What is CERCLA and How Does it Affect You?

The field of environmental law is complex and ever-changing. Whether you own land that is in need of remediation or you want to do your due diligence before a real estate transaction, there are several things you need to be aware of. One of these is CERCLA: this environmental protection act can have big implications on your transactions and your potential liability for environmental remediation.

So what is CERCLA? And, more importantly, how does it affect you?

What is CERCLA?

CERCLA, which stands for the “Comprehensive Environmental Response, Compensation, and Liability Act” — commonly referred to as Superfund — was enacted in 1980 by the Environmental Protection Agency (EPA). It was created in response to growing concerns over hazardous waste sites across the country.

According to the EPA’s CERCLA overview, the Act did three things:

• established prohibitions and requirements concerning closed and abandoned hazardous waste sites;
• provided for liability of persons responsible for releases of hazardous waste at these sites; and
• established a trust fund to provide for cleanup when no responsible party could be identified.

What does this mean? In its most basic sense, CERCLA was created to help clean up contamination when identified, as well as identify the parties responsible for payment to ensure that taxpayers do not bear the cost of remediation.

How Does it Affect Businesses and Homeowners?

CERCLA is an important Act that has implications for people and businesses across the US. Here are just a few of those considerations:

Liability and Legal Responsibility

One of CERCLA’s primary responsibilities is to identify responsible (or potentially responsible) parties. What does this mean? A potentially responsible party is someone who may be held accountable for the costs associated with remediation for a particular site. These may include current and former owners of the property or the transporters and organizers who disposed of hazardous substances at the site in the first place.

Real Estate Transactions

Because both current and former property owners are among those who can be held responsible for remediation costs, all real estate transactions must be approached with extreme care. Both the buyer and seller should ensure they have done their due diligence, including environmental assessments and site investigations, to identify potential environmental liabilities and ensure compliance with CERCLA requirements. Failure to disclose known contamination issues could result in legal consequences and financial liabilities down the line.

Financial Burden

There’s a reason CERCLA seeks to identify parties who are potentially responsible for contamination: the cost of cleanup is significant. Including investigation, remediation, and long-term monitoring, the costs can reach thousands — or even millions — of dollars per case. For that reason, CERCLA authorizes recovery of those costs from the parties responsible. If you are found liable, you could be looking at significant financial strain or bankruptcy.

Working with the Right Experts for Better Results

CERCLA is an important piece of legislation that facilitates remediation of environmental contamination. However, if you are considered potentially responsible for contamination through CERCLA — or if you’re involved in real estate transactions and want to reduce the risk of issues down the line — you need to know that your lawyers have the knowledge and expertise to get to heart of the issue and defend you from any unjust claims.

The lawyers at Davis Environmental Law have extensive knowledge of environmental issues in New Jersey. With over 25 years of experience in the field, we can help you understand CERCLA and its implications for you now and in the future. You need someone you can trust. Let’s have a conversation.