The Environmental Protection Agency(EPA) defines brownfields as abandoned, idled, or under-used industrial and commercial facilitieswhere expansion or redevelopment is complicated by real or perceived environmentalcontamination. The brownfields program is not specifically mentioned in the Comprehensive EnvironmentalResponse, Compensation, and Liability Act (CERCLA, or the Superfund law) -- it was createdadministratively by EPA. In 2001, the Senate passed S. 350 ( S.Rept.107-2 ), which would provide the statutory authority for the program, $250 million per year forvarious brownfield initiatives, and relief from Superfund liability for some property owners, amongother things. It has changed the way it keeps track of potentially contaminated sites, and hasissued guidances to clarify the situations where it will use its enforcement discretion and not bringlegal action to force cleanups, such as against prospective purchasers of brownfields. The agency awards grants for the brownfields assessment pilots on a competitive basis. To assure that residents ofbrownfields communities benefit from the industrial and commercial activities associated with sitecleanup, job training grants of up to $200,000 over 2 years may be awarded to colleges, universities,non-profit training centers, and community job training programs as well as to governmental entities. State voluntary cleanup program grants. Non-grant Activities: Clarification of Liability and Cleanup Issues, and Outreach

EPA has also made an effort to address liability and cleanup issues that lenders, developers,and property owners see as barriers to brownfields development. In FY1997, proposing majorexpansion of the program, the agency requested and received $37.7 million in a line item,specifically for brownfields. In addition to continuing the grants for site assessment and other pre-remedial activities, EPA usedFY1997 appropriations to support revolving loan funds (RLFs) to help finance actual cleanups. ForFY2000 Congress appropriated $91.7 million, for FY2001, $91.6 million, and for FY2002 $97.7million, matching EPA's request in all 3 years. A tax incentiveallowing the costs of redeveloping brownfields to be deducted in the current year was enacted in the105th Congress as part of the Taxpayer Relief Act of 1997 ( P.L. Initially good for 3 years,until December 31, 2000, the tax break was extended to the end of 2003 by the 106th Congress, andexpanded to include all brownfields certified by the appropriate state agency. 106-554 ) extended the brownfields tax incentive foran additional 2 years, to December 31, 2003. The first was the"state finality" question, that is, the circumstances under which EPA should beallowed to intervene at a site that has been or is being cleaned up under a stateprogram. Ten other bills have beenintroduced in the 107th Congress and two of them, S. 23 and H.R.
The Environmental Protection Agency (EPA) defines brownfields as abandoned, idled, orunder-used industrial and commercial facilities where expansion or redevelopment is complicatedby real or perceived environmental contamination. The brownfields program was establishedadministratively by EPA under the aegis of the Superfund program; without explicit authority forit in the law, it has been financed by the Superfund appropriation. The program provides financialand technical assistance to help communities restore less seriously contaminated sites that have thepotential for economic development. A combination of potential environmental, economic andsocial benefits gives this program broad support among governments, environmentalists, developers,and communities.
The program began in 1993 and has grown to include 398 brownfields assessment grants(most for $200,000 over 2 years); 151 grants of up to $350,000 (up to $1 million beginning inFY2001) to establish revolving loan funds to help finance the actual cleanups; 47 job training grants;and 28 Brownfields Showcase Communities where technical and financial assistance from 20participating federal agencies is being coordinated with state, local and non-governmental efforts.
EPA also addressed some liability and cleanup issues affecting brownfields by changing itshazardous waste site tracking system, and issuing guidance clarifying the situations where it will notbring enforcement actions against brownfield property owners.
FY1997 was the first year brownfields became a separate budgetary line item, at $37.7million. For FY2000 the appropriation was $91.7 million, in FY2001 the appropriation was $91.6million, and in FY2002 it is $97.7 million
The 106th Congress extended the brownfields cleanup tax incentive to December 31, 2003,and expanded it to make all brownfields certified by a state environmental agency eligible for thetax break. The provision allows the costs of redeveloping brownfields to be deducted in the currentyear rather than being capitalized over a period of years. The administration favors making theprovision permanent.
Congress passed H.R. 2869 on December 20, 2001, and the President signed iton January 11 ( P.L. 107-118 ). The act provides statutory authority to the brownfields program,authorizes funding at $250 million per year, and protects certain property owners from Superfundliability. Ten other bills have also been introduced.
This report provides background on the issue (including state voluntary cleanup programs),surveys the Environmental Protection Agency's current program, and reviews congressional action,including a description of the new law. The report will be updated as events dictate. For additionalinformation on legislative activity, see CRS Issue Brief IB10078, Superfund and Brownfields in the107th Congress.