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Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) or Superfund, Section 104(k); and CERCLA Section 104(d); `` `Discounted Loans' Under Brownfields Revolving Loan Fund Grants''

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

 
[Federal Register: October 28, 2005 (Volume 70, Number 208)]
[Notices]
[Page 62108-62109]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28oc05-36]

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ENVIRONMENTAL PROTECTION AGENCY
[FRL-7989-9]
 
Comprehensive Environmental Response, Compensation and Liability 
Act (CERCLA) or Superfund, Section 104(k); and CERCLA Section 104(d); 
`` `Discounted Loans' Under Brownfields Revolving Loan Fund Grants''

AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of the availability.

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SUMMARY: Pursuant to an October 17, 2005 Memorandum signed by Thomas P. 
Dunne, Acting Assistant Administrator of EPA's Office of Solid Waste 
and Emergency Response, Brownfields Revolving Loan Fund (RLF) grantees 
may provide discounted loans in certain situations. RLF grants are 
awarded to eligible entities provided in section 104(k)(1) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
(CERCLA), to capitalize RLF's for brownfields cleanup. RLF grantees can 
use their EPA grant funds for loans and subgrants, as well as other 
eligible activities.
    The Office of Solid Waste and Emergency Response provides this 
policy in response to interest by RLF grantees awarded under CERCLA 
section 104(k) in issuing discounted loans as part of their RLF 
programs. Such loans were provided for in earlier policies that applied 
to Brownfields Cleanup Revolving Loan Fund (BCRLF) grants awarded under 
CERCLA section 104(d). BCRLF grants were awarded starting FY1997 to 
FY2002, prior to the passage of the Small Business Liability Relief and 
Brownfields Revitalization Act (Brownfields Law). Several BCRLF 
grantees made discounted loans under CERCLA section 104(d) policies, 
thereby achieving cleanup goals. However, with the signing of the 
Brownfields Law, new RLF grants, awarded under 104(k) from FY2003 
forward, were left with no provision for the use of discounted loans. 
This policy meets this need, giving RLF grantees additional options to 
achieve cleanup goals, in keeping with prudent lending practices.

ADDRESSES: Mailing addresses for U.S. EPA Regional Offices and U.S. EPA 
Headquarters are provided in the Proposal Guidelines for Brownfields 
Assessment, Revolving Loan Fund and Cleanup Grants. Obtaining Proposal 
Guidelines: The proposal guidelines are available via the Internet: 
http://www.epa.gov/brownfields. Copies of the Proposal Guidelines will 
also be mailed upon request. Requests should be made by calling the 
U.S. EPA Call Center at the following numbers: Washington, DC Metro 
Area at 703-412-9810, Outside Washington, DC Metro at 1-800-424-9346, 
TDD for the Hearing Impaired at 1-800-553-7672.

FOR FURTHER INFORMATION CONTACT: Call Alison Evans at the U.S. EPA's 
Office of Solid Waste and Emergency Response, Office of Brownfields 
Cleanup and Redevelopment, (202) 566-2777.

SUPPLEMENTARY INFORMATION: This policy supersedes all previous 
memorandums and/or policies that address this practice for these 
grantees. It applies to:
    ? RLF grants awarded under CERCLA section 104(k),
    ? BCRLF grants originally awarded under CERCLA section 
104(d) that have transitioned to section 104(k) as provided in section 
104(k)(3)(D), and,
    ? BCRLF grants awarded under CERCLA section 104(d) that have 
not transitioned.
    RLF grantees may offer discounted loans (also called ``principal 
forgiveness'') under the following conditions:

I. Borrowers for Discounted Loans

    RLF grantees may offer discounted loans to those entities provided 
in CERCLA section 104(k)(1) including states, political subdivisions, 
and others, as well as nonprofit organizations.\1\ Private, for-profit 
entities are not eligible for discounted loans.
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    \1\ For the purposes of the brownfields grant program, EPA will 
use the definition of nonprofit organizations contained in Section 
4(6) of the Federal Financial Assistance Management Improvement Act 
of 1999, Public Law 106-107, 31 U.S.C. 6101, Note. The term 
``nonprofit organization'' means any corporation, trust, 
association, cooperative, or other organization that is operated 
mainly for scientific, educational, service, charitable, or similar 
purpose in the public interest; is not organized primarily for 
profit; and uses net proceeds to maintain, improve, or expand the 
operation of the organization.
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II. Conditions for Individual Discounted Loans

    For an individual loan, the amount of principal discounted may be 
any percentage of the total loan amount up to 30 percent, provided that 
the total amount of the principal forgiven shall not exceed $200,000. 
For example, a loan of $600,000 may be discounted at 30 percent, 
resulting in $180,000 in principal forgiven. However, a loan of 
$800,000, could only be discounted at 25 percent, resulting in $200,000 
in principal forgiven (any discount above 25 percent, in this case, 
would result in more than $200,000 in principal forgiven, which is not 
provided for under this policy). In addition to these terms, a 
discounted loan may not be used in combination with a subgrant at a 
single site.

III. Conditions for RLF Grant Management When Discounted Loans Are Employed

    For an RLF grant budget as a whole, the total dollar amount of 
principal forgiven through discounted loans plus the amount subgranted 
shall not exceed a total of 40% of RLF grant funds awarded.

Background

    On January 11, 2002, President George W. Bush signed into law the 
Small Business Liability Relief and Brownfields Revitalization Act. 
This act amended the Comprehensive Environmental Response, Compensation 
and Liability Act to authorize Federal financial assistance for 
brownfields revitalization, including grants for assessment, cleanup, 
and job training.
    Funding for the brownfields grants is authorized under section 
104(k) of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended, (CERCLA), 42 U.S.C. 9604(k). 
Eligibility for brownfields assessment and revolving loan fund grants 
is limited to ``eligible entities'' as defined in section 104(k)(1) of 
CERCLA. These include a General Purpose Unit of Local Government; Land 
Clearance Authority or other quasi-governmental entity that operates 
under the supervision and control of, or as an agent of, a general 
purpose unit of local government; Governmental Entity Created by State 
Legislature; Regional council or group of general purpose units of 
local government; Redevelopment Agency that is chartered or otherwise 
sanctioned by a state; State; Indian Tribe other than in Alaska; and 
Alaska Native Regional Corporation, Alaska Native Village Corporation, 
and Metlakatla Indian Community. Eligibility for brownfields cleanup 
grants is limited to ``eligible entities'' and nonprofits.
    In addition, Intertribal Consortia, other than those composed of 
ineligible Alaskan tribes, are eligible to apply for the brownfields 
assessment, revolving loan fund, and cleanup grants. Coalitions of 
eligible governmental

[[Page 62109]]

entities are eligible to apply for the brownfields revolving loan fund 
grants, but only one member of the coalition may receive a cooperative 
agreement.

    Dated: October 24, 2005.
Linda Garczynski,
Director, Office of Brownfields Cleanup and Redevelopment, Office of 
Solid Waste and Emergency Response.
[FR Doc. 05-21530 Filed 10-27-05; 8:45 am]
BILLING CODE 6560-50-P

 
 

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