brownfields revolving loan fund rlf 101 presentation n.
Skip this Video
Loading SlideShow in 5 Seconds..
Brownfields Revolving Loan Fund (RLF) 101 Presentation PowerPoint Presentation
Download Presentation
Brownfields Revolving Loan Fund (RLF) 101 Presentation

Loading in 2 Seconds...

play fullscreen
1 / 59

Brownfields Revolving Loan Fund (RLF) 101 Presentation - PowerPoint PPT Presentation

  • Uploaded on

Brownfields Revolving Loan Fund (RLF) 101 Presentation. EPA Regions 8, 9, and 10 February 5, 2009. Overview. Setting up RLF Team Roles and Responsibilities Marketing RLF Financial Management Site and Applicant Eligibility Eligible Use of Funds EPA Review and Approval Roles.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Brownfields Revolving Loan Fund (RLF) 101 Presentation' - kura

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
brownfields revolving loan fund rlf 101 presentation

Brownfields Revolving Loan Fund (RLF) 101 Presentation

EPA Regions 8, 9, and 10February 5, 2009

  • Setting up RLF Team Roles and Responsibilities
  • Marketing
  • RLF Financial Management
  • Site and Applicant Eligibility
  • Eligible Use of Funds
  • EPA Review and Approval Roles

Site testing and sampling at the Las Vegas, NV Armory Site.

overview cont d
Overview, cont’d

Cross-Cutting Requirements

Record-Keeping and Reporting

Program Income Tracking

Amendments and RLF Policies

Supplemental Funding


four key roles in rlf program
Four Key Roles in RLF Program
  • EPA Project Officer
  • RLF Recipients (Grantee)
  • Borrowers
  • Sub-grantees

Three-tiered process

Setting up RLF Team Roles and Responsibilities

epa s role
EPA's Role
  • Provide technical assistance
  • Assist in review of documents
  • Approve site and borrower eligibility
  • Monitor financial, environmental, and periodic progress reports
  • Monitor program and ensure compliance with cooperative agreement

Setting up RLF Team Roles and Responsibilities

rlf recipient grantee
RLF Recipient (Grantee)
  • Administer RLF program - create RLF program manager/coordinator role
  • Ensure compliance with terms and conditions
    • Environmental cleanup
    • Financial management
    • Compliance with federal, state, local laws

The Villa Italia Mall in Colorado.

Setting up RLF Team Roles and Responsibilities

rlf recipient grantee1
RLF Recipient (Grantee)
  • Fulfill two key roles
    • Fund Manager
    • Qualified Environmental Professional (QEP)

Setting up RLF Team Roles and Responsibilities

rlf two key roles
RLF Two Key Roles
  • Fund Manager
    • Establish criteria for selecting borrowers and sub-grantees
    • Ensure prudent lending practices are used
    • Establish methods of payment and disbursement
    • Adhere to eligible cost requirements
    • Ensure cost share and program income requirements are met

Setting up RLF Team Roles and Responsibilities

rlf two key roles1
RLF Two Key Roles
  • Qualified Environmental Professional (QEP)
    • Coordinate, direct & oversee site-specific cleanups
    • QEP can be State agency, but does not have to be government employee; can be contractor
    • Determine whether cleanup is authorized
    • Review public comments
    • Ensure compliance with applicable laws and regulations

Setting up RLF Team Roles and Responsibilities

borrowers and sub grantees
Borrowers and Sub-grantees
  • Borrowers - contractually responsible to RLF recipient, not EPA
    • Can be public or private parties
    • Responsible for cleanup and documenting fund uses
  • Sub-grantees - cannot be private parties and applicant must own the site
    • Funds can only be used for eligible costs under the RLF program. Administrative costs not allowed

Setting up RLF Team Roles and Responsibilities


Marketing Recap

  • Marketing Plan as a grant deliverable.
  • Recap of the March 2008 RLF Best Practices Conference Call on Marketing:


marketing recap
Marketing Recap
  • It starts with identifying your target audience:

Who in my community is a likely user of my loan product?

  • Making the connection with your target audience:

What professional and/or information networks are these targets linked into?

  • Delivering the message:

How do you make your message “stick” with your target audience?


financial management
Financial Management

RLF Fund Manager

  • Maintain accounting records
  • Develop internal budget controls for cash disbursement, revisions and record-keeping
  • Ensure source documentation (payroll, time card, loan award documents, etc.)
  • Develop/maintain payment schedule
  • Ensure advances of loan funds are in an interest bearing account

RLF Financial Management

cost share 20
Cost-Share (20%)
  • Can be in the form of cash, labor, materials or services that are eligible costs under the RLF Program
  • Provide adequate documentation
  • Federal funds cannot be used as match, except HUD CDBG dollars
  • Pass 20% share onto borrowers & sub-grantees
  • Program income such as loan fees and interest payments are eligible

RLF Financial Management


Prudent Lending Practices

  • What are prudent lending practices?
    • Refer to the procedures the grant recipient establishes to ensure sound financial management of the RLF
    • Include establishing interest rates, repayment terms, fee structure, and collateral requirements
    • Grantees often partner with financial organizations to assist with lending

Golden Urban Renewal Authority (GURA) cleanup and redevelopment. Golden, Colorado

RLF Financial Management

prudent lending practices
Prudent Lending Practices
  • Collateral
    • EPA requirements
    • Assuming risk
    • Creative ways to secure collateral
  • Interest rates
    • Public vs. private borrowers
  • Repayment Terms
    • Meeting the needs of the borrower and your RLF program

Cleanup underway in Missoula, Montana.

RLF Financial Management

eligible sites
Eligible Sites
  • The site must meet the brownfield definition, which is:
  • “...real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.”
  • Abandoned, idled, or underused industrial or commercial properties
  • Reuse/redevelopment is complicated by real or perceived environmental contamination

Site and Applicant Eligibility

eligible sites1
Eligible Sites

Sites with the following contaminants can be eligible for RLF loans and sub-grants:

  • Hazardous substances
  • Petroleum contamination
  • Asbestos & lead based paint
  • Controlled substances (e.g., meth labs)
  • Mine-scarred lands
  • Among other contaminants

Site and Applicant Eligibility

petroleum sites
Petroleum Sites
  • Relative low risk
  • No viable responsible party
  • Applicant not responsible party
  • No RCRA order

State review based on statutory requirements to

determine whether the site is:

Site and Applicant Eligibility

properties not considered brownfields by epa
Properties not considered Brownfields by EPA
  • Listed sites or sites proposed for listing on the National Priorities List (NPL);
  • Sites subject to CERCLA orders or consent decrees; or,
  • Federal properties (except land held in trust for an Indian tribe)

Site and Applicant Eligibility

eligible borrowers and sub grantees
Eligible Borrowers

Any public or private entity with control or access of the brownfields site

Eligible Sub-grantees


Local governments


Non-profit organizations

Redevelopment agencies

Land clearance authorities

Other quasi-governmental entities created by state or local governments

Eligible Borrowers and Sub-grantees

Gold Hill Mesa Redevelopment, Colorado Springs, Colorado

Site and Applicant Eligibility

Site and Applicant Eligibility

sub grantee eligibility restrictions
Sub-grantee Eligibility Restrictions
  • Cannot sub-grant to yourself
  • Sub-grantee must own the land
  • For profit organizations are not eligible for sub-grants
  • Max of $200,000 sub-granted per site, and up to 40% of your grant
  • Cannot pair two sub-grants from separate RLFs for work on one site.
  • It is ok to pair a $200k cleanup grant and a $200k RLF sub-grant

Site and Applicant Eligibility

eligible borrower sub grantee
Eligible Borrower/Sub-grantee

The borrower/sub-grantee cannot be a potentially liable party under CERCLA 107:

  • Past owner or operator during release of contamination
  • Cause or contributor to contamination
  • Generator or transporter of contamination

Site and Applicant Eligibility

all appropriate inquiries aai
All Appropriate Inquiries (AAI)
  • AAI is the process of evaluating a property for:
    • Potential environmental contamination
    • Potential liability for environmental contamination
  • Requires Phase I environmental site assessment within in one year prior to voluntary acquisition.
  • Also known as: “Environmental due diligence” and “Environmental site assessment standards”
  • ASTM Standard E1527 - 05
  • AAI Rule available at:

Idalia Court RLF Cleanup, Aurora Colorado

Site and Applicant Eligibility

eligible activities and costs
Removing, mitigating a or preventing a release

Capping contamination

Excavation, consolidation or removal of contaminated soils

Site assessment activities that are necessary to the cleanup process

Site monitoring including sampling and analysis

Installation of drainage controls

Installation of fences and signs

Among other cleanup activities

Expenses for site cleanup activities

Financial management expenses

Costs for monitoring groundwater or soil for contamination

VCP or State cleanup program fees

Expenses for travel, training, equipment and contractual support

Purchasing environmental insurance

Eligible Activities and Costs



Eligible Use of Funds

ineligible activities and costs
Pre-cleanup assessment, identification and characterization

Construction, demolition and development activities that are not cleanup actions

Public or private drinking water supplies that have deteriorated through ordinary use

Among other activities not related to the cleanup

A penalty or a fine

A federal cost share requirement

Costs of complying with federal laws other than those of the applicable cleanup

Administrative costs

Ineligible Activities and Costs



Eligible Use of Funds


EPA Review and Approval Roles

  • The process will vary by Region, state program, and project
  • A more detailed checklist is available
  • Project Activities/Items:











EPA Review and Approval Roles


Federal Cross-Cutting Requirements

  • What are they?
    • Requirements of other federal laws and Executive Orders that apply to federal financial assistance and activities
  • Who is responsible?
    • EPA retains ultimate responsibility but often the grantee is doing the on-the-ground work
    • In sum, we’re in this together

Federal Cross-Cutting Requirements


Federal Cross-Cutting Requirements

  • What are the main requirements to look out for?
    • Endangered Species Act
    • National Historic Preservation Act
    • Occupational Safety and Health Act
    • Davis-Bacon Prevailing Wage Rates
    • MBE/WBE
    • AND there are others…

Federal Cross-Cutting Requirements

record keeping
Record Keeping
  • Quarterly Reports
  • Due 30 days after the quarter ends
    • Document progress of outputs/outcomes and project milestones
    • Budget recap including approved budget vs. costs incurred for quarter and remaining funds
  • Complete Property Profile Forms (PPF) and update as information obtained
    • i.e. types of contaminants removed, institutional controls, funds leveraged, jobs created, etc.

Record Keeping and Reporting

record maintenance
Record Maintenance

Maintain records for at least three years after submitting last report

Obtain EPA approval prior to destroying records

Additional record keeping may be necessary if RLF continues to operate after closeout

RLF grants records are not subject to the Federal Freedom of Information Act

Record Keeping and Reporting


Grantees are required to secure an outside auditor to conduct periodic program audits

Costs incurred for securing the services of an outside auditor to conduct audits is an “ineligible” direct cost

Must ensure sub-grantee and borrower compliance with RLF terms & conditions

Record Keeping and Reporting

program income
Program Income

What is program income?

  • The amount of money earned during the period of the award
  • It refers to the funds that have come back to the RLF after you have made your loans and sub-grants
  • It is the grantee’s responsibility to track program income

Belmar Redevelopment - Lakewood, Colorado

Program Income Tracking

program income1
Program Income

Program income includes:

  • Principal repayments
  • Interest earned on outstanding loan principal
  • Loan fees
  • Closing fees
  • Other income generated from RLF operations

Program Income Tracking

a few things about program income
A Few ThingsAbout Program Income
  • Grantee needs to loan/sub-grant program income before using grant funds
  • Does not affect the 40% sub-grant limit
    • i.e., a grantee could sub-grant 100% of its program income budget if desired.
  • Program income still subject to $200,000 per site limit on sub-grants
  • Program income no longer needs to follow the original petroleum/hazardous substance budget

Program Income Tracking

policies that affect rlf grantees
Policies That Affect RLF Grantees
  • Amendments
    • Program Waiver allows for maximum project period of fifteen years
    • Extensions are linked to supplemental funding awards

Amendments and RLF Policies

policies that affect rlf grantees1
Policies That Affect RLF Grantees


Accrued Program Income

Funds that return to you following closeout

Closeout agreement may include a reporting plan

How CERCLA and Federal requirements will apply to activities after closeout

Amendments and RLF Policies

policies that affect rlf grantees2
Policies That Affect RLF Grantees
  • Discounted Loans
    • Eligibility treated same as sub-grants (no private entities)
    • Amount of principal forgiveness is limited to 30% or $200K
    • Amount of principal forgiveness plus sub-grants cannot exceed 40% of award

Amendments and RLF Policies

supplemental funding
Supplemental Funding
  • National competitive request for proposals
  • Available to new rules RLF grantees*
  • Requests must be made in writing via a letter addressing the stated considerations
  • Letters must be postmarked by:

February 11, 2009

  • Awards are expected late Spring 2009

*if Considerations on next slide are met

Supplemental Funding

  • Must have successfully issued a loan and/or sub-grant
  • Substantially depleted existing RLF funds
  • Demonstrate need, including number of sites and community benefits
  • Ability & success to “revolve” the RLF grant
  • Illustrate ability to utilize RLF grant to address cleanup funding gaps
  • Community benefit from past and potential loan(s) and/or sub-grant(s)

Supplemental Funding

  • If awarded, existing cooperative agreements and workplans will be amended
  • Grantees must note the type of funding requested (i.e. $500k hazardous substance and $0 for petroleum)
  • Supplemental funding awards are typically between $200,000 - $500,000

Supplemental Funding

  • Think of it as retirement planning
  • Do you envision a Brownfields program post-closeout?
  • Review the current policy
  • Stay tuned for updates

Centennial Park in Englewood, Colorado.



Coming Up

Next call – April – Suggestions for Topics?

National RLF Grantee Workshop, June 2-4, Minneapolis, MN

on quickplace
On QuickPlace
  • This presentation
  • Policy Documents
    • Closeout
    • Discounted Loans
  • Model Budget & Program Income Tracking Sheet
  • Project Approval Checklists
  • Other stuff?

Ribbon-cutting ceremony at the Assistance League in Bakersfield, California.

thank you
Thank You

After viewing the links to additional resources, please complete our online feedback form.

Thank You

Links to Additional Resources

Feedback Form