Governor's News Relase

September 17, 2003

Governor George E. Pataki today visited Suffolk County to hail the State Senate's passage of landmark legislation that will refinance and reform the State's Superfund Program to help clean thousands of contaminated properties across New York State, while encouraging new investment and redevelopment.

"This historic legislation represents a victory for all New Yorkers. I applaud the Legislature for voting to restore our Superfund Program so we can move forward to clean up hazardous waste sites and return them to productive use," Governor Pataki said. "By taking steps to protect our environment, this legislation will generate new opportunities for economic growth, bringing new jobs into communities around the state, while protecting the health of all New Yorkers."

The legislation, which has also been passed by the Assembly, will refinance and reform the State's Superfund Program; create a new State Brownfields Program to encourage private investment through liability reform, tax incentives, and a predictable process for cleaning up and redeveloping brownfields; improve the municipal Brownfields Program funded through the 1996 Clean Water/Clean Air Bond Act to encourage even more municipal participation; and implement liability reform to the State Superfund Program and Oil Spill Program.

Senator Carl Marcellino said, "Under the leadership of Governor Pataki, New York State has always been a national leader in the environmental protection arena and we have continued that tradition by passing this comprehensive legislation. This bill will put brownfields back on the tax rolls and make them assets rather than letting them eat away at the heart of our cities, towns and villages like cancer. By creating a Brownfield Cleanup Program and refinancing the State Superfund we will promote the physical, economic and social revitalization of our communities. By working together we have set in motion a policy to reverse lost years of action that have doomed localities to unremediated contamination and further public exposure to numerous toxic pollutants. This program provides clear, achievable standards that will encourage redevelopment and stimulate both environmental and economic benefits and growth."

Assemblyman Thomas P. DiNapoli said, "New York will now have a framework to remediate contaminated sites retaining the nation's most protective cleanup standards, while providing developers, municipalities and community-based organizations with a predictable process, financial incentives and liability relief. By cleaning up brownfield sites and refinancing the State's Superfund program, not only will environmental threats be removed from communities throughout the state, but local economies will also be revitalized. This is a momentous agreement that will provide tremendous benefits for generations to come."

The proposal builds upon the State's nearly 20 years of experience in cleaning up contaminated properties by making the programs more effective. It maintains the highest cleanup standards in the nation, retains the 'polluter pays' philosophy, expands the types of sites eligible for cleanup, provides expanded liability relief, ensures consistency with federal law and provides enhanced financial incentives to municipalities and volunteers to investigate, remediate, and redevelop brownfields.

Suffolk County Executive Robert Gaffney said, "New York State's Superfund Program has been invaluable in helping to clean up hazardous, toxic and polluted sites throughout the State, and Governor Pataki's decision to refinance this program is a welcomed one for New Yorkers and Long Islanders. Through his actions the Governor has once again shown his sincere commitment to helping protect and preserve our environment."

Suffolk County Clerk Edward Romaine said, "In emphasizing the significance of this legislation, Governor Pataki has given fresh impetus for its use to both protect our environment and give much needed stimulation to the state's and Suffolk County's economy. We deeply appreciate the fact that the Governor has chosen Suffolk County for his remarks."

Brownfields are properties where redevelopment is complicated by real or perceived environmental contamination based on prior uses. Brownfields often pose environmental and public health threats, as well as legal and financial burdens on communities. Left vacant, contaminated sites often threaten the economic viability of adjoining properties.

John Adams, President of the Natural Resources Defense Council, said, "This legislation closes a significant gap in the State's environmental law and puts in place one of the more ambitious brownfield programs in the country. The Governor, the Assembly and the Senate all deserve a lot of credit for dealing with the extremely complex set of tradeoffs required to address the clean up of Superfund and brownfield sites. NRDC and our colleagues in the environmental community had to make some very difficult choices. After all the give and take, we have an outcome, if properly implemented, that will be protective of public health while also encouraging the clean up and development of brownfield sites."

Sarah Meyland, Director of Citizens Campaign for the Environment, said, "We congratulate the Governor and the legislative leaders Senator Carl Marcellino and Assemblyman Thomas DiNapoli in finally bringing together all the forces to create a new law that will clean up toxic sites and rejuvenate blighted areas and help protect the environment in the future. In particular, we are very pleased with the groundwater protection components of this new law. This will really help New York both environmentally and economically."

James Tripp, General Counsel for Environmental Defense, said, "We are thrilled that the State Assembly and Senate have passed and the Governor will sign into law a new Superfund/Brownfields bill for the State of New York. The State will certainly benefit from the refinancing of the State Superfund program. It will benefit even more from the cleanup and remediation of thousands of acres of urban brownfields throughout the State that should result from this legislation. Over the next 10 years, this legislation should help to make our urban brownfields on Long Island and in New York City, the Hudson Valley and upstate New York magnets for urban regeneration, job growth, private investment and community participation."

Marcia Bystryn, Executive Director of the New York League of Conservation Voters Executive Director, said, "The passage of the Superfund/Brownfields legislation is a significant victory for the environment. Polluted and abandoned sites have been scarring our communities for too long. Now we can start the work of cleaning up these sites and returning many of New York's communities to environmental and economic health. The leadership of Governor Pataki and the Environmental Committee Chairs, Senator Carl Marcellino and Assemblyman Tom DiNapoli has been vital in moving this legislation forward."

The new legislation:

Provides Long-Term Funding - The legislation appropriates $168 million to be financed with a combination of bond funds, industry fees General Fund dollars and other sources. The funding includes:

• $120 million that will be made available on an annual basis for the State Superfund Program and financed with bonds issued by the Environmental Facilities Corporation, with State debt service costs offset by industry fees.
• $33 million for the Oil Spill Program to be financed by industry fees.
• $15 million for the new Brownfield Opportunity Areas planning program, technical assistance grants to community based organizations to participate in the Superfund and Voluntary Cleanup programs, the development of a Geographic Information System on the State's groundwater resources, and other hazardous waste remediation purposes. In addition, funding will allow DEC to provide appropriate staffing levels to implement the new programs.

Accelerates Brownfield Cleanup & Redevelopment - The legislation establishes a comprehensive package of tax credits with an estimated annual value of $135 million to offset costs associated with real property taxes, site preparation, water treatment expenses, and property improvements.

Under the package, tax credits increase for developers that voluntarily remediate a site to unrestricted use standards. The tax credit package also includes an innovative environmental insurance credit that will help to offset the costs developers might incur to purchase such policies.

Expands Sites Eligible for Cleanup under State Superfund Program- Allows for the clean up of hazardous substance sites, in addition to hazardous waste sites, which have been excluded from the State's Superfund program for 20 years. DEC has identified 274 hazardous substance sites that may pose a significant threat to public health and the environment that will now be addressed through the Superfund program.

Improves the Municipal Brownfields Program - Funded by $200 million from the 1996 Clean Water/ Clean Air Bond Act, the legislation improves the Brownfields Program by increasing the State grant to municipalities from 75 percent of eligible costs to 90 percent of eligible costs and allowing the municipality to leverage other funds to pay their share. More than $27 million has been committed to 116 projects in 62 communities across New York .

Provides Brownfield Area Planning Opportunities - Administered by the DEC, brownfield opportunity planning grants will be available to municipalities and community-based organizations to strategically plan for the redevelopment of brownfields within targeted urban areas.

Expanded Public Participation Opportunities - Technical Assistance Grants will be made available to municipalities and community based organizations to assist in evaluation of site data and the development of public areas.

Protective & Predictable Cleanups - Cleanups under the State Brownfields Program will continue to be fully protective of public health and the environment based on remedy selection criteria, including the current, future and reasonably anticipated land use; and the long-term effectiveness and permanence of the cleanup. Thorough and consistent investigations will continue to be required.

Four Soil Cleanup Tracks will be established: Track 1 - unrestricted use; Track 2- commercial and industrial use with groundwater engineering and institutional controls; Track 3 - unrestricted, commercial and industrial use with engineering and institutional controls; and Track 4 - site-specific soil cleanup objectives using site-specific information. Reform to Liability Scheme: Liability relief is provided to municipalities, lenders, and innocent third parties under the Superfund Program, while continuing to hold the polluter responsible for the cleanup. A new affirmative defense will provide liability relief to innocent parties under the Oil Spill Program.

Department of Environmental Conservation (DEC) Commissioner Erin M. Crotty said, "Governor Pataki has made Superfund legislation one of his top priorities, and every region in the State can benefit from the measures included in this initiative. This legislation enables us to foster revitalization of our downtown areas and waterfronts, as we implement remedial projects that will restore communities to their full economic and environmental potential."

Since 1986, the State Superfund has provided $1.2 billion for cleanup of more than 800 contaminated sites across New York State. However, the State Superfund funded by the 1986 Environmental Quality Bond Act was fully allocated as of March 31, 2001. DEC estimates that at least an additional 800 Superfund sites are still in need of investigation or remediation. ###