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Preamble:
WHEREAs there are numerous contaminated and derelict properties throughout Alberta which are left abandoned by property owners each year, often accompanied by unpaid property taxes; and
WHEREAS contaminated and derelict properties negatively affect property owners and municipalities; and
WHEREAS previous grant funding from the Government of Alberta was not adequate to remediate properties and is no longer available; and
WHEREAS applicable acts and regulations do not properly distinguish between current owners and original polluters, and further do not completely prevent the original polluter from evading their remediation responsibilities; and
WHEREAS municipalities face the dilemma of either seizing these properties through unpaid taxes and therefore inheriting the liability; or allowing the continued contamination of lands and accumulation of unpaid taxes;
Operative Clause:
THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) advocate to the Government of Alberta (GOA) to review relevant legislation to enable the differentiation between current and former owners with respect to liability for contaminated properties; and
FURTHER BE IT RESOLVED that the RMA advocate to the GOA to reinstate an adequately funded grant program to facilitate the remediation of contaminated properties.
Member Background:
Annually, the County of Vermilion River has property owners who refuse to clean up contaminated and derelict properties and often do not pay taxes on these properties. Alberta Environment and Protected Areas have issued environmental protection orders but property owners are either not cleaning the properties up or cannot be found. This is an issue that is not only present in the County of Vermilion River but is widespread in rural Alberta, causing many municipalities to unnecessarily incur costs, liabilities and contaminated and derelict properties.
RMA Background:
RMA has no active resolutions directly related to this issue.
Alberta Energy and Minerals
The Ministry of Environment and Protected Areas is responsible for contamination policy, and they are providing a response to Resolution 5-26 on behalf of the Government of Alberta.
Alberta Environment and Protected Areas
The Government of Alberta (GOA) recognizes the challenges municipalities face managing contaminated and derelict properties, including impacts on communities, local economies, and municipal tax bases. While Environment and Protected Areas (EPA) do not administer funding programs for site remediation, we work with partner ministries, including Municipal Affairs, to support municipalities to address these challenges.
The GOA grounds its approach to contaminated sites in the “polluter pays” principle, ensuring those responsible are accountable for remediation. The Environmental Protection and Enhancement Act (EPEA) define the individual responsible for the substance as the owner of a substance immediately before or during the release. The owner of a substance is different than the landowner. Unless a property is formally designated as a contaminated site by the department, a property owner does not have a duty to take remedial measures for pre-existing contamination on their property.
Alberta Municipal Affairs
Resolution 5-26S on funding to clean up contaminated and derelict properties primarily falls under the responsibility of Environment and Protected Areas, and I have therefore copied my colleague, the Honourable Grant Hunter, Minister of Environment and Protected Areas, for his consideration and response. However, I would like to note that capital costs related to the demolition and removal of hazardous materials from municipally-owned buildings to address/mitigate health and safety concerns are eligible under the Local Government Fiscal Framework (LGFF) with or without a resulting capital asset. Additionally, capital expenditures associated with the remediation of municipally-owned assets are also eligible under the LGFF program, subject to program criteria. Capital costs related to private properties (not municipally-owned) are not eligible under the LGFF.
Development:
Resolution 5-26S calls attention to the remediation and reclamation issues surrounding contaminated properties, particularly former service stations. Municipalities either must incur the costs of remediating contaminated land or risk significant liabilities by having land ownership transferred to the municipality.
The response from EPA does not commit to exploring the re-implementation of a grant program to help municipalities conduct remediation activities on contaminated and derelict properties, but does reference collaborative work between GOA departments and ministries.
Although the “polluter pays” principle informs environmental reclamation and remediation policy in Alberta, the EPEA specifies in section 107(1)(cc)(v) that a person responsible for a contaminated site may include successors. Derelict and contaminated properties, especially former service stations with underground petroleum tanks, are often inherited by rural municipalities, meaning liabilities and other costs are absorbed by municipalities and/or transferred onto ratepayers.
While the response from Municipal Affairs highlights that funds through the LGFF may helpfully apply to municipally-owned infrastructure, legislative change would help address the issue of contaminated and derelict properties from the source. Targeted amendments to the Environmental Protection and Enhancement Act would enable municipalities and the GOA to hold polluters accountable and prevent the transfer of contaminated lands to municipalities.
Furthermore, a dedicated funding program would help enable municipalities and the province in providing targeted support towards the issue of contaminated and derelict properties, without relying on broader funding and grant streams that are widely applicable to other municipal concerns and costs.
RMA assigns this resolution a status of Intent Not Met and will continue advocating for the necessary funding provisions and legislative changes to help municipalities address derelict and contaminated properties.
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