2009 Stimulus Bill: New Federal Grants Available for Environmental Projects in Rhode IslandMarch 2009 Jennifer R. Cervenka, Esq. The American Recovery and Reinvestment Act (“ARRA”) of 2009 has appropriated $7.22 billion for environmental programs and projects administered by the U.S. Environmental Protection Agency (“EPA”). Stimulus resources have been committed to the following areas:
Rhode Island officials are still unclear on the details of how the money for environmental projects will be spent. This was the sentiment of the heads of Rhode Island environmental agencies earlier this month at a meeting co-hosted by the Rhode Island Department of Environmental Management’s (“RIDEM") Environmental Roundtable and Save the Bay. W. Michael Sullivan, Director of RIDEM, did note that projects should be, in ARRA-speak, “shovel-ready” and that projects not yet permitted would be logistically challenged to compete for stimulus funding. Sullivan reported that changes are being made to RIDEM’s permitting process so as to minimize unnecessary delay. In the meantime, the EPA is feverishly working on regulations and procedures that will direct how and when the designated funds may be used. On March 20, 2009, the EPA decided how it was going to spend 5% of the $100 million allocated to brownfields, properties located in predominantly urban areas which are abandoned or underutilized because of real or perceived contamination. The EPA has published a Request for Applications for job training programs costing up to $500,000 and targeting unemployed and underemployed individuals residing in communities impacted by brownfields. Eligible programs need to be focused on employment in “green-collar” jobs on brownfield sites and/or environmental work that involves the assessment, clean-up, or redevelopment of brownfield properties. Specific examples of acceptable programs include training in: 1) the investigation of sites for releases or potential releases of hazardous substances under current federal environmental due diligence standards; 2) the performance of mapping, surveying, inventorying, and geographic information systems; and 3) the use and specific techniques and methods for the cleanup of leaking underground storage tanks, asbestos, lead, mold and other controlled substances. Eligible applicants for the training grants are limited to state and local governmental entities (including redevelopment agencies), Indian tribes, and certain nonprofit organizations which demonstrate the job training goals stated above, propose to serve a community that currently receives or has received brownfields funding, and can complete the training within 36 months. The EPA expects to notify successful applicants in May and provide funding beginning in June. The deadline for the submission of applications is April 20, 2009. The remaining brownfield funds will be made available through competitive grants for the assessment and cleanup of contaminated sites and for revolving loan funds for brownfields redevelopment. It is unknown at this point how much of these funds will be allocated to Rhode Island and when the funds would have to be expended. Brownfield assessment and cleanup grants are, similar to the job training grants, already authorized under current law and are generally restricted to use by governmental entities, Indian tribes, and nonprofits. Brownfield loans are also available to private entities. As an added incentive to brownfields reinvestment, it should be noted that RIDEM recently formalized a new legal mechanism by which a performing party can settle its future liability to the State for contamination associated with brownfield properties. This mechanism, known under Rhode Island’s brownfields statute as the “Remedial Agreement”, provides an eligible party who has engaged in a voluntary and successful remediation effort with a covenant not to sue from the State and protection against contribution claims by third parties. |
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