SEN. VOINOVICH INTRODUCES BROWNFIELD SITE CLEANUP BILL
WASHINGTON, D.C. - U.S. Senator George V. Voinovich (R-OH), a member of the Senate Environment and Public Works Committee, today introduced the America's Brownfield Cleanup Act - legislation to provide incentives to clean up abandoned industrial sites, or Brownfields, across the country and put them back into productive use and preserve green space.
"Brownfield sites represent real environmental threats but also vital opportunities for job creation and economic development. Since they're frequently located in distressed areas where jobs are most needed, this legislation is critical," Sen. Voinovich said. "As the former mayor of Cleveland, I experienced firsthand the difficulties that cities face in redeveloping these sites for reuse. This bill is a vital step toward putting Brownfield sites back into use for new business creation and expansion."
The legislation provides $1 billion in federal tax credits - called environmental remediation credits - allocated to states according to population. These credits, which are transferable, would cover 50 percent of the qualified remediation expenditures at a qualified contaminated site in an eligible area. Eligible areas are local government areas with at least one census tract with a 20 percent poverty rate and Indian tribal lands.
"This legislation builds upon the success of state programs such as Ohio's voluntary cleanup program which, to date, has successfully cleaned up approximately 185 sites," Sen. Voinovich said. "My bill provides even more incentives to clean up Brownfield sites in order to provide better protection for the health and safety of our citizens and the environment. It also provides additional tools to recycle our urban wastelands, prevent urban sprawl and preserve our farmland and green space. We will be able to clean up industrial eyesores in our cities and make them more desirable and economically prosperous places to live."
Qualified remediation expenditures include:
Abatement or control of any hazardous substance as defined by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which was enacted in 1980, including petroleum and petroleum by-products. This is the same definition used in the 2002 Brownfields legislation; Demolition of any structure if any portion of the structure is demolished in the abatement; Removal and disposal of the contaminated property (debris); and Reconstruction of utilities.
In order to receive these credits, two approved plans must be in place: a remediation plan and a redevelopment plan. The remediation plan must be approved by the state environmental agency pursuant to a response program contained in CERCLA. As a result, the remediation plan will apply to those sites that are enrolled in state voluntary cleanup plans and are entitled to the liability protections provided by the 2002 Brownfields legislation. The redevelopment plan must be approved by the state development agency and demonstrate how the redevelopment will be beneficial to the state and local economy, as well as the local community. The state is to establish an allocation plan that lists the selection criteria to determine the priorities in providing the credits.
The plan shall include the following preferences:
Extent of poverty; Whether site is located in an enterprise zone or renewal community; Whether the site is located in the central business district; Extent of environmental remediation; Extent of redevelopment; Extent of financial commitment to the redevelopment; Amount of new employment resulting from the redevelopment; Whether a past owner/polluter is expected to provide at least 25 percent of the remediation expenditures.
The state is able to impose other conditions, such as bonding or insurance policies that cover the cost of the environmental remediation.
The bill is supported by the U.S. Conference of Mayors, the International Council of Shopping Centers, Empower America, American Council of Engineering Companies and the National Association of Home Builders.
http://voinovich.senate.gov/news_center/record.cfm?id=257001&