Brownfield Cleanup and Redevelopment Revolving Loan Fund Act

Summary: Brownfield Cleanup and Redevelopment Revolving Loan Fund Act - Directs the Administrator of the Environmental Protection Agency to establish a program to provide capitalization loans to States to establish or expand a State revolving loan fund for purposes of providing loans for voluntary environmental cleanups of eligible facilities. 
Defines "eligible facilities" as facilities or property that are determined by a State to have environmental contamination that:  (1) could prevent the timely use, development, or reuse of the facility or property; and (2) is limited in scope and can be comprehensively and readily evaluated. 
Sets forth loan application requirements, including:  (1) evidence that the State is carrying out a voluntary cleanup program for eligible facilities and will provide a matching share of at least 20 percent of the costs of such cleanup from either new or existing sources of State funding; (2) a description of the State's proposed revolving loan program and capability to manage the program; and (3) a statement that the State will begin repayment of the loan within five years (and evidence of the State's ability to repay) and that a loan from the revolving loan fund will not be used to pay for new construction, environmental fines or penalties, or for speculative assessments or rehabilitation at facilities with little or no potential for economic development. 
Directs the Administrator to determine the distribution of funds among the eligible States.  Limits the amount of a capitalization loan made by the Administrator under this Act to a State to 15 percent of the amount available each year to all the eligible States. 
Authorizes appropriations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Brownfield Cleanup and Redevelopment 
Revolving Loan Fund Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Contaminated and underused or abandoned industrial 
        sites in distressed communities are, economically, at a 
        competitive disadvantage relative to greenfield sites, as 
        capital for their cleanup and redevelopment may not be 
        available.
            (2) Contaminated and underused and abandoned industrial 
        properties located in distressed areas, owned by private, 
        public, or nonprofit entities, often with significant economic 
        development potential once cleaned up, are unable to secure 
        initial financing for site remediation.
            (3) Considerable public benefits can accrue from such sites 
        once cleaned up and brought back to productive reuse, 
        especially those devoted to industrial purposes that employ 
        enviornmentally sound practices.
            (4) Voluntary cleanup programs spur private sector cleanups 
        when the property value is sufficient and its location 
        favorable enough to make the additional costs of cleanup 
        economically feasible, but this approach does not resolve the 
        problems facing properties with little or no value, common 
        among sites located in economically distressed areas.
            (5) Because of their experience in administering targeted 
        loan assistance programs, States are in a good position to use 
        Federal funds to capitalize revolving loan funds to support 
        local cleanup and redevelopment projects.
    (b) Purpose.--The purpose of this Act is to revitalize distressed 
communities by providing loans for cleanup of certain industrial 
properties that have the potential to attract private investment, 
foster clean manufacturing, and create jobs for local residents.

SEC. 3. REVOLVING LOAN FUND FOR CLEANUPS UNDER STATE VOLUNTARY CLEANUP 
              PROGRAMS.

    (a) Establishment of Loan Program.--The Administrator of the 
Environmental Protection Agency (hereinafter in this Act referred to as 
the ``Administrator'') shall establish a program to provide a 
capitalization loan to any State that submits an application that is 
approved by the Administrator to establish or expand a State revolving 
loan fund for purposes of providing loans for voluntary environmental 
cleanups of eligible facilities.
    (b) Application for Loan.--An application for a capitalization loan 
under this section shall be in such form as the Administrator considers 
appropriate. At a minimum, the application shall include each of the 
following:
            (1) Evidence that the State is carrying out a voluntary 
        cleanup program for eligible facilities. The Administrator 
        shall insure that the State voluntary program provides, at a 
        minium, adequate opportunities for public participation, 
        sufficient technical assistance, and oversight to ensure that 
        cleanups comply with Federal and State laws, and certification 
        to the owner and prospective purchaser that the cleanup is 
        complete.
            (2) Evidence that the State will provide a matching share 
        of at least 20 percent of the costs of such cleanup from either 
        new or existing sources of State funding.
            (3) A description of the State's proposed revolving loan 
        program and of the State's capability to manage the program. 
        States may use interest income or loan repayments (in an amount 
        equal to not more than 10 percent of their revolving loan fund 
        amount) for program administrative purposes. At a minimum, the 
        State's revolving loan program shall--
                    (A) provide loans to both public and private 
                parties conducting voluntary cleanups under the State's 
                voluntary cleanup program who are unable to secure 
                loans from private lending institutions or other means 
                of financing;
                    (B) require that borrowers demonstrate credit 
                worthiness and the ability to carry out the cleanup; 
                and
                    (C) give priority to loans for the purpose of 
                cleaning up--
                            (i) facilities that are planned to be 
                        reused for industrial purposes that employ 
                        environmentally sound practices; and
                            (ii) facilities that will generate jobs for 
                        contractors whose principal place of business 
                        is the political subdivision in which the 
                        facility is located or for laborers who reside 
                        in such political subdivisions.
            (4) A statement that the State will begin repayment of the 
        loan within 5 years after receipt of the loan, and evidence of 
        the State's ability to repay the loan.
            (5) A statement that a loan from the revolving loan fund 
        will not be used to pay for any of the following:
                    (A) New construction.
                    (B) Environmental fines or penalties.
                    (C) Speculative assessments or speculative 
                rehabilitation at facilities with little or no 
                potential for economic development.
            (6) Such other elements as the Administrator considers 
        appropriate.
    (c) Amount of Loan.--The Administrator shall determine the 
distribution of funds among the eligible States. The amount of a 
capitalization loan made by the Administrator under this Act to a State 
may not exceed 15 percent of the amount available each year to all the 
eligible States.
    (d) Authorization.--There are authorized to be appropriated to the 
Administrator for purposes of making capitalization loans to States 
under this section the sum of $5,000,000 for fiscal year 1995 and 
$7,500,000 for each of the fiscal years 1996 and 1997.

SEC. 4. DEFINITIONS.

    For purposes of this Act the term ``eligible facility'' means a 
facility or property in a State that is determined by the State to have 
environmental contamination that--
            (1) could prevent the timely use, development, or reuse of 
        the facility or property; and
            (2) is limited in scope and can be comprehensively and 
        readily evaluated.
        Such term shall not include any of the following:
            (A) A facility that is eligible for abatement action under 
        section 106 of the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980.
            (B) A facility that, as of the date of the enactment of 
        this Act, is subject to Federal enforcement action under the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.).
            (C) A facility included, or proposed for inclusion, on the 
        National Priorities List or on the comprehensive environmental 
        response, compensation, and liability inventory system 
        (``CERCLIS'') that has been evaluated as high priority under 
        the hazard ranking system.
            (D) A facility required to have a permit under section 3005 
        of the Solid Waste Disposal Act that does not have a permit 
        under that section and does not qualify for authorization to 
        operate in interim status under subsection (e) of that section.
            (E) A land disposal unit with respect to which a closure 
        notification under subtitle C of the Solid Waste Disposal Act 
        (42 U.S.C. 6921 et seq.) is submitted and closure requirements 
        are specified in a closure plan or permit.
            (F) A facility subject to corrective action under section 
        3004(u) or 3008(h) of the Solid Waste Disposal Act (42 U.S.C. 
        5924(u) or 6928(h)) that is evaluated as high priority under 
        the Environmental Protection Agency's National Corrective 
        Action Priority System as set forth in regulations under 
        subtitle C of the Solid Waste Disposal Act.
            (G) A facility at which assistance for response activities 
        may be obtained pursuant to subtitle I of the Solid Waste 
        Disposal Act (42 U.S.C. 6991 et seq.) from the Leaking 
        Underground Storage Tank Trust Fund established under section 
        9508 of the Internal Revenue Code of 1986.
            (H) A facility owned or operated by a department, agency, 
        or instrumentality of the United States.