[CPEO-BIF] GAO review of EDA (Commerce) Brownfield Funding

[lsiegel@cpeo.org]

ECONOMIC DEVELOPMENT ADMINISTRATION:
Remediation Activities Account for a Small Percentage of Total
Brownfield Grant Funding
GOvernment Accountability Office, October, 2005, GAO-06-7

What GAO Found

Remediation activities conducted at EDA-funded brownfield sites appeared
to be incidental to the purpose of the overall project and most often
consisted of the removal and disposal of asbestos containing materials,
underground storage tanks, or lead-based paint. We estimate that
remediation activities were conducted at 54 percent of EDA-funded
brownfield sites from fiscal year 1998 through 2004. Overall, we
estimate that EDA used $4.8 million or about 1.4 percent of its grant
funds to pay for remediation activities at 28 percent of the brownfield
sites during this period. Grantees, former property owners, or other
agencies generally were responsible for most environmental remediation
costs at these sites. 

EDA regional environmental officers prepare environmental assessments to
document a project?s compliance with federal environmental requirements.
In three of six EDA regional offices, we noted that the regional
environmental officer routinely recommended various types of special
conditions be added to grant awards concerning the remediation of
hazardous substances that provide more specific assurance on a project's
compliance with environmental standards. EDA requires grant recipients
to certify that contractors will comply with applicable environmental
requirements and works with federal, state, and local environmental
agencies to ensure compliance. 

EDA grants to brownfield sites most often funded infrastructure
improvements, such as upgrades to water and sewer lines, construction of
streets and curbs, or installation of signage and lighting. EDA
evaluates proposed projects competitively based on standard guidelines
that emphasize increased numbers of relatively high-skill, high-wage
jobs or private sector investment; strong leadership and project
management experience; and matching funds from local governments or
nonprofits. Data were not available on the reported economic development
impact for most of the grants that GAO reviewed. Where data were
available, the reported economic development data varied significantly
when compared with initial project estimates for some grants. In some
instances, permanent jobs or private sector investment estimates for
proposed projects did not appear to be verified. 

To download the entire report, click on
http://www.gao.gov/cgi-bin/getrpt?GAO-06-7


-- 


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
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