Jane Warren discusses with Law360 the new Release-Based Cleanup Regulations that the Connecticut Department of Energy and Environmental Protection has finalized to facilitate environmental remediation of properties based on the discovery of releases, in lieu of the current transfer-based program. The regulations are currently set to take effect March 1, 2026, if/when they are approved by the Legislative Regulation Review Committee. Jane, who participated in the rulemaking process, says, while the CTA regime frustrated or prevented certain transactions in Connecticut and caused some property owners to abandon or hold on to contaminated properties to avoid having to clean them up, the new rules should encourage owners to remediate releases once discovered to avoid annual fees and/or penalties.
“I believe this will be positively received in the market,” she says. “Connecticut will no longer be one of two outliers that disincentivizes property transfer.” She does expect property transactions in Connecticut to slow considerably early next year while awaiting the change to the new regime, since any deals that close before March 1, 2026 will still be subject to the Transfer Act. She noted, though, that the new rules advanced by CT DEEP are likely to see changes during the regulation review process before they take effect next year. “While we have a completely new framework, I’m sure it will be tweaked to iron out some remaining wrinkles in the next year.”