By Susan Jarvis
January 10, 2005

Cities from Syracuse (NY) to Honolulu (HI) joined EPA staff December 15 for a look at the factors critical to successful participation in EPA's Brownfields Revolving Loan Fund (BCRLF) program. This complimentary conference call was sponsored by The Municipal Waste Management Association (MWMA), the environmental affiliate of The United States Conference of Mayors, and was open to MWMA members, mayors and their staff.

Ann Carroll of EPA's Office of Solid Waste and Emergency Response, provided an overview of the Revolving Loan Fund, which began as a pilot program in 1997. Carroll said that originally the program had a limited vision and scope, providing participants with up to $350,000 in funds for clean up. Under the new program, EPA provides both loans and clean up sub grants. No more than forty percent of the funds awarded maybe used for subgrants, however. Up to twenty percent of the grant maybe used for cost share, but no funds may be applied to administrative costs. The new program also streamlines the provisions from the National Oil and Hazardous Substance Contingency Plan and allows for clean up of petroleum, mine-scarred land, "drug labs" and some asbestos and lead.

Under the new guidelines, eligible entities can receive up to $1 million, although applicants must provide a twenty-percent match. Eligible clean up activities include removal of contaminated soils, engineering of barriers over contaminated soil, treatment of soil and/or groundwater, environmental insurance and any other cost necessary to the clean-up of the property. Eligible entities include local governments, tribes, state agencies, redevelopment agencies, non-profits, and private developers. Those parties responsible for the contamination, however, are not eligible.

Brooke Furio, from EPA's Region 5, highlighted some of the factors critical to the success of implementing a revolving loan fund grant. First is a good understanding of the product; that the BCRLF is a low interest loan program, aimed at providing gap financing. Having a well defined and simple clean up process ensures borrowers have an understanding of timelines, costs and other expectations of the program. Understanding your market, your market size and specifics of your clean up will help communicate your program better to potential customers. Finally, and most importantly, Furio believes an organizational commitment, complete with a dedicated economic development staff, is critical to the success of the program.

Furio referenced the state of Minnesota's VIC program and Hennepin County (MN)'s market plan as standards, from which cities and counties can model their own programs.

MWMA provides technical environmental expertise to The United States Conference of Mayors, as well as professional development and legislative advocacy for the nation's urban environmental professionals. MWMA is dedicated to delivering programming and information on integrated waste management, including operations, recycling, waste to energy, air and water. For more information about MWMA, please contact Susan Jarvis at 202-861-6760 or send e-mail to sjarvis@usmayors.org. The power point presentation which accompanied this conference call be can be found at usmayors.org/mwma.