Policy

Since the inception of federal brownfields policy in 1995, the issue has received bipartisan attention.  The federal law acted as a doorway and once the door was opened most states followed up with additional laws aimed at speeding up the reuse of contaminated and abandoned land. 

Each state has taken a different path toward inspiring the reuse of brownfields.  Some states have mandatory provisions, while others have voluntary programs.  Several states have tried to clarify issues of liability.  States such as New York and Michigan support redevelopment of brownfields through additional grants.

Most brownfields legislation seeks to achieve one or more of the following:

Clarify Liability Issues.  As previously discussed, one of the key hurdles in redeveloping brownfields is fear of being held liable for owning or operating contaminated land.  Several states have passed laws further clarifying the issues of liability and protecting prospective purchasers and developers from prosecution for previously existing contamination.

Inspire Owner Responsibility.   Several states have put into place Voluntary Clean-up Programs, which provide brownfields landowners with the opportunity to clean up the land on their own to avoid the risk of prosecution.  Other states have gone in the opposite direction, and have given their state Department of Environmental Protection the authority to clean-up brownfields and then charge negligent property owners with the costs if they do not feel compelled to remediate the land themselves.   

Offer Financial Support.  State and federal governments offer two forms of financial support with regard to brownfields remediation:  grants to states, cities, and municipalities to either finance brownfields clean-up or to capitalize loan funds to do so, and grants for all interested developers.  Some offer additional grants to developers who plan to provide some needed resource to low-income communities.  Since most successful brownfields site remediation requires several different sources of financing, many states are also offering redevelopment loans.

Supply Free Resources.  In an effort to lighten the burden of brownfields redevelopment, some states have developed programs to provide free environmental remediation services.  For instance, a state might provide free legal services, help acquire the land, or provide technical assistance with environmental site assessment.

Provide Tax Incentives. Many bills offer tax incentives, such as tax credits or tax-exempt financing.  These incentives lower the cost of brownfields redevelopment.
Following are some examples of specific brownfields legislation:

Federal

Small Business Liability Relief and Brownfields Revitalization Act 2002
This act expanded the Environmental Protection Agency's current brownfields program by authorizing funding for assessing and cleaning up contaminated properties.  Approximately $250 million is available to eligible entities for site remediation through grants and loans.  It also protects prospective purchasers and contiguous property owners from superfund liability.  Prospective purchasers are protected if they conduct a sufficient clean-up of the contaminated site in accordance with state and federal law. 
Furthermore, people that own property adjacent to brownfields are not liable for the cost of clean-up if their property unknowingly became contaminated through no fault of their own.  This act also provides exemption from superfund liability to businesses with less than 100 full-time employees existing for less than three years preceding the date of the first claim and to tax-exempt businesses.  For more information visit read the full text of the act. 

State

For an excellent summary of state programs and policies, please check with the Northeast-Midwest Institute (www.nemw.org). NEMW's State of the State Annual Report highlights each state's brownfields program including information on financing and attracting private investments. 

California: California Land Environmental Restoration and Reuse Act of 2001
The major aim of SB32 was to expedite the process of remediating brownfields.  This bill was produced as a result of a non-partisan coalition composed of public, private, for-profit, and not-for-profit interests.  It gives local government authorities the power to order or directly undertake the investigation and clean-up of brownfields sites.  It also grants statutory immunity to those performing a clean-up under the act.  In addition, the bill requires the California EPA to develop screening standards for common contaminants by December 31, 2004.

Maryland: Voluntary Clean-up Program (VCP) implemented in 1997
This act was established to promote economic development, especially in distressed urban areas, by creating new job opportunities, expanding the existing tax base, utilizing the existing infrastructure, and preventing urban sprawl.  In addition, the state provides free site assessment for publicly owned land and has placed limits on the liability of developers.
The state offers low-interest loans and grants for conducting environmental site assessments through the VCP.  In addition, sites can receive a 70 percent reduction on their taxes for up to five years.  Maryland's VCP program has helped remediate 38 brownfields, totaling 908 acres of land.  This land has then been used to create 60 businesses, which employ 2,000 people.

Michigan: Clean Michigan Initiative (CMI) of 1998
CMI provides funding to local government authorities for the investigation and remediation of brownfields, which will be used for identified economic development projects.  The initiative provides $255 million for brownfields clean-up, $60 million for sites with acute hazards, $20 million for sites with development potential for local government authorities, and $50 million for development of waterfront properties.  A 10 percent business tax credit is also available for up to 10 years, not to exceed $1 million.  In addition, urban communities have an opportunity to declare themselves an Obsolete Property Rehabilitation District, which enables them to offer 12 years of property tax abatement to businesses.

To date, 4,592 Baseline Environmental Assessments have been submitted and 214 brownfields grants and loans have been issued totaling $97.7 million.  All this has generated approximately 13,000 jobs and $2.3 million in private investment.