Cal. Code Regs. tit. 4 § 8102.6

Current through Register 2025 Notice Reg. No. 2, January 10, 2025

Section 8102.6 - Infill Grant and Infill Loan Terms

(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.

Cal. Code Regs. Tit. 4, § 8102.6

1. New section filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a)(3), (a)(20) and (a)(23)(A), new subsection (a)(23)(B), amendment of subsection (a)(25)(A), repealer of subsection (a)(25)(B), new subsections (a)(25)(F)-(G) and (a)(28)-(29) and subsection relettering and renumbering, transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

Note: Authority cited: Section 44520, Health and Safety Code. Reference: Sections 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44520, 44525.7, 44526(h), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.