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Title

10

:
Conservation and Development






Chapter

159

:
WASTE MANAGEMENT






Subchapter

003
:
BROWNFIELDS REUSE AND ENVIRONMENTAL LIABILITY LIMITATIONS










 

§

6654. Brownfield revitalization fund; creation; assistance

(a) There is

created a brownfield revitalization fund that shall be a special fund created

pursuant to subchapter 5 of chapter 7 of Title 32 to be administered by the

secretary of commerce and community development to aid applicants in the

redevelopment of brownfield cleanup program by assessing and remediating sites.

Moneys received by the secretary of natural resources for application and

participation in the program shall be deposited in the redevelopment of

contaminated properties account of the environmental contingency fund

established in section 1283 of this title.

(b) The fund

shall comprise of all the following;

(1) State or

federal funds appropriated by the general assembly.

(2) Gifts,

grants, or other contributions.

(c) A person may

apply to the secretary of commerce and community development for financial

assistance in the form of a grant or loan from the brownfield revitalization

fund for the purpose of completing characterization, assessment, or remediation

of a site only after receipt of a work plan approved by the secretary submitted

pursuant to the brownfield property cleanup program unless the application is

for a project that has been determined to be ineligible for the program and is

otherwise appropriate for funding pursuant to subsection (d) of this section.

(d) In order to

determine an award of financial assistance, the secretary of commerce and

community development in consultation with the secretary of natural resources shall

consider all the following:

(1) The extent

to which the proposed project will facilitate the identification and reduction

of threats to human health and the environment associated with exposure to

hazardous materials, pollutants, or contaminants.

(2) The extent

to which the proposed project will facilitate the use or reuse of existing

infrastructure.

(3) The

potential for the proposed project to stimulate economic development.

(4) The extent

to which the proposed project will respond to local or regional housing needs.

(5) The level of

participation by a local community relating to remediation and future use of

the brownfield site.

(6) The extent

to which a grant or loan will meet the needs of a community that due to a small

population or the low income of the community is unable to draw on other

funding sources for environmental remediation and subsequent redevelopment of

the area in which a brownfield site is located.

(7) The extent

to which a grant or loan will facilitate the creation or preservation of or an

addition to a park, greenway, underdeveloped property, recreational property,

or other property used for nonprofit purposes.

(8) The extent

to which the grant or loan will create a more balanced geographic distribution

of awards from the brownfield revitalization fund.

(e) A grant may

be awarded by the secretary of commerce and community development with the

approval of the secretary of natural resources, provided:

(1) A grant may

not exceed $50,000.00 for characterization and assessment of a site.

(2) A grant may

not exceed $200,000.00 for remediation of a site.

(3) A grant may

be used by an applicant to purchase environmental insurance relating to the

performance of the characterization, assessment, or remediation of a brownfield

site in accordance with a corrective action plan approved by the secretary of

natural resources.

(4) Financial

assistance may be provided to applicants by developing a risk sharing pool, an

indemnity pool, or other insurance mechanism designed to help applicants.

(5) All reports

generated by financial assistance from the brownfield revitalization fund,

including site assessments, site investigations, feasibility studies,

corrective action plans, and completion reports shall be provided as hard

copies to the secretaries of commerce and community development and of natural

resources.

(f) The Vermont

economic development authority, VEDA, is authorized to make loans on behalf of

the state pursuant to this section. Annually, the secretary of commerce and

community development with the approval of the secretary of natural resources

in consultation with the VEDA manager shall determine an amount from the

brownfield revitalization program that will be available to VEDA for loans.

Proceeds from repayment of loans shall be deposited in the brownfield

revitalization fund and shall be available for future grants and loans under

this section. Loans under this subsection shall be issued and administered by

VEDA, provided:

(1) Loan may be

awarded only to applicants who have been determined eligible by the secretary

of commerce and community development with the approval of the secretary of

natural resources, and the secretary of commerce and community development has

certified that the applicant and the project are eligible for financing or assistance

under this section and the project has priority for an award of financial

assistance.

(2) A loan to an

applicant for characterization or assessment may not exceed $250,000.00.

Remediation loans shall not be capped. All loans shall be subject to all the

following conditions:

(A) Repayment of

a loan shall commence no later than one year following completion of the

project for which the loan was used.

(B) The rate of

interest on loans shall be set by VEDA in consultation with the secretary of

commerce and community development. The interest rate shall be sufficiently

attractive to advance the purposes of this subchapter and may be less than the

prevailing borrowing rates available to similarly situated applicants from

private lenders, but not less than zero percent.

(C) Loans shall

be made in accordance with the terms and conditions specified in a loan

agreement executed by VEDA and the applicant. The loan agreement shall specify

the terms and conditions of the loan and repayment and any other terms and

conditions determined to be necessary by VEDA and the secretaries of natural

resources or of commerce and community development.

(D) Disbursement

of loan proceeds shall be based on certification by the loan recipient that

costs for which reimbursement is requested have been incurred or paid by the

recipient for activities under the approved plan. The loan recipient shall

provide supporting evidence of payment on request of VEDA. Interim financing

charges or short-term interest costs may constitute an allowable cost of a

project for which a loan may be used.

(E) In the event

of default, any amounts owed on the loan shall be considered a debt for the

purposes of 32 V.S.A. § 5932(4). VEDA may recover this debt pursuant to the

set-off debt collection remedy established pursuant to 32 V.S.A. §§ 5833 and

5934.

(F) The

applicant has certified that all state and federal permits and licenses

necessary to undertake the project for which financing is being sought have

been or will be obtained prior to disbursement of loan funds by VEDA.

(G) The

secretary of commerce and community development has certified to VEDA that the

applicant and the project are eligible for financing or assistance under this

section, and the project has priority for financial assistance.

(3) The

secretary of commerce and community development in consultation with the

secretary of natural resources shall maintain a prioritized list of projects

that are eligible for financial assistance under this section at least

annually. In order to prioritize, the secretary of commerce and community

development shall consider at a minimum, the criteria set forth in subsection

(d) of this section and the following:

(A) The severity

of any health or environmental hazard to be remediated.

(B) The

population to be served.

(C) The

readiness of the project to proceed to the next planning or construction step.

(4) Neither the

state nor VEDA shall be responsible for owning or operating a project or for

completing a corrective action plan if a grant or loan recipient defaults on a

loan obligation, abandons the project site, or fails to complete a corrective

action plan to the satisfaction of the secretary.

(5) The

secretary of commerce and community development or the secretary of natural

resources and VEDA may enter into agreements on behalf of the state with

federal agencies in order to obtain grants and awards to further the purposes

of the brownfield revitalization fund, provided that any grant or award has

been approved in compliance with 32 V.S.A. § 5.

(6) Repealed.]  (Added 2007, No. 147 (Adj. Sess.), § 7;

amended 2009, No. 67 (Adj. Sess.), § 96; 2009, No. 161 (Adj. Sess.), § 31, eff.

June 4, 2010.)