[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8115]
[[Page Unknown]]
[Federal Register: April 6, 1994]
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DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 91
RIN 0790-AF64
Revitalizing Base Closure Communities--Base Closure Community
Assistance
AGENCY: Department of Defense, DoD.
ACTION: Proposed rule.
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SUMMARY: The proposed rule publishes for comment the guidance required
by section 2908 of the National Defense Authorization Act for Fiscal
Year 1994. Section 2908 of the Act provides authority for the Secretary
of Defense to transfer real property or facilities available as a
result of a base closure, to persons paying the cost of environmental
restoration activities on the property.
DATES: Comments must be received by July 5, 1994.
ADDRESSES: Comments must be forwarded to the Office of the Assistant
Secretary of Defense for Economic Security, room 3D854, The Pentagon,
Washington, DC 20301.
FOR FURTHER INFORMATION CONTACT:
Steven Kleiman or Frank Savat, telephone (703) 614-5356.
SUPPLEMENTARY INFORMATION: In many cases the most difficult obstacle to
getting property into productive reuse after a base closes is
environmental restoration, because the Department of Defense cannot
convey title to property until this is accomplished. The potential
exists that persons who are interested in developing the property could
clean it more quickly and efficiently than the government. This section
provides a proposed rule which in its final form would allow the
Department to transfer a property for the cost of cleanup to persons
who agree to perform the environmental restoration. If the estimated
value of the base exceeds the cost of cleanup, the buyer shall make up
the difference. The Department of Defense and the Environmental
Protection Agency will continue to consult regarding the implementation
of Public Law 103-160, section 2908.
List of Subjects in 32 CFR Part 91
Community development, Environmental protection, Government
employees, Homeless Military personnel, Surplus Government property.
Accordingly, 32 CFR part 91 is proposed to be amended to read as
follows:
PART 91--[AMENDED]
1. The authority citation for part 91 continues to read as follows:
Authority: 10 U.S.C. 2687 note.
2. Section 91.7 is proposed to be amended by adding a new paragraph
(j) to read as follows:
Sec. 91.7 Procedures.
* * * * *
(j) Transfer of real property or facilities to persons paying the
cost of environmental restoration activities on the property.
(1) In many cases the most difficult obstacle to getting property
into productive reuse is environmental restoration, because the
Department of Defense cannot convey title to property until this is
accomplished. The potential exists that persons who are interested in
developing the property could clean it more quickly and efficiently
than the government. This section proposes instructions to implement a
new authority which allows the Department of Defense to transfer a
property for the cost of cleanup to persons who agree to perform the
environmental restoration. If the estimated value of the base exceeds
the cost of cleanup, the buyer shall make up the difference.
(2) Section 2908 of Title XXIX of Public Law 103-160 authorizes the
Secretary of Defense, at any time before December 1, 1998, to enter
into agreements to transfer by deed, real property or facilities at
closing installations to a person who agrees to perform all required
environmental cleanup, waste management, and environmental compliance
activities.
(3) The authority may be exercised in the following manner:
(i) An agreement to transfer may be executed with any person,
provided that person can demonstrate to the satisfaction of the
Secretary concerned the ability to adequately perform all required
environmental clean-up, waste management and environmental compliance
activities.
(ii) The property and facilities subject to the agreement must be
located in an installation closed or to be closed under a base closure
law, as defined in paragraph (c)(1) of this section and at the time the
agreement is executed must be available exclusively for the use, or
expression of an interest in use, of a local redevelopment authority
under Public Law 103-160, section 2905. The reuse contemplated in the
agreement must be consistent with the applicable local redevelopment
plan.
(iii) The Agreement may be in any form and transfer any interest
allowable under the law of the State in which the property or facility
is located provided, however:
(A) The Agreement may not serve to transfer title by deed in
violation of Section 120(h) of the Comprehensive Environmental Response
Compensation and Liability Act (CERCLA) (42 U.S.C. 9620(h)).
(B) The Agreement must contain a stipulation that all environmental
restoration, waste management and environmental compliance activities
required under Federal and State laws, administrative decisions,
agreements (including schedules and milestones), and regulatory agency
concurrences, including those that become effective at any time during
the existence of the Agreement, shall be met by the person with whom
the Agreement is to be executed. The environmental restoration for the
Agreement must include activities associated with cleanup of petroleum
and its derivatives.
(C) The Agreement shall contain any item or condition that the
Secretary of the Military Department concerned considers appropriate to
protect the interests of the United States. Such terms or conditions
may include, but are not limited to, providing continued access to the
property and facilities by the U.S. and State and local regulatory
agencies; limitations upon the use to which the property may be put;
and, provisions requiring a bond or other form of financial assurance.
(D) The Agreement must contain a description of the information
disclosed to the person to whom the property or facilities will be
transferred on the environmental restoration, waste management and
environmental compliance requirements and activities relevant to the
property or facilities. This description shall include any specific
information required by the notice requirements of Section 120(h)(1) of
CERCLA (42 U.S.C. 9620(h)).
(E) The Agreement should disclose to the person to whom the
property or facilities will be transferred that the U.S. will not
indemnify, hold harmless or defend that person pursuant to Public Law
102-484, section 330, as amended by Public Law 103-160, section 1002.
(F) The Agreement may provide for a transfer to occur at any point
after all remedial action necessary to protect human health and the
environment has been constructed and installed by the person and the
remedy has been demonstrated to the Military Department concerned and
EPA to be operating properly and successfully.
(iv) The consideration for the Agreement must equal the estimated
fair market value of the property or facilities to be transferred, as
determined by the Secretary of the Military Department concerned. The
consideration may be in the form of the expected costs of all
environmental restoration, waste management, and environmental
compliance activities to be paid by the recipient of the property or
facilities. If such expected costs are lower than the estimated fair
market value of the property or facilities, the Secretary concerned
shall obtain the difference in other consideration satisfactory to the
Secretary concerned.
(v) Before executing any Agreement authorized by Public Law 103-
160, section 2908 the Secretary concerned must:
(A) Disclose to the person to whom the property or facilities shall
be transferred any information under the control of the Secretary
regarding the environmental restoration, waste management and
environmental compliance activities that relate to the property.
(B) Conduct an Environmental Baseline Survey to determine whether
there are impediments to the ultimate transfer of the property.
(C) Make the certification to Congress required by Public Law 103-
60, section 2908.
(D) Ensure the consultation with the affected governor and local
communities required by a base closure law, as defined in paragraph
(e)(1) of this section, has been conducted.
Dated: March 31, 1994.
P.H. Means,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 94-8115 Filed 4-5-94; 8:45 am]
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