The U.S. Environmental Protection Agency (EPA) recently awarded three brownfield grants to Kentucky totaling $1.9 million to fund the assessment and cleanup of properties with environmental problems. One of the grants was provided to the Kentucky Brownfield Redevelopment Program.
As a result of this $850,000 award, the Kentucky Department for Environmental Protection (DEP) will have funding available for the first time to establish a brownfield redevelopment revolving loan fund.
The fund will provide low-interest loans and sub-grants for cleanup activities on brownfield sites in communities across Kentucky. When loans are repaid, the loan amount will be returned to the fund and loaned to other borrowers, providing an ongoing source of capital for redevelopment within the state. The agency is currently developing procedures necessary to implement the program and hopes to begin accepting applications for funding in 2013.
This is the second significant event this year for the brownfield program, the first being the passage of House Bill 465. The bill clarifies legislation passed in 2005 to provide environmental liability protection to bona fide prospective purchasers of brownfields and address liability concerns related to petroleum releases.