Chapter 96 Oregon Laws 2001

AN ACT

SB 275

Relating to brownfield redevelopment; creating new provisions; amending ORS 285A.185, 285A.188, 285B.139, 285B.203, 285B.410 and 285B.551; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 285A.185 is amended to read:

285A.185. (1) As used in this section, “brownfield” means real property where expansion or redevelopment is complicated by [real] actual or perceived environmental contamination.

(2) The Economic and Community Development Department shall designate a position of Brownfields Redevelopment Coordinator to assist private persons and local governments to redevelop brownfields.

(3) The Brownfields Redevelopment Coordinator shall:

(a) Act as the primary point of contact for information regarding public and private funding options available to a person interested in redeveloping a brownfield;

(b) Facilitate the funding process involving landowners or prospective purchasers, lending institutions, other state agencies, local jurisdictions, consultants and interested citizens;

(d) Provide information to private persons and local governments on brownfield redevelopment funding; and

(e) Enhance the availability of funding resources through program development, grant proposals and other appropriate opportunities.

(4) The Economic and Community Development Department shall adopt rules necessary to carry out this section.

SECTION 2. ORS 285A.188 is amended to read:

285A.188. (1) As used in this section:

(a) “Environmental action” means activities undertaken to:

(A) Determine if a release has occurred, if the release poses a significant threat to human health or the environment or if additional remedial actions may be required at the site;

(B) Conduct a feasibility study;

(C) Plan for remedial action or removal; or

(D) Conduct a remedial action or removal at a site.

(b) “Facility,” “hazardous substance,” “release,” “remedial action” and “removal” have the meanings given those terms in ORS 465.200.

(c) “Substantial public benefit” includes, but is not limited to:

(A) The generation of funding or other resources facilitating substantial remedial action at a facility in accordance with this section;

(B) A commitment to perform substantial remedial action at a facility in accordance with this section;

(C) Productive reuse of a vacant or abandoned industrial or commercial facility; or

(D) Development of a facility by a municipality or a nonprofit organization to address an important public purpose.

[(1)] (2) There is created within the State Treasury a revolving fund known as the Brownfields Redevelopment [Loan] Fund, separate and distinct from the General Fund. Interest earned by the fund shall be credited to the fund. Moneys in the Brownfields Redevelopment [Loan] Fund shall be used to fund loans and grants for environmental [evaluations of] actions on properties that are brownfields, as defined in ORS 285A.185.

[(2)] (3)(a) Subject to paragraph (b) of this subsection, when making a loan or grant for an environmental [evaluation,] action, the Economic and Community Development Department shall give priority [priority shall be given] to persons who, at the time of applying for the loan or grant, are not liable under ORS 465.255 for a release of a hazardous substance at the property at which the environmental [evaluation] action is to be conducted. No more than 40 percent of the total amount disbursed from the Brownfields Redevelopment [Loan] Fund in any biennium shall be awarded to persons who are liable with respect to the subject property under ORS 465.255. A person is not eligible to receive a loan or grant from moneys in the Brownfields Redevelopment [Loan] Fund if the person has knowingly violated applicable laws or regulations or has knowingly violated or failed to comply with an order of the Department of Environmental Quality, if such action or inaction has resulted in one or more of the following:

[(a)] (A) Contribution to or exacerbation of existing contamination at the facility;

[(b)] (B) Release of a hazardous substance at the facility; or

[(c)] (C) Interference with necessary investigation or remedial actions at the facility.

(b) Notwithstanding paragraph (a) of this subsection:

(A) When making a grant to a municipality, the department shall give priority to municipalities that provide matching funds from a loan under this section, from another source or from both.

(B) When making a grant to an entity that is not a municipality, the department shall require that:

(i) The recipient is not liable for the subject property under ORS 465.255;

(ii) The environmental action provides a substantial public benefit; and

(iii) The recipient provides matching funds from a loan under this section, from another source or from both.

(c) The department may establish by rule circumstances in which the department may waive or subsidize the interest on a short-term loan.

[(3)] (4) When making a loan or grant for an environmental [evaluation] action, the Economic and Community Development Department shall consider:

(a) The extent to which [real] actual or perceived contamination prevents the property from being fully utilized;

(b) The need for providing public assistance, after considering the difficulty of obtaining financing from other sources or of obtaining financing at reasonable rates and terms;

(c) The degree to which redevelopment of the property provides opportunity for achieving protection of human health or the environment by reducing or eliminating the contamination of the property and for contributing to the economic health and diversity of the area;

(d) The probability of the success of the intended use or the degree to which redevelopment of the property provides a public purpose following remediation of the property;

(e) Compliance with the land use plan of the local government with jurisdiction over the property; and

(f) Endorsement from the local government with jurisdiction over the property.

[(4)] (5) Before making a loan or grant decision pursuant to this section, the Economic and Community Development Department shall consult with the Department of Environmental Quality.

[(5)] (6) The Economic and Community Development Department shall adopt rules necessary to carry out the requirements of this section. The Economic and Community Development Department shall develop procedures to ensure that activities for which loans or grants are made are consistent with existing environmental cleanup laws and rules.

[(6) As used in this section:]

[(a) “Environmental evaluation” means activities undertaken to determine if a release has occurred, if the release poses a significant threat to human health or the environment or if additional remedial actions may be required at the site. “Environmental evaluation” does not include feasibility studies or actions taken to prevent, minimize or mitigate damage to human health or the environment from the release of a hazardous substance.]

[(b) “Facility,” “hazardous substance” and “release” have the meanings given those terms in ORS 465.200.]

SECTION 3. ORS 285B.139 is amended to read:

285B.139. (1) As used in this section, “brownfield” and “environmental action” have the meanings given those terms in ORS 285A.185 and 285A.188, respectively.

(2) Notwithstanding the provisions of ORS 285B.138 (3), the Economic and Community Development Department shall adopt rules that provide that, for qualified loans to businesses in distressed areas, as defined by the department, or for use in [the evaluation of] an environmental action on brownfields[, as defined in ORS 285A.185], the department shall transfer an amount that is not less than 150 percent of the total amount of the fees paid by the borrower and the financial institution from the Capital Access Fund to the loss reserve account of the institution. However, the total amount transferred under this section shall not exceed 40 percent of the moneys appropriated to the Capital Access Fund.

SECTION 4. ORS 285B.203 is amended to read:

285B.203. (1) The Legislative Assembly finds that:

(a) Small and medium sized businesses in general, and firms that produce value-added agricultural products in particular, are adversely affected by the current credit crisis.

(b) Small companies have historically had a difficult time obtaining credit, especially on terms that allow them to grow and to create jobs.

(c) The limited availability of credit for export transactions limits the ability of small and medium sized businesses in Oregon to compete in international markets.

(d) The challenge for the public economic sector is to design programs, in conjunction with lending institutions in the private economic sector, that fill the gaps in credit availability and export finance.

(e) Without substantial financial assistance to promote redevelopment, properties containing brownfields, as defined in ORS 285A.185, often remain abandoned or underutilized because of the uncertainty concerning environmental contamination at the sites and the cost of reducing or eliminating the contamination.

(2) The Legislative Assembly declares that it is the purpose of the Credit Enhancement Fund established under ORS 285B.215 (1) and (2) to:

(a) Create incentives and assistance to increase the flow of private capital to the value-added agriculture industries.

(b) Promote industrial modernization and technology adoption.

(d) Encourage the export of goods and services by Oregon businesses in international markets.

(e) Encourage and promote the redevelopment of brownfields, as defined in ORS 285A.185, by providing assistance to perform environmental [evaluations of] action, as defined in ORS 285A.188, on brownfield sites.

SECTION 5. ORS 285B.410 is amended to read:

285B.410. As used in ORS 285B.410 to 285B.479, unless the context requires otherwise:

(1) “Municipality” means a city, a county, a port incorporated under ORS 777.010 and 777.050, the Port of Portland created by ORS 778.010, a metropolitan service district organized under ORS chapter 268, a domestic water supply district organized under ORS chapter 264, a water authority or sanitary authority organized under ORS 450.600 to 450.989, a water improvement district organized under ORS chapter 552, a water control district organized under ORS chapter 553, a sanitary district organized under ORS 450.005 to 450.245, a county service district organized under ORS chapter 451 or a tribal council of an Indian tribe in this state.

(2) “Infrastructure project” means:

(a) A project for the construction of sewage treatment works, solid waste disposal sites, water supply works, roads, public transportation, railroad industrial spurs or sidings or other facilities that comprise the physical foundation for industrial and commercial activity. The costs of property acquisition directly related to the infrastructure project and acquisition of easements or rights of way necessary to accomplish construction of the infrastructure project are eligible for assistance under ORS 285B.410 to 285B.479. The costs of activities related to performing an environmental [evaluation of] action on a brownfield are eligible for assistance under ORS 285B.416 (2) and 285B.455 (5). Purchases of off-site property for project-related purposes such as wetland mitigation or other uses not directly related to the infrastructure are not eligible for assistance. As used in this paragraph, “brownfield” and “environmental [evaluation] action” have the meanings given those terms respectively in ORS 285A.185 and 285A.188.

(b) A project, in consultation with the Department of Transportation and other affected agencies, for the acquisition, reconstruction or rehabilitation of an abandoned railroad line or railroad line that has been designated by the owner and operator thereof as subject to abandonment within a three-year period pursuant to federal law and regulations governing abandonment of common carrier railroad lines. The project may include operation or maintenance costs if the project also includes acquisition, reconstruction or rehabilitation.

(c) A safe drinking water project, in consultation with the Water Resources Department, the Health Division of the Department of Human Services or the Department of Land Conservation and Development, for improving a drinking water system for the purpose of achieving or maintaining compliance with applicable state or federal drinking water quality regulations.

(d) A project for the acquisition, construction or development of community facilities, including the acquisition of land, the construction, acquisition, renovation or reconstruction of buildings, structures and other real property and the acquisition or construction of related equipment and fixtures. “Community facilities” includes facilities that are owned by a municipality and are operated by either the municipality or a person under a management contract or operating agreement with the municipality.

(3) “Public transportation” includes public depots, public parking, public docks, public wharves, railroads and airport facilities.

(4) “Roads” includes:

(a) Ways described as streets, highways, throughways or alleys;

(b) Road related structures that are in the right of way such as tunnels, culverts or similar structures; and

(5) “Sewage treatment works” includes all facilities necessary for collecting, pumping, treating and disposing of sanitary or storm sewage.

(6) “Solid waste disposal site” has the meaning given to the term “disposal site” by ORS 459.005.

(7) “Water supply works” includes all facilities necessary for tapping natural sources of domestic and industrial water, treating and protecting the quality of the water and transmitting it to the point of sale to any public or private agency for domestic, municipal and industrial water supply service.

(8) “Urban infrastructure projects” includes all those projects located in whole or in part within the acknowledged Portland Metropolitan Area Regional Urban Growth Boundary, and the acknowledged urban growth boundaries of the cities of Eugene, Springfield, Salem, Keizer or Medford or projects that will principally benefit these areas. The Director of the Economic and Community Development Department is authorized to resolve situations left in question by this definition.

(9) “Nonurban infrastructure projects” includes all those projects which do not meet the definition of urban infrastructure projects.

SECTION 6. ORS 285B.551 is amended to read:

285B.551. (1) Pursuant to ORS 286.560 to 286.580 and 348.716, lottery bonds may be issued:

(a) To provide financial and other assistance, including but not limited to loans and grants, to municipalities, ports and other persons and entities in accordance with the laws governing use of moneys in the Special Public Works Fund created by ORS 285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213, the Oregon Port Revolving Fund created by ORS 285A.708, the Brownfields Redevelopment [Loan] Fund created by ORS 285A.188 and the Marine Navigation Improvement Fund created by ORS 777.267.

(b) To fund Oregon's share of the costs of the Columbia River channel deepening project.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The financial and other assistance to municipalities, ports and other persons and entities will assist in the construction, improvement and expansion of infrastructure, community and port facilities and other facilities that comprise the physical foundation for industrial and commercial activity and provide the basic framework for continued and expanded economic opportunities and quality communities throughout Oregon.

(b) The Columbia River channel deepening project is necessary to allow newer, larger steamships access to Oregon and Washington deep draft ports. A deeper shipping channel will allow the Columbia River to continue as a world leader in agricultural exports and as a key trade corridor for farms and businesses throughout Oregon and the region.

(c) Such financial and other assistance to municipalities, ports and other persons and entities and the deepening of the Columbia River channel will therefore promote economic development within this state, and thus the use of net proceeds derived from the operation of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to provide such financial and other assistance to municipalities, ports and other persons and entities and to pay a portion of the costs of deepening the Columbia River channel is an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.

(3) The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(a) of this section for financial and other assistance to municipalities, ports and other persons and entities shall not exceed the sum of $45 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(b) of this section for the Columbia River channel deepening project shall not exceed the sum of $17.7 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Director of the Economic and Community Development Department. The director shall not request the issuance of lottery bonds pursuant to subsection (1)(b) of this section until a final environmental impact statement has been issued and a record of decisions has been submitted to Congress by the United States Army Corps of Engineers, Congress has authorized the Columbia River channel deepening project, and the Washington sponsors' shares of the costs of the Columbia River channel deepening project have been committed.

(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the Economic Infrastructure Project Fund, which is hereby established in the State Treasury separate and distinct from the General Fund. All moneys in the Economic Infrastructure Project Fund are continuously appropriated to the Economic and Community Development Department for any purpose for which moneys in the Special Public Works Fund created by ORS 285B.455 may be used, any purpose for which moneys in the Water Fund created by ORS 285B.563 may be used, any purpose for which moneys in the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213 may be used, any purpose for which moneys in the Oregon Port Revolving Fund created by ORS 285A.708 may be used, any purpose for which moneys in the Brownfields Redevelopment [Loan] Fund created by ORS 285A.188 may be used and any purpose for which moneys in the Marine Navigation Improvement Fund created by ORS 777.267 may be used. The Director of the Economic and Community Development Department shall allocate the moneys deposited in the Economic Infrastructure Project Fund for the purposes described in this subsection in accordance with the policies developed by the Oregon Economic and Community Development Commission in accordance with ORS 285A.045. However, the director shall transfer from the Economic Infrastructure Project Fund to the Marine Navigation Improvement Fund the proceeds of any lottery bonds sold to finance a portion of the costs of the Columbia River channel deepening project. Upon determining the relative allocation of moneys deposited in the Economic Infrastructure Project Fund among the purposes described in this subsection, the director shall transfer from the Economic Infrastructure Project Fund, and deposit into each of the other funds described in this subsection, the amounts so allocated. Notwithstanding any other provision of law governing the funds described in this subsection, the funds described in this subsection may be credited with moneys transferred from the Economic Infrastructure Project Fund by the director in accordance with this subsection.

(5) The proceeds of lottery bonds issued pursuant to this section shall be used only for the purposes set forth in subsection (4) of this section and for bond-related costs.

SECTION 7. The amendments to ORS 285A.185, 285A.188, 285B.139, 285B.203, 285B.410 and 285B.551 by sections 1 to 6 of this 2001 Act apply to an application for a loan or grant that is submitted to the Economic and Community Development Department on or after the effective date of this 2001 Act.

SECTION 8. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

Approved by the Governor April 20, 2001

Filed in the office of Secretary of State April 20, 2001

Effective date April 20, 2001

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