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Managing America: Environment

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Week Ending March 2, 2006

H.R.644 To facilitate the provision of assistance by the Department of Housing and Urban Development for the cleanup and economic redevelopment of brownfields.

Congress finds that Brownfield sites, sites that include any properties with moderate environmental damage such as urban housing developments, industry sites, mining operations and the like, if returned to productive economic use can generate 550,000 jobs and up to $2.4 billion in city and town tax revenues. This bill allows for cleanup grants under circumstances were otherwise loan guarantee requirements are not met. The grants would go to eligible public entities and Indian tribes for environmental cleanup and economic development of the sites.

The grants may not be made such that the financial responsibility of a nongovernmental party responsible or potentially responsible for contamination of the property is reduced. Additionally the grant may not relieve any party of liability with respect to the responsibility for contaminating the property including removal and remediation costs. The Secretary of HUD may develop other criteria governing grant eligibility and use including financial leveraging of other grants.

The bill opens the door to the awarding of Community Development Block Grants for brownfield cleanup and development and applies the same rules and prohibitions to CDBG as other grants in this bill.

Sponsor:  Rep. Gary Miller (R-CA-42^nd)

Vote: passed House by voice vote February 27, 2007.

Cost to the taxpayers: The bill authorizes such sums as may be necessary. The actual spending for this bill would be appropriated later in the budget year.

Earmark Certification:   Not applicable to this bill.

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MORE INFORMATION

(a) Findings- The Congress finds that--

(1) returning the Nation's brownfield sites to productive economic use could generate more than 550,000 additional jobs and up to $2,400,000,000 in new tax revenues for cities and towns;

(2) redevelopment of brownfield sites and reuse of infrastructure at such sites will protect natural resources and open spaces;

(3) lack of funding for redevelopment is a primary obstacle impeding the reuse of brownfield sites;

(4) the Department of Housing and Urban Development is the agency of the Federal Government that is principally responsible for supporting community development and encouraging productive land use in urban areas of the United States;

(5) grants under the Brownfields Economic Development Initiative of the Department of Housing and Urban Development provide local governments with a flexible source of funding to pursue brownfields redevelopment through land acquisition, site preparation, economic development, and other activities;

(6) to be eligible for such grant funds, a community must be willing to pledge community development block grant funds as partial collateral for a loan guarantee under section 108 of the Housing and Community Development Act of 1974, and this requirement is a barrier to many local communities that are unable or unwilling to pledge such block grant funds as collateral; and

(7) by de-linking grants for brownfields development from section 108 community development loan guarantees and the related pledge of community development block grant funds, more communities will have access to funding for redevelopment of brownfield sites.

(b) Purpose- The purpose of this Act is to provide cities and towns with more flexibility for brownfields development, increased accessibility to brownfields redevelopment funds, and greater capacity to coordinate and collaborate with other government agencies--

(1) by providing additional incentives to invest in the development and redevelopment of brownfield sites; and

(2) by de-linking grants for brownfields development from community development loan guarantees and the related pledge of community development block grant funds.

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