Reclamation and restoration of contaminated sites

Guarantees Associated with Contracts
Remediation and Restoration of Contaminated Sites

General Overview
The Environmental Code, significantly modifying the previous regulations established by Ministerial Decree No. 471/1999, has governed matters related to contaminated sites concerning the determination of acceptable quantitative limits for soil and water contamination, the procedures to be adopted for sampling and analysis, and for safety, remediation, and environmental restoration interventions of contaminated sites.

Remediation operations must be carried out in accordance with the European principle of “the polluter pays.”

The procedure outlined in Article 242 is particularly detailed. It stipulates that risk analysis plays a central role in defining remediation objectives compared to a table-based approach. The responsible party is initially required to adopt necessary preventive measures and must subsequently prepare a preliminary investigation concerning the parameters involved in the contamination, presenting a characterization plan for the area to the competent authorities.

If contamination persists, a project related to the remediation interventions is submitted to the Region. With the approval of the project, timelines and methods for implementation are established. If the Public Administration, in the absence of a report, verifies the contamination, the remediation interventions constitute a real burden on contaminated sites (Article 253), and the incurred expenses are secured by a special real estate privilege, enforceable even to the detriment of any rights acquired by third parties.

Content and Scope of the Guarantee
Upon the approval by the Region of the operational project for remediation proposed by the responsible party, the timelines and methods for executing the necessary interventions are established, and the amount of financial guarantees is set, not exceeding 50% of the estimated cost. These guarantees must be provided in favor of the Region for the proper execution and completion of the interventions (Article 242, paragraph 7).

A specific certification, prepared by the regional agency for environmental protection competent in the area upon the completion of operations, serves as the basis for the release of financial guarantees (Article 248).

Type of Guarantee
Contract guarantees

Group
Similar to those for contracts.

Claim Payment
Payment upon simple request, waiving the right to prior recourse against the principal debtor.
Sometimes without raising objections.
Legal References
Title V of Part Four of Legislative Decree No. 152 of April 3, 2005, Article 210.

Usual Contractor
Company authorized to carry out remediation operations.

Usual Beneficiary
Local Public Administrations (usually Regions or Metropolitan Cities).

Typical Initial Duration
The policy typically has a duration equal to the period stipulated for the intervention, with annual extensions up to the total period required for “monitoring” (sometimes even multi-year).

Extensions
Extensions are provided.

Withdrawal
Not provided.

Typically Requested Special Clauses
Specific text requested by the relevant beneficiary from time to time.

Specific Documentation to Acquire
Authorization document for the remediation intervention with the quantification of the guarantee.