1. BROWNFIELDS 2020 The Future of Brownfields Revitalization September 21, 2004 Timothy Fields, Jr. Vice President, D.C. Operations Tetra Tech EM Inc. 1881 Campus Commons Drive, Suite 200 Reston, VA 20191 Phone:703-390-0648 Fax:703-391-5876 E-Mail:tim.fields@ttemi.com

2. 2 Outline of Presentation Past and Present of Brownfields Revitalization Private Sector Initiatives in Brownfields Revitalization Movement Toward Integrated Brownfields Revitalization Future Trends in Brownfields Revitalization

3. 3 The Brownfields Site Universe 6,400 RCRA Sites 1,700 High Priority RCRA Corrective Action Sites 450,000 – 1 million Brownfields 100,000-200,000 LUSTs (abandoned) USTs 1,400 NPL Sites 40,000 Superfund Inventory Sites

4. 4 Historical Synopsis of National Focus on Brownfields 1993 – First Brownfields Assessment Pilot in Cleveland, Ohio June 1994 – U.S. Conference of Mayors Meeting in Portland, Oregon November 1994 – 2-day EPA Senior Managers Meeting in Cleveland, Ohio January 1995 – Announcement of EPA Brownfields Action Agenda 1996 – National Brownfields Partnership (More than 20 Federal Agencies)

5. 5 Historical Synopsis of National Focus on Brownfields (continued) 1996-1998 – 28 Brownfields Showcase Communities Designated March 1999 – Superfund Redevelopment Initiative March 2000 – Resource Conservation and Recovery Act (RCRA) Brownfields Prevention Initiative November 2000 – Underground Storage Tanks (UST) Brownfields Initiative January 2002 – Signing of Brownfields Revitalization Act by President Bush April 2003 – Announcement of EPA Land Revitalization Agenda

6. 6 The goals of the Brownfields program are to –assess existing contaminated sites –prevent further contamination –safely clean-up sites –design plans to reuse sites –provide job training for affected residents Since 1995, EPA has provided nearly $700M in Brownfields funding to States, tribes, and local governments, with funding for each grantee ranging between $200K and $1M. More than 700 grants have been awarded.

7. 7 EPA Brownfields Program Funding 0 50 100 150 200 250 FY 1996FY 1997FY 1998FY 1999FY 2000FY 2001FY 2002FY 2003 In Millions 8.3 36.7 86.4 87.2 87.5 90 98 167 170 210 FY 2004 FY 2005

8. 8 Budget As a result of funding to date, more than $5.1B in cleanup and redevelopment monies have been leveraged, and more than 25,000 jobs have been created These resources have been used to turn abandoned industrial properties into: –thriving economic centers –useful recreational areas –beneficial open spaces (e.g., improved wildlife habitats, wetlands)

9. 9 Beyond “Brownfields” Superfund toxic waste cleanup program –1,400 sites on National Priorities List –$1.3B annual EPA budget –A major new EPA priority is redevelopment of Superfund sites (about 70 pilot sites underway around the U.S.) Resource Conservation and Recovery Act (RCRA) hazardous waste facilities –$60M annual budget –Major priority is cleanup and reuse of RCRA corrective action sites (9 RCRA Brownfields pilot projects underway) Underground Storage Tanks (UST) corrective action –$72M EPA annual budget –>$1.0B annual State budget –A major new focus has been the reuse of UST sites, i.e., the –USTfields initiative (50 pilot projects underway)

10. 10 Brownfields Opportunities – EPA’s Land Revitalization Initiative Announced in April 2003 One of the top EPA priorities Goal of the initiative is to make the revitalization of contaminated properties a major new environmental ethic Applies to Superfund, Brownfields, RCRA Corrective Actions, UST sites, and Federal facility sites Outlines more than 60 specific ways to help integrate land reuse into EPA’s cleanup programs

11. 11 New Brownfields Law – Brownfields Revitalization Act Signed by President Bush on 1/11/02 Codifies into Federal law much of the existing Brownfields program As a result of this new law –$50M annually will be provided to States to support voluntary cleanup programs –More than $120M annually will be provided to States, tribes, and local governments for assessment, cleanup, and job training activities –Liability protection is provided for prospective purchasers, contiguous property owners, and innocent landowners

12. 12 Private Sector Roles in this Market Conducting site-specific environmental assessments Providing on-site and technical support to Brownfields cleanup efforts Providing mission support to State voluntary cleanup programs Conducting risk assessments and due diligence assessments Providing technical/scientific support to various Federal agencies Grant and permit application preparation Contaminated properties reuse planning Community outreach and education

13. 13 Brownfields Clients EPA Regions Other Federal agencies who make up the Federal Brownfields Partnership State, tribal, and local government agencies that would receive Brownfields grant funding Businesses and industries who own or plan to acquire or sell Brownfields properties Developers Insurance companies Law firms

14. 14 Examples of Tetra Tech Brownfields Projects Support of the EPA Headquarters Brownfields Technology Support Center Support to all EPA Regions (e.g., Targeted Brownfields Assessments) Support to State voluntary cleanup programs (e.g., New Mexico, Colorado, Georgia, Missouri, Ohio, Nebraska, Hawaii) Provision of technical/scientific support to various Federal agencies (e.g., GSA, DoD) Provision of on-site and technical support to local government Brownfields assessment and cleanup efforts (e.g., Chicago; Houston; Kansas City, MO; St. Paul, MN) Private Sector Customers that own or plan to redevelop Brownfields properties (e.g., Bank of America, JC Penney)

15. 15 Examples of Tetra Tech Military Cleanup and Restoration Projects Provided support to the Navy in California for transfer of properties at: –Mare Island Naval Shipyard –Port of Stockton –Port of Oakland –Alameda Naval Air Station –Hunters Point –Treasure Island Services provided include the following: –Environmental assessment support –Preparation of cleanup agreements –Implementation of institutional controls –Compliance work for cleanup of PCBs, asbestos, and lead-based paint

16. 16 Movement Toward Integrated Brownfields Revitalization Initiation by EPA of eight Superfield pilot projects involving the cleanup of contaminated sediments along major river bodies Brownfields project in Baltimore, Maryland, where the National Aquarium’s new Center for Aquatic Life and Conservation will be built on a Brownfield Brownfields project in Pittsburgh, Pennsylvania, where a 238-acre industrial tract will be used to build more than 700 new energy-efficient homes nestled alongside a rehabilitated habitat area In Hammond, Indiana, as part of a project to restore the George Lake watershed, the city stabilized a lakeshore ecosystem desecrated with slag from a former steel mill slag dump. Other redevelopment on this property will include an 18-hole golf course.

17. 17 Examples of Integrated Revitalization Activities In Oklahoma City, Oklahoma, an EPA targeted Brownfields assessment sparked the planning for a Native American museum and cultural center featuring green design elements In Astoria, Oregon, the city’s abandoned mill sites were assessed and cleaned up and transformed into thriving waterfront properties. Two properties on the site, located adjacent to a downtown historic area, are being developed into a public promenade, shops, and residential housing

18. 18 Examples of Tetra Tech Integrated Revitalization Projects In Chicago, Illinois, Tetra Tech prepared a ecosystem restoration report and preliminary design for the long-term rehabilitation and ecological restoration of Indian Ridge Marsh, a 150-acre marsh adjacent to a steel mill and abandoned landfills. –This project combines brownfields redevelopment of industrial sites and ecological rehabitation of adjacent natural areas. In Kansas City, Kansas, and Missouri, Tetra Tech developed a package of sustainable stormwater best management practices to alleviate subsequent flooding and allow for sustainable development of the area, including a number of brownfields sites. A key component of the effort is a system of wetlands for natural stormwater retention and detention to address the area’s flooding problems and water quality issues in an area with associated brownfields redevelopment.

19. 19 Future Trends – The Federal Role The demand for Federal financial assistance will grow even more in the future –E.g., in Fiscal Year 2003, States, Local Governments, and Tribes submitted 1,300 applications for Brownfields grants. Only 214 awards (about 16%) were made by EPA. A second, new comprehensive Federal Brownfields law will be enacted by 2010 The National Brownfields Conference will become an International Conference, and have more than 10,000 attendees by 2010, and 15,000 attendees by 2015

20. 20 Future Trends – The Federal Role (continued) The next rounds of military base closures (e.g., 2005) will result in more effective cleanup, transfer, and reuse of DoD properties. Other Federal agencies (beyond EPA) will provide adequate funding to support State, Local, and Tribal government Brownfields Revitalization activities. Brownfields revitalization support efforts will be expanded by the more than 20 Federal agencies composing the National Brownfields Partnership. International Brownfields revitalization efforts will continue to grow –Already, significant brownfields revitalization is underway in countries such as Germany, United Kingdom, Netherlands, Canada. –More than a dozen countries are represented at this Brownfields 2004 Conference.

21. 21 Future Trends – The Federal Role (continued) Pressure will grow in the future to document better measures of performance for the funds invested in brownfields revitalization, e.g., public health and environmental benefits, economic benefits, and quality of life benefits. Brownfields revitalization will continue to be an issue with tremendous bipartisan support. This political support by the Federal executive and legislative branches will be critical to the support for brownfields initiatives over the next 10 to 15 years. Innovative reforms to address brownfields issues will be implemented, e.g., TRIAD approach to site assessment, and land use controls such as environmental covenants and site-specific trusts.

22. 22 Future Trends – The Community Role Public health and environmental officials and property owners/developers will need to be prepared to ensure nearby residents that health and environmental issues have been addressed as more properties and land are dedicated to Brownfields revitalization Neighboring Community Residents will continue to receive job training and become a growing portion of the Brownfields Restoration Industry Workforce

23. 23 Future Trends – The Community Role (continued) Low income and people of color communities will continue to be major beneficiaries of this growing Brownfields restoration industry –>50% of Brownfields grants to date have been awarded to localities to address concerns of low income and people of color communities Community support for Brownfields revitalization will increase in the future as more Brownfields success stories are documented

24. 24 Future Trends – The Private Sector Role The Brownfield Restoration industry will continue to create new job opportunities for many Americans, and spark community revitalization efforts The Brownfields Restoration industry will continue to grow as a major market force in the U.S. and around the world The Brownfields Restoration industry will continue to receive honor and recognition for outstanding achievements (e.g., Phoenix Awards)

25. 25 Future Trends – The Private Sector Role (continued) Environmental insurance, used to insure brownfields cleanup and redevelopment, will expand –The types of environmental insurance available (e.g., property transfer, cleanup cost cap, and owner- controlled) will increase in number Much more brownfields revitalization will occur in the future without government involvement

26. 26 Future Trends – The State and Local Role States will continue to need Federal financial assistance to support State voluntary cleanup programs. Even more of the responsibility for brownfields assessment, cleanup, and reuse oversight will shift from the Federal to State and local levels. Many States and some local jurisdictions will enact new brownfields legislation over the next decade to better facilitate brownfields revitalization. Brownfields revitalization will focus particularly on certain types of properties, e.g., ports and waterfronts, railyards, and closing military bases.

27. 27 Emergence of Integrated Revitalization There will be a continued shift of brownfields revitalization activities from a property-by-property to an area-wide approach in the future. Integrated brownfields revitalization will become the norm, rather than the exception –Is being integrated more frequently with other industry sector revitalization, e.g., with ecosystem restoration We all need to recognize this trend, and use it to our advantage to further brownfields revitalization