New York State Bar Association Endorses Amendment and Extension of State Brownfield Cleanup Act
The proposed bill would accomplish a number of important goals, including the following:
- Extend, from December 31, 2022 to December 31, 2032, the deadline for sites to be accepted into the Brownfield Cleanup Program (BCP) and qualify for tax credits. Additional time would also be provided for sites to obtain their Certificates of Completion (COCs), claim site preparation tax credits, and obtain tangible property credits after issuance of COCs.
- Expand the ability for sites in Potential Environmental Justice Areas and Brownfield Opportunity Areas to qualify for enhanced tax credits.
- Increase the incentives for renewable energy projects on BCP sites.
- Expand the effectiveness of the BCP in addressing soil vapor issues, including clarification of the types of soil vapor-related expenditures that qualify for tax credits.
- Authorize application fees for the BCP in order to provide dedicated funding for administering the Program to the New York State Department of Environmental Conservation (NYSDEC) and New York State Department of Health.
- Make a number of technical amendments that will improve efficiency in implementation of the Program.
Links to a copy of the proposed bill, a section-by-section analysis, and an explanatory report in support provided by the Brownfield Working Group of the NYSBA’s Environmental & Energy Law Section are included in this blog. The proposed legislation was drafted by the Brownfield Working Group, based on extensive discussions with NYSDEC, executive branch, and Assembly.
The deadline for sites to enter the BCP and obtain tax credits expires in December 2022. Accordingly, the Governor and State Legislature are expected to consider extending and amending the Brownfield Cleanup Act during the 2022 legislative session. The NYSBA’s proposed bill will certainly figure in those discussions.
Please feel free to contact us if you would like more information about, or have comments on, this legislation.