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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.

           *       *       *       *       *       *       *