As part of PES Phase I Assessment due diligence studies, we research information available at state and city environmental regulatory agencies. One of them is the Commonwealth of Virginia Department of Environmental Quality (DEQ). The DEQ was formed in 1993 with the merger of four state agencies. Since 1999 the DEQ has provided oversight of 110 waste site cleanups throughout the state. They have also have managed the revitalization of 275 sites through the Voluntary Remediation Program. Part of this program is the Virginia Petroleum Storage Tank Program (VPSTF or Fund).
The primary purpose of this fund is to reimburse individuals or businesses for the often high costs associated with cleaning up petroleum releases. All petroleum distributors pay a fee per gallon of gasoline, diesel, or heating oil product sold to fund this program. This program was set up to protect the soil and groundwater, and inadvertent neighboring properties, from petroleum pollution. Owners of leaking tanks are required by law to report and cleanup releases, and this can place an extreme financial burden on individuals and small businesses.
Commercial lending banks need to establish protection for their real estate collateral. Businesses that borrow funds from these banks to expand or build their businesses need to be aware that it is best to know about subsurface contamination. The VPSTF is a fund that allows for the vast majority of cleanup costs to be covered by the fund in most cases. The fund has proved to be a great comfort and provide financial cover for many banks and small businesses over the last twenty years. Many states do not have such a fund and this has resulted in an adversarial relationship between individuals/businesses and state regulatory agencies. PES can connect our clients and client borrowers with managers of this fund.
The PES newsletter will be available several times per year or as necessary based upon industry news of interest to the commercial real estate lending industry. Please contact us with questions or thoughts at www.PESenvironmental.com or email@example.com. Are you in need of environmental due diligence services? Consider PES and be another satisfied client! Click here to see what others are saying about PES.
PES has been a leader in Environmental Due Diligence studies for eighteen years. Our consulting has concentrated in Virginia, Maryland, and Washington, D.C. but also covering projects throughout the wider Mid-Atlantic Region. More can be learned on PES on our website: www.PESenvironmental.com. Never be hesitant to reach out to PES by phone: 703-938-5050, or email: firstname.lastname@example.org with any questions or thoughts you have pertaining to environmental matters for due diligence to be secured by a future loan. PES can also perform REO Portfolio Reviews for Liability Exposure, Update Environmental Reports, or Lender Environmental Screens.