article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Brownfield Cleanup and Redevelopment Revolving Loan Fund Pilot Project Act of 1996''. SEC. 2. FINDINGS AND PURPOSES. (a) Findings.--The Congress finds the following: (1) Contaminated and underused or abandoned industrial sites in distressed communities are, economically, at a competitive disadvantage relative to greenfield sites, as capital for their cleanup and redevelopment may not be available. (2) Contaminated and underused and abandoned industrial properties located in distressed areas, owned by private, public, or nonprofit entities, often with significant economic development potential once cleaned up, are unable to secure initial financing for site remediation. (3) Considerable public benefits can accrue from such sites once cleaned up and brought back to productive reuse, especially those devoted to industrial purposes that employ environmentally sound practices. (4) Voluntary cleanup programs spur private sector cleanups when the property value is sufficient and its location favorable enough to make the additional costs of cleanup economically feasible, but this approach does not resolve the problems facing properties with little or no value, common among sites located in economically distressed areas. (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 certain industrial properties 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 minium, adequate opportunities for public participation, sufficient technical assistance, and oversight to ensure that cleanups comply with Federal and State laws, and certification to the owner and 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. (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 1996 and $7,500,000 for each of the fiscal years 1997 and 1998. SEC. 4. DEFINITIONS. For purposes of this Act the term ``eligible facility'' means a facility or property in a State that is determined by the State to have environmental contamination that-- (1) could prevent the timely use, development, or reuse of the facility or property; and (2) is limited in scope and can be comprehensively and readily evaluated. Such term shall not include any of the following: (A) A facility that is eligible for abatement action under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. (B) A facility that, as of the date of the enactment of this Act, is subject to Federal enforcement action under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.). (C) A facility included, or proposed for inclusion, on the National Priorities List or on the comprehensive environmental response, compensation, and liability inventory system (``CERCLIS'') that has been evaluated as high priority under the hazard ranking system. (D) 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. (E) A land disposal unit with respect to which a closure notification 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. (F) A facility subject to 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 is 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. (G) 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. (H) 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 1996 - Directs the Administrator of the Environmental Protection Agency to establish a pilot project to provide capitalization loans to States to establish or expand revolving loan funds that provide loans for voluntary environmental cleanups of eligible facilities (those determined by the State to have limited environmental contamination that can be readily and comprehensively evaluated and that could prevent the timely use, development, or reuse of the facility or property). Authorizes appropriations. Makes ineligible for such assistance facilities that are: (1) eligible for abatement actions, or subject to Federal enforcement action, under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980; (2) on or proposed for inclusion on the National Priorities List or evaluated as high priority under the hazard ranking system; (3) subject to certain actions, or unqualified to conduct certain hazardous waste disposal activities, under the Solid Waste Disposal Act; or (4) owned or operated by the United States.