[House Report 107-448]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 107-448
======================================================================
BROWNFIELDS REDEVELOPMENT ENHANCEMENT ACT
_______
May 8, 2002.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Oxley, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
ADDITIONAL AND DISSENTING VIEWS
[To accompany H.R. 2941]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 2941) to facilitate the provision of assistance
by the Department of Housing and Urban Development for the
cleanup and economic redevelopment of brownfields, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 4
Hearings......................................................... 5
Committee Consideration.......................................... 5
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Committee Cost Estimate.......................................... 6
Congressional Budget Office Estimate............................. 6
Federal Mandates Statement....................................... 8
Advisory Committee Statement..................................... 9
Constitutional Authority Statement............................... 9
Applicability to Legislative Branch.............................. 9
Section-by-Section Analysis of the Legislation................... 9
Changes in Existing Law Made by the Bill, as Reported............ 10
Additional and Dissenting Views.................................. 13
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Brownfields Redevelopment Enhancement
Act''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) returning the Nation's brownfield sites to productive
economic use could generate more that 550,000 additional jobs
and up to $2,400,000,000 in new tax revenues for cities and
towns;
(2) redevelopment of brownfield sites and reuse of
infrastructure at such sites will protect natural resources and
open spaces;
(3) lack of funding for redevelopment is a primary obstacle
impeding the reuse of brownfield sites;
(4) the Department of Housing and Urban Development is the
agency of the Federal Government that is principally
responsible for supporting community development and
encouraging productive land use in urban areas of the United
States;
(5) grants under the Brownfields Economic Development
Initiative of the Department of Housing and Urban Development
provide local governments with a flexible source of funding to
pursue brownfields redevelopment through land acquisition, site
preparation, economic development, and other activities;
(6) to be eligible for such grant funds, a community must be
willing to pledge community development block grant funds as
partial collateral for a loan guarantee under section 108 of
the Housing and Community Development Act of 1974, and this
requirement is a barrier to many local communities that are
unable or unwilling to pledge such block grant funds as
collateral; and
(7) by de-linking grants for brownfields development from
section 108 community development loan guarantees and the
related pledge of community development block grant funds, more
communities will have access to funding for redevelopment of
brownfield sites.
(b) Purposes.--The purpose of this Act is to provide cities and towns
with more flexibility for brownfields development, increased
accessibility to brownfields redevelopment funds, and greater capacity
to coordinate and collaborate with other government agencies--
(1) by providing additional incentives to invest in the
cleanup and development of brownfield sites; and
(2) by de-linking grants for brownfields development from
community development loan guarantees and the related pledge of
community development block grant funds.
SEC. 3. BROWNFIELDS DEVELOPMENT INITIATIVE.
Title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended by adding at the end the following new
section:
``SEC. 123. BROWNFIELDS DEVELOPMENT INITIATIVE.
``(a) In General.--The Secretary may make grants under this section,
on a competitive basis as specified in section 102 of the Department of
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545), only
to eligible public entities (as such term is defined in section 108(o)
of this title) and Indian tribes for carrying out projects and
activities to assist the environmental cleanup and development of
brownfield sites.
``(b) Use of Grant Amounts.--Amounts from grants under this section
shall--
``(1) be used, as provided in subsection (a) of this section,
only for activities specified in section 108(a); and
``(2) be subject to the same requirements that, under section
101(c) and paragraphs (2) and (3) of section 104(b), apply to
grants under section 106.
``(c) Availability of Assistance.--The Secretary shall not require,
for eligibility for a grant under this section, that such grant amounts
be used only in connection or conjunction with projects and activities
assisted with a loan guaranteed under section 108.
``(d) Applications.--Applications for assistance under this section
shall be in the form and in accordance with procedures as shall be
established by the Secretary.
``(e) Selection Criteria and Leveraging.--The Secretary shall
establish criteria for awarding grants under this section, which may
include the extent to which the applicant has obtained other Federal,
State, local, or private funds for the projects and activities to be
assisted with grant amounts and such other criteria as the Secretary
considers appropriate. Such criteria shall include consideration of the
appropriateness of the extent of financial leveraging involved in the
projects and activities to be funded with the grant amounts.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated for grants under this section such sums as may be
necessary for each of fiscal years 2003, 2004, 2005, 2006, and 2007.''.
SEC. 4. CLARIFICATION OF BROWNFIELDS REDEVELOPMENT AS ELIGIBLE CDBG
ACTIVITY.
(a) Technical Correction.--The penultimate proviso of the first
undesignated paragraph of the item relating to ``Community Development
Block Grants Fund'' in title II of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997 (Public Law 104-204; 110 Stat. 2887) shall be
treated as having amended section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)) to read as such section was
in effect on September 30, 1995.
(b) Brownfields Redevelopment activities.--Section 105(a) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)), as
in effect pursuant to subsection (a) of this section, is amended--
(1) in paragraph (24), by striking ``and'' at the end;
(2) in paragraph (25), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(26) environmental cleanup and economic development
activities related to brownfield projects in conjunction with
the appropriate environmental regulatory agencies.''.
SEC. 5. PILOT PROGRAM FOR NATIONAL REDEVELOPMENT OF BROWNFIELDS.
Section 108(q) of the Housing and Community Development Act of 1974
(42 U.S.C. 5308(q)) is amended by adding at the end the following new
paragraph:
``(5) Pilot program for national redevelopment of
brownfields.--
``(A) In general.--Using any amounts made available
under this subsection, the Secretary may establish a
pilot program under which grants under this subsection
are used to develop, maintain, and administer
(including the payment of an entity or entities
selected pursuant to subparagraph (B)) a common loan
pool of development loans for brownfield redevelopment
projects made on behalf of eligible public entities
with the proceeds of obligations guaranteed under this
section, including related security and a common loans
loss reserve account, for the benefit of participants
in the pilot program.
``(B) Selection of program managers and
contractors.--The Secretary may select an entity or
entities on a competitive or noncompetitive basis to
carry out any of the functions involved in the pilot
program.
``(C) Terms for participation.--Participation by
eligible public entities in the pilot program shall be
under such terms and conditions as the Secretary may
require.
``(D) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary--
``(i) for grants under this subsection to be
used only in conjunction with the pilot program
under this paragraph; and
``(ii) for costs of carrying out the pilot
program under this paragraph and ensuring that
the program is carried out in an effective,
efficient, and viable manner.''.
SEC. 6. TECHNICAL AMENDMENT TO ALLOW USE OF CDBG FUNDS TO ADMINISTER
RENEWAL COMMUNITIES.
Section 105(a)(13) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)(13)) is amended by inserting ``and renewal
communities'' after ``enterprise zones''.
SEC. 7. APPLICABILITY.
The amendments made by this Act shall apply only with respect to
amounts made available for fiscal year 2003 and fiscal years thereafter
for use under the provisions of law amended by this Act.
Purpose and Summary
H.R. 2941, the Brownfields Redevelopment Enhancement Act of
2001, will increase access to brownfields redevelopment funds
for America's small communities by de-linking section 108 loan
guarantees from the Department of Housing and Urban
Development's (HUD's) Brownfields Economic Development
Initiative (BEDI) grants. The bill also authorizes HUD to
establish a pilot program for a common brownfields
redevelopment loan pool.
Background and Need for Legislation
There is widespread consensus over the need to cleanup an
estimated 500,000 ``brownfield'' sites across the country.
Brownfield sites are those where redevelopment is complicated
by potential environmental contamination, but that are less
seriously contaminated than those covered under the Superfund
Act (Public Law 96-510, as amended). Many believe that by
promoting the redevelopment of these sites and revitalizing the
communities around them, local jurisdictions would improve the
quality of life and the environment in these areas.
While some States have established programs to encourage
brownfields cleanup and redevelopment, liability involving the
sites remains controlled by the strict standards of the
Superfund law. Investors and developers have therefore been
reluctant to purchase brownfield sites, out of concern they
will become entangled in legal disputes and be forced to pay
for unexpected cleanups.
Both HUD and the Environmental Protection Agency (EPA)
currently administer brownfield programs, with EPA focusing on
assessment and cleanup and HUD focusing on redevelopment. HUD
administers grants through a program called the Brownfields
Economic Development Initiative (BEDI) program, which has been
helpful for large communities but which carries certain
conditions that make smaller communities hesitant to apply for
program funds.
On January 11, 2002, President Bush signed the ``Small
Business Liability Relief and Brownfields Revitalization Act,''
(Public Law 107-118) which provides up to $200 million a year
to States, local governments, and Indian tribes for brownfields
cleanup. The legislation, approved by a bipartisan coalition,
more than doubles the $92 million spent annually for
brownfields cleanup to $200 million. A liability measure within
the bill protects the new owners of restored brownfields from
having to pay any future cleanup costs. The legislation also
calls for the creation of a public record of brownfield sites
and encourages community involvement in cleanup and reuse. It
authorizes $50 million a year for grants to local and State
governments to start and enhance brownfields programs.
While that legislation has been widely hailed as a valuable
step forward on the brownfields issue, H.R. 2941 is
complementary legislation which addresses a different facet of
brownfields redevelopment.
The bill focuses on providing access to capital for local
entities that traditionally have had trouble obtaining
financing for brownfields redevelopment activities. Most
notably, H.R. 2941 eliminates the requirement that local
governments obtain section 108 loan guarantees as a condition
to receiving BEDI grant funding. De-linking BEDI grants from
section 108 loan guarantees is important because some small
cities have great difficulty in securing or are unable to
secure those guarantees.
H.R. 2941 also establishes a ``Pilot Program for National
Redevelopment of Brownfields.'' With this authority, the HUD
Secretary will be able to fund a common pool for economic
development loans available to eligible local governments and
distribute these loans on a competitive basis. Because the
newly-passed ``Small Business Liability Relief and Brownfields
Revitalization Act'' authorizes only $200 million with a $1
million cap on funds to any individual locality, the Pilot
Program funds will fill the gap for potential developers of the
other hundreds of thousand of brownfields sites across the
country.
In response to a request by Mr. Kanjorski, mine-scarred
lands are included in H.R. 2941 as eligible brownfields sites.
The Committee intends that HUD will continue its current
practice of consulting with other Federal agencies in carrying
out the Department's remediation and redevelopment activities
under its brownfields program.
Because of concerns over agency coordination of brownfields
site cleanup, the Committee believes that HUD should continue
to defer to the Federally directed and funded remedial cleanup
activities of the Environmental Protection Administration, and
other applicable Federal agencies, which are underway or about
to occur, in highly contaminated areas. This includes cleanups
covered by the Comprehensive Environmental Response
Compensation and Liability Act (CERCLA, or Superfund), the
Resource Conservation and Recovery Act, the Federal Water
Pollution Control Act, the Toxic Substances Control Act, and
the Safe Drinking Water Act. Further, HUD will continue to
respect orders issued by EPA, and others, pursuant to their
jurisdiction over highly contaminated areas, in carrying out
the Department's brownfields program.
This legislation is particularly important in light of the
President's HUD budget request which proposes decoupling the
brownfields program from the section 108 loan guarantee program
to attract more participants. This mirrors the initiative taken
in H.R. 2941.
Hearings
The Subcommittee on Housing and Community Opportunity held
a hearing on March 6, 2002 on H.R. 2941, the Brownfields
Redevelopment Enhancement Act of 2001. The following witnesses
testified: The Honorable Roy Bernardi, Assistant Secretary for
Community Planning and Development, U.S. Department of Housing
and Urban Development; The Honorable Lydia Reid, Mayor of
Mansfield, Ohio; The Honorable Frederick M. Kalisz, Jr., Mayor
of New Bedford, Massachusetts; Mr. Charlie Bartsch, Executive
Director, Northeast-Midwest Coalition; Mr. John Murphy,
Executive Director, National Association for County Community
and Economic Development; Mr. Robert Colangelo, Executive
Director, National Brownfields Association; and Mr. Charlie
Kasko, Regional Sales Manager, Avis America (on behalf of the
National Association of Homebuilders).
Committee Consideration
On March 14, 2002, the Subcommittee on Housing and
Community Opportunity met in open session and approved H.R.
2941, as amended, for full Committee consideration by a voice
vote.
On April 11, 2002, the Committee on Financial Services met
in open session and ordered H.R. 2941, with an amendment,
reported to the House with a favorable recommendation by a
voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken with in conjunction with the
consideration of this legislation. A motion by Mr. Oxley to
report the bill to the House with a favorable recommendation
was agreed to by a voice vote.
The following amendments were considered:
An amendment by Mr. Oxley, no. 1, naming brownfields
redevelopment as an eligible CDBG activity, was agreed
to by a voice vote.
An amendment by Mr. LaFalce, no. 2, allowing CDBG
funds to administer renewal communities, was agreed to
by a voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a hearing and made
findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
The Department of Housing and Urban Development will use
the authority granted by this legislation to accelerate and
improve the redevelopment of brownfields sites.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that this
legislation would result in no new budget authority,
entitlement authority, or tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 2, 2002.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2941, the
Brownfields Redevelopment Enhancement Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Susanne S.
Mehlman (for federal costs), and Leo Lex (for the state and
local impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 2941--Brownfields Redevelopment Enhancement Act
Summary: CBO estimates that implementing H.R. 2941 would
cost $96 million over the next five years, assuming the
appropriation of the necessary amounts. Of this amount, $65
million would be used by the Department of Housing and Urban
Development (HUD) to provide grants to local and tribal
governments to support the environmental cleanup and economic
development of brownfield sites. (Brownfields are properties
where the presence, or potential presence, of a hazardous
substance complicates the expansion or redevelopment of the
property.)
The remaining $31 million of the bill's estimated cost of
$96 million would be used by HUD to establish a pilot program
to encourage more communities to support redevelopment efforts
at brownfield sites. Under such a program, communities would
use their section 108 loan guarantee funds in conjunction with
a brownfields grant to make loans to third parties who are
interested in redeveloping brownfield sites. In turn, HUD would
pool together such loans and then use the majority of the
appropriated funds to establish a shared loss reserve for these
new loans. Participating communities would then no longer have
to use their community block grant development funds to pay for
defaults on such loans, and they could receive a share of this
reserve after any default payments are made.
Enacting H.R. 2491 would not affect direct spending or
receipts; therefore, pay-as-you-go procedures would not apply.
H.R. 2941 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The grant programs in the bill would provide benefits to local
and the tribal governments engaged in the redevelopment of
brownfield sites.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2941 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2002 2003 2004 2005 2006 2007
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Brownfields Redevelopment Spending Under Current Law:
Budget Authority \1\.................................. 25 0 0 0 0 0
Estimated Outlays..................................... 20 21 19 14 8 5
Proposed Changes
Brownfields Redevelopment Grants:
Estimated Authorization Level..................... 0 25 25 25 25 25
Estimated Outlays................................. 0 1 6 14 20 24
Pilot Program:
Estimated Authorization Level..................... 0 11 11 11 0 0
Estimated Outlays................................. 0 2 6 9 9 5
Total Changes:
Estimated Authorization Level..................... 0 36 36 36 25 25
Estimated Outlays................................. 0 3 12 23 29 29
Brownfields Redevelopment Spending Under H.R. 2941:
Estimated Authorization Level \1\..................... 25 36 36 36 25 25
Estimated Outlays..................................... 20 24 31 37 37 34
----------------------------------------------------------------------------------------------------------------
\1\ The 2002 level is the amount appropriated for that year for the Brownfields Redevelopment Program.
Basis of estimate: For purposes of this estimate, CBO
assumes that the bill will be enacted before the start of
fiscal year 2003 and that necessary amounts will be
appropriated for each fiscal year. Estimated outlays are based
on historical spending patterns of similar HUD programs.
CBO estimates that HUD would use an appropriation of $25 a
year over the 2003-2007 period to provide grants to public
entities for assistance in the cleanup and redevelopment of
brownfield sites. Enacting this legislation also would remove
the requirement that brownfield redevelopment grants be used in
conjunction with section 108 community development loan
guarantees.
According to HUD, it would take about three years to
implement a pilot program aimed at encouraging additional
redevelopment efforts at brownfield sites. Based on the number
of communities likely to participate and on previous HUD
proposals to establish such a pilot program, CBO estimates that
HUD would need $11 million annually over the next three years.
If appropriated, we estimate that such funding would be spent
over the next six years at rates similar to the disbursement
rate for section 108 loan guarantees.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 2941
contains no intergovernmental or private-sector mandates as
defined in UMRA. The grant programs in the bill would provide
benefits to local and tribal governments engaged in the
redevelopment of brownfield sites.
Estimate prepared by: Federal Costs: Susanne S. Mehlman;
Impact on state, Local, and Tribal Governments: Leo Lex; and
Impact on the Private Sector: Paige Piper/Bach.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
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.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).
Applicability to 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.
Section-by-Section Analysis of the Legislation
Section 1. Short Title
This section provides the short title of the bill, the
``Brownfields Redevelopment Enhancement Act''.
Section 2. Findings and Purposes
This section makes certain findings regarding the benefits
of brownfields redevelopment and a change to current HUD
programs that would enable communities to more effectively work
with HUD on brownfields redevelopment. This section also sets
forth the purposes of the bill.
Section 3. Brownfields Development Initiative
This section amends Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) to allow the
Secretary to make grants to public entities for projects and
activities to assist the environmental cleanup and economic
development of brownfield sites. Grants will be made (a) based
on application procedures established by the Secretary; (b)
only for activities specified in section 108(a); (c) with
consideration of the extent of financial leveraging involved in
funded projects; and (d) without the necessity of a section 108
loan guarantee. Appropriations are authorized for grants for
each fiscal year 2003 through 2007.
Section 4. Clarification of Brownfields Redevelopment as Eligible CDBG
Activity
This section makes a technical correction to title II of
the Department of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997
(Public Law 104-204; 110 Stat. 2887). This section also amends
section 105(a) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)) to include environmental cleanup and
economic development activities related to brownfields projects
in conjunction with the appropriate environmental regulatory
agencies.
Section 5. Pilot Program for National Redevelopment of Brownfields
This section amends section 108(q) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5308(q)) by adding
that the Secretary may establish a pilot program to develop,
maintain, and administer a common loan pool for economic
development loans to eligible public entities. Entities may be
selected on a competitive or noncompetitive basis under the
terms and conditions established by the Secretary. Sufficient
appropriations are authorized to ensure the viability of the
program.
Section 6. Technical Amendment to Allow Use of CDBG Funds to Administer
Renewal Communities
This section amends section 105(a)(13) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) to
allow the use of CDBG funds to administer renewal communities.
Section 7. Applicability
This section provides that the bill will apply only with
respect to amounts made available for fiscal year 2003 and
fiscal years thereafter for use under the provisions of the law
amended by the legislation.
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):
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
* * * * * * *
TITLE I--COMMUNITY DEVELOPMENT
* * * * * * *
ELIGIBLE ACTIVITIES
Sec. 105. (a) Activities assisted under this title may
include only--
(1) * * *
* * * * * * *
(13) payment of reasonable administrative costs
related to establishing and administering federally
approved enterprise zones and renewal communities and
payment of reasonable administrative costs and carrying
charges related to (A) administering the HOME program
under title II of the Cranston-Gonzalez National
Affordable Housing Act; and (B) the planning and
execution of community development and housing
activities, including the provision of information and
resources to residents of areas in which community
development and housing activities are to be
concentrated with respect to the planning and execution
of such activities, and including the carrying out of
activities as described in section 701(e) of the
Housing Act of 1954 on the date prior to the date of
enactment of the Housing and Community Development
Amendments of 1981;
* * * * * * *
(24) provision of direct assistance to facilitate and
expand homeownership among persons of low and moderate
income (except that such assistance shall not be
considered a public service for purposes of paragraph
(8)) by using such assistance to--
(A) subsidize interest rates and mortgage
principal amounts for low- and moderate-income
homebuyers;
(B) finance the acquisition by low- and
moderate-income homebuyers of housing that is
occupied by the homebuyers;
(C) acquire guarantees for mortgage financing
obtained by low- and moderate-income homebuyers
from private lenders (except that amounts
received under this title may not be used under
this subparagraph to directly guarantee such
mortgage financing and grantees under this
title may not directly provide such
guarantees);
(D) provide up to 50 percent of any
downpayment required from low- or moderate-
income homebuyers; or
(E) pay reasonable closing costs (normally
associated with the purchase of a home)
incurred by a low- or moderate-income
homebuyers; [and]
(25) lead-based paint hazard evaluation and
reduction, as defined in section 1004 of the
Residential Lead-Based Paint Hazard Reduction Act of
1992[.]; and
(26) environmental cleanup and economic development
activities related to brownfield projects in
conjunction with the appropriate environmental
regulatory agencies.
* * * * * * *
GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY
Sec. 108. (a) * * *
* * * * * * *
(q) Economic Development Grants.--
(1) * * *
* * * * * * *
(5) Pilot program for national redevelopment of
brownfields.--
(A) In general.--Using any amounts made
available under this subsection, the Secretary
may establish a pilot program under which
grants under this subsection are used to
develop, maintain, and administer (including
the payment of an entity or entities selected
pursuant to subparagraph (B)) a common loan
pool of development loans for brownfield
redevelopment projects made on behalf of
eligible public entities with the proceeds of
obligations guaranteed under this section,
including related security and a common loans
loss reserve account, for the benefit of
participants in the pilot program.
(B) Selection of program managers and
contractors.--The Secretary may select an
entity or entities on a competitive or
noncompetitive basis to carry out any of the
functions involved in the pilot program.
(C) Terms for participation.--Participation
by eligible public entities in the pilot
program shall be under such terms and
conditions as the Secretary may require.
(D) Authorization of appropriations.--There
are authorized to be appropriated such sums as
may be necessary--
(i) for grants under this subsection
to be used only in conjunction with the
pilot program under this paragraph; and
(ii) for costs of carrying out the
pilot program under this paragraph and
ensuring that the program is carried
out in an effective, efficient, and
viable manner.
* * * * * * *
SEC. 123. BROWNFIELDS DEVELOPMENT INITIATIVE.
(a) In General.--The Secretary may make grants under this
section, on a competitive basis as specified in section 102 of
the Department of Housing and Urban Development Reform Act of
1989 (42 U.S.C. 3545), only to eligible public entities (as
such term is defined in section 108(o) of this title) and
Indian tribes for carrying out projects and activities to
assist the environmental cleanup and development of brownfield
sites.
(b) Use of Grant Amounts.--Amounts from grants under this
section shall--
(1) be used, as provided in subsection (a) of this
section, only for activities specified in section
108(a); and
(2) be subject to the same requirements that, under
section 101(c) and paragraphs (2) and (3) of section
104(b), apply to grants under section 106.
(c) Availability of Assistance.--The Secretary shall not
require, for eligibility for a grant under this section, that
such grant amounts be used only in connection or conjunction
with projects and activities assisted with a loan guaranteed
under section 108.
(d) Applications.--Applications for assistance under this
section shall be in the form and in accordance with procedures
as shall be established by the Secretary.
(e) Selection Criteria and Leveraging.--The Secretary shall
establish criteria for awarding grants under this section,
which may include the extent to which the applicant has
obtained other Federal, State, local, or private funds for the
projects and activities to be assisted with grant amounts and
such other criteria as the Secretary considers appropriate.
Such criteria shall include consideration of the
appropriateness of the extent of financial leveraging involved
in the projects and activities to be funded with the grant
amounts.
(f) Authorization of Appropriations.--There are authorized to
be appropriated for grants under this section such sums as may
be necessary for each of fiscal years 2003, 2004, 2005, 2006,
and 2007.
* * * * * * *
ADDITIONAL VIEWS
H.R. 2941, the Brownfields Redevelopment Enhancement Act,
is important legislation that will assist in the redevelopment
of abandoned contaminated industrial sites in our nation's
communities. During debate on this legislation within the
Financial Services Committee, however, the lack of a definition
of what constituted brownfields concerned me.
More specifically, I wanted to ensure that the Department
of Housing and Urban Development (HUD) would consider the
cleanup of mine-scarred land eligible for funding within its
brownfields program. Within my congressional district, we have
significant amounts of abandoned mine land, some of it located
in or near town or city centers, and therefore ripe for
economic development opportunities. Some of this land is also
contaminated or potentially contaminated, sometimes having
become a dumping ground for other waste, and it often
contributes to water pollution, particularly acid-mine
drainage. The redevelopment of this under-used land through
HUD's brownfields program could help to improve the economic
climate of the region.
Additionally, when Congress considered the brownfields law
last year affecting the Environmental Protection Agency's
programs, we provided for the eligibility of mine-scarred land.
I therefore wanted to ensure parity between the agencies'
programs to facilitate the efficient use of government
resources to reclaim land.
As a result of my concerns, I worked with the Chairman of
the Financial Services Committee during our deliberations on
April 11, 2002 over H.R. 2941 to develop and submit a colloquy
for the record. The text of that colloquy concerning the
definition of brownfields follows:
Mr. Kanjorski. Mr. Chairman, it was my intent this
morning to introduce an amendment to H.R. 2941, the
Brownfields Redevelopment Act, that would provide a
definition of brownfields for use by HUD in carrying
out its important brownfields program.
As you may know, on December 20, 2001, the House
passed by voice vote H.R. 2869, the Small Business
Liability Relief and Brownfields Revitalization Act.
Included within this bill is a broad and inclusive
definition of brownfields that was the result of
bipartisan negotiation. This bill was signed into law
by President Bush in January, 2002.
My interest in this subject goes back many years
because of my desire to see a broad definition of
brownfields that specifically includes mine-scarred
lands. From my perspective, the expansion of the
definition to include excavation of culm banks and the
removal of other mining waste at abandoned mine sites
will benefit business, generate jobs, improve the
environment, and improve the health and economy of
thousands of communities across the nation.
Mr. Chairman, the bill before us today is a good bill
and I support it. It is my understanding that we will
work together before the legislation is brought to the
Floor to address this critical issue.
Mr. Oxley. We will be pleased to work with you on
this issue.
In closing, I am pleased that the Chairman of the Committee
recognizes the importance of this issue to my congressional
district. I look forward to working with him and my other
colleagues to include a brownfields definition that
incorporates mine-scarred land in this critical legislation
before it comes to the Floor.
Paul E. Kanjorski.
DISSENTING VIEWS
H.R. 2941, the Brownfields Redevelopment Enhancement Act,
addresses an important problem, the need to clean up
``brownfields,'' sites whose redevelopment is complicated by
environmental damage. However, the legislation accomplishes its
goal by expanding the federal government's unconstitutional
control over matters properly left to state and local
governments as well as removing responsibility for brownfield
clean-ups from those who caused the damage. Thus, this
legislation violates basic constitutional principles and
fundamental precepts of justice. H.R. 2941 also embraces an
inefficient way of accomplishing the worthy objective of
restoring brownfields to a pristine condition.
My primary opposition to this bill is based on its creation
of a new ``pilot program for national redevelopment of
brownfields.'' A new federal program means increased federal
funding and, inevitably, increased federal control. Funding
leads to control as the recipients of the funding must be
careful to follow all federal rules and ``guidelines,'' lest
they lose their federal funds. Thus, innovative ways of
restoring environmentally damaged land will not be implemented,
for fear that they will not meet with the approval of federal
``experts.''
Instead of attempting to address the brownfield situation
through a bureaucratized one-size-fits all approach, Congress
should allow states, local communities, and the private sector
to determine for themselves how to deal with brownfields.
Questions such as allocation of liability among multiple
owners, or who should assume responsibility when the original
tortfeasor cannot be identified or lacks the assets to pay for
the clean-up, can be resolved through application of
traditional concepts of contract and property law. Applying
contract and property law at the state and local level is a
more efficient way of solving the problem of brownfields than
expanding the federal bureaucracy.
Creating more federal programs, financed by additional
taxation, is not only an inefficient way to clean up
brownfields, it also violates basic constitutional principles.
Congress has no constitutional authority to intervene in this
issue, in fact, under the 9th and 10th amendments to the
Constitution, Congress is explicitly forbidden to operate this
type of program.
Furthermore, forcing taxpayers, who had nothing to do with
damaging the lands in question, to pay for these clean-ups is
an unjust abuse of the taxing power. Fundamental principles of
justice would seem to demand that those who damaged the land
pay for the clean up. There is also a practical consideration
in that when land owners know that the burden of cleaning up
polluted land will be paid for by the taxpayers they are less
likely to take steps to avoid damaging the land. Thus a
taxpayer-funded brownfield clean-up program may result in the
creation of more brownfields!
In conclusion, though I recognize the problem created by
the brownfields, I cannot support H.R. 2941. This bill furthers
the unconstitutional federal role in brownfield clean-ups and
violates fundamental principles of justice by forcing innocent
taxpayers to bear the cost of those clean-ups. Instead of
expanding federal intrusion into this area, Congress should
obey the commands of the Constitution and allow the states,
local governments, and the private sector to apply traditional
concepts of contract and property law to find innovative ways
to clean up brownfields.
Ron Paul.