Cleaning Up Contaminated Property in Texas

Parties entering the VCP must submit:

• An application
• An Affected Property Assessment Report describing the contaminated area of concern
• A $1,000 application fee

The VCP process usually takes many months to complete. However, it can raise the fair market value and eliminate land-use restrictions on a property.

Innocent Owner/Operator Program (IOP) for Texas Properties

The Texas IOP issues Innocent Owner/Operator Certificates (IOCs) to certain people when their property or businesses were contaminated.

The IOC verifies that:

• The release or migration of contaminants came from a source outside of the property
• The property owner or operator did not contribute to or cause the source of contamination

The IOP can be used to redevelop or add value to contaminated property. Unlike the VCP release of liability, however, IOCs are not transferable to future owners/operators. These future owners or operators must enter the IOP and receive their own IOC.

Texas Risk Reduction Program (TRRP) for Environmental Cleanup

TRRP regulates the cleanup and management of wastes and substances (i.e. chemicals of concern), which are released into the environment from commercial and industrial facilities.

The TRRP process guides the closure and release of waste management facility components (e.g., tanks, container storage areas, surface impoundments). This process determines whether the processes will pose an unacceptable risk. If they do, it outlines what must be done to reduce the risk, prevent pollution, or protect natural resources. The TRRP can be a cost-effective way to rehabilitate properties and return them to productive use.

Municipal Setting Designation (MSDs) 

An MSD is an official state designation given to a property. It certifies that designated groundwater at the property can’t be used as potable drinking water because it is unacceptably contaminated. The prohibition is in the form of a city ordinance or an enforceable restrictive covenant.

An MSD can control the cost of a property cleanup. Essentially, it limits the need for investigations or costly response actions addressing groundwater contaminants. This is due to the fact that the water has already been declared unpotable.

Brownfields Site Assessment Programs 

In Texas, many former industrial properties lie dormant or underutilized due to actual or theoretical contamination and all associated liability issues. These properties are broadly referred to as “brownfields.”

The TCEQ facilitates cleanup, transfer, and revitalization of brownfields at no cost to local governments. It also provides technical advice, education, and project partnering for brownfields redevelopments. In response, some local governments have begun to offer property tax abatements to encourage cleanup and redevelopment.