[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]
BILLING CODE 5000-04-M