or cure default or diminution in
the   value   of   the   property,   business   or
establishment; (viii) restructuring, renegotiating
or  otherwise  agreeing  to  alter  the  terms and
conditions of the extension of credit or  security
interest;   (ix)   exercising   forbearance;   (x)
exercising other remedies that  may  be  available
under  applicable  law for the breach of a term or
condition of the extension of credit  or  security
agreement;   or   (xi)   containing,  removing  or
otherwise mitigating a spill or discharge;
    (2)   "Extension  of  credit"  means  a  lease
finance transaction in which the lessor  does  not
initially  select  the  leased property, business,
including  tangible  and  intangible  assets,   or
establishment  and  does not during the lease term
control the daily operations or maintenance of the
property,  business or establishment, or the lease
or finance transaction provided  such  transaction
conforms  to  regulations  issued  by  the federal
banking agency or the state  bank  supervisor,  as
those  terms  are  defined  in the Federal Deposit
Insurance Act (12 USC  1813),  or  in  regulations
issued by the National Credit Union Administration
Board;
    (3)  "Financial  or  administrative  function"
means a function of a credit  management  officer,
accounts   payable  officer,  accounts  receivable
officer, personnel manager, comptroller  or  chief
financial officer or similar function;
    (4)   "Foreclosure"   and  "foreclose"  means,
respectively,  acquiring,  and   to   acquire,   a
property,  business  or  establishment through (A)
purchase at sale under a  judgment  or  decree,  a
power  of  sale, a nonjudicial foreclosure sale, a
deed in lieu of foreclosure, or similar conveyance
from  a trustee, or repossession, if the property,
business, including its  tangible  and  intangible
assets,  or  establishment  was  security  for  an
extension   of   credit   previously   contracted,
including the termination of a lease agreement, or
(B) any other formal or informal manner by which a
lender acquires, for subsequent disposition, title
to  or  possession  of   a   property,   business,
including  its  tangible and intangible assets, or
facility  in  order  to   protect   its   security
interest;
    (5)  "Lender"  means (A) an insured depository
institution,  as  defined  in  Section  3  of  the
Federal  Deposit  Insurance Act (12 USC 1813); (B)
an insured credit union, as defined in Section 101
of the Federal Credit Union Act (12 USC 1752); (C)
a bank or association  chartered  under  the  Farm
Credit  Act  of  1971 (12 USC 2001 et seq.); (D) a
leasing or trust company that is an  affiliate  of
an insured depository institution; (E) any person,
including a successor  or  assignee  of  any  such
person, that makes a bona fide extension of credit
to, or takes or acquires a security interest from,
a  nonaffiliated  person; (F) the Federal National
Mortgage  Association,  the  Federal   Home   Loan
Mortgage  Corporation,  the  Federal  Agricultural
Mortgage  Corporation,  or  any  other  person  or
entity  that  in a bona fide manner makes, buys or
sells loans or interests in loans;  (G)  a  person
who insures or guarantees against a default in the
repayment of an extension of credit or acts  as  a
surety with respect to an extension of credit to a
nonaffiliated  person;  and  (H)  any  person  who
provides title or other insurance and who acquires
a property, business or establishment as a  result
of  assignment  or  conveyance  in  the  course of
underwriting claims and claims settlement;
    (6)  "Operational  function"  means a facility
or  plant  manager,  operations   manager,   chief
operating officer or chief executive officer; and
    (7)  "Security interest" means a right under a
mortgage,  deed  of  trust,  assignment,  judgment
lien,   pledge,   security   agreement,  factoring
agreement or lease and any other right accruing to
a  person  to  secure  the repayment of money, the
performance of a duty or any other obligation by a
nonaffiliated person.
    Sec.   7.   Section   32-11a  of  the  general
statutes is amended by adding  subsection  (l)  as
follows:
    (NEW)  (l) (1) The authority may establish one
or more subsidiaries to stimulate,  encourage  and
carry   out   the   remediation,  development  and
financing of  contaminated  property  within  this
state,  in  coordination  with  the  Department of
Environmental   Protection,   and    to    provide
financial, development and environmental expertise
to  others  including,   but   not   limited   to,
municipalities,  interested in or undertaking such
remediation, development or  financing  which  are
determined  to be public purposes for which public
funds may be expended. Each  subsidiary  shall  be
deemed  a  quasi-public  agency  for  purposes  of
chapter 12 of the general statutes. The  authority
may transfer to any such subsidiary any moneys and
real or personal property.  Each  such  subsidiary
shall  have  all  the  privileges, immunities, tax
exemptions and other exemptions of the authority.
    (2) Each such  subsidiary may sue and shall be
subject to suit  provided  the  liability  of each
such subsidiary shall  be  limited  solely  to the
assets, revenues and  resources of such subsidiary
and  without  recourse   to   the  general  funds,
revenues, resources or  any  other  assets  of the
authority  or  any   other   subsidiary.  No  such
subsidiary may provide for any bonded indebtedness
of the state  for  the  cost  of  any liability or
contingent  liability  for   the   remediation  of
contaminated    real    property    unless    such
indebtedness is specifically  authorized by an act
of  the General  Assembly.  Each  such  subsidiary
shall have the  power  to  do  all acts and things
necessary or convenient  to carry out the purposes
of this act,  including,  but  not limited to, (i)
solicit,  receive  and   accept   aid,  grants  or
contributions from any  source  of money, property
or labor or  other  things  of  value, to be held,
used and applied to carry out the purposes of this
act, subject to  the  conditions  upon  which such
grants and contributions  may  be  made, including
but not limited  to,  gifts, grants or loans, from
any department, agency  or  quasi-public agency of
the United States  or  the  state; (ii) enter into
agreements  with  persons   upon  such  terms  and
conditions as are  consistent with the purposes of
such  subsidiary  to  acquire  or  facilitate  the
remediation,   development   or    financing    of
contaminated real or  personal  property; (iii) to
acquire, take title, lease, purchase, own, manage,
hold and dispose of real and personal property and
lease, convey or  deal in or enter into agreements
with  respect  to  such  property;  (iv)  examine,
inspect, rehabilitate, remediate  or  improve real
or personal property  or engage others to do so on
such subsidiary's behalf,  or enter into contracts
therefore; (v) mortgage,  convey or dispose of its
assets and pledge  its revenues in order to secure
any  borrowing,  for  the  purpose  of  financing,
refinancing,      rehabilitating,     remediating,
improving or developing  its assets, provided each
such borrowing or  mortgage  shall  be  a  special
obligation of such  subsidiary,  which  obligation
may  be  in   the   form  of  notes,  bonds,  bond
anticipation notes and other obligations issued by
or to such  subsidiary  to  the  extent  permitted
under this chapter of the general statutes to fund
and refund the  same and provide for the rights of
the holders thereof,  and  to  secure  the same by
pledge of revenues,  notes  or  other  assets  and
which shall be  payable  solely  from  the assets,
revenues and other  resources  of such subsidiary;
(vi) to create  real  estate  investment trusts or
similar  entities or  to  become  a  member  of  a
limited liability company  or  to become a partner
in limited or  general  partnerships  or establish
other contractural arrangements  with  private and
public sector entities  as  such  subsidiary deems
necessary  to  remediate,   develop   or   finance
environmentally  contaminated  property   in   the
state; and (vii)  any  other  powers enumerated in
subsection (e) of  section  32-23  of  the general
statutes necessary or appropriate to carry out the
purposes of this  act.  The  board  of  directors,
executive  director, officers  and  staff  of  the
authority may serve  as members of any advisory or
other board which  may be established to carry out
the purposes of this act.
    (3)  Each  such  subsidiary  shall act through
its board of directors at least one-half of  which
shall  be members of the board of directors of the
authority  or  their  designees  or  officers   or
employees  of  the  authority. A resolution of the
authority shall prescribe the purposes  for  which
each such subsidiary is formed.
    (4)  The  provisions  of  section 1-125 of the
general statutes and this subsection  shall  apply
to  any  officer,  director, designee, or employee
appointed as a member, director, or officer of any
such  subsidiary.  Neither  any  such  persons  so
appointed nor the directors, officers or employees
of  the  authority  shall be personally liable for
the debts, obligations, or liabilities of any such
subsidiary as provided in said section 1-125. Each
subsidiary shall and the authority may provide for
the  indemnification to protect, save harmless and
indemnify  such  officer,  director,  designee  or
employee as provided by said section 1-125.
    (5)  The  authority or any such subsidiary may
take such actions as are necessary to comply  with
the  provisions  of  the  Internal Revenue Code of
1986  or  any  subsequent  corresponding  internal
revenue code of the United States, as from time to
time amended, to qualify  and  maintain  any  such
subsidiary  as  a corporation exempt from taxation
under said internal revenue code.
    (6)  The authority may make loans to each such
subsidiary,    following    standard     authority
procedures,  from  the  authority's assets and the
proceeds  of   its   bonds,   notes,   and   other
obligations, provided however, that the source and
security, if any, for the repayment of such  loans
is derived from the assets, revenues and resources
of such subsidiary.
    (7)  Notwithstanding  any  other provisions of
law, the Commissioner of Environmental  Protection
shall  issue  to the authority or any subsidiary a
covenant not to sue, pursuant to section 22a-133aa
or  section 22a-133bb, as applicable, without fee,
as otherwise required in subsection  (c)  of  said
section   22a-133aa   for  the  remediation  of  a
facility   in   accordance   with   an    approved
remediation plan.
    Sec.   8.   Section  32-23pp  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    It  shall  be  the  policy  of  the  state  to
encourage the practice of pollution prevention AND
REMEDIATION  ACTIVITIES, thereby reducing risks to
the environment and  the  health  of  workers  and
consumers.  As  used  in  this  section, pollution
prevention  includes  the  change  of  or  use  of
production  processes, practices, raw materials or
products that reduce or eliminate  the  generation
of  by-products  without  creating  new  risks  of
concern or that protect natural resources  through
their conservation.
    Sec.  9.  Section   32-23qq   of  the  general
statutes, as amended  by  section  5 of public act
97-124,  is  repealed   and   the   following   is
substituted in lieu thereof:
    (a)   An  Environmental  Assistance  Revolving
Loan Fund is created. The  state,  acting  through
the  Connecticut  Development  Authority,  OR  ANY
SUBSIDIARY OF THE AUTHORITY  may  provide  GRANTS,
loans,  lines  of  credit  or  loan  guarantees to
MUNICIPALITIES    OR    businesses    from     the
Environmental  Assistance  Revolving Loan Fund for
the [purpose]  PURPOSES  of  pollution  prevention
activities,  as  defined  in  section  32-23rr, AS
AMENDED BY THIS ACT, [or] for  purchases  and  the
costs  associated  with  compliance with the Clean
Air Act Amendments of 1990 (42 USC 7401, et seq.),
as  amended,  OR  FOR  REMEDIATION OF CONTAMINATED
REAL PROPERTY. Within the Environmental Assistance
Revolving  Loan  Fund,  a  loan subfund is created
solely to provide loans and  lines  of  credit  as
provided   in  this  section,  [and]  a  guarantee
subfund  is  created  solely   to   provide   loan
guarantees as provided in this section AND A GRANT
SUBFUND IS CREATED SOLELY  TO  PROVIDE  GRANTS  AS
PROVIDED   UNDER   THIS   SECTION.   No  financial
assistance,  nor   any   commitment   to   provide
financial  assistance,  shall  be  provided  by or
entered into by the authority OR ANY SUBSIDIARY OF
THE  AUTHORITY  pursuant  to  sections  32-23pp to
32-23ss, inclusive, AS AMENDED, which would  cause
the   aggregate   amount  of  all  such  financial
assistance and  commitments  then  outstanding  to
exceed  the  sum  of the amounts in the applicable
subfund of the Environmental Assistance  Revolving
Loan  Fund  plus  the  amount of any unpaid grants
authorized  to  be  made  by  the  Department   of
Economic   and   Community   Development   to  the
authority OR ANY SUBSIDIARY OF THE  AUTHORITY  for
deposit   in   the   applicable   subfund  of  the
Environmental  Assistance  Revolving  Loan   Fund,
provided the amount of financial assistance in the
form of any guarantee shall  be  measured  by  the
portion   of   unpaid   loan  principal  which  is
guaranteed by the authority.  Notwithstanding  the
above,   the   aggregate   amount   of   financial
assistance  in  the   form   of   guarantees   and
commitments  with  respect  thereto, calculated as
above, may be up to four  times  the  sum  of  the
amounts  available in the guarantee subfund of the
Environmental Assistance Revolving Loan Fund  plus
the  amount  of  any  unpaid  grants  which remain
available and are specifically designated  by  the
department  for  purposes of such subfund pursuant
to the bond authorization in section 32-23ss.  For
the purposes of this section, "business" means any
business which (1) has gross revenues of less than
twenty-five  million  dollars  in  its fiscal year
ending prior  to  the  application  for  any  such
loans,  lines  of credit or loan guarantees or (2)
has fewer than one hundred  fifty  employees.  The
Connecticut    Development    Authority   OR   ANY
SUBSIDIARY  OF  THE  AUTHORITY  shall  charge  and
collect  interest  on  each  such  loan or line of
credit at a rate to be  determined  in  accordance
with procedures adopted pursuant to subsection (b)
of this section. Payments made  by  businesses  on
all  loans,  lines  of  credit and loan guarantees
shall be paid to the authority OR  ANY  SUBSIDIARY
OF  THE AUTHORITY for deposit in the Environmental
Assistance Revolving Loan Fund.
    (b)  The Connecticut Development Authority AND
ANY  SUBSIDIARY  OF  THE  AUTHORITY  shall   adopt
written   procedures,   in   accordance  with  the
provisions of section  1-121,  to  carry  out  the
provisions  of this section. Such procedures shall
establish   requirements   for   GRANTS,    loans,
guarantees,  interest,  repayment  terms, security
requirements, default and remedies and such  other
terms  and  conditions  as  the  authority  OR ANY
SUBSIDIARY   OF   THE   AUTHORITY    shall    deem
appropriate.
    (c)   Each  such  GRANT,  loan,  guarantee  or
extension of credit shall  be  authorized  by  the
Connecticut    Development    Authority   OR   ANY
SUBSIDIARY OF THE AUTHORITY or, if  the  authority
OR  ANY SUBSIDIARY OF THE AUTHORITY so determines,
by a committee of the authority OR ANY  SUBSIDIARY
OF  THE  AUTHORITY  consisting of the chairman and
either  one  other  member  of  the  authority  OR
SUBSIDIARY or its executive director, as specified
in  the  determination   of   the   authority   OR
SUBSIDIARY.  Any  administrative expenses incurred
in carrying out the provisions of this section, to
the  extent  not  paid  by  the  authority  OR ANY
SUBSIDIARY  OF  THE  AUTHORITY  or   from   moneys
appropriated to the authority OR ANY SUBSIDIARY OF
THE   AUTHORITY,   shall   be   paid   from    the
Environmental   Assistance  Revolving  Loan  Fund.
Payments   from   the   Environmental   Assistance
Revolving    Loan    Fund    to    businesses   OR
MUNICIPALITIES  or  to  pay  such   administrative
expenses  shall  be  made  by the authority OR ANY
SUBSIDIARY OF THE AUTHORITY upon certification  by
the  chairman  of the authority OR SUCH SUBSIDIARY
that  the  payment   is   authorized   under   the
provisions  of  this section, under the applicable
rules  and  regulations  of   the   authority   OR
SUBSIDIARY,   and,   if  made  to  a  business  OR
MUNICIPALITY  under  the  terms   and   conditions
established  by the authority OR SUBSIDIARY or the
duly appointed committee  thereof  in  authorizing
the  making of the GRANT, loan or the extension of
credit.
    [(d)   The  authority  shall  not  approve  an
application  for  a  loan,  line  of   credit   or
guarantee  unless  the Connecticut Hazardous Waste
Management Service  determines  the  applicant  is
eligible   for   such  loan,  line  of  credit  or
guarantee provided this subsection shall not apply
to  loans  for  compliance  with the Clean Air Act
Amendments of 1990 (42  USC  7401,  et  seq.),  as
amended.]
    Sec.  10.  Section   32-23rr  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    As  used  in  sections  32-23pp,  32-23qq,  AS
AMENDED BY THIS ACT, and this section:
    (1)  "Pollution  prevention  activities" means
changes within a plant  in  production  processes,
product  or  raw  materials  that reduce, avoid or
eliminate the generation of hazardous  by-products
per  unit  of  product  or  the  use  of  toxic or
hazardous substances per unit of  product  without
creating  new  risks  of concern, but shall not be
construed to promote or require (A)  incineration,
(B)  transfer from one medium of exposure, release
or discharge to another medium,  (C)  off-site  or
out-of-production process recycling or (D) methods
of end-of-pipe treatment  of  toxic  or  hazardous
substances as waste;
    (2)  "Production  process"  means  a  process,
line method, activity or technique or  combination
or  series  thereof,  which  is  integral  to  and
necessary for the production of a product  or  the
provision of a service; [and]
    (3)    "Hazardous    by-product"   means   any
nonproduct output,  waste  or  residue,  including
fugitive  emissions, of hazardous substance from a
production process; AND
    (4)   "REMEDIATION   ACTIVITIES"   MEANS   ANY
ACTIVITY TO STIMULATE, ENCOURAGE AND CARRY OUT THE
IDENTIFICATION,       ASSESSMENT,      EVALUATION,
ACQUISITION, REMEDIATION, DEVELOPMENT OR FINANCING
OF CONTAMINATED PROPERTY IN THIS STATE.
    Sec.  11.  (NEW)  (a)  There  is established a
fund  to  be  known  as  the  "Regional   Economic
Development  Assistance Revolving Fund". Repayment
of  principal  and  interest  on  loans  made  for
regional  economic development activities pursuant
to chapters 130, 132, 588a and  section  4-66c  of
the general statutes shall be credited to the fund
and shall become part of the assets of  the  fund.
The   Regional   Economic  Development  Assistance
Revolving  Fund   may   include   other   separate
accounts. Any balance remaining in the fund at the
end of any fiscal year shall be carried forward in
the fund for the next fiscal year succeeding.
    (b)  All  moneys  received in consideration of
financial   assistance   for   regional   economic
development   activities,  including  payments  of
principal and interest  on  any  loans,  shall  be
credited to the fund. The Commissioner of Economic
and Community Development, with  the  approval  of
the   Secretary   of  the  Office  of  Policy  and
Management, may deposit any  federal,  private  or
other  moneys  received by the state in connection
with regional economic development activities into
the   fund.   The  Commissioner  of  Economic  and
Community  Development  may  allow  funds  to   be
retained  by  regional  entities and not repaid to
the fund.
    (c)  The  commissioner  may  provide financial
assistance from the assets of the fund to regional
entities  in  the  form  of  individual  loans  or
grants. Regional entities  may  provide  loans  to
nonprofit businesses or communities, not to exceed
two hundred fifty thousand dollars per  individual
loan,  from  a  regional  fund  established by the
entity.  Notwithstanding  any  provision  of   the
general  statutes,  payment  of any administrative
expenses or other costs incurred by the department
in carrying out the purposes of chapters 130, 132,
588a and section 4-66c of  the  general  statutes,
with  respect  to  regional  economic  development
activities, may be paid from the fund  established
in this section.
    Sec.  12.  (NEW)  Any  licensed  environmental
professional   employed   or   retained    by    a
municipality  may  enter,  without liability, upon
any property  within  such  municipality  for  the
purpose   of   performing  an  environmental  site
assessment or investigation if: (1) The  owner  of
such  property  cannot  be  located;  or  (2) such
property is encumbered by a  lien  for  taxes  due
such  municipality;  or  (3)  upon  a  filing of a
notice of eminent domain.
    Sec.  13.  Subsection  (a) of section 22a-133x
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (a)  Except as provided in section 22a-133y, a
municipality, an owner of an  establishment,  [or]
an  owner  of property identified on the inventory
of  hazardous  waste  disposal  sites   maintained
pursuant  to  section 22a-133c on October 1, 1995,
OR AN OWNER OF CONTAMINATED PROPERTY LOCATED IN AN
AREA  FOR  WHICH THE GROUNDWATER CLASSIFICATION IS
GA OR  GAA,  may,  at  any  time,  submit  to  the
commissioner an environmental condition assessment
form  for  such  real  property  owned   by   such
municipality  or  such owner and an initial review
fee in accordance  with  subsection  (e)  of  this
section. Within thirty days of his receipt of such
form, the commissioner shall notify the owner,  in
writing,   whether   or  not  review  and  written
approval  of   any   remedial   action   at   such
establishment or property by the commissioner will
be required. The commissioner  shall  not  process
any  such  form submitted pursuant to this section
unless such form is accompanied  by  the  required
initial  review  fee.  For  the  purposes  of this
section,  "municipality"  means  any  of  the  one
hundred sixty-nine towns of the state.
    Sec.  14.  In codifying the provisions of this
act, the Legislative  Commissioners  shall  delete
the   reference   to  subsection  (c)  of  section
22a-133bb which appears in section 22a-133u of the
general statutes.

Approved June 8, 1998