U.S. House Energy and Commerce Committee takes up reauthorization of EPA Brownfields program

Key Takeaways

On March 4, the U.S. House Energy and Commerce Subcommittee on Environment held a legislative hearing on the reauthorization of the Environmental Protection Agency’s (EPA) Brownfields program. This hearing highlighted multiple legislative paths for reauthorization of the Brownfields program through draft proposals from both the majority and minority that could significantly impact counties ability to secure funding for the cleanup and redevelopment of Brownfields sites within their communities.

What is the Brownfields program?

Created in 2002, the EPA’s Brownfields program is a highly effective federal program that helps counties redevelop underutilized and contaminated sites to reinvigorate entire communities and their economies. EPA estimates there are over 450,000 brownfield sites throughout the country and 63 percent of counties have at least one Brownfield site in their boundaries. Brownfields sites are typically abandoned or underutilized properties, often exposed to hazardous substances or contaminants. While the presence of Brownfield sites can present land use challenges and negatively impact property values, redevelopment can spur economic growth and revitalize the surrounding environment.

The Brownfields program was last reauthorized through the Brownfields Utilization, Investment and Local Development (BUILD) Act as part of the Consolidated Appropriations Act of 2018. The authorization from the BUILD Act expired in 2023, however the Brownfields program is still operating using funds from the Infrastructure Investment and Jobs Act (IIJA) which will run out at the end of Fiscal Year (FY) 2026.

Hearing takeaways

The Energy and Commerce hearing focused on discussion drafts of four bills proposed by the majority Republican leadership and minority Democrat leadership. 

Republican-led bills

• Brownfields Revitalization for a Better Tomorrow Act
  • Proposes a new definition and priority ranking for “nationally significant infrastructure facilities” such as semiconductor manufacturing, critical mineral mining, artificial intelligence and data centers and energy generation
  • Expands the list of entities eligible for Brownfields funds to include for-profit limited liability corporations
    • There is not enough funding to meet needs of current grant applicants so expanding eligibility pool will only make this worse
    • Private sector companies can already take advantage of revolving loan funds provided by local governments and states
  • Increases the maximum award amounts for:
    • Remediation grants from $500,000 to $1,000,000
    • Multipurpose grants from $1,000,000 to $2,000,000
    • Assessment grants from $200,000 to $500,000
  • Reauthorizes the remaining section 104(k) Brownfields grant programs (Cleanup, Revolving Loan Fund and Technical Assistance programs) and the State Response programs at existing funding levels through 2031
• Brownfields Inventory and Permitting Efficiency Act
  • Exempts nationally significant infrastructure facilities on brownfield sites from National Environmental Policy Act (NEPA) reviews – the designation of these sites would not be considered a major federal action to trigger NEPA or reviews from any other federal agency
    • Data centers are already considered an allowable use for a brownfield site.
    • This action could lead to developments without support from residents and local governments.
• Brownfields Infrastructure Finance and Innovation Act (BIFIA)
  • Creates a pilot program in FY 2028 and FY 2029 to provide loans to covered entities for eligible projects on brownfields property, similar to the Water Infrastructure Finance and Innovation Act (WIFIA) and Transportation Infrastructure Finance Innovation Act (TIFIA)
    • While NACo supports WIFIA and TIFIA, funds for a BIFIA program would come from existing Brownfields grant programs and tip the scale towards nationally significant infrastructure facilities, which would further limit opportunities for counties to receive Brownfields funding for projects that are not considered nationally significant infrastructure facilities
    • This program would likely be duplicative as a Brownfields Revolving Loan Fund Grants program already exists

Democrat-led bills

• Brownfields Reauthorization for an Affordable and Revitalized America Act
  • Amends the cost share requirement for the grants program to require EPA to waive the required cost share if
    • The eligible entity is, serves, or has its principal place of business in a small community or disadvantaged area;
    • The site to be remediated is located in a small community or disadvantaged area; or
    • The Administrator determines that the matching share would place an undue hardship on the eligible entity.
  • Reauthorizes appropriations for section 104(k) at the following levels:
    • $250,000,000 for fiscal year 2027
    • $300,000,000 for fiscal year 2028
    • $350,000,000 for fiscal year 2029
    • $400,000,000 for fiscal year 2030
    • $450,000,000 for fiscal year 2031
  • Reauthorizes the section 128(a) state response program at the following levels:
    • $60,000,000 for fiscal year 2027
    • $70,000,000 for fiscal year 2028
    • $80,000,000 for fiscal year 2029
    • $90,000,000 in fiscal year 2030
    • $100,000,000 for fiscal year 2031

Next steps for counties

While the hearing held by the Energy and Commerce Environment subcommittee is an important step in the reauthorization process there is more work to be done to reauthorize the Brownfields program. There are significant concerns for counties in these proposed pieces of legislation such as the creation and priority ranking of the nationally significant infrastructure facilities and expanding eligibility to include for profit entities. The Brownfields program cannot meet the current demand for funding so any changes to the structure of the program without increased funding should be thoroughly considered. 

NACo submitted a statement for the hearing record outlining county priorities and concerns for reauthorization legislation. NACo will continue to engage with all Congressional committees that have jurisdiction over the Brownfields program to advocate for the reauthorization of the EPA Brownfields program along with increasing both funding levels and the administrative cap for the program grants.