Substitute Senate Bill No. 1042
Public Act No. 23-57
AN ACT AUTHORIZING THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT TO PROVIDE CAPACITY BUILDING
GRANTS TO CONNECTICUT BROWNFIELD LAND BANKS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 32-763 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2023):
(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) Grants may be provided to municipalities, Connecticut
brownfield land banks and economic development agencies for the
eligible costs of brownfield remediation projects, brownfield assessment
projects and reasonable administrative expenses not to exceed five per
cent of any grant awarded. A grant awarded under this [section]
subsection shall not exceed four million dollars.
[(b)] (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, Substitute Senate Bill No. 1042
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but not limited to: [(1)] (A) A description of the proposed project; [(2)]
(B) an explanation of the expected benefits of the project in relation to
the purposes of this section; [(3)] (C) information concerning the
financial and technical capacity of the applicant to undertake the
proposed project; [(4)] (D) a project budget; and [(5)] (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.
[(c)] (3) The commissioner may approve, reject or modify any
application properly submitted in accordance with the provisions of this
[section] 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: [(1)] (A) The
availability of funds; [(2)] (B) the estimated costs of assessing and
remediating the brownfield, if known; [(3)] (C) the relative economic
condition of the municipality in which the brownfield is located; [(4)]
(D) the relative need of the project for financial assistance; [(5)] (E) the
degree to which a grant under this [section] subsection is necessary to
induce the applicant to undertake the project; [(6)] (F) the public health
and environmental benefits of the project; [(7)] (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; [(8)] (H) the time frame in which the
contamination occurred; [(9)] (I) the relationship of the applicant to the
person or entity that caused the contamination; [(10)] (J) the length of
time the brownfield has been abandoned; [(11)] (K) the taxes owed and
the projected revenues that may be restored to the community; [(12)] (L)
the relative need for assessment of the brownfield within the
municipality or region; [(13)] (M) whether the brownfield is located in a Substitute Senate Bill No. 1042
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federally designated opportunity zone; and [(14)] (N) such other criteria
as the commissioner may establish consistent with the purposes of this
[section] subsection.
[(d)] (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 municipality may submit
more than one application in response to a request for applications. On
and after July 1, 2019, the commissioner shall give priority to grant
applications for brownfields located in federally designated
opportunity zones.
[(e)] (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 [(1)] (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, [(2)] (B) solely
for assessment of the brownfield, or [(3)] (C) as provided in subdivision
(7) of this subsection. [(g) of this section.]
[(f)] (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 [subsections (c)
and (d) of this section] subdivisions (3) and (4) of this subsection, may
award an additional grant to such municipality, Connecticut brownfield
land bank or economic development agency to enable the completion of Substitute Senate Bill No. 1042
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a brownfield remediation or assessment project, provided such project
is identified as a priority by said commissioners and such additional
grant funds [(1)] (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, [(b) of this section, (2)] (B) do not exceed fifty per
cent of the original grant, and [(3)] (C) will not result in more than four
million dollars in total grants being awarded for a single brownfield
remediation or assessment project.
[(g)] (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. Substitute Senate Bill No. 1042
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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.
[(h)] (d) The provisions of sections 32-5a and 32-701 shall not apply
to grants provided pursuant to this section.
Sec. 2. Subsections (b) to (d), inclusive, of section 32-762 of the general
statutes are repealed and the following is substituted in lieu thereof
(Effective October 1, 2023):
(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, as
amended by this act, 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, as
amended by this act, or section 32-765, (2) to provide financial assistance
to parcel owners required to perform mitigation actions pursuant to Substitute Senate Bill No. 1042
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section 22a-6u, and (3) for administrative costs not to exceed five per
cent of such funds.
Sec. 3. Section 32-764 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2023):
(a) Any recipient of a grant pursuant to subsection (b) of section 32-
763, as amended by this act, or subsection (c) of section 32-9cc of the
general statutes, revision of 1958, revised to January 1, 2013, shall not be
liable under section 22a-427, 22a-432, 22a-433, 22a-451 or 22a-452 for
conditions pre-existing or existing on the brownfield property as of the
date of acquisition or control, provided such recipient (1) did not
establish, create, cause or contribute to the discharge, spillage,
uncontrolled loss, seepage or filtration of such hazardous substance,
material, waste or pollution that is subject to remediation under section
22a-133k and funded by the Office of Brownfield Remediation and
Development or the Department of Economic and Community
Development; (2) does not exacerbate the conditions; and (3) complies
with reporting of significant environmental hazard requirements in
section 22a-6u. To the extent that any conditions are exacerbated, such
recipient shall only be responsible for responding to contamination
exacerbated by its negligent or reckless activities.
(b) Upon remediation (1) as approved by the Department of Energy
and Environmental Protection, or (2) in accordance with section 22a-
133x, 22a-134a, 32-768 or 32-769 of a brownfield property by a recipient
of a grant pursuant to subsection (b) of section 32-763, as amended by
this act, such recipient may transfer the property to any person,
provided such person is not otherwise liable under section 22a-427, 22a-
432, 22a-433, 22a-451 or 22a-452 with respect to the property. Any
person who acquires title pursuant to this section shall not be liable
under section 22a-427, 22a-432, 22a-433, 22a-451 or 22a-452 with respect
to preexisting conditions on the property, provided such person (A)
does not cause or contribute to the discharge, spillage, uncontrolled loss, Substitute Senate Bill No. 1042
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seepage or filtration of such hazardous substance, material or waste,
and (B) such person is not a member, officer, manager, director,
shareholder, subsidiary, successor of, related to, 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. The Commissioner of Energy and Environmental Protection
shall provide such person with a covenant not to sue pursuant to section
22a-133aa and shall not require the prospective purchaser or owner to
pay a fee in exchange for such covenant.
(c) No person shall acquire title to or hold, possess or maintain any
interest in a property that has been remediated with grant funds
awarded pursuant to subsection (b) of section 32-763, as amended by
this act, if such person (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 such hazardous substance,
material or waste, (3) is a member, officer, manager, director,
shareholder, subsidiary, successor of, related to, 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) is or was an owner, operator or tenant of the property.
If such person elects to acquire title to or hold, possess or maintain any
interest in the property, that person shall reimburse the state of
Connecticut, the municipality and the economic development agency
for any and all costs expended to perform the investigation and
remediation of the property, plus interest at a rate of eighteen per cent.
(d) Notwithstanding section 22a-134a, a recipient of a grant pursuant
to subsection (b) of section 32-763, as amended by this act, may acquire
and convey its interest in the property without such recipient or the
subsequent purchaser incurring liability, including any such liability
incurred pursuant to section 22a-134a, provided the property (1) was Substitute Senate Bill No. 1042
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remediated pursuant to section 22a-133x, 22a-133y, 32-768 or 32-769 or
pursuant to an order issued by the Commissioner of Energy and
Environmental Protection and such remediation was (A) performed in
accordance with the standards adopted pursuant to section 22a-133k, as
determined by said commissioner, or (B) if authorized by said
commissioner, verified by a licensed environmental professional unless
such verification has been rejected by said commissioner subsequent to
an audit conducted by said commissioner and provided the subsequent
purchaser has no direct or related liability for the site conditions; and (2)
is not an establishment, as defined in section 22a-134, based on business
operations occurring after such recipient remediated the property.
Sec. 4. Subsection (a) of section 32-767 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2023):
(a) Whenever funds are used pursuant to subsection (b) of section 32-
763, as amended by this act, or section 32-765, for purposes of
environmental assessments or remediation of a brownfield, the
Commissioner of Energy and Environmental Protection may seek
reimbursement of the costs and expenses incurred by requesting the
Attorney General to bring a civil action to recover such costs and
expenses from any party responsible for such pollution, provided no
such action shall be brought separately from any action to recover costs
and expenses incurred by the Comm issioner of Energy and
Environmental Protection in pursuing action to contain, remove or
mitigate any pollution on such site. The costs and expenses recovered in
an action brought pursuant to this section may include, but shall not be
limited to: (1) The actual cost of identifying, evaluating, planning for
and undertaking the remediation of the site; (2) any administrative costs
not exceeding ten per cent of the actual costs; (3) the costs of recovering
the reimbursement; and (4) interest on the actual costs at a rate of ten
per cent per year from the date such expenses were paid. Substitute Senate Bill No. 1042
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Sec. 5. Section 32-766 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2023):
The Commissioner of Economic and Community Development shall
establish the terms and conditions of any financial assistance provided
pursuant to section 32-763, as amended by this act, or section 32-765.
The commissioner may make any stipulation in connection with an offer
of financial assistance the commissioner deems necessary to implement
the policies and purposes of subsection (b) of section 32-763, as amended
by this act, or section 32-765, including, but not limited to, (1) a
requirement of assurance from a grant or loan recipient that such
recipient will discharge its obligations in connection with the project, (2)
a requirement that a grant or loan recipient provide the department with
appropriate security for such financial assistance, including, but not
limited to, a letter of credit, a lien on real property or a security interest
in goods, equipment, inventory or other property of any kind, and (3) a
requirement that a grant or loan recipient reimburse the state for such
financial assistance in the event that it receives funds for remediation
from other sources.