9827fin1.PDF

ILLINOIS POLLUTION CONTROL BOARD

October 15, 1998

IN THE MATTER OF:

REVIEW OF REMEDIATION COSTS FOR

ENVIRONMENTAL REMEDIATION TAX

CREDIT (AMENDMENTS TO 35 ILL.

ADM. CODE 740)

)

R98-27

(Rulemaking - Land)

Adopted Rule. Final Order.

OPINION AND ORDER OF THE BOARD (by K.M. Hennessey, C.A. Manning, and M.

McFawn):

In 1997, the Illinois General Assembly adopted legislation creating the environmental

remediation tax credit (tax credit). The tax credit allows taxpayers to credit against their

Illinois income tax liability a portion of the costs that the taxpayer has spent to clean up certain

contaminated properties (or “brownfields”). The tax credit is intended to give taxpayers an

incentive to clean up and redevelop brownfields.

A taxpayer who wishes to claim the tax credit must first submit to the Illinois

Environmental Protection Agency (Agency) an application for review of its cleanup (or

“remediation”) costs. The proposal that the Board adopts today establishes the procedures and

standards under which the Agency will consider these applications.

In this final opinion and order, the Board discusses procedural matters; the background

and overview of the proposal; and two substantive changes to the proposed rules necessitated

by legislative developments that occurred after the Board’s opinion and order at second notice.

Readers seeking a detailed discussion of issues that the Board decided at first or second notice

should consult the Board’s opinions and orders at first and second notice. See Review of

Remediation Costs for Environmental Remediation Tax Credit (Amendments to 35 Ill. Adm.

Code 740) (July 8, 1998), R98-27; Environmental Remediation Tax Credit (April 16, 1998),

R98-27.

PROCEDURAL MATTERS

Effective July 21, 1997, the Illinois General Assembly adopted Public Act 90-123. See

Pub. Act 90-123, eff. July 21, 1997. This bill amended two statutes: the Illinois Income Tax

Act (Income Tax Act), 35 ILCS 5/101

et seq.

(1996), which the bill amended by adding

Section 201(l), a provision creating the tax credit; and the Illinois Environmental Protection

Act (Environmental Protection Act), 415 ILCS 5/1

et seq

. (1996), which the bill amended by

adding Section 58.14, a provision regarding the Agency’s review of remediation costs eligible

for the tax credit.

Section 58.14 of the Environmental Protection Act required the Agency to propose

rules for its review of environmental remediation costs within six months after the effective

date of Public Act 90-123. Section 58.14 also required the Board to adopt those rules for

second notice within six months after the Board received the Agency’s proposed rules.

On January 21, 1998, the Agency filed proposed rules, along with a motion for

acceptance, a Statement of Reasons, and an Agency Analysis of Economic and Budgetary

Effects of Proposed Rulemaking. On January 22, 1998, the Board accepted this matter for

hearing.

The Board held three public hearings in this matter: the first, in Chicago, on February

24, 1998; the second, in Springfield, on February 27, 1998; and the third, also in Springfield,

on March 17, 1998. At the February 24 hearing, several witnesses testified: Mr. Gary King,

manager of the Division of Remediation Management in the Agency’s Bureau of Land; Mr.

Lawrence Eastep, manager of the Remedial Project Management Section of the Agency’s

Bureau of Land; Mr. Douglas Oakley, an Agency employee who manages and reviews claims

for Underground Storage Tank remedial costs; and Dr. Shirley Baer, an Agency employee

who works in the Agency’s Voluntary Site Remediation Unit. Dr. Baer also coordinated the

Agency’s efforts on this proposal with the Department of Revenue (DOR) and the Department

of Commerce and Community Affairs (DCCA). Tr.1 at 9-11.

At the February 27 hearing, all of these Agency witnesses again testified, along with

Ms. Melissa Pantier of DCCA. In addition, Ms. Kelsey Lundy, Director of Community

Affairs of the St. Louis Regional Commerce and Growth Association (RCGA), testified about

the proposal. The RCGA represents business and industries in the St. Louis metropolitan area,

including five counties in southwestern Illinois. Tr.2 at 62. Mr. Eric Voyles, a member of

the RCGA, also testified, as did Mr. Eugene Schmittgens, attorney for the RCGA.

The March 17 hearing was held to receive testimony on DCCA’s decision, under

Public Act 90-489, effective January 1, 1998, not to perform an economic impact study on the

Agency’s proposed rules. No one testified at that hearing.

At the first and second hearings, the hearing officer accepted into the record the

following exhibits:

Exhibit 1: Prefiled Testimony of Gary King of the Agency;

Exhibit 2: Illinois Environmental Protection Agency Draft of Revisions to Proposed

Amendments to Part 740 in Response to Questions from Pollution Control Board

Hearing of 2/24/98;

The transcript of the February 24, 1998 hearing is cited as “Tr.1 at __;” the transcript of the

February 27, 1998 hearing is cited as “Tr.2 at __.”

Exhibit 3: Draft of DCCA’s Proposed Amendments to 14 Ill. Adm. Code 520

(Enterprise Zone Program);

Exhibit 4: Agency’s Bureau of Land Inventory Data Input Form for Generator

Identification Number; and

Exhibit 5: Testimony of Kelsey Lundy on behalf of the RCGA.

Following the hearings, the hearing officer established a deadline for interested persons

to file public comments. The Board received the following public comments:

Public Comment #1: Comments of Kelsey Lundy on behalf of the RCGA;

Public Comment #2: Comments of the Agency; and

Public Comment #3: Comments of Kelsey Lundy on behalf of the RCGA.

The Board proposed the rules for first notice on April 16, 1998, and the proposed rules

were published in the

Illinois Register

on May 1, 1998. After publication, the Board received

three additional public comments:

Public Comment #4: Comments of the Agency;

Public Comment #5: Comments of Kelsey Lundy on behalf of the RCGA; and

Public Comment #6: Comments of Senator Frank Watson.

In order to meet the statutory deadline imposed by Section 58.14 of the Environmental

Protection Act, the Board had to proceed to second notice on or before July 21, 1998. The

Board met that requirement with its July 8, 1998 opinion and order at second notice.

After the Board issued its opinion and order at second notice, Governor Jim Edgar

signed two bills that necessitated substantive changes to the proposed rules. The Board

discusses the two bills, Senate Bill (SB) 1291 and SB 1705, in greater detail below in the

“Discussion” portion of this opinion. As the Board noted at second notice, the Board could

not change the rules to address the two bills at that time because the Governor had not signed

the bills. However, the Board noted that it could make appropriate changes to the rules at the

request of the Joint Committee on Administrative Rules (JCAR) if the Governor signed the

bills before the Board’s final adoption of the rules. See Environmental Remediation Tax

Credit (July 8, 1998), R98-27 at 7, 10-11.

For JCAR’s consideration, Board staff proposed rule changes necessitated by these

legislative developments. With these changes and other minor modifications, JCAR

considered the rules at its August 18, 1998 meeting. JCAR issued a certificate of no

objection.

BACKGROUND AND OVERVIEW OF PROPOSAL

Public Act 90-123 established two programs to provide financial incentives for

brownfields remediation. The first program, directed at the public sector, is the Brownfields

Redevelopment Program. Under that program, the Agency issues grants to municipalities to

investigate and assess brownfields sites. The Agency’s proposed rules for that program

appeared in the

Illinois Register

on June 19, 1998.

The second program, directed at the private sector, is the tax credit that is the subject

of this rulemaking. Generally, that program provides taxpayers who remediate brownfields a

tax credit equal to 25% of the taxpayer’s remediation costs over $100,000 per site. Tr.1 at 13-

14. The $100,000 threshold is waived for sites in certain areas. See Pub. Act 90-123, eff.

July 21, 1997 (added 35 ILCS 5/201(l)). The total credit allowed will not exceed $40,000 per

year, with a maximum total of $150,000 per site.

. Taxpayers may carry forward unused

credits for five taxable years.

The tax credit is not available “if the taxpayer or any related party caused or

contributed to, in any material respect, a release of regulated substances on, in, or under” the

site. Pub. Act 90-123, eff. July 21, 1997 (added 35 ILCS 5/201(l)). Furthermore, the tax

credit is available only to taxpayers who remediate sites under the Site Remediation Program

(SRP). The SRP is a voluntary program under which participants may clean up sites where

contaminants are present. It allows participants to use risk-based cleanup objectives that take

into account current and anticipated uses of sites. The SRP also establishes procedures for the

Agency’s review and approval of site cleanup activities. Readers interested in a more

thorough discussion of the SRP should consult the Board’s opinion in Site Remediation

Program and Groundwater Quality (35 Ill. Adm. Code 740 and 35 Ill. Adm. Code 620) (June

5, 1997), R97-11.

Three agencies have roles to play regarding the tax credit. First, DCCA identifies

those areas that are not subject to the $100,000 remediation cost threshold. See Pub. Act 90-

123, eff. July 21, 1997 (added 35 ILCS 5/201(l)); see also Tr.1 at 13-14. Second, the Agency

must determine what costs are considered “remediation costs” and therefore eligible to be

applied to the tax credit. See Pub. Act 90-123, eff. July 21, 1997 (added 415 ILCS 5/58.14).

Finally, DOR will take the information that it receives from DCCA and the Agency and

implement the tax credit. Tr.1 at 14-15; see also Pub. Act 90-123, eff. July 21, 1997 (added

35 ILCS 5/201(l)).

To implement its role regarding the tax credit, the Agency proposes that the Board add

to Part 740 a new Subpart G entitled “Review of Remediation Costs for Environmental

Remediation Tax Credit.” The proposed Subpart G contains seven sections. Section 740.700

(General) generally describes the contents of Subpart G. Section 740.705 (Preliminary Review

of Estimated Remediation Costs) establishes an optional procedure for obtaining a preliminary

review of estimated remediation costs set forth in a budget plan. If actual remediation costs

are equal to or less than those the Agency approved under the preliminary review procedure,

the Agency is not required to further review those costs and may approve the costs as

submitted. If the Agency does further review these costs, the review is limited to confirming

that the Remediation Applicant actually incurred the approved costs to develop and implement

the Remedial Action Plan.

To be eligible for the tax credit, a Remediation Applicant must submit an application

for final review of remediation costs to the Agency and have the Agency approve the

application. Section 740.710 (Application for Final Review of Remediation Costs) sets forth

the information required in the application. Section 740.715 (Agency Review of Application

for Final Review of Remediation Costs) establishes standards and procedures for the Agency’s

review of the application. Section 740.720 (Fees and Manner of Payment) addresses the fees

that a Remediation Applicant must submit with its budget plan and application for final review.

Section 740.725 (Remediation Costs) provides a nonexhaustive list of examples of costs

that the Agency may approve as remediation costs. It also provides that additional costs not

listed may be considered remediation costs in certain circumstances. Section 740.730

(Ineligible Costs) provides a nonexhaustive list of examples of costs that are not considered

remediation costs.

In addition to the new Subpart G, the Agency proposes minor changes to several

existing sections of Part 740: Section 740.100 (Purpose), Section 740.120 (Definitions), and

Section 740.505 (Reviews of Plans and Reports). These changes are necessary to

accommodate Subpart G.

DISCUSSION

The Board makes two substantive changes to the rules it adopted for second notice on

July 8, 1998. The changes are necessary because of two bills (SB 1291 and SB 1705) that the

Governor signed after the Board issued its opinion and order at second notice. The Board

discusses these bills and the resulting rule changes below.

In addition, the Board makes a few minor changes to the rules at JCAR’s request.

These changes are not substantive and do not merit discussion. However, all changes from the

proposed rules at second notice are double-underlined in the order that follows this opinion.

SB 1291

SB 1291 (Pub. Act 90-717, eff. August 7, 1998) amends Section 201(l) of the Income

Tax Act. Before the amendment, costs deducted under, or used for an environmental

remediation credit under, the Internal Revenue Code were ineligible for the Illinois tax credit.

Under the amendment, these federal deductions and credits are now eligible for the Illinois tax

credit. This legislative change required changes in the proposed rules at Sections 740.710 and

740.730.

Section 740.710

To be eligible for the tax credit, a Remediation Applicant must submit an application

for final review of remediation costs (application) to the Agency and have the Agency approve

the application. Tr.1 at 54-55. Section 740.710 sets forth the information required in the

application. At second notice, subsection (a)(4) of this section required certification that none

of the costs included in the application had been or will be deducted under, or taken into

account for an environmental remediation credit under, the Internal Revenue Code. In light of

SB 1291, the Board revises Section 740.710(a)(4) as follows:

A certification, signed by the RA or authorized agent and notarized, as follows:

I, ___________________ [name of RA, if individual, or authorized agent of

RA], hereby certify that:

The site for which this application for an environmental remediation tax credit is

submitted is the same site as the site for which the No Further Remediation

Letter was issued;

All the costs included in this application were incurred at the site and for the

regulated substance(s) or pesticide(s) for which the No Further Remediation

Letter was issued;

The costs submitted were paid by __________________ [“me” if RA is

certifying or name of RA if authorized agent is certifying] and are accurate to

the best of my knowledge and belief;

None of the costs included in this application were incurred before January 1,

1998, or more than 12 months before the enrollment of the site in the Site

Remediation Program, or after the date of issuance of the No Further

Remediation Letter;

None of the costs included in this application have been or will be deducted at

any time under the Internal Revenue Code or taken into account in calculating

an environmental remediation credit granted against a tax imposed under the

provisions of the Internal Revenue Code;

Neither _________________ [“I” if RA is certifying or name of RA if

authorized agent is certifying], nor any related party (as described in Section

201(l) of the Illinois Income Tax Act [35 ILCS 5/201(l)]), nor any person

whose tax attributes ________________ [“I” if RA is certifying or name of RA

if authorized agent is certifying] have [has] succeeded to under Section 381 of

the Internal Revenue Code, caused or contributed in any material respect to the

release or substantial threat of a release of regulated substance(s) or pesticide(s)

for which the No Further Remediation Letter was issued.

Section 740.730

Section 740.730 contains a nonexhaustive list of examples of costs that are not

considered remediation costs. At second notice, subsection (e) of this section listed costs

deducted under, or used for an environmental remediation credit under, the Internal Revenue

Code. The Board deletes that language from the rules to make them consistent with SB 1291.

SB 1705

SB 1705 (Pub. Act 90-792, eff. January 1, 1999) amends Section 201(l) of the Income

Tax Act and Section 58.14(b) of the Environmental Protection Act. The amendment

eliminates one of the geographical requirements for sites to receive more beneficial treatment

under the tax credit program. Before SB 1705, to receive the more beneficial treatment, sites

had to be located in (1) an enterprise zone and (2) a census tract in a minor civil division and

place or county that contains a majority of households consisting of low and moderate income

persons. SB 1705 eliminates the latter requirement. Sites still must be in an enterprise zone to

receive the more beneficial treatment.

The more beneficial treatment under the tax credit program is two-fold. First, a site in

an enterprise zone is not subject to the $100,000 remediation cost threshold. The proposed

rules do not address this threshold, so no rule changes are necessary for this aspect SB 1705.

Second, a site in an enterprise zone that has total remediation costs of $100,000 or less can

have the $500 fee for review of the budget plan waived and the $1,000 fee for final review of

the application reduced to $250. The required fees are addressed in Section 740.720, which

must be changed to incorporate the changes that SB 1705 requires.

Because SB 1705 did not specify an effective date, it is not effective until January 1,

1999. See 5 ILCS 75/1(a) (1996). Accordingly, the Board makes the following changes to

Section 740.720(c):

To obtain the fee waiver under subsection (a)(2) of this Section or the reduced

fee under subsection (b)(2) of this Section:

The total remediation costs for the site must be $100,000 or less; and

The RA must submit written certification in accordance with regulations

of the Department of Commerce and Community Affairs (DCCA) that

the remediation site is located entirely within an enterprise zone as

defined in the Illinois Enterprise Zone Act [20 ILCS 655] and entirely

within one or more census tracts that have been determined by DCCA to

contain a majority of households consisting of low and moderate income

persons. The certification shall be submitted with the budget plan or

application for final review and shall clearly identify the remediation site

by name, address, tax parcel identification number(s) and Illinois

inventory identification number. Effective January 1, 1999, the

requirement of this subsection that the certification provide that the

remediation site is located entirely within one or more census tracts that

have been determined by DCCA to contain a majority of households

consisting of low and moderate income persons shall not apply.

CONCLUSION

The Board finds that the Agency’s proposal, with the Board’s revisions, is

economically reasonable and technically feasible. The Board adopts the revised proposal as a

final rule.

ORDER

The Board adopts as a final rule the following amendments to 35 Ill. Adm. Code 740.

Deletions from second notice are double-underlined and stricken through. Additions from

second notice are double-underlined. The Board directs the Clerk of the Board to file the

following revised proposal with the Secretary of State for publication as a final rule.

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE G: WASTE DISPOSAL

CHAPTER I: POLLUTION CONTROL BOARD

PART 740

SITE REMEDIATION PROGRAM

SUBPART A: GENERAL

Section

740.100

Purpose

740.105

Applicability

740.110

Permit Waiver

740.115

Agency Authority

740.120

Definitions

740.125

Incorporations by Reference

740.130

Severability

SUBPART B: APPLICATIONS AND AGREEMENTS FOR REVIEW AND EVALUATION

SERVICES

Section

740.200

General

740.205

Submittal of Application and Agreement

740.210

Contents of Application and Agreement

740.215

Approval or Denial of Application and Agreement

740.220

Acceptance and Modification of Application and Agreement

740.225

Termination of Agreement by the Remediation Applicant (RA)

740.230

Termination of Agreement by the Agency

740.235

Use of Review and Evaluation Licensed Professional Engineer (RELPE)

SUBPART C: RECORDKEEPING, BILLING AND PAYMENT

Section

740.300

General

740.305

Recordkeeping for Agency Services

740.310

Request for Payment

740.315

Submittal of Payment

740.320

Manner of Payment

SUBPART D: SITE INVESTIGATIONS, DETERMINATION OF REMEDIATION

OBJECTIVES, PREPARATION OF PLANS AND REPORTS

Section

740.400

General

740.405

Conduct of Site Activities and Preparation of Plans and Reports by Licensed

Professional Engineer (LPE)

740.410

Form and Delivery of Plans and Reports, Signatories and Certifications

740.415

Site Investigation -- General

740.420

Comprehensive Site Investigation

740.425

Site Investigation Report -- Comprehensive Site Investigation

740.430

Focused Site Investigation

740.435

Site Investigation Report -- Focused Site Investigation

740.440

Determination of Remediation Objectives

740.445

Remediation Objectives Report

740.450

Remedial Action Plan

740.455

Remedial Action Completion Report

SUBPART E: SUBMITTAL AND REVIEW OF PLANS AND REPORTS

Section

740.500

General

740.505

Reviews of Plans and Reports

740.510

Standards for Review of Site Investigation Reports and Related Activities

740.515

Standards for Review of Remediation Objectives Reports

740.520

Standards for Review of Remedial Action Plans and Related Activities

740.525

Standards for Review of Remedial Action Completion Reports and Related

Activities

740.530

Establishment of Groundwater Management Zones

SUBPART F: NO FURTHER REMEDIATION LETTERS AND

RECORDING REQUIREMENTS

Section

740.600

General

740.605

Issuance of No Further Remediation Letter

740.610

Contents of No Further Remediation Letter

740.615

Payment of Fees

740.620

Duty to Record No Further Remediation Letter

740.625

Voidance of No Further Remediation Letter

SUBPART G: REVIEW OF REMEDIATION COSTS FOR ENVIRONMENTAL

REMEDIATION TAX CREDIT

Section

740.700 General

740.705 Preliminary Review of Estimated Remediation Costs

740.710 Application for Final Review of Remediation Costs

740.715 Agency Review of Application for Final Review of Remediation Costs

740.720 Fees and Manner of Payment

740.725 Remediation Costs

740.730 Ineligible Costs

Appendix A

Target Compound List

Table A

Volatile Organics Analytical Parameters and Required Quantitation

Limits

Table B

Semivolatile Organic Analytical Parameters and Required Quantitation

Limits

Table C

Pesticide and Aroclors Organic Analytical Parameters and Required

Quantitation Limits

Table D

Inorganic Analytical Parameters and Required Quantitation Limits

Appendix B

Review and Evaluation Licensed Professional Engineer Information

AUTHORITY: Implementing Sections 58 through 58.14 and authorized by Sections 58.5,

58.6, 58.7, 58.11 and 58.14 of the Environmental Protection Act [415 ILCS 5/58 through

58.14].

SOURCE: Adopted in R97-11 at 21 Ill. Reg. 7889, effective July 1, 1997; amended in R98-

27 at 22 Ill. Reg. _____________, effective __________________.

NOTE: Capitalization denotes statutory language. In this Part, the abbreviation μg is used to

indicate micrograms.

SUBPART A: GENERAL

Section 740.100

Purpose

The purpose of this Part is to establish THE ESTABLISH PROCEDURES FOR THE

INVESTIGATIVE INVESTIGATION AND REMEDIAL ACTIVITIES REMEDIATION AT

SITES WHERE THERE IS A RELEASE, THREATENED RELEASE, OR SUSPECTED

RELEASE OF HAZARDOUS SUBSTANCES, PESTICIDES, OR PETROLEUM AND FOR

THE REVIEW AND APPROVAL OF THOSE ACTIVITIES. (Section 58.1(a)(1) of the Act)

The purpose of this Part is also to establish procedures to be followed to obtain Illinois

Environmental Protection Agency review and approval of remediation costs before applying

for the environmental remediation tax credit under Section 201(l) of the Illinois Income Tax

Act [35 ILCS 5/201(l)].

(Source: Amended at 22 Ill. Reg. ______, effective ___________)

Section 740.120

Definitions

Except as stated in this Section, or unless a different meaning of a word or term is clear from

the context, the definition of words or terms in this Part shall be the same as that applied to the

same words or terms in the Environmental Protection Act.

“Act” means the Environmental Protection Act [415 ILCS 5].

“Agency” means the Illinois Environmental Protection Agency.

"AGENCY" MEANS THE ILLINOIS ENVIRONMENTAL PROTECTION

AGENCY. (Section 3.01 of the Act)

“Agency travel costs” means costs incurred and documented for travel in

accordance with 80 Ill. Adm. Code 2800 and 3000 by individuals employed by

the Agency. Such costs include costs for lodging, meals, travel, automobile

mileage, vehicle leasing, tolls, taxi fares, parking and miscellaneous items.

“AGRICHEMICAL FACILITY” MEANS A SITE ON WHICH

AGRICULTURAL PESTICIDES ARE STORED OR HANDLED, OR BOTH,

IN PREPARATION FOR END USE, OR DISTRIBUTED. THE TERM

DOES NOT INCLUDE BASIC MANUFACTURING FACILITY SITES.

(Section 58.2 of the Act)

“ASTM” MEANS THE AMERICAN SOCIETY FOR TESTING AND

MATERIALS. (Section 58.2 of the Act)

“Authorized agent” means a person who is authorized by written consent or by

law to act on behalf of an owner, operator, or Remediation Applicant.

“Board” means the Pollution Control Board.

“Contaminant of concern” or "REGULATED SUBSTANCE OF CONCERN"

MEANS ANY CONTAMINANT THAT IS EXPECTED TO BE PRESENT

AT THE SITE BASED UPON PAST AND CURRENT LAND USES AND

ASSOCIATED RELEASES THAT ARE KNOWN TO THE REMEDIATION

APPLICANT BASED UPON REASONABLE INQUIRY. (Section 58.2 of the

Act)

“Costs” means all costs incurred by the Agency in providing services pursuant

to a Review and Evaluation Services Agreement.

“Groundwater management zone” or “GMZ” means a three dimensional region

containing groundwater being managed to mitigate impairment caused by the

release of contaminants of concern at a remediation site.

“Indirect costs” means those costs that incurred by the Agency which cannot be

attributed directly to a specific site but are necessary to support the site-specific

activities, including, but not limited to, such expenses as managerial and

administrative services, building rent and maintenance, utilities, telephone and

office supplies.

“Laboratory costs” means costs for services and materials associated with

identifying, analyzing, and quantifying chemical compounds in samples at a

laboratory.

“LICENSED PROFESSIONAL ENGINEER” orOR “LPE” MEANS A

PERSON, CORPORATION OR PARTNERSHIP LICENSED UNDER THE

LAWS OF THIS STATE TO PRACTICE PROFESSIONAL ENGINEERING.

(Section 58.2 of the Act)

“Other contractual costs” means costs for contractual services not otherwise

specifically identified, including, but not limited to, printing, blueprints,

photography, film processing, computer services and overnight mail.

“PERSON” MEANS INDIVIDUAL, TRUST, FIRM, JOINT STOCK

COMPANY, JOINT VENTURE, CONSORTIUM, COMMERCIAL ENTITY,

CORPORATION (INCLUDING A GOVERNMENT CORPORATION),

PARTNERSHIP, ASSOCIATION, STATE, MUNICIPALITY,

COMMISSION, POLITICAL SUBDIVISION OF A STATE, OR ANY

INTERSTATE BODY, INCLUDING THE UNITED STATES

GOVERNMENT AND EACH DEPARTMENT, AGENCY, AND

INSTRUMENTALITY OF THE UNITED STATES. (Section 58.2 of the Act)

“Personal services costs” means costs relative to the employment of individuals

by the Agency. Such costs include, but are not limited to, hourly wages and

fringe benefits.

“PESTICIDE” MEANS ANY SUBSTANCE OR MIXTURE OF

SUBSTANCES INTENDED FOR PREVENTING, DESTROYING,

REPELLING, OR MITIGATING ANY PEST OR ANY SUBSTANCE OR

MIXTURE OF SUBSTANCES INTENDED FOR USE AS A PLANT

REGULATOR, DEFOLIANT OR DESSICCANT. (Illinois Pesticide Act [415

ILCS 60/4])

“Practical quantitation limit” or “PQL” or “Estimated quantitation limit” means

the lowest concentration that can be reliably measured within specified limits of

precision and accuracy for a specific laboratory analytical method during routine

laboratory operating conditions in accordance with “Test Methods for

Evaluating Solid Wastes, Physical/Chemical Methods,” EPA Publication No.

SW-846, incorporated by reference at Section 740.125 of this Part. For filtered

water samples, PQL also means the Method Detection Limit or Estimated

Detection Limit in accordance with the applicable method revision in:

“Methods for the Determination of Metals in Environmental Samples,” EPA

Publication No. EPA/600/4-91/010; “Methods for the Determination of

Organic Compounds in Drinking Water,” EPA Publication No. EPA/600/4-

88/039; “Methods for the Determination of Organic Compounds in Drinking

Water, Supplement II,” EPA Publication No. EPA/600/R-92/129; or “Methods

for the Determination of Organic Compounds in Drinking Water, Supplement

III,” EPA Publication No. EPA/600/R-95/131, all of which are incorporated by

reference at Section 740.125 of this Part.

“Reasonably obtainable” means that a copy or reasonable facsimile of the

record must be obtainable from a private entity or government agency by

request and upon payment of a processing fee, if any.

“Recognized environmental condition” means the presence or likely presence of

any regulated substance or pesticide under conditions that indicate a release,

threatened release or suspected release of any regulated substance or pesticide

at, on, to or from a remediation site into structures, surface water, sediments,

groundwater, soil, fill or geologic materials. The term shall not include de

minimis conditions that do not present a threat to human health or the

environment.

“REGULATED SUBSTANCE” MEANS ANY HAZARDOUS SUBSTANCE

AS DEFINED UNDER SECTION 101(14) OF THE COMPREHENSIVE

ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY

ACT OF 1980 (P.L. 96-510) AND PETROLEUM PRODUCTS, INCLUDING

CRUDE OIL OR ANY FRACTION THEREOF, NATURAL GAS, NATURAL

GAS LIQUIDS, LIQUEFIED NATURAL GAS, OR SYNTHETIC GAS

USABLE FOR FUEL (OR MIXTURES OF NATURAL GAS AND SUCH

SYNTHETIC GAS). (Section 58.2 of the Act)

“REGULATED SUBSTANCE OF CONCERN” or “contaminant of concern”

MEANS ANY CONTAMINANT THAT IS EXPECTED TO BE PRESENT

AT THE SITE BASED UPON PAST AND CURRENT LAND USES AND

ASSOCIATED RELEASES THAT ARE KNOWN TO THE REMEDIATION

APPLICANT BASED UPON REASONABLE INQUIRY. (Section 58.2 of the

Act)

“RELEASE” MEANS ANY SPILLING, LEAKING, PUMPING, POURING,

EMITTING, EMPTYING, DISCHARGING, INJECTING, ESCAPING,

LEACHING, DUMPING, OR DISPOSING INTO THE ENVIRONMENT,

BUT EXCLUDES (A) ANY RELEASE WHICH RESULTS IN EXPOSURE

TO PERSONS SOLELY WITHIN A WORKPLACE, WITH RESPECT TO A

CLAIM WHICH SUCH PERSONS MAY ASSERT AGAINST THE

EMPLOYER OFOR SUCH PERSONS; (B) EMISSIONS FROM THE

ENGINE EXHAUST OF A MOTOR VEHICLE, ROLLING STOCK,

AIRCRAFT, VESSEL, OR PIPELINE PUMPING STATION ENGINE; (C)

RELEASE OF SOURCE, BYPRODUCT, OR SPECIAL NUCLEAR

MATERIAL FROM A NUCLEAR INCIDENT, AS THOSE TERMS ARE

DEFINED IN THE federalFEDERAL ATOMIC ENERGY ACT OF 1954, IF

SUCH RELEASE IS SUBJECT TO REQUIREMENTS WITH RESPECT TO

FINANCIAL PROTECTION ESTABLISHED BY THE NUCLEAR

REGULATORY COMMISSION UNDER SECTION 170 OF SUCH ACT;

AND (D) THE NORMAL APPLICATION OF FERTILIZER. (Section 3.33 of

the Act)

“REMEDIAL ACTION” MEANS ACTIVITIES ASSOCIATED WITH

COMPLIANCE WITH THE PROVISIONS OF SECTIONS 58.6 AND 58.7 of

the Act, including, but not limited to, the conduct of site investigations,

preparation of work plans and reports, removal or treatment of contaminants,

construction and maintenance of engineered barriers, and/or implementation of

institutional controls. (Section 58.2 of the Act)

“REMEDIATION APPLICANT” orOR “RA” MEANS ANY PERSON

SEEKING TO PERFORM OR PERFORMING INVESTIGATIVE OR

REMEDIAL ACTIVITIES UNDER TitleTITLE XVII of the Act,OF THE ACT

INCLUDING THE OWNER OR OPERATOR OF THE SITE OR PERSONS

AUTHORIZED BY LAW OR CONSENT TO ACT ON BEHALF OF OR IN

LIEU OF THE OWNER OR OPERATOR OF THE SITE. (Section 58.2 of the

Act)

“REMEDIATION COSTS” MEANS REASONABLE COSTS PAID FOR

INVESTIGATING AND REMEDIATING REGULATED SUBSTANCES OF

CONCERN CONSISTENT WITH THE REMEDY SELECTED FOR the SITE.

FOR PURPOSES OF Subpart G of this Part, “REMEDIATION COSTS”

SHALL NOT INCLUDE COSTS INCURRED PRIOR TO JANUARY 1, 1998,

COSTS INCURRED AFTER THE ISSUANCE OF A NO FURTHER

REMEDIATION LETTER UNDER Subpart F of this Part, OR COSTS

INCURRED MORE THAN 12 MONTHS PRIOR TO ACCEPTANCE INTO

THE SITE REMEDIATION PROGRAM under this Part. (Section 58.2 of the

Act)

“Remediation objective” means a goal to be achieved in performing remedial

action, including but not limited to the concentration of a contaminant, an

engineered barrier or engineered control, or an institutional control established

under Section 58.5 of the Act or Section 740.Subpart D of this Part.

“Remediation site” means the single location, place, tract of land, or parcel or

portion of any parcel of property, including contiguous property separated by a

public right-of-way, for which review, evaluation, and approval of any plan or

report has been requested by the Remediation Applicant in its application for

review and evaluation services. This term also includes, but is not limited to,

all buildings and improvements present at that location, place, or tract of land.

“RESIDENTIAL PROPERTY” MEANS ANY REAL PROPERTY THAT IS

USED FOR HABITATION BY INDIVIDUALS, orOR where children have the

opportunity for exposure to contaminants through soil ingestion or inhalation at

educational facilities, health care facilities, child care facilities, or outdoor

recreational areas. (Section 58.2 of the Act)

“Review and Evaluation Licensed Professional Engineer” or “RELPE” means

the licensed professional engineer with whom a Remediation Applicant (RA) has

contracted to perform review and evaluation services under the direction of the

Agency.

“SITE” MEANS ANY SINGLE LOCATION, PLACE, TRACT OF LAND OR

PARCEL OF PROPERTY OR PORTION THEREOF, INCLUDING

CONTIGUOUS PROPERTY SEPARATED BY A PUBLIC RIGHT-OF-WAY.

(Section 58.2 of the Act) This term also includes, but is not limited to, all

buildings and improvements present at that location, place or tract of land.

(Source: Amended at 22 Ill. Reg. ____, effective _____________)

SUBPART E: SUBMITTAL AND REVIEW OF PLANS AND REPORTS

Section 740.505

Reviews of Plans and Reports

ALL REVIEWS carried out under this CARRIED OUT UNDER THIS Part

SHALL BE CARRIED OUT BY THE AGENCY OR A RELPE (Review and

Evaluation Licensed Professional Engineer), BOTH UNDER THE DIRECTION

OF A LICENSED PROFESSIONAL ENGINEER. (Section 58.7(d) of the Act)

PLANS, REPORTS AND relatedRELATED ACTIVITIES WHICH THE

AGENCY OR A RELPE MAY REVIEW INCLUDE, but are not limited to:

SITE INVESTIGATION REPORTS AND RELATED ACTIVITIES;

REMEDIATION OBJECTIVES REPORTS;

REMEDIAL ACTION PLANS AND RELATED ACTIVITIES; AND

REMEDIAL ACTION COMPLETION REPORTS AND RELATED

ACTIVITIES. (Section 58.7(d)(2) of the Act)

ONLY THE AGENCY SHALL HAVE THE AUTHORITY TO APPROVE,

DISAPPROVE, OR APPROVE WITH CONDITIONS A PLAN OR REPORT

AS A RESULT OF THE REVIEW PROCESS, INCLUDING THOSE PLANS

OR REPORTS REVIEWED BY A RELPE. (Section 58.7(d)(3) of the Act)

Except as provided in subsection (d)(5) below and Section 740.705(c) of this

Part, the Agency shall have 60 days from the receipt of any plan or report to

conduct a review and make a final determination to approve or disapprove the

plan or report, or approve the plan or report with conditions. All reviews shall

be based on the standards set forth in this Subpart E.

The Agency's record of the date of receipt of a plan or report shall be

deemed conclusive unless a contrary date is proven by a dated, signed

receipt from the Agency or certified or registered mail.

Submittal of an amended plan or report restarts the time for review.

The RA may waive the time line for review upon a request from the

Agency or at the RA's discretion.

The Agency shall not be required to review any plan or report submitted

out of the sequence for plans and reports set forth in this Part.

If any plans or reports are submitted concurrently, the Agency’s timeline

for review shall increase to a total of 90 days for all plans or reports so

submitted.

Upon completion of the review, the Agency shall notify the RA in writing of its

final determination on the plan or report. The Agency’s notification shall be

made in accordance with Section 740.215(b) of this Part. If the Agency

disapproves a plan or report or approves a plan or report with conditions, the

written notification shall contain the following information, as applicable:

An explanation of the specific type of information or documentation, if

any, that the Agency deems the RA did not provide;

A listing of the Sections of Title XVII of the Act or this Part that may be

violated if the plan or report is approved as submitted;

A statement of the specific reasons why Title XVII of the Act or this

Part may be violated if the plan or report is approved as submitted;

A statement of the reasons for conditions if conditions are required.

The Agency may, to the extent consistent with review deadlines, provide the

RA with a reasonable opportunity to correct deficiencies prior to sending a

disapproval. However, the correction of such deficiencies by the submittal of

additional information may, in the sole discretion of the Agency, restart the

time for review.

If the RA has entered into a contract with a RELPE under Subpart B of this

Part, the Agency shall assign plans and reports submitted by the RA to the

RELPE for initial review.

The RELPE's review shall be conducted in accordance with this Subpart

Upon completion of the review, the RELPE shall recommend to the

Agency approval or disapproval of the plan or report or approval of the

plan or report with conditions.

Unless otherwise approved by the Agency in writing, the RELPE shall

have 30 days to complete the review of a plan or report and forward the

recommendation to the Agency. If any plans or reports have been

submitted concurrently to the Agency, the RELPE shall have a total of

45 days to complete the review of all plans or reports so submitted,

unless otherwise approved by the Agency in writing.

The recommendation of the RELPE shall be in writing, shall include

reasons supporting the RELPE's recommendation, and shall be

accompanied by all documents submitted by the RA and any other

information relied upon by the RELPE in reaching a decision.

IF THE AGENCY DISAPPROVES OR APPROVES WITH CONDITIONS A

PLAN OR REPORT OR FAILS TO ISSUE A FINAL determination

DETERMINATION WITHIN THE applicable review PERIOD AND THE RA

HAS NOT AGREED TO A WAIVER OF THE DEADLINE, THE RA MAY,

WITHIN 35 DAYS after receipt of the final determination or expiration of the

deadline, FILE AN APPEAL withTO THE BOARD. APPEALS TO THE

BOARD SHALL BE IN THE MANNER PROVIDED FOR THE REVIEW OF

PERMIT DECISIONS IN SECTION 40 OF THE ACT. (Section 58.7(d)(5) of

the Act)

(Source: Amended at 22 Ill. Reg. ______, effective _______)

SUBPART G: REVIEW OF REMEDIATION COSTS FOR

ENVIRONMENTAL REMEDIATION TAX CREDIT

Section 740.700

General

This Subpart sets forth the procedures to be followed by an RA to obtain Agency review and

approval of remediation costs before applying for the environmental remediation tax credit

under Section 201(l) of the Illinois Income Tax Act [35 ILCS 5/201(l)]. It contains procedures

for preliminary reviews of estimated remediation costs and final reviews of remediation costs

actually incurred, establishes fees for the Agency’s reviews, provides for appeals of Agency

determinations, and includes examples of remediation costs and ineligible costs.

(Source: Added at 22 Ill. Reg. ____, effective _____________)

Section 740.705

Preliminary Review of Estimated Remediation Costs

The RA for any remediation site enrolled in the Site Remediation Program may

request a preliminary review of estimated remediation costs by submitting a

budget plan along with the Remedial Action Plan required under Section

740.450 of this Part. No budget plan shall be accepted for review by the

Agency unless a Remedial Action Plan satisfying the requirements of Section

740.450 of this Part also has been submitted. The budget plan shall be

submitted on forms prescribed and provided by the Agency and shall include,

but not be limited to, the following information:

Identification of applicant and remediation site:

The full legal name, address and telephone number of the RA,

any authorized agents acting on behalf of the RA, and any contact

persons to whom inquiries and correspondence must be

addressed;

The address, site name, tax parcel identification number(s) and

Illinois inventory identification number for the remediation site

for which the environmental remediation tax credit is being

sought and the date of acceptance of the site into the Site

Remediation Program;

The Federal Employer Identification Number (FEIN) or Social

Security Number (SSN) of the RA.

Line item estimates of the costs that the RA anticipates will be incurred

for the development and implementation of the Remedial Action Plan,

including but not limited to:

Site investigation activities:

Drilling costs;

ii)

Physical soil analysis;

iii)

Monitoring well installation;

iv)

Disposal costs.

Sampling and analysis activities:

Soil analysis costs;

ii)

Groundwater analysis costs;

iii)

Well purging costs;

iv)

Water disposal costs.

Remedial activities:

Groundwater remediation costs;

ii)

Excavation and disposal costs;

iii)

Land farming costs;

iv)

Above-ground bio-remediation costs;

Land application costs;

vi)

Low temperature thermal treatment costs;

vii)

Backfill costs;

viii)

In-situ soil remediation costs.

Report preparation costs.

A certification, signed by the RA or authorized agent and notarized, as

follows:

I, __________________ [name of RA, if individual, or authorized

agent of RA], hereby certify that neither __________________ [“I”

if RA is certifying or name of RA if authorized agent is certifying],

nor any related party (as described in Section 201(l) of the Illinois

Income Tax Act [35 ILCS 5/201(l)]), nor any person whose tax

attributes ________________ [“I” if RA is certifying or name of RA

if authorized agent is certifying] have [has] succeeded to under

Section 381 of the Internal Revenue Code, caused or contributed in

any material respect to the release or substantial threat of a release of

regulated substance(s) or pesticide(s) that are identified and addressed

in the Remedial Action Plan submitted for the site identified above.

The original signature of the RA or authorized agent acting on behalf of

the RA.

The budget plan shall be accompanied by the applicable fee for review as

provided in Section 740.720 of this Subpart. Budget plans shall be mailed or

delivered to the address designated by the Agency on the forms. Requests that

are hand-delivered shall be delivered during the Agency’s normal business

hours.

The time for the Agency to review the budget plan begins on the date that the

Agency receives the budget plan. The Agency’s record of the date of receipt of

the budget plan shall be deemed conclusive unless a contrary date is proven by a

dated, signed receipt from registered or certified mail. The RA may waive the

time for review. The time frames for the Agency review are:

1) If the budget plan is submitted with the Remedial Action Plan, the

submission of the budget plan shall be deemed an automatic 60-day

waiver of the applicable review period for the Remedial Action Plan, as

set forth in Section 740.505(d) of this Part. In this instance, the Agency

shall have 120 days from its receipt of the two documents to make a

final determination on the two documents.

2) If the budget plan is not submitted with the Remedial Action Plan, the

budget plan may not be submitted until after the Agency has made a final

determination on the Remedial Action Plan. If the budget plan is

submitted after the Agency has approved, or approved with conditions,

the Remedial Action Plan, the Agency shall have 60 days from its

receipt of the budget plan to make a final determination on the budget

plan.

3) If an amended Remedial Action Plan or amended budget plan is

submitted before an Agency final determination on the Remedial Action

Plan and budget plan, the Agency shall have 120 days from its receipt of

the amended document to make a final determination on the two

documents.

4) If an amended budget plan is submitted without an amended Remedial

Action Plan and after the Agency’s final determination on the Remedial

Action Plan, the Agency shall have 60 days from its receipt of the

amended budget plan to make a final determination on the amended

budget plan.

The Agency shall review the budget plan and the Remedial Action Plan to

determine, in accordance with Sections 740.725 and 740.730 of this Part,

whether the estimated costs are remediation costs. Upon completion of the

preliminary review, the Agency shall notify the RA in writing of its final

determination to approve, disapprove or modify the estimated remediation costs

submitted in the budget plan.

If a budget plan is disapproved or approved with modification of

estimated remediation costs, the written notification shall contain the

following information as applicable:

An explanation of the specific type of information or

documentation, if any, that the Agency deems the RA did not

provide;

The reasons for the disapproval or modification of estimated

remediation costs;

Citations to statutory or regulatory provisions upon which the

determination is based.

The Agency may combine the notification of its final determination on a

budget plan with the notification of its final determination on the

corresponding Remedial Action Plan.

The Agency’s notification of final determination shall be by certified or

registered mail postmarked with a date stamp and with return receipt

requested. The Agency’s determination shall be deemed to have taken

place on the postmarked date that the notice is mailed.

Revision and Resubmission

If the Agency disapproves a Remedial Action Plan or approves a

Remedial Action Plan with conditions in accordance with Subpart E of

this Part, the Agency may return the corresponding budget plan to the

RA without review. If the Remedial Action Plan is amended as a result

of the Agency action, the RA may submit a revised budget plan for

review. No additional fee shall be required for this review.

If the Remedial Action Plan is amended by the RA and the RA intends to

submit the Agency’s final determination on the budget plan in

accordance with Section 740.715(c) of this Subpart, the budget plan shall

be revised accordingly and resubmitted for Agency review. No

additional fee shall be required for this review.

If the Agency disapproves or modifies the budget plan or fails to issue a final

determination within the applicable review period, the RA may, within 35 days

after receipt of the final determination or expiration of the deadline, file an

appeal with the Board. Appeals to the Board shall be in the manner provided

for the review of permit decisions in Section 40 of the Act.

(Source: Added at 22 Ill. Reg. ____, effective _____________)

Section 740.710

Application for Final Review of Remediation Costs

The RA for any remediation site enrolled in the Site Remediation Program may

submit an application for final review of remediation costs. No application shall

be submitted until a No Further Remediation Letter has been issued and the No

Further Remediation Letter (or an affidavit under Section 740.620(a)(2) of this

Part stating that the No Further Remediation Letter has issued by operation of

law) has been recorded in the chain of title for the site, all in accordance with

Title XVII of the Act and Subpart F of this Part. The application shall be

submitted on forms prescribed and provided by the Agency and shall include,

but not be limited to, the following information:

Identification of applicant and remediation site:

The full legal name, address and telephone number of the RA,

any authorized agents acting on behalf of the RA, and any contact

persons to whom inquiries and correspondence must be

addressed;

The address, site name, tax parcel identification number(s) and

Illinois inventory identification number for the remediation site

for which the environmental remediation tax credit is being

sought and the date of acceptance of the site into the Site

Remediation Program;

The Federal Employer Identification Number (FEIN) or Social

Security Number (SSN) of the RA;

A true and correct copy of the No Further Remediation Letter(s) (or

affidavit(s) under Section 740.620(a)(2) of this Part stating that the No

Further Remediation Letter(s) has issued by operation of law) for the

remediation site as recorded in the chain of title for the site and certified

by the appropriate County Recorder or Registrar of Titles;

Itemization and documentation of remediation activities at the

remediation site for which the environmental remediation tax credit is

sought and for the costs of remediation incurred by the RA at the site,

including invoices, billings and dated, legible receipts along with

canceled checks or other Agency-approved methods of proof of

payment;

A certification, signed by the RA or authorized agent and notarized, as

follows:

I, ___________________ [name of RA, if individual, or authorized

agent of RA], hereby certify that:

The site for which this application for an environmental remediation tax

credit is submitted is the same site as the site for which the No Further

Remediation Letter was issued;

All the costs included in this application were incurred at the site and for

the regulated substance(s) or pesticide(s) for which the No Further

Remediation Letter was issued;

The costs submitted were paid by __________________ [“me” if RA is

certifying or name of RA if authorized agent is certifying] and are

accurate to the best of my knowledge and belief;

None of the costs included in this application were incurred before

January 1, 1998, or more than 12 months before the enrollment of the

site in the Site Remediation Program, or after the date of issuance of the

No Further Remediation Letter;

None of the costs included in this application have been or will be

deducted at any time under the Internal Revenue Code or taken into

account in calculating an environmental remediation credit granted

against a tax imposed under the provisions of the Internal Revenue Code;

Neither _________________ [“I” if RA is certifying or name of RA if

authorized agent is certifying], nor any related party (as described in

Section 201(l) of the Illinois Income Tax Act [35 ILCS 5/201(l)]), nor

any person whose tax attributes ________________ [“I” if RA is

certifying or name of RA if authorized agent is certifying] have [has]

succeeded to under Section 381 of the Internal Revenue Code, caused or

contributed in any material respect to the release or substantial threat of

a release of regulated substance(s) or pesticide(s) for which the No

Further Remediation Letter was issued.

The original signature of the RA or of the authorized agent acting on

behalf of the RA.

The application for final review shall be accompanied by the applicable fee for

review as provided in Section 740.720 of this Subpart. Applications shall be

mailed or delivered to the address designated by the Agency on the forms.

Requests that are hand-delivered shall be delivered during the Agency’s normal

business hours.

The Agency’s acceptance of a certification that neither the RA, nor any related

party (as described in Section 201(l) of the Illinois Income Tax Act [35 ILCS

5/201(l)]), nor any person whose tax attributes the RA has succeeded to under

Section 381 of the Internal Revenue Code, caused or contributed in any material

respect to the release or substantial threat of a release for which the

environmental remediation tax credit is requested shall not bind the Agency or

the State and shall not be used as a defense with regard to any enforcement or

cost recovery actions that may be initiated by the State or any other party.

(Source: Added at 22 Ill. Reg. ____, effective _____________)

Section 740.715

Agency Review of Application for Final Review of Remediation Costs

The Agency shall review the application for final review of remediation costs to

determine, in accordance with Sections 740.725 and 740.730 of this Part,

whether the costs incurred are remediation costs.

The Agency shall have 60 days after the receipt of an application for final

review to make a final determination on the application. The Agency’s record

of the date of receipt of the application shall be deemed conclusive unless a

contrary date is proven by a dated, signed receipt from registered or certified

mail. The RA may waive the time for review. Submittal of an amended

application restarts the time for review.

Further Review by the Agency

If a preliminary review of a budget plan has been obtained under Section

740.705 of this Subpart, the RA may submit, along with the application,

supporting documentation, and the applicable fee under Section 740.720

of this Subart, a copy of the Agency’s final determination on the budget

plan accompanied by a certification, signed by the RA or authorized

agent and notarized, as follows:

I, ________________ [name of RA, if individual, or name of

authorized agent of RA], hereby certify that the actual remediation

costs incurred at the site for line items [list line

items to which certification applies] and identified in the application

for final review of remediation costs are equal to or less than the

costs approved for the corresponding line items in the attached

budget plan determination.

If the budget plan determination and certification are submitted pursuant

to subsection (c)(1) of this Section, the Agency may, but is not required

to, conduct further review of the certified line item costs incurred for

development and implementation of the Remedial Action Plan and may

approve such costs as submitted. The Agency’s further review shall be

limited to confirming that costs approved in the Agency’s budget plan

determination were actually incurred by the RA for development and

implementation of the Remedial Action Plan.

If the certification in subsection (c)(1) of this Section does not apply to

all line items as approved in the budget plan, the Agency shall conduct

its review of the costs for the uncertified line items as if no budget plan

had been approved. In that review, the Agency shall not reconsider the

appropriateness of any activities, materials, labor, equipment, structures

or services already approved by the Agency for the development and

implementation of the Remedial Action Plan.

Upon completion of the final review, the Agency shall notify the RA in writing

of its final determination to approve, disapprove or modify the remediation

costs submitted in the application. If an application is disapproved or approved

with modification of remediation costs, the written notification shall contain the

following information as applicable:

An explanation of the specific type of information or documentation, if

any, that the Agency deems the RA did not provide;

The reasons for the disapproval or modification of remediation costs;

Citations to statutory or regulatory provisions upon which the

determination is based.

The Agency’s notification of final determination shall be by certified or

registered mail postmarked with a date stamp and with return receipt requested.

The Agency’s determination shall be deemed to have taken place on the

postmarked date that the notice is mailed.

If the Agency disapproves or modifies the application for final review or fails to

issue a final determination within the applicable review period, the RA may,

within 35 days after receipt of the final determination or expiration of the

deadline, file an appeal with the Board. Appeals to the Board shall be in the

manner provided for the review of permit decisions in Section 40 of the Act.

(Source: Added at 22 Ill. Reg. ____, effective _____________)

Section 740.720

Fees and Manner of Payment

The fee for the preliminary review of estimated remediation costs conducted

under Section 740.705 of this Subpart shall be as follows:

Except as provided in subsection (a)(2) of this Section, the fee for the

preliminary review shall be $500 for each remediation site reviewed.

There shall be no fee for a preliminary review if the requirements of

subsection (c) of this Section are satisfied.

The fee for the final review of remediation costs under Section 740.715 of this

Subpart shall be as follows:

Except as provided in subsection (b)(2) of this Section, the fee for the

final review shall be $1,000 for each remediation site reviewed.

The fee for the final review shall be $250 if the requirements of