The State of California has developed an loan program to investigate and cleanup contaminated or underutilized urban properties. In September 2000, Governor Gray Davis singed the Cleanup Loans and Environmental Assistance to Neighborhoods (CLEAN) Program, which provided $85 million to promote redevelopment of underutilized urban properties.
The first component of the Program are the Investigation Site Contamination Program (ISCP), which provides up to $100,000 in low-interest loans to perform assessments of contaminated property and complete what is known as a Preliminary Endangerment Assessment or PEA. The PEA usually includes the collection of soil and/or ground water samples and a determination of the type and extent of contamination. The PEA will also evaluate the risk of the contamination to the public and environment.
The second component referred to as the CLEAN Program, provides up to $2.5 million for the cleanup and removal of contamination at these properties. The CLEAN loans are used to finance the remediation of the properties, which may include more detailed assessment and feasibility studies as well as the removal of contamination from the property.Both "Brownfields" properties and "Underutilized" properties are eligible for the CLEAN Program. According to the Environmental Protection Agency, a Brownfields property is an abandoned, idled or under-used industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination, urban contaminated site that is no longer in operation. Similar to a Brownfields property, an Underutilized property is one located in an urban area, has had an economic activity performed on the site and is subject of a proposed development project. Additionally, an Underutilized property must either have existing structures that are obsolete, intermittent economic activity or is adjacent to a Brownfield. According to the State of California, if a property is determined not to be economically feasible to develop, up to 75% of the ISCP loan may be waived.The Stockton, Modesto and Lodi areas are considered to be "urbanized" areas under the CLEAN Program. Therefore, properties in these areas qualify for the Program. There are currently 38 urbanized areas in California. Other Central Valley areas considered to be urbanized include Sacramento, Fresno, Merced, Davis, Redding and Visalia.Historically, Brownfields sites have been the subject of many government-backed programs, grants and redevelopment opportunities. However, Underutilized properties have been neglected, with the burden of cleanup left solely to the property owners. Many times these "environmentally encumbered" properties are left to be an eyesore in communities because owners lack the funding or inability to obtain financing for a cleanup. The CLEAN Program could provide an important mechanism to address properties that do not meet the Brownfields criteria. Additionally, this program could help promote infill development of urban areas and preserve inner-city neighborhoods that would otherwise be subject of blight.
Current property owners, prospective property owners, developers and redevelopment agencies would all be eligible for the CLEAN Program. The program is administered by the Department of Toxic Substances Control (DTSC) and, as part of the requirements for the loan, applicants must enter into an agreement with the DTSC to provide environmental oversight. Costs for the oversight can be paid from the loan.
Individuals interested in obtaining information regarding the CLEAN Program or other Brownfields information can contact the DTSC in Sacramento or visit the DTSC website at www.dtsc.ca.gov.
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