Straughter Body Shop prior to demolition and remediation (left) and after (right). The project was made possible by SEP funding. Photos via Meredith Gramelspacher.

The following is a guest post from Meredith Gramelspacher, Director and General Counsel of the
Indiana Brownfields Program

Indiana’s toolbox for creative brownfields financing includes one source that is seldom used outside of Indiana: Supplemental Environmental Projects.

Supplemental Environmental Projects (SEPs) are used by the Indiana Department of Environmental Management (IDEM) Office of Enforcement in negotiating settlements of enforcement cases. These environmentally-beneficial project improve, protect, or reduce risks to public health or the environment. A regulated entity agrees to undertake the project in further settlement of an enforcement action, but which the regulated entity is not otherwise legally required to perform. In certain cases, IDEM agrees to allow a respondent to make a cash payment of an agreed-upon dollar amount directly to the Indiana Finance Authority in lieu of an assessed civil penalty for use on a brownfield project in the city, town or county in which the violation underlying the enforcement action occurred. The Indiana Brownfields Program then coordinates with the beneficiary community to select a brownfield property at which to utilize the SEP Funds consistent with Brownfield SEP guidelines.