Permit Ownership Change is an Important Part of M&A Process
By Cassie Lee It may have been the economic uncertainty of 2020, the emotional rollercoaster of quarantine or too much time to think and reflect on business but I had many clients reach out in the first quarter of 2021 asking for support in changing the ownership on their environmental permits. Just like when you transfer the deed to a house or a title to a car, if a commercial property changes ownership or name, all applicable permits held on the property or facility must be transferred to the new entity. Federal and state environmental regulations and statutes may also apply to the property transfer or merger process. While many permits may be held for a property, the most common Cornerstone assists with transferring include:
Air Permits
Stormwater (NPDES) Permits
Process water Discharge Permits
Wastewater Discharge Permits
Hazardous Waste Identification Numbers
Timeline and Applicability
Many times, the owner entity or individual contact person can be changed during the next reporting period for certain compliance obligations. Unfortunately, since state and local forms and applications vary, there are no hard and fast universal instructions. While a Phase I Environmental Site Assessment and any necessary environmental due diligence assessments occur prior to an ownership transfer, permit transfers are completed after closing. Experienced real estate and environmental attorneys recommend completing these transfers promptly after closing, usually within 60 days.
More Information
Feel free to contact me at clee@corner-enviro.com or (317) 501-7060 to discuss your merger and acquisition environmental, health and safety documentation needs. Cassie Lee is has spent more than 10 years serving Environmental Health and Safety Managers, Human Resource professionals, company owners and presidents navigate environmental compliance and worker safety. Prior to account management, she was in the field executing and reporting for property transactions and building health in the realm of environmental due diligence and industrial hygiene.
