United States        Solid Waste and       EPA 500-F-00-247
      Environmental Protection    Emergency Response     October 2000
      Agency             (5101)
      Washington, DC 20460
vFPA
      The Brownfields Economic
      Redevelopment Initiative

      Proposal Guidelines for
      Brownfields Cleanup
      Revolving Loan Fund

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                     EPA's Brownfields Cleanup

         Revolving Loan Fund Demonstration Pilots

                                  Introduction

       The Environmental Protection Agency's (EPA) Brownfields Economic Redevelopment
Initiative is designed to empower states, local governments, communities, and other stakeholders
involved in economic redevelopment to work together in a timely manner to prevent, assess, and safely
cleanup brownfields in order to facilitate their sustainable reuse. As part of this Initiative, EPA has
awarded cooperative agreements to States, political subdivisions (including cities, towns, counties), and
Federally recognized Indian tribes to capitalize Brownfields Cleanup Revolving Loan Fund (BCRLF)
pilots. 1

       What is a Brownjield?

       EPA defines brownfields as abandoned, idled,  or underused industrial and commercial facilities
where expansion or redevelopment is complicated by real or perceived environmental contamination.

       What is the Purpose of the BCRLF Program?

       The purpose of the BCRLF pilots is to enable  States, political subdivisions, and Indian tribes to
facilitate the cleanup and redevelopment of brownfields properties. In particular, these pilots will test
revolving loan fund models that facilitate coordinated public and private cleanup efforts. Beginning in
fiscal year 2001 and with these guidelines, financial assistance provided to a BCRLF recipient may be
awarded in an amount up to $1,000,000 per eligible entity.
      How may a Pilot use the cooperative agreement funds ?
       1 There are presently 104 BCRLF pilots that have been awarded since fiscal year 1997.
Beginning in 1997, EPA awarded 22 BCRLF pilots $350,000 each. Of the 1997 BCRLF pilots, seven
pilots were selected to receive supplemental funding of $150,000 each in FY 1999. In FY1999, a
second round of 45 BCRLF pilots were announced and awarded amounts up to $500,000 per pilot
entity. This was the first year coalitions of eligible entities were eligible to receive awards up to
$500,000 per entity.  In FY 2000 (May announcement of 30 and July  announcement of 7), an
additional 37 BCRLF pilots selections were announced. In addition, in FY 2000, supplemental funding
in amounts ranging from $250,000 to $500,000 was awarded to three pilots that had "made a loan(s)
AND significantly depleted existing available" loan funds": Stamford,  CT., Trenton, Nl,  and
Shreveport, LA.

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       EPA will award a cooperative agreement for up to $1,000,000 per eligible entity.  A BCRLF
pilot (cooperative agreement recipient) must use at least 70 % of the funds provided to capitalize a
clean up loan fund. The loan fund may also be used for "subawards" to enable non-profit or
governmental borrowers to more effectively participate in the program..2  EPA will allow the recipient
to use up to 20% of the cooperative agreement funds as direct financial assistance to the cooperative
agreement recipient to carry out its clean up responsibilities as "lead agency."  The direct financial
assistance must be used by the recipient in combination with a specific loan. The remaining 10% of the
cooperative agreement may be used for the cooperative agreement recipients' general administrative
costs.

       At least 70% of the funds will be used to capitalize a loan fund that "revolves ".  A loan
program "revolves" when it uses loan repayments (principal, plus interest and fees) to make new loans
for the same authorized purposes. The authorized purpose for the BCRLF is to clean up Brownfields
sites in accordance with the Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA) and consistent with The National  Oil and Hazardous Substances Pollution  Contingency
Plan (NCP).

       EPA may provide up to 20% of the  cooperative agreement funds to the cooperative
agreement recipient as direct financial assistance. These funds may be used ONLY by the
cooperative agreement recipient and ONLY in combination with a loan. These funds may not be given
to a borrower as a "subgrant."  Upon application for a loan by a borrower, the cooperative
agreement recipient may use  this direct financial assistance to carry out any site-specific "lead
agency " responsibilities related to that loan.  For example, these funds may be used by the
cooperative agreement recipient to prepare the engineering evaluation/cost analysis (EE/CA) and/or to
fulfill site specific responsibilities of the lead agency's brownfields site manager.  Other lead agency
responsibilities that these funds could be used for are described at pages 13 -15.

       The remaining 10% of the cooperative agreement may be used for general (non site specific)
administrative costs.  For example, the recipient may used these funds for establishing the administrative
infrastructure of the revolving loan program. This may include costs related to processing loan
applications, conducting credit checks, outreach to potential borrowers and loan administration.

       How Many Pilots Will be Selected for the FY 01 BCRLF Program?
       2 For example, a recipient may provide a "subaward" under 40 CFR 31.37 that would be used
in combination with a loan made to a non profit or governmental borrower to carry out allowable clean
up activities. This subaward would act as an incentive for the party to borrow from the loan fund and
the borrower would not be obligated to repay the subaward. EPA will provide successful applicants
with additional guidance on the subaward/ loan combination feature.

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       In fiscal year 2001, EPA expects to select up to 35 new BCRLF pilots, awarding up to
$1,000,000 per pilot. Coalitions are eligible to receive awards up to $1,000,000 per eligible entity...

       Who is Eligible for a BCRLF Pilot?

       Eligible entities for FY 2001 BCRLF pilots will be States, political subdivisions, and Indian
tribes that have established and can demonstrate the  progress already made in the assessment, cleanup
and revitalization of brownfields in a community, State or Tribe.

       Consideration will be given to proposals received from eligible entities designated as a Federal
Empowerment Zone or Federal Enterprise Community.
       Are Pilots Limited to Sites Assessed Under Other EPA Brownfields
       Programs?

       No.  Sites cleaned up under the BCRLF pilot program may be drawn from any area within the
eligible entities' jurisdiction.  Pilot sites are NOT limited to those identified, characterized, or assessed
under a previously awarded assessment pilot or targeted brownfields assessment.

       Can Proposals from Coalitions be Submitted?

        Yes. Proposals from coalitions, formed among two or more entities, are permitted.  However,
coalition funding will be premised on an award of no more than $1,000,000 per eligible entity. Loan
funds must be directed to properties located within the jurisdictions of the eligible entities comprising the
coalition.

       Coalition proposals may take several forms, including the following:

       •       two or more eligible entities; one of the eligible entities serves as the cooperative
               agreement recipient for the coalition; or

       •       two or more eligible entities with the State serving as the cooperative agreement
               recipient for the coalition; or

               one political subdivision serving as the cooperative agreement recipient for a smaller
               eligible entity located within the political subdivision's political jurisdiction, e.g., a county
               acting on behalf of a municipality located within the county's jurisdiction; or

       •       an existing BCRLF coalition may apply on behalf of one or more new eligible entities
               seeking to join a coalition. (The proposal must be submitted by the cooperative
               agreement recipient for the coalition.)

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       For each coalition proposal, the following will be required:

       •      clear designation of one entity as the cooperative agreement recipient for the coalition
              (this entity will be responsible for administering the cooperative agreement and lead
              agency duties described on pages 13 -15); and

       •      a letter from each coalition member's chief executive stating that the entity chooses to
              join the coalition.

              existing coalitions making proposals on behalf of new eligible entities shall provide a
              written affirmative statement that members of the existing coalition (chief executive of
              the coalition entity e.g., the mayor, county  executive) have agreed to admission of
              additional entities to the coalition.

       What Must be Demonstrated in the Pilot Proposal?

       Applicants must demonstrate through their proposal: 1) an existing commitment to brownfields;
2) an ability to manage..a revolving loan fund and environmental cleanups; 3) a need for cleanup funds;
4) commitment to making loans and creative leveraging of EPA financial assistance with public-private
partnerships and in-kind services3; and 5) a clear plan for sustaining the environmental protection and
related economic development activities initiated through the BCRLF program.

       The eligible entities must meet EPA's threshold and evaluation criteria. A pilot will not be
awarded to applicants who cannot meet the Threshold Criteria. However, the Agency will provide an
opportunity to clarify prior to making a final decision. There is no guarantee of an award. The size of the
awards may vary (for example, from$350,000 to $1,000,000), depending on the proposal's responses
to the evaluation criteria.  Coalitions are eligible to receive awards up to $1,000,000 per eligible entity.

       What is the Deadline and How Do I Submit the Proposal?

       December 15, 2000 is the deadline for the FY 2001 BCRLF pilots.  Proposals must be post-
marked by the U.S. Postal Service or sent to U.S. EPA Headquarters via registered or tracked mail by
the proposal deadline. {Please note that the address for submission of the proposal varies
according to method used for mailing the proposal.) A copy of the proposal submitted to EPA
Headquarters must also be submitted via registered or tracked mail to the appropriate U.S. EPA
Regional BCRLF Coordinator (See page 38).
       3 Note, although applicants are encouraged to leverage funds, the program does not impose a
mandatory match requirement.

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       How Does the U.S. EPA Disburse Financial Assistance to the
Applicant?

       The U.S. EPA has established procedures governing how BCRLF financial assistance to a
recipient may be paid to the pilot cooperative agreement recipient and, in particular, procedures to
capitalize the loan fund and subsequent disbursement to borrowers. Payments for direct financial
assistance (up to 20% of the award) and general administrative expenses (up to 10% of the award) will
be made on the basis of the costs the recipient incurs or expects to incur within a reasonable time after
the recipient makes a payment request. (All payments will be made consistent with 40 C.F.R. Part
35.6280 and 40 C.F.R. 31.21.)

       With respect to the financial assistance to capitalize the loan fund and loan fund payments (at
least 70% of the award), the recipient may establish loan disbursement procedures that allow
borrowers to request funds based on either actual expenses (e.g., invoices) or a schedule (e.g.,
progress payments). EPA will make payments to the recipient to meet the recipient's obligations to the
borrower based on either approach.

       Can a cooperative agreement recipient make subawards to non-profits
and governmental unit without also making a loan ?

       No. Subawards are intended to be an incentive for non profit or governmental borrowers to
participate in the BCRLF program and must be made in combination with a loan.

       Where Can I Find Additional Information on the BCRLF Program?

       Information regarding the BCRLF pilot program may be found at the EPA  Brownfields
Homepage (http://www.epa.gov/brownfields) under the reference to the "Revolving Loan Fund Pilots."
Interested parties are strongly encouraged to review information found in the Brownfields Cleanup
Revolving Loan Fund Administrative Manual (EPA 500-B-98-001) published in May 1998, which
is also available at the following location l^iJsMSL^&^^d^iS^^MM^^^MM^ Finally, EPA
has made several recent policy clarifications which may be of assistance to you in understanding aspects
of the BCRLF program.  These policy clarifications include the memorandum dated July 10, 2000,
signed by Linda Garczynski, Director, Outreach and Special Projects Staff, entitled "Clarification of
Site Manager (On-Scene Coordinator Role) ",  etc., and the memorandum dated September 5, 2000,
signed by Timothy Fields, Jr., Assistant Administrator OSWER, entitled "Clarification of Borrower
Eligibility Under the Brownfields Cleanup Revolving Loan Fund Program. "  These policy
memorandum may be found at the web site indicated above.

       What is EPA's Involvement with the BCRLF Program Once the Award
       is Made?

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       EPA does not intend to be involved in prioritizing loan proposals, or in the day-to-day
management of the BCRLF loan program, and, specifically, will have no contractual ties with individual
borrowers. However, EPA anticipates being substantially involved in monitoring the BCRLF program
to ensure that applicable legal, financial, and environmental response requirements are met. Substantial
involvement may include: approval of procedures for site and loan recipient selection, review of the
substantive terms of loan documents, review or approve of project phases.  Substantial involvement
may also include a general monitoring of operational matters.
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                                     Background

       The Brownfields Program reflects a new paradigm in environmental protection which is locally-
based, encourages strong public-private partnerships, and promotes innovative and creative ways to
address brownfields sites. Across the country, more than 600,000 properties that were once used for
industrial, manufacturing, or other commercial uses now lie abandoned due to suspicion of hazardous
substance contamination, creating blight, joblessness and despair. Perceptions about potential
environmental liability keep developers, investors, and lenders from restoring such lands to productive
use.

       Far from a typical regulatory or enforcement initiative, the Brownfields Program encourages
market incentives and private sector actions to restore brownfields.  Its novel approach empowers state
and local environmental and economic redevelopment officials to oversee brownfields activities,
ensuring that local solutions are created to solve local problems.

       The U.S. Environmental Protection Agency (EPA) supports efforts to assess and cleanup
brownfields.  EPA does this by providing technical and financial assistance, facilitating information
sharing, and coordinating relationships between 20 federal agencies, as well as trade associations,
business groups, and non-profits.  These relationships are what make the Brownfields Program unique;
they enable brownfields assessment and cleanup activities to work more effectively in conjunction with
local, state and federal health, workforce development, housing, and transportation programs, without
duplication of effort.

       EPA's  104 Brownfields Cleanup Revolving Loan Fund Pilot facilitate cleanup of brownfields
properties. The focus of the BCRLF pilots is to capitalize low-interest loan funds for cleanup.
Once loans are paid back, cleanup loans are then awarded to address other sites, "recycling" the
fund as well as these properties. EPA also has established other pilot programs. The Assessment
Demonstration Pilots provide financial assistance to local governments to create two-year programs
that build capacity and partnerships at the local level, and develop innovative approaches to
brownfields issues. To date, EPA's 362 Brownfields Assessment Demonstration Pilots have jump-
started brownfields efforts by performing environmental assessments, conducting cleanup planning
which takes long-term future land-use into consideration,  and bringing together community groups,
investors, lenders, and developers.  EPA's 37 Job Training Pilots  create locally-based
environmental job training programs to ensure that the economic benefits derived from
Brownfields efforts remain in local neighborhoods. Finally, the 16 Brownfields Showcase
Communities projects serve as exemplary models of collaboration and cooperation between
Federal agencies, and public and private stakeholders.  By participating in EPA's pilots, each
recipient is enhancing its own capacity to address the brownfields sites, building partnerships, and
developing innovative approaches to brownfields issues. Thus, the momentum generated by these
Brownfields Pilot projects is expected to long outlive federal involvement by leveraging state, local
and private investment, and by replacing despair and blight with community vitality.

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       "For EPA and the federal government, brownfields assessment, cleanup and redevelopment is
an opportunity to demonstrate the environmental protection can also promote economic development.
For communities and cities, it is the opportunity to return a wasted asset to productivity, job creation,
and revenue generation.  For local contractors and developers, brownfields redevelopment is an
opportunity to expand their work, to clean up sites and to build new facilities. For local lenders, it is the
opportunity to meet their community reinvestment needs, often at much less of a credit risk than they
might otherwise anticipate. But, the biggest opportunity is for the people who live with brownfields sites
every day."4
       4 Timothy Fields, Jr, testimony presented before the U.S. House of Representatives, Committee
on Commerce, November 4, 1999.

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                         Evaluation of the Proposals

                                The Evaluation Process

       BCRLF pilots are selected through a competitive process.  All proposals are initially evaluated
by U.S. EPA Regional evaluation panels. The panels consist of EPA Regional staff, including Regional
Brownfields Coordinators, and other Federal Agency representatives. The panels assess how well the
proposal meets the selection criteria and make recommendations on the number and size of the awards.
Final selection of the pilots is made by EPA Senior Management, following the regional panel reviews.

       Proposals must be clear, decisive, and strictly follow the criteria. Proposals for BCRLF pilots
should address each "Threshold" and "Evaluation Criteria." (see pages 25-35). The  eligible entities
must meet EPA's threshold and evaluation criteria. However, the Agency will provide an opportunity to
clarify prior to making a final decision. Proposals also must provide sufficient detail so the panels may
compare the merits of each while deciding which proposals best support the intent of the pilot program.
Proposals providing the best evidence of a true need, a quality project, and appropriate use of funds
will have the best chance of being recommended by the panels.  Vague descriptions and unnecessary
redundancy may reduce the chance of a favorable rating.

       Applicants are strongly encouraged to familiarize themselves with the Brownfields Cleanup
Revolving Loan Fund Administrative Manual (EPA 500-B-98-001, May 1998) and the
Brownfields Cleanup Revolving Loan Fund Administrative Manual: Model Terms and Conditions
(EPA 500-B-98-002, October 1998) (see, http://www.epa.gov/bf/rlflocat.htm). In addition, policy
clarifications including the memorandum dated July 10, 2000, signed by Linda Garczynski, Director,
Outreach and Special Projects Staff, entitled "Clarification of Site Manager (On-Scene
Coordinator Role) ", etc., and the memorandum dated September 5, 2000, signed by Timothy Fields,
Jr., Assistant Administrator OSWER, entitled  "Clarification of Borrower Eligibility Under the
Brownfields Cleanup Revolving Loan Fund Program " are located at web site indicated above.

       Applicants may also contact and meet with EPA Regional BCRLF Coordinators for assistance
prior to submission of their proposal. A list of Regional BCRLF Coordinators and their phone
numbers can be found on page 38 of the guidelines.
                     The Cooperative Agreement Award Process

       Upon selection, applicants will receive a confirmation letter from EPA Headquarters.
Applicants not selected also will be informed in writing.
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       Successful BCRLF pilot proposal applicants also will be contacted by the appropriate EPA
Regional office.  Successful applicants will be asked to prepare documentation to support the signing of
a cooperative agreement with the U.S. EPA.

       Cooperative agreements are awarded by the EPA Regional offices. The information in the
BCRLF pilot proposal, the answers submitted in response to the selection criteria, will form the basis
for the cooperative agreement application.  However, the cooperative agreement application will
require more detailed information on specific products, schedule, and budgets.

       The cooperative agreement application package will include:

       •      the standard application and budget forms (SF 424);
       •      a formal work plan that provides a detailed description of the work to be performed,
              including a schedule, milestones, products, and budget backup information;
              information related to community relations, health and safety, and quality assurance
              plans;
       •      and the required certification forms.

       The EPA Regional Brownfields Office and Regional Grants Specialist will work closely with the
applicant to process and finalize the cooperative agreement package. Unless the Agency makes an
exception, EPA Regulations require the award official5  to sign the cooperative agreement before costs
are incurred.

        EPA strongly encourages BCRLF pilot proposal applicants to contact..their State
Intergovernmental Review office early so that the required intergovernmental review process may begin
immediately upon selection by EPA. If the State does not have an Intergovernmental Review Office,
the successful applicant must provide notice of the proposed agreement directly to affected State, area-
wide, regional, and local  entities. EPA will provide further guidance, if needed.
       5 An "Award official" is the individual who signs the assistance agreement ensuring that all
technical, legal, and administrative evaluations have been made and that the proposed agreement is
awardable.  For regionally administered programs, the award official is either the Regional
Administrator, Assistant Regional Administrator, or Division Director.

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                             BCRLF Terminology

       The following terminology will be used throughout the proposal guidelines:

P      Applicant, or legal recipient, is the state, political subdivision (e.g., city, town, county), or
       Indian tribe that is going to submit, or has submitted, a proposal for a BCRLF Demonstration
       Pilot with EPA. If the proposal is from a coalition, the "applicant" must be the legal recipient
       (lead agency/cooperative agreement recipient) for the coalition.

P     Brownfields Site Manager is the qualified government employee who helps the lead agency
       carry its responsibilities on a site specific basis. The brownfields site manager works on behalf
       of the lead agency...&e also, Roles and Responsibilities section on pages 14 for further
       explanation.

P      Comprehensive  Environmental Response, Compensation, and Liability Act of 1980, as
       amended or CERCLA, also known as "Superfund," is a Federal law that governs  the
       investigation and cleanup of sites. The BCRLF demonstration pilot program is funded under §
       104(d)(l) of CERCLA.

P      Coalition is a grouping of two or more eligible entities (i.e., State, political subdivision, or
       Indian tribe) joined together under one cooperative agreement recipient,. One member of the
       coalition must agree to administer the cooperative agreement and act as lead agency.

P      Cooperative Agreement is the  document negotiated between EPA and those applicants EPA
       selected to receive BCRLF pilot financial  assistance.  The cooperative agreement awards
       federal funds and  outlines the terms and conditions to be met by the recipient of the  funds.

P      Cooperative Agreement Recipient is the entity with the authority to enter into the
       cooperative agreement and is responsible for the overall implementation of the BCRLF
       demonstration pilot. See also, Roles and Responsibilities section on page 13 for further
       explanation.

P      Eligible Entity is a State, political subdivision, or Indian tribe that has established and can
       demonstrate environmentally sound brownfields programs are underway in its jurisdiction.

P      Fund Manager is the cooperative agreement recipient or its legally designated representative.
       The Fund Manager manages the financial  aspects of the fund and ensures that the BCRLF is
       managed in conformance with the cooperative agreement, applicable laws and regulations, and
       prudent lending practices. See also, Roles and Responsibilities section on page 14 for
       further explanation.
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P      Lead Agency is the cooperative agreement recipient.  See also, Roles and Responsibilities
       section on page 13 for further explanation.

P      The National Oil and Hazardous Substances Pollution Contingency Plan or NCP, 40
       CFR Part 300, is the Federal regulation that governs the cleanup of releases of hazardous
       substances, pollutants, and contaminants under CERCLA.

P      Pilot Area is the section(s) of the eligible entities' jurisdiction in which it intends to make
       BCRLF loans.  It is NOT limited to those areas targeted by the Brownfields Assessment
       Demonstration Pilot program or the Targeted Brownfields Assessment program.

P      Political Subdivision is a unit of government that the State determines to have met the
       State's legislative definition of a political subdivision.  40 CFR § 35.6016(a)(31)

P      Proposal is the document submitted to EPA that provides responses to the criteria described in
       this guideline.  If iheproposal is selected by EPA, the applicant will be requested to prepare a
       formal application for a cooperative agreement.
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                          Roles and Responsibilities

       The following section describes the roles and responsibilities associated with a BCRLF Pilot.
This is NOT an exclusive listing of all roles and responsibilities, it is merely a guide.
P      The Cooperative Agreement Recipient

       The Cooperative Agreement Recipient is the entity with the authority to enter into the
       cooperative agreement. As the Cooperative Agreement Recipient, the entity:

              enters into the cooperative agreement with U.S. EPA;

       •       ensures the overall implementation of the BCRLF pilot;

              ensures that the funds provided by EPA are used for authorized purposes;

       •       ensures that these funds are tracked, recorded, and reported to EPA;

              selects the Fund Manager; and

       •       is responsible for the actions of the Fund Manager.

P      The Cooperative Agreement Recipient is the LEAD  AGENCY and must carry out all lead
       agency responsibilities identified in 40 C.F.R. §300.415.  Lead Agency responsibilities include:

       •       determining whether BCRLF cleanup activities at a particular site are authorized by
              CERCLA and the NCP based on site evaluation (described in the NCP at 40 C.F.R.  §
              300.410) and on current site conditions;

       •       conducting a site-specific engineering evaluation and cost analysis of cleanup
              alternatives as required by 40 C.F.R. § 300.415(b)(4);

       •       ensuring that a BCRLF cleanup meets applicable or relevant and appropriate
              requirements under Federal and State environmental laws, as required by 40 C.F.R. §
              300.415G);

       •       ensuring that the NCP public participation requirements (see, 40 C.F.R. § 300.415(n))
              are met.  This includes ensuring the availability of documents, providing adequate public
              comment periods, and designating a  spokesperson to inform the community of actions
              taken, respond to inquiries, and provide information;
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       •      establishing an administrative record for each site, as required by 40 C.F.R. §
              300.800(a).  (The administrative record contains all the information that forms the basis
              for the selection of a cleanup action, including a decision document describing the final
              selection of a BCRLF cleanup.);

              working with the Fund Manager, as loan agreements are developed, to ensure that all
              environmental response requirements will be met and that BCRLF funds are used only
              for authorized activities;

              ensuring the adequacy of each BCRLF cleanup as it is implemented, including, but not
              limited to, ensuring  that all Federal and state requirements for worker health and safety
              are met;

              ensuring that Natural Resource Trustees are promptly notified and coordinated with
              when there are potential damages to natural resources;

       •      ensuring that a site is secure and that it poses no immediate threat to human health or
              the environment, if a borrower is unable or unwilling to complete a BCRLF cleanup;
              and

       •      identifying the government employee6 who will be the lead agency's
              "BROWNFIELDS SITE MANAGER." The brownfields site manager will carry
              out the lead agency's responsibilities on a site-specific basis.

       The Cooperative Agreement Recipient selects the FUND MANAGER

       The Fund Manager is the cooperative agreement recipient or its legally designated
       representative.  The Fund Manager:

              ensures that the BCRLF is managed in conformance with the cooperative agreement,
              applicable laws and regulations, and prudent lending practices.
       6 See, policy clarification in the memorandum dated July 10, 2000, signed by Linda Garczynski,
Director, Outreach and Special Projects Staff, entitled "Clarification of Site Manager (On-Scene
Coordinator Role) ", etc. Typically, the site manager is an employee of the lead agency. Other options
include: 1) an employee of the political subdivision, a state government employee, or federal employee
such as someone from the U.S. Army Corps of Engineers or Bureau or Reclamation; 2) a political
subdivision's use of a city ordinance that permits the temporary hiring of city personnel; 3) designation by
the lead agency of an employee as site manager who utilizes technical support from EPA regional staff;
and 4) designation by the lead agency of any employee as site manager and contracts for technical
support.

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may be a third party (either governmental or non-governmental). If the cooperative
agreement recipient uses pilot funds to enter into agreements with non-governmental
entities for these activities, the agreements must comply with 40 C.F.R. §31.37 in the
case of a subgrant to a non-profit organization, or 40 C.F.R. Part 35 Subpart O for
contracts with service vendors. Intergovernmental agreements may be used for
transactions between governmental units.
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         Legal and Program Guidelines for the Proposals

       The BCRLF program is funded through the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA).  BCRLF pilot funds must be used in accordance with
CERCLA. All CERCLA restrictions on the use of funding also apply to BCRLF funds.7

P  Eligible Applicants for BCRLF Pilots

       States, political subdivisions (40 C.F.R. 35.6015(a)(31)), and Federally recognized Indian
       tribes.

   •   Proposals from coalitions are permitted to apply (see specific requirements for Coalition
       proposals listed on page 18).

P  Eligible Borrowers

       The cooperative agreement recipient may loan to any entity, public or private, that is authorized
       to enter into a loan agreement, can establish a legally binding agreement to repay the loan, and
       can identity a potential source of income for the repayment.

   •   BCRLF pilot funds may be loaned to a party that is an owner/operator of the site only if:

       N  the owner/operator would fall under a statutory exemption from CERCLA liability; or

       N  EPA would use its enforcement discretion and not pursue the party in question under
          CERCLA, as described by EPA guidance (see list in Appendix A).

       N  the owner/operators acquired the property after the time of disposal or placement of
          hazardous  substances and the lead agency determines that the owner/operator has not
          caused, contributed  to, permitted, or exacerbated the release of a hazardous substance on,
          or emanating from that property.

   •   BCRLF pilot funds may NOT be loaned to a party that is a generator or transporter of
       contamination at the site for which that party is requesting funds.
       7 The BCRLF demonstration pilot program is funded under §104(d)(l) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA).
Regulations applicable to this program include 40 C.F.R. Part 31 (Uniform Administration
Requirements for Grants and Cooperative Agreements to State and Local Governments), 40 C.F.R.
Part 35, Subpart O (Cooperative Agreements for Superfund Response Actions), and 40 C.F.R. Part
300 (The National Oil and Hazardous Substances Pollution Contingency Plan).

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    •   BCRLF funds may not be loaned to a party that is suspended, debarred, or otherwise ineligible
       to participate in Federal financial assistance programs.

       Determinations regarding borrower eligibility made by the lead agency do not, however,
limit the authority of the Federal or state government.

P   Eligible Properties and Activities

    •   Use of BCRLF pilot funds is limited to brownfields sites, within the eligible entities jurisdiction,
       that have been determined to have an actual release or substantial threat of a release of a
       hazardous substance. Funds may also be used at sites with a release or substantial threat of
       release of a pollutant or contaminant which may present an imminent and substantial danger to
       the public health or welfare.

    •   BCRLF pilot funds may NOT be used for activities at any sites:  1) listed (or proposed for
       listing) on the National Priorities List; 2) at which a removal action must be taken within six
       months; or 3) where a federal or state agency is planning or conducting a response or
       enforcement action (including sites that are the subject of a unilateral administrative order, a
       court order, and administrative order on consent or judicial consent decree).

    •   Coalition funding is premised on an award of no more than $1,000,000 per eligible entity.
       Loan funds must be directed to properties located within the jurisdictions of the eligible entities
       comprising the coalition.  A preference shall be given in the first round of lending to a loan to
       each individual entity of the coalition.  Subsequent lending to coalition members may be based
       upon project need after the first round of lending has occurred. See also "Special
       Requirements for Coalitions."
   Eligible Activities

   •   A BCRLF pilot (cooperative agreement recipient) must use at least 70 % of the funds provided
       to capitalize its clean up loan fund. EPA will award up to 20% of the cooperative agreement
       funds as direct financial assistance to the cooperative agreement recipient to carry out its
       clean up responsibilities as "lead agency" when used in combination with a specific loan.  The
       remaining 10% of the cooperative agreement may be used for the cooperative agreement
       recipients' general administrative costs.

   •   BCRLF activities must be removals, as defined in CERCLA §101(23). The NCP at 40 C.F.R.
       §300.415 describes some examples of removal actions.

   •   BCRLF cleanups must meet the NCP requirements identified for non-time critical removal
       actions —  i.e., removal actions for which a planning period of at least 6-months exists. These

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    requirements are identified primarily in 40 C.F.R. §§300.415 and 300.800. Pilot funds may be
    used for costs associated with meeting any of these requirements, including the requirement to
    conduct engineering evaluation and cost analysis of cleanup alternatives and all public
    participation requirements.

•   BCRLF pilot loan funds may be used for site monitoring activities that are necessary during the
    cleanup process (e.g., site sampling for cleanup verification).

•   BCRLF pilot funds may NOT be used to conduct environmental response activities preliminary
    to cleanup, such as site assessment, site identification, and site characterization.

•   BCRLF pilot funds may NOT be used to clean up products that are part of the building
    structure and result in exposure within residential buildings or business or community structures
    (e.g., interior lead-based paint contamination or asbestos which results in indoor exposure).

•   BCRLF pilot funds may NOT be used for cleanup of petroleum products, unless they are
    believed to be co-mingled with  a hazardous substance, pollutant, or contaminant (e.g., used oil).
    CERCLA expressly excludes petroleum  from the definition of hazardous substances.

•   BCRLF pilot funds may NOT be used for development activities that are not removal actions
    (e.g., construction of a new facility or marketing of property).

Special Requirements for Coalitions Proposals

•   A single entity must be identified as the applicant.

•   A letter of agreement, from each coalition member, must be included as an attachment.

•   Only one award will be considered per eligible entity within the coalition, i.e. a political
    subdivision would only be eligible for up to $1,000,000.

•   Coalition financial assistance is  premised on an award of no more than $1,000,000 per eligible
    entity of which a BCRLF pilot (cooperative agreement recipient) must use at least 70 % of the
    funds provided to capitalize its clean up loan fund.  EPA will award up to 20% of the
    cooperative agreement funds as direct financial assistance to the cooperative agreement
    recipient to carry out its clean up responsibilities as "lead agency" when used in combination
    with a specific loan.  The remaining 10% of the cooperative agreement may be used for the
    cooperative agreement recipients' general administrative costs. The 20% direct financial
    assistance may only be used in combination with a loan.

•   Loan funds must be directed to properties located within the jurisdictions of the eligible entities
    comprising the coalition.

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    •   A preference shall be given in the first round of lending to a loan to each individual entity of the
       coalition.  Subsequent lending to coalition members may be based upon project need after the
       first round of lending has occurred.  Each coalition member must consent to a loan(s) to other
       coalition entities when the amount of the loan exceeds the proportionate share for each coalition
       member.

    •   Costs (including costs covered by loan funds and direct financial assistance) associated with a
       particular  cleanup may not exceed $2 million. (CERCLA §104(c)(l)).

    •   An existing coalition (a coalition already having been selected to receive a BCRLF pilot), may
       apply on behalf of a new entity seeking to join the existing coalition. The entity seeking entry
       into the coalition must otherwise be  meet eligibility i.e, be a State, political subdivision, or Indian
       tribe that has established and can demonstrate the progress already made in the assessment,
       cleanup and revitalization of brownfields in the community, State or Tribe. Existing coalitions
       making proposals under this guidance on behalf of new entities shall provide a written
       affirmative statement that members of the existing coalition (chief executive of the coalition  entity
       e.g., the mayor or county executive) have agreed to admission of additional entities to the
       coalition.8

    Other Restrictions

    •   BCRLF pilot funds may NOT be used for job training. Support for job training  activities may
       be available through the Hazardous  Material Training and Research Institute, EPA programs,
       other Federal agency programs, and state and local programs.

    •   BCRLF pilot funds may NOT be used to support "lobbying" efforts of the cooperative
       agreement recipient (e.g., lobbying members of Congress or State legislatures, or lobbying for
       other Federal grants, cooperative agreements, or contracts).

       The cooperative agreement recipient cannot use BCRLF pilot funds to match any other Federal
       funds without specific statutory authority.  (However, the borrower may use BCRLF loan
       funds to match other federal funds if the use of BCRLF funds is in accordance with
       all other BCRLF requirements and the requirements of the other federal agency.)

    •   The cooperative agreement recipient is responsible for complying with all applicable Federal
       requirements that are applicable to the BCRLF by operation of statutes, executive orders,  and
       8 EPA strongly recommends that coalitions establish agreements addressing membership
responsibilities and operating procedures to ensure the efficient functioning of a coalition, particularly if
the coalition is made up of more than 2 or more members and that such agreements be in place prior to
approval of cooperative agreement.

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regulations, in addition to CERCLA requirements (e.g., The Davis Bacon Act, 40 U.S.C.
§276a et seq. applies to all construction, repair, or alteration projects funded entirely, or in
part, with CERCLA funds.)

The cooperative agreement recipient must provide evidence that it is making significant progress
toward loaning the amount available under this agreement through its quarterly reports. If the
loans funds are not used by the end of this agreement, and the term is not extended by EPA, the
funds will be withdrawn.
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                           Structure  of the Proposal

Proposals for BCRLF pilots must address all "Threshold" and "Evaluation" criteria. Proposals should
consist of the following sections:

    Cover Page (1 page)
    Proposal Overview (1-2 pages)
    Budget (1 page)
    Responses to Threshold Criteria - Section A and B (up to 5 pages)
    Responses to Evaluation Criteria — Sections C- F (up to 9 pages)
    Attachments (as appropriate; please provide an index)
    Coalition proposals may exceed page limits, as needed. Coalitions should pay particular
    attention to Evaluation Criteria "Cl" and "C2" in preparing their proposals.

       Attachments should be kept to a minimum. Attachments that will be considered during proposal
evaluation include maps and letters of certification and commitment, support, or partnership from other
government or private entities. Examples of attachments that will not be considered during proposal
evaluation include strategies or plans developed for other programs, advertising brochures, newspaper
articles, resolutions, statutes, and videotapes. Information in these types of attachments should be
distilled and incorporated into the responses to criteria.

       To ensure fair and equitable evaluation  of the proposals, please do not exceed the above,
single-sided page limitations. In addition, all materials included in the proposal  (including maps and
other attachments) must be printed on letter-sized paper (S1/^" by  11") and font sizes may be no
smaller than 11 points.

       Please submit two copies of your proposal materials, including attachments. One copy
should be submitted directly to EPA Headquarters and the other copy  should be submitted to
the appropriate EPA Regional BCRLF Coordinator. (Seepage 38).

                                       Cover Page

       This is intended to identify the BCRLF Demonstration Pilot applicant  and a point of contact for
communication with EPA. This should be on a  single page and in the format of your choice.

 1.     Proposal title: this should be as specific as possible.

 2.     Location: city, county, and state of the  pilot area.

       • For a coalition proposal, please list the relevant information for EACH eligible entity,
       with the lead member identified.
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3.      Scope and population of the pilot area.

       • For a coalition proposal, please list relevant information for EACH eligible entity.

4.      Applicant identification: the name of the proposed cooperative agreement recipient (e.g., state
       or local agency).

       • For a coalition proposal, the entity named here will be considered the cooperative
       agreement recipient.

5.      Proposal director: the name of the person who is responsible for the proposal. We will contact
       this person if we need further information.

6.      Mailing address of the proposal director.

7.      Telephone/Fax/E-mail of the proposal director.

8.      Name of the chief executive of the applicant (e.g., Governor, Mayor, County Executive, Tribal
       President, etc.), if different from the proposal director.

       • For a coalition proposal, please list the chief executive of EACH entity.

9.      Mailing address of the chief executive, if different from the proposal director.

       • For a coalition proposal, please provide the mailing address of the chief executive for
       EACH eligible entity.

10.     Telephone/Fax/E-mail of the chief executive, if different from the proposal director.

       • For a coalition proposal, please provide the Telephone/Fax/E-mail of the chief
       executive for EACH eligible entity.

11.     Identification as to whether an eligible entity(ies) is designated as a Federal Empowerment
       Zone(EZ)/Enterprise Community(EC).

       • For a coalition proposal, please identify the Federal EZ/EC for EACH eligible entity, if
       applicable.

12.     Date submitted: the date when the proposal is postmarked by the U.S. Postal Service or sent
       to EPA via registered or tracked mail.
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 13.    Pilot period: the cooperative agreement recipient generally has three years from the
       cooperative agreement start date to obligate (enter into loan agreements) all funds awarded.
       Final payment, disbursement of award funds, and close out must be complete within 5 years of
       award date. This will be determined by the applicant's projected implementation schedule for
       the initial round of lending to be described in "Criteria D. 1: "Describe Your Proposed BCRLF
       Pilot Financial Plan" (See page 31).

 14.    Community background: demographic statistics on minority, unemployment, and poverty rates
       or other statistics that demonstrate distress in the pilot area.

       • For a coalition proposal, please provide the relevant demographic statistics for EACH
       eligible entity.

 15.    Cooperative partners: provide a list of the individuals and organizations that have agreed to
       participate in the implementation of the pilot without charge.
                                   Proposal Overview

       The Proposal Overview is an important opportunity to briefly summarize the overall goals and
objectives of the proposed pilot. Some of the information you provide in the Proposal Overview will
overlap with the evaluation criteria.

   Provide an overview of the following topics:

   • Overall brownfields goals and objectives.
   • How capitalization of a BCRLF will help advance your goals and objectives.
   • How the EPA cooperative agreement funds will be used (e.g., administration, loans, and
   financing).
   • For a coalition proposal, please list the relevant information for EACH eligible entity.
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                                           Budget
PROPOSAL TASKS
Budget
Categories
Administrative
Expenses
Personnel
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Other
Subtotal-
Loan
Capitalization
Subtotal-
Direct
Financial
Assistance to
support Lead
Agency funding
Subtotal:
TOTAL
Task 1












Task 2












Task 3












Task 4












TOTAL








*can not exceed
$100,000 on
$1,000,000 award
* at least $700,000
on $1,000,000 award
* may be up to
$200,000 used only
in combination with
loans made

       Provide a potential budget for your proposal. This should show the distribution of the BCRLF
pilot financial assistance, including the portion of funds to be used to capitalize the revolving loan fund
(at least 70%), the direct financial assistance portion of the funds (up to 20%); and the portion of the
funds (up to 10% of the total award) for administrative costs, legal fees, and professional services. A
clear and concise budget is a critical element of the package.
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       For coalition proposals, the budget should clearly identify how the funds will be distributed
among each coalition member. No one member may receive more than a $1,000,000 allotment.

                 Threshold Criteria (Sections A and B)

       Applicants must meet the threshold criteria—demonstate an existing commitment to
brownfields, and demonstrate an ability to manage a revolving loan fund and environmental
cleanups—to be selected for a BCRLF Demonstration Pilot. This section addresses the threshold
criteria, i.e., the minimum criteria, an applicant must demonstrate to assure U.S. EPA it has the ability to
implement a BCRLF pilot.

A.  Existing Local Commitment to Brownfields

    With these guidelines, EPA is broadening eligibility to include any State, political subdivision or
Indian Tribe with an established brownfields program.

    Describe the progress that your community has made in the assessment, cleanup, and revitalization
of brownfields. Include in your description any sites in your community that have been identified,
characterized, or assessed as brownfields sites including those sites identified, characterized, or
assessed under a previously awarded EPA Assessment Demonstration pilot or a targeted brownfields
assessment.

    Coalitions should pay particular attention to the presentation of information in this portion
of the proposal to ensure information on EACH coalition member is provided.

B.  Ability to Manage a Revolving Loan Fund and Environmental Cleanups

    The proposed cooperative  agreement recipient will carry out two primary functions:  1) lead agency
responsible for managing environmental cleanups; and 2) be responsible to EPA for fund management,
for the purposes of directing and administering the BCRLF pilot.

    B.I.   Demonstrate That You Have an Effective Institutional Structure in Place or
          Planned

              (a). Please identify:  (1) the entity that will be lead agency, including the government
    employee that will be the lead agency's brownfields site manager; and (2) the types of entities that
    may act as fund manager9. If, at this time, the applicant is unable to identify the government
       9 Recipients who intend to contract with an entity to perform fund manager services must
comply with competitive procurement procedures as required by 40 CFR Part 35, Subpart O.

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    employee who will act as the Brownfields Site Manager or the entity that will act as Fund Manager
    at this time, describe your plan for selecting the Brownfields Site Manager or Fund Manager.

              (b). Lead Agency

                     (1) Provide background information on the institution and staff comprising the
       Lead Agency (reminder: cooperative agreement recipient = lead agency). This
       background information should describe the experience and qualifications the applicant has to
       act as Lead Agency or describe how the applicant intends to acquire this expertise. Please
       note, a cooperative agreement recipient/lead agency may enlist the services of other entities that
       have experience with overseeing and carrying out environmental response actions to help the
       cooperative agreement recipient fulfill its lead agency responsibilities. The cooperative
       agreement recipient may NOT, however, designate another entity to act as the lead agency.

                     Your description of lead agency experience and qualifications should be based
       on the responsibilities described on page 13 and must include a demonstration that the
       proposed Lead Agency has, or has access to, the following:

                            (a) Expertise in conducting or overseeing environmental response
           actions carried out in accordance with federal and state requirements and, in particular,
           experience with,  or knowledge of, the non-time critical removal requirements in the
           National Contingency Plan (40 C.F.R. § 300.415); and

                            (b) Sufficient record-keeping expertise to ensure that the use of
           BCRLF funds (by the Cooperative Agreement recipient and by the borrower) is tracked,
           recorded, and reported to EPA.

                     (2) Provide specific information, including experience and qualifications, on the
       government employee proposed to be your Brownfields Site Manager.10 Your description of
       your brownfields site manager's experience and qualifications must include a demonstration that
       the employee identified to serve this function has, or will have, the following:

                            (a) Experience with on-site coordination, direction, and review of
              environmental response activities; and

                            (b) Experience with, or knowledge of, the non-time critical removal
              requirements in the National Contingency Plan (40 C.F.R.  § 300.415).
       10 Options are available for the selection of a BCRLF Site Manager. (See, policy clarification
memorandum dated July 10, 2000, "Clarification of Site Manager (On-Scene Coordinator Role)",
etc.) See footnote 6 page 14.

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                     (3) Provide information on any past or pending legal actions against the
       institutions or individuals comprising the Lead Agency (including the brownfields site manager)
       relating to public and commercial financial and environmental matters, how those actions were
       resolved, and whether any are currently suspended, debarred, or otherwise ineligible to receive
       federal funding.

                     (4) If the proposed Cooperative Agreement Recipient plans to enlist the
       services11 of other entities to assist in carrying out Lead Agency responsibilities, describe the
       relationship between the potential Lead Agency and these institutions and the type of agreement
       (e.g., intergovernmental agreement, or contract) that is planned.  If the proposed Cooperative
       Agreement Recipient plans to enlist the services of a government employee to act as the
       Brownfields Site Manager who is not an employee of the Cooperative Agreement Recipient
       (e.g., the Brownfields Site Manager is an employee of the State or Federal government that will
       work under the direction of a political subdivision lead agency), describe the relationship
       between the proposed Cooperative Agreement Recipient and the proposed Brownfields Site
       Manager.

                     (5) If the proposal is from a coalition, please describe how the proposed
       Cooperative Agreement recipient will implement its lead agency responsibilities with respect to
       the coalition, for example, how the lead agency would ensure that environmental response
       requirements are met at sites where it does not typically assert jurisdiction (i.e., sites located in
       other member's political boundaries).

       Note: Political subdivision applicants who are selected to receive BCRLFfunds must
    obtain written agreement from the State that the political subdivision may assume lead
    agency responsibility for removal activities at any site or sites addressed with BCRLF funds.
    This should be submitted with the formal cooperative agreement application package in the
   form of a letter from the State. Applicants who are selected to receive BCRLF funding
    should consult with the U.S. EPA Regional BCRLF Coordinator (see page 38) if they expect
    they will be unable to obtain this letter in time to submit it with the formal cooperative
    agreement application package.

              (c). Fund Manager

                     (1) If the proposed Cooperative Agreement Recipient plans to enlist the
       services of other institutions or individuals to act as the Fund Manager, describe the relationship
       11 Intergovernmental agreements may be used for transactions between governmental units.
Contracts with vendors of services and produces must be entered into under procedures that are
consistent with the procurement procedures found in 40 C.F.R. Part 35, Subpart O. Note: a lead
agency may NOT designate another entity nor may it subgrant to another entity the authority to
act as the lead agency.

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       between the potential Cooperative Agreement Recipient and the institution or individual and the
       type of agreement (e.g., intergovernmental agreement, contract, or subgrant) that is planned.12

                     (2) Provide information on the qualifications of institutions and staff the
       applicant intends to have act as Fund Manager.13 Typical information should include:

                            (a) Financial skills to manage the financial health of the fund;

                            (b) Analytical skills to evaluate potential borrowers on both technical
           and financial criteria;

                            (c) Legal skills to structure loan agreements, collateral arrangements,
           and repayment instruments; and

                            (d) Recordkeeping skills to track and report on the activities  of the
           BCRLF and its borrowers (e.g., number of loans, categories of borrowers, and  program
           income).

       Note, that as part of its substantial involvement EPA  may request information  on any
   past or pending legal actions against the institution or individuals proposed to be the Fund
   Manager relating to public and commercial financial and environmental matters and how
       12 Intergovernmental agreements may be used for transactions between governmental units. Any
subgrants must be consistent with 40 C.F.R. §31.37 and with the distinction between
subrecipients and vendors made in OMB circular A-133. Contracts with vendors of services and
produces must be entered into under procedures that are consistent with the procurement procedures
found in 40 C.F.R. Part 35,  Subpart O. Note: The cooperative agreement recipient may subgrant
to a Fund Manager.

       13 To reduce their administrative costs, cooperative agreement recipients are permitted to
designate third parties to serve as the fund manager. Should an applicant choose to (1) coordinate the
administration of the BCRLF pilot with other existing revolving loan funds (e.g., EDA, others); (2) enter
into agreements with the state to administer the BCRLF pilot funds; or (3) coordinate the administration
of funds with other selected BCRLF cooperative agreement recipients, the applicant must  ensure that
BCRLF pilot funds are used only for authorized purposes.

       The cooperative agreement recipient will be responsible for all actions of the fund manager.
Therefore, should a BCRLF pilot cooperative agreement be terminated by EPA, the recipient must
appoint a receiver to manage outstanding loans or EPA will appoint a receiver at the Agency's
discretion.
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    those actions were resolved.  The institution or individual selected as fund manager must not
    be currently suspended, debarred, or otherwise ineligible to receive federal funding.

                      (3) For coalition proposals, please describe how the fund manager will manage
       and separately track the funds for each of the eligible entities that are part of the coalition.

    B.2.   Demonstrate  Your Legal Authority to Manage BCRLF Cleanups

    Please provide a legal opinion (in the form of an attachment) from the applicant's legal
counsel that demonstrates the applicant's legal authority to perform the actions necessary to manage
environmental cleanups.  This should include a demonstration of jurisdiction, as well as the authority to
carry out the responsibilities, described previously, of the Lead Agency and Brownfields Site Manager
(see pages 13-15).  This authority may be based in statute, regulation, or other authority.14

    B.3.   Demonstrate  Your Legal Authority to Manage a Revolving Loan Fund

    Please provide a legal opinion (in the form of an attachment) from the applicant's legal
counsel that demonstrates the applicant's legal authority to perform the actions necessary to manage a
revolving loan fund. Legal  authority must include, among other things, the ability to enter into the
cooperative agreement, hold funds, make loans, enter into loan agreements, hold collateral, charge
interest, and collect repayments. This authority may be based in statute, regulation, or other authority. 15
    E.4.    Demonstrate the Applicant's Status as a Political Subdivision

    Provide evidence that your entity is a political subdivision according to state law, e.g., a letter from
you State Attorney General's office.
       14 In some cases, all authority may come from one source. For example, if the potential
cooperative agreement recipient is a municipal government, your state may have granted broad powers
to all municipalities that include those needed to manage a BCRLF cleanup. In some cases, however,
such broad authority may not exist. In these cases, the legal opinion must cite specific authorities.


       15 In some cases, all authority may come from one source. For example, if the potential
cooperative agreement recipient is a municipal government, your state may have granted broad powers
to all municipalities that include those needed to manage the loan administration portion of the BCRLF.
In some cases, however, such broad authority may not exist. In these cases, the legal opinion must cite
specific authorities.

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                    Evaluation Criteria (Sections C-F)

       Those applicants that meet the threshold criteria will then be evaluated based on their responses
to four evaluation criteria: (1) demonstration of need; (2) commitment to make loans and to creative
leveraging of EPA funds; (3) benefits of BCRLF pilot loans to the local community; and (4) long-term
benefits and sustainability.

    Your response to the following criteria will be the primary basis on which EPA determines the size
of award.  EPA's evaluation panel will review the proposals carefully  and assess each response based
on how well it addresses each criterion.

    Responses for coalition proposals must provide sufficient detail for each of the eligible
entities within the coalition, where applicable.

C.  Evaluation Criteria: Demonstration of Need

    C.I.   Problem Statement and Unique Needs of the Community

              (a). Provide demographic measures that demonstrate  economic distress in targeted
    municipalities and neighborhoods. Demographic measures should include population (including
    distribution of minorities), poverty rates, and unemployment rates.  Other measures could include
    per capita or family income levels or other measures that demonstrate distress.

              (b). Explain the unique needs of the community, including why certain demographic
    problems are a priority. Specific goals and strategies developed to deal with problems should be
    identified. Connecting to environmental justice issues, city or county-wide strategic planning, or
    comparative risk efforts is encouraged. If specific neighborhoods or communities have been
    targeted for enhanced development, a brief description of those plans should be included in the
    proposal.

              (c). Explain interactions with other local, state, or federal economic incentive programs
    designed to increase jobs and capital investment (e.g., federal enterprise communities and
    empowerment zones, state-designated zones, tax increment financing districts, and public
    improvement districts).  Any public/private investment activities associated with the demographic
    concerns should be described.

       Coalitions should pay particular attention to presentation of information in this portion
    of the proposal to ensure information on  EACH coalition member is provided.

    C.2.   Description of Potential Borrowers and Property
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              (a).  Detail the types of borrowers expected to benefit from BCRLF pilot financing and
    provide general information about their financial needs. If subawards will be used in combination
    with loans to non-profit or governmental borrowers, please indicate whether you intend to include
    this feature as part of your loan program.

              (b).  Explain the process for identifying and selecting prospective BCRLF borrowers
    and detail how they will be certified as qualified borrowers. Identify planned procedures for
    determining how potential borrowers requesting BCRLF pilot loans are well qualified to direct the
    proposed redevelopment and have a demonstrated record of success.

              (c).  Describe specific areas that are to be included in the BCRLF pilot eligibility pool.
    Maps of eligible areas of emphasis, with clear explanations attached, should be provided. When
    possible, the proposal should provide descriptions of eligible properties.

              (d). Considering the information requested in (a), (b), and (c), provide a proposed
    BCRLF pilot implementation schedule and time line for the initial round of lending.16  (EPA strongly
    urges proposal applicants to work toward making an initial loan within 12 months of award.)

       Coalitions should pay particular attention to presentation of information in this portion
    of the proposal to ensure information on each coalition member is  provided.
D.  Evaluation Criteria: Commitment to Making Loans and to Creative
Leveraging of EPA Financial Assistance

  D. 1. Describe Your Proposed BCRLF Pilot Financial Plan11

  Briefly outline your proposed financial plans.  Provide the following:

      (a),  the proposed financing structure for the program, such as planned level of fund capitalization,
  loan schedule, and administrative costs;

      (b).  a brief description of how the BCRLF program may be operated in relationship with funding
  mechanisms other than EPA pilot funds;
       16 Failure to comply with the pilot period can result in the deobligation and recovery of
undisbursed cooperative agreement funds, at the option of EPA.

       17 Once a BCRLF pilot proposal is selected, but prior to when the cooperative agreement is
signed, applicants will be asked to provide a more detailed financial plan demonstrating the applicant's
financial management capabilities.

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    (c). a description of how BCRLF funds will be integrated into an existing redevelopment loan,
grant, or tax incentive program, if appropriate;

    (d). if possible, identify anticipated initial loan recipients and the level of funding to be provided
(this is not required); and

    (e). a proposed BCRLF pilot implementation schedule for the initial round of lending.

D.2. Ability to Attract and Support Other Financing

    (a). Provide information on all other currently available or anticipated sources of funding for
cleanup in the eligible area, including other federal, state, local, non-profit, and private funding
sources. Proposals should demonstrate the extent to which EPA seed funding of a BCRLF pilot will
attract other resources and be used in conjunction with those resources to maximize benefit.

    (b). Discuss how you plan to use BCRLF pilot funds to address funding gaps for cleanup of
eligible BCRLF pilot area properties.

    (c). Describe how the BCRLF pilot program will be coordinated with other revolving loan funds
or financing programs for environmental assessment and cleanup, if available.

D.3.  Cash and In-Kind Contributions

  While applicants are not required to match seed capitalization funds, financial participation is
encouraged and will be taken into account in evaluating proposals. Applicants, therefore, should
describe their intended financial contributions to capitalizing the proposed BCRLF and the sources of
these capitalization funds. This discussion can include both direct cash contributions and access to
relevant in-kind services.

D.4. Efficiency of Planned Administrative Structure

  Describe the anticipated administrative framework for the BCRLF pilot and discuss how the
planned BCRLF pilot structure will be integrated with other programs (e.g., other revolving loan fund
programs) in a manner that minimizes administrative costs for the BCRLF pilot program.
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E.  Evaluation Criteria: Benefits ofBCRLF Loans to the Local Community

  E. 1.  Announcement and Notification ofBCRLF Fund Availability

       (a). Describe your procedures for providing for public hearings and Notification of Funds
  Available (NOFA) when a BCRLF program is being planned and before it is implemented.

       (b). Describe the public outreach process that must be held for the initial notification of the loan
  program. If a formal public comment period is provided, and the applicant allows for no action on
  the program until the comment period is completed, details must be included in the proposal.
  Documentation of all outreach efforts must be provided to EPA upon the Agency's request.

       (c). Describe your procedures for notifying minority business enterprises, women's business
  enterprises,  and small business enterprises located within your jurisdiction about the BCRLF
  availability.  Discuss any relationship which might already exist between the proposed cooperative
  agreement recipient and these types of business enterprises. Describe any existing procedures for
  linking these enterprises with opportunities under the BCRLF and, if no procedures  currently exist,
  how you might develop such procedures. (For coalition proposals, answer for each  coalition member
  community.)

  E. 2.  Community Involvement in Future Land Reuse

     (a). Provide evidence of your community's or communities interest in brownfields problems.
  Describe you efforts to involve  community-based organization in developing this proposal.

     (b).  Describe how the proposed BCRLF pilot is community-based or how the  applicant plans to
  involve the community in targeted areas of the pilot. Specifically, describe how you will involve the
  public in cleanup decisions, including decisions about future land use, for each site addressed by
  BCRLF funds.

     (c).  Describe partnerships with academic associations, environmental justice groups, established
  community  contacts, and organizational networks.  Detail the method for including these groups in
  land reuse decisions.

     (d).  Describe any standards for land-use based environmental cleanups.  Include particulars on
  community  involvement in the determination of the selected environmental cleanup standards.

     (e).  To demonstrate significant involvement of other community organizations or local agencies,
  please provide letters of commitment from involved organizations, if available. (These letters are not
  required).
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  E. 3.  Contribution to Community Economic Development Plans

    Cooperation among municipal, county, state, federal, and private economic development programs
  is encouraged. Please provide the following:

     (a),  a summary of such partnerships already developed for the delivery of economic benefits to
  the impacted brownfields area;

     (b).  details on how the partners cooperate for overall economic community development; and

     (c).  a description of the relationship envisioned with these partners under the BCRLF pilot
  program.

  E. 4.  Environmental Justice Benefits

  Environmental justice seeks to rectify the disproportionately high burden of environmental pollution
that is often borne by low income, minority, and other disadvantaged communities.

     (a).  Describe how these communities have participated in the development of your brownfields
  redevelopments plans  and how they will continue to participate in your Brownfields Cleanup
  Revolving Loan Fund.

     (b)  Describe your plans for ensuring that affected disadvantaged populations benefit
  environmentally and economically (directly or indirectly) from the cleanup and reuse of brownfields as
  proposed in your proposal.

     (c).  Describe how you plan to ensure that environmental risks to disadvantaged communities are
 not increased during cleanup and redevelopment.

  E. 5  Projected Sustainable Benefits

  To ensure that the applicant's brownfields program continues when EPA funds are exhausted, please
provide the following:

       (a), the long-range planning and budget efforts established by entity responsible for
  implementing the brownfields program;

       (b). a description of the environmental and economic benefits of the BCRLF pilot, including the
  benefits  of near-term projects and the projected sustainable environmental protection and economic
  stability  of the community (Projected taxes, job creation, and pollution prevention information, if
  available, should be presented.); and
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       (c). a description of the intangible social benefits of the BCRLF pilot (e.g., increased
  community pride, improved perceptions that the community is a good place to live and work, and
  decreased fear of crime).
F.   Evaluation Criteria: Long-Term Benefits  and Smtainability

  F. 1.  National Replicability

  Describe how this pilot can serve as a model for others to use in addressing barriers to revitalizing
brownfields. (Given the complexity and local nature of the brownfields problem, no single plan will be
suitable nationwide, but how you address specific barriers may provide lessons for others with similar
problems.)

  F.2.  Measures of Success

  Success in this demonstration pilot should be measured in terms of environmental achievement,
revolving loan fund activity, and program strategy.

       (a). Describe your plans for measuring success in achieving your BCRLF pilot goals.
  Measures of success should be specific and linked to the goals established for your pilot.  Provide
  quantifiable measures whenever possible.

       Measures of success should include:
       • environmental indicators (number of properties with cleanup activities started using BCRLF
       funds; and
       • number of properties with cleanup activities completed using BCRLF funds); and
       • economic indicators (number of BCRLF loans made, amount of BCRLF funds  loaned;
       and
       • number of BCRLF loan applications received.

       Measures may also include:
       • institutionalized environmental  or outreach processes or other indicators of what you would
       consider a successful brownfields program (e.g., integration of the BCRLF with other funding
       resources may also be considered as a measure of   success or the leveraging  of private or
       public investment).

       (b). Describe baseline measures that you have developed or plan to develop to measure
  success. If baseline measures have not been developed yet, describe how and when you plan to
  develop them.
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     (c). Describe your plans to document our pilot's progress and success and to make quarterly
reports to EPA.
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     Proposed Schedule for Awarding EPA's Brownfields
     Cleanup Revolving Loan Fund Demonstration Pilots
December 18, 2000

January 2001


February 2001


March 2001


September 2001
Deadline for submission of BCRLF Pilot proposal

Regions conduct initial proposal evaluation and
prioritization

EPA Headquarters review and selection of BCRLF
proposals

Announcement of proposals selected for the FY 01
BCRLF demonstration pilots

BCRLF demonstration pilot cooperative agreements
awarded
                                37

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      The BCRLF pilot proposals must be post-marked and sent to U.S. EPA
Headquarters and EPA Regional Offices via registered or tracked mail no later than
December 18, 2000. Please note address for submission of proposals will vary
according to the whether a "next day" delivery service (e.g., FEDEX) is used.

                              Please send to :

                    U.S. Environmental Protection Agency
                            Barbara Bassuener
                 OSWER Outreach and Special Projects Staff
                              Mail Code 5105

                 IF SENDING VIA U.S. POSTAL SERVICE
                        1200 Pennsylvania Ave, N.W.
                          Washington, DC  20460

             IF SENDING VIA NEXT DAY DELIVERY SERVICE
                            401 M Street, S.W.
                          Washington, D.C.  20460

                                   and

                    send a duplicate copy to the appropriate
                       U.S. EPA REGIONAL OFFICE
                        ATTN: BCRLF Coordinator
               (see page 34 for a listing of EPA Regional Offices)
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                U.S. EPA Regional Office BCRLF Coordinators
If you have questions regarding the proposal, you may call EPA's Superfund Hotline at 1-800-
424-9346 or your Headquarters contact or Regional representative presented below:
Regions
EPA Region 1
Lynne Jennings
EPA Region 2
Larry D' Andrea
EPA Region 3
Sherry Gallagher
EPA Region 4
Wanda Jennings
EPA Region 5
Alan Baumann
EPA Region 6
Roger Hancock
EPA Region 7
Debi Morey
EPA Region 8
Tom Pike
EPA Region 9
Scott Miner
EPA Region 10
Timothy Brincefleld
States
CT, ME, MA, NH, RI, VT
NJ, NY, PR, VI
DE, DC, MD, PA, VA,
WV
AL, FL, GA, KY, MS,
NC, SC, TN
IL, IN, Ml, MN, OH, WI
AR, LA, MM, OK, TX
IA, KS, MO, NE
CO, MT, ND, SD, UT,
WY
AZ, CA, ffl, NV, AS, GU
AK, ID, OR, WA
Address and Phone Number
John F. Kennedy Federal Building
One Congress Street
Suite 11 00 (HIO)
Boston, MA 02203
Phone (617) 918-1210 Fax (617) 918-1291
290 Broadway
18th Floor
New York, NY 10007
Phone (212) 637-4314 Fax (212) 637-4360
1650 Arch Street
Philadelphia, PA 19103
Phone (215) 814-3211 Fax (215) 814-5518
Atlanta Federal Center
61 Forsyth Street
Atlanta, GA 30303
Phone (404) 562-8682 Fax (404) 562-8628
77 West Jackson Boulevard (MC SE-4J)
Chicago, IL 60604-3507
Phone (312) 886-3058 Fax (312) 886-4071
First Interstate Bank Tower at Fountain PI.
1445 Ross Avenue, Suite 1200
Dallas, TX 75202-2733
Phone (214) 665-6688 Fax (214) 665-6660
90 IN. 5th Street
Kansas City, KS 66101-2728
Phone (913) 551-7593 Fax (913) 551-8688
999 18th Street, Suite 500 (EPR)
Denver, CO 80202-2405
Phone (303) 312-6982 Fax (303) 312-6071
75 Hawthorne Street, H-l
San Francisco, CA 94105
Phone (415) 744-2237 Fax (415) 744-1796
1200 Sixth Avenue
Seattle, WA 98101
Phone (206) 553-2100 Fax (206) 553-0124
U.S. EPA Headquarters Contacts:
Barbara Bassuener
    401 M Street, SW (MC 5101)
    Washington, DC 20460
    (202) 260-9347
Jennifer Millett Wilbur
401 M Street, SW (MC 5101)
Washington, DC 20460
(202) 260-6454
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                              Appendix A.
           List of EPA Brownfields Policy and Guidance

Note: Many of these documents can be found at the EPA Brownfields website,
http://www.epa.gov/swerosps/bf/gdc.htm

Brownfields Cleanup Revolving Loan Fund Administrative Manual (May 1998)

Brownfields Cleanup Revolving Loan Fund Administrative Manual: Model Terms and Conditions
(Oct. 1998)

Policy on the Issuance  of Comfort/Status Letters (November 12, 1996)

Soil Screening Guidance Fact Sheet (July 1996)

Revised Model Comfort Letter Clarifying NPL Listing, Uncontaminated Parcel
Identifications, and CERCLA Liability Involving Transfers of Federally-Owned Property
(January 16, 1996)

Underground Storage Tank Lender Liability Rule (September 7, 1995)

Land Use in the CERCLA Remedy Selection Process Directive (May 25, 1995)

Community Reinvestment Act Regulations and Home Mortgage Disclosure (May 4, 1995)

Guidance on Deferral of NPL Listing Determinations While States Oversee Response Actions
(May 3, 1995)

Military Base Closure: Guidance on EPA Concurrence in the Identification of
Uncontaminated Parcels Under CERCLA Section 120(h)(4) (April 19, 1994)

Guidance on Agreements with Prospective Purchasers of Contaminated Property
(May 24, 1995)

Policy Toward Owners of Property Containing Contaminated Aquifers (May 24, 1995)

"Asset Conservation, Lender Liability, and Deposit Insurance Protection Act of 1996" (September
30,1996)

The Effect of Superfund on Involuntary Acquisitions of Contaminated Property by Government
Entities (December 11,  1995)

Policy on CERCLA Enforcement Against Lenders and Government Entities that Acquire Property
Involuntarily (December 11, 1995)

Tax Incentive Fact Sheet (August 1997)

Guidance on Cumulative Risk Assessment (July 3, 1997)

Liability and Other Guidance (April 1997)

Targeted Brownfield Assessment Fact Sheet (November 1998)

Fund Brownfields Remediation with the Clean Water State Revolving Loan Fund (October 1998)
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                    Appendix B: List of Current  104 BCRLF Pilots
Region 1
Berlin, CT                       $  500,000
Naugatuck Valley River
 Communities and Danbury, CT    $  850,000
Bridgeport, CT*                  $  500,000
Hartford, CT                     $  500,000
Stamford, CT+                   $  750,000
Lewiston, ME                   $  500,000
Portland, ME                    $  500,000
Boston, MA*                    $  500,000
Brockton, MA                   $  500,000
Central Massachusetts
  Economic Development
  Authority                     $  500,000
Franklin Regional
  Council of Governments
  (Colrain & Greenfield, MA)      $ 1,000,000
Gloucester, MA                  $  500,000
Lawrence, MA                   $  500,000
Lowell, MA                     $  500,000
Lynn, MA                       $  450,000
Mystic Valley Development
  Commission (Maiden, Medford,
  and Everett, MA)              $  500,000
New Bedford, MA                $  500,000
Pioneer Valley Planning
  Commission (Springfield,
  Chicopee, Westfield, and the
  Pioneer Valley Region)          $2,000,000
Somerville, MA                  $  500,000
State of New Hampshire
  (NH DES, State Planning
  Coastal Watershed, Durham,
  Londonderry, and Concord)     $1,450,000
State of Rhode Island:            $1,000,000
 (RI Development Corporation in
cooperation with RI Dept. of Environmental
Management)

Region 2
Hudson, NJ                     $  500,000
Trenton, NJ*+                   $1,000,000
Niagara County, NY
  (with Niagara Falls, NY) $1,000,000
Rochester, NY*
Yonkers, NY

Region 3
Washington, DC
Baltimore, MD
Hagerstown, MD
Bucks County, PA
Clairton, PA
Duquesne, PA
Lehigh County, PA
$ 500,000
$ 500,000
$ 500,000
$ 350,000
$ 500,000
$ 500,000
$ 500,000
$ 500,000
$ 500,000
Luzerne County, PA              $  500,000
McKeesport, PA                  $  500,000
Neville Township, PA             $  500,000
Northampton County, PA         $  500,000
Philadelphia, PA                  $  350,000
Pittsburgh, PA                   $  350,000
Richmond, VA                    $  350,000
Wheeling, WV                   $  500,000
State of Maryland (on behalf of
Prince George's County and Baltimore
County)                         $1,000,000

Region 4
Birmingham, AL                  $  350,000
Clearwater, FL                    $  500,000
Escambia County, FL             $  500,000
Hillsborough County, FL          $  500,000
Jacksonville, FL                  $  500,000
St. Petersburg, FL                $  350,000
Louisville, KY*                   $  500,000
Charlotte, NC                    $  500,000
Fayetteville, NC                  $  500,000
Winston-Salem, NC               $  500,000
Charleston, SC                   $  500,000
Columbia, SC                    $  500,000
Cowpens, SC                    $  500,000
South Carolina                   $2,000,000
  (Department of Health  and Environmental
Control: City of Anderson, Towns of Johnston,
Yemassee, & Kershaw County)

Region 5
Chicago, IL                      $  500,000
State of Illinois
  (IL DEP, Canton, East Moline,
  Freeport, Galva, Lacon, and
  Waukegan)                    $3,500,000
Rockford, IL                      $  500,000
West Central Municipal
       Conference, IL            $  350,000
Indianapolis, IN                  $  350,000
State of Indiana                  $  350,000
Battle Creek, MI                  $  500,000
Dearborn, MI                    $  500,000
Detroit, MI                      $  350,000
Trenton, MI                      $  500,000
Wayne County, MI               $  500,000
Hennepin County, MN           $  500,000
State of Minnesota               $  350,000
Roseville,MN                    $  500,000
Columbus, OH                   $  500,000
Cuyahoga County
     (Cleveland), OH             $  350,000
Hamilton, OH                    $  500,000
Lockland, OH                    $  500,000
                                               41

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Toledo, OH

Region 6
Gretna, LA
New Orleans, LA
Shreveport, LA+
Albuquerque and
 BernalilloCo.,NM
Austin, TX
Dallas, TX

Region 7
Cedar Rapids, IA
Des Moines, IA
Unified Government of
  Wyandotte Co. and
  Kansas City, KS
Kansas City, MO
St. Louis, MO
St. Louis County, MO
  (City of Wellston, MO)

Region 8
Aurora, CO
Commerce City, CO*
State of Colorado
  (Lakewood, Englewood,
  Loveland, and Denver)
Evanston, WY
Kemmerer, WY

Region 9
State of Arizona
  (Phoenix and Tucson)
Carson, CA
East Palo Alto, CA
Emeryville, CA
Long Beach, CA
Oakland, CA
Sacramento, CA*
Stockton, CA
Las Vegas, NV
     $  500,000
     $  500,000
350,000
     $1,000,000
     $1,000,000

     $  500,000
     $  350,000
        500,000
        500,000
        500,000
     $  500,000
     $  350,000

     $  500,000
     $  500,000
     $  350,000
     $1,700,000
     $  500,000
     $  500,000
     $1,000,000
     $  500,000
     $  500,000
     $  500,000
     $  500,000
     $  500,000
500,000
     $  500,000
     $  500,000
Region 10
Portland, OR                     $  500,000
Oregon Economic and            $1,500,000
  Community Development Dept;
  City of Coos Bay; and Tri-County Metro
State of Washington              $1,500,000
  (Dept. Of Community, Trade & Economic
Development, Dept. of Ecology, City of Tacoma,
and City of Seattle/King County)
*Pilot selected to receive an additional funding
in F Y 1999; +Pilot selected to receive additional
funding in FY2000.

July 13,2000
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