19–006

108TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 1st Session 108–22

BROWNFIELDS REDEVELOPMENT ENHANCEMENT ACT

MARCH 5, 2003.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. OXLEY, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 239] 

[Including cost estimate of the Congressional Budget Office]

The Committee on Financial Services, to whom was referred the 

bill (H.R. 239) to facilitate the provision of assistance by the Department of Housing and Urban Development for the cleanup and 

economic redevelopment of brownfields, having considered the 

same, report favorably thereon without amendment and recommend that the bill do pass.

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 1

Background and Need for Legislation .................................................................... 2

Hearings ................................................................................................................... 3

Committee Consideration ........................................................................................ 3

Committee Votes ...................................................................................................... 3

Committee Oversight Findings ............................................................................... 3

Performance Goals and Objectives ......................................................................... 3

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 4

Committee Cost Estimate ....................................................................................... 4

Congressional Budget Office Cost Estimate .......................................................... 4

Federal Mandates Statement ................................................................................. 6

Constitutional Authority Statement ...................................................................... 6

Applicability to Legislative Branch ........................................................................ 6

Executive Branch Correspondence ......................................................................... 6

Section-by-Section Analysis .................................................................................... 7

PURPOSE AND SUMMARY

H.R. 239, the Brownfields Redevelopment Enhancement Act, increases access to brownfields redevelopment funds for America’s 

small communities by de-linking section 108 loan guarantees from 

HUD’s Brownfields Economic Development Initiative (BEDI) 

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grants. The bill also authorizes HUD to establish a pilot program 

for a common brownfields redevelopment loan pool. 

BACKGROUND AND NEED FOR LEGISLATION

There is widespread consensus over the need to cleanup an estimated 500,000 ‘‘brownfield’’ sites across the country. Brownfield 

sites are those where redevelopment is complicated by potential environmental contamination, but that are less seriously contaminated than those covered under the Superfund Act (Public Law 96–

510, as amended). Many believe that by promoting the redevelopment of these sites and revitalizing the communities around them, 

local jurisdictions would improve the quality of life and the environment in these areas. 

Both HUD and the Environmental Protection Agency (EPA) currently administer brownfield programs, with EPA focusing on assessment and cleanup and HUD focusing on redevelopment. HUD 

administers grants through a program called the Brownfields Economic Development Initiative program, which has been helpful for 

large communities but which carries certain conditions that make 

smaller communities hesitant to apply for program funds. 

During the 107th Congress the Committee considered H.R. 2941, 

the Brownfields Redevelopment Act of 2001. The bill was supported 

by HUD and by the Administration. Significantly, the FY 2003 

HUD budget request submitted to the President proposed decoupling the brownfields program from the section 108 loan guarantee 

program to attract more participants. This mirrored the initiative 

taken in H.R. 2941. 

A hearing was held on H.R. 2941 on March 6. 2002. Witnesses 

who spoke in favor of the bill included The Honorable Roy Benardi, 

HUD’s Assistant Secretary for Community Planning and Development; The Honorable Lydia Reid, Mayor of Mansfield, Ohio; The 

Honorable Frederick M. Kalisz, Jr., Mayor of New Bedford, Massachusetts; and representatives of the National Association for County Community and Economic Development, National Association of 

Homebuilders and National Brownfields Association. 

On June 4, 2002, the House passed H.R. 2941 by a voice vote 

under suspension of the rules. No action was taken in the Senate. 

Presumably because of budget constraints, the 2004 HUD budget 

proposes the elimination of funding for the BEDI program. The 

Committee believes that this funding should be restored. While the 

Environmental Protection Agency administers some programs to 

revitalize brownfields, the Committee believes that HUD should 

not vacate its own role in cleaning up these blighted sites. The 

BEDI program is a powerful tool for communities interested in 

brownfields redevelopment, and fostering a partnership with the 

EPA will be helpful for both agencies and for our nation’s urban 

areas. 

Like it’s predecessor, H.R. 239 focuses on providing access to capital for local entities that traditionally have had trouble obtaining 

financing for brownfields redevelopment activities. Most notably, 

H.R. 239 eliminates the requirement that local governments obtain 

section 108 loan guarantees as a condition to receiving BEDI grant 

funding. De-linking BEDI grants from section 108 loan guarantees 

is important because some small cities have great difficulty in securing or are unable to secure those guarantees. 

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H.R. 239 also establishes a ‘‘Pilot Program for National Redevelopment of Brownfields.’’ With this authority, the HUD Secretary 

will be able to fund a common pool for economic development loans 

available to eligible local governments and distribute these loans 

on a competitive basis. 

The Committee intends that HUD will continue its current practice of consulting with other federal agencies in carrying out the 

Department’s remediation and redevelopment activities under its 

brownfields program. 

Because of concerns over agency coordination of brownfields site 

cleanup, the Committee also believes that HUD should continue to 

defer to the federally directed and funded remedial cleanup activities of the Environmental Protection Administration, and other applicable Federal agencies, which are underway or about to occur, 

in highly contaminated areas. This includes cleanups covered by 

the Comprehensive Environmental Response Compensation and Liability Act (CERCLA, or Superfund), the Resource Conservation 

and Recovery Act, the Federal Water Pollution Control Act, the 

Toxic Substances Control Act, and the Safe Drinking Water Act. 

Further, HUD will continue to respect orders issued by EPA, and 

others, pursuant to their jurisdiction over highly contaminated 

areas, in carrying out the Department’s brownfields program. 

HEARINGS

No hearings were held on this legislation in the 108th Congress. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

February 13, 2003 and ordered H.R. 239, the Brownfields Redevelopment Enhancement Act, reported to the House with a favorable 

recommendation, without amendment, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. No record votes were 

taken in conjunction with the consideration of this legislation. A 

motion by Mr. Oxley to report the bill to the House with a favorable recommendation was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee made findings that are reflected 

in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

The Department of Housing and Urban Development will use the 

authority granted by this legislation to accelerate and improve the 

redevelopment of brownfields sites. 

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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by the 

Director of the Congressional Budget Office pursuant to section 402 

of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974:

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 25, 2003. 

Hon. MICHAEL G. OXLEY, 

Chairman, Committee on Financial Services, 

U.S. House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 239, the Brownfields Redevelopment Enhancement Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contacts are Susanne S. Mehlman 

(for federal costs), and Greg Waring (for the state and local impact). 

Sincerely, 

DOUGLAS HOLTZ-EAKIN, 

Director. 

Enclosure. 

H.R. 239—Brownfields Redevelopment Enhancement Act 

Summary: CBO estimates that implementing H.R. 239 would 

cost $96 million over the next five years, assuming appropriation 

of the necessary amounts. Of this amount, $65 million would be 

used by the Department of Housing and Urban Development 

(HUD) to provide grants to local and tribal governments to support 

the environmental cleanup and economic development of brownfield 

sites. (Brownfields are properties where the presence, or potential 

presence, of a hazardous substance complicates the expansion or 

redevelopment of the property.) 

The remaining $31 million of the bill’s estimated cost of $96 million would be used by HUD to establish a pilot program to encourage more communities to support redevelopment efforts at 

brownfield sites. Under such a program, communities would use 

their section 108 loan guarantee funds in conjunction with a 

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brownfields grant to make loans to third parties who are interested 

in redeveloping brownfield sites. In turn, HUD would pool together 

such loans and then use the majority of the appropriated funds to 

establish a shared loss reserve for those new loans. Participating 

communities would then no longer have to use their community development block grant (CDBG) funds to pay for defaults on such 

loans, and they could receive a share of this reserve after any default payments are made. 

Enacting H.R. 239 would have no impact on direct spending or 

receipts. 

H.R. 239 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would provide benefits to local and tribal governments. The 

grant programs in the bill would provide benefits to local and tribal 

governments engaged in the redevelopment of brownfield sites.

Estimated cost to the federal government: The estimated budgetary impact of H.R. 239 is shown in the following table. The costs 

of this legislation fall within budget function 450 (community and 

regional development).

By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007 2008

SPENDING SUBJECT TO APPROPRIATION

Brownfields Redevelopment Spending Under Current 

Law: 

Budget Authority 1 ................................................... 25 0 0 0 0 0

Estimated Outlays ................................................... 20 21 19 14 8 5

Proposed Changes

Brownfields Redevelopment Grants: 

Estimated Authorization Level ................................. 0 25 25 25 25 25

Estimated Outlays ................................................... 0 1 6 14 20 24

Pilot Program: 

Estimated Authorization Level ................................. 0 11 11 11 0 0

Estimated Outlays ................................................... 0 2 6 9 9 5

Total Changes: 

Estimated Authorization Level ................................. 0 36 36 36 25 25

Estimated Outlays ................................................... 0 3 12 23 29 29

Brownfields Redevelopment Spending Under H.R. 239: 

Estimated Authorization Level 1 .............................. 25 36 36 36 25 25

Estimated Outlays ................................................... 20 24 31 37 37 34

1 The 2003 level is the amount appropriated for that year for the Brownfields Redevelopment Program. 

Basis of estimate: For purposes of this estimate, CBO assumes 

that the bill will be enacted before the start of fiscal year 2004 and 

that necessary amounts will be appropriated for each fiscal year. 

Estimated outlays are based on historical spending patterns of 

similar HUD programs. 

CBO estimates that HUD would use an appropriation of $25 million a year over the 2004–2008 period to provide grants to public 

entities for assistance in the cleanup and redevelopment of 

brownfield sites. The appropriation level has been set at $25 million for each if the last six years. Enacting this legislation also 

would remove the requirement that brownfield redevelopment 

grants be used in conjunction with section 108 community development loan guarantees. 

According to HUD, it would take about three years to implement 

a pilot program aimed at encouraging additional redevelopment efforts at brownfield sites. Based on the number of communities likeVerDate Jan 31 2003 07:13 Mar 08, 2003 Jkt 019006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR022.XXX HR022
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ly to participate and on previous HUD proposals to establish such 

a pilot program, CBO estimates that HUD would need $11 million 

annually over the next three years. If appropriated, we estimate 

that such funding would be spent over the next six years at rates 

similar to the disbursement rate for section 108 loan guarantees. 

Intergovernmental and private-sector impact: H.R. 239 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. Local and tribal governments would benefit from a national 

brownfield pilot program, the clarification of brownfield redevelopment as a CDBG activity, and the decoupling of brownfield grants 

from the section 108 loan guarantee program. Such changes would 

provide grantees more flexibility in using federal funds. Any costs 

associated with participating in the grant and pilot programs 

would be voluntary. 

Estimate prepared by: Federal Costs: Susanne S. Mehlman. Impact on State, Local, and Tribal Governments: Greg Waring. Impact on the Private Sector: Lauren Marks. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional 

Authority of Congress to enact this legislation is provided by Article 1, section 8, clause 1 (relating to the defense and general welfare of the United States), and clause 3 (relating to the power to 

regulate foreign and interstate commerce). 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

EXECUTIVE BRANCH CORRESPONDENCE

The Committee is including the following executive correspondence on similar legislation from the 107th Congress as it also applies to the bill:

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND

DEVELOPMENT, Washington, DC, February 25, 2003. 

Hon. MICHAEL G. OXLEY,

Chairman, Committee on Financial Services, 

U.S. House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Department is supportive of H.R. 2941 

(Brownfields Redevelopment Enhancement Act), the principal purpose of which is to delink the Brownfields Economic Development 

Initiative (BEDI) grant program from the Section 108 Guaranteed 

Loan program. The impact of delinking the BEDI is that it would 

allow more communities to participate in the program and have access to funds for the redevelopment of brownfields. Also, we think 

that by removing the requirement that BEDI grant recipients also 

utilize Section 108 loan funds in the same project, the grant funds 

will be utilized faster and projects will be revitalized sooner. 

The definition of brownfields that HUD currently uses is, ‘‘abandoned, idled, or underused real property (including industrial and 

commercial facilities) where expansion or redevelopment is complicated by real or perceived contamination.’’ This definition has 

been successfully used by HUD for many years. 

HUD prohibits the use of grant and/or loan funds for restricted 

areas in its current, and previous, Notice of Funding Availability 

(NOFA), as follows:

BEDI grant funds shall not be used in any manner by 

grantees to provide public or private sector entities with 

funding to remediate conditions caused by their own actions, where the public entity (or other known prospective 

beneficiary of the proposed BEDI grant) has been determined responsible for causation and remediation by order 

of a court or a Federal, State, or local regulatory agency, 

or is responsible for the remediation as part of a settlement approved by such a court or agency. 

Applicants may not propose projects on sites, which are 

listed or proposed to be listed on EPA’s National PriorityList (NPL). Further, applicants are cautioned against proposing projects on sites where the nature and degree of environmental contamination is not well quantified or which 

are the subject of on-going litigation or environmental enforcement action.

We believe the NOFA—as the regulatory instrument—is the appropriate place to provide further delineations regarding eligible 

and ineligible sites and provides clear guidelines on eligibility for 

the program. In order to ensure the integrity of these guidelines, 

HUD will continue to consult with other Federal agencies in carrying out the Department’s brownfields remediation and redevelopment activities. 

Sincerely, 

ROY A. BERNARDI. 

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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section provides the short title of the bill, the ‘‘Brownfields 

Redevelopment Enhancement Act.’’

Section 2. Findings and purposes 

This section sets forth certain findings regarding the benefits of 

brownfields redevelopment and a change to current HUD programs 

that would enable communities to more effectively work with HUD 

on brownfields redevelopment. This section also establishes the 

purposes of the Act. 

Section 3. Brownfields Development Initiative 

This section amends title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) to allow the Secretary to make grants to public entities for projects and activities 

to assist the environmental cleanup and economic development of 

brownfield sites. Grants will be made (a) based on application procedures established by the Secretary; (b) only for activities specified 

in section 108(a); (c) with consideration of the extent of financial 

leveraging involved in funded projects; and (d) without the necessity of a section 108 loan guarantee. Appropriations are authorized 

for grants for each of fiscal years 2004, 2005, 2006, 2007 and 2008. 

Section 4. Clarification of Brownfields redevelopment as eligible 

CDBG activity 

This section makes a technical correction to title II of the Department of Veterans Affairs and Housing and Urban Development, 

and Independent Agenicies Appropriations Act, 1997 (Public Law 

104–204; 110 Stat. 2887). This section also amends section 105(a) 

of the Housing and Community Development Act of 1974 (42 

U.S.C. 5305(a)) to include environmental cleanup and economic development activities related to brownfields projects in conjunction 

with the appropriate environmental regulatory agencies. 

Section 5. Pilot program for national redevelopment of Brownfields 

This section amends section 108(q) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(q)) by providing that 

the Secretary may establish a pilot program to develop, maintain, 

and administer a common loan pool for economic development 

loans to eligible public entities. Entities may be selected on a competitive or noncompetitive basis under the terms and conditions established by the Secretary. Sufficient appropriations are authorized 

to ensure the viability of the program. 

Section 6. Technical amendment to allow use of CDBG funds to administer renewal communities 

This section amends section 105(a)(13) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) by inserting ‘‘and renewal communities’’ after ‘‘enterprise zones’’. 

Section 7. Applicability 

This section stipulates that this legislation will apply only with 

respect to amounts made available for fiscal year 2004 and fiscal 

9

years thereafter for use under the provisions of the law amended 

by this bill. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, 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): 

HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974

* * * * * * *

PART I—COMMUNITY DEVELOPMENT 

* * * * * * *

TITLE I—COMMUNITY DEVELOPMENT 

* * * * * * *

ELIGIBLE ACTIVITIES

SEC. 105. (a) Activities assisted under this title may include 

only—

(1) * * *

* * * * * * *

(13) payment of reasonable administrative costs related to 

establishing and administering federally approved enterprise 

zones and renewal communities and payment of reasonable administrative costs and carrying charges related to (A) administering the HOME program under title II of the CranstonGonzalez National Affordable Housing Act; and (B) the planning and execution of community development and housing activities, including the provision of information and resources to 

residents of areas in which community development and housing activities are to be concentrated with respect to the planning and execution of such activities, and including the carrying out of activities as described in section 701(e) of the 

Housing Act of 1954 on the date prior to the date of enactment 

of the Housing and Community Development Amendments of 

1981; 

* * * * * * *

(24) provision of direct assistance to facilitate and expand 

homeownership among persons of low and moderate income 

(except that such assistance shall not be considered a public 

service for purposes of paragraph (8)) by using such assistance 

to—

(A) * * *

* * * * * * *

(E) pay reasonable closing costs (normally associated 

with the purchase of a home) incurred by a low- or moderate-income homebuyers; øand¿

10

(25) lead-based paint hazard evaluation and reduction, as defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992ø.¿; and

(26) environmental cleanup and economic development activities related to brownfield projects in conjunction with the appropriate environmental regulatory agencies.

* * * * * * *

GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY

SEC. 108. (a)***

* * * * * * *

(q) ECONOMIC DEVELOPMENT GRANTS.— (1) * * *

* * * * * * *

(5) PILOT PROGRAM FOR NATIONAL REDEVELOPMENT OF

BROWNFIELDS.—

(A) IN GENERAL.—Using any amounts made available 

under this subsection, the Secretary may establish a pilot 

program under which grants under this subsection are 

used to develop, maintain, and administer (including the 

payment of an entity or entities selected pursuant to subparagraph (B)) a common loan pool of development loans 

for brownfield redevelopment projects made on behalf of eligible public entities with the proceeds of obligations guaranteed under this section, including related security and a 

common loans loss reserve account, for the benefit of participants in the pilot program. 

(B) SELECTION OF PROGRAM MANAGERS AND CONTRACTORS.—The Secretary may select an entity or entities on a 

competitive or noncompetitive basis to carry out any of the 

functions involved in the pilot program. 

(C) TERMS FOR PARTICIPATION.—Participation by eligible 

public entities in the pilot program shall be under such 

terms and conditions as the Secretary may require. 

(D) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as may be necessary—

(i) for grants under this subsection to be used only in 

conjunction with the pilot program under this paragraph; and 

(ii) for costs of carrying out the pilot program under 

this paragraph and ensuring that the program is carried out in an effective, efficient, and viable manner.

* * * * * * *

SEC. 123. BROWNFIELDS DEVELOPMENT INITIATIVE. 

(a) IN GENERAL.—The Secretary may make grants under this section, on a competitive basis as specified in section 102 of the Department of Housing and Urban Development Reform Act of 1989 (42 

U.S.C. 3545), only to eligible public entities (as such term is defined 

in section 108(o) of this title) and Indian tribes for carrying out 

projects and activities to assist the environmental cleanup and deVerDate Jan 31 2003 07:13 Mar 08, 2003 Jkt 019006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6603 E:\HR\OC\HR022.XXX HR022
11

velopment of brownfield sites, which shall include mine-scarred 

lands. 

(b) USE OF GRANT AMOUNTS.—Amounts from grants under this 

section shall—

(1) be used, as provided in subsection (a) of this section, only 

for activities specified in section 108(a); and 

(2) be subject to the same requirements that, under section 

101(c) and paragraphs (2) and (3) of section 104(b), apply to 

grants under section 106. 

(c) AVAILABILITY OF ASSISTANCE.—The Secretary shall not require, for eligibility for a grant under this section, that such grant 

amounts be used only in connection or conjunction with projects and 

activities assisted with a loan guaranteed under section 108. 

(d) APPLICATIONS.—Applications for assistance under this section 

shall be in the form and in accordance with procedures as shall be 

established by the Secretary. 

(e) SELECTION CRITERIA AND LEVERAGING.—The Secretary shall 

establish criteria for awarding grants under this section, which may 

include the extent to which the applicant has obtained other Federal, State, local, or private funds for the projects and activities to 

be assisted with grant amounts and such other criteria as the Secretary considers appropriate. Such criteria shall include consideration of the appropriateness of the extent of financial leveraging involved in the projects and activities to be funded with the grant 

amounts. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated for grants under this section such sums as may be 

necessary for each of fiscal years 2004, 2005, 2006, 2007, and 2008.

* * * * * * *

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