(1) Municipalities, municipal or other local authorities, nonprofit economic development agencies and similar agencies to conduct environmental assessments of industrial sites located in municipalities which have been designated by the department as distressed communities under the act of July 2, 1984 (P.L. 520, No. 105),¹ known as the Business Infrastructure Development Act.

(2) Cities of the first class, second class, second class A and third class and any borough with a population large enough for the borough to qualify to be chartered as a city under provisions of the act of June 23, 1931 (P.L. 932, No. 317),² known as The Third Class City Code, to conduct environmental assessment and remediation of industrial sites on which industrial activity was conducted prior to the effective date of this act.

(1) The department may make performance-based loans to applicants for projects related to remediation of any of the following:

(2) A loan awarded under this subsection may be forgiven to the extent that performance measures and other requirements are accomplished by the loan recipient in accordance with the loan agreement between the recipient and the department.

(3) For the loans, the department in cooperation with the Department of Environmental Protection shall establish all of the following:

(4) Loans under this subsection shall be included in the annual financing strategy of the department.

(1) Grants under subsection (a) shall be made from the Industrial Sites Environmental Assessment Fund.

(2) Loans under subsection (a.1) shall be made from the Industrial Sites Cleanup Fund. Money collected from repayment of loans under subsection (a.1) shall be deposited in the Industrial Sites Cleanup Fund.