A CREC is a Controlled Recognized Environmental Condition, a subset of the traditional REC. CREC was developed to address the controlled presence of potential hazardous substances or petroleum products, as defined by the local environmental regulatory agency.
- Site A had a Leaking Underground Storage Tank (LUST) incident which was cleaned up to the satisfaction of the IEPA, with a land use restriction (eg: could only be used for commercial-industrial use). This would be considered a CREC since there are still hazardous substances and/or petroleum products present on the property, however the property has been deemed safe for commercial or industrial use (though not residential use).
- Site B was a former industrial operation that went through the Site Remediation Program (SRP) cleanup process. As part of the No Further Remediation (NFR) letter, the contaminated part of the property must remain capped by an engineered barrier. This would be considered a CREC since there are still hazardous substances present on the property, however they have been controlled by the engineered barrier.
Though the CREC is considered a REC, most CRECs would not be a major concern for a buyer or their lender. This language was developed to clarify situations such as these in order to give purchasers and lenders greater peace of mind about these sites.Tags: LUST, No Further Remediation (NFR) Letter, SRP