At press time, the 111th Congress was working towards a mid-December adjournment, after grappling with monumental issues—economic crisis and stimulus, energy and climate change, and health care—that left less global issues, such as brownfields, struggling to move off the back burner. From a direct brownfields and sustainable development perspective, little in the way of concrete legislative achievement has been realized so far in this Congress. We saw no brownfield program reauthorization, no permanent brownfield tax incentive passed, and no sustainability initiative enacted. And a couple of key programs—HUD's BEDI and Section 108 programs—remain in limbo.
On the other hand, Congress continued to fund brownfield programs: EPA's was one of the few appropriations to pass this year. The $787 billion stimulus provided numerous opportunities for creative state, local, and private reuse to promote brownfield revitalization and sustainable development efforts. In addition to $100 million for brownfield projects, it also included significant new incentives for "green" construction and development. And $25 billion in "recovery zone" bonding authority was allocated in June, which could play a critical role in brownfield and sustainability investments depending on how states and local governments choose to use it.
Fiscal 2010 appropriations
Congress did complete, and the President signed on October 30, the FY 2010 Interior/Environment appropriation bill, which included funding for key EPA programs:
- $100 million for brownfield assessment and cleanup grants, a small increase over this year's level;
- $49.5 million for state response/128(a) grants;
- $113 million for the LUST program;
- $1.3 billion for Superfund cleanups;
- $2.1 billion for clean water, and $1.39 billion for drinking water RLF capitalization grants, with the stipulation, carried over from the stimulus, that states prioritize "green infrastructure" projects for 20 percent of their allocations.
More than half of the regular appropriations bills did not make it through the normal appropriation process, including the Transportation and HUD bill, which provides critical community development and infrastructure funding with significant impacts on brownfield and sustainable development. On December 8, Congress completed work on HR 3288, the Consolidated Appropriations Act, which rolled the remaining seven bills into an omnibus appropriation for FY2010. (At press time, President Obama had not yet signed it into law, but he was expected to do so.) Highlights of this funding blueprint that support community development include:
- $4.45 billion for Community Development Block Grants, a sizable $550 million increase over FY2009 levels; this includes $150 million for a new sustainable community initiative to provide grants to help communities with integrated housing, transportation and energy planning efforts.
- $17.5 million for BEDI, $7.5 million above 2009 levels and the highest level provided in several years. This represents a major victory for brownfield reuse proponents, who faced considerable obstacles to any appropriation at all for this program.
- $65 million for a new Choice Neighborhoods Initiative that would make investments in high-poverty neighborhoods to create sustainable communities with a range of vital public services.
Key transportation programs linked to community revitalization and stabilization—with brownfield redevelopment potential—were funded as follows:
- $41.8 billion for highway infrastructure, to improve and repair our nation's aging highway systems, including $600 million for grants to support a range of modal investments, including those in ports, public transportation, and passenger and freight railroads.
- $10.73 billion for Federal Transit Administration public transportation programs, a level $602 million above 2009.
- $2.5 billion for high speed/intercity passenger rail grants, some $2.4 billion more than provided for 2009, to provide grants to states or Amtrak to modernize the passenger rail system.
Brownfield program reauthorization
In spite of considerable effort by more than two dozen diverse economic and community development organizations comprising a "brownfields coalition," reauthorization of the EPA brownfield program did not advance very far in 2009. Except for a few informal discussions at the member and subcommittee staff level, the House and Senate did not consider it. At this point, a discussion draft is in preparation, and introduction of a reauthorization bill is not expected before spring.
However, considerable spadework has been done, and a good foundation laid to advance the discussions in 2010. Congressional staff and a few members have expressed interest in including some of the ideas advanced by the brownfields coalition when a new proposal is introduced. These include:
- Permitting larger grant amounts (up to $1 million);
- Authorizing multi-purpose grants (for comprehensive assessment, cleanup, demolition and removal projects);
- Establishing pilot grants for sustainable reuse, such as "green brownfields" and alternative energy; and
- Making non-profits eligible for all types of grants, including assessment.
At the same time, other coalition suggestions have not yet gained acceptance at the congressional level, such as mandating stricter state institutional control enforcement efforts. And a few others, mostly linked to liability—such as extending the enforcement bar to RCRA sites and allowing a CERCLA exemption for acquisition by innocent states and localities—are proving to be show stoppers.
WHAT'S IN THE HOPPER?
Members of Congress have introduced a number of bills to advance brownfield and sustainable development, although they have a long road to travel before enactment. Nevertheless, the following bear watching in 2010:
- Community Regeneration, Sustainability, and Innovation Act (HR 932, S 453) — authorizes $450 million over three years to develop and carry out innovative vacant property reclamation and infrastructure renewal strategies.
- Brownfield Remediation Permanent Tax incentive (HR 3260) — makes the existing brownfield cleanup tax expensing incentive permanent as is.
- America's Brownfield Cleanup Act (HR 1724) — allocates $1 billion in cleanup tax credits to states, for re-allocation to local governments, to offset 50 percent of cleanup, demolition, and related site preparation costs.
- Waterfront Brownfield Revitalization Act (HR 3518) — targets $220 million annually (thru 2014) for planning, assessment, and cleanup of brownfields adjoining bodies of water, including contaminated sediments.
- Livable Communities Act (S 1619) -- a mega proposal which would provide $4.1 billion over four years for planning and implementation of a range of sustainable development and affordable housing initiatives.
WHAT DO WE ANTICIPATE FOR 2010?
Brownfield activities next year — like all economic and community development initiatives - will play out next year in a climate of great volatility and uncertainty, as election year realities become more prominent in policy and political decision making. What we are likely to see:
- Focus on jobs, jobs, jobs — tackling the highest unemployment rate in three decades will be a congressional and administration priority, and the extent to which brownfields and sustainable development can make themselves relevant to infrastructure, energy, and other anticipated job creating;
- Focus on small business development — similarly, the Obama Administration intends to promote new business formation and business retention strategies, and will seek authority to use TARP repayments for "Main Street" efforts. The extent to which states and localities are given the authority, or show the creativity, to deploy these potential new resources for site reuse efforts (such as at abandoned auto sector facilities) will influence brownfield and sustainability efforts:
- Focus on sustainable development — HUD's new office of sustainable development could be a key player in a range of brownfield, smart growth, and inter-jurisdictional revitalization efforts. In addition, the Obama Administration has directed various federal agencies to develop sustainable, "place-based initiatives" for their FY2011 budget requests, which could pave the way for more creative revitalization linkages.
- Focus on tax code provisions — as Congress considers what to do about the expiring Bush tax cuts, a broader discussion of what tax code incentives can do to promote a sustainable economic recovery will likely take place; this could involve energy efficiency incentives, as well as more targeted efforts, such as brownfield cleanup tax credits.
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