article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Brownfield Cleanup and Redevelopment Revolving Loan Fund Pilot Project Act of 1997''. SEC. 2. FINDINGS AND PURPOSES. (a) Findings.--The Congress finds: (1) Nationwide, older abandoned or under-used commercial and industrial sites known as brownfields are often overlooked for redevelopment because of real or perceived contamination from past commercial or industrial activities. (2) Reuse of these sites often requires site assessment and cleanup, adding costs and uncertainties to the redevelopment process, and prompting many developers to pursue cheaper, less complicated development options on undeveloped sites. (3) Brownfields are at a competitive disadvantage relative to greenfield sites, as capital for their cleanup and redevelopment may not be available. Often located in distressed areas, brownfields, owned by public, private, or nonprofit entities, are frequently unable to secure financing for site remediation. (4) States have created remedial action programs to allow a person to respond voluntarily to a release or suspected release of hazardous substances at low and medium priority facilities. Such programs have flourished due to the States' ability to streamline duplicative State and Federal regulatory requirements and affect a timely, cost-effective, and environmentally protective cleanup of sites. (5) Because of their experience in administering targeted loan assistance programs, States are in a good position to use Federal funds to capitalize revolving loan funds to support local cleanup and redevelopment projects. (b) Purpose.--The purpose of this Act is to establish a pilot project to revitalize distressed communities by providing loans for cleanup of eligible brownfield facilities and properties that are remediated through State voluntary cleanup programs and that have the potential to attract private investment, foster clean manufacturing, and create jobs for local residents. SEC. 3. PILOT PROJECT PROVIDING REVOLVING LOAN FUND FOR CLEANUPS UNDER STATE VOLUNTARY CLEANUP PROGRAMS. (a) Establishment of Loan Program.--The Administrator of the Environmental Protection Agency (hereinafter in this Act referred to as the ``Administrator'') shall establish a pilot project to provide a capitalization loan to one or more States that submit applications to the Administrator to establish or expand a State revolving loan fund for purposes of providing loans for voluntary environmental cleanups of eligible facilities. (b) Application for Loan.--An application for a capitalization loan under this section shall be in such form as the Administrator considers appropriate. At a minimum, the application shall include each of the following: (1) Evidence that the State is carrying out a voluntary cleanup program for eligible facilities. The Administrator shall ensure that the State voluntary program provides, at a minimum, adequate opportunities for meaningful public participation, sufficient technical assistance, and adequate oversight and enforcement authority to ensure that cleanups protect human health and the environment, adequate resources are available to carry out cleanup, and certification from the State to the owner or prospective purchaser that the cleanup is complete. (2) Evidence that the State will provide a matching share of at least 20 percent of the costs of such cleanup from either new or existing sources of State funding. (3) A description of the State's proposed revolving loan program and of the State's capability to manage the program. States may use interest income or loan repayments (in an amount equal to not more than 10 percent of their revolving loan fund amount) for program administrative purposes. At a minimum, the State's revolving loan program shall-- (A) provide loans to both public and private parties conducting voluntary cleanups under the State's voluntary cleanup program who are unable to secure loans from private lending institutions or other means of financing; (B) require that borrowers demonstrate credit worthiness and the ability to carry out the cleanup; and (C) give priority to loans for the purpose of cleaning up-- (i) facilities that are planned to be reused for industrial purposes that employ environmentally sound practices; and (ii) facilities that will generate jobs for contractors whose principal place of business is the political subdivision in which the facility is located or for laborers who reside in such political subdivisions. (4) A statement that the State will begin repayment of the loan within 5 years after receipt of the loan, and evidence of the State's ability to repay the loan. (5) A statement that a loan from the revolving loan fund will not be used to pay for any of the following: (A) New construction at previously undeveloped sites. (B) Environmental fines or penalties. (C) Speculative assessments or speculative rehabilitation at facilities with little or no potential for economic development. (6) Such other elements as the Administrator considers appropriate. (c) Amount of Loan.--The Administrator shall determine the distribution of funds among the eligible States. The amount of a capitalization loan made by the Administrator under this Act to a State may not exceed 15 percent of the amount available each year to all the eligible States. (d) Authorization.--There are authorized to be appropriated to the Administrator for purposes of making capitalization loans to States under the pilot project established by this section the sum of $5,000,000 for fiscal year 1998 and $7,500,000 for each of the fiscal years 1999 and 2000. SEC. 4. DEFINITIONS. For purposes of this Act, the term ``eligible facility'' means a facility or property that is a low- or medium-priority environmental hazard for the State, but whose environmental contamination is thought to be preventing the timely use, redevelopment, or reuse of the facility or property, and is thought to be limited in scope and readily assessable, except that such term shall not include any of the following: (1) A facility for which an abatement action has been taken or is scheduled to be taken under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 or for which an action has been taken or is scheduled to be taken under section 7003 of the Solid Waste Disposal Act. (2) A facility that is the subject of a Federal response action under section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.). (3) A facility included on the National Priorities List or proposed for inclusion and for which documentation for listing has been prepared by the State or the Administrator. (4) A facility required to have a permit under section 3005 of the Solid Waste Disposal Act that does not have a permit under that section and does not qualify for authorization to operate in interim status under subsection (e) of that section. (5) A land disposal unit with respect to which a closure requirement under subtitle C of the Solid Waste Disposal Act (42 U.S.C. 6921 et seq.) is submitted and closure requirements are specified in a closure plan or permit. (6) A facility that is the subject of a corrective action under section 3004(u) or 3008(h) of the Solid Waste Disposal Act (42 U.S.C. 5924(u) or 6928(h)) that has been evaluated as high priority under the Environmental Protection Agency's National Corrective Action Priority System as set forth in regulations under subtitle C of the Solid Waste Disposal Act. (7) A facility at which assistance for response activities may be obtained pursuant to subtitle I of the Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) from the Leaking Underground Storage Tank Trust Fund established under section 9508 of the Internal Revenue Code of 1986. (8) A facility owned or operated by a department, agency, or instrumentality of the United States.
summary: Brownfield Cleanup and Redevelopment Revolving Loan Fund Pilot Project Act of 1997 - Directs the Administrator of the Environmental Protection Agency to establish a pilot project of capitalization loans to States to establish or expand revolving loan funds for voluntary cleanup of eligible facilities. Defines "eligible facility," with exceptions, as a facility or property that is a low- or medium-priority environmental hazard for the State but whose environmental contamination is thought to be: (1) preventing the timely use, redevelopment, or reuse of the facility or property; and (2) limited in scope and readily assessable. Authorizes appropriations.