Division of Environmental Remediation Fact Sheet

Brownfields are abandoned, idled, or under-used properties where expansion or redevelopment is complicated by real or perceived environmental contamination. They typically are former industrial or commercial properties where operations may have resulted in environmental contamination. Brownfields often pose not only environmental, but legal and financial burdens on communities. Left vacant, contaminated sites can diminish property value of surrounding sites and potentially threaten the economic viability of adjoining properties.

RESOURCES AVAILABLE FOR COMMUNITY REDEVELOPMENT

In an effort to spur the cleanup and redevelopment of brownfields, Governor Pataki proposed, and New Yorkers approved, a $200 million Environmental Restoration or Brownfields Fund as part of the $1.75 billion Clean Water/Clean Air Bond Act of 1996 (1996 Bond Act). Under the Brownfields Program, the State provides grants to municipalities to reimburse up to 75 percent of eligible costs for site investigation and remediation activities. Once remediated, the property may then be reused for commercial, industrial, residential or public use.

Liability Limitation

• The municipality and all successors in title, lessees, and lenders are released from remedial liability for hazardous substances that were on the property prior to the grant.
• The State indemnifies these same persons in the amount of any settlements/judgements obtained regarding an action relating to hazardous substances that were on the property prior to the grant.
• Such person shall be entitled to representation by the State Attorney General.

Eligibility

• New York State municipalities are eligible. The term "municipality" includes counties, cities, towns and villages as well as local public authorities, public benefit corporations, school and supervisory districts and improvement districts.
• The municipality must own the property and cannot be responsible for the contamination.
• The purpose must be to investigate or remediate hazardous substances or petroleum on the property.
• The property cannot be listed as a Class 1 or 2 site on the New York State Registry of Inactive Hazardous Waste Disposal Sites.

Remediation projects are evaluated based upon four criteria defined in the 1996 Bond Act:

1.   benefit to the environment;
2.   economic benefit to the State;
3.   potential for public or recreational use of the cleaned up property; and
4.   availability of other funding sources to pay for the project.

Two Types of Grants:

1. Investigation Grants

• The purpose is to determine the nature and extent of contamination and then determine the appropriate remedy.
• Investigations follow the same process as a Remedial Investigation/Feasibility Study used in the State Superfund Program.
• Includes public input on the selection of the cleanup remedy and ends with a Record of Decision (ROD).
• Investigation applications are handled on a first come, first served basis.

2. Remediation Grants

• Remediation includes the Design and Construction of the cleanup selected in the ROD.
• Projects are prioritized using a priority ranking score based on the four criteria in the 1996 Bond Act.
• Remediation applications are reviewed, scored, ranked and approved on a periodic basis.

Loans for Environmental Improvements

Under its Clean Water State Revolving Fund (CWSRF), the New York State Environmental Facilities Corporation (EFC) can help municipalities finance facilities that reduce or prevent water pollution. Water quality protection portions of Brownfields projects are generally eligible for CWSRF financing.

• The CWSRF can prefinance design and construction costs prior to reimbursement of the State share from the 1996 Bond Act.
• CWSRF interest-free, short-term loans allow municipalities to design and initiate construction without the interest expense associated with bond anticipation notes.
• The CWSRF can finance the local share (non-grant portion) of Brownfields investigation and remediation projects with long-term, low-interest loans. The current 50 percent interest rate subsidy can save the municipality substantial interest costs over the life of the loan.
• Some costs which are ineligible for the Brownfields Program may be eligible for funding through the CWSRF.

HOW TO ACCESS PARTNER RESOURCES

Please contact the person listed below for additional information regarding the Brownfields Program. Guidance documents are available which outline the program and the application process.

POINT OF CONTACT

Christine Costopoulos
Chief
Brownfields and Voluntary Cleanup Section
New York State Department of Environmental Conservation
625 Broadway
Albany, NY 12233-7012
(518) 402-9711
cjcostop@gw.dec.state.ny.us

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