SB2856 SD1

THE SENATE	S.B. NO.	2856
THIRTIETH LEGISLATURE, 2020		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE BROWNFIELDS CLEANUP REVOLVING LOAN FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The Hawaii brownfields cleanup revolving loan fund was capitalized with funds from a United States Environmental Protection Agency brownfields revolving loan fund grant. In 2012, the grant was closed when all grant funds had been expended for cleanup loans, and a closeout agreement was executed between the United States Environmental Protection Agency and the department of business, economic development, and tourism. Under the closeout agreement, revolving loan funds may be used for loans and sub-grants to eligible entities for brownfields site assessment activities, sampling, and related activities in addition to cleanup activities. The existing loan fund statutory authority strictly limits use of revolving loan funds to loans and cleanup activities.

The legislature finds that expanding the loan fund authority to enable sub-grants for cleanups, environmental site assessments, and related activities, in conformance with the closeout agreement, will allow for greater use of the grant funds for eligible brownfields projects and facilitate redevelopment of lands that are underutilized due to perceived or real contamination.

SECTION 2. Section 201-18, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Moneys in the brownfields cleanup revolving loan fund shall be used to provide low interest loans or other authorized financial assistance to eligible public, private, and nonprofit borrowers for brownfields site assessments, cleanup activities of contaminated sites, and site monitoring activities necessary to determine the effectiveness of a cleanup. Moneys in the brownfields cleanup revolving loan fund may also be used to provide grants to eligible public and nonprofit entities for brownfields site assessments, cleanup activities of contaminated sites, and site monitoring activities necessary to determine the effectiveness of a cleanup.

All environmental site assessments and response activities and entities receiving funding shall be subject to the eligibility requirements of, and conducted in accordance with the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, P.L. 96-510 (42 U.S.C. §§9601-9675), as amended, and shall be consistent with the National Oil and Hazardous Substances Pollution Contingency Plan at 40 Code of Federal Regulations part 300. Moneys from the fund may be used to cover administrative and legal costs of fund management and site management associated with individual loans, to include personnel, services, materials, equipment, and travel for the purposes of this section; provided that the moneys used for these purposes shall not exceed the amounts allowed by the United States Environmental Protection Agency's Brownfields [~~Cleanup Revolving Loan Fund Pilot~~] Program[.] grant guidance, as amended.

(c) The fund shall be administered by the department of business, economic development, and tourism. Appropriations or authorizations from the fund shall be expended by the department. The department may award and disburse funds from the loan fund in the form of grants to eligible public or nonprofit entities for brownfields site assessments or cleanup and related activities. At a minimum, the grant applicant must show that:

(1) The applicant has not caused or contributed to contamination at the site where funds will be used;

(2) The project is ready to proceed upon grant award and has a realistic plan for completion of activities to be funded;

(3) Any cleanup activity will be completed within twelve months of site mobilization;

(4) The site has a reuse or redevelopment plan with near-term economic viability or long-term community benefit;

(5) The project promotes the use or redevelopment of urban infill sites or developed property whose reuse has been idled due to perceived or actual contamination;

(6) The project will improve environmental conditions at the site and result in elimination of public exposure to contamination at the site; and

(7) The project is consistent with the property's underlying state and county land use laws and ordinances.

The department may contract with other public or private entities for the provision of all or a portion of the services necessary for the administration and implementation of loans under the loan fund program. The department may set fees or charges for fund management and technical site assistance provided under this section. The department may adopt rules pursuant to chapter 91 to carry out the purposes of this section."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.