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The Oregon Administrative Rules contain OARs filed through January 15, 2010

OREGON BUSINESS DEVELOPMENT DEPARTMENT

DIVISION 135

BROWNFIELDS REDEVELOPMENT LOAN FUND

123-135-0000

Purpose

The purpose of these rules is to implement the Brownfields Redevelopment Fund created in 1997 through Chapter 738 Oregon Laws 1997 and amended by Chapter 96 Oregon Laws 2001. The purpose of the Brownfields Redevelopment Fund is to fund environmental actions on properties that are brownfields.

Stat. Auth.: ORS 285A.75(5) & ORS 285A.110
Stats. Implemented: ORS 285A.185 & ORS 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 8-2001(Temp), f. & cert. ef. 11-15-01 thru 5-14-02; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02

123-135-0010

Policy

It is the policy of the Oregon Economic and Community Development Department to promote sustainability and assist rural or distressed communities with local development priorities. Facilitating environmental cleanup consistent with a polluter-pays principle and the redevelopment of brownfields furthers this policy. The benefits of redeveloping brownfields include: promoting economic development; enabling efficient land use; minimizing the construction of new service infrastructure; facilitating the resolution of environmental justice issues; and protecting environmental and human health.

Stat. Auth.:ORS 285A.75(5) & ORS 285A.110
Stats. Implemented: ORS 285A.185 & ORS 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 8-2001(Temp), f. & cert. ef. 11-15-01 thru 5-14-02; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02

123-135-0020

Definitions

As used in this division, the following terms shall have the following meaning unless otherwise indicated:

(1) "Applicant" means any person, combination of persons, non-profit, or municipality applying for financial assistance from the Brownfields Redevelopment Fund;

(2) "Bridge Loan" means a loan that will be repaid in full at the end of a short-term, twelve (12) to twenty four (24) months, following loan closing;

(3) "Brownfield" means real property where expansion or redevelopment is complicated by actual or perceived environmental contamination as defined in ORS 285A.185(1);

(4) "Capacity Building" means evaluating, cleaning up, or otherwise preparing a site without an identified redevelopment use to meet the buildable lands needs of a municipality;

(5) "Collateral" means property subject to a security interest or security agreement as defined in ORS 79.1050;

(6) "Commission" means the Oregon Economic and Community Development Commission;

(7) "Contribution" means cash, a reduction in land sale price, a donation of real property or personal services of value; or some other like act that offsets the benefit of receiving sums from the Fund that are conveyed on a recipient or site owner who is a potentially responsible party for a release of a hazardous substance or is potentially liable for the cost of cleanup at the site according to ORS 465.255;

(8) "Department" means the Oregon Economic and Community Development Department;

(9) "Environmental Action" means activities undertaken to:

(a) Determine if a release has occurred, if the release, or potential release,poses a significant threat to human health or the environment, or if additional remedial actions may be required at the site;

(b) Conduct a remedial investigation and afeasibility study;

(d) Conduct a remedial action or removal action at a site.

(10) "Environmental Insurance" means a specific form of casualty insurance based on industry custom standards. Policies such as, but not limited to, cleanup cost caps, secured creditor on impaired property, or pollution legal liability are examples of environmental insurance;

(11) "Environmental Justice" means community based issues, concerns, or problems resulting from the disparate effects caused by the placement and/or proximity of facilities that negatively impact minority or low-income populations;

(12) "Environmental Service Professional" means an entity that has the necessary experience, capacity, expertise, or is otherwise certified to conduct environmental actions;

(13) "Facility" means any building, structure, installation, equipment, pipe or pipeline including any pipe into a sewer or publicly owned treatment works, well, pit, pond, lagoon, impoundment, ditch, landfill, storage container, above ground tank, underground storage tank, motor vehicle, rolling stock, aircraft, or any site or area where a hazardous substance has been deposited, stored, disposed of, or placed, or otherwise come to be located and where a release has occurred or where there is a threat of a release, but does not include any consumer product in consumer use or any vessel. Facility has the meaning given in ORS 465.200;

(14) "Financial Institution" means any commercial bank, mutual savings bank, savings and loan association, credit union, insurance company, investment bank, certified development corporation or National Association of Securities Dealers (NASD) securities underwriter licensed or authorized to do business in Oregon;

(15) "Fund" means the Brownfields Redevelopment Fund;

(16) "Grant" means awards from the Fund to a Recipient to reimburse or pay eligible project expenses. When there is otherwise no specific reference to Cash Grant, or Conditional Grant the reference shall include all Grant types.

(a) "Cash Grant" means awards from the Fund that are available to pay eligible project costs;

(b) "Conditional Grant" means awards from the Fund that are repaid only as conditions allow;

(17) "Hazardous Substance" has the meaning given in ORS 465.200;

(18) "Institutional Controls" has the meaning given in ORS 465.315 and OAR 340-122-0115(32);

(19) "Loan" means debt financing offered through the Fund. The Fund has two types of loans, bridge loan and term loan;

(20) "Municipality" means any city, county, municipal corporation or quasi-municipal corporation, special district, port, or federally recognized tribe;

(21) "Non-Profit" means an organization certified under sections 501(c)(2) through (4) and (6) through (8) and (10) of the Internal Revenue Code;

(22) "Person" means any individual, association of individuals, company, joint venture, partnership, or corporation;

(23) "Project" and "Project Description" means the resulting combination of the site, the proposed activities to be performed, the proposed or likely redevelopment use, and any other information stated in the Fund application;

(24) "Prospective Purchaser Program" refers to ORS 465.327 and associated administrative rules;

(25) "Recipient" means the person, non-profit, or municipality receiving a disbursement of sums from the Fund;

(26) "Release" (as in release of a hazardous substance) has the meaning given in ORS 465.200;

(27) "Scope of Work" means a detailed plan to perform in part or in whole an environmental action. Scopes of work shall be drafted by an environmental service professional;

(28) "Site" means the parcel or parcels of real property on which the funded activities will be performed;

(29) "Site Characterization" means determining and delineating the boundaries of the plume(s) of contamination and/or determining the status of the contamination such as whether it is migrating or crossing from one media to another, such as from soil to water, at the site. This review provides a level of detail comparable to a "preliminary assessment" (PA) as described in OAR 340-122-0072 and may be comparable to a "Phase II Environmental Site Assessment" under ASTM Standard E 1903;

(30) "Site Investigation" means a historic use investigation of the site involving, but not limited to, the analysis of aerial photos, public and private records, personal interviews, and other documents and data sources to determine the likelihood of a release of a hazardous substance at the site or facility. This review provides a level of detail comparable to a "Phase I" review under ASTM Standards E1527 and 1528 and is often a desktop review without any sampling;

(31) "Site Sampling" means systematically obtaining and analyzing representative samples from the site of relevant media such as soil and water to determine the presence of and/or the concentration of the contamination and/or identify the specific substances or compounds comprising the contamination. Sampling is a critical component of the "preliminary assessment" (PA) conducted under OAR 340-122-0072 or the ASTM "Phase II" under E-1903;

(32) "Substantial Public Benefit" includes, but is not limited to:

(a) The generation of substantial funding or other resources facilitating remedial measures at the facility in accordance with OAR chapter 123, division 135;

(b) A commitment to perform substantial remedial measures at the facility in accordance with OAR chapter 123, division 135;

(d) Development of a facility by a governmental entity or nonprofit organization to address an important public purpose. Substantial Public Benefit has the meaning given in ORS 465.327(1)(d);

(e) Other meanings listed in the Fund's Program Guidelines;

(33) "Term Loan" means a loan to be paid over a period of years, usually ten (10) to fifteen (15), with a rate of interest;

(34) "Voluntary Cleanup Program" relates to ORS 465.325 and associated administrative rules.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.185 & 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 8-2001(Temp), f. & cert. ef. 11-15-01 thru 5-14-02; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02; EDD 3-2007(Temp), f. & cert. ef. 8-10-07 thru 2-5-08; Administrative correction 2-22-08; EDD 18-2008, f. & cert. ef. 6-4-08

123-135-0030

Applicant Eligibility

(1) Any person, non-profit, or municipality is eligible to make application to the Department for assistance from the Fund as long as they are not subject to any exclusion within OAR 123-135-0030.

(2) A person making application to the Fund is ineligible if the person has knowingly violated applicable laws or regulations or has knowingly violated or failed to comply with an order of the Department of Environmental Quality, if such action or inaction has resulted in one or more of the following:

(a) Contribution to or exacerbation of existing contamination at the facility;

(b) Release of hazardous substance at the facility; or

(3) Eligibility under OAR 123-135-0030 above shall be determined based on enforcement actions against the person by the Oregon Department of Environmental Quality.

(4) If the applicant is not the land owner and the site is owned by a person that is excluded by OAR 123-135-0030(2), the application will not be accepted unless the applicant provides documentation of the following in the application:

(a) The funded activities will facilitate a transfer in ownership of the site to a person not subject to the exclusion; and

(b) A demonstration of a past, present, or planned contribution by the landowner.

(5) An applicant who is a responsible party for a release of a hazardous substance or is liable for the cost of cleanup at the project site according to ORS 465.255, must provide some form of contribution to the project to be eligible.

(6) An applicant that makes willful misrepresentations regarding applicant eligibility on a Fund application may be subject to the sanctions described in OAR 123-135-0090.

(7) Applicant must have the authority and ability to enter into a contract with the Department.

(8) Other applicant eligibility requirements may be described in the Fund's Program Guidelines.

123-135-0040

Project Eligibility

(1) Projects may contain non-residential underground storage tanks. Superfund sites on the National Priorities List are not eligible. Reimbursable project activities include:

(a) Site investigation;

(b) Site sampling;

(d) The compilation of study data into a report;

(e) Feasibility study;

(f) Plan for remedial action or removal;

(g) Conduct a remedial action or removal at a site;

(h) Regulatory oversight fees;

(i) Any other activity described in the Fund's Program Guidelines.

(2) Projects on sites that contain or are proposed to contain privately owned single family residential dwelling(s) or privately owned multi-family dwelling(s) are not eligible unless the following applies: If only a portion of the site contains or will contain privately owned single family residential dwelling(s) or privately owned multi-family dwelling(s), the portion of the site that contains the eligible project(s) can receive sums from the Fund.

(3) The potential benefit to ineligible sites or project(s) must be minimal. The Department shall determine if any potential benefit to ineligible projects is minimal.

(4) Projects on sites that contain or are proposed to contain mixed use development such as a structure or structures that contain combined commercial and residential uses are eligible if:

(a) A written endorsement for the project from the local jurisdiction is included with the application;

(b) The project will provide a substantial public benefit; or

(5) The Department's Brownfields Redevelopment Coordinator will determine if a project will have substantial public benefit.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 285A.75(5) & 285A.110
Stats. Implemented: ORS 285A.185 & 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 8-2001(Temp), f. & cert. ef. 11-15-01 thru 5-14-02; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02; EDD 8-2006, f. 10-30-06, cert. ef. 10-31-06

123-135-0050

Application Requirements

(1) Applications that include site sampling and/or site characterization must discuss in their project description how the funded activities will contribute or lead to cleanup and/or redevelopment of the site.

(2) Applications that include a site characterization must discuss in the project description how the funded activities will contribute or lead to a remediation plan or a No Further Action Determination by the Oregon Department of Environmental Quality.

(3) Applications that include a remedial or removal action or plan must identify the proposed redevelopment use in the project description and must discuss how the proposed redevelopment use is attainable. Demonstration of attainability can be established by providing documentation such as, but not limited to:

(a) The proposed use is consistent with the local land use plan;

(b) There exists or will exist adequate service infrastructure at the site for the proposed use; or

(4) Applications that include a remedial or removal action or plan must discuss in the application how the plan or action will contribute to the proposed redevelopment. The Department may ask the applicant to demonstrate progress towards achieving the proposed redevelopment. Demonstration of progress can be established by providing documentation such as, but not limited to:

(a) Evidence of financing negotiations for the proposed redevelopment;

(b) Copies of pending permit applications required by the proposed redevelopment;

(d) Copies of a business plan or articles of incorporation;

(e) Site drawings or engineering plans; or

(f) Other documentation described in the Fund's Program Guidelines.

(5) Applications that include a remedial or removal action but do not identify a redevelopment use as described in OAR 123-135-0050(4) are eligible if the project is for capacity building. Written endorsement for the capacity building project must obtained from the local jurisdiction and included in the application if the applicant is not a municipality.

(6) Applications that include any remedial or removal action must include the following:

(a) A description of how the remedial or removal action will comply with state cleanup law;

(b) Any other documentation required by the Fund's Program Guidelines.

(7) The sum of funding requested in the Fund application must be consistent with the scope and scale of work in the project description compared with an industry custom standard. If the amount requested is inconsistent with the project description, the application may be rejected.

(8) If OAR 123-135-0030(4) or (5) applies, the necessary information regarding property transfer and/or contribution must also be included in the application.

123-135-0060

Application Processing

(1) Applications may be submitted to the Department at any time. The Department shall not process an incomplete Fund application. Applications are complete when the requirements of this Division and the Fund's Program Guidelines are met.

(2) The Department can waive application requirements in order to make an application completion determination if it is demonstrated that such a waiver would serve to further the goals and objectives of the Fund and would not violate any statutory requirements.

(3) The Department may request additional information not listed in this division or the Fund's Program Guidelines to facilitate application processing.

[Publications: Publications referenced are available from the agency.]

123-135-0070

Application Approval

(1) When evaluating an application, the Department shall consider the following:

(a) The extent to which real or perceived contamination prevents the property from being fully utilized;

(b) The need for providing public assistance, after considering the difficulty of obtaining financing from other sources or of obtaining financing at reasonable rates and terms;

(c) The degree to which redevelopment of the property provides opportunity for achieving protection of human health or the environment by reducing or eliminating the contamination of the property and for contributing to the economic health and diversity of the area;

(d) The probability of the success of the intended use or the degree to which redevelopment of the property provides a public purpose following remediation of the property;

(e) Compliance with the land use plan of the local government with jurisdiction over the property;

(f) Endorsement from the local government with jurisdiction over the property; and

(g) Other criteria described in the Fund's Program Guidelines.

(2) Applications are received on a first come, first served basis. In the event of a shortage of funds, priority will be given to projects that meet one or more of the following:

(a) The site is located in a distressed area as defined by OAR chapter 123, division 24;

(b) The site is located within a state or federal empowerment or enterprise zone or community or otherwise designated under those programs;

(c) The site is enrolled in the Department of Environmental Quality's Voluntary Cleanup Program, Prospective Purchaser Program, Independent Cleanup Pathway, Site Response Section, or any other program that demonstrates active involvement or oversight by that agency;

(d) The site is located in or is participating in any Environmental Protection Agency brownfields initiative including, but not limited to: Brownfield Assessment Grants, Supplemental Pilots, Targeted Brownfield Assessments, Cleanup Grants, or Brownfields Cleanup Revolving Loan Fund;

(e) The project will likely create above average income jobs in the manufacturing or traded sectors;

(f) The project will assist in the resolution of environmental justice concerns of the local community;

(g) The project has significant community involvement and participation;

(h) The project will result in a substantial public benefit;

(i) The project includes or is relatively certain to leverage other public or private funding; or

(j) Other criteria described in the Fund's Program Guidelines.

(3) The Department may conditionally approve funding of an application. Possible conditions include, but are not limited to:

(a) Requiring collateral or other security;

(b) Requiring a co-signer or guarantor;

(c) Enrolling in a Department of Environmental Quality oversight program or obtaining scope of work review from that agency;

(d) Obtaining an environmental insurance policy;

(e) Requiring some event to occur such as, but not limited to, a transfer of ownership of the site or approval of other funding; or

(f) Other conditions described in the Fund's Program Guidelines.

(4) If application approval is conditioned, the conditions will become part of the award contract. If appropriate, the Department may require the recipient to demonstrate or document how the conditions have or will be met before funds are disbursed in whole or in part.

(5) Complete applications will be reviewed by the Department for credit worthiness according to prudent lending practices.

(6) When making a grant to a municipality, the Department shall give priority to municipalities that provide matching funds from a loan under OAR chapter 123, division 135, from another source or from both.

(7) When making a grant to an entity that is not a municipality, the department shall require that:

(a) The recipient is not liable for the subject property under ORS 465.255, is a qualified non-profit organization, or has a valid Prospective Purchaser Agreement under ORS 465.327;

(b) The environmental action provides a substantial public benefit; and

(c) The recipient provides matching funds from a loan under OAR chapter 123, division 135, from another source or from both.

(8) The Department may request additional information from the applicant to facilitate a funding decision.

(9) The Department shall make a funding decision on a complete application in a timely manner.

(10) No more than sixtypercent (60%) of the total amount of the Fund in any biennium shall be awarded to persons who are liable with respect to the site under ORS 465.200. The sixty percent (60%) limitation will be calculated at the beginning of each biennium following, if applicable, the funding allocation to the Fund by the Commission. The limitation will be sixty percent (60%) of the total, non-obligated, funds available after the Commission allocation. Only awards to recipients that caused or contributed to the contamination at a site shall be included in the sixty percent (60%) calculation.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.185 & 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 8-2001(Temp), f. & cert. ef. 11-15-01 thru 5-14-02; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02; EDD 8-2006, f. 10-30-06, cert. ef. 10-31-06; EDD 3-2007(Temp), f. & cert. ef. 8-10-07 thru 2-5-08; Administrative correction 2-22-08; EDD 18-2008, f. & cert. ef. 6-4-08

123-135-0080

Loan Contract Conditions

(1) Loans do not require match and are not subject to fees.

(2) The annual interest rate for non-municipal loan recipients shall be based on the equivalent Bond Buyers Index published in The Bond Buyer. For municipal loan recipients, interest rates are based on market conditions for similar debt and are set at the time of the award.

(3) The Department may adjust the interest rate through a waiver for municipal and non-municipal loan recipients at the time of award based on subsidy need, credit risk, and other appropriate considerations.

(4) Interest accrual, repayment and disbursement schedules, and other necessary conditions shall be stated in the loan contract.

(5) Bridge loans shall be repaid within one (1) year from the beginning of loan disbursement.

(6) A bridge loan recipient may request a loan period extension of up to one (1) additional year. If a bridge loan is not repaid within the maximum one (1) or two (2) year period, a rate of interest may be applied from the date of contract closing on the full amount of the loan.

(7) A bridge loan recipient may convert to a term loan. If a loan is converted, a rate of interest shall be applied from the date of closing.

(8) In general, term loans shall be repaid within ten (10) to fifteen (15) years after the date of contract.

(9) A term loan recipient may request a loan period extension. The term loan recipient may make a request for a loan period extension at any time.

(10) A term loan may convert to a bridge loan with the approval of the Department as long as the maximum bridge loan term of two (2) years has not passed from the date of contract closing.

(11) If the project includes other funding in the form of loan(s) obtained from a financial institution, the Department may subordinate the Fund loan to the financial institution loan(s) if appropriate.

(12) The Department has the discretion to establish loan terms that differ from those enumerated in OAR chapter 123, division 135 as long as it furthers the goals and objectives of the program.

(13) Awards cannot exceed the final total project cost. For loan funded projects, the total loan amount shall not exceed the final total project cost.

(14) Other loan contract conditions described in the Fund's Program Guidelines or that are necessary to fulfill the goals and objectives of the Fund may be included in the Fund contract.

[Publications: Publications referenced are available from the agency.]

123-135-0087

Grant Contract Conditions

(1) Both municipal and non-municipal applicants are eligible for grants with some exceptions based on liability considerations.

(2) Non-municipal grant applicants that are potentially liable for the contamination under ORS 465.255 at the site receiving the environmental action are not eligible for grant funding unless they qualify as a non-profit organization or have purchased the site through the Prospective Purchaser Program (ORS 465.327).

(3) Non-municipal grant applicants are eligible for a grant only if the project will result in a substantial public benefit unless the non-municipal grant applicant is a qualified non-profit organization.

(4) Municipal grant applicants that are potentially liable for the contamination under ORS 465.255 at the site receiving the environmental action are eligible for grant funding. However, depending on the manner in which liability attached to the municipal grant applicant, an increase in grant match may be required.

(5) Qualifying non-profit organizations may apply for grants. Non-profit applicants that caused or contributed to the contamination at the site receiving the environmental action are not eligible for grants.

(6) All grant awards require some level of match.

(7) For municipal grant recipients, acceptable grant match includes cash, in-kind services, or other contributions of measurable value. For non-municipal grant applicants, match must be cash from funding sources other than grant awards from the Department unless otherwise indicated.

(8) For municipal grant recipients and projects located in or that benefit a designated economically distressed community, the grant match is ten percent (10%) of the total award. For municipal grant recipients and projects not located in or that do not benefit a designated economically distressed community, the grant match is twenty percent (20%) of the total award.

(9) Municipal applicants that are potentially liable because the municipality's conduct lead or contributed to the release of contamination at the site receiving the environmental action are subject to a one to one (1:1) or 100% of award match requirement.

(10) For qualifying non-profit organization grant recipients and projects located in or that benefit a designated economically distressed community, the grant match is ten percent (10%) of the total award. For qualifying non-profit organization grant recipients and projects not located in or that do not benefit a designated economically distressed community, the grant match is twenty percent (20%) of the total award. In addition to the other provisions of this division and the Fund's Program Guidelines that may apply, non-profit organization grant recipients may provide in-kind match.

(11) With exception to qualifying non-profit organization applicants, the match ratio for non-municipal grant recipients is one to one (1:1) or 100% of the total award. Match must be cash.

(12) Awards cannot exceed the final total project cost. For grant funded projects with a match ratio of one to one (1:1), the final grant award shall not exceed fifty percent (50%) of the total final project cost. For other grant funded projects, the final grant award may be reduced according to the Funds' Program Guidelines.

(13) Conditional grant awards may have conditions not listed in this Division or the Fund's Program Guidelines.

(14) If the environmental action at the site was funded with a grant other than a technical assistance grant as defined in the Fund's Program Guidelines, the grant award must be repaid with any net profits generated from the resale of the site if that sale occurs within five (5) years after the completion of the environmental action. The repayment amount is the lesser of either the net profits or the amount of the grant award. Net profits equal the difference between purchase price and resale price. In the case of properties resold by a county after property tax foreclosure, net profits equal the sale price minus any outstanding property taxes.

(15) Notwithstanding applicant and project eligibility, the amount of a grant award shall be based on the availability of grant funds at the time of the award. The grant capacity of the Fund is determined by the Department based on a percentage of biennial allocations. The Department has the discretion to make grant awards less than the amount requested in the application if it is necessary to ensure grant capacity until the next allocation to the Fund by the Commission.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 285A.75(5) & ORS 285A.110
Stats. Implemented: ORS 285A.185 & ORS 285A.188
Hist.: EDD 18-2002, f. & cert. ef. 12-10-02

123-135-0090

Sanctions

(1) If, at any time, it is discovered that the applicant or the project violates the applicant eligibility exclusions in OAR 123-135-0030 or the project eligibility exclusions in OAR 123-135-0040, the Department may impose sanctions.

(2) One or more of the following sanctions may be imposed by the Department:

(a) Bar a recipient from applying for future Fund assistance;

(b) Revoke an existing Fund award;

(d) Require return of unexpended funds;

(e) Demand immediate repayment of expended funds at a market based rate of interest;

(f) Withhold other state funds;

(g) Other remedies listed in the Fund contract or described in the Fund's Program Guidelines.

Stat. Auth.: ORS 285A.75(5) & ORS 285A.110
Stats. Implemented: ORS 285A.185 & ORS 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 18-2002, f. & cert. ef. 12-10-02

123-135-0100

Subsidies and Waivers

(1) The Department shall make available subsidies and waivers based on the following considerations which include, but are not limited to:

(a) The relationship between the project and the needs of the local community;

(b) The availability and/or the leveraging of other sources of funding;

(d) The recipient is a municipality;

(d) Recommendation of Department staff; or

(e) Other considerations described in the Fund's Program Guidelines.

(2) The Department has the discretion to waive interest charges or provide interest rate subsidies in the form of rate reductions and may grant any other form of waiver or subsidy within its authority.

(3) The department shall waive interest for all bridge loans. The department shall set an interest rate for a bridge loan at the time of application approval in the event the bridge loan becomes a term loan or is not repaid within the allowed time period.

(4) Applicants may request consideration for incentives in the Fund application. The Department shall rule on all incentive requests made in the Fund application at the time of application approval.

(5) Recipients may request consideration for incentives after application approval subject to any requirements described in the Fund's Program Guidelines.

(6) Determination of whether or not a project will result in a substantial public benefit will be made on a case-by-case basis by the Department's Brownfields Redevelopment Coordinator.

(7) The Department shall make available technical assistance grants. Technical assistance grants shall not be subject to financial review and are subject to the grant eligibility requirements of this Division. Any additional eligibility and processing requirements for technical assistance grants shall be described in the Fund's Program Guidelines.

(8) The Department may waive non-statutory requirements of this program if it is demonstrated such a waiver would serve to further the goals and objectives of the program.

Stat. Auth.: ORS 285A.75(5) & ORS 285A.110
Stats. Implemented: ORS 285A.185 & ORS 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02

123-135-0110

Consultation with Department of Environmental Quality

(1) In accordance with ORS 285A.188(4), the Department shall consult with the Department of Environmental Quality prior to the decision to approve an application.

(2) Once the application is determined complete, the Department shall provide to the Department of Environmental Quality the following information within fourteen (14) days:

(a) Applicant identification;

(b) Site location;

(d) Project description;

(e) Environmental service professional identification if applicable;

(f) Amount requested;

(g) A request for verification of applicant is not eligibility in accordance with ORS 285A.188(2) and OAR 123-135-0030(2) & (3); and

(h) Any other information described in the Fund's Program Guidelines.

(3) The Department expects the Department of Environmental Quality to return the requested verification within fourteen (14) business days, excluding public holidays. If the Department has not received verification within fourteen (14) days and has good-faith reasons to believe that the applicant is not ineligible, the Department may proceed with the processing of the application as long as it notifies the Department of Environmental Quality of its intent to proceed.

(4) Any recommendations or relevant comments from the Department of Environmental Quality that are submitted to the Department within a reasonable period of time shall be included as part of the application for consideration.

(5) Verification listed in OAR 123-135-0110(2)(g) will not be required if the property was purchased through the Prospective Purchaser Program (ORS 465.327).

Stat. Auth.: ORS 285A.75(5) & 285A.110
Stats. Implemented: ORS 285A.185 & 285A.188
Hist.: EDD 2-2001, f. & cert. ef. 2-1-01; EDD 10-2002(Temp), f. & cert. ef. 5-15-02 thru 11-11-02; Administrative correction 11-29-02; EDD 18-2002, f. & cert. ef. 12-10-02

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