Brownfield Sites
Brownfields are real property, the expansion, redevelopment or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Brownfield sites include all real property, including residential, commercial and industrial properties. Cleaning up brownfields for redevelopment is a critical component of the community revitalization and economic growth of the State, especially its urban areas. Reinvesting in a brownfield can have many advantages, including reusing existing infrastructure, saving money through tax incentives and government grants, taking advantage of labor concentration, promoting smart growth, and preserving architectural and historic beauty – all while cleaning the environment and reducing health risks.
Goals and Objectives
The goals and objectives of the Brownfields program are to:
- Clean up, and return to productive uses, the State's brownfields in order to create jobs, contribute to the tax base, eliminate potential health risks and reclaim public enjoyment of natural resources;
- Provide appropriate protection of the natural resources of the State from any further environmental degradation;
- Leverage private and public funds to create jobs, community revitalization and economic growth;
- Involve community groups as part of the brownfields cleanup decision-making process; and
- Improve the quality of life and promote environmental justice in neighborhoods near and around the State's brownfields.
Rhode Island is recognized as a leader in brownfields cleanup and redevelopment. Reflecting our commitment to and success in redeveloping brownfields, RIEDC has received numerous brownfields grants from the United States Environmental Protection Agency, described below, that enable us to further these critical efforts. At the time Rhode Island received its original grants from EPA, there were virtually no private funding resources in the State to finance the cleanup of brownfields. That was a critical factor in the previous lack of brownfields redevelopment, and contributed to the proliferation of urban sprawl.
Fortunately, due to greater lender experience with brownfields, private funding may now be more accessible. Still, in many cases a brownfields loan or grant is the key to leveraging the additional funding needed to make a project viable. It can make the difference between a project that moves forward and one that stalls. Comprehensive information about the State’s brownfields program, including the two grant programs described below, can be found on the State brownfields website at http://www.dem.ri.gov/brownfields/default.htm
Brownfields Assessment Grants
RIEDC initially received a $200,000 Brownfields Assessment Demonstration Pilot grant from EPA that allowed RIEDC to provide funding to Local, State and tribal governments to conduct site investigations and related activities at brownfields sites throughout the state. Assessing the contamination that may be present at a site is a critical first step in planning for an appropriate future use for a site. In 2004, EPA awarded us a new $400,000 Brownfields Assessment grant.
Brownfields Cleanup Revolving Loan Fund
Under a September 2003 Cooperative Agreement with the EPA, RIEDC, in conjunction with the Rhode Island Department of Environmental Management (RIDEM), received a $3 million EPA Brownfields Cleanup Revolving Loan Fund (RLF) grant. A portion of the grant is earmarked for sites in Providence and Pawtucket. In 2004, EPA awarded RIEDC and RIDEM an additional $600,000, with a portion of the funds earmarked for sites in East Providence. These two grants follow an initial $1.7 million RLF Pilot grant to RIEDC and RIDEM that was awarded in 2000.
The RLF program is intended to provide a sustainable financing mechanism for site cleanup and consequent return of the properties to beneficial, economically productive use. RIEDC uses the funds to make loans at below-market rates to private, public and not-for-profit entities to remediate eligible brownfields sites. Additionally, grants of up to $200,000 are available to public or not-for-profit entities that own an eligible brownfields site to conduct remediation activities on the site. As a 'revolving' loan fund, the program uses loan repayments (principal, plus interest and fees) to make new loans for the same authorized purposes.
While Rhode Island's administration of its RLF program is considered a success story, the most important factor in maintaining the State' track record, as well as successfully competing for additional funding from EPA, is the loan fund's success in coordinating projects and financially supporting the revitalization of brownfields. Thus, RIEDC brownfields staff encourage any party that is seeking funding to remediate a brownfields site to contact us. We are continuously working with Federal, non-profit and private partners to broaden the portfolio of financial resources to benefit Rhode Island communities that have brownfields, and we will provide guidance and assistance in any way we can.
William Parsons