&EPA United States Environmental Protection Agency BROWNFIELDS FEDERAL PROGRAMS GUIDE ------- Prepared by: SRA International, Inc. Northeast Midwest Institute (Contract No. 68-W-01-048) 2801 Clarendon Blvd., Suite 100 Arlington, VA 22201 Prepared for: U.S. Environmental Protection Agency Office of Solid Waste and Emergency Response Office of Brownfields Cleanup and Redevelopment Washington, D.C. 20460 Brownfields Federal Programs Guide i September 2004 ------- (This page left intentionally blank.) Brownfields Federal Programs Guide ii September 2004 ------- Table of Contents Introduction Environmental Protection Agency, Office of Brownfields Cleanup and Redevelopment. Assessment Grants Cleanup Grants Revolving Loan Fund Grants Clean Water State Revolving Loan Funds Job Training Grants Targeted Site Assessments Environmental Enforcement Education Grant Program Environmental Justice Small Grants Program Appalachian Regional Commission 9 Department of Agriculture, Forest Service 11 State Urban Forestry Coordinators Open Space Development and Tree Planting USDA Urban Resources Partnership Department of Agriculture, Rural Development Administration 13 Business and Industry Program Intermediary Re-lending Program Community Facilities Program Water and Waste Disposal Program Department of Commerce, Economic Development Administration 15 Public Works and Development Facilities Program Economic Adjustment Program Planning Program for Economic Development Districts, Indian Tribes, and Redevelopment Areas; and Planning Program for States and Urban Areas Department of Commerce, National Oceanic and Atmospheric Administration 18 Office of Response and Restoration Coastal Zone Management Program Office of Education and Sustainable Development Coastal Services Center Portfields Department of Defense, Army Corps of Engineers 21 Technical Assistance Reimbursable Support Civil Works Funding Centers of Corps Expertise Department of Defense, Office of Economic Adjustment 23 Brownfields Federal Programs Guide iii September 2004 ------- Table of Contents - continued Department of Energy 25 Office of Energy Efficiency and Renewable Energy/ Center of Excellence for Sustainable Development Office of Building Technology, State and Community Programs (BTS) Office of Environmental Management Department of Health and Human Services, Agency for Toxic Substances and Disease Registry 27 Minority Health Initiative Review and Assess Environmental Sampling Data Health-Related Information Sharing Department of Health and Human Services, National Institute of Environmental Health Services 29 Basic Research Hazardous Waste Worker Training Minority Worker Training Program Brownfields Minority Worker Training Program Superfund Worker Training Grants Program Advanced Technology Training Program Department of Housing and Urban Development 32 Community Development Block Grant Program Section 108 Loan Guarantee Program Economic Development Initiative (EDI)/ Brownfields EDI (BEDI) HOME Program Empowerment Zones (EZ) and Enterprise Communities (EC) Initiative Lead-based Paint Program Department of Interior, National Park Service 38 Technical Assistance Through the RTCA Program Technical Assistance Through the Federal Lands-to-Parks Program Department of Interior, Office of Surface Mining 40 Department of Justice 41 Weed and Seed Program Department of Labor 43 Job Training and Technical Assistance Department of Transportation, Federal Transit Administration 44 Urbanized Area Formula Grants Non-Urbanized Area Formula Grants Discretionary Capital Program Metropolitan Planning Funds (Section 5303) Brownfields Federal Programs Guide iv September 2004 ------- Table of Contents - continued Department of Transportation, Federal Highway Administration 47 Transportation and Community and System preservation Pilot Program (TCSP) Surface Transportation Program Transportation Planning Transportation Enhancement Congestion Mitigation and Air Quality Improvement Program (CMAQ) Department of Treasury Tax Incentives 50 Brownfields Expensing Tax Incentive Rehabilitation Tax Credits Industrial Development Bonds Low Income Housing Tax Credits Community Development Financial Institution Fund (CDFI) New Markets Tax Credits Office of the Comptroller of the Currency- Community Development Division Federal Deposit Insurance Corporation 55 Community Affairs Program Partnership Promotion and Support Services Federal Housing Finance Board 57 Community Investment Program Housing Credit and Economic Development Regulations Cash Investment Advance Programs (CICA) Federal Home Loan Bank Standby Letters of Credit (LOG) Affordable Housing Program (AHP) Support for Local Financing General Services Administration 59 Community Involvement Partnering Small Business Administration 61 Loan Guarantee Program Section 504 Certified Development Company (CDC) Program Brownfields Federal Programs Guide v September 2004 ------- Introduction Brownfield sites are everywhere. The legacy of the nation's industrial past is evident in communities all across the country. Often abandoned, typically contaminated manufacturing sites dot the landscape of cities and towns of all size, tucked in odd corners of communities as well as dominating waterfronts and urban centers. And changing economic fortunes also influences the fabric of many communities, symbolized by shuttered commercial facilities, dying malls, and abandoned gas stations. All of these sites pose significant challenges for local officials, economic development agencies, and community residents. Bringing new activity to these "brownfield" sites can be a costly proposition. What we've seen, after 15 years of experience with brownfields, is that the legal and procedural hurdles of acquiring, cleaning, and reusing these sites can still be expensive in terms of site preparation expenses and fees, and costly in terms of time delays. Site evaluation processes, testing, legal issues to resolve, and other factors can discourage private participation in activities to bring previously used properties back to productive use. Today, critical funding gaps are, in fact, the primary deterrent to site and facility reuse. The financing situation is especially gloomy for start-up firms or small companies with little collateral outside the business. But what we are also seeing after 15 years experience in financing brownfield reuse is that small amounts of public funds can lead to big private investment with small infusions of the critical first dollars for site assessment and cleanup leading to big follow-on private investments. Clearly, the public sector and especially the federal government can help provide the key investments that can do much to help level the economic playing field between greenfield and brownfield sites. A key lesson from the success stories in place is that public-sector financial assistance is often needed to make brownfield projects work. Many cannot go forward without some kind of involvement by the public sector. To this end, a number of federal programs - while not specifically targeted to brownfield needs - - are, in fact, well-suited to support site characterization and reuse activities. For decades, federal development and finance mechanisms have been used to stimulate economic activity in certain geographic areas or industries, or under certain types of situations, when private capital markets chose not to participate. Now, publicly-driven economic development initiatives are reaching into new sectors and incorporating new concerns, such as environmental improvement. Brownfield projects at contaminated sites represent a logical extension of the mission of many of the programs that federal agencies currently operate. Special Costs Facing Brownfields Brownfield projects face financing challenges that can foil efforts to assemble a complete funding package. These gaps typically involve capital shortages for three activities specific to brownfields: conducting early-stage site assessments, to determine exactly what contamination needs to be addressed; Brownfields Federal Programs Guide September 2004 ------- defining a site remediation plan, which owners or developers need to take the site through a state voluntary response program that allows the use of institutional controls or provides some finality on liability; and carrying out the cleanup itself. In addition to these special costs, typical financing costs for conventional sites may be higher for brownfield sites. Brownfield developers almost invariably have to pledge a higher rate of return to their investors or lenders to persuade them to assume the higher perceived risk associated with the project. Extra underwriting costs can add significantly to the costs of loan processing and review procedures and be harder for the project to absorb in the long run. And lenders usually require developers to have at least 25 percent equity in the project to make sure that the borrower has sufficient capital at risk. How Can Public Programs Help? The most successful brownfield redevelopment efforts recognize private lender and developer concerns and perceived risks. They aim to help private parties address financing concerns and better manage brownfield risks by meeting at least one of the following objectives: Ensuring a minimum return: Incentives such as loan guarantees or companion loans can ensure a minimum return or quantify any potential loss. Public programs can also can offer support, such as environmental insurance, that limits the borrower's exposure to unforseen problems that affect the value of collateral or the borrower's ability to pay. Reducing the borrower's cost of financing: Financial tools such as loan subsidies can reduce interest costs on project loans (for example, with tax-exempt financing or low-interest loans). Program staff also can reduce loan underwriting and documentation costs by offering loan packaging assistance or technical support, such as the type that might be available through Community Development Corporations (CDCs). In some cases, public entities can help cut borrowing costs by partnering with site users to prepare records and help maintain institutional controls. Offering terms or incentives to ease the borrower's financial situation. Tools like tax abatements, tax credits, or grace periods can improve the project's cash flow and make the project numbers work. These tools can be helpful in mixed-use project scenarios that include open space. Similarly, training and technical assistance services can offset project costs and reduce a site reuser's need for cash. Offering assistance or information that provides investor and lender comfort: Links to information about new remedial technologies, along with performance data for new technologies and institutional controls, or insurance that can help transfer risk, can increase the investor's and lender's comfort level with a brownfield project. Providing direct financing help. When contamination is suspected, money for site assessment and cleanup is the hardest piece of the financing puzzle to solve. Therefore, providing grants or forgivable loans for these purposes may be critical. Brownfields Federal Programs Guide 2 September 2004 ------- How Did We Get Here? Evolution of the Federal Role Since "Brownfields" Emerged In the early 1990s, court interpretations of the Superfund law brought lightly contaminated sites under the CERCLA regulatory umbrella and also brought lenders into the chain of control and liability. This led to numerous projects going belly up, as capital fled from developed cities and sites in the face of mostly perceived fears. This was really the birth of the brownfield issue as we know it. Congress tried early on, but was not able to pass any clarifying legislation as the issue continued to haunt local officials trying to revitalize their distressed areas. Obviously something needed to be done, and in the absence of federal legislative activity the states with federal EPA's administrative concurrence developed what came to be known as "voluntary cleanup programs," based on a response process allowed that brownfield cleanup and reuse to go forward. Gradually, both local governments and the private market saw this as a process that encouraged collaboration instead of confrontation. Today, 49 states have these VCPs in place; a decade ago, only a handful did. EPA encouraged this shift in practical responsibility to the states through policy guidance and funding for state and local brownfield efforts. Along the way, in response to both pressure and support from many mayors, EPA created the first brownfield pilots in 1993 in Cuyahoga County/Cleveland, Ohio; Bridgeport, Connecticut; and Richmond, Virginia. These communities tested out some of the emerging cleanup and reuse approaches, and formed some of the first brownfield revitalization partnerships, to address financial and technical brownfield barriers approaches that are now commonplace. The first federal brownfield bill was introduced in 1993, to bring funding to bear and formalize a process that would allow the states and their VCPs to work with communities and private interests to move forward with certainty on lesser contaminated sites. It was introduced to deal with lender liability, prospective purchaser, and other issues that brought the urban revitalization process to a standstill in many cities. This simple bill had to take a complex path to enactment, taking more than eight years of legislative fine-tuning and wrangling. But on January 11, 2002, President Bush signed the Brownfields Revitalization Act signed into law. The Act does three important things: authorizes program funding; clarifies liability for innocent landowners, contiguous property owners, and prospective purchasers; and establishes finality by establishing a Superfund enforcement bar, in essence, delegating authority for brownfields sign-off to states. Leveraging Federal Programs Cities and towns, and private site owners, have used nearly two dozen federal programs to help finance some aspect of brownfield reuse basic site preparation, planning, site assessment, cleanup, and construction. Only three of these programs explicitly focus on brownfields: the U.S. Environmental Protection Agency (EPA) assessment and cleanup programs, and the U.S. Department of Housing and Urban Development (HUD) brownfield economic development initiative (known as BEDI), which is generally available only to block-grant entitlement cities. In terms of other federal programs, potential users need to apply some creativity to make the brownfields connection to make their needs for site assessment and cleanup funding conform to the eligibility criteria and priorities of other programs, which Brownfields Federal Programs Guide 3 September 2004 ------- may target issues such as slums or blight, support infrastructure renewal, or promote job creation and retention. This guide reviews the extensive initiatives at the Environmental Protection Agency, and then examines in alphabetical order the resources available in other departments and agencies which could be applied in brownfield situations. The Institute collected the information by analyzing program requirements and talking with spokespersons from each of the agencies, to identify those program components best suited to meet brownfield redevelopment, financial, and technical assistance needs. This 2004 version provides current program contact names, identifies program changes, and provides (when available), the most recent appropriations figures. This updated edition also features "BROWNFIELDS LINKS," short descriptions of each agency's offerings and the entities that can use them, and suggestions to "THINK ABOUT" for making long-time programs fit emerging brownfield needs. It also recaps the "BROWNFIELDS ROLE" that each agency is pursuing. Brownfields Federal Programs Guide 4 September 2004 ------- U.S. Environmental Protection Agency http ://www. ep a. gov/b ro wnfields/ BROWNFIELD LINKS Q Provides grants to assess site contamination - targeted to local and tribal governments (and states in some cases) Q Provides grants to carry out site cleanup - targeted to local and tribal governments (and states and non-profit development organizations in some cases) Q Offers grants to projects and community organizations to address environmental problems affecting low-income and predominantly minority populations - targeted to state, county, and local governments; and federally recognized tribal governments; and nonprofit community organizations Q Provides training opportunities in the environmental field for residents of communities affected by brownfields - targeted to local governments for use by a variety of stakeholders Q Provides capital to establish revolving loan funds, which state and local governments can use to lend (or make sub-grants) for brownfield cleanup - targeted to private sector entities through state and local government Q Provides grants for cooperative sustainable development efforts - targeted to local and tribal governments, educational institutions, and nonprofit organizations Q Funds environmental education programs - targeted to state environment agencies; state, local, and tribal education agencies; academic institutions; nonprofit organizations; and educational broadcasting agencies Q Provides grants to capitalize revolving loan funds (SRFs) for clean water projects - targeted to private sector entities through states THINK ABOUT... using EPA resources to assess sites, for marketing purposes...conducting cleanup to bring them to a "shovel ready" situation...offsetting info and training costs of brownfield redevelopment...linking water quality improvement efforts to brownfield activities The U.S. Environmental Protection Agency (EPA) has been the most active federal agency in promoting the cleanup and redevelopment of brownfields and other underused contaminated properties. The EPA began its brownfield effort in 1993 guided by the belief that "environmental cleanup is a building block to economic development, not a stumbling block, [and] that revitalizing contaminated property must go hand-in-hand with bringing life and economic vitality back to communities." RESOURCES USEFUL TO BROWNFIELD EFFORTS DIRECT FINANCING Three EPA financing programs - EPA's flagship effort - have been used extensively to spur brownfield redevelopment. The Brownfield Revitalization Act authorizes up to $200 million annually for EPA's site assessment, cleanup, and revolving loan fund capitalization programs (although Congress to date has not provided more than $123 million for these programs and related operations and support). New statutory authority allows EPA to extend eligibility to sites with petroleum contamination, and in fact requires that 25 percent of all brownfield funding go to petroleum-impacted Congress also broadened the program's usefulness to community revitalization efforts by allowing grant and loan funds to be used to purchase environmental insurance - which will help attract and leverage more private funding into these projects as well as to monitor institutional controls - which can help reduce site Brownfields Federal Programs Guide 5 September 2004 ------- cleanup costs. Grant funds cannot be used for administrative costs (as opposed to eligible programmatic costs). In addition, a fourth financing program is mentioned below. The state clean water revolving loan fund shows promise to help address brownfield situations; it has been used this way in several states. Assessment Grants. Site assessment grants have been used to fund a variety of pre-cleanup environmental activities such as site assessment, inventory, characterization, prioritization, community outreach, and cleanup planning and design. Local governments - as well as Indian tribes, states, and entities such as redevelopment agencies, regional councils, and land clearance agencies - are eligible to apply for site assessment grants. EPA awards up to $200,000 per jurisdiction or site for these purposes, although in the case of large sites or those with significant contamination, an applicant may ask to waive the limit and seek up to $350,000. Cleanup Grants. First available in fiscal 2003 as a result of the new law, site cleanup grants provide up to $200,000 per site to fund cleanup conducted by cities, development agencies, non-profit groups, and similar entities at sites that they own. A 20 percent match (of funds or in-kind services) is required, although this can be waived in the case of hardship. Revolving Loan Fund (RLF) Grants. RLF grants provide up to $1 million per recipient, available for five years, to establish state or locally administered loan funds. Like assessment grants, these capitalization grants can go to local governments, states, Indian tribes, states, and entities such as redevelopment agencies, regional councils, and land clearance agencies. These RLFs can make low- or no-interest loans for cleanup. Beginning in fiscal 2003, recipients may use up to 40 percent of a capitalization award for to make cleanup sub-grants at sites owned by sub-grantees. Repayment of sub- grants is not required. A 20 percent non-federal cost share in the form of money, labor, services, or materials is required. In 1999, one of the first loans made from an RLF was extended to Blues Brothers Harley Davidson in Stamford, Connecticut. The $160,000 loan allowed the company to defray the total cost of abatement and removal of contaminated material at a brownfield site in a mixed-use area of commercial, industrial, and residential development. By December 2000, the $1.5-million redevelopment project had led to the renovation of two turn-of-the-century buildings, which were combined and used for the Harley- Davidson/Buell Dealership, with a showroom, offices, and maintenance facility. Clean Water State Revolving Loan Funds. Clean water state revolving loan funds (CWSRFs) have barely made it to the radar screen as a brownfields financing tool, but they have considerable potential for use at sites where water quality is an issue. Capitalized by EPA, these funds can be used by states for loans of up to 20 years to finance activities that include brownfield mitigation to correct or prevent water quality problems, and which have a revenue stream to provide for loan repayment. There is no limit on the amount of funding that a project can access. Only a few states - notably New Mexico, New York, and Ohio - have started using this approach, but EPA allows all states to do it. Last year, CWSRFs financed nearly $3 billion in water quality projects. Ohio, for example, issues loans for brownfield assessment and cleanup through its state Water Pollution Control Fund. Help is available to both municipalities and private entities participating in the state's voluntary cleanup program. One of the first projects taking advantage of the Ohio CWSRF Brownfields Federal Programs Guide 6 September 2004 ------- for brownfield purposes was carried out by the Grant Realty Company. It used a CWSRF loan to clean contaminated groundwater and soils at the 20-acre, former Sunar Hauserman industrial site in Cleveland, preparing it for commercial use. The company used the site to build a centrally located corporate headquarters for its subsidiary. Grant Realty purchased the property, despite its contamination, and obtained a $1.6-million CWSRF loan at an interest rate of approximately 4 percent to cover the cost of treating contaminated subsurface soil and groundwater. The repayment source came from a tank-cleaning operation, with a personal loan guarantee and a second position mortgage as additional collateral. States set CWSRF project priorities within broad EPA guidelines. Eligible activities may include brownfield cleanup to correct or prevent water quality problems such as groundwater contamination. State revolving funds can cover the costs of a variety of activities, including the excavation and disposal of underground storage tanks; capping wells; excavation, removal, and disposal of contaminated soil or sediments; well abandonment; and Phase I, n, or in assessments. Each state determines who may use its revolving funds; EPA allows communities, municipalities, individuals, citizen groups, and nonprofit organizations to be loan recipients. Usually, loans are repaid through fees paid by developers; recreational fees; dedicated portions of state, county, or local government taxes; storm water management fees; or wastewater user charges. RESOURCES USEFUL TO BROWNFIELD EFFORTS -- TRAINING, OUTREACH, AND OTHER SUPPORT EPA also operates several other programs which can be useful to communities as they pursue brownfield revitalization strategies. Job Training Grants. The job training program helps to integrate training activities with brownfield redevelopment projects. This effort links the goal of encouraging site cleanup with that of training for jobs in the environmental field, including innovative treatment technologies - so people affected by brownfields can be trained to help address them. Colleges, universities, community job training organizations, states and local governments, and Indian tribes are eligible to apply. Recipients can get up to $200,000 to provide training for residents in communities impacted by brownfields. Targeted Site Assessments (TBAs). Under the TEA program, EPA provides either funding or technical assistance for environmental assessments at brownfield sites. States, municipalities, and tribes are eligible to seek TEA funding for sites which they recommend to EPA for assessment. Sites are prioritized and selected on a case-by-case basis. In some instances, EPA may choose to give TEA grants directly to states, for site assessments at properties which they identify. TEA assistance may be used for Phase I and Phase n environmental assessments, as well as determining cleanup alternatives and their costs. Environmental Enforcement Education Grant Program. This grant program sponsored by EPA's Office of Environmental Education supports projects that enhance the public's awareness, knowledge, and skills to make informed decisions that affect environmental quality. Any local educational agency, state educational or environmental agency, college or university, not-for-profit, or non-commercial broadcasting agency is eligible for funding. A 25 percent non-federal match is required. For more information, visit http://www.epa.gov/enviroed/grants.html. Brownfields Federal Programs Guide 7 September 2004 ------- Environmental Justice Small Grants Program. Non-profit community based, grass roots organizations, churches, and other groups with a focus on community-based issues are eligible to apply for grants. Applicants can seek up to $20,000 for projects that improve communication among stakeholders and build community capacity to identify and resolve environmental justice problems that can affect brownfield revitalization efforts. Contact Anthony P. Raia US EPA Office of Brownfields Cleanup and Redevelopment Mail Code 5105 T 1200 Pennsylvania Ave., NW Washington, DC 20460 (202) 566-2758 raia. anthony@epa.gov For more information, please visit http://www.epa.gov/brownfields/. Brownfields Federal Programs Guide 8 September 2004 ------- Appalachian Regional Commission http://www.arc.gov/ BROWNFIELD LINKS Q Provides grants for roads and highways - targeted to state and local governments Q Offers planning and technical assistance to attract private investment to distressed areas - targeted to local governments (and development districts/non-profit entities in some cases) to support new uses THINK ABOUT,,,,,tapping ARC funding to meet site access road and similar infrastructure support needs of brownfieldprojects, including mine scarred lands...or helping cover planning costs at sites being reused The mission of the Appalachian Regional Commission (ARC) is to be an advocate and partner with the people of Appalachian to create opportunities for self-sustaining economic development and improved quality of life. ARC was established by Congress in 1965 to support economic and social development in the Appalachian Region. The Commission is a unique government partnership composed of the governors of the 13 Appalachian states and a presidential appointee representing the federal government. Grassroots participation is provided through local officials and a network of local development districts. The Appalachian Regional Commission (ARC) administers several small economic development and infrastructure grant programs in the region. They include programs for development planning and technical assistance, highway development, local access roads, vocational educational facilities, and water and sewer system construction. ARC can also support small business start-ups and expansions. These programs are organized in several divisions, including the Appalachian Development Highway System; Economic and Human Development Activities; an Entrepreneurship Initiative; and a Business Development Revolving Loan Fund program. They all are designed to improve the economic climate in distressed areas to make them better able to attract private investment - important brownfield considerations. ARC invests in projects that address the Commission's strategic goals. ARC grants typically finance projects in the following areas: education and workforce training programs, water and sewer system construction, leadership development programs, small business creation and support, and development of health care resources. Projects with the potential to generate new jobs are usually given top priority during the review process. Grant applications must be submitted by the state office designated by the governor, and they often are submitted on behalf of local governments, multi-county organizations, educational institutions, and non-profit organizations. RESOURCES USEFUL TO BROWNFIELD EFFORTS A large portion of ARC's Area Development funds is used for infrastructure development in support of local efforts to create jobs and improve the quality oflife in rural Appalachia. Occasionally these projects include the adaptive redevelopment of industrial buildings or mining facilities, or water and sewer service for brownfield sites. Because all ARC grants originate at the state level, applicants considering brownfield redevelopment projects should contact their state ARC program manager to request pre-application information. The Local Development District serving the county in which the Brownfields Federal Programs Guide 9 September 2004 ------- project is located may offer guidance on a project's eligibility for funding and assistance in preparing a grant application. BROWNFIELDS PARTNERSHIP ROLE A large portion of ARC's Area Development funds are used for water and sewer system extensions of service to industrial parks for the purpose of creating and retaining jobs in rural Appalachia. In the past, several of these funded projects have involved brownfield sites. ARC has partnered with the National Association of Local Government Environmental Professionals (NALGEP) since 2001 to conduct regional workshops in Appalachia that encourage brownfields redevelopment. In addition, ARC entered into a memorandum of understanding (MOU) with EPA in FY 2000 that calls for the two agencies to coordinate their policies and activities in support of brownfields assessments, cleanup, and redevelopment. The agency also participates in federal agency working groups for brownfields and mine-scarred lands. In addition, ARC has committed to providing technical assistance to ARC's Local Development Districts in a variety of ways that empowers greater awareness of the potential brownfields resources available to rural areas, and continuing to encourage ARC's state partners to use their Area Development funds for projects that create and retain jobs in brownfields redevelopment areas. ARC is also working to increase the awareness of brownfields cleanup and redevelopment programs and benefits, through: Financial and technical assistance for Appalachian communities, local development districts, and grassroots organizations to develop proposals for integrating brownfields assessments and cleanup with economic development planning; Coordination of joint activities between Appalachian states, local development districts, and EPA field staff in order to help implement brownfields redevelopment projects at the state level; Financial and technical assistance to Appalachian communities to help leverage funds for assessment, cleanup, and redevelopment of brownfields; and Collaboration in j oint projects or proposal reviews for competitions sponsored by either agency. Contact Eric Stockton Appalachian Regional Commission 1666 Connecticut Avenue Washington, DC 20009-1068 (202) 884-7752 estockton@arc.gov Brownfields Federal Programs Guide 10 September 2004 ------- U.S. Department of Agriculture Forest Service http ://www.f s.fed.us BROWNFIELD LINKS Q Provides technical assistance for brownfield projects in selected areas - targeted to EPA grantee local governments, federal Empowerment Communities and Enterprise Zones Q Offers technical and financial assistance for sustainable redevelopment and reuse projects - targeted to state and local governments and community-based groups in Atlanta, Seattle, New York, Chicago, San Francisco, Los Angeles, Denver, Las Vegas, East St. Louis, South Florida (four county area), Philadelphia, Boston, and Buffalo THINK AsouT,,,brownfield project landscaping needs,,,addressing forestry opportunities of mine scarred lands The Forest Service's mission is to achieve quality land management under the sustainable multiple-use management concept in order to meet the diverse needs of people. In connection with brownfield redevelopment, the Forest Service is helping states and communities use the forests wisely in order to promote rural economic development and a quality rural environment. RESOURCES USEFUL TO BROWNFIELD EFFORTS The Forest Service has committed a total of $400,000 to provide technical assistance to the 16 Brownfield Showcase Communities. This assistance will be administered through several different activities, detailed below. State Urban Forestry Coordinators. These coordinators help encourage environmentally responsible redevelopment within the Showcase Communities. In particular, they work closely with municipal governments to develop strategic plans for brownfield reuse that ensures that infrastructure development is environmentally sensitive, and to protect urban natural resources. Open Space Development and Tree Planting. Efforts are being made to link Showcase Communities with organizations that provide technical assistance and funding for open space development and tree planting, including the National Tree Trust, American Forests, ReLeaf Fund, and National Arbor Day Foundation. Research also is being conducted on the effects of using trees during the brownfield remediation process. USDA Urban Resources Partnership. The Urban Resources Partnership (URP) is a multi-agency initiative that provides funding and technical assistance to community-led environmental projects. The Forest Service has selected 13 areas (noted above) in which the URP has been established. In each of these cities, Forest Service staff collaborate with municipal officials and other state and federal agency stakeholders in order to provide assistance packages, primarily to nonprofit community based organizations. The URP works closely with community development corporations as a mechanism for making its resources available at the neighborhood level. Assistance can include grant funds, technical assistance, and/or access to existing agency resources. Other communities may be added through a competitive application process as other cities "graduate" from direct federal support. Brownfields Federal Programs Guide 11 September 2004 ------- BROWNFIELDS PARTNERSHIP ROLE Some USDA field offices are more aggressively working with EPA brownfield program grantees, and federal Empowerment Zones (EZs) and Enterprise Communities (ECs), to provide educational programs and training for brownfields landscaping projects. This includes workshops for "Master Gardeners", pesticide applicators, and youth development. USDA also has contacts in urban Showcase Communities to monitor the success of USDA projects. USDA provides technical support to communities to support greenways and other land conservation projects that are more frequently being included in brownfield revitalization efforts. The Forest Service has also committed to: Working with EPA and other federal agencies to assist with the redevelopment of brownfield sites located in rural communities or near mine-scarred lands; Establishing a USDA-wide Brownfields Subcommittee to increase the agency's focus on its potential brownfields role; Continuing support of communities that want to convert existing brownfields into natural open space parks, tree-covered linear parks, and other land conservation projects; and Assisting rural and urban brownfields communities apply for USDA grants and loans. Contact Blake Velde U.S. Department of Agriculture Hazardous Materials Management Group 1400 Independence Avenue SW MS 9100 Washington, DC 20250-9100 (202) 205-0906 Fax:(202)401-4770 blake.velde@usda.gov Brownfields Federal Programs Guide 12 September 2004 ------- U.S. Department of Agriculture USDA Rural Development http://www.rurdev.usda.gov BROWNFIELD LINKS Q Provides grant, loan, and loan guarantee assistance for a variety of business, commercial, and industrial projects in small towns and rural areas - targeted to banks, non-profit development organizations, tribes, cities and counties, and other public entities Q Supports the installation and improvement of critical infrastructure needed to support economic development targeted to state and local governments, tribes, water districts, banks and other commercial lenders Q Helps finance the construction of key public facilities sewer systems, firehouses, etc - that can support brownfield revitalization efforts THINK ABOUT...using USDA/RDA resources to meet various brownfield needs within the context of small town or rural needs real estate acquisition, cleanup, demolition, working capital, water and sewer system improvements, supportive community facilities The mission of USDA Rural Development is to increase economic opportunity in small towns and rural areas not traditionally served by other federal development programs. RDA's programs focus on non-farm business and community development projects, including major infrastructure systems like water and sewer. As such, USDA is in a key position to support the kinds of activities critical to a community brownfield revitalization effort. In 2003, USDA Rural Development programs were credited with creating 150,000 new jobs and retaining an additional 200,000 others. USDA Rural Development operates three types of programs- business development, community improvement, and housing. Efforts in the first two areas are most suited to meet the challenges of rural brownfields. RESOURCES USEFUL TO BROWNFIELD EFFORTS Business programs are structured to work in partnership with the private sector and with community-based organizations to provide both direct financial assistance and help with business planning. Their common mission is to fund efforts that create jobs, generate business activity, and promote a clean rural environment. Individuals, corporations, private companies, partnerships, and cooperatives, as well as public entities, nonprofit corporations, and tribes are eligible to tap into some or all of the programs noted below. Business and Industry Guaranteed Loans (B&I). The B&I program guarantees up to 80 percent of a loan, up to $10 million, made to a private business by a commercial lender. Proceeds can be used for buildings, equipment, and related real estate activities. Intermediary Relending Program. This program capitalizes locally run revolving loan funds for small businesses not able to secure adequate bank financing on their own. Like the B&I program, resources from the Intermediary Relending program can be used for real estate and equipment purposes. Community facility programs offer grants, loans, and loan guarantees designed to develop essential community facilities for public use in rural areas - schools, medical facilities, fire and rescue Brownfields Federal Programs Guide 13 September 2004 ------- stations, public buildings, and transportation. Assistance is generally available to municipalities, counties, special-Opurpose districts, tribes, and non-profit corporations. Key programs include: Community Facility Program: Direct and Guaranteed Loans, and Facility Grants. The guarantee portion of this program provides an incentive for commercial lending that will develop essential community facilities. USDA guarantees loans made by banks for projects such as public buildings, police and fire stations and equipment, septic systems, and recreational facilities. The direct loan program does the same thing, except that USDA functions as the lender. In either case, the loans can run for up to 40 years, or the useful life of the facility (if less than that). In the case of distressed rural communities, who cannot qualify for a private or USDA loan for essential community facilities, USDA Rural Development can make grants for these purposes. These are typically limited to $50,000 and may require some cost sharing. Water and Waste Disposal Loans, Loan Guarantees, and Grants. USDA Rural Development offers several programs aimed at developing and repairing water, sewer, storm drainage, and solid waste systems. Loans can run for up to 40 years. These programs can be used to support industrial development activities. BROWNFIELDS PARTNERSHIP ROLE The brownfields role for USDA Rural Development is starting to merge, as rural communities make the connection between business and community facility needs and the problems and opportunities fo brownfield sites. To this end, USDA has committed to continuing agency support of communities that want to convert existing brownfields into natural open space parks and recreational facilities, as well as helping rural brownfield communities apply for USDA grants and loans that could be used in these situations. Contacts Inquiries about program applications in specific areas are handled by the agency's state-based field staff, whose contact information can be accessed through contact maps on the agency's web site - www.rurdev.usda.gov. Washington-based program contacts: William F. Hagy III Deputy Administrator, Business Programs bill.hagy@usda.gov Pandor H. Hadjy Assistant Deputy Administrator, Business Programs pandor.hadjy@usda.gov Georg Shultz Special Assistant Deputy Administrator, Business Programs georg.shultz@usda.gov Brownfields Federal Programs Guide 14 September 2004 ------- U.S. Department of Commerce Economic Development Administration http://www.eda.gov BROWNFIELD LINKS Q Funds infrastructure enhancements in designated redevelopment areas or economic development centers that serve industry and commerce - targeted to state, local, and tribal governments; public and private nonprofit organizations Q Funds state and local implementation of strategies to attract private-sector investment in projects that strengthen an area's economic base - targeted to state and local governments Q Provides planning grants to economically distressed states and regions - targeted to state, regional, local, and tribal governments Q Funds infrastructure modernization at closed military bases - targeted to local governments, development organizations, reuse authorities Q Offers revolving loan funds to stimulate private investment - targeted to local governments, states, regional development organizations THINK ABOUT...using EDA to address cleanup and site preparation needs at reviving industrial areas...street, utility, port, and other infrastructure needs at brownfieldproject sites...site revitalization planning...site marketing The Economic Development Administration (EDA) has been a pioneer and active participant in economic development and community revitalization for the past 30 years. EDA's mission is "to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy." Long before the term "brownfields" was coined, the EDA implemented programs to help economically distressed communities alleviate the adverse conditions created by unemployment. It continues to provide funding to promote infrastructure development, business development, and economic revitalization. Since 1997, EDA has invested more than $350 million in over 350 brownfields revitalization projects. In FY 2003, EDA provided $29 million in funding for 28 brownfield projects. EDA and EPA since 1995 have had a memorandum of understanding that states their intended objective to coordinate economic development and environmental protection goals through federal brownfield initiatives. RESOURCES USEFUL TO BROWNFIELD EFFORTS Several EDA programs can be used to facilitate the redevelopment of brownfield sites. These include the Public Works and Economic Development program; the Economic Adjustment program; and the Planning Program for Economic Development Districts, Indian Tribes and Redevelopment Areas, and States and Urban Areas. Public Works and Economic Development Program. The Public Works and Economic Development Program is EDA's primary initiative that directly affects the redevelopment of brownfield sites. The program's funding is used to help distressed communities attract resources from the public and private sectors in order to promote economic development. Since 1965, the program has helped fund roads, water and sewer facilities, port improvements, and other infrastructure enhancements that serve industry and commerce; it has been directly responsible for creating more than 1.5 million jobs. Grants Brownfields Federal Programs Guide 15 September 2004 ------- are available to state and local governments, Indian tribes, and public and private nonprofit organizations. The Public Works Program received $202 million in 2003, with an average grant of $905,000. Economic Adjustment Program. The Economic Adjustment Program helps states and local governments that experience sudden and severe economic dislocation or long-term economic deterioration to design and implement adjustment and redevelopment strategies that will strengthen their economic base. Many communities across the country suffer economic decline from a variety of factors, including corporate or industrial restructuring, defense base closures, federal laws and regulations, environmental degradation, and natural disasters. The program's funding encourages states and local governments to implement strategies that will attract private-sector investment and participation in projects that strengthen an area's economic base. EDA has targeted the redevelopment of brownfields as a necessary and vital component in fulfilling the program's objectives. The Economic Adjustment program received $45 million in 2003 and provided an average grant of $206,000. Planning Program for Economic Development Districts, Indian Tribes, Redevelopment Areas, and States and Urban Areas. EDA has developed two planning programs, with overlapping policies, to help states and local governments create new jobs, retain existing jobs, and stimulate industrial and commercial growth in economically-distressed areas. The Planning Program for Economic Development Districts, Indian Tribes, and Redevelopment Areas and the Planning Program for States and Urban Areas provide funding that helps the planning process at both the micro and macro levels of government. Through the Districts, Tribes, and Redevelopment Areas Program, the EDA promotes workforce development activities in distressed areas at the local level. Presently, EDA supports 65 Indian tribes and over 300 economic development districts in the formation and implementation of enterprises intended to generate and retain jobs in these communities. Grants under the States and Urban Areas Program assist economically distressed states, sub-state planning regions, cities, and urban counties to undertake significant new economic development planning, policy-making, and implementation efforts. Planning grants, which totaled $24 million in 2003, ranged from $10,000 to $200,000. BROWNFIELDS PARTNERSHIP ROLE A big part of EDA's brownfield partnership role is to support multi-agency, sector-based brownfields redevelopment efforts that are consistent with its mission, focus, investment policy guidelines, and statutory authorities. For example, EDA is interested in supporting inter-agency efforts to revitalize brownfields that enhance regional economic competitiveness and support market-driven cluster development strategies. To this end, EDA has committed to: Specifically identifying brownfields redevelopment in its annual Notice of Funding Availability; Supporting community and faith-based brownfields redevelopment strategies; Maintaining a National Brownfields Coordinator position in its headquarters office; and Brownfields Federal Programs Guide 16 September 2004 ------- Continuing efforts to link brownfields assessment and cleanup activities with economic development. These commitments would carry on the agency's efforts, as exemplified by three project examples. In 2001, EDA invested $1 million in the Florida's Tampa Port Authority for infrastructure (i.e., bulkhead) improvements needed to accommodate the expansion plans of industrial tenants, as well as attract new firms interested in locating in the Tampa Port. The seawall improvements will position the authority to allow more boat traffic, serve as a catalyst for development or reuse of underused port property, and improve safety for the Port Authority and companies that lease space. The EDA investment is expected to result in the creation of 225 private sector jobs with over $10 million in private capital investments. In 2000, EDA invested $2 million with the Bridgeport Port Authority in Connecticut to support the redevelopment of 50 acres of contiguous, vacant, waterfront brownfield property in the Bridgeport Harbor. The redevelopment effort is expected to create over 500 new jobs, retain 200 existing jobs, and leverage over $18 million in new private investment. The first tenant, Derecktor Shipyards, is assembling two 235-foot Alaska Ferries in a new facility, while the remainder of the site is being improved. In 1998, EDA provided $600,000 in economic adjustment assistance to the Racine (Wisconsin) County Economic Development Corporation to capitalize an industrial building revolving loan fund (RLF) that offers needed gap financing for businesses located within the city of Racine. This RLF targets under used, abandoned, and blighted properties for redevelopment. Proposed EDA reauthorization legislation would formalize EDA's role by extending brownfield eligibility to all of the agency's traditional programs. Contact Dennis Alvord Deputy Director, Intergovernmental Affairs Economic Development Administration U.S. Department of Commerce, Room 7816 14th St. & Constitution Ave., NW Washington, DC 20230 (202) 482-4320 Fax: (202) 482-0995 DAlvord@eda.doc.gov Brownfields Federal Programs Guide 17 September 2004 ------- U. S. Department of Commerce National Oceanic and Atmospheric Administration http://www.noaa.gov BROWNFIELD LINKS Q Provides technical and financial assistance for coastal resource protection and management - targeted to coastal (including Great Lakes) state, territorial, and local governments Q Funds workshops in Showcase Communities on brownfields-related coastal management issues - targeted to local governments in Showcase Communities Q Coordinates a new "Portfields" initiative (initially targeted to port areas in New Bedford MA, Tampa FL, and Bellingham WA) THINK ABOUT,, Planning for a revitalized waterfront and restoring coastal resources,,,linking port revitalization needs with broader economic developmentpurposes...linking site design needs at waterfront brownfields to end use planning The National Oceanic and Atmospheric Administration (NOAA) and the Department of Commerce (DoC) work to balance environmental and economic needs and benefits at waterfront locations. Since 1997, DoC and NOAA have contributed funding, facilitation, and/or technical expertise at coastal brownfield sites in New Jersey, New York, Virginia, Wisconsin, Illinois, California, and others. With its coastal focus and experience in solving critical environmental challenges, NOAA balances environmental and economic needs in many ways, by: rebuilding community waterfronts and redeveloping brownfield sites through its strong partnerships with coastal states' coastal zone management programs; revitalizing port areas through the use of advanced marine transportation tools and services; and helping to improve the quality of life, environment, and regional economy by working with local communities and other agencies on coastal brownfield sites. NOAA's Office of Sustainable Development and Intergovernmental Affairs sponsors local workshops focusing on brownfields revitalization. These workshops help communities gather input from all parties involved in the revitalization process, creating strong partnerships for more efficient action. NOAA's Coastal Zone Management Program, through its strong partnerships with coastal states, helps revitalize community waterfronts and redevelop brownfield sites. And NOAA's Office of Response and Restoration protects and restores contaminated coastal resources and habitats through cost-effective environmental cleanup and restoration solutions. NOAA does not offer resources through a consolidated brownfields program, nor are brownfields managed by one particular office. Rather, existing agency programs provide resources and technical assistance to coastal communities for brownfields cleanup and reuse. RESOURCES USEFUL TO BROWNFIELD EFFORTS Office of Response and Restoration. This office protects and restores contaminated coastal resources and habitats (including brownfields) by first assessing and evaluating risks and then Brownfields Federal Programs Guide 18 September 2004 ------- implementing cost-effective environmental cleanup and restoration solutions. ORR is currently providing this support is 28 coastal communities. Coastal Zone Management Program, through its strong partnerships with coastal states, helps revitalize community waterfronts and direct resources useful to helping redevelop brownfield sites. NOAA's Office of Education and Sustainable Development has provided funding to and sponsored workshops for coastal cities to assist them in more thoroughly planning their brownfields redevelopment activities. NOAA's Coastal Services Center helps develop the expertise of coastal resource professional by giving them the tools to engage communities in land and water issues, including the redevelopment of brownfields. Through Center-led workshops, planners and managers build valuable skills to help local governments collaborate with the public and manage conflict. What NOAA Brings to the Table for Coastal Revitalization Portfields. NOAA's premier brownfield effort is its leadership of the interagency Portfields effort, which includes hosting interagency meetings to coordinate of three initial Portfields projects. NOAA has sponsored and facilitated local kick-off meetings in Tampa, New Bedford, and Bellingham. The kick-off meetings brought together the Portfields Federal agencies, the port, and other stakeholders to identify the port's goals and needs; match federal agencies' capabilities and resources to the port's needs; and develop an action plan. NOAA provided $90,000 to support the implementation of the Portfields pilots, and technical expertise, tools and services to the pilot ports based on the pilot's needs. This includes risk assessment, cost-effective cleanup strategies, habitat restoration, planning, and environmental permit review. NOAA, in partnership with state coastal management programs, will identify opportunities to support Portfields pilots through implementation of the Coastal Zone Management Act. Eligible activities may include community and waterfront revitalization planning, coastal resource protection and enhancement of public access. BROWNFIELDS PARTNERSHIP ROLE NOAA is working to expand their activities at coastal brownfield sites. Potential services include: Working to assess and safely clean up coastal contamination to revitalize local economies. Promoting the compatible and sustainable use of coastal areas for urban fisheries, port and industrial activities, recreation, and tourism Developing and delivering a decision-making database and mapping tools to assist in repairing sites and restoring habitat. Lending expertise in advanced marine transportation tools and services that will revitalize communities. More specifically, NOAA has committed to leading an interagency "Portfields" project (as described above) that will focus on the redevelopment and reuse of idled or abandoned lands in and around ports, harbors, and marine transportation hubs. The agency will also provide funding to coastal Brownfields Federal Programs Guide 19 September 2004 ------- states for brownfields redevelopment as part of waterfront revitalization efforts, and document successful brownfields waterfront revitalization approaches. Contacts Richard Legatski NOAA Office of Legislative Affairs (202) 482-4638 Kenneth Walker U.S. Department of Commerce National Oceanic and Atmospheric Administration (NOAA) MC: SSMC 1305 East West Highway, Rm. 11340 Silver Spring, MD 20912 (301) 713-3113 Ext. 157 Fax:(301)713-4367 kenneth.walker@noaa.gov NOAA Coastal Brownfields http://www.brownfields.noaa.gov/welcome.html Portfields http://www.brownfields.noaa.gov/htmls/portfields/portfields.html Coastal Zone Management Program BAD LINK http://www.nos.noaa.gov/ocrm/czm/welcome.html Brownfields Federal Programs Guide 20 September 2004 ------- U.S. Department of Defense Army Corps of Engineers http://www.usace.army.mil BROWNFIELD LINKS Q Executes projects emphasizing ecosystem restoration, inland and coastal navigation, and flood and storm damage reduction that may be brownfield-related. Projects are identified by communities with their local Corps districts and executed if they are recommended by the Administration and authorized by Congress - targeted to state and local governments Q Provides technical support on a cost-reimbursable basis to federal agencies for brownfield activities - targeted to local governments working with federal agencies THINK ABOUT,,,requesting assistance from the Corps for planning for projects and related amenities in waterfront situations..defining Corps eligible projects like riverbank restoration that can enhance brownfield revitalization efforts The U.S. Army Corps of Engineers manages and executes engineering, construction, and real estate programs for the Army and Air Force, as well as for other federal agencies as assigned. It also has responsibility for investigating, developing, and maintaining the nation's water and related environmental resources, including projects to assure water quality control and enhancement of outdoor recreation, among other things. The Corps of Engineers position is that "for a brownfield reuse to become truly sustainable, a three-pronged approach that considers economic, environmental, and cultural resources must be considered not only in the short term, but also in the long term." The Corps maintains that by bringing ecology back into the urban setting, where the majority of brownfields are located, it can help reverse and prevent suburban sprawl by encouraging inhabitants to reside within established, developed areas. RESOURCES USEFUL TO BROWNFIELD EFFORTS Technical Assistance. While the Corps is not authorized to conduct a brownfield program per se and does not provide grant money to communities, it can conduct specific projects that support brownfield assessment, cleanup, and revitalization efforts to help communities achieve greater environmental sustainability and economic revitalization. Those projects generally relate to ecosystem restoration, inland and coastal navigation, and flood and storm damage reduction. They may involve any of an array of Corps authorities, such as planning assistance and beneficial use of dredged material. Reimbursable Support. The Corps' reimbursable support to communities is limited (under section 211 of the 2002 Water Resources Development Act) to those activities for which it is "uniquely qualified." Under the Economy in Government Act, the Corps may perform work, including technical assistance for brownfield-related activities, for non-DoD federal agencies on a cost-reimbursable basis. Civil Works Funding. Communities interested in obtaining assistance through the Corps' Civil Works Program can contact their local Corps district. Costs for most projects are shared between the federal government and the local cost-share partner, who must comply with all Corps procedures. Centers of Corps Expertise. Several organizations in the Corps have demonstrated capability and expertise in specialized areas related to brownfields. The Hazardous, Toxic, and Radioactive West Brownfields Federal Programs Guide 21 September 2004 ------- Center of Expertise (HTRW-CX) focuses on environmental remediation and other environmental compliance issues through a variety of technical areas, such as environmental regulation and laws; innovative technologies; environmental and ecological risk assessment; chemical, environmental, and geotechnical engineering; contracting; and cost recovery. Additional centers focus on the preservation of historic buildings and structures and rapid response to hazardous, toxic, and radioactive waste incidents. BROWNFIELDS PARTNERSHIP ROLE The Corps may provide planning and technical assistance to communities with brownfields. For major water resource-related endeavors, the Corps will guide communities to the appropriate Congressional contacts for authorization and appropriation support. The Corps is also partnering with EPA on eight pilots to foster interagency and stakeholder partnerships that promote integrated solutions to restoring and managing water resources of degraded urban rivers. Whenever feasible, the Corps will use its existing Civil Works authorities to promote more integrated regional water resource plans that balance revitalization and environmental goals. Contacts Kip Huston 202-761-4574 Nancy Porter 202-566-2751 Jane Mergler 202-761-0314 Mark Mimick U.S. Army Corps of Engineers Hazardous, Toxic & Radioactive Waste Center of Expertise Specialists 12565 West Center Road Omaha, Nebraska 68144-3869 402-697-2558 mark.l.mimick@usace.army.mil Program Description and Regional Contacts http://brownfields.sac.usace.army.mil/index.html Hazardous, Toxic & Radioactive Waste Center of Expertise http://www.environmental.usace.army.mil/info/technical/hp/hpwelcome/hprad/hpexpert/hpexpert.html Preservation of Historic Buildings and Structures http://WAVW.nws.usace.army.miVPublicMenu/Menu.cfm?sitename=historic&pagename=mainpage Rapid Response HTRW Center http://www.nwo.usace.army.mil/html/cd-rr/default.htm Brownfields Federal Programs Guide 22 September 2004 ------- U. S. Department of Defense Office of Economic Adjustment http://www.oea.gov BROWNFIELD LINK Q Provides extensive information on redevelopment of closed military base properties -may benefit all brownfield community stakeholders THINK ABOUT,,,offsettingproject technical information needs,,,usingDOD/OEA models to help with conceptualization of prospective reuse strategies The U.S. Department of Defense (DOD), through its work in communities affected by military base realignments and closures (BRAC), is experienced in economic adjustment activities. DOD's primary tools for its economic adjustment projects are the Defense Economic Adjustment program and the BRAC Program, which govern the department's efforts to close surplus military facilities, return them to local communities, and help them with site remediation and redevelopment. The Office of the Secretary of Defense coordinates DOD's efforts, operating through the Deputy Under Secretary of Defense (Installations and Environment) and the Office of Economic Adjustment. RESOURCES USEFUL TO BROWNFIELD EFFORTS The Office of Economic Adjustment (OEA) has gained extensive experience with redevelopment where property has some level of contamination, and this information may be useful to both military and non-military impacted communities who must address the problems of obsolete and abandoned sites. OEA's goal is to integrate the cleanup issues into the overall planning for redevelopment, and since many base closure actions result in extensive planning and review of economic development goals, there is usually an excellent opportunity to adapt the techniques of brownfield redevelopment as elements of a larger set of community development actions. OEA staff represent a broad and extensive range of experience with respect to the military: economic, industrial and community development; urban and land use planning; program and economic impact analysis; real estate; and worker retraining. Project managers also bring knowledge and a working network with other federal agencies to help communities put together an adjustment program that combines federal, state, local, and private resources. BROWNFIELDS PARTNERSHIP ROLE DoD has committed to clean up and encourage redevelopment at closed and realigned DoD bases and make them available as community assets for productive reuse. Brownfields Federal Programs Guide 23 September 2004 ------- Contacts Joe Cartwright, Senior Project Manager Office of Economic Adjustment 400 Army Navy Drive Arlington, VA 22202-2884 (703) 604-5844 Fax: (703) 604-5843 joseph.cartwright@osd.mil Kurt Kratz Director of Environmental Cleanup Office of the Deputy Under Secretary for Installations and Environment (I&E) Department of Defense 3C765 The Pentagon Washington, DC 20301-3400 (703) 697-5372 (703) 695-4981 Fax kurt.kratz@osd.mil Defense Environmental Network and Information eXchange http ://www. denix. osd.mil Base Realignment and Closure http://www.defenselink.mil/brac Brownfields Federal Programs Guide 24 September 2004 ------- U.S. Department of Energy http://www.doe.gov BROWNFIELD LINKS Q Funds research on assessment and cleanup technology - targeted to universities, labs, and private industry Q Offers information on integrating brownfield redevelopment with energy efficiency and sustainability- targeted to all brownfield community stakeholders THINK AsouT,,,using new, applicable DOE-supported remedial technologies to reduce cleanup costs...linkingprospective site users to DOE information on technology innovations The Department of Energy (DOE) has been the caretaker and manager of the nation's arsenal of nuclear weapons, the facilities that manufacture the weapons, and the property on which the weapons are located. Many DOE properties that were once busy with nuclear manufacturing and warehousing activity now lie dormant or idle, due in part to the downsizing of the military in general and to the closure of nuclear weapons facilities in particular. As a result, DOE has been forced to consider the future uses of these abandoned and contaminated properties. Many contain low levels of contamination because they were used only as buffer zones for the nuclear weapons facilities; just a few parcels were used in the production of nuclear weapons and are highly contaminated. RESOURCES USEFUL TO BROWNFIELD EFFORTS Office of Energy Efficiency and Renewable Energy/Center of Excellence for Sustainable Development. This DOE office serves as a resource center on sustainable development and addresses several relevant issues, including land use planning, transportation, municipal energy, green building, and sustainable businesses. Brownfield redevelopment is considered a key strategy for implementing sustainable development successfully, and the center provides a number of resources. The web site www.sustainable.doe.gov also provides a bibliography. Office of Building Technology, State and Community Programs (BTS). BTS works with government, industry, and communities to integrate energy technologies and practices to make buildings more efficient and communities more livable. The resources available through BTS can help ensure that brownfield cleanup is connected to energy efficiency and sustainable redevelopment. The BTS web site is www.eren.doe.gov. Office of Environmental Management. DOE conducts research, development, and engineering on assessment and remediation of contaminated sites. Its Office of Environmental Management (EM) pays for cleanup of DOE's contaminated sites. EM also supports funding for R&D on cleanup and assessment technologies; although these technologies are developed for and/or tested on DOE's own contaminated sites, many have broader applicability. BROWNFIELDS PARTNERSHIP ROLE DOE can support brownfield reuse by providing technical assistance in the field of energy use and environmental remediation, sharing lessons learned about cleanup and long-term stewardship efforts, and funding for relevant research and development. The energy policy developed by the Bush Administration's acknowledges this role by specifically proposing to link energy with brownfields, Brownfields Federal Programs Guide 25 September 2004 ------- recommending that: "...the President direct the Administrator of the Environmental Protection Agency (EPA) to work with local and state governments to promote the use of well-designed CHP and other clean power generation at brownfield sites, consistent with the local communities' interests. EPA will also work to clarify liability issues if they are raised at a particular site." DOE also commits to: Promoting the construction of buildings that incorporate energy efficient, renewable energy and distributed energy technologies at brownfields; Developing regional relationships with federal and state partners to address site or brownfields issues; Providing technical assistance in the field of environmental cleanup and stabilization to brownfields/ revitalization efforts; Funding related environmental remediation science and technology development; Linking Brownfields Pilot activities with DOE's cleanup and remediation activities to create more attractive and sustainable communities. Contacts Melinda Downing U.S. Department of Energy Office of Intergovernmental and Public Accountability EM-11 1000 Independence Avenue, SW Room1F087 Washington, DC 20585 (202) 586-7703 Fax: (202) 586-0293 melinda.downing@em.doe.gov Center of Excellence for Sustainable Development http://www.sustainable.doe.gov Office of Building Technology, State and Community Programs http: //www. eren. do e .gov/buildings Brownfields Federal Programs Guide 26 September 2004 ------- U.S. Department of Health and Human Services Agency for Toxic Substances and Disease Registry http://www.atsdr.cdc.gov/ BROWNFIELD LINKS Q Provides grants to cleanup and redevelop brownfield sites while preventing future health hazards - targeted to local health departments in showcase communities Q Studies and provides training in environmental health impacts on minority communities - targeted to academic institutions and various brownfield community stakeholders Q Offers assessment of environmental sampling data - targeted to all brownfield community stakeholders THINK AsouT,,,using ATSDR review to enhance community outreach efforts at brownfield sites...corroborate community outreach informational materials The Agency for Toxic Substances and Disease Registry (ATSDR), created by the 1980 Superfund legislation and operating within the Department of Health and Human Services, seeks to prevent human exposure to hazardous substances in the environment. Its public health functions include: assessments of sites, the analysis and reporting of collected assessment data, education and training concerning hazardous substances, epidemiological surveillance studies, and the mitigation of releases of hazardous substances into the environment. ATSDR established the Office of Urban Affairs (OUA) to primarily handle its brownfield activities. This office also focuses on environmental justice and minority health concerns. RESOURCES USEFUL TO BROWNFIELD EFFORTS The agency does not make specific brownfield funding awards. Instead, the extent of AT SDR s involvement at an individual site will depend on the health issues in question, the ability of ATSDR's state and local health department partners to adequately address those issues, and ATSDR resource capabilities. Minority Health Initiative. ATSDR in 1987 established a Minority Health Initiative to focus on the demographic characteristics, health perspectives, health communication patterns, and health professional and community health education needs of disadvantaged communities and persons of color. This effort has evolved into the agency's Minority Health/Environmental Justice Program, which can help develop and execute environmental risk communication and education programs to mitigate and prevent adverse health effects from hazardous substances in disadvantaged communities and those with people of color Review and Assess Environmental Sampling Data. ATSDR can review and assess environmental sampling data and other site-related information in order to determine if past, current, or future exposure to hazardous substances might have public health consequences. In essence, ATSDR or state health departments can provide an independent opinion on site conditions and offer recommendations on safe redevelopment. In those rare cases where it appears that significant exposure to hazardous chemicals is occurring or did occur, ATSDR may conduct an investigation to characterize the public health significance of site-related exposures. Brownfields Federal Programs Guide 27 September 2004 ------- Health-Related Information Sharing. ATSDR can provide health-related information on specific hazardous substances; coordinate a response to a real or perceived elevated incidence of disease near a site; and help individual workers or community members find experienced, private medical attention for significant hazardous substance exposure. Contacts Steven L. Jones Senior Regional Representative ATSDR Liaison Officer to EPA Headquarters Office of Regional Operations Ariel Rios Building 1200 Pennsylvania Avenue, NW MC5204G Washington, DC 20460 (703) 603-8729 sxj6@cdc.gov Office of Urban Affairs: http://www.atsdr.cdc.gov/OUA/ Francisco A. Tomei Torres, Ph.D. Minority Health Program Specialist Health Disparities Unit NCEH/ATSDR Centers for Disease Control and Prevention 1600 Clifton Rd., NE, , MS-E29 Atlanta, GA. 30329-4018 404 498 0664 888 422 8737, x0664 Fax: 404 498 0093 francisco.tomeitorres@cdc.hhs.gov Brownfields Federal Programs Guide 28 September 2004 ------- U. S. Department of Health and Human Services National Institute of Environmental Health Sciences http://www.niehs.nih.gov/wetp/program/brownfields.htm BROWNFIELD LINKS Q Conducts pilot programs to recruit minority workers to the environmental field under the Minority Worker Training Program and the Brownfields Minority Worker Training Programs- currently targeted to six academic institutions and training consortia - (Xavier University of Louisiana, Laborers-AGC Education and Training Fund, Center to Protect Workers Rights, National Puerto Rican Forum, and the New Jersey/New York Consortium) Q Provides grants to organizations to develop model occupational safety and health training for workers who perform dangerous jobs in hazardous waste management and remediation - targeted to non-profit organizations with an established track record of conducting health and safety training (currently, 18 grantees) Q Conducts research and outreach on environmental hazards and cleanup technologies targeting Superfund sites and other sites such as brownfields Q Provides grants to for-profit companies under the Advanced Training Technology (ATT) program - targeted to companies employing HAZMAT workers, emergency responders, and small business participants in the SBIR and STTR programs THINK ABOU rebuilding partnerships to strengthen training programs to increase cleanup service provider options in areas with numerous brownfield sites Among other things, the National Institute of Environmental Health Sciences (NIEHS) studies and addresses the environmental causes of human health concerns, and tries to link its basic research, community outreach, and worker-training programs to EPA's brownfields assessment program. RESOURCES USEFUL TO BROWNFIELD EFFORTS Basic Research. One of NIEHS's research and outreach efforts focuses on environmental hazards specific to poor and minority communities. The agency supports a series of programs that translate environmental health research findings into information or tools that can be used by public health professionals and the public to support community involvement in identifying and investigating health concerns, including those involving contaminated sites Hazardous Waste Worker Training. The NIEHS worker education and training program has established an effective national framework to develop and provide comprehensive training that is needed to address Superfund cleanups, chemical emergency responses, RCRA corrective actions, and environmental restoration in urban communities surrounding brownfield sites. It is able to assess policy, funding, and training issues of utmost concern to this worker community. Its website www.niehs.nih.gov/wetp/grant/summary.htm acts as an extension of the training program network, providing information on issues that are important to both workers and trainers who are engaged in activities related to hazardous substance generation, response, removal, and containment. In fiscal 2003, $30 million was allocated to continue support efforts to train hazardous waste workers and emergency responders. Minority Worker Training Program. NIEHS training efforts currently include the Minority Worker Training Program (MWTP), which offers a series of national pilot programs to recruit minority Brownfields Federal Programs Guide 29 September 2004 ------- workers into the environmental field. The program targets young people who live in areas where they may be at risk of exposure to contaminated properties so that they can be both informed about the environmental issues in the area as well as compete for jobs that are created when sites are cleaned up and redeveloped. The MWTP works with academic institutions, with a particular focus on historically black colleges and universities, as well as public schools and community-based organizations located in or nearby impacted areas (see list above). MTWP has received more than $3 million over the past two years to support its efforts. Brownfields Minority Worker Training Program. The BMWTP, which began in 1998, broadens the MWT program to provide comprehensive training to disadvantaged residents and to foster economic and environmental restoration to communities impacted by brownfields. Funding for this program is provided by interagency agreement with the US EPA, and totaled $2.2 million for the year ending August 31, 2004. The BMWTP has reached some 1,860 trainees since it began, and has enjoyed a 66 percent successful employment rate over the past five years. For further information, see the web site - www.niehs.nih.gov/wetp/program/minority.htm. Superfund Worker Training Grants Program. Originally authorized as part of the Superfund program, these training grants provide model occupational safety and health training for workers and their supervisors who perform dangerous jobs in the nation's hazardous waste management and remediation programs. The program enhances rather than replaces private-sector training responsibility by demonstrating new and cost-effective training techniques and materials. There are 18 primary grantees, and NIEHS reports that more than 1 million people across the country have received training. Advanced Technology Training Program. ATT focuses on the development of E-Learning products for health and safety training needed by HAZMAT workers, emergency responders; it directs its resources towards small business participants in the Small Business Innovative Research (SBIR) and Small Business Technology Transfer Research (STTR) programs. BROWNFIELD PARTNERSHIP ROLE NIEHS contributes biomedical, public health, environmental research, and training programs for those engaged in environmental efforts such as cleanup and remediation and provides outreach and education to the public and other organizations across the country regarding these issues. To this end, the agency commits to continuing to administer and fund the BMWTP program in collaboration with EPA's Brownfields Office to increase workforce development opportunities for residents surrounding brownfields communities; and linking other program grantees with brownfields communities to address other worker-training needs and issues. Brownfields Federal Programs Guide 30 September 2004 ------- Contacts Sharon D. Beard National Institute of Environmental Health Sciences POBoxl2233,MDEC-25 Research Triangle Park, NC 27709-2233 (919)541-1863 Fax:(919)541-0462 beard 1 @niehs.nih. gov Joseph (Chip) Hughes, Jr. U.S. Department of Health and Human Services National Institute of Environmental Health Science (NIEHS) MD EC-25 Worker Education and Training Program 79 TW Alexander Drive Research Triangle Park, NC 27709-2233 (919)541-0217 Fax:(919)541-0462 hughes3 @niehs .nih.gov Brownfields Federal Programs Guide 31 September 2004 ------- U.S. Department of Housing and Urban Development http://www.hud.gov BROWNFIELD LINKS Q Provides block grants and competitive awards for revitalizing entitlement communities - targeted to state and local governments Q Offers federally-guaranteed loans for large economic development and revitalization projects, typically in entitlement communities - targeted to state and local governments Q Provides priority status for certain federal programs and grants for HUD-designated Empowerment Zone or Enterprise Communities - targeted to 80 local governments with low-income or distressed areas Q Provides options for meeting safe and affordable housing needs in developed areas THINK AsouT,,,using HUD resources to meet virtually any brownfield need site acquisition, assessment, cleanup, demolition, clearance, construction, or structural rehabilitation...addressing residential lead paint problems The U.S. Department of Housing and Urban Development (HUD) has six brownfield-applicable HUD programs (listed below) that can provide resources for the renewal of economically distressed areas, including brownfield sites. HUD takes the position that brownfields provide potential opportunities for neighborhood revitalization and economic redevelopment, consistent with its own mission. Community Development Block Grant Program; Section 108 Loan Guarantee Program; Brownfield Economic Development Initiative (and the related Economic Development Initiative); HOME Investment Partnership Program; Empowerment Zones and Enterprise Communities Initiative; and Lead-Based Paint Hazard Control Grant Program. RESOURCES USEFUL TO BROWNFIELD EFFORTS Community Development Block Grant Program. Since its enactment in 1974, the Community Development Block Grant (CDBG) program has provided annual grants to states and eligible metropolitan cities and urban counties ("entitlement communities") for housing, community improvement, and economic development activities. Communities use CDBG funds to "revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services." The program increasingly has driven economic development activities, including brownfield redevelopment, that have the potential to stimulate job and business opportunities in blighted communities. HUD distributes 70 percent of the CDBG formula appropriations to more than 1,100 entitlement communities, and the remaining 30 percent of the formula funds go to the states for distribution to non-entitlement small cities and counties. Entitlement communities administer their own programs and have broad discretion in the selection of activities that they carry out each year. States have broad discretion in the method of distribution of funds to non-entitlement units of general local government. In Hawaii and U.S. territories, HUD makes grants directly to non-entitlement counties. Brownfields Federal Programs Guide 32 September 2004 ------- CDBG recipients may choose to implement activities themselves directly, through contracts, or they may use sub-recipients (eligible public or non-profit organizations) to carry out activities on their behalf. CDBG recipients may also directly assist for-profit businesses for economic development project and may also carry out brownfield redevelopment projects. The CDBG funded activity, in addition to being eligible must also meet one of the program's three objectives: a) benefit low- and moderate-income persons b) prevent or eliminate slums or blight; or c) meet other urgent community development needs. For fiscal 2004, Congress appropriated about $4.4 billion for the CDBG program. Over the past five years, nearly 100 cities and towns of all size have used CDBG resources directly for brownfield purposes, in various ways including: preparing plans for redevelopment or revitalization of brownfield sites; acquiring sites; carrying out environmental site assessment; clearing sites, and demolishing and removing buildings; rehabilitating buildings; removing or cleaning up contamination from sites or structures; and carrying out the redevelopment, including constructing real estate improvements. Cities like Provo Utah have used CDBG to capitalize local RLFs for brownfield purposes. The small town of Newberg, Oregon, used $280,000 through its state CDBG program for cleanup and site clearance at an abandoned auto dealership downtown, which is being converted into convert to a new retail center. Dallas has used CDBG to pay for cleanup at sites being used for housing. And Wisconsin has been reserving $2.5 million of its state CDBG allocation for small cities to provide them with resources to pay for site assessments and cleanups. One of CDBG's real values as a program is that it can help address smaller neighborhood based projects as well as larger projects, where initial resource injections are needed to help with site cleanup and related preparation. Also, HUD funding can be used in ways that EPA support cannot, for cleanup of all types of contaminants as well as necessary redevelopment activities like demolition. In this way, it can be a nice complement. Section 108 Loan Guarantee Program. CDBG recipients are eligible for funding through the Section 108 Loan Guarantee Program. Section 108 typically provides federally guaranteed loans for large economic development and revitalization projects, housing, and public infrastructure projects. CDBG entitlement recipients may borrow an amount equal to five times the recipients' latest CDBG entitlement grant. Small cities must work through their states, who determine the maximum amounts their recipients may borrow, up to a statewide maximum of five times the state's latest CDBG allocation. CDBG recipients must provide security of the Section 108 guaranteed loan (often the assets of the assisted project) and are required to pledge their current and future CDBG grants. The level of certainty and security provided by the Section 108 loan guarantee program will help stimulate private development and investment within the targeted communities. Section 108 guaranteed loans must be used for projects that further the objectives of the CDBG program, including the CDBG national objectives. Section 108 projects may also be used to acquire and redevelop brownfield sites. Since 1978, Section 108 has provided approximately $6.2 billion in loan guarantee authority for over 1,400 projects. In recent years, many Section 108 supported projects have Brownfields Federal Programs Guide 33 September 2004 ------- involved brownfield properties. In fiscal 2004, Congress provided $275 million in new guarantee authority. Economic Development Initiative (EDI). In 1994, HUD launched the Economic Development Initiative (EDI) to provide additional security to recipients of Section 108 guaranteed loans, as well as additional financial assistance for development projects that these loans finance. EDI funds spur economic development and revitalization by making projects more feasible and financially secure. Originally, cities competed for EDI grants; in recent years, though all EDI funding decisions have been determined through congressional earmarks. Brownfields Economic Development Initiative (BEDI). In 1998, HUD developed the Brownfields Economic Development Initiative (BEDI) grant program as part of the overall EDI. BEDI grants target brownfield redevelopment activities and are intended to simulate private and public investments within local communities. They were designed to provide additional security to recipients of Section 108 guaranteed loans which must be used in tandem with BEDI grants - as well as additional financial assistance for development projects that these loans finance. BEDI addresses Section 108 recipient concerns that CDBG funding will be at risk in the event of default on Section 108 loans used for brownfield purposes. Specifically, BEDI funds may be used to pay a portion of project costs, thereby reducing overall financial liability, or they may be used as a loan loss reserve or debt reserve. BEDI has had particular success in increasing access to capital for small businesses and entrepreneurs. In 2003, the program awarded $29.1 million in grants and the requisite Section 108 participation guaranteed another $117 million in loans. BEDI grants total $153 million since 1998, along with a total of $727 million in Section 108-guaranteed loans. The BEDI program received $25 million in appropriated funds in FY 2004. HOME Investment Partnerships Program. Established in 1990 under the Cranston-Gonzalez National Affordable Housing Act, the HOME Investment Partnership Program (HOME) is the largest federal block grant to create affordable housing. The HOME program provides annual grants to states and eligible cities and urban counties (all termed participating jurisdictions). Participating jurisdictions may use their grant funds to undertake the following: acquire property, construct new housing for rent or ownership, rehabilitate rental or owner-occupied units, provide home purchase or rehabilitation financing assistance, and assist low-income renters through tenant-based rental assistance or payment of security deposits. Participating jurisdictions are required to contribute or match 25 cents for each dollar of HOME funds spent on affordable housing. HOME fosters the growth and capacity of local nonprofits by requiring that each participating jurisdiction sets aside 15 percent of its allocation to fund housing that will be owned, developed or sponsored by entities designated as community housing development organizations (CHDOs). HUD directly distributes HOME funds to 594 state and local jurisdiction and four insular areas. States have funded state recipients, sub-recipients, CHDOs, for profit and other nonprofit program participants. Since the program's inception, communities have committed $8.8 billion of HOME funds to develop more than 600,000 units of affordable housing. HOME funds may be used for brownfield redevelopment projects after the site has been cleaned of contamination. Brownfields Federal Programs Guide 34 September 2004 ------- Office of Community Renewal (RC/EZ/EC). This office oversees the Renewal Community/Enterprise Zone/Enterprise Community (RC/EZ/EC) Initiatives, which take an innovative approach to revitalization. By offering tax incentives and flexible funding, these efforts bring communities together through a strategic planning process to attract the investment necessary for sustainable economic and sustainable community development. In 1994, HUD designated 65 cities as Enterprise Communities (ECs) and 6 cities as Empowerment Zones (EZs), followed by 15 Round II EZs in 1998. At the end of 2001, HUD designated an additional 12 rural and 28 urban RCs and eight new urban Empowerment Zones. The US Department of Agriculture designated 10 rural Empowerment Zones and 35 rural Enterprise Communities. EZ/ECs have had access to over $5 billion in tax incentives. These tax incentives include wage tax credits for employers, tax relief for business equipment purchases, tax-exempt bond financing for business property, tax incentives for brownfield cleanup and redevelopment, Qualified Zone Academy Bonds and some capital gains exclusions. RCs are eligible for more than $5 billion in tax incentives. RCs qualify for many of the EZ/EC incentives and also are eligible for a special commercial revitalization deduction and zero percent capital gains rate on the sale or transfer of assets. Lead-Based Paint Hazard Control Grant Program. HUD's lead-based paint program was established to reduce young children's exposure to lead paint hazards in their homes. To accomplish this, HUD provides states and local governments with grants, ranging from $1 million to $2.5 million, to abate lead paint hazards in privately-owned, low-income owner owned, and rental housing. Eligible activities include inspections and risk assessments, and development of community awareness or education programs on lead hazards and their control. Since 1993, HUD has awarded nearly $700 million to more than 100 municipalities and states. BROWNFIELD PARTNERSHIP ROLE HUD's housing, economic, and community development programs can all work to support diverse aspects of brownfields redevelopment. In particular, the agency has committed to: linking tax incentives available through empowerment zones and enterprise communities to brownfield opportunities; working to enhance BEDI access by small cities by seeking legislation that would de-link BEDI from Section 108 and allow HUD to award BEDI funds as direct grants; and providing timely and useful information about successful brownfield redevelopment efforts through the development of new data systems that gather and disseminate such information, and through the inclusion of brownfields redevelopment information in the agency's communication and educational material and activities. Brownfields Federal Programs Guide 35 September 2004 ------- Contacts RC/EZ/EC Programs http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/index.cfm http://www.hud.gov/er Pamela Glekas Spring Director, Office of Community Renewal Community Planning and Development 451 7th Street SW, Room 7130 Washington, DC 20410 (800) 998-9999 - Community Connections Hotline (202) 708-6339 (phone) (202) 401-7615 (fax) Community Development Block Grant Program for States, Small Cities, and Insular Areas http://www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm Steve Johnson Director State and Small Cities Division State CDBG Program Office of Block Grant Assistance in Office of Community Planning and Development 451 7th Street SW Washington, DC 20410 (202) 708-1322 steveJohnson@HUD.gov Community Development Block Grant Entitlement Communities Program http://www.hud.gov/offices/cpd/communitydevelopment/programs/entitlement/index.cfm Sue Miller Director Entitlement Communities Division Office of Block Grant Assistance in Office of Community Planning and Development 451 7th Street, SW Washington, DC 20410 (202)708-1577 sue_miller@HUD. gov Brownfields Federal Programs Guide 36 September 2004 ------- Contacts (continued) HOME Investment Partnerships Program www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm Mary Kolesar Director Office of Affordable Housing Programs 451 7th Street, SW Washington, DC 20410 (202) 708-2684 mary_kolesar@hud.gov Section 108 Loan Guarantee Program & Economic Development Initiative http://www.hud.gov/progdesc/cdbg-108.cfm BAD LINK http://www.hud.gov/cpd/econdev/108/facts.html NO 108 INFO http://www.hud.gov/offices/cpd/communitydevelopment/programs/108/index.cfm http://www.hud.gov/offices/cpd/economicdevelopment/programs/edi/index.cfm Paul Webster Director Financial Management and Section 108 Division Office of Block Grant Assistance in HUD's Office of Community Planning and Development 451 7th Street SW, Room 7180 Washington, DC 20410 (202)708-1871 BEDI/EDI: Bill Seedyke (202) 708-3484 extension 4445 Brownfields Economic Development Initiative (BEDI) http://www.hud.gov/offices/cpd/economicdevelopment/programs/bedi/index.cfm HUD Brownfield Hotline 1-800-998-9999 Brownfields Federal Programs Guide 37 September 2004 ------- U.S. Department of the Interior National Park Service http://www.nps.gov Brownfield Links Q Provides technical assistance for planning, assessment, and conservation in urban areas - targeted to state and local governments and community-based organizations Q Assists in acquisition of surplus federal lands - targeted to state and local governments Q Offers technical assistance for community revitalization - targeted to Brownfield Showcase Communities THINK ABOUT...enhancing brownfield projects with parks and open space amenities Since its inception in 1916, the National Park Service (NPS) has provided planning and technical assistance for community-based conservation efforts. Besides preserving national parks, NPS cooperates with governmental and community-based organization partners to extend the benefits of natural and cultural resource conservation and outdoor recreation.. In July 1996, the Department of Interior, through its Rivers, Trails, and Conservation Assistance Program (Rivers & Trails), signed a memorandum of understanding with EPA to work cooperatively on initiatives promoting sustainable community-based environmental conservation and brownfield redevelopment. RESOURCES USEFUL TO BROWNFIELD EFFORTS Technical Assistance Through the Rivers & Trails Program. The Rivers & Trails Program supports state and local governments and community organizations in conservation efforts by providing river, trail, and greenway planning; resource assessment; and conservation workshops and consultations. Much of Rivers & Trails assistance is targeted to urban areas for projects that include or affect underutilized contaminated properties. As such, the program can complement brownfield redevelopment efforts. Four Rivers & Trails project areas to support conservation efforts (urban area projects, trails and greenway projects, rails-trails projects, and river projects) may be used concurrently with redevelopment efforts. An example of River & Trails involvement is its agreement with EPA to support the development of Groundworks USA, a network of locally-organized community corporations for the environment that provide cost-effective project development services to improve their community environment, economy and quality of life through local action focused on improving parks and open spaces and reclaiming derelict vacant lots and brownfields for community benefit, such as housing, business and greenspace. Technical Assistance Through the Federal Lands-to-Parks Program. Through the Federal Lands-to-Parks Program, the NPS helps states and local governments acquire, at no cost, surplus federal lands (including excess lands from decommissioned military bases). NPS identifies which lands have high natural, historic, or recreational values, and then assists communities gain title to the lands. Land or buildings obtained through this program must be open to the public and used exclusively for parks and recreational purposes. Brownfields Federal Programs Guide 38 September 2004 ------- BROWNFIELD PARTNERSHIP ROLE The Department of Interior (DOI), home to the NFS and other agencies, is supporting brownfields partnerships activities by various bureaus. As part of this effort, DOI commits to: Establishing a Brownfields Redevelopment Working Group among DOI bureaus and offices to improve internal Departmental coordination and to enhance the DOI's capacity to partner with EPA's Brownfields Program Continuing to support the Groundworks effort; and Exploring the possibility of assisting EPA with inventorying, characterizing, assessing, and planning related to brownfield sites, participating in performing targeted site assessments, and establishing a DOI brownfields web site. Contacts Sam Stokes, Chief National Park Service Rivers, Trails, and Conservation Assistance Program 1849 C Street, NW, Org. Code 2220 Washington, D.C. 20240 202-354-6933 sam_stokes@nps.gov http://www.nps.gov/rtca/ Wendy Ormont Federal Lands to Parks Program Leader National Park Service 1849 C Street, N.W. M.S. 2225 Washington, DC 20240 202-354-6915 Fax: 202-371-5197 Wendy_ormont@nps. gov http://www.nps.gov/ncrc/programs/flp/index.html Brownfields Federal Programs Guide 39 September 2004 ------- U.S. Department of the Interior Office of Surface Mining http://www.osmre.gov Brownfield Links Q Provides information on mine site issues and opportunities - targeted to local governments, states, tribes, quasi-public development organizations, non-profits, and other entities eligible to apply for EPA brownfield assessment and cleanup grants Q Offers grant writing training targeted to entities eligible to apply for grants to support brownfield redevelopment THINK AsouT,,,tapping OSM expertise when exploring reuse opportunities for old mining sites and related facilities...when preparing applications for EPA brownfield program assistance for newly eligible "mine scarred land" sites The Office of Surface Mining (OSM) is a small bureau with responsibility, in cooperation with the states and Indian tribes, for the protection of citizens and the environment during coal mining and reclamation. OSM also works to reclaim mines abandoned before 1977. OSM is organized around two principal requirements: regulating active coal mining, and reclaiming abandoned mines. Additionally, OSM operates programs to: eliminate the environmental and economic impacts of acid mine drainage from abandoned coal mines; encourage reforestation of reclaimed mine land; develop techniques that can ensure reclamation of prime farmland soils; and publicly recognize outstanding reclamation by communicating the experience to others. RESOURCES USEFUL TO BROWNFIELD EFFORTS OSM has provided training and support to OSM/VISTA volunteers and helped prepare grant applications for brownfields projects in coal impacted watersheds. The new federal Brownfields Revitalization Act recognizes mine-scarred lands as brownfields, further linking and strengthening the environmental management activities and goals of OSM, EPA, and other federal partners. BROWNFIELD PARTNERSHIP ROLE OSM is carrying out its brownfield role by working with EPA to address environmental concerns on abandoned minelands and within contaminated watersheds. The agency continues to work with OSM/VISTA Watershed Development Coordinators to provide direct training on brownfields in Coalfields grant writing and project development. Contact T. Allan Comp Watershed Assistance Team Office of Surface Mining Department of the Interior - Room 121 Washington, DC 20240 (202) 208-2836 Fax:(202)219-0239 tcomp@osmre.gov Brownfields Federal Programs Guide 40 September 2004 ------- U.S. Department of Justice Weed and Seed Program http ://www.usdoj .gov BROWNFIELD LINKS Q Brownfields Special Emphasis Initiative gives communities unsuccessful in seeking EPA funding a "second chance" to carry out initiatives aimed at site preparation and development, and community outreach and participation - targeted to Weed and Seed program grantees Q Advise and assist with the use of EPA brownfield funds to clean up meth labs targeted to all EPA grantees addressing meth labs Q Assists in crime prevention and improving the community climate through neighborhood restoration and crime prevention - targeted to local governments for community use THINK AsouT,,,plugging key community involvement, reuse planning, cleanup, and project development financing gaps when other funding sources fall through.^using community outreach services to address site and neighborhood safety issues that can stigmatize brownfield sites The U.S. Department of Justice (DOJ) does not have a specific brownfield reuse program, but it supports for initiatives that encourage redevelopment directly - through its Brownfield Special Emphasis Initiative - and indirectly, through the Weed and Seed program. In addition, DOJ's Environmental and Natural Resources Division (ENRD) supports brownfield activities in two ways. First, one of ENRD's primary responsibilities is to enforce federal civil and criminal environmental laws. Second, ENRD negotiates innovative settlement approaches that include the use of supplemental environmental projects, known as SEPs. Under a SEP agreement, violators can agree to perform projects of direct benefit to the are or community affected by their non-compliance; in a few instances, this has involved contributions to brownfield cleanup and redevelopment. RESOURCES USEFUL TO BROWNFIELD EFFORTS Community Capacity Development Office. In March 2004, DOJ launched the Community Capacity Development Office (CCDO) in its Office of Justice Programs to assist communities nationwide in preventing crime, increasing community safety, and revitalizing neighborhoods. The new office incorporated the Weed and Seed initiative, a community-driven strategic planning process that has had a positive impact on many communities, as federal and local law enforcement agencies join forces, share resources, set common goals, partner with community groups, and work together to address troubled areas in neighborhoods. Weed and Seed's law enforcement and community policing elements make up the "weed" portion, while the prevention, intervention, treatment, and neighborhood restoration elements comprise the "seeds." It is the program's seed portion that may indirectly affect redevelopment by promoting revitalization activities in distressed areas where brownfields are located. Communities already in the Weed and Seed program that are seeking continued funding are eligible for funding designated for brownfield activities. The 2004 CCDO Program Guide and Application Kit: Continuation Sites, explains the interrelationship between a community's Weed and Seed strategy and EPA's brownfields program. Weed and Seed is committed to helping communities revitalize brownfields and may provide funding through its Brownfields Special Emphasis Initiative. Once a Weed and Seed community has unsuccessfully sought funding from existing brownfield programs, such as those at U.S. EPA, it may apply to use up to $50,000 in Weed and Seed funds to Brownfields Federal Programs Guide 41 September 2004 ------- support brownfield initiative for a site in the designated Weed and Seed area. Examples of how this funding may be used include: education and outreach to inform and involve citizens and businesses; building partnerships and outreach among stakeholders; community involvement or environmental justice planning; reuse planning, assessment, and evaluation; renovating existing facilities; cleanup or other response activities associated with cleanup; fostering local job development and training initiatives; and assisting not-for-profit entities in economic development projects. Weed and Seed funding may not be used to acquire property or for construction that is not related to eligible cleanup activities. BROWNFIELDS PARTNERSHIP ROLE Weed and Seed has been incorporated into local brownfield programs with grants of up to $50,000 that offer flexible funding for use in brownfields activities at the discretion of sites. DOJ has also committed to using settlements and assets to assist with brownfields redevelopment, and exploring how it could assist with the use of brownfields funds to clean up methamphetamine labs, an activity made eligible for EPA funding under the 2002 Brownfields Revitalization Act. Contacts Karen Wardzinski U.S. Department of Justice P.O. Box 4390 Washington, DC 20044-4390 (202) 514-0474 Fax:(202)514-4231 karen.wardzinski@usdoj.gov Community Relations Service http://www.usdoj.gov/crs/index.html Sharee M. Freeman, Director Stephen Thorn, Deputy Director Director, Community Relations Service U.S. Department of Justice 600 E Street, NW, Suite 6000 Washington, D.C. 20530 Telephone: (202) 305-2935 Fax: (202) 305-3009 http ://www.ojp.usdoj .gov/ccdo/funding.htm Brownfields Federal Programs Guide 42 September 2004 ------- U.S. Department of Labor http://www.doleta.gov Brownfield Link Q Offers technical assistance linked to job training and workforce development in brownfield Showcase Communities - targeted to state and local governments THINK AsouT,,,using training and workforce development services as a cashflow offset incentive to companies locating at brownfield sites While the U.S. Department of Labor (DOL) does not have a brownfield initiative, its mission complements local redevelopment efforts, which require workers who are trained and skilled to handle environmental cleanup and sustainable redevelopment of brownfield properties. RESOURCES USEFUL TO BROWNFIELD EFFORTS Job Training and Technical Assistance. DOL will provide job training expertise and help coordinate Workforce Investment Act (WIA) programs in brownfield communities. Technical assistance available to brownfield Showcase Communities. State or local governments interested in this support should contact the department's Employment and Training Administration's (ETA) relevant regional administrator; contact information can be found at http://www.doleta/regions/regoffices. BROWNFIELD PARTNERSHIP ROLE DOL intends to support brownfield efforts through its existing mission to provide job training, job placement, and other workforce development services. To this end, the agency commits to encouraging state and local Workforce Investment Boards to consider using WIA training funds for local brownfields projects. In addition, ETA's Office of Apprenticeship, Employer and Labor Services is working to develop competency standards and skill set credential certifications that will ensure that training is institutionalized to meet industry specifications in the brownfields arena. In August, 2003, DOL issued a training and employment notice to all state workforce agencies and liaisons on potential collaboration with EPA on brownfield economic development. The notice focused on anticipated funding for brownfield assessment grantees and worker training grants, for which Workforce Investment Boards serving areas around brownfield sites were encouraged to apply. The notice emphasized that: "Through coordination with the local agency in charge of these brownfield sites. . . Local Workforce Investment Boards and One-Stop Career Centers can help to assure that local workers are qualified for these jobs when the project begins....Another benefit to this type of collaboration or partnership," the notice continues, "is that the Local Workforce Investment Board or One-Stop Career Center is involved with planning officials at the earliest stages of site planning. This will allow workforce professionals at the local level to be involved in the planning of job readiness needs for the next use of the site once it has been cleaned up. This will enhance their ability to provide needed services to the businesses, industries or agencies that will become the next tenants of these properties." Contact Maria K. Flynn 202/693-3700 flynn.maria@dol.gov Brownfields Federal Programs Guide 43 September 2004 ------- U.S. Department of Transportation Federal Transit Administration http://www.fta.dot.gov BROWNFIELD LINKS Q Provides grants for transit capital and maintenance projects - targeted to public transit agencies in urban and nonurban areas Q Offers discretionary capital grants for new fixed guideway transit lines, bus-related facilities, and new buses and rail vehicles - targeted to public transit agencies, primarily in larger metropolitan areas Q Funds transportation and land-use planning - targeted to metropolitan planning organizations, through the states Q Promotes delivery of safe and effective public and private transportation in non-urban areas - targeted to non-urban local governments, through the states THINK ABOUT...enhancing site marketability with transit access...planning for and cleaning up sites used for transportation purposes...identifying brownfield sites for stations, lots, and other transit purposes The Federal Transit Administration (FTA) provides financial and technical assistance to local public transit agencies. Since most brownfields are located in high-density, urbanized, and industrial areas where transit is usually a viable transportation option, FTA programs can play a role in local redevelopment efforts. Connecting the redevelopment site into the regional transit network can expand its potential uses and improve its marketability. The Department of Transportation's brownfield policy (April 1998) provides that "states, localities, and transit agencies are provided the flexibility to participate, where appropriate, in transportation projects that include the reuse of brownfield sites." The department also declared that transportation funds may be used to advance brownfield redevelopment activities, provided that the funded activity is directly related to a transportation project. While the policy does not target financing toward brownfields, funding for cleanup is available through the federal transit program, as long as the cleanup is a necessary part of a transit project. RESOURCES USEFUL TO BROWNFIELD EFFORTS Urbanized Area Formula Grants. These grants provide capital assistance to transit agencies in urban areas with populations of 50,000 people or more. The required matching ratio is 80 percent federal share and 20 percent local share. Congress appropriates roughly $3 billion annually for this program. Non-Urbanized Area Formula Grants. These grants provide capital and operating assistance through the states to transit operators in non-urban areas with populations of less than 50,000 people. Under this program, a state must use a percentage (5-15 percent) of the funds it receives for inter-city bus service unless the state can certify that its intercity bus needs have been met. Congress appropriates roughly $200 million annually for this program. Discretionary Capital Program. This program provides discretionary capital assistance for construction of new fixed guideway systems, extensions to fixed guideway systems, modernization of older fixed guideway systems, buses, and bus-related facilities. Congress appropriates roughly $2.5 Brownfields Federal Programs Guide 44 September 2004 ------- billion annually for this program of which approximately 40 percent goes to new fixed guideway projects, 40 percent to modernization of older fixed guideways, and 20 percent to buses and bus facilities. Metropolitan Planning Program (Section 5303). These funds are apportioned to each state on the basis of urban area population. The states pass the funds through to about 350 metropolitan planning organizations (MPOs) in urban areas with populations of over 50,000. The supported planning processes encompass studies of transportation needs and demands, land use, economic, employment and demographic trends, and the cost effectiveness of alternative services and facilities. These studies support the development of a long-range, multimodal transportation plan for the metropolitan region and a short range Transportation Improvement Program (TIP) for funding the projects of highest priority in the plan. To be eligible for FTA funding, a transportation project must be included in the metropolitan transportation plan and TIP. Congress appropriates about $50 million annually for metropolitan planning through the FTA program. The metropolitan planning function is also supported financially by the Federal Highway Administration. BROWNFIELD PARTNERSHIP ROLE FTA is considering ways to address brownfields within the context of its transportation mission. DOT has committed to encouraging communication and information exchange at the regional level among field staff. To this end, FTA will share best practices and offer technical assistance and training to MPOs, along with states and local governments. The agency will also expand existing guidance on state and local transportation agency and MPO consideration of brownfield redevelopment as part of transportation planning. Contacts Carol Braegelmann U.S. Department of Transportation Federal Transit Administration, TPE-30 400 7th Street, SW, Room 9413 Washington, DC 20590 (202)366-1701 Fax: (202) 493-2478 carol.braegelmann@fta.dot.gov Urbanized Area Formula Grants http://www.fta.dot.gov/library/legal/factsp 1 .htm Ken Johnson Office of Program Management (202) 366-1659 Non-Urbanized Area Formula Grants http://www.fta.dot.gov/library/legal/factsp3.htm Lorna Wilson Office of Program Management (202) 366-0893 Brownfields Federal Programs Guide 45 September 2004 ------- Contacts (continued) Discretionary Capital Program (Section 5309) http://www.fta.dot.gov/library/policy/circ9300/9300.html Joyce Larkins Office of Resource Management and State Programs (202) 366-1660 Metropolitan Planning Program (Section 5303) Charles Goodman Office of Planning and Environment (202) 366-1944 Brownfields Federal Programs Guide 46 September 2004 ------- U.S. Department of Transportation Federal Highway Administration http: //www.f hwa. dot. gov Brownfield Links Q Provides funds that can be used to support eligible roadway projects related to brownfield redevelopment - targeted to state and local governments and metropolitan planning organizations Q Highway funds can be used for transit projects that reduce congestion - targeted to state governments Q Transportation enhancement programs for various activities, ranging from bike ways to acquisition of scenic easements - targeted to state and local governments Q Funds transportation projects that reduce air emissions - targeted to state and local governments and metropolitan planning organizations THINK AsouT,,,using FHWA resources to cover some cleanup,planning and/or development costs, freeing up resources for other purposes...reconflguring or modernizing roads or other transportation infrastructure to make them more complementary to site reuse opportunities...or to provide transportation related access or amenities that enhance site value The Federal Highway Administration (FHWA) helps fund the construction of Interstate highways and other roads. Typical projects financed under the Federal-Aid Highway Program include, road widening and reconstruction; new construction of roads and transportation centers, intermodal facilities and recreational trails; access improvements; bridge replacement or rehabilitation; and bicycle/pedestrian facilities. DOT's brownfield policy (April 1998) provides that "states, localities, and transit agencies are provided the flexibility to participate where appropriate, in transportation projects that include the reuse of brownfield sites." The department also declared that transportation funds might be used to advance brownfield redevelopment activities, provided that the funded activity is directly related to a transportation project. While the new policy does not specifically target financing toward brownfields, funding for cleanups is available through FHWA programs, as long as the cleanup is a necessary part of an approved transportation project. RESOURCES USEFUL TO BROWNFIELD EFFORTS Transportation and Community and System Preservation Pilot Program (TCSP). Section 1221 of the Transportation Equity Act for the 21st Century (TEA-21) established the Transportation and Community and System Preservation Pilot Program (TCSP). TCSP provides funding that "can be used to examine transportation strategies that relate to brownfields redevelopment, such as planning access to redeveloped brownfield sites, upgrading existing urban transportation systems, and connecting local community members to new brownfield-related jobs." Recent projects include preparation of intermodal freight infrastructure to support brownfield redevelopment in northern New Jersey, and transportation and land use planning for the redevelopment of a former tooling and machining site in Dayton, Ohio. States, local governments, metropolitan planning organizations (MPOs), and tribal governments are eligible for TCSP grants. The program is authorized at $120 million annually, but in recent years, Congress has earmarked all funding to specific projects. TCSP funding supports projects that improve the efficiency of the transportation system; reduce environmental impacts of transportation; reduce the need for costly future public infrastructure investments; ensure efficient access to jobs, services and Brownfields Federal Programs Guide 47 September 2004 ------- centers of trade, and examine development patterns and identify strategies to encourage private sector development patterns which achieve these goals. Surface Transportation Program. FHWA funds may be used either for highway or transit at the discretion of state and local officials. Highway funds also may be used for transit projects that reduce congestion and improve air quality. FHWA allocates STP funds to states through a legislatively-determined formula. Transportation Planning. FHWA helps metropolitan planning organizations develop long-range transportation plans that consider changes in future population and traffic patterns, as well as predict the economic and infrastructure changes needed to support these changes. Transportation Enhancement Transportation enhancement efforts support facilities for pedestrians and bicycles, historic rehabilitation and preservation, landscaping, archeological planning and research, control and removal of outdoor advertising, acquisition of scenic easements and sites, and mitigation of water pollution from highway runoff. Congestion Mitigation and Air Quality Improvement Program (CMAQ). Through CMAQ, FHWA funds eligible transportation projects, giving preference to programs with documented emission reductions from a transportation control measure. BROWNFIELD PARTNERSHIP ROLE FHWA is exploring ways to address brownfields within the context of its highway transportation mission. DOT has committed to encouraging communication and information exchange at the regional level among field staff, and partnership links among transportation agencies and environmental, state, local, and private sector partners involved in brownfield redevelopment. Contacts Constance Hill U.S. Department of Transportation Federal Highway Administration Office of Natural Environment (HEPN) 400 7th Street, SW Washington, DC 20590 (804) 775-3378 Fax: (804) 775-3356 connie.hill@fhwa.dot.gov Fred Bank U.S. Department of Transportation Federal Highway Administration Office of Natural Environment (HEPN) 400 7th Street, SW Washington, DC 20590 (202) 366-5004 (202) 366-3409 Brownfields Federal Programs Guide 48 September 2004 ------- Program Contacts Federal Highway Administration Office of Planning (HEPP) 400 7th St SW Washington DC 20590 Phone: 202-366-0106 Congestion Mitigation and Air Quality Improvement Program (CMAQ) http ://www. fhwa. dot.gov/environment/cmaqpgs.htm Transportation and Community and System Preservation Pilot Program http://www.fhwa.dot.gov/tcsp/index.html Transportation Enhancements http://www.fhwa.dot.gov/environment/te/index.html Transportation Planning http ://www. fhwa. dot.gov/planning/index.htm Brownfields Federal Programs Guide 49 September 2004 ------- U.S. Department of Treasury Oversight of various tax incentives http://www.ustreas.gov BROWNFIELD LINKS Q Offers tax incentives to leverage private investment in brownfield cleanup and redevelopment - targeted to private sector entities Q Offers tax incentives to attract private investment in activities like building rehabilitation, that could play a key role in a brownfield strategy targeted to private sector entities Q Provides financing tools and incentives to stimulate private-sector investment in blighted communities - targeted to private sector entities Q Provides guidance and facilitates partnerships for community reinvestment - targeted to federally chartered commercial banks; bank examiners; and private sector entities THINK ABOUT...promoting the cashflow advantages of tax incentives...promoting the financial and public relations advantages of participating in brownfield redevelopment to lenders...tapping into programs to expand capital access for small businesses that could locate at a brownfield site The Department of the Treasury became more active on redevelopment issues with the 1997 passage of a brownfield tax incentive. It joined a number of incentives in place that can help stimulate investment by the private sector in communities with brownfields. Currently, several tax code-based incentives monitored and overseen by Treasury can have an important impact on brownfield cleanup and reuse efforts. These include: brownfields expensing tax incentive; rehabilitation tax credits; industrial development bonds; low-income housing tax credits; Community Development Financial Institution Fund (CDFI); and the New Markets Tax Credit program; In addition, the Office of the Comptroller of the Currency has established a Community Development Division, which advises the Comptroller on various community development activities that banks can participate in and influence. This Division can be a useful initial contact for parties interesting in exploring private brownfield financing strategies. RESOURCES USEFUL TO BROWNFIELD EFFORTS Brownfields Tax Incentive. Starting on January 1, 1998, taxpayers became able to fully deduct environmental cleanup costs in the year they incurred them, rather than having to capitalize them over time. The brownfield tax expensing incentive. This is the only federal financing tool directly and solely targeted to private owners of contaminated sites. Specifically, the authorizing statute provides that "a taxpayer may elect to treat any qualified environmental remediation expenditure which is paid or incurred by the taxpayer as an expense which is not chargeable to capital account. Any expenditure which is so treated shall be allowed as a deduction for the taxable year in which it is paid or incurred." In other words, taxpayers can deduct environmental cleanup costs Brownfields Federal Programs Guide 50 September 2004 ------- Site owners need to get sign-off from their state that they do in fact have a brownfield, but participation in the voluntary cleanup program is enough to satisfy that requirement, and there are other ways to satisfy it as well. Costs eligible for expensing include site assessment and cleanup costs, monitoring costs, operations and maintenance costs, and state program oversight fees. This incentive expired on December 31,2003. However, several legislative proposals have been advanced to both extend the provision, to at least the end of 2005, and broaden its applicability to any brownfield site - including petroleum contaminated properties. Rehabilitation Tax Credits. Rehabilitation tax credits were adopted by Congress to discourage the unnecessary demolition of sound older buildings and to slow the loss or relocation of businesses from older urban areas. Across the country, the credits have helped attract redevelopment capital into all types of projects in blighted and ignored areas not ordinarily considered for investment. This incentive offers to investors a credit against their total income, which is taken for the year in which the renovated building is put into service. Rehabilitation of income producing certified historic structures qualifies for a credit equal to 20 percent of the costs of the work; rehabilitation work on non-historic structures built before 1936 qualifies for 10 percent. Most reconstruction work is eligible for the credit. The rehabilitation tax credit is well-suited for packaging with other economic development grant and loan programs; it can be an ideal complement to a brownfield redevelopment initiative in an older industrial area. According to data compiled by the National Park Service, about half of all projects claiming rehabilitation incentives also tied other public-development programs into their financing packages. Property tax abatements and low-interest loans are the most commonly used companion incentives Industrial Development Bonds. Tax-exempt, private activity industrial development bonds (IDBs) are issued by a range of cities, public agencies, development authorities, and similar entities in virtually every state. The Treasury Department defines a state-wide volume cap on bond issuances each year the greater of $50 per capita or $200 million. Companies and local jurisdictions favor IDBs as a source of financing since the interest they bear is not taxable, which reduces the yield that investors demand, which lowers a project's cost of capital. They are commonly used as part of an area-wide revitalization strategy. Since IDBs are targeted to manufacturing projects, they can play an important part in certain types of site reuse projects or a business retention strategy aimed at existing industrial areas. The issuing authority process allows jurisdictions to channel more affordable investment capital, if they so choose, to certain locations and for specific types of projects. IDE proceeds help private companies acquire buildings, equipment, and other components needed for an industrial project, and they have been used to help pay for cleanup as part of site development in a few cases this is really an emerging use. In legal parlance, they are "revenue bonds." In other words, the company is responsible for repaying the debt. These bonds are payable from and secured by the revenues of the projects they finance; if the company defaults, the bondholders, and not the local taxpayers, absorb the loss. The popularity of IDBs stems from their versatility as a development finance tool. Issuing agencies or authorities have numerous options for structuring an IDE; they can be issued for long or short terms, and can carry a fixed interest rate or a floating one typically one quarter to one third less than Brownfields Federal Programs Guide 51 September 2004 ------- the prime borrowing rate. From a local development perspective, IDBs have the advantage of giving small and inexperienced business borrowers access to securities markets. Low-income housing tax credits. Low-income housing tax credits (LIHTCs), created in 1986, may be used as part of a project financing package if affordable rental housing is included as part of a community's revitalization strategy. These credits are intended to ensure an attractive minimum rate of return on this type of housing investment. LIHTC authority is given to each state on a per capita formula, and the state can issues LIHTC tax-exempt bonds up that level to attract investment capital into this type of housing. They have been successfully used in many states as part of mixed-income housing developments, sometimes as infill projects. Community Development Financial Institution Fund (CDFI). The Treasury's CDFI Fund can enhance brownfield redevelopment activities. Intended to "promote economic revitalization and development in distressed urban and rural communities throughout the United States," the fund increases accessibility to investment capital by providing the private sector with leverage capability and strategic investments. CDFI is designed to stimulate private-sector investment in the nation's blighted communities, many of which include brownfield properties. The CDFI mission is carried out through three programs: The CDFI basic program promotes economic and community revitalization by providing an array of innovative financing tools to private-sector financial institutions that will help strengthen lending capabilities. Since 1996, the CDFI Fund has made more than $200 million available to institutions; The Band Enterprise Award program provides financial incentives to traditional financial institutions, such as regulated banks and thrifts. These incentives are intended to encourage investment in and lending to community redevelopment projects in blighted communities. The BEA Program has awarded $30 million to these institutions; and The Presidential Awards for Excellence in Microenterprise Development encourages innovative advancements in microenterprise development in depressed communities by presenting non-monetary awards in recognition of the best practices in the field. New Markets Tax Credit Program. The goal of the New Markets Tax Credit (NMTC) program is to stimulate $15 billion worth of private equity investment in distressed areas, to bring new jobs, physical revitalization, and ownership opportunities to low-income communities. The NMTC program permits taxpayers to receive a credit against federal income taxes for making qualified investments in designated "Community Development Entities" (or CDEs), which in turn must make investments in businesses in low income communities. The credit to investors totals 39 percent of the cost of the investment and is claimed over a seven-year period. The NMTC effort has gotten off to a slow start. To date, more than 1000 organizations have received CDE status, but less than 100 have received tax credit allocations. Most of these plan to focus on real estate development and financial counseling; several cited meeting brownfield needs in their applications. Office of the Comptroller of the Currency Community Development Division. The Office of the Comptroller of the Currency (OCC) supervises nearly 3,600 federally-chartered commercial banks, which account for approximately 60 percent of the assets of the commercial banking system. Brownfields Federal Programs Guide 52 September 2004 ------- OCC has been proactive in providing guidance to these lending institutions on involvement with brownfields, for example through publications such as its Commercial Real Estate and Construction Lending Handbook. The Community Development Division advises the Comptroller on policy matters involving community development activities of national banks, including welfare investment requests, and it provides bankers with education and guidance on community economic development issues permissible under the National Bank Act. OCC also has a community reinvestment and development specialist program that facilitates partnerships; provides technical assistance for banks and their community partners; and encourages investment, lending, and services to low- and moderate-income individuals and small businesses. Two specialists are in each of the OCC's six geographic districts who have experience in affordable housing, advocacy, community and economic development, small business lending, and bank examination. They provide training and advice to national banks, communities, and bank examiners regarding best practices, options for satisfying CRA responsibilities, and expanding access to credit and capital. The Community Development Division's web site is http://www.occ.treas.gov/cdd/contacts.htm. BROWNFIELD PARTNERSHIP ROLE Tax incentives are playing a key role in attracting flexible investment capital to meet the varied needs of brownfield sites. Many of these incentives are well suited for packaging with state and local tax incentives, as well as grant and loan programs. Contacts U.S. Department of Treasury Office of the Comptroller of the Currency Community Development Division 250 E Street, SW Washington, DC 20219 (202) 874-4940 Fax: (202) 874-5566 Community Development Financial Institutions Fund/New Markets Tax Credits 60113th Street NW, Suite 200 South Washington, DC 20005 Tel: (202) 622-8662 Fax: (202) 622-7754 CDFI http://www.occ.treas.gov/cdd/cdresourcedir.htm For information and technical assistance on community development lending and investments, including the special investment authority provided under "part 24", contact: Barry Wides, Director, Community Development Karen Bellesi, Manager, Community Development Investments William Reeves, Manager, Community Development Lending Telephone: (202) 874-4930 Fax: (202) 874-5566 Brownfields Federal Programs Guide 53 September 2004 ------- Contacts (continued) Office of the Comptroller of the Currency Community Development Division http://www.occ.treas.gov/cdd/contacts.htm http://www.occ.treas.gov/cdd/commfoc.htm For information on historic rehabilitation tax credits, contact the State Historic Preservation Office (SHPO) in the state where the project is being undertaken, or the National Park Service at: http://www2.cr.nps.gov/tps/tax/incentives/index.htm For information on industrial development bond allocations, contact the state financial officer or state treasurer's office in the state where the project is being undertaken. For information on low income housing tax credit allocations, contact the state housing finance agency or state treasurer's office in the state where the project is being undertaken Brownfields Federal Programs Guide 54 September 2004 ------- Federal Deposit Insurance Corporation http ://www.fdic.gov BROWNFIELD LINKS Q Ensures equal access to credit - targeted to all brownfield community stakeholders Q Promotes public-private partnerships and identifies local credit needs - targeted to local governments; bankers; community-based organizations; and businesses Q Sponsors seminars on community reinvestment and fair lending laws - targeted to bankers and consumers Q Provides a web site on FDIC-owned, potentially contaminated properties - targeted to all brownfield community stakeholders THINK AsouT,,,using FDIC to provide brownfield credibility to prospective lenders,,,linking prospective developers with potential sites..providing lenders with technical assistance and information on brownfield financing The Federal Deposit Insurance Corporation (FDIC) tries to maintain stability within the nation's insured depository banking and savings associations. It works with other federal and state regulatory agencies to identify potential threats to the deposit insurance funds, and it makes information and analysis available to promote sound financial and economic decision making. Several FDIC initiatives impact financing for brownfield redevelopment efforts. RESOURCES USEFUL TO BROWNFIELD EFFORTS Community Affairs Program. This initiative, created in 1990 to comply with the Community Reinvestment Act and the fair lending laws by FDIC-supervised institutions, helps to ensure equal access to credit, works with lenders and the public to revitalize communities, and serves as an intermediary to further fair lending objectives. Partnership Promotion and Support Services. The FDIC meets regularly with bankers, community organizations, small businesses, and local government leaders to promote partnerships among public and private organizations, to identify local credit needs, and to develop strategies to meet those needs. In addition, the FDIC sponsors and conducts conferences and seminars to help educate bankers and consumers about the Community Reinvestment Act and other fair lending laws and regulations. BROWNFIELD PARTNERSHIP ROLE FDIC has taken an educational role in its brownfield related efforts, sharing information about EPA brownfield programs with financial institutions. In particular, those lenders that make loans to borrowers to finance environmental cleanups or redevelopment on properties located in low- or moderate-income communities receive positive consideration for those loans in their Community Reinvestment Act performance evaluations - a little recognized aspect of federal banking regulations. Brownfields Federal Programs Guide 55 September 2004 ------- Contacts Consumer Affairs Program http://www.fdic.gov/consumers/consumer/affairs/index.html (800) 934-3342, (202) 942-3100 Community Affairs Program http://www.fdic.gov/consumers/community/program.html Brownfields Federal Programs Guide 56 September 2004 ------- Federal Housing Finance Board http://www.fhfb.gov BROWNFIELD LINKS Q Funds community-oriented mortgage lending for targeted economic development - targeted to banks, for a variety of site users Q Encourages banks to engage in new types of lending to meet housing and economic development needs - targeted to banks Q Subsidizes interest rates and loans to increase the supply of affordable housing - targeted to banks Q Funds the purchase of taxable and tax-exempt bonds to support redevelopment - targeted to banks THINK AsouT,,,using FHFB to attract more lenders to specific brownfieldprojects The Federal Housing Finance Board (FHFB), founded as an independent agency in 1989, ensures the integrity of the Federal Home Loan Bank System and ensures that resources are available for home financing and commercial and economic development activities. The system is divided into 12 district banks, which are government-chartered, member-owned corporations. These district banks provide long-term loans to its member financial institutions, which then advance these loans to individuals or entities in the community for residential mortgages and economic development activities, including brownfield redevelopment projects. The district banks provide their members with a variety of loan programs that address housing and development needs. RESOURCES USEFUL TO BROWNFIELD EFFORTS Community Investment Program. This loan program provides funding for housing and economic development activities in distressed neighborhoods. It has been used by member institutions to finance brownfield redevelopment projects. The program supports community-oriented mortgage lending that can be used to target commercial and economic development projects in economically-disadvantaged neighborhoods that include brownfield sites. Individual Home Loan Banks provide program funds to member institutions and set loan interest rates. Since 1990, the Federal Home Loan Banks have advanced more than $1.4 billion for such commercial and economic development projects. Many recipients use these monies in conjunction with additional funding provided through other federal agencies, such as the Small Business Administration. Housing Credit and Economic Development Regulations. The Community Investment Cash Advance Programs (CICA) and the Federal Home Loan Bank Standby Letters of Credit (LOG) are regulations intended to address unmet housing credit and economic development needs. Both encourage banks to engage in new types of lending, including activities that otherwise are available for consideration under the Brownfields Tax Credit Program. The Federal Housing Finance Board anticipates the regulations will reduce costs associated with contaminated properties and aid in their resale. Cash Investment Advance Programs (CICA). The CICA regulation seeks to attract long-term financing for economic development in urban and rural areas not presently being addressed. The rule specifically provides that economic development projects include property eligible for a federal brownfield tax incentive. Brownfields Federal Programs Guide 57 September 2004 ------- Federal Home Loan Bank Standby Letters of Credit (LOC). The LOG regulation provides the Federal Home Loan Banks with additional flexibility to use letters of credit for economic development projects that include brownfield redevelopment. Affordable Housing Program (AHP). The AHP subsidizes the interest rates for advances (loans) and provides direct subsidies to member institutions of the Federal Home Loan Bank System engaged in lending for long-term, very-low, low, and moderate-income, owner-occupied, and affordable rental housing. The program encourages member institutions to undertake creative efforts that increase the supply of affordable housing. Support for Local Financing. The Federal Home Loan Banks purchase qualified taxable bonds, the proceeds of which can be used for brownfield development in selected communities. The banks can offer advances to member institutions to buy tax-exempt bonds to fund eligible costs involved in brownfield reuse projects. BROWNFIELD PARTNERSHIP ROLE Federal Home Loan banks provide financing at favorable terms to their financial institution members for use in housing and community development projects, including those on brownfields. Contact Charles McLean Office of Communications Federal Housing Finance Board 1777 F Street, NW Washington, DC 20006 (202) 408-2537 Fax:(202)408-2915 mcleanc@fhfb.gov CICA Programs for affordable housing: http://www.fhfb.gov/FHLB/FHLBP_housing.htm CICA Programs for economic development: http://www.fhfb.gov/FHLB/FHLBP_economic_intro .htm Federal Home Loan Bank Programs, letters of credit: http://www.fhfb.gov/fhlb/fhlbp_loc_targeted.htm Brownfields Federal Programs Guide 58 September 2004 ------- General Services Administration http://www.bri.gsa.gov/brownfields Environmental Programs Overview: http://www.gsa.gov/Portal/gsa/ep/contentView.do?content!d=12789&contentType= GSA OVERVIEW BROWNFIELD LINK Q Works with local communities to determine how underused or surplus federal properties can support revitalization - targeted to all brownfield community stakeholders THINK ABOUT,,, incorporating former federal facilities into larger projects, to take advantage of site assessment resources As landlord and real estate agent for the federal government, the General Services Administration (GSA) understands that property plays an important role in creating livable communities. Federal property can serve as a catalyst for urban revitalization when reused by localities to provide jobs, contribute to the local tax base, or preserve greenspace. With thousands of federal properties located throughout the country, GSA is partnering with communities to carry out a Brownfield Redevelopment Initiative, which targets underused federal properties that can be redeveloped to maximize local revitalization opportunities. In addition, GSA works to expedite federal property reuse, using tools such as early transfer authority, fixed price cleanups, and land use controls. RESOURCES USEFUL TO BROWNFIELD EFFORTS Community Involvement. Within each of its brownfields project locations, GSA works with state and local planners, economic development officials, and community groups to effectively match underused federal property holdings with local revitalization objectives. Through an exchange of information, communities become aware of the location of federal land holdings within their localities and have a better understanding of the process involved in acquiring underutilized federal property. In turn, GSA, guided by local objectives, is able to focus and prioritize the disposal of underutilized real property. In 1997, GSA launched the Brownfields Redevelopment Initiative to identify and redeploy underutilized federal properties. Partnering. In order to support the revitalization activities of communities, GSA has formed a National Brownfields Team comprised of key individuals from its regional Property Disposal offices. With local experience and insight, regional staff have a thorough working knowledge of the underused federal land holdings in each locality. GSA's regional representatives also understand issues that impact communities such as economic development, housing, and transportation. In addition, GSA's National Brownfields Team coordinates with state and federal representatives to ensure that the identification of underutilized federal properties incorporates the latest state and federal revitalization initiatives. GSA integrates this information using a geographic information system (GIS) that allows GSA to consider diverse community revitalization issues, helping to focus its identification and analysis of underutilized property holdings. BROWNFIELDS PARTNERSHIP ROLE GSA reviews and identifies underused federal properties that are potentially available for brownfields redevelopment. Brownfields transactions are primarily real estate deals - and in the case of Brownfields Federal Programs Guide 59 September 2004 ------- available federal properties, GSA can serve as the "honest broker" in these transactions, bringing the right resources and people to the table to get the deal done. To carry out this role, GSA will: Develop a tool kit to help foster the partnerships necessary to successfully "seal the deal" in a brownfields transaction; Educate potential federal property developers on the federal real property disposal process and to assist in their efforts to reuse federal brownfields; and Coordinate a campaign to educate states and communities engaged in brownfields revitalization about innovative disposal methods, such as Early Transfer Authority (ETA) and the privatization of remediation. Contact John Q. Martin General Services Administration Office of Property Disposal GSA Building 18th and F Streets NW, Room 4340 Washington, DC 20405 (202) 501-4671 Fax: (202)501-2520 johnq.martin@gsa.gov Brownfields Federal Programs Guide 60 September 2004 ------- Small Business Administration http://www.sba.gov BROWNFIELD LINKS Q Provides information and other nonfinancial technical assistance for redevelopment efforts - targeted to small businesses served via many SBA programs Q Offers loan guarantees to support small businesses - targeted to small businesses through lending institutions and certified development corporations Q Assists in developing management and marketing skills - targeted to small businesses THINK ABOUT...using loan guarantees to attract capital to small businesses once sites are clean...using CDCs to help underwrite and finance building expansions or renovations...using informational resources available to help with loan documentation and packaging. The U.S. Small Business Administration (SBA) has offices in every state that provide financing, training, and counseling for small businesses. To be eligible for assistance, the SBA requires that a small business be independently owned and operated, not dominant within its field, and meet certain size standards and other eligibility requirements. SBA programs do not specifically target brownfields - and in fact SBA policy states that the agency is not to participate in a project until cleanup and liability relief have been achieved. SBA is very sensitive about appearing to encourage what might be viewed as less-than-sound banking practices. However, the agency has stated that its programs may be used by small businesses for projects that affect redevelopment initiatives, provided that the small business meet SBA criteria for the particular loan program being pursued and obtain satisfactory protection from environmental risk through indemnification agreements or other measures. RESOURCES USEFUL TO BROWNFIELD EFFORTS Section 7(a) Loan Guarantee Program. This program aims to increase the amount of capital available to small businesses that would not otherwise be able to obtain financing through the commercial banking community and non-bank lending institutions. In fiscal 2004, $11 billion in guaranteed authority was available for general business guarantees through the Section 7(a) program. In addition, SBA has adopted a "Low Doc" (low documentation) approach to Section 7(a) loan guarantees to encourage more lenders to handle smaller SBA-backed loans of less than $150,000. The program features a 2-page application and a rapid response from SBA - often in just a few days. Section 504 Certified Development Company (CDC) Program. The Section 504 program helps small businesses finance acquisition of land, buildings, and machinery, as well as construction, renovation, and expansion of existing facilities. The program is operated through nearly 300 SBA-licensed CDCs nationwide, which perform credit analyses, recommend loan approvals, and close and service the loans they initiate. The CDCs sell debentures to support up to 40 percent of the project costs, as a type of second mortgage financing, while private lenders provide at least 50 percent (and take a first mortgage position). The remaining 10 percent comes either from the facility owners, or through public sector participation; many communities have used their HUD Community Development Block Grant funds for this purpose. The typical Section 504-supported loan is about $300,000. Brownfields Federal Programs Guide 61 September 2004 ------- BROWNFIELD PARTNERSHIP ROLE SBA programs are available and relevant to small businesses in brownfields communities, and making SBA's District Offices and other resource partners aware of this brownfields partnership is an important SBA role. To this end, SBA commits to disseminating brownfields related information to SBA's District Offices and to all SBA technical assistance providers, such as the Small Business Development Centers, Women's Business Centers, and SCORE, about: New Superfund liability exemptions, based on the new Small Business Liability Relief and Brownfields Revitalization Act (PL 107-118); and The benefits of brownfields reuse and EPA brownfields program grant availability. Contact Rachel Newman-Karton Small Business Administration 409 3rd Street, NW 8th Floor Washington, DC 20416 (202)619-1816 Fax: (202) 205-7727 Rachel.Newman-Karton@sba.gov Certified Development Company Program http://www.sba.gov/financing/sbaloan/cdc504.html 7(a) Program http://www.sba.gov/financing/sbaloan/7a.html Brownfields Federal Programs Guide 62 September 2004 ------- United States Office of Solid Waste EPA-560-F-04-251 Environmental Protection and Emergency Response September 2004 Agency www.epa.gov/brownfields/ ------- |