text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Brownfield Cleanup and Redevelopment 
  Revolving Loan Fund Pilot Project Act of 1997''.
  
  SEC. 2. FINDINGS AND PURPOSES.
  
      (a) Findings.--The Congress finds:
              (1) Nationwide, older abandoned or under-used commercial 
          and industrial sites known as brownfields are often overlooked 
          for redevelopment because of real or perceived contamination 
          from past commercial or industrial activities.
              (2) Reuse of these sites often requires site assessment and 
          cleanup, adding costs and uncertainties to the redevelopment 
          process, and prompting many developers to pursue cheaper, less 
          complicated development options on undeveloped sites.
              (3) Brownfields are at a competitive disadvantage relative 
          to greenfield sites, as capital for their cleanup and 
          redevelopment may not be available. Often located in distressed 
          areas, brownfields, owned by public, private, or nonprofit 
          entities, are frequently unable to secure financing for site 
          remediation.
              (4) States have created remedial action programs to allow a 
          person to respond voluntarily to a release or suspected release 
          of hazardous substances at low and medium priority facilities. 
          Such programs have flourished due to the States' ability to 
          streamline duplicative State and Federal regulatory 
          requirements and affect a timely, cost-effective, and 
          environmentally protective cleanup of sites.
              (5) Because of their experience in administering targeted 
          loan assistance programs, States are in a good position to use 
          Federal funds to capitalize revolving loan funds to support 
          local cleanup and redevelopment projects.
      (b) Purpose.--The purpose of this Act is to establish a pilot 
  project to revitalize distressed communities by providing loans for 
  cleanup of eligible brownfield facilities and properties that are 
  remediated through State voluntary cleanup programs and that have the 
  potential to attract private investment, foster clean manufacturing, 
  and create jobs for local residents.
  
  SEC. 3. PILOT PROJECT PROVIDING REVOLVING LOAN FUND FOR CLEANUPS UNDER 
                STATE VOLUNTARY CLEANUP PROGRAMS.
  
      (a) Establishment of Loan Program.--The Administrator of the 
  Environmental Protection Agency (hereinafter in this Act referred to as 
  the ``Administrator'') shall establish a pilot project to provide a 
  capitalization loan to one or more States that submit applications to 
  the Administrator to establish or expand a State revolving loan fund 
  for purposes of providing loans for voluntary environmental cleanups of 
  eligible facilities.
      (b) Application for Loan.--An application for a capitalization loan 
  under this section shall be in such form as the Administrator considers 
  appropriate. At a minimum, the application shall include each of the 
  following:
              (1) Evidence that the State is carrying out a voluntary 
          cleanup program for eligible facilities. The Administrator 
          shall ensure that the State voluntary program provides, at a 
          minimum, adequate opportunities for meaningful public 
          participation, sufficient technical assistance, and adequate 
          oversight and enforcement authority to ensure that cleanups 
          protect human health and the environment, adequate resources 
          are available to carry out cleanup, and certification from the 
          State to the owner or prospective purchaser that the cleanup is 
          complete.
              (2) Evidence that the State will provide a matching share 
          of at least 20 percent of the costs of such cleanup from either 
          new or existing sources of State funding.
              (3) A description of the State's proposed revolving loan 
          program and of the State's capability to manage the program. 
          States may use interest income or loan repayments (in an amount 
          equal to not more than 10 percent of their revolving loan 
  fund amount) for program administrative purposes. At a minimum, the 
  State's revolving loan program shall--
                      (A) provide loans to both public and private 
                  parties conducting voluntary cleanups under the State's 
                  voluntary cleanup program who are unable to secure 
  loans from private lending institutions or other means of financing;
                      (B) require that borrowers demonstrate credit 
                  worthiness and the ability to carry out the cleanup; 
                  and
                      (C) give priority to loans for the purpose of 
                  cleaning up--
                              (i) facilities that are planned to be 
                          reused for industrial purposes that employ 
                          environmentally sound practices; and
                              (ii) facilities that will generate jobs for 
                          contractors whose principal place of business 
                          is the political subdivision in which the 
                          facility is located or for laborers who reside 
                          in such political subdivisions.
              (4) A statement that the State will begin repayment of the 
          loan within 5 years after receipt of the loan, and evidence of 
          the State's ability to repay the loan.
              (5) A statement that a loan from the revolving loan fund 
          will not be used to pay for any of the following:
                      (A) New construction at previously undeveloped 
                  sites.
                      (B) Environmental fines or penalties.
                      (C) Speculative assessments or speculative 
                  rehabilitation at facilities with little or no 
                  potential for economic development.
              (6) Such other elements as the Administrator considers 
          appropriate.
      (c) Amount of Loan.--The Administrator shall determine the 
  distribution of funds among the eligible States. The amount of a 
  capitalization loan made by the Administrator under this Act to a State 
  may not exceed 15 percent of the amount available each year to all the 
  eligible States.
      (d) Authorization.--There are authorized to be appropriated to the 
  Administrator for purposes of making capitalization loans to States 
  under the pilot project established by this section the sum of 
  $5,000,000 for fiscal year 1998 and $7,500,000 for each of the fiscal 
  years 1999 and 2000.
  
  SEC. 4. DEFINITIONS.
  
      For purposes of this Act, the term ``eligible facility'' means a 
  facility or property that is a low- or medium-priority environmental 
  hazard for the State, but whose environmental contamination is thought 
  to be preventing the timely use, redevelopment, or reuse of the 
  facility or property, and is thought to be limited in scope and readily 
  assessable, except that such term shall not include any of the 
  following:
              (1) A facility for which an abatement action has been taken 
          or is scheduled to be taken under section 106 of the 
          Comprehensive Environmental Response, Compensation, and 
          Liability Act of 1980 or for which an action has been taken or 
          is scheduled to be taken under section 7003 of the Solid Waste 
          Disposal Act.
              (2) A facility that is the subject of a Federal response 
          action under section 104 of the Comprehensive Environmental 
          Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
          9601 et seq.).
              (3) A facility included on the National Priorities List or 
          proposed for inclusion and for which documentation for listing 
          has been prepared by the State or the Administrator.
              (4) A facility required to have a permit under section 3005 
          of the Solid Waste Disposal Act that does not have a permit 
          under that section and does not qualify for authorization to 
          operate in interim status under subsection (e) of that section.
              (5) A land disposal unit with respect to which a closure 
          requirement under subtitle C of the Solid Waste Disposal Act 
          (42 U.S.C. 6921 et seq.) is submitted and closure requirements 
          are specified in a closure plan or permit.
              (6) A facility that is the subject of a corrective action 
          under section 3004(u) or 3008(h) of the Solid Waste Disposal 
          Act (42 U.S.C. 5924(u) or 6928(h)) that has been evaluated as 
          high priority under the Environmental Protection Agency's 
          National Corrective Action Priority System as set forth in 
          regulations under subtitle C of the Solid Waste Disposal Act.
              (7) A facility at which assistance for response activities 
          may be obtained pursuant to subtitle I of the Solid Waste 
          Disposal Act (42 U.S.C. 6991 et seq.) from the Leaking 
          Underground Storage Tank Trust Fund established under section 
          9508 of the Internal Revenue Code of 1986.
              (8) A facility owned or operated by a department, agency, 
          or instrumentality of the United States.
target: Brownfield Cleanup and Redevelopment Revolving Loan Fund Pilot Project Act of 1997 - Directs the Administrator of the Environmental Protection Agency to establish a pilot project of capitalization loans to States to establish or expand revolving loan funds for voluntary cleanup of eligible facilities.  Defines "eligible facility," with exceptions, as a facility or property that is a low- or medium-priority environmental hazard for the State but whose environmental contamination is thought to be:  (1) preventing the timely use, redevelopment, or reuse of the facility or property; and (2) limited in scope and readily assessable. 
  Authorizes appropriations.
feat_title: Brownfield Cleanup and Redevelopment Revolving Loan Fund Pilot Project Act of 1997