Section 1740.10  Purpose

 

a)         The Agency shall establish and administer a revolving loan program to be known as the "Brownfields Redevelopment Loan Program" for the purpose of providing loans to be used for site investigation, site remediation, or both, at brownfields sites. [415 ILCS 5/58.15(A)(a)]

 

b)         Prior to applying to the Agency for payment, a remediation applicant shall first submit to the Agency its proposed remediation costs.  The Agency shall make a pre-application assessment, which is not to be binding upon the Department of Commerce and Economic Opportunity (formerly the Department of Commerce and Community Affairs) or upon future review of the project, relating only to whether the Agency has adequate funding to reimburse the applicant for the remediation costs if the applicant is found to be eligible for reimbursement of remediation costs.  If the Agency determines that it is likely to have adequate funding to reimburse the applicant for remediation costs, the remediation applicant may then submit to the Department of Commerce and Economic Opportunity an application for review of eligibility.  The Department must review the eligibility application to determine whether the remediation applicant is eligible for the payment.  The application must be on forms prescribed and provided by the Department of Commerce and Economic Opportunity.  [415 ILCS 5/58.15(B)(b)]

 

Section 1740.20  Definitions

 

The following definitions are applicable to this Part:

 

"Act" means Environmental Protection Act [415 ILCS 5/58.15].

 

"Agency" or "IEPA" means the Illinois Environmental Protection Agency.

 

"Aggregate Capital Investments" means all private capital investments and all public capital improvements at the eligible site for the period beginning 3 years prior to the site evaluation and ending 3 years after completion of site remediation.

 

"Application" means a written request for reimbursement containing the required information and attachments.

 

"Capital Improvements" means permanent tangible mechanical plants, structures, equipment and furnishings in a project sited in Illinois and in non-material goods, including organizational costs and research and development costs incurred in Illinois that are capitalized and all other costs normally capitalized.  For mechanical plants, structures and equipment that are leased, the lease must equal or exceed the term of the reimbursement agreement and the cost of the property shall be determined from the present value, using the prevailing corporate interest rate, of the lease payments.

 

"Capital Investments" means expenditures on:

 

land, buildings and permanent structures, equipment and furnishings at the site;

 

capitalizable organizational costs such as site evaluation and remediation activity costs (whether capitalized or expensed on the applicant's tax return); and

 

present value of any long-term lease of mechanical plants, structures and equipment calculated using the prevailing prime rate.

 

"Department" or "DCEO" means the Illinois Department of Commerce and Economic Opportunity.

 

"Eligible Site" means any single location, place, tract of land or parcel of property or portion thereof that:

 

is abandoned property:  real property previously used for, or that has the potential to be used for, commercial or industrial purposes that reverted to the ownership of the State, a county or municipal government, or an agency thereof, through donation, purchase, tax delinquency, foreclosure, default, or settlement, including conveyance by deed in lieu of foreclosure [415 ILCS 5/58.15(B)(b)(2)];

 

is vacant, abandoned property: privately owned property that has been vacant (except for inconsequential use) for a period of not less than 3 years from the time an application is made to the Department [415 ILCS 5/58.15(B)(b)(2)]; or

 

is underutilized property:  real property of which less than 35% of the commercially usable space of the property and improvements thereon are used for their most commercially profitable and economically productive uses [415 ILCS 5/58.15(B)(b)(2)].

 

"Net Economic Benefit" means the positive impact associated with the purchase, remediation, and reuse of an eligible site based on factors, including but not limited to the capital investment, the number of jobs created, the number of jobs retained if it is demonstrated the jobs would otherwise be lost, capital improvements, the number of construction-related jobs, increased sales, material purchases, other increases in service and operational expenditures, and other factors established by the Department.  Additionally, in determining the economic benefit to the State, the Department will give priority to sites located in areas with high levels of poverty, where the unemployment rate exceeds the State average, where an enterprise zone exists, or where the area is otherwise economically depressed as determined by the Department. [415 ILCS 5/58.15(B)(b)(3)]

 

"Project" means an activity or activities at a single site.

 

"Project Costs" means cost of the project incurred or to be incurred by the applicant, including: capital investment, including, but not limited to, equipment, buildings, or land; infrastructure development; debt service, except refinancing of current debt; research and development; lease costs; but excluding the value of State incentives, including discretionary tax reimbursements and the interest savings of below market rate loans.

 

"Remediation Applicant" means any person seeking to perform or performing investigative or remedial activities under Title XVII of the Act, including the owner or operator of the site or persons authorized by law or consent to act on behalf of or in lieu of the owner or operator of the site.  [415 ILCS 5/58.2]

 

Section 1740.30  Eligible Applicant

 

As long as the project is eligible, there is no restriction against who may apply.

 

Section 1740.40  Eligible Projects

 

The Department shall determine site eligibility.  To qualify for site eligibility, the remediation applicant must certify that the site is an eligible site as defined in Section 1740.20, the site for which the Department's net economic benefit assessment and certification is being sought is enrolled in the Agency's Site Remediation Program, and the project must have received a No Further Remediation Letter from the Agency after December 31, 2001.

 

Section 1740.50  Application

 

a)         Procedures

 

1)         Prior to submitting to DCEO an application to determine eligibility, applicants must first submit their proposed remediation costs to the Agency.  The Agency shall make a pre-application assessment, which is non-binding on the Department or upon future review of the projects, relating only to whether the Agency expects to have adequate funding to reimburse the applicant for the remediation costs if the applicant is found to be eligible for reimbursement of remediation costs.  If the Agency determines it is likely to have adequate funding to reimburse the applicant for remediation costs, the applicant may then submit an application for review of eligibility to DCEO.  Because IEPA has the ultimate responsibility to approve the reimbursement payment, the determination of available funding is the sole responsibility of the Agency.

 

2)        Upon request, the Department shall supply interested potential applicants with application guidelines and instructions that describe the program rules, required information, and attachments.  Applications will be accepted at any time during the year.  Receipt of an application does not commit the Department to award certification.

 

3)         Formal applications for consideration will be required and shall be submitted on the standard application form provided by the Department.  Applications shall be submitted to the Department office location identified on the application.  The applicant shall provide information that includes but is not limited to:

 

A)     Applicant Information – name, address, and telephone number; key contact person and title; applicant FEIN number, North American Industry Classification System (NAICS), if available; and authorized signatures;

 

B)     Project Summary – a detailed description of the project;

 

C)     Site Map – an outline of the general location of the project on a site map, including the location of any flood plain areas, wetland areas, and enterprise zones;

 

D)     Economic Benefit of Remediation Expenditures – site evaluation expenses and site remediation expenses;

 

E)     Economic Benefit of Individuals Employed or to be Employed – a detailed description of the number of new, retained or construction employees to be hired and the occupation and payroll of the full-time jobs to be created or retained as a result of the project, and a schedule of anticipated starting dates of the new hires with information on the employment duration and the average annual salary or wages of the new, retained or construction employees;

 

F)     Economic Benefit of Private Capital Investments – the investment the applicant will make in capital improvements, and the designated location in Illinois for the investment.  This shall include a description (or specifications or lists) of the planned capital improvements demonstrating the investment is qualified; documentation to substantiate the value of the investment (value of capital improvements as provided by appraisers, vendors, contractors and/or architects and engineers), and a schedule regarding when the eligible investment will be placed in service; and

 

G)     Economic Benefit of Public Capital Improvements – a detailed description of total project cost, items of expense and investment, including, but not limited to, equipment, buildings, or land; infrastructure development; debt service, except refinancing of current debt; research and development; job training and education; lease costs; or relocation costs.

 

4)         Within 60 days from the date an application is determined to be complete, the Department shall notify the applicant that the application has been approved or rejected.  If the application is rejected, the notification shall state the reasons for that determination.  Resubmitted applications will be approved or denied in writing within 30 days after receipt.  In the event of a complaint by the applicant, the Department will follow the procedures outlined in 56 Ill. Adm. Code 2605 (Administrative Hearing Rules).

 

b)         Form of Application

 

1)         All communications relating to the application procedures defined in Section 1740.60 shall be sent to the Department at:

 

Illinois Department of Commerce and Economic Opportunity

Re: Brownfields Site Restoration Program

100 West Randolph

Suite 3-400

Chicago IL  60601

 

2)         An application shall be typed or computer generated using the current approved format provided by the Department.

 

3)         An application shall contain one original and 3 copies.

 

4)         An application shall include the information and supporting documents that will enable the application to be evaluated based on the criteria described in Section 1740.60 of this Part.

 

5)         Each application, including supporting documents and attachments, shall be contained under a single cover.

 

6)         The applicant shall remit a $1,000 non-refundable application fee to the Department at the time of the submission of the application.  The application fee shall be remitted in the form of a check or money order and shall be made payable to the Department of Commerce and Economic Opportunity for deposit into the Workforce Technology and Economic Development Fund. 

 

Section 1740.60 Determination of Amount and Term of the Reimbursement Grant

 

The Department shall determine the maximum amount of the reimbursement awarded under the Act.  In determining the amount of the reimbursement that should be awarded, the Department may take into consideration the following factors, based on agency site remediation program records, including but not limited to:

 

a)         Reimbursement applies only to remediation costs incurred after the Department's  written approval of the application.

 

b)         Reimbursement shall be greater than or equal to a minimum capital investment as determined by the Department from information documented by the remediation applicant in its application.

 

c)         Reimbursement cannot exceed 20% of the aggregate capital investment, as determined by the Department from information documented by the remediation applicant in its application.

 

d)        Reimbursement cannot exceed the net economic benefit to the State, as determined by the Department from information documented by the remediation applicant in its application.

 

e)         Reimbursement applies only to the costs incurred to remediate the site, not to exceed a total of $750,000.  (Note:  Remediation costs are to be documented to the satisfaction of the Agency through an IEPA final Assessment of Remediation Costs.)

 

Section 1740.70  Computation of Time for Response to Application

 

Computation of any period of time prescribed by this Part shall begin with the first business day following the day on which the act, event or development initiating that period of time occurs and shall run until the end of the last day or the next business day if the last day is a Saturday, Sunday or federal or State holiday.  Timeliness shall be deemed by the date of postmark or the date of hand delivery.

 

Section 1740.80 Confidentiality

 

Material submitted in the application may be subject to disclosure in response to requests received under provisions of the Freedom of Information Act [5 ILCS 140].  Information that could reasonably be considered to be proprietary, privileged or confidential commercial or financial information must be identified as such in the application.  The Department will maintain the confidentiality of that information to the extent permitted by law.