REMEDY SELECTION

The Superfund program is selecting remedies that require treatment in fewer instances, focusing on treatment of toxic hot spots. Even within the current statutory framework providing for a preference for treatment of waste and permanent solutions to the maximum extent practicable, costs of cleanups are decreasing dramatically because of a number of factors, including: the use of presumptive remedies; the use of reasonably anticipated future land use determinations, which allow cleanups to be tailored to specific sites; the use of a phased approach to defining objectives and methods for ground water cleanups. As a result of these factors, EPA has reduced the cost of cleanup by approximately 20 percent.

PROMOTING FAIRNESS THROUGH SETTLEMENTS

EPA has addressed the concerns of stakeholders regarding the fairness of the liability system by increasing the use of the Agency's settlement authorities. EPA has negotiated more than 400 de minimis settlements with over 18,000 small volume contributors (66% of these in the last four years), protecting these parties from expensive private contribution suits. EPA continues to use its settlement authority to remove small volume waste contributors from the liability system, responding to the burden third-party litigation can place on parties that made a very limited contribution to the pollution at a site. EPA continues to step in to prevent the big polluters from dragging untold numbers of the smallest "de micromis” contributors of waste into contribution litigation by publicly offering to any de micromis party $0 (i.e., no-cost) settlements that would provide protection from lawsuits by other PRPs. The real success of this approach is to be measured by the untold number of potential lawsuits that have been discouraged.

ORPHAN SHARE COMPENSATION

Since fiscal year 1996, EPA has offered orphan share compensation of over $145 million at 72 sites to responsible parties willing to negotiate long-term cleanup settlements. EPA will continue the process at every eligible site. Through 1998, EPA has collected and placed $399 million in 115 interest bearing special accounts for site specific future work. In addition, over $69 million in interest has accrued in these accounts. This reform ensures that monies recovered in certain settlements are directed to work at a particular site. At a number of sites, this money can make a great difference in making settlements work. In FY98, EPA set aside and then spent more than $40 million of Superfund response money in new settlements for mixed work or mixed funding.

STATES

OTHER SUPERFUND PROGRAM ACCOMPLISHMENTS

EPA continues to work with States and Indian tribes as key partners in the cleanup of Superfund hazardous waste sites. EPA is continuing to increase the number of sites where States and Tribes are taking a lead role in assessment and cleanup using the appropriate mechanisms

under the current law. With the May 1998 release of the "Plan to Enhance the Role of States and Tribes in the Superfund Program," the Superfund program is expanding opportunities for increased State and tribal involvement in the program. Fourteen pilot projects with States and Tribes have been initiated through this plan.

COMMUNITY INVOLVEMENT

The Superfund program is committed to involving citizens in the site cleanup process. EPA strives to create an open decision-making process to clean up sites that fully involves the communities, provides the community timely information, and improves the community's understanding of the potential health risks at hazardous waste sites. This is accomplished through outreach efforts, such as holding public meetings and distributing site-specific fact sheets. It has been enhanced through the successful implementation of reforms such as our EPA Regional Ombudsmen who continue to serve as a direct point of contact for stakeholders to address their concerns at Superfund sites, our Internet pages which continue to provide information to our varied stakeholders on issues related to both cleanup and enforcement, as well as our Technical Assistance Grants (TAGs), Community Advisory Groups (CAGs), Restoration Advisory Boards (RABS) and Site-specific Advisory Boards (SSABs).

The TAG program provides eligible community groups with financial assistance to hire technical consultants to assist them in understanding the problems and potential solutions to the contamination problems. EPA has awarded 202 TAGs to various groups since the program's inception in 1988. The Agency plans to publish revisions to the TAG regulation in the Spring of 1999 intended to further simplify the TAG program.

The CAG serves as a public forum for representatives of diverse community interests to present and discuss their needs and concerns related to the Superfund site with Federal, State, Tribal and local government officials. The number of sites with CAGs increased by over 50 percent before the CAG program was officially taken out of the pilot stage. In FY98, 14 new CAGs were created at non-federal facility sites, bringing the total to 47.

COMMUNITY INVOLVEMENT AT FEDERAL FACILITIES

The Superfund Federal facilities response program recognizes that meaningful public participation is dependent on the various stakeholder groups having the capacity to participate effectively. The program has entered into partnerships and awarded cooperative agreement grants to State, local, tribal associations, and community based organizations. The grants focus on training for impacted communities, participation of citizens on advisory boards, access to information and implementation of the Federal Facility Environmental Restoration Dialogue Committee (FFERDC) principles. These grants offer the opportunity to leverage precious resources, build trust and reach a wider audience.

The Superfund Federal facilities response program is a strong proponent of involving communities in the restoration decision-making process and recognizes that input from Restoration Advisory Boards (RAB) and Site-Specific Advisory Boards (SSAB) has been essential to making response decisions and, in some cases, reducing costs. Increasing community involvement, Restoration Advisory Board/Site-Specific Advisory Board support (RAB/SSAB) and partnering with states, tribes and other stakeholders is a high priority activity for FFRRO. There are over 300 RABS and 12 SSABS throughout the country.

REVITALIZING AMERICA'S LAND

BROWNFIELDS

EPA not only cleans up toxic waste sites through the Superfund program but also helps communities clean up and develop less contaminated brownfields sites. The Brownfields Initiative plays a key role in the Administration's goal of building strong and healthy communities for the 21st century. The Initiative represents a comprehensive approach to empowering States, local governments, communities, and other stakeholders interested in environmental cleanup and economic redevelopment to work together to prevent, assess, safely clean up, and sustainably reuse brownfields. Brownfields are abandoned, idled, or under-used industrial and commercial properties where expansion or redevelopment is complicated by real or perceived contamination. Brownfields sites exist in this country, affecting virtually every community in the nation.

The General Accounting Office has estimated that there are over 450,000 brownfields properties across America. The Administration believes strongly that environmental protection and economic progress are inextricably linked. Rather than separate the challenges facing these communities, our brownfields initiative seeks to bring all parties to the table -- and to provide a framework for them to seek common ground on the whole range of challenges: environmental, economic, legal and financial. The EPA brownfields pilot grants are forming the basis for new and more effective partnerships. In many cases, city government environmental specialists are sitting down together with the city's economic development experts for the first time. Others are joining in -- businesses, local residents, community activists.

BROWNFIELDS ASSESSMENT PILOTS

The Brownfields Assessment Pilots form a major component of the Brownfields Initiative since its announcement in a little more than 4 years ago. Since that time, significant environmental results had already been achieved. The Agency has selected 250 assessment pilots funded at up to $200,000 to local communities across the Nation to chart their own course towards revitalization. These pilots are seen as catalysts for change in local communities, and often spur community involvement in local land use decision-making. These pilots, along with targeted state and EPA efforts, resulted in the assessment of 398 brownfields properties, cleanup

of 71 properties, redevelopment of 38 properties, and a determination that 273 properties did not need additional cleanup.

REVOLVING LOAN FUNDS

We are also building on another aspect of our program which began in 1997. This program will award a “second-stage" type of brownfields pilot. Those pilots known as the Brownfields Cleanup Revolving Loan Fund (BCRLF) Pilots are designed to enable eligible States, cities, towns and counties, Territories, and Indian Tribes to capitalize revolving loan funds to safely cleanup and sustainably reuse brownfields. EPA's goal is to select BCRLF pilots that will serve as models for other communities across the nation. In the 1997 fiscal year, EPA's budget for brownfields included $10 million to capitalize BCRLFs. That early first round of BCRLF pilots is maturing. Twenty-three (23) pilots are now in various stages of development. This year we are planning to make a second round of BCRLF pilot awards. We have determined that these new pilots would benefit from an increased capitalization and we are planning to fund approximately 63 new pilots in fiscal year 1999 at up to $500,000 each. The application deadline recently closed on March 8, 1999, and we will be considering these applications in regional panel and Headquarters evaluations and reviews. The Agency anticipates announcement of the award of these new pilots by June. Pilot applicants are being asked to demonstrate evidence of a need for cleanup funds, ability to manage a revolving loan fund, ability to ensure adequate cleanups, and a commitment to creative leveraging of EPA funds with public-private partnerships and matching funds/in-kind services.

SHOWCASE COMMUNITIES

The Brownfields Showcase Communities project is another component of the Brownfields Initiative. It represents a multi-faceted partnership among federal agencies to demonstrate the benefits of coordinated and collaborative activity on brownfields in 16 Brownfields Showcase Communities. The designated Showcase Communities are distributed across the country and vary in size, resources, and community type.

JOB TRAINING

To help local citizens take advantage of the new jobs created by assessment and cleanup of brownfields, EPA began another demonstration pilot program - the Brownfields Job Training and Development Demonstration Pilot program in 1998. Last year we awarded 11 pilots to applicants located within or near one of our assessment pilot communities. Colleges, universities, non-profit training centers, and community job training organizations, as well as states, Tribes and communities were eligible to apply. This year we are planning to award an additional 10 pilots.

The Brownfields Initiative has also generated significant economic benefit for communities across America. By the end of fiscal year 1998, 410 cleanup jobs and 2,110 other jobs had been created as a result of the program. Pilot communities had already reported a leveraged economic impact of over $1.1 billion.

RECYCLING SUPERFUND SITES

Contaminated sites may be an economic drain on local economies, can lower property values, and can act as a disincentive for new industries to move into communities. Once cleaned up, many Superfund sites have gone on to new, productive, and economically beneficial reuse. We believe that there are opportunities for many such sites. While some sites are not suitable for unrestricted reuse, many can be “recycled.” Many NPL sites are valuable properties -- they reside near waterways, railroads or major transportation routes. They are in parts of town ready for redevelopment.

A logical outgrowth of the Brownfields redevelopment work is an increased emphasis on the reuse of Superfund sites. Recycled Superfund sites may be redeveloped for a variety of uses, including commercial/industrial, recreational, and ecological projects. Sites are being cleaned up across the Nation. Major redevelopment and reuse is occurring.

Successful reuse is being demonstrated at the Industriplex site, in Woburn, Massachusetts. Through a private/public partnership this site will become a regional transportation center with over 200,000 square feet of retail space and potentially over 750,000 square feet of hotel and office space. An open land and wetlands preserve will also be created as a part of the "recycling" of this site. Another example of reuse at Superfund sites is the Anaconda Smelter NPL site, in Anaconda, Montana, which has become the Old Works Golf Course, a world-class Jack Nicklaus golf course. At other Superfund sites, major national corporations, including Netscape, Target stores, Home Depot stores and McDonalds, have established businesses. Sites have been redeveloped into athletic fields, community parks and wetland and habitat preserves as well.

Preliminary analyses indicate that more than 150 sites are in actual or planned reuse, supporting thousands of jobs and generating revenue for States and local communities and creating thousands of acres of new recreational and ecological green space. EPA continues to make strides in spurring the beneficial reuse of Superfund sites.

BARRIERS TO REUSE

At some sites, the potential threat of CERCLA liability may in some circumstances be a barrier to the reuse of contaminated sites. EPA is continuing its efforts to negotiate prospective purchaser agreements and issue comfort/status letters in order to clarify CERCLA liability at sites and facilitate reuse of contaminated properties. Through FY98, EPA has entered into 85 Prospective Purchaser Agreements (PPAs) to facilitate beneficial reuse and has also issued over 250 comfort/status letters in order to clarify Federal Superfund interest in sites.