Professional Services Agreement - Indiana Finance Authority Indiana Brownsfield Program

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SUPPLEMENTAL ENVIRONMENTAL PROJECT ;'T GUIDELINES Introduction Supplemental Environmental Projects ("SEPs") are a tool utilized by the Indiana Department of Environmental Management's ("IDEM") Office of Enforcement in negotiating settlements of enforcement cases. A SEP is an environmentally -beneficial project that improves, protects, or reduces risks to public health or the environment, which a regulated entity agrees to undertake in further settlement of an enforcement action, but which the regulated entity is not otherwise legally required to perform. In certain cases, and consistent with IDEM's SEP policy (see, Supplemental Environmental Project Policy, Enforcement-08-003-NPD (June 20, 2008)), IDEM agrees to allow a respondent to make a cash payment of an agreed -upon dollar amount ("SEP Funds") directly to the Indiana Finance Authority ("Authority") in lieu of an assessed civil penalty for use on a brownfield prgject in the city, towii or courit�y in which the violation underlying the enforcement action occurred'. Once notified by 11. EM's Office of Enforcement that a respondent has been approved to undertake a brownfield SEP, the Indiana Brownfields Program ("Program") coordinates with the beneficiary community ("SEP Recipient') to select a brownfield property at which to utilize the SEP Funds consistent with these guidelines; priority will be given by the Program to sites that are not privately -owned. As part of IDEM's underlying enforcement order, the Program establishes a site or community -specific account within the Environmental Remediation Revolving Loan Fund managed by the Authority, into which the respondent's payment of SEP Funds is deposited. The Authority then executes a financial assistance agreement ("Agreement") with the SEP Recipient (or another eligible Indiana political subdivision (as defined by Indiana Code ("IC") 13-11-2-164(c)) on behalf the SEP Recipient) and the consultant(s) it retains to undertake site work, through which the eligible SEP project activities are reimbursed by the Authority from the site or community -specific account following Program approval of project activities and expenditures. Examples of political subdivisions that qualify for financial assistance from the Authority can be found on the Program's web site at: htt ://ww�v.brownfields,in, 2� . Not -for - profit or for -profit corporations may be involved in the assessment, remediation or redevelopment project at the brownfield site at which SEP Funds will be spent, but will not directly receive SEP Funds from the Program as all awards are made only to the political subdivision involved in a project. Any shortfall of funding to complete environmental assessment or remediation or redevelopment efforts on the selected brownfield may be supplemented by other financial assistance awarded by the Program or a site/project- specific determination by the Program under these guidelines to provide funding to supplement the SEP Funds in order to facilitate completion of the work needed to allow site's beneficial reuse. If State brownfields financial assistance will supplement SEP Funds, the Indiana State Budget Agency will be included as a parry to the Agreement. 'More information on the availability and scope of SEPs can be found on IDEM's web site at: http v/1demiW4 N 07 htm.