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Funding

 

Insurance

Indiana is a very good state to use insurance as a means for recovery of insurance costs due to the Case AMERICAN STATES INSURANCE COMPANY v. Vincent A. KIGER and Maria L. Kiger d/b/a Kiger's Sunoco

The Indiana Brownfields Program offers financial assistance primarily to qualifying political subdivisions (as defined by Indiana Code 13-11-2-164(c)) in Indiana to assess, demolish and remediate brownfield sites.

Indiana

Grants

ARRA LUST Award

The Indiana Brownfields Program (Brownfields Program), on behalf of the Indiana Department of Environmental Management (IDEM)'s Leaking Underground Storage Tank (LUST) Program, is administering approximately $4 million of federal American Recovery and Reinvestment Act (ARRA) funding from the federal LUST Trust Fund to be used for cleaning up leaks from underground storage tanks on eligible LUST sites. LUST funds can be used for cleanup activities necessary as a result of a release from a federally-regulated underground storage tank, with the expectation that the money will be used for shovel ready cleanups. The money may be used to either oversee assessment and clean up of underground tank leaks or directly pay for assessing and cleaning up leaks from federally-regulated tanks where the responsible party is unknown, unwilling, unable, or the cleanup is an emergency response.

Excess Liability Trust Fund

The Excess Liability Trust Fund (ELTF) provides a mechanism for the reimbursement of money spent by underground storage tank owners and operators on the cleanup of petroleum released from underground storage tanks. It also provides the Federally mandated financial assurance for owners and operators of underground petroleum storage tanks and a source of money for the indemnification of third parties.

 Trails and Parks Initiative (TPI)

In 2007, the Indiana Brownfields Program developed the Trails and Parks Initiative (TPI) using $400,000 in U.S. Environmental Protection Agency (U.S. EPA) assessment funding awarded to Indiana plus $200,000 in matching funds from the IFA. Applications for TPI funding are accepted on a rolling basis. TPI offers Phase I and Phase II environmental site assessments to eligible local political subdivisions and non-profit organizations with plans to redevelop eligible brownfield sites for use as trails, parks, recreational space or other greenspace. The Trails and Parks Initiative Fact Sheet is available here.pdf

Automotive Sector Brownfields Assessment Initiative

The Automotive Sector Brownfields Assessment Initiative provides site assessments and related activities to help Indiana communities facilitate the redevelopment of permanently idled or closed auto dealerships and parts/supplier, assembly and manufacturing plants that has been hindered by actual or potential environmental contamination. The Auto Sector Brownfields Assessement Initiative Fact Sheet is available here.pdf

Loans

State Revolving Loan Fund

The State Revolving Fund (SRF) Loan Program is a state agency administered by the Indiana Finance Authority that provides low-interest loans to municipalities for wastewater and drinking water infrastructure improvement projects.  For more information see the Indiana State Revolving Fund website.

Revolving Loan Fund

The purpose of the Indiana Brownfields Program's Revolving Loan Fund (RLF) incentive is to facilitate the redevelopment of brownfield sites by making low cost funding available through low-to-zero interest loans to finance environmental cleanups. In September 2008, the Indiana Finance Authority entered into a cooperative agreement with the U.S. EPA which added an April 2008 RLF award of $2 million to funds revolved from a loan issued with funds from a prior RLF grant to the State. At present, the Program has over $2.3 million in RLF funds available for the cleanup and redevelopment of brownfield properties. For more information, theRevolving Loan Fund Fact Sheet is available here.pdf

Other Sources 

Supplemental Environmental Projects

The Indiana Brownfields Program has collaborated with the Indiana Department of Environmental Management (IDEM) to offer political subdivisions in Indiana access to Supplemental Environmental Project (SEP) funds for brownfields redevelopment activities. SEPs are used by IDEM as a tool to settle enforcement cases. When IDEM agrees to allow a respondent to settle a case with a brownfield SEP, an agreed-upon amount from a civil penalty owed to IDEM is paid directly by the respondent to the IFA for use on a brownfield project. Examples of eligible uses of brownfield SEP funds include the following: Phase I and Phase II Environmental Site Assessments, remediation and demolition activities, habitat restoration, and site acquisition. In order to administer this form of financial assistance, Program staff have developed guidelines for those communities that are the beneficiaries of a brownfield SEP to explain the eligible uses of the funding, administrative procedures for accepting and utilizing the funding, etc. Unlike other financial incentives received through the Indiana Brownfields Program, these are not funds for which an entity can apply; they result only from a negotiated settlement from IDEM's Office of Enforcement. Additional information is available here.PDF

Partners for Reclamation

The Division of Reclamation and area Resource Conservation and Development (RC&D) Councils have joined together to provide an opportunity to help local citizens fix the adverse effects of coal mining on their property. Landowners work with their local Soil and Water Conservation District (SWCD) to develop a plan to correct the mining related problems unique to their property. Once a reclamation plan has been accepted by the county SWCD, the Division of Reclamation will review the proposed project for compliance with all applicable regulations to determine if it is appropriate for this program. Funding is available on a competitive basis, and based upon the technical and financial aspects of the individual site. If a site is selected, the Division of Reclamation will fund up to eighty-five percent of the project costs through the RC&D. The RC&D may assist the property owner with contracting and other aspects of the project.  If you would like more information on this program, download the on the Partners for Reclamation Program brochure.pdf

Tax Incentives

Federal Tax Incentive – site eligibility determinations (qualified contaminated sites)

Originally signed into law in 1997 and recently extended through December 31, 2009, the Brownfields Tax Incentive encouraged the cleanup and reuse of brownfields by providing the following advantages to taxpaying stakeholders conducting environmental cleanup at brownfield sites:

See the Federal Tax Incentive memo here.pdf

Tax Waiver – brownfield determinations

The Department of Local Government Finance may cancel any property taxes assessed against real property owned by a county, township, city, town or the state in a petition requesting that the department cancel the taxes is submitted by the auditor, assessor and treasurer of the county in which the real property is located (IC 6-1.1-36.7). This provision applies to any property, regardless of whether it is a brownfield site. However, there is a specific statutory provision dealing with the waiver or reduction of delinquent taxes on a brownfield property that applies to property owners as well. See IC 6-1.1-45.5. The brownfield tax reduction or waiver statute outlines a similar process for a person that owns or desires to own a brownfield to file a petition with the county auditor seeking a reduction or waiver of the delinquent tax liability. As a part of the petition that is filed, the petitioner must seek a statement from the Indiana Department of Environmental Management (IDEM) that the property is a brownfield. Submittal of the tax reduction waiver form to the Indiana Brownfields Program will enable IDEM to make such a determination. In order to be eligible for reduction or waiver of taxes, the petitioner may not have contributed, or had an ownership interest in any entity that contributed, to the contamination of the property. See the Tax Reduction Waiver Fact Sheet here.pdf

KENTUCKY

Grants

Petroleum Storage Tank Environmental Assurance Fund (PSTEAF)

On Dec. 22, 1988, the U.S. Congress passed legislation that required owners or operators of underground storage tanks (USTs) to demonstrate their capability to pay for remediation costs and third-party damages in the event of a release into the environment.  Rules governing the requirements are contained in 40 CFR Subpart H.  In response, the 1990 Kentucky General Assembly created the PSTEAF to assist owners and operators of USTs in meeting the federal financial responsibility requirement and to provide reimbursement of eligible costs of corrective action due to a release from a UST system.

All reimbursement for UST-related activities comes from the PSTEAF.  Monies for the PSTEAF come from an assurance fee of $0.014 assessed on each gallon of gasoline and special fuels imported to Kentucky.

Owners and operators can seek reimbursement for costs associated with removal and/or remediation in the event of a release.  Reimbursement for removal costs come from the Small Owner Tank Removal Account (SOTRA).  Reimbursement for remediation costs come from the Financial Responsibility Account (FRA) and the Petroleum Storage Tank Account (PSTA).

Free Targeted Brownfield Assessments (TBAs)

The commonwealth of Kentucky can provide TBAs to municipalities and nonprofit agencies free of charge. The brownfield program is currently looking for projects. A candidate site should have redevelopment potential, be publicly owned or abandoned, and suffer from the stigma of potential environmental liability. Kentucky is limited in the number of TBAs it can perform each year, so sites are considered on a first-come, first-served basis.

US EPA

EPA's Brownfields Program provides direct funding for brownfields assessment, cleanup, revolving loans, and environmental job training. To facilitate the leveraging of public resources, EPA's Brownfields Program collaborates with other EPA programs, other federal partners, and state agencies to identify and make available resources that can be used for brownfields activities. In addition to direct brownfields funding, EPA also provides technical information on brownfields financing matters.

Grants

Assessment Grants

Assessment grants provide funding for a grant recipient to inventory, characterize, assess, and conduct planning and community involvement related to brownfield sites.

Revolving Loan Fund Grants

The purpose of Revolving Loan Fund Grants is to enable States, political subdivisions, and Indian tribes to make low interest loans to carryout cleanup activities at brownfields properties.

Cleanup Grants

Cleanup grants provide funding for a grant recipient to carry out cleanup activities at brownfield sites.

Job Training Grants

Job Training Grants are designed to provide funding to eligible entities, including nonprofit organizations, to recruit, train, and place, predominantly low-income and minority, unemployed and under-employed residents of brownfields-impacted communities with the skills needed to secure full-time, sustainable, employment in the environmental field and in the assessment and cleanup work taking place in their communities.

Training, Research, and Technical Assistance Grants

Training, Research, and Technical Assistance Grants provide funding to eligible organizations to provide training, research, and technical assistance to facilitate brownfields revitalization.

Targeted Brownfields Assessments

The Targeted Brownfields Assessment (TBA) program is designed to help states, tribes, and municipalities–especially those without EPA Brownfields Assessment Pilots/Grants–minimize the uncertainties of contamination often associated with brownfields.

Other Brownfields Funding Opportunities

State and Tribal Response Programs

Find background information, state & tribal grant funding guidance, MOUs, MOAs, state Brownfields web sites, and state Voluntary Cleanup Programs (VCP) web sites.

Sustainability Pilots

Sustainability Pilots are an EPA effort to promote environmental sustainability at local brownfields projects.

Other Funding and Financing for Brownfields

Find information about other brownfields-related money matters.

Office of Surface Mining Reclamation and Enforcement

Grants

Abandoned Mine Land (AML) Grants

The Abandoned Mine Land program is authorized in Title IV of the Surface Mining Law. States with an approved program, or specific Indian tribes, are eligible for Abandoned Mine Land grants. The funds come from fees paid by active coal mine operators on each ton of coal mined.