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U.S. Environmental Protection Agency
Office of Inspector General

At   a   Glance
       08-P-0265
September 16, 2008
                                                                Catalyst for Improving the Environment
Why We Did This Review

We sought to determine
whether the U.S.
Environmental Protection
Agency (EPA) has been using
funds in a timely manner for
brownfields pilot projects, and
whether funds were available
for deobligation.
Background
EPA implemented the
brownfields program in 1995
to empower States,
communities, and other
stakeholders to work together
in a timely manner to assess,
clean up, and reuse
brownfields.  A brownfield is
an abandoned property that
parties would like to redevelop
or reuse but the property might
be contaminated by hazardous
substances or pollutants. EPA
provides funds to local
governments for brownfield
pilot projects to assess
brownfields and to loan money
for brownfields clean-up.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.

To view the full report,
click on the following link:
www.epa.qov/oiq/reports/2008/
20080916-08-P-0265.pdf
            EPA Should Continue Efforts to Reduce
            Unliquidated Obligations in Brownfields Pilot Grants
             What We Found
            EPA is taking action to reduce unliquidated obligations under brownfields grants.
            EPA recently emphasized the need to close old grants. As a result, regions are
            deobligating funds on some grants. Unliquidated obligations decreased from
            about $29.8 million in November 2007 to about $20.9 million in March 2008,
            almost 30 percent.

            Nonetheless, 48 grants more than 5 years old were still open as of March 2008.
            Of the almost $11 million of unliquidated funds reviewed in Regions 2 and 4, the
            regions deobligated $1.3 million (almost 12 percent) during our audit. Up to an
            additional $6.8 million could be available for deobligation for the 21 grants that
            have ended or are scheduled to end by September 30, 2008. For grants awarded
            prior to October 1, 2002, EPA puts deobligated Superfund funds back into the
            national Superfund account. EPA can then use the funds for other projects.

            EPA had not consistently implemented a national policy or process that provides
            reasonable assurance that brownfields grant funds will be spent in a timely
            manner. EPA Headquarters has not provided specific guidelines on when grants
            should be terminated, nor has it defined inadequate progress for grant
            performance. Regions have generally allowed time  extensions when grantees
            requested them.

            Long periods between awarding and expending grant funds indicate that EPA is
            not maximizing its resources.  Rather than sitting idle, awarded funds could be
            put to better use by communities that are ready to proceed with assessment and
            clean-up activities.  Also, as awarded funds go unspent over time, the purchasing
            power of those dollars decreases.
                                What We Recommend
            We recommend that the Assistant Administrator for the Office of Solid Waste and
            Emergency Response establish a process for reviewing non-performing grants,
            and develop procedures for terminating and deobligating funds from those grants.
            We recommend that model terms and conditions for assessment grants define the
            term "insufficient progress." We also recommend that regions deobligate the
            remaining funds for 21 grants that are scheduled to end by September 30, 2008.
            EPA agreed with our recommendations and is in the process of establishing
            procedures that, when implemented, should adequately address the findings.

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