General Assembly		Raised Bill No. 6830
January Session, 2015		LCO No. 4014
		*04014_______CE_*
Referred to Committee on COMMERCE
Introduced by:
(CE)

AN ACT REVISING THE REMEDIAL ACTION AND REDEVELOPMENT MUNICIPAL GRANT PROGRAM AND THE TARGETED BROWNFIELD DEVELOPMENT LOAN PROGRAM.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 32-763 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) There is established a remedial action and redevelopment municipal grant program to be administered by the Department of Economic and Community Development for the purpose of providing grants to municipalities and economic development agencies for the eligible costs of brownfield remediation projects, brownfield assessment projects and reasonable administrative expenses not to exceed five per cent of any grant awarded. A grant awarded under this section shall not exceed four million dollars.

(b) A grant applicant shall submit an application to the Commissioner of Economic and Community Development on forms provided by the commissioner and with such information the commissioner deems necessary, including, but not limited to: (1) A description of the proposed project; (2) an explanation of the expected benefits of the project in relation to the purposes of this section; (3) information concerning the financial and technical capacity of the applicant to undertake the proposed project; (4) a project budget; and (5) with respect to a brownfield remediation project, a description of the condition of the brownfield, including the results of any environmental assessment of the brownfield in the possession of or available to the applicant.

(c) The commissioner may approve, reject or modify any application properly submitted in accordance with the provisions of this section. In reviewing an application and determining the amount of the grant, if any, to be provided, the commissioner shall consider the following criteria: (1) The availability of funds; (2) the estimated costs of assessing and remediating the brownfield, if known; (3) the relative economic condition of the municipality in which the brownfield is located; (4) the relative need of the project for financial assistance; (5) the degree to which a grant under this section is necessary to induce the applicant to undertake the project; (6) the public health and environmental benefits of the project; (7) the relative benefits of the project to the municipality, the region and the state, including, but not limited to, the extent to which the project will likely result in a contribution to the municipality's tax base, the retention and creation of jobs and the reduction of blight; (8) the time frame in which the contamination occurred; (9) the relationship of the applicant to the person or entity that caused the contamination; (10) the length of time the brownfield has been abandoned; (11) the taxes owed and the projected revenues that may be restored to the community; (12) the relative need for assessment of the brownfield within the municipality or region; and (13) such other criteria as the commissioner may establish consistent with the purposes of this section.

(d) The commissioner shall award grants on a competitive basis, based on a request for applications occurring on or before October first, annually. The commissioner may increase the frequency of requests for applications and awards depending upon the number of applicants and the availability of funding.

[(e) A grant recipient may make low-interest loans to a brownfield redeveloper if (1) such recipient coapplied for the grant under this section with such brownfield redeveloper, and (2) not later than ninety days after receiving the grant, such recipient enters into a written agreement with such brownfield redeveloper for an identified future reuse of such brownfield after remediation. Loan principal and interest payments shall be returned to the brownfield remediation and development account established pursuant to section 32-762, minus twenty per cent of the principal, which the eligible grant recipient shall retain. If the eligible grant recipient provides a loan, such loan may be secured by a state or municipal lien on the property.

(f) Any recipient of a loan pursuant to subsection (e) of this section, as a condition of such loan, shall enter a program for remediation of the property pursuant to section 22a-133x, 22a-133y, 32-768 or 32-769.]

(e) The commissioner, in consultation with the Commissioner of Energy and Environmental Protection and following the award of a grant to a municipality or economic development agency pursuant to subsections (c) and (d) of this section, may award an additional grant to such municipality or economic development agency to enable the completion of a brownfield remediation or assessment project, provided such project is identified as a priority by said commissioners and such additional grant funds shall (1) be used to address unexpected cost overruns or costs related to remedial activities that will provide a greater environmental benefit than those originally proposed, (2) not exceed fifty per cent of the original grant, and (3) not result in more than four million dollars in total grants being awarded for a single brownfield remediation or assessment project.

(f) The commissioner may award grants to municipalities, economic development agencies and regional councils of governments organized under sections 4-124i to 4-124p, inclusive, for the eligible costs of developing comprehensive plans for the remediation and redevelopment of multiple brownfields, provided such plans are consistent with the state plan of conservation and development, adopted pursuant to chapter 297, and the plan of conservation and development, adopted pursuant to section 8-23, for each municipality in which such brownfields are located. For purposes of this subsection, "eligible costs" shall also include expenditures associated with the development of such plans for remediation and redevelopment.

(g) The provisions of sections 32-5a and 32-701 shall not apply to grants provided pursuant to this section.

Sec. 2. Section 32-765 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) The Department of Economic and Community Development shall establish a targeted brownfield development loan program to provide low-interest loans for (1) the eligible costs of brownfield remediation projects to potential brownfield purchasers and current brownfield owners who [(1)] (A) have no direct or related liability for the conditions of the brownfield, and [(2)] (B) seek to develop brownfields for purposes of reducing blight or for industrial, commercial, residential or mixed use development; and (2) the acquisition of a brownfield, provided (A) the commissioner consents to such acquisition, and (B) the acquisition price does not exceed the assessed value of the land on the last-completed grand list of the municipality in which such brownfield is located.

(b) Notwithstanding subsection (a) of this section, a current owner of a brownfield on which a manufacturing facility is located shall be eligible for a loan under this section, provided neither such owner nor any partner, member, officer, manager, director, shareholder, subsidiary or affiliate of such owner (1) is liable under section 22a-427, 22a-432, 22a-433, 22a-451 or 22a-452 with respect to the property; (2) is otherwise responsible, directly or indirectly, for the discharge, spillage, uncontrolled loss, seepage or filtration of the hazardous substance, material or waste; (3) is a member, officer, manager, director, shareholder, subsidiary, successor of, or affiliated with, directly or indirectly, the person who is otherwise liable under section 22a-427, 22a-432, 22a-433, 22a-451 or 22a-452 with respect to the property; or (4) has been found guilty of knowingly or wilfully violating any environmental law.

(c) An applicant for a loan pursuant to this section shall submit an application to the Commissioner of Economic and Community Development on forms provided by the commissioner and with such information the commissioner deems necessary, including, but not limited to: (1) A description of the proposed project; (2) an explanation of the expected benefits of the project in relation to the purposes of this section; (3) information concerning the financial and technical capacity of the applicant to undertake the proposed project; (4) a project budget; and (5) a description of the condition of the brownfield involved, including the results of any environmental assessment of the brownfield in the possession of or available to the applicant. The commissioner shall provide loans based upon project merit and viability, the economic and community development opportunity, municipal support, contribution to the community's tax base, past experience of the applicant, compliance history and ability to pay.

(d) If a loan recipient is not subject to section 22a-134a, such recipient shall enter a program for remediation of the property pursuant to either section 22a-133x, 22a-133y, 32-768 or 32-769, as determined by the commissioner, except if the loan funds are used for the abatement of hazardous building materials that, based on due diligence, represent the sole or sole remaining environmental contamination issue on the property.

(e) Loans made pursuant to this section shall have such terms and conditions and be subject to such eligibility and loan approval criteria as determined by the commissioner. Such loans shall be for a period not to exceed twenty years.

(f) If a loan recipient sells a property subject to a loan granted pursuant to this section before the loan is repaid, the loan shall be payable upon closing of such sale, according to its terms, unless the commissioner agrees otherwise. The commissioner may carry the loan forward as an encumbrance to the purchaser with the same terms and conditions as the original loan.

(g) A loan recipient may be eligible for a loan of not more than [two] four million dollars per year, [for not more than two years,] subject to agency underwriting and reasonable and customary requirements to assure performance. If additional funds are required, the commissioner may recommend that the project be funded through other programs administered by the commissioner.

(h) The commissioner may modify the terms of any loan made pursuant to this section to provide for forgiveness of interest, principal, or both, or delay in repayment of interest, principal, or both, when the commissioner determines such forgiveness or delay is in the best interest of the state from an economic or community development perspective.

(i) The provisions of sections 32-5a and 32-701 shall not apply to loans provided pursuant to this section.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2015	32-763
Sec. 2	October 1, 2015	32-765

Statement of Purpose:

To modify the brownfield grant program to allow funds to be used for remediation and redevelopment plans for multiple brownfield sites and to allow the commissioner to award additional grant funds to a grant recipient, and to modify the brownfield loan program to allow loan funds to be used to acquire a brownfield, to change the maximum loan amount, and to exempt certain loan recipients from the requirement that they enter an additional brownfield remediation program.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]