Local Governments and Contaminated Property

• Liability Exemptions For Local Governments
• Brownfields Funding For Local Governments
• Hazardous Waste Enforcement Discretion Pilot Program

Throughout Wisconsin there is concern over the decline of many of our state's urban and rural economic centers. While the suburban fringe expands and prospers economically, many properties in our downtown areas have been abandoned due to known or suspected contamination. Both rural and urban communities have "brownfields," defined as abandoned or underused properties where development is hindered due to real or suspected environmental contamination. In the past, even when local government officials had the authority to acquire title to such properties, communities were reluctant to do so because of concern about potential environmental liability.

These days, however, brownfield properties are often seen as resources that we can investigate, clean up and redevelop to increase tax revenues and employment opportunities. For some communities, brownfield redevelopment can include job creation, increased property tax revenues and additional wages that can circulate through the local economy.

The state of Wisconsin has developed a wide variety of tools to help communities achieve these goals - those tools are listed as links and located on the left-hand side of the web page.

Liability Exemptions For Local Governments

Previously, local governmental units (LGUs) and economic development corporations (EDCs) that acquired contaminated property, even if they did not purchase it, were considered responsible under Wisconsin's Hazardous Substance Discharge Law, also known as the Spill Law (s. 292, Wis. Stats.), because they "possessed or controlled" a contaminated property. As a result, they were required to investigate and clean up the contamination.

The Land Recycling Law (1993 Wisconsin Act 453) and the 1997-1999 and 1999-2001 State Biennial Budgets removed this liability and created incentives for LGUs and certain EDCs to redevelop property, depending upon how the property is acquired.

This exemption for local governments has helped spur renewal of many contaminated properties. For more information, please click on the links on the left-hand column of this web page, or view the following publication: Liability Protection for Local Governmental Units and Economic Development Corporations (RR-579) [PDF, 310KB].

DNR can provide liability clarification letters, upon request, to address the applicability of the LGU Exemption to specific properties. LGUS or EDCs should use Section 4 of the Technical Assistance and Environmental Liability Clarification Request (Form 4400-237) [PDF, 70K] to request such a letter.

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Brownfields Funding For Local Governments

The Wisconsin State Legislature and federal government have established special brownfields financial incentives for local governments, including a new revolving loan fund through the Wisconsin Brownfields Coalition. Please refer to the Financial Incentives and Brownfields links located on the left-hand side of this web page.

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Hazardous Waste Enforcement Discretion Pilot Program

Limiting Liability for Local Governments Using Certain Methods of Acquiring Property Impacted By Releases of Hazardous Waste

The DNR has received pilot program approval from EPA to utilize the department's enforcement discretion, to not apply hazardous waste liability provisions to local governments that acquire an interest in the property, if provisions in Ch. 292, Wis. Stats., are met.

• Local Governmental Unit Liability Exemption Proposal (PDF, 101KB)
• EPA Local Governmental Unit Approval Letter [PDF, 241KB]
• Example of General Liability Clarification Letter under the Pilot Program

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For more information on this specific page, contact:

Dan Kolberg