[CPEO-BIF] GAO report on EPA's Brownfields Program

[Lenny Siegel <lsiegel@cpeo.org>]

Brownfield Redevelopment: Stakeholders Report That EPA's Program Helps
to Redevelop Sites, but Additional Measures Could Complement Agency Efforts

Government Accountability Office
GAO-05-94, December 2, 2004
For the entire report, go to http://www.gao.gov/cgi-bin/getrpt?GAO-05-94

Abstract

Brownfields are properties whose use may be hindered by the threat of
contamination. Cleaning up and redeveloping these properties can protect
human health and the environment and provide economic benefits. Under
the Brownfields Act, the Environmental Protection Agency (EPA) provides
grants to state and local governments and others for site assessments,
job training, revolving loans, and cleanups and to assist state efforts.
GAO was asked to (1) obtain stakeholders' views on EPA's contribution to
brownfield cleanup and redevelopment, (2) determine the extent to which
EPA measures program accomplishments, and (3) obtain views on options to
improve or complement EPA's program. Stakeholders GAO surveyed included
grant recipients, state program officials, interest groups, and others.

Stakeholders said that EPA's Brownfields Program supports the initial
stages of site redevelopment by funding activities that other lenders
often do not, such as identifying contamination and cleaning up sites.
While important, the impact of EPA's funding is difficult to isolate
because it is often combined with funds from other sources. For example,
representatives of a company that combined an EPA loan with city, state,
and other federal agency funds to redevelop a brownfield site near
Seattle, Washington, said that EPA's loan, while small, provided
critical up-front funds for cleanup. Furthermore, while an unknown
number of projects rely solely on private and other federal agencies'
funding, EPA funds often go to sites with more complex cleanups, less
desirable locations, or liability issues. In addition, officials in 10
states reported that EPA's assistance has been crucial to establishing
and expanding the scope of their voluntary cleanup programs. EPA's
current performance measures do not measure major components of the
Brownfields Program, such as progress toward cleaning and redeveloping
sites or assisting state programs. Furthermore, EPA has not yet
developed measures to assess the extent to which the Brownfields Program
achieves key outcomes, such as reducing environmental risks. Similarly,
EPA's Inspector General found that the brownfields performance measures
do not demonstrate the program's contribution to reducing or controlling
health and environmental risks. Acknowledging its measures' limitations,
in fiscal year 2004, EPA began collecting additional data--such as the
number of acres ready to be reused--about properties under the program
and is developing performance measures for state voluntary cleanup
programs. Stakeholders identified three options for improving or
complementing EPA's Brownfields Program. First, they suggested
eliminating the provision in the Brownfields Act that, in effect,
disqualifies from grant eligibility those landowners who purchased a
brownfield site before January 2002. Second, they suggested changes to
the stringent technical and administrative requirements that they
believe have discouraged the use of revolving loan funds. While EPA
officials maintained that the act eased administrative burdens,
stakeholders believed that technical requirements continue to impede
lending. Stakeholders also suggested that EPA give priority to
applicants with proven administrative expertise or to coalitions that
can consolidate administrative functions. Third, stakeholders believed
that a federal tax credit for developers' remediation costs could
attract developers to brownfield sites on a broader national basis.
Although EPA and other organizations were also generally supportive of a
tax credit, we did not analyze the costs and benefits of such a tax
credit or any other potential incentives.



-- 


Lenny Siegel
Director, Center for Public Environmental Oversight
c/o PSC, 278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org
_______________________________________________
Brownfields mailing list
Brownfields@list.cpeo.org
http://www.cpeo.org/mailman/listinfo/brownfields