RECEIVED

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

APR

21

2004

STATE OF ILLINOIS

IN

THE

MATTER OF:

)

Pollution Control Board

PETITION

OF JO’LYN

CORPORATION

)

and

FALCON WASTE AND

RECYCLING

)

AS

04-

()?r

for

an

ADJUSTED STANDARD from

)

(Adjusted Standard

—

Land)

35

ILL.ADM.CODE PART 807 or,

)

in the alternative, A

FINDING

OF

)

INAPPLICABILITY.

NOTICE OF

FILING

To:

(See attached

Service

List.)

PLEASE TAKE

NOTICE

that on this

21st

day

of April

2004,

the following were filed

with the Illinois

Pollution Control Board:

Petition for Adjusted Standard, Appearance,

and

Motion for Expedited Consideration,

which are

attached

and

herewith served

upon

you.

JO’LYN

CORPORATION

and

FALCON WASTE AND RECYCLING

By: ~zt~H~rveY?~

Attorney for

Petitioner

Elizabeth

S. Harvey

SV\JANSON, MARTIN &

BELL

One

IBM

Plaza, Suite 3300

330

North WabashAvenue

Chicago, Illinois

60611

Telephone:

(312)

321-9100

Firm LD. No. 29558

CERTIFICATE OF SERVICE

I, the

undersigned

non-attorney,

state

that

I

served

a copy

of the above-described

documents to

counsel of record

in the above-captioned matter via U.S. Mail

at One IBM

Plaza,

Chicago,

IL 60611

on or

before 5:00 p.m. on April

21, 2004.

~

xl

Under penalties

as provided

by law

pursuant to

735 ILCS

5/1 -109,

I

certify

that the statements set forth

herein

are

true and

correct.

---

Mr.

John J. Kim

Division of

Legal Counsel, IEPA

1021

North Grand Avenue East

P.O. Box 19276

Springfield, IL 62794-9276.

SERVICE

LIST

---

RECE~V~D

CLERK’S OFFICE

APR

212004

BEFORE THE

ILLINOIS POLLUTION CONTROL BOAR~~l~j~d

INTHEMATTEROF:

PETITION

OF JO’LYN

CORPORATION

)

and

FALCON WASTE AND RECYCLING)

AS

04-

for an ADJUSTED STANDARD from

)

(Adjusted Standard

—

Land)

35 ILLADM.CODE PART 807 or,

)

in the alternative,

A

FINDING

OF

)

INAPPLICABILITY.

)

APPEARANCE

Swanson,

Martin

&

Bell,

by

its

attorneys

Michael

J.

Maher

and

Elizabeth

S.

Harvey,

hereby

files

its

appearance

on

behalf

of

petitioners

Jo’Lyn

Corporation

and

Falcon Waste and

Recycling.

Michael

Maher

be

S.

Harvey

Michael

J. Maher

Elizabeth

S.

Harvey

Swanson,

Martin &

Bell

One IBM

Plaza,

Suite 3300

330

North Wabash Avenue

Chicago, IL 60611

Telephone: .~(312)

321-9100

Facsimile:

(312) 321-0990

---

RECE~VED

CLERK’S OFFICE

APR

212004

BEFORE

THE

ILLINOIS POLLUTION

CONTROL BOAR~~’~d

IN

THE MATTER OF:

)

)

PETITION OF JO’LYN CORPORATION

)

and FALCON WASTE AND RECYCLING)

AS 04-

/7)-

for an ADJUSTED STANDARD from

)

(Adjusted Standard

—

Land)

35 ILL.ADM.CODE PART 807 or,

)

in

the alternative, A FINDING

OF

)

INAPPLICABILITY.

PETITION

FOR ADJUSTED STANDARD, OR IN

A FINDING OF

INAPPLICABILITY

Petitioners

Jo’Lyn

Corp

(“Jo’Lyn”)

and

Falcon Waste

Disposal

(“Falcon”)

(collectively,

“petitioners”),

by

their

attorneys

Swanson,

Martin

&

Bell,

hereby

petition for an adjusted

standard,

or,

in

the alternative,

a finding of inapplicability.

This

petition

is

sUbmitted

pursuant

to

the

provisions

of

Section

28.1

of

the

Environmental

Protection

Act

(415

ILCS

5/28.1)

and

35

IIl.Adm.Code

Part

104,

Subpart

D.

Petitioners seek

a

determination that the

raw

material

used

in

their

production

process

is

not

a

“waste’,

and

that

therefore

they do

not

need

waste

permits

pursuant

to

Part

807

of the

Illinois

environmental

regulations.

In

the

alternath’e,

if

the

Board

disagrees

that

the

material

used

is

not

a

waste,

petitioners seek an adjusted standard from

Part 807 (35 IH.Adm.Code 807).

INTRODUCTION

Petitioners

Jo’Lyn

and

Falcon1

operate

a

facility

in

McHenry

County,

Illinois,

which

processes

granulate

bituminous

shingle

material

(GBSM)

into

a

1

Falcon

is a division of Jo’Lyn.

Falcon

~ndJo’Lyn

are both petitioners in this matter,

although the petition applies to only a single facility.

---

useful

paving product.

GBSM

is

a

clean

and consistent post-production material

generated

at the

end of the

manufacturing of roofing shingles,

such as “tabs”

or

punch outs,

and

miscolored

or damaged shingles.

GBSM

is

not post-consumer

material or shingle “tear-offs”, and thus does

not present the

potential problems

of

“tear-offs”,

such

as

inconsistent

materials,

nails,

and

potential

asbestos

content.

Instead,

GBSM

is uniform

in

composition,

and

has

never been

used

by

a consumer.

Petitioners purchase this

clean

and consistent GBSM

directly from

shingle

manufacturers.

Petitioners currently have

a contract for purchase of GBSM

from

IKO Chicago,

Inc.,

which

manufactures

roofing shingles.

(See

Exhibit A.)

After

purchase,

petitioners

process the

GBSM

at their Woodstock, McHenry

County,

Illinois facility.

The

GBSM

is shredded to

uniform size by use of a

grinder.

After

grinding, the

material

is

used

as

a

paving product,

marketed

by petitioners under

the

name

“Eclipse

Dust Control”.

This

paving

product can

be

used

on

parking

lots, driveways, farm

lanes, animal feed

areas,

bike and walking paths,

and other

surfaces.

The material

is

placed on the

area to

be paved,

and

compacted.

This

results

in

a paved surface which eliminates dust,

is long-lasting and

inexpensive,

and

does

not require seal

coating or other maintenance.

(See Exhibits B and

C.)

Petitioners

began

this

operation

in

2000.

Petitioners

inquired

about the

necessity of permits from

the Illinois

Environmental

Protection

Agency (Agency),

and

were originally told that no land permit

was

necessary.

Petitioners obtained

the required water (stormwater run-off) permit, and applied for an air permit.

The

request for an air permit was subsequently denied on the grounds that petitioners

2

---

need a land

permit.

However, in

1993 IKO

had received, from the Agency a solid

waste determination finding that the

GBSM

material generated

at IKO’s facility is

~

a

solid

waste when

used

for

paving

surfaces.

The Agency’s

determination

specifically allows for the

use of GBSM

when

ground

either at the

IKO facility or

at the

end

user’s site.

(See Exhibit

D.)

Thus,

petitioners continue to believe,

based

upon the Agency’s own

determination, that the

GBSM

is

not

“waste”, and

thus no land

permit is required.

Petitioners have engaged

in

a lengthy dialogue with the Agency regarding

this

process.

The

process

is

environmentally

friendly,

and

utilizes

material

that

might

otherwise

be

Iandfilled

for

lack of

a

market.2

Unfortunately,

the Agency

has

not

yet

agreed

that

the

GBSM

is

not

a

“waste”,

despite

its

earlier

determination

finding

that

GBSM

is

not

a

waste.

Petitioners

remain

optimistic

that

the

Agency

will

reconsider

its

position,

and

will

provide

a

supportive

recommendation on this petition.

THE

MATERIAL

USED

IS

NOT A ‘WASTE”

The

material

used

by

petitioners

in

their

process

is

not

a

“waste”,

and

therefore

the

requirements

of

Part

807

of

the

Board’s

regulations

are

inapplicable.

The

Board

has

previously

recognized

that

an

adjusted

standard

petition can,

in

the

alternative,

seek

a

finding

of inapplicability.

(In the Matter of

Petition of Illinois Wood Energy Partners,

L.P.

for an Adjusted Standard from

35

IIl.Adm. Code

807

or,

in

the

alternative,

a

Finding

of

Inapplicability,

AS

94-1

2

It is important to note

that GBSM is t~a discarded

material, but a result of the shingle

production process which

has value and

use when proper markets are available.

If there is no

market for GBSM (as a result of burdensome permitting

requirements), the material

could end

up

being Iandfilled.

3

---

(October 6,

1994), 1994

III.

ENV.Lexis 1314.)

Petitioners here seek a finding that

the

material

used

by

petitioners

is

not

a

“waste”,

and

that

therefore

the

requirements of Part 807 do not apply.

The

Agency

itself,

on

May

18,

1993,

specifically

determined

that

lKO’s

GBSM

“is

not

a

solid

waste

when

utilized”

to

form

a

pavement

surface

after

grinding

of the

GBSM~ (See

Exhibit

D.)

That

waste

determination

recognized

that the

material may be ground

either “on site”

(at

IKO) or at the

end user’s site.

Here,

petitioners’

process

uses the GBSM

exactly as required

by the Agency:

it

is ground

at

petitioners’

(the end

user)

site,

and

then

used

to form

a

pavement

surface.

Thus,

the Agency has already determined

that the

GBSM,

as

used by

petitioners,

is not

a “waste”.

Petitioners ask the Board to hold

the Agency to

its

determination.

The Board should

find that the

GBSM, as used

by petitioners,

is

not a “waste”,

and

is thus

not subject to the requirements of 35 III.Adm.Code Part

807.

Even

beyond

the

Agency’s

1993

determination

that the

GBSM

is

not

a

solid

waste,

it

is clear that

GBSM

does

not

fit

the

definition of

“waste”.

Section

3.53 of the Act defines “waste” as

any garbage, sludge from

a waste treatment plant, water supply treatment

plant, or air pollution control facility,

or other discarded material.

415 ILCS 5/3.53 (emphasis added).

This

same

definition

is

used

in

Section

807.104.

However,

the

GBSM

is

not

“discarded”,

since

it

is

a

useful

material

which

is

sold

for further

use,

given

the

proper market.

Since the

material

is

not “discarded”,

and does

not fit

any of the

other items

in the definition of “waste”,

the GBSM

is not a waste.

4

---

The

appellate

court,

in

Alternate

Fuels,

Inc.

v.

Director of

the

Illinois

Environmental

Protection

Agency,

337

IIl.App.3d

857,

786

N.E.2d

1063,

272

IIl.Dec.

229

(5th

Dist.

2003),

leave

to

appeal allowed

205

III.2d

575,

803

N.E.2d

479,

281

lll.Dec.

75

(2003),

was

faced

with

a

similar situation,

and

determined

that the

material at issue was

not “waste”.

Alternate

Fuels, Inc. (“AFI”) collects,

separates, and

processes plastic materials into alternate fuel.

That alternate fuel

is then

sold

to

a

power plant, for use as fuel in

producing

electricity.

This

Board

had

previously determined that the

alternate fuel was

not a waste.

Illinois Power

v.

IEPA,

PCB

97-35

and

97-36

(January

23,

1997).

However,

the

Agency

initiated

an

enforcement

action

against

AFI.

AFI

then

brought

a

declaratory

judgment action against the Agency.

The

appellate

court

agreed

with

AFI

that

the

statutory

definition

of

“recycling, reclamation,

or reuse”,

which includes the

statement that the process

is designed to remove any “contaminant” from

waste (415

ILCS 5/3.30),

shows a

legislative intent to distinguish between waste that is discarded and materials that

might

otherwise

be

discarded

but

are

instead

returned

to

the

economic

mainstream

by way of the

process of recycling.

AFt,

272

lll.Dec.

at

13-14.

The

appellate court then went on to find that the

materials

used

by AFI

for

recycling

are

not discarded,

are

not waste,

and

are

not

subject

to

the

permit

and

local

siting

procedures

applicable

to

waste.

These

findings

were

based

upon

the

court’s

review of the

statute

(which does

not define “discarded”)

and the purpose

behind

the Act (protecting

the

environment,

including

providing

an

incentive for

5

---

suppliers to

recycle their materials

rather than discard them).

AFI,

272 lll.Dec.

at

14-17.

Petitioners’

situation

is

almost

identical

to

the

situation

reviewed

in

AFI.

Like AFI, petitioner uses material (GBSM) that might otherwise

be discarded,

but

can

be

returned

to

the

economic

mainstream

by

recycling.

Simply

because

a

material might be discarded for lack of a market does

not mean that the

material

fits

the

definition

of “waste”.

Such

an

outcome would

lead

to

a

circular result:

insistence

that

a

recycling

facility

comply

with

the

myriad

requirements of Part

807

(imposed

on

“waste”

facilities)

could

result

in

a

lack

of a

market3,

simply

because

no

recycling

facility

could

meet

those

requirements.

In

short,

an

insistence that a material

is “discarded”

could result in that material actually being

discarded, thus

“creating”

a

waste.

The

Board

should

follow the

decision

of the

appellate court

in

AFI,

and

its

own

decision

in

Illinois Power,

and

hold

that the

GBSM

is

not

a “waste”.

In

the

discussions

between

the Agency

and

petitioners,

the Agency

has

sometimes

pointed

to

Section 721.102

in

its

position that the

GBSM

is

“waste”.

Section

721.102

defines

“solid

waste”

under

the

state

RCRA

program,

and

is

included

in Part 721, which regulates

hazardous waste.4

The Part 807 definition

of “waste”

is different that the definition of “solid waste” found at Section 721.102.

Petitioners believe that the statutory and regulatory definitions of “waste” found

in

Part

807

are

controlling

in

determining

whether

the

Part

807

requirements

are

In this case, there is already a

marketfor GBSM, as evidenced by Jo’Lyn’s purchase of

the GBSM from

IKO.

(See Exhibit A.)

Additionally, there is a market for petitioners’ “Eclipse Dust

Control”

pavement.

See Group Exhibit E,

contracts between Jo’Lyn and purchasers of “Eclipse

Dust Control”.

The GBSM is not a “hazardous waste”.

6

---

applicable.

As demonstrated

above,

the

GBSM

is not

“waste”

under the

Act of

Part 807.

Additionally,

petitioners believe that the Agency’s recent interpretations

may be based

on

a misunderstanding of petitioner’s

process.

The

Agency has

expressed

concerns

about

asbestos,

fiberglass,

nails,

wood,

and

other

contaminants

which

could

impact

the

quality

and

safety

of the

paving

product.

However,

as

explained

above,

petitioners’

process

uses

ppj~y cleah

and

consistent GBSM,

which

is

a

pre-consumer product.

The

process does

not

use

“tear-offs”, and

thus

concerns

about

the constituents

in

the

paving

product are

misplaced.

In

sum,

petitioners

ask

the

Board

to

find

that

the

GBSM

used

by

petitioners

for

recycling

into

a

paving

product

is

not

a

“waste”,

and

thus

not

subject

to

Part 807.

The Agency itself previously determined that this

GBSM

is

not

a waste.

Additionally,

the

appellate

court

decision

in

AFI,

and

this

Board’s

decision

in

Illinois Power,

support a finding that the GBSM

is not “discarded”,

and

thus

is not a “waste”.

PETITION FOR ADJUSTED STANDARD

If the Board

finds that the material

used by petitioners is

indeed

a

“waste”,

petitioners

seek

an

adjusted

standard

from

the

provisions

of

Part

807.

The

remainder

of

this

petition

discusses

the

content

requirements

for

adjusted

standard

petitions,

as

set

forth

in

Section

104.406

of

the

Board’s

procedural

rules.

7

---

Standard from which relief is sought

(Section 104.406(a))

Petitioners

ask

that

the

Board

grant

Jo’Lyn

and

Falcon

an

adjusted

standard

from

the requirements of Part 807 of the

Board’s

regulations.

Part 807

contains permitting

and other requirements for solid waste management facilities.

Promulgation of the

regulation of general applicability (Section 104.404(b))

Part 807 was

promulgated

to

implement Sections

5,

21.1,

and

22

of the

Act.

Level of iustification (Section

104.404(c))

The regulations of general applicability

(Part 807)

do

not specify a

level

of

justification or other requirements for an adjusted standard.

Description of petitioners’ activity (Section 104.404(d))

Petitioners’

facility

is

located

at

1200

Rosefarm

Road,

Woodstock,

McHenry County, Illinois.

As discussed above,

petitioners purchase GBSM from

1K05.

The

contract specifically requires that the

GBSM

be free of contaminants.

(See Exhibit A.)

The GBSM

is then transported to

petitioners’ facility,

where

it

is

ground

into

uniform

pieces.

After

grinding,

the

material

is

used

as

a

paving

product,

marketed

by

petitioners

under the

name

“Eclipse

Dust Control”.

This

paving

product can

be used

on

parking

lots, driveways,

farm

lanes,

animal

feed

areas,

bike and walking paths, and other surfaces.

The material

is placed

on the

area

to

be

paved,

and

compacted.

This

results

in

a

paved

surface

which

While petitioners currently contract only with IKO,

there are other shingle manufacturers

in Illinois who are also potential sources of GBSM.

Petitioners

have not yet pursued contracts

with

other manufacturers while they seek resolution of this matter.

8

---

eliminates

dust,

is

long-lasting

and

inexpensive,

and

does

not

require

seal

coating or other maintenance.

(See Exhibits B and

C.)

There

are

no

emissions,

discharges

or

releases

to

the

land

from.

petitioners’ activities.

Compliance alternatives (Section 104.404(e))

Petitioners

assert,,

as

discussed

above,

that

the

.

GBSM

used

in

their

process

is not

a

“waste”.

If the

Board

finds

that the

material

is

indeed

a waste,

the only compliance alternative available to petitioners is full

compliance with

the

panoply

of regulatory

requirements

imposed

by the

Act

and

by

Part

807.

For

example,

petitioners would

be

required

to seek local

siting approval

pursuant to

Section

39.2

of

the

Act

(415

ILCS

5/39.2),

even

before

submitting

a

revised

‘permit

application

to

the

Agency.6

Local

siting

approval

is

an

expensive

and

lengthy process, and could

cost hundreds of thousands of dollars, including

local

filing fees.

Even after local siting approval was obtained,

compliance with the full

.set of requirements of

Part

807,

including financial

assurance

requirements,

is

cost-prohibitive.

These

requirements

should

not

be

imposed

upon

petitioners,

as

their

operation

is

not the type of operation

contemplated by the

Board

in promulgating

Part

807.

The

Part

807

requirements

are

properly directed

to

facilities

which

treat,

store,

or

dispose of waste,

with

the

resulting

environmental

issues which

can

arise

from

such a

facility.

To

treat

petitioners’

recycling

facility,

which

uses

only one type of clean

and consistent pie-consumer material,

in

the same way as

6

Jo’Lyn previously applied to the Agencyfor a

Part 807 permit.

The Agency denied that

permit on September 9, 2003.

Jo’Lyn has appealed that permit denial

to the Board

(Jo’Lyn

Corp.

v. Illinois Environmental Protection Agency,

PCB 04-49).

9

---

a landfill or transfer station

is

unnecessary for

the

protection of the

environment,

and beyond

the scope of facilities considered

by the

Board.

Description of the

adjusted standard (Section

104.404(f))

Petitioners propose the following adjusted standard:

Jo’Lyn

Corporation

and

Falcon

Waste

and

Recycling

are

hereby granted

an

adjusted

standard

from

the

provisions

of

35

lII.Adm.Code

Part

807.

The

requirements

of

Part

807

do

not

apply

to

recycling

operations

conducted

by

Jo’Lyn

and/or Falcon at the facility in

McHenry

County, Illinois, so long as:

1.

Jo’Lyn and Falcon

continue to use only clean

GBSM, acquired from

a

manufacturer of roofing products or other source of clean

GBSM.

2.

Jo’Lyn

and

Falcon

continue to grind

the

GBSM into uniform pieces,

either course ground or fine ground.

3.

Jo’Lyn and

Falcon

use the GBSM

chips to form

paving surfaces.

4.

Jo’Lyn

and

Falcon

operate

the

facility

in

compliance

with

other

provisions of the

Environmental

Protection Act.

Quantitative and

qualitative impact of petitioners’ activity (Section

104.404(q))

As

discussed

above,

petitioners’

process

produces

no

emissions,

discharges, or releases to the

land.

Thus, the qualitative

and quantitative

impact

of

compliance with

the

rule of

general

applicability

is

the

same

as

compliance

with

the

proposed

adjusted

standard.7

This

is

important

to

recognize,

as

issuance

of

the

adjusted

standard

will

not

increase

emissions,

discharges,

or

releases

to

the

land

by

use

of

the

recycling

process.

In

fact,

because

the

recycling

process

provides

a

beneficial

use

of the

GBSM,

producing

a

useful

product

that

in

itself

reduces

dust

from

unpaved

surfaces,

issuance

of

the

Petitioners may need an air permit from

the Agencyfor minor air emissions.

However,

as

this petition

does not seek an adjusted standard from

the air regulations, there is no difference

irt

qualitative or quantitative air emissions between compliance with the air regulations of general

applicability and the proposed adjusted standard.

Jo’Lyn

has already received a NPDES permit

for storm water discharges (general

industrial

storm water permit),

No.

1LR005938.

10

---

proposed adjusted standard will actually decrease

emissions and

releases,

in

an

overall sense.

‘

Justification (Section

104.404(h))

As

noted

above,

the

rules of general

applicability

did

not contemplate

the

issues

pertaining

to

the

recycling of

GBSM

into

a

useful

paving

product.

Thus,

those

rules

do

not

specify

a

level

of

justification

for

an

adjusted

standard.

However,

the

proposed

adjusted

standard

is

justified

by

the

innumerable

environmental benefits of the

GBSM

recycling

process.

Consistency with federal law (Section

104.404(i))

The

Board

may

grant

the

proposed

adjusted

standard

consistent

with

federal law.

.

Hearing (Section

104.404(j)),

Petitioners waive hearing on this petition.

Supporting documents (Section

104.404(k))

Documents supporting this

petition are

attached

as Exhibits A through

G.

In addition

to documents

discussed

in

the above

petition, these exhibits

include

letters

of support

for petitioners’

process,, as

well

as

a

$165,000

grant received

from

DCEO to support petitioners’

process.

SECTION 28.1(c) FACTORS

Section 28.1(c) of the Act (415

ILCS

5/28.1(c)) states that the

Board

may

grant

individual

adjusted

standards

upon

adequate

proof

that:

1)

the

factors

relating

to

the

petitioners

are

substantially

and

significantly

different

from

the

factors

relied

upon

by

the

Board

in

adopting

the

general

regulation;

2)

the

11

---

existence

of

those

factors

justifies

an

adjusted

standard;

3)

the

requested

standard

will

not

result

in

environmental

or

health

effects

substantially

and

significantly

more adverse

than

the

effects

considered

by the

Board

in

adopting

.~therule of general applicability;

and 4)

the

adjusted

standard

is

consistent with

‘any applicable federal law.

The factors

relating to

petitioners are substantially and

significantly different

In

adopting

Part 807, the Board

replaced and

superseded

the

“Rules

and

Regulations

for

Refuse

Disposal

Sites

and

Facilities”,

adopted

by

the

Illinois

Department of Public Health

in

1966.

35 llI.Adm.Code 807.102.

The Board

also

acted

to

implement

Section

22

of

the

Act,

which

gives

the

Board

authority to

regulate,

inter alia,

waste disposal,

storage,

treatment,

and

disposal

sites.

415

ILCS

5/22.

The

recycling

activities

conducted by

petitioners

are

not

refuse

or

waste

disposal,

and

petitioners’

facility

is

not

a

landfill

or

transfer

station.

Instead, petitioners’ activities provide an environmental

benefit

by recycling clean

GBSM

into

a

useful

paving

product,

which

itself

has

environmental

benefits.

Thus, the

factors

relating to

petitioners’

recycling

activities

are

substantially and

significantly different than those pertaining to activities regulated

under Part 807.

The existence of those factors justifies an adjusted standard

As

discussed

in

this

petition,

these

different

factors

justify

an

adjusted

standard.

Petitioners

.

recycle

clean

GBSM

into

a

useful

paving

product.

Compliance

with

the

extensive

requirements

of

Part

807

is

economically

unreasonable for

petitioners.

Coupled with the fact that compliance with Part 807

12

---

does

not

provide

any environmental

benefit, the

proposed

adjusted

standard

is

justified

as the only possible means available.

The adjusted standard will

not result

in adverse environmental or health effects

The

adjusted

standard

will

not

result

in

adverse

environmental

or

health

effects substantially and significantly different from the factors

relied

upon

by the

Board

in

adopting

Part 807.

As

discussed, the

adjusted

standard

will

not

have

any negative environmental

or health effect at all.

In fact,

the

adjusted standard

will

result in

positive

environmental

and health effects.

The clean

GBSM, which

might

otherwise

be

landfilled

simply for

lack of a

market,

will

be

recycled

into

a

useful

paving

product

which

provides

a

number

of

benefits

itself,

including’

affordable

and

durable

dust

suppression.

Thus,

the

adjusted

standard

will

provide environmental

and

health benefits.

The adjusted standard

is consistent with

federal law

The

proposed

adjusted

standard

is

consistent

with

federal

law,

and

granting the adjusted standard will

not violate federal law.

CONCLUSION

Petitioners ask

that the

Board

find that

Part 807 of the

Board’s

rules

are

inapplicable to

petitioners’

recycling of clean

GBSM.

The GBSM

is not

a

waste,

and

should

not

be

regulated

as

a

waste.

Instead,

it

is

a useful

product.

In

the

alternative,

petitioners

seek

an

adjusted

standard

from

Part

807.

Compliance

with

those

regulations

is

economically

unreasonable,

and

provides

no

environmental orhealth benefit.

‘

13

---

WHEREFORE,

petitioners

Jo’Lyn

Corporation

and

Falcon

Waste

and

Recycling

hereby

request

that

the

Board

find

that

Part

807

is

inapplicable

to

petitioners’

McHenry

County

recycling facility.

In

the

alternative,

petitioners ask

that the

Board

grant the

proposed

adjusted

standard

from

Part 807,

or for other

relief as deemed appropriate

by the

Board.

Respectfully submitted,

JO’LYN CORPORATION and

FALCON

WASTE

AND

RECYCLING

Michael J.

Maher

Elizabeth S. Harvey

Swanson,

Martin

& Bell

One IBM Plaza, Suite 3300

330 North Wabash Avenue

Chicago, IL 60611

312.321.9100

312.321.0990 (facsimile)

14

---

F~MPORARYPURCHASE AGREEMENT

‘~.

Purchase

Description.

.lo’Lyn Corporation.. 2 Kennedy Drive. Harvard. Illinois

60033 hereinafter called

Jo’Lyn

agrees to purchase

SituminousShingle Material hereinafter celled BSM

from

11(0 Chicago,

6600

S.Central

Ave.. Chicago, Illinois

60638.

hereinafter called 11(0.

.Jo’Lyn will

purchase BSM at the

rate of

$5 00 per ton to

be weighed

at IKO s location

provided that

110

sign

a

service agreement

with Falcon Waste

&

Recycling for the storage and

transportation of BSM from IKOs

locat,on to

Jo Lyns

designated location

SPECIAL

INSTRUCTl0NS~_______________________________________________

GENERAL TERMS

AND

CONDITIONS

Sermons Rendered

The unders,gned (Jo

Lyn

ag

ass to purchase

BSM

from

IKO

and

agrees to make the

payments as provided for herein and abide by the terms

and conditions

of this Agreement.

Binding

Effect.

ThisAgreemest

is a legally binding

contract on the

part of both Jo’Lyn

arid

110

and

their

respective

heirs, successors and

assigns in accordance

with the

terms and

conditionsset

out herein.

~

Payments.

.lo’Lyn

shall pay 11(0 on monthly basis for the

BSM

furnished

by 11(0

In

accordance with foe

rates

provided

for herein.

Jo’Lyii will

receive a duplicate

copy

of transported material/tonnage

i’ccsi7t. from

Falcon Waste &

Recycling at time of delivery.

Payment

shallbe

made

by Jo’Lyn to 11(0 within 10 dajs o~

rite

receipt of an invoice

from

11(0.

110

may

impose and Jo’Lyn

agrees to pay a late

fee

for all past due pay.

meets, such late fee

notto

exceed

the

maximum

rate for same allowed

by applicable law.

BEN.

The materiel to

be furnished by 11(0 and

received by Jo’Lyn

pursuant to this Agreement

is 82M now

or

hereafterowned

and produced by IKO,

excluding all cont~nantswhich. In

Jo’Lyns ressonablejudgment,

prevents resale or

reduces

the

resale value

of551st.

A description cad/or procedures with

respect

tore-

moval

of contaminants

maybe set forth

aboveas part

of special instructions.

In

the event that any

BSM

fur-

nished

to Jo’Lyn

by

11(0

as BSM is hereafter,

dueto the

presence of contaminates therein, rejected by poles.

tial purchaser or otlterwiee determined by Jo’Lyn not to

be resalable.

11(0 shall pay Jo’Lyn

the charges in-

curred by

.lo’Lyn

for hauling

and disposalof

such material.

All

ESM shall be

placed in

Jo’Lyn-approved re-

ceptacfes.

JoLyn shallacquire

title to SSM when unloaded at their location.

~,

Service Changes.

IfJc’Lyn

is unable to fulfill

and

or receive the requirements/permits of the Illinois Envi-

ronmental Protection

Agency rules and

regulation this

contract

shall be null

and void.

However, if the Illinois

Environmental Protection Agency declassifles this material from

being a waste, there will

be

nocharge for

purchase of B.S.M. and subsequently

Falcon Waste &

Recycling Inc., will lower it’s hauling

fee

by

$5.00

per

ton.This

contract will ales

be void is .Jo’Lyn

accumulates

o

stockpile of BSM

equal to

or largerthan one

years delivered

supply, from 110.

Such notifications from either

party

must be

reads

in

writing and sent

to

r

~‘,‘

‘The other party. and

corresponding changes in

rates, may

be changed

by the

parties, eitherin

writing or by

tee

practices and actions of the

parties, without affecting

the validityof the Agreement.

This Agreement

shall continue in effect

for the term

provided

herein

and shall apply to changes of services addr~ss

location of

110

withinthe

ares

in

which

Falcon Waste & Recycling

Inc.

provides transportation carves.

Failure to Perform,

in the

eventJo’Lyn

fulls to pay

IKOall amounts which

become due under this Agree-

meet,

or

fails

to perform its obligations

hereunder, and

11(0 refers such matter to

nfl attorney.

Jo’Lyn agrees

to pay,

in addition

to the amount due, any and all costs incurred by 11(0 as a result

of such action, including,

~

to the

extent permitted bylaw,

reasonable attorney’s fees.

Excused

Performance.

Neither party hereto shall be

liable

for

its

failure to

perform

or delay in perfor-

manes

hereunderdue to c~sttingencies

beyond Its reasonable control including, but

riot

limitedto. strikes, ri-

ots,

fires,

and

acts of God.

1

,

‘

.

‘

Assignment.

Neither

party

shall assign

this Agreement

without the prior written consent of the

other

party,I~S.

‘

‘

,‘

‘~

except that Jo’Lyn without 11(0’s

consent

may assign thisAgreement

to any corporation

affiliated

with

.lo’Lyn.

11(0 Chicags

‘By~Signsture)_________

Sy~5gflatare)___________

Prist flaws:

Kathryn Pswlas

Print name

,.i-.._~

A

.

T,_e.

st~

Tifie:

\J

-

~.

Title;

Pt~’

,~-t’r-

p.~

o.ed

-l

-

Datw\VJ~2t

/c~c

~

J~14)8iT

Date:2_i

r..(no4~

---

---

Jo~L~n

Corp.

-

‘

1Thorie:81~_5+~-~i7)O

r.o.

box

é~,o,

harvard

IL

600)3

-

rax;

8

1 5-9+3-3722

Dear

Potential

Customer,

We,

at

Jo’Lyn Corp.,

are

very pleased

to announce

our new product

“Eclipse Dust Control”.

We have placed

several

years

of research

into this revolutionary

new product

and have

found

it to

be a beneficial

alternative

to blacktop

and/or

liquid dust suppression

methods.

Below is

a comparison

chart.

Issue

Liquid Suppression

Blacktop

Eclipse Dust Control

Estimated

Life

None

5+

years

-

5+

years

Extra Maintenance Needed

Every Rainfall

Yearly Seal

Coating

Cost

(on average)

$0.45

sq.

ft.

not installed

$1.00 sq. ft.

installed

$0.45

sq.

ft.

installed

Jo’Lyn

Corp.

strongly

believes in Eclipse

Dust Control’s longevity.

Over the

past several years

it has

proven its durability,

enduring

our northern

Illinois elements,

even upon

snowplowing:

We see Eclips~Dust Control as an up and

coming

contender

in the pavement

industry.

By

the

installation

costs

alone

you are ahead

of the

game.

Upon that,

add your saved time and

money

on upkeep,

i.e.,

seal

coating, which

is not required

for Eclipse.

In addition,

Eclipse

Dust Control i~resilient.

Unlike blacktop,

it does not crack under the pressure

of heavy

loads,

even

on the

edges, where most

cracking would

normally

occur

on blacktop.

As you

can clearly see the benefits

are numerous;

not only in start

up costs but in its up-

keep.

Eclipse Dust Control is

definitely, worth

your investment.

-

Quote from

Customer:

“This letter is

to

inform

your company of our

satisfaction

with our driveway and parking lots

-

performance over the last three years.

Until then the dust was almost unbearable and the mud,

very annoying.

As you know the driveway is

traveled by both autos and heavy duty truck use.

Considering the abuse and virtually

no

maintenance, we considerthe paving alternative

“Eclipse Dust Control” to be a superior product and would recommend its use

to

others with

dust and mud problems”

Roy

“Charlie” Hunt,

VP, Harvard Crane and Construction Co., Inc.

Please call us today

for more information and/or

a free quote.

Sincerely,

Jo ‘Lyn Representative

---

---

Parking

Lots

Driveways

Farm. Lanes

Animal

Feed Areas

Bike Paths

Constri.tction

Sites

Walking Paths

Landing Pads

Base Material

Benefits:

0

Eliminates Dust

o

Saves Natural

Resources

Last a long time

Noise Control

No seal coating

costs

Smooth

surface

Saves You money

‘I

Uses:

a

0

0

0

0

:0

0

0

a

Oo~PAcT~oN

0

a

call us today

for

a free quote!

1-877-667-4488

---

Eclipse Dazt Control

&s created by. To’Ly;:~

Corp..

Go Ahead

Eclipse your dust problems.

We did.

No dust

No noise

No re-applying costs

This application

is

Environmentally safe,

long lasting

&

Affordable!

Jo’Lyn Corp. is a

family

owned business

With

over

25

years

experience in

the

waste/recycling

industry.

They

pride themselves in being at the cutting edge of

quality

recycling services and products.

Jo’Lyn is

committed

to preserving

our Earths’ naturd

resources,

so

that

generations

to come

will

enjoy the beauty

and

benefits

of

our life giving

planed

Help

Preserve our

Earth

RECYCLE TODAY!

~hi~t

CDntrii~

Jo’L~n

Corp.

(J.5.A.

I

-877-~?67-±1-88

Eliminai~ere-

applying your

dust Q6~itr~il,~

1none~asy

ap~1icationthat

Lasts Years!

---

State

ofLilinois

ENYIRONMEmIAI

PROTECTION

AGENCY’

Mary

A.

Gade~

Director

2201) Chu.r~hiJi

Road,

Springftei& IL

‘~o.-927~

217/524-3300

.

•

May

ia,

1993

PED

MAY

~~

-

IKO

Chicago,

Inc.

Attn:

P.eynoid

R.

ha’g~l

6600

S.

Cantr~lAvenue

Bedford Park,

l’li~o1s

60638

Re~ 0310125096

--

Caok

County

IKO Chicago,

Lnc,

Log

No.

5-147

-

-

State

Permit

File

So

id

Waste

Oetermination’

Granulated

Bitu~in’ousShingle

Material

(GOSh)

Dear

Mr.

Hagel~

The

Agency

has

evaluated

your

request

for

a

sal-id

waste

determination

for

:...

grarlet~d bituminous

shin.gie material

(~BSM)~generated by ‘the

Oedford

Park

facility

and

has

detarmined

that

it

is n~ta

solid

waste

when

utilized

for

toe.

following

applications:

1.

GBSI’I

Shingle

Chips

say

be

used

to

‘form

a

pavement’~surface

for

unpaved,

niqddy,

soft,

or

dusty

roadways.

The

Shingle

chips

shall

be

applied

at

sdff’ic’ierit.thitkness

(5-6”)

to

ensure

a

cohesive,

durable

roadbed.

2.

G8SM

Ground

Chips

are

divided

into

the

following

categories:

a.

Course

ground

chips

(1/2h1

x

i/2~to

5”

X

5”)

may

b-$

u~d

to

form

u

pavement

surface

for

unpaved

roadways

(see

1.

above).

Also,

these

chips

nay

be

useri

to

form

a

pavement

sub-base

material

for

road

construction

projects.

Once

agaill,

the

chips

should

be

~p’pied

at

s

suff~ciontthickness

to

provide

a

stable

base

structure.

b.

Fine

ground

chips

(1/2”

x

l/2~)

may

be

used

as

an

ingredient

in

h~c

mix

pav’irlg

compounds

(hot

mix

asphalt).

Both the

coarse

ground

chips

and

th~fine

ground

chipS

may

bo

produceo

(shredded)

either

on-site

or

at

the

end

user’s

site,

but

must

be

uti’i~.:~

in

the

manner(s)

described

abovo.

Whii~

use of this material say be exempt From the

perni-it r.equirerents of 3C

11.

Admn. Code Subtitle

G,

Section 807.201

such use cannot ‘violate

any ether

provisions of the Act

or’ the rules and regulations adopted thereunder,

Any

material

not used

as described above

is

subject to the regulations

as they

apply.

Also,

iF

at

any

tine

during

this period the process whic~generates

this waste charges., resanipling

and analysis must be performed ane

submittec

the Agency for ree~ialuation.

EXHIBIT

D

---

---

Page2

•

it

~‘ouhave

any

~OCstions

regar~sinqthis

information,

please

contact ~Co-t’~

Hacke.

at

217/524-3267.

.P1ri~itSection

Oivjsion of Land Pollutio~

Bureau of Land

LWEt/4i5Y~

26-27

---

---

‘~

:~5a.~

~

.~.-:

•43

~‘~:•

•~&

1’;

ci :-~

~

?~1!~c’~

~

•4~

,.~.

1

‘~

Falcon

Waste

& Recyclina, Inc.

P.O.

Box

638

Harvard IL

60033

Phone:

81 5-943-3730

Fax:

815-943-3722

-‘

Eclipse Dust Control

Installation Quote

—____________

Name:

k)k~

~

Phone:

~

~

Address:______

-

It

,.~(k-hO(n WI

~)

3(2.1

-

tabbies~

Products & Services.

Falcon will furnish

all material and perform

all labor necessary to install Eclipse Dust Control.

This quote does not include extra

gravel that may be

needed

to create a good base.

-

Size of Area:

L(

1

I

(tO

~

P1

.

•

-

-

Thickneasof material(s):

~7(f

/

S~’oi

riTel~—/~

~7

q

,

-

~om,~nsibilities:

Obtain proper permits that may be required by local authorities.

5jjgjn&

PaymentTerms:

-

All

of-

the

above work

to

be performed for the sum

of:

~

.2Le

£~

___________

fl~n~n

-t-(io~ondJ~n

honAr~

~,t

Y+d

~/-2~t

~

~‘(~Dollars.

Halfdown,

$?1~~.

—

,

,

due approximately 2 weeks prior to start date.

Remaining

balance due on completion.

Approximate

Start

Date:____________________

Customer:

FaIcon:~~

~

Date,

Date~

~

---

---

C

•1

I~.

II’

Falcon

Waste & Recycling, Inc.

P.O.

Box 638, Harvard IL

60033

Phone:

815-943-3730

Fax:

815-943-3722

Eclipse Dust Control

Installation Quote

—____________

Name

~

~

Phone:

ZL~2.

72 ~

~

WI

_____

Products & Services.

-

‘

-

Falcon

will furnish

all material and perform

all labor necessary to install Eclipse Dust Control.

This quote does not include extra gravel that

may’ be needed

to

create a good base.

Size of Area:

~(

1

1

(tO

~.

‘~.ec~J

~

Pi

.

Thickness of material(s):

~

If

~

~il

Scr~r~

V

~,

~

-

£3

3(21

Customer Responsibilities:

-

Obtain proper permits that may be required by local authorities.

Pricing S Payment Terms:

All ofthe ebove work to be performed for the sum of:

~

1q

~

~

--

hon~id

~t

~

~~~Dollars.

Half down,

$

.

—

.

,

due approximately

2 weeks prior to start date.

Remaining

balance due on completion.

Approximate Start Date:____________________________

Customer:__________________________________________

Date

_____________________

Falcon:

_______________________________________- Date~L~

A

/•o

---

---

Falcon Waste &Recyclnig

Inc

Phc

e

915-043

fl

p 0

Box 638

Harvard

IL

60033

~

~

~r

F

x

B1S

943-3

-

“

Eclipse Dust Contro~

Installation

Quote/ Contrac~

-

-________

-

Name:

~

~

•

-

Address:

L_~

tILt

~

~,‘7(t

(1(1

______

Products &

Services.

•

-

Falcon Will furnish

all material and perform

all labor necessary to

in

-all Eclipse,C-:ist Control.

-

This

quote does

not

include extra gravel that may be needed

to cre/

sa

good bar-~.

•

-

--

Si:eofArea:~~.

~

~

-

•

Thickness of material(s):

~

-

_____________________

Customer Responsibilities:

Obtain proper permits that may

be required

by local authorities.

•

-

-

•

Pricing & Payment Terms:

-‘

•

All of the above work to be performed fur

the

sum of:

$

,~2

~!1L.gCi~

-

________

~nc~rre

~

°~/lco

Dollars.

-•

Half down,

~

,due

approximately 2 .~eeks

prior to start date.

Remaining

-

-

-

•

balance due on completion.

-

-

-

Approximate Start Dais:_________________________

customer:_______________________

-

_________

Date

--

-

-1a!con:

/

5?2/JN.~.J4r~

Date_,.,.

---

/

-

---

Fa~on

Waste &Recyclingtnc

Phc

e

815

943~

.

-

Eclipse Dust Contro~

Installation

Quote/ contra~

Name:

Ldb~r~

~

•

Phone:

_____

•

Address:

~

I~-I

~

L7l~

Products & Services.

.

Falcon Will furnish all material and perform

all labor necessary to in

all

Eclipse ~istControl.

This quote does not include extra gravel that may be needed to cre,

a good ba/s.

Si:eofArea:

•

(~)(j~ ~

~2

-I

~QJ~-Q.

‘~-~

-

•

.

--

-i-.”

Thickness of material(s):

~

-

-

___________

Customer Responsibilities:

Obtain

proper permits that may be required by local authorities.

Pricing & Payment Terms:

-.

•

~?.S2.

All of the above work to be performed fur the sum of:

~

-~e~&~hCk~s04~

~i~c

h

Ylr(C~ ~

~//C~1

‘

Dollars.

Half down,

~

,

due approximately

2

.‘.eeks

prior

to start

date.

Remaining

balance due on completion.

Approximate

Start

Dal-~:__________________________

Customer:

_________

Date

~

Date_.

. -

---

---

Falcon Waste & Recycling, Inc.

Phone:

815-943-3130

P.O.

BoX 638, Harvard IL

60033

Fax:

815-943-3722-

Eclipse

Dust

Control

Installation Contract

-

Name:~~~

~

-

Phone:7Z~O2~

Address:

:~7~Q~((

~

dridc,~hje.

l1’)~-~r-\t(

•

~.l

•

-‘-

Hereinafter

known asCustomer, is entering into a contractwith Falcon Waste & Recycling,

‘Inc., 2 Kennedy Drive, Harvard, IL, hereinafter known as Falcon, forthe materials and services

-

•

to be supplied

and performed by Falcon.

Products

& Services.

Falcon will furnish all

materials and perform all labor necessary to complete the following:

~

0/2kkQ~.

-

fi.

r( v’4e~

Size

of Area:

Li ~ ~3

~.

P1

Thickness

of material(s):

i~

Customer Responsibilities:

•

Obtain proper permits

required

by local

authorities.

Pricing & PaymentTerms:

.20

Alloftheaboveworktobeperformedforthesumof:$

~

3.

..—.

J~U~’11~(

/tVTld(02

VU(?i1.I

~‘&h

re.e. ~

~~~DoIlars,

I

-

•

Half down,

$

~

.

due 2

weeks prior to start date.

Remaining balance due on

completion.

A

proximate Start Date:____________________________

custom~i~~~aj

Date________

‘

Felcon:________________________________

________________

---

---

.4:--.

‘

--

P.O.

Box 638, Harvard IL

60033

Fax: 815-943-3722

-

~

Falcon Waste &

Recycling, Inc.

Phone: 615-943-3730

-

Eclipse Dust Control

-

-

Installation Contract

Name:’~L~T~

~‘\0~~E5~

-

Phone:_____________

Address:

~7(~-((

Al.

.

,!di’idc~p

1~OI51,

ii~fr4n

t1.

-

-

.

-••

-

Hereinafter known as Cuetomer, is entering into a contract with Falcon Waste & Recycling,

‘Inc.,

2 Kennedy Drive, Harvard,

IL, hereinafter

known

as Falcon, for the materials and

services

‘

‘

-

to be

supplied and performed by

Falcon.

‘

Products

& Services.

—

-

—

‘

-

-

Falconwill furnish

all materials and,perform all labor necessary to complete the following:

•

--

‘

~

~

JcW..Q..

-

C~t

rc

ijt.~

~

‘

-

-

-

Size of Area:

1

3

T’)

S~.

.

‘

-

Thickness of material(s):

£1’

-

Customer

Responsibilities:

•

-

-

-

,

Obtain proper permits required by local authorities.

‘

-

-

‘

Pricing & PaymentTerms:

.20

•

All

of

the above work to be

performed for the sum

of:

$

~

3

.

__________

‘

-

•

JAf’.~

/tUfldr0~1

(U’lhj

“~+\1~e

~

~OoIlars.

U

/

oO

‘

I

-

•

Half

down,

$

~/

SO.

,

due 2 weeks

prior to

start date.

Remaining balance due on

-

‘

completion.

A

proximate Start Date:____________________________

-

•

custorn~~~/j

Date

•

‘

‘

.

‘

‘

‘

-‘

•

Falcon:________________________________

Date________________

-/

U

I

I~t

___

-‘

---

---

Falcon Waste & Recycling

Inc

~

Phone

61 5-943 3~ 3

PD

Box

636

Harvard IL

60033

~

“~~fjl~~~8

Fsx

815-943

37.2

r

~

-

Eclipse

Dust Control

-‘

-

Installation Quote/ contract

‘

Name:

~

~O~Th

Phone:~~~

~~(I

-

Address:

()~S’.C~I

U~)\~flk1~

~,~_-\~--?~

~

Products & Services.

‘

-

Falcon will furnish all material and perform all labor necessary to install Eclipse

IYust

Control.

,

•

This quote does not include extra gravel that may be needed to create a good base.

ll1j7c

Ti

‘

-

Size of Area:

~\

~

e,g’(,-rt-,

‘

-

-

-

:

Thickness of material(s):

2

-

-

Customer Responsibilities:

-

Obtain proper permits that may be required by local authorities.

~gin&PamentT~s:

--

All ofthe above’ work

i.o be performed for

tlse sum of:

$

-

-

OlkSjk’-4t3

~u?

~

~StJ/bfs

~

Dollars.

Half

down, ~

110,

,

due

ac-~~roximnately

2 weeks prior to start date.

Remaining

balance due on completion.

Approximate Start Date:

•

-

Cuslomer:i

Y~

/~*

~

Date

—

•

‘,

-

Falcon:__________

_______________

‘

________

Date~~15

,‘~ei~i~

---

---

Falcon Waste &Recycling,

Inc.

P.O.

Box 638, Harvard IL

60033

It

1Y2’c

T~

Size of Area:

‘1

1,

t

-

—

Thickness of material(s):

-/

Customer

Responsibilities:

Obtain proper permits that may be required by local authorities.

-

Pricing

& Payment

Te’m~j

All of

the

above work ~pbe

performed for

the

sum of:

$

~aeiii~

t~lo

5

~E

~

iLe

:;e.f3-/~~

fJO1/~5~,

~

Dollars.

Approximate

Start Date:

‘

_________

Cuslomer:i

~

,

~

________________________________

_________

~

Phone:

81 5-943-37 ~

Fax:

81

s-943--3Te2

Installation Quote! Contract

Name:

~

~

-

~O

~\m

Phone:

~

~7

I

Address:

~

~

~

~

Products

& Services.

•

Falcon will furnish all material and perform

all labor necessary to install Eclipse

lYust

Control.

•

This quote does not include extra gravel thatmay be needed to create a good base.

Half down, ~

110,

,due

apProximately

2 weeks prior to start date.

Remaining

balance due on completion.

Eclipse

Dust

Control

---

---

I11rnoi~

De~jartrnentof

Commerce

and (1ommunity Mthirs

Geoj’e

Ran

•

‘

Psun McDoi::’ugh

Go’~’

,,or

Dijecto.

June

10,

2002

‘

‘

-

Ms.

Kathryn Powles

President

Falcon Waste & Recycling, Inc.

2.0,

Box 638

Harvard,

IL

60033-0638

Dear Ms. Powles:

Enclosed

is

Grant Agreement Number 02-44508 between Falcon Wa.’-/te & Recycling, Inc.

-

(“Grantee’) and the Illinois

Department

of Commerce

and

Communii’y

Affairs ~‘Departrnent”).

Please review the Agreement

oarefuly

to

ensure that the

Grantee’s rights

and responsibilities

ar~e

c/early

i.rderstood.

You

are encouraged to have the Agreement revic\ved by

an

attorney.

Ifthe

id:,:l,l5

of

the Agreement are

acceptable, please complete the steps

indcated

on the

enclosed

c1’.~cck

hst

in

order

to properly execute

‘We Agreement.

• rdi~

~rcn,~’i~)

should

then

be

returned

to me

a.t th.e following addrec~’.

Barb Eldridge

Illinois

Department

of CQmmerce

and

Community Affairs

Bureau ofEnergy and

Recycling

620 E.

Adams Street

Springfield,

IL

62701

Pursuant

to

tbe Notice of Grant Award, the Grantee may incur costs

-gainst

the Agreement as of

l~ne

‘15,

2002, provided

that

the

Grantee

accepts

the terms

and condiJons

as set

fbrth in the

at’ ached

Agreement.

The Department

may elect not

to

execute the-Agreement

if

any of the

te :ms

are

changed

without

the Departrneiit’s

prior

approval,

and the Gi’antee will be

-

responsible

for

any

costs

already

incurred.

Please contact

me inrn’i,ediatelv if any of the terms

ol

the

Agreement are

unacceptable.

IiiternelAddrt~siullp://www.commelce.state.i I.us

20

iiust Ad-arm SIt-eeL

J~iirres

R,

TIm,itp.sai Cci,Ier

667

lt,s,

Adi,nrs Sitmi

231/9

West

Maii,,

Ssiie I If

S

ringlield, llIinoi~62701

00

WeO

ItnndOlph Slices, Stale 3.400

-

Springlield,

lllinais 6270/

hlarice,

Illinois 5t7959

Chicage,

llli,tois

60601

UIWOI,4--71.7l’

713/73w-non/i

(,l0//’07-47r14

In

~l

,524-’b?.l

,,roD

500nI:s-wo5

Via.

‘0/’241i14.i,732

moin-.

0010419.0667

lisa:

2l7’71l6-7.&15

,.T5353,

6071,

1.01100

sIe/i’n.lIp

h’i’ireil

at

Recycled mid P,ecycltilile Paper

E)(HIBIT

---

---

You will be provided with a fully executed copy of the Agreement after it has been

signed

by

Director McDcnough.

If y

a have any questions, please call Angie Adkins-Embrey

at

21.7/785-2808,

or call

me

at 217/557-5662.

-

-

Sincerely,

-

-

-

—~

Barb Eldridge

-

Grant’s

.A.dmini rtratoi’

Enclosures

cc:

file

---

---

-‘

‘

-

STATE

OF

ILLINOIS

DEPARTMENT

OF

COMMERCE

AND

COMMUNTI

TY 7\~’FAI

RS

-

Notice

of

Grant

Award

No.

02-44t00

-

-

ENERGY

&

RECYCLING

-

RECYCLING

1,

This

Grant

Agreement

(hereinafter,referred

to

as

the

IlAcreernentli)

is

entered

into

between

the

Illinois

Department

of

Commerce

and

Community

Affairs

(hereinafter

referred

to

as

the

“Department”)

and

Falcon

Waste

&

Recycling,

Inc.

-

(hereinafter

referred

to

as

~he

‘Grantee)

~.

Subject

no

terms

and

conditions

of

this-

Agreement,

the

Department

agrees

to

provide

a

Grant

in

an

amount

not

to

exceed

$150,000.00

to

the

Grantee.

Subject

to

the

execution

of

this

Agreement

by

botlt-

parties,

the

Grantee

is

hereby

authorized

to

incur

costs-against

this

Agreement

from

the

beginning

date

o~ 05/15/2002

,through

the

ending

date

of

01/31/2004.

The

Grantee hereby agrees

to ‘use the funds

provided

under

the

Agreement

for the

purposes

set

forth herein and

agrees

to comply witl-i all terms of this Agreement~

-

This Agreement includes the following sections,

all of which are

incorporated into and made part

of this Agreement:

Part,:

-

I.

Budget

-

-

-

i-I.

Special

Grar’~tConditions

-

I

i.

I.

Scope’

of

Wonlc

•

-

IV.

Proc~ramTerms

and. ‘Conditions

V.

c;eneral Provisions

VI

ReciLiared Certifications

Under penalties of perjury,

the undersigned certified. that the name,

taxpayer information,, nun-~ber,and legal status listed below are correct.

If

-you are an individual,

enter

your

name

an.d

SSN

as

it appears on your

Social

Security

Card.

If

con-pletinq

this

certificatid-~,t

for

a

sole

proprmetcrsl-aip

/

enter

the owner’ s name followed by tie name

of the

bus

incus

and

th.e

owner

s

SSN.

Fo:c

all

other

entities,.

eflt,er

the name

of

the

entity

(as

used

to

apply

for

the

entity’s

EIN)

and

the

EIN.

Name:

Falcon

Waste

&

Recycling,

Inc.

Taxpayer

Iden’t±ficatiofi~

Number:

SSN/EIN:

354409449

06/10/2002

1U:36:2B

---

---

Legal Status

(.check one)

individual-

Owner

of

sole

proprietorship

Partnership

Tex-excmpt

hospital

or

/

-

extended

care

facility

-

~•~_

Corporation

providing

or

billing medical and/or

health care services

Corporation

NOT providing or

billing

medical and/or

health care services

Government entity

Nonresident

alien individual

Estate

or

lbgal

trust

-.

Foreign

corporation

partnership

estate

or

trust

Othet

-

not-for-profit

organization:

________________

Other

The Grantee acknowledges

that the individual

signing below is

authorized

to execute this Agreement and that such signature constitutes the

acceptance of this Agreement.

~~H-~yW

~b~L-FS

Print

or

Type

STATE

OP -ILLINOIS DEPARTMENT

OF COMMERCE

AND

COMMUNITY AFFAIRS

GRANTEE:

Falcon

Waste

&

Recycling,

Inc.

By:

Pam

-McDoncugh,

Director

-

Date

‘Grantee Address:’,

PG BOX 638

Hatvard,

-

IL

60033-0638

Please

indicate

any

changes

below

Auth

Signator:’

Kathr~rn

Powles

‘~

-~______

Phone:

(815)

943

-

3730

____

The following is designated

as

administrator

for

the

Gruentee:

~

~

Auth

Signator:

~

~

Phone

06/10/2002

10:36:28

-2-

---

---

PART

‘I

GRANT BUDGET ESTABLISHMENT

NEW

BUDGET

AMOUNT

150, 000. 0,0

PROGRAM:

ENERGY

& RECYCLING

-

RECYCLING

/

NAME OF APPLICANT/GRANTEE:

-

Falcon Waste

& Recycling,

Inc.

APPLICATION GRANT NUMBER:

02-44508

PROJECT DURATION:

BEGIN DATE:

06/15/2002

END DATE~ 01/31/2004

SUMMARY OF PROJECT

-

BY BUDGET/COST CATEGORY

.

.

‘

CURRENT

COST~

‘

APPROVED

.~EQUESTEFI

CAT.

OESCRI’PTION

BUDGET

~jv1o’uNT

1O10~PER2ONAL SERVICES

-

-

1

O20~EQUIPMENT

-

‘

-

iSO,000.00

1O3HTE~TING/ASSESSMENT

1040 SUBCONTRACTOR

1050

El’ LJCATION/PRONOTION

2010

pR1NTING/SU~’PLIES/CoMMODITIES

-

-

2

02

Cl

U-c2,M~T’iIT8P

SERVICES/TLLEPHONE

Ci~-:Q

?,\IIi”C).MCJPTLE OPERATIONS/FUEL

OTHER DIRECT COSTS

4000 GF~~TEE

MATCH

15,000.00

-

l.5~000.00

6000 GFLANTEE IN KIND-MATCH

‘

-

.

‘

‘

--

iCC

PROJ:TS/suuoFn

-

--

--

tcjOO

06.- :1.0-2002.

10:36.28

---

PART

H

SPECIAL

GI~ANTCONDITIONS

2J

AUDIT ~QU1~MENTS.

/

The Grantee is required

to have an

audit conducted

as provided

in

-

~

V,

Section

5.4

C

Audit

Requirements.

~

The

Grantee is not required to have

an audit conducced

as a

condition

of this Grant Agreement.

---

-

‘

-

PART III

-

-

STATEMENT

OF

WORK

I.

iNT:RODUCTION

The Grantee will use grant funds

to purchase

a specialized’grinder to recycle asphalt

roofing shingles.

The asphalt roofing shingle tabs will come fi-oni

matu~facture.r’swaste

•

(pre-consumer) and will be recyclad into a road-base alternative.

-‘

~JJ~

PROJECT SUMMARY

‘‘

The

Grantee, located at P.O. Box

638

in Harvard, Illinois will u,ft-ue~antfunds for the

-

purchase and in~tal1ationof the grinder at the

their project

locati.c—o, located at 20800 W.

‘Brink Street in Harvard, Illinois.

III.

~

-

The Grantee shall ~ubmitquarterly reports to the ProjectManage: of the Burea~iof

Energy & Rec~’clingattlie Department. These reports will

be

d”,,r: as’follows:

-

Octobet

1,5, 20Q2

January

‘15, 2003

.Apri/ 15, 2003

-

-

July 15, 2003

-

These

quartarly reports shall contain, but not be limit~dto:

-

.

‘

-

A.

A report of all costs and expenditLires incurred in the opeintion of the project.

B

A iej o tot all activities accomplished during the reporti

penod and’ te results

of these”activities. This shall include the following deta:~”~.:d

records:

a report ol the total volume of asphalt roofing sh

Ic tabs colle ted from

the manufactuter(s) permonth,

,

-~

-

-

-

2.

a list of’the manufacturer(s) supplying the match a,,

3.

a list-of processors of the i’ecycled waste material,.

4

a list of end maiket useis of the iecycled material,

-

-

-

5,

a report of the end market uses ofthe recycled ma/~-.’riaI.

C.

-

A report on the performance of the grinder. Include ageu~raloverviev. ~fthe

operational experiences for thereporting period and any u~~crational

pro hems

encountered, plus adjustments made to overcome those pr(*Iems.

---

D.

A report of fl-ic total Cmount of matOm-ial diverted from

Ill iois- landfills as a

result

of this project.

E.

An evaluation of,the project’s overall

effectiveness,

inchdling any problems or

barriers

to

it-s operation.

F.

A report of other information, as requested by the Project Manager.

-

A comprehensive Final Report will be due on November 15;2003. The Final Report

shall contain all of the

information listed above and be a comprel’.ènsive description of all

activities

in detailed summary fi-om the start date to the complei’i”.’fl date.

IV.

PUBLiC

INFORMATION

1.

Each party

shall, for the duration of this Agreement,

L

:t-ISC

the

participation of

the other party to he mentionedin all press releases and

c,

her material presented

to the media concerning the proj ect. Each party will coordinate media-

-presentations and coverage. A cbpyof anyproposed press releases oroth~r

material’or presentations must be submitted

‘to

theDepartment forreview and

approval not less than 10 days before these matdrials are”usued. Immediately

‘blowing publication, cOpies of all press releases

or

mcdii

materials will he

provided to the other-parry

by

-the originating party.

‘Grantee shall submit its

copies of press releases

antI

materials to the.Deparrment Project

Manager.

2. Formajor media events, sucl-i as open houses or dedic.,ilions, Grantee Will

coordinate with theDepartment ProjectManager any pin-us for such,

and

provide

an opportunity

for theDepartment to review ‘and approve any materials, data,

reports or documents created for plan:ned publicity event relating to th~project.

Materials rOust besubmitted at least 10 days-prior to

pub :‘cation or

date of event

and shall prominently acknowledge

the

Department’s pa:;’ticipation

in the

project.

3.

Grantee shall erect a sign, which is approved by the’Drp,artmeflt, on,or near the

project site for the duration of the Grant term that identi’t: :s

the Department as a

participant

in

the project.

Grantee shill also affix an

appropriate

sign or

decal

IC,

equipmentpurchased with grant’funds that acknowledges thesponsorship of the

Deparm-ient.

4. Grantee agrees to provide to the Department Project Manager visual images of

items pertaining to the project detailed herein in the form, of35mm slidc-s. A

minimum

of 10 slides

must

be submitted

prior to the

cd.mpletion of this

‘Agreement, featuring, but not limited to:

a.

View of the

facility

b.

View

of sign

---

c..

View c Fopdration(s)

d.

Views

~ actual machinery, equipment, activity. etc., funded

by this

Agreenmem, t.

3.

Grantee also a;rees

to provide the Department Project Manager with copies of

any photographs

‘nd/or slides of ti-ic facility,’equiprnent,

machinery,

activities or-

-

•

press ‘events relati

tie

to the project taken during the term

ci this- Agre.ement’for

public education,

display or press pufiDoses.

---

---

J~AYMENTREQUEST/CERTIFICATION FO~

DCCA G~T

NO.

-

-

02-445

08

GRANTEE NAME. AND ADDRESS:

Falcon Waste& Recycling,

Inc.

P.O.Box638

-

Harvard,

IL.

60033-063 8

AMOUNT

OFPAYMENT

REQUESTED:

____________

GRANTEE

CERTIFICATION

All

expenditures from these project funds

are for approved project costs only.

Further, I certify

that supporting documentationon actual expenditures is on file in oum’ office, and that Ihave

full

iic~natoreauthority

to sign

on behalfof this organization.

Ill!:

-

—

__________________

______

Date:

_____

_________________

(Lil 201cC

Sh~naturel

DCCA CERTIFICATION

Receiving Officer:

-~______

Date:

_______

Head of Unit or

Authorized Agent:

-

—

Date:

_______—

Appropriation:

-

SIJBA:

_____

Aeon

-

Date:

-

SFY:

---

---

PROJECT

COMMENCEMENT DATE

CERTiFICATION

DCCAGPANF

NO.

-

-

o?-44508

GRANTEE:

Falcon Waste& Recycling, Inc.

I hereby make

the

following certifications regarding the project described in Part III of the above

referenced

Agreement:

~

all approvals necessary to perform the project have be~n obtained;

~‘

all equipment and material necessary to perfon’n the project has been acquired,

‘installed, impIemei~tedor distributed;

~

an~-’

contracts/third party agreements necessary

to

perlbr’n the projecthave been

executed;

arid

~

all project tasks have commenced as

of

which

is

the

Proj cc-I.

Commencement

Date.

I fi.irther certify that I am authorized

to

make this certification on behaLofthe Grantee named

‘tbocc

Nan :e

(pnnted)

.

Title (printed)

Nan-ic (signed)

Date

I

,

-

~

“****‘~‘****~

************

DCCA

CONCURRENCE

-

I concur that the Project Commencement Date is as specified above.

I do not concur that the Project Commencement Date has occurred for the reasons

set Ibrtl’t on the attachedpage.

•

Angie Adldns-Embrey

•

Project Manager

-

Date

-

---

---

--I

PROJECT COMPLETION

DATE

CERTIFICATION

DCCAGI~~TNO.

02-44508

GRANTEE:

Falcon Waste & Recycling,

J.nc.

-

I hereby make the

following certifications regarding the project described in

Part III

of the

above

referenced Agm’aement:

all project ta..ks have been completed in accordance

with the terms

of the

Agreement.

-

all deIiverab~oshave been submitted in accordance with theterms ofthe

A~reemen,t.

-

•

theProject Completion

Date is

_________

______

•furthe.r certify tl-iat

J

am authorized

to

make this certificationon behalfofthe Granteenamed

above.

Name (orinted)

Title (printed)

Name

(:,ngned)

Date

-

DCCA

CONCURRENCE

El

I concur that the Project Completion Date is as specified above.

El

I do not concur that the Project Completion Datehas occurr~dforthe reasons set

forth

on

the-criached page.

Angie Adkin’~-Embrey

Project

M~pager

Date

-

---

---

PART

IV

PROGRAM

TERMS AND

CONDITIONS

Section

4.1

~UTHOffl1

Y;

PURPOSE;

REPRESENTATIONS AND WARRANTIES.

A.

-

Authorily.

Tlie Department

is authorized by the Illinois Solid Waste ManagementAct

(the

‘Act”) 415 ILCS 20/1, ct seq., to provide grants for thepurposes

of

reducing reliance on land

disposal of solid waste, promoting a1term~ative

means

ofmanaging solid waste

and

assisting local

units ofgovernment with soLid waste planning

arid

management.

B.

Purposez

Representations

and Warranties.

The sole purpo.;e of this grant is to fund

the

Project described in the Scope ofWork set forth

in

Part III ofthis Agreement. The Grantee

represents and warrants that the grant application submitted by ti-ic Grantee is

in

all material

respects trueand accurate; that

it

is authorized to undertake the obligations set forth in this

-

Aereement

and that

it

haS

obtained

or Will

obtain at-id maintain all -permits, licenses or other

t~overi-imental

approvals

ne.ccssery

to perform-n the Project described

in Part

III.

Section 4.2

PROJECT SCHEDULE;

EARLY

COMPLETION;

EXTENSIONS.

A.

~

Sche~,1e~ TI-ic Grantee shall complete the Project

in accordance with

ti-ic Project

gchedule set forth below. The “Beginning

Date”

is the date Grantee may begin to incur costs

against

this

Agreement.

Ti-ic

“Project

Commencement

Date”

is

the

date

on which

(i)

all

approvals necessary

to perform

the

Project have beenobtained; (ii) all equipment/material

LL~cessary

to perform

the

Project

has been

acc~uired,installed, impie~hcnted-ordistributed; (iii)

no’

coltr!-ac’t.s ur

other

agreements necessary to perform the Project

have

beenexecuted and (iv)

~

has

c;ornmçnced

the

perfonnance

of all Project tasks described in Part Iii.

Ti-ic

‘Project

Completion Date”

is

the date

on which

all

tasks specified in

Part III are complete and

all

deliverables

specified in Part

III have- been delivered to

the

Department.

The Grantee

is

required

tQSUbmit

the

Project

Commencement

and Project Completion Certification

Forms

attached

to Part III hereof.

-

“

Project Schedule

Beginning

Date:

June

15, 2002

Project Commencement’Date:

October

1.

2002

-

-

-

Project Completion Date:

October 31, 2003

Grant Expiration-Date:

January 31, 2004

The reporting

provisions

of Part

111, if applicable,

survive the Grant

~xpiration

Date set

-

forth

in the Notice

of Grant Award for the

period(s) stated

therein.

B.

Early Completion.

li-i

the

event that

the

Project Commencement

D’.

ic occurs

prior

to

the

deadline established herein,

the

Grantee nay request that the Department adjust

the

Project

Completion Date accordingly, provided

however,

that

the Grantee is obligated

-o perform the

Project for a minimUm of 12

months.

-

•

-

-

-‘

---

C.

De1ays~xtensions. Extensions of the Project

Commencement Date

and the

Project

Completion Date will be granted only

mom-

good

cause. Granteès requiring anextension should

submit a written request to theProject Manager named in Section 4.12 herein, stating the reason

for the extension, 30 days-prior to

the

deadline established in Section 4.2A above.

The

Grant

Expiration Date willhe extended

only under

extenuating circumstances an~at

the sole discretion

of

the Department~’

-

.

-

‘

-

Grantee’s failure to.adhere

to this schedule may be grounds for suspension or termination

-

of this Agreement pursuant to Section

5.5

herein.

-

-

Section 4.3

MENT.

‘

-

Payment of the grant amount specified

in the Notice of Grant Award

shah

be made to tie

Grantee

as specified herein

All required

documnenmanon shoutd

be

autrnmed

to

tti-2

Project

lviarmaaer

namcd in hectian 4.1

2.

here”f.

A.

Initial Payment.

An

initial

payment

of~T12,500.00 w,il,l he aiiihorized

aft

-r the

Department has executed this Agreement-and upon rec&Ipt of the

follc~wingsuhmiu;als from the

-

Grantee:

(i)

Executed Payment Request/Certification Form

provided, by the Department

for the

initial

paytfient;

(ii)

-

Documentation evidencing that any.thii~d-part-)’agreements required to perform the

Project described in Part.II1’have been executed; and

(iii)

-

Purchase orders, invoices

or other documentation

evid~ncingthat

the

equipment

or materials specified

in the

Project Budget set

forth

ip. Part I hereoL~have been

ordered or purchased

by the Grantee subsequent to theelbeginning Date set forth

in

the Notice of Grant Award.

B.

Final

Payment, The final payment

of~37,500.00will be autfiorized upon ~erification

b

the Department that the Project is complete, its acceptance of all required dehivera-:le~and receip:

of thefollowing submittals from the Grantee:

-

(1)

Executed Payment Request/CertificationForm provided by

the Department for tit

final payment;

am-id

(ii)

Project Completion Certification Form,

•

-

C.

Refusal to A’utho’Hze

Payment,

The

Department may refuse to authorize

any payrnenu

specified herein in the following-events:

(i)

Grantee l~asfailed to submIt the required documentatid~’described in Sections

4.3A or B, or the documentation submitted is deficient~or

-

---

-

(ii)

Grantee has i~ii1ed

to

complete the Project in accordaiue

with Part ill,

and

its

-

-

failure to coh~piywith thereporting recfi.iirernêrtts set

fcrth in Section 4.6

below.

D.

Right

to ReflLn~.Ti~&.D~partment

may requirearefund from the Grantee inthe

following events:

-‘

‘.

‘

-

1-

-

-

1~

(i)

‘‘he amount c~

eligible Project expenditures is

less

thaT! the total

gm-it amount;

(ii)

Grantee has r)~it.made

the required Applicant Investme

~t

to’ the Project as

specified

in

Fart I;

or

(iii)

Grant funds

1. we not been expended in accordance who the Project

Budget

-

-

\:~rith&utthe

11’

~partment’sapproval as required

in Secth

ri

4.4

below.

3ection

4.4

Tt~UDGE1

M)DIFICAFIONS.

A.

~

Line

Items.

Grantee shall expend the gi ant

funds

in

sccordnnce

n’iti, the

~pproved budget se

fbi-tb

in Part

I hereof

Ifthe Grantee determines

that its

expendit&’es fo” the grant t~nwill

vary

from

the amounts

listed in

the approved Project Budget,

hmit

will not exceed the tote

grant amount,

it

shall submit

a written request’ for approval from

ic

Department prior

to

incu.ringthe

revised costs.

Said request shall

give

the

reasons for and

~ounts

of

the

:‘evisions,

If the Departme~at

approves ti-ic revised expenditUres, it will provide

he Grantee wit’

a revised P ~ojectBudget incorporating

th,e

revisions.

Grantee’s failure

to obtain

~\-itten

approvrL

for sinticipm ~“ad

budget revisions

shall be deethed- sufficient reason for the

-

Department

to

disallow, any costs

not included

in

the original Project Budget and require a refund

iLom

tile

Cirantr

~.

-

‘

‘

-

I~~’isions

that would incre.;se the amount of

the-grant or

change Project

tasks

or objectives

m

oni

be effected throu~ha formal

grant

modification

in accerdance with

Section

5.7C

-

hereof.

B.

~

Applicant

investment.

Revisions to the allocation

of Grantee’s

A,uriiicanl: lmnestmem

among

budget line

iten-is

may

be made without the Department’s prior

.‘-‘ritten approval, provided that any such revmsion

does not result in

reducing il-ic Applicant

investment

below

ftie level r::quited

by

the applicable program guidelines

or

in

changing Project

asks or

objectives.

Grantee

is required to provide written notification of all

such revisions

to

the

I)

epartment.

Section 4.5

lNTEREST

‘)N

GRANT FUNDS.

-

All

interest- earned on grant

funds

held by

the Grantee shall become part of the grant principal

when darned and

may

only he

spent on purposes

authorized

by this A,~treemeiit. interest earne.d

and act spent or

legally obligated by the

end of

the

grant

term-i-i shall

be returned

io

ti-i.e Department

within

45

days

Following the expiration or termination

of this Agreement.

---

Section-4,6

REPORTS.

Grantee shall complywith the following provisions relative to the prc3aration and

submittal of

all reports

required under this Agreement.

The

form

and

substance

d

~“

the reports is

described

in

Parcill.

‘

-

-

(i)

All reports must

be submitted on or before the due date(s) set forth

in

Part

III.

Requests for extensions must be

written,

state the reason- for the requested

extension

and

be

postmarked

before the subject due d~r:e.

-

-

(ii)

The Department reserves the right to-modify the repor

ng schedule set

forth in

-

Part III.

The Department shall notify

the Grantee in \aY~t~ng

of the revised

-

reporting

schedule and shall provide the Grantee

with.

~vised due dates for the

submittal of

reports, uhich ~h~tlisupei~~de

the

due ci~

.s estahlisheJ

herein..

(iih

The

Grantee shall prepare additional or supplemental

‘~

ogress repons if

requested

b

the Department.

-

-

Section 4.7

OWNERSHIP,

USE AND MAINTENANCE OF P

tOPERTY.

A.

Ownership.

Subject to

the provisions ofthis Section

4.7,

am

l the remediesavailable

to

the

Department as set

forth in

Section 4.11

below, equipment and:mat :rial authorized

to

be

purchased with grant funds shall become

the property ofGrantee.

G~antee

shall, maintain an

inventory or property controi

mecord-fo.r all equipment and material pi’:chased with grant

funds.

B.

~J~.e;Maiiuenance;

Insurance.

For a period

of

three

years fe

lowing the Project

Commencement Date certified by the Grantee, the Grantee shall:

(i)

Use equipment

and materials acquired with grant funch~

only for the approved

Project purposes set

forth in Part Ill; and

.

.1

-

-,

(ii)

Provide sufficient maintenance on the equipment

and

aterials to

permit

-

achievement ofthe approved Project purposes and mal

~tain,at its own expense,

insurance coverage on all equipment and material pur~masedwith grant funds, for

its full insurable value, against loss, damage and othei’?isks ordinarily insured

against by owners or users of similar equipment and material in

similar

businesses.

C.

Prohibition Against Disposition~ncumbrance.The

Grantee is prohibited from, and

shall not sell, transfer,

encumber or otherwise dispose of said equipm~-Pt

or

material without

prior written appno\’al

offhe Department during the three-year period specified herein.

D.

-

Rolling

Stock Requirements.

The following p~ovisionaare applicable if gram-it funds

provided

by the Department are used to

acquire Roiling

Stock,

as that term is

defined in the

Request

for Applicaiions

issued

by

the Department:

‘._‘,

-

---

(i)

Grantee shall comply

wiih the provisions set forth

in this

Section

4.7 -for a period

of-three

(3-) years

follo\\ing

the

Project CommencementDate;

(ii)

Grantee shah submit an

annual

certification to theDepartment for the three~year

pdniod refer,enêed herein certifluing that the Rolling Stpck is being used in

accordance with the provi

:-.

ions ofthis Agreement;

and

-

(iii)

If reqtiired by the Department, Grantee shall execute a Security Agreemdnt, which

gives the De~artrnentaPurchasc Money Security Interest in the Rolling Stock

purchased

with

grant funds.

-

-

-

Theprovisions of Section 4.7,

including Section

4.7D, if applicable,

survive’tbe

Grant

Expiration Date set forth

in

the Notice

of Grant Award for

the period(s)

stated

herein.

Sechon 4.8

SUI3CONTaACTOR DISCLOSURE.

-

As of

the

eff~ctivedate Of this’Agreement, no subcontractors are expected to perform consultant

services pursuant

to this Agreenient

and

to be paid withgrant funds pr6vided hereunder.

If

durirtg

the

term of this Agreement, the Grantee retains subcontractors to be paid

with

grant funds,

die

~Gnantee

shall notify-the ~epartmenf

ofthe name and address of such subcontractor(s) and

the

anticipated amount of payment

am-id

the parties shall execute an appro~niate

amendment for filing

with.

the State

Comptroller’s

Office.

-

,

‘

-

~

4.9

ACCESS

TO

WORK PRODUCTS;

PUBLIC

INFORMATION

Al-i

documents,

including, reports, studies

and other materials developed, produced

or generated

by

the- Grantee as

part

of

the~perfonin

once

required unddr this Agreeny~~nt

are referred to herein

as

the

‘Grant

Documents.’

Grantee and the Department shall

have the ~r~’utual

right to publish,

distribute,

use

and assign foi~iaseby others all Grant Documents without permission of or

payment to the other

Party.

In the event

that Grantee obtains a patcnt, copyright or otherwise

restricts access

to

any of the~Qrant

Documents, the Department

shall’ have a royalty-free license

to

i~C

~uLO

GN’-it Do~

ii

nerts

lie

Or

mn

~ee~ ‘11

not ouhirsi

or

pul’i

any other nerson

to

publish

any

Giant Documerit’s without

advance notice

to

the Depar~n~nt.

The Grantee

shall

acknowledge

the t)epartme~t’s

participation

in

the

Project in any such publication, or, shall

accede to any

requdst by the”Departmerit that appropriate disclaimer l~inguagebe incorporated

into the publication

‘

-

-

Deliverables

specified to be, produced or performed under this

Agree

men

shall becomc the

property .of

the

Department.

-

-

Gnant~e

shall

comply with

apy Public Information Requirements

set forth

in Part

III.

---

Section

4.10

~I~PORT.

-

Grantee will provide all equipment, supplies, services and other items of support, v;hich are

necessary for the effective

performance of the project’, except for.thoc~items of

sul::pOrt

that

are

specified

iii

this Agreement as

bei-ng provided

by the Department.

-

,,

-

-

-;

.

-

-

-

Section

4.11

DEPARTMENT REMEDIES.

-

-

The Department may elect any-ofthe following remedies in

the

even

‘his Agrèem~ntis

terminated p~irsuant

to

Sectio’n 55

herein.

Grantee shall

comply with

the Department’s

direction

within 45

days following written notice or demand from

the Departn--

mit:

-

(i)

-

The Depar~ment’n-iay

direct the Grantee to’refund ~ii g

~t moneys disbursed to

it

-

Under this

Agreement;

-

-

(dl

The

Deparu-ne-nt

n-lay

direct the Grantee to

remit an ar

.~untec~uivakcit

to

the “Net

Salvage Value! of all equipment or materials l3urclias,: with

grant hinds provided

-

under

thisAgreement.

For purposes of this Agreeme”.: .:Net Salva~,e

Value’

is

-

defined as

the

amount realized, or that the Parties agn

is likely to

-i

e realized

from the sale

ofequipment or materialspurchased-

WI,:

grant funds’ provided

-

-under this Agreement at its current faii’ market value.

‘

:~S

s-elLng

exoenSes,;- or

-

-

(iii)

The De~iartmnentmay

direct the Grantee to

transfer ow

ership ofeqi.i.pment or

-

material

pui’cha’sedwith grant

funds provided under

ti?

Agrcemen,i to

the

-

-

Department or its

designee.

-

.

-

-

-

Section 4.12

GRANT

PROJECT MANAGEMENT

-

-

-

-

-

All necessary and, Ordinary

communications, submittals, approvals, r~c~uests

and nc-tices related

to the Project shall

be submitted to:

-

Angie Adkins-Embre~

-

,

-

-

—

-

Illinois Department of Commerce and Community Affairs

-

-

-

-

Bui-eari,of Energy and- Recycling

-

-

-

620

E.

Adams Street

-

-

-

-

Sprin~field,

IL

62701

-

-

,

-

217/785-2808

-

-

-

Grantee agrees to- give prompt notice to

the Department of any event

~atmay maurially affec~

the perfoimance required undec this Agreemem~t.Any notice or- appr~alrelating

t~Section

5.5

(Termination),

Section

5.7C

(Discretionary Modifications), Section 5.1GA (Waive’s), and

-

Section SlOB (Assignment) must be executed

by the director of the’I.~epartrnen’tor-his/her

authorized designee.

‘

-

---

—

PARTV

-

-

‘

GENERAL PROVISIONS

-

-

1

GRAN tEE

J~UTHcRITY

INDEPENDENCE

OF GRAN

EE PERSONN~,L

.GBANTOR

AUTtEORITY;

GOVERNING

LAW.

-

-.

-

~antee

Authori~.“The Grantee w~antsthat it is the real pa~y

in interest to

this

agreement, that it

is not acting for or on behalf of an undisclosed

part~’,and

that it possesses

~ga1authority

to

apply for this grant

aiid

to

execute the proposed program or project described in

Part

ifi hereof

~rantee’s ex~riition

of this Agreement shall serve

as

its attestation that Grantee

has read, understands

and

agh;es to

all

provisions ofthis

Agreement and to be bound thereby.

Grantee further acknowledges -thã~

the individual executing this Agreerhent

is authorized-

to

do

so

cii Grantee’s behalf

-

-

--..

,

R.

Ind~penrlenceof

Grantee

Personnel,

All technical,

clerical, and

oti”ier personnel

‘e~~sary

~ui

inC

performance i~ciuirecm

h’~

this Agreement shall

ne

em

oyed

by, om contracted

\

ri (‘~rm~ee

ai o snaIl

in

all rcrpect~

he. subject

to

the

rules and regui ~L1ons

of Grantee

rc~~enhhng

its eriuloyees

Neither Gianteenor its personnel shall be cc sidered to be

the agents

or er

pio~eesofthe Departmmnt.-

--

-

-

-

C

~mn~

~uinoritv

Tne Dcpait1,’.

oi

~

its payroll empioye

.~,

when actir~nuisaant to

is

Agreei’ient

re

aut1n~

as State officials

in

their official capacity ar~not personally or as the

~‘eniscfothers.

-

-

0

-

1)

‘

uv~ini

~

J’hi~Grant

i..

a~ia’ded

in

the State of illino±s

rum e~

ecut~on

~\1thmn

the

h~teoi~flhincis,,

Ch~s

Ag~rcenent

shall

be governed

by

and

construed

a~co~ding

to Illinois law as

tnt

~

~ould

be

intern’e

~d

‘cy an Jllu,ots Court

Where there is no I ~rois

law on

a

particular

suu

e~t

or

issue

then

the

appi cable

lay

~i1l

be applied

as

it ~~ould be

interpieted and applied

v

“ii

Illinois

Court

5.2

SCOPE OFWORM.

-

‘

-

li-i

consideration ibr the grant

:unds o

be

provided by,the

Department,

‘he Grantee agrees to

perform

the project

described

in Part

III

hereof and to prepare and subfi~itto

the Department the

reports and

other deliverables described in this

Agreement.

-

f.3

FISCAL RESPONSIBILITIES.

-

-

.-~.

Non An ~j~,priation

Clause, Payments pursuant ‘to this Agreeident ar~

subject to the

availability of

a~-plicahie

Federal

and State ftrnding from

the

Departmeit and their appropriation

a:-id

authorized expenditu~dunder

state law.

Obligations of the State

wIll ceas~ithmediately

without penalty-or liability ord’urther payment being required if in

any’fiscal

yvar’thrtt this

.-~nrreementis in

effect, the Illinois General Assembly or Federal fundii~

source- fails to

ap-propriate or otherwise make available sufficietit

funds for this

grant.

---

The Grantee is hereby given actual knowledge ofthe fact that pursuantt~the State Finance Act,

30

1LCS

105/30~

payments

under this-grant are contingent’ upon the’cxh~enceofa val,id

-

appropriation therefor

and

thatno officer shall contract

any

indebtednesm~on behalf ofthe State,

Or assume

to bind the

State ‘in ari amount

in excess ofthe money appropriated, unless

expressly

authorized

by

law.-

Ifthis

is

a multi-year

granc,

it is void by operation-al law’ if the

Department

fails

to

obtain the requisite appropriation to pay the

grant

in

any

year

iii-

which this Agreement is

in

effect.

-

-

B.

Total

Amc~untof

Grant Limited.

The Grantee expressly und,e-.stands

and

agrees that the

total

financial

obligation of the ‘Department under this Agreement shall.

-,-i-ot exceed

the total

grant

amount

set forth

-on the Notice’o~

Grant Award

and

the Grantee expressly agrees

to fully

complete the Scope ofWork specified in this

Agreement and

all

‘other obligations under this

Agreement within the stated total

consideration.

C’

I~h~er

ilP~inente Payn’ei1itotheG c~rie.~aich~

~nS

kgr r’~’ai~ii~l

~

maUc payable

in the name-ofthe Grantee and sent to

the person and

~i~’~C

specmfied

ha theNotice

of Grant Award.

The

Gi:ant,ee

may change

the person to

whom payme’;~.;

are sCut,

ui.

the place

to

which

payments- are sent

by

written

notice to the Department signed

b’-

the Grantee.

-No

such

-

change orpayment notice shall be binding upon

the

Department until

ì~

(10) business days alter,

actual receipt.

-

-

-i-i

-

5.4

RE-COIThS~RET’ENTION

AND ACCESS‘T~QEFj?~-,

-

-,,

.ROJF..CT

C L~j5.QJ.i.IL;

-

~c~uNT-NJ~I)T

REQUIREMENT_S.

0

-

*.

Records_Retention,. The Grantee

is accountable for ,all,:fun,ds-r’:eived under this

Agreement

and

shall maintain,

for a minim-urn ofthree’ (3)

year-s

fbllo\i,,.ig the

later-Cf the

expiration

or termihation of this Agreement,

adequate books,

records;

~

suppQrtin~documents

to

verify the amount, recipients and uses of all disbursements of funds

‘-assing in cor~jpnctiofl

with this

Agreement

This

Agreement

and

all

books, records and supparting doci~inentsrelated

hereto shall be available for inspection and

audit ‘by theD~panment,

tl~.

Auditor General of the

State ofIllinois, or

any of their duly authorized representatives,’and the Grantee agrees

to

-

cooperate fully

with any audit conducted

by the Auditor General or th:’

)eparlment.

Grantee

agrees to provide full access

to all, relevantmaterials

~nd

to provide cm’,-- es ofsameupon request.

Failure

to maintain books, records and supporting documents requir~f-~

~‘y

this Section

5.4

shall

establish

a presumption

in

favor of the Department for the r~coveryof’riny funds paid by the

- -

Department under this Agreement for which adequate books, rccotds ~,nd

supportmg

-

.

documentation

‘are

not available to support their purported disbjarsemt-.~’

-

If any of the

services to be performed under this Agreement

are

su’bcc’

-macted andiur

if

subgrants are

issued for

the

expenditure of funds provided under this .~.:~reerneflt,

tile Grantee

shall include in all such sübcontracts and subgrants, aprovision that

-t~.’

Department

andthe

Auditor General ofthe State’oflllinois,’or any oft-heir duly authorize~’cepre-SenitatiVeS,

will have

full

access

to and the

ri~httoexamine any pertinent hooks, documentr~hapersand

-records of any

such subcontractor or subgrantee involving transactions

related to thh i~greementfor a period of

three

(3)

years from

the

-later of the expiration or termination of this A~rieement.

-

---

B-.

.

~~n~i~seout.

In addition to atty other

reporting requirerne~tsspecified in this

-

;~reement,

the Grantee shal-l;connp.tcte anu

submit a final’ Grant Ciose~iutReport

01,

forms

-

-

.:ovided by the

Department, ~y,ithintime

hmnits establis.hed by the Dep~rtrn’ent,after the

cxpiration or termination of this Agreenauit.

The Grantee must report:or1 the

expertdiriire of

grant funds provided

by the

S,~ate,and

ii ~tpplicabie,the Grantee’s

reqummed matching funds.

The

Grantee is responsible for taking’ the necessary steps

to correct

any deficiencies disclosed

by such

Grant Closeout Report, incluç~ing

such action as

the Department, based

on its

review of the Grant

Closeout Report. may direct.

-

‘.

-

I’,~iaccordance with the-I1iinoi.~Grant Fund’s Recovery Act, 30

ILCS 7Q~/l,et seq.,

the Grantee

ñ-1ust, within

45

days of the ea,piration or termination of this Agreemer m; refund to tae

-

Department,

any

bala±ice

of fi~nds~

which

is unobligated at the end of the Grant

term

speci~iedin

the

Notice of Grant Award.

For purposes of preparation of grant closeout fomis, the

-

deterfmiination of allowable e~pendituresand excess

grant

funds

shall

he based on the premise

that’

the

total Grintee’c~mpeii;atipnunder this Agreement shall

not exceed the amount specified

h-i

the- N,odc.e of Grant -Award,

-

0

-

-

,~uditRequiremen~s~

h.frequired-by Part II of this Grant Agreement,

the Grantee shall

he required to

have an

audit

cf~nductedin accordance with

the

following terms:

I.

Faderaily

Fui

~led_Grants.

-

-

a.

-

-

~i~pJI~)bie’Federal’Requirernents.

If the Grantee

js required to

have an

audit

condu~tc~i

pursuant to the ~ingie

Audit

Act of i9~’4,,a~

amended in 1996

(LSingie

Audi

‘Apt”) and by the Office of Management-and Budget Circular

I 33’ç

oME~

circular

A-l33~’),then the ‘audit shall be~performed

in

accordance

v.”ith these prc,’is’ions.

-

“.,

-

b~

‘Gr~nt~e

Shall

Furnish

Department with

Copy of Audit.

When the

Grantee

has aThu~itcondLicted pursuant to

the requirements of the Single Audit

~ct

and

0MB

Circular A-133, and

an

audit

repol-t

is

prOduced pursuant to such

-

federal

requiriments,

the’Granaee ~hall provide

the

Dep:-’~rtmentwith a copy of

s:,mch

audit

rep

art,

except in cases where the Grantee is not requited

by theSingie

-

/

udit

~\ct

or

CMB

Circular

A-133

to distribute

a

copy

of such audit report

to

the

P epartment.

--

,-:

-

-

-

c.

-

~

~eTo Send De~tmentCopy of

Au.~.jLR~port

or Reporting

Façj~,aoe

witl

~~ified

Time

Period.

The Grantee

shall send acopy ofthe

audit report, te

data collection

form

and the appropria’tl~

reporting package, as

prOvided for

i

the Single Audit Act

and

0MB

Circulal- A-l33, to

the Department

with-un 30-cia

s’of the Grantee’s receipt ofsuch audit re,~ort,but

in

no

event later

than nine

(9)

uonth~

‘following the

end of the period

fdr which the audit

was

nerfon-ned.

Trie.Grantee shall

send the audit report to the Department at the

fol1ow~ng

address:

-

0

---

Illiiiois Department of Commerce

amid Com-~,t~nity

Affairs

Division ofAudits

-

-

-

620 East Adams Street

0

-

-

Spriiigfield, IL 62701