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(continued)
Local Enforcement Agencies (LEA) shall meet the following requirements before being authorized to enforce this chapter.
(a) At a minimum, the LEA shall:
(1) meet the certification requirements as described in Article 2.1 of chapter 5 of this division.
(2) have provided field staff with training in compliance with Title 8 CCR, including but not limited to recognition of asbestos, respiratory protection, and selection and use of personal protective equipment. The LEA shall amend their Injury, Illness and Prevention Plan to comply with this requirement.
(3) submit an Enforcement Program Plan (EPP) amendment which addresses those elements modified by this authorization.
(4) have field staff trained in environmental sampling methodology and practice. The training shall include knowledge of sampling technique, field quality assurance/control, sample custody, sample collection and documentation.
(5) provide field staff with equipment necessary to comply with these requirement including but not limited to personal protective equipment and sample collection equipment.
(b) The LEA shall make an application for authorization to the Deputy Director of the Permitting and Enforcement Division of the California Integrated Waste Management Board by cover letter with documentation establishing that the requirements of subsection (a) have been met.
(c) The Board may make a provisional authorization to an LEA that meets the requirements of subsection (a)(1) and (2) of this section. A provisional authorization may authorize the LEA to implement specific provisions of this chapter. The Board may grant full authorization upon complete compliance with the provisions of this section.
(d) In jurisdictions where the Board does not authorize a local program, the Board will be the enforcement agency for ACW.

Note: Authority cited: Sections 43200 and 44820, Public Resources Code. Reference: Title 14, CCR, Division 7, Article 2.1, Chapter 5; and Title 8, CCR section 5192.





s 17900. Introduction.
For the purposes of this Article, both the question and answer in each section have regulatory effect for implementation and enforcement. In addition to the regulations in this Article, statutory provisions contained in Sections 42010 through 42023 of the Public Resources Code govern Recycling Market Development Zones. Sections 17914 and 17914.5 of this Article relate to Recycling Market Development Zone redesignation requests received at any time following conditional or final designation.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42013 and 42014, Public Resources Code.





s 17901. Definitions.
In addition to the definitions contained in Public Resources Code Sections 40100-40201 and 42002, the following definitions apply to the regulations contained in this Article.
(a) "Board" means the California Integrated Waste Management Board.
(b) "Compost" means the product resulting from the controlled biological decomposition of organic wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility. "Compost" includes vegetable, yard, and wood wastes which are not hazardous wastes.
(c) "Designation cycle" means the time it takes to complete all the steps that the Board and applicants take to establish Recycling Market Development Zones. The steps include requesting applications, preparing and submitting applications, evaluation applications, selecting zones, and making final designations as Recycling Market Development Zones.
(d) "Final designation" means an applicant has received written notification from the Board stating it has satisfactorily completed all the requirements for designation as a Recycling Market Development Zone.
(e) "May" means a provision is permissive.
(f) "Must" means a provision is mandatory.
(g) "Proposed Zone" means the geographic area identified in a Recycling Market Development Zone application for designation as a Recycling Market Development Zone.
(h) "Recycling Market Development Zone application" means the written application submitted to the Board, the contents of which are specified in section 17905 of this chapter.
(i) "Recycling Market Development Zone" or "Zone" is a geographic area as defined by Public Resources Code Section 42002(c).
(j) "Redesignation" means Board approval of an application as defined in section 17914, which describes proposed changes to a currently designated Recycling Market Development Zone. The proposed changes may include, but are not limited to, expansion of an existing Zone's boundaries, reduction of a Zone's boundaries, renewal of Zone designation, and change in boundaries of a Zone.
(k) "Zone administrator" means the person selected by the applicant to administer the activities of the Zone and report upon its activities to the Board.
(l) "Expansion" means the addition of a jurisdiction or jurisdictions to an existing Zone's boundaries.
(m) "Reduction" means the deletion of jurisdiction or jurisdictions from an existing Zone's boundaries.
(n) "Change in boundaries of a Zone" means the addition or reduction of land that does not involve the addition or deletion of a jurisdiction or jurisdictions.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 40050, 42002, 42010, 42014, 42019, 42020 and 42022, Public Resources Code.





s 17902. How does a Recycling Market Development Zone designation cycle start?
(a) By March 31 of each year, if and when the Board determines a need for additional zones, it will evaluate the maximum number of new Recycling Market Development Zones to be designated and initiate a new cycle. The Board will identify the statewide recycling market development objectives for the designation cycle. These are described in Section 17909.
(b) Within 120 calendar days of the action taken in (a) above, the Board will mail a notice to all who have made a written request to receive notification, announcing the date when a Recycling Market Development Zone designation cycle will begin. The notice will state the number of the Zones the Board will designate during the designation cycle and will list the statewide recycling market development objectives and their priority of importance.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42013-42014, Public Resources Code.





s 17903. What is the deadline for getting my application to the Board?
You must submit an original and four copies of your application to the Board by 4:00 p.m. on the one hundred twentieth (120) day after the commencement date of a designation cycle.




s 17904. What if the Board receives my application after the deadline?
Your application will not be reviewed. The Board will notify you in writing within a minimum of seven days and a maximum of 30 days of the date it received your application to tell you that your application will not be reviewed because it was late. The median timeframe for notification is 21 days.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Section 42013, Public Resources Code.






s 17905. What do I need to include in my Zone application?
Your Zone application must include all the items listed in (a) through (g), below. When the Board reviews your application, it will consider only the information in your application.
(a) The name(s) and address(es) of the applicant or applicants, and
(b) The name, address, and phone number of the Proposed Zone's administrator, and
(c) The location of the Proposed Zone, as follows:
(1) A narrative description of the Proposed Zone's boundaries and location within the State of California, and
(2) On a street map, clearly identify the streets that mark the boundaries of the Proposed Zone, and
(3) A copy of the existing general zoning and land use maps for the Proposed Zone's area and the area immediately surrounding it. Clearly identify the boundaries of the Zone on this map, and
(d) Letters of support and commitment from all cities, counties, agencies, organizations, financial institutions, and businesses, including all suppliers of recovered materials, which you have identified in the application as having a role in the Proposed Zone, and
(e) A copy of the resolution or ordinance, from each governing body having jurisdiction over any portion of a Proposed Zone, that makes the findings required by Section 42010(b) of the Public Resources Code, and
(f) A detailed recycling market development plan, as described in Section 17907, and
(g) A statement describing how you intend to satisfy the California Environmental Quality Act or demonstration of California Environmental Quality Act compliance.
(h) A statement demonstrating the Zone's commitment to environmental justice and to protecting the environment and public health and safety in a manner that does not unfairly affect any low-income and minority populations.

Note: Authority cited: Sections 40502, 42013 and 71110, Public Resources Code. Reference: Sections 42010(b), 42015 and 71110(a), Public Resources Code.





s 17906. What will the Board consider when reviewing my application?
When the Board reviews you application, it will consider only the information in your application.
(a) First, the Board will review applications to determine that they are complete and meet the eligibility requirements that are described in section 42002(c) of the Public Resources Code. Within 21 calendar days of receiving an application, the Board will send an Initial Review Letter to the applicant, stating that the Board has received their application. The Board's minimum timeframe for completing an Initial Review is seven days. The median timeframe is 14 days. The maximum time frame is 21 days. The Initial Review Letter will specify any deficiencies regarding completeness or eligibility and grant the applicant 14 calendar days from the date on the letter to correct the deficiencies and submit the changes to the Board. The Board must receive the changes by 4:00 p.m. on the 14th day.
(1) Within the 21 day initial review period an applicant can make administrative changes such as changing the name of the contact person, submitting missing pages or correcting calculation or typographical errors. An applicant cannot make changes to the recycling market development plan or change the size of the proposed zone during this time.
(2) If more than one application includes the same area, or portion of an area, the Board will notify the applicants, in writing, within the 21 day Initial Review period. The applicants must resubmit their applications without overlapping areas within 30 calendar days of the date on the notification letter. The Board must receive your modified application by 4:00 p.m. on the 30th day.
(b) The Board will evaluate your application's recycling market development plan and, if it is accepted, will review it against the statewide recycling objectives.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Section 42020, Public Resources Code.





s 17907. What information must be included in my recycling market development plan?
The plan shall include, but is not limited to, the following information:
(a) An analysis of how the Zone will be supplied with the necessary feedstock to support the number and types of businesses planned for development within the Zone.
(b) A marketing plan that describes how the Zone will attract new, and expand existing, businesses.
(c) A description of the funding and organizational structure of the Zone.
(d) A description of the incentives the local governments plan to offer to businesses in the Zone.
(e) A description of the financial support that will be available to businesses in the Zone.
(f) An analysis as to whether the available or planned public works system will be able to support the Zone.
(g) A description of the real property and buildings available in the Zone for market development purposes.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42012, 42014 and 42015, Public Resources Code.





s 17908. What happens if my recycling market development plan is accepted?
The Board will review your plan to see if it demonstrates that it is well-developed enough to succeed. If the Board accepts your plan, it qualifies for evaluation in relation to the statewide recycling market development objectives listed in section 17909 of this Article. The Board will select those plans which best support these objectives.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42015 and 42020, Public Resources Code.





s 17909. What are statewide recycling market development objectives?
Statewide recycling market development objectives focus on State of California recycled materials market development policy and needs and are defined by the Board prior to the commencement of each designation cycle. The relative importance of these objectives may change from one designation cycle to another to reflect the current recycled materials market. The relative importance of each objective will be stated at the beginning of a designation cycle in the Board's notice of commencement of each designation cycle. Statewide objectives include, but are not limited to:
(a) To extend the landfill capacity available to the applicant's jurisdiction and region.
(b) To encourage advance in recycling technology.
(c) To distribute zones to encourage statewide recycling.
(d) To stimulate the development of markets for recycled materials.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42015 and 42019, Public Resources Code.





s 17910. What happens if the Board designates my area as a Zone?
(a) The Board will send you a letter, hereafter referred to as "Notification," within a minimum of 90 and a maximum of 120 calendar days of the application deadline and tell you whether or not you were selected as a Recycling Market Development Zone. The medial timeframe for sending you notification is 110 calendar days. If the Board designates your area as a Zone, the Notification may state that the designation is conditional and specify certain conditions that you must satisfy in order to receive final designation from the Board.
(b) Actions you must complete within 90 calendar days prior to receiving final designation may include, but are not limited to, the following:
(1) You must submit copies of all finalized multi-jurisdictional agreements.
(2) You must demonstrate compliance with the California Environmental Quality Act.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42014 and 42015, Public Resources Code.





s 17911. I have completed all conditions listed in my Notification. When can I get final designation?
(a) After you satisfy all the conditions in your Notification, you must apply in writing for final designation. The Board must receive your request for final designation within 120 calendar days from the date of the Notification. Your request for final designation must document that you meet the conditions that were specified in your Notification. The Board will make its determination within a minimum of 45 calendar days and a maximum of 90 calendar days of receipt of your request for final designation. The median timeframe is 75 calendar days.
(b) If you do not satisfy all the conditions of your Notification within the 120 calendar day time period, you will forfeit your designation status.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Sections 42014 and 42015, Public Resources Code.





s 17912. When does my final designation become effective?
Your final designation becomes effective on the date the Board awards final designation. At that time, you become eligible to receive low-interest loans pursuant to section 42145, Public Resources Code.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Section 42014, Public Resources Code.





s 17913. Do I have to submit regular reports?
Yes. By March 31 of each year, you must submit a report to the Board. At a minimum, the report must include the following:
(a) The names and addresses of the recycling businesses in the Zone, and
(b) The types and amounts of postconsumer or secondary waste materials used as feedstock by recycling businesses in the Zone.
(c) Any marketing efforts undertaken and the outcomes of these efforts.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Section 40507, Public Resources Code.





s 17913.5. Can a Zone Terminate Its Zone Designation?
Yes, a Zone can terminate its Zone designation. A zone that wishes to terminate its Zone designation, must submit the following:
(a) A letter from the Zone Administrator requesting termination of Zone designation.
(b) Copies of resolutions or ordinances from each affected jurisdiction within the zone boundaries requesting termination of Zone designation.
Within 14 calendar days of receiving the above documents, Board staff will review the documents to make sure that the requirements in sections (a) and (b) above have been met. Upon determination that the requirements have been met, a letter will be sent to the Zone Administrator informing that Zone related services by the Board will cease and the Zone designation has been terminated.

Note: Authority cited: Sections 40502 and 42023, Public Resources Code. Reference: Sections 42013 and 42014, Public Resources Code.





s 17914. Can a Zone be redesignated?
Yes, the Board may redesignate a Zone. The Zone Administrator must submit an application to the Board describing proposed changes to the existing Zone plan. Changes to an existing Zone plan may include, but are not limited to: a request for renewal of a current Zone designation; any request for approval of an expansion or reduction or change in boundaries of a Zone. For redesignation applications that seek renewal of a current Zone designation, a completed application must be submitted to the Board at least 60 calendar days prior to the Zone's expiration date. Each application for redesignation must include, but is not limited to, the following:
(a) The name(s) and address(es) of the redesignation applicant or applicants and the Zone Administrator.
(b) A statement of the purpose for submitting the redesignation application, selected from the following categories:
(1) renewal of designation, or
(2) zone expansion, or
(3) reduction or
(4) change in boundaries.
(c) Documents depicting the location of the proposed redesignation area, as follows:
(1) A description of the redesignation area's boundaries and location within the State of California,
(2) A street map identifying the streets that mark the boundaries of the redesignation area on a street map, and
(3) For redesignation categories (1), (2), (3) and (4) listed in section (b) above, copies of the existing general zoning and land use maps for the proposed redesignation area and the area immediately surrounding it. Clear identification of the boundaries of the proposed changes to the Zone should be on the maps;
(d) For redesignation categories (1), and (2), listed in section (b) above, a copy of the Notice of Determination which has been filed with the State Clearinghouse in the Office of Planning and Research as evidence of compliance with the California Environmental Quality Act (Public Resources Code sections 21000 et seq.) as it applies to the proposed changes in the Zone.
(1) Copies of any multi-jurisdictional agreements that pertain to the administration of an existing Zone.
(2) A statement demonstrating the Zone's commitment to environmental justice and to protecting the environment and public health and safety in a manner that does not unfairly affect any low-income and minority populations.
(e) For a redesignation application submitted to obtain renewal of a designation.
(1) A discussion of why redesignation is sought
(2) A copy of the resolution or ordinance from each governing body having jurisdiction over areas included in the Zone boundaries that makes the findings required by Section 42010(b) of the Public Resources Code;
(3) Copies of any multi-jurisdictional agreements that pertain to the administration of the existing Zone.
(4) An updated Market Development Plan that meets the requirements in CCR Section 17907(a)-(g).
(f) For a redesignation application that will result in expansion of a Zone:
(1) A statement of justification concerning why the expansion is necessary, how it will complement the existing Zone, and how this proposed expansion will create additional markets for recyclable materials;
(2) Copies of resolutions from each governing body having jurisdiction over any portion of the current Zone for which redesignation is being requested that supports the proposed expansion;
(3) Copies of resolutions or ordinances from each governing body having jurisdiction over areas not currently included in the Zone boundary that makes the findings required by Section 42010(b) of the Public Resources Code; and
(4) A Supplemental Recycling Market Development Plan which shall include, but is not limited to, the following:
(A) An analysis of how the new area of the Zone will be supplied with the necessary feedstock to support the number and types of businesses planned for development within the Zone.
(B) A marketing plan that describes how the new area of the Zone will attract new businesses, and expand existing businesses.
(C) A description of how the new area of the Zone will be funded and fit into the organizational structure of the current Zone, and an organizational chart of the proposed Zone.
(D) A description of the incentives the local governments plan to offer to businesses in the new area of the Zone.
(E) A description of the financial support that will be available to businesses in the new area of the Zone.
(F) An analysis of the available or planned public works systems that will be available to support the new area of the Zone.
(G) A description of the real property and buildings available in the new area of the Zone for market development purposes.
(5) Letters of commitment and support for the new Zone area, from jurisdiction entities having a role to play in implementing the expanded Zone's Market Development Plan.
(g) For redesignation applications submitted that will result in reduction in the area of a Zone, a description of the proposed change in the Zone boundaries and a copy of the resolution or ordinance from each governing body having jurisdiction over the area of the reduction.
(h) For redesignation applications submitted that will result in change in boundaries of a zone,
(1) A description of the proposed change in the Zone boundaries
(2) Copy of the resolution or ordinance from the jurisdiction having governing authority on the proposed change in boundaries.
(3) A statement describing how you intend to satisfy the California Environmental Quality Act or demonstration of California Environmental Quality Act compliance.
(4) A statement demonstrating the Zone's commitment to environmental justice and to protecting the environment and public health and safety in a manner that does not unfairly affect any low-income and minority populations.

Note: Authority cited: Sections 40502, 42013, 42014 and 71110, Public Resources Code. Reference: Sections 42010, 42012, 42014, 42015, 42016 and 71110(a), Public Resources Code.





s 17914.5. What is the Board's process for reviewing Zone redesignation applications and redesignating Zones?
(a) Upon receipt of your application for redesignation, the Board will review the application to determine that it is complete. Within 21 calendar days of receiving an application for redesignation, the Board will send an Initial Review Letter to the applicant, stating that the Board has received the application.
The minimum time frame for completing the Initial Review is seven calendar days. The median time frame is 14 calendar days. The maximum time frame is 21 calendar days.
The Initial Review Letter will notify each applicant of the date that the application was received, and whether the application is complete or incomplete. If the application is incomplete, the Initial Review Letter will specify any deficiencies regarding completeness or eligibility and grant the applicant 14 calendar days from the date of the letter to correct the deficiencies and submit the changes to the Board.
The Board must receive the noted changes by 4:00 p.m. on the 14th day from the date the letter is sent. Within ten calendar days of receiving the additional information requested by staff in the Initial Review Letter, the Board will notify each applicant whether the application is complete or incomplete.
(1) At any time within the 21 day Initial Review period, and prior to receiving the Board's Initial Review Letter, an applicant can make minor administrative changes such as changing the name of a contact person, submitting missing pages or correcting minor errors.
(b) The Board will conduct a Technical Review of the application, to evaluate the Market Development Plan for its technical adequacy and its ability to succeed. The Technical Review will begin no later than 14 calendar days after the Board's receipt of a complete application for Redesignation. The minimum time frame for completing the Technical Review is seven calendar days. The median time frame is 14 calendar days. The maximum time frame is 21 calendar days.
Following the Technical Review, a letter will be sent to the applicant specifying any technical deficiencies in the application. The applicant shall have 14 calendar days to correct the noted deficiencies and submit changes to the Board. The Board must receive changes by 4:00 p.m. on the 14th day from the date the letter is sent.
(1) Within the 21 day Technical Review period, and prior to receiving the Board's Technical Review Letter, an applicant may correct technical deficiencies as identified in the technical review of the application such as additional analysis regarding targeted feedstock for market development purposes, development of matching local incentives and sources of funding, property and infrastructure availability, inclusion of clearly stated goals and objectives, specific strategy for business attraction and retention efforts, specific strategy for advertising and promotion of the Zone, and administration and funding sources.
(c) Upon receipt of corrections of technical deficiencies identified in the technical review by staff, the Board will either grant or deny the request for redesignation. The redesignation will take effect upon the Board's formal approval.
The Board will send a "Notification" letter to the applicant informing it of its decision, within 14 calendar days of its decision. If an applicant is denied redesignation it may reapply.
(1) If the Board grants conditional redesignation of a Zone, the Notification letter will specify conditions of approval that must be satisfied prior to final redesignation. The applicant will have 120 calendar days from the date of the Notification letter to satisfy the conditions of redesignation.
The Board must receive a written request from the Zone applicant for final redesignation. If conditions of redesignation are not satisfied within the 120 calendar day period, redesignation status will not be approved. The applicant may reapply for redesignation

Note: Authority cited: Sections 40502, 42013 and 42014, Public Resources Code. Reference: Sections 42014, 42015 and 42020, Public Resources Code.





s 17915. Do composting industries qualify for the incentives offered in a Recycling Market Development Zone?
Yes.

Note: Authority cited: Sections 40502 and 42013, Public Resources Code. Reference: Section 42013, Public Resources Code.





s 17916. Resource Recovery Facility (Site).





s 17917. Solid Wastes or Wastes.





s 17918. Solid Waste Management.





s 17919. Transfer Station.





s 17920. Waste Processing Facility (Site).





s 17921. Environmental Impact Report Notice of Completion.





s 17925. Purpose.





s 17926. Filing of Notice of Intent.





s 17927. Facility Location and Information.





s 17928. Land Use Approval.





s 17929. Justification of Need.





s 17930. Purpose of the Recycling Market Development Revolving Loan Program.
The Recycling Market Development Revolving Loan Program (Program) provides an alternative source of financing for recycling-based businesses, non-profit organizations, and public entities to increase the diversion of non-hazardous solid waste from California landfills and to promote market demand for secondary and postconsumer materials. It assists the Board and local agencies comply with Public Resources Code Sections 40051 and 41780, respectively, and helps local Recycling Market Development Zones (RMDZs) meet the market development goals identified in their recycling market development plans, required by Section 17907 of this Chapter, by fostering recycling-based business development within the RMDZs.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Sections 42010 and 42023.1, Public Resources Code.





s 17931. Definitions.
(a) "Applicant" means an entity that is applying for a Loan.
(b) "Application" means the information an Applicant must provide to the Board when seeking a loan.
(c) "Board Loan Committee" or "Loan Committee" means the committee referred to and established in Section 17935.5 of this Chapter.
(d) "Borrower" means an Applicant whose application has been approved and who has executed a Loan Agreement.
(e) "Board" means California Integrated Waste Management Board.
(f) "CEQA" is the California Environmental Quality Act found in Public Resources Code Sections 21000, et seq.
(g) "Capital Improvements" means physical improvements to publicly owned land, including buildings, structures and fixtures or attachments of a permanent or semi-permanent nature, including large equipment, erected on and affixed to the land.
(h) "Designation" means a Zone Applicant has received written notification from the Board stating it has satisfactorily completed all the requirements for designation as a Recycling Market Development Zone.
(i) "Infrastructure" means the basic facilities, such as sewer, water, transportation, and utility systems.
(j) "Loan" means a loan from the Recycling Market Development Revolving Loan Subaccount or the California Tire Recycling Management Fund.
(k) "Loan Agreement" means a written agreement between a Borrower and the Board for a Loan made in accordance with this Article.
(l) "May" means a provision is permissive.
(m) "Must" means a provision is mandatory.
(n) "Onerous Debt" means debt with high interest rates and/or short terms that causes a negative impact on the Borrower's cash flow and jeopardizes the Borrower's ability to convert to or expand its diversion of recycled or secondary material.
(o) "Phase I Assessment" means an assessment to be completed by a specialized engineering or consulting firm that provides a professional opinion, based on obvious evidence, as to the past and potential usage, storage, handling, or disposal of materials within the property that have been or may be toxic or hazardous, or may cause violations of state and/or federal laws, rules, or regulations pertaining to soil and water quality; and to identify past and potential off-site contaminant sources that did have, or may have an adverse environmental impact on the property. The assessment may be performed at the time of loan application or at any time during the life of the loan, as determined necessary by the Board. Hazardous materials and wastes that are to be identified include those meeting the definitions of Public Resources Code Section 40141 and Health and Safety Code Sections 25117 and 25501(k).
(p) "Postconsumer waste material" is defined in Public Resources Code Section 42002(b).
(q) "Project" means the activity for which a loan is requested.
(r) "Recycling Market Development Zone" or "Zone" is a geographic area as defined by Public Resources Code Section 42002(d).
(s) "Reuse" means to take a product, rather than a material, which has served its useful life or is factory defective, and provide some new value to the product, by reconditioning, reprocessing, or some other process which makes the product usable again for its original intended purpose.
(t) "Secondary waste material" is defined in Public Resources Code Section 42002(f).
(u) "Source reduction" is defined in Public Resources Code Section 40196.
(v) "Value added product" means an item which has increased in value or changed its character or composition through a manufacturing or reuse process. Collecting, sorting and/or baling of recycled or recovered materials for convenience or ease of transportation does not constitute adding value.
(w) "Zone administrator" is defined in Section 17901(j) of this Chapter.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Sections 42023.1 and 42023.4, Public Resources Code.





s 17932. Eligible Applicants.
An eligible applicant is one whose project is located within the boundaries of the Recycling Market Development Zone. In the case of mobile operations, the primary business location for the project must be located within the boundaries of the Recycling Market Development Zone. Eligible applicants include:
(a) Businesses and not-for-profit organizations who:
(1) Practice, or propose to practice, appropriate source reduction; or
(2) Use or propose to use postconsumer or secondary waste materials to produce a value added product.
(b) Local governments or agencies who seek to provide infrastructure and/or capital improvements in support of organizations referred to Subsection (a) of this section.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.1, Public Resources Code.





s 17932.1. Tire Recycling Projects.
Loans made with funds from the California Tire Recycling Management Fund may be carried out in accordance with the process and/or eligibility criteria set forth in this Article and Public Resources Code Sections 42872-42875.

Note: Authority cited: Sections 40502 and 42881, Public Resources Code. Reference: Sections 42872, 42873 and 42874, Public Resources Code.





s 17933. Priority Projects.
Priority consideration shall be given to those projects that meet the following criteria:
(a) Demonstrate an ability to repay the loan;
(b) Increase market demand for the secondary or postconsumer waste material used in the project;
(c) Satisfy additional statewide recycling market development objectives as described in Section 17909 of this Chapter; and
(d) Satisfy additional priorities that are determined by the Board.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.1, Public Resources Code.





s 17934. Loan Amounts.
The maximum loan amount is three-fourths (3/4) of the cost of each project, not to exceed two million dollars ($2,000,000).

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4(a)(4), Public Resources Code.





s 17934.1. Uses of Funds.
(a) For eligible businesses and not-for-profit organization applicants, loan funds may be used for:
(1) equipment purchases,
(2) real property purchases,
(3) working capital, or
(4) refinancing of onerous debt.
(b) For eligible local governments or agencies, loan funds shall be used only for publicly owned infrastructure and capital improvements located within the Zone which directly support recycling based business activities that would be eligible for a Loan.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.1, Public Resources Code.





s 17934.3. Fees.
A non-refundable application fee of $300.00 shall accompany each loan application. A loan fee of 3 percent shall be charged upon loan closing. The Board reserves the right to periodically adjust the application and loan origination fees. The application fee and loan fee are considered part of the project cost and may be financed.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.1, Public Resources Code.





s 17934.5. Interest Rate.
(a) The interest rate for loans is determined by the Board and is based on, but may vary from, the Surplus Money Investment Fund (SMIF) rate. The Board, as it deems appropriate, may adjust the interest rate semiannually, after the SMIF rate is announced by the Controller's Office in January and July of each year. The Board shall keep the interest rate as low as possible, consistent with current market conditions and the long-term sustainability of the Recycling Market Development Revolving Loan Program.
(b) The interest rate for loans funded through leveraging programs pursuant to Article 1.2 will be negotiated between the Board, the leveraging entity, and if applicable the lender.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935. Application Process.
(a) Applicants may submit their pre-applications and applications to the Board at any time throughout the year.
(b) Applicants shall not submit applications for approval by the Board unless a Zone has received designation or redesignation status, as defined in Section 17901(d) of this Chapter.
(c) The applicant may submit a pre-application, as determined by the Board, to obtain a rapid evaluation of applicant's or a project's eligibility, prior to submitting a full application.
(d) The Applicant must submit an application with original signatures to the Board.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.1. Application Content.
(a) All Applicants must apply in writing for a loan. The Board may make a loan application form available to assist applicants in applying for a loan. A complete application may consist of a written request containing the following items:
(1) Characteristics of the business shall include the applicant legal name, physical address, mailing address, contact person's name and phone number, copy of business organizational documents, copies of business licenses and permits, business plan, key ownership and management resumes, list of all owners with percentage owned and titles, authorizations to obtain credit reports, a Recycling Market Development Zone Administrator's acknowledgement of the project; payment of a loan application fee, and certification of compliance with applicable laws and regulations to properly conduct and operate the business in California.
(2) Demonstration of ability to repay shall include the business historical and projected financial statements and income tax returns; key management and ownership personal financial statements and income tax returns; schedules of debts; facility lease agreement or copy of deed of trust on the project site; sources and uses of all project costs. The financial projections shall include a list of assumptions under which they were prepared that are reasonable and can be substantiated. The applicant may need to provide a feasibility study and cost break even analysis accounting for the fixed and variable costs to produce a product including the sales price of the product and the quantity of units that must be produced and sold to achieve a break even and profitable cash flow.
(3) Demonstration of the ability to collateralize the loan shall include a detailed list of assets that will secure the loan with documentation supporting the asset value such as appraisals, purchase orders, invoices, cancelled checks, or similar documents; and ownership verification such as deeds of trust, Uniform Commercial Code financing statements, Ownership Certificates. The Board reserves the right to discount the asset value based on age and remaining expected useful life.
(4) The applicant shall provide documentation to substantiate a matching funds requirement of twenty-five percent or more investment into the project. This shall be achieved by providing purchase orders, invoices, cancelled checks, supplemental financing commitment letters or promissory notes, executed investor agreements with evidence of transfer of funds, or other similar documents.
(5) Description of the project to be financed including the feedstock source, type, quantity and availability, the manufacturing process, end product specifications and marketability, current and projected tonnage of materials to be diverted from California landfills, public environmental reports and indemnification to discern the possible risks which may arise from hazardous waste or materials related to the project or previous operations at the site.
Additional information required from businesses and not-for-profit organizations is described in subsection (b) below. Local government or agency applicants must also provide the information requested in subsections (b) and (c) below.
(b) Applicant shall provide any further information or documentation deemed necessary by the Board to determine the creditworthiness of the Applicant, or the Applicant's ability to secure and repay the loan.
(c) Applications from local governments or agencies must contain the following additional information:
(1) A description of the local government's or agency's activities and responsibilities;
(2) The local government's or agency's annual financial operating statements for the previous three years;
(3) A governing board resolution granting authority to make application to the Board for a loan commitment.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.2. Loan Agreement.
Each Loan Agreement shall include, but not be limited to, the following terms and conditions:
(a) The interest rate of the loan as specified in Section 17934.5 of this Article.
(b) The term of the loan shall not exceed 10 years when collateralized by assets other than real estate, or not more than 15 years when partially or wholly collateralized by real estate.
(c) A description of the security and conditions.
(d) Timeframes for complying with the conditions of loan closing and any special conditions that must be satisfied prior to, or covenants which must be complied with after, the disbursement of funds.
(e) Identification of what is considered an event of default, including a provision that, upon failure to comply with the loan agreement, or if any information provided by the Applicant is found to be untrue, any remaining unpaid amount of the loan, with accrued interest, will be immediately due and payable, upon determination by the Board.
(f) A provision that the Borrower agrees to waive any claims against and to indemnify and hold harmless the State of California, including the California Integrated Waste Management Board, from and against any and all claims, costs, and expenses stemming from operation, maintenance, or environmental degradation at the site.
(g) Proof of adequate insurance for the business, naming the Board as loss payee, and when appropriate, naming the Board as additional insured, up to the amount of the loan.
(h) Submission of borrower's and guarantor's financial statements and tax returns, diversion reports, business insurance, and worker's compensation insurance, upon request by the Board.
(i) Any other provision needed to properly analyze and document a loan deemed necessary by the Board.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.3. Process for Preliminary Review.
Upon receipt, Board staff shall review each application to determine whether the Applicant and/or Applicant's project is eligible for a loan, pursuant to Section 17932 of this Article, and whether the application is complete, pursuant to Section 17935.1 of this Article. Within 10 working days of receiving the application, the Board staff shall do one of the following:
(a) Send a letter to the Applicant indicating that the application is incomplete, or that the Applicant and/or Applicant's project is ineligible for a loan, and specifying the steps, if any, which the Applicant may take to correct identified deficiencies; or
(b) Notify the Applicant by letter that the Applicant and/or Applicant's project is eligible for a loan, and that the application is complete and shall be evaluated by the Board staff.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.4. Process for Board Staff Review.
(a) The Board staff shall prepare an analysis of each application. Applications which meet the following criteria shall be recommended for approval to the Loan Committee, on a first come, first served basis:
(1) The Applicant is found creditworthy, and
(2) The collateral and the source of repayment are appropriate for the requested loan amount; and
(3) The Applicant has adequately demonstrated the appropriateness of the loan for use in the project as specified in Section 17935.1 of this Article.
(b) Where additional assistance may be needed from the Loan Committee for a determination, staff may forward those applications and analysis to the Loan Committee without a recommendation.
(c) Where the Applicant does not meet the criteria set forth in subsection (a), the Applicant will be notified in writing of its failure to meet the criteria and the process for appeal of the decision.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.5. Establishment of the Loan Committee.
(a) A Loan Committee is hereby established to assist the Board in meeting the goals of the Program.
(b) The Loan Committee shall be composed of not more than nine individuals appointed by the Board.
(c) The Loan Committee shall be comprised of a balanced cross-section of individuals from the commercial lending community, both public and private sectors, from throughout the state who demonstrate expertise in financial analysis and credit evaluation.
(d) Members of the Loan Committee shall each be appointed to a three-year term, except that the newly added members terms may be adjusted so that a staggered schedule of terms is established where not more than four members terms shall expire during any single calendar year.
(e) Vacancies shall be filled using the same procedures as used for the initial appointments, and shall be filled for the remaining portion of the respective terms.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.55. Process for Loan Committee Review.
(a) The Loan Committee shall meet monthly or as needed.
(b) The Loan Committee shall evaluate the staff analysis of loan requests presented by Board staff pursuant to the Review Process of section 17935.4 of this Article.
(c) The Loan Committee shall recommend applications for approval based only on their financial soundness and their ability to meet the underwriting criteria as described in Section 17935.4(a) of this Article.
(d) The Loan Committee may advise the Board as requested on other aspects of the loan program.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17935.6. Board Approval.
(a) If the Board approves a loan, the Applicant and the Board shall enter into a Loan Agreement pursuant to the terms specified in Section 17935.2 of this Article. Funds shall be disbursed according to the terms of the Loan Agreement.
(b) The Board's loan committee shall be in effect for a period of 90 days following Board approval. The loan commitment may be extended, for cause, for an additional 90 days. Extension of the loan commitment beyond the second 90 day period shall occur only if agreed to by both the Board and the Applicant.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.





s 17936. Auditing of Expenditures of Loan Proceeds.
The Board, or the Department of Finance, may audit the expenditure of the proceeds of any loan made pursuant to this Article.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42024, Public Resources Code.





s 17937. Coordination with the County.





s 17938. Determination of Findings by the Board.





s 17939. Determination of Non-Conformance.





s 17939.1. Purpose of Leveraging the Revolving Loan Fund.
The purpose of leveraging Board funds in the Recycling Market Development Revolving Loan Subaccount (Subaccount) is to increase the funding for loans to recycling-based businesses and to promote the long-term sustainability of the Recycling Market Development Revolving Loan Program. Subaccount funds will be used to stimulate more lending by private banks, public institutions and non-profit organizations than the Board could make on its own to recycling-based businesses.

Note: Authority cited: Section 40502, Public Resources Code. Reference: Sections 42023.1, 42023.6 and 42024, Public Resources Code.





s 17939.2. Definition.
"Leverage" and "leveraging" means the expenditure, lending, investment or other uses of funds from the Recycling Market Development Revolving Loan Program Subaccount (Public Resources Code Section 42023.1) in a manner that generates or facilitates the generation of financial capital that is made available as loans to borrowers eligible for loans under the Board's Recycling Market Development Revolving Loan Program as described in Article 1.1 of this Chapter. Leveraging programs increase the number and value of loans for specified purposes beyond that which the Board, acting alone, could make. Typical examples of leveraging include, without limitation, pooling funds by multiple entities under specified arrangements to create a greater supply of loan capital for eligible borrowers, loan guarantee programs where an entity guarantees all or a portion of an eligible loan, and insurance where an entity assures that a loan will be repaid in a timely manner. (continued)