[House Report 107-448]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-448

======================================================================



 
               BROWNFIELDS REDEVELOPMENT ENHANCEMENT ACT

                                _______
                                

  May 8, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 2941]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 2941) to facilitate the provision of assistance 
by the Department of Housing and Urban Development for the 
cleanup and economic redevelopment of brownfields, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     6
Committee Oversight Findings.....................................     6
Performance Goals and Objectives.................................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     9
Constitutional Authority Statement...............................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    10
Additional and Dissenting Views..................................    13

                               Amendment


    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Brownfields Redevelopment Enhancement 
Act''.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress finds that--
          (1) returning the Nation's brownfield sites to productive 
        economic use could generate more that 550,000 additional jobs 
        and up to $2,400,000,000 in new tax revenues for cities and 
        towns;
          (2) redevelopment of brownfield sites and reuse of 
        infrastructure at such sites will protect natural resources and 
        open spaces;
          (3) lack of funding for redevelopment is a primary obstacle 
        impeding the reuse of brownfield sites;
          (4) the Department of Housing and Urban Development is the 
        agency of the Federal Government that is principally 
        responsible for supporting community development and 
        encouraging productive land use in urban areas of the United 
        States;
          (5) grants under the Brownfields Economic Development 
        Initiative of the Department of Housing and Urban Development 
        provide local governments with a flexible source of funding to 
        pursue brownfields redevelopment through land acquisition, site 
        preparation, economic development, and other activities;
          (6) to be eligible for such grant funds, a community must be 
        willing to pledge community development block grant funds as 
        partial collateral for a loan guarantee under section 108 of 
        the Housing and Community Development Act of 1974, and this 
        requirement is a barrier to many local communities that are 
        unable or unwilling to pledge such block grant funds as 
        collateral; and
          (7) by de-linking grants for brownfields development from 
        section 108 community development loan guarantees and the 
        related pledge of community development block grant funds, more 
        communities will have access to funding for redevelopment of 
        brownfield sites.
  (b) Purposes.--The purpose of this Act is to provide cities and towns 
with more flexibility for brownfields development, increased 
accessibility to brownfields redevelopment funds, and greater capacity 
to coordinate and collaborate with other government agencies--
          (1) by providing additional incentives to invest in the 
        cleanup and development of brownfield sites; and
          (2) by de-linking grants for brownfields development from 
        community development loan guarantees and the related pledge of 
        community development block grant funds.

SEC. 3. BROWNFIELDS DEVELOPMENT INITIATIVE.

  Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended by adding at the end the following new 
section:

``SEC. 123. BROWNFIELDS DEVELOPMENT INITIATIVE.

  ``(a) In General.--The Secretary may make grants under this section, 
on a competitive basis as specified in section 102 of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545), only 
to eligible public entities (as such term is defined in section 108(o) 
of this title) and Indian tribes for carrying out projects and 
activities to assist the environmental cleanup and development of 
brownfield sites.
  ``(b) Use of Grant Amounts.--Amounts from grants under this section 
shall--
          ``(1) be used, as provided in subsection (a) of this section, 
        only for activities specified in section 108(a); and
          ``(2) be subject to the same requirements that, under section 
        101(c) and paragraphs (2) and (3) of section 104(b), apply to 
        grants under section 106.
  ``(c) Availability of Assistance.--The Secretary shall not require, 
for eligibility for a grant under this section, that such grant amounts 
be used only in connection or conjunction with projects and activities 
assisted with a loan guaranteed under section 108.
  ``(d) Applications.--Applications for assistance under this section 
shall be in the form and in accordance with procedures as shall be 
established by the Secretary.
  ``(e) Selection Criteria and Leveraging.--The Secretary shall 
establish criteria for awarding grants under this section, which may 
include the extent to which the applicant has obtained other Federal, 
State, local, or private funds for the projects and activities to be 
assisted with grant amounts and such other criteria as the Secretary 
considers appropriate. Such criteria shall include consideration of the 
appropriateness of the extent of financial leveraging involved in the 
projects and activities to be funded with the grant amounts.
  ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under this section such sums as may be 
necessary for each of fiscal years 2003, 2004, 2005, 2006, and 2007.''.

SEC. 4. CLARIFICATION OF BROWNFIELDS REDEVELOPMENT AS ELIGIBLE CDBG 
                    ACTIVITY.

  (a) Technical Correction.--The penultimate proviso of the first 
undesignated paragraph of the item relating to ``Community Development 
Block Grants Fund'' in title II of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1997 (Public Law 104-204; 110 Stat. 2887) shall be 
treated as having amended section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)) to read as such section was 
in effect on September 30, 1995.
  (b) Brownfields Redevelopment activities.--Section 105(a) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)), as 
in effect pursuant to subsection (a) of this section, is amended--
          (1) in paragraph (24), by striking ``and'' at the end;
          (2) in paragraph (25), by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(26) environmental cleanup and economic development 
        activities related to brownfield projects in conjunction with 
        the appropriate environmental regulatory agencies.''.

SEC. 5. PILOT PROGRAM FOR NATIONAL REDEVELOPMENT OF BROWNFIELDS.

  Section 108(q) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308(q)) is amended by adding at the end the following new 
paragraph:
          ``(5) Pilot program for national redevelopment of 
        brownfields.--
                  ``(A) In general.--Using any amounts made available 
                under this subsection, the Secretary may establish a 
                pilot program under which grants under this subsection 
                are used to develop, maintain, and administer 
                (including the payment of an entity or entities 
                selected pursuant to subparagraph (B)) a common loan 
                pool of development loans for brownfield redevelopment 
                projects made on behalf of eligible public entities 
                with the proceeds of obligations guaranteed under this 
                section, including related security and a common loans 
                loss reserve account, for the benefit of participants 
                in the pilot program.
                  ``(B) Selection of program managers and 
                contractors.--The Secretary may select an entity or 
                entities on a competitive or noncompetitive basis to 
                carry out any of the functions involved in the pilot 
                program.
                  ``(C) Terms for participation.--Participation by 
                eligible public entities in the pilot program shall be 
                under such terms and conditions as the Secretary may 
                require.
                  ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary--
                          ``(i) for grants under this subsection to be 
                        used only in conjunction with the pilot program 
                        under this paragraph; and
                          ``(ii) for costs of carrying out the pilot 
                        program under this paragraph and ensuring that 
                        the program is carried out in an effective, 
                        efficient, and viable manner.''.

SEC. 6. TECHNICAL AMENDMENT TO ALLOW USE OF CDBG FUNDS TO ADMINISTER 
                    RENEWAL COMMUNITIES.

  Section 105(a)(13) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(13)) is amended by inserting ``and renewal 
communities'' after ``enterprise zones''.

SEC. 7. APPLICABILITY.

  The amendments made by this Act shall apply only with respect to 
amounts made available for fiscal year 2003 and fiscal years thereafter 
for use under the provisions of law amended by this Act.

                          Purpose and Summary

    H.R. 2941, the Brownfields Redevelopment Enhancement Act of 
2001, will increase access to brownfields redevelopment funds 
for America's small communities by de-linking section 108 loan 
guarantees from the Department of Housing and Urban 
Development's (HUD's) Brownfields Economic Development 
Initiative (BEDI) grants. The bill also authorizes HUD to 
establish a pilot program for a common brownfields 
redevelopment loan pool.

                  Background and Need for Legislation

    There is widespread consensus over the need to cleanup an 
estimated 500,000 ``brownfield'' sites across the country. 
Brownfield sites are those where redevelopment is complicated 
by potential environmental contamination, but that are less 
seriously contaminated than those covered under the Superfund 
Act (Public Law 96-510, as amended). Many believe that by 
promoting the redevelopment of these sites and revitalizing the 
communities around them, local jurisdictions would improve the 
quality of life and the environment in these areas.
    While some States have established programs to encourage 
brownfields cleanup and redevelopment, liability involving the 
sites remains controlled by the strict standards of the 
Superfund law. Investors and developers have therefore been 
reluctant to purchase brownfield sites, out of concern they 
will become entangled in legal disputes and be forced to pay 
for unexpected cleanups.
    Both HUD and the Environmental Protection Agency (EPA) 
currently administer brownfield programs, with EPA focusing on 
assessment and cleanup and HUD focusing on redevelopment. HUD 
administers grants through a program called the Brownfields 
Economic Development Initiative (BEDI) program, which has been 
helpful for large communities but which carries certain 
conditions that make smaller communities hesitant to apply for 
program funds.
    On January 11, 2002, President Bush signed the ``Small 
Business Liability Relief and Brownfields Revitalization Act,'' 
(Public Law 107-118) which provides up to $200 million a year 
to States, local governments, and Indian tribes for brownfields 
cleanup. The legislation, approved by a bipartisan coalition, 
more than doubles the $92 million spent annually for 
brownfields cleanup to $200 million. A liability measure within 
the bill protects the new owners of restored brownfields from 
having to pay any future cleanup costs. The legislation also 
calls for the creation of a public record of brownfield sites 
and encourages community involvement in cleanup and reuse. It 
authorizes $50 million a year for grants to local and State 
governments to start and enhance brownfields programs.
    While that legislation has been widely hailed as a valuable 
step forward on the brownfields issue, H.R. 2941 is 
complementary legislation which addresses a different facet of 
brownfields redevelopment.
    The bill focuses on providing access to capital for local 
entities that traditionally have had trouble obtaining 
financing for brownfields redevelopment activities. Most 
notably, H.R. 2941 eliminates the requirement that local 
governments obtain section 108 loan guarantees as a condition 
to receiving BEDI grant funding. De-linking BEDI grants from 
section 108 loan guarantees is important because some small 
cities have great difficulty in securing or are unable to 
secure those guarantees.
    H.R. 2941 also establishes a ``Pilot Program for National 
Redevelopment of Brownfields.'' With this authority, the HUD 
Secretary will be able to fund a common pool for economic 
development loans available to eligible local governments and 
distribute these loans on a competitive basis. Because the 
newly-passed ``Small Business Liability Relief and Brownfields 
Revitalization Act'' authorizes only $200 million with a $1 
million cap on funds to any individual locality, the Pilot 
Program funds will fill the gap for potential developers of the 
other hundreds of thousand of brownfields sites across the 
country.
    In response to a request by Mr. Kanjorski, mine-scarred 
lands are included in H.R. 2941 as eligible brownfields sites.
    The Committee intends that HUD will continue its current 
practice of consulting with other Federal agencies in carrying 
out the Department's remediation and redevelopment activities 
under its brownfields program.
    Because of concerns over agency coordination of brownfields 
site cleanup, the Committee believes that HUD should continue 
to defer to the Federally directed and funded remedial cleanup 
activities of the Environmental Protection Administration, and 
other applicable Federal agencies, which are underway or about 
to occur, in highly contaminated areas. This includes cleanups 
covered by the Comprehensive Environmental Response 
Compensation and Liability Act (CERCLA, or Superfund), the 
Resource Conservation and Recovery Act, the Federal Water 
Pollution Control Act, the Toxic Substances Control Act, and 
the Safe Drinking Water Act. Further, HUD will continue to 
respect orders issued by EPA, and others, pursuant to their 
jurisdiction over highly contaminated areas, in carrying out 
the Department's brownfields program.
    This legislation is particularly important in light of the 
President's HUD budget request which proposes decoupling the 
brownfields program from the section 108 loan guarantee program 
to attract more participants. This mirrors the initiative taken 
in H.R. 2941.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
a hearing on March 6, 2002 on H.R. 2941, the Brownfields 
Redevelopment Enhancement Act of 2001. The following witnesses 
testified: The Honorable Roy Bernardi, Assistant Secretary for 
Community Planning and Development, U.S. Department of Housing 
and Urban Development; The Honorable Lydia Reid, Mayor of 
Mansfield, Ohio; The Honorable Frederick M. Kalisz, Jr., Mayor 
of New Bedford, Massachusetts; Mr. Charlie Bartsch, Executive 
Director, Northeast-Midwest Coalition; Mr. John Murphy, 
Executive Director, National Association for County Community 
and Economic Development; Mr. Robert Colangelo, Executive 
Director, National Brownfields Association; and Mr. Charlie 
Kasko, Regional Sales Manager, Avis America (on behalf of the 
National Association of Homebuilders).

                        Committee Consideration

    On March 14, 2002, the Subcommittee on Housing and 
Community Opportunity met in open session and approved H.R. 
2941, as amended, for full Committee consideration by a voice 
vote.
    On April 11, 2002, the Committee on Financial Services met 
in open session and ordered H.R. 2941, with an amendment, 
reported to the House with a favorable recommendation by a 
voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Oxley to 
report the bill to the House with a favorable recommendation 
was agreed to by a voice vote.
    The following amendments were considered:

          An amendment by Mr. Oxley, no. 1, naming brownfields 
        redevelopment as an eligible CDBG activity, was agreed 
        to by a voice vote.
          An amendment by Mr. LaFalce, no. 2, allowing CDBG 
        funds to administer renewal communities, was agreed to 
        by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The Department of Housing and Urban Development will use 
the authority granted by this legislation to accelerate and 
improve the redevelopment of brownfields sites.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in no new budget authority, 
entitlement authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 2, 2002.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2941, the 
Brownfields Redevelopment Enhancement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Susanne S. 
Mehlman (for federal costs), and Leo Lex (for the state and 
local impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 2941--Brownfields Redevelopment Enhancement Act

    Summary: CBO estimates that implementing H.R. 2941 would 
cost $96 million over the next five years, assuming the 
appropriation of the necessary amounts. Of this amount, $65 
million would be used by the Department of Housing and Urban 
Development (HUD) to provide grants to local and tribal 
governments to support the environmental cleanup and economic 
development of brownfield sites. (Brownfields are properties 
where the presence, or potential presence, of a hazardous 
substance complicates the expansion or redevelopment of the 
property.)
    The remaining $31 million of the bill's estimated cost of 
$96 million would be used by HUD to establish a pilot program 
to encourage more communities to support redevelopment efforts 
at brownfield sites. Under such a program, communities would 
use their section 108 loan guarantee funds in conjunction with 
a brownfields grant to make loans to third parties who are 
interested in redeveloping brownfield sites. In turn, HUD would 
pool together such loans and then use the majority of the 
appropriated funds to establish a shared loss reserve for these 
new loans. Participating communities would then no longer have 
to use their community block grant development funds to pay for 
defaults on such loans, and they could receive a share of this 
reserve after any default payments are made.
    Enacting H.R. 2491 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
H.R. 2941 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The grant programs in the bill would provide benefits to local 
and the tribal governments engaged in the redevelopment of 
brownfield sites.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2941 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2002     2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Brownfields Redevelopment Spending Under Current Law:
    Budget Authority \1\..................................       25        0        0        0        0        0
    Estimated Outlays.....................................       20       21       19       14        8        5
Proposed Changes
    Brownfields Redevelopment Grants:
        Estimated Authorization Level.....................        0       25       25       25       25       25
        Estimated Outlays.................................        0        1        6       14       20       24
    Pilot Program:
        Estimated Authorization Level.....................        0       11       11       11        0        0
        Estimated Outlays.................................        0        2        6        9        9        5
    Total Changes:
        Estimated Authorization Level.....................        0       36       36       36       25       25
        Estimated Outlays.................................        0        3       12       23       29       29
Brownfields Redevelopment Spending Under H.R. 2941:
    Estimated Authorization Level \1\.....................       25       36       36       36       25       25
    Estimated Outlays.....................................       20       24       31       37       37       34
----------------------------------------------------------------------------------------------------------------
\1\ The 2002 level is the amount appropriated for that year for the Brownfields Redevelopment Program.

    Basis of estimate: For purposes of this estimate, CBO 
assumes that the bill will be enacted before the start of 
fiscal year 2003 and that necessary amounts will be 
appropriated for each fiscal year. Estimated outlays are based 
on historical spending patterns of similar HUD programs.
    CBO estimates that HUD would use an appropriation of $25 a 
year over the 2003-2007 period to provide grants to public 
entities for assistance in the cleanup and redevelopment of 
brownfield sites. Enacting this legislation also would remove 
the requirement that brownfield redevelopment grants be used in 
conjunction with section 108 community development loan 
guarantees.
    According to HUD, it would take about three years to 
implement a pilot program aimed at encouraging additional 
redevelopment efforts at brownfield sites. Based on the number 
of communities likely to participate and on previous HUD 
proposals to establish such a pilot program, CBO estimates that 
HUD would need $11 million annually over the next three years. 
If appropriated, we estimate that such funding would be spent 
over the next six years at rates similar to the disbursement 
rate for section 108 loan guarantees.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2941 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The grant programs in the bill would provide 
benefits to local and tribal governments engaged in the 
redevelopment of brownfield sites.
    Estimate prepared by: Federal Costs: Susanne S. Mehlman; 
Impact on state, Local, and Tribal Governments: Leo Lex; and 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short Title

    This section provides the short title of the bill, the 
``Brownfields Redevelopment Enhancement Act''.

Section 2. Findings and Purposes

    This section makes certain findings regarding the benefits 
of brownfields redevelopment and a change to current HUD 
programs that would enable communities to more effectively work 
with HUD on brownfields redevelopment. This section also sets 
forth the purposes of the bill.

Section 3. Brownfields Development Initiative

    This section amends Title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et seq.) to allow the 
Secretary to make grants to public entities for projects and 
activities to assist the environmental cleanup and economic 
development of brownfield sites. Grants will be made (a) based 
on application procedures established by the Secretary; (b) 
only for activities specified in section 108(a); (c) with 
consideration of the extent of financial leveraging involved in 
funded projects; and (d) without the necessity of a section 108 
loan guarantee. Appropriations are authorized for grants for 
each fiscal year 2003 through 2007.

Section 4. Clarification of Brownfields Redevelopment as Eligible CDBG 
        Activity

    This section makes a technical correction to title II of 
the Department of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 
(Public Law 104-204; 110 Stat. 2887). This section also amends 
section 105(a) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)) to include environmental cleanup and 
economic development activities related to brownfields projects 
in conjunction with the appropriate environmental regulatory 
agencies.

Section 5. Pilot Program for National Redevelopment of Brownfields

    This section amends section 108(q) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5308(q)) by adding 
that the Secretary may establish a pilot program to develop, 
maintain, and administer a common loan pool for economic 
development loans to eligible public entities. Entities may be 
selected on a competitive or noncompetitive basis under the 
terms and conditions established by the Secretary. Sufficient 
appropriations are authorized to ensure the viability of the 
program.

Section 6. Technical Amendment to Allow Use of CDBG Funds to Administer 
        Renewal Communities

    This section amends section 105(a)(13) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) to 
allow the use of CDBG funds to administer renewal communities.

Section 7. Applicability

    This section provides that the bill will apply only with 
respect to amounts made available for fiscal year 2003 and 
fiscal years thereafter for use under the provisions of the law 
amended by the legislation.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974

           *       *       *       *       *       *       *



                    TITLE I--COMMUNITY DEVELOPMENT

           *       *       *       *       *       *       *



                          ELIGIBLE ACTIVITIES

  Sec. 105. (a) Activities assisted under this title may 
include only--
          (1) * * *

           *       *       *       *       *       *       *

          (13) payment of reasonable administrative costs 
        related to establishing and administering federally 
        approved enterprise zones and renewal communities and 
        payment of reasonable administrative costs and carrying 
        charges related to (A) administering the HOME program 
        under title II of the Cranston-Gonzalez National 
        Affordable Housing Act; and (B) the planning and 
        execution of community development and housing 
        activities, including the provision of information and 
        resources to residents of areas in which community 
        development and housing activities are to be 
        concentrated with respect to the planning and execution 
        of such activities, and including the carrying out of 
        activities as described in section 701(e) of the 
        Housing Act of 1954 on the date prior to the date of 
        enactment of the Housing and Community Development 
        Amendments of 1981;

           *       *       *       *       *       *       *

          (24) provision of direct assistance to facilitate and 
        expand homeownership among persons of low and moderate 
        income (except that such assistance shall not be 
        considered a public service for purposes of paragraph 
        (8)) by using such assistance to--
                  (A) subsidize interest rates and mortgage 
                principal amounts for low- and moderate-income 
                homebuyers;
                  (B) finance the acquisition by low- and 
                moderate-income homebuyers of housing that is 
                occupied by the homebuyers;
                  (C) acquire guarantees for mortgage financing 
                obtained by low- and moderate-income homebuyers 
                from private lenders (except that amounts 
                received under this title may not be used under 
                this subparagraph to directly guarantee such 
                mortgage financing and grantees under this 
                title may not directly provide such 
                guarantees);
                  (D) provide up to 50 percent of any 
                downpayment required from low- or moderate-
                income homebuyers; or
                  (E) pay reasonable closing costs (normally 
                associated with the purchase of a home) 
                incurred by a low- or moderate-income 
                homebuyers; [and]
          (25) lead-based paint hazard evaluation and 
        reduction, as defined in section 1004 of the 
        Residential Lead-Based Paint Hazard Reduction Act of 
        1992[.]; and
          (26) environmental cleanup and economic development 
        activities related to brownfield projects in 
        conjunction with the appropriate environmental 
        regulatory agencies.

           *       *       *       *       *       *       *


             GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY

  Sec. 108. (a) * * *

           *       *       *       *       *       *       *

  (q) Economic Development Grants.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Pilot program for national redevelopment of 
        brownfields.--
                  (A) In general.--Using any amounts made 
                available under this subsection, the Secretary 
                may establish a pilot program under which 
                grants under this subsection are used to 
                develop, maintain, and administer (including 
                the payment of an entity or entities selected 
                pursuant to subparagraph (B)) a common loan 
                pool of development loans for brownfield 
                redevelopment projects made on behalf of 
                eligible public entities with the proceeds of 
                obligations guaranteed under this section, 
                including related security and a common loans 
                loss reserve account, for the benefit of 
                participants in the pilot program.
                  (B) Selection of program managers and 
                contractors.--The Secretary may select an 
                entity or entities on a competitive or 
                noncompetitive basis to carry out any of the 
                functions involved in the pilot program.
                  (C) Terms for participation.--Participation 
                by eligible public entities in the pilot 
                program shall be under such terms and 
                conditions as the Secretary may require.
                  (D) Authorization of appropriations.--There 
                are authorized to be appropriated such sums as 
                may be necessary--
                          (i) for grants under this subsection 
                        to be used only in conjunction with the 
                        pilot program under this paragraph; and
                          (ii) for costs of carrying out the 
                        pilot program under this paragraph and 
                        ensuring that the program is carried 
                        out in an effective, efficient, and 
                        viable manner.

           *       *       *       *       *       *       *


SEC. 123. BROWNFIELDS DEVELOPMENT INITIATIVE.

  (a) In General.--The Secretary may make grants under this 
section, on a competitive basis as specified in section 102 of 
the Department of Housing and Urban Development Reform Act of 
1989 (42 U.S.C. 3545), only to eligible public entities (as 
such term is defined in section 108(o) of this title) and 
Indian tribes for carrying out projects and activities to 
assist the environmental cleanup and development of brownfield 
sites.
  (b) Use of Grant Amounts.--Amounts from grants under this 
section shall--
          (1) be used, as provided in subsection (a) of this 
        section, only for activities specified in section 
        108(a); and
          (2) be subject to the same requirements that, under 
        section 101(c) and paragraphs (2) and (3) of section 
        104(b), apply to grants under section 106.
  (c) Availability of Assistance.--The Secretary shall not 
require, for eligibility for a grant under this section, that 
such grant amounts be used only in connection or conjunction 
with projects and activities assisted with a loan guaranteed 
under section 108.
  (d) Applications.--Applications for assistance under this 
section shall be in the form and in accordance with procedures 
as shall be established by the Secretary.
  (e) Selection Criteria and Leveraging.--The Secretary shall 
establish criteria for awarding grants under this section, 
which may include the extent to which the applicant has 
obtained other Federal, State, local, or private funds for the 
projects and activities to be assisted with grant amounts and 
such other criteria as the Secretary considers appropriate. 
Such criteria shall include consideration of the 
appropriateness of the extent of financial leveraging involved 
in the projects and activities to be funded with the grant 
amounts.
  (f) Authorization of Appropriations.--There are authorized to 
be appropriated for grants under this section such sums as may 
be necessary for each of fiscal years 2003, 2004, 2005, 2006, 
and 2007.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    H.R. 2941, the Brownfields Redevelopment Enhancement Act, 
is important legislation that will assist in the redevelopment 
of abandoned contaminated industrial sites in our nation's 
communities. During debate on this legislation within the 
Financial Services Committee, however, the lack of a definition 
of what constituted brownfields concerned me.
    More specifically, I wanted to ensure that the Department 
of Housing and Urban Development (HUD) would consider the 
cleanup of mine-scarred land eligible for funding within its 
brownfields program. Within my congressional district, we have 
significant amounts of abandoned mine land, some of it located 
in or near town or city centers, and therefore ripe for 
economic development opportunities. Some of this land is also 
contaminated or potentially contaminated, sometimes having 
become a dumping ground for other waste, and it often 
contributes to water pollution, particularly acid-mine 
drainage. The redevelopment of this under-used land through 
HUD's brownfields program could help to improve the economic 
climate of the region.
    Additionally, when Congress considered the brownfields law 
last year affecting the Environmental Protection Agency's 
programs, we provided for the eligibility of mine-scarred land. 
I therefore wanted to ensure parity between the agencies' 
programs to facilitate the efficient use of government 
resources to reclaim land.
    As a result of my concerns, I worked with the Chairman of 
the Financial Services Committee during our deliberations on 
April 11, 2002 over H.R. 2941 to develop and submit a colloquy 
for the record. The text of that colloquy concerning the 
definition of brownfields follows:

          Mr. Kanjorski. Mr. Chairman, it was my intent this 
        morning to introduce an amendment to H.R. 2941, the 
        Brownfields Redevelopment Act, that would provide a 
        definition of brownfields for use by HUD in carrying 
        out its important brownfields program.
          As you may know, on December 20, 2001, the House 
        passed by voice vote H.R. 2869, the Small Business 
        Liability Relief and Brownfields Revitalization Act. 
        Included within this bill is a broad and inclusive 
        definition of brownfields that was the result of 
        bipartisan negotiation. This bill was signed into law 
        by President Bush in January, 2002.
          My interest in this subject goes back many years 
        because of my desire to see a broad definition of 
        brownfields that specifically includes mine-scarred 
        lands. From my perspective, the expansion of the 
        definition to include excavation of culm banks and the 
        removal of other mining waste at abandoned mine sites 
        will benefit business, generate jobs, improve the 
        environment, and improve the health and economy of 
        thousands of communities across the nation.
          Mr. Chairman, the bill before us today is a good bill 
        and I support it. It is my understanding that we will 
        work together before the legislation is brought to the 
        Floor to address this critical issue.
          Mr. Oxley. We will be pleased to work with you on 
        this issue.

    In closing, I am pleased that the Chairman of the Committee 
recognizes the importance of this issue to my congressional 
district. I look forward to working with him and my other 
colleagues to include a brownfields definition that 
incorporates mine-scarred land in this critical legislation 
before it comes to the Floor.

                                                 Paul E. Kanjorski.

                            DISSENTING VIEWS

    H.R. 2941, the Brownfields Redevelopment Enhancement Act, 
addresses an important problem, the need to clean up 
``brownfields,'' sites whose redevelopment is complicated by 
environmental damage. However, the legislation accomplishes its 
goal by expanding the federal government's unconstitutional 
control over matters properly left to state and local 
governments as well as removing responsibility for brownfield 
clean-ups from those who caused the damage. Thus, this 
legislation violates basic constitutional principles and 
fundamental precepts of justice. H.R. 2941 also embraces an 
inefficient way of accomplishing the worthy objective of 
restoring brownfields to a pristine condition.
    My primary opposition to this bill is based on its creation 
of a new ``pilot program for national redevelopment of 
brownfields.'' A new federal program means increased federal 
funding and, inevitably, increased federal control. Funding 
leads to control as the recipients of the funding must be 
careful to follow all federal rules and ``guidelines,'' lest 
they lose their federal funds. Thus, innovative ways of 
restoring environmentally damaged land will not be implemented, 
for fear that they will not meet with the approval of federal 
``experts.''
    Instead of attempting to address the brownfield situation 
through a bureaucratized one-size-fits all approach, Congress 
should allow states, local communities, and the private sector 
to determine for themselves how to deal with brownfields. 
Questions such as allocation of liability among multiple 
owners, or who should assume responsibility when the original 
tortfeasor cannot be identified or lacks the assets to pay for 
the clean-up, can be resolved through application of 
traditional concepts of contract and property law. Applying 
contract and property law at the state and local level is a 
more efficient way of solving the problem of brownfields than 
expanding the federal bureaucracy.
    Creating more federal programs, financed by additional 
taxation, is not only an inefficient way to clean up 
brownfields, it also violates basic constitutional principles. 
Congress has no constitutional authority to intervene in this 
issue, in fact, under the 9th and 10th amendments to the 
Constitution, Congress is explicitly forbidden to operate this 
type of program.
    Furthermore, forcing taxpayers, who had nothing to do with 
damaging the lands in question, to pay for these clean-ups is 
an unjust abuse of the taxing power. Fundamental principles of 
justice would seem to demand that those who damaged the land 
pay for the clean up. There is also a practical consideration 
in that when land owners know that the burden of cleaning up 
polluted land will be paid for by the taxpayers they are less 
likely to take steps to avoid damaging the land. Thus a 
taxpayer-funded brownfield clean-up program may result in the 
creation of more brownfields!
    In conclusion, though I recognize the problem created by 
the brownfields, I cannot support H.R. 2941. This bill furthers 
the unconstitutional federal role in brownfield clean-ups and 
violates fundamental principles of justice by forcing innocent 
taxpayers to bear the cost of those clean-ups. Instead of 
expanding federal intrusion into this area, Congress should 
obey the commands of the Constitution and allow the states, 
local governments, and the private sector to apply traditional 
concepts of contract and property law to find innovative ways 
to clean up brownfields.
                                                          Ron Paul.

                                  
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