The Brownfields Economic Redevelopment Initiative -
Proposal Guidelines for Brownfields Cleanup Revolving Loan Fund Demonstration Pilots

Introduction

The Environmental Protection Agency's (EPA) Brownfields Economic Redevelopment Initiative is designed to empower states, local governments, communities, and other stakeholders involved in economic redevelopment to work together in a timely manner to prevent, assess, safely cleanup, and sustainably reuse brownfields. As part of this Initiative, EPA has awarded cooperative agreements to States (including U.S. territories), political subdivisions (including cities, towns, counties), and Indian tribes to capitalize Brownfields Cleanup Revolving Loan Fund pilots. ⁽¹⁾ The purpose of these pilots is to test brownfields cleanup revolving loan fund models that direct special efforts toward facilitating coordinated public and private brownfields cleanup efforts at the federal, state, and local levels.

In fiscal year 1999, the EPA expects to select up to 63 new BCRLF pilots, awarding up to $500,000 per pilot.

Eligible entities for FY 1999 BCRLF pilots, as in previous years, will be entities that have been awarded Brownfields Assessment Demonstration Pilots prior to FY99.⁽²⁾ In addition, political subdivisions with jurisdiction over sites that have either (1) been the subject of a targeted brownfields assessment (formerly called targeted site assessments), or (2) been selected by the U.S. EPA prior to January 1, 1999 to be the subject of a targeted brownfields assessment, are also eligible for a single BCRLF pilot award. BCRLF pilot proposals do not have to be limited to sites identified, characterized, or assessed under a previously awarded assessment pilot or targeted brownfields assessment.

Proposals from coalitions, formed among the eligible entities, are permitted to apply, but a single eligible entity must be identified as the legal recipient. Additionally, a letter of support from each coalition member must be included as an attachment.

Eligible entities must demonstrate through their proposal: 1) an ability to manage a revolving loan fund and environmental cleanups; 2) a need for cleanup funds; 3) commitment to creative leveraging of EPA funds with public-private partnerships and in-kind services; and 4) a clear plan for sustaining the environmental protection and related economic development activities initiated through the BCRLF program. The eligible entities must meet EPA's threshold and evaluation criteria. There is no guarantee of an award. Also, the size of the awards may vary (for example, from $50,000 to $500,000), depending on the proposal's responses to the evaluation criteria.

Announcement of the deadline for new proposals for the 1999 BCRLF pilots will be made in the Federal Register. Proposals must be post-marked or sent to U.S. EPA Headquarters via registered or tracked mail by the stated proposal deadline. A copy of the proposal submitted to EPA Headquarters must also be submitted via registered or tracked mail to the appropriate U.S. EPA Regional Brownfields Coordinator.

Information regarding the BCRLF pilot program may be found at the EPA Brownfields Homepage (http://www.epa.gov/brownfields) and the reference to the "Revolving Loan Fund Pilots." Interested parties are strongly encouraged to review information found in the Brownfields Cleanup Revolving Loan Fund Administrative Manual (EPA 500-B-98-001) published in May 1998, which is also available on the web at ("http://www.epa.gov/swerosps/bf/rlflst.htm").

Many sites across the country once used for industrial/commercial purposes have been abandoned or are under-used--some are contaminated, some are merely perceived to be contaminated. A report from the General Accounting Office (GAO: Community Development, Reuse of Urban Industrial Sites, June 1995, GAO/ RCED-95-172) finds that:

"As states and localities attempt to redevelop their abandoned industrial sites, they have faced several obstacles, including the possibility of contamination and the associated liability for cleanup ... This situation is caused largely by federal and state environmental laws and court decisions that impose or imply potentially far-reaching liability. The uncertain liability has encouraged businesses to build in previously undeveloped nonurban areas--called 'greenfields'--where they feel more confident that no previous industrial use has occurred."

The National Environmental Justice Advisory Council (NEJAC) has likewise "determined that there exists a compelling need to address issues of economic development and revitalization of America's urban [and rural] communities." The NEJAC has requested that EPA:

"Provide leadership in stimulating a new and vigorous national public discourse over the compelling need to develop strategies for ensuring healthy and sustainable communities in America's urban [and rural] centers and their importance to the nation's environmental and economic future."

EPA is responding to these concerns through its EPA's Brownfields Initiative. The Brownfields Initiative can be grouped into four broad and overlapping categories: (1) providing cooperative agreements for brownfields assessment and cleanup pilots; (2) clarifying liability and cleanup issues; (3) building partnerships and outreach among federal agencies, states, municipalities, and communities; and (4) fostering local job development and training initiatives.

EPA defines brownfields as abandoned, idled, or under-used industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. EPA's Brownfields Economic Redevelopment Initiative is an organized commitment to help: communities revitalize such properties, both environmentally and economically; mitigate potential health risks; and restore economic vitality to areas where brownfields exist.

To date, the Agency has funded 227 Brownfields Assessment Demonstration Pilots. The brownfields assessment pilots (each funded up to $200,000 over two years) test cleanup and redevelopment planning models, direct special efforts toward removing regulatory barriers without sacrificing protectiveness, and facilitate coordinated environmental cleanup and redevelopment efforts at the federal, state, and local levels. These brownfields assessment pilot are being used to bring together community groups, investors, lenders, developers, and other affected parties to address the issue of assessing sites contaminated with hazardous substances and preparing them for appropriate, productive use. The pilots serve as vehicles to explore a series of models for states and localities struggling with such efforts. Experience gained from the brownfields assessment pilots, along with partnerships and outreach activities, is providing a growing knowledge base to help EPA's Brownfields Cleanup Revolving Loan Fund pilots.

Both assessment and cleanup pilots focus on EPA's primary mission--protecting human health and the environment. However, they are an essential piece of the nation's overall community revitalization efforts. EPA works closely with other federal agencies through the Federal Interagency Working Group on Brownfields and builds relationships with other stakeholders on the national and local levels to develop coordinated approaches for community revitalization.

To ensure a fair evaluation process, EPA will convene a FY 99 BCRLF pilot evaluation panel consisting of EPA Regional staff, including Regional Brownfields Coordinators, and other federal agency representatives. Regional evaluation panels held in each EPA Region will provide an initial evaluation of the proposals. These regional panels will assess how well the proposal meets the selection criteria outlined below.

Proposals must be clear and decisive, strictly follow the criteria, and provide sufficient detail for the panels to compare the merits of each and decide which proposals best support the intent of the pilot program. Vague descriptions and unnecessary redundancy may reduce the chance of a favorable rating. For this reason, applicants should provide draft workplans with their proposals.

Proposals providing the best evidence of a true need, a quality project, and appropriate use of funds will have the best chance of being recommended by the panels. Applicants are strongly encouraged to familiarize themselves with the Brownfields Cleanup Revolving Loan Fund Administrative Manual(EPA 500-B-98-001, May 1998) and the Brownfields Cleanup Revolving Loan Fund Administrative Manual: Model Terms and Conditions (EPA 500-B-98-002, October 1998)(see, http://www.epa.gov/swerosps/bf/rlflst.htm).

Applicants may also contact and meet with EPA Regional Brownfields Coordinators for assistance prior to submission of their proposal. Regional panel recommendations regarding proposals will be presented to EPA senior management for final selection. The evaluations will include recommendations for the number and size of the awards.

Upon selection, applicants will receive a confirmation letter from EPA Headquarters. Since the cooperative agreements are to be awarded by the EPA Regional offices, at the time the selected applicants are notified, appropriate EPA Regional Brownfields Coordinators and Regional Grants Specialists also will be informed. Applicants with proposals that are not selected will be informed in writing.

Subsequently, successful BCRLF pilot proposal applicants will be contacted by the Regional office and asked to submit a formal cooperative agreement application package. The information in the BCRLF pilot proposal submitted to EPA Headquarters will form a basis for the cooperative agreement application. However, the cooperative agreement application will require more detailed information on specific products, schedule, and budgets. The cooperative agreement application package will include: the standard application and budget forms; a formal work plan that provides a detailed description of the work to be performed, including a schedule, milestones, products, and budget backup information; information related to community relations, health and safety, and quality assurance plans; and the required certification forms.

When the applicant is a political subdivision, the proposal should also include a written agreement from the State that the political subdivision may assume the lead responsibility for removal activity at a site(s). Applicants should consult with U.S. EPA's Regional BCRLF Project Officer if such agreement cannot be obtained in time to submit it with the formal proposal package. In addition, as soon as the applicant receives selection notification, they will be asked to contact their State Intergovernmental Review office so that the required intergovernmental review process may begin immediately. The EPA Regional Brownfields Coordinator and Regional Grants Specialist will work closely with the applicant to process and finalize the cooperative agreement package. Regulations require the award official⁽³⁾ to sign the cooperative agreement before costs are incurred, with limited exceptions.

The BCRLF pilots are intended to support self-sustaining efforts by states, local governments, and Indian tribes to clean up brownfields. In particular, these pilots will test revolving loan fund models that facilitate coordinated public and private cleanup efforts.

A revolving loan fund charges interest on the loans, generally at a low interest rate. This fund is termed revolving because it uses loan repayments (principal, plus interest and fees) to make new loans for the same authorized purposes.

From the BCRLF pilot funds, states, political subdivisions, and Indian tribes may provide loans, but not grants, to public and private parties (for example, political subdivisions and community development organizations) for the purposes of cleaning up brownfields sites that already have been assessed for contamination. It is important to note that sites do not have to be contained within the original assessment pilot project area to be eligible to receive funding from a BCRLF. Loan repayments and fees provide a continuing source of capital for states, political subdivisions, and Indian tribes to direct and facilitate brownfields site cleanups by providing additional loans to other eligible recipients for brownfields site cleanup.

The U.S. EPA has established procedures governing how BCRLF funds may be paid to cooperative agreement recipients and subsequently disbursed to borrowers. (All payments will be made consistent with 40 C.F.R. Part 35.6280.) Payments for administrative expenses will be made on the basis of the costs the recipient incurs, subject to the 15% administrative cost ceiling. The recipient may establish disbursement procedures that allow borrowers to request funds based on either actual expenses (e.g. invoices) or a schedule (e.g. progress payments). EPA will make payments to the recipient based on either approach.

The U.S. EPA anticipates being substantially involved in overseeing and monitoring the BCRLF program to ensure that applicable legal, financial, and environmental response requirements are met. EPA may approve the procedures for site and loan recipient selection, review or approve project phases, work collaboratively with the recipient to develop scopes of work and generally oversee operational matters. However, the Agency does not intend to be involved in prioritizing loan proposals, or in the day-to-day management of the BCRLF loan program, and, specifically, will have no contractual ties with individual borrowers.

The following definitions will be used throughout these proposal guidelines:

• An Applicant is the state, political subdivision of a state (for example, city, town, county), or Indian tribe that is going to submit or has submitted a proposal for a BCRLF Demonstration Pilot with EPA.

• A Proposal is the document submitted to EPA that provides responses to the criteria described below. If the proposal is selected by EPA, the applicant will be requested to prepare a formal application for a cooperative agreement.

• A Cooperative Agreement is the document negotiated between EPA and those applicants that EPA has selected as candidates to receive BCRLF pilot funding. The cooperative agreement will award federal funds and outline the terms and conditions to be met by the recipient of the funds.

• A Cooperative Agreement Recipient:
  • is the entity with the authority to enter into the cooperative agreement and be responsible for the overall implementation of the BCRLF demonstration pilot.

  • is the recipient of federal funds and ensures that the funds provided by EPA are used for authorized purposes and that the use of these funds is tracked, recorded, and reported to EPA.

  • supervises the implementation of the BCRLF pilot and is responsible for overall policy and direction. The recipient may choose to enter into agreements with a policy or advisory committee, such as a Brownfields Task Force or other organization of stakeholders for performance of some of the policy-setting activities.

  • must act as the Lead Agency.
  • must identify a qualified government employee to be the Brownfields Site Manager.

  • must act as, or legally designate a representative to act as, the Fund Manager.

  • will be responsible for all actions of the fund manager. Therefore, should a BCRLF pilot cooperative agreement be terminated by EPA, the cooperative agreement recipient must appoint a receiver to manage outstanding loans or EPA will appoint a receiver at the Agency's discretion.
  
  
• The Lead Agency:
  • is the cooperative agreement recipient. The primary Lead Agency responsibilities for BCRLF activities are identified in 40 C.F.R. §300.415. Please note, a cooperative agreement recipient may enlist the services of other entities that have experience carrying out and overseeing environmental response activities to help fulfill its Lead Agency responsibilities. The cooperative agreement recipient may not, however, designate another entity to act as the Lead Agency.

  • will determine that BCRLF cleanup activities at a particular site are authorized by CERCLA and the NCP. This determination will be based on a site evaluation (described in the NCP at 40 CFR §300.410) and on current site conditions. The Lead Agency may rely on site evaluation information submitted by a potential borrower, but data from sampling and analyses must conform to 40 CFR §300.415(b)(4)(ii).

  • will conduct a site-specific engineering evaluation and cost analysis of cleanup alternatives as required by 40 CFR 300.415(b)(4). The Lead Agency may rely on information submitted by a potential borrower, but data from sampling and analyses must conform to 40 CFR §300.415(b)(4)(ii).

  • will ensure that a BCRLF cleanup will meet applicable or relevant and appropriate requirements under Federal and state environmental laws, as required by 40 CFR §300.415(j).

  • will meet the NCP public participation requirements (see, 40 CFR 300.415(n)), including ensuring the availability of documents, providing adequate public comment periods, and designating a spokesperson to inform the community of actions taken, respond to inquiries, and provide information.

  • will establish an administrative record for each site, as required by 40 CFR §300.800(a). An administrative record will contain all the information which forms the basis for the selection of a cleanup action, including a decision document describing the final selection of a BCRLF cleanup.

  • will work with the Fund Manager as loan agreements are developed to ensure that all environmental response requirements will be met and that BCRLF funds are used only for authorized activities.

  • will ensure the adequacy of each BCRLF cleanup as it is implemented, including, but not limited to, ensuring that all Federal and state requirements for worker health and safety are met and ensuring that Natural Resource Trustees are promptly notified and coordinated with where there are potential damages to natural resources.

  • will ensure that a site is secure and poses no immediate threat to human health or the environment if a selected BCRLF cleanup will not fully address threats at the site, or if a borrower is unable or unwilling to complete a BCRLF cleanup.
  
  
• The Brownfields Site Manager:
  • is identified by the cooperative agreement recipient.

  • must be a qualified government employee.

  • will carry out the "on-scene coordinator" responsibilities identified in the NCP (for example, 40 C.F.R. §§300.120). These responsibilities will include on-site coordination, direction, and review of borrowers and contractors to assure compliance with the National Contingency Plan and Lead Agency approved documents.
  
  
• The Fund Manager
  • is the cooperative agreement recipient or its legally designated representative.

  • is responsible for ensuring that the BCRLF is managed in conformance with the cooperative agreement, applicable laws and regulations, and prudent lending practices.
  
  Please note: Cooperative agreement recipients are permitted to designate third parties to serve as the fund manager. If the cooperative agreement recipient uses pilot funds to enter into agreements with non-governmental entities for these activities, proper procurement procedures must be followed. Intergovernmental agreements may be used for transactions between governmental units.

• The Pilot Area:
  • is the section(s) of the applicant's jurisdiction in which it intends to make loans supported by BCRLF funds.

The BCRLF demonstration pilot program is funded under §104(d)(1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA). Regulations applicable to this program include 40 C.F.R. Part 31 (Uniform Administration Requirements for Grants and Cooperative Agreements to State and Local Governments), 40 C.F.R. Part 35, Subpart O (Cooperative Agreements for Superfund Response Actions), and 40 C.F.R. Part 300 (The National Oil and Hazardous Substances Pollution Contingency Plan). Use of BCRLF pilot funds must be in accordance with CERCLA and all CERCLA restrictions on use of funding also apply to BCRLF funds.

States, political subdivisions (including, cities, towns, and counties), and Indian tribes are eligible cooperative agreement recipients. Proposals from coalitions, formed among the eligible entities, are permitted to apply, but a single eligible entity must be identified as the legal recipient. Additionally, a letter of support from each coalition member must be included as an attachment. Cooperative agreement funds will be awarded only to an eligible recipient, as described above. Proposals from a State acting in conjunction with a political subdivision(s) should submit a letter of support from the political subdivision(s).

The BCRLF pilot proposals must conform to the following guidelines:

Eligible Sites

• Use of the of BCRLF pilot funds is limited to brownfields sites that have been determined to have an actual release or substantial threat of a release of a hazardous substance. Funds may also be used at sites with a release or substantial threat of release of a pollutant or contaminant which may present an imminent and substantial danger to the public health or welfare.

• BCRLF pilot funds may NOT be used for activities at any sites: 1) listed (or proposed for listing) on the National Priorities List; 2) at which a removal action must be taken within six months; or 3) where a federal or state agency is planning or conducting a response or enforcement action.

Eligible Borrowers

• BCRLF pilot funds may NOT be loaned to a party that is a generator or transporter of contamination at the site for which that party is requesting funds.

• BCRLF pilot funds may be loaned to a party that is an owner/operator of the site only if: the lead agency can determine that the owner/operator would fall under a statutory exemption from CERCLA liability; or that EPA would use its enforcement discretion and not pursue the party in question under CERCLA, as described by EPA guidance (see list in Appendix B). The initial findings made by the lead agency do not, however, limit the authority of the federal or state government.

Eligible Activities

• BCRLF pilot funds have been designated by the U.S. EPA's Administrator for cleanup activities only. BCRLF activities must be removals as defined in CERCLA §101(23). The National Contingency Plan at 40 C.F.R. §300.415 describes some examples of removal actions.

• BCRLF cleanups must meet the NCP requirements identified for non-time critical removal actions -- i.e., removal actions for which a planning period of at least 6-months exists. These requirements are identified primarily in 40 C.F.R. §§300.415 and 300.800. Pilot funds may be used for costs associated with meeting any of these requirements, including the requirement to conduct engineering evaluation and cost analysis of cleanup alternatives and all public participation requirements.

• BCRLF pilot loan funds may be used for site monitoring activities that are reasonable and necessary during the cleanup process.

• BCRLF pilot funds may NOT be used to conduct environmental response activities preliminary to cleanup, such as site assessment, site identification, and site characterization.

• BCRLF pilot funds may NOT be used to clean up products that are part of the building structure and result in exposure within residential buildings or business or community structures (e.g., interior lead-based paint contamination or asbestos which results in indoor exposure).

• BCRLF pilot funds may NOT be used for cleanup at sites contaminated by petroleum products, unless they are believed to be co-mingled with a hazardous substance, pollutant, or contaminant (e.g., used oil). CERCLA expressly excludes petroleum from the definition of hazardous substances.

• BCRLF pilot funds may NOT be used for development activities that are not removal actions (e.g., construction of a new facility or marketing of property).

Other Restrictions

• The cooperative agreement recipient may use BCRLF pilot funds for the lead agency's or fund manager's administrative and legal costs up to 15% of the total award, to be determined during cooperative agreement proposal negotiations with EPA. Allowable costs may include loan processing, professional services, audit, legal fees, and state program fees.

• BCRLF pilot funds may NOT be used for job training. Support for job training activities may be available through the Hazardous Material Training and Research Institute, EPA programs, other federal agency programs, and state and local programs.

• BCRLF pilot funds may NOT be used to support "lobbying" efforts of the cooperative agreement recipient (for example, lobbying members of Congress or State legislatures, or lobbying for other federal grants, cooperative agreements, or contracts).

• The cooperative agreement recipient CANNOT use BCRLF pilot funds to match any other federal funds without specific statutory authority. (However, the borrower may use BCRLF pilot funds to match other federal funds.)

• The cooperative agreement recipient is responsible for complying with all applicable Federal requirements that are applicable to the BCLRF by operation of statutes, executive orders, and regulations, in addition to CERCLA requirements. The Davis Bacon Act 40 U.S.C. §276a et seq. applies to all projects funded entirely, or in part, with CERCLA funds.

• The cooperative agreement recipient is generally expected to obligate all funds awarded under the BCRLF pilot within (3) years. Final payment and disbursement of award funds must be complete within (5) years from the agreement start date.

Proposals for BCRLF pilots should consist of the following sections:

• Cover Page (1 page)
• Proposal Overview (1-2 pages)
• Budget (1 page)
• Responses to Threshold Criteria -- Section A and B (up to 5 pages)
• Responses to Evaluation Criteria -- Sections C- F (up to 9 pages)
• Attachments (as appropriate; please provide an index)

Attachments should be kept to a minimum. Attachments that will be considered during proposal evaluation include maps and letters of certification and commitment, support, or partnership from other government or private entities. Examples of attachments that will not be considered during proposal evaluation include strategies or plans developed for other programs, advertising brochures, newspaper articles, resolutions, statutes, and videotapes. Information in these types of attachments should be distilled and incorporated into the responses to criteria.

To ensure fair and equitable evaluation of the proposals, please do not exceed the above, single-sided page limitations. In addition, all materials included in the proposal (including maps and other attachments) must be printed on letter-sized paper (8½" by 11") and font sizes may be no smaller than 11 points. Please submit two copies of your proposal materials, including attachments. One copy should be submitted directly to EPA Headquarters and the other copy should be submitted to the appropriate EPA Regional Brownfields Coordinator. (See page 29)

This is intended to identify the BCRLF Demonstration Pilot applicant and a point of contact for communication with EPA. This should be on a single page and in the format of your choice.

1. Proposal title: this should be as specific as possible.

2. Location: city, county, and state of the pilot area.

3. Scope and population of the pilot area.

4. Applicant identification: the name of the potential cooperative agreement recipient (for example, state or local agency).

5. Proposal director: the name of the person who is responsible for the proposal. We will contact this person if we need further information.

6. Mailing address of the proposal director.

7. Telephone/Fax/E-mail of the proposal director.

8. Name of the representative of the appropriate political subdivision (Mayor, County Executive, Tribal President, etc.) if different from the proposal director.

9. Mailing address of the representative of the appropriate political subdivision if different from the proposal director.

10. Telephone/Fax/E-mail of the representative of the appropriate political subdivision if different from the proposal director.

11. Date submitted: the date when the proposal is postmarked or sent to EPA via registered or tracked mail.

12. Pilot period: the cooperative agreement recipient generally has three years from the cooperative agreement start date to obligate (enter into loan agreements) all funds awarded. Final payment, disbursement of award funds, and close out must be complete within 5 years of award date. This will be determined by the applicant's projected implementation schedule for the initial round of lending to be described in "Criteria A.4: Describe proposed BCRLF Financial Plan" (See page 20).

13. Community background: demographic statistics on minority, unemployment, and poverty rates or other statistics that demonstrate distress in the pilot area.

14. Cooperative partners: provide a list of the individuals and organizations that have agreed to participate in the implementation of the pilot without charge.

The Proposal Overview is an important opportunity to briefly summarize the overall goals and objectives of a proposed pilot. Some of the information you provide in the Proposal Overview will overlap with the evaluation criteria. Provide an overview of the following topics:

• Overall brownfields goals and objectives.
• How capitalization of a BCRLF will help advance your goals and objectives.
• How the EPA cooperative agreement funds will be used (for example, administration, loans, and financing).

Budget

• Provide a potential budget for your proposal. This should show the distribution of the BCRLF pilot funds, including the portion of funds to be used for loans, and the potential cooperative agreement recipients' administrative costs, legal fees, and professional services (limited to 15% of the total award). A clear and concise budget is a critical element of the package.

A. Ability to Manage a Revolving Loan Fund and Environmental Cleanups

Applicants must meet the threshold criteria--demonstrate an ability to manage a revolving loan fund and environmental cleanups--to be selected for a BCRLF Demonstration Pilot.

The cooperative agreement recipient will carry out two primary functions: 1) lead agency, for the purpose of managing environmental cleanups; and 2) fund manager, for the purposes of directing and administering the BCRLF pilot. This section addresses the threshold criteria, i.e., the minimum criteria, a proposer must demonstrate to assure U.S. EPA it has the ability to implement a BCRLF pilot.

Provide background on the institutions and staff proposed to carry out the BCRLF pilot. This background information must include experience doing the types of tasks necessary to administer federal financial assistance and to manage a revolving loan fund and environmental cleanups.

Please identify the entity that will fill each function. For each entity, provide a brief history of the institutions involved, including any past or pending legal actions against the institutions or individuals proposed relating to public and commercial financial and environmental matters, how those actions were resolved, and whether any are currently suspended, debarred, or otherwise ineligible to receive federal funding. Should the cooperative agreement recipient choose to enlist the services of other entities to assist in carrying out environmental response actions and fund management activities to fulfill its responsibilities, describe the relationship between the potential cooperative agreement recipient and these institutions and the type of agreement (for example, intergovernmental agreement or contractual agreement) that is planned.

As discussed previously in these guidelines, proposals from coalitions of eligible entities are permitted to apply if a single eligible entity is identified as the legal recipient, and letters of support from each eligible entity are included as attachments. For purposes of this section of your proposal, you should fully describe how this coalition will operate as discussed below.

In addition, please provide the following information for each entity:

Lead Agency

Describe the experience and qualifications that the applicant has to act as the Lead Agency or describe how the applicant intends to acquire this expertise. Your description of experience and qualifications should be based on the responsibilities described in the definition of Lead Agency (see pages 8-9) and must include a demonstration that you have or have access to:

(1) Expertise in conducting or overseeing environmental response actions carried out in accordance with federal and state requirements and, in particular, experience with, or knowledge of, the non-time critical removal requirements in the National Contingency Plan (40 C.F.R. § 300.415); and

(2) Sufficient record-keeping expertise to ensure that the use of BCRLF funds (by the Cooperative Agreement recipient and by the borrower) is tracked, recorded, and reported to EPA.

(3) If the applicant is a political subdivision, this proposal may also include written agreement from the State that the political subdivision may assume the lead responsibility for removal activity at a site or sites. (Applicants should consult with the U.S. EPA Regional BCRLF Project Officer if such agreement cannot be obtained in time to submit it with the formal application package.)

(4) If the proposal is from a coalition of eligible recipients, please describe how the proposed Cooperative Agreement recipient will implement its lead agency responsibilities with respect to that coalition.

Please note: The cooperative agreement recipient may enlist the services of other entities that have experience with overseeing and carrying out environmental response actions to help the cooperative agreement recipient fulfill its lead agency responsibilities. The cooperative agreement recipient may not, however, designate another entity (including the Brownfields Site Manager) to act as the lead agency. If the cooperative agreement recipient uses pilot funds to enter into agreements with non-governmental entities for these activities, proper procurement procedures must be followed. Intergovernmental agreements may be used for transactions between governmental units.

Brownfields Site Manager

Please describe the experience and qualifications of the employee who will act as the Brownfields Site Manager. If you are unable to identify the government employee who will act as the Brownfields Site Manager at the time of the proposal, describe your plan for selecting the Brownfields Site Manager. Your description of experience and qualifications must include a demonstration that the employee identified to serve this function has, or will have:

(1) Experience with on-site coordination, direction, and review of environmental response activities.

(2) Experience with, or knowledge of, the non-time critical removal requirements in the National Contingency Plan (40 C.F.R. § 300.415).

Fund Manager

Please describe the experience and qualifications that this entity has to act as Fund Manager or describe how the applicant will have access to this expertise. If you are unable to identify a Fund Manager at the time of this proposal, please describe your plan for identifying and selecting a Fund Manager. Applicants must demonstrate that the body designated to service this function has, the following:

(1) Financial skills to manage the financial health of the fund;

(2) Analytical skills to evaluate potential borrowers on both technical and financial criteria;

(3) Legal skills to structure loan agreements, collateral arrangements, and repayment instruments; and

(4) Record keeping skills to track and report on the activities of the BCRLF and its borrowers (e.g., number of loans, categories of borrowers, and program income).

To reduce their administrative costs, cooperative agreement recipients are permitted to designate third parties to serve as the fund manager. Should an applicant choose any of the options described below for BCRLF fund manager, the applicant must ensure that BCRLF pilot funds are used only for authorized purposes:

(1) coordinate the administration of the BCRLF pilot with other existing revolving loan funds (e.g., EDA, others);

(2) enter into agreements with the state to administer the BCRLF pilot funds; or

(3) coordinate the administration of funds with other selected BCRLF cooperative agreement recipients.

The cooperative agreement recipient will be responsible for all actions of the fund manager. Therefore, should a BCRLF pilot cooperative agreement be terminated by EPA, the recipient must appoint a receiver to manage outstanding loans or EPA will appoint a receiver at the Agency's discretion.

If the proposal is from a coalition of eligible recipients, please describe how the fund manager will independently manage and track the funds for each of the eligible entities that are part of the coalition.

Please note: If the cooperative agreement recipient uses pilot funds to enter into agreements with non-governmental entities for these activities, proper procurement procedures must be followed. Intergovernmental agreements may be used for transactions between governmental units.

Demonstrate your legal authority to perform the actions necessary to manage environmental cleanups. This should include a demonstration of jurisdiction, as well as the authority to carry out the responsibilities described in the definitions of Lead Agency and Brownfields Site Manager (see pages 8-10). This authority may be based in statute, regulation, or other authority. This demonstration must be made in the form of a legal opinion from the applicant's legal counsel.

Demonstrate your legal authority to perform the actions necessary to manage a revolving loan fund. Legal authority must include, among other things, the ability to enter into the cooperative agreement, hold funds, make loans, enter into loan agreements, hold collateral, charge interest, and collect repayments. This authority may be based in statute, regulation, or other authority. The demonstration must be in the form of a legal opinion from the potential cooperative agreement recipient's legal counsel affirming the authority to carry out all necessary functions, specifically addressing the individual powers noted here and citing the basis for legal authorities.

In some cases, all authority may come from one source. For example, if the potential cooperative agreement recipient is a municipal government, your state may have granted broad powers to all municipalities that include those needed to operate a BCRLF. In some cases, however, such broad authority may not exist. In these cases, the legal opinion must cite specific authorities.

Briefly outline your proposed financial plans. The financial plan should address the proposed financing structure for the program, such as planned level of fund capitalization, loan schedule, and administrative costs. Once a BCRLF pilot proposal is selected, but prior to when the cooperative agreement is signed, applicants will be asked to provide a more detailed financial plan demonstrating the applicant's financial management capabilities. The applicant also should provide a brief description of how the BCRLF program may be operated in relationship with funding mechanisms other than EPA pilot funds. The applicant should briefly describe how BCRLF funds will be integrated into an existing redevelopment loan, grant, or tax incentive program. The financial plan also may, but is not required to, identify anticipated initial loan recipients and the level of funding to be provided.

The fund manager must propose a BCRLF pilot implementation schedule for the initial round of lending. However, the cooperative agreement recipient must understand that failure to comply with the pilot period can result in the deobligation and recovery of undisbursed cooperative agreement funds at the option of EPA.

Identify the site name, site location, and the current status of the targeted brownfields assessment within your jurisdiction. Describe whether the State or the U.S. EPA is responsible for conducting the targeted brownfields assessment within your jurisdiction.

Those applicants that meet the threshold criteria will be evaluated based on their responses to four evaluation criteria: (1) demonstration of need; (2) commitment to creative leveraging of EPA funds; (3) benefits of BCRLF pilot loans to the local community; and (4) long-term benefits and sustainability.

Your response to the following criteria will be the primary basis on which EPA determines the size of award. EPA's evaluation panel will review the proposals carefully and assess each response based on how well it addresses each criterion.

Provide demographic measures that demonstrate economic distress in targeted municipalities and neighborhoods. Demographic measures should include population (including distribution of minorities), poverty rates, and unemployment rates. Other measures could include per capita or family income levels or other measures that demonstrate distress.

The proposal should explain the unique needs of the community, including why certain demographic problems are a priority. Specific goals and strategies developed to deal with problems should be identified. Connecting to environmental justice issues, city or county-wide strategic planning, or comparative risk efforts is encouraged. If specific neighborhoods or communities have been targeted for enhanced development, a brief description of those plans should be included in the proposal.

Provide explanations of interactions with other local, state, or federal economic incentive programs designed to increase jobs and capital investment (for example, federal enterprise communities and empowerment zones, state-designated zones, tax increment financing districts, and public improvement districts). Any public/private investment activities associated with the demographic concerns should be described.

Detail the types of borrowers expected to benefit from BCRLF pilot financing and provide general information about their financial needs. The proposal should explain the process for identifying and selecting BCRLF pilot prospective borrowers and detail how they will be certified as qualified borrowers. Identify planned procedures for determining how potential borrowers requesting BCRLF pilot loans are well qualified to direct the proposed redevelopment and have a demonstrated record of success.

Describe specific areas that are to be included in the BCRLF pilot eligibility pool. Maps of eligible areas of emphasis, with clear explanations attached, should be provided. When possible, the proposal should provide descriptions of eligible properties.

Provide information on all other currently available or anticipated sources of funding for cleanup in the eligible area, including other federal, state, local, non-profit, and private funding sources. Discuss how you plan to use BCRLF pilot funds to address funding gaps for cleanup of eligible BCRLF pilot area properties (as discussed in Evaluation Criteria B.3). Proposals should demonstrate the extent to which EPA seed funding of a BCRLF pilot will attract other resources and be used in conjunction with those resources to maximum benefit.

Describe how the BCRLF pilot program will be coordinated with other revolving loan funds or financing programs available for environmental assessment and cleanup.

While applicants are not required to match seed capitalization funds, financial participation is encouraged and will be taken into account in evaluating proposals. Applicants, therefore, should describe their intended financial contributions to capitalizing the proposed BCRLF and the sources of these capitalization funds. This discussion can include both direct cash contributions and access to relevant in-kind services.

Describe the anticipated administrative framework for the BCRLF pilot and discuss how the planned BCRLF pilot structure will be integrated with other programs (for example, other revolving loan fund programs) in a manner that minimizes administrative costs for the BCRLF pilot program.

Describe your procedures for providing for public hearings and Notification of Funds Available (NOFA) when a BCRLF program is being planned and before it is implemented. Describe the public outreach process that must be held for the initial notification of the loan program. If a formal public comment period is provided, and the applicant allows for no action on the program until the comment period is completed, details must be included in the proposal. Documentation of all outreach efforts must be provided to EPA upon the Agency's request.

Describe how the proposed BCRLF pilot is community-based or how the applicant plans to involve the community in targeted areas of the pilot. Community meetings will be required as a part of the redevelopment process at a brownfields site when the property owner or developer is accepted as a borrower. Outline how you intend to ensure community involvement.

Describe partnerships with academic associations, environmental justice groups, established community contacts, and organizational networks. Detail the method for including these groups in land reuse decisions. Describe any standards for land-use based environmental cleanups. Include particulars on the community involvement in the determination of the selected environmental cleanup standards.

To demonstrate significant involvement of other community organizations or local agencies, the proposal may include letters of commitment from involved organizations. (These letters are not required; however, the letter from the state mentioned in the Cooperative Agreement Award Process section will be required.)

Cooperation among municipal, county, state, federal, and private economic development programs is encouraged. Provide a summary of such partnerships already developed for the delivery of economic benefits to the impacted brownfields area. Provide details on how the partners cooperate for overall economic community development. Describe the relationship envisioned with these partners under the BCRLF pilot program.

If funding of these partners is envisioned under the cooperative agreement, all proper procurement requirements will need to be met; unless another governmental entity is involved.

Environmental justice seeks to rectify the disproportionately high burden of environmental pollution that is often borne by low income, minority, and other disadvantaged communities. Describe how these communities have participated in the development of your brownfields redevelopments plans and how they will continue to participate in your Brownfields cleanup revolving loan fund.

Describe your plans for ensuring that affected disadvantaged populations benefit environmentally and economically (directly or indirectly) from the cleanup and reuse of brownfields as proposed in your proposal. Describe how you plan to ensure that environmental risks to disadvantaged communities are not increased during cleanup and redevelopment.

To demonstrate significant involvement of other community organizations or local agencies, the proposal may include letters of commitment from involved organizations. (These letters are not required; however, the letter from the state mentioned in the Cooperative Agreement Award Process section will be required.)

To ensure that the applicant's brownfields program continues when EPA funds are exhausted, the applicant should present the long-range planning and budget efforts established by the municipal or county agency responsible for implementing the brownfields program.

Describe the environmental and economic benefits of the BCRLF pilot, including the benefits of near-term projects and the projected sustainable environmental protection and economic stability of the community. Projected taxes, job creation, and pollution prevention information, if available, should be presented. Discuss intangible social benefits (for example, increased community pride, improved perceptions that the community is a good place to live and work, and decreased fear of crime).

Describe how this pilot can serve as a model for others to use in addressing barriers to revitalizing brownfields.

Given the complexity and local nature of the brownfields problem, no single plan will be suitable nationwide, but how you address specific barriers may provide lessons for others with similar problems.

Describe your plans for measuring success in achieving your BCRLF pilot goals. Measures of success should be specific and linked to the goals established for your pilot. Measures of success may include environmental indicators, economic indicators, institutionalized environmental or outreach processes, or other indicators of what you would consider a successful brownfields program. Success in this demonstration pilot should be measured in terms of environmental achievement (for example, number of sites cleaned up or acres of brownfields cleaned per dollar invested), revolving loan fund activity (for example, number and amount of loans issued, program income earned, default/delinquency rates, personal equity matches, and prognosis for long-term success of revolving fund), and program strategy (for example, private capital leveraged or other public investment leveraged). Successful integration of the BCRLF with other funding resources may also be considered as a measure of success. Provide quantifiable measures wherever possible.

Describe baseline measures that you have developed or plan to develop to measure success. If baseline measures have not been developed yet, describe how and when you plan to develop them.

Describe any reports or other deliverables you plan to provide to EPA as documentation of your pilot's progress and success.

1. In fiscal year 1997, the Agency awarded 24 Brownfields Cleanup Revolving Loan Fund (BCRLF) Demonstration Pilots. Pilot awards were for $350,000. Only entities that had been awarded brownfields assessment pilots prior to October 1995 were eligible to apply for the FY 1997 EPA's BCRLF pilots. Thus, up to 29 existing Brownfields Assessment Demonstration Pilots were eligible to be awarded in FY 1997. No BCRLF pilots were awarded in fiscal year 1998.

2. Existing BCRLF pilots (pilots awarded in FY 1997) will be eligible for supplemental awards of up to $150,000 pending approval by EPA Regional offices that significant progress has been made.

3. An "Award official" is the individual who signs the assistance agreement ensuring that all technical, legal, and administrative evaluations have been made and that the proposed agreement is awardable. For regionally administered programs, the award official is either the Regional Administrator, Assistant Regional Administrator, or the Division Director.

* Or 45 calendar days after notice is published in the Federal Register, which ever is later.

The BCRLF pilot proposals must be post-marked and sent to U.S. EPA Headquarters and EPA Regional Offices via registered or tracked mail no later than March 8, 1999 (or 45 calendars days after notice is published in the Federal Register, which ever is later).

If you have questions regarding the proposal, you may call EPA's Superfund Hotline at 1-800-424-9346 or your Headquarters contact or Regional representative presented below:

Note: Many of these documents can be found at the EPA Brownfields website, http://www.epa.gov/swerosps/bf/gdc.htm
• Brownfields Cleanup Revolving Loan Fund Administrative Manual (May 1998)
• Brownfields Cleanup Revolving Loan Fund Administrative Manual: Model Terms and Conditions (Oct. 1998)
• Policy on the Issuance of Comfort/Status Letters (November 12, 1996)

• Soil Screening Guidance Fact Sheet (July 1996)
• Revised Model Comfort Letter Clarifying NPL Listing, Uncontaminated Parcel Identifications, and CERCLA Liability Involving Transfers of Federally-Owned Property (January 16, 1996)

• Underground Storage Tank Lender Liability Rule (September 7, 1995)
• Land Use in the CERCLA Remedy Selection Process Directive (May 25, 1995)
• Community Reinvestment Act Regulations and Home Mortgage Disclosure (May 4, 1995)
• Guidance on Deferral of NPL Listing Determinations While States Oversee Response Actions (May 3, 1995)
• Military Base Closure: Guidance on EPA Concurrence in the Identification of Uncontaminated Parcels Under CERCLA Section 120(h)(4) (April 19, 1994)
• Guidance on Agreements with Prospective Purchasers of Contaminated Property(May 24, 1995)

• Policy Toward Owners of Property Containing Contaminated Aquifers (May 24, 1995)
• "Asset Conservation, Lender Liability, and Deposit Insurance Protection Act of 1996" (September 30, 1996)
• The Effect of Superfund on Involuntary Acquisitions of Contaminated Property by Government Entities (December 11, 1995)
• Policy on CERCLA Enforcement Against Lenders and Government Entities that Acquire Property Involuntarily (December 11, 1995)
• Tax Incentive Fact Sheet (August 1997)
• Guidance on Cumulative Risk Assessment (July 3, 1997)
• Liability and Other Guidance (April 1997)
• Targeted Brownfield Assessment Fact Sheet (November 1998)
• Fund Brownfields Remediation with the Clean Water State Revolving Loan Fund (October 1998)

Solid Waste
and Emergency
Response (5101)

EPA 500-F-99-001
January 1999