```

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2064 Introduced in House (IH)]

107th CONGRESS
  1st Session
                                H. R. 2064

 To provide for comprehensive brownfield site assessment, cleanup, and 
                             redevelopment.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 5, 2001

   Mr. Quinn (for himself, Mr. Meehan, Mr. McHugh, and Mr. McGovern) 
 introduced the following bill; which was referred to the Committee on 
    Financial Services, and in addition to the Committees on Small 
Business, Transportation and Infrastructure, and Ways and Means, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
 To provide for comprehensive brownfield site assessment, cleanup, and 
                             redevelopment.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Brownfields Redevelopment Incentives 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Definitions.
 TITLE I--REDEVELOPMENT OF BROWNFIELD SITES THROUGH EXISTING COMMUNITY 
           DEVELOPMENT AND SMALL BUSINESS ASSISTANCE PROGRAMS

               Subtitle A--Community Development Programs

Sec. 101. Eligibility of nonentitlement communities for Brownfields 
                            Economic Development Program.
Sec. 102. Collateral for CDBG loan guarantees for loans funding 
                            brownfield sites activities.
Sec. 103. Definitions.
Sec. 104. Community development financial institutions assistance for 
                            brownfield sites activities.
                  Subtitle B--Small Business Programs

Sec. 111. Set-aside of general business loans for brownfield 
                            activities.
Sec. 112. Small business investment companies devoted to brownfield 
                            cleanup activities.
Sec. 113. Small business development company set-aside for brownfield 
                            prevention and redevelopment projects.
Sec. 114. Sense of Congress regarding risk.
     TITLE II--REDEVELOPMENT OF BROWNFIELD SITES THROUGH ECONOMIC 
                  DEVELOPMENT ADMINISTRATION PROGRAMS

Sec. 201. Purposes.
Sec. 202. Definitions.
Sec. 203. Coordination.
Sec. 204. Grants for brownfield site redevelopment.
Sec. 205. Authorization of appropriations.
           TITLE III--TAX INCENTIVES RELATING TO BROWNFIELDS

Sec. 301. Environmental remediation tax credit.
Sec. 302. Brownfields IRA.
Sec. 303. Exclusion of interest received on indebtedness incurred for 
                            environmental remediation.
Sec. 304. Expensing of environmental remediation costs.
Sec. 305. Credit for environmental remediation technology research.

SEC. 3. FINDINGS.

    The Congress finds that--
            (1) the biggest hurdle that cities, communities, and the 
        private sector face when trying to acquire and redevelop 
        brownfield sites is the lack of capital to carry out critical 
        early-stage activities, including site assessment and 
        remediation planning, and the actual cleanup itself;
            (2) private financiers, on their own, are often not willing 
        or able to provide the funding needed to take previously used 
        property through the full redevelopment cycle;
            (3) the components of successful brownfield site cleanups 
        fall under the jurisdiction of many existing Federal programs;
            (4) the issue of brownfields has given rise to new concerns 
        about project risk and collateral value, and has complicated 
        the traditional view of creditworthiness;
            (5) the complexity of brownfield situations, which varies 
        depending on the nature and extent of contamination, the 
        intended end-use of the site, and its location, means that no 
        single approach, and no single financial assistance tool, will 
        fit the majority of brownfield situations;
            (6) to maximize available Federal resources, a number of 
        financial assistance tools need to be refined so that they 
        better link with existing financial assistance programs; and
            (7) to ensure that the Environmental Protection Agency is 
        as responsive as possible in meeting ongoing brownfield site 
        challenges, and to reflect the Agency's evolving optimum role 
        in these efforts, the Environmental Protection Agency should 
        provide training, technical assistance, and direct outreach 
        services in conjunction with State and local brownfield 
        initiatives.

SEC. 4. DEFINITIONS.

    For purposes of this Act:
            (1) Appropriate federal agent.--The term ``appropriate 
        Federal agent'' means--
                    (A) with respect to the use of the term 
                ``brownfield site'' in the Housing and Community 
                Development Act of 1974 and the Reigle Community 
                Development and Regulatory Improvement Act of 1994, the 
                Secretary of Housing and Urban Development, in 
                consultation with the Administrator of the 
                Environmental Protection Agency;
                    (B) with respect to the use of the term 
                ``brownfield site'' in the Small Business Act, the 
                Small Business Investment Act of 1958, and section 114 
                of this Act, the Administrator of the Small Business 
                Administration, in consultation with the Administrator 
                of the Environmental Protection Agency; and
                    (C) with respect to the use of the term 
                ``brownfield site'' in section 201(1) of this Act and 
                in the Public Works and Economic Development Act of 
                1965, the Secretary of Commerce, in consultation with 
                the Administrator of the Environmental Protection 
                Agency.
            (2) Brownfield site.--
                    (A) In general.--The term ``brownfield site'' means 
                real property, the expansion, redevelopment, or reuse 
                of which may be complicated by the presence or 
                potential presence of--
                            (i) a hazardous substance (as defined in 
                        section 101 of the Comprehensive Environmental 
                        Response, Compensation, and Liability Act of 
                        1980 (42 U.S.C. 9601)); or
                            (ii) any other pollutant or contaminant, as 
                        determined by the appropriate Federal agent.
                    (B) Exclusions.--Except as provided in subparagraph 
                (C), the term ``brownfield site'' does not include--
                            (i) a facility that is the subject of a 
                        planned or ongoing removal action under the 
                        Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 (42 
                        U.S.C. 9601 et seq.);
                            (ii) a facility that is listed on the 
                        National Priorities List, or is proposed for 
                        listing on that list, under that Act;
                            (iii) a facility that is the subject of a 
                        unilateral administrative order, a court order, 
                        an administrative order on consent, or a 
                        judicial consent decree that has been issued to 
                        or entered into by the parties under that Act;
                            (iv) a facility that is the subject of a 
                        unilateral administrative order, a court order, 
                        an administrative order on consent, or a 
                        judicial consent decree that has been issued to 
                        or entered into by the parties, or a facility 
                        to which a permit has been issued by the United 
                        States or an authorized State, under--
                                    (I) the Solid Waste Disposal Act 
                                (42 U.S.C. 6901 et seq.);
                                    (II) the Federal Water Pollution 
                                Control Act (33 U.S.C. 1251 et seq.);
                                    (III) the Toxic Substances Control 
                                Act (15 U.S.C. 2601 et seq.); or
                                    (IV) the Safe Drinking Water Act 
                                (42 U.S.C. 300f et seq.);
                            (v) a facility--
                                    (I) that is subject to corrective 
                                action under section 3004(u) or 3008(h) 
                                of the Solid Waste Disposal Act (42 
                                U.S.C. 6924(u), 6928(h)); and
                                    (II) to which a corrective action 
                                permit or order has been issued or 
                                modified to require the implementation 
                                of corrective measures;
                            (vi) a land disposal unit with respect to 
                        which--
                                    (I) a closure notification under 
                                subtitle C of the Solid Waste Disposal 
                                Act (42 U.S.C. 6921 et seq.) has been 
                                submitted; and
                                    (II) closure requirements have been 
                                specified in a closure plan or permit;
                            (vii) a facility that is subject to the 
                        jurisdiction, custody, or control of a 
                        department, agency, or instrumentality of the 
                        United States, except for land held in trust by 
                        the United States for an Indian tribe;
                            (viii) a portion of a facility--
                                    (I) at which there has been a 
                                release of polychlorinated biphenyls; 
                                and
                                    (II) that is subject to remediation 
                                under the Toxic Substances Control Act 
                                (15 U.S.C. 2601 et seq.); or
                            (ix) a portion of a facility, for which 
                        portion assistance for response activity has 
                        been obtained under subtitle I of the Solid 
                        Waste Disposal Act (42 U.S.C. 6991 et seq.) 
                        from the Leaking Underground Storage Tank Trust 
                        Fund established by section 9508 of the 
                        Internal Revenue Code of 1986.
                    (C) Site-by-site inclusions.--The term ``brownfield 
                site'' includes a site referred to in clause (i), (iv), 
                (v), (vi), (viii), or (ix) of subparagraph (B), if, on 
                a site-by-site basis, the appropriate Federal agent 
                determines that use of the financial assistance at the 
                site will--
                            (i) protect human health and the 
                        environment; and
                            (ii)(I) promote economic development; or
                            (II) enable the creation of, preservation 
                        of, or addition to parks, greenways, 
                        undeveloped property, other recreational 
                        property, or other property used for nonprofit 
                        purposes.
                    (D) Additional inclusions.--The term `brownfield 
                site' includes a site that meets the definition of 
                `brownfield site' under subparagraphs (A) through (C) 
                that--
                            (i) is contaminated by a controlled 
                        substance (as defined in section 102 of the 
                        Controlled Substances Act (21 U.S.C. 802));
                            (ii)(I) is contaminated by petroleum or a 
                        petroleum product excluded from the definition 
                        of `hazardous substance' under section 101 of 
                        the Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 (42 
                        U.S.C. 9601); and
                            (II) is a site determined by the 
                        appropriate Federal agent to be--
                                    (aa) of relatively low risk, as 
                                compared with other petroleum-only 
                                sites in the State in which the site is 
                                located; and
                                    (bb) a site for which there is no 
                                viable responsible party and that will 
                                be assessed, investigated, or cleaned 
                                up by a person that is not potentially 
                                liable for cleaning up the site; and
                            (III) is not subject to any order issued 
                        under section 9003(h) of the Solid Waste 
                        Disposal Act (42 U.S.C. 6991b(h)); or
                            (iii) is mine-scarred land.

 TITLE I--REDEVELOPMENT OF BROWNFIELD SITES THROUGH EXISTING COMMUNITY 
           DEVELOPMENT AND SMALL BUSINESS ASSISTANCE PROGRAMS

               Subtitle A--Community Development Programs

SEC. 101. ELIGIBILITY OF NONENTITLEMENT COMMUNITIES FOR BROWNFIELDS 
              ECONOMIC DEVELOPMENT PROGRAM.

    Section 108(q) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308(q)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(A)'' after ``grants''; and
                    (B) by inserting before the period at the end the 
                following: ``, and (B) to units of general local 
                government in nonentitlement areas for the purpose of 
                assisting environmental cleanup and economic 
                development activities related to brownfield sites'';
            (2) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``only''; and
                    (B) by inserting before the period at the end the 
                following: ``, or (B) in the case of grants pursuant to 
                paragraph (1)(B), for the purpose of environmental 
                cleanup and economic development activities related to 
                brownfield sites''; and
            (3) in the second sentence of paragraph (3), by striking 
        ``Eligible'' and inserting ``Except in the case of applications 
        for grants pursuant to paragraph (1)(B), eligible''.

SEC. 102. COLLATERAL FOR CDBG LOAN GUARANTEES FOR LOANS FUNDING 
              BROWNFIELD SITES ACTIVITIES.

    Section 108(d) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308(d)) is amended--
            (1) in paragraph (1), by striking ``To'' and inserting 
        ``Except as provided in paragraph (2), to'';--
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
    ``(2) In the case of notes or other obligations issued by a 
metropolitan city or urban county for the purposes of financing 
environmental cleanup and economic development activities related to 
brownfield sites, to assure the repayment of such notes or obligations 
and charges incurred under this section, the Secretary shall require 
the issuer--
            ``(A) to enter into a contract described in paragraph 
        (1)(A); and
            ``(B) furnish such security as may be deemed appropriate by 
        the Secretary in making such guarantees, including increments 
        in local tax receipts generated by the brownfield site 
        activities and any dedicated sources of revenue from such 
        activities.''.

SEC. 103. DEFINITIONS.

    Section 108 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308) is amended by striking subsection (o) and inserting 
the following new subsection:
    ``(o) Definitions.--For purposes of this section:
            ``(1) Brownfield site.--The term `brownfield site' has the 
        meaning given such term in section 4 of the Brownfields 
        Redevelopment Incentives Act.
            ``(2) Eligible public entity.--The term `eligible public 
        entity' means any unit of general local government, including 
        units of general local government in nonentitlement areas.''.

SEC. 104. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS ASSISTANCE FOR 
              BROWNFIELD SITES ACTIVITIES.

    Section 121(a) of the Reigle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4718(a)) is amended by inserting at 
the end the following new paragraph:
            ``(6) Brownfield cleanup and redevelopment.--In addition to 
        the amounts authorized to be appropriated under paragraph (1) 
        or otherwise to carry out this subtitle, there are authorized 
        to be appropriated to the Fund $25,000,000, except that such 
        amounts shall be available only for providing assistance under 
        section 108 to a community development financial institution 
        for carrying out a lending strategy that has been developed by 
        the institution and has as its purpose assisting the 
        environmental cleanup and economic development of investment 
        areas that consist of one or more brownfield sites (as such 
        term is defined in section 4 of the Brownfields Redevelopment 
        Incentives Act).''.

                  Subtitle B--Small Business Programs

SEC. 111. SET-ASIDE OF GENERAL BUSINESS LOANS FOR BROWNFIELD 
              ACTIVITIES.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following new paragraph:
            ``(31) Set-aside for brownfield activities.--
                    ``(A) In general.--In each fiscal year, the 
                Administrator of the Small Business Administration 
                shall set aside the lesser of $100,000,000 or 2 percent 
                of the amount made available for the fiscal year to 
                carry out this subsection for loans described in 
                subparagraph (B).
                    ``(B) Use of funds.--The Administrator may use 
                funds set aside under subparagraph (A) to make loans 
                under this subsection to small-business concerns to 
                assist such concerns in carrying out site assessments, 
                remediation planning, and cleanup activities with 
                respect to brownfield sites.
                    ``(C) Participation in certain activities 
                required.--The Administrator may not make a loan under 
this paragraph to a small-business concern unless the concern 
participates in--
                            ``(i) a voluntary program for the cleanup 
                        of brownfield sites carried out by the State in 
                        which the brownfield site for which the loan is 
                        made is located; or
                            ``(ii) other activities, approved by such 
                        State and the Environmental Protection Agency, 
                        for the cleanup of brownfield sites.
                    ``(D) Definitions.--In this paragraph, the 
                following definitions apply:
                            ``(i) Brownfield site.--The term 
                        `brownfield site' has the meaning given that 
                        term in section 4 of the Brownfields 
                        Redevelopment Incentives Act.
                            ``(ii) Site assessment.--The term `site 
                        assessment', with respect to a brownfield site, 
                        means any investigation of the site determined 
                        appropriate by the President and carried out 
                        under section 104(b) of the Comprehensive 
                        Environmental Response, Compensation, and 
                        Liability Act of 1980 (42 U.S.C. 9604(b)).''.

SEC. 112. SMALL BUSINESS INVESTMENT COMPANIES DEVOTED TO BROWNFIELD 
              CLEANUP ACTIVITIES.

    (a) In General.--Part A of title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at 
the end the following new section:

``SEC. 321. SMALL BUSINESS INVESTMENT COMPANIES DEVOTED TO BROWNFIELD 
              CLEANUP ACTIVITIES.

    ``(a) In General.--In accordance with this part, the Administrator 
shall promote the formation of not less than 1 small business 
investment company devoted to making loans to small business concerns 
for--
            ``(1) brownfield site cleanup activities, including those 
        that use innovative or experimental cleanup technologies; or
            ``(2) projects that help existing companies clean up their 
        facilities and adopt new, clean technologies.
    ``(b) Waiver of Fees.--With respect to a small business investment 
company described in subsection (a), the Administrator may waive the 
fees imposed under section 301(e).
    ``(c) Set-Aside.--In each fiscal year, the Administrator shall set 
aside the lesser of $2,000,000 or 10 percent of the amount made 
available for the fiscal year to carry out this part for use in 
providing leverage to small business investment companies described in 
subsection (a).
    ``(d) Participation in Certain Activities Required.--As a condition 
of the receipt of assistance made available under this section, the 
Administrator shall require each small business investment company 
receiving such assistance to require that each small business concern 
to which the company makes a loan participate in--
            ``(1) a voluntary program for the cleanup of brownfield 
        sites carried out by the State in which the brownfield site for 
        which the loan is made is located; or
            ``(2) other activities, approved by such State and the 
        Environmental Protection Agency, for the cleanup of brownfield 
        sites.''.
    (b) Conforming Amendment.--Section 103 of the Small Business 
Investment Act of 1958 (15 U.S.C. 662) is amended--
            (1) in paragraph (16), by striking ``and'' at the end;
            (2) in paragraph (17), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(18) the term `brownfield site' has the meaning given 
        that term in section 4 of the Brownfields Redevelopment 
        Incentives Act.''.

SEC. 113. SMALL BUSINESS DEVELOPMENT COMPANY SET-ASIDE FOR BROWNFIELD 
              PREVENTION AND REDEVELOPMENT PROJECTS.

    Title 5 of the Small Business Investment Act of 1958 (15 U.S.C. 695 
et seq.) is amended by adding at the end the following new section:

``SEC. 511. ASSISTANCE FOR BROWNFIELD PREVENTION AND REDEVELOPMENT 
              PROJECTS.

    ``(a) Purpose.--The purpose of this section is to make capital 
available to small, polluting industries, or to the prospective 
purchasers of such industries, that have limited or no access to 
capital from conventional sources for assessing and cleaning up their 
sites and facilities or acquiring new, clean technologies and 
production equipment.
    ``(b) Set-Aside.--In each fiscal year, the Administrator shall set 
aside the lesser of $50,000,000 or 10 percent of the amount made 
available for the fiscal year to carry out this title for assistance to 
local development companies to enable such companies to finance 
projects that--
            ``(1) assist existing small business concerns in carrying 
        out site assessments and cleanup activities at brownfield 
        sites; or
            ``(2) assist prospective owners or operators of small 
        business concerns in carrying out site assessments and cleanup 
        activities at brownfield sites necessary to facilitate a 
        transition in ownership or to encourage industrial succession.
    ``(c) Site Assessment Defined.--In this section, the term `site 
assessment', with respect to a brownfield site, means any investigation 
of the site determined appropriate by the President and undertaken 
pursuant to section 104(b) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9604(b)).
    ``(d) Participation in Certain Activities Required.--As a condition 
of the receipt of assistance made available under this section, the 
Administrator shall require each local development company receiving 
such assistance to require that each small business concern to which 
the company makes a loan participate in--
            ``(1) a voluntary program for the cleanup of brownfield 
        sites carried out by the State in which the brownfield site for 
        which the loan is made is located; or
            ``(2) other activities, approved by such State and the 
        Environmental Protection Agency, for the cleanup of brownfield 
        sites.''.

SEC. 114. SENSE OF CONGRESS REGARDING RISK.

    It is the sense of Congress that--
            (1) loans made to support activities related to the cleanup 
        and redevelopment of brownfield sites may involve a greater 
        degree of risk than loans made for other purposes;
            (2) the public good that can be achieved through the 
        cleanup and redevelopment of brownfield sites justifies the 
        making of such loans despite the potential for increased risk; 
        and
            (3) in carrying out this subtitle, the Administrator of the 
        Small Business Administration should not fail to make 
        assistance available for the cleanup and redevelopment of 
        brownfield sites merely because of such potential for increased 
        risk.

     TITLE II--REDEVELOPMENT OF BROWNFIELD SITES THROUGH ECONOMIC 
                  DEVELOPMENT ADMINISTRATION PROGRAMS

SEC. 201. PURPOSES.

    Consistent with section 2 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3121), the purposes of this title 
are--
            (1) to provide targeted assistance, including planning 
        assistance, for projects that promote the redevelopment, 
        restoration, and economic recovery of brownfield sites; and
            (2) through such assistance, to further the goals of 
        restoring the employment and tax bases of, and bringing new 
        income and private investment to, distressed communities that 
        have not participated fully in the economic growth of the 
        United States because of a lack of an adequate private sector 
        tax base to support essential public services and facilities.

SEC. 202. DEFINITIONS.

    Section 3 of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3122) is amended--
            (1) by redesignating paragraphs (1) through (10) as 
        paragraphs (2) through (11), respectively;
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Brownfield site.--The term `brownfield site' has the 
        meaning given such term in section 4 of the Brownfields 
        Redevelopment Incentives Act.''; and
            (3) by adding at the end the following:
            ``(12) Unused land.--The term `unused land' means any 
        publicly-owned or privately-owned unused, underused, or 
        abandoned land that is not contributing to the quality of life 
        or economic well-being of the community in which the land is 
        located.''.

SEC. 203. COORDINATION.

    Section 103 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3z132) is amended--
            (1) by inserting ``(a) Comprehensive Economic Development 
        Strategies.--'' before ``The Secretary''; and
            (2) by adding at the end the following:
    ``(b) Brownfield Site Redevelopment.--The Secretary shall 
coordinate activities relating to the redevelopment of brownfield sites 
under this Act with other Federal agencies, States, local governments, 
consortia of local governments, Indian tribes, nonprofit organizations, 
and public-private partnerships.''.

SEC. 204. GRANTS FOR BROWNFIELD SITE REDEVELOPMENT.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended--
            (1) by redesignating sections 210 through 213 as sections 
        211 through 214, respectively; and
            (2) by inserting after section 209 the following:

``SEC. 210. GRANTS FOR BROWNFIELD SITE REDEVELOPMENT.

    ``(a) In General.--On the application of an eligible recipient, the 
Secretary may make grants for projects to alleviate or prevent 
conditions of excessive unemployment, underemployment, blight, and 
infrastructure deterioration associated with brownfield sites, 
including projects consisting of--
            ``(1) development of public facilities;
            ``(2) development of public services;
            ``(3) business development (including funding of a 
        revolving loan fund);
            ``(4) planning;
            ``(5) technical assistance; and
            ``(6) training.
    ``(b) Criteria for Grants.--The Secretary may provide a grant for a 
project under this section only if--
            ``(1) the Secretary determines that the project will assist 
        the area where the project is or will be located to meet, 
        directly or indirectly, a special need arising from--
                    ``(A) a high level of unemployment or 
                underemployment, or a high proportion of low-income 
                households;
                    ``(B) the existence of blight and infrastructure 
                deterioration;
                    ``(C) dislocations resulting from commercial or 
                industrial restructuring;
                    ``(D) outmigration and population loss, as 
                indicated by--
                            ``(i)(I) depletion of human capital 
                        (including young, skilled, or educated 
                        populations);
                            ``(II) depletion of financial capital 
                        (including firms and investment); or
                            ``(III) a shrinking tax base; and
                            ``(ii) resulting--
                                    ``(I) fiscal pressure;
                                    ``(II) restricted access to 
                                markets; and
                                    ``(III) constrained local 
                                development potential; or
                    ``(E) the closure or realignment of--
                            ``(i) a military or Department of Energy 
                        installation; or
                            ``(ii) any other Federal facility; and
            ``(2) except in the case of a project consisting of 
        planning or technical assistance--
                    ``(A) the Secretary has approved a comprehensive 
                economic development strategy for the area where the 
                project is or will be located; and
                    ``(B) the project is consistent with the 
                comprehensive economic development strategy.
    ``(c) Particular Community Assistance.--Assistance under this 
section may include assistance provided for activities identified by a 
community, the economy of which is injured by the existence of 1 or 
more brownfield sites, to assist the community in--
            ``(1) revitalizing affected areas by--
                    ``(A) diversifying the economy of the community; or
                    ``(B) carrying out industrial or commercial 
                (including mixed use) redevelopment projects on 
                brownfield sites or sites adjacent to brownfield sites;
            ``(2) carrying out development that conserves environmental 
        and agricultural resources by--
                    ``(A) reusing existing facilities and 
                infrastructure;
                    ``(B) reclaiming unused land and abandoned 
                buildings; or
                    ``(C) creating publicly owned parks, playgrounds, 
                recreational facilities, or cultural centers that 
                contribute to the economic revitalization of a 
                community; or
            ``(3) carrying out a collaborative economic development 
        planning process, developed with broad-based and diverse 
        community participation, that addresses the economic 
        repercussions and opportunities posed by the existence of 
        brownfield sites in an area.
    ``(d) Direct Expenditure or Redistribution by Eligible Recipient.--
            ``(1) In general.--Subject to paragraph (2), an eligible 
        recipient of a grant under this section may directly expend the 
        grant funds or may redistribute the funds to public and private 
        entities in the form of a grant, loan, loan guarantee, payment 
        to reduce interest on a loan guarantee, or other appropriate 
        assistance.
            ``(2) Limitation.--Under paragraph (1), an eligible 
        recipient may not provide any grant to a private for-profit 
        entity.''.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Public Works and Economic Development Act of 1965 (42 U.S.C. prec. 
3121) is amended by striking the items relating to sections 210 through 
213 and inserting the following:

``Sec. 210. Grants for brownfield site redevelopment.
``Sec. 211. Changed project circumstances.
``Sec. 212. Use of funds in projects constructed under projected cost.
``Sec. 213. Reports by recipients.
``Sec. 214. Prohibition on use of funds for attorney's and consultant's 
                            fees.''.

SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Title VII of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3231 et seq.) is amended by adding 
at the end the following:

``SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR BROWNFIELD SITE 
              REDEVELOPMENT.

    ``(a) In General.--In addition to amounts made available under 
section 701, there are authorized to be appropriated to carry out 
section 210 $60,000,000 for each of fiscal years 2002 through 2007. 
Such sums shall remain available until expended.
    ``(b) Federal Share.--Notwithstanding section 204, subject to 
section 205, the Federal share of the cost of activities funded with 
amounts made available under subsection (a) shall be not more than 75 
percent.''.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Public Works and Economic Development Act of 1965 (42 U.S.C. prec. 
3121) is amended by adding at the end of the items relating to title 
VII the following:

``Sec. 704. Authorization of appropriations for brownfield site 
                            redevelopment.''.

           TITLE III--TAX INCENTIVES RELATING TO BROWNFIELDS

SEC. 301. ENVIRONMENTAL REMEDIATION TAX CREDIT.

    (a) General Rule.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits allowable) is 
amended by adding at the end thereof the following new subpart:

             ``Subpart H--Environmental Remediation Credit

                              ``Sec. 54. Amount of environmental 
                                        remediation credit.
                              ``Sec. 54A. Definitions and special 
                                        rules.

``SEC. 54. AMOUNT OF ENVIRONMENTAL REMEDIATION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the environmental 
remediation credit determined under this section is 50 percent of the 
costs--
            ``(1) which are paid or incurred by the taxpayer for 
        environmental remediation with respect to any qualified 
        contaminated site which is owned by the taxpayer, and
            ``(2) which are incurred by the taxpayer pursuant to an 
        environmental remediation plan for such site which was approved 
        by the Administrator of the Environmental Protection Agency or 
        by the head of any State or local government agency designated 
        by the Administrator to carry out the Administrator's functions 
        under this subpart with respect to such site.
    ``(b) Limitation.--The amount of the credit determined under 
subsection (a) shall not exceed $50,000.
    ``(c) Remediation Plan Must Be Completed.--
            ``(1) In general.--Except as otherwise provided in 
        paragraph (2)--
                    ``(A) no environmental remediation credit shall be 
                determined under this section with respect to any 
                qualified contaminated site unless the Administrator of 
                the Environmental Protection Agency (or such 
                Administrator's designee under subsection (a)(2)) 
                certifies the environmental remediation plan for such 
                site has been completed, and
                    ``(B) if such Administrator (or designee) certifies 
                that such plan has been completed, such credit shall be 
taken into account under subsection (a) ratably over the 5 taxable year 
period beginning with the taxable year in which such plan was 
completed.
            ``(2) Special rule where extraordinary cost increases.--
        If--
                    ``(A) the taxpayer determines that due to 
                unforeseen circumstances the cost of completing the 
                remediation plan for any qualified contaminated site 
                exceeds 200 percent of the estimated costs of 
                completing such plan, and
                    ``(B) the State or local official administering the 
                remediation credit program agrees with such 
                determination,
        the taxpayer may cease the implementation of such plan and 
        shall be entitled to an environmental remediation credit with 
        respect to costs incurred before such cessation. Such credit 
        shall be taken into account under subsection (a) ratably over 
        the 5-taxable-year period beginning with the taxable year in 
        which such cessation occurs.
    ``(d) Certain Parties Not Eligible.--
            ``(1) In general.--A taxpayer shall not be eligible for any 
        credit determined under this section with respect to any 
        qualified contaminated site if--
                    ``(A) at any time on or before the date of the 
                enactment of this subpart, such taxpayer was the owner 
                or operator of any business on such site,
                    ``(B) at any time before, on, or after such date of 
                enactment such taxpayer--
                            ``(i) had (by contract, agreement, or 
                        otherwise) arranged for the disposal or 
                        treatment of any hazardous materials at such 
                        site or arranged with a transporter for 
                        transport for disposal or treatment of any 
                        hazardous materials at such site, or
                            ``(ii) had accepted any hazardous materials 
                        for transport to such site, or
                    ``(C) the taxpayer is related to any taxpayer 
                referred to in subparagraph (A) or (B).
            ``(2) Exceptions.--
                    ``(A) Acquisition of business or site by 
                foreclosure, etc.--Paragraph (1) shall not apply to a 
                taxpayer who became described therein by reason of the 
                acquisition of the business or site through foreclosure 
                (or the equivalent) of a security interest held by the 
                taxpayer or a related party if the taxpayer undertakes 
                to sell or otherwise dispose of such business or site 
                in a reasonably expeditious manner on commercially 
                reasonable terms.
                    ``(B) Use of site remediated by taxpayer.--
                Subparagraph (B) of paragraph (1) shall not apply to a 
                taxpayer with respect to any site if--
                            ``(i) the only actions described in such 
                        subparagraph of the taxpayer (or a related 
                        person) with respect to such site occur after 
                        such taxpayer (or person) carry out an 
                        environmental remediation plan for such site 
                        (and the completion of such plan is certified 
                        under subsection (c)(1)), and
                            ``(ii) such actions are part of a bona fide 
                        manufacturing process (or other industrial 
                        activity at such site) of such taxpayer (or 
                        person) which complies with all Federal 
                        environmental laws and regulations.
    ``(e) Qualified Contaminated Site.--For purposes of this subpart, 
the term `qualified contaminated site' means any contaminated site if--
            ``(1) the condition of the contaminated site is such that 
        without participation in the environmental remediation credit 
        program redevelopment is unlikely,
            ``(2) there is a strong likelihood of redevelopment of the 
        site for industrial or commercial use that will result in 
        creation of jobs and expansion of the tax base, and
            ``(3) environmental remediation and redevelopment are 
        likely to be completed within a reasonable period of time.

``SEC. 54A. DEFINITIONS AND SPECIAL RULES.

    ``(a) Contaminated Site.--For purposes of this subpart--
            ``(1) In general.--The term `contaminated site' means any 
        site if at least 1 of the following environmental conditions is 
        present on such site:
                    ``(A) A release or threatened release of any 
                hazardous, toxic, or dangerous substance.
                    ``(B) Any storage tanks which contain any 
                hazardous, toxic, or dangerous substance.
                    ``(C) Any illegal disposal of solid waste.
            ``(2) Hazardous, toxic, or dangerous substance.--Any 
        substance, waste, or material shall be treated as a hazardous, 
        toxic, or dangerous substance if it is so treated under--
                    ``(A) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.) as in effect on the date of the enactment of 
                this section, or
                    ``(B) the Solid Waste Disposal Act (42 U.S.C. 6901 
                et seq.) as so in effect.
        The following materials shall in any event be treated as such a 
        substance: petroleum or crude oil or any derivative thereof, 
        friable asbestos or any asbestos containing material, 
        polychlorinated biphenyls, and lead paint.
    ``(b) Environmental Remediation.--For purposes of this subpart, the 
term `environmental remediation' means--
            ``(1) removal or remediation activity in accordance with 
        the plan approved under section 54(a)(2),
            ``(2) restoration of natural, historic or cultural 
        resources at the site, or the mitigation of unavoidable losses 
        of such resources incurred in connection with the remediation 
        or response activity,
            ``(3) health assessments or health effects studies related 
        to the site,
            ``(4) remediation of off-site contamination caused by 
        activity on the site (other than remediation activities of a 
        type not permitted for the site), and
            ``(5) any other costs specified in the plan approved under 
        section 54(a)(2), including demolition of existing contaminated 
        structures, site security, permit fees necessary for 
        remediation, and environmental audits.
    ``(c) Related Person.--For purposes of this subpart, persons shall 
be treated as related to each other if such persons are treated as a 
single employer under the regulations prescribed under section 52(b) or 
such persons bear a relationship to each other specified in section 
267(b) or 707(b).
    ``(d) Coordination With Expensing of Environmental Remediation 
Costs.--The costs taken into account under section 54(a) do not include 
any costs for which an election is in effect under section 198.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (12), by striking the period at the end of paragraph (13) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(14) the environmental remediation credit under section 
        54(a).''.
    (c) Limitation on Carryback.--Subsection (d) of section 39 of such 
Code is amended by adding at the end thereof the following new 
paragraph:
            ``(10)  No carryback of environmental remediation credit 
        before effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to the credit 
        under section 54 may be carried back to a taxable year 
        beginning on or before the date of the enactment of section 
        54.''.
    (d) Deduction for Unused Credit.--Subsection (c) of section 196 of 
such Code is amended by striking ``and'' at the end of paragraph (8), 
by striking the period at the end of paragraph (9) and inserting ``, 
and'', and by adding at the end thereof the following new paragraph:
            ``(10) the environmental remediation credit determined 
        under section 54.''.
    (e) Clerical Amendment.--The table of subparts for part IV of 
subchapter A of chapter 1 of such Code is amended by adding at the end 
thereof the following new item:

                              ``Subpart H. Environmental remediation 
                                        credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 302. BROWNFIELDS IRA.

    (a) In General.--Subpart C of part II of subchapter E of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 468B the following new section:

``SEC. 468C. SPECIAL RULES FOR HAZARDOUS WASTE REMEDIATION RESERVES.

    ``(a) In General.--There shall be allowed as a deduction for any 
taxable year the amount of payments made by the taxpayer to a Hazardous 
Waste Remediation Reserve (hereinafter referred to as the `Reserve') 
during such taxable year.
    ``(b) Limitation on Amounts Paid Into Reserve.--The amount which a 
taxpayer may pay into the Reserve for any taxable year shall not exceed 
the lesser of--
            ``(1) $1,000,000, or
            ``(2) the excess (if any) of $1,000,000 over the amount 
        paid into the Reserve for all prior taxable years.
    ``(c) Income and Deductions of the Taxpayer.--
            ``(1) Inclusion of amounts distributed.--There shall be 
        includible in the gross income of the taxpayer for any taxable 
        year--
                    ``(A) any amount distributed from the Reserve 
                during such taxable year, and
                    ``(B) any deemed distribution under subsection (e).
            ``(2) Deduction when economic performance occurs.--In 
        addition to any deduction under subsection (a), there shall be 
        allowable as a deduction for any taxable year the amount of the 
        qualified hazardous waste costs with respect to which economic 
        performance (within the meaning of section 461(h)(2)) occurs 
        during such taxable year.
    ``(d) Hazardous Waste Remediation Reserve.--
            ``(1) In general.--For purposes of this section, the term 
        `Hazardous Waste Remediation Reserve' means a reserve 
        established by the taxpayer for purposes of this section.
            ``(2) Reserve exempt from taxation.--Any Hazardous Waste 
        Remediation Reserve is exempt from taxation under this subtitle 
        unless such Reserve has ceased to be a Hazardous Waste 
        Remediation Reserve by reason of subsection (e). 
        Notwithstanding the preceding sentence, any such Reserve shall 
        be subject to the taxes imposed by section 511 (relating to 
        imposition of tax on unrelated business income of charitable, 
        etc. organizations).
            ``(3) Contributions to reserve.--The Reserve shall not 
        accept any payments (or other amounts) other than payments with 
        respect to which a deduction is allowable under subsection (a).
            ``(4) Use of reserve.--The Reserve shall be used 
        exclusively to pay the qualified hazardous waste costs of the 
        taxpayer.
            ``(5) Prohibitions against self-dealing.--Under regulations 
        prescribed by the Secretary, for purposes of section 4951 (and 
        so much of this title as relates to such section), the Reserve 
        shall be treated in the same manner as a trust described in 
        section 501(c)(21).
    ``(e) Deemed Distributions.--
            ``(1) Disqualification of reserve for self-dealing.--In any 
        case in which a Reserve violates any provision of this section 
        or section 4951, the Secretary may disqualify such Reserve from 
        the application of this section. In any case to which this 
        paragraph applies, the Reserve shall be treated as having 
        distributed all of its funds on the date such determination 
        takes effect.
            ``(2) Failure to spend funds.--A Reserve shall be treated 
        as having distributed all of its funds--
                    ``(A) on the date which is 10 years after the date 
                such Reserve was established unless, as of such date--
                            ``(i) it has been determined that some 
                        property of the taxpayer is contaminated with 
                        hazardous waste, and
                            ``(ii) a remediation plan has been prepared 
                        for such site, and
                    ``(B) except as otherwise provided by the 
                Secretary, on the date which is 10 years after the date 
                such Reserve was established unless, as of such date, 
                it is reasonably anticipated that the remaining funds 
                in the Reserve will be distributed before the date 
                which is 15 years after the date such Reserve was 
                established.
    ``(f) Penalty for Distributions Not Used for Qualified Hazardous 
Waste Costs.--The tax imposed by this chapter for any taxable year in 
which any amount distributed from a Reserve is not used exclusively to 
pay qualified hazardous waste costs shall be increased by 10 percent of 
such amount.
    ``(g) Qualified Hazardous Waste Costs.--For purposes of this 
section, the term `qualified hazardous waste costs' means--
            ``(1) the costs paid or incurred by the taxpayer in 
        connection with the assessment of--
                    ``(A) the extent of the environmental contamination 
                of a site which is owned by the taxpayer, and
                    ``(B) the expected cost of environmental 
                remediation required for such site, and
            ``(2) the costs paid or incurred by the taxpayer to 
        remediate such contamination.
    ``(h) Controlled Groups.--All persons treated as a single employer 
under subsection (a) or (b) of section 52 shall be treated as one 
person for purposes of subsection (b), and the dollar amount contained 
in such subsection shall be allocated among such persons in such manner 
as the Secretary shall prescribe.
    ``(i) Time When Payments Deemed Made.--For purposes of this 
section, a taxpayer shall be deemed to have made a payment to the 
Reserve on the last day of a taxable year if such payment is made on 
account of such taxable year and is made within 2\1/2\ months after the 
close of such taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart C of 
part II of subchapter E of chapter 1 of such Code is amended by 
inserting after the item relating to section 468B the following new 
item:

                              ``Sec. 468C. Special rules for hazardous 
                                        waste remediation reserves.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 303. EXCLUSION OF INTEREST RECEIVED ON INDEBTEDNESS INCURRED FOR 
              ENVIRONMENTAL REMEDIATION.

    (a) General Rule.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
139A and by inserting after section 138 the following new section:

``SEC. 139. EXCLUSION OF INTEREST RECEIVED ON INDEBTEDNESS INCURRED FOR 
              ENVIRONMENTAL REMEDIATION.

    ``(a) General Rule.--In the case of a financial institution, gross 
income does not include amounts received as interest on indebtedness 
incurred for environmental remediation with respect to any qualified 
contaminated site.
    ``(b) Limitation.--The amount excluded under subsection (a) for a 
taxable year shall not exceed $100,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Environmental remediation and qualified contaminated 
        site.--The term `environmental remediation' has the meaning 
        given to such term in section 54A(b) and the term `qualified 
        contaminated site' has the meaning given such term in section 
        54(d).
            ``(2) Financial institution.--The term `financial 
        institution' shall have the meaning given to such term by 
        section 265(b)(5).''.
    (b) Clerical Amendment.--The table of sections for Part III of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 139. Exclusion of interest 
                                        received on indebtedness 
                                        incurred for environmental 
                                        remediation.
                              ``Sec. 139A. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 304. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) Deduction Made Permanent.--Section 198 of the Internal Revenue 
Code of 1986 (relating to expensing of environmental remediation costs) 
is amended by striking subsection (h).
    (b) Site Subject to Long-Term Lease.--Paragraph (1) of section 
198(c) of such Code (defining qualified contaminated site) is amended 
by adding at the end the following new subparagraph:
                    ``(D) Long-term lease.--An area shall not fail to 
                be described in subparagraph (A)(i) solely because such 
                area is subject to a lease the term of which is not 
                less than 30 years and the lessee of which is the 
                taxpayer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 305. CREDIT FOR ENVIRONMENTAL REMEDIATION TECHNOLOGY RESEARCH.

    (a) In General.--Subsection (a) of section 41 of the Internal 
Revenue Code of 1986 (relating to general rule for credit for 
increasing research activities) is amended by striking ``and'' at the 
end of paragraph (1), by striking the period at the end of paragraph 
(2) and inserting ``, and'', and by inserting after paragraph (2) the 
following new paragraph:
            ``(3) 20 percent of the environmental research remediation 
        technology expenses.''.
    (b) Environmental Research Remediation Technology Expenses.--
Section 41 of such Code is amended by redesignating subsections (f), 
(g), and (h) as subsections (g), (h), and (i), respectively, and by 
inserting after subsection (e) the following new subsection:
    ``(f) Environmental Research Remediation Technology Expenses.--For 
purposes of subsection (a)(3)--
            ``(1) The term `environmental research remediation 
        technology expenses' means amounts paid or incurred--
                    ``(A) for research described in paragraph (2) with 
                respect to which expenditures may be treated as an 
                expense under section 174, or
                    ``(B) for equipment which is used in research 
                described in paragraph (2) and which is chargeable to 
                property of a character which is subject to the 
                allowance for depreciation under section 167 (relating 
                to allowance for depreciation).
            ``(2) Research.--For purposes of paragraph (1), research is 
        described in this paragraph if such research addresses the 
        reduction of any hazardous, toxic, or dangerous substance on a 
        contaminated site.
            ``(3) Definitions.--For purposes of this subsection, the 
        terms `hazardous, toxic, or dangerous substance' and 
        `contaminated site' shall have the meaning given to such terms 
        by section 54A(a).
            ``(4) Double benefit.--Amounts taken into account under 
        this subsection shall not be taken into account under any other 
        provision of this section.''.
    (c) Conforming Amendments.--
            (1) Paragraphs (2) and (4)(B) of section 41(b) of such Code 
        are each amended by striking ``subsection (f)(1)'' and 
        inserting ``subsection (g)(1)''.
            (2) Section 41(g)(1)(B) of such Code is amended by striking 
        ``and basic research payments'' and inserting ``, basic 
        research payments, and environmental research remediation 
        technology expenses''.
            (3) Section 45C(d)(3) of such Code is amended by striking 
        ``section 41(f)'' and inserting ``section 41(g)''.
            (4) Paragraphs (1)(C) and (9)(C)(i) of section 197(f) of 
        such Code are each amended by striking ``section 41(f)(1)'' and 
        inserting ``section 41(g)(1)''.
            (5) Section 280C(b)(3) of such Code is amended--
                    (A) by striking ``section 41(f)(5)'' and inserting 
                ``section 41(g)(5)'',
                    (B) by striking ``section 41(f)(1)(B)'' and 
                inserting ``section 41(g)(1)(B)'', and
                    (C) by striking ``section 41(f)(1)'' and inserting 
                ``section 41(g)(1)''.
            (6) Section 936 of such Code is amended--
                    (A) in subsection (h)(5)(C)(i)(IV)(c) by striking 
                ``section 41(f)'' and inserting ``section 41(g)'', and
                    (B) in subsection (j)(5)(D) by striking ``section 
                41(f)(3)'' and inserting ``section 41(g)(3)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
                                 <all>
```