Sec. 32-762. Brownfield remediation and development account.
Sec. 32-763. (Formerly Sec. 32-9kk). Remedial action and redevelopment municipal grant program.
Sec. 32-765. Targeted brownfield development loan program.
Sec. 32-762. Brownfield remediation and development account. (a) There is established an account to be known as the “brownfield remediation and development account”, which shall be a separate, nonlapsing account. There shall be deposited in the account: (1) The proceeds of bonds issued by the state for deposit into said account and used in accordance with this section; (2) repayments of assistance provided pursuant to subsection (c) of section 22a-133u; (3) interest or other income earned on the investment of moneys in the account; (4) funds recovered pursuant to sections 32-766 and 32-767; (5) any proceeds realized by the state from activities pursuant to section 32-763 or section 32-765; and (6) all funds required by law to be deposited in the account. Any balance remaining in the account at the end of any fiscal year shall be carried forward in the account for the fiscal year next succeeding.
(b) All moneys received in consideration of financial assistance, including payments of principal and interest on any loans made pursuant to section 32-765, shall be credited to the account and shall become part of the assets of the account. At the discretion of the Commissioner of Economic and Community Development and subject to the approval of the Secretary of the Office of Policy and Management, any federal, private or other moneys received by the state in connection with projects undertaken pursuant to subsection (b) of section 32-763 or section 32-765 shall be credited to the assets of the account.
(c) Notwithstanding any provision of the general statutes, proceeds from the sale of bonds available pursuant to subdivision (1) of subsection (b) of section 4-66c may, with the approval of the Governor and the State Bond Commission, be used to capitalize the account.
(d) The commissioner may use funds in the account (1) to provide financial assistance for the remediation and development of brownfields in the state pursuant to subsection (b) of section 32-763 or section 32-765, (2) to provide financial assistance to parcel owners required to perform mitigation actions pursuant to section 22a-6u, and (3) for administrative costs not to exceed five per cent of such funds.
(P.A. 13-308, S. 3; P.A. 23-57, S. 2; P.A. 25-110, S. 116.)
History: P.A. 13-308 effective July 1, 2013; P.A. 23-57 amended Subsecs. (b) and (d) to change reference from Sec. 32-763 to Sec. 32-763(b); P.A. 25-110 amended Subsec. (a) to delete reference to General Fund, effective July 1, 2025.
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Sec. 32-763. (Formerly Sec. 32-9kk). Remedial action and redevelopment municipal grant program. (a) There is established a remedial action and redevelopment municipal grant program to be administered by the Department of Economic and Community Development for the purpose of providing grants pursuant to subsections (b) and (c) of this section.
(b) (1) Municipalities, Connecticut brownfield land banks and economic development agencies may apply for grants under this section for the eligible costs of (A) brownfield remediation projects or distinct phases thereof, (B) brownfield assessment projects or distinct phases thereof, and (C) reasonable administrative expenses not to exceed five per cent of any grant awarded. A grant awarded under this section shall not exceed six million dollars for a project site or distinct phase and under an application submitted in accordance with subdivision (4) of this subsection, except, notwithstanding such limit and the provisions of subdivision (6) of this subsection, additional grant awards may be made that exceed such limit to related but distinct phases of a project or project addresses if separate applications are submitted under subdivision (4) of this subsection.
(2) A grant applicant shall submit an application for a grant under this subsection to the Commissioner of Economic and Community Development on forms provided by the commissioner and with such information the commissioner deems necessary, including, but not limited to: (A) A description of the proposed project or a distinct phase thereof; (B) an explanation of the expected benefits of the project in relation to the purposes of this section; (C) information concerning the financial and technical capacity of the applicant to undertake the proposed project; (D) a project budget; and (E) with respect to a brownfield remediation project, a description of the condition of the brownfield, including the results of any environmental assessment of the brownfield in the possession of or available to the applicant.
(3) The commissioner may approve, reject or modify any application properly submitted in accordance with the provisions of this subsection. The commissioner may not reject an application solely because a municipality has submitted more than one application in response to a request for applications. In reviewing an application and determining the amount of the grant, if any, to be provided, the commissioner shall consider the following criteria: (A) The availability of funds; (B) the estimated costs of assessing and remediating the brownfield, if known; (C) the relative economic condition of the municipality in which the brownfield is located; (D) the relative need of the project for financial assistance; (E) the degree to which a grant under this subsection is necessary to induce the applicant to undertake the project; (F) the public health and environmental benefits of the project; (G) the relative benefits of the project to the municipality, the region and the state, including, but not limited to, the extent to which the project will likely result in a contribution to the municipality's tax base, the retention and creation of jobs and the reduction of blight; (H) the time frame in which the contamination occurred; (I) the relationship of the applicant to the person or entity that caused the contamination; (J) the length of time the brownfield has been abandoned; (K) the taxes owed and the projected revenues that may be restored to the community; (L) the relative need for assessment of the brownfield within the municipality or region; (M) whether the brownfield is located in a federally designated opportunity zone; and (N) such other criteria as the commissioner may establish consistent with the purposes of this subsection.
(4) The commissioner shall award grants under this subsection on a competitive basis, based on a request for applications occurring at least twice annually. The commissioner may increase the frequency of requests for applications and awards depending upon the number of applicants and the availability of funding. A grant applicant may submit more than one application in response to a request for applications. On and after July 1, 2025, the commissioner may give priority to grant applications for brownfields located in federally designated opportunity zones.
(5) If a grant recipient under this subsection is not subject to section 22a-134a, such recipient shall enter a program for remediation of the property pursuant to either section 22a-133x, 22a-133y, 32-768 or 32-769, as determined by the commissioner, except no such recipient shall be required to enter such a program if the grant funds are used (A) for the abatement of hazardous building materials and such recipient demonstrates to the satisfaction of the Commissioners of Economic and Community Development and Energy and Environmental Protection that such hazardous building materials represent the sole or sole remaining environmental contamination on the property, (B) solely for assessment of the brownfield, (C) as provided in subdivision (7) of this subsection, or (D) for remediation actions that are not site-wide and will not benefit from being in a program for remediation.
(6) The commissioner, in consultation with the Commissioner of Energy and Environmental Protection and following the award of a grant under this subsection to a municipality, Connecticut brownfield land bank or economic development agency pursuant to subdivisions (3) and (4) of this subsection, may award an additional grant under this subsection to such municipality, Connecticut brownfield land bank or economic development agency to enable the completion of a brownfield remediation or assessment project, provided such project is identified as a priority by said commissioners and such additional grant funds (A) will be used to address unexpected cost overruns or costs related to remedial activities that will provide a greater environmental benefit than originally proposed pursuant to subdivision (2) of this subsection, and (B) will not result in more than six million dollars in total grants being awarded under this section for a single brownfield remediation or assessment project or for a project site or distinct phase thereof. If the projected need for additional funding identified in the course of implementing the project exceeds fifty per cent of the original grant award or six million dollars, a new application may be made under subdivision (4) of this subsection, provided proof is provided to the satisfaction of the commissioner that (i) new parcels have been added to the original project, (ii) the budget required to complete the remediation actions has increased due to issues identified during remediation action work, or (iii) the initial scope of remediation action has been altered or expanded.
(7) The commissioner may award grants under this subsection to any municipality, Connecticut brownfield land bank, economic development agency or regional council of governments organized under sections 4-124i to 4-124p, inclusive, for the eligible costs of developing a comprehensive plan for the remediation and redevelopment of multiple brownfields whenever such plan is consistent with the state plan of conservation and development, adopted pursuant to chapter 297, and the plan of conservation and development, adopted pursuant to section 8-23, for each municipality in which such brownfields are located. For purposes of this subsection, “eligible costs” shall also include expenditures associated with the development of any such plan for remediation and redevelopment.
(c) (1) The commissioner may award capacity building grants for operational expenses to any Connecticut brownfield land bank, provided such land bank (A) matches any state funds awarded pursuant to this subsection, and (B) has not previously been awarded a capacity building grant under this subsection. A grant awarded under this subsection shall not exceed fifty thousand dollars.
(2) Any Connecticut brownfield land bank may apply to the Commissioner of Economic and Community Development, in the form and manner prescribed by the commissioner, for a capacity building grant in an amount indicated by the Connecticut brownfield land bank. The Connecticut brownfield land bank shall include such information the commissioner deems necessary to determine whether to award such capacity building grant, in whole or in part, and to verify that such land bank has sufficient funds to match such amount and has not previously been awarded a capacity building grant under this subsection.
(d) The provisions of sections 32-5a and 32-701 shall not apply to grants provided pursuant to this section.
(P.A. 07-233, S. 3-6; P.A. 08-174, S. 5; P.A. 11-80, S. 1; 11-141, S. 7; P.A. 12-183, S. 1-4; June 12 Sp. Sess. P.A. 12-1, S. 152; P.A. 13-123, S. 10; 13-308, S. 4; P.A. 15-193, S. 1; P.A. 17-214, S. 12; P.A. 18-85, S. 5; P.A. 19-54, S. 11; P.A. 20-1, S. 91; P.A. 23-57, S. 1; P.A. 25-174, S. 68.)
History: P.A. 07-233 effective July 1, 2007; P.A. 08-174 amended Subsec. (a)(7) to redefine “eligible brownfield project” to include foreclosure and investigation, added Subsec. (a)(11) to define “eligible grant recipients”, amended Subsec. (b) to include reference to Subsecs. (e) and (f), amended Subsec. (d) to include a contribution to municipality's tax base in Subdiv. (7), to insert new Subdivs. (10) re length of abandonment, (11) re taxes owed and (12) re type of financial assistance requested and to renumber existing Subdiv. (10) re other criteria as new Subdiv. (13), added new Subsec. (e) re remedial action and redevelopment municipal grant program, added new Subsec. (f) re targeted brownfield development loan program, redesignated existing Subsecs. (e) to (m) as new Subsecs. (g) to (o) and made technical changes, effective July 1, 2008; pursuant to P.A. 11-80, “Commissioner of Environmental Protection” and “Department of Environmental Protection” were changed editorially by the Revisors to “Commissioner of Energy and Environmental Protection” and “Department of Energy and Environmental Protection”, respectively, effective July 1, 2011; P.A. 11-141 amended Subsec. (a)(1) by redefining “brownfield” to include sites where expansion has not occurred and that require investigation or remediation, effective July 1, 2011; P.A. 12-183 amended Subsec. (a) by redefining “eligible applicant” in Subdiv. (4), redefining “eligible grant recipients” in Subdiv. (11) and adding Subdiv. (12) defining “economic development agency”, amended Subsec. (f) by replacing provision re loans for developing housing to serve needs of first-time home buyers with provision re loans for developing affordable housing units, suitable for first-time home buyers, incentive housing zones, workforce housing and other residential purposes in Subdiv. (2), adding “or provide a specified number of affordable housing units” in Subdiv. (4), adding “residential” re use or reuse of property, changing “housing needs” to “affordable housing needs” and adding “for workforce housing” in Subdiv. (7), and adding Subdiv. (10) re availability of loan program to municipalities, amended Subsec. (j) by adding provision re use of funds for staffing, marketing, web site development and administration of Office of Brownfield Remediation and Development, and amended Subsec. (l)(4) by adding reference to Subsec. (k), effective July 1, 2012; pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated”, effective July 1, 2012; P.A. 13-123 made technical changes in Subsec. (a)(4), effective June 18, 2013; P.A. 13-308 made substantial revisions to section, deleted former Subsecs. (a) to (d), (e)(3) to (5), (e)(7) and (8) and (f) to (o), redesignated existing Subsec. (e)(1) as Subsec. (a), existing Subsec. (e)(2) as Subsec. (d) and existing Subsec. (e)(6) as Subsec. (e), amended redesignated Subsec. (a) by redefining purpose of grant program and limiting any grant to no more than four million dollars, added new Subsec. (b) re grant applications, added new Subsec. (c) re approval of grant applications, amended redesignated Subsec. (d) by changing annual date of request for applications from June 1 to October 1, annually, added Subsec. (f) re remediation programs for recipients of loans from grant recipients, added Subsec. (g) re applicability of Secs. 32-5a and 32-701, and made technical and conforming changes, effective July 1, 2013; Sec. 32-9kk transferred to Sec. 32-763 in 2014; P.A. 15-193 replaced former Subsecs. (e) and (f) re low-interest loans to brownfield redeveloper with new Subsecs. (e) and (f) re additional grants to municipalities and economic development agencies for brownfield remediation and assessment projects and grants to municipalities, economic development agencies and regional councils of governments for brownfield remediation and redevelopment plans, effective July 1, 2015; P.A. 17-214 amended Subsecs. (a), (e) and (f) by adding references to Connecticut brownfield land bank, effective July 1, 2017; P.A. 18-85 added new Subsec. (e) re requirements for certain grant recipients to enter certain property remediation programs, and redesignated existing Subsecs. (e) to (g) as Subsecs. (f) to (h); P.A. 19-54 amended Subsec. (c) to add new Subdiv. (13) re brownfield located in federally designated opportunity zone, and redesignated existing Subdiv. (13) as Subdiv. (14), and amended Subsec. (d) to add provision re commissioner to give priority to grant applications for brownfields located in federally designated opportunity zones, effective July 1, 2019; P.A. 20-1 amended Subsec. (c) to add provision re commissioner may not reject application solely because municipality has submitted more than one application and amended Subsec. (d) to replace “on or before October first,” with “at least twice” and add provision re municipality may submit more than one application, effective March 12, 2020; P.A. 23-57 amended Subsec. (a) to designate provision re grants for brownfield remediation projects as new Subsec. (b)(1), redesignated existing Subsecs. (b) to (e) as new Subsec. (b)(2) to (b)(5), redesignated existing Subsecs. (f) and (g) as Subsec. (b)(6) and (b)(7), redesignated existing Subsec. (b)(1) to (b)(5) as Subsec. (b)(2)(A) to (b)(2)(E), redesignated existing Subsec. (c)(1) to (c)(14) as Subsec. (b)(3)(A) to (b)(3)(N), redesignated existing Subsec. (e)(1) to (e)(3) as Subsec. (b)(5)(A) to (b)(5)(C), redesignated existing Subsec. (f)(1) to (f)(3) as Subsec. (b)(6)(A) to (b)(6)(C), added new Subsec. (c)(1) re awarding of capacity building grants, added new Subsec. (c)(2) re applying for capacity building grant, redesignated existing Subsec. (h) as new Subsec. (d) and made technical and conforming changes throughout; P.A. 25-174 substantially revised Subsec. (b) including adding provision re grants for distinct phases of brownfield assessment projects, increasing grant award under section from $4,000,000 to $6,000,000 and adding provision re additional grant awards may exceed limit if separate applications submitted in Subdiv. (1), replacing “July 1, 2019” with “July 1, 2025” and “shall” with “may” re priority to grant applications in Subdiv. (4), adding Subsec. (b)(D) re remediation actions that are not state-wide and will not benefit from remediation program, deleting former Subsec. (b)(6)(B) re additional grant funds not to exceed 50 per cent of original grant, redesignating existing Subsec. (b)(6)(C) as Subsec. (b)(6)(B) and therein adding provision re new application if need for additional funding identified in Subdiv. (6), effective July 1, 2025.
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Sec. 32-765. Targeted brownfield development loan program. (a) The Department of Economic and Community Development shall establish a targeted brownfield development loan program to provide low-interest loans for the eligible costs of brownfield remediation projects to potential brownfield purchasers and current brownfield owners who (1) have no direct or related liability for the conditions of the brownfield, and (2) seek to develop brownfields for purposes of reducing blight or for industrial, commercial, residential or mixed use development.
(b) Notwithstanding subsection (a) of this section, a current owner of a brownfield on which a manufacturing facility is located shall be eligible for a loan under this section, provided neither such owner nor any partner, member, officer, manager, director, shareholder, subsidiary or affiliate of such owner (1) is liable under section 22a-427, 22a-432, 22a-433, 22a-451 or 22a-452 with respect to the property; (2) is otherwise responsible, directly or indirectly, for the discharge, spillage, uncontrolled loss, seepage or filtration of the hazardous substance, material or waste; (3) is a member, officer, manager, director, shareholder, subsidiary, successor of, or affiliated with, directly or indirectly, the person who is otherwise liable under section 22a-427, 22a-432, 22a-433, 22a-451 or 22a-452 with respect to the property; or (4) has been found guilty of knowingly or wilfully violating any environmental law.
(c) An applicant for a loan pursuant to this section shall submit an application to the Commissioner of Economic and Community Development on forms provided by the commissioner and with such information the commissioner deems necessary, including, but not limited to: (1) A description of the proposed project; (2) an explanation of the expected benefits of the project in relation to the purposes of this section; (3) information concerning the financial and technical capacity of the applicant to undertake the proposed project; (4) a project budget; and (5) a description of the condition of the brownfield involved, including the results of any environmental assessment of the brownfield in the possession of or available to the applicant. The commissioner shall provide loans based upon project merit and viability, the economic and community development opportunity, municipal support, contribution to the community's tax base, past experience of the applicant, compliance history and ability to pay. For applications received on and after July 1, 2025, the commissioner may give priority to proposed projects located in federally designated opportunity zones.
(d) If a loan recipient is not subject to section 22a-134a, such recipient shall enter a program for remediation of the property pursuant to either section 22a-133x, 22a-133y, 32-768 or 32-769, as determined by the commissioner, except if the loan funds are used (1) for the abatement of hazardous building materials and such recipient demonstrates to the satisfaction of the Commissioners of Economic and Community Development and Energy and Environmental Protection that such hazardous building materials represent the sole or sole remaining environmental contamination on the property, or (2) for remediation actions that are not site-wide and will not benefit from being in a program for remediation.
(e) Loans made pursuant to this section shall have such terms and conditions and be subject to such eligibility and loan approval criteria as determined by the commissioner. Such loans shall be for a period not to exceed thirty years.
(f) If a loan recipient sells a property subject to a loan granted pursuant to this section before the loan is repaid, the loan shall be payable upon closing of such sale, according to its terms, unless the commissioner agrees otherwise. The commissioner may carry the loan forward as an encumbrance to the purchaser with the same terms and conditions as the original loan.
(g) A loan recipient may be eligible for a loan of not more than six million dollars per year, subject to agency underwriting and reasonable and customary requirements to assure performance. If additional funds are required, the commissioner may recommend that the project be funded through other programs administered by the commissioner.
(h) The commissioner may modify the terms of any loan made pursuant to this section to provide for forgiveness of interest, principal, or both, or delay in repayment of interest, principal, or both, when the commissioner determines such forgiveness or delay is in the best interest of the state from an economic or community development perspective.
(i) The provisions of sections 32-5a and 32-701 shall not apply to loans provided pursuant to this section.
(P.A. 13-308, S. 6; P.A. 14-88, S. 7; P.A. 15-193, S. 2; P.A. 18-85, S. 1; P.A. 19-54, S. 10; P.A. 25-174, S. 69.)
History: P.A. 13-308 effective July 1, 2013; P.A. 14-88 amended Subsec. (h) by deleting “to a municipality or economic development agency” re modification of loan terms and by adding “from an economic or community development perspective” re forgiveness or delay, effective June 3, 2014; P.A. 15-193 amended Subsec. (d) by adding provision re exception to property remediation program if loan recipient used loan funds for the abatement of hazardous building materials, and amended Subsec. (g) by changing maximum loan amount from $2,000,000 per year to $4,000,000 per year and by deleting “for not more than two years,”, effective July 1, 2015; P.A. 18-85 amended Subsec. (e) by increasing maximum loan period from 20 years to 30 years, effective July 1, 2018, and applicable to loans issued on or after July 1, 2018; P.A. 19-54 amended Subsec. (c) to add provision re commissioner to give priority to projects located in federally designated opportunity zones, effective July 1, 2019; P.A. 25-174 amended Subsec. (c) to replace “July 1, 2019” with “July 1, 2025” and “shall” with “may” re prioritization to proposed project in federally designated opportunity zones, amended Subsec. (d) to designate existing provision re hazardous building materials as Subdiv. (1) and add Subdiv. (2) re remediation actions that are not state-wide and will not benefit from being in program for remediation and amended Subsec. (g) to increase loan from not more than $4,000,000 to not more than $6,000,000, effective July 1, 2025.
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