text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Brownfield Cleanup and Redevelopment 
  Revolving Loan Fund Pilot Project Act of 1996''.
  
  SEC. 2. FINDINGS AND PURPOSES.
  
      (a) Findings.--The Congress finds the following:
              (1) Contaminated and underused or abandoned industrial 
          sites in distressed communities are, economically, at a 
          competitive disadvantage relative to greenfield sites, as 
          capital for their cleanup and redevelopment may not be 
          available.
              (2) Contaminated and underused and abandoned industrial 
          properties located in distressed areas, owned by private, 
          public, or nonprofit entities, often with significant economic 
          development potential once cleaned up, are unable to secure 
          initial financing for site remediation.
              (3) Considerable public benefits can accrue from such sites 
          once cleaned up and brought back to productive reuse, 
          especially those devoted to industrial purposes that employ 
          environmentally sound practices.
              (4) Voluntary cleanup programs spur private sector cleanups 
          when the property value is sufficient and its location 
          favorable enough to make the additional costs of cleanup 
          economically feasible, but this approach does not resolve the 
          problems facing properties with little or no value, common 
          among sites located in economically distressed areas.
              (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 certain industrial properties 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 
          minium, adequate opportunities for public participation, 
          sufficient technical assistance, and oversight to ensure that 
          cleanups comply with Federal and State laws, and certification 
          to the owner and 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.
                      (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 1996 and $7,500,000 for each of the fiscal 
  years 1997 and 1998.
  
  SEC. 4. DEFINITIONS.
  
      For purposes of this Act the term ``eligible facility'' means a 
  facility or property in a State that is determined by the State to have 
  environmental contamination that--
              (1) could prevent the timely use, development, or reuse of 
          the facility or property; and
              (2) is limited in scope and can be comprehensively and 
          readily evaluated.
          Such term shall not include any of the following:
              (A) A facility that is eligible for abatement action under 
          section 106 of the Comprehensive Environmental Response, 
          Compensation, and Liability Act of 1980.
              (B) A facility that, as of the date of the enactment of 
          this Act, is subject to Federal enforcement action under the 
          Comprehensive Environmental Response, Compensation, and 
          Liability Act of 1980 (42 U.S.C. 9601 et seq.).
              (C) A facility included, or proposed for inclusion, on the 
          National Priorities List or on the comprehensive environmental 
          response, compensation, and liability inventory system 
          (``CERCLIS'') that has been evaluated as high priority under 
          the hazard ranking system.
              (D) 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.
              (E) A land disposal unit with respect to which a closure 
          notification 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.
              (F) A facility subject to 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 is 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.
              (G) 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.
              (H) 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 1996 - Directs the Administrator of the Environmental Protection Agency to establish a pilot project to provide capitalization loans to States to establish or expand revolving loan funds that provide loans for voluntary environmental cleanups of eligible facilities (those determined by the State to have limited environmental contamination that can be readily and comprehensively evaluated and that could prevent the timely use, development, or reuse of the facility or property). 
  Authorizes appropriations. 
  Makes ineligible for such assistance facilities that are:  (1) eligible for abatement actions, or subject to Federal enforcement action, under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980; (2) on or proposed for inclusion on the National Priorities List or evaluated as high priority under the hazard ranking system; (3) subject to certain actions, or unqualified to conduct certain hazardous waste disposal activities, under the Solid Waste Disposal Act; or (4) owned or operated by the United States.
feat_title: Brownfield Cleanup and Redevelopment Revolving Loan Fund Pilot Project Act of 1996