Section 217.10  Purpose

 

This Part provides regulations for the implementation and operation of a grant program for the purpose of improving safety and security at anhydrous ammonia facilities to prevent anhydrous ammonia theft and inhibit the use of anhydrous ammonia for the purpose of manufacturing methamphetamine while promoting safety for farmers, agribusinesses, farmworkers, neighbors, law enforcement, first responders and members of the public.

 

Section 217.20  Applicability

 

This Part applies to anhydrous ammonia facilities located in Illinois for which a grant application has been filed with the Department for a reimbursable grant to pay a portion of the costs associated with obtaining and implementing approved facility safety and security measures including the utilization of anhydrous ammonia additives, installing tank locking devices, and installation of other security measures to prevent the use of anhydrous ammonia in the illegal manufacture of methamphetamine.

 

Section 217.30  Severability

 

If any provision of this Part or its application to any person or under any other circumstances is adjudged invalid, that adjudication does not affect the validity of this Part as a whole or of any portion not adjudged invalid.

 

Section 217.40  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 Department of Agriculture Law of the Civil Administrative Code of Illinois [20 ILCS 205].  For the purposes of this Part, the terms included in this Section shall have the following meanings:

 

"Act" means Section 205-450 of the Department of Agriculture Law of the Civil Administrative Code [20 ILCS 205/205-450].

 

"Agribusiness" means any sole proprietorship, limited partnership, co-partnership, joint venture, corporation, or cooperative that operates or will operate a facility or agricultural process located within the State of Illinois that is related to the processing of agricultural commodities (including, but not limited to, the products of aquaculture, hydroponics, and silviculture) or the manufacturing, production, or construction of agricultural buildings, structures, equipment, implements, and supplies, or any other facilities or processes used in agricultural production.  "Agribusiness" includes but is not limited to the following:

 

grain handling and processing, including grain storage, drying, treatment, conditioning, milling, and packaging;

 

seed and feed grain development and processing;

 

fruit and vegetable processing, including preparation, canning, and packaging;

 

processing of livestock and livestock products, dairy products, poultry and poultry products, fish or apiarian products, including slaughter, shearing, collecting, preparation, canning, and packaging;

 

fertilizer and agricultural chemical manufacturing, processing, application and supplying;

 

farm machinery, equipment, and implement manufacturing and supplying;

 

manufacturing and supplying of agricultural commodity processing machinery and equipment, including machinery and equipment used in slaughter, treatment, handling, collecting, preparation, canning, or packaging of agricultural commodities;

 

farm building and farm structure manufacturing, construction, and supplying;

 

construction, manufacturing, implementation, supplying, or servicing of irrigation, drainage, and soil and water conservation devices or equipment;

 

fuel processing and development facilities that produce fuel from agricultural commodities or by-products;

 

facilities and equipment for processing and packaging agricultural commodities specifically for export;

 

facilities and equipment for forestry product processing and supplying, including sawmilling operations, wood chip operations, timber harvesting operations, and manufacturing of prefabricated buildings, paper, furniture, or other goods from forestry products; and

 

facilities and equipment for research and development of products, processes, and equipment for the production, processing, preparation, or packaging of agricultural commodities and by-products.

 

"Anhydrous Ammonia Facility" means any sole proprietorship, limited partnership, co-partnership, joint venture, corporation, or cooperative that owns, operates or manages an enterprise located within the State of Illinois that is related to the processing or use of anhydrous ammonia. 

 

"Applicant" means a person submitting an application for program funds appropriated under the Act.

 

"Application" means a written request for program funds containing the required information and attachments.

 

"Department" means the Illinois Department of Agriculture. 

 

"Director" means the Director of the Illinois Department of Agriculture. 

 

"Eligible Project" means a project that is eligible or approved for funding as defined in Sections 217.70 and 217.100 of this Part.

 

"Fiscal Year" means July 1 of one year through June 30 of the following year, the fiscal year of the State of Illinois.

 

"Grant" means an Anhydrous Ammonia Security Grant authorized by the Act and this Part.  The grant will be paid as a reimbursement for expenditures made pursuant to a grant agreement

 

"Grant Agreement" means a written document executed between the grantee and the Department setting forth the terms and conditions of the grant.

 

"Grant Amount" means an amount that will be paid to a grantee as the State's portion of the project costs (see Section 217.100).

 

"Grant Cycle" means the two grant application periods during each fiscal year.

 

"Grantee" means an Illinois person or agribusiness that has been awarded a grant in accordance with the Act and this Part.

 

"Implements of Husbandry" means a farm wagon-type tank vehicle of not over 3000 gallons capacity, used as a nurse tank supplying the anhydrous ammonia to a field applicator, and moved on highways only for transporting anhydrous ammonia from a local source of supply to farms or fields or from one farm or field to another.

 

"Nurse Tank" means a mobile vessel designed and constructed for the storage and handling of anhydrous ammonia for legal purposes and that is refilled from permanent foundation storage tanks.

 

"Person" means, unless limited to an individual by the context in which it is used, a person, corporation, association, trust, partnership, limited partnership, joint venture or cooperative.

 

"Project" means the activity or program of activities described by the applicant in the application and approved by the Department.

 

"Representative" means a person designated by the applicant/grantee who is authorized to sign grant applications, grant agreements, grant reports and other documents of the grantee.

 

"Review Committee" means the committee appointed by the Director to review and evaluate grant applications and make recommendations to the Director for the award of grants.

 

"State" means the State of Illinois. 

 

"Storage Tank" means a large volume, stationary tank used for holding anhydrous ammonia.

 

"Total Project Cost" means all necessary and reasonable costs related to the completion of the project as identified in the budget of the grant agreement.

 

Section 217.50  Application Requirements

 

a)         All communications relating to the application procedures defined in this Subpart shall be sent to the Illinois Department of Agriculture, Division of Agricultural Industry Regulation, Bureau of Agricultural Products Inspection, State Fairgrounds, P. O. Box 19281, Springfield, Illinois 62794-9281.

 

b)         An application shall be typed or computer generated using the approved format provided by the Department.  The application will include identifying information about the applicant, project name and cost estimates, funding request, a description of matching funds and in-kind contributions, and related information.

 

c)         An application shall contain one original and seven copies.

 

d)         An applicant must complete and sign an application before it is submitted to the Department.  The application must include information and documents that the applicant believes will support the grant request.  Is shall also include any other information the Department may request on a case-by-case basis that will enable the application to be evaluated based on the criteria described in Section 217.120 of this Part. 

 

Section 217.60  Application Procedures

 

a)         The Department may require the applicant to submit other information reasonably related to a determination of applicant or project eligibility or project feasibility.

 

b)         The Department may request the applicant or representative to present an oral presentation to the Review Committee of the project.  That presentation must be made by the project applicant.

 

Section 217.70  Eligibility

 

Any person or agribusiness that owns, operates or manages an anhydrous ammonia facility in Illinois that sells and distributes anhydrous ammonia for agricultural purposes in Illinois is eligible to receive a grant.

 

Section 217.75  Pilot Program

 

For at least FY07, the Department will conduct the Anhydrous Ammonia Security Grant as a pilot program in limited geographic area described in Section 217.80.  After that period, the program will be expanded as funding allows.

 

Section 217.80  Fund Availability and Submission Deadlines

 

a)         Upon request, the Department will supply applicants with an application package.

 

b)         Applications for funding under the Act will be made available on a schedule determined by the Department to coincide with two standard anhydrous ammonia application seasons, one in the first quarter and one in the third quarter.  For FY07, a pilot program will be conducted in the following 21 counties:  Adams, Brown, Calhoun, Cass, Christian, Fulton, Greene, Hancock, Henderson, Jersey, Macoupin, Mason, McDonough, Menard, Montgomery, Morgan, Pike, Sangamon, Schuyler, Scott, Warren.

 

c)         If funding allows, the pilot program will be expanded beyond the 21 counties.

 

d)        Public notice of the availability of funding and the application due dates will be published in the State newspaper and on the Department's website.  If an application is received but deemed by the Department to be incomplete, it will be returned to the applicant with a statement of inadequacies.  A corrected and complete application must be received by the announced deadline.  Return of an incomplete application does not change the need to meet the required submission deadline.  Applications received after that deadline will be held for the next renewal cycle.

 

Section 217.90  Computation of Time

 

Computation of any period of time prescribed by this Part shall begin with the first business day following the day on which the act, event or development initiating that period of time occurs, and shall continue until the end of the last day, or the end of the next business day if the last day is a Saturday, Sunday or federal or State holiday.  When the period of time is 5 days or less, Saturday, Sunday and federal or State holidays shall be excluded in the computation of time.  Computation of time shall be determined by the postmark date or the date of hand delivery.

 

Section 217.100  Review of Grant Applications

 

a)         Those applications that are deemed complete by the application submission deadline by the Department will be sent to a Review Committee for the review of the grant applications.

 

b)         The Review Committee shall meet and review and evaluate the applications in accordance with the criteria listed in this Section, as applicable:

 

1)         The project has a reasonable assurance of enhancing the safety and security of anhydrous ammonia tanks and storage facilities in Illinois.

 

2)         The applicant demonstrates a personal commitment by providing a 33% applicant, 67% State contribution to the project. 

 

3)         An adequate and realistic budget has been projected.

 

4)         The application provides a brief history of the anhydrous ammonia facility and description of problems with anhydrous ammonia theft at the facility and previous attempts to stop the theft.

 

5)         Favorable community support for the project, including support from local law enforcement officials, exists.

 

6)         The application meets the eligibility requirements and the project costs are eligible under the Act.

 

7)         The applicant has established a need for the grant.

 

8)         Geographic location of project.  For FY07, the program will be limited to projects located in the counties specified in Section 217.80.  After that period, an expanded geographic area will be served, based on available funding.

 

9)         The proposal demonstrates that the applicant will install or utilize more than one type of safety or security device or measure that will result in providing multiple layers of security for ammonia storage tanks or nurse tanks at the facility.

 

c)         If an applicant has received a grant in previous grant cycles and the Department experienced any problems with the applicant's handling of the grant, the Review Committee may evaluate an application based upon the applicant's previous grant performance in the areas of:

 

1)         Accountability;

 

2)         Timeliness; and

 

3)         Effectiveness.

 

d)         After the Review Committee has completed evaluating each application, the Review Committee will submit its recommendations for awarding the grants to the Director.  The Director will determine whether an eligible applicant is awarded a grant, as outlined in Section 217.110.

 

e)         The Review Committee may also recommend to the Director that conditions be placed on certain grants, as deemed necessary by the Review Committee.

 

Section 217.110  Award of Grants

 

a)         The Director may accept or reject the Review Committee's recommendations.  The Director may impose additional or lesser requirements for the grant as deemed necessary and may change the amount of the grant recommended by the Review Committee.  The Director has final decision-making authority on the awarding of grants.  The Director's decision on the granting of funds is a final decision of the Department subject to the Administrative Review Law [735 ILCS 5/Art. III].

 

b)         If the Review Committee recommends to award a grant less than the amount requested, and the Director concurs, the Department shall confer with the applicant to determine whether a reduction in the grant request will preclude the applicant from performing the project's stated or modified scope of work.  The Director will consider the applicant's response in deciding whether to award a grant for that project.

 

Section 217.120  Grant Agreement

 

a)         When a grant has been awarded, the grantee and the Department shall execute an agreement.  The grant will be subject to the requirements of the Illinois Grant Funds Recovery Act [30 ILCS 705].  The project shall not be initiated and costs shall not be incurred prior to a grant agreement being executed.

 

b)         The agreement shall meet at least the following requirements:

 

1)         Be signed by the Department and the representative of the grantee;

 

2)         Specify that payment will be made on a reimbursable basis, what constitutes permissible expenditures of the grant funds, and the financial controls applicable to the grant;

 

3)         Contain a provision that all funds remaining at the end of the grant agreement or the expiration of the period of time grant funds are available for expenditures or obligation by the grantee shall be returned to the Department within 45 days;

 

4)         Contain a recitation of legal authority pursuant to which the agreement is made;

 

5)         Identify the project scope and schedule and the work or services to be performed or conducted by the grantee;

 

6)         Identify the grant amount;

 

7)         Specify the conditions, timing, and manner in which the Department shall pay the grant amount, subject to annual appropriation by the General Assembly;

 

8)         Include the following irrevocable covenants by the grantee:

 

A)        to pay the grantee's portion of the total project cost (see Section 217.130);

 

B)        not to assign or transfer, during the tenure of the grant agreement, any of the rights, duties or obligations of the grantee, without the written consent of the Department;

 

C)        that the grantee shall expend the grant amount only for the purposes of the project as stated in the grant agreement and approved by the Department;

 

D)        that the grantee shall refrain from entering into any written or oral agreement or understanding with any party that might be construed as an obligation of the State of Illinois or the Department for the payment of any funds under the Act;

 

9)         specify the starting and termination dates of the agreement; and

 

10)         specify the dates for submitting progress reports and other requirements.

 

Section 217.130  Grantee Contribution

 

The grantee must provide 33% of the total project cost. The grantee's contribution shall:

 

a)         be identified as intended expenditures in the grant application;

 

b)         not be funds from other Department or State funded grant programs; and

 

c)         be necessary and irrevocably obligated to the project.

 

Section 217.140  Maintenance of Records and Audit

 

a)         The grantee must keep records of all activities undertaken in connection with implementation of the grant proposal.  The books, records, documents, and accounting procedures and practices of the grantee related to the grant are subject to review by the Department.  The grantee must give the Department designee access during normal business hours to all business records related to the project. 

 

b)         All financial documents, books, receipts, orders, expenditures, electronic data and accounting procedures and practices of the grantee are subject to examination by or for the Department at any time for 3 years following the completion of the grant.

 

c)         The grantee shall not assess any costs of complying with this Section against the Department.

 

Section 217.150  Inspection

 

During the term of a grant, the Department may inspect the operation of the business and any of the grant projects.  The grantee shall not assess any costs generated by this Section against the Department.

 

Section 217.160  Default or Termination of Grant Agreement

 

a)         If the grantee violates any of the terms of the grant agreement, the Department shall send a written notice to the grantee that the grantee is in default.   The grantee will be given the opportunity to correct the violations.  If the grantee has not implemented a corrective action plan within 15 calendar days after receipt of the notification, the Director may do one or more of the following:

 

1)         Cease additional grant payments not yet made to the grantee;

 

2)         Terminate the grant agreement;

 

3)         Institute recovery of the grant funds under the Illinois Grant Funds Recovery Act [30 ILCS 705];

 

4)         Take any other action considered appropriate to protect the Department's interest in the project.

 

b)         A grant may be terminated by the Department under, but termination is not limited to, any of the following circumstances:

 

1)         failure to comply with the terms and conditions of the grant agreement;

 

2)         repeated failure to submit required reports;

 

3)         misapplication of grant funds;

 

4)         failure to provide the equity contribution required by Section 217.130;

 

5)         evidence of fraud and abuse;

 

6)         failure to maintain required records;

 

7)         repeated failure to meet performance timelines or standards; and

 

8)         failure to develop and implement a corrective action plan within 15 calendar days after the Department's notice.

 

c)         The Department may terminate the grant, in whole or in part, when the Department determines that the continuation of the project would not produce beneficial results commensurate with the continued expenditures of funds.

 

d)         The Department may terminate the grant, in whole or in part, if the Illinois General Assembly or federal funding source fails to make an appropriation sufficient to pay the obligation or to allow the Department to operate as required to fulfill its obligations under the grant, funds are not allocated, or the funds needed by the Department are insufficient for any reason.

 

e)         The recipient may refuse or elect not to complete the grant agreement and terminate the grant. The recipient shall notify the Department of any plans to terminate the grant in advance of the termination, but no later than 10 days after the date upon which performance ceases.  The Department shall declare due and payable the total amount of the grant and will cease grant payments for any reimbursement for which the expenditure was made after the date of termination.

 

Section 217.170  Administrative Standards for Grant Recipients

 

a)         The grant shall have a period of completion as stated in the grant agreement.

 

b)         Grant funds must be expended or obligated within the period of the grant agreement and in accordance with the Illinois Grant Funds Recovery Act [30 ILCS 705].

 

c)         Payments to the recipient pursuant to a grant are subject to the initiation of an invoice voucher and receipt of an expenditure summary or documentation of expenses. 

 

d)         If the grant recipient expends funds contrary to the provisions of the grant agreement, that action shall require the repayment of those funds.

 

e)         Grantee must submit a quarterly report, as specified in the grant agreement, on the financial status of the project and provide narrative reports on the activities and achievement results based on the objectives of the project.

 

Section 217.180  Prevailing Wage

 

Grants awarded under this Part may be subject to the Prevailing Wage Act [820 ILCS 130].

 

Section 217.190  Review Committee

 

a)         The Review Committee shall review and evaluate all grant applications based upon the criteria specified in this Part and make recommendations to the Director for the award of grants. 

 

b)         The Review Committee shall consist of the Director, or his or her designee or various employees of the Department selected by the Director. The Director or his or her designee shall be the Chairman of the Committee. 

 

c)         The Review Committee shall not have any oral or written communication with applicants other than that outlined by Section 217.60(b) after the grant has been accepted for review.

 

d)         Department employees will be appointed by the Director to provide staff assistance to the Review Committee.

 

Section 217.200  Conflict of Interest

 

No member of the Review Committee may participate in, or vote on, a decision of the Review Committee relating to an organization or entity in which that individual has a direct financial interest.