Brownfields Revolving Loan Fund

The Phoenix Brownfields Revolving Loan Fund (BRLF) Program provides financing for remediation of eligible brownfield projects within the Phoenix city limits. The goal of the Phoenix BRLF is to provide funding to help with remediation costs, which can be a significant barrier to redevelopment. The BRLF program provides financing tools to support remediation required for site redevelopment. Currently, the City is offering low interest loans to private industry at a rate of 3%. For nonprofits, grants are available rather than a loan.

The Environmental Protection Agency (EPA) defines a brownfield as a property, where the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Examples include properties that may be abandoned, inactive, or have not operated at their full potential; possible locations cover former industrial sites, gas stations and dry-cleaning establishments. Additionally, funds can be used towards asbestos abatement and lead-based paint remediation.

The City of Phoenix was awarded an EPA Brownfield Revolving Loan Fund grant which provides funding for this program, Local Initiatives Support Corp (LISC) Phoenix serves as the loan manager for the BRLF program.

Are you in possession of a site with potential contamination?

The BRLF program could help support your project. The BRLF program provides funding for cleanup of identified contamination until the site meets the State of Arizona’s regulatory cleanup standards. The site must be admitted into the Arizona Department of Environmental Quality’s (ADEQ’s) Voluntary Remediation Program (VRP) to ensure the cleanup is conducted in accordance with applicable regulations and programmatic requirements. This stipulation excludes asbestos and lead-based paint remediation projects. These projects are instead overseen by a Qualified Environmental Professional (QEP).

Borrower and Subgrantee Eligibility

Borrowers and subgrantees are eligible for funding for remediation activities at a site for which 1) they are currently in possession of, and 2) for which the borrower or subgrantee are not potentially liable under CERCLA § 107. In addition, the borrower or subgrantees may not be affiliated with a potentially liable party for cleanup costs as described in CERCLA §§ 101(40)(H) and 107(q)(1)(A)(ii).

Borrowers or subgrantees must demonstrate that they meet the requirements for one of the following Landowner Liability Protections:

• Bona Fide Prospective Purchaser (BFPP),
• Contiguous Property Owner (CPO), or
• Innocent Landowner (ILO)

Site Eligibility

Sites applying for funding through the BRLF program must be located within the City of Phoenix limits.

BRLF funding cannot be used on the following types of properties:

1. Facilities which are currently listed, or are proposed to be listed, on the National Priorities List (NPL);
2. Facilities subject to unilateral administrative orders, court orders, and administrative orders on consent or judicial consent decree issued to or entered by parties under CERCLA;
3. Facilities that are subject to the jurisdiction, custody, or control of the United States government except for land held in trust by the United States government for an Indian tribe; or
4. A site that is excluded from the definition of a brownfield.

Additional documentation may be requested by the City of Phoenix to determine petroleum site eligibility. Please refer to the BRLF Program Procedures Manual for additional information regarding these types of properties.

Additional Requirements

Further considerations are required prior to receiving funds as the loans or subgrants are funded by the EPA.

• All Appropriate Inquires (AAI) conducted prior to property acquisition,
• Develop and Implement Community Relations Plan (CRP),
• Prepare and submit a Quality Assurance Project Plan (QAPP),
• Endangered Species Act Compliance,
• Natural Historic Preservation Act Compliance in coordination with the State Historic Preservation Office, and
• Ensure David Bacon Act Compliance during remediation

How to Apply for Funding

Brownfields loans and grant awards consist of several phases. The process starts by determining site and borrower eligibility. If you are unsure if you and your site are eligible, please contact the City of Phoenix Office of Environmental Programs to discuss project details.

General BRLF Work Flow

1. Applicant submits all requested documents including All Appropriate Inquires (AAI) materials, redevelopment plans, and financial documents
2. Applicant enters ADEQ VRP program, as applicable (note: can be completed pre or post-program acceptance)
3. Applicant accepted into program; loan or grant is approved or denied
4. Applicant submits required documents (Analysis of Brownfields Cleanup Alternatives, Community Relations Plan, and Quality Assurance Project Plan)
5. Community Involvement
6. Site Cleanup/Remediation under supervision of ADEQ or qualified environmental professional
7. Confirmation sampling
8. Closeout report submitted to the City of Phoenix
9. Loan repayment, as applicable

Note: This is a simplified workflow. A more detailed version of this workflow is available at in the in the Brownfields Revolving Loan Fund Program Guidelines and Procedures Manual