340-172-0070 Determination and Conditions of Financial Assistance (1) The Department shall determine the applicant’s financial assistance tier from: (a) Information provided in the application; (b) The financial ratios determined in accordance with OAR 340-172-0040(2) by a licensed public accountant; and (c) Tank ownership information available in the Department’s files or electronic database at the time of application. For purposes of financial need, tank ownership shall include all tanks at all facility locations with the same legal ownership such as sole proprietor, joint ventures, partnerships, corporations or other similar business ownerships. In the case of corporations, tank ownership shall include all tanks at all facility locations owned by parent corporations and all wholly owned subsidiaries of the parent corporation. (2) The Department shall award financial assistance to an applicant in accordance with these rules and OAR 340, divisions 174, 175, 176, and 178 where the applicant meets the following financial assistance tier criteria: (a) Tier 1: Own or responsible for one or more USTs holding or that previously held an accumulation of motor fuel for resale; (b) Tier 2: (A) Own or responsible for 100 or more USTs holding or that previously held an accumulation of motor fuel for resale; and (B) Meet two or more of the financial assistance criterion in section (3) of this rule. (c) Tier 3: (A) Own or responsible for one to 99 USTs holding or that previously held an accumulation of motor fuel for resale; and (B) Either: (i) Meet two or more of the financial assistance criterion in section (3) of this rule; or (ii) Meet the Tier 4 location requirements described in paragraph (2)(d)(C) of this rule. (d) Tier 4: (A) Own or responsible for one to 12 USTs holding or that previously held an accumulation of motor fuel for resale; and (B) Meet two or more of the financial assistance criteria in section (3) of this rule; and (C) The retail facility meets the criteria in one of subparagraph (i), (ii), (iii), or (iv) of this paragraph: (i) The only retail facility with UST holding or that previously held an accumulation of motor fuel for resale within a city listed in the 1993/1994 Oregon Blue Book; (ii) The retail facility filing the first application within a city listed in the 1993/1994 Oregon Blue Book where a retail facility is not presently reselling motor fuel from an UST holding an accumulation of motor fuel; (iii) The only retail gas sales facility in a city listed in the 1993/1994 Oregon Blue Book with other retail facilities within the city; (iv) If outside a city listed in the 1993/1994 Oregon Blue Book, the retail facility is nine miles or more from a retail gas sales facility measured in accordance with subparagraph (v) of this paragraph; (v) The distance shall be the shortest distance in any direction between facilities. The distance shall be measured between the nearest public driveway entrance of each facility over the shortest distance on a public road. Distances shall be rounded upward to the nearest tenth mile. The adjacent retail gas sales facility may be inside or outside a city. The Department may verify the distance where the distance measured by the applicant is between nine and ten miles. Measurements by the Department shall be the final distance determination. (3) Financial need criteria: (a) The Current Ratio (CR) is less than or equal to 1.60; (b) The Debt to Equity Ratio (DE) is greater than or equal to 1.60; (c) The Debt Service Coverage Ratio (DSC) is less than or equal to 3.20. (4) The Department may reconsider an award of financial assistance where: (a) The applicant has requested reconsideration of the award, in writing; (b) UST project work including soil or groundwater cleanup has started; (c) A Tier of greater financial assistance is available for the facility; (d) The lender indicates the applicant can borrow additional monies necessary to complete the newly identified corrective action work; (e) The Department determines the estimated soil and groundwater cleanup costs are appropriate and exceed $40,000 (at least $5,000 above the $35,000 included for the initial financial need evaluation); and (f) The applicant has provided a new determination of the financial ratios in accordance with OAR 340-172-0040(2), where the estimated corrective action costs above $35,000 are added to the UST project work at the facility. (5) An award of financial assistance under these rules requires: (a) Department approval, where applicable, of the: (A) Completed application; (B) Site assessment conducted under OAR 340-172-0050; (C) Corrective action plan required by OAR 340-122-0250; (D) Estimated eligible costs; and (E) Time schedule for completing the work. (b) That the USTCCA fund has sufficient money allocated to the program from which financial assistance is requested; and (c) That the financial assistance requested does not exceed the financial assistance limits at OAR 340, divisions 172, 174, 175, 176, and 178. (6) The Department may include conditions in an award of financial assistance, requiring the applicant to: (a) Conduct work within a Department established time schedule where the USTCCA Fund cannot fund the UST project work as scheduled by the applicant; (b) Submit progress reports or payment records at stated intervals before disbursement of grant funds; (c) Allow Department personnel to enter and inspect the project site at reasonable times; (d) Maintain project accounts and records to support the eligibility of expenditures; the records must clearly separate eligible and ineligible project costs; (e) Obtain all titles and easements necessary to provide authority to complete the proposed project; and (f) Comply with other terms and conditions necessary to ensure the project is completed in accordance with the approved plans. Statutory/Other Authority: OL 1993 & Ch. 661 Statutes/Other Implemented: OL 1991 & Ch. 863 History: DEQ 13-2019, amend filed 05/16/2019, effective 05/16/2019 DEQ 8-1994, f. & cert. ef. 3-22-94 DEQ 14-1992, f. & cert. ef. 6-11-92 DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91