Chapter 81 Oregon Laws 2005

AN ACT

HB 2176

Relating to brownfields; creating new provisions; amending ORS 285A.185 and 285A.188; appropriating money; 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 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] Economic and Community Development Department 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;

(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[.]; and

[(4)] (f) [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.

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

(3)(a) Subject to paragraph (b) of this subsection, when making a loan or grant for an environmental action, the Economic and Community Development Department shall give priority 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 action is to be conducted. No more than 40 percent of the total amount [disbursed from] of the Brownfields Redevelopment 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 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) Contribution to or exacerbation of existing contamination at the facility;

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

(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.

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

(a) The extent to which 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.

(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.

(6) The Economic and Community Development Department may use a portion of the Brownfields Redevelopment Fund to:

(a) Pay for administrative costs of environmental actions; and

(b) Satisfy contracts entered into as required to ensure that environmental reviews are conducted in a manner consistent with existing environmental cleanup laws and rules.

[(6)] (7) 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.

SECTION 3. (1) There is established in the Economic and Community Development Department the Oregon Coalition Brownfields Cleanup Program.

(2) The department may make grants, loans and expenditures from the Oregon Coalition Brownfields Cleanup Fund to provide financial or other assistance to public and private owners of eligible brownfield properties for the purpose of cleaning up the properties.

(3) An eligible owner of a brownfield property may borrow moneys from the fund by entering into a loan agreement with the department in accordance with rules adopted by the department.

(4) The owner of a publicly owned brownfield property may enter into a loan agreement with the department notwithstanding any restrictions on indebtedness in the charter or bylaws of the public body or any other provision of law.

(5) The department may adopt rules necessary to carry out the provisions of this section and section 4 of this 2005 Act. The rules shall include, but are not limited to, requirements for eligibility for financial assistance or other assistance from the program, good and sufficient collateral required to secure loans from the fund and the complete or partial waiver of interest on short-term loans made from the fund.

(6) As used in this section:

(a) “Brownfield” has the meaning given that term in ORS 285A.185.

(b) “Other assistance” includes, but is not limited to, direct purchase of goods or services related to brownfields cleanup by the department.

(c) “Public body” has the meaning given that term in ORS 174.109.

SECTION 4. (1) There is established in the State Treasury, separate and distinct from the General Fund, a revolving fund known as the Oregon Coalition Brownfields Cleanup Fund. Interest earned by the Oregon Coalition Brownfields Cleanup Fund shall be credited to the fund. All moneys in the Oregon Coalition Brownfields Cleanup Fund are continuously appropriated to the Economic and Community Development Department for the purposes of section 3 of this 2005 Act.

(2) The Oregon Coalition Brownfields Cleanup Fund shall consist of all moneys credited to the fund, including but not limited to:

(a) Moneys received from the federal government, other state agencies or local governments;

(b) Moneys appropriated or transferred to the fund by the Legislative Assembly or the Oregon Economic and Community Development Commission; and

(c) Repayment of financial assistance, including interest earnings, provided by moneys from the fund.

SECTION 5. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect on its passage.

Approved by the Governor May 25, 2005

Filed in the office of Secretary of State May 25, 2005

Effective date May 25, 2005

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