Dry Cleaning Remediation Fund

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Here is the DECD process for the dry cleaning remediation fund, from intake and discussion; through application, legal due diligence, and payment requests; through project audit and contract close out. The State's process is explained in the following 10 phages.

 

Phase 1. Application intake

Phase 2. Verification of tax status

Phase 3. Invitation to apply

Phase 4. Application submission

Phase 5. Review of application

Phase 6. Application decision

Phase 7. Contracting with the State

Phase 8. Grant disbursement

Phase 9. Monitoring and compliance

Phase 10. File close-out

Application - for first-time and returning applicants

  • Phase 1. Application intake: A dry cleaning establishment (tenant) and/or a property owner (landlord) and/or other entity would submit to the CT DECD a completed application intake form. 
  • Phase 2. Verification of tax status: CT DECD would conduct a verification of tax status to determine whether the identified address site is associated with: (a) a past or current CT DRS registration record for a dry cleaning establishment, (b) CT DRS filings of paid dry cleaning taxes, and (c) CT DRS status regarding any outstanding taxes. 
  • Phase 3. Invitation to apply: Upon satisfactory status of the dry cleaning establishment, property owner, and/or other entity, the CT DECD would issue an invitation to apply by sending an "Award Letter" to the approved applicant. The approved applicant should review the terms of the Award Letter, sign and return to the DECD within the specified timeframe. Upon accepting the invitation to apply, the applicant(s) would have 90 days to submit a complete application package.
  • Phase 4: To submit an entire application package:  A complete application package will include, but not be limited to:  
    • CT DECD dry cleaning establishment fund application
    • CT DECD dry cleaning program project financing plan and budget
    • Letter of good standing (status letter) from CT Department of Revenue Services (CT DRS) showing payment of the Dry Cleaning Establishment Surcharge Return (Form OP-374)
    • Letter of good standing (status letter) from CT Department of Labor (CT DOL)
    • Letter of good standing (certificate of legal existence) from CT Secretary of the State (CT SOTS commercial recording division)
    • Letter of good standing (status letter) regarding status of municipal taxes or copy of online tax payments

     

  • Phase 5: Review and processing of the Application: DECD coordinates with the Department of Revenue Services (DRS) status to qualify the application. These clearances are required and done early in the review process. DECD coordinates with DEEP regarding any outstanding non-compliance issues with the site. 
  • Phase 6. Application decision: DECD Project Manager determines the eligible reimbursable documented project costs, calculates how much are over the applicant’s $10,000 co-pay. Approval may be based on (4 sub-bullets)
  • Phase 7. Contracting process with the State: (sub-bullets) Request for Outside Counsel is made to Attorney General’s office by DECD to prepare an Assistance Agreement (“contract”) between the approved applicants and the State of Connecticut acting through DECD. All dry cleaning grant funds are contracted through a standard assistance agreement applicable to all dry cleaning grant fund recipients. The DECD legal fees associated with the contracting would be paid by the State's dry cleaning establishment remediation fund.
    A closing binder may include, but not be limited, to the following documents, as applicable:
    • Closing binder checklist
    • Assistance agreement
    • Applicant financial contribution (minimum $10,000)
    • Certificate of applicant
    • Certified resolution and copy of board minutes approving the application (or for LLCs a statement of consent of members)
    • Commercial affidavit
    • CT DECD Applicant Information (completed DECD application intake form and related correspondence)
    • CT DECD dry cleaning establishment fund application
    • CT DECD dry cleaning program Project financing plan and budget
    • CT DEEP registration form for general permit
    • CT DEEP notice(s) of violation(s)
    • Environmental certificate and indemnity agreement
    • Letter of good standing (status letter) from CT Department of Labor
    • Letter of good standing (status letter) from CT Department of Revenue Services showing payment of the Dry Cleaning Establishment Surcharge Return (Form OP-374)
    • Letter of good standing (certificate of legal existence) from CT Secretary of the State
    • Letter of good standing (status letter) regarding status of municipal taxes or copy of online tax payments
    • Licensed Environmental Professional (LEP) agreement with applicant / certifying party
    • Licensed Environmental Professional (LEP) remedial action plan
    • Licensed Environmental Professional (LEP) cost estimate for the project (itemized statement of costs to assess and/or costs to bring site to closure)
    • Licensed Environmental Professional (LEP) cost estimate for soil vapor extraction
    • Licensed Environmental Professional (LEP) site investigation report
    • Nondiscrimination affidavit
    • Opinion letter from applicant’s legal counsel
    • Phase I environmental site assessment (ESA)
    • Property Transfer Program disclosure of environmental conditions identifying the Certifying Party
    • Transfer of Establishment Form III and Environmental Condition Assessment Form (ECAF) -- Property Transfer Program disclosure of environmental conditions, Statutory reference: Sections 22a-134 through 22a-134e of the Connecticut General Statutes are commonly known as "the property transfer law."

     

  • The Assistance Agreement is executed by the Applicant, the DECD Commissioner, and approved as to form by the Office of the Attorney General (AG) – this final AG date is the official date of the assistance agreement. DECD receives a set of the final approved closing documents, and transmits to the DECD library for the agency master files and State archives. 

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  • Phase 8: Cost reimbursement/Grant disbursement: Electronic payment transaction ***The CT DECD transmits grants electronically.  Approved applicants are required to complete a State Agency Vendor Form, an IRS Form W-9, and such other forms as may be required to set up an account in order to receive State funds electronically.
  • Phase 9: Monitoring and Compliance, and Project Closeout: The applicant will comply with the requirements of the Assistance Agreement, which includes but is not limited to: 
    • The approved applicant shall submit a written update of the project each year and will include the status of eligible activities and the progress of the DECD-approved activities relating to the project.
    • It is a requirement of the program to submit annual project status reports to DECD as an update to the project. The cost of generating such an annual project status report(s) is not a reimbursable expense. ***These reports are required until the grant funds are fully expended.
    • The annual report may be submitted by the licensed environmental professional.
  • Phase 10. File close-out:
    • Applicants must submit an “approval letter” from the Connecticut Department of Energy and Environmental Protection (CT DEEP) or a “verification letter” from the licensed environmental professional (LEP) to close out a contract.
    • The applicant will conduct a project audit specific to the project within 90 days of the project completion. The audit shall be in accordance with the Audit Guide for Audits of DECD Programs, available at https://portal.ct.gov/DECD/Content/About_DECD/Audit-and-Compliance/Manuals-Guides-and-Forms.
    • The grantee is required to retain copies and documentation for 7 years or until the final State audit is conducted, whichever is later.