r*
CPE
inside
A More Complete Package for
Problem-Solving/2
EPA Brownfields Pilots/4
The Brownfield Showcase
Communities/4
How The Brownfields Process
Works/6
Brownfields as an Investment
Opportunity/7
Looking Ahead/7
Brownfields as a Catalyst for
Change/8
REINVENTION
United States
Environmental Protection
Agency
Office of
Reinvention
(1801)
November 1998
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A REPORT
U L A T O R Y RE I N V E N f I 6 N
The Brownfields Economic
Redevelopment Initiative
Laying the Framework for Sustainability
The Reality of Brownfieids
i- rownfields are abandoned, idled,
i or under-used industrial or com-
. mercial properties whose redevel-
opment is complicated by real or per-
ceived environmental contamination.
These sites exist in many American com-
munities. In fact, the General Accounting
Office, the U.S. Conference of Mayors,
and others estimate that more than
600,000 brownfield sites are located
throughout the country, not only in urban
settings, but in suburban and rural areas
too. Given the large number of higher risk
toxic waste sites under the federal
Superfund cleanup program, brownfields
have been a lesser priority, often neglected
or forgotten. Over time, these contami-
nated sites sow the seeds of urban blight,
creating a cycle of degradation that can be
difficult to break. As community health
and economic opportunity decline, new
development moves elsewhere, leaving
hopelessness and despair in its wake,
destroying open space, and adding to
urban sprawl.
Breaking this cycle requires attention not
just to environmental quality, but to
equally important social and economic
issues within the affected community. Such
issues present a whole new challenge for
EPA. Our commitment to cleaning up and
preventing pollution remains strong. Yet,
today we understand that environmental
improvements alone cannot assure safe,
clean, vibrant communities for our citizens.
We must strive for a higher goal achiev-
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ing broad-based sustainability. This state of
balance between environmental, economic,
and social goals will not be achieved
through a federally prescribed regimen
alone; rather, bottom-up solutions are
needed, crafted by all affected parties.
This bottom-up, community empower-
ment approach is the foundation of EPA's
Brownfields Economic Redevelopment
Initiative (Brownfields Initiative). Fully
launched in 1995, this initiative supports
pilot projects to test innovative approaches
to solving brownfield problems. Designed
to provide national models for other com-
munities facing similar circumstances, the
Administration has pledged to support 300
Brownfields Initiative pilot projects by the
end of 1999. To date, 226 communities
have benefitted from the program's techni-
cal and financial assistance. As a sign of
how EPA is supporting a more complete
problem-solving approach, we have offered
some very nontraditional assistance, too.
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Comi)lete package for Problem-Solving
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Agency's Brownfields initiative represents a 'breakthrough inJiow traditionalenvironmentalprograms are run. Rather thanfocus-
^e'poftuti^nTisms^cK'as'ainland,"or "water "qualitythe comprehensive, multifaceted design encourages communi-
ties to address many diverse and interrelated issues. It builds on the trials and errors of past community cleanup and redevelopment
Time and time again, th'e lesson learned from these "experience's 'is "that revitalization requires attention not only to health and envi-
ital ttttte*f but to social and economic concerns as well
don this leuon, EPA has taken several steps to foster a more comprehensive problem-solving approach. These steps include developing
^technical toots needed to conduct assessments and cleanup activities, working to remove the liability obstacles inadvertently created
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' ",uperfi(nd regulation, and supporting the job training required to ensure a ready workforce for the new jobs that result from revi-
^hrough these "and" "other actions", SPA "an^its'partnefs "are "laying Wejoundation that is needed to help communities break the
ofdegradation and achieve long-lasting sustainability.
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Providing Financial
Assistance
EPA awards assessment grants valued
at up to $200,000 over a 2-year period
to communities selected for pilot pro-
jects. These funds do not pay the
cleanup bills, but provide seed money
for the environmental site assessment
and planning that allows communities
to attract investments for revitalization
and sustainable growth. The $42 million
awarded to date, has helped create more
than 2,000 new jobs with tens of thou-
sands more projected. It also has served
as a powerful springboard for change,
leveraging nearly $1 billion in funds
from private and public sources. The
city of Dallas, Texas, for example, started
with a $200,000 assessment grant and
leveraged over $53 million in public and
private development funds, redeveloping
six sites and reclaiming more than 1,200
acres of brownfields. Residents now ben-
efit from a new city recreation facility, a
housing and shopping development, an
environmental training and technology
center, and hundreds of new jobs.
The Brownfields Initiatives cleanup
revolving loan fund provides capital to
these pilots as they move beyond assess-
ment and planning to begin cleanup.
States, counties, cities, or tribes that have
previously received assessment grants
may apply for additional grants to set up
revolving loan funds. These funds pro-
vide capital for lending to public and pri-
vate entities such as local governments
and community development organiza-
tions. Loan repayments provide a contin-
uing source of-capital for new loans, dra-
matically increasing the number of
brownfield cleanups over time. Since
1997, EPA has awarded up to $350,000
each to 23 cities and states to set up
revolving loan funds. The 1999 fiscal
year congressional budget authorizes $35
million to support additional revolving
loan funds. In addition, starting this fis-
cal year, the grant amount for revolving
loan funds has been increased, allowing
support up to $500,000.
Offering Special Tools
and Technical
Assistance
Because each Brownfield pilot presents
its own cleanup and revitalization chal-
lenges, decisions related to cleanup and
revitalization are best made at the state
and local levels. Years ofexperience
cleaning up Superfund sites, however,
provides the Agency with technical
resources and expertise that can be valu-
able to communities planning and man-
aging Brownfields Initiative projects.
EPA's Road Map to Understanding
Innovative Technology Options for
Brownfields Investigation and Cleanup and
the companion ToolKit-of Information
Resources for Brownfields Investigation and
Cleanup draw from this experience and
provide useful references. EPA also offers
guidance on related issues. A document
on soil screening, for example, helps local
decision-makers quickly determine which
portions of a site require further study
and which pose little risk to human
health and might be ready for develop-
ment without extensive cleanup. Other
materials discuss how to develop a cul-
tural profile to better understand com-
munity values and needs. EPA guidance
not specific to brownfields also can prove
useful. The Agency's cumulative risk
assessment guidance issued in July 1997,
for example, encourages consideration of
multiple pollution sources, pathways,
and effects in assessing environmental
risk. Using this guidance, environmental
managers in a variety of circumstances,
including brownfields, can assess risks in
a more consistent, scientifically complete
way. EPA's brownfields "Web site at
provides a gate-
way to these and other technical tools as
well as information about cleanup and
redevelopment issues.
Supporting Job
Training
To create job opportunity for residents
living near brownfields sites and to
ensure well-trained workers for cleanup
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A former crab picker at her new job,
assembling solar panels in Maryland.
and redevelopment activities, EPA has
initiated a Brownfields Initiative job
training and development demonstration
pilot program. Public and private institu-
tions can receive grants of up to
$200,000 over 2 years for workforce
development activities related to assess-
ment, cleanup, and redevelopment of
brownfields properties. The first 11
pilots, which began in August 1998, are
bringing together community groups,
job training organizations, educators,
investors, lenders, developers, and others.
Their goal is to facilitate cleanup and
prepare trainees for employment in the
environmental field. Through its pilot
project, East Palo Alto, California, for
example, partnered with a nonprofit job
training center to establish a hazardous
materials training program. The first 34
graduates have completed classroom and
on-the-job training in contamination
removal, and most have been hired with
regional companies. These community
members are discovering first hand how
job training can help instill hope and
rebuild lives.
Increasing Flexibility
Rather than imposing one absolute
cleanup standard, the Brownfields
Initiative allows anticipated use of the
property, as envisioned by the communi-
ty, to dictate the cleanup level required.
A multistory parking lot, for example,
would require less cleanup than a chil-
dren's playground. Because the amount
and type of contamination at a brown-
fields site often vary from one section to
another, communities can use a range of
innovative cleanup strategies to prepare
each area for its intended future use.
Strong community involvement is piv-
otal to EPA in allowing this type of flexi-
bility. Early community involvement in
discussions about desired future uses of
brownfields properties, as well as related
issues like acceptable risk and preferred
cleanup methods, result in a more demo-
cratic decision-making process; greater
support for the remedies selected; and
faster, more effective cleanups.
Ultimately, these benefits are good for
the environment, good for business, and
good for neighborhoods and the people
who live there.
Pushed Through Tax
and Financial
Reforms
Brownfields issues can't always be
worked out within individual cities or
communities; in some cases, they have
to be addressed more broadly at a
national policy level. In the past, for
example, disincentives for cleaning up
brownfields property were buried within
the national tax code. Expenditures for
cleanups had to be capitalized, or
deducted from taxes, over time. The
Administration's brownfields tax incen-
tive in the August 1997 Taxpayer Relief
Act removed this disincentive. Now,
cleanup costs for properties in targeted
areas can be fully deducted during the
year that expenses were incurred. This
new allowance provides an additional
financial incentive for communities and
private interests to bring brownfields
sites back into productive use.
Nationally, the Treasury Department
estimates this eco-
nomic benefit may
be worth up to $1.5
billion.
Lender liability
concerns stemming
from earlier
Superfund experi-
ence have been
another disincentive
for brownfield
investment. Even
though brownfields
are less contaminated
than Superfund sites,
fears about the high
costs associated with
Superfund liability have often led indus-
trial developers to shun otherwise usable
brownfields. Instead, they seek out
undeveloped open space for new growth.
Over time, such decisions have con-
tributed to urban decay, the disappear-
ance of green space, and urban sprawl.
Recently, EPA addressed Superfund lia-
bility concerns for prospective brown-
fields lenders, purchasers, and property
owners. A new Agency policy under the
Asset Conservation, Lender Liability,
and Deposit Insurance Protection Act of
1996 outlines the circumstances under
which lenders are protected against
enforcement actions by the U.S. govern-
ment and third party claims for
Superfund liability. This clarification
provides a basis for estimating project
costs, essential information for an
investor considering a brownfields
investment.
Based on better and more recent
information, EPA also removed approxi-
mately 30,000 sites from the national
Superfund inventory. This action sends a
signal that the federal government no
longer believes that worst-case remedia-
tion measures are warranted. With
uncertainty about the extent of risk and
liability reduced, the chances for cleanup
and redevelopment at these brownfield
sites improves significantly.
Another way EPA is working to
encourage lending for brownfields pro-
jects is through changes to the
Community Reinvestment Act (CRA)
regulations, administered by the
Treasury Department. In 1977,
Congress enacted CRA requiring banks,
thrifts, and other lenders to make capital
available in low- and moder-
ate-income neighborhoods.
Now due to new provisions
for brownfields, lenders sub-
ject to the CRA require-
ments can claim community
development loan credits for
lending money if it is being
used for brownfields cleanup
and redevelopment activi-
ties. Again, the goal is to
provide more incentive for
investment that can help
stabilize and turn around
declining areas.
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Building On Success
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$i<;j; ijThe Brownfield
' I:; ""'ShowcasiB Communities
For several years, communities with
Brownfield Initiative pilot projects
have asked for more cooperation
and interaction among all levels of gov-
ernment, particularly federal agencies. In
1997, this request prompted Vice-
President Gore to announce a
Brownfields National Partnership to
bring together the resources of more than
20 federal agencies to deal strategically
with local cleanup and reuse issues. This
rnt|itiagency partnership builds on the
wdrk already done in 16 localities by
turning pilot projects into "Brownfields
Showcase Communities." Considered the
centerpiece of the federal partnership, the
communities selected receive special tech-
nical, financial, and other assistance as
well as national visibility for their brown-
fields efforts. Recognized for their innov-
ative and successful approaches, these 16
communities are serving as national role
models for other communities facing
similar redevelopment situations and
challenges.
Baltimore, MD
Connecting the city's Economic
Empowerment Zone and brownfield
redevelopment activities.
Chicago, IL
Showing how a city can lead on
brownfield issues through the collabora-
tion and partnership of a community-
based Brownfields Forum.
Dallas, TX
A national leader in leveraging federal
environmental cleanup and economic
development funds.
East Palo Alto, CA
Showing how a bypassed, historically
agricultural community can successfully
clean up brownfield areas and broaden
its economic base.
Southeast Florida
A five-county partnership to
revitalize an urban core and alleviate
development pressures around the
imperiled Everglades.
Glen Cove, NY
A small Long Island community suc-
cessfully involving local citizens in unit-
ing redevelopment efforts along the
waterfront.
Kansas City, KS and MO
Showing how cities, states, and federal
agencies can join together to solve
brownfields problems crossing State lines.
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ields Pilots
November 1998
Brownfields
Assessment
Pilot Project
Demonstrating how a sprawling
metropolis can revitalize brownfields
through a concentrated transportation
corridor project.
Lowell, MA
A classic northeastern manufacturing
city focusing on revitalizing its former
industrial sites.
Portland, OR
Using the transportation system to
spur brownflelds cleanup and maintain
controlled, sustainable growth.
State of Rhode
Island/Providence
Working together to improve condi-
tions in the Woonasquatucket River
watershed, with a focus on greenway
development.
St. Paul, MN
Using its Port Authority to concen-
trate economic revitalization and rede-
velopment activities with support from a
strong state cleanup program.
HI
PR
Salt Lake City, UT
Working to reconnect parts of the city
now separated by a blighted industrial
district.
Seattle/King County, WA
Showing how a major city and rural
county can work together in a regional
approach to brownflelds development.
Stamford, CT
A small, northeastern industrial city
planning to reclaim its harbor area
through brownflelds redevelopment.
Trenton, NJ
Successfully partnering with a neigh-
borhood community development cor-
poration to involve the community in
brownflelds redevelopment activities.
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How the Browriflelds Process A/Viiilki
ccause no two brownfields are the
me, each project follows a
uniquc course toward revitaliza-
don. The pertinent questions in each sit-
uation are different. Is a cleanup needed?
Is there a rnisperception in the communi-
ty about the safety of an abandoned fac-
" tofy Site? What sort of redevelopment
;"^Ot|Id con?munity stakeholders prefer?
Are potential redevelopers frightened off
by liability concerns? The community-
based problem-solving approach of the
Brownfields Initiative has proven effective
at Jjelping communities find die answers.
"!", Communities come to EPA with a
vision, but need help getting from point
A to point B. That's where EPA steps in
w|th financial support through its assess-
mefft grantsi Communities get die seed
; money they need to begin work. But they
ajs,p benefit from having models and
assistance on technical, legal, and
stakeholder issues diat can further
"jump start" the redevelopment
process. With diis support, com-
munities begin to build local part-
nerships, involve dieir citizens in
decision-making, and leverage
resources to pursue goals far
beyond what would be possible
With a single federal grant.
Because the Brownfields Initiative
aims to empower, EPA's direct
involvement in each assessment
pilot ends after 2 years. By that
time, the capacity building that
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occiirred during the pilot phase provides
a framework for redevelopment to con-
tinue. Financial support from revolving
i Ipag fiinds can strengthen this framework
''" ' ''
!'!;:',:." 1."" ;:'.'Under die Brpwnfiekls .Initiative,,
1; States and local governments have the
responsibility for actually managing
;aSS8ssmeri|"pilot projects. The projects
generally evolve dirough four phases,
though activities in some phases can be
' Undertaken concurrently with activities in
! 'others. Conimunity involvement is essen-
tial at every stage, from beginning to end.
Site Assessment
Similar to an audit, a site assessment is
conducted to determine the overall con-
dition of an area. The primary focus is
determining whether contamination is
likely. These assessments involve investi-
gating historical records, mostly through
paper or electronic searches, to learn
about past and current conditions and
uses of the property. During diis stage,
project managers also begin considering
odier issues such as anticipated future use
of die site, special community needs or
concerns, and applicability of innovative
cleanup technologies.
Site Investigation
This phase focuses on identifying, locat-
ing, and characterizing the nature and
extent of contamina-
tion. A detailed field
study is performed
diat might include
analyzing soil, ground
water, surface water,
and sediment samples
to assess contamina-
tion and possible
threats to die envi-
ronment or any peo-
ple living or working
nearby. These results
are die basis for set-
ting cleanup and
redevelopment goals. They allow investiga-
tors to quantify risks and dien determine
acceptable and unacceptable risk levels.
This determination guides die develop-
ment of appropriate cleanup plans, which
help eliminate unnecessary delays in rede-
veloping and using die property later on.
Assessing Cleanup
Options
Once contamination levels are known,
it is possible to choose technologies suit-
able for meeting cleanup and redevelop-
ment objectives. To ensure community
support and confidence, project managers
educate and actively involve local repre-
sentatives in die cleanup selection
process. They must consider budget
requirements and maintain a work sched-
ule so the project remains financially
viable. Also, the role of institutional con-
trols, like zoning and deed restrictions
diat might apply during cleanup, must be
considered.
Clean Up Design and
Implementation
The final phase focuses on designing
and implementing a cleanup plan to pre-
pare the property for redevelopment and
use. Key factors to consider include any
federal, state, local, and tribal require-
ments for conducting cleanup activities;
monitoring cleanup so work stops when
goals are reached; how to involve the
community in designing and implement-
ing the cleanup plan; and protecting
community residents and property during
actual cleanup. A tradeoff also must be
considered between cost and meeting
redevelopment project deadlines. Project
managers, for example, might need to
consider whedier some redevelopment
activities, such as renovating an existing
building, could be conducted concurrent-
ly with other cleanup actions.
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Brownfields As An Investment
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Opportunity
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As a result of recent reforms,
more developers"are" finding
brownfields lucrative from ar,.,
business standpoint. The land often is _'^
desirable for the reasons businesses, pre?
ferred inner city locations in the first :._
place well developed infrastructure^ .
proximity to public transportation, and
easy access for customers and suppliers.
And yet State laws and local require-
ments still are barriers in some situa-
tions. For many development compa-
nies, however, EPA's liability limits and
increased flexibility (among other fac-
tors) make brownfields a sound business
choice. Consulting engineers George
Kanapel and Robert Moore have charac-
terized brownfields ventures as "...a
potential asset, a chance to turn a prop-
erty around, maybe make a profit," and
"more of an economic development pro-
gram than an environmental problem"
("Brownfield Cleanups Debug
Development," Engineering News-
Record, April 28, 1997).
"EPA's liability limits and increased
flexibility...make brownfields a
sound business choice."
Bruce S. Beattie, director of program
development for ITC Brownfields
Services Corporation, notes brownfields
projects can generate returns in the 20
to 30 percent range, compared to 5 per-
cent on straight environmental business
investments: (Engineering News-Record,;
April 28, 1997). "There's a lot of capital
out there iopking for .the,highest rate;of
return, and brownfields are a source :bf
tjiat," says Jennifer Johnson, ^opouriting*;;'"' bflth;"'
firm-divisiori mMagecf'Ebx Urban; £* %J September 1998).
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The New York Times, March 3, 1998).; "..-'-
Some companies,'like Jacoby ;
Development, Inc., see brownfields as a
welcornerppportunity to apply their
'-development expertise for the greater
/societal good. After years of successfully
developing shopping centers around ."
well-known national clients, James
Jacoby has turned to nontraditional
development projects. These include the
largest brownfield project in Georgia to
date redeveloping the 138-acre
Atlantic Steel heavy industrial site in
downtown Atlanta into a mixed use
commercial, retail, office, residential,
and entertainment complex. Other
undertakings in Florida include develop-
ing an aquaculture farm in Plantation
Key and creating a center for manatee
and sea turtle rehabilitation, as well as
dolphin therapy in Fort Myers, each
requiring technological innovation.
Jacoby was attracted to brownfields rede-
velopment by the new environmental
guidelines allowing more flexibility. The
types of cleanup can match the
specific types of contamina-
tion, depending on the final
intended uses of the property.
In addition, the ability to
negotiate and adjust the loca-
tion of various components
within a brownfields site can make cer-
tain development economically feasible.
The lessons learned from Atlantic Steel
will be valuable to future brownfields
projects. This also is significant to
Jacobyr'T^fe're very good at what we've
^^dpne^in the past.-.. :(and) Iwant to give
something back," he says, "so we're now
-.'Allying tp go,.from success to sighi"
is,i(V, I'm fortunateth^at I can try tp dp
(Atlanta Business" Chronicle,
uring the coming year, EPA
will continue working to
address the nation's brpwn-
:ld needs. In addition tp .supporting
ic existing pilots, the Agency will
Sffer.Assistance to more communities,;,,
sjwe_w6ik toward the_ '.....
^Administration's goal of 3QO brown-
jTBeldjprojects by the end of 1999.
^Hundreds of communities will have a
jp jifaance to compete for site assess-.
fcmentTIcIeanup revolving loan funds,
job training support. For infor-
IgLmatipn about these grant programs,
[about brpwnfields issues in gener-
, visit the programs Web site at
?%epa.gov/brownfields>. Information
""' is available by calling 202 260-
by writing to l£S. EPA, MC
01 M Street, SW.,;:'\.7",.....-..K,.
feshmgton, DC 20460^ " :
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Brownfields as a Catalyst for Change
B
I- esides revitalizing neighborhoods
creadng national models to
'help more communities address
their brownfield problems, the compre-
hensive problem-solving approach of the
Brownfields Initiative Is driving change
within odiejr environmental programs.
Recognizing the problems that brown-
fields and other communities face in
controlling stormwater runoff, for exam-
ple* EPA is now working to modify eligi-
bility requirements under the clean water
state revolving loan fund so that
stormwater control projects are eligible
for funding. This action should provide
more capital to address a common prob-
lem associated with development activity.
The Brownfields Initiative also is being
used to examine rne impacts of clean air
regulations on cleanup and redevelop-
ment. Under the Clean Air Act, commu-
nities not meeting federal clean air stan-
dards may be subject to development con-
straints. These requirements can slow
brownfield redevelopment. In some
instances, however, allowing a brownfields
redevelopment or other development pro-
ject may prove more beneficial than mov-
ing a project outside the nonattainment
area to undeveloped land. Results from
Brownfield Initiative pilots in Baltimore,
Dallas, and Chicago will show how we
can better achieve clean air goals and still
allow development to proceed.
In an effort aimed at brownfields pre-
vention, EPA is working to identify flex-
ibility within the Resource Conservation
and Recovery Act (RCRA) that could be
used to encourage safe and environmen-
tally protective cleanup of RCRA facili-
ties. This initiative aims to facilitate
reuse and redevelopment in order to pre-
vent thousands of corrective action
properties from becoming the brown-
fields of the future.
Another effort focuses on die oppor-
tunities for brownfield cleanup and rede-
velopment during closure or alignment
of federal military bases. Contamination
on military bases is a common problem;
however, the levels of contamination on
any given site may range considerably.
Recognizing an opportunity to address
the less contaminated areas, EPA is sup-
porting a study on how they might be
cordoned off and targeted for more
immediate attention. The goal is to
expedite action for brownfield areas, and
avoid the delay that might overwise
result because of association with higher
risks on the base property.
Proven success through the
Brownfields Initiative also is affecting
enforcement. Increasingly, communities
are requesting brownfields redevelop-
ments as part of legal settlements that
compensate residents for environmental
violations in their communities. In
Pittsfield, Massachusetts, for example,
General Electric faces a $200 million set-
dement for releasing polychorinated
biphenyls and other hazardous sub-
stances into the Housatonic River. In
addition, the company has agreed to
clean up the injured river and to conduct
a brownfield redevelopment project on
part of the defunct plant. Working with
the Pittsfield Economic Redevelopment
Authority, General Electric will make a
multimillion dollar investment in
Pittsfield. This settlement and others like
it provide strong evidence about the
value stakeholders see in brownfields
cleanup and redevelopment projects.
&EPA
United States
Environmental Protection
Agency (1801)
Washington, DC 20460
Official Business
Penalty for Private Use
$300
FIRST CLASS
POSTAGE & FEES
PAID
EPA
Permit No. G-35
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