Frank Lautenberg: “This large potential funding source for brownfields remediation is what my amendment will address by removing one…”

“This large potential funding source for brownfields remediation is what my amendment will address by removing one barrier to brownfields redevelopment. My amendment allows tax-exempt entities to invest in brownfield sites without the risk of incurring UBIT liability, provided that certain conditions are met. First, the appropriate State environmental agency must certify that the property is a brownfield site within the meaning of the Federal Superfund definition. The amendment does not set up a new certification procedure for this purpose, but rather piggybacks on a process already in place under section 198 of the Tax Code to provide tax incentives for commercial brownfield developers. In fact, another provision of the manager's substitute amendment extends section 198 through the end of 2005. Second, the remediation effort must be a significant one. It must cost more than $550,000, or 12 percent of the fair market value of the site, determined as if the site were not contaminated. By establishing relatively high thresholds for eligibility, the amendment excludes incidentally contaminated property and focuses new capital investment at sites that are most in need of assistance. Third, the site must be cleaned up to comply with all environmental laws and regulations. Finally, after the cleanup the state environmental agency or EPA must certify that the property is no longer a brownfield site.”