Competing Interests and Creating Value - Balancing Durable and Enforceable Institutional Controls with Beneficial Reuse - 20320

Abstract

US DOE LM has various real property interests at the 100 sites within its current portfolio, with an anticipated total of 127 sites within the next 5 years. Each site has its own narrative with respect to the real property assets. Since the regulatory time frame for long-term surveillance and maintenance activities at some sites can be in perpetuity, durable and effective instruments and documentation are necessary to support LM's unique mission as a federal land manager and steward. More than half of the sites currently in LM's inventory do not allow unrestricted use, and institutional controls (ICs) are required to limit human and environmental exposures to residual contamination. LM's Asset Management program balances protection of human health and the environment with a goal of optimizing its land portfolio through mitigation of risk, limiting liability, and creating value, whether tangible or intangible, in these types of assets. The IC layering strategy utilizes multiple types, restrictions, and legal authorities to protect human health and the environment. This layering strategy influences the transition of these properties into LM's portfolio to assess potential beneficial reuses. The LM's beneficial reuse program aims to repurpose former contaminated sites to restore the environment, protect the public health, revitalize communities, and spur economic growth. LM strives to create value in a perceived valueless asset and reevaluates and revisits the potential opportunities for these sites as long-term surveillance and maintenance activities are performed and objectives are achieved. Beneficial reuse also promotes protectiveness by ensuring activities are compatible with long-term maintenance and protection of public health and the environment as well as ensuring activities are environmentally sound by retaining good stewardship of natural resources. LM has recently revised both the Institutional Control Program Guidance and its Beneficial Reuse Management Plan to integrate the issues of land use with ICs, creating value in these impaired assets. This paper presents the following topics: (1) a general overview of LM's IC and beneficial reuse programs; (2) the unique aspects of each of these programs as a result of the multiple regulatory requirements and programs that affect LM sites; (3) case studies of LM sites to show examples of how LM created value while complying with the ICs and layering strategies; and (4) the most common challenges to beneficial reuses at LM sites and potential options for value creation in impaired assets. (authors)