I

103D CONGRESS

2D SESSION H. R. 3844

To authorize the Administrator of the Environmental Protection Agency to

provide loans to States to establish revolving loan funds for the environmental cleanup of sites in distressed areas that have the potential to

attract private investment and create local employment.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 10, 1994

Mr. VISCLOSKY (for himself, Mr. REGULA, Mr. FINGERHUT, and Mr. LIPINSKI) introduced the following bill; which was referred to the Committee

on Energy and Commerce

A BILL

To authorize the Administrator of the Environmental Protection Agency to provide loans to States to establish revolving loan funds for the environmental cleanup of sites

in distressed areas that have the potential to attract

private investment and create local employment.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Brownfield Cleanup

5 and Redevelopment Revolving Loan Fund Act’’.

6 SEC. 2. FINDINGS AND PURPOSES.

7 (a) FINDINGS.—The Congress finds the following:
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1 (1) Contaminated and underused or abandoned

2 industrial sites in distressed communities are, eco3 nomically, at a competitive disadvantage relative to

4 greenfield sites, as capital for their cleanup and re5 development may not be available.

6 (2) Contaminated and underused and aban7 doned industrial properties located in distressed

8 areas, owned by private, public, or nonprofit entities,

9 often with significant economic development poten10 tial once cleaned up, are unable to secure initial fi11 nancing for site remediation.

12 (3) Considerable public benefits can accrue

13 from such sites once cleaned up and brought back

14 to productive reuse, especially those devoted to in15 dustrial purposes that employ enviornmentally sound

16 practices.

17 (4) Voluntary cleanup programs spur private

18 sector cleanups when the property value is sufficient

19 and its location favorable enough to make the addi20 tional costs of cleanup economically feasible, but this

21 approach does not resolve the problems facing prop22 erties with little or no value, common among sites lo23 cated in economically distressed areas.

24 (5) Because of their experience in administering

25 targeted loan assistance programs, States are in a
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1 good position to use Federal funds to capitalize re2 volving loan funds to support local cleanup and rede3 velopment projects.

4 (b) PURPOSE.—The purpose of this Act is to revital5 ize distressed communities by providing loans for cleanup

6 of certain industrial properties that have the potential to

7 attract private investment, foster clean manufacturing,

8 and create jobs for local residents.

9 SEC. 3. REVOLVING LOAN FUND FOR CLEANUPS UNDER

10 STATE VOLUNTARY CLEANUP PROGRAMS.

11 (a) ESTABLISHMENT OF LOAN PROGRAM.—The Ad12 ministrator of the Environmental Protection Agency

13 (hereinafter in this Act referred to as the ‘‘Adminis14 trator’’) shall establish a program to provide a capitaliza15 tion loan to any State that submits an application that

16 is approved by the Administrator to establish or expand

17 a State revolving loan fund for purposes of providing loans

18 for voluntary environmental cleanups of eligible facilities.

19 (b) APPLICATION FOR LOAN.—An application for a

20 capitalization loan under this section shall be in such form

21 as the Administrator considers appropriate. At a mini22 mum, the application shall include each of the following:

23 (1) Evidence that the State is carrying out a

24 voluntary cleanup program for eligible facilities. The

25 Administrator shall insure that the State voluntary
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1 program provides, at a minium, adequate opportuni2 ties for public participation, sufficient technical as3 sistance, and oversight to ensure that cleanups com4 ply with Federal and State laws, and certification to

5 the owner and prospective purchaser that the clean6 up is complete.

7 (2) Evidence that the State will provide a

8 matching share of at least 20 percent of the costs

9 of such cleanup from either new or existing sources

10 of State funding.

11 (3) A description of the State’s proposed revolv12 ing loan program and of the State’s capability to

13 manage the program. States may use interest in14 come or loan repayments (in an amount equal to not

15 more than 10 percent of their revolving loan fund

16 amount) for program administrative purposes. At a

17 minimum, the State’s revolving loan program shall—

18 (A) provide loans to both public and pri19 vate parties conducting voluntary cleanups

20 under the State’s voluntary cleanup program

21 who are unable to secure loans from private

22 lending institutions or other means of financ23 ing;
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1 (B) require that borrowers demonstrate

2 credit worthiness and the ability to carry out

3 the cleanup; and

4 (C) give priority to loans for the purpose

5 of cleaning up—

6 (i) facilities that are planned to be re7 used for industrial purposes that employ

8 environmentally sound practices; and

9 (ii) facilities that will generate jobs

10 for contractors whose principal place of

11 business is the political subdivision in

12 which the facility is located or for laborers

13 who reside in such political subdivisions.

14 (4) A statement that the State will begin repay15 ment of the loan within 5 years after receipt of the

16 loan, and evidence of the State’s ability to repay the

17 loan.

18 (5) A statement that a loan from the revolving

19 loan fund will not be used to pay for any of the fol20 lowing:

21 (A) New construction.

22 (B) Environmental fines or penalties.

23 (C) Speculative assessments or speculative

24 rehabilitation at facilities with little or no po25 tential for economic development.
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1 (6) Such other elements as the Administrator

2 considers appropriate.

3 (c) AMOUNT OF LOAN.—The Administrator shall de4 termine the distribution of funds among the eligible

5 States. The amount of a capitalization loan made by the

6 Administrator under this Act to a State may not exceed

7 15 percent of the amount available each year to all the

8 eligible States.

9 (d) AUTHORIZATION.—There are authorized to be ap10 propriated to the Administrator for purposes of making

11 capitalization loans to States under this section the sum

12 of $5,000,000 for fiscal year 1995 and $7,500,000 for

13 each of the fiscal years 1996 and 1997.

14 SEC. 4. DEFINITIONS.

15 For purposes of this Act the term ‘‘eligible facility’’

16 means a facility or property in a State that is determined

17 by the State to have environmental contamination that—

18 (1) could prevent the timely use, development,

19 or reuse of the facility or property; and

20 (2) is limited in scope and can be comprehen21 sively and readily evaluated.

22 Such term shall not include any of the following:

23 (A) A facility that is eligible for abatement ac24 tion under section 106 of the Comprehensive Envi-
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1 ronmental Response, Compensation, and Liability

2 Act of 1980.

3 (B) A facility that, as of the date of the enact4 ment of this Act, is subject to Federal enforcement

5 action under the Comprehensive Environmental Re6 sponse, Compensation, and Liability Act of 1980 (42

7 U.S.C. 9601 et seq.).

8 (C) A facility included, or proposed for inclu9 sion, on the National Priorities List or on the com10 prehensive environmental response, compensation,

11 and liability inventory system (‘‘CERCLIS’’) that

12 has been evaluated as high priority under the hazard

13 ranking system.

14 (D) A facility required to have a permit under

15 section 3005 of the Solid Waste Disposal Act that

16 does not have a permit under that section and does

17 not qualify for authorization to operate in interim

18 status under subsection (e) of that section.

19 (E) A land disposal unit with respect to which

20 a closure notification under subtitle C of the Solid

21 Waste Disposal Act (42 U.S.C. 6921 et seq.) is sub22 mitted and closure requirements are specified in a

23 closure plan or permit.

24 (F) A facility subject to corrective action under

25 section 3004(u) or 3008(h) of the Solid Waste Dis-
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1 posal Act (42 U.S.C. 5924(u) or 6928(h)) that is

2 evaluated as high priority under the Environmental

3 Protection Agency’s National Corrective Action Pri4 ority System as set forth in regulations under sub5 title C of the Solid Waste Disposal Act.

6 (G) A facility at which assistance for response

7 activities may be obtained pursuant to subtitle I of

8 the Solid Waste Disposal Act (42 U.S.C. 6991 et

9 seq.) from the Leaking Underground Storage Tank

10 Trust Fund established under section 9508 of the

11 Internal Revenue Code of 1986.

12 (H) A facility owned or operated by a depart13 ment, agency, or instrumentality of the United

14 States.

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