OAL PLANT
   ^COMMISSIONING

  FINANCING
  CLEANUP AND
  REDEVELOPMENT
   Understanding the
   anticipated costs for all
   phases of redevelopment
   is an important aspect of
   a community revitalization
   plan. Several financial
   mechanisms may be
   available to support
   different phases of the
   assessment,  cleanup and
   redevelopment process.

                    Many coal-fired power plants are expected
                    to close in the coming years. Coal plant
                    communities are faced with potentially  long-term
                    job and tax revenue loss, legacy environmental
                    contamination and the need  for new economic
                    opportunities.

                    EPA's Brownfields  Program empowers states, communities and other
                    stakeholders to work together to assess, safely clean up and sustainably
                    reuse brownfields.  The revitalization of brownfields properties, including
                    former power plants, can create benefits for communities.
                    Understanding the costs associated with the decommissioning,
                    remediation and redevelopment planning for a former power plant is
                    an important aspect of a community revitalization plan. Depending
                    on the community's vision for the property's end use, the costs of
                    decommissioning,  demolition, remediation and redevelopment can be
                    substantial. With well-estimated project costs, a project team and the
                    community can better identify the best potential funding sources for
                    meeting environmental cleanup challenges. In addition, a good sense
                    of potential project costs will inform decision-making at each phase of
                    the project. Although costs may appear to be prohibitive at first, several
                    financial mechanisms may be available to support different phases of
                    the assessment, cleanup and redevelopment process.
                    EPA prepared this  fact sheet to help communities that may be affected
                    by the closure of coal-fired power plants.  Fact sheets covering
                    stakeholder identification and facilitation and plant decommissioning,
                    as well as remediation and redevelopment, are also available.
                                             STAKEHOLDER INVOLVEMENT THROUGHOUT
                                               Decommissioning
Planning grants for
stakeholder teams.
Economic and
social analysis.
Tax increment funding.
Job training grants
for remediation.
Brownfields
Assessment grants.
Infrastructure grants.
Brownfields
Cleanup grants.
Underground Storage
Tank Cleanup funds.
                                                                   Redevelopment
                                                                            Job training grants
                                                                              for workers at
                                                                            redevelopment site.
                                                                            Energy efficiency and
                                                                           renewable energy grants.
r/EFft
United States
Environmental Protection
Agency
         Coal Plant Decommissioning
Financing Cleanup and Redevelopment

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                                 Financing Redevelopment Projects
                                 During the planning phase, project owners and stakeholders estimate
                                 project costs to determine funding needs for the project. Different
                                 funding mechanisms may be needed for planning, decommissioning and
                                 demolition, remediation, site construction, and operations during reuse.
                                 The reuse plan, developed early in the planning process, should include
                                 cost estimates for each phase of a project. Once cost estimates are
                                 available, the plan should incorporate potential funding sources
                                 and alternatives.
                                 Decommissioning, remediation and redevelopment can be costly
                                 given the size, age and type of operations conducted at each plant.
                                 The table below shows major cost items and significant tasks that are
                                 likely to be encountered during the phases of redevelopment of a
                                 coal-fired power plant.
       Decommissioning
• Closure planning, including
  safety engineering survey
  and asset inventory; legal
  notices
• Equipment shutdown,
  cleaning and removal or
  sale
• Electrical switchyard and
  plant power reconfiguration
• Security enhancements
  (fences, gates, lighting)
• Removal of surplus coal,  oil
  and process chemicals
         Remediation
• Environmental assessment
• Removal of hazardous
  chemicals and wastes
• Permit applications and
  closures, remedial plan
  development and regulatory
  review
• Public outreach and public
  involvement
• Closure and cleanup of waste
  management units (ash pits or
  ponds)
    Redevelopment
Demolition or renovation of
existing structures
Infrastructure improvements
or alterations
Architectural planning
Construction of new
buildings and spaces
                                 For some redevelopment activities, financial support may be available as
                                 grants, loans and tax incentives. Support also may be available through
                                 other innovative funding mechanisms. Site owners should determine
                                 what incentives and options are available.  Under limited circumstances,
                                 EPA brownfields assessment grants may be available for state, municipal
                                 and tribal organizations if these organizations have access to abandoned
                                 power plants. EPA brownfields cleanup grants are not available to
                                 owners of closed power plants if the owner is a private party or if the
                                 owner is determined to be the party responsible for any contamination
                                 at the property. In most cases, and particularly in cases where
                                 decommissioned power plants (or waste management units located
                                 at these plants) are permitted  under the Resource Conservation and
                                 Recovery Act, the private party owner is responsible for implementing
                                 and paying for corrective actions to address environmental contamination
                                 and taking actions to close or  decommission all operating units at
                                 the plant.
                                                              Coal Plant Decommissioning
                                                    Financing Cleanup and Redevelopment

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                       2015
            Brownfields
         Federal Programs
The 2015 Brownfields Federal
Programs Guide provides a
comprehensive review of funding
and technical assistance programs
offered by federal agencies that
support brownfields redevelopment.
Potential Federal Funding Sources
The 2015 Brownfields Federal Programs Guide provides a
comprehensive review of funding and technical assistance programs
offered by federal agencies that support brownfields redevelopment.
Some of these programs may be applicable to the redevelopment of
coal-fired power plants. Here is a summary of a few of the most widely
applicable programs.
EPA Brownfields Program Grants- EPA's Brownfields Program
provides direct funding and revolving loans for the assessment and
cleanup of brownfields on an annual competitive basis. Area-wide
planning grants are available to communities to research, plan and
develop implementation strategies for an area affected by one or more
brownfields. Environmental job training grants and technical assistance
are also available through the Brownfields Program. EPA brownfields
grants have eligibility limitations that may restrict their applicability to
privately owned power plants. In addition, brownfields cleanup grants
and loans from Brownfields Revolving Loan Fund grants have cost-share
requirements. For example, Revolving Loan Fund grant recipients must
provide  a 20 percent match of the total funds awarded.
U.S. Department of Housing and Urban Development (HUD)
Programs- State and local governments can use HDD's Community
Development Block Grant and Section 108 Loan  Guarantee to fund
brownfields redevelopment. Redevelopment projects generally must use
at least 70 percent of the funding to benefit low- and moderate-income
individuals, which may restrict some commercial reuse.
U.S. Department of Commerce, Economic Development
Administration (EDA) - EDA's  role is to foster job creation, attract
private investment and support  long-term job development in
economically distressed areas of the country. Grants are available
to support the implementation of economic development strategies
that advance new ideas and creative approaches. EDA grants for
redeveloping power plants require a 100 percent match of the total funds
at the time of application. EDA planning grant funds also require a 100
percent  match. However, in both cases, communities that meet EDA's
"distressed" parameters may qualify for a lesser match amount.
U.S. Department of Agriculture (USDA)- USDA seeks to improve
the quality of life in rural America. Grants and technical support are
available under several programs for a wide range of rural development
purposes.  Eligibility requirements vary by program, but generally grants
are available for communities with populations less than 25,000. The
U.S.  Forest Service provides technical assistance and grants to states
to foster urban reforestation and other projects that will help "green"
brownfields. The agency also offers funding sources for energy efficiency
and renewable energy projects  in rural areas.
                                                               Coal Plant Decommissioning
                                                     Financing Cleanup and Redevelopment

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                                 U.S. Department of the Interior, National Park Service (NPS) - The
                                 Federal Historic Preservation Tax Incentives program encourages private
                                 sector investment in the rehabilitation and reuse of historic buildings.
                                 Buildings and rehabilitation must meet historic eligibility criteria, which
                                 may limit some redevelopment options. The unique architecture in some
                                 electric generation buildings at coal-fired power plants has been the
                                 basis for securing these tax credits.
                                 Internal Revenue Service (IRS) - The IRS' New Markets Tax Credit
                                 provides federal tax credits to attract investment in businesses or
                                 economic development projects in low-income communities. Projects
                                 could include the redevelopment and reuse of coal-fired plants.
Massachusetts Creates Plant
Revitalization Task Force
Recognizing the need to
address community concerns
about several planned
coal plant closures, the
Massachusetts legislature
launched the Plant Revitalization
Task Force in 2012. The
group developed a plan for
redeveloping the Salem Harbor
Power Station, as well as a plan
for decommissioning other coal-
fired power plants that faced
imminent closure throughout
the Commonwealth. The state
provided $100,000  for each of
three reuse studies. The final
report on the Salem Harbor
Power Station site is available at
http://www.salem.com/sites/
salemma/files/uploads/power
plant  study final.pdf
State and Local Incentives
Many federal funding programs are administered by states. Additional
funds and incentives may be available from state economic development,
housing, environmental and energy agencies. Regional development
agencies,  brownfield redevelopment authorities, land banks, and local
community planning groups are also common sources of funding,
especially during the initial planning stages. Some states have passed
special legislation to focus on the needs of communities facing economic
and environmental challenges from the closure of coal-fired power plants.
Municipal financing options will vary from state to state, but generally
include property or income tax incentives or state and local cost-sharing
mechanisms. Various combinations of public/private ownership also can
help finance the project, such as when municipal owners attract private
investors to redevelop a site.
Tax increment financing (TIF), which is authorized by states, can help
municipalities cover upfront cleanup and infrastructure costs. However,
TIFs have a wide range of eligibility requirements, some prohibiting
financing of assessment and cleanup costs.
Private Sources of Funding
Commercial and investment funding mechanisms are often used to
finance redevelopment projects. For example, to construct its new
headquarters, the Accident Fund Insurance Company of America
partnered with a local developer, the Christman Company, to redevelop
the Ottawa Street Power Station in Lansing, Michigan. Corporate
sponsorships, grants and contributions also funded the redevelopment
of industrial parcels into open space and museums, and for other public
use. Tapping into new opportunities available through social media,
some communities have used crowdfunding to raise funds for power
plant redevelopment projects.
Program-related investments (PRIs) may also fund the redevelopment
of power plants. PRIs are loans, loan guarantees or equity investments
made by a foundation to support charitable activities.  Educational and
research institutions may also contribute to redevelopment by conducting
initial feasibility analyses and reviewing remediation options.
                                                              Coal Plant Decommissioning
                                                    Financing Cleanup and Redevelopment

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                                  References and Links
                                  EPA's Brownfields Federal Programs Guide is available at
                                  http://www.epa.gov/brownfields/2015-brownfields-federal-prog rams-
                                  guide.
                                  The Council of Development Finance Agencies' online database
                                  of financing options is available at http://www.cdfa.net/cdfa/cdfaweb.
                                  nsf/ordsearch.html.
                                  The Environmental Grantmakers Association, a coalition of more
                                  than 225 foundations supporting environmental activities,  funds
                                  redevelopment projects. Find information at https://ega.org.
                                  The Funders' Network has a database of foundations that
                                  support various elements of smart growth. Find information at
                                  https://www.f undersnetwork.org.
EPA Publication #560-F-16-004
                                                               Coal Plant Decommissioning
                                                     Financing Cleanup and Redevelopment

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