Brownfields cleanup memo, September 20, 2002

s PM; U. S. HOUSE OF PEPS. ; 202 225 3094 Memo To: RLE, SLK, PES From: WPG Date: 9/20/2002 Re: The Statue of Brown Fields in Maryland Background: BROWNFIELDS VOLUNTARY CLEANUP PROGRAM • Program is 5 years old - enacted in 1997under the Signature Smart Growth Program • 55 sites cleared in 5 years - 45 were "no further action" - 10 certificates of completion, which indicates remedial action • Average of 1 1 sites per year, and only 2 certificates of completion per year. • MD Department of Economic Development (DBED) has a Brownfields Revitalization Incentive Program (BR1P) • For 5 years after cleanup of the site, the site qualifies for a real property tax credit between 50% and 70% of the increased value of the site. (In an Enterprise Zone, the tax credit may last for up to 10 years.) This credit, combined with other real property tax credits, may not exceed 100% of the tax on the increased value of the site. Key components of the Voluntary Cleanup Program (VC?) program in Maryland include eligibility and application requirements, the streamlined cleanup process and liability limitations. Eligible applicants may be either responsible persons (as defined under existing Maryland law) or prospective owners who have not previously owned the property and did not cause or contribute to contamination at the property (persons who knowingly or willfully violated a law or regulation concerning hazardous waste are not eligible). Eligible properties are those contaminated or perceived to be contaminated by hazardous substances. CERCLA National Priorities List, under active enforcement by MDE, subject to a State-issued controlled hazardous substances permit or contaminated after October 1, 1997 and owned or operated by a "responsible person" (unless contaminated through natural events) are not eligible. These exclusions are intended to eliminate the most severely contaminated sites, sites regulated under another authority and newly contaminated properties. In addition to an application, an eligible party must submit a Phase I and П environmental site assessment, all known environmental information and an application fee of $6,000. Applicants and participants are required to pay for MDE oversight costs. If the cost of application review and oversight exceeds the $6,000 application fee, the participant will be billed by MDE for additional costs. Unused fees are refunded at the conclusion of the Voluntary Cleanup Program process. Within 60 days after receipt of a complete application package, MDE will notify the applicant in writing whether the application is approved or denied and, if approved, whether the C