Tenants Off The Hook: EPA's New Policy Under CERCLA
January 25, 2013, 12:21 PM EST
Law360, New York (January 25, 2013, 12:21 PM EST) -- The U.S. Environmental Protection Agency has announced that it generally will not seek cleanup costs from tenants who lease contaminated properties, provided that tenants meet certain statutory requirements. Tenants contemplating leasing contaminated properties should consider their due diligence strategy in light of the EPA’s new policy.
In December, the EPA issued guidance to explain that in certain circumstances, it would exercise its enforcement discretion to treat tenants as “bona fide prospective purchasers” (BFPPs) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), of which treatment...