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The Oregon Administrative Rules contain OARs filed through October 15, 2014
 
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DEPARTMENT OF ENVIRONMENTAL QUALITY

 

DIVISION 175

UNDERGROUND STORAGE TANK

GRANT PROGRAM

340-175-0005

Authority, Purpose, and Scope

(1) These rules are promulgated in accordance with and under the authority of ORS 466.706 to 466.835 as amended by Chapter 863, Oregon Laws, 1991 (Senate Bill 1215). These rules are in addition to OAR Chapter 340, Division 172.

(2) The purpose and scope of OAR 340-175-0005 to 340-175-0110 is to provide for the regulation of persons who apply for and receive a grant for UST project work and persons who disburse grant funds.

(3) These rules establish requirements, standards or procedures for:

(a) Applying and qualifying for a grant; and

(b) Administration and enforcement of these rules by the Department.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented: OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0010

Definitions

(1) The definitions in OAR 340-172-0010 and the following definition apply to these rules.

(2) "Disbursing Agent" means lender or other person deignated by the Department to disburse grant funds.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented: ORS 466.746 & OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0020

Grant Benefits

(1) A pollution prevention grant will fund up to 50 percent not to exceed $50,000 of UST project work.

(2) An essential services grant will fund up to 75 percent not to exceed $75,000 of UST project work.

Stat. Auth.: OL 1993, Ch. 661 
Stats. Implemented: OL 1991, Ch. 863, Sec. 6 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92; DEQ 8-1994, f. & cert. ef. 3-22-94

340-175-0030

General Provisions, Grants

(1) A person qualifying for Tier 3 UST financial assistance under OAR Chapter 340, Division 172 and these rules may qualify for a pollution prevention grant to assist in payment for UST project work.

(2) A person qualifying for Tier 4 UST financial assistance under OAR Chapter 340, Division 172 and these rules may qualify for an essential services grant to assist in payment for UST project work.

(3) Only one grant may be issued to each facility location. The grant shall cover all tanks at a facility location.

(4) An applicant may qualify for grant benefits at more than one UST facility location.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented: OL 1991, Ch. 863, Sec. 6 & 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0040

Application for Grant

Any person wishing to apply for a grant under these rules shall submit a written application in accordance with OAR Chapter 340, Division 172.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0050

Additional Information Required on the Financial Assistance Application

In addition to the requirements of OAR 340-172-0040, the financial assistance application shall include:

(1) Where the UST project work is partially or fully completed:

(a) A description of the completed UST project work including the date the UST was placed into service;

(b) Cost of completed UST project work; and

(c) A description of all UST project work still to be done to meet new UST standards, including estimated cost and schedule of work.

(2) A signed agreement meeting the requirements of OAR 340-175-0055.

Stat. Auth.: OL 1993, Ch. 661 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92; DEQ 8-1994, f. & cert. ef. 3-22-94

340-175-0055

Documents Required to Receive an Essential Services Grant

(1) Where a property owner receives an essential services grant under OAR 340-175-0030(2) the property owner must sign a property lien agreement, described by sections (2) and (3) of this rule. Where an applicant other than the property owner receives an essential services grant under 340-175-0030(2) and the property owner refuses to sign a property lien agreement the Department may allow an agreement meeting the requirements of sections (4) through (8) of this rule to be substituted for a property lien agreement where the Department finds the agreement provides financial security equivalent to a property lien agreement.

(2) The signed Property Lien Agreement shall require the property owner to reimburse the underground storage tank essential services grant in full, to the Department, if the property or the business reselling motor fuel is sold within five years after the last payment of the essential services grant unless the purchaser of the property assumes the obligations of the property lien agreement. The purchaser shall be obligated under the property lien agreement for the five year period of the original agreement.

(3) A property lien shall be recorded by the Department in the mortgage records of the county where the property is located. The property lien agreement shall be satisfied five years after the property lien agreement is signed by the property owner and the Department or when the essential services grant is repayed to the Department.

(4) The agreement shall be signed by an individual, a natural person, who is the applicant for the essential services grant.

(5) The applicant shall provide proof of their ability to repay the essential services grant if the facility business receiving the grant is resold within five years after the last payment of the essential services grant.

(6) The Department shall find the agreement equivalent to the repayment security provided by a property lien agreement signed by the property owner.

(7) The signed agreement shall require the applicant to reimburse the full amount of the underground storage tank essential services grant to the Department, if the property or the business reselling motor fuel is sold within five years after the last payment of the essential services grant unless the purchaser of the property assumes the obligations of the agreement. The purchaser shall be obligated under the agreement for the five year period of the original agreement.

(8) The agreement shall be satisfied five years after the agreement is signed by the applicant and the Department or when the essential services grant is repayed to the Department.

Stat. Auth.: OL 1993, Ch. 661 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92; DEQ 8-1994, f. & cert. ef. 3-22-94

340-175-0060

Grant Certificate

(1) The Department shall issue a grant certificate to an applicant who has filed a complete application and meets the requirements of OAR Chapter 340, Division 172 and these rules.

(2) Only one grant certificate shall be issued for each facility location. All tanks at a facility location shall be covered by the grant certificate.

(3) An applicant may receive a grant certificate for more than one facility location.

(4) The grant certificate obligates the Department to make payment to an applicant or in behalf of an applicant to a lender or a disbursing agent for UST project work, in accordance with these rules.

(5) The applicant may not assign any right, title, and interest in the grant certificate to any person other than a subsequent property owner, tank owner or permittee of the underground storage tank facility. A lender or a disbursing agent may not assign any right, title, and interest in the grant certificate to any other person without express approval by the Department.

(6) The grant certificate shall be valid for one year from the date of issue. A grant certificate may be renewed subject to availability of funds from the USTCCA fund.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0065

Grant Confirmation

The Department shall issue a grant confirmation letter to the applicant where a grant certificate has been issued and the UST project work remains eligible for financial assistance. The grant confirmation letter shall include but be limited to the following grant conditions.

(1) Grant amount based upon the estimated UST project work cost in the financial assistance application.

(2) Grant payment, including payment schedule.

(3) Person or persons receiving grant.

(4) Procedures for requesting grant payment.

(5) Procedures for return of overpayment to the Department.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0070

Grant Payment

(1) Subject to the conditions listed on the grant confirmation letter, these rules and the availability of funds from the USTCCA fund, payment of funds will be made to:

(a) The applicant directly where the UST project work is complete, meets the requirements of OAR Chapter 340, Divisions 122 and 150 and was started after December 22, 1988 and completed before October 1, 1991 and provides proof of expenditures for UST project work. Proof may be in the form of copies of paid invoices, cancelled checks, or certification of eligible UST project costs by a licensed public accountant;

(b) The applicant or indirectly to the applicant through a lender or other authorized disbursing agent where the UST project work is started after December 22, 1988 and the applicant receives a grant, loan guarantee, and/or a reduced interest rate confirmation letter under OAR Chapter 340, Division 175, 176 or 178.

(2) A grant shall be disbursed in accordance with instructions provided by the Department, as follows:

(a) Up to $15,000 of the grant may be used for UST project work to discover and correct petroleum contamination including tank removal, site assessment, corrective action, and other UST project work;

(b) Up to 90 percent of the grant may be disbursed for UST project work after the applicant provides to the Department proof that at least $10,000 of the funds disbursed under subsection (a) of this section have been spent to remove existing tanks, conduct site assessment, perform corrective action and complete other UST project work. Proof may be in the form of copies of paid invoices, cancelled checks, or certification of UST project costs by a licensed public accountant, lender or disbursing agent;

(c) Final grant payment will be made upon submission of final project costs supported by copies of paid invoices, cancelled checks or certification of final project cost and calculation of the final grant amount by a licensed public accountant, lender or disbursing agent.

NOTE: Eligible UST project costs are described in OAR 340-172-0020(5) and (6)(a).

(3) The Department may require use of a disbursing agent to pay UST project costs, including but not limited to disbursing from an escrow account or other similar disbursement means.

(4) The Department may pay grant funds directly to persons providing UST project work.

(5) A property lien shall be filed in accordance with OAR 340-175-0055 where the applicant receives an essential services grant.

(6) Grant funds not used for costs of UST project work in accordance with the grant confirmation letter shall be returned to the Department within 60 days after voluntary or involuntary termination of the UST project work.

(7) The payment of the grant is subject to monies being allocated and being available from the Underground Storage Tank Compliance and Corrective Action Fund, per allocation system described in OAR 340-172-0080(2).

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0080

Certification of Financial Responsibility

The applicant receiving a grant under these rules shall comply with the financial responsibility requirements of OAR Chapter 340, Division 174.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-175-0110

Appeal Procedures

An applicant may appeal deter-minations by the Department under these rules, in accordance with OAR 340-172-0110, by sending a written request for a formal contested case hearing within 20 days after the Department awards or denies financial assistance.

Stat. Auth.: ORS 466.706 - ORS 466.895 & ORS 466.995 
Stats. Implemented:OL 1991, Ch. 863, Sec. 7 
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

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