RECOMMENDATION:
ORDINANCE approving and authorizing submission of a grant application to the U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) for a grant to fund brownfield remediation work through the Brownfield Revolving Loan Fund Grant program; declaring the City's eligibility for such grant; and authorizing the Director of Houston Public Works to act as signatory on grant applications for an estimated project period of 60 months.
SPECIFIC EXPLANATION:
The Comprehensive Environmental Response, Compensation and Liability Act (aka CERCLA or the Superfund Law) was amended by the Small Business Liability Relief and Brownfields Revitalization Act to include Section 104(k), which provides federal financial assistance for brownfields revitalization, including a revolving loan fund. A brownfield is real property where the expansion, redevelopment, or reuse of the location may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Cleaning up and reinvesting in these properties protects the environment, reduces blight, and takes development pressure off greenspace and other lands. The EPA's Brownfield Revolving Loan Fund Grant provides grant funding to recipients to pay for cleanup activities at brownfield sites. The program allows the grant recipient to provide sub-grants and loans to private and public partners to fund remediation work.
If loans are provided, the grant recipient is allowed to keep the repayment of principal and interest to fund further clean-up activities or loans. Through these grants, the EPA seeks to encourage the economic redevelopment of contaminated properties. If awarded, this grant would be a valuable tool and incentive to encourage economic redevelopment of impaired or blighted properties throughout the City of Houston.
Houston Public Works will seek a grant totaling $1 million. The EPA Brownfield Revolving Loan Fund Grant requires a local match of 20%. However, the local match is payable at the end of the five-year grant period and in-kind program costs are accepted in lieu of a cash payment. If awarded the grant, Houston Public Works will utilize the costs of establishing and administrating the program as the non-cash match.
Current plans call for Houston Public Works to establish a low-interest loan program to make funding available to the private sector to fund remediation of eligible properties with the city, to stimulate economic development and protect public health.
As this grant would establish a new program, additional actions from Council may be required in the future.
Fiscal Note:
Funding for this item is included in the FY2023 Adopted Budget. Therefore, no Fiscal note is required as stated in the Financial Policies.
Grant Fiscal Note: No Fiscal Note is required on grant items.
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Carol Ellinger Haddock, P.E., Director
Houston Public Works
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Estimated Spending Authority
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Department
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FY2023
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Out-Years
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Total
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Houston Public Works
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$40,000.00
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$160,000.00
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$200,000.00
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