On a practical level, brownfields and sustainable development—like all development—will face formidable challenges in 2010. The federal government—namely the Obama Administration and Congress—have indicated their interest in supporting such efforts through programmatic activities and policy proposals.

Key themes of the President's overall budget request include investing in job creation, supporting small business development (by enhancing access to credit), and revitalizing distressed urban neighborhoods and rural communities. All of these themes have important, positive potential for community brownfield and sustainable development initiatives on the ground.

For 2010, federal appropriations and financial investments will be key components of the public-private partnerships needed for these activities to continue in the short term in most areas, until a more robust economic recovery takes place.

In addition, new initiatives and refinements in existing ones have the potential to further sustainable development prospects by giving communities the resources and flexibility to take advantage of emerging opportunities. What might we expect in 2010? It's going to be a challenging year to secure funding for non-entitlement, non-security related programs. The entire fiscal 2011 appropriations process is going to be contentious, as competing priorities, deficit-reduction efforts, and the specter of mid-year elections are injected into the debate.

Here's a snapshot of what could be expected:

Environmental Protection Agency

FY 2010 APPROPRIATED

• Brownfield assessment and cleanup — $100 million
• Leaking underground storage tank cleanup — $113 million
• Superfund — $1.31 billion
• Clean water revolving loan fund capitalization — $2.1 billion
• Drinking water revolving loan fund capitalization —$1.4 billion

FY 2011 PROPOSED

• Brownfield assessment and cleanup — $138 million
• Leaking underground storage tank cleanup — $113 million
• Superfund — $1.29 billion
• Clean water revolving loan fund capitalization — $2.0 billion
• Drinking water revolving loan fund capitalization —$1.3 billion

The big increase in brownfield funding is the proposed significant increase in assessment and cleanup funding, which, if ultimately passed, would represent the biggest jump in the program's history. EPA would like to focus the increased funding in 20 or so distressed communities, and focus on larger, area-wide planning, cleanups and redevelopments.

This would reflect the Obama Administration's commitment to promoting place-based revitalization and recovery efforts. The administration is also seeking $49.5 million in the so-called 128(a) grants to states to support their voluntary cleanup programs and other activities that promote brownfield redevelopment, comparable to last year's level.

The Administration would like 20% of all new funds to be devoted to "green infrastructure" projects, consistent with the level first adopted in the stimulus funding and also included in the FY2010 appropriation.

Dept. of Housing & Urban Development

FY 2010 APPROPRIATED

• Community Development Block Grants (formula grants) — $3.99 billion
• Sustainable communities initiative — $150 million
• Brownfields (BEDI) - $10 million (with rollovers, $18 million)
• Section 108 loan guarantees — $6 million (supporting $275 million in guarantees)

FY 2011 PROPOSED

• Community Development Block Grants (formula grants) — $3.99 billion
• Sustainable communities initiative — $150 million
• Brownfields (BEDI) - $10 million (with rollovers, $18 million)
• Section 108 loan guarantees — $6 million (supporting $275 million in guarantees)

The Obama Administration is seeking essentially level funding for the CDBG program, although the budget request notes that it will seek legislation better focusing the allocation formula on distress (as it did last year), and also stating that it will work to revamp the consolidated planning process, to make it easier and more in tune with the administration's place-based program focus.

The administration seeks no new funding for HUD's brownfields (BEDI) program, suggesting again this year that BEDI is "duplicative" of other, larger efforts such as CDBG; in fact, the President referenced BEDI specifically at a press conference when asked to name a program that could be eliminated.

The President seeks a second year of funding, at the $150 million level, for his sustainable communities initiative to support activities being promoted by the EPA-HUD-DOT interagency partnership. Like FY2010, the FY2011 request would include $100 million for local, regional, and state planning grants (with at least $25 million reserved for communities with less than 500,000 residents), and $40 million for local implementation challenge grants to help implement the plans (with the balance for interagency research efforts).

In addition, the administration also proposes a new, $150 million "catalytic investment competition" which would provide competitive grants to support economic development, and to provide gap financing to implement place-based revitalization strategies. Language in the budget request suggests that this new program—which would be open to "high capacity" non-profits as well as local governments—would focus on redevelopment projects, reclamation of abandoned properties, "remove or ameliorate property-related obstacles to economic development," and similar activities, all of which would likely fit into community brownfield or sustainable development efforts.

Economic Development Administration

FY 2010 APPROPRIATED

• Planning grants — $32 million
• Public works investments — $154 million
• Economic adjustment — $53 million
• Climate change initiative — $25 million

FY 2011 PROPOSED

• Planning grants — $31 million
• Public works investments — $68 million
• Economic adjustment — $130 million
• Climate change initiative — $16 million

Overall, the Obama Administration is seeking about $10 million less in FY2011 than EDA received for its programs in FY2010. However, the administration suggests a significant reconfiguration of program spending, with the bulk of the funds going to the economic adjustment program (which assists distressed communities address local economic downturns) rather than public works, which traditionally has received most EDA program funding. However, the President asked for this shift last year, which Congress ignored—and is likely to do again this year.

Small Business Administration

FY 2010 AUTHORIZED

• Section 7(a) loan guarantee levels — $9.4 billion
• Section 504 development company loan guarantee authority — $5.5 billion
• Secondary market guarantees - $12 billion
• Direct micro-loans — $50 million

FY 2011 PROPOSED

• Section 7(a) loan guarantee levels — $15.97 billion
• Section 504 certified development company loan guarantee authority — $7.5 billion
• Secondary market guarantees - $12 billion
• Direct micro-loans — $25 million

Reflecting a national interest in supporting new, small business development, the Obama Administration proposes a significant increase in levels for SBA loan guarantee programs. These resources could prove critical to attracting new commercial, office, and retail activities to brownfield and sustainable development project activities. The administration requests a $326 million appropriation to cover all of its guarantee program activities.

Charlie Bartsch is Senior Fellow for Fairfax, Va.-based ICF International