HB378 Alabama 2023 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2023

Title

Relating to environmental protection; to amend Sections 22-30E-2, 22-30E-3, 22-30E-4, 22-30E-5, 22-30E-9, and 35-19-4, Code of Alabama 1975, to provide potentially responsible parties with limitations of liability with respect to a brownfield site; to create the Brownfield Remediation Reserve Fund; to add Sections 22-30E-14, 22-30E-15, and 22-30E-16 to the Code of Alabama 1975, to provide for the creation of brownfield redevelopment districts; and to make nonsubstantive, technical revisions to update the existing code language to current style

Summary

HB378 creates a framework to encourage brownfield cleanup by limiting liability for certain parties, creating a Brownfield Remediation Reserve Fund, and establishing Brownfield Redevelopment Districts to support redevelopment and reuse.

What This Bill Does

It would allow potentially responsible parties to receive liability limitations for brownfield sites if they participate in the voluntary cleanup program, with conditions that they are not a defined responsible person and after meeting certain regulatory approvals. It creates the Brownfield Remediation Reserve Fund to help cover post-remediation costs for qualifying properties where there is no responsible party, funded by contributions (including $500 per acre per qualifying property) and limited to up to $4 million per property. It authorizes the creation of brownfield redevelopment districts as separate public corporations to oversee remediation and redevelopment within affected areas, granting liability protections to participants within the district and requiring covenants not to sue among district members. It also updates definitions and requires environmental covenants (35-19-4) to govern usage restrictions, reporting, and enforcement, with rules for the voluntary cleanup process overseen by the Alabama Department of Environmental Management.

Who It Affects

• Potentially responsible parties and applicants seeking liability limitations for qualifying brownfield properties, who must participate in voluntary cleanup and meet specific criteria to receive liability protections.
• Property owners and prospective purchasers of qualifying brownfield sites, who may engage in voluntary cleanup plans and, upon approval, receive liability limitations and access to the Brownfield Remediation Reserve Fund for post-remediation costs.
• Local governments and municipalities, which may establish brownfield redevelopment districts as separate public corporations and oversee district governance and district-wide liability protections.
• The Alabama Department of Environmental Management (ADEM), which would administer the program, establish rules, manage the Brownfield Remediation Reserve Fund, and process plans and certifications.
• Communities near brownfield sites, who may benefit from cleanup, redevelopment, and safer, reusable properties.

Key Provisions

• Provides limitations of liability for potentially responsible parties who participate in the voluntary cleanup program, with full discharge occurring after the department approves a voluntary property assessment plan, a voluntary cleanup plan, or concurrence with the certificate of compliance, so long as the applicant is not a 'responsible person' for the property.
• Creates the Brownfield Remediation Reserve Fund, into which responsible party contributions (including a $500 per acre per qualifying property) are deposited; the fund pays post-remediation costs for properties cleaned under this act after December 31, 2023 where no responsible person exists, up to a $4,000,000 per property limit, and cannot reimburse costs from noncompliance.
• Allows local governments to establish brownfield redevelopment districts as public corporations to manage remediation and redevelopment; districts have boards of directors, can own property, incur indebtedness payable from local funds, and are considered governmental entities for liability purposes; participation in districts can provide liability limitations for qualifying properties.
• Requires environmental covenants (Section 35-19-4) to document and govern activity and use limitations, identify holders, describe contamination and remediation, provide rights of access, include exculpatory provisions, and set rules restricting amendments or termination.
• Empowers the department to adopt and enforce rules for cleanup standards, property inventory, notice procedures, and public participation; establishes the Voluntary Cleanup Properties Inventory and processes for voluntary property assessment and cleanup plans, including timeframes for departmental review and approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Brownfields, to further provide for the voluntary cleanup program