[Federal Register Volume 70, Number 208 (Friday, October 28, 2005)]
[Notices]
[Pages 62108-62109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21530]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-7989-9]
Comprehensive Environmental Response, Compensation and Liability
Act (CERCLA) or Superfund, Section 104(k); and CERCLA Section 104(d);
`` `Discounted Loans' Under Brownfields Revolving Loan Fund Grants''
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of the availability.
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SUMMARY: Pursuant to an October 17, 2005 Memorandum signed by Thomas P.
Dunne, Acting Assistant Administrator of EPA's Office of Solid Waste
and Emergency Response, Brownfields Revolving Loan Fund (RLF) grantees
may provide discounted loans in certain situations. RLF grants are
awarded to eligible entities provided in section 104(k)(1) of the
Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), to capitalize RLF's for brownfields cleanup. RLF grantees can
use their EPA grant funds for loans and subgrants, as well as other
eligible activities.
The Office of Solid Waste and Emergency Response provides this
policy in response to interest by RLF grantees awarded under CERCLA
section 104(k) in issuing discounted loans as part of their RLF
programs. Such loans were provided for in earlier policies that applied
to Brownfields Cleanup Revolving Loan Fund (BCRLF) grants awarded under
CERCLA section 104(d). BCRLF grants were awarded starting FY1997 to
FY2002, prior to the passage of the Small Business Liability Relief and
Brownfields Revitalization Act (Brownfields Law). Several BCRLF
grantees made discounted loans under CERCLA section 104(d) policies,
thereby achieving cleanup goals. However, with the signing of the
Brownfields Law, new RLF grants, awarded under 104(k) from FY2003
forward, were left with no provision for the use of discounted loans.
This policy meets this need, giving RLF grantees additional options to
achieve cleanup goals, in keeping with prudent lending practices.
ADDRESSES: Mailing addresses for U.S. EPA Regional Offices and U.S. EPA
Headquarters are provided in the Proposal Guidelines for Brownfields
Assessment, Revolving Loan Fund and Cleanup Grants. Obtaining Proposal
Guidelines: The proposal guidelines are available via the Internet:
http://www.epa.gov/brownfields. Copies of the Proposal Guidelines will
also be mailed upon request. Requests should be made by calling the
U.S. EPA Call Center at the following numbers: Washington, DC Metro
Area at 703-412-9810, Outside Washington, DC Metro at 1-800-424-9346,
TDD for the Hearing Impaired at 1-800-553-7672.
FOR FURTHER INFORMATION CONTACT: Call Alison Evans at the U.S. EPA's
Office of Solid Waste and Emergency Response, Office of Brownfields
Cleanup and Redevelopment, (202) 566-2777.
SUPPLEMENTARY INFORMATION: This policy supersedes all previous
memorandums and/or policies that address this practice for these
grantees. It applies to:
RLF grants awarded under CERCLA section 104(k),
BCRLF grants originally awarded under CERCLA section
104(d) that have transitioned to section 104(k) as provided in section
104(k)(3)(D), and,
BCRLF grants awarded under CERCLA section 104(d) that have
not transitioned.
RLF grantees may offer discounted loans (also called ``principal
forgiveness'') under the following conditions:
I. Borrowers for Discounted Loans
RLF grantees may offer discounted loans to those entities provided
in CERCLA section 104(k)(1) including states, political subdivisions,
and others, as well as nonprofit organizations.\1\ Private, for-profit
entities are not eligible for discounted loans.
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\1\ For the purposes of the brownfields grant program, EPA will
use the definition of nonprofit organizations contained in Section
4(6) of the Federal Financial Assistance Management Improvement Act
of 1999, Public Law 106-107, 31 U.S.C. 6101, Note. The term
``nonprofit organization'' means any corporation, trust,
association, cooperative, or other organization that is operated
mainly for scientific, educational, service, charitable, or similar
purpose in the public interest; is not organized primarily for
profit; and uses net proceeds to maintain, improve, or expand the
operation of the organization.
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II. Conditions for Individual Discounted Loans
For an individual loan, the amount of principal discounted may be
any percentage of the total loan amount up to 30 percent, provided that
the total amount of the principal forgiven shall not exceed $200,000.
For example, a loan of $600,000 may be discounted at 30 percent,
resulting in $180,000 in principal forgiven. However, a loan of
$800,000, could only be discounted at 25 percent, resulting in $200,000
in principal forgiven (any discount above 25 percent, in this case,
would result in more than $200,000 in principal forgiven, which is not
provided for under this policy). In addition to these terms, a
discounted loan may not be used in combination with a subgrant at a
single site.
III. Conditions for RLF Grant Management When Discounted Loans Are
Employed
For an RLF grant budget as a whole, the total dollar amount of
principal forgiven through discounted loans plus the amount subgranted
shall not exceed a total of 40% of RLF grant funds awarded.
Background
On January 11, 2002, President George W. Bush signed into law the
Small Business Liability Relief and Brownfields Revitalization Act.
This act amended the Comprehensive Environmental Response, Compensation
and Liability Act to authorize Federal financial assistance for
brownfields revitalization, including grants for assessment, cleanup,
and job training.
Funding for the brownfields grants is authorized under section
104(k) of the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, (CERCLA), 42 U.S.C. 9604(k).
Eligibility for brownfields assessment and revolving loan fund grants
is limited to ``eligible entities'' as defined in section 104(k)(1) of
CERCLA. These include a General Purpose Unit of Local Government; Land
Clearance Authority or other quasi-governmental entity that operates
under the supervision and control of, or as an agent of, a general
purpose unit of local government; Governmental Entity Created by State
Legislature; Regional council or group of general purpose units of
local government; Redevelopment Agency that is chartered or otherwise
sanctioned by a state; State; Indian Tribe other than in Alaska; and
Alaska Native Regional Corporation, Alaska Native Village Corporation,
and Metlakatla Indian Community. Eligibility for brownfields cleanup
grants is limited to ``eligible entities'' and nonprofits.
In addition, Intertribal Consortia, other than those composed of
ineligible Alaskan tribes, are eligible to apply for the brownfields
assessment, revolving loan fund, and cleanup grants. Coalitions of
eligible governmental
[[Page 62109]]
entities are eligible to apply for the brownfields revolving loan fund
grants, but only one member of the coalition may receive a cooperative
agreement.
Dated: October 24, 2005.
Linda Garczynski,
Director, Office of Brownfields Cleanup and Redevelopment, Office of
Solid Waste and Emergency Response.
[FR Doc. 05-21530 Filed 10-27-05; 8:45 am]
BILLING CODE 6560-50-P