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1 [1] (April 13, 2023)

handle is hein.crs/govelgj0001 and id is 1 raw text is: Congressional Research Service informingj the keg~Iative debate since 1914 0 April 13, 2023 Economic Development Conveyances for BRAC Properties Congress has approved five rounds of military base realignments and closures under the Base Realignment and Closure (BRAC) process: in 1988, 1991, 1993, 1995, and 2005. Since 2005, Congress has not authorized additional BRAC rounds. Recent funding for prior BRAC rounds has focused on properties where environmental remediation is not complete. A 2022 Government Accountability Office (GAO) report found that 17% of BRAC properties closed under prior rounds awaited environmental remediation and/or conveyance. Regulations for BRAC property disposal identify multiple mechanisms for the Department of Defense (DOD) to transfer ownership of (i.e., convey) surplus BRAC property for redevelopment. Those include: economic development conveyances (EDCs) at no cost, below market value, or at cost, in which a local redevelopment authority (LRA) agrees to certain conditions designed to generate employment at the property; public benefit conveyances; negotiated sales to state or local governments; conservation conveyances; and public sales. BRAC Property Conveyance Process The Defense Base Closure and Realignment Act of 1990 (Base Closure Act, P.L. 101-510, as amended, 10 U.S.C. §2687 note) and DOD regulations (32 C.F.R. Part 174) outline the DOD's steps to put a property through the BRAC process. Those include selecting a property for closure or realignment, closing or realigning the property's military mission, remediating environmental issues, and conveying the property, either to another federal agency or to a nonfederal entity, for civilian reuse. LRAs are central to several aspects of the BRAC and EDC processes. The Base Closure Act defines an LRA as any entity ... recognized by the Secretary of Defense as the entity responsible for developing the redevelopment plan with respect for the installation. Once a BRAC property is approved for closure and declared surplus-meaning no federal department or agency identifies a need for it-local governments of jurisdiction typically organize an LRA to create and execute a redevelopment plan for the property. Once finalized, the DOD also uses the redevelopment plan as its basis to prepare the environmental review analysis under the National Environmental Policy Act (42 U.S.C. §4321 et seq.) in order to evaluate the potential environmental impacts of the disposal of the property. The environmental remediation activities the DOD must conduct are also based on land use under the plan. The redevelopment plan is distinct from the EDC application (discussed below). 32 C.F.R. Part 174 stipulates that there is generally to be only one recognized LRA per BRAC property. Although the LRA is responsible for preparing the redevelopment plan, the DOD may use any of the conveyance mechanisms identified in regulation to dispose of a BRAC property. The LRA may desire an EDC, but neither statute nor regulation bind the DOD to that particular conveyance mechanism. Economic Development Conveyance Process The Base Closure Act authorizes the DOD to use an EDC to transfer real and personal property at a BRAC property to an LRA for the purposes of job generation. After completing the redevelopment plan, the LRA may submit an EDC application to the DOD. 32 C.F.R. Part 174 requires, among other things, the EDC application to describe the property's intended uses; describe how the EDC will contribute to short- and long-term job generation; include a business plan with a development timetable and financial feasibility analysis; and project the number and type of new jobs the EDC will help create. The secretary of the military department with jurisdiction over the property reviews the application and must provide a preliminary determination within 30 days of receiving the application to the extent practicable. Figure 1 presents selected steps for obtaining an EDC. Remediation is an additional step prior to conveyance. Figure I. Selected Steps to Obtaining an EDC Installation DOD selected for recognizes LRA submits BRAC [RA EDC application Stakeholders LRA adopts, DOD issues form LRA DOD approves disposal redevelopment decisions plan Source: DOD, Base Redevelopment and Realignment Manual According to the Base Closure Act, conveyance of a BRAC property under an EDC may be for consideration at or below the estimated fair market value or without

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