415 ILCS 5/58.15
2021 Illinois Compiled Statutes|Chapter 415 - ENVIRONMENTAL SAFETY|415 ILCS 5/ - Environmental Protection Act.|Title XVII - Site Remediation Program

Sec. 58.15. Brownfields Programs.   (A) Brownfields Redevelopment Loan Program.(a) The Agency shall establish and administer a revolving loan program to  be known as the "Brownfields Redevelopment Loan Program" for the purpose of  providing loans to be used for site investigation, site remediation, or both,  at brownfields sites.  All principal, interest, and penalty payments from loans  made under this subsection (A) shall be deposited into the  Brownfields Redevelopment  Fund and reused in accordance with this Section.(b) General requirements for loans:(1) Loans shall be at or below market interest rates     in accordance with a formula set forth in regulations promulgated under subdivision (A)(c) of this subsection (A).(2) Loans shall be awarded subject to availability of     funding based on the order of receipt of applications satisfying all requirements as set forth in the regulations promulgated under subdivision (A)(c) of this subsection (A).(3) The maximum loan amount under this subsection (A)     for any one project is $1,000,000.(4) In addition to any requirements or conditions     placed on loans by regulation, loan agreements under the Brownfields Redevelopment Loan Program shall include the following requirements:(A) the loan recipient shall secure the loan         repayment obligation;(B) completion of the loan repayment shall not         exceed 15 years or as otherwise prescribed by Agency rule; and(C) loan agreements shall provide for a         confession of judgment by the loan recipient upon default.(5) Loans shall not be used to cover expenses     incurred prior to the approval of the loan application.(6) If the loan recipient fails to make timely     payments or otherwise fails to meet its obligations as provided in this subsection (A) or implementing regulations, the Agency is authorized to pursue the collection of the amounts past due, the outstanding loan balance, and the costs thereby incurred, either pursuant to the Illinois State Collection Act of 1986 or by any other means provided by law, including the taking of title, by foreclosure or otherwise, to any project or other property pledged, mortgaged, encumbered, or otherwise available as security or collateral.(c) The Agency shall have the authority to enter into any contracts or  agreements that may be necessary to carry out its duties or responsibilities  under this subsection (A).  The Agency shall have the authority  to promulgate  regulations setting forth procedures and criteria for administering the  Brownfields Redevelopment Loan Program.  The regulations promulgated by the  Agency for loans under this subsection (A) shall include, but  need not be limited to,  the following elements:(1) loan application requirements;(2) determination of credit worthiness of the loan     applicant;(3) types of security required for the loan;(4) types of collateral, as necessary, that can be     pledged for the loan;(5) special loan terms, as necessary, for securing     the repayment of the loan;(6) maximum loan amounts;(7) purposes for which loans are available;(8) application periods and content of applications;(9) procedures for Agency review of loan     applications, loan approvals or denials, and loan acceptance by the loan recipient;(10) procedures for establishing interest rates;(11) requirements applicable to disbursement of loans     to loan recipients;(12) requirements for securing loan repayment     obligations;(13) conditions or circumstances constituting default;(14) procedures for repayment of loans and delinquent     loans including, but not limited to, the initiation of principal and interest payments following loan acceptance;(15) loan recipient responsibilities for work     schedules, work plans, reports, and record keeping;(16) evaluation of loan recipient performance,     including auditing and access to sites and records;(17) requirements applicable to contracting and     subcontracting by the loan recipient, including procurement requirements;(18) penalties for noncompliance with loan     requirements and conditions, including stop-work orders, termination, and recovery of loan funds; and(19) indemnification of the State of Illinois and the     Agency by the loan recipient.(d) Moneys in the Brownfields Redevelopment Fund may be used as a source  of revenue or security for the principal and interest on revenue or general  obligation bonds issued by the State or any political subdivision or  instrumentality thereof, if the proceeds of those bonds will be deposited  into the Fund.  (B) Brownfields Site Restoration Program.(a)(1) The Agency must establish and administer a  program for the payment of remediation costs to be known as the Brownfields  Site Restoration Program.  The Agency, through  the Program, shall provide  Remediation Applicants with financial assistance for the investigation and  remediation of abandoned or underutilized properties.  The investigation and  remediation shall be performed in accordance with this Title XVII of this Act.(2) For each State fiscal year in which funds are made available to the  Agency for payment under this subsection (B), the Agency must,  subject to the availability of funds, allocate 20% of the  funds to be available to Remediation Applicants within counties with  populations over 2,000,000.  The  remaining funds must be made available to all other Remediation Applicants in  the State.(3) The Agency must not approve payment in excess of $750,000 to a  Remediation Applicant for remediation costs incurred at a remediation site.  Eligibility must be determined based on a minimum capital investment in the  redevelopment of the site, and payment amounts must not exceed the net  economic benefit to the State of the remediation project.  In addition to these  limitations, the total payment to be made to an applicant must not exceed an  amount equal to 20% of the capital investment at the site.(4) Only those remediation projects for which a No Further Remediation  Letter is issued by the Agency after December 31, 2001 are eligible to  participate in the Brownfields Site Restoration Program.  The program does not  apply to any sites that have received a No Further Remediation Letter prior to  December 31, 2001 or for costs incurred prior to the Agency approving a  site eligible for the Brownfields Site Restoration Program.(5) Brownfields Site Restoration Program funds shall be subject to  availability of funding and distributed based on the order of receipt of  applications satisfying all requirements as set forth in this Section.(b) Prior to applying to the Agency for payment, a Remediation Applicant  shall first submit to the  Agency its proposed remediation costs. The Agency shall make a  pre-application assessment, which is not to be binding upon future review of the project, relating  only to whether the Agency has adequate funding to  reimburse the applicant for the remediation costs if the applicant is found to  be eligible for reimbursement of remediation costs. If the Agency determines  that it is likely to have adequate funding to reimburse the applicant for  remediation costs, the Remediation Applicant may then submit to the Agency   an  application for review of eligibility.  The Agency must review the  eligibility application to determine whether the Remediation Applicant is  eligible for the payment.  The application must be on forms prescribed and  provided by the Agency.  At a minimum,  the application must include the  following:(1) Information identifying the Remediation Applicant     and the site for which the payment is being sought and the date of acceptance into the Site Remediation Program.(2) Information demonstrating that the site for which     the payment is being sought is abandoned or underutilized property.  "Abandoned property" means real property previously used for, or that has the potential to be used for, commercial or industrial purposes that reverted to the ownership of the State, a county or municipal government, or an agency thereof, through donation, purchase, tax delinquency, foreclosure, default, or settlement, including conveyance by deed in lieu of foreclosure; or privately owned property that has been vacant for a period of not less than 3 years from the time an application is made to the Agency. "Underutilized property" means real property of which less than 35% of the commercially usable space of the property and improvements thereon are used for their most commercially profitable and economically productive uses.(3) Information demonstrating that remediation of the     site for which the payment is being sought will result in a net economic benefit to the State of Illinois.   The "net economic benefit" must be determined based on factors including, but not limited to, the capital investment, the number of jobs created, the number of jobs retained if it is demonstrated the jobs would otherwise be lost, capital improvements, the number of construction-related jobs, increased sales, material purchases, other increases in service and operational expenditures, and other factors established by the Agency. Priority must be given to sites located in areas with high levels of poverty, where the unemployment rate exceeds the State average, where an enterprise zone exists, or where the area is otherwise economically depressed as determined by the Agency.(4) An application fee in the amount set forth in     subdivision (B)(c) for each site for which review of an application is being sought.(c) The fee for eligibility reviews conducted by the Agency under this subsection (B) is $1,000 for each site  reviewed.  The  application fee must be made payable to the Agency   for deposit into the Brownfields Redevelopment Fund. These application fees shall be used by the Agency    for administrative expenses incurred under this subsection (B).(d) Within 60 days after receipt by the Agency of an application meeting  the requirements of subdivision (B)(b), the Agency must issue a letter to the  applicant approving the application, approving the application with  modifications, or disapproving the application.  If the application is  approved or approved with modifications, the Agency's letter must also  include its determination of the  "net economic benefit" of the remediation project and the maximum amount of the  payment to be made available to the applicant for remediation costs.  The  payment by the Agency under this subsection (B) must not exceed  the "net economic  benefit" of the remediation project.(e) An application for a review of remediation costs must not be submitted  to the Agency unless the Agency has  determined the Remediation Applicant is  eligible under subdivision (B)(d).  If the Agency has determined that a  Remediation Applicant is eligible under subdivision (B)(d),  the Remediation  Applicant may submit an application for payment to the Agency under this  subsection (B).  Except as provided in subdivision (B)(f),  an  application for  review of remediation costs must not be submitted until a No Further  Remediation Letter has been issued by the Agency and recorded in the chain of  title for the site in accordance with Section 58.10.  The Agency must review  the application to determine whether the costs submitted are remediation costs  and whether the costs incurred are reasonable.  The application must be on  forms prescribed and provided by the Agency.  At a minimum, the application  must include the following:(1) Information identifying the Remediation Applicant     and the site for which the payment is being sought and the date of acceptance of the site into the Site Remediation Program.(2) A copy of the No Further Remediation Letter with     official verification that the letter has been recorded in the chain of title for the site and a demonstration that the site for which the application is submitted is the same site as the one for which the No Further Remediation Letter is issued.(3) A demonstration that the release of the regulated     substances of concern for which the No Further Remediation Letter was issued was not caused or contributed to in any material respect by the Remediation Applicant.  The Agency must make determinations as to reimbursement availability consistent with rules adopted by the Pollution Control Board for the administration and enforcement of Section 58.9 of this Act.(4) A copy of the Agency's letter approving     eligibility, including the net economic benefit of the remediation project.(5) An itemization and documentation, including     receipts, of the remediation costs incurred.(6) A demonstration that the costs incurred are     remediation costs as defined in this Act and rules adopted under this Act.(7) A demonstration that the costs submitted for     review were incurred by the Remediation Applicant who received the No Further Remediation Letter.(8) An application fee in the amount set forth in     subdivision (B)(j) for each site for which review of remediation costs is requested.(9) Any other information deemed appropriate by the     Agency.(f) An application for review of remediation costs may be submitted to the  Agency prior to the issuance of a No Further Remediation Letter if the  Remediation  Applicant has a Remedial Action Plan approved by the Agency under  the terms of which the Remediation Applicant will remediate groundwater for  more than one year.  The Agency must review the application to determine  whether the costs submitted are remediation costs and whether the costs  incurred are reasonable.  The application must be on forms prescribed and  provided by the Agency.  At a minimum, the application must include the  following:(1) Information identifying the Remediation Applicant     and the site for which the payment is being sought and the date of acceptance of the site into the Site Remediation Program.(2) A copy of the Agency letter approving the     Remedial Action Plan.(3) A demonstration that the release of the regulated     substances of concern for which the Remedial Action Plan was approved was not caused or contributed to in any material respect by the Remediation Applicant.  The Agency must make determinations as to reimbursement availability consistent with rules adopted by the Pollution Control Board for the administration and enforcement of Section 58.9 of this Act.(4) A copy of the Agency's letter approving     eligibility, including the net economic benefit of the remediation project.(5) An itemization and documentation, including     receipts, of the remediation costs incurred.(6) A demonstration that the costs incurred are     remediation costs as defined in this Act and rules adopted under this Act.(7) A demonstration that the costs submitted for     review were incurred by the Remediation Applicant who received approval of the Remediation Action Plan.(8) An application fee in the amount set forth in     subdivision (B)(j) for each site for which review of remediation costs is requested.(9) Any other information deemed appropriate by the     Agency.(g) For a Remediation Applicant seeking a payment under subdivision  (B)(f),  until the Agency issues a No Further Remediation Letter for the site, no more  than 75% of the allowed payment may be claimed by the Remediation Applicant.  The remaining 25% may be claimed following the issuance by the Agency of a  No Further Remediation Letter for the site.  For a Remediation Applicant  seeking a payment under subdivision (B)(e), until the  Agency issues a No Further  Remediation Letter for the site, no payment may be  claimed by the Remediation Applicant.(h)(1) Within 60 days after receipt by the Agency of an application  meeting the requirements of subdivision (B)(e) or (B)(f),  the Agency must issue a  letter to the applicant approving, disapproving, or modifying the remediation  costs submitted in the application.  If an application is disapproved or  approved with modification of remediation costs, then the Agency's letter must  set forth the reasons for the disapproval or modification.(2) If a preliminary review of a budget plan has been obtained under  subdivision (B)(i), the Remediation Applicant may submit, with the application  and  supporting documentation under subdivision (B)(e) or (B)(f), a copy of the  Agency's  final determination accompanied by a certification that the actual remediation  costs incurred for the development and implementation of the Remedial Action  Plan are equal to or less than the costs approved in the Agency's final  determination on the budget plan.  The certification must be signed by the  Remediation Applicant and notarized.  Based on that submission, the Agency is  not required to conduct further review of the costs incurred for development  and implementation of the Remedial Action Plan and may approve costs as  submitted.(3) Within 35 days after receipt of an Agency letter disapproving or  modifying an application for approval of remediation costs, the Remediation  Applicant may appeal the Agency's decision to the Board in the manner provided  for the review of permits in Section 40 of this Act.(i)(1) A Remediation Applicant may obtain a preliminary review of  estimated remediation costs for the development and implementation of the  Remedial Action Plan by submitting a budget plan along with the Remedial  Action Plan.  The budget plan must be set forth on forms prescribed and  provided by the Agency and must include, but is not limited to, line item  estimates of the costs associated with each line item (such as personnel,  equipment, and materials) that the Remediation Applicant anticipates will be  incurred for the development and implementation of the Remedial Action Plan.  The Agency must review the budget plan along with the Remedial Action Plan to  determine whether the estimated costs submitted are remediation costs and  whether the costs estimated for the activities are reasonable.(2) If the Remedial Action Plan is amended by the Remediation Applicant  or  as a result of Agency action, the corresponding budget plan must be revised  accordingly and resubmitted for Agency review.(3) The budget plan must be accompanied by the applicable fee as set  forth  in subdivision (B)(j).(4) Submittal of a budget plan must be deemed an automatic 60-day  waiver of the Remedial Action Plan review deadlines set forth in this  subsection (B)  and rules adopted under this subsection (B).(5) Within the applicable period of review, the Agency must issue a  letter  to the Remediation Applicant approving, disapproving, or modifying the  estimated remediation costs submitted in the budget plan.  If a budget plan is  disapproved or approved with modification of estimated remediation costs, the  Agency's letter must set forth the reasons for the disapproval or modification.(6) Within 35 days after receipt of an Agency letter disapproving or  modifying a budget plan, the Remediation Applicant may appeal the Agency's  decision to the Board in the manner provided for the review of permits in  Section 40 of this Act.(j) The fees for reviews conducted by the Agency under this subsection (B)  are in  addition to any other fees or payments for Agency services rendered pursuant to  the Site Remediation Program and are as follows:(1) The fee for an application for review of     remediation costs is $1,000 for each site reviewed.(2) The fee for the review of the budget plan     submitted under subdivision (B)(i) is $500 for each site reviewed.The application fee and the fee for the review of the budget plan must be  made payable to the State of Illinois, for  deposit into the Brownfields Redevelopment Fund.(k) Moneys in the Brownfields Redevelopment Fund may be used for the  purposes of this Section, including payment for the costs of  administering this subsection (B).  Any moneys remaining in the Brownfields Site Restoration Program Fund on the  effective date of this amendatory Act of the 92nd General Assembly shall be  transferred to the Brownfields Redevelopment Fund.  Total payments made to all Remediation Applicants by the Agency for purposes of  this subsection (B) must not exceed $1,000,000 in State fiscal year 2002.(l) The Agency is authorized to enter into any  contracts  or  agreements that may be necessary to carry out the Agency's duties and responsibilities  under this subsection (B).(m) Within 6 months after the effective date of this amendatory Act of  2002,  the Department of Commerce and Community Affairs (now Department of Commerce and Economic Opportunity) and the Agency must propose  rules prescribing procedures and  standards for the administration of this subsection (B).  Within 9 months after  receipt of the proposed rules, the Board shall adopt on second notice, pursuant  to Sections 27 and 28 of this Act and the Illinois Administrative Procedure  Act, rules that are consistent with this subsection (B).  Prior to the  effective date  of rules adopted under this subsection (B), the Department of Commerce and   Community  Affairs (now Department of Commerce and Economic Opportunity)  and the Agency may conduct  reviews of applications under this subsection (B) and the Agency is further  authorized  to distribute guidance documents on costs that are eligible or ineligible as  remediation costs.  (Source: P.A. 102-444, eff. 8-20-21.)