Ind. Code § 5-1.2-12-1 Request
Sec. 1. At the request of the department of environmental management, the authority shall carry out the program established under this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code ch. 5-1.2-12
Ind. Code ch. 5-1.2-12
in effectInd. Code § 5-1.2-12-2 Indiana brownfields program; establishment; purposes
Sec. 2. The Indiana brownfields program is established to assist in the remediation of brownfields to encourage the rehabilitation, redevelopment, and reuse of real property by providing grants, loans, forgivable loans, awards of professional services, or other financial assistance to or for the benefit of political subdivisions to conduct any of the following activities:
(1) Identification and acquisition of brownfields within a political subdivision as suitable candidates for redevelopment.
(2) Environmental assessment of identified brownfields, including assessment of petroleum and hazardous substances contamination, and other activities necessary or convenient to complete the environmental assessments.
(3) Remediation activities conducted on brownfields, including:
(A) remediation of petroleum and hazardous substances contamination; and
(B) other activities necessary or convenient to complete remediation activities conducted on brownfields, including clearance of real property.
(4) Other activities in conjunction with assessment and remediation activities necessary or convenient to prepare a brownfield for redevelopment.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-3 Indiana brownfields fund
Sec. 3. (a) The Indiana brownfields fund is established to provide money for grants, loans, and other financial assistance to or for the benefit of political subdivisions under this chapter. The authority shall administer, hold, and manage the Indiana brownfields fund.
(b) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(c) Expenses of administering the Indiana brownfields fund shall be paid from money in the Indiana brownfields fund.
(d) The Indiana brownfields fund consists of the following:
(1) Appropriations made by the general assembly.
(2) Grants and gifts intended for deposit in the Indiana brownfields fund.
(3) Repayments of loans and other financial assistance from the Indiana brownfields fund, including premiums, interest, and penalties.
(4) Proceeds from the sale of loans and other financial assistance under section 8 of this chapter.
(5) Interest, premiums, gains, or other earnings on the Indiana brownfields fund.
(6) Money transferred from the hazardous substances response trust fund under IC 13-25-4-1(a)(9).
(7) Fees collected under section 6 of this chapter.
(8) Money transferred from the petroleum storage tank excess liability trust fund under IC 13-23-7 for the purpose of environmental assessment and remediation on a property containing at least one (1) underground storage tank or aboveground storage tank.
(9) Money transferred from the petroleum trust fund under IC 13-23-12-4(1) for the purpose of corrective actions that involve releases of regulated substances from underground storage tanks or aboveground storage tanks and are ineligible to receive funds from the petroleum storage tank excess liability trust fund under IC 13-23-7.
(e) The authority shall invest the money in the Indiana brownfields fund not currently needed to meet the obligations of the Indiana brownfields fund in accordance with an investment policy adopted by the authority. Interest, premiums, gains, or other earnings from the investments shall be credited to and deposited in the Indiana brownfields fund.
(f) As an alternative to subsection (e), the authority may invest or cause to be invested all or a part of the Indiana brownfields fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may allow disbursements by the trustee to the authority, a participant, or any other person as provided in the trust agreement or indenture.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.24; P.L.176-2023, SEC.2.
Ind. Code § 5-1.2-12-4 Duties and powers
Sec. 4. (a) The authority shall do the following under this chapter:
(1) Be responsible for the management of all aspects of the Indiana brownfields program.
(2) Prepare and provide program information.
(3) Negotiate the negotiable aspects of each financial assistance agreement.
(4) Sign each financial assistance agreement.
(5) Review each proposed project and financial assistance agreement to determine if the project meets the credit, economic, or fiscal criteria established by guidelines of the authority.
(6) Periodically inspect or cause to be inspected projects to determine compliance with this chapter.
(7) Conduct or cause to be conducted an evaluation concerning the financial ability of a private individual or entity, nonprofit entity, or political subdivision to:
(A) pay a loan or other financial assistance and other obligations evidencing loans or other financial assistance, if required to be paid; and
(B) otherwise comply with terms of the financial assistance agreement.
(8) Evaluate or cause to be evaluated the technical aspects of the private individual or entity, nonprofit entity, or political subdivision's:
(A) environmental assessment of potential brownfield properties;
(B) proposed remediation; and
(C) remediation activities conducted on brownfield properties.
(9) Inspect or cause to be inspected remediation activities conducted under this chapter.
(10) Act as a liaison to the United States Environmental Protection Agency regarding the Indiana brownfields program.
(11) Be a point of contact for private entities, nonprofit entities, and political subdivisions concerning questions about the Indiana brownfields program.
(12) Enter into memoranda of understanding, as necessary, with the department of environmental management and the budget agency concerning the administration and management of the Indiana brownfields fund and the Indiana brownfields program.
(b) The authority may do the following under this chapter:
(1) Undertake activities to make private environmental insurance products available to encourage and facilitate the cleanup and redevelopment of brownfield properties.
(2) Enter into agreements with private entities, nonprofit entities, and political subdivisions to manage any of the following conducted on brownfield properties:
(A) Environmental assessment activities.
(B) Environmental remediation activities.
(C) Demolition and clearance activities.
(c) The authority may:
(1) negotiate with;
(2) select; and
(3) contract with;
one (1) or more insurers to provide insurance products as described in subsection (b)(1).
(d) The authority may:
(1) negotiate with;
(2) select; and
(3) contract with;
one (1) or more environmental consultants to undertake the activities described in subsection (b)(2) for the benefit of private entities, nonprofit entities, and political subdivisions.
(e) Notwithstanding IC 13-23, IC 13-24-1, and IC 13-25-4, the authority is not liable for any contamination addressed by the authority under an agreement under subsection (b)(2) unless existing contamination on the brownfield is exacerbated due to gross negligence or intentional misconduct by the authority.
(f) For purposes of subsection (e), reckless, willful, or wanton misconduct constitutes gross negligence.
(g) The authority is entitled to the same governmental immunity afforded a political subdivision under IC 34-13-3-3(a)(22) for any act taken to investigate or remediate hazardous substances, petroleum, or other pollutants associated with a brownfield under an agreement under subsection (b)(2).
(h) This chapter does not require the authority to provide a loan or other financial assistance to any private individual or entity, nonprofit entity, or political subdivision to the extent the authority determines that providing the loan or other financial assistance is not in the best interests of the Indiana brownfields program and the authority.
As added by P.L.189-2018, SEC.25. Amended by P.L.166-2021, SEC.1.
Ind. Code § 5-1.2-12-5 Additional powers
Sec. 5. The authority may do the following:
(1) Employ:
(A) fiscal consultants;
(B) environmental consultants;
(C) engineers;
(D) bond counsel;
(E) other special counsel;
(F) accountants; and
(G) any other consultants, employees, and agents;
that the authority considers necessary to carry out the purposes of this chapter.
(2) Fix and pay the compensation of persons employed under subdivision (1) from money available in the Indiana brownfields fund or otherwise made available for the Indiana brownfields program.
(3) Provide services to a private individual or entity, nonprofit entity, or political subdivision in connection with a loan or other financial assistance, including advisory and other services.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-6 Fees
Sec. 6. (a) The authority may provide services to a person (as defined in IC 13-11-2-158(a)) in connection with financial assistance, technical assistance, and liability clarification, and may assess and collect a fee for:
(1) services provided to offset the costs of providing the services; and
(2) costs and services incurred in the review or consideration of an application for a proposed loan or other financial assistance to or for the benefit of a political subdivision under this chapter, regardless of whether the application is approved or rejected.
(b) A political subdivision may pay fees charged under this section.
(c) The authority shall adopt guidelines for the assessment and collection of fees under this section.
(d) Fees collected under this section shall be deposited in the Indiana brownfields fund.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-7 Priority ranking system
Sec. 7. The authority shall use a priority ranking system in making loans and providing other financial assistance under this chapter based on the following:
(1) Socioeconomic distress in an area, as determined by the poverty level and unemployment rate in the area.
(2) The technical evaluation under section 4(a)(8)(A), 4(a)(8)(B), and 4(a)(8)(C) of this chapter.
(3) Other factors determined by the authority, including the following:
(A) The number and quality of jobs that would be generated by a project.
(B) Housing, recreational, and educational needs of communities.
(C) Any other factors the authority determines will assist in the implementation of this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-8 Loans or other financial assistance; uses; interest rates; required submissions; sales; pledges
Sec. 8. (a) A loan or other financial assistance must be used for at least one (1) of the purposes under section 2 of this chapter and may be used for any of the following purposes:
(1) To:
(A) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the Indiana brownfields fund (including financial institutions) for a purpose allowed by this chapter; or
(B) provide interest subsidies.
(2) To pay financing charges, including interest on the loan or other financial assistance during remediation and for a reasonable period after the completion of remediation.
(3) To pay consultant, advisory, and legal fees, and any other costs or expenses resulting from:
(A) the assessment, planning, or remediation of a brownfield; or
(B) the loan or other financial assistance.
(b) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan made under this chapter, including parameters for establishing the amount of interest subsidies.
(c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Environmental, water quality, and health protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including the Indiana brownfields program's cost of funds and whether the financial assistance provided to or for the benefit of a particular political subdivision is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than one (1) interest rate may be established and used for loans or other financial assistance to or for the benefit of different political subdivisions or for different loans or other financial assistance to or for the benefit of the same political subdivision.
(d) Before a private individual or entity, nonprofit entity, or political subdivision may receive a loan or other financial assistance, including grants, from the Indiana brownfields fund, the private individual or entity, nonprofit entity, or political subdivision must submit the following:
(1) Documentation of community and neighborhood comment concerning the use of a brownfield on which remediation activities will be undertaken after remediation activities are completed.
(2) A plan for repayment of the loan or other financial assistance, if applicable.
(3) A summary of the environmental objectives of the proposed project.
(e) A private individual or entity, nonprofit entity, or political subdivision that receives a loan or other financial assistance from the Indiana brownfields fund shall enter into a financial assistance agreement. A financial assistance agreement related to the Indiana brownfields program is a valid, binding, and enforceable agreement of the private individual or entity, nonprofit entity, or political subdivision.
(f) The authority may sell or assign:
(1) loans or evidence of other financial assistance; and
(2) other obligations of the private individuals or entities, nonprofit entities, or political subdivisions evidencing the loans or other financial assistance from the Indiana brownfields fund;
at any price and on terms acceptable to the authority. Proceeds of sales or assignments under this subsection shall be deposited in the Indiana brownfields fund. A sale or an assignment under this subsection does not create a liability or an indebtedness of the state or the authority except, in the case of the authority, strictly in accordance with the sale or assignment terms.
(g) The authority may pledge loans or evidence of other financial assistance and other obligations of private individuals or entities, nonprofit entities, or political subdivisions evidencing the loans or other financial assistance from the Indiana brownfields fund to secure other loans or financial assistance from the Indiana brownfields fund to or for the benefit of political subdivisions. The terms of a pledge under this subsection must be approved by the budget agency. Notwithstanding any other law, a pledge of property made by the authority and approved by the budget agency under this subsection is binding from the time the pledge is made. Revenues, other money, or other property pledged and then received are immediately subject to the lien of the pledge without any further act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, a trustee, or the Indiana brownfields fund, regardless of whether the parties have notice of a lien. A resolution, an indenture, or other instrument by which a pledge is created is not required to be filed or recorded, except in the records of the authority. An action taken to enforce a pledge under this subsection and to realize the benefits of the pledge is limited to the property pledged. A pledge under this subsection does not create a liability or an indebtedness of the state or the authority except, in the case of the authority, strictly in accordance with the pledge terms.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-9 Loans or other financial assistance; necessary documents
Sec. 9. A loan or other financial assistance from the fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-10 Guidelines
Sec. 10. The authority may adopt guidelines without complying with IC 4-22-2 to govern the administration of this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-11 Leveraged loan program; authorization
Sec. 11. (a) As an alternative to making loans or providing other financial assistance to private individuals or entities, nonprofit entities, or political subdivisions, the authority may use the money in the Indiana brownfields fund to provide a leveraged loan program and other financial assistance programs to or for the benefit of political subdivisions, including using money in the Indiana brownfields fund to enhance a private individual or entity's, nonprofit entity's, or political subdivision's obligations under this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another law, including this chapter; or
(ii) any account established within the Indiana brownfields fund; or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a political subdivision or for bonds or other obligations issued by a trustee that is a financial institution for a grantor trust or the authority if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by political subdivisions or of bonds or other obligations issued by a trustee that is a financial institution for a grantor trust or the authority.
(b) The authority may enter into any agreements with:
(1) a trustee that is a financial institution for a grantor trust; or
(2) private individuals or entities, nonprofit entities, or political subdivisions;
to carry out this chapter.
(c) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the Indiana brownfields fund. A guarantee under subsection (a)(3) does not create a liability or an indebtedness of the state or of the authority except, in the case of the authority, strictly in accordance with the guarantee terms.
(d) Notwithstanding any other law, the authority is considered a qualified entity for purposes of IC 5-1.5.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-12 Authorization to issue, guarantee, and sell obligations
Sec. 12. (a) Notwithstanding any other law and in addition to any other law, including this article, the authority may issue, guarantee, and sell its revenue bonds, notes, and other obligations and guarantee loans and other financial assistance in connection with the Indiana brownfields program and the Indiana brownfields fund. The revenue bonds, notes, and other obligations must be issued in accordance with a resolution of the authority on terms or within parameters established by the authority, and proceeds must be used to carry out one (1) or more of the purposes of this chapter.
(b) Compliance with this section constitutes full authority for the authority to issue and guarantee its revenue bonds, notes, and other obligations, to guarantee loans and other financial assistance, and to sell the revenue bonds, notes, and other obligations at public or private negotiated sale on terms or within parameters established by the authority. The authority is not required to comply with any other law applicable to the authorization, approval, issuance, guarantee, and sale of its revenue bonds, notes, and other obligations and guarantee loans and other financial assistance. The revenue bonds, notes, and other obligations, including guarantees, issued by the authority in connection with the Indiana brownfields program and the Indiana brownfields fund are valid and binding obligations of the authority and are enforceable in accordance with their terms and payable solely from the sources specified in the resolution authorizing their issuance, guarantee, and sale. The authority's revenue bonds, notes, and other obligations, including guarantees, do not create a liability or debt of the state.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-12-13 Deposits of money; uses
Sec. 13. (a) The authority may deposit appropriations or other money received under this chapter (or IC 13-19-5, before its repeal) after June 30, 1999, into an account of the Indiana brownfields fund. The authority may use money deposited in the account to award financial assistance, including forgivable loans, to or for the benefit of a political subdivision, and awards of professional services to private individuals or entities, nonprofit entities, and political subdivisions for remediation or other brownfield redevelopment activities. The authority shall, in the manner provided by section 10 of this chapter, adopt guidelines to establish a political subdivision's eligibility for a forgivable loan. The guidelines may provide priority for projects based on the funding source.
(b) The financial assistance agreement for a project to be financed with a forgivable loan must specify economic development or redevelopment goals for the project that must be achieved before the political subdivision will be released from its obligation to repay the forgivable loan.
As added by P.L.189-2018, SEC.25.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026