Environment DEC
From the November 2003 issue
Governor Signs Landmark Superfund Legislation
Governor George E. Pataki recently signed landmark legislation that will refinance and reform New York State's Superfund Program. The law creates a new brownfields program to foster the cleanup of thousands of contaminated properties while encouraging new investment and redevelopment of such sites across the state.
"The programs and initiatives contained in this legislation illustrate the direct link between environmental health and fiscal stability," Governor Pataki said. "The legislation allows municipalities across the state to take advantage of opportunities for redevelopment, job creation, and overall economic growth while protecting public health by removing contamination from communities."
Benefits of Legislation
The new legislation will refinance and reform the state's superfund program; create a new state brownfields cleanup program to encourage private investment through liability reform, tax incentives, and a predictable process for cleaning up and redeveloping brownfields; improve the municipal Environmental Restoration Program funded through the 1996 Clean Water/Clean Air Bond Act to encourage even more municipal participation, and implement liability reform to the state's Superfund Program and Oil Spill Program.
The legislation provides long-term funding, authorizing up to $135 million to be financed with a combination of bond funds, industry fees, General Fund dollars and other sources. It builds upon the state's nearly 20 years of experience in cleaning up contaminated properties by making the programs more effective. It maintains the highest cleanup standards in the nation; retains the "polluter pays" philosophy; expands the types of sites eligible for cleanup; provides expanded liability relief; ensures consistency with federal law, and provides enhanced financial incentives to municipalities and volunteers to investigate, remediate, and redevelop brownfields.
Brownfields are properties where redevelopment is complicated by real or perceived environmental contamination based on prior use. Brownfields often pose environmental and public health threats, as well as legal and financial burdens on communities. Left vacant, contaminated sites often threaten the economic viability of adjoining properties.
Governor Pataki reiterates his commitment
to provide New Yorkers with a healthy
environment and a high quality of life
Funds and Covered Projects
Up to $120 million will be made available on an annual basis for the state Superfund Program and financed with bonds issued by the Environmental Facilities Corporation, with state debt service costs offset by industry fees.
Fifteen million is earmarked for: new brownfield opportunity grants; technical assistance grants for community-based organizations to participate in the Superfund and Brownfields Cleanup programs for significant threat sites; development of a Geographic Information System on the state's groundwater resources; appropriate staffing levels to implement the new programs, and other hazardous waste remediation purposes. Industry fees will finance $33 million separately for the Oil Spill Program.
Brownfields Cleanup and Redevelopment
The legislation establishes a comprehensive package of tax credits with an estimated annual value of $135 million to offset costs associated with real property taxes, site preparation, water treatment expenses, and property improvements for sites remediated under the Brownfields Cleanup Program.
Under the package, tax credits increase for developers that voluntarily remediate a site to unrestricted-use standards. The tax credit package also includes an innovative environmental insurance credit that will help to offset the costs developers might incur to purchase such policies.
Hazardous Substance Sites
The bill redefines hazardous waste to include hazardous substance sites, which have been excluded from the state's Superfund program for 20 years. DEC has identified hazardous substance sites that may pose a significant threat to public health and the environment. These sites now will be addressed through the Superfund program.
Municipal Environmental Restoration Program
Funded by $200 million from the 1996 Clean Water/Clean Air Bond Act, the legislation increases the state grant to municipalities from 75 percent of eligible costs to 90 percent of eligible on-site costs and 100 percent of eligible off-site costs, allowing the municipality to leverage other funds to pay their share. More than $27 million has been committed to 155 sites in 62 communities statewide.
Brownfield Area Planning Opportunities
Administered by DEC, brownfield opportunity grants will be available to municipalities and community-based organizations to strategically plan for the redevelopment of brownfields within targeted urban areas. Planning and site-assessment grants are included.
Public Participation Opportunities
Technical assistance grants will be made available to community-based organizations to assist in evaluation of site data for eligible significant threat sites in the state Superfund and brownfield cleanup programs.
Protective and Predictable Cleanups
Cleanups under the state Brownfields Cleanup Program will continue to be fully protective of public health and the environment based on remedy selection criteria, including current, future and reasonably anticipated land use and the long-term effectiveness and permanence of the cleanup. Thorough and consistent investigations will continue to be required.
Soil Cleanup Tracks
Four soil cleanup tracks will be established: Track 1, unrestricted use; Track 2, commercial and industrial use with groundwater engineering and institutional controls; Track 3, unrestricted, commercial and industrial use applying the formula used to develop tracks but applying site-specific data, and Track 4, site-specific soil cleanup objectives using site-specific information.
Liability Scheme
Liability relief is provided to municipalities, lenders, and innocent third parties under the Superfund Program, while continuing to hold the polluter responsible for the cleanup. Under the Oil Spill Program, a new affirmative defense will provide liability relief to innocent parties.
Since 1986, the state Superfund has provided $1.2 billion for cleanup of more than 800 contaminated sites across New York State. However, the state Superfund funded by the 1986 Bond Act was fully allocated as of March 31, 2001. DEC estimates that at least an additional 800 Superfund sites still are in need of investigation or remediation.
