[DOCID: f:hr608p1.109]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]
109th Congress Rept. 109-608
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
BROWNFIELDS REVITALIZATION ACTIVITIES AND STATE RESPONSE PROGRAMS
_______
July 28, 2006.--Ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 5810]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5810) to amend the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
to authorize funding for brownfields revitalization activities
and State response programs, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. BROWNFIELDS REVITALIZATION FUNDING.
Section 104(k) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9604(k)) is
amended--
(1) in paragraph (7)(D) by inserting ``and every 4 years
thereafter,'' after ``subsection,''; and
(2) by striking paragraph (12) and inserting the following:
``(12) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $200,000,000
for each of fiscal years 2002 through 2012.''.
SEC. 2. STATE RESPONSE PROGRAMS.
Section 128(a)(3) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9628(a)(3)) is
amended by striking ``2006'' and inserting ``2012''.
SEC. 3. RANKING OF BROWNFIELD GRANT APPLICATIONS.
Section 104(k)(5)(C) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9604(k)(5)(C)) is
amended by adding at the end the following:
``(xi) The extent to which the grant would
implement green building standards, including
the use of energy efficient building
standards.''.
Purpose of the Legislation
As the authorization for brownfields grants under the
Comprehensive Environmental Response, Compensation and
Liability Act of 1980 expires at the end of 2006, the purpose
of H.R. 5810 is to reauthorize the existing program.
Background and Need for Legislation
Brownfields are properties where the expansion,
redevelopment, or reuse may be complicated by the presence or
potential presence of a hazardous substance, pollutant or
contaminant. Types of brownfields include inactive factories,
gas stations, salvage yards, or abandoned warehouses. These
sites potentially drive down property values, provide little or
no tax revenue, and contribute to community blight. There are
estimated to be 450,000 to one million brownfields sites in the
United States. Redevelopment of these abandoned sites can
promote economic development, revitalize neighborhoods, enable
the creation of public parks and open space, and preserve
existing properties, including undeveloped green spaces.
Prior to enactment of the Brownfields Revitalization and
Environmental Restoration Act of 2001, many potential lenders,
investors, and developers were reluctant to become involved
with brownfields sites because they feared environmental
liability through laws such as the Comprehensive Environmental
Response, Compensation, and Liability Act (Superfund). This
uncertainty over liability protection and standards for cleanup
was identified as a hindrance to the redevelopment of
brownfields. Investors often instead turned to green spaces on
the outskirts of cities for new development opportunities.
In 2001, Congress created specific authority to address
brownfields with the Brownfields Revitalization and
Environmental Restoration Act of 2001, which was title II of
the Small Business Liability Relief and Brownfields
Revitalization Act. This became Public Law 107-118 in January
2002. This legislation amended the Comprehensive Environmental
Response, Compensation, and Liability Act (Superfund) to
authorize funding through EPA for brownfields assessment and
cleanup grants, provide liability protections, and increase
support for State and tribal voluntary cleanup programs. The
authorization for brownfield grants under this law expires at
the end of Fiscal Year 2006.
The Brownfields Revitalization and Environmental
Restoration Act provides grant authority totaling $250 million
annually. This includes $200 million annually for assessment,
cleanup, revolving loan funds, research, and job training. Of
that amount, $50 million, or 25 percent of appropriated funds
if less than the fully authorized level, is set aside for
assessment and cleanup of petroleum contaminated sites.
Assessment grants are limited to $200,000 per site except in
some cases, where due to size and contamination level, the
limit is $350,000. The cleanup grants can be used to capitalize
a revolving loan fund or used directly to remediate sites. Each
cleanup grant is limited to $1 million.
The Brownfields Program generally has been well received by
the Environmental Protection Agency, States, communities,
investors, and developers. Since authorization of the program,
Congress has allocated approximately $600 million in
brownfields site assessments, remediation, and State response
programs. This investment, coupled with the Environmental
Protection Agency's efforts prior to authorization, has
leveraged $8.2 billion in cleanup and redevelopment dollars, a
better than 10-to-1 return on investment. This high return on
investment is because the Environmental Protection Agency is
often just one of several funding sources for brownfields
assessment and cleanup. These grants are used in conjunction
with funding from state, local, private, and other federal
sources to address brownfield sites. The program has resulted
in the assessment of more than 8,000 properties and helped
create more than 37,000 jobs. According to a 2001 study
conducted by George Washington University, every acre of
brownfields redevelopment saves more than four acres of
greenspace.
Summary of the Legislation
Section 1. Brownfields revitalization funding
Section 1 requires the Inspector General of the
Environmental Protection Agency to provide to Congress every
four years a report detailing the management of the Brownfields
Program and a description of the allocation of funds through
its grant program. In addition, section 1 reauthorizes section
104(k) of the Comprehensive Environmental Response,
Compensation and Liability Act (Brownfields Revitalization
Funding) through 2012 at the current level of $200,000,000
annually.
This section strikes the provision that requires 25 percent
of available funding to be used for characterization,
assessment, and remediation of facilities where petroleum is
the cause for site contamination. While petroleum sites are
still eligible for funding, the Committee believes that these
sites should not be subject to a mandatory set-aside and should
have to compete with other eligible sites for priority and
funding.
The Committee recommends that the Environmental Protection
Agency review its procedures on the awarding grants and
encourages the Agency to be more flexible in two areas. First,
the Committee encourages the Agency, if practicable, to award
grants more than once a year. Second, the Committee encourages
the Agency to award several multiple purpose grants annually,
not grants solely for assessment or solely for cleanup. The
Committee believes that the Environmental Protection Agency has
the administrative authority to undertake these activities and
no legislative action is necessary.
Section 2. State response programs
Section 2 reauthorizes Section 128(a)(3) of the
Comprehensive Environmental Response, Compensation, and
Liability Act (State Response Programs) through 2012 at the
current level of $50,000,000 annually.
Section 3. Ranking of brownfield grant applications
Section 3 amends section 104(k)(5)(C) of the Comprehensive
Environmental Response, Compensation, and Liability Act to
encourage green building standards and energy efficient
building standards when ranking eligible applicants for
brownfields grants. This provision codifies Environmental
Protection Agency's current administrative practice of using
green building technology and energy efficient building
standards when ranking applicants.
Legislative History and Committee Consideration
The Committee on Transportation and Infrastructure met in
open session on July 19, 2006, and ordered H.R. 5810 reported,
with an amendment, to the House by voice vote.
Rollcall Votes
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each rollcall vote on a motion to
report and on any amendment offered to the measure or matter,
and the names of those members voting for and against. There
were no recorded votes taken in connection with ordering H.R.
5810 reported. A motion to order H.R. 5810 reported to the
House was agreed to by voice vote.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
section 308(a) of the Congressional Budget Act of 1974, the
Committee references the report of the Congressional Budget
Office included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objective of this legislation is to
encourage and create incentives for the cleanup and subsequent
redevelopment of brownfields sites.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
5810 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 28, 2006.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5810, a bill to
amend the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 to authorize funding for brownfields
revitalization activities and state response programs, and for
other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Susanne
Mehlman and Leigh Angres.
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
H.R. 5810--A bill to amend the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 to authorize funding
for brownfields revitalization activities and state response
programs, and for other purposes
Summary: H.R. 5810 would authorize the appropriation of
$250 million a year over the 2007-2012 period to the
Environmental Protection Agency (EPA) for brownfields
revitalization grants and programs. (Brownfields are properties
where the presence, or potential presence, of a hazardous
substance complicates the expansion or redevelopment of the
property.) Assuming appropriation of the authorized amounts,
CBO estimates that carrying out these programs would cost $13
million in 2007 and $626 million over the 2007-2011 period
(additional amounts would be spent after 2011). Enacting H.R.
5810 would not affect direct spending or revenues.
H.R. 5810 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA);
the bill would benefit state, local, and tribal governments,
and any cost would be incurred voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5810 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------
2006 2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for Brownfields Programs:
Budget Authority a.......................................... 162 0 0 0 0 0
Estimated Outlays........................................... 120 153 137 80 24 0
Proposed Changes:
Brownfields Cleanup Grants:
Authorization Level..................................... 0 200 200 200 200 200
Estimated Outlays....................................... 0 10 40 100 160 190
State and Tribal Cleanup Programs:
Authorization Level..................................... 0 50 50 50 50 50
Estimated Outlays....................................... 0 3 10 25 40 48
Total Changes:
Authorization Level..................................... 0 250 250 250 250 250
Estimated Outlays....................................... 0 13 50 125 200 238
Spending Under H.R. 5810:
Estimated Authorization Level............................... 162 250 250 250 250 250
Estimated Outlays........................................... 120 166 187 205 224 238
----------------------------------------------------------------------------------------------------------------
a The 2006 level is the amount appropriated for that year for all EPA brownfields programs.
Basis of estimate: For this estimate, CBO assumes that the
authorized amounts will be appropriated for each year.
Estimated outlays are based on historical spending patterns for
EPA's brownfields programs.
H.R. 5810 would authorize the appropriation of $250 million
annually over the 2007-2012 period for EPA's brownfields
restoration activities. The bill would maintain the current
authorization level of $200 million for brownfields cleanup
grants and $50 million for state and tribal voluntary cleanup
programs, but would remove the requirement that 25 percent of
appropriated funds be directed to petroleum-contaminated sites.
In addition, H.R. 5810 would require EPA to submit reports to
the Congress every four years detailing the management of the
brownfields programs and the allocation of funding. Assuming
appropriation of the authorized amounts, CBO estimates that
implementing the bill would cost $13 million in 2007 and $626
million over the 2007-2011 period (additional amounts wou]d be
spent after 2011).
Intergovernmental and private-sector impact: H.R. 5810
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments that
participate in programs to remediate brownfield sites would
benefit from grant funds reauthorized in the bill. Any costs
incurred to participate in those grant programs would be
voluntary.
Estimate prepared by: Federal Costs: Susanne Mehlman and
Leigh Angres. Impact on State, Local, and Tribal Governments:
Lisa Ramirez-Branum. Impact on the Private Sector: Tyler
Kruzich.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 5810 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT
OF 1980
* * * * * * *
TITLE I--HAZARDOUS SUBSTANCES RELEASES, LIABILITY, COMPENSATION
* * * * * * *
RESPONSE AUTHORITIES
Sec. 104. (a) * * *
* * * * * * *
(k) Brownfields Revitalization Funding.--
(1) * * *
* * * * * * *
(5) Grant applications.--
(A) * * *
* * * * * * *
(C) Ranking criteria.--The Administrator
shall establish a system for ranking grant
applications received under this paragraph that
includes the following criteria:
(i) * * *
* * * * * * *
(xi) The extent to which the grant
would implement green building
standards, including the use of energy
efficient building standards.
* * * * * * *
(7) Audits.--
(A) * * *
* * * * * * *
(D) Report to congress.--Not later than 3
years after the date of the enactment of this
subsection, and every 4 years thereafter, the
Inspector General of the Environmental
Protection Agency shall submit to Congress a
report that provides a description of the
management of the program (including a
description of the allocation of funds under
this subsection).
* * * * * * *
[(12) Funding.--
[(A) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this subsection $200,000,000 for each of fiscal
years 2002 through 2006.
[(B) Use of certain funds.--Of the amount
made available under subparagraph (A),
$50,000,000, or, if the amount made available
is less than $200,000,000, 25 percent of the
amount made available, shall be used for site
characterization, assessment, and remediation
of facilities described in section
101(39)(D)(ii)(II).]
(12) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $200,000,000 for each of fiscal years 2002
through 2012.
* * * * * * *
SEC. 128. STATE RESPONSE PROGRAMS.
(a) Assistance to States.--
(1) * * *
* * * * * * *
(3) Funding.--There is authorized to be appropriated
to carry out this subsection $50,000,000 for each of
fiscal years 2002 through [2006] 2012.
* * * * * * *
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