H.R. 1750, THE COMMUNITY REVITALIZATION AND BROWNFIELDS CLEANUP ACT OF 1999

FUNDING FOR BROWNFIELDS ASSESSMENT AND CLEANUP

(A) Site Assessment grants are authorized to local governments (including redevelopment authorities) for a maximum of $500,000 per grant annually. The grant is for the purpose of assessing brownfield sites to determine the level and nature of any contamination. The bill authorizes $35 million per year for five years from general revenues.

(B) Revolving Loan Fund grants are authorized to local governments (including redevelopment authorities) in the amount of $500,000 annually with EPA discretion to increase the amount to $1,000,000 where particularly significant environmental and economic benefits would be achieved. The purpose of the grant is to capitalize local government revolving loan funds for actual cleanup of brownfields properties. The bill authorizes $65 million per year for five years from general revenues.

SUPERFUND LIABILITY PROTECTIONS TO ASSIST BROWNFIELDS REDEVELOPMENT

The bill provides three specific liability protections:

1. Prospective Purchaser Protection -- a new purchaser or developer of contaminated property will not be liable under Superfund if he performs a due diligence inspection of the property, provides access to persons performing the cleanup, and is not affiliated with the person who is responsible for creating the contamination.

2. Innocent Landowner Protection -- the bill establishes criteria to define the term "all appropriate inquiry" to provide certainty to persons who are innocent landowners. The bill adopts the environmental assessment standards established by the American Society for Testing and Materials which are widely supported and used by the real estate industry today.

3. Contiguous Property Owner Protection -- the bill creates a defense to liability for a landowner where the contamination came from adjoining property and he did not cause or contribute to the contamination on the adjoining property. For example, if a plume of contaminated groundwater moves under a landowners property from neighboring property where the contamination originated, the landowner would not be liable if he takes appropriate care with regard to the contamination.

VOLUNTARY CLEANUP PROVISIONS

The bill authorizes $15 million each year for five years to assist the states in developing their voluntary cleanup programs.

In addition to the liability relief provided above, in states that have a qualified voluntary cleanup program, the bill limits the Federal government’s ability to sue any person associated with contaminated property cleaned up under the state program. The only exceptions are (1) where the site may pose an imminent and substantial endangerment to health or the environment, (2) the state requests that the federal government take action, (3) conditions were unknown at the time of cleanup and those conditions indicate that the cleanup is not protective of human health or the environment, or (4) cleanup of the site is no longer protective because of a change in use of the site.

The bill also "grandfathers" existing agreements between the states and EPA with respect to voluntary cleanup programs.