[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3844 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 3844
To authorize the Administrator of the Environmental Protection Agency
to provide loans to States to establish revolving loan funds for the
environmental cleanup of sites in distressed areas that have the
potential to attract private investment and create local employment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 1994
Mr. Visclosky (for himself, Mr. Regula, Mr. Fingerhut, and Mr.
Lipinski) introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To authorize the Administrator of the Environmental Protection Agency
to provide loans to States to establish revolving loan funds for the
environmental cleanup of 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 Representatives 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 Act''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds the following:
(1) Contaminated and underused or abandoned industrial
sites in distressed communities are, economically, at a
competitive disadvantage relative to greenfield sites, as
capital for their cleanup and redevelopment may not be
available.
(2) Contaminated and underused and abandoned industrial
properties located in distressed areas, owned by private,
public, or nonprofit entities, often with significant economic
development potential once cleaned up, are unable to secure
initial financing for site remediation.
(3) Considerable public benefits can accrue from such sites
once cleaned up and brought back to productive reuse,
especially those devoted to industrial purposes that employ
enviornmentally sound practices.
(4) Voluntary cleanup programs spur private sector cleanups
when the property value is sufficient and its location
favorable enough to make the additional costs of cleanup
economically feasible, but this approach does not resolve the
problems facing properties with little or no value, common
among sites located in economically distressed areas.
(5) Because of their experience in administering targeted
loan assistance programs, States are in a good position to use
Federal funds to capitalize revolving loan funds to support
local cleanup and redevelopment projects.
(b) Purpose.--The purpose of this Act is to revitalize distressed
communities by providing loans for cleanup of certain industrial
properties that have the potential to attract private investment,
foster clean manufacturing, and create jobs for local residents.
SEC. 3. REVOLVING LOAN FUND FOR CLEANUPS UNDER STATE VOLUNTARY CLEANUP
PROGRAMS.
(a) Establishment of Loan Program.--The Administrator of the
Environmental Protection Agency (hereinafter in this Act referred to as
the ``Administrator'') shall establish a program to provide a
capitalization loan to any State that submits an application that is
approved by the Administrator to establish or expand a State revolving
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 minimum, 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 insure that the State voluntary program provides, at a
minium, adequate opportunities for public participation,
sufficient technical assistance, and oversight to ensure that
cleanups comply with Federal and State laws, and certification
to the owner and 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 revolving loan
program and of the State's capability to manage the program.
States may use interest income 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 private
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 financing;
(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
reused 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 repayment of the
loan within 5 years after receipt of the loan, and evidence of
the State's ability to repay the loan.
(5) A statement that a loan from the revolving loan fund
will not be used to pay for any of the following:
(A) New construction.
(B) Environmental fines or penalties.
(C) Speculative assessments or speculative
rehabilitation at facilities with little or no
potential for economic development.
(6) Such other elements as the Administrator considers
appropriate.
(c) Amount of Loan.--The Administrator shall determine the
distribution of funds among the eligible States. The amount of a
capitalization loan made by the Administrator under this Act to a State
may not exceed 15 percent of the amount available each year to all the
eligible States.
(d) Authorization.--There are authorized to be appropriated to the
Administrator for purposes of making capitalization loans to States
under this section the sum of $5,000,000 for fiscal year 1995 and
$7,500,000 for each of the fiscal years 1996 and 1997.
SEC. 4. DEFINITIONS.
For purposes of this Act the term ``eligible facility'' means a
facility or property in a State that is determined by the State to have
environmental contamination that--
(1) could prevent the timely use, development, or reuse of
the facility or property; and
(2) is limited in scope and can be comprehensively and
readily evaluated.
Such term shall not include any of the following:
(A) A facility that is eligible for abatement action under
section 106 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980.
(B) A facility that, as of the date of the enactment of
this Act, is subject to Federal enforcement action under the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.).
(C) A facility included, or proposed for inclusion, on the
National Priorities List or on the comprehensive environmental
response, compensation, and liability inventory system
(``CERCLIS'') that has been evaluated as high priority under
the hazard ranking system.
(D) A facility required to have a permit under section 3005
of the Solid Waste Disposal Act that does not have a permit
under that section and does not qualify for authorization to
operate in interim status under subsection (e) of that section.
(E) A land disposal unit with respect to which a closure
notification under subtitle C of the Solid Waste Disposal Act
(42 U.S.C. 6921 et seq.) is submitted and closure requirements
are specified in a closure plan or permit.
(F) A facility subject to corrective action under section
3004(u) or 3008(h) of the Solid Waste Disposal Act (42 U.S.C.
5924(u) or 6928(h)) that is evaluated as high priority under
the Environmental Protection Agency's National Corrective
Action Priority System as set forth in regulations under
subtitle C of the Solid Waste Disposal Act.
(G) A facility at which assistance for response activities
may be obtained pursuant to subtitle I of the Solid Waste
Disposal Act (42 U.S.C. 6991 et seq.) from the Leaking
Underground Storage Tank Trust Fund established under section
9508 of the Internal Revenue Code of 1986.
(H) A facility owned or operated by a department, agency,
or instrumentality of the United States.
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