EPA-430/9-76-015
CONSTRUCTION GRANTS PROGRAM
REQUIREMENTS
GUIDANCE FOR PREPARING
A FACILITY PLAN
REVISED - MAY 1975
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF WATER PROGRAM OPERATIONS
MUNICIPAL CONSTRUCTION DIVISION
WASHINGTON, D.C. 20460
MCD-46
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GUIDANCE FOR PREPARING
A FACILITY PLAN
Municipal Construction Division
Office of Water Program Operations
Environmental Protection Agency
Washington, D. C. 20460
Revised - May 1975
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FOREWORD
This guidance is to assist with preparing a preliminary facility
plan for construction of municipal sewage treatment works. The facility
plan is the first step in a three step process required to complete
treatment works with Federal grants from the Environmental Protection
Agency. The second step is preparation of detailed design plans and
specifications. The third and final step is construction of the treat-
ment works. EPA will generally provide 75 percent of the eligible costs
of the three steps in the grants program.
This grants program is now the largest public works program in
the United States. The purpose of the facility plan is to assure that
the treatment works built under this program are environmentally
sound and cost-effective.
The complexity of the process of preparing facility plans will
vary with local circumstances, the size and nature of needed facilities
and the extent of previous planning efforts. EPA is preparing model
facility plans, one for a community of about 5,000, and one for a very
small community of only a few hundred persons. These model plans,
which are scheduled to be available in mid-1975, will give an indication
of the amount of detail appropriate for communities of these sizes.
Effective July 1, 1975, this guidance supersedes "Guidance for Facilities
Planning" issued in January 1974. It presents a more streamlined and up-to-
date description of the basic requirements and ways of meeting them. We
welcome your suggestions for changes, additions or deletions which
would help achieve the Agency's objective of timely preparation of
facility plans of quality.
James L. Agee, Assistant Administrator
for Water and Hazardous Materials
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GUIDANCE FOR PREPARING A FACILITY PLAN
FOREWORD
TABLE OF CONTENTS
1 . INTRODUCTION
1.1 Purpose
1.2 Relationship of Facility Plans to Other Water Planning and
Management Programs
1.2.1 State Continuing Planning Process and Basin Plans
1.2.2 Areawide Waste Treatment Management Plans
1.2.3 Municipal Permits
1.2.4 State Responsibilities
2. FACILITY PLANNING AREA
3. PLAN OF STUDY (POS)
4. FACILITY PLAN
4.1 Step 1: Effluent Limitations
4.2 Step 2: Assess Current Situation
4.2.1 Introduction
4.2.2 Existing Conditions in the Planning Area Without the
Project
4.2.3 Existing Wastewater Flows and Treatment Systems
4.2.4 Infiltration and Inflow
4.2.5 Performance of Existing System
4.3 Step 3: Assess Future Situation
4.3.1 Planning Period
4.3.2 Land Use
4.3.3 Demographic and Economic Projections
4.3.4 Forecasts of Flow and Waste Loads
4.3.5 Future Environment of the Planning Area Without the Project
4.4 Step 4: Develop and Evaluate Alternatives
4.4.1 Baseline: Optimum Operation of Existing Facilities
4.4.2 Regional Solutions
4.4.3 Alternative Waste Treatment Systems
4.4.4 Environmental Impacts
4.4.4.1 General
4.4.4.2 Primary Impacts
4.4.4.3 Secondary Impacts
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4.4.5 Additional Guidance on Evaluation of Alternatives
4.4.5.1 Institutional arrangements
4.4.5.2 Industrial Services
4.4.5.3 Flow and waste reduction
4.4.5.4 Sewers
4.4.5.5 Sludge disposal
4.4.5.6 Location of facilities
4.4.5.7 Revision of wasteload allocation
4.4.5.8 Phased construction
4.4.5.9 Flexibility
4.4.5.10 Reliability
4.5 Step 5: Select Plan
4.5.1 Selection Process
4.5.2 Environmental Impacts of the Selected Plan
4.6 Step 6: Preliminary Design of Treatment Works
4.7 Step 7: Arrangements for Implementation
5. PUBLIC PARTICIPATION
5.1 Introduction
5.2 Relationships between Planner and Public
5.3 Requirement for Public Hearing
5.4 Summary of Public Participation
6 . EVALUATION OF COSTS
6.1 Introduction
6.2 Sunk Costs
6.3 Present Worth and Equivalent Annual Costs
6.4 Example 1: Constant 0 & M Costs
6.5 Example 2: Varying 0 & M Costs
6.6 Example 3: Varying 0 & M Costs, Phased Construction and
Salvage Value
7. ENVIRONMENTAL EVALUATION
7.1 Purpose
7.2 Facility Planning and the Environmental Assessment
7.3 Environmental Impact Statements
7.4 Environmental Considerations
8. PLAN SELECTION
8.1 Introduction
8.2 Comparison and Ranking of Proposals
9. FORMAT FOR SUBMISSION OF PLAN
9.1 Outline of Plan
9.2 Appendices
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10. REVIEW, CERTIFICATION AND APPROVAL OF PLANS
10.1 Purpose
10.2 Three Levels of Review
10.3 Compliance with OMB Circular A-95
10.4 Submission to State
10.5 Submission to EPA
10.6 Revisions to Plans
10.7 EPA Review
10.8 EPA Approval
APPENDIX A - REFERENCES
A.I FEDERAL REGULATIONS
A.2 EPA DOCUMENTS
A.3 CIRCULARS AND MISCELLANEOUS PUBLICATIONS
APPENDIX B
Construction Grant Regulation
APPENDIX C
Addresses of Regional Offices
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1. INTRODUCTION
1.1 Purpose
This guidance suggests procedures for preparing a facility plan
for publicly-owned treatment works. The plan is required before a
municipality may obtain a Federal grant under the Federal Water Pollution
Control Amendments of 1972 to prepare detailed design plans and specifi-
cations, and to construct the treatment works itself.
The approach used here is to describe the requirements in the
applicable laws and regulations and suggest a planning process by which
they can be met. The principal laws are the Federal Water Pollution
Control Amendments of 1972 (FWPCA) and the National Environmental Policy
Act (NEPA). Federal documents which provide guidance and assistance with
preparing a facility plan are listed in Appendix A. These documents are
referenced in the portion of this guidance to which they apply. They may
be obtained from the Regional Offices listed in Appendix C. The principal
regulation dealing with the facility planning process is enclosed with
this guidance as Appendix B, "Water Pollution Control, Construction Grants
for Waste Treatment Works" (see particularly Section 35.917).
The level of detail required in a facility plan will vary according to
the nature, scale and location of the undertaking. Local municipalities
and consultants should discuss the extent of planning required by their
community with officials of the State and the Federal Environmental Pro-
tection Agency. Preapplication conferences of Federal, State and local
officials to discuss how to proceed will be held to the extent resources
permit.
1.2 Relationship of Facility Plans to Other Water Planning and Management
Programs
1.2.1 State Continuing Planning Process and Basin Plans
Facility plans will conform to applicable approved basin plans
prepared under Section 303 of FWPCA (references h, i, and u).
Under the State continuing planning process, "segments" of the
nation's waterways have been classified initially as "water quality
limited" or "effluent limited". "Water quality limited" segments
are those which cannot be expected to meet established water quality
standards even if all point sources achieve the effluent limitations
required by Section 301 of FWPCA. "Effluent limited" segments are
those where water quality standards can be achieved after all point
sources meet the effluent limitations required by Section 301.
All publicly-owned treatment works which are constructed with
Federal grant funds authorized after June 30, 1974, must achieve "best
practicable waste treatment technology", as defined in reference o.
Publicly-owned treatment works discharging to "effluent limited"
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segments must, as a minimum, provide secondary treatment as defined
in reference j. Such works shall provide additional treatment or
include the use of other waste management techniques, when factors
such as water quality standards for the affected waterway or avail-
ability of cost-effective technology warrant standards more stringent
than secondary treatment. The precise discharge limitation for
facilities on "water quality limited" segments will be determined in
the basin planning process or, where this is not complete, in con-
junction with the permit program.
1.2.2 Areawide Waste Treatment Management Plans
Areawide plans, authorized under section 208 of FWPCA, are to
set forth a comprehensive management program for collection and
treatment of wastes, and for controlling pollution from all point
and non-point sources. Controls for abating these sources are to
utilize a mix of land-use measures, management and regulatory pro-
grams, as well as structural methods. The portion of the areawide
plan devoted to construction of publicly-owned treatment works in
the future should select and describe planning and service areas and
treatment systems, and provide supporting analysis for the selection.
Areawide planning requirements, therefore, overlap with facility
planning requirements. The Agency's policy on relationships between
the two programs during the period before final completion and
approval of an areawide plan is as follows:
a. New facility plans will be started and carried out as
provided in the State priority list.
b. The scope and funding of facility planning will be
sufficient to collect all data and conduct all analyses
necessary for expeditious completion of the facility plan.
c. Facility and areawide planning will coordinate closely
and share their data and analytical work, but completion of
facility plans should not be dependent on the areawide planning
process.
d. After a facility plan is completed, the project should
continue through the remaining steps of the grants process after
opportunity for timely review and comment by the 208 plannfng Agency.
e. After interim outputs have been developed and approved by
the State and EPA for the areawide planning area, new facility
plans must be consistent with the approved interim 208 outputs.
The scope and funding of new facility planning should not extend
to preparing a justification for the interim 208 outputs. This
justification already will be available from the areawide
planning process.
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The following will be the policy after the areawide plan has
been completed and approved, and the agency or agencies identified
to construct, operate and maintain the municipal treatment facilities
required by the plan:
a. All facility plans underway at the time of approval will be
completed by the agency which received the grant for the facility
planning. The planning effort will continue as before approval
unless the analysis in the approved 208 plan clearly justifies a
change in required treatment levels or alternative approach on
the basis of lower costs or major changes in environmental impacts.
b. The scope and funding of new facility plans started after
approval of the areawide plan will be sufficient to supplement
the data and analysis in the areawide plan to the extent necessary
to provide a complete facility plan as required by Section 35.917
of the construction grants regulation (Appendix B).
c. New grants for facility plans will be made to the management
agencies designated in the approved areawide plans. New facility
planning will be consistent with the approved areawide plan.
1.2.3 Municipal Permits
Facility plans must, as a minimum, conform with all applicable
permit requirements, and include a copy of the permit. Where a
permit has not been issued, the facility plan should describe the
applicable Federal and State effluent limitations. These limitations,
if not known, should be obtained from State officials and the
Environmental Protection Agency.
1.2.4 State Responsibilities
States play a central role in management of facility planning.
The States' responsibilities are as follows:
a. To prepare a State priority list for construction grants
based on a determination of where and when treatment works will
be required (see reference b).
b. To determine, through the basin planning process, the
effluent limitations which must be met by publicly-owned treat-
ment works to comply with applicable requirements of Federal,
State and local law.
c. To delineate, on a preliminary basis, the boundaries of the
facility planning area. These boundaries may be adjusted as a
result of information obtained during the facility planning
process.
d. To review the plan of study to ensure that (1) the geographic
planning area is adequate, (2) the nature and scope of the planning
tasks are properly defined and cover only essential works, and
(3) planning costs are reasonable.
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e. To review facility plans and certify that (i) tne plans
conform with the requirements of the construction grants regula-
tion (Appendix B); (2) the plan conforms with any existing final
basin plans approved under section 303(e) of the Act; (3) any
concerned areawide planning agency has been afforded the
opportunity to comment on the plan; and (4) the plan conforms
with any areawide treatment management plan completed and.
approved in accordance with section 208 of FWPCA.
2. FACILITY PLANNING AREA
The facility planning area for new wastewater treatment systems should be
large enough to analyze the cost-effective alternative methods of waste trans-
port, treatment, handling and disposal of sludge and disposal of treated effluent.
It also should be large enough to analyze the environmental effects of alterna-
tives, as required by the regulation, "Preparation of Environmental Impact
Statements" (reference a). This regulation requires an environmental assessment
as an integral part of a facility plan.
Note, however, that facility planning shall be conducted only to the ex-
tent that the Regional Administrator determines to be necessary to meet these
requirements and to permit reasonable evaluation of grant applications and sub-
sequent preparation of design construction drawings and specifications (see
Section 35.917-4 of the Construction Grants Regulation in Appendix B).
An applicant for a facility planning grant need not hold current legal
authority to implement all aspects of a facility plan as it may eventually
develop. He must, however, have both the legal ability and the practical ex-
pection of acquiring such authority at the proper point in the grants process.
The proper time, in many cases, will be after the final waste management
alternative has been chosen near the conclusion of the facility plan.
3. PLAN OF STUDY (POS)
The Plan of Study (POS) must be prepared and approved by the State and EPA
before a facility plan is begun, and before a Federal grant may be approved for
a facility plan (see Section 35.920-3 in Appendix B). The POS should briefly
(generally in ten pages or less) describe the scope, schedule and costs of the
proposed facility plan. The POS should:
a. Provide a map or maps showing the planning area; the SMSA; the boundaries
of political jurisdictions; boundaries of streams, lakes, water impoundments
and water basins; and the service areas of existing waste treatment systems.
b. List the responsible planning organizations and agreements or resolutions
for conducting joint planning, if any.
c. Provide the 1970 population in the planning area.
d. Describe briefly why a grant for facility construction is necessary,
including water quality problems and applicable effluent limitations if
this information is readily available.
e. Summarize briefly the unit processes in the existing system, if any,
and communities and major industries served.
f. Describe data, plans and other information available to assist with
facility planning.
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g. Say if the State is expected to certify that "excessive infiltration/
inflow" does not exist (see part 4.2.4 below); or that additional data
collection may be necessary. If the applicant believes that "excessive
infiltration/inflow" exists and a detailed sewer evaluation will be
necessary, the Plan of Study should so state.
h. Provide a schedule for completion of the specific tasks necessary
to prepare the facility plan.
i. Estimate the cost for each task and the total costs for the facility
plan.
4. FACILITY PLAN
A facility plan can be prepared in seven major steps. Each step is dis-
cussed in a separate section below, along with recommendations on how it can be
completed. The applicability of these recommendations will vary with local
circumstances.
Environmental considerations should be addressed during facility planning
to meet the requirement for an environmental assessment of each project (see
reference a). For example, information on existing and future environmental
conditions should be gathered and assessed along with the information on other
aspects of the existing and future situation (see section 4.2 and 4.3). Alterna-
tives should be evaluated for environmental impact at the same time they are
evaluated for costs and other impacts (see section 4.4). A separate section of
the facility plan, however, should summarize the environmental considerations to
demonstrate that they have been adequately covered and provide a single point of
reference for a person interested in reviewing the environmental analysis.
(See Part 7 of this Guidance.)
4.1 Step 1: Effluent Limitations
The facility plan should list the effluent limitations applicable to
the facility being planned. These effluent limitations normally may be
found in a municipal permit issued under the National Pollutant Discharge
Elimination System. A copy of the municipal permit should be attached to
the plan.
If the facility is on a "water quality limited" waterway (see section
1.2.1 above), the applicable water quality standards should be obtained
from the State and briefly summarized in the plan, in addition to the
effluent limitations necessary to meet the applicable water quality
standards.
4.2 Step 2: Assess Current Situation
4.2.1 Introduction
The facility plan should briefly describe the existing conditions
to be considered when weighing alternatives during the facility
planning process.
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4.2.2 Existing Conditions in the Planning Area Without the Project
The following existing conditions should be described to the
extent necessary to analyze alternatives and determine the environ-
mental impacts of the proposed actions. Only conditions which are
applicable to the project should be discussed.
a. Planning area description, planning area boundaries, poli-
tical jurisdictions and physical characteristics, including
climate, geology, soils, topography and hydrology.
b. Organizational context, the role of all organizations in-
volved in planning, financing and operating publicly-owned waste
treatment works in the planning area.
c. Demographic data, the 1970 census population, land-use
patterns, and major employment generating activities.
d. Water quality, existing quality, quantity, and uses of
surface and ground water.
e. Other existing environmental conditions, air quality, noise
levels, energy production and consumption, wetlands, flood plains,
coastal zones and other environmentally sensitive areas, historic
and archaeological sites, other related Federal or State projects
in the area, and plant and animal communities which may be
affected, especially those containing threatened or endangered
species.
Sources of information used to describe the existing environment and
to assess future environmental impacts should be cited.
4.2.3 Existing Wastewater Flows and Treatment Systems
An inventory of existing wastewater treatment systems should be pro-
vided, including services, treatment plants, effluent disposal or reuse
methods, sludge disposal methods, and flow and waste reduction measures
currently being used, if any.
The discussion of flows should include average and peak wastewater
flows, wastewater characteristics and wasteloads at key points in the
system, dry and wet-weather flows, combined sewer overflows, and the
location of bypasses. Available data on industrial and commercial flows
should be summarized.
4.2.4 Infiltration and Inflow
The construction grants regulation (Appendix B) provides that the
State may certify that excessive infiltration/inflow does not exist.
The certification may be based on studies or other information available
on the sewer system before facility planning begins, or gathered in the
course of the facility planning process.
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When the certification cannot be made because information is inade-
quate, an infiltration/inflow analysis should be conducted in accordance
with EPA "Guidance for Sewer System Evaluation" (reference t).
The purpose of the analysis is to estimate infiltration/inflow
into the system; to approximate, on a preliminary basis, the costs
of treating the infiltration/inflow versus the costs of rehabilitating
the sewer system to eliminate the problem; and finally, to determine
if the infiltration/inflow is excessive, as defined in reference t.
If the infiltration/inflow analysis demonstrates the existence
or possible existence of excessive infiltration/inflow, a sewer
system evaluation survey should be conducted, in accordance with
reference t, to analyze the problems in more detail and determine
needed corrective actions and their costs.
4.2.5 Performance of Existing System
The performance of existing wastewater treatment facilities
should be evaluated to determine their operational efficiency. The
evaluation should compare existing performance with optimum perform-
ance obtainable in terms of effluent quality and treatment capacity.
The effect of the following factors on performance should be considered.
a. Adequacy of plan design.
b. Quality of operation and control.
c. Caliber and number of operating personnel.
d. Adequacy of sampling and testing program.
e. Adequacy of laboratory facilities, and
f. Quality of maintenance program.
4.3 Step 3: Assess Future Situation
4.3.1 Planning Period
The planning period is the time span over which wastewater
management needs are forecast, facilities are planned to meet such
needs, and costs are amortized. The facility planning period should
extend 20 years beyond the date when the planned facility is scheduled
to begin operation. The most cost-effective plan may provide for
phasing construction of operable parts of the facility to meet
changing conditions over the planning period.
Phased construction of treatment plants, in particular, will often
be the most cost-effective approach. Consideration should be given
to initial construction of a plant with a capacity to handle the waste-
water flows projected for only a part of the 20 years planning
period. The plan should provide in this case for adding more capacity
later to treat the remaining increase in wastewater flows projected
for the rest of the planning period.
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Wastewater flows may be projected for years beyond the 20 year
planning period when determining the most cost-effective design for
interceptor sewers. Design flows must be fully justified in the
facility plan.
4.3.2 Land Use
The facility plan should be carefully coordinated with applicable
State, local and regional land-use management regulations, policies
and plans. Projected land-use patterns and densities should be used
as one basis for determining the optimum capacity and location of
facilities.
Where land use plans have not been prepared for all or part of
the planning area, an estimate of future land use patterns and densi-
ties should be prepared in consultation with existing planning agencies,
zoning commissions and public officials.
Careful consideration should be given before providing sewerage
for areas subject to flood hazards. The facility plan should be com-
patible with State and local programs for flood plain management.
4.3.3 Demographic and Economic Projections
Projections of economic and population growth should be used as
one basis for estimating future wasteloads and flows.
For SMSAs, economic^and population projections should follow the
work of the Bureau of Economic Analysis incorporating the "Series E"
projections of the Census Bureau. Reasons for departures should be
fully documented.
Projections of economic and population growth for non-SMSA
communities may be based on extension of current (1960 or 1965 to
present) growth trends. Economic projections of industrial employ-
ment may assist with projections of population growth.
All projections should be consistent with those used for control
of air quality, water resources management, and other environmental
programs unless new information and analysis justify departures.
Reasons for any departures should be documented.
Projections should be adjusted to reflect constraints on growth
imposed by air quality implementation plans and land-use and develop-
ment controls.
4.3.4 Forecasts of Flow and Wasteloads
The following factors should be considered when estimating waste-
loads and flows for the future:
a. projections of economic and population growth
b. an estimate of non-excessive infiltration/inflow
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c. analysis of pollutant content and flows in the existing system.
d. an analysis of the rate, duration, pollutant content and loca-
tion of combined sewer overflows in the existing system during
storms of different magnitude. The analysis should be linked to
the drainage area tributary to the combined sewer system. This
would facilitate forecasting of flow and wasteload increases from
future changes in the nature and extent of the drainage area.
e. projection of future changes in flow and wasteloads from
industries to be served by the municipality. This projection should
take into account reductions in industrial flow and waste which will
result from Federal, State and local pretreatment requirements and
from imposition of user and cost recovery charges.
f. projection of gains possible from selected measures to reduce
flow and wastes.
4.3.5 Future Environment of the Planning Area Without the Project
The future environmental conditions for the delineated planning
area under the "no project" alternative should be predicted, covering
the same areas considered under Section 4.2.2.
4.4 Step 4. Develop and Evaluate Alternatives
4.4.1 Baseline: Optimum Operation of Existing Facilities
The alternative of optimizing performance of existing facilities
should be considered first. The level of treatment attainable with
optimum performance should serve as a baseline for planning additions
or modifications to the treatment system.
4.4.2 Regional Solutions
The possibility of a regional solution to wastewater treatment
problems should be explored early in the planning process to reduce
the number of options requiring detailed consideration to a manageable
number. Regional solutions may include interconnection of facilities,
construction of one or more large facilities to eliminate the need for
many small facilities and joint management of facilities to improve
operation and maintenance and reduce costs. Joint facilities may
involve interceptors, treatment plants and sludge and effluent disposal
systems.
Existing plans which address regional options should be referenced
and important conclusions summarized in the facility plan. Further
analysis of options will not be necessary if regional questions are
resolved by existing plans.
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Where regional questions have not been resolved, discharge combi-
nations and effluent limitations related to each combination should be
estimated by the applicant or the State. Any simplifying assumptions
needed for such preliminary analyses should be documented. Monetary
costs and environmental impacts should be estimated.
The analysis of regional solutions should address the following
special considerations:
a. effects of interceptor location on land use within and
between urban areas, particularly where land is undeveloped.
b. effects of alternative combinations on stream flows in the
regions.
c. possible limitation on future expansion due to unavailability
of land.
d. differences in reliability, operation and maintenance of
facilities.
e. environmental and economic costs of delays likely to be
associated with efforts to achieve a regional solution.
A map of treatment system configurations should be prepared on
the basis of the above analysis. It should show the boundaries of
political jurisdictions and service areas for each treatment plant.
4.4.3 Alternative Waste Treatment Systems
Alternative waste treatment systems for each service area should
be considered in addition to the regional questions outlined above.
First, the implication of the "no action" plan should be set
forth with respect to potential effects on:
a. surface water quality
b. groundwater quality (if applicable)
c. land use limitation if "no action" alternative is selected
d. socio-economic factors (e.g., residential, industrial
development and health hazards).
Second, the plan should consider, where applicable, the primary
options for:
a. flow and waste reduction
b. configuration of sewers and interceptors
c. treatment and disposal of effluent
d. sludge disposal.
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Options should be rejected from the outset if they fajl to meet physical
constraints of the planning area, such as climate, soils or topography,
or if they are incompatible with air and water quality plans. These
options should be presented in the plan, however, with a very brief
summary of the reasons for their rejection.
Alternative waste treatment systems must be considered in accordance
with information included in references o and s. The following three
alternatives must be considered, as a minimum, to meet the requirements
for best practicable waste treatment technology:
a. treatment and discharge of effluent
b. treatment and reuse
c. land application
Options for treatment and discharge should, as appropriate, take
into account and allow to the extent practicable for the application of
technology at a later date to provide for the reclaiming or recycling
of water or otherwise eliminate the discharge of pollutants.
Following initial screening of the alternative systems, a limited
number of the most feasible options should be evaluated in detail. The
evaluation should follow the guidance on monetary costs in Chapter 6
and on environmental and other considerations in the remainder of this
chapter.
Proposals should be re-evaluated and compared after refinement and
estimation of monetary costs, environmental effects and other considera-
tions. Features should be added where practicable to each alternative
to offset or mitigate adverse environmental impacts. Each alternative,
including its costs and environmental effects, will then be displayed
to inform the public and solicit public opinions to help select a plan.
4.4.4 Environmental Impacts
4.4.4.1 General
Alternatives should be evaluated and screened for their envir-
onmental impacts. Adverse impacts could be a basis for rejecting an
option and, thus, reducing the number of alternatives. C^her impacts
may require further study and should be identified, to the extent
possible, early in the planning process.
The evaluation should assess both beneficial and adverse primary
and secondary environmental impacts. A definition and examples of
each type follows:
4.4.4.2 Primary Impacts
Primary impacts are those directly related to construction and
operation of the treatment works. Some examples are:
a. Destruction of historical, archaeological, geological,
cultural or recreational areas during construction.
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b. Destruction of sensitive ecosystems including wetlands and
the habitats of endangered species during construction.
c. Damage and pollution of surface waters due to erosion
during construction.
d. Displacement of households, businesses or services.
e. Noise pollution, air pollution and odor and public health
problems associated with construction and operation.
f. Direct violation during construction or operation of Federal,
State or local environmental and land-use statutes, or regu-
lations and plans imposed by such statutes and regulations.
4.4.4.3 Secondary Impacts
Secondary impacts of a project are (1) indirect or induced changes
in the patterns of land-use and population growth, and (2) other envi-.
ronmental effects resulting from changes in land use and population
growth.
Examples of secondary impacts are:
a. changes in the rate, density, or type of development, in-
cluding residential, commercial, industrial development, or
changes in the use of open space or other categories of land.
b. air, water, noise, solid waste or pesticide pollution
stemming from the induced changes in population and land use.
c. damage to sensitive ecosystems (wetlands, habitats of endan-
gered species) and environmentally protected areas (parks, his-
toric sites) resulting from changes in population and land use.
Primary attention in the environmental assessment should be
given to determining if secondary impacts will possibly contravene
environmental and land use statutes or regulations, or standards,
limitations and plans imposed by such statutes and regulations
Relevant Federal, State and local environmental and land use statutes
and regulations should be considered.
4.4.5 Additional Guidance on Evaluation of Alternatives
4.4.5.1 Institutional Arrangements
Evaluation of alternatives should include a comparison of
existing institutional arrangements and authorities with those
necessary to implement each option. The organization to be
responsible for management of the waste treatment facilities also
should be identified with each option. Further, the costs to
each jurisdiction for construction, operation and maintenance
of the facilities should be estimated. These matters, as v/ell as
the total costs and effects of each proposal, should be discussed
with representatives of local government units, and the views of
other interested parties solicited during public review.
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4.4.5.2 Industrial Service
Industrial use of municipal facilities should be encouraged
when environmental and monetary costs would be minimized. Costs
of separate treatment of industrial waste should be compared with
costs of pretreatment plus the cost to the municipality
for joint treatment, when industrial flow to be handled
by municipal systems is significant. Pretreatment is required
in accordance with Federal pretreatment standards (reference g)
and any existing State and local standards. The analysis should
focus on those industries which desire municipal service but are
not yet so served when facility planning is initiated.
4.4.5.3 Flow and Waste Reduction
Some types of flow and waste reduction measures are listed
below:
a. measures for reducing sewer system infiltration/inflow
b. household water-saving devices
c. water meters
d. land use and development regulations
e. industrial reuse and recycling
f. on-site (private) facilities such as septic tanks
Procedures for determining the cost effectiveness of measures
for reducing infiltration/inflow are found in EPA "Guidance for
Sewer System Evaluation" (reference t). The cost-effectiveness
of water conservation measures can be determined by comparing the
cost with resultant savings for both waste treatment and water
supply.
4.4.5.4 Sewers
Alternative arrangements of interceptors and trunk lines
should be compared to determine the most cost-effective configu-
ration. Sewers in developing areas should be planned on the basis
of anticipated changes in land use and density.
Analysis should be made, whenever possible, of the residential,
commercial and industrial land use changes that a centralized project
will induce.
The sizes of interceptors should be based on cost-effective
analysis of alternative pipe sizes. The analysis should reflect the
expected useful life of the pipe, all costs related to future pipe
installation, and induced growth effects of initial provision of
substantial excess capacity.
4.4.5.5 Sludge Disposal
Environmentally acceptable methods of sludge utilization and
disposal include stabilization and subsequent land application for
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agriculture, enhancement of parks and forests, reclamation of
poor or damaged terrain, sanitary land fill, or sludge incinera-
tion and disposal of resulting ash. Ocean disposal may be allowed
under special circumstances (subject to reference k).
4.4.5.6 Location of Facilities
Evaluation and choice of sites for treatment plants, inter-
ceptors, transmission lines, outfalls, pumping stations, and
other major works should take into account the factors cited
below and discussed further in references p, q, and y.
a. minimize odors and locate away from residential areas
which would be affected by odors
b. minimize aesthetic problems by design and landscaping
c. locate outfalls where they will not affect public water
supply, shell fishing beds, and contact recreational waters.
Where alternative sites are unavailable, special precautions
must be taken in accordance with references p and y.
d. locate treatment plants and other facilities in general
outside of floodplains. Where such locations are
not practicable or would lead to excessive costs, the plant
and equipment will be protected against flooding as described
in reference p.
4.4.5.7 Revision of Wasteload Allocation
Wasteload allocations are the basis for determining effluent
limitations to be achieved by a treatment plant. They are
normally prepared as part of the State basin planning process and
are reflected in the discharge permit. Facility planning may
result in a change in the discharge locations and the wasteload
distribution among the locations. The wasteload allocation, in
this case, should be reviewed by the State or EPA and modified
to reflect the configuration of discharges in the proposed plan.
4.4.5.8 Phased Construction
Adding capacity in phases during a planning period will,be
more cost-effective in some cases than providing sufficient capa-
city in initial construction for the entire planning period. A
method for cost analysis of phased development is discussed in
Chapter 6. Factors to be considered are:
a. relative cost of providing excess capacity initially
compared with the present worth of deferred costs for pro-
viding capacity when needed.
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b. uncertainties of projected long-term wastewater flows,
and possible technological advances or flow and waste reduc-
tion measures which may limit need for excess capacity.
Modular development of operable components of a treatment
plant is advisable in areas where high growth rates are projected,
where treatment must become more stringent later in the planning
period, or where existing facilities are to be used initially but
phased out later.
4.4.5.9 Flexibility
Facility planning should consider providing sufficient land
and choosing layouts and siting to allow for expansion of the plant
to handle unforeseen increases in wastewater flows and required
treatment levels.
Interceptors and collection systems may be planned to meet
unforeseen expansions of the service area. Consideration should
be given, for example, to obtaining extra sewer rights-of-way for
staged parallel pipes and pipe extensions and temporary treatment
plants.
4.4.5.10 Reliability
Emphasis on reliability should focus on the most critical
processes in accordance with the requirements in reference p.
4.5 Step 5. Select Plan
4.5.1 Selection Process
The public should be provided with alternative proposals, and a
public meeting or hearing held to explain each proposal and obtain the
views of all concerned (see Chapter 5). The opinions expressed should be
weighed with estimated environmental effects, monetary costs, feasibility,
resources and energy use, and reliability. The alternative proposals
should be ranked on the basis of these considerations and a plan selected.
Additional guidance on selection of a plan is provided in Chapter 8.
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4.5.2 Environmental Impacts of the Selected Plan
The primary and secondary impacts of the selected plan should be
summarized. Special attention should be given in the summary to the
following:
a. Any unavoidable adverse impacts resulting from the project.
b. Relationship between local short term uses of the environment
and the maintenance and enhancement of long-term productivity. This
should include a description of the extent to which the action
involves tradeoffs between short term environmental gains at the
expense of long term gains or vice-versa, and the extent to which
the proposed action forecloses future options. Special
attention should be given to effects which narrow the range
of future uses of land and water resources or pose long-term
risks to health or safety.
c. Irreversible and irretrievable commitments of resources.
An evaluation should be made of the extent to which the
proposed action requires commitment of construction materials,
man-hours, energy and other resources, and curtails the range
of future uses of land and water resources.
d. Steps to minimize adverse effects. Structural and
nonstructural measures, if any, should be described to
mitigate or eliminate significant adverse effects on the
human and natural environments.
4.6 Step 6: Preliminary Design of Treatment Works
Preliminary engineering designs will be prepared in accordance with
references p, q, and y for those treatment works proposed for initial
construction and scheduled for preparation of drawings and specifica-
tions. Such information would include, as appropriate, a schematic
flow diagram, unit processes, plant site plans, sewer pipe plans and
profiles, and design data regarding detention times, flow rates, sizing
of units and so forth. It would also include a summary of requirements
for operation and maintenance of the treatment works. Cost estimates
for final design, preparation of plans and specifications, and
construction of the treatment works, together with a schedule for
completion of all such work, should be presented.
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4.7 Step 7: Arrangements for Implementation
Following selection of plan and design, existing institutional arrange-
ments should be reviewed and a financial program developed, including
preliminary allocation of the costs among various classes of users of the
system (see Appendix B). Agreement should be reached among participating
entities on arrangements for implementing the plan. The State and Regional
Administrator may approve the plan, however, even in the absence of final
agreement on such arrangements.
A preliminary plan of operation should be prepared to provide for
staffing, management, training, sampling and analysis for effective operation
and maintenance of the facility.
5. PUBLIC PARTICIPATION
5.1 Introduction
Minimum requirements for the public role in facility planning are
described in the Construction Grants regulation (Appendix B) and the regu-
lation entitled "Public Participation in Water Pollution Control" (refer-
ence f). The public should participate from the beginning in facility
planning so that interests and potential conflicts may be identified early
and considered as planning proceeds.
5.2 Relationships between Planner and Public
The planner should define issues and analyze information so that the
public will clearly understand the costs and benefits of alternatives
considered during the planning process. He also should ensure that the
interests of a broad spectrum of the public are represented in the
planning process.
The public can be involved through a variety of means, including the
following:
-advisory groups -public hearings -news media
-information contacts -task forces -speeches
-correspondence -workshops -seminars
-interviews -exhibitions -depositions
-liaison with citizen -mailings -surveys
groups
-public meetings -newsletters -polls
5.3 Requirement for Public Hearings
A public hearing must be held on the facility plan unless EPA has
waived the requirement in advance (see section 35.917-5 of Appendix B).
The location of the hearing should be easily accessible and facilitate
attendance and testimony by a cross-section of interested or affected
organizations and interests. Notice will generally be given at least
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thirty calendar days before the hearing is to be held to obtain formal
comments of all concerned interests on the alternative proposals. It
is suggested that the notice include mention of where information on
the facility plan may be obtained before the hearing.
5.4 Summary of Pub!ic Participation
A report summarizing public participation should be prepared and
submitted as part of the facility plan. It should as a minimum contain
a brief description of the views expressed at any public hearings held
on the project. It also may describe other measures taken to provide
for, encourage concerned interests; and the disposition of the issues
raised.
6. EVALUATION OF COSTS
6.1 Introduction
Appendix A to the construction grants regulation (see Appendix B in
this guidance) describes basic methodology for calculation of direct mone-
tary costs. This chapter provides supplemental guidance for applying this
methodology in practice.
6.2 Sunk Costs
Appendix A to the construction grants regulation provides comprehensive
instructions for cost evaluation, except with respect to sunk costs. Any
investments or commitments made prior to our concurrent with facility
planning will be regarded as sunk costs and not included as monetary costs
in the plan. Such investments and commitments include:
a. investments in existing wastewater treatment facilities and
associated lands even though incorporated in the plan.
b. outstanding bond indebtness.
c. cost of preparing the facility plan.
6.3 Present Worth and Equivalent Annual Costs
The following examples show how to calculate present worth and equiva-
lent annual costs for a project. Present worth may be thought of as the
sum, which if invested now at a given rate, would provide exactly the funds
required to make all necessary expenditures during the life of the project.
Equivalent annual cost is the expression of a non-uniform series of expen-
ditures as a uniform annual amount to simplify calculation of present worth.
Detailed procedures for making these calculations are well known and ex-
plained in such books as Principles of Engineering Economy by Eugene L.
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Grant and W. Grant Ireson (reference aa), and Economics of Water Resource
Planning by L. Douglas James and Robert Lee (reference bb).
The three cases described below include: (1) a simplistic one, assuming
constant 0 & M costs; (2) a case with varying 0 & M costs; and (3) a third
case assuming varying 0 & M, phased construction and a positive salvage value.
Note that the second and third cases actually compare two alternatives for
treating a given community's waste.
In order to perform the following analysis, you will need a table of
7.0 percent compound interest factors and a table of factors to compute
the present worth of a gradient series. These tables may usually be found
in an engineering economics textbook.
The interest rate of 7.0 percent is used for these examples only. The
actual interest rate which must be used for evaluating costs in a facility
plan is published annually by the United States Water Resources Council
(see reference 1).
6.4 Example 1: Constant 0 & M Costs
GIVEN:
sewage treatment plant #1
capacity: 10 mgd
average flow through plant: 9 mgd
planning period: 20 years
salvage value at the end of 20 years: $0
initial cost of plant: $3 million
average annual operation and maintenance cost: $190,000
interest rate: 7.0 percent
DETERMINE: Present worth and equivalent annual cost of this plant
over 20 years.
METHOD: Present worth equals initial cost plus the present worth of
the operating and maintenance costs. Equivalent annual
costs equals the present worth times the appropriate
capital recovery factor.
Step 1
Initial cost = $3,000,000
Step 2
Present worth of annual 0 & M cost equals annual 0 & M costs times
the uniform series present worth factor @ 7.0% for 20 years. Thus:
$190,000 (10.594) = $2,013.000
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Step 3
Sum of numbers obtained in the above steps yields present worth
initial cost = $3,000,000
present worth of 0 & M cost = $2,013.000
present worth = $5,013,000
Step 4
To find equivalent annual cost, multiply present worth obtained
above times the capital recovery factors @ 7.0% for 20 years. Thus:
$5,013,000 (.09439) = $ 474.000
is the average annual equivalent cost of the plant over 20 years.
6.5 Example 2: Varying 0 & M Costs
GIVEN:
sewage treatment plant #2
capacity: 10 mgd
average flow through plant: increase linearly from 2 mgd to
10 mgd over 20 years
planning period: 20 years
salvage value at end of 20 years: $0
initial cost of plant: $3,000,000
constant annual operation and maintenance cost: $126,000
variable annual operation and maintenance cost: increases
linearly from $0 to $68,000 in year 20
interest rate: 7.0 percent
DETERMINE: Present worth and average annual equivalent cost of this
plant over 20 years.
METHOD: Present worth equals the sum of initial cost, present worth
of constant 0 & M cost, and the present worth of the
gradient series of the variable 0 & M cost. Equivalent
annual cost is derived as in the first case.
Step 1
Initial cost = $3.000,000
Step 2
To find the present worth of operating costs, it will be necessary
to calculate the present worths of the constant costs and the
variable costs separately.
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a. Present worth of constant annual costs equals that cost times
the uniform series present worth factor @ 7.0% for 20 years. Thus:
$126,000 (10.594) = $1.335.000
b. Present worth of a variable cost increasing linearly is found
by first finding the amount of increase per year. This amount is
$68,000/20 years or $3,400 per year. This increase is known as a
gradient series. This series times the correct gradient series
present worth factor @ 7.0% for 20 years yields the present worth
of the variable cost. Thus:
$3,400 (77.5091) = $ 264.000
Step 3
Sum of numbers obtained in the steps above yields present worth:
initial cost = $3,000,000
present worth of constant 0 & M costs $1,335,000
present worth of variable 0 & M costs $ 264.000
present worth = $4,599,000
Step 4
As before, the present worth just derived times the capital recovery
factor @ 7.0% for 20 years will yield the average annual equivalent
cost. Thus:
$4,599,000 (.09439) = $ 434.100
which is the average annual equivalent cost of the plant for 20
years.
6.6 Example 3: Varying 0 & M Costs. Phased Construction, and Salvage Value
GIVEN:
sewage treatment plant #3
capacity: years 1-10, 5 mgd; years 11-20, 10 mgd
average flow through plant: increases linearly from 2 mgd to 10
mgd over 20 years
planning period: 20 years
salvage value at the end of 20 years: $750,000
initial cost of plant (5 mgd): $2,000,000
cost to upgrade at year 10 to 10 mgd: $1,500,000
operation and maintenance costs:
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a. constant annual 0 & M cost, years 1-10: $84,000
b. variable annual 0 & M cost, years 1-10: increases linearly
from 0 - $29,000 in year 10
c. constant annual 0 & M cost, years 11-20:
d. variable annual 0 & M cost, years 11-20:
from 0 to $29,000 in year 20
interest rate: 7.0 percent
$165,000
increases linearly
DETERMINE: Present worth and annual equivalent cost of this plant
over 20 years.
METHOD: Present worth is derived as in the previous example; however,
this time calculate 0 & M costs from year 1 to 10 and 0 & M
costs from year 11-20 separately. It is necessary also to
add the present worth of the expansion and subtract the
present worth of the salvage value from the present worth
of the costs. Average annual equivalent costs are
calculated as before.
Step 1
Initial cost =
Step 2
$2.000.000
Calculate the present worth of the 0 & M costs as follows:
a. Present worth of constant annual cost years 1-10 equals given
cost times uniform series present worth factors @ 7.0% for 10
years. Thus:
,000 (7.024) =
$ 590.000
b. Present worth of the variable 0 & M costs years 1-10 equals
the gradient series ($2900) times the present worth factor of a
gradient series @ 7.0% for 10 years. Thus:
$2,900 (27.7156) =
$ 80,400
c. The present worth of the constant 0 & M costs year 11-20
are first calculated as in (a) above using the given cost for
years 11-20. This, however, yields present, worth in year 11 which
must be converted to present worth in year 1. This is accomplished
by multiplying the present worth (year 11) times the single payment
present worth factor @ 7.Q% for 10 years (.5083). Thus, present
worth in year 1 equals:
$165,000 (7.024)(.5083) =
$ 589,100
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d. The present worth of the variable 0 & M costs years 11-20
are first calculated as in (b) above using the gradient series for
years 11-20 which is $2900. This yields the present worth in year
11 which again must be converted to present worth in year 1 by
multiplying the present worth (year 11) times the single payment
present worth factor @ 7.0% for 10 years (.5083). Thus:
$2,000 (27.7156)(.5083) = $ 40.900
Step 3
To determine the present worth of the upgrade cost which occurs
at year 10, multiply the upgrade cost times the single payment
present worth factors @ 7.0% for 10 years. Thus:
$1,500,000 (.5083) = $ 763,000
Step 4
The present worth of the salvage value at the end of 20 years
equals that value times the single payment present worth factor
@ 7.0% for 20 years. Thus:
$750,000 (.2584) = $ 194.000
Step 5
The sums of the values obtained in Steps 1, 2, and 3 minus the
value obtained in Step 4 will equal the present worth of the
plan. Thus:
initial cost = $2,000,000
present worth of constant 0 & M year
1-10 590,000
present worth of variable 0 & M year
1-10 = $ 80,400
present worth of constant 0 & M year
11-20 = $ 589,100
present worth of variable 0 & M year
11-20 = 40,900
present worth of upgrade at year 10 = $ 763,000
TOTAL $4,063,400
Subtract from the total the present worth of salvage value
present worth of salvage value = - $ 194,000
present worth of plant = $3,869,400
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Step 6
As before, the present worth just derived times the capital
recovery factor @ 7.0% for 20 years will yield the average
annual equivalent cost. Thus:
$3,869,400 (.09439) = $ 365,200
which is the average annual equivalent cost of the plant over
20 years.
7. ENVIRONMENTAL EVALUATION
7.1 purpose
This part summarizes the requirements for evaluation of environmental
impacts in the facility planning process and describes the reasons for
these requirements.
The environmental evaluation serves two purposes:
a. to provide comparative data to assist selection of the best
alternative plan.
b. to meet the requirements for an environmental assessment in the
regulation published by EPA, "Preparation of Environmental Impact
Statements" (reference a).
7.2 Facility Planning and the Environmental Assessment
The facility plan should contain sufficient information to meet the
requirements for an environmental assessment in reference a. Environmental
considerations should be addressed during each step of the facility planning
process. A separate section of the plan, however, should summarize environ-
mental considerations.
7.3 Environmental Impact Statements
The Regional Administrator may determine while the facility plan is
in preparation or after it is completed and submitted to EPA for approval
that the project is highly controversial or may have significant adverse
environmental effects. EPA will prepare an environmental impact statement
in these cases in accordance with the regulation, "Preparation of Environ-
mental Impact Statements" (reference a). The applicant may be asked to
provide supplemental information on the project to assist with preparation
of the Environmental Impact Statement.
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7.4 Environmental Considerations
The facility plan should contain a summary of environmental
considerations. The summary should include references to other portions
of the plan where these considerations are discussed in more detail.
The following are the major topics to be discussed in the summary:
a. Description of the existing environment without the project
(see Section 4.2.2 in this Guidance).
b. Description of the future environment without the project
(see Section 4.3.5).
c. Evaluation of alternatives (see Section 4.4.4).
d. Environmental impacts of the proposed action, including steps
to minimize adverse effects (see Section 4.5.2).
8. PLAN SELECTION
8.1 Introduction
This chapter discusses the principal considerations for selecting
a plan. It assumes that each of the alternatives being compared would,
if implemented, result in compliance with all the applicable regulatory
requirements (i.e., effluent limitations, load allocations, compliance
schedules, and so forth).
8.2 Comparison and Ranking of Proposals
Plan selection will involve making choices among alternatives based
on a display of the significant costs, effects and benefits of each.
Common units are lacking for measuring environmental, social, economic
and other costs, and therefore selection of the most cost-effective
alternative requires careful judgment.
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Figure 1 provides an example of how costs and effects may be dis-
played. The effects should be listed, wherever possible, in quantitative
terms, and be based on the supporting analysis elsewhere in the plan.
Where quantification is not possible, the comparison should be made by
brief narrative description.
The alternatives may be ranked after they are displayed to aid final
selection of a plan.
The following are suggestions on the ranking procedure:
a. Environmental effects: All significant primary and secondary
effects should be weighed to derive a value judgment as to the net
overall effect of each alternative relative to other plans. Alter-
natives which have secondary effects with a high potential for con-
travening an environmental or land-use statute or regulation, or
plan imposed by such statute or regulation should be ranked below
those which do not.
b. Monetary costs: Total costs should be the primary factor in
determining the cost-effectiveness of the plan.
c. Implementation capability: The ability of and agreement among
the State, regional and local governmental units or management
agencies to implement the alternatives should be weighed carefully.
The necessary institutions must exist or be created in time to carry
out the plan, and the local governmental unit must be capable of
bearing the local share of the costs.
d. Other considerations: Each plan must meet applicable regulatory
requirements, and design and reliability criteria. Performance
better than these minimal standards should not be taken into account
when selecting an alternative unless environmental and monetary costs
and benefits, and the feasibility of implementing the alternatives
are roughly equal. Other considerations, in other words, may be used
to break ties.
These other considerations include the contribution to water
quality objectives beyond regulatory requirements, reliability,
use of resources and energy, and public acceptability.
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Figure 1
COSTS AND BENEFITS OF ALTERNATIVE PROPOSALS
PROPOSALS
A i
Environmental Effects
a. Primary
b. Secondary
Monetary Costs
a. Capital costs
1. public
2. total
b. 0 & M costs
1. public
2. total
c. Net revenue (public)
d. Average annual costs
1. public
2. total
Implementation Capability
a. Institutional
b. Financial
c. Legal
Other considerations
a. Contributions to Water Quality
Objectives and Other Water Management Goals
b. Energy and Resources Use
1. Energy (power)
2. Chemicals
3. Land commitment for planned features
c. Reliability
1. Frequency of plant upsets
2. Frequency of spills
3. Frequency of effects of combined
sewer overflows
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9. FORMAT FOR SUBMISSION OF PLAN
9.1 Outline of Plan
The following outline for the plan is suggested. It meets the require-
ments of the Construction Grants regulation (Appendix B) and follows the
planning steps presented in this guidance. Items inapplicable to a
specific case may be deleted.
1. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
2. INTRODUCTION
2.1 Study Purpose and Scope
2.2 Planning Area (Map)
3. EFFLUENT LIMITATIONS (Section 4.1)
4. CURRENT SITUATION (Section 4.2)
4.1 Conditions in Planning Area
4.1.1 Planning area description
4.1.2 Organizational context
4.1.3 Demographic and land-use data
4.1.4 Water quality and uses
4.1.5 Other environmental conditions
4.2 Existing Wastewater Flows and Treatment Systems
4.3 Infiltration and Inflow
4.4 Performance of Existing System
5. FUTURE SITUATION (Section 4.3)
5.1 Land Use
5.2 Demographic and Economic Projections
5.3 Forecast of Flow and Waste Load
5.4 Future Environment of the Planning Area Without the Project
6. ALTERNATIVES (Section 4.4)
6.1 Optimum Operation of Existing Facilities
6.2 Regional Solutions
6.3 Waste Treatment Systems
6.4 Evaluation (monetary, environmental, implementation)
7. PLAN SELECTION (Section 4.5)
7.1 Views of Public and Concerned Interests on Alternatives
7.2 Evaluation and Ranking of Proposals
7.3 Selected Plan (major feature summary) and Reasons for Selection
7.4 Environmental Impacts of Selected Plan
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8. COST ESTIMATES, PRELIMINARY DESIGNS (Section 4.6)
8.1 Description of Design, with Maps
8.2 Summary of Cost Estimates
9. ARRANGEMENTS FOR IMPLEMENTATION (Section 4.7)
9.1 Institutional Responsibilities
9.2 Implementation Steps
9.3 Operation and Maintenance
9.4 Financial Requirements
10. SUMMARY OF ENVIRONMENTAL CONSIDERATIONS (Section 7)
10.1 Existing Environmental Conditions
10.2 Future Environment Without the Project
10.3 Evaluation of Alternatives
10.4 Environmental Effects of Selected Plan
9.2 Appendices
The following information, cross-referenced in the text of the
plan, may be placed in appendices:
a. Preliminary designs, technical data and cost estimates for
alternatives.
b. Agreements, resolutions and comments.
c. Supplemental engineering feasibility data on the details of
the adopted plan.
d. Infiltration/inflow analyses.
e. Sewer evaluation surveys.
f. Copy of the permit for the facility.
For a simple planning situation, the information included in items
(a) and (c) may be incorporated in the main report.
The technical appendices (item c above) should include, but not
necessarily be limited to:
a. description of the configuration of collector and interceptor
systems, profiles, sizes and cost breakdowns.
b. treatment plant data, including site plan, layouts of unit
processes, flow charts, design and performance data.
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10. REVIEW, CERTIFICATION AND APPROVAL OF PLANS
10.1 Purpose
This chapter describes the administrative procedures and requirements
for submission of a facility plan (and revisions thereof) to State receiving
agencies and to EPA. It also describes the actions States and EPA take on
the plan.
10.2 Three Levels of Review
The three levels of review of a facility plan are as follows:
a. review by a clearinghouse of interested agencies at the local
level as required by Circular A-95, "Federal and Federally Assisted
Programs and Projects", of the Federal Office of Management and
Budget (reference z).
b. review by the State for compliance with State requirements, and
Federal statutory and regulatory requirements.
c. review by EPA for compliance with Federal requirements.
10.3 Compliance with OMB Circular A-95
EPA will not conduct a final review of an application for a grant to
conduct facility planning or completed facility plans for approval unless
the agency submitting the grant application or plan to the State and EPA
has first complied with all applicable requirements of OMB Circular A-95
(reference z).
10.4 Submission to State
The agency desiring review and approval of a facility plan shall
submit the following documents to the State Water Pollution Control
Authority or its equivalent:
a. Four (4) copies of the facility plan
b. Two (2) copies of all relevant documents required by OMB
Circular A-95
c. One (1) original and one (1) copy of a letter from the chief
official of the agency preparing the plan. The letter should request
review and approval and state:
1. that the agency has met all requirements for public
participation relating to the plan;
2. the names of all jurisdictions within the planning area
which either oppose the plan or have failed to approve the plan.
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10.5 Submission to EPA
EPA will review for approval only those facility plans which have
received State approval and are properly submitted to the appropriate
regional office by the chief official of the State Water Pollution Control
Authority having jurisdiction over the planning area. The following docu-
ments should be submitted to EPA by the State:
a. a letter signed by the chief official of the State Water Pollu-
tion Control Authority requesting review and approval, and certifying
that:
1. the plan conforms with the requirements of the construction.
grants regulation (Appendix B)
2. the plan conforms with the applicable basin plan prepared
or being prepared in accordance with reference i.
3. the concerned areawide planning agency, if any, has been
afforded the opportunity to comment on the plan, and the plan
conforms with any completed areawide plan which has been approved
in accordance with the requirements of section 208 of FWPCA.
b. Two (2) copies of the plan
c. One (1) copy of the letter from the local agency to the State
required under paragraph 10.4 above.
10.6 Revisions to Plans
Facility plan should be reviewed regularly and brought up to date
as required by changing conditions. As a minimum, a facility plan which
has served as the basis for award of a Step 2 or 3 grant shall be reviewed
by the State prior to application for any subsequent Step 2 or 3 grant to
determine if substantial changes have occurred which warrant revision or
amendment of the plan. The plan should then be revised or amended as
necessary.
Revisions to the plan should be accompanied by a statement on the
status of implementation of the plan as of the date of the revision. The
appropriate EPA Regional Administrator, A-95 Clearinghouse, and State
should be notified at least 30 days in advance of initiating a modification
to a plan. Processing of revised plans will follow the procedures as
outlined above.
10.7 EPA Review
The review by EPA will ascertain that the requirements of FWPCA and
applicable amendments are met, including specific determination that:
a. the plan is consistent with existing State and NPDES permits.
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32
b. the plan is consistent with the requirements of the applicable
final plan prepared under reference i, "Preparation of Water
Quality Management Basin Plans."
c. the plan is consistent with any completed areawide plan approved
in accordance with section 208 of FWPCA.
d. all requirements for public participation have been met.
e. the plan will provide for secondary treatment, as a minimum, as
well as appropriate application of Best Practicable Waste Treatment
Technology in accordance with technical criteria established by EPA,
or for more stringent treatment levels required to meet water quality
standards.
f. the plan is cost-effective and environmentally sound.
g. excessive infiltration/inflow does not exist, or that a detailed
sewer evaluation survey and necessary sewer rehabilitation measures
will be accomplished in accordance with the Construction Grants regu-
lation (Appendix B).
h. implementation of the plan is institutionally feasible within
the time period proposed.
i. the plan is compatible with facility plans and completed and
approved areawide plans developed for contiguous areas of other States.
j. the plan includes an adequate environmental assessment.
k. the treatment works will comply with applicable requirements of
the Clean Air Act and other applicable environmental laws and
regulations.
10.8 EPA Approval
The EPA Regional Administrator has authority to approve any facility
plan submitted to him by a State within his region.
After review of a properly submitted plan or amendment and compliance
with the requirements of the National Environmental Policy Act (see
reference a), the EPA Regional Administrator will notify the chief official
of the appropriate State Water Pollution Control Authority of his concurrence
and approval, or the EPA regional office will work closely with the State to
provide advice to the municipality on how the plan may be improved so that
approval will be possible.
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APPENDIX A - REFERENCES
-------
APPENDIX A - REFERENCES
A.I FEDERAL REGULATIONS
a. 40 CFR Part 6, "Preparation of Environmental Impact Statements,"
Federal Register. Vol. 40, No. 72, April 14, 1975, pp. 16811-16827
b. 40 CFR Part 35, Subpart B, "State and Local Assistance", Federal
Register. Vol. 38, No. 125, June 29, 1973, pp. 17219-27225
c. 40 CFR Part 35, Subpart E, "Grants for Construction of Treatment
Works—Federal Water Pollution Control Act Amendments of 1972", Federal
Register, Vol. 39, No. 29, February 11, 1974, pp. 5252-5270
d. 40 CFR Part 35, Subpart E, Appendix A "Cost Effectiveness Analysis
Guidelines", Federal Register, Vol. 38, No. 174, September 10, 1973, pp.
24639-24640
e. 40 CFR Part 35, Subpart E, Appendix B "User Charges and Industrial
Cost Recovery", Federal Register. Vol. 38, No. 161, August 21, 1973, pp
22524-22527
f. 40 CFR Part 105, "Public Participation in Water Pollution Control",
Federal Register, Vol. 38, No. 163, August 23, 1973, pp. 22756-22758
g. 40 CFR Part 128, "Pretreatment Standards", Federal Register, Vol. 38,
No. 215, November 8, 1973, pp. 30982-30984
h. 40 CFR Part 130, "Policies and Procedures for State Continuing
Planning Process", Federal Register, Vol. 39, No. 107, June 3, 1974, pp.
19634-19639
i. 40 CFR Part 131, "Preparation of Water Quality Management Basin
Plans", Federal Register. Vol. 39, No. 107, June 3, 1974, pp. 19639-19644
j. 40 CFR Part 133, "Secondary Treatment Information", Federal Register.
Vol. 38, No. 159, August 17, 1973, pp. 22298-22299.
k. 40 CFR Part 220-227, "Ocean Dumping, Final Regulations and Criteria",
Federal Register, Vol. 38, No. 198, October 15, 1973, pp. 28609-28621.
1. 18 CFR 704.39, "Discount Rate", Federal Register, Vol. 39, No. 158,
August 14, 1974, p. 29242. (Published annually under this title by U.S.
Water Resources Council)
m. 50 CFR Part 17, "Conservation of Endangered Species and Other Fish
or Wildlife", Federal Register, Vol. 39, No. 3., January 4, 1974,
pp. 1171-1177
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A.2 EPA DOCUMENTS
o. "Alternative Waste Management Techniques for Best Practicable
Waste Treatment", Technical Information Report, U.S. EPA, March 1974
p. "Design Criteria for Mechanical, Electric, and Fluid System and
Component Reliability, Technical Bulletin, EPA-430-99-74-001
q. "Design, Operation and Maintenance of Wastewater Treatment Faci-
lities", Technical Bulletin, U.S. EPA, September 1970
r. "EPA Policy to Protect the Nation's Wetlands", Administrators
Decision Statement No. 4, Federal Register. Vol. 38, No. 84, p. 10834
s. "Evaluation of Land Application Systems", Technical Bulletin,
EPA-430/9-75-001, March 1975
t. "Guidance for Sewer System Evaluation", U.S. EPA, March 1974
u. "Guidelines for the Preparation of Water Quality Management Plans",
EPA, September 1974
v. "Manual for Preparation of Environmental Impact Statements for
Wastewater Treatment Works, Facilities Plans, and 208 Areawide Waste
Treatment Management Plans", U.S. EPA, July 1974
w. "Survey of Facilities Using Land Application of Wastewater", EPA-
430/9-73-006, July 1973
x. Water Quality Strategy Paper, second edition, "A Statement of
Policy for Implementing the Requirements of the 1972 Federal Water
Pollution Control Act Amendments and Certain Requirements of the 1972
Marine Protection, Research and Sanctuaries Act", U.S. EPA, March 1974
y. "Protection of Shellfish Waters," Technical Bulletin, EPA 430/9-74-010,
July 1974.
NOTE: A copy of the references listed in A.I and A.2 may be obtained from
the Regional Offices listed in Appendix C.
A.3 CIRCULARS, AND MISCELLANEOUS PUBLICATIONS
z. OMB Circular A-95, "Federal and Federally Assisted Programs and
Projects, " Federal Register, Vol 38., No. 228, November 28, 1973
aa. Grant, E.L. and Ireson, W.G., Principles of Engineering Economy,
5th Edition, New York: Ronald Press, 1970.
bb. James, L.D., and Lee, R., Economics of Water Resources, New York:
McGraw-Hill, 1971
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APPENDIX B - CONSTRUCTION GRANT REGULATION"
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MONDAY, FEBRUARY 11, 1974
WASHINGTON. D.C.
Volum* 39 • Numtor 29
PART IR
ENVIRONMENTAL
PROTECTION
AGENCY
WATER POLLUTION
CONTROL
i wfcuits
for Waste Treatment Works
Mo. 90—Pt. m 1
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5252
AMD tlOULATJONS
TKte 40—Protection of Envlronmont
CHAPTER t~€NVIRONMENTAI.
PHOTECTION AGENCY
MMCHAPTEII •—WANTS
PART 35—STATE AND LOCAL
ASSISTANCE
Final ComtrueHon dm* Regulations
Tltl* n of the Federal Water Pollution
control Act Amendments of 1972 (Pub.
L, 92-600, 39 U.8.C. 12S1 et seq.) au-
thorizes the award of construction grants
for waste treatment works. The award
of these grants creates a contractual
obligation of the United States for pay-
ment of the Federal share of the con-
struction costs of such projects.
Interim regulations were published In
the FIMRAL RIOXSTER for this program
on February 28, 1978 (3ft PR 0329).
Written comments receive* from Inter-
ested parties are on file with th» Envi-
ronmental Protection Agency. The
agency has carefully considered all com-
ments submitted by the public, as well
as comments made by EPA and State
Agency personnel on the basis of their
experience under the Interim construc-
tion grant regulations. A number of these
comments have been adopted or sub-
stantially satisfied by editorial changes
In, deletions from, or additions to this
subpart. An effort has baen made to con-
form the procedures and requirements of
the new grant system to the construction
grants program established under sec-
tion 8 of the prior Federal Water Pollu-
tion Control Act, as well as to ensure that
new statutory requirements will be met.
Major changes In this subpart are the
following:
(1) The three-step grant process has
been clarified to reflect that a basic grant
application Is submitted for the initial
award of grant assistance, and that sub-
sequent related projects will be funded
through amendment of this grant. In
addition, in accordance with section 2 of
Pub. L. 93-243, enacted December 28,
1973, the requirement that a Step 3 proj-
ect had to result In an "operable" treat-
ment works has been deleted. A project
may be awarded for any "segment" of
treatment works construction as that
term is defined in new 9 35.905-24, which
provides that a segment may consist of
any portion of the treatment works con-
struction associated with a discrete con-
tract or subcontract to be awarded for
Step 1, 2, or 3 project work.
(2) Section 35.915 has been revised
and expanded to explain more clearly
EPA requirements under Applicable stat-
utory provisions for State priority sys-
tems and the Interrelationship between
this subpart and regulations which have
been Issued under section 106 and 303(e)
of the Act. Each State will develop and
submit a single project priority list which
will remain In effect until a new list Is
approved as a part of the annual sec-
tion 106 State program submission;
once priority has been established for a
project, the project will retain this
priority until funded, unless the State
otherwise provides through Its priority
system, "ftro new provisions have also
been added. Section 35.815 (g) requires
that each State reserve not less than 5
percent of fiscal year 1975 and subse-
quent State allotments of contract au-
thority in order to adequately provide for
cost overruns 'which are being experi-
enced under the construction grant pro-
gram. .Section 35.915(1) permits (but
does not require) the State to establish a
separate reserve for grant assistance for
Step 1 and Step 2 projects whose selec-
tion for funding will be determined by
the State agency subsequent to approval
of the project Hat, since experience has
demonstrated that States require more
flexibility than is permitted by an an-
nual priority determination.
' (3) Facilities planning requirements
are set forth in new 8t 35.917 through
35.917-9. In order to permit a transition
into these'new requirements, full com-
pliance with substatutory requirements
will not be required except with reepect
to Step 1 work which is Initiated alter
April 80, 1974. After October 31, 1974, a
"plan of study!' must be approved prior
to the Initiation of Step 1 work. These
new procedures are designed to assure
better accomplishment of the objectives
of the new Federal Water Pollution Con-
trol Act and collateral statutory re-
quirements (such as the National En-
vironmental Policy Act of 1969). These
statutory requirements must be ad-
dressed by the applicant during the
facilities planning process.
(4) New procedures have been estab-
lished in revised I 85.927-5 to assure that
the Infiltration/Inflow requirements de-
rived from section 201 (g) (3) and (4)
of the 1872 FWPCA Amendments are
met without unnecessary documentation
and expense. t
(5) New provisions in §5 35.925-18 and
85.905-4 delineate the Agency's position
with respect to the initiation of project
construction prior to the award of grant
assistance for Steps 1,2, or 3. Section 206
of the FWPCA Amendments of 1872
clearly precludes the type of reimburse-
ment previously authorized under section
8 of the former FWPCA with respect to
projects (as defined under the program
authorized by the prior statute) on
which construction was initiated after
June 30, 1972. Due to the institution of
the three-step grant process under the
new FWPCA, it has become necessary
to address the issue of reimbursement
with respect to "initiation of construc-
tion" (as defined in 35.905-4) for Steps
1 and 2. For this reason, and to permit
better program management by EPA and
State agencies, and to permit better ac-
complishment of statutory objectives,
procedures are set forth In 135.925-18
which will phase out the possibility of a
reimbursement claim. Eligible'Stop 1 or
Stop 2 project work initiated prior to
November 1, 1974, will be fully reim-
bursed in conjunction with the next
award of grant assistance, if reimburse-
ment to requested (see J36.945(a)).
Prior approval will be required with re-
spect to Step 1 and Step 2 work which
is initiated after October 31, 1974. Step
1 or Step 2 work initiated after June 30,
1875. must be preceded by award of
•rant assistance or, in the case of Step
1 work, prior approval of a plan of study
accompanied by reservation of funds for
the grant award.
'State agencies are requested to fur-
nish detailed comment through EPA
Regional Administrators with respect to
any difficulties which may be encoun-
tered In the application of { 35.925-18.
This section will be revised, if necessary,
to permit an orderly transition into a
fully nonreimbursable program and at
the same time to assure that the develop-
ment of projects necessary to comply
with applicable effluent and water quality
related requirements will not be hindered.
(«) Section 35J80-4 has been added to
clarify the extent of the Federal Gov-
ernment's obligation to pay 75 percent
of approved project costs. The Section
emphasizes the grantee's obligation to
notify EPA and the State of unavoidable
cost overruns and to avoid the incur-
rence of costs in excess^of the approved
grant amount, which operates as a cell-
ing upon Federal participation until and
unless revised through funding of grant
amendments from State allotments, for
project changes for which timely notifi-
cation has been received. The statutory
provision for funding of this program
solely through a system of 8tate-by-
Btate allotments operates to limit the
possibility of funding for cost overruns
incurred under these grants In a more
rigid manner than cost overrun fund-
Ing under Federal contracts; cost over-
runs under these grants must be funded
from State allotment*, In addition to
the funding ot new projects.
(7) Section 39.908 has been restated to
encourage more explicitly the use of ad-
vanced technology and accelerated con-
struction techniques. The section now
provides that"* * * processes or methods
which have been successfully demon-
strated under lees than full scale condi-
tions may be utilized In the construc-
tion of treatment works • * »." Under the
interim regulations, only processes which
had been demonstrated under "compa-
rable" conditions could be used.
(8) New 180,938 codifies EPA proce-
dures pertaining to the award of con-
struction contracts by grantees during
Step 3. The baste intent of these proce-
dures is to assure free and open com-
petition among bidders and to assure
compliance with the nonrestrfctlve speci-
fication requirement of section 204 (a)
(6) of the Act Section 35.937 which
would address procurement by grantees
of professional and personal services, is
being separately Issued as a proposed
regulation, which will not be effective
until an interim or final regulation is
adopted.
In addition, a considerable number of
technical revisions have been made
throughout the subpart. Accordingly, for
the convenience of users, the entire
subpart is being republished.
Construction grant regulations adopt-
ed under See&m 8 at the former FWPCA
UOISTU. VOL )•, NO. 2»—MONDAY, MHUAIY II, 1974
-------
REGULATIONS
(135.800 et sea. of this part) remain In.
effect and are applicable to construc-
tion grants awarded prior to January 1,
1973. under the authority of section 8.
This Subpart E establishes policies and
procedures applicable only to construc-
tion grant awards from fiscal year 1973
and later contractual obligation author-
ity allotments under Title H of tb»
FWPCA Amendments of 1972.
Regulations have been promulgated
separately as Subpart D of this part to
Implement the reimbursement provisions
of section 206 of the 1972 FWPCA
Amendments.
This subpart is promulgated as a final
regulation and will replace the interim
regulations previously promulgated.
However, because of the numerous
changes and additions which have been
made throughout this subpart, public
comment is again Invited. In particular,
comment is invited upon the new provi-
sions of the following sections: 35.903,
86.908, 36.91S, 36.917 to 35.917-9, 35.930-6,
35.938, 35.939, and 36.960. Interested
parties are encouraged to submit written
comments, views, or data concerning tola
subpart to the Director, Grants Admin-
istration Division, Environmental Pro-
tection Agency, Washington, D.C. 20460.
All such submissions received on or be-
fore April 16, 1974, wffl be considered
with respect to the need for amendment
of this subpart.
Effective date. This subpart shall be-
come effective February 11,1974. All EPA'
construction grants awarded pursuant to
sections 109(b) and 201 (g)(l) shall be
subject to this subpart. It la necessary
that this subpart take effect Immediately
in order to accomplish the objectives of
the Act and to assure optimum achieve-
ment of the efiuent and water quality
objectives established pursuant to the
Act.
Dated: February 4, 1974.
RUSSXLL E. TRAIN,
Sec.
15.006-33
aftJMB-iS
86J06-44
3&B08-36
85406-3M
85,908.
36.010
86.910-1
85*10-2
35410-*
30.910-1
35.012
36.015
35.017
88.017-1
35.917-2
35.017-3
36.017-4
38.917-8
35.017-6
36.017-7
35.917-6
35.917-0
36.920
36.920-1
35.020-2
36.920-3
36.925
36.935-1
36.926-2
36.926-3
36.926-4
36.026-6
36.926-«
85.025-7
85.926-4
3A.926-8
85.095-10
36.925-11
88.026-13
80.928-18
35.025-14
36.926-18
36.025-10
96.926-17
Bluriu seiM
Treatment
35.935-0
Administrator. 36.925-16
Bubpurt E—Brant* for Conttruetton of Treatment
Work*—Federal Water FDdutlofl Control Act
Amendment* of 1972
Bee.
86.90ft. Purpose.
86.003 Summary of construction grant
program.
86.008 Definitions.
85.006-1 The Act.
88.906-2 Combined eewer.
38.906-3 Complete waste treatment system.
36.906-4 Construction.
85.906-8 Excessive Infiltration/Inflow.
86.005-6 Industrial cost recovery.
86.906-7 Industrial coot recovery period.
86.008-8 Industrial user.
36.906-0 Infiltration.
86.905-10 Infiltration/Inflow.
86.008-11 Inflow.
35.906-12 Interceptor sewer.
86.006-18 Interstate agency.
86.008-14 Municipality.
86.006-16 Operable treatment works.
85.006-16 Project.
36.906-17 Replacement.
36.005-18 Sanitary sewer.
88.S06-10 Sewage collection system
85*06-80 State.
S6.M6-8I State agency.
86.026-10
38.027
36.927-1
36.927-2
35.027-8
36.927-4
35.037-6
35.918
36.928-1
86.928-3
35.930
36.030-1
35.930-4
36.030-8
36.980-4
36.930-t
86.930-6
36.936
35.036-1
36.096-1
S8.936-4
86.086-4
38,986-8
86.998-6
80.936-7
»«.0*6-B
User charge.
Advanced technology and
ated construction
Allocation of funds.
Allotment.
Beallotment.
Fiscal Tears 1078 and 1074 allot-
ments.
Fiscal year 1078 allotments.
Delegation to State Ag«an«<«^
State determination of project
priority list.
Facility planning (Step 1).
Content of faculties plan.
State responsibilities.
Federal assistance.
Planning scope and detail.
Public participation.
Acceptance by implementing gov-
ernmental unite,
State review and certtftcatton of
facilities plan.
Submission and approval of facfl-
ttlesptan.
Revision or amendment of facul-
ties plan.
Grant application.
Eligibility.
Procedure.
Contents of application.
Limitations on award.
Facilities planning.
Basin plan.
Priority determination.
State allocation.
Funding and other capabilities.
Permits.
Design.
Environmental review.
Civil Rights.
Operation and maintenance pro-
gram.
User cbargee.
Industrial coat recovery.
Sewage collection system.
Compliance with Environmental
Laws.
Treatment of Industrial•
Federal activities.
Retained amounts for n
tlon and expansion.
Limitation upon project costs in-
curred prior to award.
Section 206: Agencies aad plane.
Sewer system evaluation and re-
habilitation.
Infiltration/Inflow analj»!s.
Sewer eyglein evaluation survey.
Rehabilitation.
Sewer use ordinance.
Project procedures.
Industrial cost recovery.
Recovered amounts.
Retained amounts.
Award of grant assistance.
Types of projects.
Orant amount.
Orant term.
Project scope.
Federal share.
Limitation on Federal share.
Orant conditions.
Non-Federal construction costs.
Procurement; nonrestrietri* spso-
incations.
Bonding and insurance.
State and local laws.
Davis-Bacon and related statutes.
Bqual employment oppovfeuUty.
Supervision.
Project completion.
Copies of ooatraet documents,
86486-U Project changes.
dtt»93sV~lft OpOTfttiOU yfMJ &a»fcil*4t6vtMsll06.
35.936-13 User charges and Industrial cost
recovery.
86.086-14 Final Inspection.
86.036-16 Utilisation of small and minority
businesses.
86.936-16 Sewer use. ordinance and evalu-
ation/rehabilitation program.
86.085-17 Training faculty.
35.087 Contracts for personal and pro-
fessional services [Reserved].
88.038 Construction contracts of grant-
ees.
38.936-1 Applicability.
36.988-2 Performance by contract.
86.93B-8 Type of contract.
36.038-4 Formal advertising.
35.938-6 Negotiation.
38.939 Compliance with procurement re-
quirements.
36.040 Determination of allowable costs.
36.040-1 Allowable project costs.
35.040-3 Unallowable costs.
36.040-8 Costa allowable. If approved.
38.940-4 Indirect caste.
36.040-6 Disputes concerning allowable
costs.
36.045 Grant payments.
36.960 Suspension or termination of
grants.
36.966 Grant amendments to Increase
grant amounts.
36.000 Disputes.
AUTHOBXTT: Sees. 100(b), 201 through 206,
207, 210 through ua, and 5O1(»), 809, and
511 of Pub. Lr92-600 (86 Btat. H* 88 UJS.C.
1261) as amended by Pub. L. 96-348.
8 35.900 Purpose.
This subpart supplements the EPA
general grant regulations and procedures
(Part 30 of this chapter) and establishes
policies and procedures for grants to as-
sist the construction of publicly owned
waste treatment works in compliance
with the Federal Water Pollution Control
Act
S 35.903 Summary of construction grant
program.
(a) The construction of Federally fi-
nanced waste treatment works is gener-
ally accomplished In three steps: Step
1 facilities plans and related elements;
Step 2 preparation of construction
drawings and specifications; and Step
3 fabrication and building of a treat-
ment works.
(b) The Regional Administrator may
award grant assistance for a Step 1, Step
2, or Step 3 project, or, under special
conditions, for a project involving a com-
bination of Steps 2 and 3. A "project"
(see { 35.905-16) may consist of an en-
tire step or any "segment" (see I 35.905-
24) of construction within a step.
(c) Grants an awarded from State al-
locations (see 135.910) pursuant to stat-
ute. No grant assistance may be awarded
unless priority for a project has been de-
termined In accordance with an approved
State priority system pursuant to ( 35.-
915. The State is responsible for deter-
mining the wnount and timing of BWeral
assistant to each municipality for which
treatment worts funding it needed.
FEDERAL REGISTER, VOL 39, NO. 29—MONDAY, HMUAXY 11, 1974
-------
RULES AND REGULATIONS
(d) The scope of a project will be ini-
tially defined by a prospective applicant.
This initial project scope may be revised
by the State when priority for the project
Is established. The final determination of
project scope will be made by the Re-
gional Administrator when grant assist-
ance is awarded (see 8 35.930-4).
(e) An application must first be sub-
mitted to the State agency for each pro-
posed grant. The basic grant application
must meet the requirements for the proj-
ect set forth in 8 35.920-3. Submissions
required for grant assistance for subse-
quent related projects shall be provided
in the form of amendments to the basic
application. The State agency will for-
ward to the appropriate EPA Regional
Administrator complete project applica-
tions or amendments thereto for which
priority has been determined by the State
agency. The grant will consist of the
grant agreement resulting from the basic
application and grant amendments
awarded for subsequent related projects.
(f) Generally, grant assistance for
projects Involving Steps 2 or 3 will not
be awarded unless the Regional Admin-
istrator first determines that the facil-
ities planning requirements of {8 35.917
to 35.917-9 of this subpart have been met.
After October 31, 1974, written approval
of a "plan of study" (see J35.920-3(a)
(1)) must be obtained prior to initiation
of facilities planning. After June 30,1975,
facilities planning may not be initiated
prior to approval of a Step 1 grant (see
58 35.925-18 and 35.905-4).
(g) If initiation of Step 1, 2, or 3 con-
struction (see 8 35.905-4) has occurred
prior to award of grant assistance, costs
Incurred prior to the approved date of
Initiation of construction will not be paid
and award will not be made except
under the circumstances set forth In
6 35.925-18.
Ch) The Regional Administrator may
not award grant assistance unless the
project application requirements of § 35.-
920-3 have been met and he has made
the determinations required by 5 35.925
et seq.
(1) A grant or grant amendment
awarded for a project under this subpart
shall constitute a contractual obligation
of the United States to pay the Federal
share of allowable project coste up to the
amount approved in the grant agreement
(Including amendments) in accordance
with ! 35.930-6 of this subpart, subject
to the grantee's compliance with the con-
ditions of the grant (see 8 35.936 et seq.)
and other applicable requirements of this
subpart.
-------
Mfli» ANB
6 35.905-7 Industrial Coot Recovery
Period.
That period during which the grant
amount allocable to the treatment of
wastes from Industrial users is recovered
from the Industrial users of such works.
§ 35.905-8 Industrial uter.
Any nongovernmental user of publicly
owned treatment works Identified in the
Standard Industrial Classification Man-
ual, 1972, Office of Management and
Budget, as amended and supplemented,
under the following divisions:
(a) Division A. Agriculture, Forestry,
and Fishing.
(b) Division B. Mining.
(c) Division D. Manufacturing.
(d) Division E. Transportation, Com-
munications, Electric, Gas, and Sanitary
Services.
(e) Division I. Services. A user in ttie
Divisions listed may be excluded If It is
determined that It will introduce pri-
marily segregated domestic wastes or
wastes from sanitary conveniences.
§ 35.905-9 Infiltration.
The water entering a sewer system,
Including sewer service connections,
from the ground, through such means as,
but not limited to, defective pipes, pipe
Joints, connections, or manhole walls. In-
filtration doe* not Include, and is dis-
tinguished from, Inflow.
g 95.905-10 Infiltration/inflow.
The total quantity of water from both
infiltration and Inflow without distin-
guishing the source.
§ 35.905-11 Inflow.
The water discharged into a sewer
system, Including service connections
from such sources as, but not limited to,
roof leaders, cellar, yard, and area
drains, foundation drains, cooling water
discharges, drains from springs and
swampy areas, manhole covers, cross
connections from storm sewers and com-
bined sewers, catch basine, storm waters,
surface run-off, street wash waters, or
drainage. Inflow does not include, and
Is distinguished from, Infiltration.
8 35.905-12 Interceptor sewer.
A sewer whose primary .purpose is to
transport wastewaters from collector
sewers to a treatment facility.
§ 35.905-13 Interstate agency.
An agency .of two or more States es-
tablished by or pursuant to an agreement
or compact approved by the Congress, or
any other agency of two or more States,
having substantial powers or duties per-
taining to the control of water pollution.
§35.905-14 Municipality.
A city, town, borough, county, parish,
district, association, or other public body
(including an Intel-municipal agency of
two or more of the foregoing entitles)
created by or pursuant to State law, or
an Indian tribe or an authorized Indian
tribal organization, having Jurisdiction
over disposal of sewage, Industrial wastes,
or other wastes, or a designated and ap-
proved management agency under sec-
tion 308 of the Act. This definition ex-
cludes ft special district, such as a school
district, which does not have as one of
Its principal responsibilities the treat-
ment, transport, or disposal of liquid
wastes.
8 35.905-15 Operable treatment work*.
An operable treatment works is a treat-
ment works that:
(a) Upon completion of construction
will treat wastewater, transport waste-
wafer to or from treatment, or transport
and dispose of wastewater in a manner
which will significantly Improve an ob-
jectionable water Quality related situa-
tion or health hazard In existence prior
to construction of the treatment works,
and
(b) Is a component part of a com-
plete waste treatment system which,
upon completion of construction for the
complete waste treatment system (or
completion of construction of other
treatment works In the "system In ac-
cordance with a schedule approved by
the Regional Administrator) wiH com-
ply with all applicable statutory and
regulatory requirements.
§ 35.903-16 Project.
The scope of work for which Federal
assistance is awarded by a grant or
grant amendment pursuant to this sub-
part. For the purposes of this subpart,
the scope of work is defined as Step 1,
Step 2, or Step 3 of treatment works
construction or segments thereof (see
8 35.905-24 and S 35.930-4).
g 35.905-17 Replacement.
Expenditures for obtaining and in-
stalling equipment, accessories, or ap-
purtenances which are necessary during
the service life of the treatment works
to maintain the capacity and perform-
ance for which such works were designed
and constructed. The term "operation
and maintenance" includes replacement.
§ 35.905-18 Sanitary sewer.
A sewer Intended to carry only sani-
tary or sanitary and industrial waste
waters from residences, commercial
buildings, industrial plants, and Institu-
tions.
§ 35.905-19 Sewage collection system.
For the purpose of § 35.925-13 of this
subpart, each, and all, of the common
lateral sewers, within a publicly-owned
treatment system, which are primarily
installed to receive wastewaters directly
from facilities which convey wastewater
from Individual structures or from priv-
ate property, and which Include service
connection " Y" fittings designed for con-
nection with those faculties. The facilities
which convey wastewater from individual
structures or from private property to
the public lateral sewer, or Its equivalent,
are specifically excluded from the defini-
tion, with the exception of pumping units,
and pressurized lines, for individual
structures or groups of structures when
such units are cost effective and are
owned and maintained by the grantee.
§ 35.905-20 State.
A State, the District of Columbia, the
Commonwealth of Puerto Rico, the Vir-
gin Islands, Guam, American Samoa, and
the Trust Territory of the Pacific Islands.
§ 35.905-21 State agency.
The State water pollution control
agency designated by the Governor hav-
ing responsibfifty for enforcing State
laws relating to the abatement of pollu-
tion.
§ 35.905-22 Storm sewer.
A sewer Intended to carry only storm
waters, surface run-off, street wash
waters, and drainage.
§ 35.905-23 Treatment works.
Any devices and systems used in the
storage, treatment, recycling, and recla-
mation of municipal sewage or industrial
wastes of a liquid nature to Implement
section 201 of the act, or necessary to re-
cycle or reuse water at the most eco-
nomical cost over the useful life of the
works. Including Intercepting sewers, out-
fall sewers, sewage collection systems,
pumping, power, and other equipment
and their appurtenances; extensions, im-
provement, remodeling, additions, and
alterations thereof: elements essential to
provide a reliable recycled supply such as
standby treatment units and clear well
facilities; and any works, including site
acquisition of the land that will be an
Integral part .of the treatment process or
is, used Tor ultimate disposal or residues
resulting from such treatment: or any
other method or system for preventing,
abating, reducing, storing, treating, sepa-
rating, or disposing of municipal waste.
Including storm water run-off, or indus-
trial waste, including waste in combined
storm water and sanitary sewer systems.
§ 35.905-24 Treatment Work* Segment.
A treatment works segment may be
any portion of an operable treatment
works described in an approved facilities
plan, pursuant to I 35.917. and which can
be identified as a discrete contract or
subcontract for Step 1,2, or 3 work. Com-
pletion of construction of a treatment
works segment may, but need not, result
in an operable treatment works.
§ 35.905-25 Useful life.
Estimated period during which a treat-
ment works will be operated.
HBUM
VOC 39, NO. 29— MONDAY. KMUARY 11, 1974
-------
5256
§ 35.905-26 User charge.
A charge levied on users of a treatment
work* for the cost of operation and main-
tenance of such works, pursuant to Sec-
tion 304 (b) of the Act and this subpart.
g 35.908 Advanced technology and ac-
celerated construction techniques.
It la the policy of the Environmental
Protection Agency to encourage and,
where possible, to assist in the develop-
ment of accelerated construction tech-
niques and new or advanced processes,
methods, and technology for the con-
struction of waste treatment works. New
or advanced processes or methods may be
utilized in the construction of treatment
works under this subpftrt. New tech-
nclogy or processes may be developed or
demonstrated with the assistance of EPA
research or demonstration grants
awarded under Title I of the Act. New
processes or methods which have been
successfully demonstrated under less
than full scale conditions may be utilized
to the construction of treatment works
under this subpart.
§ 35;910 Allocation of fund..
§ 35.910-1 Allotment.
Allotments shall be made among the
States from funds authorized to be ap-
propriated pursuant to section 207 in the
ratio that the most recent congres-
slonally approved estimate of the cost of
constructing all needed publicly owned
treatment works In each State bean to
the most recent congresslonally approved
estimate of the cost of construction of
all needed publicly owned treatment
works In all of the States. Computation
of a State's ratio shall be carried out to
the nearest ten thousandth percent
(0.0001 percent) and allotted amounts
wiU be rounded to the nearest thousand
dollars except for Fiscal Year 1975 which
will be rounded to the nearest fifty dol-
lars.
§ 35.910-2 Reallotment.
(a) Bums allotted to a State under
I 35.810-1 shall be available for obliga-
tion on and after the date of such allot-
ment and shall continue to be available
to such State for a period of one year
after the close of the fiscal year for which
such sums are authorized. Funds remain-
Ing unobligated at the end of the allot-
ment period will be immediately reallot-
ted by the Administrator, on the basis
of the most recent allotment ratio to
those States which have used their full
allotment.
(b) ReaUotted sums shall be added to
the last allotments made to the States
and shall be in addition to any other
RULES AND REGULATIONS
funds otherwise allotted, and be avail-
able for obligation In the same manner
and to the same extent as such last
allotment.
(c) Any sums which have been obli-
gated under this subpart which remain
after final payment, or after termina-
tion of a project, shall be credited to the
State to which such sums were last al-
lotted. Such released sums shall be added
to the amounts last allotted to such State
and shall be available for obligation in
the same manner and to the same extent
as such last allotment.
§ 35.910-3 Fiscal Yean 1973 and 1974
Allotments.
(a) For Fiscal Years ending June 30,
1973 and June 30, 1974, sums of $2 bil-
lion and $3 billion, respectively, have
been allotted on the basis of Table in
of Bouse Public Works Committee Print
No. 92-60.
tt>) The percentages used m comput-
ing the State allotments set forth in
paragraph (c) of this section for Fiscal
Years 1973 and 1974 are as follows:
StaU
o»l year
1973
1874
State
Alabama —
Alaska
Arizona ...
Arkansas ._
California .
Colorado ,-
Connecti-
cut —,
District of
Columbia
Delaware ..
Florida
Oeokgla ...
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas .__
Kentucky -
Louisiana .
Maine
Maryland —
Massachu-
setts
Michigan ..
Minnesota .
Mississippi -
Missouri ...
Montana ..
Nebraska -.
Nevada
New Hamp-
shire
New Jersey.
New Mex-
ico
New York—
Per-
centage
0.3013
.3383
.1846
.3636
9.8176
.3166
1. 6810
.7114
.6666
3.6364
.0730
.3303
.3177
6.3480
3.8669
1.1087
.3743
.6699
.9438
0.8675
4.3683
8.7676
7. 9814
3.0310
.3936
1.6666
.1663
.3708
.3877
.8309
7.7040
.3108
11.0678
State
North Car-
olina
North Da-
kota
Ohio
Oklahoma' .
Oregon
pennsylr
vania ..
Rhode
Island ...
South Car-
olina
South Da-
kota
Tennessee .
Texas
Utah
Vermont _—
Virginia
Washing-
ton
West Vir-
ginia
Wisconsin .
Wyoming ..
Guam ....
Puerto
Rico
Virgin
Islands ..
American
Samoa...
Trust Ter-
ritory of
Pacific
Islands .-
Per-
centage
.0339
.0467
6.7737
.4608
.8494
6.4314
.4889
.0406
.0048
1.160&
9.7694
.1403
.2318
3.9143
.8906
.4999
1.7416
.0368
.0873
.8846
.0893
.0048
Alabama
Alaska
Arizona
Arkaiuu —
California
Colorado
Connecticut
Dels ware. ....
District ot Columbia
Florid*
Georgia
Hawaii
Idaho _•.
Illinois
Indiana -
Iowa _
Kansas
Kentucky .
Louisiana —
Maine .
Maryland
Massachusetts..
Michigan
Minnesota
Mlsslssipj*
Missouri
Montana.... -
Nebraska
Nevada
New Hampshire.—
New Jersey—
New Mexioo.ai
New York
North Carolina.
North Dakota.
Ohio
Oklahoma
Oregon
Pennsylvania.
Rhode Island
South Carolina.........—
South Dakota ...
Tennessee.... ...L
Texas .. ..
Utah
Vermont... . j..
Virginia ,.
Washington .-.
Wert Virginia.
Wisconsin
Wyoming.
Guam. ............
Puerto Bloo
Virgin Island!
American Samoa .....
Trust Territory el Pacific
17,224,000
4,604,000
2,092,000
7,072,000
106,861,000
«, 132,000
88,020,000
11,180,000
14,228,000
72,628,000
19, MO, 000
«, 806,000
4,864,000
124,978,000
67,824,000
28,114,000
7,484,000
IS, 198,000
18,866,000
19,860,000
85,164,000
76,162,000
160,628,000
40,638,000
7,670,000
8s.ua, ooo
8,824,000
7,416,000
6,764,000
16,618,000
164,080,000
4,216,000
221,166,000
18,468,000
934,000
116,471,000
9,216,000
16,988,000
108,428,000
9,778,000
12,910,000
1,826,000
28.210,000
66,888,000
2,816,000
4,486,000
68,286,000
17,812,000
9,998,000
11,830,000
686.000
1,744,000
17,680,000
1,786,000
96,000
110,886,000
6,766,000
4,088,000
10,608,000
»4,628,000
9,408.000
60,430,000
IB, 606.000
21,842,000
108,792,000
29,190,000
9,000,000
6,631,000
187,4*7,000
100,980,000
34,671,000
11,220,000
19,797,000
28,284,000
20,026,000
127,746,000
112,728,000
289,442,000
60,957,000
11,906,000
49,668,000
4,986,000
11,124,000
8,631,000
24,927,000
711,120,000
6,324,000
381,734,000
27,667,000
1,401.000
178,211,000
18,824,000
26,432,000
162,642,000
14,667,000
19,366,000
2,844,000
34,816,000
81,062,000
4,224,000
6,664,000
87,429,000
26,718,000
14,997,000
62,246,000
804,000
1,616,00!)
36.636,000
2,679,000
144,000
.0378
100.0000
(c) Baaed upon the percentages, the
muns allotted to the States u ot July 1.
1073. for Fiscal Years 1978 and 1974 are
as follows:
766,000 1,134,000
Total, 2,000,000,000 1,000,000,000
§ 35.910-4 Fiscal Year 1975 Allotments.
(a) For the Fiscal Tear ending
June 30, 1976. a sum of *4 billion has
been allotted based 50 percent on ttae
ratios of Table I and 60 percent of Table
n of House Public Works Committee
Print No. 93-28, pursuant to Pub. L.
93-243.
(b) The percentages used In comput-
ing the State allotments set forth in par-
agraph (c) of this section, for Fiscal
Tear 1976 are as follows:
Per- Per-
State centage State ventage
Alabama... 0.8O16 Delaware .. 0.6348
Alaska - 0.3880 District of
Arizona 0.4066 Oolum-
Arkansas _. 0.6069 bla 0.9724
California . 11.4340 Florida 4.1838
Colorado „ 0.7867 Georgia — 1.9369
Connect- Hawaii 1.0488
lout ...... 1.7687 Idaho 0.3009
FEDERAL REOICTIR, VOL. 39, NO. 29—MONDAY, KMUARY W, 1*74
-------
State
lUmoU .
Indiana ...
Iowa ......
Per-
Kentucky .
Louisiana..
Maine
Maryland ..
Massachu-
setts
Michigan „
Minnesota .
Mississippi .
Missouri
Montana —
Nebraska ..
New Hamp-
shire
New Jersey .
New
Mexico —
New York ..
North Caro-
lina
North
Dakota —
Ohio
Oklahoma .
Oregon
6.4178
lifllM-
1.0013
1.0323
1.6679
0.7249
0.6870
1.8767
3.2946
4. 7978
1. 6341
0.6356
1.8960
0. 1421
0. 5314
0. 4755
0. 8920
6.4789
0.1869
12. 4793
1.7029
Mtute
P-Bnsyl
Per-
centage
8. MM
lULES AND REGULATIONS
West Virginia ................. «S7.736,700
0.5308
1.
0.0807
1.2308
1.6634
o.oaia
4. 9184
1.19B3
0.8682
Rhode
Island
South
Carolina.
South
Dakota ..
Tennessee .
Texas .
Utah 0.4817
Vermont 0.3001
Virginia ... 2.5096
Washing-
ton 1.6468
West
Virginia. .
Wisconsin _
Wyoming „
Guam 0. 0478
Puerto
Rloo
Virgin
Islands __
American
Samoa —
Trust Terri-
tory of the
Pacific
Islands .. 0.0133
»co
American 8iuw»
Trurt Territory
of Pacffle
a, ITS. ooo
40,892,900
*'_!£• SSX
B7«,700
0.9698
1. 3317
0.0768
1.0380
0.0796
0. 0147
(c) Based upon the percentages set
forth in paragraph (b> of this section
and allotment adjustments the sums
allotted to the States as of January 1,
1874. are as follows:
Allotment adjustment has been made
for those States that would receive an al-
lotment that would be less than their
Fiscal Year 1972 allotment. The allot-
ment of those States which fall below
their Fiscal Year 1972 allotment will be
restored to their Fiscal Year 1972 allot-
ment using funds from the total allot-
ment. Remaining funds will be allocated
to States (excluding the States with
allotment adjustment) based on ad-
justed percentages. Minimum allotment
amounts are determined on the basis 01
Table rn of House Public Works" Com-
mittee Print 93-28.
§ 35.912 Delegation lo State agencies.
It Is the policy of the Environmental
Protection Agency to utilize staff capa-
bilities of State agencies to the maxi-
mum extent practicable through opti-
mum utilization of available State and
Federal resources and to eliminate un-
necessary duplJcative reviews of docu-
ments that are required as a part of tne
construction grant process. Accordingly,
Alabama -- $83,785,150 the Regional Administrator may enter
Alaska - 15,059.100 into-a written agreement, where appro-
Arizona — 17,695,750 priate with a State agency within his
Arkanas 23,880,100 BeKlon for certification by the State
California - -- *?!•*!?• H* agency of the technical and/or admin-
I™ ;-;;:=;; _£•. EMK sstsx
District of Columbia 38.233.800 grantee may request review by tne ue-
Fiorida — 164,496,400 gional Administrator of an adverse rec-
Oeorgia - - 78,153,000 ommendatlon by a State agency.
SSSo" IlirHIIIIIIII "io^Soo §35.915 State aetenninaUo* ef project
nilnoBi 262,3111.700 priority list.
Indian* ?£•£!?• 22? Construction grants will be awarded
5J.L.- - iom 600 *"»» allotments available pursuant to
ieSy I III" IIIIIIIIIII as! III'. ™ I 35.910 in accordance with the approved
Louisiana ~IH~ ssisBi.MO State project priority list which is de-
Maine 28,227,000 rived from the approved State priority
Maryland M, 128, loo system.
Massachusetts 80,210,900 (ftj state priority system. The State
Michigan 128>!!!2>f£! priority system must be designed to
!£52££ 22" we' m achieve optimum water quality Unprove-
ui_ao^i^ 74 Mfl loo ment consistent with the goals and re-
_S£:":::::::::::::::::: T.SJtSS quirements of the Act. it shan be sub-
NHwaska 20,894,000 mitted and revised m accordance with
Nevada 18,699.600 Subpart B of this part.
New Hampshire ... 3«,072,95O (laj state municipal discharge inven-
New Jersey— 284,656,200 f pursuant to 1138.43 of this Chapter,
New Mexico ^. io. 670.600 ^ ^ ^ cy shall prepare a »unlci-
£* J"*SJ7" ^ 2J" 2W PM discharge Inventory which sets forth
K Dai°oS!::::::::~::::: I:™™ L the entire Stete a ranWngofanslg-
Ohio - 193,878,700 nlflcant municipal discharges (including,
Oklahoma 48.997.4oo for example, eligible municipal septic
Oregon 84,136,700 systems). Such list must be submitted as
Pennsylvania 223,744, loo part of the annual State program for the
Rhode island 20.864.000 ar)t)rOvai of the Regional Administrator
S±£ r^SL**- "7 3*M m «"<*«• * S6'557- ^ 8tate municti»J *"*-
Tenn^f™::::::::^.::: lalSnllM <>*»*** inventory shall be updated an-
Texas - 106,900,260 nually and submitted with the State pro-
Utah I.I 16.679.600 gram punraan* to I 35.555 of thte part.
Vermont .„....._........_. 11.800,800 (
-------
6258
MILES AND REGULATIONS
be utilized must be identified since proj-
ect* initially funded with fiscal year 1976
fundfl wffl be subject to beat practicable
waste treatment technology require-
ments (aee 13B.930-4).
(d) Submission, amendment and" ap-
proval of project priority Hit. The proj-
ect not shall be submitted and approved
pnm^iiy M part of the State Program
and may be amended pursuant to i 35.655
and 135.557.
(e) Application of additional funds. It
the State has submitted a project prior-
ity list containing more projects than
could be funded under the original allot-
ment, upon allocation of additional
funds, the Regional Administrator's ap-
proval of the project priority list will be
extended to the required number of proj-
ects. If there is an Insufficient number of
projects on the list, projects may be
added to the list, pursuant to II 35.655
and 36.567 to account for additional
funds which are available.
(f) Public participation. Hie Regional
Administrator may not approve a proj-
ect priority list or any significant amend-
ment thereto unless he determines that
a public hearing pursuant to { 35.556 of
this Part has been held on such list prior
to approval. This public hearing may be
conducted in conjunction with a regular
public meeting of the State agency, pro-
vided that adequate and timely State-
wide notice of the meeting, including
publication of the proposed project
priority list Is given, and attendees at
the meeting are afforded adequate op-
portunity to express their views concern-
ing the list. A public hearing is not re-
quired with respect to any amendment
of the list (including deletion of a proj-
ect) which the State agency and the
Regional Administrator agree is not
significant.
(g) Reserve for grant increases. In
developing the project priority list the
State must make provision for grant in-
creases for projects awarded grant as-
sistance under this subpart. A reason-
able portion, not less than five percent,
of each allotment for fiscal year 1975 and
later years made pursuant to { 35.910
shall be reserved for grant amendments
to Increase grant amounts pursuant to
IS 36.935-11 and 35.955. A statement
specifying the amount to be reserved for
grant amendments shall be submitted by
the State with the project priority list
The reserve period must be for not more
than eighteen months after the date
of such allotment. If any of the reserved
amount remains, this amount may be
utilized for the funding of additional
projects, in accordance with the pro-
cedures set forth in paragraph (e) of
this section.
(h) Grant increases. The Regional
Administrator may approve a grant In-
crease, upon application by the grantee,
and upon written confirmation by the
State lor each application, that the grant
Increase is justified. The grant Increases
will be made from the amount reserved,
by the State, for that purpose, from cur-
rently available allotments pursuant to
paragraph (g) of this section.
(1) Reserve lor Step 1 and Step 2
Projects. In developing th* project pri-
ority list, the State may (but need not)
make provision for an additional weam
for grant assistance for Step 1 and Step a
projects whose selection for funding win
be determined by the State agency sub-
sequent to approval of the project list. A
reasonable portion, but not more than
ten percent, of each allotment for fiscal
year 1975 and later years made pursuant
to S 35.910 may be reserved for this
purpose. A statement specifying the
amount to be reserved for such grant
assistance shall be submitted by the State
with the project priority list. The reserve
period may be for not more than eighteen
months after the date of such allotment
If any of the reserved amount remains,
this amount may be utilized for the
funding of additional projects, in ac-
cordance with the procedures set forth
in paragraph (e) of this section. The
funding of Step 1 and Step 2 projects
from this reserve should be consistent
with the approved State strategy and
should be developed In conjunction with,
but need not rigidly follow, the rank-
Ing in the municipal discharge inven-
tory.
§35.917 Fadlitle* Planning (Step 1).
(a) These regulations set forth the fa-
cilities planning required as an element
of the construction of publicly owned
wastewater treatment works and supple-
ment other provisions of this subpart.
(b) Facilities planning consists of
those necessary plans and studies which
are directly related to the construction
of treatment works, In compliance with
section 301 and 302 of the Act. Facilities
planning will demonstrate the need for
the proposed facilities and, by a syste-
matic evaluation of feasible alternatives,
will also demonstrate that the proposed
measures represent the most cost-effec-
tive means of meeting established effluent
and water quality goals, recognizing en-
vironmental and social considerations.
(c) Facilities planning, determined by
tfae Regional Administrator to have been
initiated prior to May 1. 1974, must be
in accordance with applicable statutory
requirements (see SI 35.925-7 and 35.-
935-8), and such other requirements of
this subpart as may be determined to be
appropriate by the Regional Adminis-
trator.
(d) Full compliance with the facilities
planning provisions of this subpart will
be required prior to award of grant as-
sistance for Step 2 or Step 3 where the
Regional Administrator determines such
planning was initiated (as determined
pursuant to {8 35.905-4 and 35.926-18)
after April 30,1974.
Grant assistance for Step 2 or 3 may be
awarded prior to approval of a facilities
plan for the entire geographic area to be
served by the complete waste treatment
system of which the proposed treatment
works will be an integral part If the
Regional Administrator determines that
applicable statutory requirements have
been met (see 135.926-7 and 35.925-8);
that the .facilities planning relevant to
the proposed Step 2 or 3 project has been
substantially completed: and ttiat the
Step 2 or 3 project for which grant as-
sistance is made win not be significantly
affected by the completion of the facil-
ities plan and will be a component part
of the complete system: Provided, That
the applicant agrees to complete the
facilities plan on a schedule the State
accepts (subject to approval by the
Regional Administrator), which sched-
ule shall be inserted as a special condi-
tion in the grant agreement
(e) After October 31,1974, written ap-
proval of a plan of study (see { 35.920-3
(a)(l) must be obtained prior to initia-
tion of facilities planning. After June 30,
1975, facilities planning may not be
initiated prior to approval of a Step 1
grant or approval of a plan of study ac-
companied by reservation of funds for a
Step i grant (see {135.925-18 and
35.905-4).
(f) Faculties planning guidelines pub-
lished by the Administrator are for ad-
visory Information only.
(g) If the Information required to be
furnished as part of a facilities plan has
been developed separately, It should be
furnished and Incorporated by reference
in the facilities plan. Planning previously
or collaterally accomplished under local,
State or Federal programs will be utilized
(not duplicated).
§ 35.917-1 Content of Fadlitie* Flan.
Facilities planning which is initiated
after April 30,1974, must encompass the
following to the extent deemed appro-
priate by the Regional Administrator:
(a) A description of the treatment
works for which construction drawings'
and specifications are to be prepared.
This description shall Include prelimi-
nary engineering data, cost estimates for
design and construction of the treatment
works, and a schedule for completion of
design and construction. The preliminary
engineering data may include, to the
extent appropriate, such Information as
a schematic flow diagram, unit processes,
design data regarding detention times,
flow rates, sizing of units, etc.
(b) A description of the selected com-
plete waste treatment system (s) of which
the proposed treatment works Is a part
The description shall cover all elements
of the system, from the service area and-
collection sewers, through treatment, to
the ultimate discharge of treated waste-
waters and disposal of sludge.
(c) Infiltration/Inflow documentation
in accordance with S 35.927.
(d) A cost-effectiveness analysis of
alternatives for the treatment works and
for the waste treatment system(s) of
which the treatment works is a part
The selection of the system(s) and the
choice of the treatment works on which
construction drawings and specifications
are to be based shall reflect the cost-
effectiveness analysis. This analysis shall
Include:
(1) The relationship of the size and
capacity of alternative works to the needs
to be served. Including reserve capacity;
(2) An evaluation of alternative flow
and waste reduction measures;
FEDERAL REGISTER, VOt. 39, NO. 29—MONDAY, FEBRUARY 11, 1974
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KVLiS AND REGULATIONS
5259
(3) An evaluation of Improved effluent
Quality attainable by upgrading the op-
eration and maintenance and efficiency
of existing facilities as an alternative or
supplement to construction of new
faculties;
(4) An evaluation of the capability of
each alternative to meet applicable ef-
fluent limitations. The treatment works
design must be based upon not less than
secondary treatment as denned by the
Administrator pursuant to sections 301
(a) (1) (B) and 304(d) (1) of the Act;
(5) An identification of, and provision
for, applying the best practicable waste
treatment technology (BFWTT) as de-
nned by the Administrator, based upon
an evaluation of technologies included
under each of ttie following waste treat-
ment management techniques:
(1) Biological or physical-chemical
treatment and discharge to receiving
waters;
(11) Treatment and reuse; and
(ill) Land application techniques.
All Step 2, Step 3 or combination Step
2-3 projects for publicly-owned treat-
ment works construction from funds au-
thorized for any fiscal year beginning
after June 30, 1974, shall be based upon
application of BWPTT, as a minimum.
Where application of BFWTT would not
meet water quality standards, the facil-
ities plan shall provide for attaining such
standards. Such provision shall consider
the alternative of treating combined
sewer overflows.
(6) An evaluation of the alternative
means by which ultimate disposal can be
effected for treated wastewnter and
for sludge materials resulting from the
treatment process, and a determination
of the means chosen.
(7) An adequate assessment of the ex-
pected environmental impact of alter-
natives Including sites pursuant to Part
6 of this Chapter. This assessment shall
be revised as necessary to Include Infor-
mation developed during subsequent
project steps.
(e) An Identification of effluent dis-
charge limitations, or where a permit
has been issued, a copy of the permit for
the proposed treatment works as required
by the National Pollution Discharge
Elimination System.
(f) Required comments or approvals
of relevant State, Interstate, regional,
and local agencies.
(g) A brief summary of any public
meeting or hearing held during the plan-
ning process Including a summary of the
views expressed.
(h) A brief statement demonstrating
thai the authorities which will be Imple-
menting the plan have the necessary le-
gal, financial, institutional, and man-
agerial resources available to insure the
construction, operation, and mainte-
nance of the proposed treatment works.
(1) A statement specifying that the
requirements of Title VI of the Clvfl
Rights Act of 1964 and of Part 7 of thU
chapter have been satisfied.
fl 35.917-2 State ReqM>n). Alternatively, to the ex-
tent permitted by { 35.925-16, a grantee
may be reimbursed for facilities plan-
ning costs and other Step 1 elements for
which reasonable costs have been In-
curred in accordance with this eubpart,
in conjunction with the award of a grant
for the subsequent Step 2, Step 2-3, or
Step 3 projects.
(2> State priority determination hi
accordance with the approved State'
priority system pursuant to } 35.915 la
required for Step 1 project*, lust as hi
the caw of Step 2 or Step 3 project*.
(b) MUefbOttv. Only an applicant
which to eligible to receive grant assist-
ance for subsequent phases of construc-
tion (Steps 2 and 3) and which has the
legal authority to subsequently construct
and manage the facility may apply for
grant assistance for Step 1. If the area
to be covered by the facilities plan In-
cludes more than one political jurisdic-
tion, a grant may be awarded for a Step
1 project, as appropriate, (1) to the
jotat authority representing such Jurls-
tions, if eligible; (2) to one qualified
(lead agency) applicant; or (3) to two
or more eligible jurisdictions.
(c) Payment. Where a grant has
been awarded for the preparation of »
facilities plan or other Step 1 elements,
the payment schedule in the grant
agreement will provide for payment
upon completion of the Step 1 work or
upon completion of specified tasks
witfaln the scope of the project.
(d) Reports. Where a grant has been
awarded for facilities planning, the
completion of which is expected to re-
quire more than one year, the grantee
must submit a brief progress report to
the Regional Administrator at three-
month intervals. The progress report Is
to contain a minimum of narrative de-
scription, and is to describe progress In
completing the approved schedule of
specific tasks for the project.
§ 35.917-4 Planning scope and detail.
(a) Initially, the geographic scope of
all facilities planning Initiated after
October 31, 1974. or facilities planning
initiated after April SOi 1974, subsequent
to award of a Step 1 grant therefor,
shall be based upon the area delineated
by the State pursuant to g 35.917-2, sub-
ject to review by the Regional Adminis-
trator. The Regional Administrator may
make the preliminary delineation of the
boundaries of the planning area, if the
State has not done so, or may revise
boundaries selected by the locality or
State agendy, after appropriate consul-'
tation with. State and local officials.
(b) Facilities planning shall be con-
ducted only to the extent that the Re-
gional Administrator determines to be
necessary to insure that facilities for
which grants are awarded will be cost-
effective and environmentally sound and
to permit reasonable evaluation of grant
application* and subsequent preparation
of designs, eomtruotion drawings and
specifications,
§ 35.917-5 Public participation.
(a) Public participation in the facul-
ties planning process shall be consistent
with Part 105 of this chapter. One or
more public hearings or meetings should
be held within the area to obtain public
advice at the beginning of the planning
process. All governmental agencies and
other parties which are known to be
concerned or may have an interest In the
plan shall be Invited to participate.
(b) A public hearing shall be held
prior to the adoption of the facilities
plan by the Implementing governmental
units. This provision shall apply to all
facilities planning initiated after April
30. 1074. Tnta public hearing for the
No. 39—Pt. m-
FEDERAl UGUTfft, VOL 9t, NO. J9—MONDAY, FEBRUARY 17, 1974
-------
5260
RUUS AND REGULATIONS
facilities plan may satisfy the grantee
hearing requirement of Part 6 of ttila
chapter. The Regional Administrator
may require the planning entity to bold
additional public hearings, If needed, to
more fully discuss the plan and alterna-
tives or to afford concerned interests
adequate opportunity to express their
views.
(c) The time and place of the public
heaiing shall be conspicuously and ade-
quately announced, generally at least 30
days in advance. In addition, a descrip-
tion of the water quality problems and
the principal alternatives considered in
the planning process shall be displayed
at a convenient local site sufficiently
prior to the hearing (approximately 15
days).
Step 3. Building and erection of a
treatment works. Prior to the award of a
grant or grant amendment for a Step 3
project, each of the items specified in
paragraph (b) of this section, and in ad-
dition (1) two sets of cbnstructlon draw-
Ings and specifications, suitable for bid-
ding purposes, and <2) a schedule for or
evidence of compliance with 55 35.925-10
and 35.935-12 concerning an operation
and maintenance program, must have
been furnished.
(d) Step 2/3. Design/Construct Proj-
ect. Prior to the award of a grant or
grant amendment for a design/construct
project the items in paragraphs (b) and
(c) of this section must have been fur-
nished, except that, in lieu of construc-
tion drawings and specifications, the pro-
posed performance specifications and •
other relevant design/construct criteria
for the project must have been submitted.
(e) Training facility project. Ar appli-
cation for grant assistance for construc-
tion of a training facility pursuant to
section 109 (b) of the Act shall include
(Da statement concerning the suitabil-
ity of the treatment works facility for
FEDERAL REGISTER, VOL. 39, NO. 29—MONDAY, FEBRUARY 11, 1974
-------
ROLES AND REGULATIONS
5261
training operation and maintenance per-
sonnel for treatment works throughout
one or more States; (2) a written com-
mitment from the State agency or agen-
cies to carry out at such facility a
program of training approved by the Re-
gional Administrator; and (3) an engi-
neering report. Including facility design
data, cost estimates for design and con-
struction of the faculty, and a schedule
for completion of design and
construction.
§ 35.925 Limitations on award.
Before awarding Initial grant assist-
ance for any project for a treatment
works through a grant or grant amend-
ment, the Regional Administrator shall
determine that all of the applicable re-
quirements of { 35.920-3 have been met
and shall further determine:
§ 35.925-1 Facilities planning.
That the facilities planning require-
ments set forth In {{ 35.917 through
35.917-9 have been met. Requirements
set forth in {35.150-1 and {35.150-2
are not applicable.
§ 35.925-2 Basin plan.
That such works are In conformity
with any applicable final basin plan ap-
proved In accordance with section 303
(e) of the Act.
§ 35.925-3 Priority determination.
That such works have been determined
to be entitled to priority in accordance
with {35.915, and that the award of
grant assistance for the proposed project
will not jeopardize the funding of any
treatment works of higher priority.
§ 35.925-4 State allocation.
That the award of grant assistance for
the project will not cause the total of
all grant assistance awarded to appli-
cants within a State, including grant In-
creases, to exceed the total of all allot-
ments and reallotments available to such
State pursuant to { 35.910.
§ 35.925—5 Funding and other capabil-
ities.
That the applicant has:
(a) Agreed to pay the non-Federal
project costs, and
(b) Has the legal, institutional, man-
agerial, and financial capability to insure
adequate construction, operation, and
maintenance of the treatment works
throughout the applicant's jurisdiction.
§ 35.925-6 Permits.
THAT if the award is for a Step 2,
Step 3, or combination Step 2 and 3
project, the applicant has provided an
Identification of effluent discharge limi-
tations or. If available, a copy of a permit
as required by the National Pollution
Discharge Elimination System.
§ 35.925-7 Design.
That the treatment works design will
be (in the case of projects Involving
Step 2) or has been (in the case of proj-
ects for Step 3) based upon the follow-
ing:
(a) The design, size, and capacity of
such works are cost effective and relate
directly to the needs to be served by
such works, including adequate reserve
capacity;
(b) Such works will meet applicable
effluent limitations and attain not less
than secondary treatment as denned by
the Administrator pursuant to section
301 (b) (1) (B) and 304(d) (1) of the Act
(See Part 133 of this chapter), subject
to the limitations set .forth in { 35.930-4;
(c) The Infiltration/inflow require-
ments of { 35.927 have been met; and
(d) If the Initial grant assistance for
the project is to be awarded from funds
authorized for any fiscal year beginning
after June 30,1974, subject to the limita-
tions set forth in {35.930-4; (1) alter-
native waste treatment management
techniques have been studied and
evaluated to provide for the application
of the best practicable waste treatment
technology over the life of the works
consistent with the purposes of Title n
of the Act, and (2) the design has, as ap-
propriate, taken into account and al-
lowed to the extent practicable for the
application of technology, at a later date,
which will provide for the reclaiming or
recycling of water or otherwise eliminate
the discharge of pollutants.
§ 35.925-8 Environmental review.
That the NEPA requirements (Part 6
of this chapter), applicable to the proj-
ect step, have been met. Such compliance
Is a basic prerequisite for Step 2, Step 3.
and combination Step 2 and 3 projects.
An adequate assessment of expected en-
vironmental Impacts, consistent with the
requirements of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321
et seq.), is required as an Integral part
of facilities planning Initiated after
April 30, 1974, in accordance with
{ 35.917-1.
§ 35.925-9 Cvil rights.
That If the award of grant assistance
is for a project Involving Step 2 or 3. the
applicable requirements of Title VI, of
the Clvfl Rights Act of 1964 (See Part
7 of this chapter) have been met.
§ 35.925—10 Operation and maintenance
program.
If the award of grant assistance Is for
a project Involving Step 3, that satisfac-
tory provision has been made by the ap-
plicant for assuring proper and efficient
operation and maintenance of the treat-
ment works. In accordance with { 35.935-
12, and that the State will have an ef-
fective operation and maintenance
monitoring program to assure that treat-
ment works assisted under this subpart,
comply with applicable permit and grant
conditions.
§ 35.925-11 User charges.
That, In the case of grant assistance
awarded after March 1,1973, for a proj-
ect Involving Step 2 or Step 3, an ap-
provable plan and schedule of Imple-
mentation have been developed for a
system of user charges to assure that
each recipient of waste treatment serv-
ices within the applicants service area
will pay Its proportionate share of the
costs of operation and maintenance (In-
cluding replacement as defined in
{ 35.905-17) of all waste treatment serv-
ice provided by the applicant and the
applicant must agree that ouch sys-
tem (s) will be maintained. See Appendix
B to this subpart.
§35.925-12 Industrial cost recovery.
(a) That, hi the case of any grant as-
sistance awarded after March 1,1973, for
a project involving Step 2 or Step 3,
signed letters of intent have been re-
ceived by the applicant from each sig-
nificant Industrial user to pay that por-
tion of the grant amount allocable to the
treatment of its wastes. Each such letter
shall also Include a statement of the In-
dustrial user's Intended period of use of
the treatment works. A significant In-
dustrial user is one that will contribute
greater than 10 percent of the design
flow or design pollutant loading of the
treatment works. In addition, the appli-
cant must agree to require all Industrial
users to pay that portion of the grant
amount allocable to the treatment of
wastes from such users.
(b) Projects awarded grant assistance
prior to March 2,1973 are subject to the
requirements of {35.835-5 In lieu -of
paragraph (a) of this section.
§ 35.925-13 Sewage Collection System.
That, If the project Is for, or Includes,
sewage collection system work, such work
(a) Is for replacement or major rehabili-
tation of an existing sewer system pur-
suant to § 35.927-3 (a) and Is necessary to
the total Integrity and performance of
the waste treatment works servicing such
community, or (b) is for a new sewer sys-
tem in a community in existence on Octo-
ber 18, 1972, with sufficient existing or
planned capacity to adequately treat
such collected sewage. Replacement or
major rehabilitation of an existing sewer
system may be approved only If cost ef-
fective and must result In a sewer system
design capacity equivalent only to that of
the existing system plus a reasonable
amount for future growth. A community,
for purposes of this section, would In-
clude any area with substantial human
habitation on October 18,1972. No award
may be made for a new sewer system in
a community In existence on October 18,
1972 unless it Is further determined by
the Regional Administrator that the bulk
(generally two-thirds) of the flow design
capacity through the sewer system will
be for waste waters originating from the
community (habitation) In existence on
October 18,1972.
§ 35.925-14 Compliance with Environ-
mental Laws.
That the treatment works will comply
with an pertinent requirements of the
Clean Air Act and other applicable Fed-
eral, State and local environmental laws
and regulations.
§35.925-15 Treatment of industrial
wastes.
That the allowable project costs do not
include costs allocable to the treatment
FEDERAL REGISTER, VOL. 39, NO. 29—MONDAY, FEBRUARY II, 1974
-------
5262
RUtii AND REGULATIONS
for control or removal of pollutants In
waste* Introduced into the treatment
works by Industrial users unless the ap-
plicant la required to remove such pol-
lutants introduced from non-industrial
sources; and that the project is included
in a waste treatment system, a principal
purpose of which project and system is
the treatment of domestic wastes of the
entire community, area, region or district
concerned. A "waste treatment system",
for purposes of this section, means one
or more treatment works which provide
Integrated but not necessarily intercon-
nected waste disposal for the community,
area, region or district. See the pretreat-
ment standards set forth in Part 128 of
this Chapter.
§ 35.925-16 Federal activities.
That the allowable project costs do not
Include costs allocable to the treatment
of wastes from major activities of the
Federal Government, which another
Federal Agency has agreed to pay. Such
Federal agencies may extend, over a
period of years, their contributions to
support capital costs incurred by munic-
ipal treatment facilities which provide
service to them.
§ 35.925—17 Retained amounts for re-
construction and expansion.
Thai the allowable project costs have
been reduced by an amount equal to the
unexpended balance of the, amounts re-
tained by the applicant for future recon-
struction and expansion pursuant to
185.928-2, together with interest earned
thereon,
g 35.925-18 Limitation upon project
coiU Incurred prior to award.
That project construction has not been
initiated prior to the approved date of
Initiation of construction (as defined in
i 36.906-4), except as. otherwise pro-
vided in this section. Generally, payment
is not authorized for costs incurred prior
to the approved date of initiation of con-
struction, which shall be established in
the grant agreement, in accordance with
paragraphs (a), (b), and (c) of this
section.
(a) Steps lor 2:
(1) No prior approval or prior grant
award is required for Step 1 or Step 2
work initiated prior to November 1,1974;
payment for all such allowable costs in-
curred after the approved date of initia-
tion of construction 1» authorized in
conjunction with the first award of grant
assistance.
(2) In the case of Step 1 or Step 2
project work initiated after October 31,
1974, no payment is autborlnd for:
(1) Step 1 costs Incurred prior to the
date of approval of a plan to study (see
(I 35.917 and 35.930-3(a) (1)); and
(11) Step 9 costs Incurred prior to the
date of approval of a facilities plan (see
(8 35.917 and 36.930-3(b) (1)); payment
lor all Step 1 or Step 2 costs incurred
after such dates of approval are au-
thorized in conjunction with the first
award of grant assistance.
(3) When Step 1 or Step 2 project
work is initiated after AID* 80,1075, no
grant assistance for the Step 1 or Step 2
project work may be awarded unless such
award precedes Initiation of the proj-
ect work: Provided, That in Heu of
award of a Step, 1 grant after June 30,
1975, the State agency may request the
Regional Administrator to reserve funds
for Step 1 grant assistance (based upon
approval of the plan of study) and to
defer award of grant assistance for Step
1 work, which award, however, must in
any event be made within the allotment
period for the reserved funds.
(b) Step 3: Except as otherwise pro-
vided in this subparagrapb, no grant as-
sistance for a Step 3 project may be
awarded unless such award precedes Ini-
tiation of the. Step 3 construction. Ad-
vance acquisition .of major equipment
items requiring long lead times, or ad-
vance construction of minor portions of
treatment works, in emergencies, or In-
stances where delay could result in sig-
nificant cost increases, may be approved
by the Regional Administrator, but only
(1) If the applicant submits a written
and (adequately substantiated request for
approval, and (S) if written approval by
the Regional Administrator is obtained
prior to initiation of the advance ac-
quisition or advance construction.
(c) The approval of a plan of study, a
facilities plan, or of advance acquisition
of equipment or advance construction
will not constitute a commitment for ap-
proval of grant assistance for a sub-
sequent treatment works project, but will
allow payment for the previously ap-
proved costs as allowable project costs
upon subsequent award of grant asalst-
anee, If requested.prior to grant a*ard
(see 9 38.945(a)). In Instances Wjwre
such approval; is obtained, the applicant
proceeds at its own risk, since payment
for such costs cannot be made unless
and until grant assistance for the proj-
ect is awarded. '
§ 35.925-19 Section 208: Agencies and
plans.
, That, pursuant to section 208 (d) of the
Act, after a waste treatment manage-
ment agency has been designated for an
area, and a final plan for such area has
been approved, the applicant is the des-
ignated agency and the treatment works
project Is in conformity with such plan.
§ 35.927 Sewer system evaluation and
rehabilitation.
(a) Afl.applicants for grant assistance
awarded after July 1.1973, must demon-
strate to the satisfaction,of the Regional
Administrator that each sewer .system
discharging into the treatment works
project for which grant application is
made is. not or will not be subject to
excessive Infiltration/inflow. The deter-
mination whether excessive Infiltra-
tion/inflow exists, may take into account,
in addition to flow and related data,
other significant factors such as cost-
effectiveness (including the cost of sub-
stantial treatment works construction
delay, MB Appendix A to this •ubpart).
public health emergencies, the affects of
plant bypassing or overloading, or rele-
vant economic or ehvirbHIMntal faetore.
(b) The determination whether or not
excessive infiltration/Inflow exists will
generally be accomplished through a
sewer system evaluation consisting of (1)
certification by the State agency, as ap-
propriate; and, when necessary (2) an
infiltration/Inflow analysis; and, if ap-
propriate, (3) a sewer system evaluation
survey followed by rehabilitation of the
sewer system to eliminate an excessive
infiltration/inflow defined in the sewer
system evaluation. .Information sub-
mitted to the Regional Administrator for
such determination should be the mini-
mum necessary to enable a judgment to
be made.
(c) Guidelines on sewer system evalu-
ation published by the Administrator
provide further advisory Information.
§ 35.927-1 Infiltration/Inflow analysis.
(a) The infiltration/inflow analysis
shall demonstrate the lion-existence or
possible existence of excessive infiltra-
tion/inflow in each sewer system tribu-
tary to the treatment works. The
analysis should Identify the presence,
flow rate, and type of Infiltration/Inflow
conditions, which exist In the sewer sys-
tems. Information to be obtained and
evaluated in the analysis should Include,
to the extent appropriate, the following:
(1) Estimatecf flow data at the treat-
ment facility, an < significant overflows
and bypasses, and, if necessary, flows at
key points within the sever system.
(2) Relationship of existing popula-
tion and Industrial 'contribution to flows
in the sewer system.
(3) Geographical and geological con-
ditions which may affect the present and
future flow rates or correction costs for
the infiltration/inflow.
(4) A discussion of age, length, type,
materials of construction and known
physical condition of the sewer system.
(b) For determination of the possible
existence of excessive Infiltration/inflow,
the analysis shall include an estimate .of
the cost of eliminating the Infiltration/
inflow conditions. These costs shall be
compared with estimated total costs for
transportation and treatment of the
infiltration/inflow. Cost-Effectiveness
Analysis Guidelines (Appendix A to this
subpart), which contain advisory infor-
mation, should be consulted with respect
to this determination.
(c) If the infiltration/inflow analysis
demonstrate* the existence or possible
existence of excessive infiltration/inflow
a detailed plan for a sewer system evalu-
ation survey shall be Included in the
analysis. The plan shall outline the tasks
to be performed in the survey and their
estimated costs.
§35.927-2 -Sever system evaluation
survey.
(a) The sewer system evaluation sur-
vey shall consist of a systematic exami-
nation of the sewer systems to determine
the specific location, estimated Sow rate,
method of rehabilitation and cost of re-
habilitation versus cost of transportation
and treatment for each defined aouroa-
of infiltration/inflow.
HDMAI MOIflW, W0L »», NO. J»—MONDAY, MftftUAtY 11, 1»M
-------
(b) Th« results of the sewer system
evaluation surrey shall be summarized
In » report In addition, the report shall
include:
(1) A justification for each sewer sec-
tion cleaned and internally inspected.
(2) A proposed rehabilitation program
for the sewer systems to eliminate all de-
fined excessive infiltration/Inflow.
§35.927-5 Rehabilitation, v
(a) Hie scope of each treatment works
project defined within the Facilities Plan
as being required for implementation of
the Plan, and for which Federal assist-
ance will be requested, shall define (1)
any necessary new treatment works con-
struction, and (2) any rehabilitation
work determined by the sewer system
evaluation to be necessary for the elimi-
nation of excessive Infiltration/inflow.
However, rehabilitation which should be
a part of the applicant's normal opera-
tion and maintenance responsibilities
Bhall not be Included within the scope
of a Step 3 treatment works project.
(b) Grant assistance for a Step 3
project segment consisting of rehabilita-
tion work may be awarded concurrently
with Step 2 work for the design of the
new treatment works construction.
§ S5.927-4 Sewer u«e ordinance.
Each applicant for grant assistance for
a- Step 3, Step 3, or combination Steps 3
and a project shall demonstrate to the
satisfaction of the Regional Administra-
tor that a sewer use ordinance or other
legally binding requirement will be en-
acted and enforced in each jurisdiction
served by the treatment works project
before the completion "if construction.
The ordinance shall prohibit any new
connections from Inflow sources Into the
sanitary aewer portions of the sewer sys-
tem and shall ensure that new, sewers
i and connections to the sewer system are
properly designed and constructed.
g 35.927-5 Project procedure*.
(a) State certification. The State
agency may (but need not) certify that
excessive infiltration/inflow does or does
not exist. The Regional Administrator
win determine that excessive infiltration/
inflow does not exist on the basis of State
certification, if he finds that the State
had adequately established the basis for
its certification through submission of
only the minimum information necessary
to enable a judgment to be made. Such
Information,could include a preliminary
review by the applicant or State, for ex-
ample, of such parameters as per capita
design flow, fatlo of flow to design flow,
flow raordiyjr flow estimates, bypasses
or overfiowsfjor summary analysis of
hydrologies!, geographical, and geologi-
cal conditions, but this review would not
usually be equivalent to a complete
infiltration/inflow analysis. State cer-
tification must be on a project-h*»projeet'
basis. If the Regional AdmmistMrtor de-
termine* «» the basts of State certifica-
tion that the treatment works is or may
be subject to excessive infiltration/
KUIIS AND REGULATIONS
inflow, no Step 2 or Step 3 grant assist-
ance may be awarded except as provided
in paragraph (c) of this section.
' (b) Pre-oward tewer svftem evalua-
tion. Generally, except as otherwise pro-
vided in paragraph (c) of this section, an
adequate sewer system evaluation, con-
stating of a sewer system analysis and, if
required, an evaluation survey, is an es-
sential element of Step 1 facilities plan-
ning and is a prerequisite to the award of
Step 2 or 9 grant assistance. If the
Regional Administrator determines
through State Certification or an in-
filtration/inflow analysis that excessive
infiltration/Inflow does not exist, Step
2 or 3 grant assistance may be awarded.
If on the basis of State certification or
the Infiltration/inflow analysis, the Re-
gional Administrator determines that
possible excessive infiltration/inflow ex-
ists, an adequate sewer system evaluation
survey and. If required, a rehabilitation
program must be furnished, except as set
forth in paragraph (c) of this section
before grant assistance for Step 2 or 3
can be awarded. A Step 1 grant may be
awarded for the completion of this seg-
ment of Step i work, and, upon comple-
tion of Step 1, grant assistance for a Step
2 or 3 project (for which priority has been
determined pursuant to 13SM&) may.
be awarded, .^ ^
(c) Exception. In the event it Is deter-
mined by the Regional Administrator
that the treatment works would be re-
garded (hi the absence of an acceptable
program of correction) as being 'subject
to excessive or possible excessive infiltra-
tion/Inflow, grant assistance may be
awarded provided that the applicant es-
tablishes to the satisfaction of the Re-
gional Administrator that the treatment
works project for which grant application
is made will not be significantly changed
by aw subsequent rehabilitation pro-
gram or will be a component part of any
rehabilitated system: Provided, That the
applicant agrees to complete the sewer
system evaluation and any resulting re-
habilitation on an Implementation
schedule the State accepts (subject to
approval by the Regional Administra-
tor) , which schedule shall be Inserted as
a special condition In the grant agree-
ment. Compliance with this schedule
shall be accomplished pursuant to 188.-
936-16 and { 80.304 of this chapter.
(d) Municipalities may submit the in-
filtration/inflow analysis and when ap-
propriate the sewer system evaluation
survey, through the State agency, to the
Regional Administrator for his review at
any time prior to application for a treat-
men^ works grant. Based on such a re-
view, the Regional Administrator shall
provide the municipality with a written
response indicating either his concur-
rence of noneoncurrence. The Regional
Admmlttrator must concur with the
sewer system evaluation survey plan be-
fore the work is performed for1 th% survey
to.be an allowable cost
195.9ML Industrial co*t recovery.
Tin system for industrial east recovery
shall be ijjJiiinid by the Regional Ad-
5263
ministrator and shall be implemented
and maintained by the grantee in accord-
ance with 138.935-13 and the following
requirements.
§ 35.928-1 Recovered amounts.
(a) Each year during the industrial
cost recovery period, each Industrial user
of the treatment.works shall pay Its share
of the total amount of the grant and
any grant amendment awarded pursuant
to this subpart, divided by the recovery
period.
(b) The Industrial cost recovery period
shall be equal to 30 years or the useful
life of the treatment works, whichever
is less.
(c) Payments shall be made by In-
dustrial users no less often than annu-
ally. The first payment by an industrial
user shall be made not later than 1 year
after such user begins use of the treat-
ment works.
(d) An industrial user's share shall
be based on all factors which signifi-
cantly influence the cost of the treatment
works. Factors such as strength, volume,
and delivery flow rate characteristics
shall be considered and Included to In-
sure a proportional distribution of the
grant assistance allocable to Industrial
use to all Industrial users of the treat-
ment works. As a minimum, an Industry's
share shall be proportional to its flow,
in relation to treatment works flow
capacity.
(e) If there is a substantial change in
the strength, volume, or delivery flow rate
characteristics introduced into the treat-
ment works by an industrial user, such
user's share shall be adjusted accord-
ingly. .,
(f) If there is an expansion or 'upgrad-
ing of the treatment works, each existing
Industrial user's share shall be adjusted
accordingly.
(g) An industrial user's share shall In-
clude only that portion of the grant as-
sistance allocable to its use or to capacity
firmly committed for its use.
(h) All unallocated treatment works
capacity must conform with the require-
ments of section 204(a) (5) of the Act.
Cost-effectiveness guidelines are pub-
lished as Appendix A to this subpart to.
furnish additional advisory Information
concerning the implementation of sec-
tion 212(3) (C) of the Act.
(1) An industrial user's share shall not
include an Interest component.
§ 35.928-8 RetahMxTamonnu.
(a) The grantee shall retain SO per-
cent of the amounts recovered from In-
dustrial users. The remainder, together
with any interest earned thereon, shall
be returned to the U.S. Treasury on an
annual basis. ••-
(b) A minimum of 80 percent of the
retained amounts, together with interest
earned thereon, shall be used solely for
the eligible costs
-------
RULES AMR AEGU1ATION&
rnent of the retained amounts for any
expansion and reconstruction. The re-
mainder of the retained amounts mar be
used as the grantee sees fit.
(c) Pending use, the grantee shall In-
vest the retained amounts for reconstruc-
tion and expansion In: (1) Obligations of
the U.S. Government; or (2) obligations
guaranteed as to principal and Interest
by the UJB. Government or any agency
thereof; or (3) shall deposit such
amount* In accounts fully collaterahzed
by obligations of the U.S. Government or
by obligations fully guaranteed as to
principal and interest by the U.S. Gov-
ernment or any agency thereof.
§ 35.930 Award of grant assistance.
Approval by the Regional Administra-
tor of an application or amendment*
thereto through execution of a grant
agreement (Including a grant amend-
ment) , In accordance with 8 30.305 of
this subchapter, shall constitute a con-
tractual obligation of the United States
for the payment of the Federal share of
the allowable project costs, as determined
by the Regional Administrator, Informa-
tion concerning the approved project fur-
nished In accordance with {35.920-3
shall be deemed to be incorporated In the
grant agreement.
§ 35.930-1 Types of projects.
(a) The Regional Administrator may
award grant assistance for the following
types of projects pursuant to { 35.925;
(1) Step 1. A facilities plan and/or re-
lated elements required to apply for Step
2 grant assistance (see 9 36.920-300)):
Provided, That he determines that the
applicant has submitted the Items re-
quired pursuant to t 36.920-3 (a);
(2) Step 2. Preparation of construction
drawings and specifications: Provided,
That he determines that the applicant
has submitted the Items required pursu-
ant to 5 35.920-3 (b);
(3) Step 3. Building and erection of a
treatment works: Provided, That he de-
termines that the applicant has sub-
mitted the items required pursuant to
I 35.920-3 (c); or
(4) Steps 2 and 3. A combination of
design (Step 2) and construction (Step
3) for a treatment works in the case of
grants awarded after March 1,1973:
(i) Where the Regional Administrator
determines that compelling water quality
enforcement considerations or public
health emergencies warrant award of
such grant assistance to wsure expedi-
tious construction of nub treatment
works, or
(11) Where the Regional Administrator
determines that award of such grant as-
sistance win minimize administrative re-
quirements in the case of project* not re-
quiring a substantial amount of Federal
assistance: Provided, Thai the award au-
thority provided by tWs subparagraph
(4) Is subject to the following conditions:
that (A) the Regional Administrator
determine* that the applicant baa sub-
mitted the item* pursuant to 136.920-3
ft); CB) the United States will be eon-
traetnaHyoWgated to p»T«Jly the Fed-
eral share of the approved dtep 2 work
and win not be contractually obligated to
pay the Federal share of Step 3 project
costs unlesB and until the plans and spec-
ifications developed during Step 2 are
approved; and (C) funds fiscally obli-
gated for Step 3 will be deobligated unless
two sets of construction drawings and
specifications suitable for bidding pur-
poses are submitted to the Regional Ad-
ministrator and approved prior to initia-
tion of construction for the building and
erection of the treatment works.
(S) Step 2/3: Design/construction of
treatment works (Steps 2 and 3): Pro-
vided., That he determines that the ap-
plicant has submitted the items required
pursuant to $ 36.920-3 (d): And further
provided. That such grant assistance
must be awarded pursuant to EPA guide-
lines for the award of design/construct
projects, and that the requirements of
such guidelines are met.
(b) The Regional Administrator may
award Federal assistance by a grant or
grant amendment from any allotment or
reanotment available to a State pursuant
to {35.910 for payment of 100 percent of
any cost of construction of a treatment
works (for not more than one fadnty in
any State) required to train and upgrade
waste treatment works operation and
maintenance personnel, from one or more
States, pursuant to section 1090» of the
Act: Provided, That the Federal cost of
any such training facility shall not ex-
ceed $259,000.
§ 35^30—2 Grant amount.
The amount of grant assistance shall
be set forth In the grant agreement. The
grant amount may not exceed the amount
of funds available from the State allot-
ment* »nd reallotments pursuant to
135.910. Grant payments wffl be limited
to the Federal share of allowable project
costs incurred within the grant amount
or any Increases in such amount effected
through grant amendments in ac-
cordance with 135.956, pursuant to the
negotiated payment schedule included
in thftgnmt agreement.
§ 35.930-3 Grant term.
The grant agreement shall establish
the period within which the project must
be completed, in accordance with 130.-
305-1 of this chapter, subject to excus-
able delay.
§ 35.930-4 Project scope.
The grant agreement must define the
scope of the project for which Federal
assistance la awarded under the grant.
The project scope must include a stop or
an Identified segment thereof. With re-
spect to any grant assistance for a treat-
ment works project which is initially
funded frosa funds allocated for any fis-
cal year beginning after June 30, 1974.
provision must be made for the applica-
tion at best practicable waste treatment
technology ever the life of the treatment
works. However, a grant may be made for
a segment of Step 3 treatment works
construction, when that segment m and
of tlsetf dees not provide fer achieve-
ment of applicable effluent discharge
limitations (secondary treatment, best
practicable waste treatment technology,
or water quality effluent limitations),
provided that: (a) The segment is to be
a component of an operable treatment
works which will provide for achieve-
ment of the applicable effluent discharge
limitations, and (b) a commitment for
completion of the complete treatment
works is submitted to the Regional Ad-
ministrator and Is incorporated as a spe-
cial condition In the grant agreement.
§ 35.930-5 Federal share.
The grant siiall be 76 percent of the
estimated total cost of construction of
the project Approved by the Regional
Administrator in the grant agree-
ment, except as otherwise provided in
8 §35.925-16, 35.925-10, 36-926-17, and
35.930-1 (b).
§ 35.930-6 Limitation on Federal share.
The grantee must exert its best efforts
to perform the project work M specified
in the grant agreement within the ap-
proved cost celling. If at any time tbe
grantee has reason to believe that the
costs which It expects to incur in the per-
formance of the project will exceed or be
substantially less than the then approved.
estimated total project cost, the grantee
must notify the Regional Administrator
and the State agency promptly in writ-
ing to that effect, giving the revised esti-
mate of such total cost for the perform-
ance of the project then or as soon
thereafter as practicable, pursuant to 40
CFB 30.900. Delay in submission of such
notice and excess cost Information may
prejudice appro**! of an increase in the
grant amount. The United States shall
not be obligated, to pay for costs incurred
in excess of tbe approved grant amount
or any amendment thereof until the
State ha* approved an Increase in the
grant amount from available allotments
and the Regional Administrator has ap-
proved such increase through Issuance of
a written grant amendment pursuant to
1135.915 and 39.966. Grant payments
will be made pursuant to ( 35.946.
§ 35.935 Grant conditions.
In addition to the EPA General Grant
Conditions (Subpart C of Part 30 and
Appendix A to this subchapter), each,
treatment works grant shall be subject
to the following conditions:
g 35.935-4
cost*.
Maw-Federal eomtructlMr
The grantee agrees to pay/, pursuant to
section 204 (a) (4) of the Act, the non-
Federal costs of treatment works con-
struction associated with the project
and commits Itself to complete the con-
struction of the operable treatment
works (see (36.905-15) and fnmtff**
waste treatment system (see ( 36.805-4)
of which tiie project is a part
§ 35.935—2 Procurement; nonrtMrictiva
•pwjfieasknu.
(a) General. The grantee must com-
oly with | SM88 of this subpart to the
FEDERAL uotSTH. VOL. 39, NO. 29—MONDAY, MBIUA«Y 11, 1974
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RUUB ANfr flOUlATlOW
5263
construction of any Step 3 or Step 2+3
project. Performance of Step 2 and Step
3 project work may not be accomplished
by force account except for (1) Step 1
or Step 2 Infiltration/Inflow work for
which prior-written approval has been
obtained in accordance with II 35.927 to
35.927-6 and (2) segments of Step 3
work, the cost of which is estimated to be
under $25.000. The Regional Administra-
tor will cause appropriate review of
grantee procurement methods to be made
from time to time.
(b) Nonrestrlctive specifications. No
specification for bids or statement of
work in connection with such works shall
be written In such a manner as to con-
tain proprietary, exclusionary, or dis-
criminatory requirements other than
those based upon performance, unless
such requirements are necessary to test
or demonstrate a specific thing or to pro-
vide for necessary Intel-changeability of
parts and equipment, or at least two
brand names or trade names of com-
parable quality or utility are listed and
are followed by the words "or equal." The
single base bid method of solicitation for
equipment and parts for determination
of a low, responsive bidder may not be
utilized. With regard to materials. If a
single material Is specified, the grantee
must be prepared to substantiate the
basis for the selection of the material.
§ 35.935-3 Bonding and Insurance.
On contracts for the building and erec-
tion of treatment works (Step 3) exceed-
ing $100,000, each bidder must furnish
a bid guarantee equivalent to 5 percent
of the bid price. In addition the contrac-
tor awarded either a design/construct
contract or a construction contract for
Step 3 must furnish performance and
payment bonds, each of which shall be in
an amount not less than 100 percent of
the contract price. Construction con-
tracts lets than $100,000 shall be subject
to State and local requirements relating
to bid guarantees, performance and pay-
ment bonds. Contractors should obtain
such construction insurance (e.g., fire
and extended coverage, workmen's com-
pensation, public liability and property
damage, and "all risk" builders risk) as
is customary and appropriate.
§ 35.995*4 State and local law*.
The construction of the project, in-
cluding the letting of contracts in con-
nection therewith, shall conform to the
applicable requirements of State, terri-
torial, and local laws and ordinances to
the extent that such requirements do not
conflict with Federal laws and this sub-
chapter.
J35.935-5 Davit-Bacon and related
statute*.
In the case of any project Involving
Step 3, the grantee must consult with the
Regional Administrator pmr to issuance
of invitation for bids cbnoaHring «mpii-
«ooe with DMfe-BMon MdrWsMdsta-
tutes l-ettdretftinuant to 180.103 (a),
§35.935*6 Iqnal employment oppor-
tnniijr.
Generally, contracts .Involving Step 3.
of $10,000 and above,*** subject to equal
employment opportunity requirements
under Executive Order 11244, including
rules, regulations and orders issued
thereunder (see Put 8 of this chapter).
The grantee must consult with the Re-
gional Administrator concerning equal
employment opportunity requirements
prior to Issuance of invitation for bids
where the cost of construction work is
estimated to be more than $1,000,000. or
where required by the grant agreement.
§ 35.935-7 Access.
Any contract for Step 1, Step 2 or Step
3 work must provide that representatives
of the Environmental Protection Agency
and the State will have access to the
work whenever It is in preparation or
progress and that the contractor will pro-
vide proper facilities for such access and
inspection. Such contract must also pro-
vide that the Regional Administrator, the
Comptroller General of the United
States, or any authorized representative
shall have access to any books, docu-
ments, papers, and records of the con-
tractor which are pertinent to the project
for the purpose of making audit, exami-
nation, excerpts, and transcriptions
thereof.
§ 35.935-8 Supervision.
In the case of any project involving
Step 3, the grantee will provide and main-
tain competent and adequate engineer-
ing supervision and inspection of the
project to Insure that the construction
conforms with the approved plans and
specifications.
§ 35.935-9 Project completion.
The grantee agrees to expeditiously
Initiate and complete the project or cause
it to be constructed and completed in
accordance with the grant agreement
and application approved by the Re-
gional Administrator. The Regional Ad-
ministrator must terminate the grant if
Initiation of construction for a Step 3
project has not occurred within one year
after award of grant assistance for such
project: Provided. That the Regional Ad-
ministrator may defer such termination
for not more than six additional months
if he determines that there is good.cause
for the delay In Initiation of project
construction.
§ 35.935—10 • Copies of contract docu-
ments.
In addition to the notification of proj-
ect changes pursuant to I 30.900-1 of this
chapter,, a copy of any prime contract or
modification thereof and of revisions to
plans and specifications must be
promptly submitted to the Regional
Administrator.
§ 35.935-11 Project change*.
addition to the notification of proj-
chaffis* retftttred pursuant to 130.-
chapter, prior approval by
the Regional Administrator and the
State agency is required for project
changes which may (a) substantially
alter the design and scope of the project,
(b) alter the type of treatment to be
provided, (c) substantially alter the lo-
cation, slse, capacity, or quality of any
major item of equipment; or (d) increase
the amount of Federal funds needed to
complete the project: Provided, That
prior EPA approval is not required for
changes to correct minor errors, minor
changes, or emergency changes. No ap-
proval of a project change pursuant to
i 35.900 of this chapter shall commit or
obligate the United States to any in-
crease in the amount of the grant of pay-
ments thereunder unless a grant increase
Is approved pursuant to I 35.955. The
preceding sentence shall not preclude
submission or consideration of t. request
for a grant amendment pursuant to
130.901 of this chapter.
(a) The grantee must make adequate
provisions satisfactory to the Regional
Administrator for assuring economic,
effective, and efficient operation and
maintenance of such works ir. accord-
ance with a plan of operation approved
by the State water pollution control
agency or, as appropriate, the interstate
agency, after construction thereof.
(b) As a minimum, such plan shall
include provision for: (1) An operation
and maintenance manual for each facil-
ity, (2) an emergency operating and re-
sponse program. (3) properly trained
management, operation and mainten-
ance personnel, (4) adequate budget for
operation and maintenance, (5) opera-
tional reports, and (6) provisions for
laboratory testing adequate to determine
influent and effluent characteristics and
removal efficiencies.
(c) The Regional Administrator shall
not pay (1) more than 50 percent of the
Federal share of any Step 3 project un-
less the grantee has furnished a draft of
the operation and maintenance manual
for review, or adequate evidence of timely
development of such a draft, or (2) more
than 90 percent of the Federal share
unless the grantee has furnished a satis-
factory final operation and maintenance
manual.
§ 35.935-13 User charges and industrial
cost recovery.
(a) The grantee must obtain the ap-
proval of the Regional Administrator of
the system of Industrial cost recovery
(see { 35.928) and of the system of user
charges. The Regional Administrator
shall not pay more than 50 percent of
the Federal share of any Step 3 project
unless the grantee has submitted ade-
quate evidence of timely development-of
its system(s) of user charges and Indus-
trial cost recovery nor more than 80
percent of such Federal share unless the
Regional Administrator has approved
such system(s).
(b) The Jlegional Administrator may
approve a user charge system In ac-
cordance wife the following criteria:
MOMAL MOUTH, VOL $». NO. 39—MONDAY, NMUACT 11', 1*74
-------
WUS
(1) The user charge system must re-
sult In the distribution of the mot of
operation and TMAintAti qm^*? 0f traa^-
meat works within the gra&te*'* precise
area to each user lor user class) in pro-
portion to such user's contribution to the
total wastewater loading of tbe treat-
ment works. Factors such as strength,
volume, and delivery flow rate character-
istics shan be considered and Included as
the basis for the user's contribution to
ensure a proportional distribution of
operation and maintenance costs to each
user (or user class).
(2) For the first year of operation, op-
eration and maintenance cost* shall be
based upon past experience for existing
treatment works or some other rational
method that can be demonstrated to be
applicable.
(3) The grantee shall review user
charges annually and revise them peri-
odically to reflect actual treatment works
operation and maintenance costs.
(4) lite user charge system must gen-
erate sufficient revenue to offset the cost
of an treatment works operation and
maintenance provided by the grantee.
(6) The user charge system must be
incorporated in one or more municipal
legislative enactments or other appropri-
ate authority. 1* the project is a regional
treatment works accepting wastewaters
from treatment works owned by others.
then the subscribers receiving waste
treatment services from the grantee shall
have adopted user charge systems. Such
user charge systems shall also be incor-
porated in the appropriate municipal
legislative enactments or other appropri-
ate authority.
(c) Upon approval of a grantee's sys-
tem(t) of user charges and industrial
cost recovery, Implementation and main-
tenance of such approved system(s) and
Implementation schedules therefor, shall
become a condition of the grant and the
grantee shall be subject to the provisions
with respect to non-compliance with
grant conditions of 130.404 of this
chapter.
(d) The grantee must maintain such
records as are necessary to document
such compliance.
(e) Guidelines containing Illustrative
examples of acceptable user charge and
industrial cost recovery systems may be
consulted for advisory information. The
user charge guidelines are contained in
Appendix B to this subpart. Cost Re-
covery Guidelines are published sep-
arately and may be obtained from the
EPA Regional Office.
( 35.935-14 Final inspection.
The grantee must notify the Regional
Administrator through the State Agency
of the completion of Step 3 project con-
struction. The Regional Administrator
shajl cause 'final inspection to be made
within 00 days of the receipt of the no-
tice. Upon completion of the final Inspec-
tion and upon determination by the Re-
gional Administrator that the treatment
works have • keen satisfactorily con-
structed In accordance with the grant
agreement, the grantee may mate a re-
quest for final payment pursoant to
I S6J>4ft contract, or a combination
of the two, unless the Regional Adminis-
trator gives advance written approval for
the grantee to use some other method of
contracting. The cost-plus-a-percentage
of cost method of contracting shall not
be used.
§ 35.938-4 Formal advertising.
Each contract shall be awarded by
means of formal advertising, unless ne-
gotiation Is permitted in accordance with
{ 35.938-5. Formal advertising shall be In
accordance with the following:
(a) Adequate public notice. The
grantee win cause adequate notice to be
given of the solicitation by_ publication
in newspapers or Journals of general cir-
culation, beyond the grantee's locality
(Statewide, generally) Inviting Wda on
the project work, and stating the method
by which bidding documents may be ob-
tained and/or examined. Where the esti-
mated prospective cost of Step 3 con-
struction to ten minion dollars or more,
such notice must generally be published
in trade Journals of Nationwide distri-
bution, The grantee should in addition
solicit btda directly from bidders, if it
maintains g bidders list.
(b) Adequate time for preparing Wds.
Adequate time, generally not less than
30 days must be allowed between the
date when public notice pursuant to
paragraph (a) of this section to first
published and the date by which bids
must be submitted. Bidding documents
(including "fiTlfl^fci""" and drawings)
shaU be available to prospective bidden
from the date when such notice is first
published.
(c) Adequate bidding document*. A
reasonablanumber of bidding documents
(invitations fox bid) shan be prepared
by grantee and shan be furnished upon
request on a first-come, first-served
basis. A complete set of bidding docu-
ments shall be maintained by grantee
and shaU be available for inspection and
copying by any pcrty. Such bidding
documents shall Include:
(1) A complete statement of the work
to be performed, including necessary
drawings and specifications, and the re-
quired completion schedule. (Drawings
and specifications may be m«Mi« available
for inspection instead of being fur-
nished.);
(2) Tbe terms and conditions of the
contract to be awarded;
(3) A clear explanation of the method
of bidding and the method of evaluation
of bid prices, and the basis and method
for award of the contract;
(4) Responsibility requirements or cri-
teria which will be employed In evalua-
ting bidders; Provided, That an experi-
ence requirement or performance bond
may not be utilized unless adequately
Justified under the particular circum-
stances by the grantee;
(5) The following statement:
Any contract or contracts awarded under
this Invitation for Bids are expected to b*
funded In part by a grant from tbe united
States Environmental Protection Agency.
Neither the United State* nor an; of lt> d*-
FEDERAk REdSTEl, VOL. 39, NO. 29—MONDAY, FEBRUARY 11, 1974
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MJUS AN& EMULATIONS
5267
pNrtmtnt*, •genclM or employ*** IM or will
b* • party to this invitation tor Bid* or aojr
resulting contract.;
and
(«) A copy of | 35.938 and 135.939.
(d) Sealed bidt. The grantee shall pro-
vide for bidding by seated Ud and for
the safeguarding of bids received until
public opening.
(e) Amendments to bidding docu-
ments. If grantee desires to amend any
part of the bidding documents (Includ-
ing drawings and specifications) during
the period when bids are being prepared,
the amendments shall be communicated
In writing to all firms who have obtained
bidding documents in time to be con-
sidered prior to the bid opening time;
when appropriate, the period for submis-
sion of bids shall be extended.
The material or service to be pro-
cured Is available from only one person
or firm (and, if the procurement is ex-
pected to aggregate more than $5,000,
the Regional Administrator has given
prior approval);
(c) The aggregate amount involved
does not exceed $2.500, (except as pro-
vided in paragraph (b) of this section);
'd> Deferral of Procurement Action.
Where the grantee has received a written
compliant pursuant to paragraph (a) of
this section, it must defer Issuance of its
solicitation or award or notice to proceed
under the contract (as appropntftte) for
ten days after mailing or delivery of any
written adverse determination. Where
the Regional Administrator has received
a written protest pursuant to paragraph
(b) of this section, he must notify the
grantee promptly and the grantee must
defer Issuance of its solicitation or award
of the construction contract, as appro-
priate, until ten days after it receives
the determination by the Regional Ad-
ministrator. If a determination is made
by either the grantee or the Regional Ad-
ministrator which is favorable to the
complainant, the terms of the solicita-
tion must be revised or the contract must
be awarded (as appropriate) in accord-
ance with such determination.
(e) Enforcement. Noncompllance with
the provisions of this subchaptor affect-
ing procurement will result in (1) total
VOi. **; NO. 19—MONDAY, FfMUAKT 11, 1*74
-------
526*
or partial termination of the grant pur-
suant to 135.950, (2) Ineligibility for
grant assistance which could otherwise
be awarded under this subchapter or (3.)
disallowance of project costs (see
I 35.940-2(J)) Incurred In violation ot
the provisions of this subchapter or ap-
plicable Federal laws, as determined by
the Regional Administrator. The grantee
may appeal adverse determinations by
the Regional Administrator In accord-
ance with the Disputes Article (Article
7 of Appendix A to Subchapter B of tfai»
title).
§ 35.940 Determination of allowable
costs.
The grantee will be paid, upon request.
In accordance with 3 35.945, for the Fed-
eral share of all necessary, costs within
the scope of the approved project and
determined to be allowable In accord-
ance with {30.701 of this chapter, this
subpart, and the grant agreement.
§35.940-1 Allowable project costs.
Allocable project costs of the grantee
which are reasonable and necessary are
allowable. Necessary costs may Include,
but are not limited to:
(a) Costs of salaries, benefits, and ex-
pendable material Incurred by the
grantee for the project, except as pro-
vided in § 940-2(g).
(b) Costs under construction con-
tracts.
(c) Professional and consultant serv-
ices.
(d) Facility planning directly related
to the treatment works.
(e) Sewer system evaluation
(§35.927).
(f) Project feasibility and engineer-
Ing reports.
(g) Costs required pursuant to the
Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970,
(42 U.8.C. 4621 et seq., 4051 et seq.), and
regulations Issued thereunder (Part 4 of
this chapter).
(h) Costs of complying with the Na-
tional Environmental Policy Act, Includ-
ing costs of public notices and hearings.
(1) Preparation of construction draw-
ings, specifications, estimates, and con-
struction contract documents.
(j) Landscaping.
(k) Supervision of construction work.
(1) Removal and relocation or replace-
ment of utilities, for which the grantee
Is legally obligated to pay.
(m) Materials acquired, consumed, or
expended specifically for the project.
(n) A reasonable inventory of labora-
tory chemicals and supplies necessary to
initiate plant operations.
(o) Development and preparation of
an operation and maintenance manual.
(p) Project Identification sign*
f 130.804-4 of this chapter).
§35.940-2 Unallowable COM*.
Costs which are not necessary for the
construction of a treatment works pref-
ect are unallowable. Such costs Include,
but are not limited to:
(a) Basin or areawlde planning not
directly related to the project;
(b) Bonus payments not legally re-
quired for completion of construction in
advance of » contractual oomrdeUon
date;
(c) Personal injury compensation or
damages arising out of the project,
whether determined by adjudication,
arbitration, negotiation, or otherwise;
(d) Fines and penalties resulting from
violations of, or failure to comply with.
Federal, State, or local laws;
(e) Costs outside the scope of the ap-
proved project;
(f) Interest on bonds or any other
form of Indebtedness required to finance
the project costs;
(g) Ordinary operating expenses of
local government, such as salaries and
expenses of a mayor, city council mem-
bers, or city attorney, except as provided
In $ 35.940-4.
(h) Site acquisition (for example,
sewer rlghts-of-way, sewage treatment
plant sites, sanitary landfills and sludge
disposal areas) except as otherwise pro-
vided In § 35.940-3(a).
(1) Costs for which payment has been
or will be received under another Fed-
eral assistance program.
(j) Costs of equipment or material
procured In violation of 8 35.938-4 (h).
§ 35.940-3 Costs allowable, If approved.
Certain direct costs are sometimes
necessary for the contraction of a treat-
ment works and are allowable If reason-
able and approved by the Regional Ad-
ministrator in the grant agreement or a
grant amendment. Such costs Include,
but are not limited to:
(a) Land acquired after October 17,
1973, that will be an Integral part of the
treatment process or that will be used
for ultimate disposal of residues result-
ing from such treatment (for example,
land for spray Irrigation of- sewage
effluent).
(b) Acquisition of an operable portion
of a treatment works.
(c) Rate determination studies re-
quired pursuant to i 35.925-11.
§35.940-4 Indirect cost*.
Indirect costs ot the grantee shall be
allowable in accordance wttb an Indirect
cost agreement negotiated and Incor-
porated in the grant agreement. An in-
direct cost agreement must Identify those
cost elements allowable pursuant to
835.940-1. Where the benefits derived
from a grantee's indirect services cannot
be readily determined, a tump sum for
overhead may be negotiated based upon
a determination that such amount will
be approximately the same as the actual
indirect costs that may be Incurred.
§36.940-5 Dispute!
akfccxMts.
rtmrtmtrng •Mowr-
The grantee should seek to resolve any
questions relating to cost altowabllity or
allocation at Its earliest opportunity (If
possible, -prior to execution of the grant
agreement). Final determinations con-
cerning the anowabttlty of costs; shall be
coudtutTe unless appealed wlthm 89
daxi to accordance wtth tide "Disputes*
artteie (Article T> of the BPA Ctenenl
Grant Conditions (Appendix A, Subchap-
ter B of this title).
§ 35.945 Grant payments.
The grantee shall be paid the Federal
share of allowable costs incurred within
the scope of an approved project, subject
to the limitations of 5535.925-18. 35.-
930-5, and 35.930-8; Provided, That such
payments must be in accordance with
the payment schedule and the grant
amount set forth in the grant agree-
ment and any amendments thereto. The
payment schedule will provide that pay-
ment for Step 1 and Step 2 project work
will be made only on the basis of com-
pletion of the step or, If specified In the
payment schedule in the grant agree-
ment, upon completion of specific tasks
within the step. All allowable costs In-
curred prior to Initiation of construction
of the project must be claimed In the
application for grant assistance for that
project prior to the award of such as-
sistance or no subsequent payment win
be made for such costs.
(a) Initial request for payment. Upon
award of grant assistance, the grantee
may request payment for the unpaid
Federal share of actual or estimated al-
lowable project costs Incurred prior to
grant award subject to the limitations of
§ 35.925-18, and payment for such costs
shall be made in accordance with the
negotiated payment schedule Included In
the grant agreement.
(b) Interim requests for payment. The
grantee may submit requests for pay-
ments for allowable costs Incurred in ac-
cordance with the negotiated payment
schedule included in the grant agree-
ment. Upon receipt of a request for pay-
ment, subject to the limitations set forth
in § 30.602-1 of this subchapter and
5835.935-12, 35.935-13, and 35.936-18,
the Regional Administrator shall cause
to be disbursed from available appro-
priated funds such amounts as are nec-
essary so that the to+al amount of Fed-
eral payments to the grantee for the
project Is equal to the Federal share of
the actual or estimated allowable proj-
ect costs Incurred to date, as certified
by the grantee in Its most recent request
for payment. Generally, payments will be
made within 20 days after receipt of a
request for payment.
(c) Adjustment. At any time or times
prior to final payment under the grant,
the Regional Administrator may cause
any request(s) for payment to be re-
viewed or audited. Each payment there-
tofore made shall be subject to reduction
for amounts Included In the related re-
quest for payment which are found, on
the basis of such review or audit, not to
constitute allowable costs. Any payment
may be reduced for overpayments or in-
creased for underpayments on preceding
requests for payment.
(d) Refunds^ rebate*, credits, etc. The
Federal share of any refunds, rebates,
credits, or q4*"r amounts
Interest thereon) accruing to or received
by the grantee with respect to the proj-
ect, to the extent that they are properly
allocable to eosto for wUeb the mate*
FiOOMU. IfOMMt *OL 39, NO. S9—MONDAY, HEBIUAIY 11, 1974.
-------
RULES AND REGULATIONS
5269
has been paid under a grant, must be
credited to the current State allotment
or paid to the United States. Reasonable
expenses incurred by the grantee for the
purpose of securing such refunds, re-
bates, credits, or other amounts shall be
allowable under the grant when approved
by the Regional Administrator.
(e) Final payment. Upon completion
of final inspection pursuant to § 35.935-
14 and approval of the request for pay-
ment designated by the grantee as the
"final payment request" and upon com-
pliance by the grantee with all applicable
requirements of this subchapter and the
grant agreement, the Regional Adminis-
trator shall cause to be disbursed to the
grantees any balance of allowable proj-
ect cost which has not been paid to the
grantee. The final payment request must
be submitted by the grantee promptly
after final inspection. Prior to final pay-
ment under the grant, the grantee must
execute and deliver an assignment to the
United States, in form and substance
satisfactory to the Regional Counsel, of
the Federal share of refunds, rebates,
credits or other amounts (including any
interest thereon) properly allocable to
costs for which the grantee has been
paid by the Government under the grant,
and a release discharging' the United
States, its officers, agents, and employees
from all, liabilities, obligations, and
claims arising out of the project work or
under the grant, subject only to such ex-
ceptions which may be specified in the
release.
§ 35.950 Suspension or termination of
grants.
Grants may be suspended, in accord-
ance with § 30.902 of this subchapter and
Article 4 of the General Grant Condi-
tions (Appendix A to this subchapter),
or terminated, in accordance with § 30.-
903 of this subchapter and Article 5 of
the General Grant Conditions (Appen-
dix A of this subchapter). The State
agency shall be concurrently notified in
writing of any such suspension or termi-
nation action.
§ 35.955 Grant amendments to increase
grant amounts.
Grant agreements may be amended in
accordance with § 30.901 of this chapter
with respect to project changes which
have been approved in accordance with
§ 30.900 and § 35.935-11 of this sub-
chapter: Provided, That no grant agree-
ment may be amended to increase the
amount of a grant unless the State
agency has approved the grant increase
from available State allotments and re-
allotments in accordance with § 35.915.
§ 35.960 Disputes.
Final determinations by the Regional
Administrator concerning ineligibility of
projects for which priority has been de-
termined in accordance with § 35.915 and
final determinations by the Regional Ad-
ministrator concerning disputes arising
under a grant pursuant to this subpart
shall be final and conclusive unless ap-
pealed by the applicant or grantee within
30 days from the date of receipt of such
final determination in accordance with
the "Disputes" article of General Grant
Conditions .(Article 7 of Appendix A to
this subchapter).
APPENDIX A
COST EFFECTIVENESS ANALYSIS GUIDELINES
a. Purpose.—These guidelines provide ad-
visory Information concerning basic method-
ology for determining the most cost-effective
waste treatment management system or the
most cost-effective component part of any
waste treatment management system.
b. Authority.—The guidelines contained
herein are provided pursuant to section 212
(2) (C) of the Federal Water Pollution Con-
trol Act Amendments of 1972 (the Act).
c. Applicability.—These guidelines apply
to the development of plans for and the
selection of component parts of a waste
treatment management system for which a
Federal grant is awarded under 40 CPB,
Part 35.
d. Definitions.—Definitions of terms used
in these guidelines are as follows:
(1) Waste treatment management sys-
tem.—A system used to restore the integrity
of the Nation's waters. Waste treatment
management system is used synonymously
with complete waste treatment system as de-
fined in 40 CFR, Part 35.905-3.
(2) Cost-effectiveness analysis.—An analy-
sis performed to determine which waste
treatment management system or compo-
nent part thereof will result In the minimum
total resources costs over time to meet the
Federal, State or local requirements.
(3) Planning period.—The period over
which a waste treatment management sys-
tem is evaluated for cost-effectiveness. The
planning period commences with the Initial
operation of the system.
(4) Service life.—The period of time dur-
ing which a component of a waste treat-
ment management system will be capable of
performing a function.
(5) Useful life.—The period of time dur-
ing which a component of a waste treat-
ment management system will be required to
perform a function which is necessary to
the system's operation.
e. Identification, selection and screening
of alternatives—(1) Identification of alter-
natives.—All feasible alternative waste man-
agement systems shall be initially identified.
These alternatives should include systems
discharging to receiving waters, systems
using land or subsurface disposal techniques,
and systems employing the reuse of waste-
water. In identifying alternatives, the possi-
bility of staged development of the system
shall be considered.
(2) Screening of* alternatives.—The iden-
tified alternatives shall be systematically
screened to define those capable of meeting
the applicable Federal, State, and local
criteria.
(3) Selection of alternatives.—The
screened alternatives shall be Initially ana-
lyzed to determine which systems have cost-
effective potential and which should be fully
evaluated according to the cost-effectiveness
analysis procedures established In these
guidelines.
(4) Extent of effort.—The extent of effort
and the level of sophistication used In the
cost-effectiveness analysis should reflect the
size and importance of the project.
f. Cost-effective analysis procedures—(1)
Method of Analysis.—The resources costs
shall be evaluated through the use of. oppor-
tunity costs For those resources that can be
expressed hi monetary terms, the Interest
(discount) rate established in section (f) (5)
will be used. Monetary costs shall be calcu-
lated In terms of present worth values or
equivalent annual values over the planning
period as denned In section (f)(2). Non-
monetary factors (e.g., social and environ-
mental) shall be accounted for descriptively
in the analysis in order to determine their
significance and Impact.
The most cost-effective alternative shall be
the waste treatment management system
determined from the analysis to have the
lowest present worth and/or equivalent an-
nual value without overriding adverse non-
monetary costs and to realize at least identi-
cal minimum benefits in terms of applicable
Federal, State, and local standards for ef-
fluent quality, water quality, water reuse
and/or land and subsurface disposal.
(2) Planning period.—The planning period
for the cost-effectiveness analysis shall be 20
years.
(3) Elements of costs*—The costs to be
considered shall Include the total values of
the resources atrlbutable to the waste treat-
ment management system or to one of Its
component parts. To determine these values,
all monies necessary for capital construction
costs and operation and maintenance costs
shall be identified.
Capital construction costs used in a cost-
effectiveness analysis shall Include all con-
tractors' costs of construction including over-
head and profit; costs of land, relocation, and
right-of-way and easement acquisition;
design engineering, field exploration, and en-
gineering services during construction; ad-
ministrative and legal services including
costs of bond sales; startup costs such as op-
erator training; and Interest during con-
struction. Contingency allowances consistent
with the level of complexity and detail of the'
cost estimates shall be Included.
Annual costs for operation and mainte-
nance (Including routine replacement of
equipment and equipment parts) shall be
included in the cost-effectiveness analysis.
These costs shall be adequate to ensure ef-
fective and dependable operation during the
planning period for the system. Annual costs
shall be divided between fixed 'annual costs
and costs which would be dependent on the
annual quantity of wastewater collected and
treated.
(4) Prices.—The various components of
cost shall be calculated on the basis of mar-
ket prices prevailing at the time of the cost-
effectiveness analysis. Inflation of wages and
prices shall not be considered In the analysis.
The implied assumption Is that all prices
involved will tend to change over time by
approximately the same percentage. Thus,
the results of the cost effectiveness analysis
will not be affected by changes In the gen-
eral level of prices.
Exceptions to the foregoing can be made
if there is justification for expecting signifi-
cant changes in the relative prices of certain
items during the planning period. If such
cases are identified, the expected change in
these prices should be made to reflect their
future relative deviation from the general
price level.
(5) Interest (discount) rate.—A rate of 7
percent per year will be used for the cost-
effectiveness, analysis until the promulgation
of the Water Resources Council's "Proposed
Principles and Standards for Planning Water
and Related Land Resources." After promul-
gation of the above regulation, the rate
established for water resource projects shall
be used for the cost-effectiveness analysis.
(6) Interest during construction.—In cases
where capital expenditures can be expected
to be fairly uniform during the construction
FEDERAL REGISTER, VOL. 39, NO. 29—MONDAY, FEBRUARY 11, 1974
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5270
RULES AND REGULATIONS
period, Interest during construction may be
calculated as I x Vt P X C where:
I = the Interest (discount) rate In Section
1(6).
P=the construction period In years.
C = the total capital expenditures.
In cases when expenditures will not be
uniform, or when the construction period
will be greater than three years, Interest dur-
ing construction shall be calculated on a
year-by-year basis.
(7) Service life.—The service life of treat-
ment works for a cost-effectiveness analysis
shall be as follows:
Land Permanent
Structures 30-50 years
(Includes plant buildings,
concrete process tankage,
basins, etc.; sewage collec-
tion and conveyance pipe-
lines; lift station struc-
tures; tunnels; outfalls)
Process equipment 15-30 years
(includes major process
equipment such as clarifler
mechanisms, vacuum niters,
etc.; steel process tankage
and chemical storage facili-
ties; electrical generating
facilities on standby service
only).
Auxiliary equipment 10-15 years
(Includes instruments and
control facilities; sewage
pumps and electric motors;
mechanical equipment such
as compressors, aeration sys-
tems, centrifuges, chlori-
nators, etc.; electrical gen-
erating facilities on regular
service).
Other service life periods will be acceptable
when sufficient justification can be provided.
Where a system' or a component Is for
Interim service and the anticipated useful
life Is less than the service life, the useful
We shall be substituted for the service life of
the facility in the analysis.
(8) Salvage value .—Land for treatment
works, Including land used as part of the
treatment process or for ultimate disposal of
residues, shall be assumed to have a salvage
value at the end of the planning period equal
to its prevailing market value at the tune of
the analysis. Right-of-way easements shall
be considered to have a salvage value not
greater than the prevailing market value at
the time of the analysis.
Structures will be assumed to have a
salvage value if there is a use for such struc-
tures at the end of the planning period. In
this case, salvage value shall be estimated
using straightline depreciation during the
service life of the treatment works.
For phased additions of process equipment
and auxiliary equipment, salvage value at the
end of the planning period may be estimated
under the same conditions and on the same
basis as described above for structures.
When the anticipated useful life of a facil-
ity is less than 30 years (for analysis of in-
terim facilities), salvage value can be claimed
for equipment where it can be clearly dem-
onstrated that a specific market or reuse
opportunity will exist.
APPENDIX B
FEDERAL GUIDELINES
USER CHARGES FOR OPERATION AND MAINTE-
NANCE OF PtFBLICLT OWNED TREATMENT
WORKS
(a) Purpose.—To set forth advisory Infor-
mation concerning user charges pursuant to
Section 204 of the Federal Water Pollution
Control Act Amendments of 1972, PL 92-500,
hereinafter referred to as the Act. Applicable
requirements are set forth in Subpart E (40
CFRPart35).
(b) Authority.—The Authority for estab-
lishment of the user charge guidelines is
contained in section«C04(b) (2) of the Act.
(c) Background.—Section 204(b)(l) of
the Act provides that after March 1/1973,
Federal grant applicants shall be awarded
grants only after the Regional Administrator
has determined that the applicant has
adopted or will adopt a system of charges
to assure that each recipient of waste treat-
ment services will pay its proportionate
share of the costs of operation and main-
tenance, including replacement. The intent
of the Act with respect to user charges is
to distribute the cost of operation and main-
tenance of publicly owned treatment works
to the pollutant source and to promote self-
sufficiency of treatment works with respect
to operation and maintenance costs.
(d) Definitions.—(1) Replacement.—Ex-
penditures for obtaining and installing
equipment, accessories, or appurtenances
which are necessary to maintain the capacity
and performance during the service life of
the treatment works for which such works
were designed and constructed. The term
"operation and maintenance" includes
replacement.
(2) User charge.—A charge levied on users
of treatment works for the cost of operation
and maintenance of such works.
(e) Classes of users.—At least two basic
types of user charge systems are common.
The first is to charge each user a share of
the treatment works operation and mainte-
nance costs based on his estimate of meas-
ured proportional contribution to the total
treatment works loading. The second system
establishes classes for users having similar
flows and waste water characteristics; i.e.,
levels of biochemical oxygen demand, sus-
pended solids, etc. Each class is then assigned
its share of the waste treatment works opera-
tion and maintenance costs based on the pro-
portional contribution of the class to the
total treatment works loading. Either system
is in compliance with these guidelines.
(f) Criteria against which to determine
the adequacy of user charges—The user
charge system shall be approved by the Re-
gional Administrator and shall be main-
tained by the grantee in accordance with the
following requirements:
(1) The user charge system must result
In the distribution of the cost of operation
and maintenance of treatment works within
the grantee's Jurisdiction to each user (or
user class) in proportion to such user's con-
tribution to the total wastewater loading of
the treatment works. Factors such as
strength, volume, and delivery flow rate
characteristics shall be considered and In-
cluded as the basis for tihe user's contrlbut
Uon to ensure a proportional distribution of
operation and maintenance costs to each
user (or user class).
(2) For the first year of operation, opera-
tion and maintenance costs shall be based
upon past experience for existing treatment
works or some other rational method that
can be demonstrated to be applicable.
(3) The grantee shall review user charges
annually and revise them periodically to re-
flect actual treatment works operation and
maintenance costs.
(4) The user charge system must generate
sufficient revenue to offset the cost of all
treatment works operation and maintenance
provided by the grantee.
(6) The user charge system must be Incor-
porated In one or more municipal legislative
enactments or other appropriate, authority.
If-the project Is a regional treatment works
accepting waste waters from treatment works
owned by others, then the subscribers re-
ceiving waste treatment services from the
grantee shall have adopted user charge sys-
tems in accordance with this guideline. Such
user charge systems shall also be Incorpo-
rated in the appropriate municipal legisla-
tive enactments or other appropriate
authority.
(g) Model user charge systems.—The user
charge system adopted by the applicant must
result In the distribution of treatment works
operation and maintenance costs to each user
(or user class) in approximate proportion to
his contribution to the total wastewater
loading of the treatment works. The follow-
ing user charge models can be used for this
purpose; however, the applicant is not lim-
ited to their use. The symbols used in the
models are as defined below:
CT = Total operation and maintenance
(O. & M.) costs per unit of time.
Cu=;A user's charge for O. & M. per unit
of time.
C« = A surcharge for wastewaters of exces-
sive strength.
Vc = O&M cost for transportation and
treatment of a unit of wastewater
volume.
Vu — Volume contribution from a user per
unit of time.
VT = Total volume contribution from all
users per unit of time.
Bc = O&M cost for treatment of a unit of
biochemical oxygen demand (BOD).
Bu = Total BOD contribution from a user
per unit of time.
BT = Total BOD contribution from all users
per unit of time.
B = Concentration of BOD from a user
above a base level.
Sc = O&M cost for treatment of a unit of
suspended solids.
Su=Total suspended solids contribution
from a user per unit of time.
S=Concentration of SS from a user above
a base level.
Pc = O&M cost for treatment of a unit of
any pollutant.
Fu = Total contribution of any pollutant
from a user per unit of time.
FT — Tetal contribution of any pollutant
from all users per unit of time.
P = Concentration of any pollutant from
a user above a base level.
(1) Model No. 1.—If the treatment works
Is primarily flow dependent or if the BOD,
suspended solids, and other pollutant con-
centrations discharged by all users are ap-
proximately equal, then user charges can be
developed on a volume. basl$ in accordance
with the model below:
CT
Cu=—(Vu)
VT
(2) Model No. 2.—When BOD, suspended
solids, or other pollutant concentrations from
a user exceed the range of concentration of
these pollutants in normal domestic sewage,
a surcharge added to a base charge, calcu-
lated by means of Model No. 1, can be levied.
The surcharge can be computed by the model
fcelow:
C.= [B^B) +Sc(S) + Pc(P) ] V.
(3) Model No. 3.—This model Is commonly
called the "quantity/quality formula":
Cu=VcV,+BcBu+ScSu+PcP«
(h) Other considerations.—(1) Quantity
discounts to large volume users will not be
acceptable. Savings resulting from economies
of scale should be apportioned to all users
or user classes.
(2) User charges may be established based
on a percentage of the charge for water usage
only In cases where the water charge Is based
on a constant coat per unit of consumption,
[FR Doc.74-3267 FUed 2-8-74;8:45 ami
FEDERAL REGISTER, VOl. 39, NO. 29—MONDAY, FEBRUARY 11, 19r
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APPENDIX C - LIST OF REGIONAL OFFICES
-------
APPENDIX C
Environmental Protection Agency
Region I
JFK Federal Building
Room 2203
Boston, Massachusetts 02203
Environmental Protection Agency
Region II
26 Federal Plaza
Room 908
New York, New York 10007
Environmental Protection Agency
Region III
Sixth and Walnut Streets
Philadelphia, Pennsylvania 19106
Environmental Protection Agency
Region IV
345 Courtland St., NE
Atlanta, Georgia 30308
Environmental Protection Agency
Region V
230 South Dearborn Street
Chicago, Illinois 60604'
Environmental Protection Agency
Region VI
1201 Elm Street
1st. International Building
Dallas, Texas 75270
Environmental Protection Agency
Region VII
1735 Baltimore Avenue
Kansas City, Missouri 64108
Environmental Protection Agency
Region VIII
1860 Lincoln Street
Suite 900
Denver, Colorado 80203
Environmental Protection Agency
Region IX
100 California Streeet
San Francisco, California 94111
Environmental Protection Agency
Region X
1200 Sixth Avenue
Seattle, Washington 98101
U.S. Government Printing Office: 1977-778-183/101 Region 8
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