Prior to passage of the Brownfield Revitalization Act, EPA considered brownfields to be abandoned, i

1
What Are Brownfields?

• Prior to passage of the Brownfield Revitalization
  Act, EPA considered brownfields to be abandoned,
  idled, or underused facilities where expansion or
  redevelopment was complicated by real or
  perceived contamination.
• The new law modifies that working definition of a
  brownfield site to real property, the expansion,
  redevelopment, or reuse of which may be
  complicated by the presence or potential presence
  of a hazardous substance pollutant or
  contaminant.

2
Givens that Influence Brownfield Reuse

• Resource scarcity and need to recycle
• Legacy of manufacturing
• Legacy of commercial operations with pollution
  impacts
• Land uses and economic bases/needs have changed
• No one size fits all template exists
• Pragmatism is key to success

3
The Red Zone

• What Impact Does Contamination Have on Financing?
• Conceptualizing and Planning the Project
• Economic Analysis for Marketing the Project

• Dealing with Stigma
• for Site Assessment
• Additional Underwriting/Site Development/R.O.R.
  Costs
• for Preparing a Cleanup Plan and Taking It
  Through
• VCP/State/Local Regulatory Agencies
• for Cleanup

Regular Real Estate Construction/Development
Costs When Site is Shovel Ready
4
Goals of Public Financing Initiatives

• What Can Public Financing Programs Do?
• Reduce lenders risk
• loan guarantees companion loans performance
  data
• Reduce borrowers costs
• interest-rate reductions or subsidies due
  diligence assistance
• Improve the borrowers financial situation
• re-payment grace periods tax abatements
  training and technical assistance help
• Provide resources directly
• grants forgivable/performance loans

5
Low-Cost/No-Cost Tools That Enhance the Climate
for Brownfield Transactions

• Institutional controls
• Proprietary
• Governmental
• Innovative remedial technologies
• Mr. Wizard meets economic development
• Cost saving technical assistance and project
  support
• Environmental insurance
• Remediation insurance
• Stop-loss coverage
• Pollution legal liability insurance

6
Small Business Liability Relief and Brownfields
Revitalization Act

• Summary of Key Provisions as Passed by Congress
  - Title II
• Subtitle A Funding
• Authorizes 200 million per year for grants to
  states, tribes, local governments, and
  non-profit/quasi public redevelopment agencies
  and authorities
• for site assessment and cleanup grants direct
  remediation grants to governments or non-profits
  with 20 percent match as well as capital for
  RLFs
• 50 million (or 25 percent of appropriation) may
  be used for sites with petroleum contamination
• insurance premiums permitted as eligible use of
  funds
• authorizes EPA brownfield program that includes
  training, research, and technical assistance
  activities
• Subtitle B Liability Clarification
• Provides Superfund liability relief to
• contiguous property owners
• prospective purchasers
• innocent landowners
• Subtitle C State Response Programs
• Authorizes 50 million per year for grants to
  states and tribes
• to establish and enhance state VCPs/response
  programs
• states must maintain a public record of sites
  addressed
• finality for sites addressed thru state
  programs, except.
• re-openers EPA ability to come back is
  preserved in specifically defined situations
• EPA must consult with the state on re-opener
  situations

7

• Georgia Hazardous Site Reuse and Redevelopment
  Act -- new amendmends effective July 1, 2002
• Offers limited liability relief to purchasers of
  properties that have had a release of a regulated
  substance. Requires certification of compliance
  with one of the programs Risk Reduction
  Standards.
• Expands universe of eligible properties by
  including sites not listed on the states
  hazardous site inventory
• Provides additional incentive for re-use of
  contaminated property by allowing new owner to
  use the property without remediation of
  groundwater contamination so long as the owner
  does not cause a new release or contribute to the
  existing release.
• Financing Incentives Targeted to Brownfield
  Situations
• Hazardous Waste Trust Fund up to 2million per
  site to local governments for site investigation
  and remediation at solid waste disposal
  facilities
• Property tax incentive proposals to off-set for
  the costs of remediation can reduce them, down to
  level taxes paid prior to redevelopment (status??)

8
Web Site

• www.nemw.org/brownfields.htm
• Federal Legislative Proposals to Promote
  Brownfield Cleanup and Redevelopment - whats
  happening in Congress
• State of the States - profiles of state VCPs,
  including new information on financing
  incentives, economic benefits, eligible
  contaminants, cleanup standards, and
  institutional controls
• Guide to Federal Brownfield Programs - detailed
  information on programs throughout the federal
  government that can promote and support
  brownfield cleanup and redevelopment
• Financing options for brownfield cleanup and
  redevelopment
• Contacts in state and federal brownfield programs
  
• Link to EPA brownfield home page
• Links to brownfield databases and organizations