Congress invited testimony from former National Brownfields Coalition Steering Committee member Michael Goldstein, giving the Coalition another opportunity to champion the federal brownfields program and highlight potential improvements.
On Wednesday, May 7th, the House Transportation and Infrastructure and Subcommittee on Water Resources and the Environment Subcommittee held a hearing focused on brownfields. Michael Goldstein, Managing Partner at Goldstein Environmental Law Firm and former National Brownfields Coalition Steering Committee member, testified on the need to restore the federal brownfields tax incentive, to increase flexibility and the amount of funds available through the brownfields program, and to provide additional support for brownfield to affordable housing projects.
Brownfields, meaning real property where expansion, redevelopment, or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant, are a key barrier to growth in communities across the country. When brownfields, which are not typically contributing the potential taxes they could if redeveloped, are remediated and redeveloped with monetary incentives there is typically a 2-3 times return in tax revenue as the property itself is returned to productive use and the values of adjacent properties increase. Congress is currently considering modernizing and reauthorizing the federal brownfields program and is also considering a tax package which could include the restoration of a separate brownfields redevelopment tax incentive.
Representative Mike Collins (R-GA-10), Chairman of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment, opened the hearing by flagging the success of the brownfields program in terms of jobs and properties remediated, the way the spectre of assuming liability for contaminants can dissuade developers from taking on brownfields, and the role of EPA’s brownfields programs in helping to bridge that uncertainty and spur redevelopment. He also flagged his desire to reduce red tape and streamline processes where possible, particularly as it relates to permitting.
According to EPA, since its inception, the program has made over 10,800 sites ready for productive reuse, leveraged more than $40.4 billion in additional cleanup and redevelopment funding, and helped to create or leverage more than 270,000 jobs.” – Chairman Mike Collins on the impact of EPA’s Brownfields programs
Representative Frederica Wilson (D-FL-24), Ranking Member of the Subcommittee, then highlighted that brownfields are found in communities of all types and voiced her concerns with President Trump’s recent actions and recommendations for funding at EPA.
After opening remarks, the chairman introduced the four witnesses, all of which provided five minutes of opening remarks. The witnesses included Goldstein, the clerk of Oswego County, NY on behalf of the National Association of Counties, a leader from Ohio’s Environmental Protection Agency, and an environmental policy analyst from the Congressional Research Service. All four witnesses spoke to the value of EPA’s programs and provided specific recommendations or historical background on the program.
During his testimony, Mr. Goldstein made many policy recommendations that aligned with the priorities for brownfields reauthorization identified by the National Brownfields Coalition, including increasing overall program resources, removing match requirements, and increasing the maximum amount for individual grants. He also made the case for restoring the brownfields redevelopment tax incentive to allow taxpayers to fully deduct the cleanup costs of contaminated property in the year the costs were incurred, the priority provision for the coalition in a pending tax package. He also spoke to the catalytic nature of the brownfields funding and the way it drives public-private partnerships to address difficult, but well-located, contaminated sites.
Members across the political spectrum applauded the brownfields program and discussed a range of potential ways brownfields redevelopment could be further supported by reforms and expansions of existing programs or modifications to supporting regulations. The hearing builds on the positive, bipartisan support for brownfields programs that was displayed earlier this year during a House Energy and Commerce Subcommittee on the Environment hearing on brownfields and economic revitalization.
“This is not just about the environment and cleaning up sites, which is very important, but this is about economic development, putting people to work, making sure we’re using our land productively, and giving people an opportunity throughout our country…”– Representative Emilia Sykes (D-OH-13)
The National Brownfields Coalition hopes to see Congress pass a reauthorization of EPA’s brownfields programs and include a separate restoration of the brownfields redevelopment tax incentive in any tax legislation passed this Congress. Representatives Mikie Sherrill (NJ-11) and Mike Turner (OH-10) recently reintroduced the authorizing legislation for a brownfields tax deduction (H.R. 815), which seeks to spur redevelopment, create jobs, and enhance community well-being in communities across the country by allowing taxpayers to fully deduct the cleanup costs of contaminated property in the year the costs were incurred. The reauthorization work is also progressing: the Senate Environment and Public Works committee unanimously passed a bipartisan reauthorization bill in February of this year and the House Energy and Commerce Subcommittee on the Environment held a hearing to kick off their work on their version of the bill in March.
Through both grant funding and tax deductions, Congress can take action to support local communities in their efforts to undertake much-needed assessments and remediation of contaminated sites and engage in equitable community redevelopment. The National Brownfields Coalition applauds the work done to date from Congress to advance brownfields revitalization and looks forward to further engaging with Congress to continue advancing this legislation.
The National Brownfields Coalition is a unique, non-partisan alliance that advocates for policy change and funding to responsibly clean up and reuse underutilized or environmentally-impacted land. We educate, advocate, and convene stakeholders nationally to advance brownfields redevelopment and thriving communities.