Cal. Code Regs. tit. 22 § 68205

Current through Register 2024 Notice Reg. No. 25, June 21, 2024

Section 68205 - Loan Application Content

(a) An Applicant shall submit an ISCP Loan Application, (DTSC Form 1290, dated 5/09, which is incorporated by reference), or a CLEAN Loan Program Loan Application, (DTSC Form 1291, dated 5/09, which is incorporated by reference), as applicable, to the Department;

(b) The Application shall contain, at a minimum, all of the following:

(1) Description of the Property that is the subject of the Loan and upon which a PEA or Response Action will be performed. The description shall include a legal description of the Property boundaries, Assessor's Parcel Number, or other identification sufficient to identify the areal extent of the Property. If the Property is a portion of a larger site where there is known or suspected release or threatened release of a Hazardous Material, the Application shall include a description of the entire site, including the boundaries of the known or suspected release or threatened release of a Hazardous Material;

(2) Documentation that demonstrates the Property is an Eligible Property;

(3) Documentation of appropriate security interest in the Property and source of Loan repayment;

(4) Documentation of the Applicant's credit-worthiness, including a description of the Applicant's bank relationships, to include but not limited to existing bank loans and other debts;

(5) If the Department has made a determination under subdivision (g) of section 68206 that sufficient funding to meet the demand for Loans will not be available, sufficient information to enable the Department to determine the priority ranking of the Property under subdivision (g) of section 68206;

(6) For a CLEAN Loan Program Loan, description of the intended redevelopment Project and its projected benefits, if known, and the name, address, and resume of the project coordinator;

(7) Documentation that the Applicant has control of the Property or the right to enter the Property and conduct a PEA or Response Actions as necessary;

(8) For a CLEAN Loan Program Loan for a Property that is part of a larger site, documentation that the planned future development of the Property is consistent with the current and reasonably foreseeable future land uses of the larger site;

(9) For a CLEAN Loan Program Loan, general description of the Response Action to be performed on the Property;

(10) For a CLEAN Loan Program Loan for a Property that is part of a larger site, description of any Response Action that is currently being performed or that will be performed on the larger site;

(11) For a CLEAN Loan Program Loan, description of all past and current administrative orders, agreements, judicial orders, and consent decrees that

(A) Relate to any of the following:

1. the Property,

2. the Applicant,

3. the Applicant under any previous name or names, or

4. if the Applicant is a business concern, any officer, director, or partner of the business concern and any previous names of the business concern;

(B) were issued by or entered into with any federal, State, or local agency including the State Board, or a Regional Board; and

(C) require Response Action at a site.

(12) For a CLEAN Loan Program Loan, documentation of the total debt against the Property on which the Response Action will be taken;

(13) For a CLEAN Loan Program Loan, estimated value of the Property after all necessary Response Actions are complete;

(14) Disclosure of any and all information demonstrating that the Applicant is an Ineligible Applicant under paragraphs (1)-(5) of subdivision (q) of section 68202;

(15) Certification Statement and signature of the Applicant; and

(16) Any other information the Department deems necessary to evaluate whether the Application meets the intent of the ISCP or the CLEAN Loan Program.

(c) For ISCP and CLEAN Loan Program Loans, if the Applicant is not the owner of the Property, the Application shall also contain one of the following:

(1) For an ISCP Loan, documentation that demonstrates that the owner consents to the performance of the PEA of the Property;

(2) A copy of an agreement between the Property owner and the Applicant that gives the Applicant an option to purchase the Property;

(3) For a CLEAN Loan Program Loan, documentation that the owner of the Property agrees to use the Property as a security interest for the Loan to finance necessary Response Action at the Property, or agrees to provide another form of security that the Department determines will adequately protect the State's interest. The Department will obtain an appropriate security interest in the Property or other alternative form of security approved by the Department;

(4) If the Applicant is a Local Government Agency, or a developer or prospective purchaser acting together with a Local Government Agency pursuant to an enforceable agreement, a demonstration to the Department that the Local Government Agency, or developer or prospective purchaser acting together with the Local Government Agency pursuant to an enforceable agreement, has legal access to perform the PEA or Response Action as determined by the Department at the Property, or will have legal access, prior to receiving Loan funds.

(d) An ISCP Application shall include a Phase I that has been completed within three (3) years, provided that the information is current and accurate. An addendum may be submitted with the Phase I to provide current information.

(1) The Phase I shall be performed by, or under the supervision of, any of the following:

(A) A Class II environmental assessor registered pursuant to chapter 6.98 (commencing with section 25570) of division 20 of the Health and Safety Code;

(B) A professional engineer registered in California;

(C) A geologist registered in California;

(D) A certified engineering geologist registered in California; or

(E) A licensed hazardous substance contractor certified pursuant to chapter 9 (commencing with section 7000) of division 3 of the Business and Professions Code. A licensed hazardous substance contractor shall hold the equivalent of a degree from an accredited public or private college or university or a private postsecondary educational institution approved by the Bureau for Private Postsecondary and Vocational Education with at least 60 units in environmental, biological, chemical, physical, or soil science; engineering; geology; environmental or public health; or a directly related science field.

(2) Any Person who conducts or supervises a Phase I under paragraph (1) shall have at least two years experience in the preparation of those assessments;

(3) The Phase I shall be performed in accordance with the "American Society for Testing and Materials (ASTM) Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process", ASTM Standard E-1527-05, approved November 1, 2005; available from American Society for Testing and Materials, 100 Barr Harbor Drive, Post Office Box C700, West Conshohocken, PA 19428-2959, (610) 832-9585; website http://www.astm.org, which is incorporated by reference.

(e) A CLEAN Loan Program Loan Application shall include a PEA, or PEA-equivalent as determined by the Department.

(1) The PEA or PEA-equivalent shall be performed by, or under the supervision of, any of the following:

(A) A Class II environmental assessor registered pursuant to chapter 6.98 (commencing with section 25570) of division 20 of the Health and Safety Code;

(B) A professional engineer registered in California;

(C) A geologist registered in California;

(D) A certified engineering geologist registered in California; or

(E) A licensed hazardous substance contractor certified pursuant to chapter 9 (commencing with section 7000) of division 3 of the Business and Professions Code. A licensed hazardous substance contractor that conducts or supervises a PEA under paragraph (1), shall hold the equivalent of a degree from an accredited public or private college or university or a private postsecondary educational institution approved by the Bureau for Private Postsecondary and Vocational Education with at least 60 units in environmental, biological, chemical, physical, or soil science; engineering; geology; environmental or public health; or a directly related science field.

(2) Any Person who conducts or supervises a PEA or PEA-equivalent under subdivision (1) shall have at least three (3) years experience in conducting those assessments; and

(3)

(A) The PEA or PEA-equivalent shall demonstrate the presence of any known or suspected release or threatened release of a Hazardous Material at the Property at concentrations that may pose a risk to public health and safety and the environment.

(B) The Department will review the PEA or PEA-equivalent to determine whether it is adequate.

(f) An Applicant shall provide any further information or documentation deemed necessary by the Department to determine the creditworthiness of the Applicant or the Applicant's ability to secure and repay the Loan, or the eligibility of the Property;

(g) An Application from a Local Government Agency or Local Agency, or from a Joint Powers Authority formed pursuant to chapter 5 of division 7 of title 1 of the Government Code (commencing with section 6500) or pursuant to other California statutory authority, shall also contain the following additional information:

(1) A description of the activities and responsibilities of the Local Government Agency or Local Agency or the Joint Powers Authority;

(2) The annual financial operating statements for the previous three years of the Local Government Agency or Local Agency or the Joint Powers Authority;

(3) A governing body resolution, or other documentation granting the Applicant authority to apply to the Department for a Loan; and

(4) For a Joint Powers Authority, documentation that the Applicant is authorized to act on the behalf of the Joint Powers Authority.

(h) If the Department determines that any document submitted in the Application, including a PEA, PEA-equivalent, or Phase I, is not adequate, the Application shall be deemed incomplete.

Cal. Code Regs. Tit. 22, § 68205

1. New section filed 1-18-2001 as an emergency; operative 1-18-2001 (Register 2001, No. 3). Pursuant to Health and Safety Code section 25395.29, a Certificate of Compliance must be transmitted to OAL by 7-17-2001 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 7-6-2001 as an emergency; operative 7-18-2001 (Register 2001, No. 27). Pursuant to Health and Safety Code section 25395.29, a Certificate of Compliance must be transmitted to OAL by 1-14-2002 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 7-6-2001 order transmitted to OAL 1-14-2002; Certificate of Compliance withdrawn from review 2-27-2002. Repealed by operation of Government Code section 11346.1(g) (Register 2002, No. 9).
4. New section filed 3-1-2002 as an emergency; operative 3-1-2002 (Register 2002, No. 9). Pursuant to Health and Safety Code section 25395.29, a Certificate of Compliance must be transmitted to OAL by 8-28-2002 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 3-31-2002 order, including amendment of section, transmitted to OAL 6-21-2002 and filed 8-5-2002 (Register 2002, No. 32).
6. Change without regulatory effect amending subsections (a), (b)(11)(C) and (d)(3) filed 7-20-2009 pursuant to section 100, title 1, California Code of Regulations (Register 2009, No. 30).

Note: Authority cited: Sections 25150, 25351.5, 25395.29 and 58012, Health and Safety Code. Reference: Sections 25395.21 and 25395.22, Health and Safety Code.