Brownfields_Content Page_Environmental liability

State Environmental liability

When a discharge of a hazardous substance to the environment occurs, the person who caused the discharge or owns the property where the discharge occurred is required to report it to the Wisconsin Department of Natural Resources (DNR), investigate how far the contamination spread and restore the environment.

However, state statutes provide certain liability exemptions for local governments, lenders and voluntary parties. In addition, property owners whose property was affected from contamination that moved onto their property from another location may qualify for a state environmental liability exemption. Additionally, persons who lease contaminated property may not be liable for contamination if they did not cause or exacerbate the contamination.

Liability Clarification Letters

The DNR Can Provide Clarification Of Your Environmental Liability

The DNR can provide written clarification of your environmental liability. Any individual, local government or business can submit a request to the DNR to provide a letter that clarifies their liability for environmental contamination at a property.

A liability clarification letter from the DNR can help property owners, potential purchasers, lenders, neighbors, tenants or others complete real estate, business or financial transactions. It can also ease liability concerns by ensuring that parties understand their responsibilities during redevelopment.

These letters provide property-specific responses to questions about state environmental liability. Common questions the DNR receives regarding environmental liability include:

  • What is my state environmental liability if I purchase (or lease) the property?
  • If my neighbors won’t allow me to access their property so I may investigate or clean up contamination that I’m responsible for, what is my state environmental liability?
  • What is my liability if a previous owner caused the contamination and is conducting the cleanup?
  • What is my environmental liability/responsibility if I redevelop or perform construction activities on a contaminated property?
  • What steps do I need to take to avoid future liability for contamination on the property I am purchasing or leasing?

To request a liability clarification letter from the DNR, submit the required fee and use the Technical Assistance, Environmental Liability Clarification or Post-Closure Modification Request (Form 4400-237). The form includes instructions on materials to include with each request. Submit the form and attachments using the RR Submittal Portal.

Wisconsin Environmental Liability Exemptions

Chapter 292, Wis. Stats, establishes certain exemptions from environmental liability. These are available to the following groups:

  • Local governments may qualify for a state exemption from environmental liability for contaminated properties that they acquire through involuntary measures. This statutory exemption does not require DNR approval.
  • Lenders may qualify for a state exemption from environmental liability for normal lending activities, acquisition of property through foreclosure, inspecting property, enforcing a security interest in personal property and fixtures or acting as a representative. Most of these exemptions do not require DNR approval.
  • Property owners impacted by contamination that did not originate on their property may qualify for state exemption from environmental liability.
  • Persons who receive DNR approval of their investigation and cleanup who enter and complete the Voluntary Party Liability Exemption (VPLE) program.

Federal Environmental Liability

Federal law regarding contaminated property falls into several areas, including Superfund, brownfields, hazardous wastes, underground storage tanks and oil spills. For more information, please see the U.S. Environmental Protection Agency's Addressing Liability Concerns to Support Cleanup and Reuse of Contaminated Lands webpage.

For more information, contact