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92nd General Assembly

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Public Act 92-0486

SB75 Enrolled                                  LRB9202721SMdv

    AN ACT concerning the environment.

    Be it  enacted  by  the  People  of  the  State  of  Illinois,
represented in the General Assembly:

    Section 5. The State Finance Act  is  amended  by  adding
Section 5.545 as follows:

    (30 ILCS 105/5.545 new)
    Sec.  5.545.   The  Brownfields  Site Restoration Program
Fund.  Subsections (b) and (c) of Section 5 of  this  Act  do
not apply to this Fund.

    Section  10.  The Environmental Protection Act is amended
by changing Sections 58.3 and 58.13  and  by  adding  Section
58.18 as follows:

    (415 ILCS 5/58.3)
    Sec.  58.3.  Site  Investigation  and Remedial Activities
Program; Brownfields Redevelopment Fund.
    (a)  The General  Assembly  hereby  establishes  by  this
Title  a  Site Investigation and Remedial Activities  Program
for sites subject to  this  Title.   This  program  shall  be
administered  by the Illinois Environmental Protection Agency
under this Title XVII  and  rules  adopted  by  the  Illinois
Pollution Control Board.
    (b)  (1)  The  General Assembly hereby creates within the
    State  Treasury  a  special  fund  to  be  known  as  the
    Brownfields Redevelopment Fund, consisting of 2  programs
    to  be  known as the "Municipal Brownfields Redevelopment
    Grant Program" and the  "Brownfields  Redevelopment  Loan
    Program",  which  shall  be  used and administered by the
    Agency as provided in Sections 58.13 and  58.15  of  this
    Act  and  the  rules  adopted  under those Sections.  The
    Brownfields Redevelopment  Fund  ("Fund")  shall  contain
    moneys   transferred   from   the   Response  Contractors
    Indemnification Fund and other moneys made available  for
    deposit into the Fund.
         (2)  The  State  Treasurer, ex officio, shall be the
    custodian of the Fund, and the Comptroller  shall  direct
    payments  from  the Fund upon vouchers properly certified
    by the Agency.  The Treasurer shall credit  to  the  Fund
    interest  earned  on  moneys  contained in the Fund.  The
    Agency shall have the authority to accept,  receive,  and
    administer  on  behalf  of  the  State any grants, gifts,
    loans, reimbursements or payments for services, or  other
    moneys  made  available  to the State from any source for
    purposes of the Fund.  Those moneys  shall  be  deposited
    into   the   Fund,   unless  otherwise  required  by  the
    Environmental Protection Act or by federal law.
         (3)  Pursuant to appropriation, all  moneys  in  the
    Fund  shall  be  used  by the Agency for the purposes set
    forth in subdivision (b)(4) of this Section and  Sections
    58.13  and  58.15  of  this Act and to cover the Agency's
    costs of program  development  and  administration  under
    those Sections.
         (4)  The  Agency  shall have the power to enter into
    intergovernmental agreements with the federal  government
    or   the  State,  or  any  instrumentality  thereof,  for
    purposes of capitalizing  the  Brownfields  Redevelopment
    Fund.  Moneys on deposit in the Brownfields Redevelopment
    Fund  may  be  used  for the creation of reserve funds or
    pledged funds that secure the obligations of repayment of
    loans made pursuant to Section 58.15 of  this  Act.   For
    the  purpose  of  obtaining  capital for deposit into the
    Brownfields Redevelopment Fund, the Agency may also enter
    into agreements with  financial  institutions  and  other
    persons for the purpose of selling loans and developing a
    secondary  market  for such loans.  The Agency shall have
    the power to create and establish such reserve funds  and
    accounts  as  may be necessary or desirable to accomplish
    its purposes under this subsection and  to  allocate  its
    available   moneys   into   such   funds   and  accounts.
    Investment earnings on moneys  held  in  the  Brownfields
    Redevelopment Fund, including any reserve fund or pledged
    fund,   shall   be   deposited   into   the   Brownfields
    Redevelopment Fund.
(Source: P.A. 90-123, eff. 7-21-97; 91-36, eff. 6-15-99.)

    (415 ILCS 5/58.13)
    Sec.  58.13.  Municipal  Brownfields  Redevelopment Grant
Program.
         (a)(1)  The Agency shall establish and administer  a
    program   of   grants   to  be  known  as  the  Municipal
    Brownfields  Redevelopment  Grant  Program   to   provide
    municipalities  in  Illinois with financial assistance to
    be  used  for  coordination  of  activities  related   to
    brownfields  redevelopment,  including but not limited to
    identification of brownfields sites,  site  investigation
    and  determination  of remediation objectives and related
    plans and reports, and  development  of  remedial  action
    plans,  but  not including the implementation of remedial
    action plans and remedial action completion reports.  The
    plans  and  reports shall be developed in accordance with
    Title XVII of this Act.
         (2)  Grants shall be awarded on a competitive  basis
    subject   to   availability  of  funding.   Criteria  for
    awarding grants shall include, but shall not  be  limited
    to the following:
              (A)  problem statement and needs assessment;
              (B)  community-based planning and involvement;
              (C)  implementation planning; and
              (D)  long-term benefits and sustainability.
         (3)  The   Agency  may  give  weight  to  geographic
    location to enhance  geographic  distribution  of  grants
    across this State.
         (4)  Grants   shall  be  limited  to  a  maximum  of
    $240,000 $120,000 and no municipality shall receive  more
    than one grant under this Section.
         (5)  Grant  amounts  shall  not  exceed  70%  of the
    project amount, with the remainder to be provided by  the
    municipality as local matching funds.
    (b)  The  Agency  shall  have the authority to enter into
any contracts or agreements that may be  necessary  to  carry
out  its  duties or responsibilities under this Section.  The
Agency shall have the authority to adopt rules setting  forth
procedures  and  criteria  for  administering  the  Municipal
Brownfields  Redevelopment  Grant Program.  The rules adopted
by the Agency may include but shall not  be  limited  to  the
following:
         (1)  purposes for which grants are available;
         (2)  application     periods    and    content    of
    applications;
         (3)  procedures and criteria for  Agency  review  of
    grant  applications,  grant  approvals  and  denials, and
    grantee acceptance;
         (4)  grant payment schedules;
         (5)  grantee responsibilities  for  work  schedules,
    work plans, reports, and record keeping;
         (6)  evaluation  of  grantee  performance, including
    but not limited to  auditing  and  access  to  sites  and
    records;
         (7)  requirements   applicable  to  contracting  and
    subcontracting by the grantee;
         (8)  penalties   for   noncompliance   with    grant
    requirements  and conditions, including stop-work orders,
    termination of grants, and recovery of grant funds;
         (9)  indemnification of this State and the Agency by
    the grantee; and
         (10)  manner of compliance with the Local Government
    Professional Services Selection Act.
(Source: P.A. 90-123, eff. 7-21-97.)

    (415 ILCS 5/58.18 new)
    Sec. 58.18.  Brownfields Site Restoration Program.
         (a) (1)  The Agency,  with  the  assistance  of  the
    Department   of  Commerce  and  Community  Affairs,  must
    establish and administer a program  for  the  payment  of
    remediation  costs  to  be  known as the Brownfields Site
    Restoration   Program.    The    Agency,    subject    to
    appropriation,   through   the   Program,  shall  provide
    Remediation Applicants with financial assistance for  the
    investigation    and    remediation   of   abandoned   or
    underutilized   properties.    The   investigation    and
    remediation  shall  be  performed in accordance with this
    Title XVII of this Act.
         (2)  For each State fiscal year in which  funds  are
    made  available  to  the  Agency  for  payment under this
    Section, the Agency must allocate 20% of the funds to  be
    available  to  counties  with populations over 2,000,000.
    The remaining funds must be made available to  all  other
    counties in the State.
         (3)  The  Agency  must not approve payment in excess
    of $750,000 to a Remediation  Applicant  for  remediation
    costs incurred at a remediation site. Eligibility must be
    determined  based  on a minimum capital investment in the
    redevelopment of the site, and payment amounts  must  not
    exceed  the  net  economic  benefit  to  the State of the
    remediation project.  In addition to  these  limitations,
    the  total  payment  to  be made to an applicant must not
    exceed an amount equal to 20% of the  capital  investment
    at the site.
         (4)  Only  those remediation projects for which a No
    Further Remediation Letter is issued by the Agency  after
    December  31,  2001  are  eligible  to participate in the
    Brownfields Site Restoration Program.  The  program  does
    not  apply  to  any sites that have received a No Further
    Remediation Letter prior to  December  31,  2001  or  for
    costs  incurred  prior  to the Department of Commerce and
    Community Affairs  approving  a  site  eligible  for  the
    Brownfields Site Restoration Program.
    (b)  Prior  to  applying  to  the  Agency  for payment, a
Remediation Applicant must first submit to the Department  of
Commerce  and  Community Affairs an application for review of
eligibility.  The  Department  must  review  the  eligibility
application to determine whether the Remediation Applicant is
eligible  for  the payment.  The application must be on forms
prescribed and provided by the  Department  of  Commerce  and
Community  Affairs.   At  a  minimum,  the  application  must
include the following:
         (1)  Information    identifying    the   Remediation
    Applicant and the site for which  the  payment  is  being
    sought   and   the  date  of  acceptance  into  the  Site
    Remediation Program.
         (2)  Information demonstrating  that  the  site  for
    which  the  payment  is  being  sought  is  abandoned  or
    underutilized  property.  "Abandoned property" means real
    property previously used for, or that has  the  potential
    to  be  used  for, commercial or industrial purposes that
    reverted to the ownership  of  the  State,  a  county  or
    municipal  government,  or  an  agency  thereof,  through
    donation,   purchase,   tax   delinquency,   foreclosure,
    default,  or  settlement, including conveyance by deed in
    lieu of foreclosure; or privately owned property that has
    been vacant for a period of not less than  3  years  from
    the  time  an  application  is  made to the Department of
    Commerce and Community Affairs. "Underutilized  property"
    means  real  property  of  which  less  than  35%  of the
    commercially   usable   space   of   the   property   and
    improvements thereon are used for their most commercially
    profitable and economically productive uses.
         (3)  Information demonstrating that  remediation  of
    the  site  for  which  the  payment  is being sought will
    result  in  a  net  economic  benefit  to  the  State  of
    Illinois.   The "net economic benefit" must be determined
    based on factors  including,  but  not  limited  to,  the
    capital  investment,  the  number  of  jobs  created, the
    number of jobs retained if it is  demonstrated  the  jobs
    would otherwise be lost, capital improvements, the number
    of  construction-related  jobs, increased sales, material
    purchases, other increases  in  service  and  operational
    expenditures,   and  other  factors  established  by  the
    Department of Commerce and Community Affairs.    Priority
    must  be given to sites located in areas with high levels
    of poverty, where the unemployment rate exceeds the State
    average, where an enterprise zone exists,  or  where  the
    area is otherwise economically depressed as determined by
    the Department of Commerce and Community Affairs.
         (4)  An  application  fee in the amount set forth in
    subsection (c) for each  site  for  which  review  of  an
    application is being sought.
    (c)  The  fee  for  eligibility  reviews conducted by the
Department of  Commerce  and  Community  Affairs  under  this
Section  is  $1,000  for each site reviewed.  The application
fee must be made payable to the State of Illinois for deposit
into the Brownfields Site Restoration Program Fund.
    (d)  Within 60 days after receipt by  the  Department  of
Commerce  and Community Affairs of an application meeting the
requirements of subsection (b), the  Department  of  Commerce
and  Community  Affairs  must issue a letter to the applicant
approving  or   disapproving   the   application.    If   the
application  is  approved,  the  Department  of  Commerce and
Community Affairs' letter must also include its determination
of the "net economic benefit" of the remediation project  and
the maximum amount of the payment to be made available to the
applicant  for  remediation costs.  The payment by the Agency
under this Section must not exceed the "net economic benefit"
of the remediation project, as determined by  the  Department
of Commerce and Community Affairs.
    (e)  An  application  for  a  review of remediation costs
must not be submitted to the Agency unless the Department  of
Commerce and Community Affairs has determined the Remediation
Applicant   is   eligible   under  subsection  (d).   If  the
Department of Commerce and Community Affairs  has  determined
that  a  Remediation  Applicant  is eligible under subsection
(d), the Remediation Applicant may submit an application  for
payment to the Agency under this Section.  Except as provided
in  subsection  (f), an application for review of remediation
costs must not be submitted until a  No  Further  Remediation
Letter  has  been  issued  by  the Agency and recorded in the
chain of title for the site in accordance with Section 58.10.
The Agency must review the application to  determine  whether
the  costs  submitted  are  remediation costs and whether the
costs incurred are reasonable.  The application  must  be  on
forms  prescribed  and provided by the Agency.  At a minimum,
the application must include the following:
         (1)  Information   identifying    the    Remediation
    Applicant  and  the  site  for which the payment is being
    sought and the date of acceptance of the  site  into  the
    Site Remediation Program.
         (2)  A  copy  of  the  No Further Remediation Letter
    with official  verification  that  the  letter  has  been
    recorded  in  the  chain  of  title  for  the  site and a
    demonstration that the site for which the application  is
    submitted  is  the  same site as the one for which the No
    Further Remediation Letter is issued.
         (3)  A  demonstration  that  the  release   of   the
    regulated  substances of concern for which the No Further
    Remediation  Letter  was  issued  was   not   caused   or
    contributed to in any material respect by the Remediation
    Applicant.   The  Agency  must  make determinations as to
    reimbursement availability consistent with rules  adopted
    by the Pollution Control Board for the administration and
    enforcement of Section 58.9 of this Act.
         (4)  A  copy  of  the  Department  of  Commerce  and
    Community    Affairs'   letter   approving   eligibility,
    including the net economic  benefit  of  the  remediation
    project.
         (5)  An  itemization  and  documentation,  including
    receipts, of the remediation costs incurred.
         (6)  A  demonstration  that  the  costs incurred are
    remediation costs  as  defined  in  this  Act  and  rules
    adopted under this Act.
         (7)  A  demonstration  that  the costs submitted for
    review were incurred by  the  Remediation  Applicant  who
    received the No Further Remediation Letter.
         (8)  An  application  fee in the amount set forth in
    subsection  (j)  for  each  site  for  which  review   of
    remediation costs is requested.
         (9)  Any other information deemed appropriate by the
    Agency.
    (f)  An  application  for review of remediation costs may
be submitted to the Agency prior to  the  issuance  of  a  No
Further  Remediation Letter if the Remediation  Applicant has
a Remedial Action Plan approved by the Agency under the terms
of which the Remediation Applicant will remediate groundwater
for  more  than  one  year.   The  Agency  must  review   the
application  to  determine  whether  the  costs submitted are
remediation  costs  and  whether  the  costs   incurred   are
reasonable.   The application must be on forms prescribed and
provided by the Agency.  At a minimum, the  application  must
include the following:
         (1)  Information    identifying    the   Remediation
    Applicant and the site for which  the  payment  is  being
    sought  and  the  date of acceptance of the site into the
    Site Remediation Program.
         (2)  A copy  of  the  Agency  letter  approving  the
    Remedial Action Plan.
         (3)  A   demonstration   that  the  release  of  the
    regulated substances of concern for  which  the  Remedial
    Action Plan was approved was not caused or contributed to
    in  any  material  respect  by the Remediation Applicant.
    The Agency must make determinations as  to  reimbursement
    availability   consistent   with  rules  adopted  by  the
    Pollution  Control  Board  for  the  administration   and
    enforcement of Section 58.9 of this Act.
         (4)  A  copy  of  the  Department  of  Commerce  and
    Community    Affairs'   letter   approving   eligibility,
    including the net economic  benefit  of  the  remediation
    project.
         (5)  An  itemization  and  documentation,  including
    receipts, of the remediation costs incurred.
         (6)  A  demonstration  that  the  costs incurred are
    remediation costs  as  defined  in  this  Act  and  rules
    adopted under this Act.
         (7)  A  demonstration  that  the costs submitted for
    review were incurred by  the  Remediation  Applicant  who
    received approval of the Remediation Action Plan.
         (8)  An  application  fee in the amount set forth in
    subsection  (j)  for  each  site  for  which  review   of
    remediation costs is requested.
         (9)  Any other information deemed appropriate by the
    Agency.
    (g)  For  a Remediation Applicant seeking a payment under
subsection  (f),  until  the  Agency  issues  a  No   Further
Remediation  Letter  for  the  site,  no more than 75% of the
allowed payment may be claimed by the Remediation  Applicant.
The  remaining  25%  may be claimed following the issuance by
the Agency of a No Further Remediation Letter for  the  site.
For   a   Remediation   Applicant  seeking  a  payment  under
subsection  (e),  until  the  Agency  issues  a  No   Further
Remediation Letter for the site, no payment may be claimed by
the Remediation Applicant.
         (h) (1)  Within  60 days after receipt by the Agency
    of an application meeting the requirements of  subsection
    (e)  or  (f),  the  Agency  must  issue  a  letter to the
    applicant  approving,  disapproving,  or  modifying   the
    remediation  costs  submitted  in the application.  If an
    application is disapproved or approved with  modification
    of  remediation  costs, then the Agency's letter must set
    forth the reasons for the disapproval or modification.
         (2)  If a preliminary review of a  budget  plan  has
    been  obtained  under  subsection  (i),  the  Remediation
    Applicant may submit, with the application and supporting
    documentation under subsections (e) or (f), a copy of the
    Agency's    final    determination   accompanied   by   a
    certification that the actual remediation costs  incurred
    for  the  development  and implementation of the Remedial
    Action Plan are equal to or less than the costs  approved
    in  the  Agency's final determination on the budget plan.
    The certification  must  be  signed  by  the  Remediation
    Applicant  and  notarized.  Based on that submission, the
    Agency is not required to conduct further review  of  the
    costs  incurred for development and implementation of the
    Remedial Action Plan and may approve costs as submitted.
         (3)  Within 35  days  after  receipt  of  an  Agency
    letter  disapproving  or  modifying  an  application  for
    approval  of remediation costs, the Remediation Applicant
    may appeal the Agency's decision  to  the  Board  in  the
    manner  provided  for the review of permits in Section 40
    of this Act.
         (i) (1)  A  Remediation  Applicant  may   obtain   a
    preliminary review of estimated remediation costs for the
    development  and  implementation  of  the Remedial Action
    Plan by submitting a budget plan along with the  Remedial
    Action  Plan.  The budget plan must be set forth on forms
    prescribed and provided by the Agency and  must  include,
    but  is  not limited to, line item estimates of the costs
    associated  with  each  line  item  (such  as  personnel,
    equipment, and materials) that the Remediation  Applicant
    anticipates  will  be  incurred  for  the development and
    implementation of the Remedial Action Plan.   The  Agency
    must  review  the  budget  plan  along  with the Remedial
    Action Plan to  determine  whether  the  estimated  costs
    submitted  are  remediation  costs  and whether the costs
    estimated for the activities are reasonable.
         (2)  If the Remedial Action Plan is amended  by  the
    Remediation  Applicant  or  as a result of Agency action,
    the corresponding budget plan must be revised accordingly
    and resubmitted for Agency review.
         (3)  The budget plan  must  be  accompanied  by  the
    applicable fee as set forth in subsection (j).
         (4)  Submittal  of  a  budget plan must be deemed an
    automatic 60-day  waiver  of  the  Remedial  Action  Plan
    review  deadlines  set  forth  in  this Section and rules
    adopted under this Section.
         (5)  Within the applicable  period  of  review,  the
    Agency  must  issue a letter to the Remediation Applicant
    approving,  disapproving,  or  modifying  the   estimated
    remediation  costs  submitted  in  the budget plan.  If a
    budget plan is disapproved or approved with  modification
    of  estimated remediation costs, the Agency's letter must
    set  forth   the   reasons   for   the   disapproval   or
    modification.
         (6)  Within  35  days  after  receipt  of  an Agency
    letter disapproving  or  modifying  a  budget  plan,  the
    Remediation Applicant may appeal the Agency's decision to
    the  Board  in  the  manner  provided  for  the review of
    permits in Section 40 of this Act.
    (j)  The fees for reviews conducted by the  Agency  under
this  Section  are  in addition to any other fees or payments
for Agency services rendered pursuant to the Site Remediation
Program and are as follows:
         (1)  The  fee  for  an  application  for  review  of
    remediation costs is $1,000 for each site reviewed.
         (2)  The fee for  the  review  of  the  budget  plan
    submitted  under  subsection  (i)  is  $500 for each site
    reviewed.
    The application fee must be made payable to the State  of
Illinois,  for  deposit into the Brownfields Site Restoration
Program Fund.
    (k)  The Brownfields Site Restoration Program Fund.
         (1)  The Brownfields Site Restoration  Program  Fund
    is  created as a special fund in the State treasury to be
    used by the Agency, subject to appropriation, exclusively
    for the purposes of this Section, including  payment  for
    the costs of administering this Act.
         (2)  The    Fund   consists   of   collected   fees,
    appropriations from the General Assembly, and  gifts  and
    grants to the Fund.
         (3)  The  State  Treasurer  must invest the money in
    the Fund not currently needed to meet the obligations  of
    the  Fund in the same manner as other public funds may be
    invested.  All interest earned on moneys in the Fund must
    be deposited into the Fund.
         (4)  The money in the Fund at the  end  of  a  State
    fiscal   year   must  remain  in  the  Fund  to  be  used
    exclusively   for   the   purposes   of   this   Section.
    Expenditures from the Fund are subject  to  appropriation
    by the General Assembly.
    (l)  The  Department  and  the  Agency  are authorized to
enter into any contracts or agreements that may be  necessary
to  carry  out  their  duties and responsibilities under this
Section.
    (m)  Within 6 months after the  effective  date  of  this
amendatory  Act  of  2001,  the  Department  of  Commerce and
Community  Affairs  and  the  Agency   must   propose   rules
prescribing  procedures  and standards for the administration
of this Section.   Within  9  months  after  receipt  of  the
proposed  rules,  the  Board  shall  adopt  on second notice,
pursuant to Sections 27 and 28 of this Act and  the  Illinois
Administrative Procedures Act, rules that are consistent with
this  Section.   Prior to the effective date of rules adopted
under this Section, the Department of Commerce and  Community
Affairs  and  the  Agency may conduct reviews of applications
under this Section and the Agency is  further  authorized  to
distribute  guidance  documents on costs that are eligible or
ineligible as remediation costs.

    Section   15.     The    Response    Action    Contractor
Indemnification  Act  is  amended  by  changing  Section 5 as
follows:

    (415 ILCS 100/5) (from Ch. 111 1/2, par. 7205)
    Sec. 5. Response Contractors Indemnification Fund.
    (a)  There is hereby  created  the  Response  Contractors
Indemnification Fund.  The State Treasurer, ex officio, shall
be  custodian  of  the Fund, and the Comptroller shall direct
payments from the Fund upon vouchers  properly  certified  by
the  Attorney  General  in  accordance  with  Section 4.  The
Treasurer shall credit interest on the Fund to the Fund.
    (b)  Every State response action contract  shall  provide
that  5%  of  each  payment to be made by the State under the
contract shall  be  paid  by  the  State  directly  into  the
Response  Contractors Indemnification Fund rather than to the
contractor, except that when there is  more  than  $2,000,000
$4,000,000  in  the  Fund  at the beginning of a State fiscal
year, State response action contracts during that fiscal year
need not provide that 5%  of  each  payment  made  under  the
contract  be  paid  into  the Fund.  When only a portion of a
contract relates to a remedial or response action, or to  the
identification, handling, storage, treatment or disposal of a
pollutant,  the contract shall provide that only that portion
is subject to this subsection.
    (c)  Within 30 days after  the  effective  date  of  this
amendatory   Act   of   1997,  the  Comptroller  shall  order
transferred and the Treasurer shall transfer $1,200,000  from
the   Response   Contractors   Indemnification  Fund  to  the
Brownfields Redevelopment Fund.  The Comptroller shall  order
transferred  and the Treasurer shall transfer $1,200,000 from
the  Response  Contractors  Indemnification   Fund   to   the
Brownfields  Redevelopment  Fund  on  the first day of fiscal
years 1999, 2000, 2001, and 2002, 2003, 2004, and 2005.
    (d)  Within 30 days after  the  effective  date  of  this
amendatory  Act of the 91st General Assembly, the Comptroller
shall order transferred  and  the  Treasurer  shall  transfer
$2,000,000 from the Response Contractors Indemnification Fund
to the Asbestos Abatement Fund.
(Source: P.A. 90-123, eff. 7-21-97; 91-704, eff. 7-1-00.)
    Passed in the General Assembly May 31, 2001.
    Approved August 23, 2001.
    Effective January 01, 2002.

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