[Congressional Record Volume 146, Number 38 (Thursday, March 30, 2000)]
[Senate]
[Pages S1993-S1994]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. L. CHAFEE:
  S. 2335. A bill to authorize the Secretary of the Army to carry out a 
program to provide assistance in the remediation and restoration of 
brownfields, and for other purposes; to the Committee on Environment 
and Public Works.


         state and local brownfields revitalization act of 2000

 Mr. L. CHAFEE. Mr. President, today I am introducing a pair of 
bills to enhance the pace and effectiveness of brownfields 
redevelopment throughout the country. The first bill, entitled the 
``State and Local Brownfields Revitalization Act of 2000'', will 
authorize the U.S. Army Corps of Engineers to remediate and restore 
brownfield sites owned by state and local governments. The second bill, 
S. 2334, which I introduce with Senator Jeffords, will expand coverage 
of the federal brownfields tax incentive and extend it for an 
additional six years. I also am adding my name as a co-sponsor to the 
``Small Business Brownfields Redevelopment Act of 1999'', S. 1408, 
authored by Senator Jeffords. Along with these initiatives, I am 
announcing my intention to develop broader legislation to remove 
barriers to the redevelopment and restoration of brownfields.
  Brownfields are abandoned, idled, or under-used commercial or 
industrial properties at which development or expansion is hindered by 
the presence, or potential presence of hazardous substantives. 
Countless numbers of brownfield sites blight our communities, pose 
health and environmental hazards, erode our cities' tax base, and 
contribute to urban sprawl. In fact, in 210 cities surveyed by the U.S. 
Conference of Mayors, an estimated 21,000 brownfields sites covering 
more than 81,000 acres were identified. But, we stand to reap enormous 
economic, environmental, and social benefits with the successful 
redevelopment of brownfield sites. The redevelopment of brownfields 
capitalizes on existing infrastructure, creates a robust tax base for 
local governments, attracts new businesses and jobs, mitigates urban 
sprawl, and reduces the environmental and health risks to communities.
  Yet, many of these contaminated sites sit abandoned because of the 
presence of hazardous substances. Developers that would otherwise 
restore these properties choose not to for fear of becoming tangled in 
liability under the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980, commonly referred to as Superfund. I believe 
it is critical that Congress take action to ensure that the federal 
government provides funding and incentives to recycle our nation's 
contaminated land, remove barriers to development, and ally perceived 
fears associated with Superfund liability. The bills I am introducing 
today are a step toward resolving those concerns.
  Let me take a moment to take a moment to explain each one.
  The first bill I am introducing today is the ``State and Local 
Brownfields Revitalization Act of 2000.'' This legislation would 
authorize the U.S. Army Corps of Engineers to establish and implement a 
program to assist state, regional, and local governments in the 
remediation and restoration of brownfields sites tied to the quality, 
conservation, and sustainable use of the nation's waterways and 
watershed ecosystems.
  Additionally, this bill would provide authority to the Corps to 
conduct site characterization and planning, site design and 
construction, environmental restoration, and preparation for site 
development on brownfields sites owned by state, regional, or local 
governments. When selecting these projects, the Corps must consider 
whether the project would improve public health and safety, encourage 
sustainable economic and environmental redevelopment in areas serviced 
by existing infrasture, and help cure or expand parks, greenways, or 
other recreational property.
  Activities by the Corps would be contingent upon a 35 percent match 
in cash or in-kind contribution by the state, regional, or local 
government. The bill limits the Corps to spending $3,250,000 on an 
individual site. However, the Secretary of the Army could increase the 
cap to $5,000,000 if he determines that the size of the site or the 
level of contamination warrants additional funds. To carry out the 
provisions of this Act, the bill authorizes annual appropriations of 
$100 million for fiscal years 2001 through 2005.
  I believe this bill would make a significant, positive contribution 
to the revitalization of our communities. Recently, I toured two sites 
along the banks of the Woonasquatucket River in Providence. At the turn 
of the century these sites housed a woollen mill and a lace and braid 
factory. They have been abandoned, but debris and contamination soils 
remain. They also threaten the river and the children that inevitably 
explore these abandoned properties. City officials and local residents 
have a wonderful vision for the cleanup of these sites that would 
create a bike path and a park along the Woonasquatucket River. This 
effort is integral to the success of the Woonasquatucket River Greenway 
Project, a public-private initiative to increase recreational and green 
space in low-income neighborhoods, thereby promoting economic 
reinvestment in the area.
  Despite selection of this project as a federal Brownfields Showcase 
Community and contributions totaling over $1 million by the City and 
State, the community is unable to complete remediation activities. And, 
because the area is intended for use as a local park and will not 
generate an income stream, the community cannot utilize a loan. In the 
meantime, the area remains an eyesore. This bill would revitalize the 
neighborhoods surrounding the Woonasquatucket River, as well as many 
other projects around the country.
  The Army Corps of Engineers is not new to brownfields redevelopment. 
The Corps currently conducts pre-remedial activities at brownfields 
sites for EPA on a fee-for-service basis. However, current law 
precludes it from carrying out the necessary cleanup activities. In 
addition, the Corps is limited to conducting activities for which EPA 
will provide reimbursement. I believe that EPA's brownfields budget is 
inadequate

[[Page S1994]]

to complete the task at hand. My bill will address these deficiencies 
and spur revitalization at many sites.
  The second bill (S. 2334), which I am introducing with Senator 
Jeffords addresses two key deficiencies in current law. It would expand 
the definition of a targeted area to include any brownfield site 
located within a metropolitan statistical area making the current tax 
incentives more useful; and extending it for an additional six years.
  Under current law, parties that remediate brownfields sites in 
targeted areas are eligible to expense, or deduct, the costs of 
environmental restoration in the year the costs are incurred. A 
targeted area is any population census tract with a poverty rate of 
more than 20 percent, any empowerment zone or enterprise community, or 
any site deemed to an EPA pilot project before February 1, 1997. This 
tax incentive is scheduled to expire at the end of 2001.
  The vast underutilization of the existing tax incentive highlights 
the need for a re-examination of the goals we are pursuing. As chairman 
of the Environment and Public Works Subcommittee on Superfund, Waste 
Control, and Risk Assessment, I have heard complaints that parties 
eager to utilize the existing federal tax incentive have not done so 
for one of two reasons. The first reason is the limitation on the areas 
covered by the incentive. Unless the project constitutes an early EPA 
pilot project or lies within an impoverished community, the tax 
incentive does not apply. In addition, the tax incentive expires 
frequently, which creates uncertainty.
  Let me provide an example. Let us assume that a party is willing to 
purchase contaminated land and clean it up in order to redevelop the 
property. However, a party may be unable to make the acquisition and 
complete the remediation within one calendar year. Uncertain as to 
whether the tax incentive will be reinstated in the next year may 
discourage the party from taking on the risk. To address this issue, 
the bill extends the tax incentive until the end of calendar year 2007. 
I believe that this will provide certainty to those who see the wisdom 
in redeveloping these untapped properties of value.
  In addition, I am pleased to add my name as co-sponsor to the Small 
Business Brownfield Redevelopment Act of 1999 (S. 1408) offered by 
Senators Jeffords, Moynihan, Schumer, Lautenberg, Lieberman, and Leahy. 
This bill is an important component of my vision for brownfields 
redevelopment throughout the nation. S. 1408 provides $50 million to 
the Small Business Administration to finance projects that assist 
qualified small businesses, or prospective small business owners, in 
carrying out site assessment and cleanup activities at brownfields 
sites. I believe that this bill will assist small businesses in Rhode 
Island and the country cleanup brownfield sites.
  In conclusion, I would like to emphasize that brownfields are a 
critical national issue, because abandoned or underused properties dot 
every community, large and small. The bills I have introduced and co-
sponsored today are critical components of the bigger picture, but we 
can do more. To complement these initiatives, I am announcing today 
that I intend to work on legislation to provide funding through the 
U.S. Environmental Protection Agency for assessment and cleanup of 
brownfields, and clarify liability to encourage the transfer of 
property. I would also like to provide assurances that while we work to 
facilitate state cleanup programs, EPA will take action at a 
brownfields site when necessary to protect human health and the 
environment.
  As I have studied CERCLA and Rhode Island's Superfund sites, I have 
heard from many people of all political stripes that brownfields 
legislation can be achieved on a bipartisan basis. They have urged us 
to address the issues as soon as possible. I have visited brownfields 
sites in Rhode Island and have seen the potential that exists to 
revitalize our communities if we can provide sufficient funding, 
clarify liability issues, and remove other barriers to redevelopment. I 
am hopeful that if we work in a bipartisan manner, we will be 
successful in passing brownfields legislation that the President can 
sign this year.
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