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Brownfields Under Trump - Panel

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Brownfields Under Trump - Panel

  1. 1. 1 BROWNFIELDS UNDER TRUMP: WHAT THE NEW ADMINISTRATION MEANS FOR THE FUTURE OF SITE CLEANUP/REDEVELOPMENT
  2. 2. 2 MODERATOR MARY ANN GRENA MANLEY • Deputy Editorial Director, EHS Division, Bloomberg BNA PANELISTS: • PATRICIA OVERMEYER • Land Revitalization Coordinator, U.S. EPA Office of Brownfields Cleanup and Redevelopment and Coordinator of AAI Rulemaking • CHARLIE BARTSCH • Independent Strategist for Communities in Economic Transition • Former Senior Advisor for Economic Development to the Assistant Administrator, U.S. EPA • DAN FRENCH • CEO, Brownfield Listings, LLC PANEL
  3. 3. 3 INSIDE THE BELTWAY: - REGULATORY UNCERTAINTY - BUDGET UNCERTAINTY - BIPARTISAN BROWNFIELDS LEGISLATION - A FRIEND IN SCOTT PRUITT? OTHER TRENDS/FACTORS TO CONSIDER: - “DEVOLUTION” TO STATES - INFRASTRUCTURE NEXUS - EMPHASIS PUBLIC-PRIVATE PARTNERSHIPS - PRIVATE INDUSTRY DRIVERS ECONOMIC/MARKET INDICATORS: - FAVORABLE GLOBAL TRENDS - CONTINUED STRONG NORTH AMERICA PERFORMANCE - PERFECT STORM FOR REDEVELOPMENT RENAISSANCE WHAT DOES IT ALL MEAN?
  4. 4. Brownfields Revitalization: Opportunities for Sustainable Cleanup and Reuse Patricia Overmeyer Office of Brownfields & Land Revitalization (OBLR) U.S. Environmental Protection Agency PRISM May 2017
  5. 5. EPA Brownfields Program Competitive Grants  Assessment  Revolving Loan Fund  Cleanup  Environmental Workforce Development and Job Training (EWDJT)  Area-Wide Planning (AWP)  Research, training, and technical assistance grants Non-competitive Grants  State and Tribal Response Programs Technical Assistance 5
  6. 6. Brownfields Appropriations 6
  7. 7. EPA’s Budget for Brownfields 7
  8. 8. Benefits from EPA Brownfields Funding  Cumulatively, the program has: – assessed 26,405 brownfields properties, – cleaned up 1,505 properties and – made 5,693 properties ready for reuse  In 2016, program funding addressed 957 sites making 7,354 acres ready for reuse by communities.  The Brownfields Program leverages an average of 8,000 cleanup and redevelopment jobs and $1.5 billion dollars in redevelopment funding per year. 8
  9. 9. Benefits from EPA Brownfields Funding  Through fiscal year 2016, Brownfields funding leveraged – $17.79, on average, for each EPA Brownfields dollar expended – 7.3 jobs per $100,000 of EPA brownfields funds expended on assessment, revolving loan fund, and cleanup cooperative agreements  Environmental (Air and Water) Benefits of Brownfields – Brownfield sites have greater location efficiency resulting in 32- 47% reduced vehicle miles traveled for trips associated with these sites  Additional Benefits of Brownfields Redevelopment – Residential property values increased by 5-15.2% once a nearby brownfield was assessed or cleaned up 9
  10. 10. EPA Data Bases  CERCLIS being replaced with SEMS (Superfund Enterprise Management System)  SEMS not yet publicly accessible  Envirofacts  Cleanups in My Community  Brownfields factsheet tool 10
  11. 11. AAI Requirements  The AAI regulation at 40 CFR 312.20(e) and 312.26 requires: – a search of government data bases for information on environmental conditions at the subject property and adjoining properties.  With the exception of CERCLIS, no specific data bases are mentioned in the regulation. – Section 312.26 (e) – requires a review of “CERCLIS records.”  The regulation provides that government records must be: – reviewed “for the purposes of achieving the objectives and performance factors of 312.20(e) and (f).” 11
  12. 12. Available EPA Databases Envirofacts Envirofacts allows a user to search for these sites using any combination of the following address information: zip code, site address, city, county, and state.  NPL sites (both current and delisted ones),  non-NPL Superfund sites, and  RCRA sites (generators, TSDs, and sites subject to corrective action)  (see https://www3.epa.gov/enviro/). Cleanups in My Community (CIMC) CIMC allows you to search for sites using a variety of locational filters; if you use a street address, it also allows you to define a radius within which to display sites  NPL sites (both current and delisted)  RCRA sites subject to corrective action  Brownfield sites that received EPA Brownfields grants.  See https://www.epa.gov/cleanups/cleanups-my-community)..  Information previously found on ERNS can be found at http://www.rtk.net/erns/search.php.  Brownfields sites that received EPA grant funding: https://cfpub.epa.gov/bf_factsheets/ 12
  13. 13. CERCLA DATA  SEMS / Superfund information on EPA’s website: Currently updated information is limited to the Site Profile Pages and the updates on the various sites (e.g., NPL listing) which are posted on pages under the Superfund link:  Superfund general: https://www.epa.gov/superfund  NPL Sites where you live: https://www.epa.gov/superfund/search- superfund-sites-where-you-live  Data and reports: https://www.epa.gov/superfund/superfund-data-and- reports  The first data set pulled from SEMS (the equivalent to the legacy CERCLIS data set) has not been posted yet. EPA Regions are currently reviewing data for their regions. The plan is to pull and post a data set in early May.  When posted, the data set should be very similar to previous CERCLIS information with the exception that EPA will not be posting financial data any longer. 13
  14. 14. Status of ASTM E2247-16  ASTM International updated the Phase I Forestland Standard (E2247)at the end of 2016  EPA developed and the Assistant Administrator signed a Direct Final Rule recognizing the updated standard as compliant with AAI in early January.  The Federal Register had not published it yet on January 20, and therefore returned the rule to the agency.  Now awaiting approval and re-signature by new administration. 14
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  16. 16. BROWNFIELDS UNDER TRUMP: What the New Administration Means for the Future of Site Cleanup and Redevelopment Charlie Bartsch Senior Strategist for Communities in Economic Transition Immediate Past Economic Development Adviser to Assistant Administrator, US EPA PRISM – May 2, 2017 charliebartsch@gmail.com
  17. 17. What could impact contaminated property/sustainable re-development transactions? What concerns practitioners now? • Regulatory uncertainty – Rule roll-backs, anticipated legal challenges • Availability of federal redevelopment investment funding and incentives – Trump proposals v. Congressional reality – What sure things still exist? • Potential Congressional brownfield action • What environmental steps is the private sector taking? The Trump Brownfield Redevelopment Climate:
  18. 18. FY 2018 Trump “Skinny Budget” Proposals – Programs that have Supported Brownfield Redevelopment• HUD/CDBG -- $0 – FY17 -- $3 billion • DOC/EDA -- $0 – FY17 -- $221 million • DOC/MEP -- $0 – FY17 -- $124 million • Appalachian Regional Commission -- $0 – FY17 -- $120 million • DOT/TIGER grants -- $0 – FY17 -- $499 million • DOE/EERE/national labs – limited early stage support only – FY17 -- $2 billion
  19. 19. FY 2018 Trump “Skinny Budget” Funding Proposals for EPA Initial EPA proposal to OMB • 25% cut, from $8.2 billion to $6.1 billion Pass back from OMB, per Trump FY18 proposal • 31% cut ($2.5 billion), from $8.2 billion to $5.7 billion • Staffing reduced by 3,200 FTEs, to approximately 12,000 – For Brownfields – 1/3 of HQ, nearly all regional staff • Focus on “core legal requirements” • Reduce/eliminate regulations • Devolve regional/non-core functions to states – Would de facto shift much brownfield investment, oversight to states/localities
  20. 20. FY 2018 Trump “Skinny Budget” Funding Proposals for EPASpecifics that we have so far – • Cuts – Brownfields project grants by $5 million (to $75 million) – Brownfields state/tribal support, by $13.9 million (to $33.8 million) – Superfund by $330 million (to $462 million) – Office of Research and Development by 42% – Categorical grants to states by $482 million (to $597 million) • Eliminates – Region-specific programs (Great Lakes, Chesapeake) – Funding for climate programs ($100 million) – More than 50 other programs (including EJ) • Internal agency actions – Offering early retirements/buyouts – Identifying regional offices for consolidation/elimination
  21. 21. V. FY 2018 appropriations and budget process – • Building blocks for brownfield redevelopment/ financing partnerships? • Or a potential train wreck this year? Detailed Trump Administration budget request expected mid/late May, Congressional action underway
  22. 22. What EPA/Trump Administration CAN Do – Without Congressional Concurrence • Leave political positions unfilled – Reserve decision-making to Administrator’s office • Change enforcement priorities – Enforcement discretion is reserved to the Executive branch • Modify guidance documents, NOFAs – Shift/eliminate current priorities (i.e., brownfields Area-Wide Planning, sustainable communities, renewable energy) • Internal administrative actions – Reassign/re-align staff within offices (brownfields/climate/enforcement) – Offer early retirements/buyouts – Close/consolidate regional offices
  23. 23. Making the brownfield/redevelopment fit NOW – What public tools can we count on for leverage? Federal tools in place for sure…tax incentives Historic Rehabilitation Tax Credits • Permanently authorized; no cap or aggregate limit New Markets Tax Credits • $7.5 billion allocated Nov. 2016 • $3.5 billion authorized annually thru 2019 Low-income Housing Tax Credits • Permanently authorized; $3.5 billion/year
  24. 24. Congressional interest/action in brownfields: 2017 so farHouse E&C Environment Subcomm. Brownfield “discussion draft” hearing – April 4 • Petroleum brownfield enhancement • Clarifies leaseholder interests • Expands non-profit eligibility • Increases cleanup grants (to $500,000) • Allows $1 million multi-purpose grants • Redevelopment certainty for governmental entities • Allows 5% administrative costs • Leaves undetermined – authorization levels House T&I Comm. hearing, 2 bills introduced on March 28 • HR 1758 – Brownfield Reauthorization Act • HR 1747 – Brownfield Authorization Increase Act  Both would make similar changes to existing program; HR 1747 increases funding levels for programs, overall Senate bipartisan BUILD Act introduced on April 4 • S 822 – includes most of above, plus small community t.a. grants, clean energy project grants • Maintains funding at existing levels
  25. 25. Pro-environment private sector actions Manufacturing and Brownfields – experiences from the 24 IMCP designated community consortia • At least 1/2 have targeted brownfields for new manufacturing investment, including:  Portland ME (food processing)  Pacific Northwest (cross-laminated timber)  Central Tennessee (auto suppliers);  Milwaukee (water-focused products)  Ohio SOAR (aerospace)
  26. 26. Pro-environment private sector actions Manufacturing and Sustainable Materials Management (SMM) – experiences from the 24 IMCP designated community consortia • 1/3 have integrated SMM strategies, including:  Puget Sound WA (aerospace)  Northwest Georgia (carpet manufacturing)  Central Utah (composite materials)  Madison WI (food processing) Key linkage for brownfield reuse and SMM – introducing new cost-saving, environmentally advantageous technologies to production processes
  27. 27. Why Continue Brownfield Redevelopment Support? Rationale for the new regime… • Bringing jobs back to communities that have suffered losses – focus on brownfields/legacy sites • Making brownfields part of infrastructure investments • Integrating brownfields into manufacturing growth strategies – focus on brownfields/legacy sites
  28. 28. So – What’s next in this volatile climate for brownfields? “Fasten your seatbelts… it’s going to be a bumpy ride” Key take-aways TODAY: • Public-private partnerships will be key, and this is the time to develop new ones that fit with current trends • Think creatively about ways to integrate “brownfields” into new areas – make it the center of your new “Venn diagram” of redevelopment
  29. 29. For additional examples and information…. Contact Charlie Bartsch at my new coordinates Charliebartsch@gmail.com (202) 997-4449
  30. 30. North America is Winning the New Normal• North America has the best of everything you’d want to compete in the 21st century global economy. • U.S. is outperforming the rest of the world post 2008 pivot. • World returning to the 400+ year baseline of North American economic outperformance powered by physical advantage. • Resource abundance wins in competitions of scarce resources. • History rhymes and repeats… and so we’re breaking records… again. dan@BrownfieldListings.com
  31. 31. Minnesota: $44:1
  32. 32. $0.00 $0.10 $0.20 EU US Shanghai Average Industrial Electricity Rates 2015 $ per kWh
  33. 33. Comparing Global Manufacturing Labor Costs
  34. 34. 11000 12000 13000 14000 15000 16000 17000 2000-01-01 2000-09-01 2001-05-01 2002-01-01 2002-09-01 2003-05-01 2004-01-01 2004-09-01 2005-05-01 2006-01-01 2006-09-01 2007-05-01 2008-01-01 2008-09-01 2009-05-01 2010-01-01 2010-09-01 2011-05-01 2012-01-01 2012-09-01 2013-05-01 2014-01-01 2014-09-01 2015-05-01 2016-01-01 2016-09-01 U.S. Manufacturing Jobs Jan 2001 – Feb 2017 Not Seasonally Adjusted Millions
  35. 35. 200,000 300,000 400,000 500,000 600,000 700,000 800,000 U.S. Initial Jobless Claims Seasonally Adjusted - 01/1970 - 3/2017 50 year lows
  36. 36. 1900 2900 3900 4900 5900 6900 2000-12-01 2001-09-01 2002-06-01 2003-03-01 2003-12-01 2004-09-01 2005-06-01 2006-03-01 2006-12-01 2007-09-01 2008-06-01 2009-03-01 2009-12-01 2010-09-01 2011-06-01 2012-03-01 2012-12-01 2013-09-01 2014-06-01 2015-03-01 2015-12-01 2016-09-01 Thousands JOLTS: U.S. Job Openings 12/2001-01/2017 Total Nonfarm, Seasonally Adjusted
  37. 37. $42,000 $44,000 $46,000 $48,000 $50,000 $52,000 $54,000 2000-01-01 2000-11-01 2001-09-01 2002-07-01 2003-05-01 2004-03-01 2005-01-01 2005-11-01 2006-09-01 2007-07-01 2008-05-01 2009-03-01 2010-01-01 2010-11-01 2011-09-01 2012-07-01 2013-05-01 2014-03-01 2015-01-01 2015-11-01 2016-09-01 U.S. GDP per capita Jan 2001 - Oct 2016
  38. 38. 128,000 133,000 138,000 143,000 148,000 2001-01-01 2001-10-01 2002-07-01 2003-04-01 2004-01-01 2004-10-01 2005-07-01 2006-04-01 2007-01-01 2007-10-01 2008-07-01 2009-04-01 2010-01-01 2010-10-01 2011-07-01 2012-04-01 2013-01-01 2013-10-01 2014-07-01 2015-04-01 2016-01-01 2016-10-01 Total U.S. Nonfarm Payrolls Thousands of Persons, Monthly, Seasonally Adjusted More U.S. jobs created since 2009 than the rest of the developed world combined.
  39. 39. $300 $310 $320 $330 $340 $350 1982-01-01 1983-06-01 1984-11-01 1986-04-01 1987-09-01 1989-02-01 1990-07-01 1991-12-01 1993-05-01 1994-10-01 1996-03-01 1997-08-01 1999-01-01 2000-06-01 2001-11-01 2003-04-01 2004-09-01 2006-02-01 2007-07-01 2008-12-01 2010-05-01 2011-10-01 2013-03-01 2014-08-01 2016-01-01 Full Time Real Wages Jan 1982 - Oct 2016 Median Weekly Wage & Salary Workers 16 Years+ CPI Adjusted Dollars, Quarterly, Seasonally Adjusted
  40. 40. 130000 140000 150000 160000 170000 180000 190000 2002-01-01 2002-12-01 2003-11-01 2004-10-01 2005-09-01 2006-08-01 2007-07-01 2008-06-01 2009-05-01 2010-04-01 2011-03-01 2012-02-01 2013-01-01 2013-12-01 2014-11-01 2015-10-01 2016-09-01 Millions Real U.S. Retail Sales 01/2002-02/2017 Seasonally Adjusted All-time highs
  41. 41. dan@BrownfieldListings.com
  42. 42. 48 QUESTIONS & ANSWERS

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