[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3020 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 3020

       To establish a program, primarily through the States and 
   municipalities, and their agents, to facilitate the environmental 
     assessment, cleanup, and reuse of abandoned or underutilized, 
 potentially contaminated properties not on, or proposed for inclusion 
                   on, the National Priorities List.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 1997

  Mr. Stokes introduced the following bill; which was referred to the 
      Committee on Commerce, and in addition to the Committees on 
 Transportation and Infrastructure and Ways and Means, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 



       To establish a program, primarily through the States and 
   municipalities, and their agents, to facilitate the environmental 
     assessment, cleanup, and reuse of abandoned or underutilized, 
 potentially contaminated properties not on, or proposed for inclusion 
                   on, the National Priorities List.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Brownfields Reclamation Act of 
1997''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Past uses of land in the United States primarily for 
        industrial and commercial purposes have created hundreds of 
        thousands of properties throughout the United States that are 
        now abandoned or substantially underutilized, and which may 
        also be environmentally contaminated.
            (2) The abandonment or substantial underutilization of the 
        properties referred to in paragraph (1) contributes 
        substantially to the economic and social distress of 
        communities affecting large portions of the population, 
        including poor, unemployed, and other disadvantaged individuals 
        and households.
            (3) The abandonment or substantial underutilization of such 
        properties impairs the ability of the Federal Government and 
        the governments of States and political subdivisions of States 
        to provide employment opportunities for, and improve the 
        economic welfare of, the people of the United States, and the 
        poor, unemployed, and disadvantaged, in particular.
            (4) The abandonment or substantial underutilization of such 
        properties results in the inefficient use of community 
        development facilities and related public services, and extends 
        conditions of blight in local communities.
            (5) The manner in which--
                    (A) the population of the United States is 
                distributed; and
                    (B) communities accommodate the growth of the 
                national economy;
        affects the employment opportunities, availability of capital 
        to provide economic opportunities, social conditions, and other 
        important conditions of each such community.
            (6) The capital available for the redevelopment or reuse of 
        brownfields properties/sites may be limited because of 
        uncertainties regarding the degree of environmental 
        contamination on the property/site, time and costs for 
        property/site assessments and cleanup, and other factors.
            (7) Citizens who live in the affected areas are 
        disproportionately impacted by economic and health risks 
        associated with these properties.
            (8) Local communities' interest have often been overlooked 
        and is an essential part of the revitalization program and the 
        planning for the reuse.
    (b) Purposes.--The purposes of this Act are to--
            (1) facilitate the environmental assessment, cleanup, and 
        reuse of abandoned or underutilized, potentially contaminated 
        properties not on, or proposed for inclusion, on the 
        Nationality Priorities List;
            (2) substantially reduce public health and environmental 
        risks associated with such properties;
            (3) expedite land assembly, site assessment, cleanup, and 
        reuse;
            (4) lower planning, environmental assessment, and cleanup 
        costs;
            (5) reduce out-year environmental risk liability for 
        developers, future property owners, lenders, environmental 
        consultants, and public entities;
            (6) help assure community acceptance of cleanup remedies 
        and proposed reuse;
            (7) promote job creation and commerce;
            (8) enhance entrepreneurial and employment opportunities 
        for residents from distressed neighborhoods proximate to such 
        properties;
            (9) preserve and enhance municipal and State tax bases;
            (10) promote land use policies and practices that lead to 
        core city and older suburban site abandonment and 
        underutilization in favor of the development of new properties 
        located at the metropolitan periphery for industrial and other 
        business purposes; and
            (11) help preserve commercial, recreational, and other 
        existing land uses at the metropolitan periphery.

     TITLE I--FEDERAL SUPPORT FOR STATE VOLUNTARY CLEANUP PROGRAMS

SEC. 101. FINDINGS.

    The Congress finds the following:
            (1) An expanding number of States have created and operate 
        voluntary cleanup programs.
            (2) State voluntary programs address contaminated 
        properties that are generally lower risk properties and are 
        ideal candidates for redevelopment.
            (3) There is also a need for a Federal program to support, 
        facilitate, and sustain the efforts of local municipalities, 
        nongovernmental agencies, and tribes to assess, clean up, 
        redevelop, and reuse abandoned, idle and/or under used 
        industrial and commercial properties in ways that protect the 
        public's health and the environment.

SEC. 102. DEFINITIONS.

    For purposes of this title:
            (1) Brownfields property/site.--The term ``brownfields'' 
        means abandoned, idled, or under-used industrial and commercial 
        properties/sites where expansion or redevelopment is 
complicated by real or perceived environmental contamination and that 
were formerly used primarily for industrial or commercial purposes--
                    (A) that are no longer operating or are so 
                substantially underutilized as to provide only marginal 
                employment opportunities; and
                    (B) that may have real or perceived conditions, 
                constraints, or other circumstances that are 
                detrimental to the public's health or the environment.
            (2) Distressed community.--The term ``distressed 
        community'' has the same meaning as provided for such term by 
        the United States Department of Housing and Urban Development.
            (3) Preliminary assessment (pa).--The term ``preliminary 
        assessment'' means review of existing environmental and health 
        risk information and an off-site reconnaissance, if 
        appropriate, to determine if a release may require additional 
        investigation or action. A preliminary assessment may include 
        an on-site reconnaissance, if appropriate.
            (4) Site inspection.--The term ``site inspection'' means an 
        on-site investigation to determine whether there is a release 
        or potential release and the nature of the associated threats. 
        The purpose is to augment the data collected in the preliminary 
        assessment and to generate, if necessary, sampling and other 
        field data to determine, if further action or investigation is 
        appropriate.
            (5) Public health assessment.--The term ``Public Health 
        Assessment'' means the evaluation of data and information on 
        the release of hazardous substances into the environment in 
        order to assess any current or future impact on public health, 
        develop health advisories, or other recommendations, and 
        identify studies or actions needed to evaluate and mitigate or 
        prevent human effects.

SEC. 103. VOLUNTARY CLEANUP PROGRAM SUPPORTS.

    (a) In General.--The Administrator of the Environmental Protection 
Agency shall facilitate and sustain State voluntary cleanup programs by 
carrying out the following actions:
            (1) The Administrator shall encourage the State and tribal 
        governments to formulate cleanup, redevelopment, and reuse 
        programs that--
                    (A) require leadership by local municipalities;
                    (B) provide opportunities for meaningful community 
                involvement;
                    (C) have adequate resources to ensure that cleanup, 
                redevelopment, and reuse actions are conducted in an 
                appropriate and timely manner, and that technical 
                assistance, where appropriate, is available from State 
                environmental and public health agencies responsible 
                for the preliminary assessment, site inspection, and 
                public health assessment;
                    (D) provide mechanisms for written approval of 
                response action plans and a certification or similar 
                documentation indicating that the response actions are 
                complete;
                    (E) provide adequate oversight to ensure that 
                response action is protective of human health and the 
                environment, consistent with applicable Federal and 
                State law, and are conducted in accordance with an 
                appropriate response action plan; and
                    (F) show the capability, through enforcement or 
                other authorities, of ensuring completion of response 
                actions if the parties are conducting the response 
                action.
            (2) The Administrator shall encourage State programs to 
        establish an effective mechanism for assuring community 
        participation, especially of residents and business owners and 
        local health authorities near brownfields properties/sites, in 
        broad decisions regarding brownfields properties, cleanup, 
        redevelopment, and reuse.
            (3) The Administrator shall provide funds to States and 
        tribes with cleanup programs based on State needs and the 
        availability of funds to help pay for site inventory, primary 
        assessment, property/site inspection, and public health 
        assessment by local municipalities and nongovernmental 
        agencies.
            (4) The Administrator shall provide grant funds to States 
        and tribes for local municipalities, other local government 
        entities, or nongovernmental organizations to allow them to 
        establish revolving loan funds.
            (5) The Administrator shall provide technical assistance to 
        States and tribes, local municipalities, other local 
        governmental entities, and nongovernmental organizations in 
        designing, implementing, and evaluating cleanup, redevelopment, 
        and reuse programs, especially States receiving grants under 
        paragraphs (3) and (4). The Agency for Toxic Substances and 
        Disease Registry shall provide technical assistance for public 
        health assessments to States and tribes, local municipalities, 
        other governmental entities, and nongovernmental organizations 
        engaged in designing and implementing State voluntary cleanup 
        programs, especially States receiving grant funds under 
        paragraphs (3) and (4).
    (b) Purpose.--The purpose of the programs authorized by this 
section is to facilitate and sustain the assessment, cleanup, 
redevelopment, and reuse of brownfields properties.
    (c) Allocation of Funds.--The Administrator shall allocate funds 
made available pursuant to this title among the States. In allocating 
the funds, the Administrator shall take into account--
            (1) local private/public partnership targeting cleanup, 
        redevelopment, and reuse of brownfields properties;
            (2) evidence of capacity to complete primary assessment 
        property/site inspections and public health assessment; and
            (3) evidence of regional cooperation among neighboring 
        communities to solve these problems and to improve coordination 
        in the development and implementation of future land use and 
        development plans.
    (d) Scope of Funding Programs.--
            (1) Property/site inventory grants to states.--
                    (A) In general.--Competitive grants shall be made 
                to States and tribes which would provide funds to local 
                municipalities, other governmental entities, and 
                nongovernmental organizations based on paragraph (1), 
                (2), or (3) of subsection (c).
                    (B) Grant application.--In an application for a 
                grant under paragraph (1), a State shall submit each of 
                the following:
                            (i) A summary description of its cleanup, 
                        redevelopment, and reuse.
                            (ii) A detailed description of the 
                        brownfields property history and intended use.
                            (iii) The nature and extent of the local 
                        capacity and description of the technical 
                        assistance available to local municipalities, 
                        other governmental entities, and 
                        nongovernmental organizations.
                    (C) State and tribe granting procedure.--Site 
                Inventory Grants to local municipalities, other 
                governmental entities, and nongovernmental 
                organizations will be selected competitively based upon 
                the following criteria:
                            (i) Proximity of properties/sites to 
                        distressed communities.
                            (ii) Cost-effectiveness and timeliness of 
                        cleanup, redevelopment, and reuse plan.
                            (iii) Size of State match, if greater than 
                        50 percent.
            (2) Property/site cleanup revolving loan fund grants to 
        states.--
                    (A) In general.--The size and terms of grants shall 
                be flexible and subject to negotiations within broad 
                statutory and regulatory guidelines. States loans to 
                local municipalities shall be matched dollar for dollar 
                by local jurisdictions and private contributors.
                    (B) Loan application.--In an application for a 
                grant under paragraph (1), a State shall submit each of 
                the following:
                            (i) A summary description of its 
                        Brownfields Redevelopment Plan.
                            (ii) A detailed description of its site 
                        cleanup program component, including the nature 
                        and extent of technical assistance being 
                        provided to municipalities on property/site 
                        cleanup.
                            (iii) A detailed description of the 
                        technical assistance for development of the 
                        public health assessment plan.
                    (C) Local match.--The municipality shall match the 
                State loan amount on a dollar for dollar basis, or 
                greater.
                    (D) Loan amounts.--The loan amount awarded to a 
                municipality shall not exceed the maximum amount of 
                $500,000.

 TITLE II--TAX INCENTIVE FOR THE ASSESSMENT, CLEANUP, AND BROWNFIELDS 
                  PROPERTY/SITE ECONOMIC REDEVELOPMENT

SEC. 201. FINDINGS.

    The Congress finds that--
            (1) gaps in total project costs between the redevelopment 
        of brownfields properties and the development of greenfield 
        properties, caused mainly by the need for environmental 
        assessment and cleanup of brownfields properties before 
        development, are primary deterrents to property/site 
        reclamation and reuse; and
            (2) there is a need for a Federal program to provide an 
        incentive spurring private reinvestment in the reclamation and 
        reuse of brownfields.

SEC. 202. DEFINITION.

    As used in this title the term ``total project costs'' is defined 
as consisting of all costs paid by the owner or developer that are 
related to property/site assessment, cleanup, and project development.

SEC. 203. FEDERAL TAX INCENTIVE.

    (a) In General.--The Administrator of the Environmental Protection 
Agency shall work with the Comptroller of the Currency to revise the 
Community Reinvestment Act (CRA) Credit to include giving credit to 
banks who provide loans for the assessment, cleanup or redevelopment of 
brownfields properties/sites.
    (b) Purpose.--The tax incentive allows the use of the tax code to 
encourage property/site reuse by permitting certain remediation costs 
to be deductible, if incurred with respect to a qualified site, up to 
the amount of deductions taken with respect to the property; and 
environmental cleanup expenses would not be subject to deduction 
recapture as ordinary income, but such expenditure shall be treated as 
a deduction for depreciation.
    (c) Allocation of Federal Tax Incentives.--The Administrator of the 
Environmental Protection Agency shall allocate tax incentives made 
available to this title among the States with voluntary cleanup 
programs. In allocating the tax incentives, the Administrator shall 
take into account:
            (1) The relative number of non-National Priority List 
        brownfields properties/sites in the State, with added emphasis 
        on properties located in distressed communities.
            (2) The relative commitment of the State and local 
        municipal governments to support the reclamation and reuse of 
        nonpriority list brownfields properties.
            (3) Evidence of a commitment by the private sector to 
        redevelopment in distressed communities.
    (d) Competitive Selection Procedure.--Suballocation of Federal tax 
incentives by State voluntary cleanup programs to developers (or 
investor pools) shall be made on the basis of an open and selective 
competitive selection procedure administered by the State.
    (e) Maximum Award of Tax Incentives.--The maximum amount of tax 
incentives awarded to a brownfields property/site owner/developer will 
be limited to 50 percent or less of the total project costs, and no 
more than the difference between total project costs of the brownfields 
property/site and comparable costs for a greenfield property/site 
located at the market periphery (or a clean property/site within the 
same jurisdiction as the brownfields site) as determined by the State 
administering agency in consultation with the owner/developer of the 
brownfields property/site.
    (f) State Tax Incentives.--Participating States may offer 
complementary tax incentives for property/site remediation and reuse.

       TITLE III--LIMITING OUT-YEAR ENVIRONMENTAL RISK LIABILITY

SEC. 301. FINDINGS.

    The Congress finds that--
            (1) the burdens associated with the risks of out-year 
        environmental liability is a factor that deters the development 
        of brownfields properties/sites. The risks and benefits of 
        brownfields development must be balanced between the citizens 
        of the affected community, developers, lenders, and insurers; 
        and
            (2) there is a need to substantially reduce the risks 
        associated with the development of brownfields properties for 
        all constituencies (citizens in the affected communities, 
        owners, developers, lenders, and insurers) (relating to out-
        year environmental costs).

SEC. 302. DEFINITION.

    As used in this title, the term ``out-year environmental risk 
liability'' means liability regarding an environmental or public health 
hazard not discovered during property/site cleanup assessment or 
cleanup of a brownfields property/site.

SEC. 303. SCOPE OF PROGRAM.

    (a) Prospective Purchaser Agreement.--In the case of a prospective 
purchaser of a brownfields property/site, the Administrator of the 
Environmental Protection Agency may consider a prospective purchaser 
agreement which releases the prospective purchaser from liability to 
the United States, when appropriate and if there are substantial 
benefits to the government and the community (such as through job 
creation or productive use of the abandoned property) and if the 
prospective purchaser satisfies other criteria (such as (1) an EPA 
action at the facility has been taken, is ongoing, or is anticipated to 
be undertaken by the Agency, (2) the Agency should receive a 
substantial benefit either in the form of a direct benefit for cleanup, 
or as an indirect public benefit in combination with a reduced direct 
benefit to EPA, (3) the continued operation of the facility or new 
property/site development, with the exercise of due care, will not 
aggravate or contribute to the existing contamination or interfere with 
EPA's response action, (4) the continued operation or new development 
of the property will not pose health risks to the community and those 
persons likely to be present at the property/site, and (5) the 
prospective purchaser is financially viable).
    (b) Insurance Mechanisms.--The Administrator of the Environmental 
Protection Agency shall work with the private insurance industry to 
determine the feasibility of three basic insurance mechanisms for 
addressing the issue of out-year environmental risk liability--
            (1) a wholly private insurance program;
            (2) a Federal insurance program; or
            (3) a joint insurance program involving risks shared 
        between the two parties;
and make a recommendation to the Administrator, including in the case 
that either a program under paragraph (2) or (3) is selected, a 
recommended amount of capitalization required to create the insurance 
program, and including any other recommendations, as appropriate. The 
Administrator shall recognize State, local, and tribe land use 
controls, such as zoning ordinances or deed restrictions, as means to 
ensure future property/site control and limit the potential for future 
environmental contamination.

 TITLE IV--ENVIRONMENTAL ASSESSMENT AND CLEANUP RESEARCH, DEVELOPMENT, 
                             AND DEPLOYMENT

SEC. 401. FINDINGS.

    The Congress finds that--
            (1) the costs and time associated with brownfields 
        property/site assessment, and property/site cleanup are major 
        deterrents to reclamation, redevelopment, and reuse; and
            (2) there is a need for the Federal Government to fund 
        innovative approaches to public health assessment, property/
        site inspection, and cleanup which drives down costs and 
        expedites assessment and cleanup.

SEC. 402. SCOPE OF PROGRAM.

    (a) In General.--The Administrator of the Environmental Protection 
Agency shall make project grants available to local technology centers 
and universities to research, develop, and deploy innovative property/
site assessment, public health assessment, and cleanup technologies, 
procedures, and related information.
    (b) Grant Application.--The grant application will conform with 
criteria established by the Administrator.
    (c) Grant Awards.--The maximum award shall be $250,000.

       TITLE V--ENCOURAGING PUBLIC-PRIVATE-COMMUNITY PARTNERSHIPS

SEC. 501. FINDINGS.

    The Congress finds that--
            (1) many brownfields properties/sites exist in areas 
        characterized by physical decline, high unemployment and 
        poverty rates, and low educational attainment;
            (2) in terms of benefits, brownfields cleanup immediately 
        improves health and quality of life to the extent that 
        environmental hazards are removed;
            (3) residents surrounding brownfields properties both 
        directly (e.g., from employment and entrepreneurial 
        opportunities) and indirectly (from increased city revenues 
        supporting neighborhood services); and
            (4) the Federal Government should encourage and support 
        public-private-community partnerships in the assessment, 
        cleanup, redevelopment, and reuse of brownfields properties.

SEC. 502. DEFINITION.

    As used in this title, the term ``public-private-community 
partnerships'' means partnerships undertaken between layers of 
Government, private and nonprofit entities, and community organizations 
involved in some aspect of brownfields planning, assessment, 
reclamation, and reuse.

SEC. 503. SCOPE OF PROGRAM.

    (a) In General.--The Administrator shall--
            (1) require community consultation, including households 
        and business owners from the immediate neighborhood, local 
        health authorities, on the extent of required cleanup in 
        relationship to ultimate reuse and reuse impact on the 
        neighborhood and larger community;
            (2) sustain and/or expand Federal funding for training for 
        property/site environmental assessment and cleanup; these 
        programs provide job training and employment opportunities for 
        core area residents;
            (3) sustain and/or expand Federal funding for technical 
        assistance and research in brownfields cleanup and 
        redevelopment strategies, including technical assistance in 
        packaging project financing; and
            (4) shall assist the Administrator, Agency for Toxic 
        Substance and Disease Registry, to provide technical assistance 
        for public health assessments to local health authorities and 
        community-based organizations.
    (b) Grant Awards and Selection Criteria.--(1) To support activity 
under subsection (a)(2), the Administrator shall make up to 20 grants 
on an annual basis to 501(c)(3) organizations and private sector 
organizations, with a maximum grant per award of $150,000, for up to 3 
years. Selection criteria for evaluating grant applications are--
            (A) quality of proposed training; and
            (B) training experience of grantees with local community 
        residents living near brownfields properties.
    (2) To support activity under subsection (a)(3), $1,000,000 in 
additional appropriations is authorized to support the work of the 
Environmental Protection Agency's Environmental Finance Centers for 
each year between 1998 and 2002.

                  TITLE VI--ANNUAL PROGRAM EVALUATION

SEC. 601. FINDINGS.

    The Congress finds that--
            (1) there is a need to evaluate the Act's provisions on an 
        annual basis; and
            (2) to fully review and provide an annual report on the 
        Act's implementation.

SEC. 602. SUNSET PROVISION.

    The provisions of this Act shall cease to have any force and effect 
on the date 5 years after enactment.

SEC. 603. SCOPE OF ANNUAL EVALUATION.

    The Administrator of the Environmental Protection Agency shall 
provide a written report to Congress which describes program activity 
during each year, including the identification of major achievements of 
programs established under this Act affecting Federal, State, or local 
performance.

SEC. 604. REPORT TO CONGRESS.

    The Administrator of the Environmental Protection Agency shall 
submit reports evaluating the impact and cost-effectiveness of the 
provisions of this Act for which they are responsible 180 days before 
the sunset date set forth in section 602.
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