Rebuilding New England Through Investments in Brownfields Sites

1. Rebuilding New England Through Investments in Brownfields Sites Frank Gardner Brownfields Coordinator EPA New England Brownfields Program 617-918-1278 gardner.frank@epa.gov February 18, 2014

2. Agenda • Brownfields Overview • Federal Brownfields Law • EPA Brownfields Grant Assistance Program • Federal Liability Relief • State and Local Role in Redevelopment • Sustainable Development • EPA Funding in Somerville • Resources and Website Overview

3. Brownfield Site Revitalization Reuse/Recycling of sites revitalizes our communities while preserving open space Saint Polycarp Village Somerville, MA

4. What are Brownfields? • The term“brownfield site”meansreal property, the expansion, redevelopment orreuseof which may becomplicatedby the presence or potential presence of a hazardous substance, pollutant, or contaminant. • The term “brownfields” is often used to describe a wide range of federal, state, and non-regulated sites.

5. New Opportunities • Redevelopment of Brownfields brings all kinds of opportunities • New Business Ventures • New Jobs • Sports & Entertainment Facilities • Parks, Recreation & Open Space • Schools, Educational and Municipal Buildings • New Housing Waypoint Center – Bellows Falls, VT

6. EPA Brownfields Background • Love Canal to present • CERCLA & NPL sites • Council of Mayors (1990s) • Asked EPA “What about small sites?” • Real Estate market cannot deal with perception of contamination • Began BF pilot grants thru CERCLA assessment ability • Started in 1994 – Bridgeport & Boston • Assessments help resolve uncertainty and get sites moving • Goes beyond environment • Smart Growth • LID • Sustainability • TOD • Resiliency & Climate Change

7. Small Business Liability Relief & Brownfields Revitalization Act of 2002 • This Federal Law Contains Two Major Elements: • Small Business Liability Relief • Brownfields Revitalization • Brownfields Grant Program • Brownfields Liability Clarifications • Establishes Interim Standards for AAI (Finalized in November 2006) • State Response Programs • Authorizes funding up to $250M/year • Including $50M for states (non-competitive) • Including funds for petroleum assessment and cleanup

8. National Brownfields Budget Source: US EPA

9. 10 EPA Regions

10. EPA Brownfields Grant FundingTotal Awarded by State Source: US EPA

11. 2013 General Funding in New England • Total FY2013 General Funding - $ 24.4 Million • Assessment - $ 5.4 Million • Cleanup - $ 5 Million • RLF - $ 10.6 Million • Job Training - $400k • TBA – $450k • State Funding - $ 2.5 Million Source: US EPA

12. 2009 Recovery Act Funding in New England • Total FY2009 Recovery Act Funding - $ 15 Million • Assessment - $ 5.6 Million • Cleanup - $ 1.7 Million • RLF - $ 6.5 Million • Job Training - $ 500,000 • TBA - $ 650,000 Source: US EPA

13. Site Assessment $200,000 - $ 1 million Revolving Loan Fund $1,000,000 Cleanup Grants $200,000 Targeted Brownfields Assessments Grant of Service Job Training Grants $200,000 Types of EPA Assistance GrantsAnnual Amounts in Each Grant Category

14. Eligible Entities States Tribes Local Government and Redevelopment Agencies Land Clearance Authorities Regional Councils of Government Non-profits (TBAs, Cleanup Grants & Job Training) Eligible Sites Hazardous substances Pollutants or contaminants Petroleum Products Illegal Drug Labs (Meth) Mine-Scarred Land Ineligible Sites Superfund (SF) Sites Federal Facilities EPA Brownfields Funding Eligibility

15. EPA Brownfields ProgramSite Assessment Grants • Eligible Entities: Municipalities, tribes, states, quasi-govt entities (e.g. Councils of Govts) • Eligible Activities: Development of brownfields site inventories, environmental site assessments, cleanup planning and community outreach activities • Funding: Up to $200,000 Hazardous Substances & $200,000 Petroleum, up to $350,000 per site or $1 million per coalition. • Competition: National, annual competition

16. Brownfields Success StorySite Assessment Grants • Former site of 14 industrial buildings along Malden River. • Soils & sediments contaminated by oil, organics, coal tar & PAHs. • Used $1.45 million in EPA assessment & $480,000 in EPA cleanup funds. • Now a 10-acre waterfront park with 1 mile of paths, restored wetlands and home to the 9,000 SF Tufts University Boathouse. Park at River’s Edge – Medford, MA

17. EPA Brownfields ProgramCleanup Grants • Eligible Entities: Municipalities, tribes, states, quasi-govt entities (e.g. Council of Govts), and non-profits that own the site to be remediated • Eligible Activities: Completion of remedial engineering and cleanup activities • Funding: Up to $200,000 per site and a maximum of 3 sites per applicant • Competition: National, annual competition

18. Brownfields Success StoryCleanup Grants • City owned vacant lot. • Site characterization performed using an EPA Assessment Grant. • Cleanup completed utilizing a $200,000 EPA Cleanup Grant. • Community garden and passive park for neighborhood residents. • Leveraged funds from US Department of Housing & Urban Development and Massachusetts Division of Conservation Services. 30 Allen Street - Somerville, MA

19. EPA Brownfields ProgramRevolving Loan Fund Grants • Eligible Entities: Municipalities, tribes, states, and quasi-govt entities (e.g. Council of Govts) • Eligible Activities: Capitalization, implementation, and oversight of a local cleanup revolving loan program including sub-grants to eligible entities • Funding: Up to $1,000,000 initially, supplemental funding available • Competition: National, annual competition

20. North Dam LLC (private developer) Cleanup utilized a $1,000,000 RLF Loan from the Southern Maine RPC Transformed 300,000 SF of abandoned mill buildings into residential, commercial, and light industrial space Leveraged over $6M in private investment and 40 new jobs Brownfields Success StoryRevolving Loan Fund Grants North Dam Mill – Biddeford, ME

21. EPA Brownfields ProgramTargeted Brownfields Assessments • Eligible Entities: Municipalities, tribes, states, quasi-govt entities (e.g. Council of Govts) and non-profits • Eligible Activities: An environmental assessment conducted by EPA at targeted brownfields sites through a grant of services. • Funding: $100,000 on average • Competition: Regional, semi-annual competition

22. Former electroplating shop abandoned with extremely hazardous chemicals $78,000 in EPA TBA funds used for assessment – contaminants include lead, VOCs, and asbestos $200,000 EPA Cleanup Grant plus over $6M in leveraged cleanup funding Redeveloped by City into new $15M police station which opened 7/30/11 Brownfields Success StoryTargeted Brownfields Assessment Modern Electroplating – Boston, MA

23. EPA Brownfields ProgramJob Training Grants • Eligible Entities: Municipalities, tribes, states, quasi-govt entities, universities, and non-profits • Eligible Activities: Implementation of environmental workforce and job training programs for the underemployed • Funding: Up to $200,000 • Competition: National, annual competition

24. Brownfields Success StoryJob Training Grants • Received $200,000 EPA Job Training Grant in May 2009. • Training provided by Environmental Management Geologic Consultants. • Training includes OSHA 40-hour Hazwoper, lead & asbestos, sampling techniques, energy efficiency and greening of buildings. • The 1st class of 21 students graduated in July 2009. The WorkPlace– Bridgeport, CT

25. EPA Brownfields ProgramState & Tribal 128(a) Funding • Eligible Entities: States and Tribes • Eligible Activities: • Establish or enhance response programs that address the assessment, cleanup, and redevelopment of brownfields • Conduct environmental assessments • Provide cleanup grants • Capitalize a cleanup revolving loan fund • Purchase environmental insurance • Establish or maintain a public record of sites • Oversee brownfields cleanups • Funding: Up to $50 million annually

26. Constructed in 1820 - Former shipbuilding and canning facility. $40,0000 in State 128(a) funds used to assist in the assessment and cleanup of metals & PAH contaminated soils. Now being used as a small business incubator including a fabricator of stone knobs from recycled materials and a manufacturer of carbon fiber blades for wind turbines. Brownfields Success StoryState & Tribal 128(a) Funding Town Landing – Bath, ME

27. Small Business Liability Relief & Brownfields Revitalization Act of 2002 • This Federal Law Contains Two Major Elements: • Small Business Liability Relief • Brownfields Revitalization • Brownfields Grant Program • Brownfields Liability Clarifications • Establishes Interim Standards for AAI (Finalized in November 2006) • State Response Programs • Authorizes funding up to $250M/year • Including $50M for states (non-competitive) • Including funds for petroleum assessment and cleanup

28. Federal Liability ReliefProvided by the BF Act of 2002 • Small Business Relief • Exempts most small volume contributors at NPL sites from SF liability • Exempts most contributors of municipal waste at NPL sites from SF liability • Brownfields Liability Clarifications • Exempts contiguous property owners from SF liability • Clarifies the innocent landowner defense to SF liability • Exempts “bona fide prospective purchasers” from SF liability • State Response Programs • Provides SF liability relief for parties cleaning up under state response programs

29. Federal Liability ReliefContiguous Properties • “Protects landowner who is victim of his neighbors’ actions” where contamination has migrated from an adjoining or nearby parcel • Must not cause, contribute or consent to release • Must satisfy “common elements”

30. Federal Liability ReliefInnocent Landowner • Protects landowner who purchases property without knowledge of contamination • All disposal must take place prior to purchase • Must satisfy “common elements”

31. Federal Liability ReliefBona Fide Prospective Purchasers • “Persons” who acquire a property after January 11, 2002 may not be liable under CERCLA, provided that certain requirements identified in the Brownfields Act of 2002 are satisfied. • Bona fide prospective purchasers can acquire property with knowledge that the property is contaminated and without fear of federal liability provided the requirements identified in the Brownfields Act of 2002 are satisfied.

32. Federal Liability ReliefBona Fide Prospective Purchasers Requirements to qualify for BFPP liability relief: • All disposal must have occurred prior to acquisition • “All appropriate inquiry” must be performed prior to acquisition -American Society of Testing and Materials (ASTM) E 1527-13 Phase I • “Appropriate care” must be exercised by taking reasonable steps • Other continuing obligations must also be satisfied in accordance with the BF Act of 2002

33. Federal Liability ReliefBona Fide Prospective Purchasers Windfall Lien Provision: • EPA may recover response costs when EPA response actions increase the fair market value of a property • Applies only to property where EPA has incurred costs that have not been recovered • EPA will not seek recovery of Brownfields grant money • The value of the lien is limited to the lesser of either EPA's unrecovered response costs OR the increase in fair market value attributable to EPA's cleanup • EPA may enter into windfall lien settlements

34. Brownfields Success StoryFederal Liability Protections • Former cotton factory, hosiery and yarn manufacturers, and curtain manufacturing mill. • Site acquired by WEIR Corp, a non-profit, in Oct 2003 – BFPP liability protections were critical. • Mixed use development: • 64 affordable rental units • 18,000 square feet of commercial/retail space Robertson on the River - Taunton, MA

35. What is “All Appropriate Inquiries?” • “All Appropriate Inquiries,” or due diligence, is the process of evaluating a property for potential environmental contamination and assessing potential liability for any contamination present at the property. • The All Appropriate Inquiries standards will apply to: • Property owners asserting CERCLA liability protections • Persons receiving brownfields grants for site characterization and assessment under CERCLA 104(k)(2)(B)

36. What is “All Appropriate Inquiries?” • Current ASTM standard is E 1527-13 • AAI standards • Identify conditions indicative of releases or threatened releases • Needs an Environmental Professional • Interviews • On-site Visual Inspection • Comparison of Purchase Price and market Value of Property • Commonly Known or Reasonably Ascertainable Information • Specialized Knowledge

37. Summary of Brownfields SuccessesLeveraged Activities in New England • $318 million in EPA brownfields grants awarded to New England communities • 2,451 sites have been assessed with EPA brownfields grant funds • 219 Sites cleaned up & ready for re-use • Over 12,900 jobs leveraged • Over $2.11 billion leveraged from cleanup, construction, and redevelopment of brownfields Source: US EPA

38. Coordination with MassDEP • Petroleum eligibility determinations. • Properties are assessed and cleaned up to Massachusetts state regulations. • EPA provides the state with funding to establish and enhance its voluntary cleanup program. • Brownfields Support Team (BST) • 10 of the 34 regional cleanup completions in FY13 were in Mass (privatized program) • MassDEPBrownfields Coordinator – Kerry Bowie, bowie.kerry@state.ma.us

39. State and Local Role in Brownfields Redevelopment • State programs include • Subsidized Environmental Insurance • Tax Credits • Liability Relief Clarification • Local governments often provide incentives for economic development • Tax Increment Financing (TIFs) • Property Tax Abatements • Urban Renewal Area • CDBG Funding

40. Sustainable Cleanup & Redevelopment • EPA encourages “green” elements including: • Renewable energy • Water & energy efficiency • Landscape design • Waste handling • Environmentally referable/recycled materials • Smart Growth • Transit-Oriented Development • Use of existing infrastructure McCormack Federal Bldg ., Boston, MA

41. Somerville Assessment Funding • Assessment Grants - $750,000 to date • 259 Lowell Street – Visiting Nurses Assisted Living Facility • 220 Washington Street – Public Safety Building • 29, 30 & 33 Allen Street – Head Start & Passive Park • 1 Capen Court – Former Conwell School • 0 North Union Street (Foley Street Extension) – Yard 21 • 63 Gorham Street – Former M.W. Carr site • 100 Temple Street – Former St. Polycarp Site • 112A Central Street – Central Street Parking Lot • 20 – 22 Prospect Street – Former Kiley Barrel Sites • 7, 9, 11 & 13 Allen Street, 4 Milk Place and 250-256 Somerville Avenue – Off-site properties associated with the former Kiley Barrel Sites • 15 Cross Street East – parking garages • 258 Somerville Avenue – adjacent to Kiley Barrel

42. Somerville Cleanup Funding • Cleanup Grants - $1,600,000 • 30 Allen Street – Passive Park & Community Garden • 112A Central Street – Community Path Park • Kiley Barrel (6 parcels) • Revolving Loan Fund - $1,200,000 • 56 & 61 Clyde Street – MaxPak Site - $423,000 • 29-30 Allen Street – Head Start Facility - $29,000

43. What’s New? • FY’14 Grant Competition • New Grants • Area Wide Planning (FY10, FY13, FY15) • Multi – Purpose (FY13, ?) • Sustainable Communities Partnership • Making Connections with Developers • Brown NET

44. New Grants Types • Area Wide Planning • For Municipalities and Governmental Entities • Purpose is to develop an area-wide plan for the brownfields-impacted area, which will inform the assessment and cleanup of the brownfields, and identify next steps and resources needed. • Multi- Purpose • One grant to fund both the assessment and cleanup activities of a specific site. • Applicant must be an eligible entity (governmental) and own the site.

45. Sustainable Communities Partnership HUD-EPA-DOT Coordinate federal transportation, environmental protection, and housing investments in order to promote sustainable development Livability Principles: • More transportation choices • Promote equitable, affordable housing • Increase economic competitiveness • Support existing communities • Leverage Federal Investment • Value communities and neighborhoods

46. Available Resources • EPA Region 1 Brownfields Site: www.epa.gov/region1/brownfields/index.html • EPA Headquarters Brownfields Site: http://www.epa.gov/swerosps/bf/index.html • MassDEPBrownfields Site: http://www.mass.gov/dep/cleanup/brownfie.htm

47. Questions? • Frank Gardner, Project Officer • Gardner.frank@epa.gov • 617.918.1278 • Additional Topics • Role of EPA Regions vs HQ • Role of Project Officer • Annual Grant Cycle • Key Ingredients to Brownfields Success • They Are Real Estate Transactions