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.

In the summer and fall of 1998, EPA undertook a survey effort to gather information on the impacts of the PPA process. Preliminary survey data (for PPAs completed through June 1998) indicate that redevelopment projects cover over 1252 acres, or 80% of the property secured through PPAs. EPA regional personnel estimate that nearly 1600 short-term jobs (e.g.. construction) and over 1700 permanent jobs have resulted from redevelopment projects associated with PPAs. An estimated $2.6 million in local tax revenue for communities nationwide have resulted from these projects. In addition, EPA regional staff estimate that PPAs have resulted in the purchase of over 1500 acres of contaminated property and have spurred redevelopment of hundreds of thousands of adjacent acres.

FEDERAL FACILITY REDEVELOPMENT

Through EPA's Base Realignment and Closure (BRAC) program over 850 base closure documents have been reviewed at 108 major closing military bases. These BRAC documents articulate the environmental suitability of the property for lease or transfer.

Wurtsmith Air Force Base, located on more than 5,000 acres in northeast Michigan, stood ready for more than 70 years to support strategic bombing operations worldwide. In this capacity, the base managed supplies of aircraft fuel, mechanical cleansers, solvents, and paints, some leaked into the soil and subsequently the groundwater.

The decision to close the base was made in 1993. A Base Closure Team (BCT), consisting of representatives from EPA, the Air Force, and the Michigan Department of Environmental Quality was formed to clean up the site. In an effort to expedite cleanup and minimize cost, an innovative technology, in situ enhanced bioremediation, was implemented to treat the contaminated groundwater. Using this innovative technology, the BCT shaved more than $500,000 and four years off the original cleanup estimate of $1.5 million and 10 years.

To enhance economic redevelopment, the BCT focused its attention on reuse options for the base. Working with the Northeast Michigan Community Service Agency, the BCT enabled approximately 150 low-income families to move into base structures, which replaced substandard housing in six counties. The BCT earned national recognition for this unique reuse plan.

REAUTHORIZATION

The success of EPA's administrative reforms and the resulting improvements in the Superfund program have fundamentally altered the need for Superfund reauthorization legislation. In the 103rd Congress, the Clinton Administration proposed a five-year reauthorization of Superfund that reflected program needs at that point in time. When Congress did not pass Superfund legislation, EPA implemented a series of reforms administratively. Accordingly, the legislative provisions proposed by the Administration in the 103rd Congress are now very out of date, and the five-year authorization period that would have been provided in that bill has now ended. Many of the provisions in that bill, and in subsequent Superfund reform

bills, were designed to fix problems that have been addressed through the Superfund Administrative Reforms. As the result of the progress made in cleaning up Superfund sites in recent years, and the program improvements resulting from administrative reforms, there is no longer a need for comprehensive legislation. Comprehensive legislation could actually delay clean ups, create uncertainty and litigation, and undermine the current progress of the program.

Legislation to support the President's Budget is needed to reinstate the Superfund taxes. and provide EPA with access to mandatory spending. As part of Superfund reauthorization, the Administration would support targeted liability relief for qualified parties that builds upon the current success of the Superfund program. The Administration would support provisions that address:

prospective purchasers of contaminated property

innocent landowners

contiguous property owners, and

small municipal waste generators and transporters

EXPIRATION OF TAX

The Superfund tax authority expired December 31, 1995. The President's fiscal year (FY) 2000 Budget requests reinstatement of all Superfund taxes (including excise taxes on petroleum and chemicals, and a corporate environmental tax). The Trust Fund balance (unappropriated balance) was roughly $2.1 billion at the end of fiscal year 1998. The Trust Fund balance will be approximately $1.3 billion at the end fiscal year 1999.

H.R. 1300 - THE RECYCLE AMERICA'S LAND ACT

The Administration has reviewed H.R. 1300. While I was pleased to see that improvements have been made since the introduction of H.R.2727 last year, the Administration strongly opposes H.R. 1300 in its current form. Superfund legislation should be narrowly targeted and build upon the success of Superfund Administrative Reforms. Legislation should focus on provisions that have generated a broad consensus. Unfortunately, significant provisions in H.R. 1300 lack this consensus.

REMEDIES LESS PROTECTIVE

In general, provisions in the bill's remedy title represent some movement from previous bills towards the Administration's position that the existing program is working well. Unfortunately, H.R. 1300's remedy title weakens current law and could result in a Superfund program that would not adequately protect human health and the environment.

GROUNDWATER NOT PROTECTED

Contaminated ground water is a problem at more than 85 percent of Superfund sites. With roughly fifty percent of the U.S. population relying on ground water for their drinking water, the Administration strongly believes that this critical resource must be protected. The citizens of this nation want and deserve a safe and reliable supply of water for drinking and household use, industry and agriculture, recreation, and many other beneficial uses, and to know that they will continue to have such a supply available for future generations.

H.R. 1300 replaces the current Superfund program goal to restore contaminated ground water to beneficial uses, wherever practicable, with a much lower standard. Under H.R. 1300, there is no requirement to clean up ground water to beneficial use. Further, remedies selected under H.R. 1300 would not keep contaminated ground water from spreading to uncontaminated ground water. By including the term "reasonable point of compliance," the bill invites disputes over whether drinking water standards should be met in the groundwater or at the tap -potentially delaying cleanup and leaving valuable groundwater resources unprotected. Superfund legislation should not weaken the goal of restoring ground water to beneficial uses, wherever practicable.

Under the current program, EPA is using "smart" ground water remediation to provide appropriate levels of protection at lower cost. In the early days of the program, we relied almost solely on extraction and treatment of ground water to achieve cleanup objectives. In 1995, 60% of our ground water cleanup decisions reflect extraction and treatment being used in conjunction with other techniques, such as bioremediation, underground treatment walls, or monitored natural attenuation, which is often used to reduce low levels of contaminants. In 1995, about 25% of Superfund ground water remedies included monitored natural attenuation of contamination. OVEREMPHASIS ON COST AT EXPENSE OF LONG TERM PROTECTION

Superfund cleanups must be protective of human health and the environment over the long term. H.R. 1300 would weaken this goal by an over emphasis on cost considerations. The bill adds to the mandate in current law for "cost-effective" remedies a new requirement to balance the "reasonableness of the cost of the remedy” when evaluating remedial alternatives, evaluate "risk reduction benefits" for each alternative and applies a weaker preference for treatment to source materials while removing the preference for treatment for groundwater remedies. While EPA supports the selection of cost effective remedies, these provisions when taken together, inappropriately elevate the role of cost over human health and environmental protection, thereby decreasing the current emphasis on long-term protection. The bill could drive cleanup decisions toward containment remedies and less treatment, particularly of groundwater. H.R. 1300 could result in less long term protection of human health and the environment, and less productive reuse of Superfund sites.