The city has worked closely with state and federal environmental protection agencies in assessing and cleaning up five demonstration brownfield sites. Federal Efforts Are Targeted Toward Redeveloping Brownfields

As state and local governments have shown increased interest in redeveloping their industrial sites, several federal agencies have begun to help them. Both EPA and EDA have gained practical experience through redevelopment activities at several sites, while HUD has started a series of projects to carry out its brownfield strategy. According to EPA, many of these sites either were not contaminated, had already been cleaned up under state programs, or were being cleaned up; still, potential developers were reluctant to get involved with them because they remained on EPA’s list. EPA has also loaned staff to local governments to further assist efforts to redevelop brownfields. In 1994, almost 300 communities applied for six federal Urban Empowerment Zone and 65 Enterprise Community designations that provide tax incentives. Scope and Methodology

To determine what is known about the extent and nature of abandoned industrial sites in distressed urban communities and the barriers that brownfields present to redevelopment efforts, we reviewed previous GAO reports on Superfund issues and other reports on the subject, such as the Northeast-Midwest Institute’s report entitled New Life For Old Buildings and Resources for the Future’s report entitled The Impact of Uncertain Environmental Liability on Industrial Real Estate Development. To provide information on federal initiatives aimed at helping communities overcome obstacles to reusing brownfield sites, we discussed brownfield programs and issues at three federal agencies—EPA, HUD, and the Department of Commerce—that were identified by public interest group, state government, or local government officials as having brownfield programs.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on brownfields, focusing on: (1) the extent and nature of abandoned industrial sites in distressed urban communities and the barriers brownfields present to redevelopment efforts; and (2) federal initiatives aimed at helping communities overcome obstacles to reusing brownfield sites.

What GAO Found

GAO found that: (1) while no national inventory of brownfield sites exist, states have identified thousands of former industrial sites that are abandoned and possibly contaminated; (2) although brownfield sites are usually not contaminated enough to qualify for the Superfund Program, many offer great potential for redevelopment; (3) although developers and lenders have been reluctant to get involved with brownfields due to uncertain liability, governments have created initiatives, such as offering loans and liability protection, to speed up redevelopment efforts; (4) brownfield redevelopment has remained state and local in nature, but federal agencies have begun assisting local governments to reclaim sites; (5) the Environmental Protection Agency has provided demonstration grants to help redevelop industrial properties that were not contaminated or had been cleaned up; (6) the Economic Development Administration has provided financial support for brownfield research and has also acquired practical experience from cleaning up properties it acquired through loan defaults; and (7) the Department of Housing and Urban Development is implementing several brownfield projects through its Empowerment Zone and Enterprise Community program.