Industry, Environmentalists Praise Passage of Brownfields Act

WASHINTON, DC-Before recessing for the year Congress approved an annual $250 million package through Fiscal Year 2006 for the conservation of the approximately 450,000 brownfields — abandoned commercial and industrial properties — in areas throughout the nation. After being amended in the US House of Representatives, The Brownfields Revitalization and Environmental Restoration Act has unanimously passed through the US Senate without amendment.

The funds will allow local governments to clean up these contaminated sites, and it will also protect innocent developers from liability on properties that were polluted prior to purchase. Environmental groups, public land organizations and realtors alike praise Congressional leaders for passing what is considered landmark legislation. “In passing the [act],” explains The Trust for Public Land Senior Vice President Alan Front, “Congress passed the only major piece of environmental legislation this year.” National Association of Realtor President Martin Edwards Jr. adds, “This much-needed legislation will help the real estate industry effectively clean up and redevelop hundreds of thousands of brownfield sites. Cleaning-up hazardous waste sites and redeveloping them for commercial and residential use makes good sense for the environment, good sense for the economy and good sense for communities.”

Meanwhile, the US Senate has left commercial insurance policy holders in the lurch for the dawn of 2002, its session without passing terror insurance legislation. Without a federal backstop for insurers against future terrorism claims, those companies seeking to establish or renew policies with terrorism coverage in the new year will likely be subjected to enormous rate hikes, or no access to terrorism coverage at all. The effects on commercial property owners, lenders and contractors could be disastrous for the industry, as well as for the nation’s economy.