California Department of Resources Recycling and Recovery (CalRecycle) 

Regulations: Title 14, Natural Resources Division 7, CIWMB

Chapter 10. Solid Waste Cleanup Program

Article 4. Loans to Local Governments

18905. Purpose.

(a) The Board may make loans directly from the trust fund to local government to assist in site remedial actions. The loans shall be used to assist the Board in complying with Public Resources Code section 48020 et seq.

(b) The regulations contained in this Article set forth the requirements to apply for and receive loan funds from the trust fund.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48021(b), Public Resources Code.


18906. Loan Eligibility.

(a) Loans are available only to local governments that demonstrate:

(1) The site remediation is needed to protect public health and safety and/or the environment; and

(2) The ability to repay the loan and to pay for costs of remediation that exceeds the loan amount.

(b) Loan funds may be used only for those eligible costs pursuant to Section 18904.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48021(b)., Public Resources Code.


18907. Loan Requirements.

Loans made pursuant to this Article shall be subject to the following requirements:

(a) The terms of any approved loan shall be specified in a loan agreement between the borrower and the Board. Notwithstanding any term of the agreement, any recipient of a loan that the Board approves shall repay the principal amount plus interest on the basis of the rate of return for money in the Surplus Money Investment Fund at the time of the loan.

(b) The Board shall not finance more than one million dollars ($1,000,000) per site.

(c) The term of any loan made pursuant to this Article shall be not more than 20 years.

(d) The money from any loan repayments and fees, including, but not limited to, principal and interest payments, fees and points, administrative fees, recovery of collection costs, income earned on any asset recovered pursuant to a loan default, and funds collected through foreclosure actions shall be deposited in the trust fund.

(e) The Board or the Department of Finance may audit the recipient’s records regarding moneys received pursuant to this Article.

Note:

Authority cited: Sections 40502 and 48025., Public Resources Code.
Reference: Sections 48027(c)(3)., Public Resources Code.


18908. Loan Application Process.

(a) Applications from local governments for loan funds shall be accepted on a continuous basis.

(b) Jurisdictions with eligible sites shall submit an application package which shall include but is not limited to the following information:

(1) A copy of the grant deed with legal description. The applicant must be the owner or co-owner of the site, or the Sponsor (e.g. Redevelopment Agency) of eligible cleanup of privately owned or leased lands within their jurisdiction.

(2) Substantiation of threat to public health and safety or the environment by attaching applicable regulatory agency investigation documents or enforcement orders, solid waste assessment tests (SWAT) reports, or certified environmental assessment reports.

(3) A detailed Scope of Work and Cost Estimate prepared by a registered civil engineer.

(4) A document showing compliance with the California Environment Quality Act (e.g. Notice of Exemption, Initial Study/Negative Declaration or Environment Impact Report).

(5) Demonstrate the need for the requested loan funds by attaching the applicant's annual financial operating statements for the last three years and interim (within 90 days) independent audits, and other evidence of financial condition. Each statement must be certified by the original signature of the person completing the application.

(6) Identify and provide evidence of sources of funds to repay the loan and pay for site cleanup costs that exceed the loan amount, certified by the original signature of the person completing the application. In lieu of collateral, the applicant must identify a guaranteed revenue source which will be dedicated to repay the loan.

(7) A copy of an adopted resolution from the governing board or council authorizing submittal of the application, certifying availability of local funds needed to complete the cleanup, and identifying the title and name of the individual authorized to execute any agreements, contract, and requests for payment to carry out the project.

(8) Applications from joint power authorities consisting of several cities and/or counties must include a signed copy of a written agreement between the governing bodies authorizing the loan applicant to act on their behalf.

(9) Name, address, telephone number, and fax number of the applicant

(c) All materials submitted shall become property of the Board and will be retained for a minimum of three years.

(d) Documents required in subsection (b) of this section shall be submitted to the principal place of business of the California Integrated Waste Management Board.

Note:

Authority cited: Section [add section numbers here], Public Resources Code.
Reference: Sections [add section numbers here], Public Resources Code.


18909. Preliminary Review of Loan Applications.

Upon receipt, Board staff shall review each local government application to determine whether the application is complete. Within thirty (30) days of receiving the application Board staff shall send a letter to the local government with one of the following responses:

(a) The local government application is incomplete with specification of the steps, if any, that the applicant may take to correct the identified deficiencies. Applications that fail to supply the required information shall be rejected from consideration for a loan; or

(b) The applicant is ineligible for a loan pursuant to Section 18906 of this Article; or

(c) The applicant is eligible for a loan pursuant to Section 18906 of this Article, the application is complete, and the application shall be evaluated by Board staff.

Note:

Authority cited: Sections 40502 and 48025., Public Resources Code.
Reference: Sections 48020-48028., Public Resources Code.


18910. Review of Complete Loan Applications and Board Approval.

Upon determination that an application is complete, Board staff shall review each application and prepare a summary of findings. Applications, which meet the following criteria shall be considered and a decision shall be made by the Board within ninety (90) days of the determination that the application is complete:

(a) The source of repayment is sufficient for the requested loan amount; and

(b) The applicant has adequately demonstrated the appropriateness of the loan for use in the project as specified pursuant to Section 18906(c) of this Article.

Note:

Authority cited: Sections 40502 and 48025., Public Resources Code.
Reference: Sections 48020-48028., Public Resources Code.


18911. Loan Agreement.

(a) If the Board approves the loan, the applicant and the Board shall enter into a written loan agreement that identifies and ensures compliance with the terms and conditions specified in Section 18907 of this Article and any other special conditions or terms that the Board deems necessary on a case-by-case basis.

(b) All funds shall be disbursed and repaid pursuant to the terms of the loan agreement.

(c) The borrower shall obtain prior written approval from the Board, or its designated representative, for any changes in the loan agreement. All requests shall include a description of the proposed change(s) and the reason(s) for the change(s).

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48020-48028, Public Resources Code.


18912. Financial Condition Notification.

(a) During the application process and any time thereafter, it shall be the responsibility of the applicant or borrower to immediately notify the Board of any change in financial condition that would make them:

(1) Financially able to perform remedial action without Trust Funds; or

(2) Unable to repay the loan; or

(3) Unable to pay for remedial action costs that exceed the loan amount.

(b) Any such changes in conditions or failure to notify the Board of any such changes in conditions may nullify eligibility for use of Trust Funds.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48020-48028, Public Resources Code.


Article 5. Grants to Public Entities to Abate Illegal Disposal Sites

18913. Purpose.

(a) The Board may make grants directly from the trust fund to public entities to assist in site remediation actions. Grants shall be used to assist the Board in complying with Public Resources Code section 48020 et seq.

(b) The regulations contained in this Article set forth the requirements to apply for and receive grant funds from the trust fund.

Note:

Authority cited: Sections 40502 and 48025., Public Resources Code.
Reference: Sections 48021(c), Public Resources Code.


18914. Grant Eligibility.

(a) Grants are available to public entities that demonstrate the following:

(1) The illegal disposal site remedial action is necessary to protect public health and safety and/or the environment; and

(2) The public entity is authorized by resolution of their local governments to file an application with the Board for grant funds and enter into and execute a grant agreement.

(b) Grants to public entities may only be used for remedial actions at illegal disposal sites within their jurisdiction.

(c) Grant funds may be used only for those eligible costs pursuant to Section 18904.

Note:

Authority cited: Sections 40502 and 48025., Public Resources Code.
Reference: Sections 48021(c), Public Resources Code.


18915. Grant Requirements.

Grants made pursuant to this Article shall be subject to the following requirements:

(a) The terms of any approved grant shall be specified in a grant agreement between the grant recipient and the Board.

(b) The Board shall not finance more than five hundred thousand dollars ($500,000) per site.

(c) The Board or the Department of Finance may audit the recipient’s records regarding moneys received pursuant to this Article.

Note:

Authority cited: Sections 40502 and 48025., Public Resources Code.
Reference: Sections 48027(c)(3), Public Resources Code.


18916. Grant Application Process.

(a) Applications for grant funds shall be accepted on a continuous basis.

(b) Public entities with eligible sites shall submit an application package which shall include but is not limited to the following information:

(1) Name of the site owner and a copy of the owner's grant deed with legal description.

(2) Substantiation of actual or potential threat to public health and safety or the environment by attaching applicable regulatory agency investigation documents or enforcement orders, solid waste assessment tests (SWAT) reports, or certified environmental assessment reports.

(3) Preliminary Work Plan and Cost Estimate prepared by a registered civil engineer. If local government resources to be reimbursed with grant funds are proposed for site cleanup, costs shall be determined in accordance with procedures in State Department of Transportation Standard Specifications Section 9-1.03, Force Account Payment, except that overhead and profit markups to direct cost of labor, materials, equipment or subcontractors will not be allowed.

(4) Proof of Compliance with the California Environmental Quality Act (e.g. Notice of Exemption, Initial Study/Negative Declaration, or Environmental Impact Report).

(5) Evidence of owner's inability to pay for cost of site cleanup (e.g. owner cannot be identified or found, owner is unable to pay for site cleanup). Attach a copy of report of records search, financial statements or audits of owner, and other documents to substantiate need.

(6) A copy of the adopted resolution from the governing board or council authorizing the public entity to file an application and enter into and execute a grant agreement, and naming the title of the individual authorized to execute any agreements, contracts, and requests for payment.

(7) Name, address, telephone number, fax number of the applicant.

All materials submitted shall become the property of the Board and will be retained for a minimum of three years.

(c) Documents required in subsection (b) shall be submitted to the principal place of business of the California Integrated Waste Management.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48020-48028, Public Resources Code.


18917. Preliminary Review of Grant Applications.

Upon receipt, Board staff shall review each application to determine whether the application is complete. Within thirty (30) days of receiving the application Board staff shall send a letter to the applicant with one of the following responses:

(a) The application is incomplete with specification of the deadline and steps, if any, which the applicant may take to correct the identified deficiencies. Following receipt of such notice, applicants that fail to supply the required information or meet any specified deadline shall be rejected from consideration for a grant.

(b) The applicant is ineligible for a grant based on failure to meet criteria under Section 18914 of this Article; or

(c) The applicant is eligible for a grant pursuant to Section 18914 of this Article, that the application is complete, and that the application shall be evaluated by Board staff.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48020-48028, Public Resources Code.


18918. Review of Complete Grant Applications and Board Approval.

Upon determination that an application is complete, Board staff shall review each application and prepare a summary of findings. Applications, which meet the following criteria, shall be considered and a decision shall be made by the Board within ninety (90) days of the determination that the application is complete:

(a) The Local Enforcement Agency shall provide ongoing inspection and enforcement action to prevent recurring use of the illegal disposal site;

(b) The applicant has adequately demonstrated the appropriateness of the grant for use in the project as specified pursuant to Section 18904 of this Chapter; and

(c) If the applicant is other than the Local Enforcement Agency, a copy of the complete application shall be sent to the Local Enforcement Agency's office.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48021(c), Public Resources Code.


18919. Grant Agreement.

(a) If the Board approves the grant, the applicant and the Board shall enter into a written grant agreement that identifies and ensures compliance with the terms and conditions specified in Section 18915 and any other special conditions or terms that the Board may deem necessary.

(b) All funds shall be disbursed pursuant to the terms of the grant agreement.

(c) The grant recipient must obtain prior written approval from the Board, or its designated representative, for any changes in the grant agreement. All requests must include a description of the proposed change(s) and the reason(s) for the change(s).

(d) The Board may terminate any grant in whole, or in part, at any time prior to the date of completion whenever it is determined by the Board that the recipient has failed to comply with the terms of the grant agreement. The Board shall notify the recipient in writing of the reasons for the termination of the grant and the effective date of the termination within five working days of the determination to terminate.

Note:

Authority cited: Sections 40502 and 48025, Public Resources Code.
Reference: Sections 48020-48028, Public Resources Code.

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