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New York State’s Brownfield Cleanup Program (BCP) will be turning two soon, making it newer than many other states’ programs. What it lacks in history it makes up in strength. It has been regarded as state-of-the-art and is serving as an example to other states that are writing or revising their own programs.
The BCP replaces the state’s Voluntary Cleanup Program, an informal administrative program that had been criticized as having “neither a carrot nor a stick.” Since it was passed, the BCP has been tweaked and procedural aspects clarified.
We asked Dale Desnoyers, director of environmental remediation for the New York State Department of Environmental Conservation, to explain what makes the law unique. Here’s what he had to say:
What took New York so long to develop its program?
The brownfield law did take some time to build, but we had unity behind us,
plus a shared goal. We also had good timing with the changes to the federal
law in 2002, which helped us line up New York’s program with the federal
program.
The leadership of several individuals, including Governor Pataki and legislators Tom DiNapoli and Carl Marcellino, was instrumental in getting the law passed. We spent a lot of time studying what was working and brought it home. We developed an interagency workgroup to implement the law, and they have been working well together. They are looking at the long term and are building the infrastructure. I believe that our program is the best in the nation. We are on the cutting edge.
What makes the program unique?
What makes New York’s Brownfield Cleanup Program (BCP) unique is a combination
of things. It marries economic and environmental issues. This philosophy is
woven throughout the program, which sets it up for success.
The tax credits are one element. They cover not just cleanup, but redevelopment.
Most states focus just on cleanup costs.
What’s really unique about the tax credits is that they are refundable.
If you don’t use them, we’ll send you a check. If you can’t
take them, which many people can’t in the first years, you get it back.
The liability relief is also unique. In addition to our BCP, which is a voluntary program, we also have the environmental restoration program with $200 million set aside that municipalities can take advantage of. Under the environmental restoration program, the municipality is indemnified for all claims, not just third party claims. If they are sued, the state will represent them. And if they lose, the state will pay the claims.
How has participation been?
The law was passed nearly two years ago and has gotten participation from all
over the state. It has been very well received. To date, 176 parties have requested
participation in the program — 94 were new applications and 82 requested
a transition from our existing VCP program. Of those, 108 are currently in the
program and the remainder is still being evaluated. A few sites are already
nearing completion. Most of our enrollment is private parties.
There is no limit to the number of sites that can participate and applications are taken on a rolling basis. Because there is no cap on the tax credits, no one who meets the eligibility criteria will be turned away. It’s estimated that the value of the tax credits will come to $135 million a year.
What changes do you anticipate for the program?
We are currently looking at the environmental criteria to make sure that we
are true to the legislative intent of the law, and only accept properties with
environmental contamination into the program.
Enrollment will continue to grow. The numbers are tremendous. Some people were waiting to see how the program worked before joining, and by now hopefully they can see the results. BFN