Environment DEC
From the January 2004 issue
DEC Accepting Applications for New Brownfield Cleanup Program
Created by landmark legislation recently signed by Governor George E. Pataki, the new Brownfield Cleanup Program (BCP) will foster cleanup of thousands of contaminated properties while encouraging new investment and redevelopment of these sites across New York State. The BCP is modeled on the former Voluntary Cleanup Program (VCP) and addresses hazardous wastes, hazardous substances and petroleum contamination.
DEC stopped accepting applications for the VCP on October 31, 2003, but is now accepting BCP applications until the deadline of March 31, 2004. All VCP parties are encouraged to switch to the BCP. Those who do not change by the deadline date must complete their projects under the VCP. DEC will issue interim BCP guidance soon.
Tax Credits and More
In full effect, BCP tax credits are estimated at $135 million annually. These credits will offset costs associated with real property taxes, site preparation and property improvements. Tax credits are effective for tax years beginning on or after April 1, 2005. Credits increase for developers who remediate a site to unrestricted use in an economically distressed area, defined as Environmental Zones (EN-Zones). An environmental insurance credit is available to help offset the costs developers incur to buy such policies.
Under the BCP, thorough and consistent site investigations and cleanups to fully protect public health and the environment still will be required. The BCP establishes cleanup requirements using cleanup tables and a multi-track approach for remediation. Soil cleanup objectives will be based on the site's current, intended or reasonably anticipated future use.
The legislation also provides appropriate liability relief to innocent landowners, lenders, municipalities and fiduciaries, while holding polluters responsible for the contamination they have caused. When a party satisfactorily completes a cleanup, it receives specified liability limitations.
ERP Enhancements
This new legislation also enhances the Environmental Restoration Program (ERP). The 1996 Clean Water/Clean Air Bond Act established a $200 million ERP fund to provide grants to municipalities with eligible costs to investigate and remediate municipally owned brownfield sites. The new legislation enhances the program in the following ways:
- Increases state grants to municipalities from a previous maximum of 75 percent to up to 90 percent of on-site and 100 percent of off-site eligible costs
- Allows municipalities to leverage federal or state help to fund their share
- Allows municipalities to be considered "title owners" during tax foreclosures for purposes of site investigations
- Broadens the definition of an eligible municipality to include a community-based organization in partnership with a municipality
- Eliminates the requirement that municipalities share profits with the state when brownfield properties that were remediated under the ERP are sold
The legislation also provides Brownfield Opportunity Areas (BOA) planning. BOA grants are for municipalities and community-based organizations to strategically plan the redevelopment of brownfields in targeted urban areas. Grants will be available for brownfield preplanning, planning and assessments.
The new program also includes the following features:
- $120 million - Financed with bonds issued by the Environmental Facilities Corporation, these funds will be made available on an annual basis for the New York State Superfund Program and the off-site remediation of significant threat sites being remediated by a volunteer in the BCP.
- $15 million - Under the Brownfield Opportunity Areas Program, technical assistance grants will enable community-based organizations to participate in the Superfund and the BCP for significant threat sites and to implement and oversee the BCP.
- $33 million - financed separately by industry fees, this amount is for the Oil Spill Program.
Furthermore, a redefinition of hazardous waste sites will include hazardous substances. This will allow for cleanup of significant-threat hazardous substance sites that have been excluded from the state's Superfund Program for 20 years.
