Brownfields_Content Page_Petroleum Funding

Petroleum Funding

Ready for Reuse Loan and Grant Program

The RR Program accepts applications for traditional petroleum grants and loans year-round. There is no application deadline. We recommend that anyone interested in applying for funding first discuss your project with DNR staff. Please contact Gena Larson to discuss your project.

Eligibility

Eligible applicants

Grants

The following entities are eligible to apply for ready for reuse grants:

  • general purpose unit of local government, including the following:
    • county, city, town or village;
    • redevelopment authority under s. 66.1333, Wis. Stats,;
    • community development authority under s. 66.1335, Wis. Stats.;
    • housing authority under s. 66.1201, Wis. Stats.; and
    • any local public authority (including any public and Indian housing agency under the United States Housing Act of 1937), school district, special district, intrastate district, council of governments (whether or not incorporated as a nonprofit corporation under state law), any other regional or interstate government entity, or any agency or instrumentality of a local government.
  • tribe, or other eligible tribal entity under 40 CFR 31.3 [exit DNR]; and
  • nonprofit organizations. (For the purposes of the brownfields grant program, the term "nonprofit organization" means any corporation, trust, association, cooperative, or other organization that is operated mainly for scientific, educational, service, charitable, or similar purpose in the public interest; is not organized primarily for profit; and uses net proceeds to maintain, improve, or expand the operation of the organization. Nonprofit organizations exempt from taxation under Section 501(c)(4) of the Internal Revenue Code that lobby are not eligible for EPA grant funding.)
Loans

Only a "municipality," as defined in s. 67.01(5), Wis. Stats., may apply for a ready for reuse loan.

Eligible sites

In order to be eligible for funding, a site must meet the following criteria.

  • The site must meet the federal definition of an eligible brownfield, which is "real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant."
  • The site or costs must be ineligible for the Petroleum Environmental Cleanup Fund Award (PECFA) reimbursement.
  • The grant or loan recipient must not have contributed to contamination, and there are no persons responsible for the contamination that are both subject to an environmental enforcement action and able to pay for the cleanup.
  • There must be no federal enforcement action under the Resource Conservation and Recovery Act (RCRA), obligation under the federal Oil Pollution Act (OPA), or use of federal leaking underground storage tank (LUST) funds at the site. The DNR can help make this determination.

Liability

Applicant Liability

  • The grant or loan recipient must not have contributed to or exacerbated contamination.
  • There must be no persons responsible for the contamination who are both subject to an unresolved environmental enforcement action, an unresolved judgment or an unresolved suit and have ability to pay for the cleanup.
  • There must be no federal enforcement action under the Resource Conservation and Recovery Act (RCRA), obligation under the federal Oil Pollution Act (OPA), or use of federal leaking underground storage tank (LUST) funds at the site.
  • There must be no viable responsible party that can address the petroleum contamination at the site.

Please note: The DNR must make an eligibility determination for sites contaminated by petroleum or petroleum products before a grant or loan can be awarded for cleanup. To request an eligibility determination please fill out the Brownfields Assessment and Cleanup Grants: Application for Petroleum Eligibility Determination (4400-304) [PDF].

Application

First steps

Application form

The Ready for Reuse Program - Petroleum Loan and Grant Application (Form 4400-239) is available in two formats, PDF and Microsoft Word.

Model municipal resolution

Municipal obligations for loans

In order to be approved for a ready for reuse loan, a municipality must agree to issue an obligation authorized under one of the following provisions of ch. 67, Wis. Stats. [PDF exit DNR], as security for the ready for reuse loan.

  1. A general obligation promissory note issued under s. 67.12.(12), Wis. Stats.
  2. A note anticipation note issued under s. 67.12(1)(b)2, Wis. Stats. which provides as follows:
    • Any municipality may issue municipal obligations in anticipation of receiving proceeds from brownfields revolving loan program loans or grants under the program described in s. 292.72 if the municipality has received written notification from the department of natural resources that the department intends to distribute such proceeds to the municipality. The obligation shall be repaid within 10 years after the original date of the obligation, except that the obligation may be refunded one or more times. Any refundings shall be repaid within 20 years after the original date of the original obligation.
  3. Any other municipal obligation authorized under ch. 67, Wis. Stats.

If you are awarded a grant or loan

If you are awarded a ready for reuse loan or grant, DNR staff will work closely with you to begin implementing the project. DO NOT START GRANT OR LOAN-ELIGIBLE CLEANUP ACTIVITIES immediately upon award. Several steps need to be taken before cleanup can occur, including executing a financial agreement with the DNR and performing a 30-day public comment period.

Many of the forms and sample documents you will need during the loan or grant period are contained on our Documents for Borrowers and Grantees page.

Requirements during loan or grant period

Most requirements during a loan or grant period are dictated by the source of the federal funding, EPA's brownfields program. Federal requirements include a fair amount of governmental reporting and public participation.

Upon being awarded a grant the local government or tribe must:

  • Develop a cleanup plan and project budget, and provide a written notice in a paper of general circulation for the public to comment on.
  • Go through step-by-step DNR review and approval of cleanup plans and actions. The associated fees are eligible costs that must be paid to the DNR by the awardee.
  • Develop a public notification plan that provides an opportunity for public comments on the cleanup plan.
  • Make site documents available at a local repository.
  • Develop a final decision document and respond to public comments.
  • Comply with all Federal Terms and Conditions [PDF], including those covering:
    • lobbying and litigation;
    • fair share in contracting;
    • public accommodation;
    • reporting;
    • small business in rural areas;
    • procurement of recycled products;
    • debarment and suspension;
    • recycled paper;
    • worker protection; and
    • the Uniform Relocation Act.

For more information, contact