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DEQ's Land Renewal Initiative Components. Marketing/Economic DevelopmentBrownfields Site Assessment grantsLow interest loans for remediationLiability protection for prospective purchasersVoluntary Remediation Program. Key Brownfields Concepts. Brownfields projects are real estate transactions with an environmental componentEconomic development opportunity is typically the impetus for redeveloping brownfield sites Leveling the playing field between greenfields and brownfields Brownfields 9444
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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