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Witnesses tell Congress CERCLA liability deters private investment; propose tax and statutory fixes including PFAS carve‑outs
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Summary
Lawmakers and witnesses at a House Transportation and Infrastructure subcommittee hearing identified CERCLA liability as a central barrier to brownfield redevelopment and heard proposals to lower investment risk through tax and statutory changes.
Lawmakers and witnesses at the subcommittee hearing identified liability under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) as a central impediment to brownfield redevelopment, and several witnesses urged Congress to consider statutory changes to reduce investment risk.
Why it matters: Multiple witnesses said that the uncertainty and potential for strict, joint-and-several CERCLA liability discourages developers and lenders from investing in contaminated properties, which in turn leaves sites idle and blighted. Witnesses proposed a set of legislative fixes they said would unlock private capital and accelerate cleanups.
“CERCLA liability is no joke,” Chairman Collins said during an opening statement; he warned the committee that possible responsibility under CERCLA can deter redevelopment even when a current owner was not negligent. Michael Goldstein, who has represented local governments and developers, testified: “The private sector wants to do more, but we need more help from Congress.” Goldstein proposed several statutory and tax changes designed to reduce financial uncertainty for developers and lenders.
Goldstein outlined seven proposals offered to the committee. Among them: renew the federal Brownfields tax incentive that lets parties deduct cleanup costs in the year they are spent; create a Brownfields loan‑guarantee program to leverage private capital for bridge financing; raise and expand Low‑Income Housing Tax Credit (LIHTC) incentives for affordable housing built on remediated brownfields; eliminate certain EPA match requirements and expand allowable EPA grant uses to include demolition and environmental insurance; allow EPA Brownfields grants to be available to for‑profit developers of affordable and workforce housing; and increase maximum grant awards to local governments and nonprofits.
On persistent contaminants, Goldstein also urged Congress to consider a targeted CERCLA exemption for PFAS (commonly called PFOS in testimony) where a party has voluntarily signed a state brownfield cleanup agreement and remediated the site under state law. He told members this would provide “immunity from CERCLA cost recovery and contribution claims, a hold on NPL status, immunity from citizen suits, and express immunity from lenders” for qualifying cleanups.
Lenders’ reluctance was described as a practical constraint. Goldstein said even a hint of environmental risk “tends to send conventional lenders fleeing,” and recommended a federal loan‑guarantee vehicle to shorten the financing gap. He also urged continuing and expanding data reporting and oversight so incentives fund high‑performing projects.
No legislative language was adopted at the hearing. Members asked witnesses to provide written details; the hearing record remains open for additional submissions. The proposals discussed would require statutory change to CERCLA and the Internal Revenue Code and would be subject to committee and floor action if pursued.
