1. Cherrytree Group Presents:
“Energizing Tax Credits: Turning
Brownfields into Brightfields”
www.cherrytree-group.com

2. Our Featured Panel of Guest
Speakers
KerryBowie,
Director of Brownfields and Environmental
Justice, Massachusetts Department of
Environmental Protection
Richard Cote, P.E., LSP,
Comprehensive Environmental, Inc.
Warren Kirshenbaum
President, Cherrytree Group, LLC
www.cherrytree-group.com

3. The Commonwealth of Massachusetts
June 2013
“Energizing Tax Credits: Turning Brownfields
into Brightfields”
The Cherrytree Group Tax Credit Conference
Sheraton Boston Hotel, 39 Dalton Street, Boston MA 02199
14 JUN 13

4. The Commonwealth of Massachusetts
June 2013
Massachusetts Brownfields Program
• 1998 Brownfields Act enacted
– Provided liability relief through 21E and Brownfields Covenant Not
to Sue Program
– Established the Brownfields Advisory Group
– Solidified partnerships between MassDevelopment, Department
of Environmental Protection, Executive Office of Housing and
Economic Development, Department of Revenue, Business
Development Corporation, and Attorney General’s Office
– Created financial incentives including:
• $30 million Brownfields Redevelopment Fund
– Fund recapitalized in 2006
• Post-remediation Tax Credit Program
– Enhanced in 2006 to allow the transfer of credits
• Subsidized Environmental Insurance Program

5. The Commonwealth of Massachusetts
June 2013
Celebrating over 10 Years of Success!
• Program supported more than 1,300
projects
• Continued collaboration among
agencies
• Introduction of the Brownfields
Support Team Initiative in 2008
(BST1)
• BST2 launched in 2010
– Transit-oriented Development (TOD)
focus (MassDOT)
• BST3 announced in 2012
– Sustainability/Clean Energy focus
(DOER)
Indian Orchard Business Park, Springfield (top),
and Former Silicon Transistor Corporation,
Chelmsford

6. The Commonwealth of Massachusetts
June 2013
Brownfields Redevelopment Assistance
• MassDevelopment
– Brownfields Redevelopment Fund; Other Financing
• MassDEP
– Privatized Cleanup; Flexible Standards; Technical Assistance; Limited Funding
• BDC New England
– Subsidized Environmental Insurance
• Department of Revenue (DOR)
– Brownfields Tax Credits
• Office of Attorney General
– Covenants Not to Sue
• EOHED/MOBD
– MassWorks; 43D; Permitting Collaborative; Economic Development Incentive
Program
• MassDOT
– Transportation and infrastructure support; ITC funding
• Department of Energy Resources (DOER)
– Clean energy support; renewable energy tax credits

7. The Commonwealth of Massachusetts
June 2013
Clean Energy Results Program (CERP)
Contaminated Land Development Goal
• 50 MW Clean
Energy by 2020
• Primarily Solar
Photovoltaic's (PV)
• Locations:
– 21e Sites
– Underused
Brownfields
– Superfund Sites
– Closed Landfills*
• Size: 0.5 to 2.0 MWs
*MassDEP Bureau of Waste Prevention (BWP)
Brockton Brightfields, 425 kW solar PV

8. The Commonwealth of Massachusetts
June 2013
Why Brownfields?
• Limited reuse options
due to contamination
• Leverage Existing
Infrastructure
• Protect Open Space
• Gain Community
Support
• Sustainable
Development
• Anticipate Reduced
Land Costs and
Permitting Timelines
USEPA’s RE-Powering America’s Land Initiative – Advantages Fact
Sheet, July 2012

9. The Commonwealth of Massachusetts
June 2013
Massachusetts Contaminated Land Installations To Date
Solar array installed at former gas works
Brockton Brightfields
Fixed tilt system at landfill
Pittsfield MSW
Solar array installed at former foundry
Indian Orchard Solar FacilityMMR Wind Turbines
Two of three turbines
powering remediation
Everett Solar Project
Solar array installed at
former manufactured
gas plant
Haverhill Solar Project
Solar array installed at former
manufactured gas plant
Source: Provided through the U.S. EPA's RE-Powering America's Land Initiative, 2012

10. The Commonwealth of Massachusetts
June 2013
USEPA RE-Powering America’s Land Initiative: Massachusetts
# Sites
Installed
Capacity (MW)
1 NY 5 67.1
2 SC 1 20.0
3 WY 1 16.5
4 NJ 7 14.7
5 NV 1 14.2
6 CA 8 12.1
7 MA 9 11.4
8 IL 2 10.9
9 CO 4 5.4
10 PA 1 3.0
RoUS 17 4.8
56 180.1
RE-Powering Installations on Contaminated
Lands
Source: Provided through the U.S. EPA's RE-Powering America's
Land Initiative, 2012, http:/www.epa.gov/renewableenergyland

11. The Commonwealth of Massachusetts
June 2013
Review “Favorable” Site Characteristics
• “Good” Solar Resource
– greater than 3.5 kWh/m2/day
• “Usable acreage”
– 2-5 Acres Optimal
– 5 Acres = 1 Megawatt (MW)
– “In My Backyard” (IMBY) NREL Solar
Estimator (fixed tilt)
– “PVWatts” NREL – more options
• Project economics partially
driven by overall size.
– Larger size = more power, faster
payback
• Distance to Electrical
Transmission Line and Graded
Roads
– Less than ½ mile optimal
– Greater than adds cost
– Favorable characteristic for urban
Brownfields
Baird & McGuire, Holbrook, 2006

12. The Commonwealth of Massachusetts
June 2013
Contaminated Lands Profile List
• To identify potential
RE development
opportunities
• ~ 800 MassDEP
“Brownfield” Sites
– “Underutilized”
– “Abandoned”
– “For Sale/”Lease”
• EPA “Superfund”
Sites in MA (~30)

13. The Commonwealth of Massachusetts
June 2013
Contaminated Lands Profile List
• 35% are 4 Acres or
greater
• Sites up to 700+
Acres
• 30% located within 1
mile or less of utility
line
• 85% located within
an investor-owned
utility region

14. The Commonwealth of Massachusetts
June 2013
Commercial Scale PV Incentives
• Federal Investment Tax Credit (ITC)
– Up to 30% of eligible system costs
– Hard cost of equipment
– Taken and applied against federal tax obligation of a “for-profit entity”
– Expires 12/31/16
• Federal Modified Accelerated Cost-recovery System
(MACRS)
– Recover costs through depreciation reductions
– 5-year accelerated depreciation
– Expires by 12/31/16
– Bonus 50% if placed in service by end of 2012!
• MA Solar Renewable Energy Certificates (SRECs)
– 1 SREC = 1 MWh
– Retail electrical providers required to buy
– Minimum value $285/MWh
– Ceiling value up to $550/MWh
• Net Metering
– Customers located in investor-owned utilities (National Grid, NSTAR,
Western Massachusetts Electric Company, and Unitil) have the option of
selling net excess electricity generation from a qualifying solar project via
net metering.
• Third-Party Power Purchase Agreement (PPA)

15. The Commonwealth of Massachusetts
June 2013
N.I.M.B.Y.
Q&A Ground-Mounted Solar PV
Addresses:
• Health risks associated with
chemicals in panels
• Decommissioning
• “Heat Island” effects
• Electric & Magnetic Fields
(EMF)
• Property Values
• Public Safety (including fires)
• Historic Preservation
• Noise
• Water Related Impacts
– Discourages use of significant
tree cutting

16. The Commonwealth of Massachusetts
June 2013
Contact Information:
Thomas Potter, Clean Energy Development Coordinator
Bureau of Waste Site Cleanup
Massachusetts Department of Environmental Protection
617-292-5628 (phone), thomas.potter@state.ma.us
Daniel Seferian, Counsel
Rulings and Regulation Bureau
Massachusetts Department of Revenue
(617) 626-3293 (phone), seferian@dor.state.ma.us
Kerry Bowie, Director of Brownfields & Environmental Justice
Commissioner’s Office
Massachusetts Department of Environmental Protection
617-556-1007 (phone), kerry.bowie@state.ma.us
http://www.mass.gov/dep/cleanup/brownfie.htm

17. "Energizing Tax Credits: Turning
Brownfields into Brightfields"
Brownfields and Funding From an LSP
Perspective

18. What is an LSP?
• Engineers authorized to oversee assessment and cleanup
of contamination releases.
• Governed bythe Board of Registration of Hazardous
Waste Site Cleanup Professionals.
• The LSPprogramhas allowed privatization of the cleanup
of hazardous waste sites in MA.
• LSP’s have significantlyreduced the amount of
contaminated sites in MA, including redevelopment of
Brownfields sites.

19. Cleaning Up Hazardous Waste Sites
• Cleanups are governed bythe Massachusetts Contingency
Plan (MCP) which outlines the schedule and procedures
to be followed in implementing response actions at
disposal sites.
• Massachusetts General Laws Chapter 21E (21E) states
that all past and present owners/operators could
potentiallybe held liable for a release.
• The 1998 BrownfieldsAct provides liabilityrelief to the
provisions of 21E, as well as financial incentives to eligible
owners/operators to attract newresources for
contaminated properties.

20. Grant Types To HelpYour Client
Finance a Remediation
1. An Assessment grant provides funding for planning, environmental assessments, and communityoutreach.
• $200,000/ property.
• Limit of three properties per applicant.
1. Revolving Loan Fund (RLF) makes loans and issues grants to carryout cleanup activities at Brownfields.
• The RLF is a $1mm Fund.
1. Cleanup grants which provide direct funding for cleanup activities at specific sites.
• This grant requires a 20 percent cost contribution byowner, which maybe in the form of a
contribution of money, labor, material, or services, and must be for eligible and allowable costs (the
match must equal 20 percent of the amount of funding provided byEPAand cannot include
administrative costs).
1. Job Training grants which provide environmental training for residents of Brownfields communities.
These funds maybe used to address sites contaminated bypetroleumand hazardous substances, pollutants, or
contaminants (including hazardous substances comingled with petroleum)
The performance period for these grants is up to three years.
Federal Targeted BrownfieldsAssessment
EPARegion 1 Uses contractors
<$75,000 Grant of Service

21. State Brownfields Programs
• Assessment Loans (MassDevelopment) of up
to $100,000 is available for environmental
testing to be conducted bya LSP.
• Cleanup Loans (MassDevelopment) of up to
$500,000 are also available for
environmental clean-up required for
redevelopment.

22. Brownfields Tax Credit
• Eligible developments to receive a tax credit of
up to 50% of costs directlyincurred in
remediating environmental contamination in
situations where the contamination was not
caused bythe taxpayer.
• Taxpayer can use or transfer the tax credits, and
there is a secondarymarketplace for the trading
of these tax credits.

23. Practical Examples
Dedham, MAJunkYard 40-year
old oil release
•Three properties
• Four separate owners
•Four RTNs dating back to 1996
•One Innocent Owner
•12-years, 5 LSPs, 6 attorneys
Remedial Program
•Wetland Restoration
•Groundwater Remediation
•Soil Removal
•Institute Chemical Treatment
•Method 3 RiskAssessment

24. Brownfield Tax Credit Remedial Costs
• Typical Costs: MCPReporting, Equipment, Labor,
Drilling, Disposal, Groundwater, Permitting,
Laboratory, Professional Subcontracts (wetland,
Risk), etc.
• Allowable: MCPLegal Review, Land Value, Survey,
Deed Filings associated with cleanup, In-kind
Services with Receipts.
• Disallowed: Site Development Costs, Real-Estate
Acquisition Cost, Other Legal Costs, interest and
financing expenses.

25. Lessons for LSPs
• Detailed Records: itemized invoices, canceled checks and other backup
• Cleanup that conforms to the MCP
• “Site”
– MCP: Site Boundaries defined by
contamination
– BT: PropertyLines/Owners
• Tax Credits go to non-PRP: property“owners” and those that have “control” (i.e.
a Lessee)
• Tax Credits are used and sold - RAOshould pass an audit
• Department of Revenue keeps moving the goal posts
Brownfield Case Studies
“Tax Credits, MyAccountant KnowsAll That??”

26. Contact Information
Richard C. Cote, P.E., LSP
Comprehensive Environmental Inc.
Principal, Manager of Engineering
1-800-725-2550 x302
225 Cedar Hill Street
Marlborough, MA01752
rcote@ceiengineers.com

27. "Energizing Tax Credits: Turning
Brownfields into Brightfields"
www.cherrytree-group.com
Utilizing Tax Credits

28. WHATIS THEMASSACHUSETTS
BROWNFIELDS TAX CREDIT?
o TheMassachusettsBrownfieldsTax Credit (BTC), isatax credit
used by Massachusettstaxpayersasadirect dollar-for-dollar offset
for taxesowed to theCommonwealth.
o TheBTC isearned following theremediation of an environmentally
contaminated property (per MGL CH 21E and theMCPi.e. MCR
40.0890) that has“achieved” apermanent solution, evidenced by the
filing of aRemediationAction Outcome(RAO) or Remedy
Operation Status(ROS) with theMA Department of Environmental
Protection (DEP)

29. SOMEBTC SPECIFICS
o TheBTC amountsto 50% o f the eligible co sts of aqualified remediation when thepermanent solution does
not contain an Activity and UseLimitation (AUL), and theBTC amountsto 25% of theeligiblecostswhere
asiteisclosed with an AUL;
o TheBTC ispersonal to thetaxpayer and doesnot transfer with atransfer of theproperty;
o Thecoststhat areBTC eligiblearethose"direct" environmentally related costs, such asLSPcosts, lab
testing costs, 21E related legal expenses, soil removal and disposal, excavation, demolition, clean fill costs,
transportation, and sitepreparation.
o BTC costsarereviewed and verified by theDepartment of Revenue(DOR).
o TheBTC may beused by thetaxpayer to offset up to 50% of taxes, and theunused balancemay becarried
to thenext tax year for an additional 4 years, (i.eatotal of 5 years)
o TheBTC may betransferred to any MA taxpayer.

30. CURRENTREQUIREMENTS TO
RECEIVETHEBTC:
oThetaxpayer cannot havebeen thecauseof thecontamination.
oThetaxpayer must betheowner or lesseeof thecontaminated
siteduring thecleanup period.
oThesitemust beclosed out with apermanent solution (RAO
or ROS).
oThemoney spent on theremediation must amount to at least
15% of thesite'sassessed valueat thetimetheremediation
began.
oThesitemust bein an Econo mically Distressed Area.
oThesitemust beused for businesspurposes.
oTheremediation expensesmust beincurred by an entity, trust,
not-for profit corp. (i.e. not agovernment, state, municipal
entity)
oTheRAO or ROSmust befiled with DEPbeforeAugust 5,
2013 (unlessthestatueisextended).

31. RENEWABLEENERGY TAX CREDITS
o Therearetwo separatetax creditsapplicableto
renewableenergy:
• Investment tax credit (ITC): thiscredit isearned by
investing in renewableenergy infrastructureor
equipment.
• Pro ductio n tax credit (PTC): thiscredit isbased on a
unit measureof renewableenergy produced, and is
granted for each kilowatt hour of renewableenergy
produced.
o TheITC amountsto 30% of theinvestment made
in renewableenergy and thePTC differsfor
different typesof renewableenergy (i.e. solar,
biomass, wind, etc.)
o On theFederal side, you can only claim either the
ITC or thePTC. Therearealso StatePTC's
availablefor renewableenergy production, and,
therefore, project developersusually choosea
combination of theFederal ITC and aStatePTC
to financethecostsof building theproject and
producing theenergy.

32. ADAPTABILITY BETWEEN
BROWNFIELDS ANDRENEWABLES
o Brownfieldshavebecomean attractiveoption for RenewableEnergy projectssuch
assolar and wind, becausepurchasing or leasing land isasignificant cost, and
contaminated sitescan beacquired for lessmoney.
o Converting Brownfieldssitesto commercial use, either with arenewableadd-on
(solar panelson rooftops) or asthecommercial useitself (asolar farm/array or a
biomassconversion site) isbecoming morefeasible. Conceptually, Brownfields
sitescan beconverted into acommercial usethat includesasan add-on the
production of renewableenergy, either in addition to theproperty'sprimary use, or
asthenew commercial useitself.
o AstheBTC isonly received post remediation, and theITC can bestructured asan
investor pay-in prior to construction, thecoupling of thesetax creditscan lead to a
significant upfront capital infusion.

33. A BROWNFIELDS TO
BRIGHTFIELDS EXAMPLE
In 2006, Solon, aGerman-based
company, built a425-kilowatt solar
array in Brockton, Mass., on asitethat
had formerly been used to make
methane-gasstreet lamps. Solon, and
thesiteowner, Bay StateGasCo.,
prepared thesitefor itscurrent useby
covering thewastecoal tar and ash
with 6,000 cubic yardsof crushed
concreteand clean soil. Thesolar array
depicted in the adjacent picturewas
then installed. Astherewasno sub-
surfaceinstallation, therewasno risk
of impacting theenvironmental
solution. http://online.wsj.com/article/SB10001424052702303828304575180132815079418.html

34. FINANCIALILLUSTRATION OFTHE
TAX CREDITBENEFITS
By way of example, assume that the site on the previous page had $600,000 in eligible BTC costs; a $1,000,000 cost forthe solar
system; and had otherdevelopment costs as detailed hereunder. The project's development pro-forma would be as follows:
Site Acquisition and Remediation
Land acquisition costs $ 7 50,000
Remediation Expenses $ 600,000
TOTAL $ 1,350,000
Less: OwnerEquity Required ( $ 27 0,000)
Acquisition Loan Amount $ 1 ,08 0,000
Renewable Energy Installation
SolarSystem $ 1 ,000,000
Feasibility, Due Diligence, Other $ 35,000
Fees /Costs $ 60,000
---------------
TOTALCOSTS ( Funded by a Construction Loan) $ 1,095,000
Tax Credit Equity
BTC ($600,000 x 0.50x 0.75 ) $ 225,000
ITC ( $1,000,000 x 0.30 x 0.75) $ 225,000
Depreciation ( $1,000,000 x $0.12) $ 1 20,000
---------------
Total $ 57 0,000
Acquisition Loan $1 ,08 0,000 Equity Required (20%) $7 05,000
Construction Loan $1 ,095,000 Equity Contributed (39 %) $8 40,000
Net Permanent Loan $1 ,605,000
(61% LTV)
Permanent Loan $2,1 7 5,000
Net OwnerEquity Contribution $270,000

35. SERVICES THECHERRYTREE
GROUPPROVIDESo Consulting
• Analyzetheproject’seligibility for thetax credits;
• Prepareand filethetax credit application;
• Work with relevant Stateor Federal Department(s) to obtain thetax credit approval: and
• Usein-houselegal and accounting servicesto support thetax credit application.
o Brokerage/Syndication
• SecureaBuyer for thetax credit or purchasethetax creditsourselves, giving you aguaranteeof
funding.
o Back-Office Support/Capability
• Assist in structuring and closing on thetax credit purchase(includesaccounting, legal, consulting);
o Post-transaction
• Perform post transaction tax consulting to instituteatax beneficial structure(astax credit proceeds
aretaxable).*
*Additional feesapply for thisservice.

36. Contact Information
233 NeedhamStreet
Suite 402
Newton, MA02464
Tel: (617) 431-2266
Fax: (617) 431-2270
E-Mail:
info@cherrytree-group.com
www.cherrytree-group.com