I
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 Fi-
nancial 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 consider-
ation 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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Brownfields Redevelop-
ment 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 preven-
tion 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 environ-
mental 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 rede-
velopment 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 credit-
worthiness;
(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 re-
fined 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 ongo-
(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 Devel-
opment Act of 1965, the Secretary of Com-
merce, 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, rede-
velopment, or reuse of which may be com-
plicated by the presence or potential presence
of—
(i) a hazardous substance (as defined
in section 101 of the Comprehensive Envi-
ronmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601));
or
(ii) any other pollutant or contami-
nant, 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 Re-
sponse, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.);
(ii) a facility that is listed on the Na-
tional 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 Con-
trol 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 implementa-
tion 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 de-
partment, 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 re-
lease 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 Stor-
age Tank Trust Fund established by sec-
tion 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 sub-
paragraph (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 envi-
ronment; and
(ii)(I) promote economic development;
or
(II) enable the creation of, preserva-
tion of, or addition to parks, greenways,
undeveloped property, other recreational
property, or other property used for non-
profit purposes.
(D) ADDITIONAL INCLUSIONS.—The term
‘brownfield site’ includes a site that meets the
definition of ‘brownfield site’ under subpara-
graphs (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 Environ-
mental Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9601); and
(II) is a site determined by the appro-
priate 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 COMMU-
NITY 
DEVELOPMENT 
AND
SMALL 
BUSINESS 
ASSIST-
ANCE PROGRAMS
Subtitle A—Community
Development Programs
SEC. 101. ELIGIBILITY OF NONENTITLEMENT COMMU-
NITIES FOR BROWNFIELDS ECONOMIC DE-
VELOPMENT PROGRAM.
Section 108(q) of the Housing and Community De-
velopment 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 ACTIVI-
TIES.
Section 108(d) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5308(d)) is amended—
(1) in paragraph (1), by striking ‘‘To’’ and in-
serting ‘‘Except as provided in paragraph (2), to’’;—
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the fol-
lowing 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 develop-
ment activities related to brownfield sites, to assure the
repayment of such notes or obligations and charges in-
curred under this section, the Secretary shall require the
issuer—
‘‘(A) to enter into a contract described in para-
graph (1)(A); and
‘‘(B) furnish such security as may be deemed
appropriate by the Secretary in making such guar-
antees, 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 Develop-
ment Act of 1974 (42 U.S.C. 5308) is amended by strik-
ing subsection (o) and inserting the following new sub-
section:
‘‘(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 ‘eli-
gible public entity’ means any unit of general local
government, including units of general local govern-
ment in nonentitlement areas.’’.
SEC. 104. COMMUNITY DEVELOPMENT FINANCIAL INSTITU-
TIONS ASSISTANCE FOR BROWNFIELD SITES
ACTIVITIES.
Section 121(a) of the Reigle Community Develop-
ment 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 REDEVELOP-
MENT.—In addition to the amounts authorized to be
appropriated under paragraph (1) or otherwise to
carry out this subtitle, there are authorized to be ap-
propriated to the Fund $25,000,000, except that
such amounts shall be available only for providing
assistance under section 108 to a community devel-
opment financial institution for carrying out a lend-
ing strategy that has been developed by the institu-
tion and has as its purpose assisting the environ-
mental cleanup and economic development of invest-
ment 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
ACTIVI-
TIES.—
‘‘(A) IN
GENERAL.—In each fiscal year,
the Administrator of the Small Business Ad-
ministration 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 ACTIVI-
TIES 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 Environ-
mental Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9604(b)).’’.
SEC. 112. SMALL BUSINESS INVESTMENT COMPANIES DE-
VOTED TO BROWNFIELD CLEANUP ACTIVI-
TIES.
(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 DE-
VOTED TO BROWNFIELD CLEANUP ACTIVI-
TIES.
‘‘(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 sec-
tion 301(e).
‘‘(c) SET-ASIDE.—In each fiscal year, the Adminis-
trator shall set aside the lesser of $2,000,000 or 10 per-
cent 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 RE-
QUIRED.—As a condition of the receipt of assistance made
available under this section, the Administrator shall re-
quire each small business investment company receiving
such assistance to require that each small business con-
cern 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 lo-
cated; 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 mean-
ing 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 equip-
ment.
‘‘(b) SET-ASIDE.—In each fiscal year, the Adminis-
trator shall set aside the lesser of $50,000,000 or 10 per-
cent 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 assess-
ments and cleanup activities at brownfield sites nec-
essary 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 appro-
priate by the President and undertaken pursuant to sec-
tion 104(b) of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9604(b)).
‘‘(d) PARTICIPATION IN CERTAIN ACTIVITIES RE-
QUIRED.—As a condition of the receipt of assistance made
available under this section, the Administrator shall re-
quire each local development company receiving such as-
sistance 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 lo-
cated; 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 Adminis-
trator of the Small Business Administration should
not fail to make assistance available for the cleanup
and redevelopment of brownfield sites merely be-
cause of such potential for increased risk.
TITLE II—REDEVELOPMENT OF
BROWNFIELD 
SITES
THROUGH ECONOMIC DEVEL-
OPMENT 
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 facili-
ties.
SEC. 202. DEFINITIONS.
Section 3 of the Public Works and Economic Devel-
opment 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 re-
designated) 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 un-
used, underused, or abandoned land that is not con-
tributing 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 De-
velopment Act of 1965 (42 U.S.C. 3z132) is amended—
(1) by inserting ‘‘(a) COMPREHENSIVE ECO-
NOMIC 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 redevel-
opment of brownfield sites under this Act with other Fed-
eral agencies, States, local governments, consortia of local
governments, Indian tribes, nonprofit organizations, and
public-private partnerships.’’.
SEC. 204. GRANTS FOR BROWNFIELD SITE REDEVELOP-
MENT.
(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 REDEVELOP-
MENT.
‘‘(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 con-
sisting 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 lo-
cated 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 infrastruc-
ture deterioration;
‘‘(C) dislocations resulting from commer-
cial or industrial restructuring;
‘‘(D) outmigration and population loss, as
indicated by—
‘‘(i)(I) depletion of human capital (in-
cluding young, skilled, or educated popu-
lations);
‘‘(II) depletion of financial capital (in-
cluding firms and investment); or
‘‘(III) a shrinking tax base; and
‘‘(ii) resulting—
‘‘(I) fiscal pressure;
‘‘(II) restricted access to mar-
kets; and
‘‘(III) constrained local develop-
ment potential; or
‘‘(E) the closure or realignment of—
‘‘(i) a military or Department of En-
ergy 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 com-
prehensive 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.—Assist-
ance 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 com-
munity; 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 infra-
structure;
‘‘(B) reclaiming unused land and aban-
doned buildings; or
‘‘(C) creating publicly owned parks, play-
grounds, recreational facilities, or cultural cen-
ters that contribute to the economic revitaliza-
tion of a community; or
‘‘(3) carrying out a collaborative economic de-
velopment planning process, developed with broad-
based and diverse community participation, that ad-
dresses 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 redis-
tribute 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 appro-
priate assistance.
‘‘(2) LIMITATION.—Under paragraph (1), an el-
igible recipient may not provide any grant to a pri-
vate for-profit entity.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents 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 ap-
propriated to carry out section 210 $60,000,000 for each
of fiscal years 2002 through 2007. Such sums shall re-
main 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 con-
tents 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 pursu-
ant 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 deter-
mined under subsection (a) shall not exceed $50,000.
‘‘(c) REMEDIATION PLAN MUST BE COMPLETED.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in paragraph (2)—
‘‘(A) no environmental remediation credit
shall be determined under this section with re-
spect to any qualified contaminated site unless
the Administrator of the Environmental Protec-
tion Agency (or such Administrator’s designee
under subsection (a)(2)) certifies the environ-
mental 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 contami-
nated site exceeds 200 percent of the estimated
costs of completing such plan, and
‘‘(B) the State or local official admin-
istering the remediation credit program agrees
with such determination,
the taxpayer may cease the implementation of such
plan and shall be entitled to an environmental reme-
diation credit with respect to costs incurred before
such cessation. Such credit shall be taken into ac-
count under subsection (a) ratably over the 5-tax-
able-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 eli-
gible 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 ma-
terials for transport to such site, or
‘‘(C) the taxpayer is related to any tax-
payer 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 busi-
ness or site through foreclosure (or the equiva-
lent) 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 commer-
cially reasonable terms.
‘‘(B) USE OF SITE REMEDIATED BY TAX-
PAYER.—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 in-
dustrial activity at such site) of such tax-
payer (or person) which complies with all
Federal environmental laws and regula-
tions.
‘‘(e) QUALIFIED CONTAMINATED SITE.—For pur-
poses 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 un-
likely,
‘‘(2) there is a strong likelihood of redevelop-
ment 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 redevelop-
ment 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 en-
vironmental 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 SUB-
STANCE.—Any substance, waste, or material shall be
treated as a hazardous, toxic, or dangerous sub-
stance 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 pur-
poses of this subpart, the term ‘environmental remedi-
ation’ means—
‘‘(1) removal or remediation activity in accord-
ance with the plan approved under section 54(a)(2),
‘‘(2) restoration of natural, historic or cultural
resources at the site, or the mitigation of unavoid-
able losses of such resources incurred in connection
with the remediation or response activity,
‘‘(3) health assessments or health effects stud-
ies related to the site,
‘‘(4) remediation of off-site contamination
caused by activity on the site (other than remedi-
ation activities of a type not permitted for the site),
and
‘‘(5) any other costs specified in the plan ap-
proved under section 54(a)(2), including demolition
of existing contaminated structures, site security,
permit fees necessary for remediation, and environ-
mental audits.
‘‘(c) RELATED PERSON.—For purposes of this sub-
part, 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 ENVIRON-
MENTAL REMEDIATION COSTS.—The costs taken into ac-
count 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 RE-
MEDIATION 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 de-
termined 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 sub-
chapter E of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 468B the fol-
lowing new section:
‘‘SEC. 468C. SPECIAL RULES FOR HAZARDOUS WASTE RE-
MEDIATION RESERVES.
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction 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 RE-
SERVE.—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
TAX-
PAYER.—
‘‘(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 Re-
serve during such taxable year, and
‘‘(B) any deemed distribution under sub-
section (e).
‘‘(2) DEDUCTION WHEN ECONOMIC PERFORM-
ANCE OCCURS.—In addition to any deduction under
subsection (a), there shall be allowable as a deduc-
tion for any taxable year the amount of the qualified
hazardous waste costs with respect to which eco-
nomic 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 sec-
tion, the term ‘Hazardous Waste Remediation Re-
serve’ 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 Re-
serve has ceased to be a Hazardous Waste Remedi-
ation Reserve by reason of subsection (e). Notwith-
standing 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 Re-
serve 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 vio-
lates 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—