Environmental Law

PA Brownfield Program Relies on HSCA Funding

By M. Joel Bolstein

My thanks to Bill Cluck, a fellow environmental lawyer in Harrisburg, PA, for asking the following question about the connection between the Hazardous Sites Cleanup Act (HSCA) Fund and the Act 2 program :

"I keep hearing how HSCA is relevant to brownfields cleanup and redevelopment.  Can you provide information on how HSCA funding relates to brownfield redevelopment?  I always thought Act 2 was our brownfields law?  I know HSCA can fund orphan cleanups, but I never associated that as "brownfields"."

The answer is that PADEP has historically used money taken from the HSCA Fund to pay salaries and benefits for the Central Office staff and regional office Environmental Cleanup Program (ECP) staff that manage and implement the Land Recycling Program.  Yes, the HSCA Fund was created primarily to fund the State's Superfund program.  But when Act 2 was enacted on May 19, 1995, the HSCA Fund was flush with cash and it seemed like a great place to dip into to pay for the Act 2 program.  No one anticipated that the HSCA Fund would some day dry up.  Unfortunately, what was once a very large balance has been drawn down year after year to pay for the operations of the Land Recycling Program, while at the same time the sources of revenue going into the HSCA fund (the Capital Stock and Franchise Tax and fees imposed on hazardous waste) have diminished  --  the tax is being phased out and there is less and less hazardous waste being generated because of successful pollution prevention programs and industries closing down or moving elsewhere.  We are now at the point where the HSCA fund is almost out of money and no additional funding was included in the 2007-2008 budget.   The seriousness of the funding shortfall was confirmed in an email that I received from the ECP program management in Harrisburg:  It read " The Land Recycling Program staff in central office and the Environmental Cleanup Programs - Special Projects Sections staff in the regions are paid out of the HSCA fund. If the HSCA fund runs dry the Land Recycling Program will be completely out of business." 

I've subsequently written letters to the State Senators from my home county -- Bucks County -- asking for their help in finding a permanent source of funding for the HSCA fund.   Here's what I wrote in one such letter:

"Via First Class Mail

The Honorable Charles T. McIlhinney, Jr.

Senate Box 203010

187 Main Capital Building

Harrisburg, PA  17120-3010

Re:      HSCA Funding

Dear Chuck:

            As you know, I served as Deputy Secretary at PADEP under Governor Ridge.  In that capacity, I was part of a team that set up and managed the Commonwealth’s award winning Land Recycling Program.  I have worked on many brownfield redevelopment projects in your District with private developers and in my capacity as environmental solicitor to the Bucks County Redevelopment Authority.  These projects remediate blighted properties, bring in new businesses and homes, and create jobs and economic opportunities.  The Land Recycling Program staff in PADEP’s central office and the ECP staff in the regional offices are paid out of the HSCA fund.

            If the HSCA fund runs out of money, the entire Land Recycling Program will come to a crashing halt.  Everything we have done over the last 12 years to build that into the most successful environmental program in the history of the Commonwealth could be lost as developers, local economic development agencies, lenders and citizens lose confidence in the Commonwealth’s ability to manage the program.  Even this morning, there was an article in The Intelligencer reporting on the fact that PADEP may not be able to do remediation work at a local HSCA site in Doylestown because of limited funding and EPA may be asked to take over that work.

            I urge you to do everything in your power to ensure that the HSCA fund does not run dry and that a funding source is put in place to permanently fund this important work.  Everyone wants more economic development, but you can not have economic development in this Commonwealth without a strong, vibrant, and sustainable Land Recycling Program. " 

Senator McIlhinney did write me back and said that he is working hard to try to secure a permanent funding source for the HSCA Fund.

Getting back to my friend Bill Cluck's question, the answer is that the HSCA Fund is very relevant to brownfield cleanup and redevelopment in Pennsylvania.  As a result of decisions made at the outset of the Act 2 program, the HSCA Fund remains the lifeblood for the ECP staff and the entire brownfield redevelopment program in Pennsylvania.  I urge everyone who has an interest in brownfields remediation -- developers, consultants, attorneys, economic development agencies, lenders, and environmentalists -- to contact their local legislators and ask for their help in finding a permanent funding source for HSCA.    Without it, many of our best projects could be put on hold, and no one wants that to happen.   

Full post as published by PA Brownfields Environmental Law on August 15, 2007 (boomark / email).