California Code of Regulations › Title 4 - Business Regulations › Division 11 - California Pollution Control Financing Authority › Article 9 - California Recycle Underutilized Sites (Cal Reuse) Program › Subarticle 2 - Calreuse Remediation Program › Section 8102.6 - Infill Grant and Infill Loan Terms

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  terms and conditions of an Infill Grant or Infill Loan shall be set forth in an
				  Infill Grant Agreement or Infill Loan Agreement executed by the Grantee or
				  Borrower and shall include, at a minimum, all of the following terms and
				  conditions:
(1) A requirement that the
				  Grantee or Borrower will submit a letter from the Oversight Agency approving
				  the Cleanup Plan before any funds will be disbursed;
(2) A requirement that the first draw on the
				  funds be made within twelve (12) months of the execution of the Infill Grant
				  Agreement or Infill Loan Agreement;
(3) A requirement that all Remedial Work will
				  be completed and Completion of the Infill Development Project within the term
				  of the Infill Grant or Infill Loan, not to exceed six (6) years from the time
				  of the first draw;
(4) A provision
				  allowing the Strategic Partner to extend the term of the Infill Loan or Infill
				  Grant by as much as two years as set forth in Section
				  8102.8;
(5) Disbursement and repayment procedures
				  pursuant to Section
				  8102.7;
(6) A provision that any unused Infill Grant
				  or Infill Loan funds shall revert to the Authority at the end of the term of
				  the Infill Grant Agreement or Infill Loan Agreement;
(7) A certification by the Grantee or
				  Borrower that the Infill Development Project meets the eligibility requirements
				  of Section 8102.1(a) and a
				  description of the Infill Development Project that conforms to Section
				  8102.2(f)(2).
(8) Agreement that upon Completion of the
				  Infill Development Project the Grantee or Borrower will submit a Completed
				  Infill Development Project Report.
(9) Agreement to comply with the Authority's
				  program statutes and regulations;
(10) Agreement that the Grantee or Borrower
				  is and will remain for the term of the Infill Loan or Infill Grant in
				  compliance with all laws regulations and rules applicable to the
				  project.
(11) Agreement that the
				  Brownfield Infill Project and the Infill Development Project will comply with
				  the California Environmental Quality Act (Public Resources Code Sections
				  21000,
				  et seq.) and the State CEQA guidelines contained in Sections
				  15000, et seq. of Title 14 of the
				  California Code of Regulations.
(12) Agreement that the funds of the Infill
				  Loan or Infill Grant will be used only for Eligible Brownfield Infill Project
				  Costs as defined in Section
				  8102(f).
(13) Agreement that the Grantee or Borrower
				  will work with the Oversight Agency identified in the Infill Grant Agreement or
				  Infill Loan Agreement.
(14)
				  Certification that the Grantee or Borrower has and will maintain any and all
				  required insurance policies for the term of the Infill Loan or Infill
				  Grant.
(15) Agreement that the
				  Grantee or Borrower will defend, indemnify and hold harmless the Authority and
				  the State, and all officers, trustees, agents and employees of the same, from
				  and against any and all claims, losses, costs, damages, or liabilities of any
				  kind or nature, whether direct or indirect, arising from or relating to the
				  Infill Grant or Infill Loan, the Brownfield Infill Project, the Infill
				  Development Project or this program, including but not limited to, any and all
				  claims, losses, costs, damages, or liabilities arising from or related to the
				  presence, release, threatened release, investigation or remediation of
				  Hazardous Material of the Brownfield Infill Project;
(16) Agreement to comply with laws outlawing
				  discrimination including, but not limited to those prohibiting discrimination
				  because of sex, race, color, ancestry, religion, creed, national origin,
				  physical disability (including HIV and AIDS), mental disability, medical
				  condition (cancer or genetic characteristics), sexual orientation, political
				  affiliation, position in a labor dispute, age, marital status, and denial of
				  statutorily-required employment-related leave;
(17) Agreement that continued compliance with
				  program requirements is the responsibility of the Grantee or
				  Borrower;
(18) Agreement that the
				  Grantee or Borrower will timely provide all required reports and notices to the
				  Strategic Partner during the term of the Infill Loan or Infill Grant and until
				  Completion of the Infill Development Project;
(19) Agreement that the Grantee or Borrower
				  will provide or cause to be provided to the Strategic Partner a copy of the
				  Brownfield Remediation Final Report within 30 days of completion of the
				  Brownfield Remediation Final Report;
(20) Agreement that, except as provided by
				  Section 8102.6(a)(25)(F)
				  and Section
				  8102.6(a)(26),
				  Grantee or Borrower's failure to comply with any law, regulation or rule
				  applicable to the Brownfield Infill Project and Infill Development Project, or
				  failure to deliver any certification required by Section
				  8102.6 within the time period
				  required, will constitute an event of default under the Infill Grant or Infill
				  Loan Agreement.
(21) Agreement by
				  the Grantee or Borrower to comply with all applicable laws, including but not
				  limited to statutes, rules, regulations, administrative orders and agreements,
				  and judicial orders or consent decrees that apply to the Brownfield Infill
				  Project, related to or arising from assessment, characterization and
				  remediation of a Brownfield, including but not limited to those requiring the
				  preparation of a description of Hazardous Material on the Brownfield and those
				  requiring oversight and supervision to assure the adequacy of any Feasibility
				  Study, Remedial Investigation, Remedial Action Plan, or Remedial Work by the
				  Oversight Agency.
(22) Agreement
				  that upon being informed, or finding, that information supplied by the Grantee
				  or Borrower, any person acting on behalf of the Grantee or Borrower, or any
				  team member identified in the Infill Application, is false or no longer true,
				  and the Grantee or Borrower has not notified the Authority or the Strategic
				  Partner, the Authority may invoke the default provisions or false information
				  provisions, as it deems appropriate.
(23) Agreement that upon a finding by the
				  Strategic Partner or the Authority that the Borrower or Grantee has provided
				  false material information to the Strategic Partner or Authority may result in
				  any of the following:
(A) Acceleration of
				  repayment of the Infill Loan;
(B)
				  Conversion of the Infill Grant to an Infill Loan, and the possible accelerated
				  repayment of the Infill Loan;
(C) A
				  finding that the Borrower or Grantee is in default of its Infill Grant
				  Agreement or Infill Loan Agreement and may be subject to the provisions of
				  paragraph (a)(25);
(D) Notification
				  of state and local entities of Grantee or Borrower's provision of false
				  information; or
(E) The Borrower or
				  Grantee being ineligible for future financing under the CALReUSE
				  program.
(24) Provision
				  that the Borrower or Grantee will be deemed in default of its Infill Grant
				  Agreement or Loan Agreement under any of the following conditions:
(A) Failure of the Borrower or Grantee to
				  comply with the terms of the Infill Loan Agreement or Infill Grant
				  Agreement;
(B) Failure of the
				  Borrower or Grantee to complete the Infill Development Project, as described in
				  the Infill Grant Agreement or Infill Loan Agreement, within the term of the
				  Infill Grant Agreement or Infill Loan Agreement, including any extensions;
				  or
(C) Changes to the Infill
				  Development Project such that it no longer meets the eligibility
				  criteria.
(25) Agreement
				  that upon default, the Borrower(s) or Grantee(s) may be subject to one or more
				  of the following:
(A) A requirement that the
				  Borrower or Grantee repay the loan or grant plus 10% per annum becoming
				  immediately due and payable;
(B)
				  The Authority may inform other governmental agencies of the default;
(C) The Authority may consider the Borrower
				  or Grantee ineligible for future financing under the program;
(D) A requirement that the Borrower or
				  Grantee make a one time payment of up to 25 percent of the Infill Loan or
				  Infill Grant award; or
(E) The
				  Authority may waive any default upon a finding that it is in the public
				  interest and advances the purposes of the program.
(F) The immediate conversion of expended
				  Infill Grant funds becoming subject to the terms of an Infill Loan pursuant to
				  Section 8102.4 which may then be
				  immediately due and payable.
(G)
				  The Authority's seizure or un-encumbrance of any unexpected Infill Grant or
				  Infill Loan Funds.
(26) A
				  Provision that the Borrower or Grantee will have a reasonable opportunity to
				  cure before the Borrower or Grantee is deemed in default.
(27) A provision binding the Grantee to make
				  best efforts to collect from any Responsible Party and to convey any payments
				  received to refund the Infill Grant.
(28) Agreement that under the circumstances
				  that the Oversight Agency of the Brownfield Infill Project changes subsequent
				  to the approval of a financial award, the Grantee or Borrower will notify the
				  Strategic Partner and the Authority, and submit a revised Cleanup Plan prior to
				  receiving any additional funding under the Infill Loan Agreement or Infill
				  Grant Agreement.
(29) A requirement
				  that the Borrower or Grantee enter into a Regulatory Agreement or Recorded
				  Covenant with the Authority.
(30)
				  Any other provisions agreed to by the parties.