Brownfields are defined by the U. S. Environmental Protection Agency (EPA) as abandoned or underutilized sites with real or perceived environmental problems. In March 1998, the Legislative Program Review and Investigations Committee approved a study of brownfields in Connecticut.
The purpose of the review was to look at how environmental concerns about properties affect economic development efforts and the response the state should take to deal with the issue. The committee looked at the programs and tools currently available to assist in the identification and remediation of environmentally contaminated properties, including the roles of governmental entities and private parties.
Brownfields can exist anywhere, and the fear of unknown problems can be as detrimental to development of a site as heavy contamination. The state has not established a statutory or regulatory definition of brownfields, but the EPA definition is frequently used. The committee believes the flexibility of Connecticut's current approach toward defining brownfields is preferable to imposing a statutory description.
The activities undertaken in connection with and at brownfields vary, depending on the condition of a site and the immediacy of opportunities for redevelopment. Key activities involve the identification of sites, assessment of contamination, and cleanup in accord with state standards. One of the first actions should be a realistic examination of the uses for the site.
The likelihood a site will be used for economic development purposes is shaped by a number of factors. These include its acreage, zoning restrictions, infrastructure concerns, taxes, and the price of the property. The environmental condition of the site also has to be considered. Figure I-1 summarizes the major factors affecting development.
No list of brownfields currently exists in the state. To quantify the problem they collectively represent, the program review committee sought information from several sources, including towns throughout the state. The committee found there are at least 622 and probably more than 942 brownfields in Connecticut. The committee believes determining the specific problems at identified sites should be a key focus of state efforts to deal with brownfields, and state financial assistance in the short-term should focus more heavily on site assessments.
The Department of Economic and Community Development and the Department of Environmental Protection share responsibility for the state’s major programs involving brownfields. The quasi-public Connecticut Development Authority also has a role.
The program review committee found Connecticut already has in place many tools and programs considered important for dealing with brownfields. They include:
- cleanup standards tied to planned re-use;
- clear and timely processing of cleanup plan reviews and approvals;
- liability protections;
- financial assistance for assessments and cleanups;
- tax and other incentives for targeted development; and
- community support for re-use of existing industrial sites.
However, a number of the programs are new, and additional time will be needed to fully assess their success. In the meantime, the committee recommends clarifying statutory provisions and fine-tuning the operating procedures of some specific programs.
The Special Contaminated Property Remediation and Insurance Fund (SCPRIF) provides loans for comprehensive environmental site assessments. The program review committee believes the advisory board that reviews the applications should not lose sight of the intent of the program and should not impose requirements unduly limiting funds to brownfields where the future use of a site has been determined already. The committee recommends program materials and procedures be revised to eliminate such requirements. In addition, operating procedures and eligibility criteria should be specified in regulations.
The Urban Sites Remedial Action Program (USRAP) provides financial and technical assistance for investigating and cleaning up environmental contamination. Selected projects have enhanced the economic well-being of their respective communities by stabilizing neighborhoods and creating jobs. In order to provide resources to aid communities recently deemed eligible for the program and supplement the proposal to increase the identification of specific remediation needs, the committee recommends additional funds for USRAP.
A surcharge on gross receipts from dry cleaning services is available to provide grants to owners and operators of dry cleaning establishments for remediation and prevention of environmental pollution at these businesses. The program review committee finds the rules adopted by the Department of Economic and Community Development have placed limitations on the dry cleaning program that exceed those spelled out by the General Assembly. The committee recommends statutory clarification of the eligibility criteria and level of assistance.
Based on a survey of municipalities, the committee finds knowledge of existing brownfield-related programs is limited. Additional steps should be taken to promote awareness, including preparation and distribution of written program summaries to a wider range of entities.
RECOMMENDATIONS
- State financial assistance for brownfields in the short-term should be focused more heavily on site assessments.
- The Department of Economic and Community Development should fulfill its administrative responsibility and maintain an up-to-date list of Special Contaminated Property Remediation and Insurance Fund (SCPRIF) Advisory Board members, their appointing authority, and the perspective each member represents. In addition, the commissioner should notify the appropriate appointing authority whenever a vacancy occurs.
- SCPRIF program materials and procedures should be revised to eliminate requirements that Phase I assessments must already be underway when entities submit a pre-application for a SCPRIF loan and that specific re-use plans must exist for a site.
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The Department of Economic and Community Development and the SCPRIF Advisory Board shall be required to promulgate regulations for the operation of the Special Contaminated Property Remediation and Insurance Fund established under C.G.S. Sections 22a-133t and 22a-133u. At a minimum, the regulations should specify any eligibility criteria the board is requiring beyond those already statutorily specified as well as the process being used to evaluate projects.
- An additional $3 million shall be authorized for the Urban Sites Remedial Action Program.
- The Department of Economic and Community Development should rewrite the program materials to clarify the differences between the Urban Sites Remedial Action Program (USRAP) and Economic Development Initiative Sites (EDI) programs. Future presentations of data for the two programs should distinguish between the participants in each.
- C.G.S. Sec. 12-263m shall be amended to specify limits on the number of years a dry cleaning establishment can receive grants and the circumstances under which an applicant will be ineligible for consideration, including nonpayment of taxes and pending lawsuits.
In addition, the Department of Economic and Community Development shall be required to promulgate regulations for the operation of the dry cleaning remediation program. At a minimum, the regulations should specify:
- limits on the number of years an establishment can receive grants;
- circumstances under which an applicant will be ineligible;
- how ownership is defined and the effect of lease arrangements on participation in the program; and
- the types of project costs allowable under the program.
- The Department of Economic and Community Development should prepare an informational mailing for the April 1999 grant cycle to be sent out by the Department of Revenue Services (DRS) with the quarterly surcharge payment forms.
- The Department of Economic and Community Development should sponsor a second cycle of grants in the fall of 1999, if the dry cleaning remediation program does not attract at least seven new applicants for the April 1999 grant cycle.
- The Department of Economic and Community Development shall be required to submit a report on the Dry Cleaning Establishment Remediation Fund to the joint standing committee of the General Assembly having cognizance of matters relating to the environment on February 1, 2000. The report shall indicate the number of applications received and the number and amount of the grants awarded annually since the start of the program. It shall also include a recommendation as to whether the grant program and the gross receipts tax under C.G.S. Sec. 12-263m should continue.
- The Department of Environmental Protection should complete the planned guidance document for environmental professionals regarding the conduct of site investigations by March 15, 1999.
- The Department of Economic and Community Development should prepare and distribute written summaries of the major brownfield-related programs, including SCPRIF, USRAP, EARLF, voluntary remediation, and the dry cleaning fund to relevant professional organizations, lending institutions, libraries, and higher education institutions.
- The reference to "subsection (n)" in C.G.S. Sec. 22a-134e(b) shall be changed to "subsection (p)"; and the reference to "section 22a-133w" in C.G.S. Sec. 22a-134e(p) shall be changed to "section 22a-133y."