CERCLA’s strict liability for environmental cleanup costs on owners or operators of contaminated sites contains limited defenses and exceptions. One such exception is the “safe harbor” that shields lenders from liability provided they do not undertake certain activities with respect to the site. But the applicability of this “safe harbor” is not altogether straightforward, and lenders should be cautious that their conduct does not bring them into the ambit of potential liability under CERCLA or analogous state statutes.

Fortunately, legal developments in recent decades have enabled lenders to manage the risk of environmental liability under CERCLA and similar state statutes. This has helped to create a robust, productive, and lucrative climate for brownfield redevelopment.

Read here for our analysis of the legal evolution that has made today’s brownfield redevelopment climate possible, including practice commentary for managing risk in today’s market for contaminated real estate.