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To encourage the
investigation, remediation, and redevelopment of contaminated sites,
various federal agencies and states have developed a variety of financial
incentives. The financial incentives consist of grants, low cost loans,
and tax credits. In general, the financial incentives are directed at
municipalities and third parties that are willing to redevelop
contaminated sites. A brief description of major brownfields financial
incentives are provided below by federal agency, then by state:
FEDERAL
EPA
Brownfields Assessment
Demonstration Pilots
States, municipalities, and
Indian Tribes are eligible for $200,000 grants from the EPA to establish
Brownfields Assessment models. The grant may be used to assess,
identify, characterize sites and for site response or cleanup planning
and design. An additional $50,000 may be awarded to an applicant to
assess the contamination of a brownfields site that is or will be used
for greenspace purposes. The EPA typically announces 100 grants per year
and accepts applications on a rolling submission "schedule."
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Brownfields Tax
Incentives
Allow clean-up costs to be
fully deducted in the year in which clean up occurred, rather than
being deducted over a number of years. This incentive sunsets January
1, 2001 and impacts only targeted areas such as areas whose poverty
rate exceeds 20%.
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Supplemental
Assistance for Brownfields Assessment Pilots
EPA awards funding of up
to $150,000 to States, municipalities, and Indian Tribes who were
awarded assessment pilots for the continuance and expansion of their
brownfields assessment efforts. This supplemental funding is awarded
on a competitive basis.
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Targeted
Brownfields Assessment Program
EPA provides funding
and/or technical assistance to States, municipalities, and Indian
Tribes for Phase I and Phase II environmental assessments and for
establishing cleanup options and cost estimates based on future uses
and redevelopment plans. This funding may only be used for sites that
are contaminated or suspected to be contaminated with hazardous
substances. Sites contaminated only with petroleum products are not
eligible for assistance.
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Brownfields
Cleanup Revolving Loan Fund Demonstration Pilots
The EPA will provide low
cost loans up to $500,000 to enable eligible states, cities, and
towns, to cleanup brownfields. Funds may be used for evaluation of
cleanup alternatives, site cleanup, and site monitoring. Funds may not
be used for site activities prior to site cleanup such as site
assessments, site identification, and site characterization. Also
funds may not be used to cleanup petroleum contaminated sites unless
the petroleum is co-mingled with hazardous substance (i.e. waste oil).
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Brownfields Job
Training and Development Demonstration Pilots
The EPA will be funded up
to $200,000 over two years to bring together community groups, job
training organizations, educators, investors, lenders, developers, and
other affected parties to address the issue of providing training for
residents in communities impacted by Brownfields. The goals of the
pilots are to facilitate cleanup of Brownfields sites and prepare the
trainees for future employment in the environmental field. Colleges,
universities, nonprofit training centers, community job training
organizations, states, cities, towns, counties, U.S. Territories, and
Federally recognized Indian Tribes are eligible to apply. Funds may be
used to develop curriculum, train residents in communities impacted by
Brownfields in the procedures for handling and removal of hazardous
substances, and outreach activities directed toward improving
participation.
HUD
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Brownfields
Economic Development Initiative
HUD will provide up to $2
million in grants to community development block grant communities and
non-entitlement communities eligible to receive loan guarantees. The
funds can be used for land writedowns, site remediation costs, funding
reserves, over-collateralizing the Section 108 Loan, and financing to
innocent public or private sector entities to remediate contamination.
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Community
Development Block Grants
CDBG provides eligible
communities with direct grants that can be used to revitalize
neighborhoods, expand economic activity that benefit low and moderate
income persons and/or remove urban blight.
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Lead Based Paint
Hazard Control Grant Program
This program funds a broad
range of activities to reduce dangers from lead-contaminated dust,
soil, and paint in private homes and apartments that are occupied by
low-income families
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Section 108 Loan
Guarantee Program
Section 108 enables State
and local governments participating in the Community Development Block
Grant program to obtain federally guaranteed loans that help fuel
large economic development projects and other revitalization
activities. Eligible activities include property acquisition, building
demolish, reconstruction, construction, etc.
STATES
New
York
Clean Water/Clean
Air Bond Act/Environmental Restoration Project
Provides grants to
municipalities to cover up to 75% of the costs to investigate and
remedial Brownfields. The municipality is not required to own the
property at the time of application but must have ownership by the
time the State Assistance Contract is granted. At the completion of
the site cleanup, the State will indemnify the municipality against
future actions.
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Clean Water/Clean
Air Bond Act State Assistance for Solid Waste Projects
New York State will grant
municipalities up to 50% of landfill closure costs not to exceed $2
million. Municipalities with a population of less than 3,500 qualify
for up to 70% of eligible cost not to exceed $2 million.
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1986 Environmental
Quality Bond Act Title III
Municipalities that own or
operate sites that the NYSDEC has classified as a Class 1 or 2 (poses
significant threat) Inactive hazardous waste sites are eligible to
receive 75% of the cost to investigate and remediate the site. A
municipality is eligible for the funds only after it enters into a
Consent Order.
Connecticut
Urban Sites
Remedial Program
30.5 million in state bond
funds for assessment and remediation of sites in distressed
Municipalities and Targeted Investment Communities.
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Drycleaner
Establishment Remediation Fund
Fund to finance soil and groundwater remediation at drycleaners.
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Special
Contaminated Property Remediation and Insurance Fund
Loans to municipalities
and private entities for Phase II, III investigations, and demolition
costs.
Massachusetts
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Brownfields
Redevelopment Fund
$30 million for low
interest loans to eligible persons, 30% for site assessment (up to
$50,000) and the rest for clean-up (up to $500,000) in economically
distressed areas; some match is required.
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Reclamation Pay
Back Fund
Up to $500,000 in loans
for assessment/cleanup, to cities and towns that certify that they
will pay back the loan with half the property taxes generated by the
development.
Georgia
Hazardous Waste
Trust Fund
Provides governments with
money for site investigation and remediation at solids waste disposal
facilities; no more then $2 million per site.
South
Carolina
Dry Cleaning Trust
Fund
Provides funding to
cleanup operating dry-cleaning sites.
For
More Information
To hear more about how HRP can
provide assistance with Brownfields redevelopment, please contact the HRP
office near you:
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