Restoration of Virginia s Brownfields - DEQ s Land Renewal Initiative - September 17, 2001

1. Restoration of Virginia�s Brownfields - DEQ�s Land Renewal Initiative -September 17, 2001

3. Key Brownfields Concepts Brownfields projects are real estate transactions with an environmental component Economic development opportunity is typically the impetus for redeveloping brownfield sites Leveling the playing field between greenfields and brownfields Brownfields projects follow one of two models slow developing, long term, community development project (good grant and cooperative agreement candidates) quick turn, opportunistic, market driven real estate project (tends to be the most prevalent)

4. Key Brownfields Concepts cont�d. Liability, cost, and time are the three greatest deterrents to brownfields redevelopment Prospective participants look to DEQ for legal and financial incentives

5. SUCCESS STORY

6. SUCCESS STORY IN-THE-WORKS

7. Marketing Conducting aggressive marketing activities presentations statewide radio/newspaper/trade journal interviews participating at national conferences co-sponsoring NBA conferences web page

8. Marketing (Cont.) Networking within key professional service communities State and Federal Agencies & IDAs Environmental attorneys Lenders Consultants Architects Insurance providers Environmental groups and organizations Real estate professionals Local Government Planners & Administrators

9. Tools to Address Liability Voluntary Remediation Program Finalizing MOA with EPA so program can address federal liability as well as state liability Innocent Purchaser Liability protection Limited liability determination under 10.1-1406.B (policy under development) Exercise of enforcement discretion Incentives for self-disclosure and registration as a brownfield site (policy under development)

10. Tools to Address Cost Brownfield costs fall under two categories: Site assessment determines contaminants and their extent information can make site more marketable Remediation clean up per requisite regulatory requirements varies depending on regulatory requirements

11. Mitigation of Assessment Costs DEQ�s Brownfield Site Assessment Grant $1.14 million from EPA used for grants to site owners Improves marketability of sites by identifying the scope of any contamination and the potential costs Typical per site cost is $40,000 - $50,000 Have screened 9 sites to date Advantages grant pays full cost of a site assessment VDEQ interprets data for applicant Disadvantages Samples analyzed at EPA labs Lengthy process (7 to 10 months) Concerns about submitting unknown data to EPA

12. Mitigation of Assessment Costs (cont) Federal Brownfields Pilot Program $200,000 grants to localities for evaluation of brownfield sites 5 Virginia recipients Richmond, Cape Charles, Petersburg, Shenandoah, Newport News Disadvantage competitive, lengthy application process applications accepted only once annually Administered by EPA under Superfund guidelines

13. Mitigation of Remediation Costs - State Clean Water Act (CWA) Revolving Loan Fund may be used for brownfield remediation projects (HB1873, 2001) Administered by VRA and State Water Control Board VRA Bonds for Brownfields Remediation (SB1402, 2001) Advantages low interest rates Bi-annual application opportunities with interim financing available

14. Mitigation of Remediation Costs -Federal Remediation Revolving Loan Fund Advantage communities receive up to $1M/loan Disadvantage preference given to brownfield grant recipients EPA oversight Bureaucratic (follows Superfund guidelines)

15. Voluntary Remediation Program Voluntary program to: assess risk and establish site specific cleanup standards provide immunity from future state enforcement actions once cleanup is completed (transferable to future owners) 51 certificates issued / 124 sites total Not available for sites where cleanup is mandated under state or federal law Established by 10.1-1429.1

17. Federal Brownfield Activities The Bush Administration�s focus on the redevelopment of brownfields S.350 / H.R.324 Increased federal flexibility and financial assistance Some changes needed to provide states flexibility in utilizing the funding and other tools proposed Chesapeake Bay 2000 Agreements restoration of 1,050 sites in the Bay Watershed by 2010 150 sites is goal for Virginia

18. Comparison of Other States

19. Enhancements Suggested by Program Stakeholders Increased financial assistance for site assessments or remediation Listing of available Brownfield sites Innocent purchaser liability protection (policy under development) Increased VRP staff for site reviews

20. Pennsylvania�s Program Grant Funds for Site Assessments, averages $10M/year reimburse 75% of incurred costs Revolving Loan Fund for Clean Ups low interest rate Bounty for adding sites to list Pay a $1K grant to communities for each brownfield site added to their inventory Liability protection for innocent purchasers Pre-negotiated environmental insurance rates for participants

21. Michigan�s Program Grant funds for site assessments, averages $15M/year no community match required Revolving loan fund for clean ups, averages $1M/year low interest rate Attractive tax credits to developers Since 1995, Michigan has granted ~$100M resulting in over $2B in capital reinvestment/private investment and over 15,000 jobs Liability protection for innocent purchasers

22. New Jersey�s Program Grant funds for site assessments averages $20M/year no community match required Revolving loan fund for clean ups low interest rate Liability protection for innocent purchasers includes protection from 3rd party lawsuits