Alabama

D.W. Wilson
Tanner & Guin, L.L.C.
Tuscaloosa, Alabama

On May 21, 2001, the Governor of Alabama signed into law the Alabama Land Recycling and Economic Redevelopment Act. This Act and the implementing regulations will form the basis for a "Voluntary Cleanup Program" and will provide the first formal means of addressing brownfields in Alabama.

Prior to the enactment of this statute, the Alabama Department of Environmental Management (ADEM or the Department) had approached the question of brownfields on an informal, case-by-case basis. ADEM had established procedures for accepting information on contaminated sites and analyzing that information to determine whether additional cleanup actions were required. When contaminants at a property were shown to be at a level acceptable to the Department, the Department would issue a "no-further-action letter" (NFA), indicating that the Department saw no need for additional remediation based on the site conditions known at the time. While far from being conclusive proof against future cleanup liability, such an NFA served to reassure potential purchasers and lenders and allowed real estate transactions to proceed.

With the advent of the Land Recycling and Economic Redevelopment Act, ADEM now has the authority to promulgate regulations establishing a Voluntary Cleanup Program and offering qualifying participants in the program an affirmative limitation on liability, not only with respect to regulatory actions from the State, but also with respect to third party liability.