State voluntary cleanup programs by carrying out the fol-
lowing actions:
(1) The Administrator shall encourage the
State and tribal governments to formulate cleanup,
redevelopment, and reuse programs that—
(A) require leadership by local municipali-
ties;
(B) provide opportunities for meaningful
community involvement;
(C) have adequate resources to ensure that
cleanup, redevelopment, and reuse actions are
conducted in an appropriate and timely man-
ner, and that technical assistance, where appro-
priate, is available from State environmental
and public health agencies responsible for the
preliminary assessment, site inspection, and
public health assessment;
(D) provide mechanisms for written ap-
proval of response action plans and a certifi-
cation or similar documentation indicating that
the response actions are complete;
(E) provide adequate oversight to ensure
that response action is protective of human
health and the environment, consistent with ap-
plicable Federal and State law, and are con-
ducted in accordance with an appropriate re-
sponse action plan; and
(F) show the capability, through enforce-
ment or other authorities, of ensuring comple-
tion of response actions if the parties are con-
ducting the response action.
(2) The Administrator shall encourage State
programs to establish an effective mechanism for as-
suring community participation, especially of resi-
dents and business owners and local health authori-
ties near brownfields properties/sites, in broad deci-
sions regarding brownfields properties, cleanup, re-
development, and reuse.
(3) The Administrator shall provide funds to
States and tribes with cleanup programs based on
State needs and the availability of funds to help pay
for site inventory, primary assessment, property/site
inspection, and public health assessment by local
municipalities and nongovernmental agencies.
(4) The Administrator shall provide grant funds
to States and tribes for local municipalities, other
local government entities, or nongovernmental orga-
nizations to allow them to establish revolving loan
funds.
(5) The Administrator shall provide technical
assistance to States and tribes, local municipalities,
other local governmental entities, and nongovern-
mental organizations in designing, implementing,
and evaluating cleanup, redevelopment, and reuse
programs, especially States receiving grants under
paragraphs (3) and (4). The Agency for Toxic Sub-
stances and Disease Registry shall provide technical
assistance for public health assessments to States
and tribes, local municipalities, other governmental
entities, and nongovernmental organizations engaged
in designing and implementing State voluntary
cleanup programs, especially States receiving grant
funds under paragraphs (3) and (4).
(b) PURPOSE.—The purpose of the programs author-
ized by this section is to facilitate and sustain the assess-
ment, cleanup, redevelopment, and reuse of brownfields
properties.
(c) ALLOCATION
OF FUNDS.—The Administrator
shall allocate funds made available pursuant to this title
among the States. In allocating the funds, the Adminis-
trator shall take into account—
(1) local private/public partnership targeting
cleanup, redevelopment, and reuse of brownfields
properties;
(2) evidence of capacity to complete primary as-
sessment property/site inspections and public health
assessment; and
(3) evidence of regional cooperation among
neighboring communities to solve these problems
and to improve coordination in the development and
implementation of future land use and development
plans.
(d) SCOPE OF FUNDING PROGRAMS.—
(1) PROPERTY/SITE
INVENTORY
GRANTS
TO
STATES.—
(A) IN
GENERAL.—Competitive grants
shall be made to States and tribes which would
provide funds to local municipalities, other gov-
ernmental entities, and nongovernmental orga-
nizations based on paragraph (1), (2), or (3) of
subsection (c).
(B) GRANT APPLICATION.—In an applica-
tion for a grant under paragraph (1), a State
shall submit each of the following:
(i) A summary description of its
cleanup, redevelopment, and reuse.
(ii) A detailed description of the
brownfields property history and intended
use.
(iii) The nature and extent of the
local capacity and description of the tech-
nical assistance available to local munici-
palities, other governmental entities, and
nongovernmental organizations.
(C) STATE AND TRIBE GRANTING PROCE-
DURE.—Site Inventory Grants to local munici-
palities, other governmental entities, and non-
governmental organizations will be selected
competitively based upon the following criteria:
(i) Proximity of properties/sites to dis-
tressed communities.
(ii) Cost-effectiveness and timeliness
of cleanup, redevelopment, and reuse plan.
(iii) Size of State match, if greater
than 50 percent.
(2) PROPERTY/SITE CLEANUP REVOLVING LOAN
FUND GRANTS TO STATES.—
(A) IN GENERAL.—The size and terms of
grants shall be flexible and subject to negotia-
tions within broad statutory and regulatory
guidelines. States loans to local municipalities
shall be matched dollar for dollar by local juris-
dictions and private contributors.
(B) LOAN APPLICATION.—In an applica-
tion for a grant under paragraph (1), a State
shall submit each of the following:
(i) A summary description of its
Brownfields Redevelopment Plan.
(ii) A detailed description of its site
cleanup program component, including the
nature and extent of technical assistance
being provided to municipalities on prop-
erty/site cleanup.
(iii) A detailed description of the tech-
nical assistance for development of the
public health assessment plan.
(C) LOCAL
MATCH.—The municipality
shall match the State loan amount on a dollar
for dollar basis, or greater.
(D) LOAN
AMOUNTS.—The loan amount
awarded to a municipality shall not exceed the
maximum amount of $500,000.
TITLE II—TAX INCENTIVE FOR
THE ASSESSMENT, CLEANUP,
AND 
BROWNFIELDS 
PROP-
ERTY/SITE ECONOMIC REDE-
VELOPMENT
SEC. 201. FINDINGS.
The Congress finds that—
(1) gaps in total project costs between the rede-
velopment of brownfields properties and the develop-
ment of greenfield properties, caused mainly by the
need for environmental assessment and cleanup of
brownfields properties before development, are pri-
mary deterrents to property/site reclamation and
reuse; and
(2) there is a need for a Federal program to
provide an incentive spurring private reinvestment in
the reclamation and reuse of brownfields.
SEC. 202. DEFINITION.
As used in this title the term ‘‘total project costs’’
is defined as consisting of all costs paid by the owner or
developer that are related to property/site assessment,
cleanup, and project development.
SEC. 203. FEDERAL TAX INCENTIVE.
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency shall work with the Comp-
troller of the Currency to revise the Community Reinvest-
ment Act (CRA) Credit to include giving credit to banks
who provide loans for the assessment, cleanup or redevel-
opment of brownfields properties/sites.
(b) PURPOSE.—The tax incentive allows the use of
the tax code to encourage property/site reuse by permit-
ting certain remediation costs to be deductible, if incurred
with respect to a qualified site, up to the amount of deduc-
tions taken with respect to the property; and environ-
mental cleanup expenses would not be subject to deduction
recapture as ordinary income, but such expenditure shall
be treated as a deduction for depreciation.
(c) ALLOCATION OF FEDERAL TAX INCENTIVES.—
The Administrator of the Environmental Protection Agen-
cy shall allocate tax incentives made available to this title
among the States with voluntary cleanup programs. In al-
locating the tax incentives, the Administrator shall take
into account:
(1) The relative number of non-National Prior-
ity List brownfields properties/sites in the State,
with added emphasis on properties located in dis-
tressed communities.
(2) The relative commitment of the State and
local municipal governments to support the reclama-
tion and reuse of nonpriority list brownfields prop-
erties.
(3) Evidence of a commitment by the private
sector to redevelopment in distressed communities.
(d) COMPETITIVE SELECTION PROCEDURE.—Sub-
allocation of Federal tax incentives by State voluntary
cleanup programs to developers (or investor pools) shall
be made on the basis of an open and selective competitive
selection procedure administered by the State.
(e) MAXIMUM AWARD OF TAX INCENTIVES.—The
maximum amount of tax incentives awarded to a
brownfields property/site owner/developer will be limited to
50 percent or less of the total project costs, and no more
than the difference between total project costs of the
brownfields property/site and comparable costs for a
greenfield property/site located at the market periphery
(or a clean property/site within the same jurisdiction as
the brownfields site) as determined by the State admin-
istering agency in consultation with the owner/developer
of the brownfields property/site.
(f) STATE TAX INCENTIVES.—Participating States
may offer complementary tax incentives for property/site
remediation and reuse.
TITLE III—LIMITING OUT-YEAR
ENVIRONMENTAL 
RISK 
LI-
ABILITY
SEC. 301. FINDINGS.
The Congress finds that—
(1) the burdens associated with the risks of out-
year environmental liability is a factor that deters
the development of brownfields properties/sites. The
risks and benefits of brownfields development must
be balanced between the citizens of the affected com-
munity, developers, lenders, and insurers; and
(2) there is a need to substantially reduce the
risks associated with the development of brownfields
properties for all constituencies (citizens in the af-
fected communities, owners, developers, lenders, and
insurers) (relating to out-year environmental costs).
SEC. 302. DEFINITION.
As used in this title, the term ‘‘out-year environ-
mental risk liability’’ means liability regarding an environ-
mental or public health hazard not discovered during prop-
erty/site cleanup assessment or cleanup of a brownfields
property/site.
SEC. 303. SCOPE OF PROGRAM.
(a) PROSPECTIVE PURCHASER AGREEMENT.—In the
case of a prospective purchaser of a brownfields property/
site, the Administrator of the Environmental Protection
Agency may consider a prospective purchaser agreement
which releases the prospective purchaser from liability to
the United States, when appropriate and if there are sub-
stantial benefits to the government and the community
(such as through job creation or productive use of the
abandoned property) and if the prospective purchaser sat-
isfies other criteria (such as (1) an EPA action at the fa-
cility has been taken, is ongoing, or is anticipated to be
undertaken by the Agency, (2) the Agency should receive
a substantial benefit either in the form of a direct benefit
for cleanup, or as an indirect public benefit in combination
with a reduced direct benefit to EPA, (3) the continued
operation of the facility or new property/site development,
with the exercise of due care, will not aggravate or contrib-
ute to the existing contamination or interfere with EPA’s
response action, (4) the continued operation or new devel-
opment of the property will not pose health risks to the
community and those persons likely to be present at the
property/site, and (5) the prospective purchaser is finan-
cially viable).
(b) INSURANCE MECHANISMS.—The Administrator
of the Environmental Protection Agency shall work with
the private insurance industry to determine the feasibility
of three basic insurance mechanisms for addressing the
issue of out-year environmental risk liability—
(1) a wholly private insurance program;
(2) a Federal insurance program; or
(3) a joint insurance program involving risks
shared between the two parties;
and make a recommendation to the Administrator, includ-
ing in the case that either a program under paragraph
(2) or (3) is selected, a recommended amount of capital-
ization required to create the insurance program, and in-
cluding any other recommendations, as appropriate. The
Administrator shall recognize State, local, and tribe land
use controls, such as zoning ordinances or deed restric-
tions, as means to ensure future property/site control and
limit the potential for future environmental contamina-
tion.
TITLE IV—ENVIRONMENTAL AS-
SESSMENT AND CLEANUP RE-
SEARCH, DEVELOPMENT, AND
DEPLOYMENT
SEC. 401. FINDINGS.
The Congress finds that—
(1) the costs and time associated with
brownfields property/site assessment, and property/
site cleanup are major deterrents to reclamation, re-
development, and reuse; and
(2) there is a need for the Federal Government
to fund innovative approaches to public health as-
sessment, property/site inspection, and cleanup
which drives down costs and expedites assessment
and cleanup.
SEC. 402. SCOPE OF PROGRAM.
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency shall make project grants
available to local technology centers and universities to re-
search, develop, and deploy innovative property/site as-
sessment, public health assessment, and cleanup tech-
nologies, procedures, and related information.
(b) GRANT APPLICATION.—The grant application will
conform with criteria established by the Administrator.
(c) GRANT AWARDS.—The maximum award shall be
$250,000.
TITLE 
V—ENCOURAGING 
PUB-
LIC-PRIVATE-COMMUNITY
PARTNERSHIPS
SEC. 501. FINDINGS.
The Congress finds that—
(1) many brownfields properties/sites exist in
areas characterized by physical decline, high unem-
ployment and poverty rates, and low educational at-
tainment;
(2) in terms of benefits, brownfields cleanup
immediately improves health and quality of life to
the extent that environmental hazards are removed;
(3) residents surrounding brownfields properties
both directly (e.g., from employment and entre-
preneurial opportunities) and indirectly (from in-
creased city revenues supporting neighborhood serv-
ices); and
(4) the Federal Government should encourage
and support public-private-community partnerships
in the assessment, cleanup, redevelopment, and
reuse of brownfields properties.
SEC. 502. DEFINITION.
As used in this title, the term ‘‘public-private-commu-
nity partnerships’’ means partnerships undertaken be-
tween layers of Government, private and nonprofit enti-
ties, and community organizations involved in some aspect
of brownfields planning, assessment, reclamation, and
reuse.
SEC. 503. SCOPE OF PROGRAM.
(a) IN GENERAL.—The Administrator shall—
(1) require community consultation, including
households and business owners from the immediate
neighborhood, local health authorities, on the extent
of required cleanup in relationship to ultimate reuse
and reuse impact on the neighborhood and larger
community;
(2) sustain and/or expand Federal funding for
training for property/site environmental assessment
and cleanup; these programs provide job training
and employment opportunities for core area resi-
dents;
(3) sustain and/or expand Federal funding for
technical assistance and research in brownfields
cleanup and redevelopment strategies, including
technical assistance in packaging project financing;
and
(4) shall assist the Administrator, Agency for
Toxic Substance and Disease Registry, to provide
technical assistance for public health assessments to
local health authorities and community-based organi-
zations.
(b) GRANT AWARDS AND SELECTION CRITERIA.—(1)
To support activity under subsection (a)(2), the Adminis-
trator shall make up to 20 grants on an annual basis to
501(c)(3) organizations and private sector organizations,
with a maximum grant per award of $150,000, for up to
3 years. Selection criteria for evaluating grant applications
are—
(A) quality of proposed training; and
(B) training experience of grantees with local
community residents living near brownfields prop-
erties.
(2) To support activity under subsection (a)(3),
$1,000,000 in additional appropriations is authorized to
support the work of the Environmental Protection Agen-
cy’s Environmental Finance Centers for each year between
1998 and 2002.
TITLE VI—ANNUAL PROGRAM
EVALUATION
SEC. 601. FINDINGS.
The Congress finds that—
(1) there is a need to evaluate the Act’s provi-
sions on an annual basis; and
(2) to fully review and provide an annual report
on the Act’s implementation.
SEC. 602. SUNSET PROVISION.
The provisions of this Act shall cease to have any
force and effect on the date 5 years after enactment.
SEC. 603. SCOPE OF ANNUAL EVALUATION.
The Administrator of the Environmental Protection
Agency shall provide a written report to Congress which
describes program activity during each year, including the
identification of major achievements of programs estab-
lished under this Act affecting Federal, State, or local per-
formance.
SEC. 604. REPORT TO CONGRESS.
The Administrator of the Environmental Protection
Agency shall submit reports evaluating the impact and
cost-effectiveness of the provisions of this Act for which
they are responsible 180 days before the sunset date set
forth in section 602.
Æ