[Federal Register Volume 62, Number 88 (Wednesday, May 7, 1997)]
[Notices]
[Pages 24915-24918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11905]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5822-7]
Comprehensive Environmental Response, Compensation and Liability
Act (CERCLA) or Superfund, Section 104; Announcement of Proposal
Guidelines for the Competition for the 1997 National Brownfields
Cleanup Revolving Loan Fund Demonstration Pilots
AGENCY: U.S. Environmental Protection Agency.
ACTION: Notice of Proposal Deadlines and Guidelines.
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SUMMARY: The Environmental Protection Agency's (EPA) Brownfields
Economic Redevelopment Initiative, is designed to empower states, local
governments, communities, and other stakeholders 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 will award Brownfields Cleanup Revolving Loan Fund
(BCRLF) Demonstration Pilots to states, cities, towns, counties,
territories, and Indian tribes to test brownfields cleanup revolving
loan fund models that direct special efforts toward facilitating
coordinated public and private efforts at the federal, state, and local
levels.
To date, the Agency has funded 78 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. Of those pilots, 39 are National Pilots selected under
criteria developed by EPA Headquarters and 39 are Regional Pilots
selected under EPA Regional criteria. (In 1997, EPA will announce 25
new National Pilots and at least 5 new Regional Pilots.)
For the 1997 fiscal year (FY97), only entities that have been
awarded National or Regional brownfields assessment pilots prior to
October 1995 will be eligible to apply to EPA's BCRLF demonstration
pilot program. Therefore, up to 29 BCRLF pilots may be awarded in FY97.
FY97 BCRLF Pilots will be selected by the National program. Unlike
brownfields assessment pilots, Regional offices will not independently
identify and select BCRLF pilots. The 29 eligible pilots are listed
below (sorted by EPA Region):
EPA Region 1: BRIDGEPORT, CT; BOSTON, MA
EPA Region 2: TRENTON, NJ; BUFFALO, NY; ROCHESTER, NY
EPA Region 3: BALTIMORE, MD; PHILADELPHIA, PA; PITTSBURGH, PA; CAPE
CHARLES, VA; RICHMOND, VA
EPA Region 4: BIRMINGHAM, AL; LOUISVILLE, KY; KNOXVILLE, TN
EPA Region 5: STATE OF ILLINOIS; WEST CENTRAL MUNICIPAL CONFERENCE, IL;
STATE OF INDIANA; INDIANAPOLIS, IN; DETROIT, MI; STATE OF MINNESOTA;
CUYAHOGA COUNTY (Cleveland), OH
EPA Region 6: NEW ORLEANS, LA; DALLAS, TX; LAREDO, TX
EPA Region 7: ST. LOUIS, MO
EPA Region 8: SAND CREEK CORRIDOR, CO; WEST JORDAN, UT
EPA Region 9: SACRAMENTO, CA;
EPA Region 10: OREGON MILLS, OR; DUWAMISH, WA
DATES: This action is effective immediately and expires on June 9,
1997. All proposals must be postmarked or sent to EPA via registered or
tracked mail by the expiration date cited above.
ADDRESSES: Proposal guidelines can be obtained by calling the Superfund
Hotline 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.
Guidelines may also be obtained by writing to: U.S. EPA--
Brownfields Application, Superfund Document Center 5201G, 401 M Street,
SW., Washington, DC 20460.
Copies of the Booklet are available via the Internet: http://
www.epa.gov/brownfields/
FOR FURTHER INFORMATION CONTACT: The Superfund Hotline, 800-424-9346.
SUPPLEMENTARY INFORMATION:
Submission to Congress and the General Accounting Office
Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report
containing this action and other required information to the U.S.
Senate, the U.S. House of Representatives and the Comptroller
[[Page 24916]]
General of the General Accounting Office prior to publication of the
action in today's Federal Register. This action is not a ``major rule''
as defined by 5 U.S.C. 804 (2).
The BCRLF pilots will be selected through an evaluation process.
Eligible entities must demonstrate: (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 29
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 $350,000), depending on the
proposal's responses to the evaluation criteria.
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 is a variant of a bond bank, in which a sponsoring entity (in
this case, EPA) provides capitalization funds to a managing entity (for
example, a municipality) that are used to make loans for authorized
purposes (brownfields cleanups). 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) 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, local political subdivisions and community
development organizations) for the purposes of cleaning up brownfields
sites that already have been assessed for contamination. Loan
repayments 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 following definitions will
be used throughout these proposal guidelines:
A Proposer is the state, political subdivision of a state
(for example, city, town, county), territory, 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 meets the
criteria and the proposer is selected by EPA to receive BCRLF Pilot
funding, the proposer will be requested to prepare a formal application
for a cooperative agreement.
A Cooperative Agreement is the document negotiated between
EPA and those proposers that EPA has selected as candidates to receive
BCRLF Pilot funding. The cooperative agreement will award federal funds
and outline the specific and standard terms and conditions to be met by
the recipient of the funds.
A Cooperative Agreement Recipient is the entity that
enters into the cooperative agreement with EPA, will receive the BCRLF
Pilot funding from EPA, and will be responsible for managing the funds,
ensuring proper environmental cleanups, and complying with applicable
laws and regulations.
--The Fund Manager is the cooperative agreement recipient or its
legally designated representative who will be responsible for ensuring
that the BCRLF is managed in conformance with the cooperative
agreement, applicable laws and regulations, and prudent cleanup and
lending practices.
--The Lead Agency is the cooperative agreement recipient or its legally
designated representative who will be responsible for ensuring that
environmental cleanups conducted using BCRLF Pilot funds are conducted
in conformance with the cooperative agreement, and federal and state
requirements.
--The Brownfields Site Manager is the person appointed by the
cooperative agreement recipient or lead agency to oversee cleanups at
specific sites.
The Borrower is the public or private entity that will
receive and repay loans from the BCRLF under terms and conditions
negotiated with the cooperative agreement recipient.
Legal and Program Guidelines for the Proposals
The BCRLF demonstration pilot program is funded under
Sec. 104(d)(1) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (CERCLA). BCRLF
pilot funds must be directed toward environmental response activities.
BCRLF funds may not be used to pay for non-environmental response
redevelopment activities (for example, construction of a new facility
or marketing of property). Use of BCRLF funds must be consistent with
CERCLA, and all CERCLA restrictions on use of funding also apply to
BCRLF pilot cooperative agreement recipients.
States, political subdivisions (including, cities, towns, and
counties), territories, and Indian tribes are eligible cooperative
agreement recipients. Proposals from coalitions among the 29 entities
eligible in FY97 are permitted to apply, but a single eligible entity
must be identified as the legal recipient. Cooperative agreement funds
will be awarded only to an eligible recipient, as described above.
The cooperative agreement recipient must act as, or designate, the
``lead agency.'' In turn, the ``lead agency'' must officially designate
a qualified environmental specialist as the ``brownfields site
manager'' who can ensure that any cleanup activities performed by the
borrower are consistent with federal and state requirements. The BCRLF
pilot proposals must conform to the following guidelines:
Eligible Brownfields Sites
Use of the BCRLF pilot funds are limited to brownfields
sites that have been determined to have an actual release or
substantial threat of a release of a hazardous substance which presents
a threat to public health or welfare, or the environment. 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. These funds may not
be used to pay for non-environmental redevelopment activities (for
example, new construction or property marketing).
However, 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 by federal
or state agencies within six months; or (3) where a federal or state
agency is planning or conducting a response or enforcement action.
BCRLF pilot funds may be loaned for activities at sites
that are: (1) currently publicly owned; (2) publicly owned, either
directly by a municipality or indirectly through a quasi-public entity
such as a community development corporation; (3) privately owned, with
clear means of recouping BCRLF pilot expenditures (for example, through
a guarantee by the owner's or developer's security interest or through
a lien on real property); or (4) undergoing purchase by a new party who
meets the definition of prospective purchaser.
[[Page 24917]]
The Borrower
A party which is determined to be a generator or
transporter of contamination at a brownfields site(s) is ineligible for
a BCRLF pilot loan for that same site.
The cooperative agreement recipient's lead agency may
initially find that an owner/operator of a brownfields site(s) is an
eligible borrower for a BCRLF pilot loan for that same site, only if:
the lead agency can determine that an owner/operator would fall under a
statutory exemption; 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). However, the initial findings made
by the lead agency by no means limit the enforcement discretion or
authority of the federal or state government. The lead agency must
maintain documentation demonstrating the eligibility of the owner/
operator.
Pre-Cleanup
BCRLF pilot funds may not be used to conduct environmental
response activities preliminary to cleanup, such as site assessment,
site identification, and site characterization. These funds have been
designated by EPA's Administrator for cleanup-related activities only.
The fund manager may, however, negotiate with the borrower a limit of
up to 10% of the total loan to cover both administrative and cleanup
response planning costs.
The cooperative agreement recipient must ensure the pre-
cleanup activities and cleanup planning conducted by the potential
borrower meet federal, state, and local requirements. The authorized
brownfields site manager must review and concur with the plans
submitted by the borrower before the fund manager issues the loan.
The cooperative agreement recipient's lead agency must
review the current site conditions and site evaluation information that
is required to be provided by the borrower to determine if the planned
cleanup action is appropriate.
--The site evaluation information must include pertinent facts about
the discharge or release, such as: its source and cause; the
identification of potentially responsible parties; the nature, amount,
and location of discharged or released materials; the probable
direction and time of travel of discharged or released materials; the
pathways to human and environmental exposure; the potential impact on
human health, welfare, and safety and the environment; the potential
impact on natural resources and property that may be affected;
priorities for protecting human health and welfare and the environment;
analysis of alternative cleanup options; and appropriate cost
documentation.
The cooperative agreement recipient must ensure adequate
documentation of the basis for the selection of the cleanup action
(including site evaluation information) and the decision to authorize
cleanup activities (including the decision to issue a loan). The lead
agency and the fund manager shall compile and maintain the
documentation including the data, analyses of site information, and
other documents that provide the basis for cleanup levels and
activities.
Cleanup Activities
The cooperative agreement recipient must ensure that
activities supported by BCRLF pilot funds are carried out consistent
with federal and state requirements. The brownfields site manager must
monitor the borrower's site activities for compliance with federal and
state environmental requirements. The brownfields site manager must
monitor the borrower's cleanup activities to determine that the cleanup
fully addresses the contamination. If the brownfields site manager
determines that the borrower's planned cleanup action is not sufficient
and the site requires additional action, the lead agency shall ensure
an orderly transition to the additional activities that ensure
protection of human health and the environment.
The lead agency must determine that a potential borrower's
proposed activities are consistent with removal activities authorized
by CERCLA. The lead agency must determine, on a site-by-site basis,
that a removal action is authorized by CERCLA. ``Removal'' is defined
in CERCLA Sec. 101(23); and descriptions of removal actions and their
requirements are included in 40 C.F.R. Sec. 300.415.
--The lead agency must set community relations standards that ensure
that the borrower's activities meet CERCLA public participation
requirements. This includes, among other things, required public notice
periods, availability of documents to the public, and the designation
of a spokesperson who shall inform the community of actions taken,
respond to inquiries, and provide information concerning the
activities.
--The lead agency must ensure that the borrower meets all federal and
state requirements for worker health and safety at the brownfields
cleanup site(s).
--If the release of the hazardous substance, pollutant or contaminant
involves damage to natural resources as defined under CERCLA, the lead
agency must ensure that the removal action plan coordinates with the
activities of the designated federal trustee agency.
The fund manager may allow the borrower to use BCRLF pilot
loan funds for site monitoring activities that are reasonable and
necessary during the cleanup process. Funds may be used to determine
the effectiveness of the cleanup, but may not be used for operation and
maintenance. BCRLF pilot funds may not be used for monitoring and data
collection necessary to apply for, or comply with, environmental
permits under other State and federal laws, unless such a permit is
required as a component of the cleanup action.
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 5% of the total award, to be determined during cooperative
agreement application 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).
BCRLF pilot funds may not be used at sites contaminated by
petroleum products except to address a co-mingled hazardous substance,
pollutant, or contaminant (for example, used oil). CERCLA expressly
excludes petroleum from the definition of hazardous substances.
Funding cannot be used to cleanup a naturally occurring
substance, products that are part of the structure of residential
buildings or business or community structures (for example, lead-based
paint contamination or asbestos), or public or private drinking water
supplies that have deteriorated through ordinary use, except as
[[Page 24918]]
determined, in consultation with EPA, on a site-by-site basis
consistent with CERCLA Sec. 104(A) (3) and (4).
The cooperative agreement recipient can not 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 agreements are governed by EPA's general
grant regulations (40 CFR Part 31) and regulations for cooperative
agreements under CERCLA Sec. 104(d) (40 CFR Part 35, Subpart C).
Evaluation of the Proposals
Evaluation Process
To ensure a fair evaluation process, EPA will convene a FY97 BCRLF
pilot evaluation panel consisting of EPA Regional and Headquarters
staff, Economic Development Administration (EDA) staff and other
federal agency representatives. The evaluation panel will assess how
well the proposals meet the criteria outlined below. The evaluation
panel's evaluations will be presented to EPA senior management for
final selection. The evaluations will include recommendations for the
number and size of the awards.
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 proposal best supports the intent of the pilot
program. Vague descriptions and unnecessary redundancy may reduce the
chance of a favorable rating. Proposers are encouraged to contact and,
if possible, meet with EPA Brownfields Coordinators (see Appendix C).
Cooperative Agreement Award Process
Upon determination of having been selected, proposers 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 proposers are notified, appropriate EPA Regional
Brownfields Coordinators and Regional Grants Specialists also will be
informed. The proposer then will be contacted by the Regional office
and asked to submit a formal cooperative agreement application package.
The information in the 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, an additional letter of support
will be required from the appropriate state or tribe as an attachment
to the cooperative agreement. In addition, as soon as the proposer is
notified of having been selected, 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.
Proposers that are not selected will be informed in writing. A
proposer may choose to revise the proposal for submittal by a deadline
announced by EPA at a later date.
Criteria for the Brownfields Cleanup Revolving Loan Fund Proposal
The proposal evaluation panels will review the proposals carefully
and assess each response based on how well it addresses the evaluation
criteria, briefly outlined below:
Threshold Criteria (Section A)
A. Ability to Manage a Revolving Loan Fund and Environmental Cleanups
Proposers must meet the threshold criterion--demonstrating an
ability to manage a revolving loan fund and environmental cleanups--to
be selected for a BCRLF Demonstration Pilot.
A.1. Demonstrate your legal authority to manage a revolving loan fund
and environmental cleanups (or demonstrate a firm plan to get authority
if provided with funding).
A.2. Demonstrate that you have an effective institutional structure in
place or planned. Specifically describe the roles of and relationships
between: (1) the potential cooperative agreement recipient; (2) the
proposed lead agency; (3) the proposed fund manager; and (4) the
brownfields site manager.
A.3. Describe your proposed BCRLF Pilot Financial Plan.
Evaluation Criteria (Sections B-E)
Those proposers that meet the threshold criterion will be evaluated
based on their responses to three evaluation criteria: (1)
demonstration of need; (2) commitment to creative leveraging of EPA
funds; (3) benefits of BCRLF pilot loans to the local community
criteria; 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.
B. Evaluation Criteria: Demonstration of Need
B.1. Problem Statement and Unique Needs of the Community
B.2. Description of Potential Borrowers and Property
B.3. Ability to Finance Cleanups
C. Evaluation Criteria: Commitment to Creative Leveraging of EPA Funds
C.1. Ability to Attract and Support Other Financing
C.2. Cash and In-Kind Contributions
C.3. Efficiency of Planned Administrative Structure
D. Evaluation Criteria: Benefits of BCRLF Loans to the Local Community
D.1. Announcement and Notification of BCRLF Fund Availability
D.2. Community Involvement in Future Land Reuse
D.3. Contribution to Community Economic Development Plans
D.4. Environmental Justice Benefits
D.5 Projected Sustainable Benefits
E. Evaluation Criteria: Long-Term Benefits and Sustainability
E.1. National Replicability
E.2. Measures of Success
Dated: April 22, 1997.
Linda Garczynski,
Director, Outreach and Special Projects Staff, Office of Solid Waste
and Emergency Response.
[FR Doc. 97-11905 Filed 5-6-97; 8:45 am]
BILLING CODE 6560-50-P
