Certificate of compliance (contaminated sites)

In a British Columbia deal, a certificate of compliance is a document a buyer can ask about when a site once had contamination. The Environmental Management Act lets a director, in accordance with the regulations, issue one for a contaminated site. A buyer may meet the term in the environmental part of due diligence, beside the site investigation reports and the environmental site assessment.

What the Act requires before one is issued

Under section 53(3), the site must have been remediated in accordance with the prescribed numerical or risk-based standards, any orders under the Act, any remediation plan the director approved and any requirements the director imposed. The section sets further conditions, including a plan for substances that remain on the site and security for managing contamination. A director may rescind a certificate in the circumstances listed in section 53(5), which include failure to comply with conditions attached to it.

What to ask

• Does the certificate cover the whole site or only part of it? Section 53(6) allows one for part of a site.
• What conditions are attached, and who must keep meeting them after closing?
• Does a monitoring plan for remaining substances apply, and who holds the records?

How other provinces differ

Alberta’s Environmental Protection and Enhancement Act uses a remediation certificate, which the Director or an inspector may issue or refuse and may make subject to terms and conditions. For a site in another province, confirm which law and regulator apply. For the wider checklist, see what environmental checks to do before buying.