CO I Q i—i w Ph iz; O & PQ EPA m Brownfields Action Agenda BACKGROUND JD JL V estoring contaminated property can help bring life and strength to a community. Making a once toxic area viable again means more jobs, an enhanced tax base and a sense of optimism about the future. EPA's Brownfields Initiative will make it easier for such sites to be redeveloped and become vital, functioning parts of their communities. Brownfields are abandoned, idled or under-used industrial and commercial facilities where expansion or redevelop- ment is complicated by real or per- ceived environmental contamination. Frequently, these properties, once the source of jobs and economic benefits to the entire community, lie abandoned for fear of the contamination and the liability it implies. Instead, companies pass over these brownfields in the urban core and head for the pristine greenfields outside the cities. EPA announced its Brownfields Action Agenda in January, 1995. The Action Agenda outlined four key areas of An abandoned, idled or under- used industrial site action for returning brownfields to productive use: awarding Brownfields Pilot grants; clarifying liability and cleanup issues; building partnerships with all brownfields stakeholders; and fostering local work force development and job training initiatives. By 1996, EPA completed all of its commitments in the 1995 Action Agenda. However, it became clear that the problem required the involvement of all levels of government, the private sector and non-governmental organiza- tions. U.S. EPA • Region 9 • 75 Hawthorne Street • San Francisco, CA 94105 ------- THE NATIONAL PARTNERSHIP ACTION AGENDA In May, 1997, EPA expanded its Brownfields Initiative by announcing the Brownfields National Partnership Action Agenda, which provides a framework for cooperation among governments, busi- nesses, and non-governmental organizations. Keith Takata, Director Superfund Division U.S. EPA, Region 9 a The Brownfields Initiative has a great future. More and more, we will see the value of these local brownfields partnerships as we move into the payoff stage-when the vision and hard work is translated into new development, new jobs and a brighter future for our communities. • The Department of Housing and Urban Development (HUD) providing $155 million in community development ana housing support and an additional S165-* million in loan guarantees. • The Economic Development Adminis- tration (EDA) granting $17 million for brownfields redevelopment in distressed areas. • The Department of Transportation (DOT) funding $4.2 million for transpor- tation projects to address brownfields areas. ¦ Site Assessment Pilots EPA has funded 121 brownfields pilots for up to $200,000 each. The pilot grants provide assistance to States, tribes and localities in developing new strategies for promoting site assessment, environmental cleanup and redevelopment. Assessment pilot activities must be directed toward environmental activities preliminary to cleanup, such as site identification, site assessment, and remediation planning and design. EPA will fund approximately 100 new pilot grants in 1998 through two rounds of national competitions. ¦ Showcase Communities The Brownfields National Partnership seeks to protect public health and the environ- ment, clean up contaminated properties, build economic viability, and create job opportunities. ¦ Federal Agency Commitments The Brownfields Partnership addresses all aspects of the brownfields process with commitments from federal agencies and non-governmental organizations. It includes a $300 million federal investment in brownfields cleanup and redevelopment from more than 15 federal agencies. Some examples include: • EPA funding $125 million for assess- ment, cleanup, state voluntary cleanup programs and job training. The centerpiece of the Brownfields National Partnership will be the selection of 10 Showcase Communities across the country, designed to demonstrate that through cooperation, federal, state, local and private efforts can be concentrated around brownfields to produce successful collabora- tion on brownfields related activities. Each Showcase Community will have a federal staff person on loan to coordinate federal brownfields activities and support state and local brownfields efforts. The Brownfields coordinator will work with local brownfields task forces and advisory boards to link federal, state, local and privately funded activities with community members. The 10 Showcase Communities will be announced early in 1998. The EPA Region 9 office is promoting the Brownfields National Partnership Action Agenda as described below. Page 2 Region 9 Brownfields Partnership Action Agenda ------- BROWNFIELDS National site ASSESSMENT PILOTS ¦ Sacramento, California In September, 1995 EPA awarded a $200,000 Brownfields Pilot grant to the City of Sacramento for a brownfields project at the old Southern Pacific and Union Pacific railyard sites. The City is using these funds to develop a public outreach program to involve affected communities in deciding cleanup levels for brownfields properties and determine their future use. These funds are also being used by the City to streamline its land use permitting process to put these properties back into productive use and to develop a manual describing how to address brownfields properties, including lessons learned from the pilot. The City plans to use the grant to conduct site assessment activities in the El Monte Triangle area of northern Sacramento. In September, 1997, EPA awarded Sacramento a $350,000 Revolving Loan Fund Pilot grant. This grant will be used to capitalize a revolving loan fund for ;anup work at brownfields properties. ¦ Stockton, California In March, 1996 Stockton was awarded a $200,000 Brownfields Pilot grant. The ultimate goal of Stockton's brownfields effort is to encourage economic revitalization of its urban waterfront area. Redevelopment of the waterfront will promote productive land use, reduce air and water pollution associated with urban sprawl, and expand job opportu- nities in locations accessible to low-income populations. To satisfy these objectives, Stockton is developing a comprehensive environmental master plan that will guide the assessment, cleanup and reuse of brownfields properties in the waterfront area. Stockton will conduct an extensive public outreach program to ensure that the community is actively involved in decisions regarding the cleanup and reuse of the brownfields properties. ¦ Emeryville, California Emeryville was awarded a Brownfields Pilot grant in March, 1996. The Emeryville brownfields effort is designed to encourage development by building stakeholder confidence in a risk management model for brownfields redevelopment. The model will incorporate a new State of California regula- tory policy for using a regional approach to groundwater analysis and remediation. Emeryville will also make available to the public a geographic information system database with environmental, economic, land use, planning and assessor's informa- tion on parcels within the study area, and a "One-Stop Shop" that simplifies information retrieval for all stakeholders. The City has compiled the hydrogeologic, soil and groundwater information from available sources and is moving towards completion of the computer database. Emeryville has convened a broad-based community task force to provide guidance to the project. The City is also coordinating with regulatory agencies to implement a "One-Stop Shop" process that streamlines regulatory clear- ance, particularly for smaller sites. ¦ Richmond, California Richmond was awarded a Brownfields Pilot grant in September, 1996. The goal of Richmond's pilot project is to stimulate economic development and improve public health and environmental quality in the 900- acre North Richmond Shoreline, which contains a number of brownfields sites. The plan includes a green component to provide recreation and open space for public use. Planned activities include completing preliminary site assessments at two to five sites; developing financing mechanisms to promote the City's brownfields process; streamlining the regulatory process of the various authorities; and implementing community education and outreach pro- grams to promote full stakeholder participa- tion. The City has completed a computerized database listing ail properties within the project area and has developed site selection criteria, and several community meetings have been held. EPA loaned a staff member to Richmond to provide assistance on its Region 9 Brownfields Partnership Action Agenda Page 3 ------- brownfields project with both the City and EPA funding the position. ¦ Navajo Nation, New Mexico The Navajo Nation was also awarded a Brownfields Pilot grant in September, 1996 to revitalize the Navajo Forest Product Industries mill site in McKinley County, New Mexico. This was the first Brownfields Pilot awarded to a Tribe. The mill site Warehouse District tenants about contamina- tion; create a database of known contamina- tion and remediation efforts in the pilot area; identify funding mechanisms for cleanup; develop economic and zoning incentives and' technical and managerial methods for rede- velopment; and link jobs to low-income and minority residents living nearby. ¦ Santa Barbara County, California EPA awards $200,000 to Santa Barbara County to assist in the redevelopment of Goleta Old Town. closed in 1995, leaving hazardous sub- stances on the site. Activities under this pilot include scoping the local community's needs and concerns through an education campaign in the Navajo language; perform- ing a site assessment to establish the nature and extent of the contamination; preparing a remediation plan; and conducting a public Tribal meeting to secure a commit- ment by the Red Lake Chapter of the Tribe to help finance the remediation plan. Santa Barbara County was awarded a Brownfields Pilot grant in September, 1997. The pilot area is Goleta Old Town, which has experienced economic decline. Pilot grant funds will be used to conduct site assessments and determine the scope and costs of remediation; develop a team approach with the private sector and local, state and federal agencies to implement cost-effective cleanup programs; evaluate financing sources and mechanisms; and imple- ment a public outreach and community involvement plan. These activities will complement the County's Goleta Old Town Revitalization Plan, a joint public-private effort aimed at restoring vitality to this area. BROWNFIELDS REGIONAL SITE ASSESSMENT PILOTS ¦ San Francisco, California ¦ Tucson, Arizona In May, 1997, Tucson was selected for a Brownfields Pilot grant. The pilot project area, the Warehouse District/Barraza Aviation Parkway Corridor, encompasses approximately 80 acres of warehouse properties, roadways, and vacant sites located within the downtown City Center. The pilot project goals are to educate San Francisco was awarded a Regional Pilot grant in September, 1996. The City received $100,000 to revitalize the Bayview Hunters Point neighborhood, a 3,000-acre area near the Hunters Point Naval shipyard. San Francisco's overall goals and objectives of the pilot project are to establish and sustain a brownfields advisory board to educate and inform Bayview Hunters Point community members about contamination Page 4 Region 9 Brownfields Partnership Action Agenda ------- and redevelopment issues; to give commu- Ity members an opportunity to participate in project decision making; and to identify jid prioritize potentially contaminated .operties for redevelopment. Information regarding the environmental condition of the neighborhood has been collected and entered into a geographic information system database. The grant was increased by $100,000 to continue the project and conduct site assessment work at several properties with redevelopment potential. ¦ Oakland, California Oakland was awarded a $100,000 Regional Pilot grant in September, 1996. The funding will be used to conduct Phase II site assessments at two sites: one is within Oakland's Downtown Redevelop- ment area, the other is in East Oakland near the Coliseum. In April, 1997 an additional $100,000 was added to the Pilot grant which will be used to encourage the redevelopment of the Faiitvale Bay Area Rapid Transit (BART) area's Transit Village project. This large-scale development project is designed to revitalize this neigh- borhood with shops, offices, and housing i.a pedestrian-oriented setting. This is a local, community driven project in which the Spanish Speaking Unity Council is partnering with EPA, the Department of Housing and Urban Development (HUD), the Department of Health and Human Services (HHS) and the Department of Transportation (DOT) as well as private entities to redevelop this multi-cultural area. ¦ East Palo Alto, California EPA collaborated with the Department of Housing and Urban Development (HUD) to provide the City of East Palo Alto with a federal liaison staff position. The federal liaison, initially funded by HUD, worked on housing issues for the City, and now, while funded by EPA, is assisting the City in its effort to develop the Ravenswood Industrial Area. EPA also provided compre- hensive site characterization services to give prospective purchasers an idea of how much cleanup will be needed to redevelop the Ravenswood Industrial Area. The completed sampling revealed that contamination was far less than previously estimated and cleanup costs would likely be in the $3 to $5 million range, rather than an earlier estimate of $30 million. Potential developers have expressed interest in the project. EPA is providing a Regional Pilot grant to the City to convene a stakeholder's forum for public participation in the redevelopment of the Ravenswood Indus- trial Area, and to provide education to community members about environmental issues. ¦ Pomona, California Pomona was awarded a $100,000 Regional Pilot grant in September, 1997. The pilot's target locations include 11 redevelopment project areas and the portions of the City within the Los Angeles Revitalization Zone (LARZ) which offers various tax incentives for qualified busi- Job Training In East Palo Alto In August 1997, EPA piloted a technical training and jobs placement pro- gram for the community surrounding the East Palo Alto brownfields site. Sixteen students re- ceived seven weeks of extensive training from DePaul University in hazardous waste handling, lead and asbestos abate- ment, and underground stor- age tank cleanup and re- moval. Funding for this program was provided by EPA to DePaul through an existing grant the university has with the National Insti- tute for Environmental Health Sciences. Class- room training was followed by 90 days of paid on-the- job training with several environmen- tal cleanup firms in the area. Throughout the train- ing program, EPA has conducted extensive out- reach activities with large companies in the hopes that these companies will hire students into full-time em- ployment positions at the conclusion of the on-the-job training. Region 9 Brownfields Partnership Action Agenda Page 5 ------- nesses located in the revitalization zone. Pomona will use the grant funds to con- duct a detailed analysis of all vacant, underused, potentially contaminated sites in the City. The City will compile this information in a database including information such as existing land use, prior land use, LARZ development opportunities, and available financing assistance. The City plans to make this information available to the public via the Internet. ¦ San Diego, California In September, 1997 San Diego was awarded a $100,000 Regional Pilot grant to study industrial sites in an effort to revital- ize the Barrio Logan neighborhood. The grant will be used to identify properties and enter them into the City's computer- ized database, conduct detailed site assessments on identified properties, prepare cleanup plans and cost estimates, and develop future land uses for the affected properties. The community will be involved throughout the process. A project team has been established, and partners in the project include the Environmental Health Coalition, the MAAC project (a nonprofit housing and social services organization), and CCLR, the California Center for Land Recycling. ¦ Phoenix, Arizona Phoenix was awarded a $100,000 Regional Pilot grant in September, 1997. The grant will be used to hire a coordina- tor to facilitate Brownfields redevelopment. The project area encompasses the City of Phoenix Enterprise Community, approxi- mately 20 square miles including the Rio Salado Area, and several smaller redevel- opment or neighborhood initiative areas, enlarging the total project area to approxi- mately 28 square miles. The project is called the Land Recycling Program and the pilot funds will be focused on the follow- ing three areas: streamlined developmental services, program outreach, and commu- nity involvement. The project will empha- size working with owners and developers to assist them with the brownfields devel- opment process. CLARIFYING LIABILITY AND CLEANUP ISSUES ¦ Reducing Liability Fears The fear of potential environmental liability is a significant factor affecting the redevelopment of urban real estate. Property that is contaminated (or even suspected of being contaminated) may be difficult to sell because wary buyers are concerned they may become liable for cleanup costs. In an effort to reduce the fears about property transactions, EPA has issued guidance to address these concerns. The following is a list of recently issued guidances: • Land Use in the CERCLA Rem- edy Selection Process Encourages discussions between land use planning authorities and the commu- nity early in the process and ensures that EPA considers future land use during Superfund cleanups. • Guidance on Agreements with Prospective Purchasers of Con- taminated Property Expands the circumstances under which EPA will sign an agreement not to sue the buyer of a property for existing contamination in exchange for an appropriate cash or work contribution to the cleanup of the property, or indirect benefits. Indirect benefits can include potential environmental improvements as well as economic and social factors such as jobs, infrastructure, an increased tax base and opportunities for disadvantaged groups. • Policy on the Issuance of Com- fort Letters EPA will provide a measure of "com- fon" in the form of letters sent to parties, such as developers, who need to under- stand the potential for EPA involvement at a potentially contaminated property. The policy contains four sample comfort Page 6 Region 9 Brownfields Partnership Action Agenda ------- letters which address the most common lquiries for information that EPA receives concerning the current or past federal ~nterest, or state involvement, at the site. • Policy Toward Owners of Prop- erty Containing Contaminated Aquifers EPA will not pursue owners of property where groundwater contamination has migrated to their property in instances where the property owner did not contrib- ute to the contamination, • Policy on CERCIA Enforcement Against Lenders and Government Entities that Acquire Property Involuntarily EPA will not pursue the cleanup costs from lenders that provide money to an owner or developer of contaminated property, but do not actively participate in the daily management of the property. The policy also sets forth the criteria for exempting municipalities from potential liability when they involuntarily acquire property. (Portions of this guidance were jnacted as the Asset Conservation, Lender liability, and Deposit Insurance Protection Act of 1996, adding Section 107(n) to CERCLA.) • Underground Storage Tank (UST) Lender Liability Rule This rule limits the regulatory obliga- tions of financial institutions and others who hold security interests in property on which petroleum underground storage tanks are located. This rule should in- crease the availability of capital to owners and operators at UST sites, many of whom are small businesses. ¦ Brownfields Tax Incentive Congress and the President recently agreed to a budget that includes a $1.5 billion tax incentive over the next three years, beginning in August 1997, making it possible for investors in brownfields proper- ties to deduct their cleanup expenses immediately, and dramatically cut the cost for this type of investment. This incentive, targeted specifically to areas where the poverty rate is 20% or higher, empowerment zones, enterprise communities, or brownfields pilot sites announced before February, 1997, is expected to spur $6 billion in private investments nationwide, and could return to productive use as many as 14,000 brownfields throughout the United States. ¦ Removing "No Action" Sites from the EPA Inventory EPA has removed more than 30,000 sites from its computer database known as CERCLIS, the Superfund inventory of poten- tial toxic waste sites. These sites often had no contamination or were being cleaned up A Prospective Purchaser AGREEMENT SPARKS Redevelopment Region 9 has signed eight prospective purchaser agreements and is currently negotiating several more. One of our latest such brownfields agreement was finalized in April, 1997 for a parcel of land within the Middlefield-Ellis- Whisman (MEW) Superfund Site In Mountain View, California. A covenant not to sue was entered into with 464 Ellis Street Associates, allowing for the purchase and development of 80 acres located within the site. The parcel was formerly used by Fairchild Semiconductor in the manufacture of computer chips and is a source of heavily contaminated groundwater. The developer plans to build and operate a high-tech research and office facility in a campus-like setting on property that has been blighted and vacant for several years. As part of the agreement, the prospective purchaser will pay $200,000 to EPA, enabling the Agency to continue sampling at a nearby monitoring well for an additional two years. Region 9 Brownfields Partnership Action Agenda Page 7 ------- under state programs. Even though EPA planned to take no action at these sites, their inclusion in the database caused lenders, developers and potential buyers to avoid them due to liability concerns. Removing these sites from CERCLIS eliminates the fear that can prevent redevelopment from moving forward. PARTNERSHIPS AND OUTREACH ¦ Los Angeles, California Brownfields Project In May, 1996 EPA loaned one of its employees to the City of Los Angeles' Environmental Affairs Department to provide assistance to the City in overcoming the barriers associated with brownfields redevel- opment. To assist the City in developing a strategy for various departments to work together on brownfields issues, the City established an Executive Team, with repre- sentatives from the Mayor's Office of Economic Development, the Environmental _ Affairs Department, anc' c^e Commu- ST » senior level Resource Team to serve as staff to the executive team; and several Case Study Teams to work towards resolving brownfields concerns on several case studies. The newly created City structure is developing ways to improve processes that encourage the revitalization of these underutilized areas. To take advantage of various revitalization opportunities, Los Angeles has established a SI million Brownfields Revitalization Fund. This fund, which comes from the City's SI51 million HUD Community Development Block Grant, is being used to establish a pool of re- sources to support brownfields efforts, In November, 1997 EPA loaned an em- ployee to the City's Community Redevelop- ment Agency, with both the City and EPA funding the position. During this second year of support, the City will focus on testing a variety of brownfields approaches on a number of demonstration sites. At the first site, the City is negotiating a two-year assignable option on a twenty-acre State owned contaminated parcel. This property was formerly proposed for a prison and is located near the City's eastern industrial core and the northern terminus of the Alameda Corridor Project. The City will use the Brownfields Revitalization Fund to conduct extensive site assessment and outreach efforts, under a Voluntary Cleanup Agree- ment with the State. The second site is a 208-acre area with multiple owners in South Central Los Angeles, and will be developed into a model inner city industrial park with funding support from the Economic Devel- opment Administration. ¦ Targeted Site Assessment As part of the brownfields effort, EPA is providing site characterization services to several cities and states. Potential buyers and developers are often reluctant to purchase properties when they are not sure of the level of environmental contamination on the property, By providing site charactei ization services, EPA can give cities, devel- opers and others an idea of how much cleanup will be needed to redevelop the propeny. The North Fork community in Madera County, California is located about 15 miles south of Yosemite National Park. In 1994, the community's lumber mill was perma- nently closed. EPA is conducting a Phase I and II environmental assessment to deter- mine the extent of contamination. The California Center for Land Recycling (CCLR) is providing support to the community to create a sustainable, environmentally responsible and economically feasible plan for redevelopment, Both EPA and CCLR assistance will help the North Fork commu- nity to develop a reuse master plan for the 134-acre parcel. Upon completion, the final plan is expected to attract private resources for cleanup and redevelopment. EPA is also providing assistance to the City of Yuma, Arizona by conducting site assess Page 8 Region 9 Brownfields Partnership Action Agenda ------- ment activities at a 64-acre brownfields site jng the south shore of the Colorado River, Miown as the "West Riverfront Recreational -development Area." Site assessment Itivities will include gathering surface sediment samples along the northern boundary of the proposed project, collecting shallow groundwater samples from existing on-site and nearby wells, and collecting soil and gas samples from a former landfill. The City's project includes development of a greenbelt along the river, with walk and bike pathways, improvements to existing wildlife habitats, and construction of a boat launch and marina. ¦ The California Center for Land Recycling The California Center for Land Recycling (CCLR) established in 1996, is a program of the Trust for Public Land, a national, non- profit land conservation organization. CCLR was started with an initial grant from the James Irvine Foundation. Its mission is to promote the reuse and recycling of previ- ously developed land and buildings, and bypassed infill sites in urbanized areas of :ies, suburbs and rural towns in California. ]LR's role is to facilitate the redevelopment or brownfields by providing an integrated package of services tailored to the specific needs of each project. Through its three integrated programs, Project Learning, Information and Outreach, and Policies and Practices, CCLR seeks to identify the obstacles facing brownfields redevelopment, test potential solutions and disseminate their findings, and stimulate long-term policy and practice reforms. Each year CCLR will select up to eight brownfields redevelopment projects in California, and create a strategic partnership with each of the site sponsors. EPA has loaned a staff member to CCLR to assist them in their efforts. ¦ Brownfields Working Group The "Brownfields Working Group" is a group of nonprofit oiganizations and community members in the San Francisco Bay Area which hold monthly meetings to discuss brownfields and environmental justice issues. The Working Group provides an opportunity for a variety of local commu- nity based environmental organizations who attend these meetings, as well as federal agencies, brownfields pilot cities, students, foundations and community members to learn more about brownfields and to plan their future involvement in brownfields efforts. The Working Group presented "A Workshop on the Language & Practice of Brownfields Redevelopment" in May and November, 1997 to provide a variety of perspectives aimed at showing community members how to move a brownfields redevelopment project forward. EPA helps support the Brownfields Working Group through an Environmental Justice grant to the Urban Habitat Program, the organization that hosts the Brownfields Working Group. Assistance to the North Fork community will help revitalize this closed lumber mill site. (Photo courtesy of North Fork History Group, North Fork, California.) Cities with properties that have development potential but need environmental site assess- ments to determine the level of contamination and estimated cleanup costs should contact EPA's Brownfields Team for possible assistance at (415) 744-2378. Region 9 Brownfields Partnership Action Agenda Page 9 ------- Brownfields Contacts Jim Hanson (415)744-2237 Bobbie Kahan (415)744-2191 Bill Keener (Office of Regional Counsel) (415)744-1356 Thomas Mix (415)744-2378 Steve SlMANONOK (415)744-2358 Wally Woo (415)744-1207 National EPA Home Page www.epa.gov e^<> National Brownfields Home Page www.epa.gov/brownflelds EPA Region 9 home Page www.epa.gov/region09 1i K Printed on recycled paper U.S. Environmental Protection Agency, Region 9 75 Hawthorne Street (SFD-1-1) San Francisco, CA 94105 Official Business Penalty for Private Use, $300 FIRST CLASS MAIL POSTAGE & FEES PAID U.S. EPA Permit No. G-35 ------- |