The following is an excellent summary of how the Pennsylvania State Hazardous
Sites Cleanup Fund has gone from tens of millions of dollars per year, to zero
dollars (starting in 2003) due to the reduction (and gradual elimination) of
the Capital Gains and Franchise Tax. Note that this is the after effects of
legislation from the former RIDGE administration. True, the General Fund will
be expected to restock the 30 million when the 5 million dollar trigger is
activated. However, there is quite a bit of competition for the limited General
Fund. Thanks again, Ridge.
From an excellent source: http://thenewseagle.com/environ4.html
Land Recycling
Facing Funding Shortfall
"Funding is job one. If we can solve that problem, then we have promising
opportunities to build upon and expand our success."
The Land Recycling and Environmental Remediation Standards Act (Act 2 of 1995)
and the Industrial Sites Assessment Act (Act 4 of 1995) are funded by the
Hazardous Sites Cleanup Act (HSCA) Fund. But that fund is drying up as the
Capital Stock and Franchise Tax, its primary funding source, is phased out,
Secretary McGinty said.
The problem is exacerbated by the fact that Growing Greener has drawn about $30
million from HSCA, which also supports some 300 department personnel who spend
some or all of their time working in the land recycling and hazardous sites
cleanup programs. It is expected that the HSCA fund will be fully depleted by
the third quarter of 2005.
"Without HSCA funds, key grants and low-interest loans that currently
underwrite the costs of environmental assessments and remediation efforts will
be gone. If that occurs, many brownfields efforts will come to an abrupt halt,"
Secretary McGinty said. "A continued source of funding for the HSCA fund is
urgently required."
Secretary McGinty said the continued success of Pennsylvania's brownfields
program depends in no small measure on Governor Edward G. Rendell's Plan for a
New Pennsylvania, which will provide critical investments in sites across the
Commonwealth that remain blighted and are desperately in need of investment.
Part of that funding, the Business in Our Sites fund, would provide a $300
million revolving loan fund for local municipalities and their economic
development partners to create future business growth and attract opportunities
through the acquisition and preparation of key sites for development.
"The land recycling program is critical for redeveloping blighted areas,
revitalizing downtowns and strengthening communities," Secretary McGinty said.
"I look forward to working with the General Assembly to ensure a dedicated
funding stream for our award-winning program that truly has become the model
for the nation."
Secretary McGinty outlined initiatives identified as crucial to the program's
success drawn from a series of focus groups that she convened in May and June
with individual companies, a variety of cities and municipalities,
environmental groups, statewide associations and organizations, and other
stakeholders involved with the remediation and redevelopment of brownfield
properties. Among those priorities:
-- Extend the benefits of the brownfields program to abandoned mine lands, what
some now call "greyfields." At the federal level, progress has been made in
this regard: New federal legislation expands the definition of "brownfield"
expressly to include mine-scarred land.
-- Launch an initiative to provide special incentives for smaller brownfield
sites that often fail to attract investor interest because costs associated
with characterization, assessment and remediation are too high for a small
project to bear.
-- Examine potential revisions to regulations to afford greater consistency in
assessment and attainment requirements across the Commonwealth.
-- Charge the Cleanup Standards Scientific Advisory Board to examine a revision
of regulations to enable the movement of materials that contain arsenic where
the levels are below natural background. Natural concentrations of arsenic in
many areas of the Commonwealth exceed the statewide health direct-contact
standard, and current regulations can deter site reuse. A presentation on this
issue is already scheduled for the upcoming board meeting July 22, 2003.
-- Make Pennsylvania's land recycling program a one-stop shop for cleanup
efforts. The Secretary directed department staff to pursue an agreement with
the U.S. Environmental Protection Agency to clarify that sites remediated under
Act 2 also satisfy requirements for the Resource
Conservation and Recovery Act (RCRA) and the Comprehensive Environmental
Response Compensation Liability Act (CERCLA), the federal Superfund law. There
continues to be concern among the remediation community about liability that
may exist at the federal level.
-- Require more rigorous enforcement in some respects. A 2002 audit, for
example, has shown some 25 percent of sites surveyed did not implement
engineering controls or deed restrictions as required. McGinty has directed DEP
staff to develop proposed changes to address these serious issues, including
the potential loss of liability protection.
-- Enhance enforcement, as suggested by the focus groups, as a way to curtail
the practice of mothballing properties. Many property owners are reluctant to
offer for sale or initiate the remediation of properties with likely
environmental liabilities. Rather than face the ramifications of disclosing
contamination liabilities, owners of these properties often "mothball" or
simply abandon them. This practice is contradictory to community efforts to
redevelop and revitalize.
"In the 21st century, environmental protection and economic development must
proceed together, and under the Rendell Administration, they will," Secretary
McGinty said. "We need to create a permanent link between our efforts to clean
and maintain our environment and create jobs and revitalize communities."
Collectively, the Land Recycling and Environmental Remediation Standards Act
(Act 2 of 1995), the Economic Development Agency, Fiduciary and Lender
Environmental Liability Protection Act (Act 3 of 1995), and the Industrial
Sites Assessment Act (Act 4 of 1995) make up the Pennsylvania Land Recycling
Program.
For a transcript of Secretary McGinty's remarks to the Senate committee, visit
DEP's Web site at http://www.dep.state.pa.us/dep/mcginty/remarks.htm. For more
information on reusing old industrial sites, visit the PA PowerPort at
www.state.pa.us, PA Keyword: "Land Recycling."
http://members.aol.com/hydratwo
http://groups.yahoo.com/group/paenvironment/