State Programs
DNREC’s Hazardous Substance Cleanup Act Policy on Brownfields Grants (11/06):
The policy was created to provide funding to eligible parties to help pay for assessment, investigation and remediation costs. The grant funding comes from the Hazardous Substance Cleanup Act (HSCA) Fund. Up to five million dollars is available in any fiscal year for the purpose of providing Brownfields Grant funding to eligible private and public entities. However, no more than one million may be allocated to any one public entity or non-profit brownfield redevelopment project and/or applicant in any single fiscal year.
For funding to private parties, no more than $225,000 is available to any single private brownfield redevelopment project for costs incurred for assessment, investigation, remedial activities or DNREC’s oversight charges. Of this amount, the first $125,000 is a dollar to dollar reimbursement, and the remaining $100,000 is fifty cents to the dollar reimbursement. The policy is available for review at: /NR/rdonlyres/3B09894C-AAEB-4E00-A2DA-59906F0DEACB/1313/HSCAPolicyBFGrantsNov2006.pdf.
DEDO Brownfields Grant Funding:
The Delaware Economic Development Office (DEDO) may provide matching Brownfields redevelopment grant funding through the Delaware Economic Development Authority (DEDA). The funding source is the Delaware Strategic Fund, therefore, the disbursement of funding is subject to 29 Del. C. Subch. I-B and the regulations adopted by the Council on Development Finance. Eligibility requirements include consistency with state economic development strategies and goals, as well as number of jobs created. Please contact Shannon Clark with DEDO at (302) 577-8472 for more information on the grant funding requirements.
Hazardous Substance Cleanup Act Loan Program:
The HSCA Fund may also be used to provide loan funding, in consultation with DEDO. Loans may only be made to potentially responsible parties who have entered into a settlement agreement with the DNREC to perform a remedy at a facility. Loans may only be made to potentially responsible parties who qualify as a Small Business under the criteria established by the Federal Small Business Administration, or who qualify as a non-profit organization. Loan proceeds for any individual facility may not exceed $250,000 or 90% of the total amount required to complete the project for which the loan is made, whichever is smaller. Loans shall require interest payments at a simple interest rate of 3% or that which is 2% below the federal discount rate in effect at the time the loan application is made, whichever is greater. The loans shall be for a term not to exceed ten (10) years. Loan documents shall provide for security interests in the project and any additional property of the applicant necessary to secure the loan. The decision on granting of loans by the Secretary may be based on one or more of the following criteria:
· availability of funds,
· financial viability of the party,
· economic benefit from the reuse of the remediated facility,
· overall risk posed by the facility,
· degree of risk reduction, and
· compatibility with DNREC goals or objectives under HSCA or any other program administered by DNREC.
Additional information on the HSCA Loan Program is available at: http://www.dnrec.state.de.us/dnrec2000/Divisions/AWM/sirb/hscaloan.asp.
$1 Million Revolving Loan Fund Grant Awarded to DNREC in 2006:
DNREC was awarded a Brownfields revolving loan fund grant from the EPA in 2006. The EPA designated that the grant provide funding for Brownfields projects with $900,000 earmarked for hazardous substances, and $100,000 for petroleum contamination. The grant will be used to capitalize DNREC’s revolving loan fund to provide loans and subgrants to support cleanup activities at eligible Brownfield sites. Grant funds may also be used to implement community involvement activities. Up to $250,000 in subgrants (without repayment) may be awarded by DNREC to qualifying Brownfield sites. For more information, please visit: http://www.epa.gov/brownfields/06arc/delaware.htm.
Hazardous Substance Site Cleanup Loan Program (HSSCLP):
Many potentially responsible parties remain out of compliance with HSCA regulations because they cannot find commercial financing for a contaminated site. In Delaware, with 80% of sites privately owned, this presents a significant obstacle. The Hazardous Substance Site Cleanup Loan Program (HSSCLP) was established to provide the much needed financing to viable businesses to complete environmental investigations and to remediate contamination. The HSSCLP is funded by the Delaware Water Pollution Control State Revolving Fund (SRF). Only work that is directly related to improving, restoring or protecting groundwater, surface water or sediment quality is eligible for financing under the HSSCLP. Additional information is available at: http://www.dnrec.state.de.us/dnrec2000/Divisions/AWM/sirb/bf_loan.asp.
Federal Programs
EPA Brownfields Grant Awards:
The U.S. Environmental Protection Agency announced $70.7 million in grants under the Small Business Liability Relief and Brownfields Revitalization Act for projects in 38 states, five tribal communities and two territories. Since the program began, the EPA has awarded over $262 million in assessment grants, $201.7 million in revolving loan fund grants, and $61.3 million in cleanup grants.
· Information on the Grant Awards (http://www.epa.gov/brownfields/pilot_grants.htm)
· Press Release (http://yosemite.epa.gov/opa/admpress.nsf/e87e8bc7fd0c11f1852572a000650c05/c7251cab903bd8b9852572db0064a83d!OpenDocument)
· EPA Brownfields Grants and Loans (http://www.epa.gov/brownfields/pilot.htm)
Federal Brownfields Tax Incentive:
The Tax Relief and Health Care Act of 2006 included an extension and expansion of the Brownfields Tax Incentive. The incentive was renewed, effective after December 31, 2005, and extended until December 31, 2007. As detailed by the EPA:
· The Brownfields Tax Incentive allows environmental cleanup costs to be deducted in the year incurred, rather than capitalized over time. The legislation expanded the Brownfields Incentive’s scope, allowing the deduction of expenses for the cleanup of petroleum products (crude oil, crude oil condensates, and natural gasoline), which had previously been ineligible.
Updated fact sheets, frequently asked questions, guidelines and other Brownfields Tax Incentive materials are available on the EPA’s Brownfields Tax Incentive Page (http://www.epa.gov/brownfields/bftaxinc.htm).
HUD’s Brownfields Economic Development Initiative (BEDI):
The Brownfields Economic Development Initiative (BEDI) is a competitive grant program targeted toward promoting economic and community development in cities. BEDI is designed to provide assistance in the redevelopment of abandoned, idled and underused industrial and commercial properties where expansion and redevelopment is hindered by existing or potential environmental contamination.
BEDI grant funds are used in economic development projects and increase the economic opportunities for those with low-and moderate-incomes. BEDI assists in the creation or retention of businesses and jobs, as well as helping to increase the local tax base. In 2006, HUD awarded $10 million in BEDI grants, with a maximum cap of $1 million per award. For more information, please visit: http://www.hud.gov/offices/cpd/economicdevelopment/programs/bedi/index.cfm.
For information on HUD grants in Delaware, visit: (http://www.hud.gov/local/index.cfm?state=de) and (http://www.hud.gov/local/de/news/grantannouncements.cfm).
Related Brownfield Sites
U.S. Environmental Protection Agency (http://www.epa.gov/)
EPA Brownfields Home Page (http://www.epa.gov/brownfields/index.html
Technical Assistance to Brownfields Communities (http://www.engg.ksu.edu/CHSR/outreach/tab/)
EPA Brownfields Technology Support Center (http://www.epa.gov/rcrabrownfields/tech.htm)
EPA Brownfields and Empowerment Zones/Enterprise Communities (http://www.epa.gov/brownfields/html-doc/ez_ec.htm)
