Hot Topic Archive Compliance Screening (July 2008) Highlights of 2007 DEP Enforcement Actions(February 2008) Above Ground Storage Tanks May Need Permits (December 2007) Spill Prevention Tips for Oil Dealers (November 2007) SPCC Rule Amendments (April 2007) Recent Maine DEP Enforcement Actions (March 2007) New Form A / Form R Rules May Reduce Burden (February 2007) Maine Chemical Inventory / Tier II Reporting Due Soon (January 2007) Gasoline Station Environmental Conference (October 2006) New Hazardous Waste Manifest Rules (September 2006) Oil Dealer Fined for Lack of Spill Plan (September 2006) Royal Ridge Business Suites Coming to Scarborough (March 2006) Stormwater Conference (May 2006) Stormwater Regulations (September 2005)

Hot Topic: A New Environmental Due Diligence Concept: Compliance Screening

July 2008

Most purchasers of commercial property are familiar with completing environmental due diligence to protect them from liability for existing site contamination.   Lending institutions commonly require a Phase I Environmental Site Assessment (ESA) in accordance with a nationally-accepted standard.   While an ESA is appropriate for most commercial property, it may represent an incomplete picture of potential environmental liability for the purchaser.  

Activities, materials, or waste streams generated on many developed properties may trigger environmental compliance requirements.   New owners can inherit environmental compliance deficiencies ranging from simple paperwork submittals to long-standing violations that result in enforcement actions from the Maine Department of Environmental Protection (MEDEP).  Such deficiencies usually have a direct cost to the business, through capital improvements, training, or in the worst case, partial or full operational shutdown by the MEDEP.

Environmental compliance regulations often apply to the following activities:

Air Emissions: Can be from boilers, vents, spray booths, and even dust.

Wastewater Discharges: Discharge of most chemicals to the public sewer system requires a permit. 

Hazardous/Universal Waste Generation:   Typically thought to be limited to solvent or heavy metal wastes; fluorescent light bulbs and mercury batteries now require special management.

Petroleum Storage: Regulations are extensive and range from simple permits to secondary containment and spill plans. 

A full compliance audit would identify these environmental issues, but this approach is usually not appropriate for a potential purchaser due to cost and timing.   Instead, an environmental compliance screening can be completed to more quickly identify potential “deal breakers” before a transaction is completed.

For more information on environmental compliance related to due diligence, contact Mike Rioux , CHMM or Keith Taylor of St.Germain & Associates at (207) 591-7000.

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