Obama administration to spend at least $800 million on GM plant cleanup

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The Obama administration on Tuesday proposed a more than $800-million fund to pay for the cleanup and redevelopment of closed General Motors auto plants in 14 states.

In a statement, Ed Montgomery, who leads the White House Council on Automotive Communities and Workers, said the fund would be used to pay for the cleanup of nearly 90 closed properties because of the GM bankruptcy. More than half the sites are in Michigan.

“I have heard many times that the redevelopment of shuttered auto facilities represents one of the largest economic development challenges our auto communities face,” Montgomery said. “The new framework announced today embodies the Obama administration’s commitment to cleaning up plants and other properties left behind by GM and positioning them again for productive use.”

The fund includes $536 million for the cleanup of the properties and approximately $300 million that will assist the states and communities to cover such costs as property taxes, demolition costs and plant security costs.

The funding comes from $1.2 billion provided by the Treasury Department to help wind down GM’s bankruptcy last year.

-- Michael Muskal

Twitter.com/LATimesmuskal