71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 724
 
                         Senate Bill 275
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor John A. Kitzhaber,
  M.D., for Economic and Community Development Department)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Renames Brownfields Redevelopment Loan Fund to Brownfields
Redevelopment Fund. Permits moneys in fund to be used for grants
as well as loans. Modifies types of activities eligible for
funding by adding remedial actions and removal of hazardous
substances. Authorizes Economic and Community Development
Department to make grants to municipalities and nonmunicipalities
from fund.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
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;
  (c) Serve as a key advocate for the redevelopment of
brownfields in Oregon;   { - and - }
  (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.
  (c) Encourage the retention and creation of family wage jobs.
  (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
  (c) Structures that provide for continuity of the right of way
such as bridges.
  (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. + }
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