3.12.2 HAZARDOUS SUBSTANCES (WASTE)
Concern about the mitigation of hazardous substance threats to the
environment is a direct result of living in the modern industrial era. It is especially strong in the United States because of its historical forefront with the highest chemical technologies. The U.S. Congress has been immersed in the issues since the initial public outpouring of concern with incidents such as the Love Canal where large-scale dioxin contamination was determined to be negatively impacting human health in nearby residential neighborhoods.
Uncontrolled hazardous and special waste presents serious environmental risks requiring proper management to prevent serious degradation of air, water, soil, etc. as well as extreme danger to plant and animal life. Hazardous wastes are termed such within the chemical regulatory industry based on materials bearing certain dangerous characteristics: toxicity, corrosiveness, flammability, and toxicology. Such substances include caustics, pesticides, flammables, corrosives, explosives, herbicides, radioactives and biological agents. Special wastes are considered a somewhat less relative risk to the environment, somewhere between solid waste and hazardous waste. Certain less hazardous petrochemicals, asbestos and crude oil are examples. Special wastes are, therefore, afforded a different protocol for disposal. Special wastes, for instance, must be disposed of in at least an EPA-approved special waste landfill.
Hazardous and special wastes entail special handling, containment, transportation, and disposal procedures, which have traditionally been heavily regulated by federal and state governments.
Solid waste: (all other waste streams)
The Agency must consider the potential impact of hazardous substances including liability and economic risks posed by the presence of hazardous materials. On a collateral property, contamination may impact the market value of the property. In case of a construction project, the cost of the project could considerably increase due to clean up requirements or the protection of personnel. In addition, it could also raise health hazard concerns.
Rural Development should not authorize, fund, or carry out any proposed action, which would adversely affect the environment through an illegal procedure of hazardous or special materials management. Whenever a proposed action is determined to have the potential for impacting a Federal or State controlled waste management plan, the Department of Environment should be consulted as early in the environmental impact analysis process as possible to evaluate the possible consequences and protection requirements concerning the action.
A major issue which surfaces with prospective properties with potentially hazardous materials is determining whether or not they are classified as wastes. Generally they should be immediately determined as wastes if they could not practically be immediately used, are releasing unacceptably into the environment, or are targeted for disposal anyway. They should then be correctly classified as hazardous, special, or solid waste and be properly disposed of. This should be done by professional experts and ultimately involves laboratory testing, special containment and packaging, special transportation procedures, and permanent storage and disposal at EPA licensed facilities. Unknown materials are analyzed and classified based on their hazardous characteristics. Crude oil laden with hazardous materials, for example, would be classified as hazardous waste, not special waste, if its hazardous characteristics exceeded EPA established maximum thresholds.
The process of evaluating real estate for the presence of contamination is called due diligence. It is further defined as:
The process of evaluating real estate for the presence of contamination from release of hazardous substances, hazardous waste, petroleum products, or other environmental hazards and determining what effect, if any, the contamination has on the regulatory status or security value of the property.
Some of the hazardous substances that require consideration include:
Hazardous wastes, including medical wastes & petroleum products
Hazardous chemicals used in manufacturing/treatment
Sludge containing hazardous/toxic materials
Leaking underground storage tanks
Asbestos containing materials
Lead based paints
Radon
When visiting property or project area Agency staff members, fee appraisers and preparers of the environmental assessments should be alert for any hazardous substances that might be present. If the presence of hazardous substance is suspected as a result of the site visit or from conversation with individuals knowledgeable about the property, the loan approval official should be informed.
If the project involves real estate transaction of a property suspected of containing hazardous substances, the Loan Approval Official must initiate a "due diligence" review. An appropriate tool for the review is the Transaction Screen Process (TSP) developed and published as a standard by the American Society of Testing and Materials (ASTM). The Transaction Screen Questionnaire (TSQ), ASTM Standard E-1528-00 is the standardized form adopted by the Agency to document our "due diligence" efforts. This form needs to be completed in order to document our review. Visit EPA web site http://www.epa.gov/enviro/html/
for assistance in completing questions 21 & 22. Attach a copy of the TSQ with the appraisal report and the environmental assessment.
If the completed TSQ suggests possible presence of hazardous substance send a copy of the TSQ along with a memo explaining the situation, to SEC for further evaluation and guidance.
Prior to acquiring property through foreclosure, RD staff should complete the TSQ (sample in Appendix 13).
In case of projects that use, store or produce hazardous chemicals, medical waste hazardous waste or sludge containing hazardous/toxic materials, the plans for storage and disposal should be discussed. If necessary, EPA may need to be contacted. Note that if hazardous materials are involved, the 500-year flood plain may need to be considered in lieu of the 100-year flood plain.
Where applicable, discuss the potential impact due to leaking under ground storage tanks (LUST), asbestos containing materials, lead-based paints and radon.
Visit EPA web site for information on storage tank registration program for regulated underground and above ground storage tanks.
Refer to Single Family Handbook HB-1-3550 Paragraph 15.7.A.4 for storage tanks, & Paragraph 15.9.C for lead-based paint.
Rural Development employees may use the Lead Based Paint eKey posted at the intranet site: http://teamrd.usda.gov/rd/rhs/PSS/Lead_Paint/lead_based_paint_key.htm
Suggested Web sites: http://www.epa.gov/
Federal Regulations (Laws)
Resource Conservation and Recovery Act (RCRA) of 1976 and amendments of 1980 and 1984.
Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA, also known as "Superfund").
Superfund Amendments and Reauthorization Act of 1986 (SARA).
Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA).
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
Marine Protection, Research, and Sanctuaries Act (MPRSA).
Toxic Substance Control Act (TSCA).