I
105TH CONGRESS
1ST SESSION
H. R. 1462
To authorize the Administrator of the Environmental Protection Agency to
establish a pilot project providing loans to States to establish revolving
loan funds for the environmental cleanup of brownfield sites in distressed
areas that have the potential to attract private investment and create
local employment.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mr. VISCLOSKY introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To authorize the Administrator of the Environmental Protec-
tion Agency to establish a pilot project providing loans
to States to establish revolving loan funds for the envi-
ronmental cleanup of brownfield sites in distressed areas
that have the potential to attract private investment and
create local employment.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Brownfield Cleanup
and Redevelopment Revolving Loan Fund Pilot Project
Act of 1997’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds:
(1) Nationwide, older abandoned or under-used
commercial 
and 
industrial 
sites 
known 
as
brownfields are often overlooked for redevelopment
because of real or perceived contamination from past
commercial or industrial activities.
(2) Reuse of these sites often requires site as-
sessment and cleanup, adding costs and uncertain-
ties to the redevelopment process, and prompting
many developers to pursue cheaper, less complicated
development options on undeveloped sites.
(3) Brownfields are at a competitive disadvan-
tage relative to greenfield sites, as capital for their
cleanup and redevelopment may not be available.
Often located in distressed areas, brownfields, owned
by public, private, or nonprofit entities, are fre-
quently unable to secure financing for site remedi-
ation.
(4) States have created remedial action pro-
grams to allow a person to respond voluntarily to a
release or suspected release of hazardous substances
at low and medium priority facilities. Such programs
have flourished due to the States’ ability to stream-
line duplicative State and Federal regulatory re-
quirements and affect a timely, cost-effective, and
environmentally protective cleanup of sites.
(5) Because of their experience in administering
targeted loan assistance programs, States are in a
good position to use Federal funds to capitalize re-
volving loan funds to support local cleanup and rede-
velopment projects.
(b) PURPOSE.—The purpose of this Act is to estab-
lish a pilot project to revitalize distressed communities by
providing loans for cleanup of eligible brownfield facilities
and properties that are remediated through State vol-
untary cleanup programs and that have the potential to
attract private investment, foster clean manufacturing,
and create jobs for local residents.
SEC. 3. PILOT PROJECT PROVIDING REVOLVING LOAN
FUND FOR CLEANUPS UNDER STATE VOL-
UNTARY CLEANUP PROGRAMS.
(a) ESTABLISHMENT OF LOAN PROGRAM.—The Ad-
ministrator of the Environmental Protection Agency
(hereinafter in this Act referred to as the ‘‘Adminis-
trator’’) shall establish a pilot project to provide a capital-
ization loan to one or more States that submit applications
to the Administrator to establish or expand a State revolv-
ing loan fund for purposes of providing loans for voluntary
environmental cleanups of eligible facilities.
(b) APPLICATION FOR LOAN.—An application for a
capitalization loan under this section shall be in such form
as the Administrator considers appropriate. At a mini-
mum, the application shall include each of the following:
(1) Evidence that the State is carrying out a
voluntary cleanup program for eligible facilities. The
Administrator shall ensure that the State voluntary
program provides, at a minimum, adequate opportu-
nities for meaningful public participation, sufficient
technical assistance, and adequate oversight and en-
forcement authority to ensure that cleanups protect
human health and the environment, adequate re-
sources are available to carry out cleanup, and cer-
tification from the State to the owner or prospective
purchaser that the cleanup is complete.
(2) Evidence that the State will provide a
matching share of at least 20 percent of the costs
of such cleanup from either new or existing sources
of State funding.
(3) A description of the State’s proposed revolv-
ing loan program and of the State’s capability to
manage the program. States may use interest in-
come or loan repayments (in an amount equal to not
more than 10 percent of their revolving loan fund
amount) for program administrative purposes. At a
minimum, the State’s revolving loan program shall—
(A) provide loans to both public and pri-
vate parties conducting voluntary cleanups
under the State’s voluntary cleanup program
who are unable to secure loans from private
lending institutions or other means of financ-
ing;
(B) require that borrowers demonstrate
credit worthiness and the ability to carry out
the cleanup; and
(C) give priority to loans for the purpose
of cleaning up—
(i) facilities that are planned to be re-
used for industrial purposes that employ
environmentally sound practices; and
(ii) facilities that will generate jobs
for contractors whose principal place of
business is the political subdivision in
which the facility is located or for laborers
who reside in such political subdivisions.
(4) A statement that the State will begin repay-
ment of the loan within 5 years after receipt of the
loan, and evidence of the State’s ability to repay the
loan.