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[Senate Report 114-276]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 518
114th Congress    }                                     {       Report
                                 SENATE
 2d Session       }                                     {      114-276

======================================================================

 
 BROWNFIELDS UTILIZATION, INVESTMENT, AND LOCAL DEVELOPMENT ACT OF 2015

                                _______
                                

                 June 14, 2016.--Ordered to be printed

                                _______
                                

    Mr. Inhofe, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1479]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works to which was 
referred the bill (S. 1479) to amend the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
to modify provisions relating to grants, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                   General Statements and Background

    The Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (CERCLA) (also known as the ``Superfund'' 
law) was enacted to provide broad Federal authority to respond 
to releases or threatened releases of hazardous substances that 
may endanger public health or the environment, including 
provisions to help clean up the nation's worst contaminated 
sites and require responsible parties to pay for the cleanups. 
Currently, more than 1,300 contaminated sites are on the U.S. 
Environmental Protection Agency's (EPA) Superfund program's 
National Priorities List. Brownfields are properties where the 
presence, or potential presence, of a hazardous substance 
complicates the expansion or redevelopment of the property. EPA 
estimates there are more than 450,000 brownfield sites across 
the country. Concern over CERCLA's strict joint and several 
liability provisions is one factor that inhibited cleanup at 
brownfield sites where the extent of contamination may have 
been unknown and where there was no viable party available to 
assess the site or pay for the cleanup. Many states and local 
governments operate voluntary programs to promote the cleanup 
and reuse of these properties. EPA administratively created its 
brownfields initiative in 1993. Congress began appropriating 
money specifically for the EPA brownfields grant program in 
fiscal year 1997. However, concerns remained about potential 
liability under CERCLA for brownfields cleanups.
    In 2001, the Senate passed S. 350 by a vote of 99-0 to 
amend CERCLA to establish the brownfields program, authorize up 
to $250 million in funding for grants, and provide relief from 
CERCLA liability for certain parties who meet specified 
conditions, such as contiguous property owners, prospective 
purchasers, and innocent landowners. S. 350 was incorporated 
into Title II of the ``Small Business Liability Relief and 
Brownfields Revitalization Act,'' which passed the House of 
Representatives by voice vote and the Senate by unanimous 
consent on December 20, 2001. President George W. Bush signed 
the bill into law (P.L. 107-118) on January 11, 2002.
    Section 104 of CERCLA was amended to authorize EPA to 
provide grants and technical assistance to State and local 
governmental entities, and other stakeholders to assess, safely 
clean up, and sustainably reuse brownfields. Cleaning up and 
reinvesting in these properties protects human health and the 
environment, reduces blight, increases local tax bases, 
facilitates job growth, and often utilizes existing 
infrastructure. Definitions for ``Brownfield site,'' ``Bona 
fide prospective purchaser'' and ``Eligible response site'' 
were also added to section 101 of CERCLA.
    S. 1479 would reauthorize the EPA brownfields program at 
current funding levels through fiscal year 2018. The BUILD Act 
would improve the existing grant process by increasing the 
dollar limit for cleanup grants, authorizing EPA to make multi-
purpose grants, expanding grant eligibility for certain 
publicly owned sites and non-profit organizations, authorizing 
grants for waterfront brownfields properties located adjacent 
to bodies of water or in floodplains and sites that can be used 
for clean energy development. The bill would also allow grant 
recipients to use a portion of grant funds for administrative 
costs, provide technical assistance grants to rural areas, 
small communities, and disadvantaged areas, and authorize up to 
$2 million per fiscal year in targeted funding grants to 
States.
    At a March 2, 3016, legislative hearing, the Committee 
heard testimony from a witness from the Northern West Virginia 
Brownfields Assistance Center in favor of S. 1479, including 
provisions that would increase the dollar amount for individual 
grants, create multi-purpose grants, and establish technical 
assistance grants for small communities and rural areas.

                       Purpose of the Legislation

    The bill authorizes the appropriation of $250 million 
annually through fiscal year 2018 for EPA to provide 
brownfields cleanup grants and programs, and would amend 
section 104(k) of CERCLA (42 U.S.C. 9604(k)) to improve the 
existing grant process by increasing the limit for cleanup 
grants, expanding grant eligibility, and prioritizing funding 
opportunities for certain brownfield sites, among other 
purposes.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 provides that the Act may be cited as the 
``Brownfields Utilization, Investment, and Local Development 
Act of 2015'' or the ``BUILD Act.''

Section 2. Expanded eligibility for nonprofit organizations

    Section 2 expands the eligibility for Brownfields grants 
for nonprofit organizations to include certain nonprofit 
organizations, limited liability corporations, limited 
partnerships, and community development entities.

Section 3. Multipurpose brownfield grants

    Section 3 authorizes EPA to make multi-purpose grants up to 
$950,000, which provide greater certainty for long-term project 
financing. Limits all grants under this section to 15 percent 
of appropriations.

Section 4. Treatment of certain publicly owned brownfield sites

    Section 4 allows government entities that acquired 
brownfields property prior to January 11, 2002, that do not 
qualify as a bona fide prospective purchaser under section 
101(40) of CERCLA, to be eligible to receive grants so long as 
the government entity did not cause or contribute to a release 
or threatened release of a hazardous substance at the property.

Section 5. Increased funding for remediation grants

    Section 5 increases funding limit for each site from the 
current $200,000 to $500,000 for each site. This section also 
authorizes the EPA to waive that limit, up to $650,000 for a 
site, based on the anticipated level of contamination, size, or 
ownership status of the site.

Section 6. Allowing administrative costs for grant recipients

    Section 6 allows eligible entities to use up to 8 percent 
of their brownfield grant funding for administrative costs.

Section 7. Small or disadvantaged community technical assistance

    Section 7 directs EPA to give priority in providing 
technical assistance grants of up to $7,500 to eligible 
entities in small communities, Indian tribes, rural areas, and 
disadvantaged areas. This section defines a ``disadvantaged 
area'' as an area with an annual median household income that 
is less than 80 percent of the State-wide annual median 
household income, as determined by the latest available 
decennial census. This section also defines a ``small 
community'' as a community with a population of not more than 
15,000 individuals, as determined by the latest available 
decennial census. This section limits all grants under this 
section to $600,000.

Section 8. Waterfront brownfield grants

    Section 8 directs EPA in providing brownfield grants to 
give consideration to waterfront brownfield sites located 
adjacent to bodies of water or federally designated 
floodplains.

Section 9. Clean energy brownfield grants

    Section 9 requires EPA to establish a program to provide 
grants of up to $500,000 to eligible entities to locate clean 
energy projects at brownfield sites.

Section 10. Targeted funding for States

    Section 10 authorizes EPA to use up to $2 million each 
fiscal year to provide targeted grants to States.

Section 11. Authorization of appropriations

    Section 11 authorizes appropriations of $250 million 
annually through fiscal year 2018.

                          Legislative History

    Senators Inhofe, Markey, Rounds, Boxer, Crapo, and Booker 
introduced S. 1479, the ``Brownfields Utilization, Investment, 
and Local Development Act of 2015'' or the ``BUILD Act,'' on 
June 2, 2015. The bill was read twice and referred to the 
Senate Committee on Environment and Public Works. The Committee 
met on May 18, 2016, and ordered S. 1479 favorably reported 
without amendment by voice vote.
    An almost identical bill, S. 491, was favorably reported 
with an amendment by the Committee by voice vote on April 3, 
2014, in the 113th Congress.

                                Hearings

    The Committee on Environment and Public Works held a 
hearing entitled, ``Economic Opportunities from Land Cleanup 
Programs and a Legislative Hearing on S. 1479, Brownfields 
Utilization, Investment, and Local Development Act of 2015, S. 
2446, Improving Coal Combustion Residuals Regulation Act of 
2016 and Discussion Draft of Good Samaritan Cleanup of Orphan 
Mines Act of 2016'' on March 2, 2016.

                            Roll Call Votes

    The Committee on Environment and Public Works met to 
consider S. 1479 on May 18, 2016. The bill was ordered 
favorably reported without amendment by voice vote. No roll 
call votes were taken.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee finds that S. 1479 
does not create any additional regulatory burdens, nor will it 
cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee notes that the Congressional 
Budget Office has found, ``S. 1479 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.''

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                                     June 13, 2016.
Hon. Jim Inhofe,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1479, the 
Brownfields Utilization, Investment, and Local Development Act 
of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

S. 1479--Brownfields Utilization, Investment, and Local Development Act 
        of 2015

    S. 1479 would authorize the appropriation of $250 million 
annually in 2017 and 2018 for the Environmental Protection 
Agency (EPA) to provide grants to clean up brownfields and 
support state brownfield programs. (Brownfields are properties 
where the presence, or potential presence, of a hazardous 
substance complicates the expansion or redevelopment of the 
property.) Assuming appropriation of the authorized amounts, 
CBO estimates that implementing S. 1479 would cost $500 million 
over the 2017-2021 period.
    Pay-as-you-go procedures do not apply to this legislation 
because enacting the bill would not affect direct spending or 
revenues. CBO estimates that enacting S. 1479 would not 
increase net direct spending or on-budget deficits in any of 
the four consecutive 10-year periods beginning in 2027.
    S. 1479 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1479 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2017     2018     2019     2020     2021   2017-2021
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Level.....................................      250      250        0        0        0       500
Estimated Outlays.......................................       13      212      230       37        8       500
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
1479 will be enacted near the end of fiscal year 2016, that the 
specified amounts will be appropriated in each year starting in 
2017, and that outlays will follow historical spending patterns 
for the brownfields program.
    S. 1479 would authorize the appropriation of $250 million 
annually over the 2017-2018 period to EPA for activities to 
restore brownfields. The authorization for this program expired 
in 2006, but it has continued to receive appropriations each 
year; $152 million was appropriated for the program in 2016.
    The bill would increase the limit for cleanup grants and 
expand eligibility for grants to certain publicly owned sites 
and nonprofit organizations. In addition, S. 1479 would allow 
grant recipients to use up to 8 percent of the grant to cover 
administrative costs.
    Pay-As-You-Go considerations: None.
    Increase in long-term deficit and direct spending: CBO 
estimates that enacting S. 1479 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: S. 1479 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would benefit state, local, and tribal 
governments by authorizing federal grants to support brownfield 
cleanup activities and programs. Any costs those governments 
might incur, including matching contributions, would result 
from participating in a voluntary federal program.
    Estimate prepared by: Federal costs: Jon Sperl; Impact on 
state, local, and tribal governments: Jon Sperl; Impact on the 
private sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

           *       *       *       *       *       *       *

 COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT 
OF 1980

           *       *       *       *       *       *       *

  Sec. 101. For purpose of this title--
          (1)* * *

           *       *       *       *       *       *       *

  Sec. 104. (a)(1) Whenever (A) any hazardous substance is 
released or there is a substantial threat of such a release 
into the environment, or (B) there is a release or substantial 
threat of release into the environment of any pollutant or 
contaminant which may present an imminent and substantial 
danger to the public health or welfare, the President is 
authorized to act, consistent with the national contingency 
plan, to remove or arrange for the removal of, and provide for 
remedial action relating to such hazardous substance, 
pollutant, or contaminant at any time (including its removal 
from any contaminated natural resource), or take any other 
response measure consistent with the national contingency plan 
which the President deems necessary to protect the public 
health or welfare or the environment. When the President 
determines that such action will be done properly and promptly 
by the owner or operator of the facility or vessel or by any 
other responsible party, the President may allow such person to 
carry out the action, conduct the remedial investigation, or 
conduct the feasibility study in accordance with section 122. 
No remedial investigation or feasibility study (RI/FS) shall be 
authorized except on a determination by the President that the 
party is qualified to conduct the RI/FS and only if the 
President contracts with or arranges for a qualified person to 
assist the President in overseeing and reviewing the conduct of 
such RI/FS and if the responsible party agrees to reimburse the 
Fund for any cost incurred by the President under, or in 
connection with, the oversight contract or arrangement. In no 
event shall a potentially responsible party be subject to a 
lesser standard of liability, receive preferential treatment, 
or in any other way, whether direct or indirect, benefit from 
any such arrangements as a response action contractor, or as a 
person hired or retained by such a response action contractor, 
with respect to the release or facility in question. The 
President shall give primary attention to those releases which 
the President deems may present a public health threat.
  (2)* * *

           *       *       *       *       *       *       *

  (k) Brownfields Revitalization Funding.--
          (1) Definition of eligible entity.--In this 
        subsection, the term ``eligible entity'' means--
                  (A) a general purpose unit of local 
                government;
                  (B) a land clearance authority or other 
                quasi-governmental entity that operates under 
                the supervision and control of or as an agent 
                of a general purpose unit of local government;
                  (C) a government entity created by a State 
                legislature;
                  (D) a regional council or group of general 
                purpose units of local government;
                  (E) a redevelopment agency that is chartered 
                or otherwise sanctioned by a State;
                  (F) a State;
                  (G) an Indian Tribe other than in Alaska; 
                [or]
                  (H) an Alaska Native Regional Corporation and 
                an Alaska Native Village Corporation as those 
                terms are defined in the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1601 and following) 
                and the Metlakatla Indian community[.] ;
                  (I) an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986 
                and exempt from taxation under section 501(a) 
                of that Code;
                  (J) a limited liability corporation in which 
                all managing members are organizations 
                described in subparagraph (I) or limited 
                liability corporations whose sole members are 
                organizations described in subparagraph (I);
                  (K) a limited partnership in which all 
                general partners are organizations described in 
                subparagraph (I) or limited liability 
                corporations whose sole members are 
                organizations described in subparagraph (I); or
                  (L) a qualified community development entity 
                (as defined in section 45D(c)(1) of the 
                Internal Revenue Code of 1986).
          (2) Brownfield site characterization and assessment 
        grant program.--
                  (A) Establishment of program.--The 
                Administrator shall establish a program to--
                          (i) provide grants to inventory, 
                        characterize, assess, and conduct 
                        planning related to brownfield sites 
                        under subparagraph (B); and
                          (ii) perform targeted site 
                        assessments at brownfield sites.
                  (B) Assistance for site characterization and 
                assessment.--
                          (i) In general.--On approval of an 
                        application made by an eligible entity, 
                        the Administrator may make a grant to 
                        the eligible entity to be used for 
                        programs to inventory, characterize, 
                        assess, and conduct planning related to 
                        one or more brownfield sites.
                          (ii) Site characterization and 
                        assessment.--A site characterization 
                        and assessment carried out with the use 
                        of a grant under clause (i) shall be 
                        performed in accordance with section 
                        101(35)(B).
                  (C) Exemption for certain publicly owned 
                brownfield sites.--Notwithstanding any other 
                provision of law, an eligible entity that is a 
                governmental entity may receive a grant under 
                this paragraph for property acquired by that 
                governmental entity prior to January 11, 2002, 
                even if the governmental entity does not 
                qualify as a bona fide prospective purchaser 
                (as that term is defined in section 101(40)), 
                so long as the eligible entity has not caused 
                or contributed to a release or threatened 
                release of a hazardous substance at the 
                property.
          (3) Grants and loans for brownfield remediation.--
                  (A) Grants provided by the president.--
                [Subject to paragraphs (4) and (5)] subject to 
                paragraphs (5) and (6), the President shall 
                establish a program to provide grants to--
                          (i) eligible entities, to be used for 
                        capitalization of revolving loan funds; 
                        and
                          (ii) eligible entities or nonprofit 
                        organizations, where warranted, as 
                        determined by the President based on 
                        considerations under subparagraph (C), 
                        to be used directly for remediation of 
                        one or more brownfield sites owned by 
                        the entity or organization that 
                        receives the grant and in amounts not 
                        to exceed [$200,000 for each site to be 
                        remediated] $500,000 for each site to 
                        be remediated, but not to exceed a 
                        total of $650,000 for each site, based 
                        on the anticipated level of 
                        contamination, size, or ownership 
                        status of the site.
                  (B) Loans and grants provided by eligible 
                entities.--An eligible entity that receives a 
                grant under subparagraph (A)(i) shall use the 
                grant funds to provide assistance for the 
                remediation of brownfield sites in the form 
                of--
                          (i) one or more loans to an eligible 
                        entity, a site owner, a site developer, 
                        or another person; or
                          (ii) one or more grants to an 
                        eligible entity or other nonprofit 
                        organization, where warranted, as 
                        determined by the eligible entity that 
                        is providing the assistance, based on 
                        considerations under subparagraph (C), 
                        to remediate sites owned by the 
                        eligible entity or nonprofit 
                        organization that receives the grant.
                  (C) Considerations.--In determining whether a 
                grant under subparagraph (A)(ii) or (B)(ii) is 
                warranted, the President or the eligible 
                entity, as the case may be, shall take into 
                consideration--
                          (i) the extent to which a grant will 
                        facilitate the creation of, 
                        preservation of, or addition to a park, 
                        a greenway, undeveloped property, 
                        recreational property, or other 
                        property used for nonprofit purposes;
                          (ii) the extent to which a grant will 
                        meet the needs of a community that has 
                        an inability to draw on other sources 
                        of funding for environmental 
                        remediation and subsequent 
                        redevelopment of the area in which a 
                        brownfield site is located because of 
                        the small population or low income of 
                        the community;
                          (iii) the extent to which a grant 
                        will facilitate the use or reuse of 
                        existing infrastructure;
                          (iv) the benefit of promoting the 
                        long-term availability of funds from a 
                        revolving loan fund for brownfield 
                        remediation; and
                          (v) such other similar factors as the 
                        Administrator considers appropriate to 
                        consider for the purposes of this 
                        subsection.
                  (D) Transition.--Revolving loan funds that 
                have been established before the date of the 
                enactment of this subsection may be used in 
                accordance with this paragraph.
          (4) Multipurpose brownfields grants.--
                  (A) In general.--Subject to subparagraph (D) 
                and paragraphs (5) and (6), the Administrator 
                shall establish a program to provide 
                multipurpose grants to an eligible entity based 
                on the considerations under paragraph (3)(C), 
                to carry out inventory, characterization, 
                assessment, planning, or remediation activities 
                at 1 or more brownfield sites in a proposed 
                area.
                  (B) Grant amounts.--
                          (i) Individual grant amounts.--Each 
                        grant awarded under this paragraph 
                        shall not exceed $950,000.
                          (ii) Cumulative grant amounts.--The 
                        total amount of grants awarded for each 
                        fiscal year under this paragraph shall 
                        not exceed 15 percent of the funds made 
                        available for the fiscal year to carry 
                        out this subsection.
                  (C) Criteria.--In awarding a grant under this 
                paragraph, the Administrator shall consider the 
                extent to which an eligible entity is able--
                          (i) to provide an overall plan for 
                        revitalization of the 1 or more 
                        brownfield sites in the proposed area 
                        in which the multipurpose grant will be 
                        used;
                          (ii) to demonstrate a capacity to 
                        conduct the range of eligible 
                        activities that will be funded by the 
                        multipurpose grant; and
                          (iii) to demonstrate that a 
                        multipurpose grant will meet the needs 
                        of the 1 or more brownfield sites in 
                        the proposed area.
                  (D) Condition.--As a condition of receiving a 
                grant under this paragraph, each eligible 
                entity shall expend the full amount of the 
                grant not later than the date that is 3 years 
                after the date on which the grant is awarded to 
                the eligible entity unless the Administrator, 
                in the discretion of the Administrator, 
                provides an extension.
          [(4)] (5) General provisions.--
                  (A) Maximum grant amount.--
                          (i) Brownfield site characterization 
                        and assessment.--
                                  (I) In general.--A grant 
                                under paragraph (2) may be 
                                awarded to an eligible entity 
                                on a community-wide or site-by-
                                site basis, and shall not 
                                exceed, for any individual 
                                brownfield site covered by the 
                                grant, $200,000.
                                  (II) Waiver.--The 
                                Administrator may waive the 
                                $200,000 limitation under 
                                subclause (I) to permit the 
                                brownfield site to receive a 
                                grant of not to exceed 
                                $350,000, based on the 
                                anticipated level of 
                                contamination, size, or status 
                                of ownership of the site.
                          (ii) Brownfield remediation.--A grant 
                        under paragraph (3)(A)(i) may be 
                        awarded to an eligible entity on a 
                        community-wide or site-by-site basis, 
                        not to exceed $1,000,000 per eligible 
                        entity. The Administrator may make an 
                        additional grant to an eligible entity 
                        described in the previous sentence for 
                        any year after the year for which the 
                        initial grant is made, taking into 
                        consideration--
                                  (I) the number of sites and 
                                number of communities that are 
                                addressed by the revolving loan 
                                fund;
                                  (II) the demand for funding 
                                by eligible entities that have 
                                not previously received a grant 
                                under this subsection;
                                  (III) the demonstrated 
                                ability of the eligible entity 
                                to use the revolving loan fund 
                                to enhance remediation and 
                                provide funds on a continuing 
                                basis; and
                                  (III) such other similar 
                                factors as the Administrator 
                                considers appropriate to carry 
                                out this subsection.
                  (B) Prohibition.--
                          (i) In general.--No part of a grant 
                        or loan under this subsection may be 
                        used for the payment of--
                                  (I) a penalty or fine;
                                  (II) a Federal cost-share 
                                requirement;
                                  [(III)] an administrative 
                                cost;
                                  [(IV)] (III) a response cost 
                                at a brownfield site for which 
                                the recipient of the grant or 
                                loan is potentially liable 
                                under section 107; or
                                  [(V)] (IV) a cost of 
                                compliance with any Federal law 
                                (including a Federal law 
                                specified in section 
                                101(39)(B)), excluding the cost 
                                of compliance with laws 
                                applicable to the cleanup.
                          [(ii) Exclusions.--For the purposes 
                        of clause (i)(III), the term 
                        ``administrative cost'' does not 
                        include the cost of--
                                  [(I) investigation and 
                                identification of the extent of 
                                contamination;
                                  [(II) design and performance 
                                of a response action; or
                                  [(III) monitoring of a 
                                natural resource.]
                          [(iii)] (ii) Exception.--
                        [Notwithstanding clause (i)(IV)] 
                        Notwithstanding clause (i)(III), the 
                        Administrator may use up to 25 percent 
                        of the funds made available to carry 
                        out this subsection to make a grant or 
                        loan under this subsection to eligible 
                        entities that satisfy all of the 
                        elements set forth in section 101(40) 
                        to qualify as a bona fide prospective 
                        purchaser, except that the date of 
                        acquisition of the property was on or 
                        before January 11, 2002.
                  (C) Assistance for development of local 
                government site remediation programs.--A local 
                government that receives a grant under this 
                subsection may use not to exceed 10 percent of 
                the grant funds to develop and implement a 
                brownfields program that may include--
                          (i) monitoring the health of 
                        populations exposed to one or more 
                        hazardous substances from a brownfield 
                        site; and
                          (ii) monitoring and enforcement of 
                        any institutional control used to 
                        prevent human exposure to any hazardous 
                        substance from a brownfield site.
                  (D) Insurance.--A recipient of a grant or 
                loan awarded under paragraph (2) or (3) that 
                performs a characterization, assessment, or 
                remediation of a brownfield site may use a 
                portion of the grant or loan to purchase 
                insurance for the characterization, assessment, 
                or remediation of that site.
                  (E) Administrative costs.--
                          (i) In general.--An eligible entity 
                        may use up to 8 percent of the amounts 
                        made available under a grant or loan 
                        under this subsection for 
                        administrative costs.
                          (ii) Restriction.--For purposes of 
                        clause (i), the term `administrative 
                        costs' does not include--
                                  (I) investigation and 
                                identification of the extent of 
                                contamination;
                                  (II) design and performance 
                                of a response action; or
                                  (III) monitoring of a natural 
                                resource.
          [(5)] (6) Grant applications.--
                  (A) Submission.--
                          (i) In general.--
                                  (I) Application.--An eligible 
                                entity may submit to the 
                                Administrator, through a 
                                regional office of the 
                                Environmental Protection Agency 
                                and in such form as the 
                                Administrator may require, an 
                                application for a grant under 
                                this subsection for one or more 
                                brownfield sites (including 
                                information on the criteria 
                                used by the Administrator to 
                                rank applications under 
                                subparagraph (C), to the extent 
                                that the information is 
                                available).
                                  (II) NCP requirements.--The 
                                Administrator may include in 
                                any requirement for submission 
                                of an application under 
                                subclause (I) a requirement of 
                                the National Contingency Plan 
                                only to the extent that the 
                                requirement is relevant and 
                                appropriate to the program 
                                under this subsection.
                          (ii) Coordination.--The Administrator 
                        shall coordinate with other Federal 
                        agencies to assist in making eligible 
                        entities aware of other available 
                        Federal resources.
                          (iii) Guidance.--The Administrator 
                        shall publish guidance to assist 
                        eligible entities in applying for 
                        grants under this subsection.
                  (B) Approval.--The Administrator shall--
                          (i) at least annually, complete a 
                        review of applications for grants that 
                        are received from eligible entities 
                        under this subsection; and
                          (ii) award grants under this 
                        subsection to eligible entities that 
                        the Administrator determines have the 
                        highest rankings under the ranking 
                        criteria established under subparagraph 
                        (C).
                  (C) Ranking criteria.--The Administrator 
                shall establish a system for ranking grant 
                applications received under this paragraph that 
                includes the following criteria:
                          (i) The extent to which a grant will 
                        stimulate the availability of other 
                        funds for environmental assessment or 
                        remediation, and subsequent reuse, of 
                        an area in which one or more brownfield 
                        sites are located.
                          (ii) The potential of the proposed 
                        project or the development plan for an 
                        area in which one or more brownfield 
                        sites are located to stimulate economic 
                        development of the area on completion 
                        of the cleanup.
                          (iii) The extent to which a grant 
                        would address or facilitate the 
                        identification and reduction of threats 
                        to human health and the environment, 
                        including threats in areas in which 
                        there is a greater-than-normal 
                        incidence of diseases or conditions 
                        (including cancer, asthma, or birth 
                        defects) that may be associated with 
                        exposure to hazardous substances, 
                        pollutants, or contaminants.
                          (iv) The extent to which a grant 
                        would facilitate the use or reuse of 
                        existing infrastructure.
                          (v) The extent to which a grant would 
                        facilitate the creation of, 
                        preservation of, or addition to a park, 
                        a greenway, undeveloped property, 
                        recreational property, or other 
                        property used for nonprofit purposes.
                          (vi) The extent to which a grant 
                        would meet the needs of a community 
                        that has an inability to draw on other 
                        sources of funding for environmental 
                        remediation and subsequent 
                        redevelopment of the area in which a 
                        brownfield site is located because of 
                        the small population or low income of 
                        the community.
                          (vii) The extent to which the 
                        applicant is eligible for funding from 
                        other sources.
                          (viii) The extent to which a grant 
                        will further the fair distribution of 
                        funding between urban and nonurban 
                        areas.
                          (ix) The extent to which the grant 
                        provides for involvement of the local 
                        community in the process of making 
                        decisions relating to cleanup and 
                        future use of a brownfield site.
                          (x) The extent to which a grant would 
                        address or facilitate the 
                        identification and reduction of threats 
                        to the health or welfare of children, 
                        pregnant women, minority or low-income 
                        communities, or other sensitive 
                        populations.
          [(6)] (7) Implementation of brownfields programs.--
                  (A) Establishment of program.--[The 
                Administrator may provide,]
                          (i) Definitions.--In this 
                        subparagraph:
                                  (I) Disadvantaged area.--The 
                                term `disadvantaged area' means 
                                an area with an annual median 
                                household income that is less 
                                than 80 percent of the State-
                                wide annual median household 
                                income, as determined by the 
                                latest available decennial 
                                census.
                                  (II) Small community.--The 
                                term `small community' means a 
                                community with a population of 
                                not more than 15,000 
                                individuals, as determined by 
                                the latest available decennial 
                                census.
                          (ii) Establishment of program.--The 
                        Administrator shall establish a program 
                        to provide grants that provide, or fund 
                        eligible entities or nonprofit 
                        organizations to provide, training, 
                        research, and technical assistance to 
                        individuals and organizations, as 
                        appropriate, to facilitate the 
                        inventory of brownfield sites, site 
                        assessments, remediation of brownfield 
                        sites, community involvement, or site 
                        preparation.
                          (iii) Small or disadvantaged 
                        community recipients.--
                                  (I) In general.--Subject to 
                                subclause (II), in carrying out 
                                the program under clause (ii), 
                                the Administrator shall use not 
                                more than $600,000 of the 
                                amounts made available to carry 
                                out this paragraph to provide 
                                grants to States that receive 
                                amounts under section 128(a) to 
                                assist small communities, 
                                Indian tribes, rural areas, or 
                                disadvantaged areas in 
                                achieving the purposes 
                                described in clause (ii).
                                  (II) Limitation.--Each grant 
                                awarded under subclause (I) 
                                shall be not more than $7,500.
                  (B) Funding restrictions.--The total Federal 
                funds to be expended by the Administrator under 
                this paragraph shall not exceed 15 percent of 
                the total amount appropriated to carry out this 
                subsection in any fiscal year.
          [(7)] (8) Audits.--
                  (A) In general.--The Inspector General of the 
                Environmental Protection Agency shall conduct 
                such reviews or audits of grants and loans 
                under this subsection as the Inspector General 
                considers necessary to carry out this 
                subsection.
                  (B) Procedure.--An audit under this 
                subparagraph shall be conducted in accordance 
                with the auditing procedures of the General 
                Accounting Office, including chapter 75 of 
                title 31, United States Code.
                  (C) Violations.--If the Administrator 
                determines that a person that receives a grant 
                or loan under this subsection has violated or 
                is in violation of a condition of the grant, 
                loan, or applicable Federal law, the 
                Administrator may--
                          (i) terminate the grant or loan;
                          (ii) require the person to repay any 
                        funds received; and
                          (iii) seek any other legal remedies 
                        available to the Administrator.
                  (D) Report to congress.--Not later than 3 
                years after the date of the enactment of this 
                subsection, the Inspector General of the 
                Environmental Protection Agency shall submit to 
                Congress a report that provides a description 
                of the management of the program (including a 
                description of the allocation of funds under 
                this subsection).
          [(8)] (9) Leveraging.--An eligible entity that 
        receives a grant under this subsection may use the 
        grant funds for a portion of a project at a brownfield 
        site for which funding is received from other sources 
        if the grant funds are used only for the purposes 
        described in paragraph (2) or (3).
          [(9)] (10) Agreements.--Each grant or loan made under 
        this subsection shall--
                  (A) include a requirement of the National 
                Contingency Plan only to the extent that the 
                requirement is relevant and appropriate to the 
                program under this subsection, as determined by 
                the Administrator; and
                  (B) be subject to an agreement that--
                          (i) requires the recipient to--
                                  (I) comply with all 
                                applicable Federal and State 
                                laws; and
                                  (II) ensure that the cleanup 
                                protects human health and the 
                                environment;
                          (ii) requires that the recipient use 
                        the grant or loan exclusively for 
                        purposes specified in paragraph (2) or 
                        (3), as applicable;
                          (iii) in the case of an application 
                        by an eligible entity under paragraph 
                        (3)(A), requires the eligible entity to 
                        pay a matching share (which may be in 
                        the form of a contribution of labor, 
                        material, or services) of at least 20 
                        percent, from non-Federal sources of 
                        funding, unless the Administrator 
                        determines that the matching share 
                        would place an undue hardship on the 
                        eligible entity; and
                          (iv) contains such other terms and 
                        conditions as the Administrator 
                        determines to be necessary to carry out 
                        this subsection.
          (11) Waterfront brownfield sites.--
                  (A) Definition of waterfront brownfield 
                site.--In this paragraph, the term `waterfront 
                brownfield site' means a brownfield site that 
                is adjacent to a body of water or a federally 
                designated floodplain.
                  (B) Requirements.--In providing grants under 
                this subsection, the Administrator shall--
                          (i) take into consideration whether 
                        the brownfield site to be served by the 
                        grant is a waterfront brownfield site; 
                        and
                          (ii) give consideration to waterfront 
                        brownfield sites.
          (12) Clean energy projects at brownfield sites.--
                  (A) Definition of clean energy project.--In 
                this paragraph, the term `clean energy project' 
                means--
                          (i) a facility that generates 
                        renewable electricity from wind, solar, 
                        or geothermal energy; and
                          (ii) any energy efficiency 
                        improvement project at a facility, 
                        including combined heat and power and 
                        district energy.
                  (B) Establishment.--The Administrator shall 
                establish a program to provide grants--
                          (i) to eligible entities to carry out 
                        inventory, characterization, 
                        assessment, planning, feasibility 
                        analysis, design, or remediation 
                        activities to locate a clean energy 
                        project at 1 or more brownfield sites; 
                        and
                          (ii) to capitalize a revolving loan 
                        fund for the purposes described in 
                        clause (i).
                  (C) Maximum amount.--A grant under this 
                paragraph shall not exceed $500,000.
          [(10)] (13) Facility other than brownfield site.--The 
        fact that a facility may not be a brownfield site 
        within the meaning of section 101(39)(A) has no effect 
        on the eligibility of the facility for assistance under 
        any other provision of Federal law.
          [(11)] (14) Effect on federal laws.--Nothing in this 
        subsection affects any liability or response authority 
        under any Federal law, including--
                  (A) this Act (including the last sentence of 
                section 101(14));
                  (B) the Solid Waste Disposal Act (42 U.S.C. 
                6901 et seq.);
                  (C) the Federal Water Pollution Control Act 
                (33 U.S.C. 1251 et seq.);
                  (D) the Toxic Substances Control Act (15 
                U.S.C. 2601 et seq.); and
                  (E) the Safe Drinking Water Act (42 U.S.C. 
                300f et seq.).
          [(12)] (15) Funding.--
                  (A) Authorization of appropriations.--There 
                is authorized to be appropriated to carry out 
                this subsection $200,000,000 for each of fiscal 
                years 2002 through [2006] 2018.
                  (B) Use of certain funds.--Of the amount made 
                available under subparagraph (A), $50,000,000, 
                or, if the amount made available is less than 
                $200,000,000, 25 percent of the amount made 
                available, shall be used for site 
                characterization, assessment, and remediation 
                of facilities described in section 
                101(39)(D)(ii)(II).
                  (C) Targeted funding.--Of the amounts made 
                available under subparagraph (A) for a fiscal 
                year, the Administrator may use not more than 
                $2,000,000 to provide grants to States for 
                purposes authorized under section 128(a), 
                subject to the condition that each State that 
                receives a grant under this subparagraph shall 
                have used at least 50 percent of the amounts 
                made available to that State in the previous 
                fiscal year to carry out assessment and 
                remediation activities under section 128(a).

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SEC. 128. STATE RESPONSE PROGRAMS.

  (a) Assistance to States.--
          (1) In general.--
                  (A) States.--The Administrator may award a 
                grant to a State or Indian tribe that--
                          (i) has a response program that 
                        includes each of the elements, or is 
                        taking reasonable steps to include each 
                        of the elements, listed in paragraph 
                        (2); or
                          (ii) is a party to a memorandum of 
                        agreement with the Administrator for 
                        voluntary response programs.
                  (B) Use of grants by states.--
                          (i) In general.--A State or Indian 
                        tribe may use a grant under this 
                        subsection to establish or enhance the 
                        response program of the State or Indian 
                        tribe.
                          (ii) Additional uses.--In addition to 
                        the uses under clause (i), a State or 
                        Indian tribe may use a grant under this 
                        subsection to--
                                  (I) capitalize a revolving 
                                loan fund for brownfield 
                                remediation under section 
                                104(k)(3); or
                                  (II) purchase insurance or 
                                develop a risk sharing pool, an 
                                indemnity pool, or insurance 
                                mechanism to provide financing 
                                for response actions under a 
                                State response program.
          (2) Elements.--The elements of a State or Indian 
        tribe response program referred to in paragraph 
        (1)(A)(i) are the following:
                  (A) Timely survey and inventory of brownfield 
                sites in the State.
                  (B) Oversight and enforcement authorities or 
                other mechanisms, and resources, that are 
                adequate to ensure that--
                          (i) a response action will--
                                  (I) protect human health and 
                                the environment; and
                                  (II) be conducted in 
                                accordance with applicable 
                                Federal and State law; and
                          (ii) if the person conducting the 
                        response action fails to complete the 
                        necessary response activities, 
                        including operation and maintenance or 
                        long-term monitoring activities, the 
                        necessary response activities are 
                        completed.
                  (C) Mechanisms and resources to provide 
                meaningful opportunities for public 
                participation, including--
                          (i) public access to documents that 
                        the State, Indian tribe, or party 
                        conducting the cleanup is relying on or 
                        developing in making cleanup decisions 
                        or conducting site activities;
                          (ii) prior notice and opportunity for 
                        comment on proposed cleanup plans and 
                        site activities; and
                          (iii) a mechanism by which--
                                  (I) a person that is or may 
                                be affected by a release or 
                                threatened release of a 
                                hazardous substance, pollutant, 
                                or contaminant at a brownfield 
                                site located in the community 
                                in which the person works or 
                                resides may request the conduct 
                                of a site assessment; and
                                  (II) an appropriate State 
                                official shall consider and 
                                appropriately respond to a 
                                request under subclause (I).
                  (D) Mechanisms for approval of a cleanup 
                plan, and a requirement for verification by and 
                certification or similar documentation from the 
                State, an Indian tribe, or a licensed site 
                professional to the person conducting a 
                response action indicating that the response is 
                complete.
          (3) Funding.--There is authorized to be appropriated 
        to carry out this subsection $50,000,000 for each of 
        fiscal years 2002 through [2006] 2018.

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