PART 770—TRANSFER OF REAL PROPERTY AT DEFENSE NUCLEAR FACILITIES FOR ECONOMIC DEVELOPMENT Authority: 50 U.S.C. 2811. Source: 65 FR 10689, Feb. 29, 2000, unless otherwise noted. § 770.1 What is the purpose of this part? (a) This part establishes how DOE will transfer by sale or lease real property at closed or downsized defense nuclear facilities for economic development. (b) This part also contains the procedures for a person or entity to request indemnification for any claim that results from the release or threatened release of a hazardous substance or pollutant or contaminant as a result of DOE activities at the defense nuclear facility. [65 FR 10689, Feb. 29, 2000, as amended at 78 FR 67927, Nov. 13, 2013] § 770.2 What real property does this part cover? (a) DOE may transfer DOE-owned real property by sale or lease at closed or downsized defense nuclear facilities, for the purpose of permitting economic development. (b) DOE may transfer, by lease only, improvements at defense nuclear facilities on land withdrawn from the public domain, that are unneeded, temporarily underutilized, or underutilized, for the purpose of permitting economic development and for facilitating local reuse or redevelopment. [65 FR 10689, Feb. 29, 2000, as amended at 78 FR 67927, Nov. 13, 2013] § 770.3 What general limitations apply to this part? (a) Nothing in this part affects or modifies in any way section 120(h) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)). (b) Individual proposals for transfers of property are subject to NEPA review as implemented by 10 CFR part 1021. (c) Any indemnification agreed to by the DOE is subject to the availability of funds. § 770.4 What definitions are used in this part? Community Reuse Organization or CRO Claim Defense Nuclear Facility DOE DOE Field Office Economic Development Field Office Manager Hazardous Substance Indemnification Person or Entity Pollutant or Contaminant Real Property Release Underutilized Real Property or Temporarily Underutilized Real Property Unneeded Real Property [65 FR 10689, Feb. 29, 2000, as amended at 78 FR 67927, Nov. 13, 2013] § 770.5 How does DOE notify persons and entities that defense nuclear facility real property is available for transfer for economic development? (a) Field Office Managers annually make available to Community Reuse Organizations, local government, and Tribal nations, and other persons and entities a list of real property at defense nuclear facilities that DOE has identified as appropriate for transfer for economic development. Field Office Managers may use any effective means of publicity to notify potentially-interested persons or entities of the availability of the list. (b) Upon request, Field Office Managers provide to interested persons and entities relevant information about listed real property, including information about a property's physical condition, environmental, safety and health matters, and any restrictions or terms of transfer. [65 FR 10689, Feb. 29, 2000, as amended at 78 FR 67927, Nov. 13, 2013] § 770.6 May interested persons and entities request that real property at defense nuclear facilities be transferred for economic development? Any person or entity may request that specific real property be made available for transfer for economic development pursuant to procedures in § 770.7. A person or entity must submit such a request in writing to the Field Office Manager who is responsible for the real property. § 770.7 What procedures are to be used to transfer real property at defense nuclear facilities for economic development? (a) Proposal. (1) A proposal must include (but is not limited to): (i) A description of the real property proposed to be transferred; (ii) The intended use and duration of use of the real property, including potential users and an indication that these users are interested in participating in the economic development of the property; (iii) A description of the economic development that would be furthered by the transfer ( e.g., (iv) Information supporting the economic viability of the proposed development; and (v) The consideration offered and any financial requirements. (2) The person or entity should state in the proposal whether it is or is not requesting indemnification against claims based on the release or threatened release of a hazardous substance or pollutant or contaminant resulting from DOE activities. (3) If a proposal for transfer does not contain a statement regarding indemnification, the Field Office Manager will notify the person or entity by letter of the potential availability of indemnification under this part, and will request that the person or entity either modify the proposal to include a request for indemnification or submit a statement that it is not seeking indemnification. (b) Decision to transfer real property. (c) Congressional committee notification. [65 FR 10689, Feb. 29, 2000, as amended at 78 FR 67927, Nov. 13, 2013] § 770.8 May DOE transfer real property at defense nuclear facilities for economic development at less than fair market value? DOE generally attempts to obtain fair market value for real property transferred for economic development, but DOE may agree to sell or lease such property for less than fair market value if the statutory transfer authority used imposes no market value restriction, and: (a) The real property requires considerable infrastructure improvements to make it economically viable, or (b) A conveyance at less than market value would, in the DOE's judgment, further the public policy objectives of the laws governing the downsizing of defense nuclear facilities. § 770.9 What conditions apply to DOE indemnification of claims against a person or entity based on the release or threatened release of a hazardous substance or pollutant or contaminant attributable to DOE? (a) If an agreement for the transfer of real property for economic development contains an indemnification provision, the person or entity requesting indemnification for a particular claim must: (1) Notify the Field Office Manager in writing within two years after such claim accrues under § 770.11 of this part; (2) Furnish the Field Office Manager, or such other DOE official as the Field Office Manager designates, with evidence or proof of the claim; (3) Furnish the Field Office Manager, or such other DOE official as the Field Office Manager designates, with copies of pertinent papers ( e.g., (4) If requested by DOE, provide access to records and personnel of the person or entity for purposes of defending or settling the claim; and (5) Provide certification that the person or entity making the claim did not contribute to any such release or threatened release. (b) DOE will enter into an indemnification agreement if DOE determines that indemnification is essential for the purpose of facilitating reuse or redevelopment. (c) DOE may not indemnify any person or entity for a claim if the person or entity contributed to the release or threatened release of a hazardous substance or pollutant or contaminant that is the basis of the claim. (d) DOE may not indemnify a person or entity for a claim made under an indemnification agreement if the person or entity refuses to allow DOE to settle or defend the claim. (e) Any indemnification provided will apply to any successor, assignee, transferee, lender or lessee of the original entity that acquires ownership or control. [65 FR 10689, Feb. 29, 2000, as amended at 78 FR 67927, Nov. 13, 2013] § 770.10 When must a person or entity, who wishes to contest a DOE denial of request for indemnification of a claim, begin legal action? If DOE denies the claim, DOE must provide the person or entity with a notice of final denial of the claim by DOE by certified or registered mail. The person or entity must begin legal action within six months after the date of mailing. § 770.11 When does a claim “accrue” for purposes of notifying the Field Office Manager under § 770.9(a) of this part? For purposes of § 770.9(a) of this part, a claim “accrues” on the date on which the person asserting the claim knew, or reasonably should have known, that the injury to person or property was caused or contributed to by the release or threatened release of a hazardous substance, pollutant, or contaminant as a result of DOE activities at the defense nuclear facility on which the real property is located.