EPA Announces Fiscal Year 2006 Brownfields Grants Totaling Almost $70 Million
 
July 25, 2006
 

On May 12, 2006, the U.S. Environmental Protection Agency (EPA) announced that communities in 44 states and two territories, as well as three tribes, will share $69.9 million in brownfields program grants. A brownfield is a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. The EPA estimates that there are currently more than 450,000 brownfields in the United States. When these properties are cleaned up, the result is an increase in the local tax base, job growth and an improvement in the environment.

In January 2002, President Bush signed the Small Business Liability Relief and Brownfields Revitalization Act (Public Law 107-118), which authorized up to $250 million annually for brownfields grants. The grants help communities redevelop abandoned and contaminated or potentially contaminated waste sites. This year, the EPA selected 209 applicants to receive 292 grants for environmental assessment and cleanup of contaminated properties.

Generally, EPA’s brownfields grants support revitalization efforts by funding environmental assessment, cleanup and job training activities. In particular, brownfields assessment grants provide funding for brownfield inventories, planning, environmental assessments and community outreach. Brownfield revolving loan fund grants provide funding to capitalize loans that are used to clean up brownfields. Revolving loan funds are generally used to provide low interest loans for brownfields cleanups. Brownfield job training grants provide environmental training for residents of brownfields communities. Brownfields cleanup grants provide direct funding for cleanup activities at properties with planned greenspace, recreational, or other nonprofit uses.

The almost $70 million in grants this year will be divided as follows: 184 grants totaling $36.6 million for site assessment and planning; 96 grants totaling $18.3 million for cleanup activities; and, 12 grants totaling $15 million to capitalize a revolving fund loan and provide subgrants for cleanup activities. Since the beginning of the brownfields program, EPA has awarded 883 assessment grants totaling $225.4 million, 202 revolving loan grants totaling $186.7 million, and 238 cleanup grants totaling $42.7 million.

Interested in applying for funding for next year? An eligible entity may apply for up to $200,000 per site and no entity can apply for funding cleanup activities at more than five sites. The funds may be used to address sites contaminated with petroleum and hazardous substances, pollutants, or contaminants, including hazardous substances mixed with petroleum. Cleanup grants require a 20 percent cost share, which may be in the form of a contribution of money, labor, material or services, and must be eligible and allowable costs (i.e., the match cannot include administrative costs). A waiver of the 20 percent cost share is available in cases of hardship. In addition, the grants must be performed in two years.

For additional information, see EPA Brownfields Cleanup Grants, Publication Number: EPA-560-F-05-238, dated November 2005, available at http://www.epa.gov/brownfields/facts/cleanup_factsheet.pdf. 

For more information, e-mail Sarah C. Smith at sarah.smith@hklaw.com  or call toll free, 1-888-688-8500.