THE BROWNFIELDS PROGRAM: OPPORTUNITY FOR COMMUNITIES Megan Quinn - - PowerPoint PPT Presentation

Office of Brownfields and Land Revitalization

THE BROWNFIELDS PROGRAM: OPPORTUNITY FOR COMMUNITIES

Megan Quinn Budget/Management Team Lead, OBLR/US EPA

Office of Brownfields and Land Revitalization

• EPA’s Office of Land and Emergency Management (OLEM) administers

EPA Cleanup Programs

• One of OLEM’s goals is to preserve and restore land by promoting and

using protective waste management practices and by assessing and cleaning up contaminated sites

• Superfund, Resource Conservation and Recovery Act (RCRA),

Underground Storage Tanks (UST) and Brownfields

CLEANING UP COMMUNITIES AND ADVANCING SUSTAINABLE DEVELOPMENT

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Office of Brownfields and Land Revitalization

ENVIRONMEN TAL ECONOMIC SOCIAL

Provide employment

• pportunities

Provide technical assistance to communities Cleanup to reasonably anticipated land use Facilitate land reuse Preserve greenspace through reuse Engage communities in cleanup and reuse decisions Promote use of renewable energy Minimize use of new material Promote water efficiency Minimize diesel emissions Minimize habitat disturbance Minimize waste generation

EPA’S CLEANUP PROGRAMS

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Office of Brownfields and Land Revitalization

EPA GRANTS & TOOLS

FIND, ASSESS AND CLEAN BROWNFIELDS

• Grants –provide funding to certain organizations to perform specific activities:
• Competitive:
• Assessment, Revolving Loan Fund (RLF), Cleanup (ARC)
• Environmental Workforce Development and Job Training (EWDJT)
• Multipurpose Grants
• Research, training, and technical assistance
• Non-competitive
• State and Tribal Response Programs
• Targeted Brownfields Assessment (TBA)
• Technical Assistance:
• Technical Assistance to Brownfields Communities (TAB)
• Land Revitalization project assistance

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Office of Brownfields and Land Revitalization

• Small Business Liability Relief & Brownfields Revitalization Act
• Amends CERCLA
• Defines “Brownfields Site”
• Authorizes funding for:
• Assessment, Cleanup and Revolving Loan Fund Grants and Targeted Brownfields Assessments

(TBAs)

• State and Tribal response programs
• Research, Training and Technical Assistance Grants
• Clarifies Superfund liability and provides liability protections for:
• Innocent landowners
• Contiguous property owners
• Bona fide prospective purchasers

BROWNFIELDS LAW (RECENTLY AMENDED BY THE BUILD ACT)

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Office of Brownfields and Land Revitalization

BUILD ACT AMENDMENTS TO BROWNFIELDS LAW- GRANT PROGRAMS

• Expanded Eligibility for Nonprofit Organizations and limited liability

corporations

• Adds 501(c)(3) nonprofits as eligible to receive assessment and RLF grants
• Increased Funding for Cleanup Grants
• Up to $500k per site; waiver up to $650k
• Established a Multi-Purpose Grant (§104(k)(4))
• Up to $1 M; no more than 15% of appropriation
• New ranking criteria
• Removed Administrative Cost Prohibition
• Recipients may use up to 5% of award on administrative costs

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BROWNFIELD PROPERTIES IN THE EPA DATABASE

Map to your projects: Cleanups in My Community https://www.epa.gov/cleanups/cleanups-my-community

• r GeoPlatform

http://intranet.epa.gov/gis/makeamap.html

Office of Brownfields and Land Revitalization

• Provide funding to:
• Inventory and assess sites
• Area-Wide Planning
• Cleanup and conduct redevelopment planning
• Conduct community involvement and facilitate area wide planning
• Who is eligible?
• State, local, and tribal governments
• Non-Profits
• General purpose units of local government
• Regional Council or redevelopment agencies
• Funding:
• Up to $300,000 to assess properties contaminated by hazardous substances,

pollutants, contaminants and/or petroleum sites

• For site-specific proposals, may seek waiver of $200,000 limit and

request up to $350,000

• Up to $600k for assessment coalition

BROWNFIELDS ASSESSMENT GRANTS

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Office of Brownfields and Land Revitalization

• Grant Recipient: City of Hickory, North Carolina
• Former Use: Hosiery Mills, Storage Space
• Current Use: Restaurant and Other Food Service, Event Venues,

Fitness Center, Office and Retail Space

• Grant Award: $400,000 (2007 and 2012)
• Grant Type: Brownfield Assessment Grant

BROWNFIELDS ASSESSMENT GRANTS

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Before: After:

Office of Brownfields and Land Revitalization

REVOLVING LOAN FUND (RLF) GRANTS

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• Provides funding to capitalize a revolving loan fund that provides loans and

subgrants to carry out cleanup of brownfield sites.

• Who is eligible?
• State, local, and tribal governments
• General purpose units of local government
• Regional Council or redevelopment agencies
• Funding:
• Up to $1,000,000 per eligible entity
• Funds may be used to address properties contaminated w/

hazardous substances and/or petroleum

• Requires a 20 percent cost share

Office of Brownfields and Land Revitalization

• Grant Recipient: City of Waterloo, IA
• Former Uses: Meat-packing plant, various

manufacturing plants, bulk oil storage facility, automotive service and repair shops, hotel

• Current Uses: Human services campus,

public works building, sports and recreation facility, mixed-use commercial and residential property

• Loan Amount: $350,000 (loaned to

developer for cleanup)

• Grant Type: Revolving Loan Fund Grant

*also received Brownfields Assessment Pilot Grant, CERCLA 128(a) State Response Program, Assessment and Cleanup Grants, and EPA Hazardous Substances Cleanup Grant

REVOLVING LOAN FUND (RLF) GRANTS

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Before: After:

Office of Brownfields and Land Revitalization

• Provide funding for cleanup activities at brownfields.
• Who is eligible?
• State, local, and tribal governments
• General purpose units of local government
• Regional Council or redevelopment agencies
• Non-profit organizations

*Applicants must own the property at time of application

• Funding:
• Up to $500,000 (new in FY19 from BUILD Act)
• Requires a 20 percent cost share

CLEANUP GRANTS

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Office of Brownfields and Land Revitalization

• Grant Recipient: City of Lakewood

Metro West Housing Solutions

• Former Uses: Housing, light

manufacturing, automobile impound,

• ffice and storage
• Current Uses: Lamar Station Crossing

and 40 West Arts District

• Grant Award: $189,000
• Grant Type: EPA Brownfield Cleanup

Grant

* also received Assessment Grant

CLEANUP GRANTS

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Before: After:

Office of Brownfields and Land Revitalization

• TBA Recipient: Tacoma-Pierce County

Health Department

• Former Uses: Grocery store, equipment

storage, mental health agency and college campus

• Current Use: Hilltop Regional Health Center
• Funding: $109,000
• Funding Type: EPA Targeted Brownfields

Assessment

TARGETED BROWNFIELDS ASSESSMENT (TBA)

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Before: After:

Office of Brownfields and Land Revitalization

ENVIRONMENTAL WORKFORCE DEVELOPMENT AND JOB TRAINING GRANTS

• Provides funding to recruit, train, and place unemployed and under-employed residents
• f communities affected by solid and hazardous waste to facilitate cleanup of

contaminated properties and prepare trainees for future employment in the environmental field.

• Supports training programs in solid waste, asbestos/lead abatement,

wastewater/stormwater management, integrated pest management and other areas.

• Who is eligible?
• States, counties, municipalities, Federally-recognized Indian Tribes, and U.S.

Territories

• Colleges and universities
• Community job training organizations
• Non-profit training centers and Workforce Investment Boards
• Funding:
• Up to $300,000 each

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Office of Brownfields and Land Revitalization

THE BROWNFIELDS PROGRAM: MINIMAL INVESTMENT, MAXIMUM REWARD

• As of FY17, Leverage $16.99 per $1 of EPA Brownfields

funds spent

• A recent study of residential property values increase 5 to

15.2% once a nearby brownfield is assessed or cleaned up

• $29 - $97 M in additional local tax revenue was

generated when brownfields sites cleaned up (study based on 48 sites across the country)

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Office of Brownfields and Land Revitalization

AND THIS IS WHERE CDFA AND PARTNERS COME IN …

• Counci

cil of D Deve velopment pment Finance ance Agenc encies es are in the last year of a five-year, $1 M EPA Tech assistance grant to help Brownfields Communities achieve redevelopment redevelopment success.

• CDFA will provide direct technical assistance through newsletters, webinars,

workshops, project marketplaces and project response teams to identify financing financing options for brownfields projects.

• The hope is….

1. Our communities will gain additional resources/know-how and 2. EPA Staff will become more financing savvy.

CDFA

Brownfields Communities Redevelopment & Revitalization

Office of Brownfields and Land Revitalization

• Assessed >28,000 brownfield

properties

• Cleaned up >1,600 properties
• Made >6,000 properties ready for

reuse

• Made >76,000 acres ready for reuse
• Leveraged >128,000 jobs
• Leveraged >$26.4 billion in public and

private funds

Cumulative Program Accomplishments Through FY18

Before: Standard Oil Filling Station in St. Louis, Missouri After: Olio wine bar and eatery in St. Louis, Missouri

Office of Brownfields and Land Revitalization

Tools and technical assistance that help communities sustainably reuse properties

• Guides for brownfields leveraging, federal

programs, stakeholder engagement, state response, urban agriculture, aquaponics, etc.

• Assistance for feasibility studies, market

analyses, stakeholder engagement, including green & healthy practices into site cleanup, design and (de)construction, etc.

Land Revitalization

www.epa.gov/land-revitalization

Office of Brownfields and Land Revitalization

THANK YOU!

Megan Quinn Quinn.Megan@epa.gov

Visit our website: www.epa.gov/brownfields

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Webinar Series Project Marketplace Financing Toolkit Project Response Teams

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

Brownfields Financing Toolkit

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

monthly news and event updates!

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

Brownfield Financing Webinar Series

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

Upcoming 2018 Webinars: The Developer’s Perspective in Financing Brownfield Projects September 6, 2018 2:00 – 3:30pm EST REGISTER! Previous Topics Include:

Reimaging Brownfields as Transit Oriented Developments Hazardous to Healthy: Financing Solutions for Recovering Brownfields Financing Brownfields with Private Activity Bonds Reviving Economic Activity on Former Manufacturing Sites Strategic TIF Structuring for Brownfield Redevelopment Reaching Your Redevelopment Goals with Brownfields Revolving Loan Funds And Much More…

What is the Marketplace?

• Forum that connects communities

looking to finance brownfield redevelopment projects with development financiers and brownfield project experts

Community Benefits:

• Discover financial resources
• Direct access to financial advisors and

brownfield experts

Brownfields Project Marketplace

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

Project Response Teams

Opportunities available in 2018!

CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

• Texarkana, TX
• Tulsa, OK
• Kalispell, MT
• Josephine County, OR
• Longmont, CO
• New Bern, NC
• Englewood, IL
• Bedford Heights, OH
• Lee, MA
• New Orleans, LA
• Springfield, MO
• Burlington, VT
• Bend, OR
• Pueblo, CO
• Sheridan, CO
• Texarkana, AR

Previous Recipients:

• Fresno, CA
• Ponce, PR
• Pensacola, FL
• Fresno, CA
• Dellwood, MO
• Duluth, MN
• St. Marys, GA

CDFA Brownfields Financing Webinar Series

Now Scheduling Interviews for Project Response Teams!

Upcoming Events

Contact: Cayla Matsumoto Manager, Research & Technical Assistance 614-705-1318 cmatsumoto@cdfa.net CDFA Brownfields Technical Assistance Program — www.cdfabrownfields.org

In-Person Project Marketplace – Dallas, TX Nov 8, 2017 CDFA National Development Finance Summit REGISTER! CDFA will waive the CDFA National Summit registration fee for any community that is chosen to present a project at the Marketplace.

C D FA P R ES E N TAT I O N

August 16, 2018

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PROGRAM OVERVIEW

MISSION STATEMENT

The Water Infrastructure Finance and Innovation Act (WIFIA) program accelerates investment in our nation’s water and wastewater infrastructure by providing long-term, low- cost, supplemental credit assistance under customized terms to creditworthy water and wastewater projects of national and regional significance.

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FEDERAL CREDIT PROGRAM

• Leverage federal funding since Congress only needs to

appropriate money to cover estimated losses and the remainder of the funding is borrowed from and repaid to Treasury

• A small amount of federal funds can support a larger

amount of infrastructure investment

$25

MILLION IN APPROPRIATIONS

$2.3

BILLION IN LOANS

$5.1

BILLION IN INFRASTRUCTURE INVESTMENT

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ELIGIBILITY

Eligible borrowers Eligible projects

• Local, state, tribal and

federal government entities

• Partnerships and joint

ventures

• Corporations and

trusts

• Clean Water and

Drinking Water State Revolving Fund (SRF) programs

• Projects that are eligible for the Clean Water SRF,

not withstanding the public ownership clause

• Projects that are eligible for the Drinking Water

SRF

• Enhanced energy efficiency projects at drinking

water and wastewater facilities

• Brackish or seawater desalination, aquifer

recharge, alternative water supply and water recycling projects

• Drought prevention, reduction or mitigation

projects

• Acquisition of property if it is integral to the

project or will mitigate the environmental impact

• f a project
• A combination of projects secured by a common

security pledge or submitted under one application by an SRF program

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IMPORTANT PROGRAM FEATURES

Minimum project size for large communities. Minimum project size for small communities (population of 25,000 or less). Maximum portion of eligible project costs that WIFIA can fund. Maximum final maturity date from substantial completion. Maximum time that repayment may be deferred after substantial completion of the project. Interest rate will be equal to or greater than the U.S. Treasury rate of a similar maturity. Projects must be creditworthy. NEPA, Davis-Bacon, American Iron and Steel, and all federal cross-cutter provisions apply.

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APPLICATION PROCESS

Project Selection

• Notice of Funding

Availability

• Letter of Interest (LOI)

submission

• LOI evaluation
• Invitation to apply

Project Approval

• Application

submission

• Application evaluation
• Term sheet
• Application approval

Negotiation and Closing

• Negotiation activities
• Credit agreement

execution

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APPLICATION PROCESS

PLEDGE CREDIT DUE DILIGENCE TECHNICAL REVIEW NEGOTIATE TERMS DOCUMENTATION Existing Lien of System Revenues 4 Months PLEDGE CREDIT DUE DILIGENCE TECHNICAL REVIEW NEGOTIATE TERMS DOCUMENTATION Non-Recourse Indenture with Customized Terms 12 Months

Example Project Y: $200M low to medium risk capital project Example Project Z: $1,000M innovative high risk capital project

WIFIA FEES $200,000 WIFIA FEES $500,000+

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LESSONS LEARNED FROM FIRST FUNDING ROUND

Process can be fast and relatively easy!

• Submit complete and fulsome information, and be transparent

about how you want to structure the WIFIA loan:

• WIFIA loans are security instruments similar to a bond or

private placement

• Program is willing to take risk, but we need to understand it
• Be prepared for negotiation if you’re asking WIFIA for highly

customized terms

• In negotiations, focus on what is most important:
• WIFIA is highly flexible and it’s likely we can get you 90% of

what you need very easily; negotiating the last 10% is what will take time

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CURRENT NOTICE OF FUNDING AVAILABILITY

EPA made available $55 million in budget authority to cover the subsidy cost of providing WIFIA credit assistance

• This funding covers the federal government’s anticipated cost of

providing approximately $5.5 billion in credit assistance

• Therefore, the $55 million can support a total of $11 billion in water

infrastructure investment

2018 Priorities

• Provide for clean and safe drinking water, include reducing exposure

to lead, ensuring continuous compliance with contaminant limits, and responding quickly to emerging concerns

• Repair, rehabilitate, and replace aging infrastructure and conveyance

systems

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BENEFITS

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LOW, FIXED INTEREST RATE

The interest rate will be a single fixed rate established at closing

• May receive multiple disbursements at the same fixed

interest rate Low interest rate equal to the U.S. Treasury rate of similar maturity

• Not affected by borrower’s credit
• Maturity is calculated using the weighted average life
• Rate is lower than the 30 year SLGS rate, which was 2.93%
• n October 26

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LOW FEES

WIFIA’s fees compare favorably to capital market fees

• Capital market fees are determined by a percentage of the

total loan value

• WIFIA fees are based on the costs associated with providing

credit assistance

• Application fees are eligible for financing as part of the

WIFIA loan

• For the 2017 Cohort of projects, WIFIA fees are significantly

lower than estimated capital markets fees

*Average size of loan and WIFIA fees are estimates based on FY2017 Projects

AVERAGE SIZE OF LOAN* AVERAGE WIFIA FEE* CAPITAL MARKET FEES

$200M $250K - $350K $1M - $2M

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FLEXIBLE FINANCIAL TERMS

Customized repayment schedule

• Repayment period is 35 years from substantial completion
• Payments may be deferred up to 5 years following substantial completion
• WIFIA loans can be amortized to complement other debt repayments

Disbursements

• Multiple disbursements at no additional cost to the borrower
• May be synchronized with funding needs, reducing the amount of accrued interest
• May use interim construction financing and draw WIFIA up to 1 year after

construction concludes to repay such financings.

Prepayment

• There is no penalty for prepayment

Lien Priority

• WIFIA loans may be junior (i.e., subordinate) to the senior debt obligations in

payment priority in some circumstances

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ENCOURAGES CO-FINANCING

WIFIA loans can be combined with various sources of funding Borrowers and co-financing partners benefit from the project being backed by the Federal government WIFIA can execute a loan agreement in advance of other sources of funds for creditworthy borrowers

• Private equity
• Revenue bonds
• Corporate debt
• Grants
• State Revolving

Fund loans

• Other federal debt

financing

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EXECUTED TRANSACTIONS

Existing Senior Debt Existing Senior Debt

Borrower

King County Wastewater Treatment Div. City of Omaha Orange County Water District San Francisco PUC Loan Amount: $134M $69M $135M $699M Term: 30 years from project completion 30 years from project completion 35 years from project completion 35 years from project completion Co-Financing Revenue Bonds & SRF Loan Revenue Bonds OR SRF Loan COPs Revenue Bonds and SRF Loan Transaction Flexibilities: 1) 10+ year interest

• nly period

2)Sculpted Debt Service 1)WIFIA commitment prior to execution of an SRF agreement 2) Interest capitalization during construction 1) Optional ability to use WIFIA to retire construction financing 2) 5 year capitalized interest after construction 3) Springing Lien 1) Optional ability to use WIFIA to retire construction financing 2) Interest capitalization during construction 3) Sculpted Debt Service

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WIFIA debt service is sculpted to fit with existing bond payments

CUSTOMIZED WIFIA REPAYMENT SCHEDULE- EXAMPLE 1

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CUSTOMIZED WIFIA REPAYMENT SCHEDULE- EXAMPLE 2

WIFIA deferral period during and 5-years after construction

WIFIA’s flexible repayment schedule allows for rate increases to be phased in over a longer period of time

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SUBORDINATION

WIFIA debt with a subordinated lien allows borrower to take on more debt

Senior lien capacity Junior lien capacity

Reserved Capacity Existing Senior Debt Existing Senior Debt

CONTACT US

mcdonald.kevin@epa.gov Website: www.epa.gov/wifia Email: wifia@epa.gov Sign-up to receive announcements about the WIFIA program at https://tinyurl.com/wifianews

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This webcast is designed to provide accurate and authoritative information in regard to the subject matter covered. It is available with the understanding that CDFA and the panelists are not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.