905R76106
       Handbook
              _ f
       Procedures
    Construction Grants Program
     for Municipal Wastewater
        Treatment Works
TRANSMITTAL MEMORANDUM
            No. 76-1
           August 1976
       Municipal Construction Division
        Water Program Operations
    Office of Water and Hazardous Materials
      U.S. Environmental Protection Agency
          Washington, D.C. 20460
                                 MCD-03.1

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        Handbook
              of
       Procedures
    Construction Grants Program
     for Municipal Wastewater
         Treatment Works
TRANSMITTAL MEMORANDUM
             No. 77-1
          DECEMBER 1976
       Municipal Construction Division
        Water Program Operations
    Office of Water and Hazardous Materials
      U.S. Environmental Protection Agency
          Washington, D.C. 20460
                                  MCD-03. 2

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        Handbook
              of
       Procedures
    Construction Grants Program
     for Municipal Wastewater
         Treatment Works
TRANSMITTAL MEMORANDUM
             NO. 78-1
          DECEMBER 1977
       Municipal Construction Division
        Water Program Operations
    Office of Water and Hazardous Materials
      U.S. Environmental Protection Agency
          Washington, D.C. 20460
                                  MCD-03.3

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       EXECUTIVE CORRESPONDENCE
            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                              WASHINGTON, D,C. 20460
                            "CO  I  I  IOTW                     OFFICE OF WATER AND
                                                            HAZARDOUS MATERIALS

                                                  CONSTRUCTION  GRANTS
                                                  TRANSMITTAL MEMORANDUM
                                                  TM No.  78-1
    SUBJECT:  Revisions to Construction Grants
              Handbook of Procedures
    FROM:  l  John T. Rhett,  Deputy Assistant Admin i
                " Water Program Operations (WH-547)
              All Regional  Administrators I-X
              ATTN:  Water  Division  Directors
    PURPOSE:
         The purpose of this  memorandum is to transmit revised pages  for the
    Construction Grants Handbook  of  Procedures.


    DISCUSSION:
         The attached changes  result  from the issuance of Program Requirements
    Memoranda and other policy statements since the date of the  last  TM  (TM
    77-1, 1-10-77).
    HANDBOOK REVISIONS:
         1.  Page II-7:   The sentence specifying information required  for
    priority lists was altered  in  accordance with PRM 77-7, 5-31-77.


         2.  Page III-4:   The reference to PG-53 was deleted; certain  references
    to the procurement regulations were added; and, a statement was  added
    concerning the use of the special engineering contract on projects  for
    which Farmers Home Administration provides local share assistance  (per
    Program Operations Memorandum  77-5, 2-7-77).
DO  NOT WRITE ON  THIS COVER AS  IT IS INTENDED FOR RE-USE
  RETURN IT WITH  THE FILE COPIES TO ORIGINATING  OFFICE

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     3.  Pages IV-12, V-6 & 7 and VI-6 & 7:  PL 94-488 contains provisions
which negate earlier restrictions on the use of revenue sharing funds
for matching purposes in the Construction Grants Program.   Therefore,
restrictive language in the Handbook has been deleted on the above
pages.  Also, references to PRM 75-1 (PG-3) have been deleted for the
same reason.

     4.  Page IV-15:  Under "Procedures" in paragraph 4, form 240 was
changed to "424", the phrase "and the U.S. Department of the Treasury"
was dropped, and the date 8-8-73 was changed to "2-17-76"  - all in
accordance with circular 1082, dated 2-17-76.

     5.  Pages V-5 & 13:  Under "Discussion" (V-5) a phrase has been
added to emphasize the need for grantees to undertake preliminary easement
work during Step 2; also, policy referenced in paragraph II, V-13.  (per
PRM 77-6, 5-4-77.)

     6.  Page V-17:  Under paragraph (5), after present statement on 5%
bid bond add the phrase:  "unless required by State/local  law".  This
phrase was inadvertently omitted from the change effected by TM 77-1.

     7.  Page VI-12:  Special "NOTE" has been added to emphasize the
importance of managing the preconstruction phase of Step 3 projects in
accordance with Program Operations Memorandum 77-12, 6-21-77.

     8.  Page VI-13:  Paragraph "d" added to caution that EPA concurrence
is required if grantee rejects all bids,  (per memorandum re:  rejection
of bids, 9-1-76.)

     9.  Page VI-30:  A statement indicating that EPA letters approving
user charge systems must indicate that approval relates only to the
portion of the system of user charges applicable to operation and maintenance
cost - Program Operations Memorandum 77-11, 6-16-77.

    10.  Page VII-6:  An example of an ineligible type of ordinance
(sewer use ordinance) has been added to the statement on special assessment
districts.

    11.  Page VII-14:  The section on "Tools" was expanded to reflect
the provisions of the memorandum "Grant Eligibility of Certain Equipment"
(4-15-77).  This memorandum expands the interpretation of allowable
"tools" to include certain basic tools/machines which would not ordinarily
be considered "special purpose" but are necessary to assure the uninterrupted
functioning of the facility.

    12.  Pages VII-26 & 28:  Language was added to reflect the need to
expedite actual disbursements to grantees.  The requirements are stipulated

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in the memorandum "Construction Grant Payment Processing" dated July 27,
1977, from the Assistant Administrator for Water and Hazardous Materials
and the Acting Assistant Administrator for Planning and Management.

    13.  Appendix B:  New material  was added as listed below (also
included is a revised cover sheet for the Appendix):

         - New application form 5700-32 (Revised 6-76)

         - New form 5700-41, Cost Summary for Subagreements

         - New form 424, Notification of Grant-in-Aid Action

         - Summary of "Regional Reporting Requirements through RCGMIS"

    14.  Also attached is a replacement for the last page of the listing
of program directives appearing in  Appendix D.

FILING INSTRUCTIONS:

     1.  File this TM in Appendix D of the Grants Handbook.

     2.  Substitute the attached pages ("bottom" dated December 1977,
         TM 78-1) for the appropriate pages presently in the Handbook.

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                                     CONTENTS
                                                                            Page

 FOREWORD	        i
 ACKNOWLEDGEMENT	      i i i

 CHAPTER I   INTRODUCTION

         A.  General	      1-1
         B.  Legislative History	      1-1
         C.  Handbook Organization and Use	      1-3
             1.  Purpose	      1-3
             2.  Structure	      1-3
             3.  Format	      1-4
             4.  Rel ated Materi al	      1-5
             5.  Updating	      1-5
             6.  Appendices	      1-6

 CHAPTER II  STATE PROGRAM

         A.  Planning Processes	     II-l
             1.  General	     II-l
             2.  State Continuing Planning Process	     II-l
             3.  Basin Plans	     11-2
             4.  Areawide Waste Treatment Management Plans	     II-3
             5.  Facility Plans	     II-4
             6.  Municipal Permits	     11-5
         B.  State Strategy and Program	     II-6
             1.  Program Submittal	     11-6
             2.  State Priority System and List	     II-6
             3.  Funding	     II-8
             4.  Delegation of Authority	     II-9

CHAPTER III  PREAPPLICATION INFORMATION

         A.  General	    III-l
         B.  Applicant Eligibility	    III-2
         C.  Preapplication Conference	    III-3
             1.  Important Dates	    III-3
             2.  Contracts for Personal and Professional Services	    III-4
             3.  Administrative Requirements	    III-5
             4.  Technical Requirements	    II1-6

 CHAPTER IV  STEP 1  GRANT PROCESSING

         A.  Introduction	     IV-1
         B.  Schematic Flow Diagram	     IV-2
         C.  Application Contents	     IV-3

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                                                                    Page

D.  Plan of Study Review	     IV- 4
    1.  Contents	     IV- 4
    2.  Planning Considerations	     IV- 6
    3.  Prior Costs	     IV- 6

E.  Administrative Review	     IV- 8
    1.  Clearinghouse Comments	     IV- 8
    2.  Priority List Compliance and Certification	     IV- 9
    3.  Application Form	     IV-10
    4.  Contracts and Subagreements	     IV-12

F.  Grant Award Procedures	     IV-14
    1.  Regional ized Procedures	     IV-14
    2.  Notification of Grant Award Action	     IV-14
    3.  Grants Information and Control System (GICS)	     IV-15
    4.  Clearinghouse Notification	     IV-15
    5.  Grant Agreement/Amendment	     IV-16

G.  Preparation of the Facility Plan	     IV-17

H.  Administrative Review (Facility Plan)	     IV-18
    1.  Clearinghouse Comments	     IV-18
    2.  State Review and Certification	     IV-19

I.  Facility Plan Review	     IV-20
    1.  Summary, Conclusions and Recommendations	     IV-22
    2.  Introduction	     IV-22
        2.1  Study, Purpose and Scope	     IV-22
        2.2  Planning Area (Map)	     IV-22

    3.  Effluent Limitations	     IV-22

    4.  Current Situation	     IV-24
        4.1  Conditions in the Planning Area	     IV-24
        4.2  Existing Wastewater Flows and Treatment Systems..     IV-25
        4.3  Infiltration and Inflow	     IV-26
        4.4  Performance of Existing Systems	     IV-30

    5.  Future Situation	     IV-31
        5.1  Land Use	     IV-31
        5.2  Demographic and Economic Projections	     IV-32
        5.3  Forecasts of Flow and Waste Load	     IV-33
        5.4  Future Environment of the Planning
               Area Without the Project	     IV-34

    6.  Alternatives	     IV-34
        6.1  Optimum Operation of Existing Facilities	     IV-34
        6.2  Regional  Solutions	     IV-35
        6.3  Waste Treatment Systems	     IV-35
        6.4  Evaluation (Monetary, Environmental,                       (
               Implementation)	     IV-39
                                VI

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            7.  Plan Selection	     IV-42
                7.1  Views of Public and Concerned
                       Interests on Alternatives	     IV-42
                7.2  Evaluation and Ranking of Proposals	     IV-43
                7.3  Selected Plan (Major Feature Summary)
                       and Reasons for Selection	     IV-44
                7.4  Environmental Impacts of Selected Plan	     IV-44

            8.  Cost Estimates, Preliminary Designs	     IV-45
                8.1  Description of Design	     IV-45
                8.2  Summary of Cost Estimates	     IV-46

            9.  Arrangements for Implementation	     IV-47
                9.1  Institutional Responsibilities	     IV-47
                9.2  Implementation Steps	     IV-48
                9.3  Operation and Maintenance	     IV-48
                9.4  Financial Requirements	     IV-49

           10.  Summary of Environmental Considerations	     IV-50
                a.   Criteria for Determining When to Prepare
                      an Environmental Impact Statement	     IV-51
                         Historical and Archaeological Sites	     IV-52
                         Wetlands, Flood Plains, Coastal
                           Zones, Wild and Scenic Rivers,
                           Fish and Wildlife	     IV-54
                    (3)  NEPA Criteria for Determining When
                           to Prepare an EIS	     IV-56
                b.   No EIS Required	     IV-57
                    (1)  Negative Declaration	     IV-57
                    (2)  Environmental Impact Appraisal	     IV-58
                    (3)  Facility Plan Approval	     IV-58
                    (4)  Grants Information and Control System (GICS).     IV-58
                c.   Prepare EIS	     IV-58
                    (1)  Notice of Intent	     IV-58
                    (2)  Draft EIS	     IV-59

CHAPTER V  STEP 2 GRANT PROCESSING

        A.  Introduction	      V- 1
        B.  Schematic Flow Diagram	      V- 2
        C.  Application Contents	      V- 3
        D.  Facility Plan Approval	      V- 3
        E.  Administrative Review	      V- 4
            1.  Priority List Compliance and Certification	      V- 4
            2.  Application Form	      V- 5
            3.  Contracts and Subagreements	      V- 7
            4.  Assurances and Program Requirements	      V- 8

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        F.  Grant Award Procedures	       V-  9
        6.  Preparation of Plans and Specifications	       V-10
        H.  Predesign Conference	       V-ll
        I.  Review of Plans and Specifications	       V-14
            a.  Administrative Review	       V-15
                (1)  Supplemental  General  Provisions	       V-15
                (2)  Equal Employment Opportunity	       V-16
                (3)  Davis-Bacon Act	       V-17
                (4)  Flood Insurance	       V-17
                (5)  Bonding	       V-17

            b.  Technical  Review	       V-18
                (1)  Safety Precautions	       V-18
                (2)  Mitigative Measures	       V-18
                (3)  Bypassing	       V-18
                (4)  Project Sign	       V-18
                (5)  Reliability and Flexibility	       V-19
                (6)  Operation and Maintenance	       V-19
                (7)  Public Water Supply	       V-19
                (8)  Chemical  Storage	       V-19
                (9)  Ventilation	       V-19
               (10)  Laboratory Facilities	       V-19
               (11)  Emergency Alarms	       V-19
               (12)  Use of Mercury	       V-20
               (13)  Sewers	       V-20
               (14)  Equipment	       V-20
               (15)  Shellfish Waters	       V-20
               (16)  Pretreatment	       V-20

            c.  Plan and Specification Approval	       V-21

CHAPTER VI  STEP 3 GRANT PROCESSING

        A.  Introduction	      VI-  1
        B.  Schematic Flow Diagram	      VI-  2
        C.  Application Contents	      VI-  3
        D.  Plans and Specifications Approval	      VI-  4
        E.  Administrative Review	      VI-  4
            1.  Priority List Compliance and Certification	      VI-  4
            2.  Application Form	      VI-  5
            3.  Contracts and Subagreements	      VI-  7
            4.  Assurances	      VI-  8
                a.  Flood Disaster Protection Act of 1973	      VI-  9
                b.  Sewer Use Ordinance	      VI-  9

            5.  Operation and Maintenance Scheduling	      VI-10
                                       vm

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                                                                             Page

             6.  Sewer System Rehabilitation Scheduling	     VI-10
             7.  Institutional Arrangements	     VI-10

         F.  Grant Award Procedures	     VI-11
             5.  Grant Agreement/Amendment	     VI-11

         G.  Procurement of Construction Contracts	     VI-13
             1.  Authorization and Formal Advertising for Bids	     VI-13
             2.  Review of Bids	     VI-14
             3.  Grant Increases/Decreases	     VI-15
             4.  Protests	     VI-16
             5.  Authorization to Award Contracts	     VI-18

         H.  Preconstruction Conference	     VI-18

         I.  Monitoring of Construction Activities	     VI-21
             1.  Change Orders	     VI-21
             2.  On-Site Inspections	     VI-23
             3.  Payment Conditions	     VI-26
                 a.  Operation and Maintenance Manual	     VI-27
                 b.  User Charge System	     VI-27
                 c.  Industrial  Cost Recovery System	     VI-27
                 d.  Sewer Use Ordinance	     VI-27
                 e.  Rehabilitation Program	     VI-28
                 f.  Final  Inspection	     VI-28

             4.  User Charge System	     VI-28
             5.  Industrial Cost Recovery System	     VI-30
             6.  Operation and Maintenance Program	     VI-33
                 a.  Staffing and Training	     VI-35
                 b.  Administrative Functions	     VI-35
                 c.  Budget	     VI-36
                 d.  Emergency Operating Plan	     VI-36
                 e.  Operation and Maintenance Manual	     VI-37

CHAPTER VII   FINANCIAL CONSIDERATIONS

         A.  Introduction	    VII- 1
         B.  Allowable and Unallowable Costs	    VII- 2
             1.  General	    VII- 2
             2.  Allowability Determinations	    VII- 3
             3.  Allowability/Eligibility of  Miscellaneous Costs	    VII- 3
                   Indirect Costs	    VII- 3
                   Travel  Costs	    VII- 3
                   Bond Costs	    VII- 4
                   Liquidated Damages	    VII- 4
                   Bid Bond Forfeiture	    VII- 4
                   Rate Studies	    VII- 5

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                                                                     Page

           Financial  Reports and Studies	     VII- 5
           Establishment of Special  Assessment Districts.  .  .  .     VII- 6
           Public Liaison Services	     VII- 6
           Assistance with State and Federal  Regulations.  .  .  .     VII- 6
           Redesign/Rep!anning Costs Resulting from
             Changes  in Federal  Requirements	     VII- 7
           Costs of Implementing the Uniform  Relocation
             Assistance and Real Property Acquisition
             Policies Act of 1970 (PL 91-646)	      VII- 7
           Field Surveys to Identify Cultural  Resources.  .  .  .      VII- 8
           Industrial Planning	     VII- 8
           Facilities Serving Communities and  Federal Facilities   VII- 8
           Site Acquisition vs.  Site Preparation Costs	     VII- 9
           Certificate as to Title to Project  Site	     VII-10
           Acquisition of Privately or Publicly Constructed
             Waste Treatment Facilities	      VII-10
           Demolition of Existing Structures	     VII-10
           Removal, Relocation and/or Replacement of Utilities.     VII-11
           Restoration of Streets and Rights-of-Way	      VII-12
           Mobile Equipment	      VII-12
           Office Equipment and Furnishings	      VII-13
           Shop Furnishings	      VII-13
           Laboratory Equipment and Supplies	       VII-13
           Safety Equipment	      VII-14
           Tools	      VII-14
          "Replacement Parts	       VII-14
           Collection System Maintenance Equipment	       VII-15
           Project Inspection	      VII-15
           Groundwater Monitoring Facilities	       VII-15
           Biological "Seeding"	'.      VII-16
           Services Charges	      VII-16
           Fringe Benefits	       VII-16
           Labor Charges and Related Costs	       VII-17
           Start-up Services	       VII-17

C.   Force Account	'	       VII-23
     1.   General	        VII-23
     2.   EPA Prior Approvals	        VII-24
     3.   Other Considerations	       VII-25

D.   Payments	        VII-25
     1.   General	        VII-25
     2.   Prior Costs	        VI1-26
     3.   Schedules	        VII-27
     4.   Interim Payments	       VII-28
          a.  Payment Requests  Review	        VII-28
          b.  Documentation	        VII-29
          c.  Grant Conditions	       VII-29
     5.   Final Payments	       VII-30
     6.   Refunds, Rebates, Credits, etc	       VII-30
                                                       Revised:  TM 77-1
                                                       December 1976

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            Increases and Decreases	
            1.  Increases	
            2.  Increase Notification Procedure.
            3.  Decreases	
            4.  Decrease Notification Procedure.
            Audits.
            1.   General	
            2.   Objective	
            3.   Types of Audi ts	
            4.   Criteria for Choosing Projects	
            5.   Major Activity Areas for Audit Focus,
            6.   Final Report	
                                                          VII-31
                                                          VII-31
                                                          VII-31
                                                          VII-32
                                                          VII-32

                                                          VII-33
                                                          VII-33
                                                          VII-33
                                                          VII-34
                                                          VII-34
                                                          VII-35
                                                          VII-36
APPENDICES

  Appendix  A
  Appendix  B
  Appendix  C
  Appendix  D
Flow Diagram
Forms
Checklist for Plans and Specifications Review
Transmittal Memoranda
                                     XI

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         CHAPTER I




       INTRODUCTION
A.  General



B.  Legislative History



C.  Handbook Organization and Use

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A.  GENERAL

     This chapter describes the organization of the handbook and
its use in administration of the construction grants program.
Background information is presented as a foundation for later
chapters.

B.  LEGISLATIVE HISTORY

     Federal financial aid in the construction of municipal sewage
treatment works was first authorized in 1948.  This was a loan
program which was never implemented because necessary funds were
not appropriated by Congress.

     The Federal Water Pollution Control Act of 1956, Public Law
84-660 (PL 84-660), included the first authorization for Federal
grants to assist in the construction of waste treatment works.
Selection of projects to be funded was made the responsibility of
the States, reflecting the policy of Congress to ...
pnnAZMz. and piotact tkn pfUmany fLpovu>-ib^LLti oft thu.
Jin pi
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     The 1966 Amendments were the last major legislative changes
prior to the passage of PL 92-500 in 1972.   There were, however, other
legislative actions which occurred in that  period which had a major
impact upon the program.  Most important of these were enactment of
the National Environmental Policy Act (NEPA) in 1969, and creation of
the U.S. Environmental Protection Agency (EPA) in 1970.

     Enactment of PL 92-500 in 1972 resulted in extensive changes
in the construction grants program.  The Federal share was increased
to 75% of eligible costs and projects involving sewage collection
system construction, sewer system rehabilitation, and (under certain
conditions) combined sewer system separation became eligible for grants.
In addition, funds were included to reimburse those projects which
had proceeded under the reimbursement provisions of the earlier
statutes.  Also, a strong enforcement program was called for which
would encompass the statewide planning process, areawide planning,
facilities planning,  the construction grants program, and discharge
permits.

     This handbook describes actions necessary to the administration
of the construction grants program under PL 92-500 and other pertinent
laws, rules and regulations.
                             1-2

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C.  HANDBOOK ORGANIZATION AND USE

     1.   Purpose

          This Handbook is intended to serve as a guide in processing
grant applications for Step 1, Step 2 and Step 3 projects.  For
consistency, the Handbook is organized for the processing of grants
as of July 1, 1975.  All  new projects must begin at the Step 1  stage
as of this date.  Portions of the Handbook can also be applied  to the
review of pre-July 1, 1975 applications by referring to appropriate
chapters.

          The Handbook pertains to processing procedures for both
administrative and technical functions, and these functions are
presented in sequence throughout all steps.  However, the review of
administrative and technical functions should be done concurrently
whenever possible.

          While the administrative procedures to be followed in
processing of construction grant applications are summarized in this
Handbook, a more comprehensive statement of the administrative and
management requirements is described in the Grants Administration
Manual  prepared by the Grants Administration Division, Office of
Resources Management, Office of Planning and Management,  EPA.


     2.   Structure

          The processing of grant applications for Step 1, Step 2 and
Step 3 projects is described in Chapters IV, V, and VI respectively.
These Chapters are preceded by background and general information in
Chapters I, II and III and followed by the Financial Considerations
of Chapter VII.  The latter Chapter contains information common to the
processing of each category of grant, including eligible costs  and
the processing of payment requests.

          The Handbook begins functionally with recommendations for the
preapplication conference and proceeds through the completion of
construction, including start-up and operation and maintenance  require-
ments.  Review procedures are separated into administrative and technical
requirements and grouped together wherever possible.  Some technical
requirements which are either complex or time consuming have been treated
separately.  This separation is not meant to elevate their importance
over other requirements but rather to emphasize the need for careful
review of such complex requirements.
                             1-3

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          The construction grant program is concerned with three types
of projects:

               Step 1 Projects - Planning
               Step 2 Projects - Design
               Step 3 Projects - Construction

          When the applicant receives a grant for a Step 1 project,
he prepares a facility plan.  The facility plan is a part of the
application requirement for a Step 2 project grant.  However, the
review of the facility plan is described in Chapter IV as a part of
the Step 1 project grant processing procedures.  Once the facility
plan is approved by EPA, the applicant need only submit the additional
administrative and technical requirements for a Step 2 project grant
as described in Chapter V.  Similarly, the review of plans and
specifications is described in Chapter V as part of the Step 2 project
grant processing procedures although it is a requirement for a
Step 3 project grant.
     3.  Format

          Each review function is necessary to insure compliance
with statutory or program requirements.  The review procedure usually
is presented in the following format:
          Purpose:

          A brief explanation of the need for the review is given.


          Discussion:
          The program requirement is placed in program perspective
and information is given on such things as general operating policy,
important underlying issues, key considerations in approaching the
topic under review and how the topic relates to the greater problem
of which it is a part.
          Procedures:
          The procedures in the review process are briefly described.
Where specific program items are required, they are listed.  Other
more general review items are included as a reminder.  However, the
review procedures listed here are not substitutions for nor do they
supersede requirements as described in greater detail in the appropriate
references.  Check lists may be utilized as reminders of review
requirements.
                             1-4

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         References:

         Appropriate laws, regulations, Program Guidance Memorandums (PG),
Program Requirements Memorandums (PRM), guidelines, technical bulletins,
etc. are cited.  Wherever laws or regulations are quoted directly, italics
are used.  Copies of such reference material can generally be found in the
Manual of References, issued by the Municipal Construction Division, Office
of Water Programs, in October 1975.

         Some of the review procedures are self-explanatory or do not lend
themselves to the above format.  In these cases, the program requirements
are briefly described.

      4. Related Material
         The review procedures in this Handbook describe the essence or
minimum requirements necessary in processing of construction grants.  More
detailed information may be obtained by reading the reference materials
which are identified throughout the text wherever they are applicable.
Generally, references concerning technical matters have been limited to
EPA publications.

         The Handbook describes the requirements for processing construction
grant applications and conducting related grant activities.  However,
differences in structure of Regional Office staffs may require some adjust-
ment in the manner in which various review procedures are conducted.

      5. Updating

         The Handbook will be updated as changes in laws, regulations, or
policy guidance occur.  Responsibility for revising and updating the
Handbook rests with the Policy, Procedure and Guidance Staff, Construction
Operations Branch, Municipal Construction Division, HQ EPA.  All changes
will be issued from the Deputy Assistant Administrator for Water Program
Operations.

          In July 1976* EPA ceased to use Program Guidance Memoranda
(PGM's) to aommunioate Construction Grant Program directives.  In their place,
an -Issuance system was established designed to differentiate between policy
and operational matters.  Included in the new system is a mechanism for
insuring that the essence of emerging policy and procedure changes ave con-
currently readied for inclusion -in the Handbook.

          The new system consists of (I) Program Requirements Memoranda (PRM's)
which convey program policy, (2) Progpgm Operation Memoranda (POM's) which
are for "housekeeping" matters and (3) Transmittal Memoranda (TM's) which^
dictate ehanges to the Handbook.   TM's are of two types: (I) Those which
direct changes in the Handbook growing out of the issuance of PRM's and (2)
Those which serve to transmit Agency policy directly without the issuance of
a related PPM.  (This will be done when the nature of the change is suoh that
it can be readily accommodated by a slight alteration of the text of the


                                                       Revised: TM 76-1
                                 1-5                   August 1976

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Handbook.)  POM's will not normally appear in the Handbook since they
generally deal only with internal program matters and have no appliodbi'lity
outside EPA.  (See PPM 76-1, 7/26/76).  As part of the new system, oertain
PGMs were oancelled.  Those whioh remain in effeot have been Tedesignabed
as PRM's 75-1 through 75-40.  (See PBM 76-2, 7/26/7'6, in Appendix D of this
Handbook for details.)

         As indicated above, revisions will be forwarded by a Transmittal
Memorandum  (TM).  Each Transmittal Memorandum will be designated with a
sequential number (e.g., TM: 76-1) indicating the fiscal year and number of
the issuance and will provide specific instructions for removal of obsolute
pages and exhibits and insertion of new material.  So that changes oan t>e
readily identified^  text revisions will be printed in italics and underlined
and, on the bottom right side of each revised page will be shown the month
and year of the revision.

         The TM may be detached from the material transmitted and inserted
in the appendix, "Transmittal Memoranda".  On a yearly basis, for verification
purposes, a listing of the changes will be distributed to holders of the
Handbook.
     6.  Appendices

         This Handbook contains the following appendices:

         Appendix A:  contains a schematic flow diagram for the processing
of construction grants.

         Appendix B:  includes exhibits of frequently used OMB and EPA forms.

         Appendix C:  contains the sample checklist: "Program Checklist for
Engineering Drawings, Specifications, and Engineering Reports".

         Appendix D:  is labeled "Transmittal Memoranda" and is to be used
to keep the Headquarters issuances on Handbook changes (TM's).
                                                           Revised: TM  76-1
                                                           August  1976
                                  1-6

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        CHAPTER II




       STATE  PROGRAM
A.  Planning Processes



B.  State Strategy and Program

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A.  PLANNING PROCESSES

     1.   General
          This Chapter is designed to provide a general  working
knowledge of those planning portions of PL 92-500 which  directly
affect the construction grants program.

          PL 92-500 contains the most complex and far reaching
pollution control amendments to date and firmly commits  the Federal
Government to eliminate pollution of the Nation's waterways.  Even
though there is a firm Federal commitment, the States still retain
primary responsibility for the establishment of water quality standards,
the control  of waste discharges, and the enforcement of  these standards.
However, to insure a sound basis of control, PL 92-500 expanded
existing and created new planning processes to be carried out by the
States.
     2.  State Continuing Planning Process

          Section 303(e) of PL 92-500 requires each State to establish
and maintain a continuing planning process which must be reviewed
and approved periodically by the Administrator.  The continuous planning
process must be consistent with the Act and include, as a minimum, the
following:

               (a)  effluent limitations and schedules of compliance
                    to achieve water quality standards;

               (b)  an areawide waste treatment management plan or
                    basin plan under sections 208 and 209 of the Act;

               (c)  total maximum daily waste load allocations;

               (d)  procedures for revisions of the plans;

               (e)  adequate authority for intergovernmental  cooperation;

               (f)  adequate implementation procedures and schedules of
                    compliance for new or revised water quality standards;
                            II-l

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          (g)  methods of obtaining control  over the disposal  of all
               residual waste from any water treatment processing;

          (h)  an inventory and ranking, in  order of priority, of waste
               treatment works necessary to  be constructed to  meet
               water quality standards.

          Three of these items are of particular concern to the construction
grants program, namely:

          (b)  areawide waste treatment management plans (more commonly
               known as 208 plans);

          (c)  section 303(e) plans (more commonly known as basin plans
               or waste load allocation plans);

          (h)  the State priority list (discussed in section B of
               this Chapter).

          Each of these items is discussed more completely below.
The three items have as their common objective the achievement of
water quality standards which have been established by the States
and approved by EPA, under PL 92-500 or earlier legislation.

     Re:  40 CFR Part 130 and Part 131


     3.  Basin Plans

          As an integral part of the State Continuing Planning
Process and as a first step in achieving the established water
quality standards, the State must prepare "basin plans" which
classify segments of its waters as either "water quality
limited" or  "effluent limited".  To make this classification,
the State generally employs mathematical modeling of the river
basin and notes all point and non-point sources of wastes, low
flows and other physical conditions.  Using the assumption that
all point sources achieve at least secondary treatment,the model
is able to predict whether the water quality standards are met.
If the standards are met, the stream segment is classified as
"effluent limited" and need only achieve secondary treatment
(unless a more stringent degree of treatment  is established by
the State) to satisfy Federal requirements and to be eligible"
for a construction grant.
                                 II-2

-------
          If the model of the basin predicts that water quality
standards will not be met when all point sources achieve secondary
treatment, the segment is classified as "water quality limited".
The inputs to the model are varied with the result that waste load
allocations are established for this segment and represent the
minimum of treatment to be achieved by any future publicly owned
wastewater treatment works.

          It should be noted that in the 303 planning no direct
controls are exercised to limit the non-point sources.  In all
cases, however, applicants for construction grants must comply with
applicable basin plans.

     Re:  40 CFR Part 130 and Part 131
     4.  Areawide Waste Treatment Management Plans

         Section 208, Areawide Waste Treatment Management Plan, is
another integral part of the State Continuing Planning Process.  These
plans are prepared for areas having substantial  water quality control
problems caused by urban-industrial concentration or other factors.
The stream segments in these areas require comprehensive areawide
planning to meet the water quality standards.  Not only do these plans
place limitations upon municipal and industrial  point sources, they
also address land use policies to control non-point sources, stormwater
discharges, water supply and other limiting factors which may be
controlled to achieve water quality standards.

         The 208 planning is broad based and geared toward the more
complex cases.  EPA is authorized to provide grants to agencies having
jurisdiction under State law to carry out such planning.  The completed
plan must designate one or more agencies to implement its recommendations,
Smaller geographical areas within the 208 area may be designated as
Section 201 facility planning areas.

         EPA policy concerning coordination between applicants and 208
agencies is explained in Guidance for Preparing  a Facility Plan Revised -
May 1975, pp. 2 and 3.

     Re_:  40 CFR Part 126 and Part 131
          Program Requirements Memorandum,,  PEM 75-38 (PG-66),  2/9/76
                                                       Revised:  TM 76-1
                                                       August 1976
                                    II-3

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     5.  Facility Plans

          Facility plans are required by Section 201 of PL 92-500.
They may be considered as the implementation part of the States
Continuing Planning Process.  Facility plans are the first stage
of the three part construction grant process.  The facility
planning area is designated by the State agency and may include
one or more political jurisdictions.  Overlapping may exist
between 208 areawide planning areas and 201 facility planning
areas.  Coordination and cooperation are essential to avoid
duplication, but the completion of 201 plans should not be delayed
or postponed pending completion of 208 plans.  Rather,the 208
plans, when completed, should incorporate the provisions of the
completed 201 plans.

          Ideally, the 303(e) plan establishes the waste loads,
the 208 plan designates the 201 area and the implementing agency,
and the 201 plan develops a specific project which is the most
environmentally sound and cost effective for achieving the stated
water quality standards.  In the case where a 208 area has not been
designated, the State agency will designate the boundaries of the
201 facility planning area, subject to the approval of EPA.  If a
303(e) basin plan has not been completed, the waste load allocations,
where necessary, are to be established on a case by case basis by
the State jointly with the applicant.

          The objectives of the 201 facility plan are specific and
include the treatment plant site, size, type of process, method
of effluent and sludge disposal, interceptor sewer routings and
other steps necessary for constructing the project.  The facility
plan is prepared by the grantee with funds from a Step 1 project
grant.

          Facility planning is discussed in greater detail in
Chapter IV and is the subject of the Publication, Guidance for
Preparing a Facility Plan, Revised - May 1975.

     Re_:  40 CFR 35.917
          40 CFR 130.31
          Program Requirements Memorandum, PPM 75-38 (PG-66), 2/9/76
                                                      Revised: TM 76-1
                                   II-4                August  1976

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     6.  Municipal Permits

          PL 92-500 established the National Pollution Discharge
Elimination System (NPDES) as the enforcement mechanism for
achieving water quality standards.  The discharge permit issued
under the system is applicable to all municipal and industrial
discharges.  Where 303(e), 208 or 201 plans have been established,
the permits will require compliance with such plans.  In the case
of existing sewage treatment facilities which,because of present
or anticipated future inadequate treatment,will not achieve the
water quality standards, the NPDES permit may contain limitations,
conditions or schedules which will prompt the municipality to
apply for a construction grant.  The State agency will designate
the boundaries (if not previously designated) of the 201 facility
planning area and the construction grant process will begin.  An
applicant for a construction grant must comply, at a minimum,
with an applicable existing permit.

     Re:  40 CFR Part 125
                                 II-5

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B.  STATE STRATEGY AND PROGRAM
     1.   Program Submittal

          As a part of the State Continuing Planning Process,
each State is required to submit to EPA a program for the
coming fiscal year.  This annual program also satisfies the
requirements of Section 106 of PL 92-500, which provides for
grants to the State agencies to carry out the planning processes.
The key element of the annual plan is the State strategy which
must:

          (a)  identify water quality problems and their causes;

          (b)  list these problems by geographical location;

          (c)  describe the State's approach to solving the problems,
               including the extent to which non-point sources will
               be addressed;

          (d)  provide a listing of the priorities and scheduling
               of permits, construction grants, areawide plans and
               other program actions;

          (e)  describe the level of detail and the schedule for
               preparation of basin plans;

          (f)  describe how the State will satisfy the reporting
               requirements under Section 305(b) of PL 92-500.

          The construction grants reviewer is primarily concerned
with item (d) above, namely the listing of State priorities
for construction grants projects.

     Re:  40 CFR 130.40
     2.  State Priority System and List

          As a part of its program strategy, the State must
prepare a municipal discharge inventory which ranks all of the
significant municipal discharges within the State.  This inventory
must be consistent with the stream segment priority rankings also
prepared as a part of the overall State strategy.  The State then
develops a system of ranking projects for funding, which gives
consideration to:

          (a)  the severity of pollution problems;

          (b)  the existing population affected;

                                                        Revised:  TM 77-1
                                                        December 1976
                                  II-6

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     (c) the need for preservation of high quality waters;

     (d) national priorities;

     (e) total funds available;

     (f) treatment works sequence;

     (g) any additional factors considered pertinent by the State.

The resulting project priority list is a State management tool and represents
the projects which are anticipated to be funded with the State's allocation.

     The priority list of projects which are to receive construction grant
funds within the State must include, as a minimum, for each project, the
applicant namej State assigned priority ranking and priority points, the
parent-project number, NPDES number, grant identification number, a_ descrip-
tion of the type and scope of project, a target application date, and the
estimated Federal assistance.

     Each project must be certified by the State as being entitled to priority
for Federal assistance from available funds over other eligible projects in
the State.

     In reviewing the State priority list, it is necessary to insure that:

     (a) the above information is included for each project;

     (b) the grant funds involved equal or exceed the State
         allotments available;

     (c) known problem areas in the State have been properly considered;

     (d) target application dates and cost estimates appear to be reasonable;

     (e) previously approved Step 1 and Step 2 projects are properly
         reflected and realistically scheduled for funding;

     !£/ highest, priority is assigned to projects which_ reduce_pol 1 ution
         from existing municipal wastewater discharges^.                '

     While the project priority list must be developed in accordance with
the criteria listed above, the criteria are not to be construed as removing
all flexibility in the establishment of the list.  For example, large city
projects should be precluded from using all or almost all of a State's allocation
This may be accomplished by the State reserving funds for projects of smaller
communities (as defined by the State and approved by the Regional  Office), or
by dividing the work into several segments or smaller projects.  In the first
case., the State must consider the severity of the pollution problem in ranking
projects of both the larger communities category and the smaller communities
group and in consolidating the projects of each group into the priority list.
In the second case, both the State and the applicant must recognize that;
                                                       Revised_;  TM_ 78-1
                                                       December 1977
                                   11-7

-------
          (a)  all grants must be awarded at the 75% level;

          (b)  the project must be comprised of a discrete
               and meaningful part of the treatment system;

          (c)  the awarding of the grant does not bind EPA
               to fund the remaining- parts of the treatment
               system;

          (d)  the acceptance of the grant commits the grantee
               to the completion of both-an operable treatment works
               and the complete sewage treatment system of which the
               assisted project is a part.

          The project priority list may also contain reserve funds
as explained below under Funding.

          The State's priority list is submitted annually as part of
the State's program.  The list is not approved by the Regional Administrator
unless it has been the subject of a public hearing.  During the year,
certain amendments may have to be made to the list.  These amendments
do not require a public hearing if the Regional Administrator does not
consider them significant.

     Re:  40 CFR 35.915, .930-4, .935-1
          40 CFR 130.41
          Program Requirements Memoranda, PRM  75-14,  (PG-33)  5/10/74;
                                          PRM  75-24,  (PG-46)3 1/17/75:
                                          PRM  77-1., ll/23/76^PRM 77-7,

     3.  Funding

          The State allocation of construction grant funds will  vary
from year to year.  The initial State allotments are available for
30 months.  In developing the priority list funding requirements, the
State must reserve a reasonable portion, but not less than five percent
of its annual allocation, for grant increases.  While every effort must
be made by the grantee and State to insure accurate and up-to-date
cost estimates for the projects, cost overruns do occur and grant increases
may be made from these reserves.  Where cost overruns exceed the reserves,
the State may:

          (a)  use recovered PL 92-500 funds; or

          (b)  use funds from the succeeding year's allotment; or

          (c)  if the succeeding year's allotment has not been allocated,
               defer fundable projects on the lowest end of the priority
               list to free up funds; or

          (d)  negotiate with the applicant to consider dividing the work
               as explained above.

                                 II-8                    Revised:  TM 78-1
                                                         December 1977

-------
          If option (c) is employed, the deferred projects are
automatically placed at the top of the succeeding year's project
priority list.

          Also, the State has the option to reserve funds for
Step 1 and Step 2 projects which may be selected by the State
subsequent to the approval of its project priority list.  However,
this reserve may not exceed ten percent of the State's annual
allocation  and may be reserved for up to eighteen months only.
Any funds remaining at the end of that period are to be used for
additional projects.  The funding of additional Step 1 and Step 2
projects from reserve funds must be consistent with the approved
State strategy.

     Re_:  40 CFR 35.915, .930-4, .935-1
          Program Guidance Memorandum, PG-35, 6/3/74;
                                       PG-41, 10/16/74
     4.  Delegation of Authority

          Delegation to the States of various review functions of
the construction grants application processing is intended to
eliminate duplication of effort between States and regional  offices,
improve program efficiency and speed the processing of grants.  While
PL 92-500 does not specifically address the authority of States to
approve various aspects of an application (except project priority
lists), it has been interpreted as allowing the States to perform
the review function.

          The regulations encourage the Regional  Administrators
to enter into written agreements with the State agencies under which
the State will carry out the review and certification of the
technical and/or administrative adequacy of specified documents.
Certification by the State of particular documents, such as plans and
specifications, operation and maintenance manuals, etc., is considered
by EPA to have resulted from an in-depth review by the State.   In such
cases, EPA must continue to exercise its statutory grant approval and
grant commitment responsibilities.

          The reviewer must be aware of existing agreements  and their
provisions and any specific limitations which may affect his review.
Agreements will vary from State to State, depending on the State's
capabilities, and will be reviewed periodically and amended  or
terminated as appropriate.

     Re_:  40 CFR 35.912


                                 II-9

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       CHAPTER III




PREAPPLICATION INFORMATION
A.  General



B.  Applicant Eligibility



C.  Preapplication Conference

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A.  GENERAL

     An applicant is often unfamiliar with the requirements
and/or limitations of the construction grants program.   Lack of
knowledge of all key aspects of the grants program can  be costly
and time-consuming for the applicant, the State and EPA.   The
Region, in conjunction with the State, should insure that applications
being submitted are responsive to all technical, administrative
and legal requirements of the program.

     Guidance to applicants is presently provided through a variety
of sources, including State and Federal forms, instruction booklets,
EPA guidance publications, and copies of Federal regulations.  However,
this information is not always clear to applicants and  emphasis is
often incorrectly placed on less important matters.  To avoid such
occurances, a preapplication conference between the applicant, the
State and EPA to jointly review both program requirements and
applicant needs, is strongly urged.
                                 III-l

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B.  APPLICANT ELIGIBILITY

     An eligible applicant  is:   A city,  town, bon.ou.Qk, county,
di^>tni.ct, a^&ociation.,  on. otheA public, body  (including an inteA.-
municipal age.ncy oft two an.  mon.e. o& the. &on.e.going e.ntities) cn.e.ate.d
by on. punsuant to State, law,  on. an Indian tAibe. on. an authoni.ze.d
Indian tnJJoat on.Qanizati.on,  having juAibdiction oveA disposal ofi
sewage., industAial wa&teA,  on. oth&i waAteA, on. a duignate.d and
appn.ove.d management agnnc.y  andan. Section 20% ofa the. Act.  Thii>
de.{tinition exc£adei a &pe.ciat diAttiict,  &u.ch a& a cahoot dibtsu.ct,
which doeA not have. ai>  one.  ofi i&> pni-ncipat sieAponAibilitieA the.
tn.£atme,nt, tnan&pont, on. diApo&at o& Liquid
     Under earlier  legislation,  construction grants were available
to municipal water  treatment utilities for sludge handling, pretreatment
and/or overall  treatment facilities.  Under PL 92-500, however, an
eligible project must  have as its principal purpose the treatment of
domestic wastes of  the entire community or region.  The treatment
of water for human  consumption is considered an industrial undertaking.
Whether publicly or privately owned, it is in the same category as
any other industrial service, such as power plants, airports, and
mass transportation, and not eligible for a construction grant under
PL 92-500.

     Re_:  40 CFR 35.905-14, .920-1, .925-15
          Program Guidance Memorandum, PG-36, 6/5/74;
                                        PG-36-A, 9/17/74
                                  III-2

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C.  PREAPPLICATION CONFERENCE
     The regulations encourage preapplication assistance, including
a preapplication conference for each project on the State's priority
list.  The importance of the preapplication conference cannot be overly
stressed.  A meeting where the applicant, the State and the Region
sit down together to discuss the approaching work has the potential of
setting the stage for a well coordinated work program which is void
of major misunderstandings and time delays.

     The preapplication conferences may be with one applicant or a
group of applicants and will generally involve only those applicants
included on the State project priority list.

     While the entire three step grant process should be discussed
at the preapplication conference, the primary emphasis should be on
the administrative and technical requirements of a Step 1 project
grant application and the preparation of the facility plan.  Applicant
conferences throughout the three step grant processing procedures
are encouraged, with emphasis to be placed on specific aspects of the
program at the appropriate time.

     The Regions should develop outlines of points to be covered in
the preapplication conferences which may be tailored to the individual
State's and applicant's needs and capabilities.  Several important
matters which should be discussed in the conference are as follows:

     Re:  40 CFR 35.920-2
     1.   Important Dates

          October 18, 1972 - Passage of PL 92-500.  In those States
in which sewage collection systems are federally funded, the bulk
of the design flow (generally two-thirds) of such collection system
must be attributable to a community in existence as of date of
passage of PL 92-500.

          June 30, 1975 - After this date the applicant must not
initiate planning work until a Step 1 project grant has been awarded,
or unless a plan of study has been approved and is accompanied by a
request from the State agency to reserve funds for Step 1  project.
                            III-3

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          July 1,  1975 - Costs incurred for project planning prior
to this date may or may not be eligible for grant assistance depending
on the specific date and nature of the work conducted.  The regulations
set forth limitations.

     Re_:  40 CFR 35.925-13, .925-18


     2.  Contracts for Personal and Professional Services

          The EPA has established rules and regulations concerning
applicant/grantee procurement of architectural and engineering services.
A contract  which includes fees based on a percentage of the construction
cost  shall not be used since such contracts penalize the engineer
for designing the most economical facility.  Multiplier contracts,with
profit as a part of the multiplier, are also prohibited.  It is the intent
of the agency that simple, clearcut contracts, which leave no room
for future disagreement, be negotiated.  These contracts should be such
that the engineer receives a fair fee with a reasonable profit for his
work, and the municipality receives competent, complete professional
services at a fair cost.

          In all A&E contracts, a maximum fee should be fixed.  As in
all A&E contracts, should the scope of the project change during the
prosecution of the work, the contract would be open for renegotiation.

          The employment of any fee arrangement requires a careful
analysis of the scope of the work to be performed and a detailed estimate
by the engineer of his costs for performing the work.  This procedure
should assure a clear understanding of exactly what is to be done,
by whom, and should produce a better end product.

           In the actual procurement of A&E services, the procedures
detailed in the regulations must be followed  (a copy of the regulations
should be given to the applicant).  The regulations require that any
contracts include an  "access" clause, allowing the State and EPA access
to project work and records.

          On construction  grantprojects_in which Farmers  Home Administration
provides local share  assj_startc<=>_, ^ the_ Farmers  Home Administration  engineering
services contract format may be used.
Re:  40 CFR 35.935-7,  .936,  .937,  .938,  .939,  .965  & Appendix c  s D
     40 CFR 30.605                  '       '  ^     ~~~~~
                                                           .          ™ I8!1
                                                          December  1977

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     3.  Administrative Requirements

         The administrative requirements to be fulfilled by the applicant
are extensive.  All necessary forms, authorizations, timing requirements,
and legal requirements should be discussed.  The application form (5700-32)
should be reviewed line by line.  In addition, recommended formats for
submittal of technical data should be reviewed.  Payment procedures and
policy should be fully explained.  Finally, the entire application procedure
for Step 1, 2 and 3 projects should be discussed.  Special emphasis should
be placed upon the coordination required between the applicant, the State
and EPA to insure accuracy and timeliness in processing grant applications.
Specific points to be covered include:

         (a)  that after June 30, 1975, a Step 1 project must be
              approved for a grant before any work is started
              if the costs of such work are to be eligible for
              grant assistance;

              Re:  40 CFR 35.925-18

         (b)  that prior costs, if any, must be claimed in the
              initial application for grant assistance;

              Re:  40 CFR 35.925-18

         (c)  that project work may not be accomplished by
              force account (municipal or public service
              employees) unless the applicant can demonstrate
              that:

              (i)  he possesses the necessary competence to
                   accomplish the work

              (ii) it is more economical  to use the force
                   account method;

              Re:  40 CFR 35.935-2(a)
                   Ppogpgm Requirements Memorandum,  PRM 75-15
                   (PG-34),  5/7/74

         (d)  the institutional  arrangements and agreements between
              jurisdictions;

              Re_:  40 CFR 35.917-6

         (e)  payment of non-federal  share of project costs;

              Re:  40 CFR 35.925-5
                                                         Revised:  TM  76-1
                                III-5                     August  1976

-------
         (f)   priority lists;

              Re:   40 CFR 35.925-3

         (g)   the  procurement  of professional  services and contracts;

              Re:   40 CFR 35.936, .937,  .938,  .939,,  .965 and Appendices C & D

         (h)   record keeping;

              Re:   40 CFR 30.800, .805

         (i)   limitations on collection  systems;

              Re_:   40 CFR 35.925-13

         (j)   user charges and industrial  cost recovery;

              Re:   40 CFR 35.925-11, -12

         (k)   public participation;

              Re:   40 CFR 35.915(f), 917-5

         (I)   oomplianoe with  the requirements of the Civil
              Rights Aat of 1974, including applicability to
              sewage aol'lection systems  for minority areas.

              Re:   40 CFR 8
                   Program Requirements  Memorandum,,  PRM ?5-323
                   (PG-59), 2/11/76


     4.  Technical Requirements

         All  technical aspects of the Step 1, 2 and 3 work should be
reviewed with the  applicant with special attention to the requirements
for a plan of study and the preparation  of a facility plan.  At a minimum,
the following items should be  discussed:

         (a)   the  degree of technical detail required in both the
              plan of study and the facility plan;

         (b)   specific problems associated with the project in
              question and how they should be addressed in item (a);

         (c)   cost effectiveness in its  broadest sense and the
              trade-off between engineering, environmental, monetary
              costs, and institutional arrangements;

              Re:   Guidance for Preparing a Facility Plan .
                   Revised - May 1975

                                                    Revised:  TM 78-1
                                III-6               December 1977

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(d)   infiltration/inflow analysis, sewer system evaluation
     survey;

     Re:   Guidance for Sewer System Evaluation March 1974
          40  CFR 35.927

(e)   environmental assessment integration in the facility
     plan and possible environmental  impact statement
     proceedings, with emphasis on secondary impacts;

     Re:   Guidance for Preparing a Facility Plan
           Revised - May 1975
          40  CFR 35.917, .925-8
          Program Requirements Memorandum^  PPM 75-26
          (PG-50), 6/6/75 and PM 75-31 (PG-58), 9/2/75

(f)   pretreatment and treatment of incompatible pollutants;

     Re_:   40  CFR 35.925-15

(g)   BPWTT,  including secondary treatment and waste
     stabilization ponds;

     Re:   Alternative Waste Management Techniques for Best
           Practicable Waste Treatment 6/75
          40  CFR 35.917-1
          Program Requirements Memorandum^  PRM 75-3 (PG-16)3
           9/11/72

(h)   other Federal requirements, such as historical
     preservation, archeological investigations, flood
     insurance,  etc.

     Re_:   40  CFR Part 30 Subpart C
          Program Requirements Memorandum^  PRM 75-27 (PG-52),
           7/2/75 and PRM 75-28 (PG-54),  7/8/75
                                                Revised:  TM 76-1
                       III-7                     August 1976

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           CHAPTER IV



    STEP 1 GRANT PROCESSING
A.  INTRODUCTION



B.  SCHEMATIC FLOW DIAGRAM



C.  APPLICATION CONTENTS



D.  PLAN OF STUDY REVIEW



E.  ADMINISTRATIVE REVIEW



F.  GRANT AWARD PROCEDURES



G.  FACILITY PLAN (ADMINISTRATIVE REVIEW)



H.  FACILITY PLAN REVIEW

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A.  INTRODUCTION

     This chapter described the contents of, and review procedures for,
the processing of  a Step 1 project grant application.  It begins
with the receipt of the application package and concludes with the
review and approval of the facility plan.

     Section B, Schematic Flow Diagram, visually places this chapter
in the proper sequence and indicates its relationship to previous chapters.

     Section C, Application Contents, provides a quick ready listing
of the materials which are contained in an application package.

     Section D, Plan of Study Review, is given individual attention
because it is the major technical requirement of the application and
includes discussions prepared by the applicant.  This section also
includes a discussion of the 303(e) and 208 plans as they relate to
the plan of study.  Costs incurred before filing the application are
briefly discussed.

     Section E, Administrative Review, describes the procedures involved
in reviewing clearinghouse comments, priority list compliance and
certification, application form, and contracts and subagreements.

     Section F, Grant Award Procedures, describes the action required
on the part of EPA in making the grant offer.

     Section G, Facility Plan (Administrative Review), describes the
procedures for approaching the undertaking of the facility plan, the
review of clearinghouse comments and State approval.

     Section H, Facility Plan Review, describes the review of the
facility plan according to the contents required by regulation and in
the format recommended by the guidance.

     The technical and administrative reviews are to be performed
concurrently whenever possible.   When items are missing or explanations
are necessary, the review is to proceed as far as possible to insure
quick action once the deficiencies are corrected.
                            IV-1

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B.   SCHEMATIC FLOW DIAGRAM

     The flow diagram below visually places this chapter in the proper
sequence and indicates its relationship to other chapters.  The diagram
includes the general functions of the Step 1 project process 3S performed
by the applicant, State and EPA.
                                 IV-2

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C.  APPLICATION CONTENTS

     Below are listed the basic materials to be included in an application
package.  The items are listed here for quick reference, while the
review procedures for each item are described later.   Initially, the reviewer
is to make a cursory review of the package to insure  that all  items
are included, that all applicable portions of the forms are completed
and that the documents are signed by the appropriate  officials.  If
items are missing or explanations are necessary, the  State is  to be
informed but the review is to proceed as far as possible to insure quick
action once the corrections are made.

          1.  Plan of Study

          2.  Comments of State and/or Regional Clearinghouse
              (A-95 process)

          3.  State Priority Certification, EPA Form 5700-28

          4.  Application, EPA Form 5700-32, including  authorizing
              resolution

          5.  Proposed subagreements (generally engineering contracts)
              or explanation of method of awarding proposed subagreements

          Re:  40 CFR 35.920-3(a), .925-3
               40 CFR 30.315
                                 IV-3

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D.  REVIEW OF THE PLAN OF STUDY

     1.   Contents

          Purpose:

          A plan of study is submitted by the applicant to show
his understanding of the work to be done in preparing a facility
plan.  The plan must include the key issues to be addressed, a
time schedule, and itemized costs for the completion of the
specific tasks.

          Discussion:
          The plan of study is the first element of the grant request
to be submitted by the applicant.  It sets out concisely the scope
of the work to be undertaken in preparing a facility plan.   It must
be critically reviewed to insure that all statutory requirements are
met and that the project begins on the proper course.

          While the plan of study should be brief and generally follow
the format suggested in the Guidance for Preparing a Facility Plan in
terms of subject matter to be included, it should also address unique
features of the project which will require special attention.  Such
unique features might include water-short areas, recreational areas,
economically depressed areas, etc.

          The plan of study must be reviewed by both the State and EPA
to insure compliance with previously approved wastewater management plans,
interstate agreements or other applicable plans.

          The plan of study, once approved and incorporated into the
grant agreement, is to include a time schedule for the completion of
specific tasks, and itemized costs for each of these tasks.  This
schedule of tasks and accompanying costs are used to develop a payment
schedule, which in turn is used in preparing projections of cash
disbursements.  Once the grant payment schedule has been established,
the grantee may submit requests for payment of work  that has  been
completed, in accordance with the grant payment schedule.  Payments
may not be accelerated beyond those specified on the schedule.  (See
Chapter VII Grant Payments).

          Review Procedures:
          Regulations require that the plan of study contain four
items as follows:
                                 IV-4

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               (i)   the proposed planning area;

               (ii)  an identification of the entity or
                     entities that will be conducting the
                     planning;

               (Hi) the nature and scope of the proposed
                     Step 1 project, including a schedule
                     for the completion of specific tasks; and

               (it))  an itemized description of the estimated
                     costs for the project.

          The boundaries of the proposed planning area, item (i) above,
are to be checked with those designated by the State and approved by
EPA as described in Chapter II.  In cases where the State has not
previously designated the boundaries of the facilities planning area,
they will be designated by the Regional Administrator.

          Additionally, the Guidance for Preparing a Facility Plan
suggests items which should be included in the plan of study.  These
include maps of the planning area with streams, lakes, ponds, etc.,
identified; maps of the existing sewerage systems including treatment
plants; need for project because of State or Federal enforcement orders,
public health hazard or water quality problems; and previously prepared
documents which will be used in developing the facility plan.

          In reviewing the plan of study, attention must be focused on
those items which will need to be developed in the facility plan.  The
plan should indicate that the statutory requirements described in later
chapters of this Handbook will be satisfied and that the applicant under-
stands them and will be able to proceed in a manner which will  satisfy them.

          Jfj  based on this review,  the need for an Environmental Impact
Statement (EIS) is apparent, the Eegional Office may initiate the joint
EIS/'Assessment procedure ("piggybacking") outlined in PRM 75-31 (PG-58).
The use of this procedure can result in considerable savings of time.

          The applicant must complete the facility plan in a reasonable
period of time and at a reasonable cost.  To test for reasonableness,
the time and cost should be compared with other projects of a similar
nature and scope.

          Re:   40 CFR 35.920-3(a), .945
               Guidance for Preparing a Facility Plan,
                 Revised - May 1975, p. 4
               Program Requirements Memorandum, PRM 75-3 (PG-58)3
                 9/2/75
                                                         Revised: TNI 76-1
                                 IV-5                    August 1976

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     2.  Planning Considerations

          Prior to awarding a grant, EPA must determine that the
proposed project is in conformity with applicable basin plans
approved in accordance with Section 303(e) of FWPCA and areawide
waste treatment management plans approved in accordance with Section
208 of FWPCA (see Chapter II).  The reviewer must be familiar with
the planning area and be aware of the status of applicable plans.

          In cases where a 303(e) basin plan has not been completed,
the plan of study must indicate that the resulting project will comply
with the National Pollution Discharge Elimination System (NPDES)
permit (see Appendix B) if one has been issued.

          In cases where a 208 areawide waste treatment management plan
has been completed and approved, the applicant must be the agency
designated in the plan and the project must be in conformity with
that plan.  Where 208 planning has been initiated, the 208 agency must
be afforded the opportunity to review and comment upon the proposed
plan of study.  Where a 208 area has not been designated, no further
action is required.

     Re:  40 CFR 35.925-2, .925-19
          Guidance for Preparing a Facility Plan,
            Revised - May 1975, pp. 1-4
     3.  Prior Costs

          The application form requires the applicant to provide
a breakdown of the costs for preparing a facility plan.  The plan
of study also requires a breakdown of these costs by specific task.
These costs are to be reviewed to insure that they are allowable
costs as defined in Chapter VII.  This section is concerned only with
the timing of when these costs were incurred.

          If the costs to prepare the facility plan will be incurred
after the grant award, no special review procedures are required.

          Costs for the preparation of the application, plan of study
and other supporting documents are not allowable for EPA grant
assistance.
                                 IV-6

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          If the applicant has incurred costs prior to the award of
a grant, and requests EPA grant assistance in these costs, certain
dates are of significance:

          June 30,1975 - Costs incurred for work initiated after^
          this date for Step 1 and Step 2 projects are eligible for
          EPA grant assistance only when a grant award has been made
          or where the State has requested that funds be reserved
          (a  plan of study must have been approved).

          October 31, 1974 - Costs incurred for work initiated after
          this date for Step 1 and Step 2 projects are eligible for
          EPA grant assistance provided a plan of study was approved
          by EPA.

          November 1, 1974 - Costs incurred before this date for
          Step 1 and Step 2 projects are eligible for EPA grant
          assistance.

          In all cases, the applicant must request grant assistance
for prior costs in his first application.

          Where prior costs are incurred, the applicant must submit
a breakdown of these costs,identifying the dates the costs were
incurred and the nature of the work which was performed.

     Re:  40 CFR 35.925-18, .917(e), .945
                                 IV-7

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E.  ADMINISTRATIVE REVIEW

     1.   Clearinghouse Comments

          Purpose:

          Applicants for construction grants for wastewater treatment
facilities are required to comply with the Office of Management and
Budget (OMB) Project Notification and Review System (Circular A-95).
This procedure is established to provide for the early contact between
applicants and governmental agencies, and to insure coordination between
related projects.

          Discussion:
          Prior to submission of a Step 1 project application, the
applicant is required to obtain the comments of the State and/or regional
clearinghouses in accordance with OMB Circular A-95.  A copy of the
clearinghouse(s) comments is to be included with the application package.

          The clearinghouse comments will indicate the degree of interest
of other governmental agencies in the project.  If these comments are
adverse, the applicant is to submit a statement explaining how the
comments were considered.  If a clearinghouse recommends that the ap-
plication be rejected but EPA approves it, the clearinghouse must be
notified and given an explanation of the reasons for approval.

          Review Procedures:
          The reviewer must make particular note of any adverse
clearinghouse comments.  These comments may require further explanation
from the applicant, State or clearinghouse.  More serious adverse comments
may dictate that the application be returned to the State agency.

          The reviewer must determine if the comments warrant a special
condition in the grant agreement (see section F below).

     Re_:  40 CFR 35.920-3(a)(3)
          40 CFR 30.305
          OMB Circular A-95, 38 FR 32874, 11/28/73
                                 IV-8

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    2.  Priority List Compliance and Certification

        Purpose:

        The State agency is required to certify each project as
entitled to priority for grant funds in accordance with the State
priority system and the project priority list.

        Discussion:

        Chapter II discusses the State priority system and list.
Once the system and annual list have been approved by EPA, each
project is certified by the State as being entitled to priority
for a grant over all other projects below it on the priority list
(EPA Form 5700-28, see Appendix B).

        A State may elect to set aside up to ten percent of its
yearly allotment to fund Step 1 and Step 2 projects not on the
current priority list.  When such projects are certified, the
certification must signify that the grant is to be made from that
reserve allotment.

        Only projects which have been certified by the State as
entitled to priority for Federal assistance may receive a grant.

        Review Procedures:

        Review State Priority Certification to determine that:

        a.  the name, project number and description of
            the project agree with the application, form
            5700-32, and the approved State priority list;

        b.  the form includes the signature of the
            authorized State official;

        c.  the award of grant assistance for the project
            will not exceed the State's allotment, includ-
            ing reallotments;

        d.  the award of grant assistance will  not
            jeopardize the funding of any projects of higher
            priority;
                              IV-9

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          e.  the State has included a statement  to  the  effect
              that all jurisdictions within the facility planning
              area have been notified of  their inclusion in  such
              planning.

     Re_:  40 CFR 35.915,  .917-2,  .920-2,  .925-3,  .925-4
          Program Guidance Memorandum, PG-33, 5/10/74;
                                       PG-35, 6/3/75;
                                       PG-46, 1/17/75

     3.  Application Form

          Purpose

          EPA Form 5700-32 is the  formal  application document and sets
forth the information necessary to qualify for a  construction grant.
Additionally, the application contains "assurances"  from the applicant
which are necessary to satisfy statutory  requirements.

          Discussion:
          The designation of a facility  planning  area  is  a  State
responsibility and should lncJtu.de, that OJULO. de.me.d  ne.c.ut>asiy to
ptie.paA.e. an e.nvt>uAe. that the.  mo&t
c.oAt-e.&&e.ctive. me.am> o& ac.kle.vi.ng the, eAtabLL&he.d wateA quality
QoaLt, can be. planned fan and jjnpteme.nte.d.  The  applicant  for the
designated area may be a joint authority representing  the multiple
jurisdictions, one or more of the eligible jurisdictions  or one  lead
agency representing all jurisdictions.   In all  cases, the  applicant
must have the legal authority to plan, design,  finance, construct,
operate and maintain any resulting wastewater treatment facilities.

          The application form is used for an initial  grant request,
amendments, or supplemental grants.  The form (see  Appendix B)
contains instructions for completion of  each of the five  parts.
Part II, Section B requires information  on the  project site to be
submitted with the application.  Since a facility plan resulting from
the award of a Step 1 project grant will  conclude which is  the most
cost effective and environmentally sound project  site, the  information
contained in this section is not necessary for  a  Step  1 project  grant
award.
                             IV-10

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          Part III, Section D concerns the applicant's proposed
method of financing the non-federal share of the project.  The
applicant may not use revenue sharing funds obtained under the
State and Local Fiscal Assistance Act of 1972 to finance his portion
of the eligible project costs.  However, such items as cost overruns
(not otherwise funded by EPA), cost of sewage collection systems,
or land acquisition costs,  for example, which are  found  by  the State
or EPA rot to be allowable for participation in the grant program,
may be funded with revenue sharing funds.

          The statutes require that the applicant comply with related
laws and regulations and give other assurances.   These requirements
are satisfied for a Step 1 project grant when the applicant signs
the application and thereby assures and certifies that he will comply
with the requirements.

          The applicant must attach to his application a copy of the
resolution authorizing the person to act as the official representative
of the applicant (Part V, item 1).  Any subsequent changes in the
authorized official must also be substantiated by a copy of the
resolution authorizing the change.

          Review Procedures:
          Review application form and determine that:

          a.  the name, project number and description of the project
              and amount of grant request agree with the State
              Priority Certification,Form 5700-32,and the approved
              State Priority List;

          b.  the form is signed by the authorized representative and
              and a copy of the authorizing resolution is attached;

          c.  information regarding project location,  entities
              involved and cost data corresponds to that in the plan
              of study;

          d.  all items in the application are complete or marked not
              applicable (NA);

          e.  Part V, assurances, is part of application.  If not, a
              properly signed form must be obtained.
                                 IV-11

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          NOTE:   Particular emphasis is to be placed upon review
          of Part III, Section D, Proposed Method of Financing
          Non-Federal Share, to insure that applicant can
          successfully fund his share of the pro.iect costs.
     Re_:  40 CFR 30.315
          40 CFR 35.917-2, .917-3
          P.L. 94-488
          8T CFR Pa'rf 51, Department of Treasury
     4.   Contracts and Subagreements

               Purpose:

               Contracts or subagreements for personal  or professional
services are submitted by the applicant and reviewed by both the State
and EPA to insure that the scope and nature of the proposed services
are sufficient to result in an approvable facility plan and that the
fees and schedules are reasonable.


               Discussion:

               The personal and professional services covered by the
subagreements at the time of Step 1  application submission are generally
the consulting engineering services, although separate agreements may
also exist for environmental consultants, financial  consultants, etc.
The regulations state that the application shall  include proposed sub-
agreements OP an explanation of the -Intended method of awarding sub-
agreements for performance of any substantial portion of the project
work.

               Also, the regulations require that any such subagreements
or lower tier subagreements include an "access" clause allowing the
State or EPA access, at reasonable times and places, to the work or
records.  The "access" clause is applicable to subagreements or lower
tier subagreements in excess of $10,000.

               The detailed requirements of and procedures for procuring
personal or professional services appear in 40 CFR 35.936, .937. .9>M,  _-939
.9f5 Appendices c & D.  Subagreements in which the fee  is a percentage  6T~
cdhstruct^on costs are not acceptable, nor are cost multiplier contracts
where profit is included in the multiplier.
                                                         Revi sed .-   TM 78-l_
                                   IV- 12

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     Review Procedures:
     Review the agreement(s)  and determine that:
     a.  the grantee has complied with 40 CFR 35.936
         and .937;
     b.  the scope of work is sufficient to prepare  an
         approvable facility  plan;
     c.  completion schedules are reasonable and  in
         agreement with  the plan of study.
Re:  40 CFR 35.920-3(a)(2), .935-7, .936, .937
     40 CFR 30.605
     Program Guidance Memorandum, PG-53, 7/8/75
                            IV-13

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F.  GRANT AWARD PROCEDURES

     The administrative procedures required in awarding a grant are
summarized below.  A detailed line-by-line explanation of the adminis-
trative steps necessary in preparing EPA forms and notifications is
described in the Grants Administration Manual  prepared by the Grants
Administration Division, Office of Planning and Management, EPA.

     Item 1  below describes the actions  for which the regional office
may establish procedures.  Item 2 through 5 describe uniform actions
prescribed by Headquarters.

     1.  Regi onali zed Procedures

         a.   Notification to financial management branch;

         b.   Preparation of transmittal letters to the
             applicant and State agency (include instruc-
             tions for predesign conference, as appropriate);

         c.   Other regional procedures which have been
             worked out with the States, interstate agencies,
             etc.
     2.  Notification of Grant Award Action

         The Notification of Grant Award Action, EPA Form 5700-1B,
(see Appendix B) is completed and transmitted to Grants Information
Branch, Headquarters, by Communicating Magnetic Card Selectric
Typewriter on the date of award or no later than the following working
day.

         The Grant Information Branch immediately forwards a copy of
the 5700-1B to the Office of Legislation which notifies appropriate
congressional offices.

         EPA Form 5700-1D is used in the case of a decrease,
declination, or withdrawal of a grant.
                               IV-14

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     3.  Grants Information and Control  System (GIGS)

          The Grants Information and Control  System (GIGS)  is a
computer based management system in which information  concerning the
construction grants program is stored.  This  information is used for
analyzing the grant program, manpower requirements, answering
congressional inquiries and other purposes.   The information must be
current and available for quick retrieval.

          Information concerning the award  of each construction
grant is entered into the system using prescribed coding sheets
(see Appendix B).

     Re:   Grants  Information and Control System, GICS,
             WWT Construction Grants Information Data  Base,
             Operators' Manual, 2nd Printing  2/22/74
     4.  Clearinghouse Notification

              Purpose:

              Notification of clearinghouse is made in order that
the clearinghouse may inform interested agencies or other entities
of the award of a grant in accordance with Treasury Department
Circular No. 1082.

              Procedures:

              The notification,  Standard Form 424 (see Appendix B),
is completed by the regional office and copies are mailed to the
State, regional and local  clearinghouse


     Re:   U.S. Treasury Department Circular No. 1082  2/17/76
                                                          Revised:  TM 78-1


                               IV-15

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     5.  Grant Agreement/Amendment

         Purpose:

         The Grant Agreement/Amendment (EPA Form 5700-20)  serves as
a formal document of agreement between the U.S.  Government and the
grantee,   and constitutes a legally binding contract once executed.

         Procedures:

         EPA Form 5700-20 (see Appendix B) is completed by the
Regional Office based upon the information submitted in the application
package.  The agreement must define the scope of the project.
Modifications to grant amounts, scope of work or other items are made
on the basis of the review process,and special conditions  of the grant
are included in Part III b.  These special conditions may  be based
upon clearinghouse comments, requests from the State agency or
conditions unique to the project.

         In order to better forecast future funding requirements,
each applicant for a grant is required to submit cost estimates in the
format shown in the form,Summary of Costs of Planned Treatment Works
Scheduled by Project and Category (see Appendix B).This  requirement
Ts to be incorporated as a special condition in the grant  agreement/
amendment.

         The grant agreement/amendment is not sent to the  applicant
until five working days after the signing by the Regional  Administrator
to allow for necessary Congressional notification.  The applicant is given
three weeks to accept the grant offer and to return the signed grant
agreement/amendment to EPA.

         The individual signing the grant agreement/amendment on
behalf of the applicant should be the same individual who signed the
application.  Differences must be explained and a new authorizing
resolution submitted (see Application Form item E.3 of this chapter)
if such occur.
                               IV-16

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G.   PREPARATION OF THE FACILITY PLAN
          Purpose and Discussion:

          Program responsibility for the progress of a project does
not end with the grant offer.  The reviewer must be continually aware
9f the status pf the project to insure that the facility plan
is completed in accordance with special requirements and the approved
schedule submitted with the plan of study.

          The reviewer should work closely with the grantee in
preparation of the facility plan and should review portions of the
plan as they are developed.  This will insure that all regulatory
requirements are satisfied and that additional information and
necessary changes are incorporated into the plan in the most
expeditious manner.

          The detail of facilities planning will vary depending on
the complexity and scope of the project and shall be conducted only
to the extent that the Regional Administrator determines to be
necessary to -insure that facilities for which grants are awarded
will be cost effective and environmentally sound	   This allows
the reviewer to exercise flexibility in advising the grantee as to
plan requirements.

          Procedures:

          Shortly after award of a Step 1  grant, the reviewer should:

          1.  contact the grantee and his  consultant and make
              known the kinds of advice and assistance available
              from the State and EPA during the preparation of
              the facilities plan;

          2.  advise the grantee as to progress reports which
              must be submitted, depending on the size and
              complexity of the project;

          3.  advise the grantee (normally on large complex
              projects) that periodic inspections or audits will
              be made by either the State  or EPA;

NOTE:  During preparation of the plan, conduct inspections and reviews as
       necessary.

Re:   40 CFR 35.917-3(d), .917-4(b)
                               IV-17

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H.   ADMINISTRATIVE REVIEW  (FACILITY PLAN)


     1.  Clearinghouse Comments

               Purpose:

               The grantee must submit the completed facility plan to
the appropriate clearinghouse to allow for review and comment by
interested agencies in accordance with the procedures of the Project
Notification and Review System (OMB Circular A-95).


               Discussion:

               Before submitting the completed facility plan to the
State agency, the grantee is required to obtain comments from the
appropriate State and Regional clearinghouses.  The clearinghouses are
to review the plan, circulate it to interested agencies, and return
their comments to the grantee within 30 days.  If the comments are
adverse, the grantee must submit, with the completed plan, a statement
explaining how the comments were considered.

               If, as a result of the facility plan review by the
State or EPA, the proposed project is modified, in accordance with
A-95 procedures, it may be necessary to obtain clearinghouse comments
on the facility plan again.


               Review Procedures:

               The reviewer must consider all adverse clearinghouse
comments.  The comments may require further explanation from the
applicant, State or clearinghouse.  If the reviewer finds that any
adverse comments are justified, the completed facility plan must be
returned to the State agency.
     Re_:  40 CFR 30.305
          40 CFR 35.917-1(f)
          OMB Circular A-95, 38 FR 32874, 11/28/73
          Guidance for Preparing A Facility Plan,  Revised -
            May 1975, p. 30
                                   IV-18

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     2.  State Review and Certification

              Purpose:

              The State agency is responsible for the review and
coordination of .each facility plan and must provide certification to
EPA that these responsibilities have been met.

              Discussion:

              After obtaining clearinghouse  comments, the grantee
must submit the completed facility plan and the clearinghouse comments
to the State agency for review.  The State is to insure that the
facility plan is in compliance with plans developed under the State's
Continuing Planning Process.  Any problems between the State and
grantee should be resolved prior to review by EPA.  A formal facility
plan review and approval by EPA is not to be conducted without State
certification.

              Review Procedures:

              The State is to certify that the completed facility plan:

              a.  conforms with the regulatory requirements
                  for a facility plan;

              b.  conforms with any completed basin plan
                  (303(e));

              c.  has been submitted to any concerned 208
                  planning agency for comment;

              d.  conforms with any approved waste treatment
                  management plan (208(b)).

     Re:  40 CFR 35.917-7
         Guidance for Preparing A Facility Plan,  Revised -
           May 1975, p.  30
                              IV-19

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I.   FACILITY PLAN REVIEW
     Introduction:
     For convenience, the regulatory requirements of a facility plan
are summarized below using the lettering system from 40 CFR 35.917-1.
The plan must encompass the following:
     (a)  a description of the treatment works for which plans
          and specifications will be prepared including:
          -  engineering data
          -  cost estimates
          -  schedules for completion of design and
             construction;
     (b)  a description of the complete treatment system of
          which (a) is a part;
     (c)  infiltration/inflow documentation;
     (d)  a cost-effectiveness analysis of (a), (b), and alterna-
          tives including evaluation of:
          (1)  the relationship of capacity to needs and reserve
          (2)  flow and waste reduction measures
          (3)  optimum performance of existing system
          [4)  ability to meet effluent limitations
          (5)  application of best practicable waste treatment
               technology
          (6)  ultimate disposal of effluent and sludge
          (7)  the environmental impacts as contained  in an
               adequate assessment;
     (e)  effluent limitations or NPDES permit;
     (f)  clearinghouse comments;
     Cg)  a summary of public hearings;
     (h)  a statement  that grantee has resources to construct,
          operate and maintain the treatment works;
     (i)  a statement  of compliance with Civil Rights  Act of  1964.
                               IV-20

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     Item (d)(7) above is further defined in 40 CFR 6.512 and requires
that an adequate environmental assessment must be an -integral,  though
identifiable, part of any facilities... .plan submitted to EPA3  and
include:

     (1)  a description of the existing environment without
          the project;

     (2)  a description of the future environment without
          the project;

     (3)  documentation;

     (4)  an evaluation of alternatives;

     (5)  the environmental impact of the proposed action;

     (6)  the steps necessary to minimize adverse effect.

     These requirements overlap in many areas and may not always be
understood by the applicant or his consultants.  To assist the grantee
in understanding and satisfying these requirements, EPA prepared a
publication entitled, "Guidance for Facilities Planning", dated
January 1974.  This publication was later revised in May 1975 and
entitled, "Guidance for Preparing A Facility Plan".  The revision is an
abbreviated version of the earlier guidance and reflects program
experiences and provides more flexibility.  The guidance, however, is
....for advisory information only.  A grantee may select his own
method or format for preparing a facility plan as long as he meets the
regulatory requirements above.  The grantee does not have to follow
the suggested format in the guidance.

     The "Guidance for Preparing A Facility Plan" (GPFP), revised
May 1975, contains a suggested format or outline for the plan on pages
28 and 29.  The same format is used in the publication "Model Facility
Plan for a Small Community."  The review procedures in this handbook
are based on a facility plan prepared in the suggested format.   Some of
the suggested chapters or subparts are self-explanatory and do not
require explanations.  Others are more complex and Purpose, Discussion
and Review Procedures are provided.  The references at the end
of each part refer to the regulations, program guidance memoranda, or
pages in the guidance which apply to the matters covered therein.

     Re:  40 CFR 35.917-1
     ~~   40 CFR 6.512
                               IV-21

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     1.   Summary, Conclusions and Recommendations

              (Self-explanatory)

     2.   Introduction

       2.1   Study Purpose and Scope

            (Note:   The proposed project may include only sewage
collection systems, trunk or intercepting sewers,  or treatment plant
expansions or additions.  The review procedure which follows assumes
a complete treatment system including all of the above.   For projects
of lesser scope, some items will  not be applicable and can be omitted.)

       2.2  Planning Area (Map)

              (Self-explanatory)
     3.  Effluent Limitations

            Purpose:

            The limitations placed upon the effluent from the proposed
treatment works establishes quantitative parameters which must be
achieved in order to meet water quality standards.

            Discussion:

            The facility plan is prepared and the treatment works are
constructed to meet the effluent limitations for the segment of
receiving waters into which the effluent will be discharged.  These
limitations, as a minimum, require secondary treatment (as defined in
the regulations) except for storm water discharges from combined systems,
Combined (storm and sanitary sewage) sewer systems present a special
case and may require mathematical modeling or a monitoring program for
the receiving waters in order to establish effluent limitations (refer
to infiltration/inflow analysis report for discussion of combined sewer
systems).
                               IV-22

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          Secondary treatment for sanitary sewage discharges is the
minimum acceptable level of treatment for those segments of the
receiving waters which the State has classified as effluent limited,
but the State may require higher levels of treatment in order to
achieve water quality standards.  The State (or EPA) requirements may
involve nutrient removals (nitrates and phosphates), higher BOD and
suspended solids removal, reoxygenation of the effluent, etc.  The
segments of receiving waters, in which these higher levels of treat-
ment are required, are water quality limited segments (see Chapter
II A.3).

          The facility plan must evaluate alternative solutions to
the water pollution problem, and the effluent limitations may vary
from one alternative to the other.  The effluent limitations for
existing discharges are contained in the discharge permit issued
under the National Pollutant Discharge Elimination System (NPDES).
For completely new systems, the State will establish the effluent
limitations based on approved plan and water quality standards.

          In preparing the facility plan,.the grantee is required
to evaluate the following waste treatment management techniques:

          ( i)  Biological or physical-chemical treatment
                and discharge to receiving waters;

         ( ii)  Treatment and reuse; and

         (iii)  Land application techniques.

          In all cases, it is the State's responsibility to establish
the effluent limitations for all alternatives and to furnish them to
the grantee.

          Review Procedures:

          The reviewer must establish that the correct set of effluent
limitations has been used by comparing the stated limitations with:

          a.  the discharge permit  in the case of existing
              discharges;

          b.  limitations established in 303(e) basin plan;

          c.  the reuse or groundwater recharge requirements
              if this alternative has been selected.

          Errors, inconsistencies, or other irregularities are to be
corrected with the State agency.
                               IV-23

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     Re:  40 CFR Part 133
          40 CFR 35.917, .925-2, .925-7
          GPFP pp.  1, 2, 5
     4.   Current Situation

       4.1  Conditions in the Planning Area

            Purpose and Discussion:

            The existing conditions in the project area are described
in order to form a basis of comparison between alternatives.   If the
topics listed below are described in detail, they will  provide a clear
distinction between the "before" and "after" conditions.  The "after"
conditions are described in later chapters.

            Sources of information should be cited or referenced.

            Review Procedures:

            Suggested topics which describe the existing conditions
may include:

            a.  A description of the planning area - planning
                area boundaries, political jurisdictions, and
                physical characteristics (climate, geology,
                soils, topography, hydrology, etc.);

            b.  Organizational context - the role and relation-
                ship between all existing organizations involved
                in planning, financing, and operating publicly
                owned treatment works;

            c.  Demographic data - the most current population
                estimates and the latest decennial census;
                population growth patterns and densities;
                minovity areas not presently sewered; number
                and types of major industries and other employ-
                ment generating entities; existing land-use
                patterns and controls including comprehensive
                planning and zoning regulations;

            d.  Water quality - identify quality and quantity
                of existing surface and groundwaters;
                                                        Revised:  TM 76-1
                                IV-24                   August 1976

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         e.   Other existing environmental  conditions - this section
             is an environmental  inventory and may include, to the
             extent appropriate,  descriptions of air quality,  noise
             levels, energy production and consumption, wetlands,
             flood plains, coastal  zones,  wild and scenic rivers
             and other environmentally sensitive areas, historic,
             architectural and archaeological sites, plant and
             animal communities which may  be effected, especially
             those on the threatened or endangered species list,
             and related Federal  or State  projects in the area.

     The reviewer is to take special note  of the items underlined  in e.
above and included in the inventory since  the impact of the proposed project
on these items may require the grantee or  EPA to follow special review
procedures (see section 10).  Also, the reviewer should note major industrial
contributors to insure that they provide pretreatment, as necessary, in  the
proposed project.

     Re:  40 CFR 6.512(a)(l)
          GPFP pp. 5, 6
          PRM 75-52 (PG-59), 2/11/76

       4.2  Existing Wastewater Flows and  Treatment Systems

            Purpose and Discussion:

            The inventory of existing wastewater treatment facilities
furnishes information as to the extent of  the existing systems, their
interrelationships, and the base line flow information by which future flows
will be determined.  The data may indicate conditions which limit  the number
of feasible alternatives and give an indication of the severity of the
pollution problems.  Later sections address the performance of existing
systems and methods of achieving optimum performance.

            Review Procedures:

            The inventory should, to the extent appropriate:

            a.  show the location of all treatment plants, sludge
                management areas and facilities, pretreatment plants,
                pumping stations and collection systems;

            b.  describe the facilities identified in a., including
                design capacity, existing  flows and characteristics
                of wastes, overloaded conditions, if any.  NOTE: In
                those oases where interceptor or collect-ion projects
                are involved, attention must be given to existing
                plant capacity to insure that the project will not
                result in overload conditions.

            c.  show the location of, and  describe, major industrial
                discharges;


                                                           Revised:  TM  77-1
                                                          December 1976

                                  IV-25

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                 d.  include a discussion and analysis  of average,
                     peak, dry, and wet-weather flows  (also discussed
                     in I/I analysis);

                 e.  show the locations of all  bypasses and overflows;

                 f.  describe the extent of any combined sewer
                     system;

                 g.  describe any flow reduction program.

     Re: GPFP p. 6


       4.3  Infiltration and Inflow

                 Infiltration/Inflow Analysis

                 Purpose:

                 The infiltration/inflow analysis is conducted to
identify the existence, or possible existence,  of excessive infiltration/
inflow within each sewer system emptying into the proposed treatment
facilities when the State has inadequate information upon which to  base
a certification of such conditions.

                 Discussion:

                 As a part of the facility plan, a sewer system evaluation
is begun,consisting of:

                 an infiltration/inflow analysis conducted in
                 accordance with the "Guidance for Sewer System
                 Evaluation".

                 The purpose of the sewer system evaluation is to identify
infiltration and inflow which may be economically removed from the  system.
The results of the sewer system evaluation are used in sizing the proposed
project.

                 Program experience gained during the initial years
indicates the following procedures can be used to accelerate infiltration/inflow
analysis:
                 a.  Only the minimum information needed by the
                     Regional Administrator upon which to base a
                     decision need be submitted with the I/I
                     analysis.  Conclusions reached must be
                     supported by flow data.  Where need for a
                     sewer system evaluation survey is indicated,
                     preliminary cost estimates should be included.
                     The analysis must be approved by the State.
                               IV-26

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               b.  For purposes of screening projects and
                   focusing review effort, it has been found
                   that where the maximum extraneous flow
                   observed annually from both infiltration
                   and inflow from foundation drainage is less
                   than 1,000 gallons per day per inch of pipe
                   diameter per mile of sewer, such flow is
                   generally nonexcessive.

               c.  Where possible excessive I/I is identified,
                   the applicant is to be encouraged to use the
                   exception clause in the regulations (see
                   40 CFR 35.927-5(c)).  This clause allows the
                   grantee to complete the facility plan and
                   conduct the sewer system evaluation survey
                   concurrently with project design.  To
                   accomplish this, the grantee needs to estimate
                   the nonexcessive flows or demonstrate that
                   the proposed treatment works will be a part
                   of the rehabilitated sewer system.


          The prudent application of these policies will allow the
grantee to conduct the sewer system evaluation survey, if required,
concurrently with the treatment works design.   However, the grantee
may conduct or EPA may require the sewer system evaluation survey as
an extension of the facility plan.  Such work may be funded by
increasing the Step 1 grant.

          The I/I analysis may be submitted by the grantee to EPA
through the State agency at any time prior to the submission of a
completed facility plan.

          In lieu of an I/I analysis, the State agency may certify
that excessive I/I does or does not exist.  In cases where this procedure
has been established and is still  in effect, the grantee need not submit
an I/I analysis.


          Review Procedures:

          If the State agency has submitted certification for
excessive or nonexcessive I/I, determine that:

          a.  the State agency continues to have approval
              of the Regional  Administrator to make such
              certification;
                                   IV-27

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                 b.   the certification form is  signed  by  the
                     authorized State official  and  contains
                     language as shown in  the sample certification
                     (see Appendix B).

                 If the grantee submits an I/I  analysis,  determine
that:
                 a.   the analysis contains a conclusion as to
                     the quantity of excessive  I/I  or  that
                     excessive I/I does not exist;

                 b.   the data analyzed is  sufficient to support
                     the conclusions in a.;

                 c.   the cost estimates and schedules  for a sewer
                     system evaluation survey have  been included
                     as appropriate (these estimates are  not
                     necessary for the award of a Step 2  grant
                     but must be approved  prior to  initiation  of
                     the survey.

     Re_:  40 CFR 35.927
          Program Guidance Memorandum, PG-24, 2/7/74
                                            »
          Guidance for Sewer System Evaluation, March  1974


              Sewer System Evaluation Survey

              Purpose:

              The sewer system evaluation  survey is conducted  to quantify
and locate sources of infiltration/inflow  and  to determine  those which can
be cost-effectively eliminated.

              Discussion:

              The evaluation survey must be performed  by  the grantee
in all cases where excessive I/I has been  identified.   It may  be performed
either under a Step 1 or Step 2 grant.  These  options  are discussed in the
Infiltration/Inflow Analysis section.

              The survey is performed to determine  location, estimated flow
rate, method of rehabilitation and cost of rehabilitation versus cost of
transportation and treatment for each defined source  of infiltration/inflow.
The guidance recommends a five phase survey, to insure a  systematic and
efficient investigation, composed of:
                               IV-28

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              1.  A Physical Survey

              2.  Rainfall Simulation

              3.  Preparatory Cleaning

              4.  Internal Inspection

              5.  A Survey Report

              In some cases, however, the survey may be abbreviated by
combining or eliminating one or more of these phases.  For example, the
use of T. V. inspection equipment accompanied by preparatory 'cleaning
may be considered overly expensive in a survey to identify sources of
inflow when the quantity of infiltration is not excessive.  Conversely,
the use of rainfall simulation would not be justifiable where there was
no inflow.  The omission of any phase other than the required survey
report should be carefully reviewed and adequately justified by the
grantee.

              Review Procedures:

              Review the sewer system evaluation survey report to
determine that:

              a.  the survey report presents the results of
                  each phase and supports the conclusions
                  concerning sources of I/I;

              b.  a cost-effective analysis is presented for
                  sources of infiltration/inflow based on a
                  comparison of cost of transportation and
                  treatment versus cost of rehabilitation;

              c.  the survey report identifies by location and
                  method of rehabilitation sources of infiltra-
                  tion/inflow which can be cost-effectively
                  eliminated;

              d.  the net savings to be realized through
                  rehabilitation are identified both in terms
                  of capacity and total cost;

              e.  the quantitites of allowable infiltration and
                  inflow are identified (those which will not be
                  rehabilitated) and included in the design
                  capacity of the proposed treatment facilities
                  (coordinate with review of design);
                               IV-29

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              f.   where the evaluation survey is  extensive,  the
                  work carried out is not a part  of the grantee's
                  normal  operation and maintenance responsibilities
                  (costs  for preparatory cleaning and internal T.  V.
                  inspection must be adequately documented and
                  justified by the grantee);

              g.   the appendices contain additional documentation
                  of the  results, including raw data, illustrations,
                  inspection forms, photographs and other information,
                  where appropriate.

     Re:  40 CFR 35.927
          Program Guidance Memorandum, PG-24, 2/7/74;

          Guidance for Sewer System Evaluation, March 1974


       4.4  Performance of Existing Systems

                 Purpose:

                 Each major component of the existing system is  to be
evaluated to determine if it can be used in the new project.

                 Discussion:

                 Many existing sewage treatment facilities are not
operated at their optimum efficiency.  The reasons for poor performance
are numerous, but it has  been found that generally it is more cost-
effective and environmentally sound to bring existing facilities up  to
optimum performance rather than to abandon them.   Even if optimum
performance of existing facilities cannot achieve effluent limitations,
additional facilities necessary to do so should be less costly.
Operating problems affecting performance should be described in  this
section.

                 In reviewing the grantee's evaluation of the existing
system, the reviewer may wish to compare the evaluation with the operation
and maintenance reports (EPA Form 7500) for the project.

                 Review Procedures:

                 Items which might be considered  in evaluating  the
performance of existing systems include:

                 a.  the adequacy of the treatment plant design
                     for the type and amount of flow being treated
                     (compare with NPDES permit);

                 b.  the adequacy of the operation and maintenance
                     program (compare with EPA Form 7500);
                               IV-30

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                 c.  the effects of infiltration/inflow;

                 d.  the effects of industrial  discharges.
     Re:  40 CFR 917-1(d) (3)
          GPFP p. 7
     5.  Future Situation

       5.1   Land Use

            Purpose:

            The ability of the land to support various  uses  is  analyzed
to aid in determining future wastewater flows.

            Discussion:

            The planning period for wastewater treatment facilities
should be 20 years.   Construction of the treatment plant may be phased
over this period with the initial capacity less than the 20  year flows.
Intercepting and trunk sewers may be designed for longer periods.

            The projected land uses may be a limiting factor in
determining the size, phasing, and location of the proposed  facilities.
Undevelopable lands, such as steep slopes, highway rights-of-way, power
line easements, water bodies, environmentally sensitive areas,  parks, etc.,
are not to  be included when estimating future flows based upon  the  land
uses.  The  land uses considered by the grantee in his study  must not
contravene  State or local land use plans.

            In the absence of future land use plans, the grantee should
consult with agencies responsible for planning in the area.

            Review Procedures:

            Points which might be covered in the land use analysis
include:

            a.  present land uses to determine patterns of
                development;

            b.  development patterns and zoning ordinances to
                see that they are in basic agreement;

            c.  future land use plans which have been adopted
                and are being implemented through the use and
                enforcement of zoning ordinances;
                               IV-31

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            d.  use of undevelopable lands in estimating future
                f1ows;

            e.  consultations with responsible planning agencies
                in projecting land use where future land use plans
                are lacking.

     Re:  40 CFR 6.304(c)
          GPFP pp. 7, 8


       5.2  Demographic and Economic Projections

            Purpose and Discussion:

            Increases in future waste loads and flows result from
population increases and industrial growth.  Some parts of the U. S.  are
included in standard metropolitan statistical areas (SMSA's).  Population
projections for these areas have been prepared by the Bureau of Economic
Analysis, Dept. of Commerce, and should be used.  Also, if the planning
area includes industrial development boards or other agencies concerned
with the economic development of the area, these agencies should be
consulted for assistance in estimating future industrial needs.

            Review Procedures:

            Review future projections to determine that:

            a.  Bureau of Economic Analysis projections of
                population have been used for SMSA's;

            b.  any departures from such projections are justified
                and documented;

            c.  non SMSA's population forecasts are based on
                extension of past trends supported by economic
                forecasts;

            d.  industrial growth trends are based on valid
                economic projections;

            e.  future growth trends have considered the
                limitations imposed by land use, air or water
                quality  restrictions, development controls, or
                other constraints.

     Re_:  40  CFR  6.304(a)
          GPFP p. 8
                                IV-32

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       5.3  Forecasts of Flow and Waste Load

            Purpose and Discussion:

            The forecasting of future flows and waste!oads in the
planning area ties in several topics which have been considered earlier
in the facility plan.  The future flows and loads will  be directly related
to the future population and industrial activity (i.e., industries likely
to use municipal plants), subject to the limitations of land use, air
quality maintenance plans or other limiting constraints and the quantities
of nonexcessive infiltration/inflow.  The future flows  and loads are added
to the existing wastewater flows (section 4.2).

            Review Procedures:

            The reviewer should focus on the methods used in estimating
future wasteloads and flows to insure that the following considerations
have been incorporated where appropriate:

            a.  projections of economic and population  growth;

            b.  estimates of nonexcessive infiltration/inflow;

            c.  analysis of pollutant content (characteristics)
                and flows in the existing system;

            d.  analysis of combined sewer overflows;

            e.  industrial waste flows and loads, considering
                possible reductions due to imposition of user
                charges, industrial cost recovery, or pretreatment
                costs;

            f.  projections of possible reductions in flow resulting
                from measures to reduce water use and waste production
                (installation of water meters or ban on garbage
                grinders, for example);

            g.  limitations upon flows due to land use, air quality
                maintenance plans or other constraints.

     Re:  40 CFR 35.917,  .927,  .935-13
          40 CFR Part 128
          GPFP pp. 8, 9
                               IV-33

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       5.4  Future Environment of the Planning Area
            Without the Project

            Purpose and Discussion:

            The statutes require that "no action" be considered as an
alternative to any proposed project.  In order to evaluate and compare
"no action" or "do nothing", the future environment without the project
must be visualized.  The items used in this process should be the same as
those used in Section 4.1 to the extent that they include changes to the
environment.

     Re_:  40 CFR 6.512(a) (2)
          GPFP p. 9


     6.  Alternatives

       6.1  Optimum Operation of Existing Facilities

            Purpose:

            The alternative of optimum operation of the existing facilities
is investigated as a first step in the search for a cost-effective solution
to the water quality problem.

            Discussion:

            An investigation of existing facilities may reveal that they
can be operated more efficiently with the addition of new equipment,
operational changes or the addition and training of operating personnel,
or that the facilities have been operating at their optimum efficiency.
Whatever the results of the investigation, the optimum operation of the
existing facilities will determine what additions, expansions or replace-
ments must be made and the extent to which existing facilities can be
converted and/or used in the new system.  Any improvements expected as a
result of future pretreatment by industrial contributors or removal of
excessive infiltration/inflow should be evaluated and discussed.

            Review Procedures:

            In considering the alternative of optimum performance of the
existing facilities, one or more of the following items may be appropriate:

            a.  the maximum performance levels possible with the
                existing process design;
                               IV-34

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            b.  the age and reliability of existing equipment
                and its remaining useful life;

            c.  the qualification and number of additional
                operating personnel needed;

            d.  the additional operating controls and laboratory
                facilities needed;

            e.  the process modifications possible (e.g., convert
                conventional activated sludge to contact
                stabilization; add aeration to stabilization ponds);

            f.  the impact of requiring industrial pretreatment;

            g.  the impact of removing excessive infiltration/
                inflow.

     Re:  40 CFR 35.917-1(d)(3)
          GPFP pp. 9, 10
       6.2  Regional Solutions

            Purpose and Discussion:

            The possibility of a regional solution to wastewater
treatment problems should be explored early in the planning process to
reduce the number of options to a more manageable level.   If the question
has been resolved by previous studies (e.g., 208 areawide waste treatment
management plans), the result may be incorporated into the facility plan
by reference.  If not, the grantee must consider various alternatives,
such as, interconnection of facilities, construction of one or more
larger facilities in lieu of a greater number of small facilities,  joint
management, etc.  This process should resolve the question as to the
feasibility of regionalization as a viable alternative.

     Re:  GPFP pp. 9, 10


       6.3  Waste Treatment Systems

            Purpose:

            For each service area identified under the regional solution
analysis, the "no action" alternative and other waste treatment manage-
ment techniques must be investigated to determine which systems are most
feasible and which may be eliminated from further consideration.
                               IV-35

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           Discussion:

           The combinations of alternative waste treatment systems
could be astronomical and, therefore, a process must be developed which
eliminates those which are not feasible and identifies those which should
be investigated further.  The statutes require that certain systems be
investigated for every project.  Beyond these, the application of basic
engineering, environmental, and economic principles will be sufficient
to reduce the alternatives to a reasonable number.

            The grantee is to present his reasons for eliminating each
alternative investigated.   Where the reasons for elimination are apparent,
they should be briefly stated (e.g., "waste treatment flows cannot be
reduced by I/I rehabilitation or other water saving controls", "sludge
incineration cannot be utilized as it would contravene existing air
quality plans", "no action" is not feasible as the present discharge does
not meet effluent limitations and State has issued a cease and desist
order").

            When the reason for eliminating an alternative i-s not readily
apparent, the grantee is to present evidence or discussion in sufficient
detail to support his conclusion.

            This analysis will identify the most feasible alternatives
which will then be evaluated in greater detail.

            Review Procedures:

            Review the facility plan and determine that the following
topics have been adequately addressed.

            a.  No Action

                Generally, the "no action" alternative can be eliminated
from consideration because of the need for the project as presented in
the preceding chapters.  However, where the "no action" alternative may
be feasible, the facility plan should address this concept.

     Re_:  GPFP p. 10

            b.  Flow and Waste Reduction

                The  plan should address the feasibility of reducing flows.
Possible methods include:

                -  sewer system rehabilitation to reduce or
                   eliminate excessive infiltration/inflow;

                -  implementation of household water-saving devices;
                                IV-36

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               -  installation of water meters (proven to
                  reduce water consumption);

               -  initiating industrial pretreatment
                  requirements, reuse or recycling.

    Re:  40 CFR 35.917-1 (d)(2)
         GPFP p. 13

           c.  Configuration of Sewers and Interceptors

               When service areas have been established, the
configuration of the collection sewers is pretty well  prescribed with
regard to routings and size (minimum size in most States is 8 inches).
Attention should be directed toward trunk and intercepting sewer
alternatives to insure that they conform to existing and future land use
plans.  Preliminary ptpe sizes and costs may have to be estimated to
reduce the alternatives to a manageable number.

    Re:  GPFP p. 13

           d.  Sludge Disposal

               Of the four generally accepted methods  of sludge disposal,
one or more may possibly be eliminated from further consideration based
on physical constraints or regulatory considerations.   The plan should
address each of the following alternative sludge disposal methods:

               -  land application (agricultural, soil
                  conditioner, etc.);

               -  sanitary landfill;

               -  sludge incineration;

               -  ocean dumping (only under very special
                  circumstances).

(NOTE:  Criteria for determining eligibility of land for use in sludge
        disposal is discussed in Chapter VI.)

    Re:  40 CFR 35.917-l(d)(6)
         GPFP pp. 13, 14

           e.  Best Practicable Haste Treatment Technology (BPWTT)

               The statute requires that each project  evaluate, as a
minimum, the following three waste treatment management techniques:

               -  biological or physical-chemical treatment
                  and discharge to receiving waters;

               -  treatment and reuse; and

               -  land application techniques.
                              IV-37

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     As the "state-of-the-art" develops for each of these techniques,
EPA will publish technical  bulletins describing the application and
evaluation of each.  In selecting which of these alternate waste
treatment management techniques is most cost-effective for the
proposed project, the grantee must consider the application of the
best practicable waste treatment technology (BPWTT).

     EPA has established that the BPWTT for "treatment and discharge
to receiving waters", requires a minimum of secondary treatment (see
Section 3) or such advanced waste treatment methods as is necessary
to achieve the effluent limitations required to meet applicable water
quality standards.  Since "reused" wastewater and run off of "land
application" techniques eventually enter receiving waters, the same
level of treatment is required for these techniques.  In addition,
where discharges to groundwaters from "land application" may occur,
the level of treatment must be consistent with the existing or potential
uses of such groundwaters.

     As each of these three techniques is evaluated, the grantee must
also consider how well the  system lends itself to the application of
future technology for reclaiming or recycling the effluent.

     Re_:  40 CFR 35.917-1 (d)(5)
          Alternative Waste Management Techniques for
            Best Practicable Waste Treatment, June 1975

     /.  Combined Sewer Overflows and Stomwater Discharges

         Projects -involving treatment and oontrol of combined sewer
overflows and stornwater discharges may be considered only after the
planning process has clearly established their cost-effeotiveness.  Suah
projects must be considered on a oase-by-aase basis after a careful review
of all alternative control techniques has shown thats even after industrial
effluent limitations and a minimum of secondary treatment for dry weather
munioiyal flows are achieved, the selected alternative is needed to protest
the beneficial use of the receiving waters.  See PRM 75-34 (PG-61).

     g.  Industrial Service

         The joint treatment of industrial and domestic wastes should be
considered and encouraged where possible.  In considering industrial
discharges, the grantee should evaluate to the extent appropriate:  (1) the
compatability of industrial wastes with domestic wastes;  (2) the require-
ments for pretreatment; (3) the volume, strength and method of discharge
(batch or uniform); (4) the cost of industrial pretreatment and joint
treatment versus separate industrial treatment; and (5) the method of
implementing and enforcing limitations on industrial discharges.
                                                      Revised: TM 76-1
                                IV-38                 August 1976

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     Re: 40 CFR 35.928-15
         40 CFR Part 128
         GPFP p. 13


       6.4  Evaluation (Monetary, Environmental, Implementation)

            Purpose:

            An evaluation of the most feasible alternatives is performed
in order to select the most cost-effective and environmentally sound
project.

            Discussion:

            The preceding sections of this chapter provided a systematic
guide for reducing the possible alternatives to a manageable number.  The
alternatives to be evaluated in this section are the most feasible and
will be subjected to a more detailed evaluation under the broad categories
of monetary, environmental and implementation considerations.

            The results of the evaluation will be a display and ranking
of the final alternatives in preparation for public review and the eventual
selection of the most cost-effective and environmentally sound project.
During this evaluation some of the alternatives may be eliminated from
further consideration based upon adverse environmental impacts, high costs,
legal complications or other reasons.  The reasons for elimination must be
stated.  The data used in the evaluations must be supported in other
sections of the facility plan.  Each alternative should be evaluated in
sufficient detail and in a similar format to facilitate its display and
ranking.

            Detailed assistance and instructions for preparing monetary
evaluations is given in the Guidance and in Appendix A, 40 CFR Part 35.
The environmental impact evaluation must consider both primary and
secondary impacts.  The secondary impacts (indirect or induced by the
project) must be presented and carefully evaluated as they could form the
basis for the preparation of an environmental impact statement (see
Section 10).  The review procedures below highlight the key factors to be
considered in the evaluation.

            Review Procedures:

            Each alternative should be analyzed and evaluated with regard
to its relationship or impact upon the subjects below:

            a.  monetary cost analysis based upon:

                -  present worth or equivalent annual cost
                   over planning period;
                               IV-39

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        -  interest rate  as  published  by  U.S. Water  Resources
          Council  at the time  of initiation of the  facility plan;

        -  capital  and operation  and maintenance costs;
          (NOTE:   Monetary  costs should  be shewn in -total and in
          terms of their full  impact  on  the average citizen (being
          served)  and industry-monthly and annually.  Included
          (in itemized form) should be the capital  cost  to the
          grantee  (local share),  interest on borrowed capital,
          sinking  fund costs,,  O&M costs, connection charges,  etc.)

        -  existing facilities-considered as sunk costs;

        -  inflation-not  considered unless justified;

        -  interest on capital  equipment  during construction-
          uniform  unless longer  than  3 years;

        -  service  life - land  50 years
                         structures  30-50 years
                         process equipment 15-30 years
                         auxiliary equipment  10-15  years;

        -  salvage  value  included;

Re:   40 CFR Part  35 Appendix A,  PRM  75-33  (PG-60),  8/11/75;
     PRM 76-3, 8/16/76;  GPFP pp. 18-24
    b.  environmental  impacts (see Section 10)

        - both primary and secondary;

        - beneficial and adverse;

        - irreversible and irretrievable commitments of resources;

        - long-term and short-term;

        - mitigating measures;

Re:  40 CFR Part 6; PRM 75-26 (PG-50), 6/6/75;GPFP pp.  11,  12


    c.  institutional  arrangements

        - identify responsible organization for each alternative;

        - estimated costs to each jurisdiction;

Re:  GPFP p. 12
                             IV-40
                                                 Revised: TM 77-1
                                                 December 1976

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       d.  significant industrial  service

           -  costs of separate treatment;

           -  costs of pretreatment followed by
              municipal  treatment;

Re_:  40 CFR 35.928-15, Part 128
     GPFP p. 13


       e.  flow and waste reduction measures;

Re:  40 CFR 35.917-1 (d)(2)
     GPFP p. 13


       f.  sewer system arrangements

           -  pipe sizes and useful life;

           -  excess or reserve capacity;

           -  alternate routings;

Re:  40 CFR 35.917-l(d)(l)
     GPFP p. 13


       g.  method of sludge disposal;

Re:  40 CFR 35.917(d)(6)
     GPFP p. 13


       h.  location of facilities

           -  odors and aesthetics;

           -  cultural or environmentally sensitive
              resources (see Section 10);

           -  relationship to flood plains;

Re_:  40 CFR Part 6
     GPFP p. 14


       i.  revision of waste load  allocations;

Re:  GPFP p. 14


                          IV-41

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            j.   phased construction

                -  excess or reserve capacity;
                -  modular designs;
      Re:   GPFP p.  14
            k.  project segmenting (see Chapter II  B.2.
                of Handbook);

            1.  flexibility

                -  future land requirements for treatment
                   plant expansion or upgrading;
                -  easements and rights-of-way for  sewers;
      Re_:   GPFP p.  15


            m.  reliability

                -  treatment processes;
                -  equipment and personnel;

      Re:   GPFP p.  15


            n.  multiple purpose projects

                -  prepare and review cost allocations

      Re_:   PPM 77-43  12/3/76


      1,   Plan Selection

        7.1  Views  of Public and Concerned Interests on Alternatives

             Purpose:

             Public participation is required to aid the grantee in
selecting  a plan which will be cost-effective and have the widest possible
public acceptance.

             Discussion:

             Issues surrounding water quality problems and the large
amounts of money needed to solve them often come under attack from varied
interests.  Although the primary responsibility for water pollution control
and abatement rests in governmental agencies, public involvement in the
decisions  and implementation is necessary and desirable.  The intent of
public participation is to foster a spirit of openness and a sense of
mutual trust between the public and governmental agencies and to give the

                                                       Revised:  TM 77-1
                                                       December 1976
                                IV-42

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public a role in decision making in efforts to restore and maintain the
integrity of the Nation's waters.  The facility plan must contain a
summary of the measures taken to provide for, encourage, and assist public
participation in the plan selection.  The summary must also disclose the
public response to the alternatives presented and how significant responses
were incorporated into the plan.

          In addition to any informal  meetings or other forms of public
participation, a formal public hearing must be held prior to plan selection
unless the hearing requirement has been waived by the Regional Administrator.

          Review Procedures:

          Review the hearing summary and supporting documents to determine
that:

          a.  at least one formal public hearing was held, unless
              waived;

          b.  reports, documents or other data to be discussed at
              hearing were available to the public at convenient
              times and places approximately 15 days prior to the
              hearing;

          c.  thirty days notice of the hearing was announced
              through the press or other news media;

          d.  notification was made to interested governmental
              agencies and interested groups (see clearinghouse
              comments);

          e.  all interested parties were afforded an opportunity
              to express their views;

          f.  adverse or significant views are addressed and
              incorporated into the facility plan, ineluding
              addressing of the servicing of mino-p-ity areas not
              previously seweved.

     Re:  40 CFR 35.917-1(g), .917-5
          40 CFR Part 105
          6PFP pp. 17, 18
          Program Requirements Memorandum., PRM 75-32 (PG-59), 2/11/76

          7.2  Evaluation and Ranking of Proposals

               Purpose and Discussion:

          Evaluation of alternatives, ranking, and plan selection involve
making choices based on costs, environmental impacts and feasibility of
implementation.  The grantee may select any number of methods to display
costs and effects of the alternative proposals.  Regardless of the display
method, the effect should be listed, wherever possible, in quantitative


                                                      Revised: TM 76-1
                                 IV-43                August 1976

-------
terms based on the supporting analysis elsewhere in the plan.   Where
quantification is not possible, the comparison should be made  by brief
narrative descriptions.

            The end result of the evaluation is the assignment of a value
judgement to each alternative, ranking them from most acceptable to least
acceptable.

     Re:  GPFP p. 25


       7.3  Selected Plan (major feature summary) and
            Reasons for Selection

            Purpose and Discussion:

            The selected plan, its major features, and reasons for
selection are presented in summary form for clarity and the convenience
of reviewers.

            Review Procedures:

            Review the summary for inclusion of:

            a.  major features;

            b.  clear explanation of the reasons for plan
                selection.

     Re_: GPFP p. 25


       7.4  Environmental Impacts of Selected Plan

            Purpose:

            The primary and secondary environmental impacts of the selected
plan are presented in summary form and specific issues are addressed as
required by the National Environmental Policy Act of 1969 (NEPA).

            Piscuss i on:

            The same issues and review procedures covered in Section 6,
alternatives, are addressed in the selected plan.  However, in review of
the selected plan, they are analyzed  in greater detail.  Special note
should be made by the  reviewer of impacts upon cultural or environmentally
sensitive resources as these  require  special procedures and considerations
(see Section 10).
                               IV-44

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            The grantee should discuss in this or other sections the
mitigating measures which will be employed in the design and construction
phases of the project to minimize adverse effects.  If the adverse impacts
are unacceptable, the reviewer should contact the grantee through the
State agency and discuss mitigating measures which will make the selected
plan acceptable.

            Review Procedures^:

            The summary should include adequate discussions of:

            a.  any unavoidable adverse impacts resulting from
                the proposed project (special note of cultural
                or environmentally sensitive resources);

            b.  the relationship between local short-term uses
                of the environment and the maintenance and
                enhancement of long-term productivity including:

                -  tradeoffs between short-term environmental
                   gains at the expense of long-term gains,
                   and vice versa;

                -  the possibility of proposed action foreclosing
                   future options;

                -  the 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, including an evaluation of the extent
                to which the proposed project 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.

     Re_:  40 CFR 6.512
          GPFP p. 16
     8.  Cost Estimates. Preliminary Designs

       8.1  Description of Design

            Purpose and Discussion:

            The preliminary design of the selected plan is presented to
demonstrate that sound engineering principles have been employed and that
                               IV-45

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all major components of the system have been included.   The detail  for
the preliminary design may vary from project to project depending on the
complexity of the project.  For example, standard package plants will  not
require the same degree of detail as a pure oxygen system with phosphate
removal and sludge incineration.

            Review Procedures:

            Items in a preliminary design might include:

            a.  a schematic flow diagram;

            b.  unit processes and sizes;

            c.  plant site plans;

            d.  interceptor and trunk sewer routings;

            e.  design criteria, including:

                -  detention times;

                -  overflow rates;

                -  other.

     Re:  40 CFR 35.917-1(a) and (b)
          GPFP p. 16


       8.2  Summary of Cost Estimates

            Purpose:

            Cost estimates for final design, preparation of plans and
specification-, and construction of the treatment facilities are included
to insure that Step 2 and Step 3 grant requests are based upon inclusion
of major components of the selected plan.

            Discussion:

            As a part of its program responsibility, EPA is required to
forecast future funding requirements for the design and construction of
wastewater treatment facilities.  The cost estimates and schedules of
completion provided in this section help fulfill those  responsibilities.
The reviewer should be aware of these requirements and  of the procedures
for recording the estimated costs into the GICS process.  The grantee is
required to submit these estimates in an appropriate format entitled
"Summary of Costs of Planned Treatment Works Scheduled  by Project and
Category" (refer to Appendix B) as a special condition  of the Step 1 grant
agreement.
                               IV-46

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            Review Procedures:

            Review cost estimates to determine that:

            a.  costs for the construction of the facilities
                are reasonable and include both capital and
                operation and maintenance costs;

            b.  costs are presented in the required format;

            c.  schedules for the completion of related work
                have been included.

     Re:  Program Requirements Memorandum, PRM 75-30 (PG-57)S 9/8/75
          40 CFR 35.917-1U)
          GPFP p. 16


     9.  Arrangements for Implementation

       9.1  Institutional Responsibilities

            Purpose:

            The agency and its responsibilities for plan implementation
are identified to demonstrate recognition of the steps necessary for
initiation and completion of the project.

            Discussion:

            The responsibility for the implementation of the selected plan
may rest with one or more agencies.  In the case of a single agency, it
must have the authority under State law (or the ability to obtain such
authority) to finance, design, construct, operate and maintain the proposed
facilities.  For regional solutions, several agencies may share the
responsibility for plan implementation and each must have the authority
and ability to carry out its functions.  A common example of this is where
one agency constructs the treatment plant and interceptor sewers to serve
the entire planning area, and the smaller jurisdictions construct the
trunk and lateral sewers.

            In regional solutions, one or more jurisdictions in the planning
area may either oppose or fail to approve the plan.  The grantee should
discuss the appropriate measures required to reach agreement among the
jurisdictions.  While final  agreement is desirable prior to the submission
of the facility plan for review, the State and EPA may approve it even in
the absence of such agreement.
                                                       Revised:  TM  76-1
                                                       August  1976
                               IV-47

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          Review Procedures:

          For implementation, the plan should:

          a.  identify each agency or jurisdiction and its
              responsibility;

          b.  show that each agency has ability and authority
              (or reasonable expectation to obtain such authority)
              under State law to finance, design, construct,
              operate and maintain the proposed facilities;

          c.  identify any referendums or public elections
              necessary for plan implementation;

          d.  include adopted resolutions of plan acceptance
              agreements between jurisdictions;

          e.  include financial  arrangements and obligate each
              jurisdiction to enforce the requirements for user
              charges, industrial cost recovery, sewer system
              rehabilitation and sewer use ordinances;

          f.  identify jurisdictions which oppose or have failed
              to approve the plan and describe  steps necessary to
              reach agreement.

     Re:  40 CFR 35.917-6

       9.2  Implementation Steps

            Note:  To demonstrate recognition of the proposed project
and an orderly program for implementing it, the grantee is to present
a step by step schedule of each  specific action.  The time schedule should
correspond with schedules in the NPDES permit.   Differences must be
resolved.

     Re_:  40 CFR 35.917-1 (a)

       9.3  Operation and Maintenance

            Purpose and Discussion:

            As a part of the Step 3 grant application, a detailed Plan
of Operation must be submitted.   The preliminary O&M plan described in
the facility plan should include the minimum information needed to  perform
cost-effectiveness computations, e.g., discussions of staffing, management,
training, sampling, laboratory facilities, etc.

     Re:  GPFP p. 17
                                   IV-48

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       9.4  Financial Requirements

            Purpose:

            A financial program is described to identify the sources of
funds for implementing the proposed project.

            Discussion:

            The proposed project funding will generally consist of three
parts, namely the Federal grant, the State grant and the local  share.
When a State grant is shown as a source of funding, the reviewer should
confirm that the State grant program remains in effect.  Generally,  the
local funding will be derived from the sale of bonds or industrial
contributions.  Funds must be made available to retire these bonds over
a period of years and to provide for operation and maintenance  of the
facility.  The customary method of obtaining these funds is to  proportion
charges to the various classes of users and to recover capital  costs from
industrial users.  Ad valorem taxes may not be applied as a user charge
system.

            As a requirement for a Step 2 grant, the grantee must
furnish evidence of compliance with the user charge and industrial cost
recovery (UC/ICR) provisions of the regulations.  Satisfactory  evidence
of compliance for a Step 2 grant are letters from the grantee and major
industrial users expressing intent to comply with these provisions.   A
detailed UC/ICR program must be submitted and approved by EPA during the
construction (Step 3) of the facilities and no more than 80 percent  of
the grant amount may be paid prior to such approval.

            Review Procedures:

            Review the financial program to determine that:

            a.  all  project costs including engineering,
                construction, legal and fixed costs have
                been estimated;

            b.  sources of funds are identified and sufficient;

            c.  State grants programs are applicable;

            d-  grantee's share of eligible costs do not
                include revenue sharing funds (see Chapter IV,
                E.);

            e.  the grantee has reasonable expectation of
                obtaining letters of intent to comply with user
                charge and industrial cost recovery programs as
                required for a Step 2 grant (see Chapter V, E.4.
                of this Handbook).
                                IV-49

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     Re:  40 CFR 35.920-3(b), .925-11, .925-12,  .935-13,  Appendix B
          Program Guidance Memorandum, PG- 3,  6/25/73;
                                       PG-37,  7/9/74
     10.  Summary of Environmental  Considerations

          Purpose:

          The summary of environmental  considerations is for those plan
reviewers primarily concerned with the environmental  impacts of the
proposed project.  (It should reference other pages of the facility
plan which provide the detailed environmental analysis.)  The summary,
combined with the more detailed discussion so referenced, are necessary
to satisfy regulatory requirements for an adequate identificable
environmental assessment.

          Discussion:

          The facility plan must evaluate environmental  as well as
engineering, monetary and institutional impacts.   Adverse impacts in
any of these categories may be reason for plan revision, the selection
of another alternative, or the incorporation into the design and
construction phases of measures which will minimize the adverse impacts
or problems.

          Throughout the entire facility plan preparation, the reviewer
should work with the grantee in satisfying all the regulatory require-
ments and selecting the most acceptable plan.  The facility plan may be
reviewed informally or in sections by the reviewer as an aid to the
grantee, and suggested changes may be incorporated with minimum delay
and formality.

          After all discussions and revisions are completed, the reviewer
conducts a formal "environmental review".  Based  upon a review of the
information presented in the facility plan, EPA must make one of three
decisions:

          -  approve the project;

          -  disapprove the project;

          -  prepare an environmental impact statement (EIS).

          The discussion and review procedures below provide guidance to
the reviewer in reaching one of these decisions.

          The first decision (approval) requires  that EPA prepare a
negative declaration supported by an environmental appraisal (contents  to
be discussed later) and make these documents and  the approval decision
public information.
                                   IV-50

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          The second decision (disapproval) is rarely invoked for an
entire project (although segments of a project may be disapproved)
because of the public involvement during the preparation of the facility
plan and the many levels of review by governmental agencies.  The public
involvement and governmental reviews assist in changing the scope of the
project, if necessary, and provide guidance in the selection of the most
cost-effective and environmentally sound project.

          The third decision (preparation of an EIS) is really a method
of arriving at either the approval or disapproval decision.

          In order to arrive at one of the three decisions described above,
many reviewers within EPA and outside of EPA must evaluate the proposed
project and make their recommendations for approval or disapproval of the
project.  The summary of environmental considerations presents the
pertinent environmental information to assist in that decision.

          The review procedures below are intended to assist the reviewer
in arriving at the decision and, once made, the necessary actions to carry
out the decision.

          Review Procedures:

          a.  Criteria for Determining When to Prepare an
              Environmental Impact Statement

              The regulations implementing the NEPA requirements for the
construction grants program are quite specific, resulting in reviews and
recommendations by several branches in EPA as well as recommendations
from outside the agency.  The construction grants reviewer must prepare
his recommendation in a manner that permits the Regional Administrator to
make a decision as to whether or not an EIS is to be prepared.

              The NEPA procedures involve an "environmental review" which
evaluates the project on the basis of two broad criteria; namely, will the
project have significant environmental effects, or have environmental
impacts which are likely to be highly controversial.

              For certain projects involving (a) historical and
archaeological sites; and (b) wetlands, flood plain, coastal zones, wild
and scenic rivers, fish and wildlife; additional investigations are
required on the part of either EPA or the grantee which, when evaluated
along with the NEPA criteria, will assist in deciding when an EIS is to be
prepared.

              These additional  procedures are described below and should be
evaluated in conjunction with the review of the NEPA criteria.
                               IV-51

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              (1)  Historical and Archaeological  Sites

                   EPA has the responsibility under the procedures of
the Advisory Council on Historic Preservation to  insure that archaeological
and cultural resources are identified in the primary impact areas of the
project.  The investigation to identify resources is carried out by the
grantee.  The exact procedures may vary from State to State, a.nd the
reviewer should be familiar with the requirements of his particular State.

                   Generally, however, the grantee should  contact the
State Historic Preservation Officer (SHPO) as soon as the project scope
and general location is known.  The SHPO may be able to identify cultural
or historic sites in the area which may aid in selecting the best
alternative.  The SHPO may also indicate that the area is quite sensitive
and that a professionally qualified archaeologist should be employed to
identify the resources.  In the event that the project is limited to
previously disturbed areas, the SHPO may advise that the project will not
effect any cultural resources and that no further investigations are
required.

                   In many cases the SHPO or  grantee may  be able to
review the National Register of Historic Places and identify resources
in the project area.  A professional in this field may need to be employed
to identify resources which are eligible for inclusion in the National
Register.  The  grantee and  his  professional  representative  must prepare
a report in consultation with the SHPO stating whether the project will
have any effect upon the cultural resources identified.

                   Upon receiving this report, and in the case of a
resource eligible for  listing in the National Register, EPA should
immediately contact the Department of the Interior to determine if the
resource is, in fact,  eligible for inclusion.

                   For all cultural resources identified, the  grantee,
his professional representative, and the SHPO must prepare a report  for
review and decision by EPA concerning the effect the project may have on
that resource.  Specifically, the following procedures should be followed,
as applicable:

                   (a)  project has no effect on identified resources -
                        applicant to include views of SHPO showing
                        concurrence; exchange of correspondence  to be
                        appended to report;

                    (b)  project has effect on identified  resources -
                        apply Advisory Council Criteria of adverse effect;

                    (c)  if the application of adverse criteria  results in
                        the conclusion by the grantee's professional
                        expert, and is agreed to by  the SHPO,  that  the
                        effect is not adverse, the documentation supporting
                        that  conclusion must be forwarded to thia Advisory


                                IV-52

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FIGURE IV-1
PROCEDURES FOR REVIEW OF CULTURAL RESOURCES
                             c
                             0 tn
                             •H C
                             -P -.H
                             O 4->
                             0) 0)
                           0 Qj 0)
                         W d, W g
                         0) (1) C
                       nJ  U M -H u
                       4-J  O     -H
                           0) OJ r-H
                   * Letters correspond to review procedures
                     described on preceding pages.
                          IV-53
                                   Rev.  10/20/75

-------
                       Council  for concurrence.   If Advisory Council
                       concurrence is received,  the project may proceed
                       as proposed with the application of any mitigating
                       criteria which may have been recommended;

                  (d)  if the application of the adverse criteria results
                       in the conclusion that the project will have an
                       adverse effect, the comments of the Advisory Council
                       must be obtained and a consultation process is set up;

                  (e)  the consultation process  involves:

                       -  on-site inspections;

                       -  public information meetings;

                       -  considerations of alternatives;

                       -  avoidance of adverse effects;

                       -  mitigation of adverse  effects;

                  (f)  generally, the above procedures will be sufficient
                       to resolve adverse effects; specific conditions of
                       resolution are contained  in a Memorandum of Agree-
                       ment between EPA, the Advisory Council, and the
                       SHPO.

                  It is the responsibility of the construction grants
reviewer to insure that the above procedures are, or have been, carried out.
Letters, reports, or other documents in support  of the above procedures
are to be appended to the facility plan.  The final decision as to the
affect of a project on historic and archaeological resources rests with
EPA under the Advisory Council  Procedures.

    Re:  Federal Register, 2/4/75, Department of the Interior
         National Register of Historic Places
         40 CFR 30.405-7
         40 CFR 6.510(e)
         36 CFR 800 (Advisory Council Procedures)


             (2)  Wetlands, Flood Plains, Coastal Zones, Hi Id and
                  Scenic Rivers, Fish and Wildlife

                  Whenever a selected project will effect any of these
environmentally sensitive resources, the consultations below must be
carried out.  The impact of the project upon these resources should be
discussed by the applicant in his environmental  assessment statement.
                              IV-54

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EPA has the responsibility for carrying out these procedures, but the
applicant may be encouraged to do so in preparing the facility plan.
Whether the project will have a harmful affect on these resources
requires prudent judgement on the part of the reviewer.

                  The consultations below, as applicable, must be carried
out before the facility plan may be approved.

                  -  Wetlands

                       Consult with:

                       -  Department of the Interior

                       -  Department of Commerce

                       -  U.S. Army Corp of Engineers

                       Document consultation and obtain written comments
                       from each of these agencies whenever possible.

                  -  Flood Plains
                       Refer to Flood Hazard Boundary Maps or Flood
                       Insurance Rate Maps prepared by DHUD and determine
                       if grantee is or must be participating in the
                       flood insurance program; determine if proposed
                       project satisfies applicable flood plain statutes
                       and regulations and EPA guidance with regard to
                       location, elevation or protection of structures.

                  -  Coastal Zones

                       Consult with:

                       -  Appropriate State office

                       -  Department of Commerce

                       Document consultation and obtain written comments
                       from each of these agencies whenever possible.

                  -  Wild and Scenic Rivers

                       Consult with:

                       -  Appropriate State office, and

                       -  Department of the Interior, or
                              IV-55

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                       -   Department  of Agriculture where National
                          forest  lands  are  involved.

                       Document consultation  and  obtain written  comments
                       from each  of these agencies whenever  possible.

                  -  Fish and Wildlife

                       If the project will  result in  the control  or
                       structural  modification  of any stream or  body  of
                       water, consult with:

                       -   U.S.  Fish and Wildlife  Service, Department  of
                          the Interior

                       -   National  Marine Fisheries Service  of the
                          National  Oceanic  and  Atmospheric Administration,
                          Department  of Commerce

                       -   U.S.  Army Corp of Engineers

                       -   Appropriate State agency

                       Document consultation  and  obtain written  comments
                       from each  of these agencies whenever  possible.

                  -  Threatened or Endangered Species

                       Consult with:

                       -   Secretary of  the  Interior,  or

                       -   Secretary of  Commerce where marine species
                          are involved.

    Re:   40 CFR 6.214, 6.510 (a)(3)


                  (3)  NEPA Criteria for Determining  When to
                       Prepare an EIS

                       In addition to evaluating  the  effects of  the
proposed project upon the cultural  and  environmentally sensitive resources
as required by the regulations, the reviewer must evaluate  the environmental
assessment contained within the facility plan and,  by applying the NEPA
criteria, determine if an EIS should be prepared.
                               IV-56

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                       Environmental impacts are classified as:

                       -  adverse/beneficial

                       -  long-term/short-term

                       -  primary/secondary

                       Grantees are required to classify the impacts of
the proposed project into these categories.  The most difficult of these
impacts to evaluate are the secondary impacts.   Secondary impacts are
distinguished from primary impacts as follows:

                       -  Primary impacts are those that can be attributed
directly to the project; for example, construction and operation of the
treatment works.  They may be beneficial' (improved effluent) or adverse
(soil erosion during construction) etc.   Often, the adverse primary impacts
can be minimized by small changes in the project design or by construction
techniques, both of which are to be discussed in the facility plan.

                       -  Secondary impacts are indirect or induced growth
related changes resulting from the project.  They include induced changes
in the pattern of land use, population density, and related effects on air
and water quality or other natural resources, and increased growth at a
faster rate than planned for, or above the total level planned by, the
existing community.  The grantee must address  the secondary  impacts  in
the facility plan and, where adverse, propose actions which will minimize
or mitigate these effects.

                       In evaluating the primary and secondary impacts,
the reviewer must determine if they are significant or controversial.
After all of the applicable procedures listed above are carried out and all
possible mitigative measures have been explored with the grantee and
State, a decision is made to prepare or not to  prepare an  EIS.


          b.  No EIS Required

              (1)  Negative Declaration

                   Upon deciding not to prepare an EIS, EPA will prepare
a negative declaration which summarizes the purpose of the project, its
location, extent and nature of land use changes, and major primary and
secondary impacts.  The negative declaration must also describe how the
more detailed "environmental appraisal" may be obtained.   Copies of the
negative declaration are to be distributed in accordance with the regula-
tions (Appendix C Federal Register Vol.  40 No.  72 - Monday, April 14, 1975,
page 16827).  Press releases or other public notices are also to be made
and must include copies of the negative declaration.  The public notices
must state that interested persons disagreeing with the decision may
                               IV-57

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submit comments for consideration by EPA.   Fifteen working days after
the public notice, and upon consideration  of any comments or objections
received, EPA will decide to proceed with  the project or prepare an EIS.
In the former case, the grantee is advised to submit the additional
documents of plan approval and that he may proceed with the submission
of other documents for a Step 2 grant (see Chapter V).   If an EIS is to
be prepared, the procedures described later are followed.

              (2)  Environmental  Impact Appraisal

                   Concurrently with the preparation of a negative
declaration, EPA will prepare an environmental impact appraisal.  This
appraisal shall be brief but contain more  information and explanations
than the negative declaration, including:   description  of the proposed
project and the most feasible alternatives, its environmental impacts,
adverse unavoidable impacts, relationship  between short-term uses of
man's environment and the maintenance and  enhancement of long-term
productivity, mitigating measures, resource commitments, summary of
comments and consultations on the project, and reasons  for concluding
there will be no significant impacts.  Copies of the appraisal  are to
be sent to the EIS coordinator at Headquarters, and copies are to be made
available (at cost) to the public upon request.

    Re_:  40 CFR 6.212, 6.512(g)


              (3)  Facility Plan Approval

                   Upon approval, the grantee  and State  should  receive
a letter from EPA notifying them of facility plan approval and setting
forth any special conditions resulting from a review of the facility plan
which might be imposed on the  grantee upon application for a Step  2
grant.  The approval letter must contain language to the effect that
approval of the facility plan does not constitute an obligation of the
United States for any Step 2 or Step 3 grant.


              (4)  Grants Information and Control System (GICS)

                   Project cost information was entered in the GICS system
at the time the applicant applied for his  Step 1 grant (see Chapter IV,
F.3.).  Upon approval of the facility plan, the GICS information is to be
updated using the coding sheets (see Appendix B).


          c.  Prepare EIS

              (1)  Notice of Intent

                   Upon deciding to prepare a draft EIS, EPA will  issue a
"notice of intent".  The purpose of the notice of intent is to advise the
public and other  interested agencies of the decision to prepare an EIS and
                              IV-58

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seek their input and involvement at the earliest possible stages.  Press
releases and other forms of public notification are to be used.

              (2)  Draft EIS

                   As soon as possible after the notice of intent, EPA
will prepare the draft EIS in accordance with the procedures outlined in
EPA regulations entitled "Preparation of Environmental Impact Statements"
(issued 4/14/75). In some cases, a consultant will prepare the EIS under
the direction and close supervision of EPA.  During the preparation of
the EIS, the grantee may be requested to submit additional information
concerning the project.  The Regional Administrator is to decide the scope
of the EIS and which environmental issues will be discussed in greatest
detail.

                   A Step 2 grant may not be awarded until a final EIS
has been prepared and all regulatory requirements have been met.  The
resulting modified project will have to be rereviewed at the appropriate
stage of the facility planning process.  Additionally, a Step 2 grant
award may contain special conditions resulting from the preparation of
an EIS.

    Re:  40 CFR 6.206, 6.208, 6.512(e)
                              IV-59

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  FIGURE  IV-2     PROCEDURES  FOR  NEPA REVIEW
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            CHAPTER V




     STEP 2 GRANT PROCESSING
A.  Introduction




B.  Schematic Flow Diagram




C.  Application Contents




D.  Facility Plan Approval




E.  Administrative Review




F.  Grant Award Procedures




G.  Preparation of Plans and Specifications




H.  Predesign Conference




I.  Review of Plans and Specifications

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A.   INTRODUCTION
     This chapter describes the contents of and review proce-
dures for processing of a Step 2 grant application.  It begins
with the receipt of the application package and concludes with
the review and approval of the plans and specifications.

     Section B, Schematic Flow Diagram, visually places this
chapter in the proper sequence and indicates the major activities
of the Step 2 application and review.

     Section C, Application Contents, provides a quick ready
listing of the materials which are contained in an application
package.

     Section D, Facility Plan Approval, restates the requirements
for an approved facility plan as a part of the Step 2 application.

     Section E, Administrative Review, describes the procedures
involved in reviewing priority list compliance and certification,
application form, contracts and subagreements and assurances.

     Section F, Grant Award Procedures, describes the action
required on the part of EPA in making the grant offer.

     Section G, Preparation of Plans and Specifications, discusses
the need to work with the grantee during the preparation of P & S.

     Section H, Predesign Conference, describes the administrative
and technical considerations to be discussed with the grantee
at the conference prior to the preparation of plans and specifi-
cations.

     Section I, Review of Plans and Specifications, describes
the specific information to be reviewed in the plans and
specifications.  Technical considerations are included to enable
the reviewer to adequately evaluate the Step 2 treatment works
design.

     The technical and administrative reviews are to be performed
simultaneously wherever possible.   When items are missing or
explanations are necessary, the review is to proceed as far as
possible to insure quick action once the items are corrected.
                           V-l

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B.
SCHEMATIC FLOW DIAGRAM
     The flow diagram below visually  places this chapter in the proper

sequence and indicates its relationship to other chapters.   The diagram

includes the general functions of  the Step 2 grant process as performed

by the applicant, State and EPA.

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                                   V-2

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C.   APPLICATION CONTENTS

     Below are listed the basic items to be included in an application
package.  The items are listed here for quick reference, while the
review procedures for each item are described later.  The reviewer is
to make a cursory review to insure that all items are included, that
all applicable portions of the forms are completed, and that the
documents are signed by the appropriate officials.  If items are
missing or explanations are necessary, the State is to be contacted
but the review is to proceed as far as possible to insure quick action
when the required material or information is received.


     1.  Facility Plan (complete and approved)

     2.  State Priority Certification, EPA Form 5700-28

     3.  Application, EPA Form 5700-32, including authorizing
         resolution and statement regarding availability of
         the proposed site

     4.  Proposed subagreements (generally engineering contracts)
         or explanation of method of awarding proposed subagreements

     5.  Evidence of compliance with user charge and industrial
         cost recovery provision of the regulations

     6.  Completed or substantially completed service agreements

     7.  Civil Right compliance, Form 4700-1  and 4700-4

     8.  Statement of compliance with Relocation and Land
         Acquisition Policies Act of 1970, if applicable


     Re_:  40 CFR 35.917-6, .920-3(b), .925-3, .925-9, .925-11, .925-12
          40 CFR 30.315,  .405-2, .405-3
D.   FACILITY PLAN APPROVAL

     The technical review of a facility plan is described in Chapter IV
of this Handbook.  The grantee was notified in writing of his facility
plan approval and need not resubmit it.  The reviewer need only confirm
in the project files that the facility plan was approved by EPA.
                                   V-3

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E.  ADMINISTRATIVE REVIEW


    1.   Priority List Compliance and Certification

             Purpose:

             The State agency is required to certify each project
as entitled to priority for grant funds in accordance with the State
priority system and the project priority list.

             Discussion:

             Chapter II discusses the State priority system and
list.  Once the system and annual list have been approved by EPA,
each project is certified by the State as being entitled to priority
for a grant over all other projects below it on the priority list
(EPA Form 5700-28, see Appendix B).

             A State may elect to set aside up to ten percent of its
yearly allotment to fund Step 1 and Step 2 projects not on the current
priority list.  When such projects are certified, the certification must
signify that the grant is to be made from that reserve allotment.

             Only projects which have been certified by the State
as entitled to priority for Federal assistance may receive a grant.

             Review Procedures:

             Review State Priority Certification to determine that:

             a.  the name, project number and description of the
                 project agree with the application, form 5700-32,
                 and the approved State priority list;

             b.  the form includes the signature of the authorized
                 State official;

             c.  the award of grant assistance for the project will
                 not exceed the State's allotment, including reallot-
                 ments;

             d.  the award of grant assistance will not jeopardize
                 the funding of any projects of higher priority;
                              V-4

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            e.  the State has included a statement to the effect
                that all jurisdictions within the facility planning
                area have been notified of State and EPA approval
                of the facility plan.

    Re_:  40 CFR 35.915, .917-2, .920-2, .925-3, .925-4
         Program Guidance Memorandum, PG-33, 5/10/74; PRM 75~14
                                      PG-35, 6/3/75;  PRM 75-16
                                      PG-46, 1/17/75  PRM 75-24


    2.  Application Form

             Purpose:

             EPA Form 5700-32 is the formal application document and
sets forth the information necessary to obtain a construction grant.
Additionally, the application contains "assurances" from the applicant
which satisfy several statutory requirements.

             Discussion:

             The application for a Step 2 grant is submitted by the
authorized representative of the jurisdictions included in the approved
facility plan.  In all cases, the applicant must have the legal authority
to design, finance, construct, operate, and maintain any resulting
wastewater treatment facilities.

             The application form is used to request an initial grant,
make amendments, and to request supplemental grants.  The form (see
Appendix B) contains instructions for completion of each of the five
parts.  Part If, Section B, requires information concerning the project
site.  For a Step 2 application, a statement regarding availability of
the proposed Site must be included. If 'sites or eat/sments have not been^
aaguixacl, the applia&nt is to b® in^ormsd of the need to accomplish
preliminary easement work concurrent with other Step 2 activities.(Sites
and easements may be ^.cg
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In these cases the reveiwer should contact the regional DHUD office
for specific limitations.  However, such items as cost overruns (not
otherwise funded by EPA), sewage collection systems, or land acquisition,
for example, which are not included within the scope of the EPA grant
as allowable costs, may be funded with revenue sharing funds.

               The statutes require that the applicant comply with
related laws and regulations and give other assurances.  Many of these
requirements are satisfied for a Step 2 grant when the applicant signs
the application and thereby assures and certifies that he will comply
with the requirements.  However, additional evidence of compliance with
some of these assurances is required from the applicant (see Section E.4.).
A copy of the authorizing resolution designating the official  to act as
the official representative of the applicant (Part V, item 1 of applica-
tion Form 5700-32) must be included with the application.  Any subsequent
changes in the authorized official must also be documented by a copy of
the resolution authorizing the change.

               Review Procedures:

               Review application form to determine that:

               a.  the name, the project number, and the description
                   of project and amount of grant request agree with
                   the State Priority Certification, Form 5700-28,
                   and the approved State priority list;

               b.  the form is signed by the authorized representative
                   and a copy of the authorizing resolution is attached;

               c.  a statement regarding availability of the proposed site
                   is attached;

               d.  information regarding project location, entities
                   involved and cost data corresponds to that in the
                   facility plan and Summary of Costs of Planned Treat-
                   ment Works Scheduled by Project and Category;

               e.  all items in the apolication are complete or marked
                   not applicable  (NA);

               f.  Part III, Section D, Proposed Method of Financing
                   Non-Federal Share, assures that the applicant
                   successfully fund his share of the oroiect costs.
                   l-ifvenue sharing funds can bo used; however if
                   Community Development Block Grant Funds are to be used,
                   contact DHUD; (Particular emphasis should be placed on
                   review of this section).
                                                            Revised:  TM  7
                                   V-6                      December 1977

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              g.  Part V. Assurances, is included with the
                  application: if not the application must be
                  returned to the applicant for inclusion of
                  a signed copy of the Assurances.

          40 CFR 30.315
          40 CFR 35.920-2, .920-3(b)(4)
          P.L. 94-488
          BTTFR Part~51, Department of Treasury
     3.   Contracts and Subagreements

               Purpose:

               Contracts or subagreements for personal or professional
services are submitted by the applicant and reviewed by both the State
and EPA to insure that the scope and nature of the proposed services
are sufficient to result in approvable plans and specifications and
that the fees and schedules are reasonable.

               Discussion:

               The personal and professional services covered by the
subagreements at the time of Step 2 application submission are generally
the consulting engineering services.  The regulations state that the
application shall include proposed subagreements or an explanation of
the -intended method of awarding subagreements for performance of any
substantial portion of the project work.

               Also, the regulations require that any such subagreements
or lower tier subagreements include an "access" clause allowing the State
or EPA access, at reasonable times and places, to the work or records.
The "access" clause is applicable to subagreements or lower tier sub-
agreements in excess of $10,000.

               The detailed requirements  of and procedures for procuring
personal or professional  services are contained in the regulations, 40
CFR 35.936, .937.  Subagreements in which the fee is a percentage of
construction costs are not acceptable, nor are cost multiplier contracts
where profit is included in the multiplier.

               Review Procedures:

               Review the  agreement(s)  to determine that:

               a.   the applicant has complied  with 40 CFR  35.936
                   and .937;

               b.   the scope  of the work  is sufficient  to  prepare
                   approvable plans and specifications;

               c.   completion schedules are reasonable  and  in  agree-
                   ment with  the facility plan.
                                                              Revised:  TM 78-1
                                                              December 1977

                                  V-7

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     Re:  40 CFR 35.920-3(b)(7), .935-7, .936, .937, .938,  .939,  .965
          and Appendices C & V; 40 CFR 30.605

     4.  Assurances and Program Requirements

     The regulations require that the applicant furnish evidence  of meeting
program requisites and assurances made in the Step 1 and Step 2 grant  -
application as well as requirements prescribed in other Federal statutes.
Evidence of compliance with the following is of particular importance:

     a.  user charges - the applicant must submit an approvable plan
         and schedule for the implementation of a user charge system
         in accordance with the guidelines in the regulations (40 CFR,
         Part 35, Appendix B);

     b.  industrial cost recovery - the applicant must agree to require
         all industrial users to pay that portion of the grant amount
         allocable to the treatment of wastes from their use of the
         system; also the applicant must furnish letters from the major
         (10% or more of waste flow or strength) industrial users
         indicating that they will pay their portion of the grant amount
         allocable to the treatment of wastes from their use of the
         system and their intended period of use.

     c.  service agreements - where the project involves more than one
         political jurisdiction, the applicant must submit completed
         or substantially completed service agreements.  These agree-
         ments will include financial arrangements and will obligate
         each jurisdiction to enforce the requirements for user charges,
         industrial cost recovery, sewer system rehabilitation and
         sewer use ordinances.

     d.  Civil Rights Act of 1964 - the applicant must complete two
         forms: Assurance of Compliance, EPA Form 4700-1, and Com-
         pliance Report, EPA Form 4700-4;

     e.  Relocation and Land Acquisition Policies Act of 1970 - if
         the project will result in the acquisition of private property
         or the displacement of persons, the applicant must submit a
         statement that he will prepare a program for compliance with
         the provisions of the Act.

     /.  Section 404/Seotion 10 Permits - When permits from the Corps
         of Engineer's for the discharge of dredged or fill material
         are required for the faeility^ an -issued 404/Section 10 permit
         or a determination by the Reg-tonal Administrator that the Corps
         is prepared to issue a perm-it.


     Re: 40 CFR 35.917-6, .920-3(b)(5)(6), .925-9,  .925-11, .925-12;
         40 CFR 30.405-2, .405-3; Program Requirements Memorandum, PRM 76-4 3
          10/14/76
                                                      Revised:  TM 77-1
                              V-8                     December 1976

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F.   GRANT AWARD PROCEDURES

     (Note:  See Step 1 award procedures, Chapter IV, pp.14 and 15
for notification procedures and data regarding items 1 through 4)


     5.   Grant Agreement/Amendment

          Purpose;

          The Grant Agreement/Amendment (EPA Form 5700-20) serves as
a formal document of agreement between the U.S. Government and the
applicant and constitutes a legally binding contract once executed.

          Procedures:

          EPA Form 5700-20 (see Appendix B) is completed by the Reqional
Office based upon the information submitted in the application package.
The agreement must define the scope of the project.   Modification to
grant amounts, scope of work, or other items are made on the basis of
the review process, and special conditions of the grant are included
in Part III b.  These special conditions may be based upon clearing-
house comments, request from the State agency, or conditions unique
to the project.  Such unique conditions may include consideration of
mitigating measures identified in the review of the facility plan, EIS
where prepared, sewer system evaluation survey requirements, or other
considerations.

          In order to better forecast future funding requirements, each
applicant for a grant is required to submit cost estimates in the format
shown in the form Summary of Costs of Planned Treatment Works Scheduled
by Project and Category (see Appendix B).This requirement is to be
incorporated as a special condition in the grant/agreement amendment.

          The grant agreement/amendment is not sent to the applicant
until five working days after the signing by the Regional Administrator
in order to allow for necessary congressional notification.  The
applicant is given three weeks to accept the grant offer and to return
the stgned grant agreement/amendment to EPA.

          The individual signing the grant agreement/amendment on behalf
of the applicant should be the same individual who signed the aoplication.
Differences must be explained and a new authorizing resolution submitted
(see Application Form item E.3 of this chapter).

     Re:  Program Guidance Memorandum, PG-55, 5/5/75
                               V-9

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G.  PREPARATION OF PLANS AND SPECIFICATIONS
         Purpose and Discussion:
         Program responsibility for the progress of a project does
not end with the grant offer.  Rather, the reviewer must know the
day-to-day status of the project to insure that it is completed in
accordance with the approved schedule.  Also, he must insure that
the applicant is aware of the administrative and technical
considerations to be included in the plans and specifications.
         Procedures:
         Shortly after acceptance of a Step 2 grant, the reviewer
should:
         1.   contact the grantee and his consultant to
              make known the kinds of advice and assistance
              available from the State and EPA during the
              preparation of the plans and specifications;

         2.   forward to the grantee and his consultant the
              administrative and technical considerations
              to be incorporated into the plans and specifi-
              cations, including 40 CFR 35.936, .938, .939
              and Appendix C-2;

         3.   arrange for a predesign conference.
                                   V-10

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H.  PREDESIGN CONFERENCE
         Purpose and Discussion:
         EPA, in conjunction with the State agency, should assume
responsibility for insuring that the plans and specifications are
prepared in accordance with sound engineering practice and regulatory
requirements.  Because of the complexity of these requirements, a
predesign conference betwaen the grantee, his consultant, the
State and EPA is strongly urged, whenever practicable.

         The predesign conference, which may be held with one or
more grantees, promotes careful planning and coordination and insures
the timely completion of_the various phases of a project.  In some
cases, the review of plans and specifications may be delegated to a
State.  In such cases, the State is responsible for the predesign
conference arrangements.  For the other cases, the regions are
encouraged to develop formats for the predesign conferences.   The
formats may then be tailored to the individual staffing resources
of the States and the needs of the applicants.
          Procedures:
          Shortly after acceptance of a Step 2 grant, but prior to
the preparation of plans and specifications, the reviewer should
arrange a predesign conference with the grantee, grantee's
consultant and State agency.  Suggested subjects to be discussed
include:

          1.   the legal requirement for inclusion of and
               provisions for carrying out the bidding
               procedures described in 40 CFR 35.936, .938,
               .939 and Appendix C-2;

          2.   the technical requirements of the design to
               insure that the project will  meet effluent
               limitations per NPDES permit  and  will  be
               designed in accordance with sound engineering
               practice;

               Re:  40 CFR 35.925-7
                                 V-ll

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3.   additional  requirements, as applicable, for
     detailed design reports beyond that submitted
     with the facility plan.  Possible examples are:

     -  loading rates and sizes of various
        components of the plant;

     -  design computations for sewers, including
        slopes and capacities;

     -  system head curves for pumping stations,
        indicating number and capacity of pumps;

     -  other detailed design reports which the
        particular project may require;

4.   pretreatment design requirements and scheduling,
     as applicable, for industrial dischargers;

     Re:  40 CFR 35.925-15

5.   design considerations or investigations
     resulting from the environmental assessment
     or environmental impact statement.  Possible
     examples are:

     -  a soil erosion plan;

     -  a traffic control plan;

     -  archaeological investigations;

     Re_:  40 CFR 35.925-8

6.   design requirements arising from executed
     agreements between jurisdictions;

     Re:  40 CFR 35.917-6

7.   force account requirements, as applicable;

     Re:  Program Guidance Memorandum, PG-34, 5/7/74

8.   phasing of contracts;

     Re_:  Program Guidance Memorandum, PG-33, 5/10/74
                       V-12

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 9.  flood protection insurance requirements, as applicable;

     Re:  40 CFR 30.405-10
          Program Requirements Memorandum,  PPM 75-28 (PG-54),
            7/8/75

10.  records to be maintained during design and construction,
     separating eligible and ineligible items;

     Re:  40 CFR 30.805, 35.940

11.  site certification requirements, if not previously satisfied;

     Re:  40 CFR 35.920-3 (b)(4), PRM 77-6, 5-4-77

12.  future requirements for

     - the user charge and industrial cost recovery system;

     - a sewer use ordinance;

     - an evaluation/rehabilitation program, as applicable;

     - an operation and maintenance program, including O&M
       manual, staffing and training;

     Re:  40 CFR 35.935-12, -13, -16

13.  requirements for submission of project status reports
     and requirements for periodic inspections and audits,
     as necessary, for large or complex projects;

     Re:  40 CFR 30.635, .820

14.  requirements for construction contracts to conform with
     the standardized format, "Contract Documents for
     Construction of Federally Assisted Water and Sewer
     Projects", and that such eontracts may not include
     escalation clauses;

     Re:  Program Requirements Memorandum,  PRM 75-4 (PG-17A),  4/15/75
                                           PRM 75-2S (PG-44),  12/19/74
                                                   Revised: TM 78-1
                             V-13                  'December 1977

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         15.  use of value engineering in the design phases
              of the project;

              Re:  Program Requirements Memorandum, PRM 75-30
                   (PG-57), 9/8/75 and PEM 75-36 (PG-62),  1/20/76

         16.  possible benefits from the use of construction
              management.
         The reviewer should provide the grantee with guidelines,
instructions, booklets, or other publications which describe specific
requirements in detail.
I.  REVIEW OF PLANS AND SPECIFICATIONS
         Purpose:

         To insure that the project to be built will satisfy effluent
and statutory requirements.
         Discussion:

         Depending upon the complexity of the project, periodic
reviews and inspections will have been carried out during the prepara-
tion of the plans and specifications and changes or modifications, if
required, will have been made.  The set of plans and specifications
submitted for final review should reflect all changes and be suitable
for bidding purposes.

         The review procedures are both administrative and technical.
The technical review procedures are broad in scope and each region is
encouraged to pattern its own review procedures to account for State
or local design practices and requirements.  Although not specifically
required, the use of a checklist such as the "Program Checklist for
Engineering Drawings, Specifications, and Engineering Reports",
Appendix C, is recommended.
                                                     Revised: TM 76-1
                                                     August 1976
                                 V-14

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          Review Procedures:
          a.   Administrative Review

               The following six items must be included in the
bidding documents:

               (1)  a statement of work, including drawings
                    and specifications, and the required
                    completion schedule;

               (2)  the terms and conditions of the contract
                    (40 CFR 35.938-8);

               (3)  an explanation of the method of bidding;
                    the method of evaluating the bid prices,
                    and the basis for the award of the contract;

               (4)  the criteria for evaluating bidders;

               (5)  the standard statement concerning the
                    funding of the project by EPA;

               (6)  a copy of 40 CFR 35.936, 35.938 and 35.939.

               In addition to the above six items, the reviewer is to
insure that the specifications include the following provisions:

               (1 )  Supplemental General Provisions

                    Appendix C-2 of 40 CFR Part 35 which
includes requirements for:

                    -  audit:  access to records

                    -  price reduction for defective
                       cost or pricing data

                    -  contract work hours and safety
                       standards

                    -  equal  employment opportunity

                    -  utilization of small  and minority
                       business

                    -  covenant against contingent fees
                                   V-15

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                   -  anti-kickback

                   -  gratuities

                   -  patents

                   -  copyrights and rights in data

                   -  clean air and water clause


               (2)  Equal Employment Opportunity

                    The EEO provisions must be followed where contracts
are greater than $10,000.  In areas having a home-town or an imposed
plan, the contract specifications must contain the specific provisions
of the plan as published by the Secretary of Labor in the Federal
Register.  Home-town plans are agreements reached among the local
contractors, trade unions, minority groups and governmental agencies,
which are approved by the Secretary of Labor, and contain the goals for
the hiring and training of minority groups.  Imposed plans likewise set
forth minority hiring and training goals; however, such goals are  not
reached by agreement, but imposed by the Department of Labor.

                    In either instance, the reviewer should insure that
the applicable plan is contained in the specifications.

                    In non-plan areas, contractors will be required to
comply with the provision of Executive Order 11246 and engage in
affirmative action directed at promoting and insuring EEO in the work
force used under the contracts.

                    When the cost of the construction is estimated to
exceed a ceiling amount specified by the Regional Administrator, the
contracts may require special provisions.  The reviewer, in such cases,
should contact the Civil Rights and Urban Affairs Office within the
EPA regional office for specific instructions.

               R£:  40 CFR 35.935-6
                    40 CFR Part 8
                                 V-16

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               (3)   Davis-Bacon  Act

                    The provisions of the Davis-Bacon  Act must be
included in contracts exceeding  $2,000.   These Provisi°n^^eb
payment of prevailing wages for  the  various trades as  determined by
the Secretary of Labor.
                    Prevailing area-wide rates are published weekly
in the Federal Register.  For individual projects not  included in
areas with area-wide wage rate determinations, the Regional  Office will
obtain a wage rate for inclusion in the specifications.

                    Modifications to area-wide wage rate determinations
are to be  included in  the bidding documents provided they have been
published 10 days prior to the bid opening date.  .M°d^!"^°n^° are
individual project determinations are to be included provided they are
received  in the Regional Office 10 days prior to bid opening.

                    The reviewer is to insure that the current wage
rate determination is  included in the bidding documents or that
provisions for  inclusion have been made.

                Re_:  40 CFR 30.403,  .415


                (4)  Flood  Insurance

                    For projects requiring  flood  insurance  (see
 Chapter VI  E.4.a.  of  this  Handbook) make  certain  that  the contractor  is
 required to  obtain the necessary flood  insurance  during  construction.


                (5)  Bonding

                     For contracts  in  excess of $100,000, the following
 minimum bonding and insurance requirements  must be met:

                        5% bid bond; Grantees may  not require bid
                        guarantees  greater than 5% or that a specific  form
                        d>f bid guarantee be  used unless required by State/
                        local law.

                     -  100% performance and payment bond;

                     -  fire and extended coverage workmen's
                     compensation,  public liability and property damage,
                     and "all risk", as  required by local  or State law;

                     -  flood insurance, as  applicable, during construction.

                                                           Revised:  TM 78-1
                                  V-17                     December 1977

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                    For contracts less than $100,000, bonding and
insurance requirements shall be in accordance with local or State
practices.
          b.   Tec hn i ca 1 Review:

               The technical review of the plans and specifications is
carried out to insure that the proposed facilities, if constructed in
accordance with the plans and specifications, will achieve the effluent
limitations or water quality standards required by the NPDES permit.
The review is also to insure that sound engineering design principles
are employed, primarily regarding process considerations.   Structural,
electrical, and mechanical details of the design are not critically
reviewed because they are the responsibility of the engineer whose seal
appears on the drawings.  However, obvious irregularities should be noted.

               The technical review should evaluate the plans and
specifications according to the criteria in "Program Checklist for
Engineering Drawings, Specifications, and Engineering Reports" (see
Appendix C) to the extent appropriate for the particular project and
State requirements.  The following are examples of items which should be
reviewed.

               (1)  Safety Precautions

                    The requirements of the Occupation Safety and Health
Act (OSHA) must be fulfilled;

               (2)  Mitigative Measures

                    Plans and specifications must be compared with
mitigative measures required by the environmental  assessment or impact
statement.  Examples might be soil erosion control, hours of operation,
backfilling and seeding, structural design for buildings in a flood
plain, etc.

               (3)  Bypassing

                    Construction is to be carried out so as to prevent
bypassing of flows during construction, where possible.

               (4)  Project Sign

                    Contractor is required to provide a  project sign  in
accordance with the drawing shown in Appendix B.
                                 V-18

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               (5)  Reliability and Flexibility

                    The proposed facilities must be reliable and
provide for flexibility in operation.  This may be accomplished, for
example, by requiring standby power, by providing for bypass of
individual plant units, by providing pumping capacity sufficient to
operate the plant with the largest pump out of service, etc.

               (6)  Operation and Maintenance

                    All equipment, piping, switches, instruments, etc.
are to be clearly marked for ease of identification and location for
operation and maintenance.

               (7)  Public Hater Supply

                    All public water supplies are to be protected by
adequate backflow preventers (for example, double check valves, air
gap).

               (8)  Chemical Storage

                    All chemicals are to be properly stored and curbed
to hold the entire volume in the event of an accidental spill.  Also,
adequate safety protection gear is to be provided, with proper storage,
for plant personnel.

               Re_:  Technical Bulletin No. 0-71-1, 10/15/71

               (9)  Ventilation

                    Adequate ventilation is to be provided in all areas
where necessary (for example wet well, dry well, chlorine room, chemical
storage area, etc.).

              (10)  Laboratory Facilities

                    The laboratory facilities must be adequate to conduct
the type of sampling and testing required by the NPDES permit or by the
State agency.
or dangers.
             (11)   Emergency Alarms

                    Adequate alarms are to be provided to warn of failures
                                 V-19

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              (12)  Use of Mercury
                    Mercury is not to be used for trickling  filter
seals.  Other uses of mercury require special review and  approval.
              Re:  Technical  Bulletin No.  D-71-2, 10/15/71
              (13)  Sewers
                    Acceptable levels of infiltration and test therefor
are included; sewers should maintain minimum scouring velocities and
have adequate capacity, including peaking factors.
              (14)  Equipment
                    Except where based upon performance specifications
at least two trade names must be specified for all major  items of
equipment.
              Re:  Program Guidance Memorandum, PG-19A
                   40 CFR 35.936-13(a)
              (15)  Shellfish Waters
                    Where discharges will  come into contact  with
shellfish waters, appropriate measures must be included to protect  the
shellfish.
              Re:  Technical  Bulletin, Protection of Shellfish
                     Waters,  EPA 430/9-74-010, July 1974
              (16)  Pretreatment
                    Where applicable the design must be in accordance
with the requirements for pretreatment of incompatible industrial wastes.
              Re:  40 CFR 35.925-15
                                 V-20

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          c.   Plan and Specification Approval

               Upon approval by EPA of the plans and specifications,
the grantee and State agency are to be so notified.  The notification
will generally be in the form of a letter and should contain any special
conditions resulting from the review which would be imposed on the
applicant upon application for a Step 3 grant.  The approval notice
should specifically remind the applicant not to advertise for bids until
after applying for and receiving a Step 3 grant.  He should also be
reminded that the EPA is not obligated to award a Step 3 grant for the '
project.
                                 V-21

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       CHAPTER VI
STEP 3 GRANT PROCESSING

A.   Introduction
B.   Schematic Flow Diagram
C.   Application Contents
D.   Plans and Specifications Approval
E.   Administrative Review
F.   Grant Award Procedures
G.   Procurement of Construction Contracts
H.   Preconstruction Conference
I.   Monitoring of Construction Activities

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A.   INTRODUCTION
     This chapter describes the contents of and review procedures
for processing of a Step 3 grant application.   It begins with the
receipt of the application and concludes with  the start-up of the
completed facilities.

     Section B, Schematic Flow Diagram, visually places this chapter
in the proper sequence and indicates the major activities of the
Step 3 application and review.

     Section C, Application Contents, provides a quick ready listing
of the materials which are contained in an application package for
a Step 3 grant.

     Section D, Plans and^Specifications Approval, restates the
requirement for approved plans and specifications as a part of the
Step 3 application.

     Section E, Administrative Review, describes the procedures
involved in reviewing priority list compliance and certification,
application form, contracts and subagreements, assurances, and
institutional arrangements.

     Section F, Grant Award Procedures, describes the action required
on the part of EPA in making the grant offer.

     Section G, Procurement of Construction Contracts, describes the
procedures involved in the authorization to advertise for bids, review
of bids, grant increase/decrease, protests, and authorization to award
contracts.

     Section H, Preconstruction Conference, describes the administrative
and technical considerations to be discussed with the grantee relative
to construction activities.

     Section I, Monitoring of Construction Activities, describes the
procedures involved in the execution of change orders and on-site
inspections, and the review of the user charge, industrial  cost recovery
and operation and maintenance programs.
                                 VI-1

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B.
SCHEMATIC FLOW DIAGRAM
      The flow diagram below visually places this chapter in the proper
sequence and indicates its relationship to other chapters.  The diagram
includes the general functions of the Step 3 grant process as performed
by the applicant, State and EPA.
1
construc-
tion
Conference
\
\
r— -^
                                       w
                                       -p
                                       o
                                 4J
                                 G
                               *3
                                     (0
                                 VI-2

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C.   APPLICATION CONTENTS
     Below are listed the basic items to be included in an application
package.  The items are listed here for quick reference, while the
review procedures for each item are described later.  The reviewer is
to make a cursory review to insure that all items are included, that
all applicable portions of the forms are completed and that the documents
are signed by the appropriate officials.  If items are missing or
explanations are necessary, the State is to be contacted but the
reviewer is to proceed as far as possible to insure quick action once
the corrections are made.

     1.   Plans and Specifications (2 sets)

     2.   State Priority Certification, EPA Form 5700-28

     3.   Application, EPA Form 5700-32, including authorizing
          resolution and site certificates.

     4.   Proposed subagreements or explanation of method of
          awarding proposed subagreements.

     5.   Evidence of compliance with the Flood Disaster Protection
          Act and the Sewer Use Ordinance requirements.

     6.   Sewer System Rehabilitation Scheduling, where applicable.

     7.   Institutional Arrangements (service agreements in
          multijurisdictions).

     8.   Schedule for compliance with Operation and Maintenance
          requirements.

     9.   Payment Schedule (refer to Chapter VII).

    10.   Evidence of progress in developing user charge system.

    Re:   40 CFR 35.920-3(c), .925-3, -10,  .927-2, -1
          40 CFR 30.315, .405-10
                                VI-3

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D.   PLANS AND SPECIFICATIONS APPROVAL
     The review of plans and specifications is described in Chapter V
of this Handbook.  The applicant has been notified that the plans and
specifications are approvable, and should have been informed of any
missing forms or documents which must be included in the final  bidding
documents.  The reviewer should confirm this by examining the project
file.  The applicant is responsible for submitting 2 sets of the plans
and specifications, including all required documents, as a part of the
Step 3 application.  In particular the applicant should be informed
of the requirement for inclusion of the latest wage rate determination
in accordance with the Davis-Bacon Act.
E.   ADMINISTRATIVE REVIEW
     1.    Priority List Compliance and Certification
               Purpose:

               The State agency is required to certify each project as
entitled to priority for a grant in accordance with the State priority
system and resulting project priority list.
               Discussion:

               Chapter II discusses the State priority system and list.
Once the system and annual list have been approved by EPA, each project
is certified by the State as being entitled to priority for a grant over
all other projects below it on the priority list (EPA Form 5700-28, see
Appendix B).

               If the project being certified is for a grant increase due
to cost overruns, the applicant and State are subject to special conditions
described in Chapter II, B-2 State Priority System and List, and B-3
Funding.

               Only projects which have been certified by the State as
entitled to priority for Federal assistance may receive grants.
                                 VI-4

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               Review Procedures:

               Review State Priority Certification and determine that:

               a.  the name, project number and description
                   of project agree with the application, form
                   5700-32, and the approved State priority list;

               b.  the form includes the signature of the
                   authorized State official;

               c.  the award of grant assistance for the project
                   will not exceed the State's allotment,
                   including reallotments;

               d.  the award of grant assistance will not jeopar-
                   dize the funding of any projects of higher
                   priority.

     Re_:  40 CFR 35.915, .917-2, .920-2, .925-3, .925-4
          Program Requirements Memoranda (PG-33)  5/10/74; PRM 75-14
                                         (PG-46)  1/17/75;
     2.   Application Form
               Purpose:

               EPA Form 5700-32 serves as the formal application
document and sets forth the information necessary to qualify for a
construction grant.  Additionally, the application contains "assurances"
from the applicant which are necessary to satisfy statutory requirements.


               Discussion:

               The application for a Step 3 grant is submitted by the
authorized representative of the jurisdictions included in the approved
facility plan.  The applicant must have the legal authority to finance,
construct, operate and maintain the proposed wastewater treatment facilities.

               The application form is used to request initial grants,
amendments, and supplemental grants.  The form (see Appendix B) contains
instructions for completion of each of the five parts.  Part II, Section B
must be completed for a Step 3 grant and must be accompanied by site
certification from legal counsel indicating the applicant's interest in
the project site and ability to obtain any required easements or rights-
of-way.

                                                         Revised: TM  78-1
                                                         December 1977
                                 VI-5

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               Part III, Section D, concerns the applicant's proposed
method of financing the non-federal share of the project,   in accordance
with P.L. 94-488, revenue sharing funds can be used to meet the applicant's
share of the cost of the project. In certain cases involving sewage
collection systems (not treatment plant nor intercepting sewers), the
applicant may use Community Development Block Grant Funds  as the community's
local share.  In these cases the reviewer should contact the regional DHUD
office for specific limitations.

               The grant request should not include costs  for pretreatment
of incompatible industrial wastes, nor costs for treatment of wastes
originating from Federal installations (excluded from allowable costs).

               The statutes require that the applicant comply with related
laws and regulations and give other assurances.  Many of these requirements
are satisfied for a Step 3 grant when the applicant signs  the application
and thereby assures and certifies that he will comply with the requirements.
However, additional evidence of compliance with some of these assurances is
required from the applicant (see Section E.4).  A copy of the authorizing
resolution designating the official to act as the representative of the
applicant (Part V, item 1 of the application form) must be included with
the application.  Any subsequent changes in the authorized official must also
be documented by a copy of the resolution authorizing the  change.


               Review Procedures:

               Review the application form and determine that:

               a. the name, project number, and description
                  of the project and the amount of the grant
                  request agree with the State Priority
                  Certification Form 5700-28 and the approved
                  State Priority List;

               b. the form is signed by the authorized
                  representative and a copy of the authorizing
                  resolution is attached;

               c. the certification of project site interest
                  and the status of easements and rights-of-way
                  is included;
                                                                Revised: _TM 78-1
                                                                December 1977
                                 VI-6

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               d.  information regarding the project location,
                   entities involved and cost data corresponds
                   to that in the Summary of Costs of Planned
                   Treatment Works Scheduled by Project and
                   Category;

               e.  all items in the application are complete or
                   marked not applicable (NA);

               f.  Part V, Assurances is included with the
                   application.  If not, properly signed form
                   must be obtained.

               g.  force account work must be properly identified.

               NOTE:  Particular emphasis is placed upon review
                      of Part III, Section D, Proposed Method of
                      Financing Non-Federal  Share, to insure that
                      the applicant can fully fund his share of
                      the project costs and  that revenue sharing
                      funds will not be used to match those costs
                      eligible for EPA grant assistance (if
                      Community Development  Block Grant Funds are
                      to be used, contact DHUD);

               Re:  40 CFR 30.315
                    40 CFR 35.920-2, .920-3(c), .925-15, .925-16
                    P.L.  94-488

                    31 CFR Part 51,  Department of Treasury


     3.   Contracts and Subagreements


               Purpose:

               Contracts or subagreements for personal  or professional
services are submitted by the applicant and  reviewed by both the State
and EPA to insure that the scope and nature  of the proposed services are
sufficient to result in approvable facilities and that  the fees and
schedules are reasonable.
                                                          Revised:  TM 78-1
                                                          December 1977

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               Discussion:

               The personal  and professional  services  covered  by the
subagreements at the time of Step 3 application submission are generally
the consulting engineering services.   The regulations  state that the
application shall include proposed subagreements or an explanation of
the intended method of awarding subagreements for performance  of any
substantial portion of the project work.

               Also, the regulations require that any  such subagreements
or lower tier subagreements include an "access" clause allowing the
State or EPA access, at reasonable times and places, to the work or
records.  The "access" clause is applicable to subagreements or lower
tier subagreements in excess of $10,000.

               The detailed requirements of and procedures for procuring
personal or professional services appear in 40 CFR 35.946, .937.
Subagreements in which the fee is a percentage of construction costs are
not acceptable nor are cost multiplier contracts where profit  is included
in the multiplier.
               Review Procedures:

               Review the agreement(s) and determine that:

               a.  the grantee has complied with 40 CFR 35.936
                   and .937;

               b.  the scope of work is sufficient to construct
                   approvable facilities;

               c.  completion schedules are reasonable and in
                   agreement with the plans and specifications.

               Re:  40 CFR 35.920-3(c), .935-7, .936, .937, Appendix D.
                    40 CFR 30.605
     4.   Assurances

          In addition to the assurances contained in Part V of the
application form, the applicant is to comply with the additional procedures
listed below:
                                 VI-8

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            Flood Disaster Protection Act of 1973 -
            To determine if a community is required to
            participate in the flood insurance program,
            consult the Federal Register of
            June 25, 1975, pages 26740-26756, and the
            weekly updates thereto as published in
            the Register, or consult the regional DHUD
            office.  If the community is eligible for
            participation and if the project contains
                      structures, each of $10^000 or
            more in value, the applicant is to furnish
            evidence that it is participating in the
            program and a letter of intent that it
            will obtain the required insurance both
            during construction and for the useful
            life of the project.

            Structures that must be insured are new
            or reconstructed surface structures which
            are walled and roofed (control building
            or pumping station for example). I terns
            which are not eligible for insurance are
            sewers or other facilities not likely to
            be damaged in the event of flooding.

            Projects outside the flood hazard areas
            or in areas not yet delineated by DHUD
            need not obtain flood insurance.
            Communities have until one year after
            notification of identification as a
            flood-prone area to meet the flood
            insurance requirement.
Re:  40 CFR 30.405-10
     Pro gram Requirements Memorandum s PRM 76-5, 8/16/76
        b.  Sewer Use Ordinance - The applicant must submit
            a current sewer use ordinance or a letter of
            intent that such ordinance will  be enacted before
            completion of the project.  The  sewer use
            ordinance must prohibit new sources of inflow
            (illegal  connections from sump pumps, foundation
            drains, roof leaders, etc.) from being connected
            to the sewer system and require  proper design and
            construction techniques for new  connections.   It
            must also require pretreatment of toxic or
            incompatible industrial wastes prior to discharge
            into the  system.

Re:   40 CFR 35.927-4, .925-15                          Revised:   TM  77-1
                                                       December  1976

                                VI-9

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     5.   Operation and Maintenance Scheduling

          The applicant must provide evidence that he will  comply
with the requirements for the efficient operation and maintenance
of the proposed facilities.  This involves the submission of an
O&M manual, development of emergency procedures, use of properly
trained staff, and provision of adequate budget, operational
reports and adequate laboratory testing.  Grant payments will be
limited until these items are submitted by the applicant for
review and approval by EPA.

          At the time of the Step 3 application, a schedule which
shows the time of submission of the required documents to EPA is
satisfactory evidence that the applicant will comply with the O&M
requirements.  The schedule may also show when the operating
personnel will be hired.  Many states have adopted specific programs
for O&M and the reviewer should be familiar with the requirements
of the particular state.

          Re:  40 CFR 35.920-3(a), .925-10,  .935-12
     6.   Sewer System Rehabilitation Scheduling

          Where the scope of the Step 3 grant includes sewer system
rehabilitation, the applicant must submit a schedule for completing
the rehabilitation program.  Because the applicant is required to
comply with the schedule for sewer system rehabilitation in order
to receive full grant payment, the schedule must be reasonable for
the work involved.  It is desireable that the rehabilitation program
be completed prior to completion of the plant.  However, the
rehabilitation program may continue beyond the scheduled start-up
provided that the unfinished rehabilitation work will not have an
adverse affect on the operation of the plant.

          Re:  40 CFR 35.927-5(c), .935-16, .927-3


     7.   Institutional Arrangements

          The applicant must have proper jurisdictional control  over
all political entities within the service area to insure the adoption
of user charges, cost recovery systems, and sewer use ordinances and
to insure full implementation of the sewer system rehabilitation
program (where applicable).  The control will normally be in the form
of signed service agreements between the applicant and each contributing
municipality specifying the obligations of all parties for compliance
with the applicable statutory and regulatory requirements.

          Re_:  40 CFR 35.917-6

                                 VI-10

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F.   GRANT AWARD PROCEDURES
     Procedures for a Step 3 grant award are identical  with those
for a Step 1 award, as shown in Chapter IV, pages 14 and 15, insofar
as items 1 through 4 are concerned.  Item 5 for a Step 3 grant follows:

     5.   Grant Agreement/Amendment
          Purpose:

          The Grant Agreement/Amendment (EPA Form 5700-20) serves as
a formal document of agreement between the U.S. Government and the
applicant, and constitutes a legally binding contract when executed.
          Procedures:

          EPA Form 5700-20 (see Appendix B) is completed by the
Regional Office based upon the information submitted in the application
package, including any subsequent changes.  The agreement must define
the scope of the project.  Modifications to grant amounts, scope of
work or other items are made on the basis of the review process.
Special conditions of the grant are included in Part III b.  These
special conditions may be based upon clearinghouse comments, requests
from the State agency or conditions unique to the project.

          The grantee must complete certain regulatory requirements
before full grant payment may be made.  Because these requirements are
so important, and to avoid oversight on the part of the applicant, they
may be included in the grant agreement as "special conditions".  These
are:

          a.  User Charge/Industrial Cost Recovery Systems -
              No more than 50$ of the Federal share of the
              Step 3 grant may be paid until the grantee has
              submitted evidence of the timely development of
              the UC/ICR systems, and no more than 80% may be
              paid until the systems are approved.

          b.  O&M Manual - No more than 50% of the grant may
              be paid until  the draft manual has been submitted
              or evidence of compliance has been received, and
              no more than 90% may be paid until a satisfactory
              O&M manual has been furnished.
                                 VI-ll

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          c.   Sewer Use Ordinance - No more than 80% of the
              Step 3 grant may be paid until the sewer use
              ordinance(s) is approved.

          d.   Rehabilitation Program - No more than 80% of
              the grant may be paid until compliance with
              the rehabilitation program (if required)is
              achieved.


          The grant agreement/amendment is not sent to the applicant
until five working days after the signing by the Regional Administrator
in order to allow for necessary congressional notification.  The
applicant is given three weeks to accept the grant offer and to return
the signed grant agreement/amendment to EPA.

          The individual signing the grant agreement/amendment must be
the authorized representative as shown on the application form.  Any
changes must be documented through a resolution by the jurisdictions
involved.

          Re_:  40 CFR  35.935-12, -13,  -16

NOTE :

     It is imperative that the preconstruction phase of Step 3 projects
be carefully managed to minimize the lag time between award of the
Step 3 grant and initiation of construction.  The status of this phase
is reported by periodic Regional updating of the ^reconstruction informa-
tion in the Grants Information and Control System.

     It should be borne in mind that 40 CFR 35.935-9 requires that the_
Regional Administrator terminate a grant if construction is not initiated
within one year after award of the Step 3 grant   The termination date may
be extended for a maximum period of six months if the Regional Administrator
determines that such an extension is justified.  Further extension^is
possible only upon formal waiver of the appropriate provisions of 35.935-9.
          Re_:  40 CFR 35.935-9
               40 CFR 35.1000
                                                            Revised:  TM 78-1
                                                            December 1977
                                  VI-12

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J»
              G.    PROCUREMENT OF  CONSTRUCTION CONTRACTS


                   1.   Authorization and Formal Advertising for Bids


                            Discussion:
                            Once the grantee has accepted the grant offer, EPA
             may authorize advertising for bids (completed and approved bidding
             documents,  including plans and specifications, were a part of the
             Step  3 grant application).  While the approved bidding documents
             contain  the necessary requirements for formal advertising
             (35.938-4), the letter authorizing the grantee to advertise for
             bids  should reemphasize and briefly remind the grantee of these
             requirements and the procedures to be followed after receipt of bids.
                            Procedures:
                             Immediately after acceptance of the grant offer,
             the reviewer should prepare a letter to the grantee:
                            a.  authorizing him to advertise for bids
                                in accordance with regulations;
                            b.  indicating the documents to be submitted
                                and procedures to be followed after
                                receipt of bids (see item 2 following
                                for list of documents);
                            c.  warning him not to award contracts until
                                receiving authorization to do so is
                                received from EPA.

                            d.  reminding grantee that while rejection of all
                                bids is possible, such action may be taken only
                                with prior EPA concurrence and only for good
                                cause.
                        Revised:  TM 78-1
                        December 1977


VI-13

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     2.   Review of Bids
               Purpose and Discussion:
               A review of the bids, bidding procedures, and
accompanying documents is made to insure compliance with applicable
laws and regulations and to insure that contracts will  be awarded to
the lowest responsive, responsible bidder.
               Review Procedures:
               The following documents are to be submitted and
reviewed prior to authorizing award of construction contracts.
               a.  a certified tabulation of all bids
                   received;
               b.  two copies of the proposal form and
                   bonds from the successful bidder;
                   a statement from the authorized
                   official giving the names of the
                   bidders to whom the grantee wishes
                   to award contracts and the amount
                   of each contract;
               d.  proof of advertising indicating the
                   circulation dates and time for receipt
                   of bids;
               e.  a copy of each addendum issued during
                   the bidding period and acknowledgement
                   of its receipt by the successful bidder;
               f.  signed copies of the certification by
                   the contractors regarding compliance
                   with a home-town or imposed plan, as
                   applicable;
                                 VI-14

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                   if award is to be made to other than
                   the low bidder, a justification from
                   the applicant indicating why the low
                   bidder is not responsive or responsible;
               h.  a revised cost estimate, as necessary
                   (see suggested cost breakdown format,
                   Appendix B);
               i.  other documents showing conformance
                   with applicable State and local  laws
                   and ordinances.
               Re_:  40 CFR 35.935-4, .938



     3.   Grant Increases/Decreases


               Discussion:
               The grant amount is adjusted, as appropriate, after
receipt of bids to more accurately reflect project costs.
               Procedures:
               a.  Grant increases - if the bids exceed the estimated
construction costs and the excess costs cannot be covered by the
contingency allowance, and if the grantee wishes to award the contracts
on the basis of these increased costs, he must request a grant increase
through the State agency.  The State must submit a statement to EPA
authorizing the grant increase.  A contingency allowance (generally
between 3 and 5 percent of construction costs) is to be included in
the revised project costs to allow for change orders, overruns, etc.
Grant increases require a revised grant agreement/amendment, the
updating of the GICS, and Congressional liaison notification if the
increase exceeds $10,000.  Refer to Chapter VII, E., Increases and
Decreases, for specific procedural instructions.
                                 VI-15

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               b.  Grant decreases - if the bids are less than the
estimated construction costs contained in the Step 3 application,
the grant is to be reduced accordingly but should continue to include
a contingency allowance (generally between 3 and 5 percent of
construction costs).  Grant decreases require a revised grant
agreement/amendment and the updating of the GICS.  Refer to Chapter
VII, E., Increases and Decreases, for specific procedural instructions.
               c.  Contingency adjustment - regardless of whether a
grant increase or decrease is appropriate, the contingency allowance
noted in the Step 3 grant application should be adjusted after bids
have been received.  Common practice has been to allow a ten percent
contingency allowance for a Step 3 grant request but to adjust the
allowance to between 3 and 5 percent of the construction costs after
receipt of bids.  Should the contingency adjustment result in a need
for a grant increase or decrease, follow the procedures in a. or b.
above.
               Re_:  40 CFR 35.915(g), (h)
                    40 CFR 30.900-1
                    Program Guidance Memorandum, PG-41,  10/16/74
     4.   Protests
               Discussion:
               In the award of contracts, many individuals and firms
have a vested interest in the decision as to who will  receive the
construction contract.  If the proposed award is not in favor of their
particular interests, they may choose to protest the award.  In such
instances, the protester must take his grievance to the grantee for
initial resolution.  In turn, the grantee must advise EPA of the
protest, the basis therefor, and his proposed method of resolution.
If the protester is dissatisfied with the decision of the grantee
and feels that Federal law will be violated by the proposed award, he
may ask the Regional Administrator to review the grantee's decision.

               The award of contracts is subject to an immense body
of laws and regulations and often involves sensitive legal issues.
Therefore, the construction grants reviewer should consult the Regional
                                 VI-16

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Counsel when he learns of a protest or of an action which may lead
to a protest in order to obtain advice as to any steps he should
take relative to the protest.  Early consultation with Regional
Counsel is particularly important when a proposal is made for award
of the contract to other than the low bidder or when an attempt  is
made to withdraw a low bid.
               Review Procedures:
               The construction grants reviewer must exercise
caution in handling protests, especially with regard to commenting
on the nature of the protest or recommending courses of action.
Accordingly, the reviewer should:
                   Assure that the protest is taken up
                   with the grantee as a first means of
                   resolution.  Any comments to the grantee
                   or protester at this time should be
                   limited to procedural requirements.
               2.  If the protester is dissatisfied with
                   the grantee's decision on his protest,
                   assure that the protest is referred to
                   the Regional  Office with the protester's
                   statement as to what Federal law or
                   regulation would be violated by the
                   proposed award and any comments the
                   grantee wishes to submit.
               The reviewer, in consultation with Regional  Counsel,
will decide if the protest is valid or without merit and so advise
the Regional Administrator.  If it is decided that the protest is
without merit and the Regional  Administrator concurs, the protest
may be dismissed without further proceedings.  If the protest appears
to have some merit, Regional Counsel  is responsible for coordinating
actions as prescribed in 40 CFR 35.939 to resolve the matter.  The
reviewer should assume the lead role in gathering data necessary to
a final decision and in assuring timely resolution of the protest.
               Re:  40 CFR 35.939
                                 VI-17

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     5.   Authorization to Award Contracts
               Discussion:
               After reviewing the bids and determining that all
regulatory requirements have been satisfied, the grantee is given
authorization to award contracts.  This authorization is in the form
of a letter and should contain instructions for arranging a pre-
construction conference with the grantee, his resident inspector,
the State agency, the successful contractor and a representative  of
EPA.
H.   PRECONSTRUCTION CONFERENCE
               Purpose:
               The preconstruction conference is held to identify
and clarify the responsibilities of the grantee (and his consultant,
where appropriate), the contractor, the State and EPA.
               Discussion:
               Preconstruction conferences are not mandatory but are
to be encouraged wherever possible.  The conferences may be called
at the request of the State, the grantee, the contractor or EPA.
EEO may also hold separate preconstruction conferences to discuss the
equal employment opportunity responsibilities of each party.  The
subject matter to be discussed at the preconstruction conference may
vary from project to project but should address the responsibilities
of each participant.  The procedures below list several  areas which
might be discussed at the conference.
               Procedures:
               Suggested subjects to be discussed at preconstruction
conferences include:
                                 VI-18

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a.  the responsibilities and authority of
    the grantee, the contractor, the
    resident inspector, the State and EPA;
b.  compliance with State and local  laws
    and ordinances;
Re:  40 CFR 35.935-4
c.  compliance with Davis Bacon and related
    laws concerning the posting and payment
    of minimum wage rates;
Re:  40 CFR 35.935-5, 30.415


d.  equal employment opportunity requirements;


Re:  40 CFR 35.935-6; 40 CFR Part 8


e.  access to the work site and records;


Re:  40 CFR 35.935-7
f.  requirements for adequate engineering
    supervision and inspection during
    construction;
Re:  40 CFR 35.935-8
g.  payment documents, requests and procedures
    for filing;
Re:  40 CFR 35.945
                  VI-19

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h.  project changes, including time of
    completion, change orders, change in
    project scope or grant amount;
Re:   40 CFR 35.935-9, .935-11,  .938,  .955
i.  interim and final  inspections by the
    State and/or EPA;
Re:  40 CFR 35.935-14
j.  records to be maintained by the grantee,
    the inspector, and the contractor and
    the auditing procedures;
Re_:  40 CFR 30.805, .820


k.  requirements for timely submission of

    - a user charge system

    - an industrial cost recovery system

    - a sewer use ordinance

    - an operation and maintenance manual

    - a plan of operation


Re:  40 CFR 35.935-12, -13, -16
1.  archaeological or historical  resources
    requirements, as applicable;
Re:  40 CFR 6.214
                  VI-20

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               m.  mitigating measures to be employed
                   during construction, as recommended
                   in the environmental assessment and
                   contract documents.
               Re_:  40 CFR 6.512(a) (6)



I.   MONITORING OF CONSTRUCTION ACTIVITIES


     1.    Change Orders


               Purpose:
               A change order is the customary method of modifying
the construction contracts after work has begun and may result in
cost increases/decreases or other project changes.
               Discussion:
               During the course of construction, it may be necessary
to make changes in the project which require a modification of the
construction contract.  The project changes may result from minor
errors in the plans and specifications or consist of emergency changes
required to protect life or property.  Prior approval by EPA of minor
or emergency change orders is not required.

               Project changes which will alter the design
or scope of the project; the type of treatment; the location,
size, capacity or quantity of any major component; or which require
additional  Federal funds must receive the prior approval  of the State
and EPA before being executed.  Approved change orders resulting in
construction cost increases are ordinarily paid for from the
contingency portion of the total project cost.  Where the change order
or combination of change orders exceeds the contingency allowance and
the grantee requests an increase in the grant amount, the procedures
in item G.3 of this Chapter are to be followed.
                                 VI-21

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               Review Procedures:
               To process a change order,  the  reviewer  should
determine that:
                  it includes a justification  statement
                  from the grantee;
                  it identifies contract  cost  increase
                  or decrease in sufficient  detail  to
                  allow for review as to  reasonableness
                  of the costs;
                  it does not include work clearly  approved
                  in the specifications;
               -  it agrees with the unit price  or  unit
                  price adjustments as specified in the
                  contract documents;


               -  it has been approved by the State agency;
                  it does not substitute one piece of
                  equipment or material  for another as  a
                  means of circumventing the "or  equal"
                  provisions of the specifications
                  (40 CFR 35.936-13(a));
                  if it alone or in combination  with  other
                  change orders exceeds $100,000.00,  the
                  grantee has negotiated with the contractor
                  and costs are fully detailed and documented
                  in accordance with 40 CFR 35.938-5(d);
                  if it results in a request for  a  grant
                  increase or decrease,  the procedures  in
                  section G.3 of this chapter are followed.
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               Upon review and approval of the change order, the
grantee is notified of such approval in writing and is authorized
to execute the change order.
               Re:  40 CFR 35.935-11, .938-5, .955
                    40 CFR 30.900-1
                    PG 17A, Contract General  Provisions, Sec.  14
     2.   On-Site Inspections


               Purpose:
               On-site project inspections are made to insure that
the project is being managed properly, is on schedule, and is being
constructed in accordance with approved plans, specifications and
change orders.
               Discussion:
               On-site project inspections are made during construc-
tion (interim) and at the completion of construction.  The frequency
of interim inspections will depend upon the size and complexity of the
project.  Interim inspections may be made by the State or EPA.  If
made by the State, they should be coordinated with the Regional Office,
and copies of the inspection reports should be furnished to the project
officer. EPA may also utilize Inter-Agency Agreement Inspectors.

               Final inspections should be made within 60 days after
being notified by the grantee that the project is complete and
operating, that the necessary operational staff has been hired, and
that the project has been accepted by the grantee.  EPA has the
responsibility for conducting final  inspections but usually the Federal
inspector will be accompanied by an  official of the State agency.

               Regional  offices are  encouraged to develop and use  their
own inspection report forms.  Appendix B includes a sample inspection
report for reference.
                                 VI-23

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Procedures:
a.  Interim inspections - the EPA or State
    inspector shall  determine that:
       the grantee is providing competent
       and adequate supervision and
       inspection and is maintaining
       appropriate inspector's logs;

       approved plans, specifications
       and change orders are available
       at the project site;

       construction conforms to the
       approved plans, specifications
       and change orders and is on
       schedule;

       the latest engineer's estimate
       of work-in-place agrees reasonably
       with the actual observed construc-
       tion;

       reasonable tests of materials and
       equipment are being conducted and
       noted in logs or reports (slump
       tests of concrete for example);

       equipment delivered to the site
       is being properly protected and
       stored;

       a project sign is appropriately
       displayed and identifies appropriate
       agencies;

       the wage rate decision is prominently
       displayed and agrees with the contract
       documents;

       project accounting records are
       maintained and they distinguish
       between allowable and nonallowable
       costs supported by receipts or
       certified contractor invoices;
                  VI-24

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       safety provisions are being
       followed in accordance with OHSA
       requirements;

       any special construction techniques
       or practices are being employed in
       accordance with the grant agreement;

       the grantee has hired the operational
       staff and is providing training, as
       appropriate (see O&M requirements
       below);
                                         /
       the grantee is preparing an operation
       anfl maintenance manual;

       the grantee is preparing a user
       charge and an  industrial cost
       recovery system, as required;

       the grantee is making satisfactory
       progress toward the completion of
       service agreements;

       the grantee is providing wastewater
       treatment capability during construc-
       tion;

       procedure exists to call deficiencies
       to the attention of the authorized
       representative;
b.   Final  inspections - the items under interim
    inspections should be considered,  as appropriate,
    as well  as the following:
       the facilities are complete,  operating
       and, in the case of a treatment plant,
       will meet the effluent limitations
       required by the NPDES permit;

       the facilities conform to the approved
       plans, specifications and change orders;

       all  equipment is operational  and
       performing satisfactorily;
                  VI-25

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                      appropriate operation  and  maintenance
                      staff has been hired and  instructed
                      in the startup and operational
                      procedures;

                      laboratory facilities  are  complete
                      and sufficient to conduct  appropriate
                      tests;

                      the operation and maintenance manual,
                      with schedule for routine  maintenance
                      and testing, is readily available and
                      procedures are being carried out in
                      accordance with the manual;

                      accounting records are adequate and
                      will be made available for audits;

                      if not previously approved,  the
                      grantee is completing  a user charge
                      system, an industrial  cost recovery
                      system, a sewer use ordinance or
                      service agreements;

                      industrial dischargers are pretreating
                      wastes as required.
               Re:  40 CFR 35.935-8, -11, -14
     3.   Payment Conditions


               Discussion:
               Grant payments are discussed more completely in
Chapter VII of this Handbook.  Generally, however,  Step 3 grant payments
are made in accordance with the payment schedule included in the grant
agreement.  The grantee is responsible for submitting a payment request
(EPA Form 2550-16) and supporting documentation.  When it is received,
EPA will review it and authorize payment as appropriate.
                                 VI-26

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               The grantee is also responsible for meeting particular
conditions before he may receive full payment.  These have been
mentioned in earlier parts of the Handbook but are summarized below
for the reviewers convenient reference.
                    Operation and Maintenance Manual - No more
                    than 50% of the Federal share may be paid
                    until a draft O&M manual is submitted, and
                    no more than 90% may be paid until the
                    manual is approved by the Regional
                    Administrator.
               Re:  40 CFR 35.935-12
               b.   User Charge System - No more than 50% of
                    the Federal share may be paid until the
                    grantee has submitted adequate evidence
                    of the timely development of a user
                    charge system, and no more than 80% may
                    be paid until the system is approved by
                    the Regional Administrator.
               Re:  40 CFR 35.935-13
               c.   Industrial Cost Recovery System - No more
                    than 50% of the Federal share may be paid
                    until evidence of timely development of
                    an industrial cost recovery system has
                    been submitted by the grantee, and no more
                    than 80% may be paid until the system is
                    approved.
               Re:  40 CFR 35.935-13
                    Sewer Use Ordinance - No more than 80% of
                    the Federal share may be paid until the
                    sewer use ordinance(s) has been submitted
                    by the grantee and approved by the
                    Regional Administrator.
               Re:  40 CFR 35.935-16
                                 VI-27

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               e.    Rehabilitation Program - No more than 80%
                    of the Federal share may be paid until  the
                    grantee has given evidence of complying
                    with a sewer system rehabilitation schedule,
                    where appropriate, as incorporated in the
                    grant agreement.
               Re:  40 CFR 35.935-16
                    Final  Inspection - Final  payment may not
                    be made until  the final  inspection has
                    been completed and the Regional  Administrator
                    has determined that the  treatment works have
                    been satisfactorily constructed  in accordance
                    with the grant agreement and approved plans
                    and specifications
               Re:  40 CFR 35.935-14
     4.   User Charge System


               Purpose:
               The user charge system requires that users of a
treatment works will pay their proportional  share of operation and
maintenance (including replacement) costs.
               Discussion:
               In the Step 2 application, the applicant must have
developed an approvable plan and schedule for the implementation
of a user charge system.  During the Step 3 grant activity, the
applicant must show evidence of carrying out the implementation
plan in accordance with that schedule.
                                 VI-28

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               The system must fulfill  the objective of distributing
the costs of O&M among all users in proportion to their waste load
contributions.  Factors to be included  in the calculation of charges
are the volume, flow rate and strength  of the wastes of all  users.
Each user, or class of users, must be charged on an equitable basis
to fairly apportion the O&M costs.  An  effective user charge system
will bring about operational self-sufficiency.

               Where more than one political  jurisdiction is included
in the project service area, the user charge  system must be  legally
adopted by each jurisdiction.  In the first year of operation, the
user charges may be based upon past experience or reasonable estimates,
However, each year thereafter, the applicant  is to review the user
charges and initiate revisions, as necessary, to reflect actual
operation and maintenance costs of the  treatment works and actual
waste load contributions from each user or class of users.

               No more than 50% of the  Federal share of a Step 3
grant may be paid until the grantee has submitted to the Regional
Administrator adequate evidence of timely development of its user
charge system.  No more than 80% of the Step  3 grant may be  paid until
the user charge system is approved by the Regional Administrator.
               Review Procedures:
               The user charge system submission must be reviewed
to insure compliance with the following criteria:
               a.    the program apportions fairly the
                    O&M costs among all  users according
                    to waste load or flow characteristics.
                    A system such as one based upon ad
                    valorem taxes (dependent upon taxable
                    property ownership)  is not acceptable
                    because it does not  adequately consider
                    waste characteristics.   Appendix B of
                    40 CFR Part 35 includes acceptable
                    user charge system models;
                                 VI-29

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            b.  the implementation of the program will
                provide sufficient revenues to offset
                all actual O&M costs;

            c.  the system will be adopted, implemented
                and enforced by all political  jurisdictions
                within the service area of the treatment
                works.  Resolutions, local ordinances,
                written statements or other agreements may
                be accepted as evidence of compliance by
                the political jurisdiction involved.

             Upon review and approval of the user charge system, the grantee
is to be notified in writing of such approval  and requested to submit a
certified statement of compliance once the system has been officially
imp1emented.   (The letter of approval must clearly indicate that EPA
approval is solely for the user charge system or that portion of the
system which pertains to revenues for the operation and maintenance
(including replacement) of the treatment works.)  Payment requests are
to be processed as appropriate.

  Re:  40 CFR 35.905-26, .925-11, .935-13, Appendix B
       Program Requirements Memorandum, PRM 75-19 (PG-37)
       7/9/74; PRM 75-20 (PG-38), 7/16/74 and PRM 75-37
       (PG-65), 3/17/76

     5•   Industrial Cost Recovery System

              Purpose:

              The industrial cost recovery system imposed by PL 92-500,
provides a means whereby industrial users of a publicly-owned treatment
works repay the proportionate Federal share of the construction costs of
the treatment works allocated to their use.
              Discussion:

              The industrial cost recovery (ICR) system provides a system
by which all industrial users of the treatment works will repay, over a
defined period, their portion of the Federal  share of construction costs
of the works.  These costs are to be recovered by the grantee over the
useful life of the treatment works but not to exceed 30 years.  The grantee
is obligated to collect these payments no less often than annually
                                                            Revised:  TM 78-1
                                                            December 1977
                                 VI-30

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and to refund 50% of the total  amount (plus any interest accrued)
to the U.S. Treasury annually.   Of the remaining half of the recovered
funds, 80% (40% of the total) is to be used by the applicant, subject
to the Regional Administrator's approval, for the eligible costs of
expansion or reconstruction of facilities associated with the project.
And 20% (10% of the total) can be used for any purpose except
construction of industrial pretreatment facilities or rebates to
contributing industries.  The system is applicable only to the Federal
share of construction costs.   No Federal requirement exists for
recovery of the State or local  share of costs for treatment of
industrial wastes (although State or local laws may be so enacted).
The Federal share of the cost of construction includes the Steps 1,
2 and 3 grants except the costs associated with I/I analysis and the
cost associated with sewer rehabilitation and nonexcessive I/I if
they are not attributable to industrial users.

               ICR assessments are in proportion to the industrial
user's wastewater characteristics.  The wastewater characteristics
may include strength, volume, delivery flow rate, and shall be
monitored according to the schedule included in the approved ICR
system.  The grantee reviews the ICR system annually and adjusts ICR
payments based on the monitored characteristics.  If an industrial
user discontinues use of the treatment works, its ICR payment will
cease.

               (NOTE:  Certain industrial users may be excluded
from ICR payments.  Those are small "dry industries" and, in the
case of a plant expansion, those industrial users which have
reserved and paid for capacity in the existing plant prior to
March 1, 1973 (See ICR Guidelines).
               Review Procedures:
               The reviewer shall  determine that the grantee has met
the following requirements in each milestone point in relation to
grant activity to develop its ICR  system:
               a.  In the application of Step 2 or Step 3
                   grants:

                   - an assurance from applicant that he
                     agrees to require industrial  users
                     to pay that portion of the grant
                     amount allocable to the treatment
                     of wastes from such users.
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     -  signed letters to the applicant
        from each significant industrial
        users indicating intent to pay its
        portion of the grant amount
        allocable to the treatment of its
        wastes and the period of intended
        use of the treatment works.
b.   At the 50% level  of the Step 3 grant payment:

     -  the identity of grantee personnel,
        consultants, grantees legal
        counsel, or certified public
        accountants employed or retained
        by the grantee to develop the ICR
        system;

     -  a detailed schedule for completion
        of all significant portions of the
        ICR system (e.g., ordinances,
        identification of industrial users,
        etc.)

     -  other evidence to demonstrate that
        the grantee has made timely progress
        in development of an approved ICR
        system.
c.   At the 80% level  of the Step 3 grant payment:

     -  a complete questionnaire, in the
        form shown in  Appendix A of ICR
        Guidelines, which describes the
        pertinent features of the ICR
        system;

     -  a resolution or written agreement
        by the grantee that it will properly
        and lawfully implement all  the
        provisions of its ICR system;
NOTE:  See ICR Guidelines for procedures on segmented
       and multiple facility projects.
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                    -  an opinion of the grantee's legal
                       counsel, in the form shown in
                       Appendix B of ICR Guidelines that
                       the grantee's ICR system meets
                       the requirements of Section 204 (b)
                       of the statute, applicable EPA
                       regulations and ICR Guidelines.
               d.   At the completion of project or the date of
beneficial use by the first industrial users:

                    -  within 30 days, a notification
                       in writing from the grantee to
                       the Regional Administrator of
                       the date of the implementation
                       of the approved ICR system.

                    -  proper bookkeeping of financial
                       records and information relative
                       to the ICR system for EPA audit
                       for the duration of the cost
                       recovery period.
               Re_:  40 CFR 35.905-6, 7, 8, .925-12, .928, .935-13
                    ICR Guidelines
     6.   Operation and Maintenance Program


               Purpose:
               Federally funded treatment works are to be designed,
operated and maintained to achieve the effluent limitations required in
the NPDES permit.  A well  planned operation and maintenance program is
an essential step in achieving that objective.
                                 VI-33

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               Discussion:
               Surveys conducted in 1973,  1974,  and 1975,  which are
included in the Clean Water Report to Congress for each of those years,
indicate that approximately one-third of the Federally-funded  treatment
plants surveyed were not achieving the level  of efficiency for which
they were designed.   In most cases, these problems resulted from
inadequate operation and maintenance.  To prevent the future occurrence
of these unacceptable conditions, strict attention is to be focused on
operational considerations during facility design and the development
of an effective operation and maintenance program for the completed
treatment facilities.

               During the Step 3 activity, the grantee is to implement
a program for efficient staffing, training of staff, and operation
and maintenance of all treatment works facilities.  The program must
insure that the facilities are maintained at the designed level of
efficiency to meet the effluent standards as established in the NPDES
permit, and to comply with all other applicable State and Federal
requirements for process control, monitoring and reporting. The
grantee must provide an adequate budget and a trained staff of personnel
to insure the success of the program.  The elements of the O&M program
should be those included in a Plan of Operation which also identifies
required actions and related implementation dates needed to assure
proper start-up and continued operation.

               A preliminary Plan of Operation should be reviewed
concurrent with the review of project plans and specifications and should
be included as a part of the Step 3 grant application package.  The
preliminary plan should be as complete as possible in identifying needed
actions and implementation time frames, but specific dates may, of
necessity, be omitted until a construction start date is known.

               A critical responsibility of the applicant is the
preparation of an operation and maintenance manual for each treatment
facility, including pumping stations.  No more than 50% of the Federal
share of the Step 3 grant may be paid until the draft operation and
maintenance manual is submitted and no more than 90% of the grant may
be paid unless the grantee has furnished a satisfactory final  operation
and maintenance manual.
                                 VI-34

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               Review Procedures:
               The review of the operation and maintenance program
submissions included in the Plan of Operation shall  assure compliance
with the following requirements:
               a.   Staffing and training

                    -  that a staffing plan, to include
                       staffing and salary schedules,
                       staff structure and organization,
                       and certification requirements is
                       developed;*

                    -  that the chief operator is hired
                       before construction is 50% complete;

                    -  that a preoperation training
                       schedule is developed within 30
                       days after hiring chief operator;

                    -  that a discussion of hiring problems
                       encountered and actions to solve
                       the problems, if appropriate, is
                       held 60 days prior to start-up;

                    -  that a list of positions filled
                       and qualifications of personnel
                       hired is prepared 30 days prior
                       to start-up* and assurance is
                       given that vacancies will be
                       filled, if appropriate;

                    -  that a continuous training plan
                       and schedule* is developed 30 days
                       prior to start-up;

               * To be submitted to both State and EPA.
               b.   Administrative functions

                    -  that program and laboratory facilities
                       are adequate to perform appropriate
                       monitoring and analysis necessary to
                       assure adequate process control  and
                       compliance with the NPDES permit
                       and State requirements;
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        that arrangements for submission
        of appropriate operational  reports
        to the State have been made;

        adequate consideration has  been given
        to operational procedures during the
        start-up period;

        provision is made for employee safety
        programs and training is conducted
        in advance of plant start-up;

        provision is made for developing and
        implementing a maintenance  management
        system;
     Budget

     -  provision is made for adequate annual
        budget to insure efficient operation
        and maintenance, including administra-
        tion, supplies, utility charges, and
        ancillary equipment;

     -  provision is made for salaries to
        attract qualified personnel  and to
        train and upgrade employees;
d.   Emergency operating plan - in developing
     the plan the following items and provisions
     should be taken into account:

     -  effects of emergencies on operation;

     -  vulnerability analysis of system;

     -  protective measures;

     -  emergency response program;

     -  periodic revision of plan as necessary;
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e.   Operation and maintenance manual  - the O&M
     manual is the primary document required in
     the operation and maintenance program, and
     should incorporate items a-d above into a
     comprehensive package of instructions and
     information.   Specifically, the manual
     should include:

     -  design information describing the
        components and equipment of the
        treatment  plant, including simplified
        schematic  diagrams of the facilities,
        pipelines  and control systems and
        detailed diagrams of more complicated
        area s;

     -  process information discussing the
        control of various processes to achieve
        maximum efficiency, including a clear
        explanation of process functions of
        the various components in simplified
        language with references to appropriate
        equipment  manuals for detailed technical
        information;

     -  maintenance requirements, including
        schedules  for routine adjustment and
        lubrication of equipment, referencing
        appropriate manufacturer's manuals for
        details;

     -  laboratory procedures, specifying
        various analyses and monitoring
        schedules  required for process control
        and by the NPDES permit and other
        regulations,  describing laboratory
        equipment  and general maintenance, and
        referencing appropriate literature for
        standard test procedures;

     -  safety aspects of the various  process
        units and  related equipment and
        procedures for complying with  the OSHA
        requirements;
                  VI-37

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                                                             *
        administrative procedures describing
        the various records required and
        reports to be submitted as a function
        of the State monitoring program;

        troubleshooting procedures and a
        description of the emergency response
        plan, including procedures for
        notification of proper authorities,
        emergency equipment repair, and
        references to the appropriate
        equipment manuals for specifications
        and limitations of components.
Re:  40 CFR 35.925-10, .935-12
     Federal Guidelines, Operation and Maintenance
       of Wastewater Treatment Facilities, August 1974
     Considerations for Preparation of Operation and
       Maintenance Manuals, (GPO No. EP 2.8: OP 2)
     Emergency Planning for Municipal  Wastewater
       Treatment Facilities (GPO No. EP 2.8: W 28/6)
     Estimating Laboratory Needs for Municipal
       Wastewater Treatment Facilities (GPO No. EP 2.2:
       W 28/3)
     Start-up of Municipal Wastewater Treatment
       Facilities (GPO No. EP 2.8: W 28/5)
     Maintenance Management Systems for Municipal
       Wastewater Facilities (GPO No.  EP 2.8: W 28/4)
     Estimating Staffing for Municipal Wastewater
       Treatment Facilities (GPO No. EP 2.8: W 28/3)
     A Planned Maintenance Management System for
       Municipal Wastewater Treatment Plants
       (GPO No. EP 1.23/2: 600/2-73-004).
     Program Requirements Memorandum,  PPM 77-l3 11/29/76
                  VI-38

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               CHAPTER VII
        FINANCIAL CONSIDERATIONS

A.   Introduction
B.   Allowable and Unallowable Costs
C.   Force Account
D.   Payments
E.   Increases and Decreases
F.   Audits

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     2.  Allowability Determinations

         Paragraph 3 below lists miscellaneous cost items on which
determinations of allowability/unallowability have been made.  Since
no single document can cover every situation that may arise, cost items
not discussed below should be considered on an individual basis.  As
needed, the reviewer may seek advice from the Construction Operations
Branch, Municipal Construction Division.

         The oost -items listed below are ocppliQable to both PL 84-660
and PL 92-500 projeats.   In making eligibility determinationst consider-
ation should be given to commitments previously made to grantees in the
absenoe of prior National policy* pertinent statutes or regulations.

         Final determinations by the Regional Administrator concerning
the allowability of costs are conclusive unless appealed within thirty
days in accordance with the "Disputes" article (Article 7) of the EPA
General Grant Conditions.  See 40 CFR 35.940.

     3.  Allowability/Eligibility of Miscellaneous Costs

         The following statements of allowability/eligibility relating
to certain construction grants project costs are included for the
reviewers ready reference:

         - Indirect Costs:

           Indirect costs are those incurred for a common or
         joint purpose,  benefiting more than one project or
         cost objective and not specifically identifiable to
         the particular project or cost objective benefited.
         Indirect costs consist of items of a general  overhead
         nature such as office space, utilities, telephone, etc.
         The costs are allowable only if determined on the basis
         of a negotiated indirect cost agreement and incorporated
         in the grant agreement.  See 40 CFR 30.715-2.

         - Travel Costs:

           Grantee travel costs - allowable travel costs include
         travel considered necessary and directly related to the
         accomplishment of project objectives.  Travel not directly
         related to construction and/or "start up" of the facility,
         including trips to professional meetings, symposia, lectures,
         etc., is not allowable as a direct charge to the project.
         Travel not directly related to a specific project may,
         however, be recovered under an Indirect Cost agreement.
         (Federal Management Circular (FMC) 74-4, 7-18-74).
                                                      Revised:  TM 76-1
                                VII-3                 August 1976

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   Architect/Engineer travel  costs - allowable
travel costs include travel considered necessary
and project related, including on-site travel
costs.  Costs of relocation of employees and
their families may be considered allowable when
such travel is justified and  approved by the
grantee.  The cost of transportation between
living quarters and the construction site is
normally unallowable.  In unusual circumstances,
where job sites are located in isolated areas
and living quarters are not available within
30 miles, travel costs between living quarters
and the job site are considered allowable.
(41 CFR 1-15.2 and 41 CFR 1-15.4)
-  Bond Costs:

   All costs under PL 92-500 Grants associated
with the approval, preparation, issuance and
sale of bonds (including bond counsel  and
underwriters' fees) are ineligible for grant
participation.  Interest on bonds or any other
form of indebtedness is unallowable.  (FMC 74-4,
7-18-74)
-  Liquidated Damages:

   Monies received by grantees in the form of
liquidated damages shall have n£ effect on the
determination of allowable costs of grant projects.
However, any additional  costs - construction,
engineering, legal, or administrative-generated
because of a contractor's lack of performance
should be covered by the liquidated damages received.
Thus, any such increase in cost as a result of lack
of performance is unallowable for participation
even in the event that the grantee elects not to
exercise his right to recover liquidated damages.
-  Bid Bond Forfeiture:

   All bid bond forfeitures should be treated as a
reduction to project construction costs.
                         VII-4

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    (In order to avoid double payment, care must be
exercised to assure that such work is not incident
to  a general contractual obligation).
-  Redesign/Replanning Costs Resulting from Changes
   in Federal Requirements:

   In those cases in which an applicant's completed
or partially completed planning and/or designs are
rendered invalid or unacceptable by changes in
Federal requirements, both the original cost plus
the redesign or replanning costs are allowable.
The Regional Office must assure itself that the
planning and/or design thus invalidated was under-
taken in good faith by the applicant and was not
the result of a disregard for existing Federal
directives by either the applicant or his agent.
-  Costs of Implementing the Uniform Relocation
   Assistance and Real Property Acquisition Policies
   Act of 1970  (PL 91-646):

   Basically there are four categories of costs
associated with this Act which may be considered
allowable:

   1.  Moving and related expenses

   2.  Replacement housing

   3.  Relocation assistance advisory services
       (entailing direct services of the grantee
       in assisting the displaced person(s)).

   4.  Acquisition of real property.
Documented allowable costs from these categories
incurred on or after July 1, 1972, will be treated
as other allowable project costs and reimbursed at
the same percentage rate.  In the case of costs
resulting from acquisition or displacement occurring
before July 1, 1972, EPA shall pay the full amount
of the first $25,000 of such costs for each displaced
person.  Allowable costs should be determined in
accordance with 40 CFR Part 4 and guidelines which
will be issued pursuant thereto.
                         VII-7

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-  Field Surveys to Identify Cultural Resources:

   Reasonable costs incident to field surveys to
identify historical, architectural, archaeological
and cultural resources in the primary impact area
of grant projects are allowable.  Allowable costs
must be determined on a case-by-case basis and may
include the cost of on-site inspections, review of
pertinent documents, photographic reconnaissance,
services of archaeologists or historians, etc.

   Such costs should receive prior approval and
delineation by the EPA Regional Office.  Survey
costs associated solely with the examination of
the National Register of Historic Places are
unallowable.  EPA may participate in the cost of
intensive surveys (e.g. "digging") only when a
sufficient amount of information exists to
indicate that there is a reasonably high
probability of discovering important cultural
resources.

   See Program Guidance Memorandum #52 (7-2-75)
for additional guidance on this subject.
-  Industrial Planning:

   Step 1 related costs of industrial planning
conducted and paid for by an industry whose wastes
will be treated in a municipal system are not
allowable.   (See Section 35.925-15 of the Title
Regulations).
-  Facilities Serving Communities and Federal Facilities:

   Whenever a planned treatment works will jointly
serve a municipality and a Federal facility, that
portion of the construction cost allocable to the
Federal facility will not be allowable for 75 percent
construction grant funding, subject to the following
exceptions:

   1.  Facility planning costs.

   2.  Cost of Step 2 work if a Step 2 grant has
       been certified by the State for funding to
       EPA prior to the issuance of PG-62 (12-29-75).
                         VII-8

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       Design and construction costs allocable
       to Federal facilities producing less
       than 250,000 gpd or 5 percent of the
       total design flow of waste treatment
       works, whichever is less.
   That portion of the construction costs allocable
to the Federal facility shall be based on all factors
which significantly influence the cost of the treat-
ment works.  Factors such as strength, volume, and
delivery flow rate characteristics will be considered
and included to insure a proportional allocation of
costs to the Federal facility.

   As a minimum, the portion of construction cost
allocable to the Federal facility should be based
on the ratio of its flow to the total design flow
of the treatment works.  The portion (percentage)
allocable to the Federal facility must be agreed
upon by the municipality and Federal agency, and
approved by EPA prior to award of a Step 2 or Step
3 grant, whichever is applicable, for the works or
any portion thereof.  See PPM 75-35 (PG-62) -
12/29/75 for additional details.
- Site Acquisition vs. Site Preparation Costs:

  All costs associated either directly or indirectly
with the acquisition of any land used for or incidental
to the construction of treatment plants, lagoons, force
mains, gravity sewers, outfall lines, appurtenant piping
and structures, and pumping stations whether by purchase,
rental, lease or easement (except as noted above) are
ineligible.  Similarly, all legal, realty, engineering,
and grantee costs associated with such ineligible
acquisition are unallowable as are the costs of easements,
rights-of-way, nonconstruction related surveying, plat
preparation, meetings, etc.   NOTE:  The cost of land
(inoluding, in some oases, leasing or> easements - PPM 77-5,
12/15/76) used as an integral part of the treatment process,
such as spray irrigation sites - see PRM 75-25 (PG-49) -
7/18/75, or land for the ultimate disposal of residues from
waste water treatment - see PPM 75-S9 (PG-67), 4/2/76, may be
eligible if approved and in accordance with pertinent
regulationss guidelines and PRMs.  Legal, administrative and
engineering costs associated with the acquisition of grant
eligible land are allowable for grant participation.
                                              Revised:  TM 77-1
                                              December 1976
                     VII-9

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     Costs associated with the preparation of
the treatment works site (including appurtenant
features) before, during, and to the extent agreed
upon in the grant agreement or amendment thereto,
after construction are generally eligible.  These
costs include such items as:  grade and construc-
tion staking surveys, surveying for alignment and
slope, preparation of working drawings and plans
dealing with site preparation, locations, grades,
slopes, distances, depths, alignments, etc.   Also
eligible are costs such as finegrading, seeding,
and protective trees and shrubs.

     Costs related to reasonable site screening or
aesthetic purposes are also allowable.  Criteria
for participating in aesthetics related work
include:  Support expressed in NEPA related studies,
approved facility plans, necessary screening of
adjacent properties, whether the facility is in
constant public view or remote therefrom, etc.
-  Certificate as to Title to Project Site:

    Legal costs associated with certifying as to the
adequacy of the grantee's interest in the project
site should be considered a normal function  of
government incident to the project and as such are
unallowable.  (Except in the case of grant eligible
land (see above).
-  Acquisition of Privately or Publicly Constructed
   Waste Treatment Facilities:

    Costs incurred by a grantee or applicant associated
with the purchase, lease or acquisition of privately
or publicly constructed and owned waste treatment
facilities are not allowable.
-  Demolition of Existing Structures:

    Demolition of existing structures constitutes an
allowable cost provided that the structures are on the
facility site (including rights-of-way for the eligible
sewer lines) and that construction cannot be undertaken
                         VII-10

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without such demolition.  Off site demolition
is unallowable.  Aesthetics related demolition
is allowable only if it conforms to the criteria
relating to the allowability of site preparation
outlined above.

   If demolition of existing structures is
required on a site not previously owned by the
grantee, the grantee must address such demolition
in the cost effective analysis and demonstrate to
the satisfaction of the Regional Office that in
choosing the site appropriate consideration was
given to the cost of demolition.
-  Removal, Relocation and/or. Replacement of
   Utilities:

   Costs associated with the removal, relocation
and/or replacement of utilities (water, electricity,
etc.) are allowable when such activity is incident
to and necessary for the construction of the eligible
facility.  However, participation in the cost of
replacing existing utilities with utilities having
a greater capacity than that originally in place can
only be allowed if mandated by local, State or
Federal codes, ordinances or statutes.  If a mandate
for greater capacity does not exist any additional
cost must be borne by the grantee.

   The provision of new or increased utility service
when required for the facility (e.g. construction of
a new facility or increased capacity) being constructed
is an allowable cost provided that  the grantee (utility
customer) would ordinarily be required to pay for such
installation.
                    VII-11

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-  Restoration of Streets and Rights-of-Hay:

   The cost of restoring streets and/or rights-
of-way to their original condition is an allowable
cost.  The need for such restoration must result
directly from the construction of the eligible
project.  Allowable restoration may include,  for
example: refilling and patching of street and road-
way surfaces (generally limited to the width  of the
trench), fine grading and reseeding of off-street
rights-of-way, reasonable tree plantings, restoration
of sidewalks, etc.
-  Mobile Equipment:

   Generally, such equipment is allowable if identified
by the grantee and approved in advance of purchase by
the Regional Office and is directly necessary for the
operation and/or maintenance of the overall  wastewater
treatment facility.  Such equipment must be  necessary
for the transmission of wastewater or sludge or for
the maintenance of plant grounds and/or equipment.
Allowable items include but are not limited  to:

   a.  Portable stand-by generators.

   b.  Large portable emergency pumps to
       provide "pump-around" capability in
       the event of pump station failure or
       pipeline breaks.

   c.  Sludge tanks and trailers and other
       necessary transport and handling
       equipment in those cases where the
       location of the ultimate sludge
       disposal site requires such equipment.

   d.  Grounds and building maintenance
       apparatus.  Such apparatus may include,
       for example: mowers and snow removal
       equipment (in certain geographic areas).
       Regional Offices may use such criteria
       as cost effectiveness, potential for
       abuse, frequency of use, etc. in
       considering allowability.  Requests for
       participation based upon less than 100
       percent use, should be agreed to only
       in special situations and prorated accordingly.
                        VII-12

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   Items of routine "programmed" maintenance such as
ordinary piping, air filters, couplings, hose, bolts,
etc. are unallowable.  See EPA Technical Bulletin:
"Design Criteria for Mechanical, Electric and Fluid
System and Component Reliability" for additional
discussion.
-  Collection System Maintenance Equipment:

   EPA participation in the cost of such equipment
purchased in connection with a construction grant
shall be based upon a proration of the portion of
the collection system in which we participate to
the total system.  Thus if EPA participates in 65
percent of the grantee's total collection system,
the allowable costs shall constitute 65 percent
of the cost of such equipment purchased pursuant
to the grant agreement.  Generally, the proration
should be based upon the relative lengths of the
new to the total system rather than cost or size.
Such equipment must be reasonable and be approved
by the Regional Office.

   In addition allowability will be based upon:
(1) a demonstrable frequency of need, and (2)
the equipment must be necessary to preclude the
discharge or by-passing of raw sewage, and/or
(3) the equipment is necessary to provide for
the health, safety and welfare of the citizens.
-  Project Inspection:

   Costs associated with technical inspections of the
eligible project before and during construction
(including change order approved time extensions) are
allowable.  Such costs must be clearly documented and,
to avoid double payment, the work must not be incident
to a general contractual obligation.
-  Groundwater Monitoring Facilities:

   Costs associated with the construction of ground-
water monitoring equipment and facilities may be
considered allowable only in those cases in which,
as a direct result of project construction, the
possibility of groundwater deterioration, depletion
or modification exists.   Allowability may not be
extended to the operation, surveillance and/or
analyses associated with these facilities.
                         VII-15

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   Such facilities require the prior approval  of
the Regional Office.
-  Biological "Seeding":

   Under certain conditions (climatic, geographic,
nature of wastes, etc.) reasonable costs associated
with the purchase and/or transportation of biological
seeding materials required for initiating (or
expiditing the initiation of) the treatment process
operation are allowable.
-  Services Charges: §/

   Service charges are defined as:  any supplemental
charges added to other direct cost (non-salary) which
are claimed on an actual cost basis.

   Regardless of contract terms, the actual cost of
service charges must be supported by accounting records.
If the service charges are not supported or if the
actual cost is less than the amount claimed, the total
difference is unallowable for Federal participation.
This is in accordance with the ASCE manual which states
that the service charge is for expenses to be reimbursed
by the client.
-  Fringe Benefits: <*/

   Regardless of contract terms, the actual cost of
fringe benefits must be supported by accounting records
when they are claimed as a direct charge.  If the
charges are not supported or if the actual cost is less
than the amount claimed, the total or the difference is
unallowable for Federal participation.  Where the fringe
benefits are claimed as a direct charge and also included
in the multiplier the duplicate direct charge is
unallowable for Federal participation.
                         VII-16

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-  Labor Charges and Related Costs: 
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   4.  Maintenance management system—-i.e., start-up
       services to assure effective implementation
       of the maintenance management system outlined
       in the facility's O&M manual.

   5.  Records management systems—i.e.t services
       to provide the training needed to implement
       a records management system as outlined in
       tine O&M manual.

   6.  Revise O&M manual—-i.e.3 revising the O&M
       manual based upon actual operating experience
       obtained during the start-up period.
   Note that costs normally associated with the operation and
maintenance of a municipal wastewater treatment facility3 such
as salaries for operation and maintenance personnel, chemicals
(except for the basic inventory required for start-up)3 power,
etc., are not eligible.  Also ineligible are the costs of all
off-site formal training/orientation programs.  Finally, wet
and dry equipment and facility testing is the responsibility
of the contractor under the supervision of the Engineer.

(See PEM 77-2, 11/29/76)
                                            Revised:  TM  77-1
                                            December  1976
                         VII-18

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(Blank page for inclusion of additional  cost
items -- the allowability/unallowability of
which will be determined at a later date.)
                      VII-19

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(Blank page for inclusion of additional  cost
items -- the allowability/unallowability of
which will be determined at a later date.)
                    VII-20

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(Blank page for inclusion of additional  cost
items -- the allowability/unallowability of
which will be determined at a later date.)
                     VII-21

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(Blank page for inclusion of additional  cost
items -- the allowability/unallowability of
which will be determined at a later date.)
                     VII-22

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C.   FORCE ACCOUNT
     1.   General
          In most instances a grantee contracts with engineering or
construction firms to perform project related work.  The program,
however, permits use of the "force account" method wherein the
grantees use their own employees, material, and equipment to perform
all or part of the project work.

          The use of force account is permitted for any Step 1, 2
or 3 grant work provided that prior written approval is obtained from
the Regional Administrator.  Such approval is based on the grantee's
demonstrating that:
          a.  he possesses the necessary competence
              required to accomplish such work;
          b.  the work can be accomplished more
              economically by use of such method;
          c.  emergency circumstances dictate its use.
          In order to avoid problems with the force account method
and to assist grantees who will be using force account, the reviewer
must be familiar with those items needing prior approval.   The
reviewer must determine in advance that adequate procedures, records,
and controls will be used by the grantee.
                                  VII-23

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     2.   EPA Prior Approvals
          A grantee must obtain prior written approval  from EPA to
use force account labor in lieu of subagreements for any Step 1  or
Step 2 work in excess of $10,000.00 or any Step 3 work  in excess of
$25,000.00

          The following items should be considered by the reviewer
in considering approval of force account:
          a.  all anticipated project administrative costs,
              including salaries of administrative employees,
              travel expenses, etc., in order to determine the
              extent of their allowability;
          b.  proposed methods of timekeeping and timechecking,
              methods for establishment of wage scales for
              laborers and mechanics and methods for establish-
              ment of salaries of supervisory employees (sample
              time sheets, proposed wage rates and an explanation
              of the methods for determining those rates and
              other information necessary to comply with this
              item should be submitted as soon as possible);
          c.  an indirect cost figure that is going to be used
              as part of the costs billed to the project (this
              must be a formal written agreement with EPA);
          d.  allowances for use, repair and overhaul  of grantee
              owned equipment and rental rates for rental
              equipment, including when rental rates begin,
              apply and end, and the extent of allowability of
              repairs and overhaul (precise usage records for
              such equipment must be maintained);
          e.  the writeoff or depreciation of small tools and
              other expendable items or equipment;
          f.  any disposal and adjustment of costs in connection
              with unused material and tools left over on completion
              of the work.
                                  VII-24

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     3.   Other Considerations
          The following considerations provide additional  guide-
lines for the reviewer in the force account area:
          a.  adequate cost accounting records must be
              maintained;
              satisfactory controls must be established
              and used to assure that all  material, supplies,
              equipment, labor cost, etc.  charged to the
              project are actually used in connection with
              the project;
          c.  the Copeland Antikickback Regulations apply
              (see Appendix C-2 of 40 CFR part 35);
          d.  adequate insurance must be maintained.   This
              insurance is the same as that discussed in
              40 CFR 35.935-3 covering such construction
              insurance as is customary and appropriate
              including fire and extended coverage,  workmen's
              compensation, public liability and property
              damage and "all risk" as required by local or
              State law.
     Re_:  40 CFR 30.645, .810
          40 CFR 35.935-2(a), .936-14
          Program Guidance Memorandum, PG-34 5/7/74
D.   PAYMENTS
     1.    General
          It is the policy of EPA to process  payment requests  and
to make periodic progress payments as expeditiously as  possible.
Payments are to be made in accordance with the  approved payment  schedule
set forth in the grant agreement.
                                 VII-25

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     NOTE:  It is imperative that grantee payment requests be processed
     as quickly as possible.  On "routine" requests,  procedures assuring
     a 48 hour "turn around" are to be established.   All payment requests^
     are to be considered "routine" except for the first and final
     payments on Step 1, 2 & 3 awards; the 50%, 80% & 90% payments on
     Step 3 awards; and specific interim payment points established,  in
     writing, for a particular project.

     R^:  40 CFR 35.937-16, .938-6, .945
          Program Requirements Memorandum. PRM 75-22  (PG-43) 11/18/74
     2.   Prior Costs

          After June 30, 1975, no Step 1 project work may be initiated
without a grant award unless the State (based on the review and approval
of a plan of study) has requested the Regional  Administrator to reserve
grant funds.  After June 30, 1975, Step 2 work initiated without first
having received a grant from EPA is not eligible for grant participation.

          Occassionally grant applications will be received for projects
in which prior costs have been incurred.  These must be handled on a
project by project basis and be in accordance with the regulatory date
limitations as described in 40 CFR 35.925-18.

          In considering prior costs the reviewer should bear in mind
that:

          -  those costs incurred prior to the initiation
             of construction of the project must be claimed
             prior to the grant award or no payment may be
             made for those costs;

          -  they should be supported by documents identifying
             dates and the nature of the work performed;

          -  they should be examined in light of the allowable/
             unallowable cost statements in "Section B" of this
             chapter.

     Re:  40 CFR 35.945(a)
                                                            Revised:  TM 78-1
                                                            December  1977
                                 VII-26

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     3.   Schedules
          Schedules for the completion of any of the three grants
steps are contained in the grant agreement/amendment.  The work
schedule is generally discussed with the applicant prior to the
grant application and should reflect realistic targets.  However,
the reviewer has the responsibility for final approval  of the
schedule, including payments.   Once the grant payment schedule has
been approved and incorporated into the grant agreement/amendment,
the grantee may request grant payment for work which has bee*n
completed.  If completed work and the resulting payment requests
occur prior to dates set forth in the approved schedule, the
schedule may be revised by preparing a new grant agreement/amendment.
Considerable flexibility may be exercised in setting up the
schedules and the documentation required.

          Any time that a progress schedule is revised, the Municipal
Permits Office of EPA should be notified.
          a.   Step 1 and Step 2 - Periodic progress payments
              for Step 1 and 2 work are to be made on the
              basis of completion of the step or completion
              of specific tasks within the step grant as
              contained in the grant agreement.  Every
              effort should be made to divide the scheduling
              into tasks, but where this is not possible or
              practical, the grantee should submit a
              certified statement as to percentage of
              completion of the work on a periodic basis.
          b.   Step 3 - Step 3 payment schedules should
              realistically reflect the likely construction
              progress.  For example, early equipment
              purchases and seasonal weather conditions
              may require large grant payments for certain
              months.  If the monthly requests exceed those
              on the schedule, the grant must be amended.
              Payment schedules should be structured so as
              to preclude any need for frequent changes.
                                  VII-27

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     4.  Interim Payments

         Problems with both payment requests and payments can be minimized
if, at the time of the grant award, the payment request procedure is
discussed with the grantee.  Each region has specific internal  procedures
for handling requests and processing payments so the reviewer must be
familiar with these.   Payments, generally, are handled as follows:

     -  the grantee submits all EPA Forms 2550-16 (Outlay
        Report and Request for Reimbursement for Construction
        Programs) directly to the Regional Financial Management
        Office;

        the grantee provides necessary documentation to support
        the request;

     -  all support documents and a copy of the 2550-16 form are
       _forwarded to the project officer:    .

     -  "routine" requests are processed immediately - "Non-routine"
        requests are sent to the project officer who must complete
        his action within ten days.  (See note on VII-26 for explanation
        of "routine/non-routine" payments).

     -  grantees are to submit requests for Step 3 payments monthly.

     (NOTE:  The Federal  share shall be based upon those costs  which, at
the time of the payment request, the grantee is currently obligated to
pay.  For example, if the grantee has retained a certain percentage from
a construction pay estimate, EPA shall  base  its payment upon the amount
of the estimate less  the retained amount.  PRM 75-22 (PG-43), 11-18-74.
     a.  Payment Requests Review

         It is the responsibility of the construction grants reviewer to
monitor the progress of the project.  One means of doing this is by
periodically reviewing payment requests and supporting documents.  The
frequency of the periodic reviews will depend on the size and complexity
of the particular project.  In instances where a monthly payment schedule
has been established, the reviewer should not perform a detailed check
of the request and supporting documents each month.  If a problem is
discovered later when checking the supporting documents, it can be
resolved on a subsequent payment.  Judgement will be required to avoid
unnecessary delays.
                                                            Revised:  TM 78-1
                                                            December 1977
                                VII-28

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          b.  Documentation
              The following are some examples of task documentation
for Step 1 and 2 projects:
              -  a grantee certified percentage of work
                 complete—preferably divided into tasks
                 (e.g. Step 2: 35% completion of design
                 criteria; 60% completion of preliminary
                 draft P & S; 90% completion of final
                 draft plans);
              -  working drafts completed for specific
                 tasks and which have been received in
                 the Regional Office or are held by the
                 grantee;
              The following are some examples of documentation
for Step 3 projects:
                 the engineer's latest monthly estimate
                 of work in place;
                 invoices accompanying claims for work
                 completed;
                 equipment invoices accompanying claims
                 for purchases.
          c.  Grant Conditions
              The reviewer is reminded to check the grant agreement/
amendment and any subsequent amendments for any special  grant
conditions prior to approving payment requests.   An example of this
would be the limit on the percentage of the Federal  share that may
be paid prior to the submission of O&M manual.   UC/ICR systems, etc.
(Chapter VI, F, 5).
                                  VII-29

-------
     5.   Final Payments
          The final  payment is made to the grantee after the final
inspection is made by EPA, and after the "final  payment request" is
submitted by the grantee and the grantee has been found to have
complied with all applicable requirements of the regulations and the
grant agreement.  Prior to the final payment, 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.  The grantee must also
execute and submit 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 exceptions which may be specified in the release.


          Re:  40 CFR -35.945(e)
     6.   Refunds, Rebates, Credits, etc.
          The Federal share of any refunds, rebates, credits, or
other amounts (including any interest on them) that has accrued to
or been received by the grantee in relation to the project, to the
extent that they are properly allocable to costs for which the grantee
has been paid under a grant, must be credited to the current State
allotment or paid to the United States.  If the Regional Administrator
approves, the grantee may be allowed, reasonable expenses incurred in
securing these refunds, rebates, credits or other amounts under the
grant.


          Re:  40 CFR 35.945(c) and (d)
                                  VII-30

-------
E.   INCREASES AND DECREASES


     1.   Increases
          Grant increases most commonly occur because of cost
overruns occuring after the receipt of bids, cost of major change
orders, or cost of a sewer system survey.  As soon as the grantee
sees that costs are going to be substantially more than that upon
which the grant is based, the grantee must notify the State and EPA
and give an estimate of the amounts involved.  EPA will not increase
a grant until the State has approved an increase from its available
allotment.

          In order to make a determination on the increase, the
reviewer must:
             have a written justification for the increase
             from the grantee;
          -  have an approval letter from the State;
             determine that the increase in cost is
             eligible for grant participation;
             determine that funds for the increased grant
             are available in the State's allotment.
     2.   Increase Notification Procedure
          Upon approval  of an increase in the grant, the following
procedures must be carried out:   (Detailed explanations of each step
can be found in Chapter  IV, F.)
          -  a grant amendment must be prepared (EPA Form
             5700-20);  (if the increase in the grant
             amount is over $10,000, the grant amendment
             is not sent to the grantee until  five  working
             days after signing by the Regional Administrator
             to allow for Congressional  notification);
                                  VII-31

-------
             the grant amendment information must be
             entered into GICS;
             Standard Form 240 must be prepared for
             clearinghouse notification;
             Notification of Grant Award Action,  EPA
             Form 5700-1B, must be prepared and
             transmitted to Headquarters.
     3.   Decreases
          Grant decreases most commonly occur when the bids received
are less than the estimated construction costs contained in the
Step 3 grant application.  In most instances, a request for a decrease
is not made by the grantee, but action is initiated by EPA after the
review of the bid material.  The grant is reduced as necessary but
the new project cost continues a contingency allowance (generally
between three and five percent of construction costs).
     4.   Decrease Notification Procedure
          For a grant decrease, the following procedures must be
f ol1 owed:
             if EPA has initiated the decrease, the State
             is to be notified of the decrease and the
             State allotment is to be adjusted accordingly;
             a revised grant agreement/amendment must be
             prepared (EPA Form 5700-20);
             a revised grant amount must be entered into
             GICS;
                                  VII-32

-------
             Standard Form 240 must be prepared for
             clearinghouse notification;


             Notification of Grant Decrease Action,
             EPA Form 5700-1D, must be completed and
             transmitted to Headquarters.
F.   AUDITS
     1.    General
          By signing the grant agreement/amendment for a Step 1,  2
or 3 project, the grantee agrees that its books, documents,  records,
and papers, and those of its contractors, are accessable to  the EPA
Regional Administrator, the Comptroller General  of the United States,
or their authorized representatives.   The EPA Office of Audit is
responsible for audits of all  Step 1, 2 and 3 grants.   For Step 3
grants, however, it is the general rule that only those projects
having grants over $250,000 will be audited unless there is  some
indication of irregularities.
          Re_:  40 CFR 35.935-7



     2.    Objective


          The objective of audits of construction  grants  projects  is:
          a.   to determine whether the management  controls
              exercised by the grantee through  its manage-
              ment system, accounting  system, procurement
              system,  and property control  system  are  adequate
              to assure that costs claimed/incurred are
              reasonable, allowable, and  allocable to  the
              project  under the grant  terms and  conditions,
              Federal  Management Circulars, and  applicable
              EPA regulations;
                                 VII-33

-------
          b.   to identify any non-compliance with
              applicable grant provisions  or EPA rules
              and regulations and  to  provide recommenda-
              tions for improvement.
     3.    Types of Audits


          There are two types of audits,  interim and  final
              Interim audits are performed during  the
              earlier part of a project to review  internal
              accounting controls,  procurement  systems,
              design and construction controls, and costs
              incurred.
              Final  audits are performed after completion
              of the project to review the grantee's records
              to assure that costs claimed are reasonable,
              allocable, and allowable and that the grantee
              has met the grant objectives.
     4.   Criteria for Choosing Projects
          All Step 1, 2 or 3 projects are not audited.   For Step 3
projects, it is the general  rule that only those with grants over
$250,000 will be audited unless there is some indication of
irregularities.  Also, the intensity of the audit will  vary from
project to project depending on its complexity and the problems
encountered.

          The EPA Office of Audit utilizes relevant reports,
construction grant file information, the results of sampling tests
and the following criteria to select projects for audit:
          a.  size of the grants/projects

          b.  existence of unit-price contracts
                                   VII-34

-------
          c.  type of contracts and subcontracts

          d.  the number and significance of change
              orders

          e.  experience with prior grantee's project
              audits

          f.  identification of deficiencies
          The EPA grant reviewer will  be called upon to supply the
auditors with the following information to assist in determining
the scope, schedule, resource plans and estimates of audit efforts:
          a.  grant number

          b.  grantee name, address and phone

          c.  eligible project cost

          d.  grant amount

          e.  number and dollar value of change orders

          f.  number, amount and type of construction
              and engineering agreements

          g.  extent of force account work

          h.  cut off date

          i.  whether construction is located in a
              flood hazard area requiring the grantee
              to purchase flood insurance

          j.  NPDES Permit.



     5.   Major Activity Areas for Audit Focus
          The major activity areas that are addressed during the
audits include the grantee's accounting, procurement and project
management practices.   Both interim and final  audits will  include
the audit of costs associated with these activities.
                                  VII-35

-------
          a.   Accounting Practices -  the grantee's
              accounting system should include  the
              following:

              1)  accounting records

              2)  supporting documents

              3)  traceability

              4)  segregation of costs (eligible/
                  ineligible; allowable/unallowable;
                  direct/indirect)

              5)  internal  control

              6)  accounting reports.
          b.  Procurement Practices - the grantee is
              responsible for demonstrating that
              engineering and construction contracts
              were awarded in compliance with the
              regulations.
          c.  Project Management Practices - the project
              management approach applied by the grantee
              is significant to his ultimate ability to
              control costs and schedules.
     6.   Final Report
          The final audit report issued by the Office of Audit is an
advisory report only and any action such as recovery of funds is the
responsibility of the Regional  Administrator.

          Once the audit review is completed,  the process of issuing
a final report is flexible, depending on the complexity or seriousness
of any deficiencies noted in relation to the project.  In general, the
following procedures will be followed:
                                VII-36

-------
          a.  the rough draft report will be presented
              to the grantee.  The grantee and its
              subcontractors have two weeks to answer
              any questions raised in the draft;
              the Office of Audit will incorporate the
              grantee's answers into the report and present
              this report to the Regional Construction
              Grants Branch Chief.  The Branch Chief and
              Project Officer will meet with the auditor
              to resolve any issues raised in the report
              in order to reach concurrence;
          c.  an exit interview will be held by the
              auditors with the grantee to discuss the
              findings in the final report;
          d.  the final report will be presented to the
              Regional Construction Grants Branch Chief
              who will recommend necessary action to
              the Regional Administrator.
          The key to this entire process is flexibility because at any
one point the auditor may want to meet with the Project Office to
discuss findings and resolve issues.  The reviewer will generally be
involved in the discussions to resolve issues after the grantee has
responded to the rough draft.  It is the Project Officer's responsibility
to determine whether exceptions and claims in the report are justified.

          The final  report will contain a statement of concurrence
between the Regional Administrator and the Office of Audit.  A final
report may be issued, however, even if both parties do not concur.
There may be circumstances where the Regional Administrator chooses to
withhold comment pending further investigation.  This is usually done
to protect the Agency in cases where future litigation may be involved.
Final resolution rests with the Regional Administrator.


          Re_:  "Audit Guide for Construction Grant Program"
                                  VII-37

-------
               APPENDIX A
FLOW DIAGRAM FOR PROCESSING CONSTRUCTION GRANTS

-------

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                        APPENDIX B
                          (REVISED)
-  Grants Information Control System Coding Sheet  (GICS)

-  Regional Reporting Requirements Through RCGMIS

-  "Notification of Grant-in-Aid Action" (Clearinghouse Form) Standard
   Form 424

-  "Grant Agreement/Amendment" EPA Form 5700-20

-  "Summary of Costs of Planned Treatment Works Scheduled by Project and
   Category"

-  "State Priority Certification" EPA Form 5700-28

-  "Application for Federal Assistance" (for Construction Grants)
   EPA Form 5700-32 (Rev. 6-76)

-  "Cost or Price Summary Format for Subagreements" (Form 5700-41 (2-76)

-  Project Sign  EPA Order No. 1015.IB

-  Revised Cost Estimate (Suggested Format)

-  "Outlay Report and Request for Reimbursement for Construction
   Programs" EPA Form 2550-16

-  " Notification of Grant Award Action" EPA Form 5700-1B

-  "Notification of Grant Award Action" (Decreases/Declinations/Withdrawals)
   EPA Form 5700-1D

-  "Assurance of Compliance for Title VI of the Civil  Rights Act of 1964
   and Section 13 of the FWPCA Amendments of 1972" EPA Form 4700-1

-  "Compliance Report" EPA Form 4700-4

-  "Report on Operation and Maintenance of Wastewater Treatment Plant"
   EPA Form 7500-5
                                              Revised: TM 78-1
                                              December 1977

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-------
            REGIONAL REPORTING REQUIREMENTS THROUGH RCGMIS


PROCEDURES:  Reporting procedures have been established for actual
Regional performance against the following Water I (Construction Grants)
quarterly output commitments in the Agency's Formal Planning and Reporting
System:

     - Number of new awards by step
     - Total estimated obligations
     - Number of projects completed by step
     - Total PL 92-500 outlays
     - Number of interim inspections

     Starting with the third quarterly of FY 1977, quarterly Regional
performance against these output commitments will be measured only
through the RCGMIS system, except as indicated in the following procedures
for outlays and obligatings:

     Number of new awards by step — Actual performance against these
three output commitments will be monitored using RCGMIS data element L_5_
(Final Approval and Award - Code and Date).  A project will be considered
awarded for these commitments when the date of award and status code AE
(Completed/Approved) are entered into this data element.

     Total estimated obligations— Actual performance against this
output commitment will be monitored through the Grants Administration
Division's "PL 92-500" file.  This information is compiled from the form
5700-1 that must be sent to Headquarters within 24 hours of each grant
award.  This commitment is not being monitored through RCGMIS because
that system does not contain the financial accounting information necessary
to determine net PL 92-500 awards.  While RCGMIS can track both new
awards and amendments to PL 92-500 projects, it cannot determine the
amount of new law money that is awarded to old law projects.  However,
the "PL 92-500" file is compared with RCGMIS on a weekly basis to make
sure the information contained in both files is accurate.

     Number of projects completed by step — Actual  performance against
these three output commitments will be monitored through GICS data
element N^ (Project Completion - Code and Date).  When all grant conditions
have been satisfied, and actual date with the status code AD (Project
Complete) should be entered in data element N5.

     The only exception is that for Step 1 projects, if data element N5
has not been coded complete, then data element M9 (Facility Plan Review)
will be scanned looking for status code AH (Facility Plan Sufficiently
Complete to make a Step 2 award).  Step 1 projects coded in this fashion
will be considered for the purpose of the output commitments.   This is
the only instance where a data element other than N5 will  be used to
measure completions for Regional  output commitments.

-------
     Number of interim inspections — Actual performance against this
output commitment will be monitored using RCGMIS data element N0_ (Latest
Inspection) and H9^ (Agency Conducting Inspection).  Data element NO
contains, for all Step 3 and PL 84-660 projects, the inspection code
and date of the most recent EPA - recognized inspection of the construction
of a wastewater treatment project.  The appropriate status code for the
purposes of this output commitment is A3 (Interim Audit/Inspection).

     Total PL 92-500 outlays — Actual performance against this output
commitment will be monitored through the Agency's Financial Management
System.

     A full and detailed description of these procedures may be found in
POM #77-7 (April 8, 1977).
                                                            Revised TM - 78-1
                                                            December 1977

-------
                                                                                                                I No 29-R0218
FEDERAL ASSISTANCE

! >• JVPE rj PREAPPLICATION
1 ACTION Q APPLICATION
;.JSrwti" Q NOTIFICATION OF INTENT (Opt)
*"JX} LI REPORT OF FEDERAL ACTION
2 APPLI
CANT'S

APPLI
CATION
* NUMBER

b DATE
tear month rfav
19
3 STATE
APPLICA-

IDENTI-
FIER
« NUMBER

b DATE Year wowtfc rfu <
ASSIGNED 19
Leave
Ula-nk
4.  LEGAL APPLICANT/RECIPIENT
                                                                              | 5. FEDERAL EMPLOYER IDENTIFICATION NO
i
i
a
b Organization Unit
c, Street/P.O. Box
d City
f State
h Contact Person (Nome
 th the attached assurance* if the twiit-
nce is approved
b PROJECT
17. PROJECT
DURATION
Monthl
Year month day
19
6.
PRO-
GRAM
(From
Federal
Catalog)
8. TYPE OF
A- State
B-lntfrstate
C-Substite
Outlet
D-County
E-C,ty
F- School Distr
G-Special Purp<
District
• NUMBER •
b TITLE
APPLICANT/RECIPIENT
H-Commumty Action Agency
1- Higher Education)! Institut
J-lndun Tribe
K-Other (Specify}
I


»• j 	 1
Enter appropriate letter
9. TYPE OF ASSISTANCE
A-Basic Grant D-lnsurance
B-Supplem«ntil Grant E-Othef Entcr appro. i 	 r 	
C-Loan priate letter(t) [ |_
12. TYPE OF
A-New C-
B-Renewal D
15. TYPE OF
A-lncrease Dol
B-Decrease Dol
C- Increase Dur
D-Decrease Du
E-Cincellation
APPLICATION
Revision E-Augmentation
Continual on

CHANGE (Fvr He or ite)
ars F-Oth«r {Specify)
ars
tion
it ion
Enter appro- r
priate lettrr(i) |_

etUr \ 	 1


.L.l. 1
19. EXISTING FEDERAL IDENTIFICATION NUMBER
ne. City. State, ZIP code)
21. REMARKS ADDED
Q Yes Q No
b If required by OMB Circular A-95 this application was submitted, pursuant to in No re-
slructions therein, to appropriate clearinghouses and all responses an attached tponte
(n D
(« n
(3) D
23. a TYPED NAME AND TITLE
CERTIFYING
REPRE-
SENTATIVE ,
b SIGNATURE
24. AGENCY NAME
o
I
g
i
26. ORGANIZATIONAL UNIT
29. ADDRESS
31, ACTION TAKEr
Q 1 AWARDED
Q b REJECTED
Q c RETURNED FOR
AMENDMENT
Q d DEFERRED
Q 6 WITHDRAWN
38.
FEDERAL AGENCY
A -95 ACTION
, 32-
' • FEDERAL
b APPLICANT
c. STATE
I d LOCAL
e OTHER
f TOTAL
FUNDING
$

00
00
00
.00
.00
$ 00
27. ADMINISTRATIVE OFFICE

attacked
D
n
n
c. DATE SIGNED
Year month day
19
25. APPLICA- Year month dav
TION
RECEIVED 19
28. FEDERAL APPLICATION
IDENTIFICATION
30. FEDERAL GRANT
IDENTIFICATION
Year month day 34. Year month dav
33. ACTION DATE* 19 DATE™^
35. CONTACT FOR ADD TIONAL INFORMA 36. Year month, dau
TION (Name and telephone number) ENDING
DATE 19

a In taking above action, any comments received from clearinghouses ware con.
sidersd H agency response is due under provisions of Part 1, OMB Circular A-95,
it has been or is being made
37. REMARKS ADDED
Q Yes QNo

b FEDERAL AGEftCV A-95 OFFICIAL
(Name and telephone no )
                                                                                          STANDARD FORM 424 PAGE 1  (10-75)
                                                                                             A, Fedtrvl Management Circular

-------
SECTION IV-REMARKS (Please reference the proper item number from Sections /, // or ///, if applicable)
                                                                              STANDARD FORM 424  PAGE 2  (10-75)

-------
                                           GENERAL INSTRUCTIONS
     This is a multi-purpose standard form. First, it will be used by applicants as  a  required facesheet for pre-
applications and applications submitted in accordance with Federal Management Circular 74-7. Second, it will
be  used  by  Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by
clearinghouses  in  accordance  with OMB Circular  A-95.  Third, it will  be used by Federal  agencies to  notify
States  of grants-m-aid  awarded  in  accordance with  Treasury  Circular  1082  Fourth, it  may be  used, on  an
optional basis, as a notification of intent from applicants to clearinghouses, as an early initial notice that Federal
assistance is to be applied for (clearinghouse procedures will govern).


                                  APPLICANT PROCEDURES  FOR  SECTION  I
     Applicant wilt complete all items in Section I If an item is not applicable,  write "NA".  If additional space is needed, insert
an asterisk "*", and use the remarks section on the back of the form. An explanation follows for each item
Item
                                                          "Hem
 3a
       Mark appropriate box Pre-application and applica-
       tion guidance is m  FMC 74-7 and Federal agency
       program  instructions  Notification  of jntent guid-
       ance is in Circular A-95 and procedures  from clear •
       mghouse Applicant will not use "Report of Federal
       Action" box

       Applicant's own control number, if desired.

       Date Section  I is prepared

       Number assigned by State clearinghouse, or  if dele-
       gated by State,  by  areawide clearinghouse  All re-
       quests to Federal agencies must contain this tdenti
       fier if the program  is covered by Circular A-95 and
       required  by   applicable State/areawide clearing-
       house procedures  If in doubt, consult  your clear
       mghouse

3b     Date applicant notified of clearinghouse  identifier

4a~4h  Legal name of applicant/recipient, name of primary
       organizational unit which will  undertake the  assist-
       ance  activity, complete  address of applicant, and
       name and telephone number of person who can pro-
       v'lde further information about this request

5      Employer identification number of applicant  as as-
       signed by Internal Revenue Service

6a     Use Catalog  of Federal Domestic Assistance num-
       ber assigned to program under which assistance is
       requested  If more than  one  program  (e g  , joint
       funding)  write "multiple" and explain in remarks
       If unknown, cite  Public Law or U S Code

6b     Program  title from  Federal Catalog  Abbreviate if
       necessary

7      Brief  title  and appropriate description  of project
       For notification of intent, continue in remarks sec
       tion if necessary to convey proper description

8      Mostly self-explanatory  "City"  includes town, town
       ship or other municipality

9      Check the  type(s)  of assistance  requested  The
       definitions  of the terms are
       A  Basic Grant  An  original  request for Federal
          funds This would not include any contribution
          provided under  a supplemental grant.
       B  Supplemental Grant  A  request to  increase a
          basic  grant m certain cases where the eligible
          applicant  cannot supply the required matching
          share of the basic Federal  program (e g.f  grants
          awarded by the Appalachian Regional Commis-
          sion to provide the applicant a matching share)
       C. Loan. Self explanatory.
                                                            12.
                                                            13
                                                            14a.
                                                            14b
D, Insurance  Self explanatory.
E  Other, Explain on remarks page.

Governmental unit where significant and meaning-
ful impact could  be observed. List only largest unit
or units affected, such  as State, county, or city. If
entire unit affected, list it rather than subumts

Estimated number of  persons directly  benefiting
from project

Use appropriate code letter. Definitions are.

A. New. A  submittal for the first time for  a  new
   project

B  Renewal An extension for an additional funding/
   budget period for a  project having no projected
   completion date, but for which Federal support
   must be renewed each year.

C, Revision  A  modification to  project  nature or
   scope which may result  in funding change (in-
   crease or decrease).

D. Continuation   An extension  for  an  additional
   funding/budget period for a project  the agency
   initially agreed to fund for a definite number of
   years

E, Augmentation.  A  requirement  for   additional
   funds for a project previously  awarded funds in
   the same funding/budget period  Project  nature
   and scope unchanged

Amount requested or to be  contributed  during the
first  funding/budget period by each  contributor-
Value of in-kind contributions will be included  If
the action is a change in dollar amount of an exist-
ing grant  (a revision  or augmentation), indicate
only the amount of the change  For decreases en
close the amount m parentheses  If both basic and
supplemental amounts are   included, breakout in
remarks  For  multiple program funding, use totals
and show program breakouts in remarks  Item defi
nitions  13a, amount requested from Federal Gov-
ernment, 13b,  amount applicant will  contribute,
13c, amount from State, if appJicant is not a State,
13d, amount from  local government, if applicant is
not a local government,  13e, amount from any other
sources, explain in remarks

Self explanatory.

The distnct(s) where most  of actual work will be
accomplished  If city-wide or State-wide,  covering
several districts, write "city-wide" or "State-wide "

Complete only for revisions  (item  12c), or augmen-
tations (item 12e).
                                                                            STANDARD  FORM 424  PAGE 3  (10-75)

-------
17.


18
Approximate date project expected to begin (usually
associated  with  estimated  date  of  availability of
funding)

Estimated number of  months to complete project
after Federal funds are available.

Estimated date  preapplication/apphcation  will be
submitted to Federal agency if this project requires
clearinghouse  review  If review not required, this
date would usually be same as date in item 2b.
                                                             /fern
                                                             20.
                                                             21.
                                                             Existing Federal identification number if this is not
                                                             a  new request and directly relates to a previous
                                                             Federal action. Otherwise write "NA".

                                                             Indicate  Federal agency to which this request is
                                                             addressed. Street address not required, but do use
                                                             ZIP.

                                                             Check appropriate box as to whether Section fV of
                                                             form  contains remarks  and/or additional remarks
                                                             are attached.
                                  APPLICANT PROCEDURES  FOR SECTION II

     Applicants will always complete items 23a, 23b, and 23c. If clearinghouse review is required, item 22b must be fully com-
pleted An explanation follows for each item:
/tern

22b.
23 a
List clearinghouses  to which submitted and show
in appropriate blocks the status of their responses.
For more than three clearinghouses,  continue  in
remarks  section. All written comments submitted
by or through clearinghouses must be attached.
Name and title of authorized representative of legal
applicant.
                                                    /tern
                                                    23b.     Self explanatory.


                                                    23c.     Self explanatory.

                                                    Note:    Applicant completes only Sections I  and M. Section
                                                             111 is completed by Federal agencies.
                              FEDERAL  AGENCY  PROCEDURES FOR SECTION  til

     If applicant-supplied information in Sections I  and II needs no updating or adjustment to fit the final Federal action, the
Federal agency will complete Section III only. An explanation for each item follows:
Item

24       Executive department or independent agency having
         program administration responsibility.

25.      Self explanatory.

26       Primary organizational untt below department level
         having direct program management responsibility.

27.      Office directly monitoring the program.

28.      Use  to  identify non-award actions where  Federal
         grant identifier m  item 30 is not applicable or will
         not suffice.

29.      Complete address of administering office shown  m
         item 26.

30       Use  to identify award actions where different from
         Federal application identifier in item 28

31.      Self  explanatory  Use remarks section to  amplify
         where appropriate.

32.      Amount to  be contributed during the first funding/
         budget period by each contributor. Value of in-kind
         contributions will  be  included.  If the action is a
         change in dollar amount of an existing grant (a revi-
         sion  or augmentation), indicate only the amount  of
         change. For decreases, enclose the amount in pa-
         rentheses  If both  basic and supplemental amounts
         are included, breakout m remarks For multiple pro-
         gram funding, use totals and show program break-
         outs  m remarks   Item  definitions: 32a,  amount
         awarded by Federal Government, 32b, amount ap-
         plicant will contribute, 32c, amount from  State, if
         applicant is not a State, 32d, amount from local
         government if applicant  is not a  local  government;
         32e, amount from  any  other sources, explain  in
         remarks

33      Date action was taken on this request.

34      Date funds will become available
                                                    Item

                                                    35.      Name and telephone no. of agency person who can
                                                             provide more information regarding this assistance.

                                                    36.      Date after which funds will no longer be available.

                                                    37       Check appropriate box as to whether Section IV of
                                                             form contains Federal  remarks and/or attachment
                                                             of additional remarks

                                                    38.      For  use with A-95 action notices only  Name and
                                                             telephone of person who can assure that appropri-
                                                             ate A-95 action  has been taken—If same as person
                                                             shown  in item 35, write "same". If not applicable,
                                                             write "NA".

                                                    Federal Agency Procedures—special considerations

                                                    A.  Treasury Circular 1082  comp/iarice. Federal agency will
                                                        assure proper completion of Sections I  and III. If Section  I
                                                        is being completed by Federal agency, all applicable items
                                                        must be filled in Addresses of State Information  Recep-
                                                        tion Agencies (SCIRA's) are provided by Treasury Depart-
                                                        ment to each agency. This form replaces SF 240, which
                                                        will no longer be used.
                                                    6  OMB Circular A-95 compliance Federal  agency will as-
                                                        sure proper completion of Sections I, II, and III This form
                                                        is  required for notifying all reviewing clearinghouses of
                                                        major actions on all programs reviewed  under A-95
                                                        Addresses of State and  areawide clearinghouses are pro-
                                                        vided  by  OMB to each agency. Substantive  differences
                                                        between applicant's request and/or clearinghouse recom
                                                        mendations, and the project as finally  awarded will be
                                                        explained m  A-95 notifications to clearinghouses.
                                                    C  Special note  In most, but not all States, the A-95 State
                                                        clearinghouse and the  (TC  1082)  SCIRA are the same
                                                        office  In  such cases,  the A-95  award  notice to the State
                                                        clearinghouse will fulfilE the TC 1082 award  notice re
                                                        quirement to  the  State  SCIRA. Duplicate notification
                                                        should be avoided.
                                                                              STANDARD  FORM 424  PAGE 4  (10-75)

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U.S. ENVIRONMENTAL PROTECTION AGEN
1 GRANT AGREEMENT/AMENDMEN
CHECK APPLICABLE ITEM(S)
GRANT AGREEMENT
GRANT AMENDMENT
SUBSEQUENT RELATED PROJECT (WWT)
GRANT IDENTIFICATION NO.
T
DATE OF AWARD (Obligation date)
TYPE OF ACTION
PART I-GENERAL INFORMATION
1. GRANT PROGRAM 2. STATUTE REFERENCE 3 REGULATION REFERENCE
4- GRANTEE ORGANIZATION
a. NAME
b. EMPLOYER I.D. NO. (EIN)
C. ADDRESS
5. PROJECT MANAGER (Grantee Contact)
a. NAME
b. TITLE
C. TELEPHONE NO. (Include Area Code)
d. ADDRESS
6. PROJECT OFFICER (EPA Contact)
a. NAME
b. TITLE
Ic. TELEPHONE NO. (Include Area Code)
\7. PROJECT TITLE AND DESCRIPTION
d. ADDRESS

PROJECT STEP (WWT)
8. DURATION
PROJECT PERIOD (Dates)
BUDGET PERIOD (Dates)
9. DOLLAR AMOUNTS
TOTAL PROJECT COSTS
TOTAL ELIGIBLE COSTS (WWT)
TOTAL BUDGET PERIOD COSTS
EPA GRANT AMOUNT (In-KinH Amt. )

UNEXPENDED PRIOR YR. BAL. (EPA Funds)
THIS ACTION (This obligation amount)
10. ACCOUNTING DATA
APPROPRIATION DOC CONTROL NO. ACCOUNT NO. OBJ CLASS AMOUNT CHARGED
41
41
41 .
11. PAYMENT METHOD
| | ADVANCES ( _ -r. nf ftmaffi) \ | p FIMRI 1 PSFM FM T
1 1 |<">TMC-Q
SEND PAYMENT REQUEST TO
1
12. PAYEE (Name and mailing address. Include ZIP Code)
EPA Form 5700-20 (Rev. 4-75)
PREVIOUS EDITION IS OBSOLETE.  ALSO THIS EDITION
REPLACES EPA  FORM  5700-21.
                                                                                                                            PAGE 1  OF 5

-------
PART II-APPROVED BUDGET |
TABLE A - OBJECT CLASS CATEGORY
OVon- con s true tion)
1
2.
3.
4.
5.
6.
7.
PERSONNEL
FRINGE BENEFITS
TRAVEL
EQUIPMENT
SUPPLIES
CONTRACTUAL
CONSTRUCTION







8. OTHER
9.
10.
1 !.
12.
TOTAL DIRECT CHARGES
INDIRECT COSTS: RATE % BASE
TOTAL (Share: Grantee % Federal

TOTAL APPROVED GRANT AMOUNT


•*•>


TABLE B - PROGRAM ELEMENT CLASSIFICATION
(Non-construction)
\
2.
3.




4.
5
6.
7.
8
9.
10
1 1.

1
2
3.
4.
5.
6
7.
8
9
10
1 1 .
12.
13.
14.
15
16
17
18.
19.
20
TOTAL IShare- Grantee % Federal

TOTAL APPROVED GRANT AMOUNT
TABLE C - PROGRAM ELEMENT
(Construction)
ADMINISTRATION EXPENSE
PRELIMINARY EXPENSE
LAND STRUCTURES, RIGHT-OF-WAY
ARCHITECTURAL ENGINEERING BASIC FEES
OTHER ARCHITECTURAL ENGINEERING FEES
PROJECT INSPECTION FEES
LAND DEVELOPMENT
RELOCATION EXPENSES
%l


CLASSIFICATION








RELOCATION PAYMENTS TO INDIVIDUALS AND BUSINESSES
DEMOLITION AND REMOVAL
CONSTRUCTION AND PROJECT IMPROVEMENT
EQUIPMENT
MISCELLANEOUS
TOTAL (Lines 1 thru 13)
ESTIMATED INCOME (If applicable)
NET PROJECT AMOUNT (Line 14 minus 15)
LESS: INELIGIBLE EXCLUSIONS
ADD: CONTINGENCIES
T<">TAI. (SVlf>r»: <~."n'<"" % Federal

TOTAL APPROVED GRANT AMOUNT









<%)


TOTAL APPROVED ALLOWABLE 1
BUDGET PERIOD COST i
|
^









$
,









J
s 1




















4
1
EPA Fotm 5700-20 (Rev. 4-75)
                                                                                                                          PAGE 2 OF 5

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                                            PART III-GRANT CONDITIONS
| a. GENERAL CONDITIONS



      The grantee covenants and agrees that it will expeditiously initiate and  timely  complete  the  project work
  for which assistance has been awarded under this grant, in accordance with  the  applicable grant  provisions  of
  40 CFR Subchapter B.  Specifically, the grantee warrants and  represents that  it,  and its  contractors,
  subcontractors, employees and representatives, will comply with the following Seneral  Conditions,  the
  applicable supplemental conditions of 40 CFR Subchapter B, as amended, and  any  Special Conditions set  forth in
  this grant agreement or any grant amendment.


      1.  Access.  The grantee agrees that it will provide access to  the facilities,  premises and  records
  related to the project as provided in 4*30.605 and  30.805 of  40 CFU Subchapter  B.


      2.  Audit and Records.  The grantee agrees that it will maintain an adequate  system for financial
  management, property management and grantee audit in accordance with 4*30.800 and  30.810-3, and  that it will
  maintain, preserve and make available to the Government all project records for the  purpose of  inspection,
  interim and final audit, and copying as required by ss30.60t>, 30.805, ana 30.820  or  40 CFR Subchapter  B.


      3.  Reports,  The grantee agrees to timely file with £PA  such reports as  are  specifically required by the
  grant agreement or pursuant to HO CFR Subchapter B, including progress reports  (430.635-1),  financial  reports
  (430.635-3), invention reports (430.635-4), property reports  (530.635-5), relocation and  acquisition reports
  (430.635-6) and a final report 430.635-2, and that  failure to timely file a report may cause  EPA  to  invoke  the
  remedies provided in 40 CFR 30.430.


      4.  Grant Changes: Modifications.  The grantee  agrees that all  grant modifications will be accomplished
  through the provisions of 40 CFR 30.900 through 30.900-4.


      5.  Requirements Pertaining to Federally Assisted Construction.  The grantee  agrees that  during  the
  performance of the project work it will comply, and that its contractors, subcontractors,  employees  and
  representatives will comply, with the requirements  pertaining to federally  assisted  construction  identified in
  40 CFP 30.415.


      6.  Suspension.


           (a)  The grantee agrees that the grant official may, at any tune,  require the  grantee to  stop all,  or
  any part, of the work within the scope of the project for which EPA grant assistance was  awarded,  by a  written
  stop-work order, for a period of not more than forty-five  (45) clays after the order  is  delivered  to  the
  grantee, and for any further period to wnich the parties may agree.  Any such order  shall  be  specifically
  identified as a stop-work order issued pursuant to  this clause.   Upon receipt of  such  an  order, the  grantee
  agrees to forthwith comply with its terms and take all reasonable steps to  irinimize  the incurrence of  costs
  allocable to the work covered by the order during the period of work stoppage.  This suspension article shall
  not be applicable to educational institutions or nonprofit research institutions.


           (b)  The grantee agrees that,  within any such suspension period, BPA may either  (1)  cancel  the stop-
  work order, in full or in part,  or (2)  initiate action to terminate the grant,  in part  or  in  full, as  provided
  in Article 7,  below.


           (c)  If a stop-work order is canceled or if the suspension period  or any extension thereof  expires,
  the grantee agrees to promptly resume the previously suspended project work.


           (d)  An equitable adjustment shall be made in the project period,  budget period,  or  the grant amount,
  or all of these as appropriate,  if:


                (1)   the stop-work order  results in an increase in the time required for, or  in the  grantee's
  costs properly allocable to, the performance of any part ot the project,  ^nd


                (2)   the grantee asserts  a written claim for such  adjustment  within sixty (60)  days  after the
  end of the period of work stoppage,  E£°vided that if the Project Officer  determines that the  circumstances
  justify such action ( for example,  if  the impact ot  cost or time  factors resulting JTrom  a stop-worn order could
  not have been  ascertained prior  to written submission  ot the claim), he may  receive and act upon any such
  claim asserted at any time prior to final payment under this grant.


           (e)  If a stop-work order is not canceled  and grant-related project work covered by  such  order is
  within the scope of a subsequently-issued termination  order,  trie reasonable  costs resulting from the stop-worx
  order shall be allowed in arriving at the termination  settlement.


           (f)   The grantee agrees  that costs incurred by the grantee  or  its contractors, subcontractors  or
  representatives, after a stop-work order is delivered,  or within any extension of  the suspension period to
  which the parties may have agreed,  with  respect to  the project work  suspendeu by such order or agreement,
 which  are not  authorized  by  this article or  specifically  authorized  in  writing by  the Project officer shall
 not  be allowable costs.
EPA Form 5700-20 (Rev. 4-75)
                                                                                                       PAGE 3 OF 5

-------
                                            PART III-GRANT CONDITIONS
                                                                                                              •
a. GENERAL CONDITIONS (Continued)

      7-   Termination..
          (a)  The  grantee  agrees  that  the  grant  award  official  may,  at any time,  after written notice and
after opportunity  for  consultation  has been  afforded  to the  grantee,  terminate the grant,  in whole or in part7
with the  concurrence of  appropriate EPA officials,  through  i written  termination  notice specifying the
effective date of  the  termination action.
               (1)  cause for  termination shall include, but  not. be limited to, default by the grantee or
failure by  the grantee to  comply  with  grant  conditions or terms.

               (2)  The grantee  agrees  that,  upon such  termination,  it will return or credit to the United
States that portion of grant  funds  paid *r owed  to  the grantee  and allocable to the terminated project work,
except such portion as may be reguired by  the grantee  to meet commitments which had become firm prior to the
effective date of  termination and are  otherwise  allowable.


               (3)  whenever feasible,  the  grant  award  official  and the grantee shall enter into a termination
agreement as soon  as possible after any such termination action to establish the  basis for settlement, of grant
termination costs  and  the  amount  and date  of payment  of any  sums due to either party.

          (b)  upon request of the grantee, and if the  Project Officer determines with the concurrence of
appropriate EPA  officials  that  there is good cause  for the  termination of all or any portion of tne project
work tor  which EPA grant assistance has been awarded,  the grant award official and the grantee may enter into
a written termination  agreement establishing the effective  date of the grant and project termination, and the
basis for settlement ot  grant termination  costs, and  the amount and date of payment of any sums due to either
party.

          (c)  The  grantee  agrees  that  it will not unilaterally  terminate work on  the project tor which EPA
grant assistance has been  awarded,  except  for good  cause.   The  grantee further agrees:


               (1)  That  it will promptly give written  notice to the  Project officer ot any complete or partial
termination of tne project work by  the grantee,  and


               (2)  That, if the Project Officer  determines  with tho  concurrence of appropriate EPA officials
that the  grantee has terminated the project  work without good cause,  the grant award official may annul the
grant and all EPA  grant  funds previously paid or owing to the grantee shall be promptly returned or credited
to  the United States.


    8.  Disputes.

          (a)  Except as otherwise provided by law or regulations, any dispute  arising  under  this  grant
agreement shall  be decided  by the Project  Officer,  who,  after concurrence  by  appropriate EPA officials,  shall
reduce his decision to writing  and  mail  or otherwise furnish a  copy thereof to the  grantee.   Such a  decision
ot the Project Officer shall be final  and  conclusive unless, within thirty (30) days from  the date of  receipt
of such copy,  the grantee mails or  otherwise delivers  to the Project Officer  a written appeal addressed  to the
Administrator.


          (b)  The decision  of the Administrator  or  his  duly authorized  representative  for  the determination of
such appeal shall be final  and  conclusive  unless determined by  A court  of  competent jurisdiction  to  have been
fraudulent- or capricious, or arbitrary,  or so grossly  erroneous as to imply bad faith,  or  not supported  by
substantial evidence.


          (c)  In connection with an  appeal proceeding  under this article,  the  grantee  shall  be afforded  an
opportunity to be hearl,  to be  represented by legal counsel, to offer evidence arid  testimony in support  of  any
appeal,  and to cross-examine Government  witnesses and  to examine documentation or exhibits offered in  evidence
by the Government or admitted to the appeal  record  (subject to  the Government's right  to offer its own
evidence and testimony, to cross-examine the appellant's witnesses, ana to examine  documentation  or  exhibits
offered in evidence by the  appellant or  admitted to the  appeal  record).  Tne  appeal  shall  be determined  solely
upon the appeal  record, in accordance  with the applicable provisions of Subpart J ot Part  30  of Title  UO CFR.


          (d)  This "Disputes" article  shall not  preclude consideration  of  any  question of  law in  connection
with decisions provided for by  this  article;  provided,  that nothing in  this grint or related regulations snail
be construed as making final the decision of any administrative official,  representative,  or board,  on a
question of law.

    9.  Notice and Assistance KegarcHng  Patent and  OO2v.r_ig.ht  Infringe merit.


          (a)  The  grantee  agrees  to report to tne Project Officer, promptly and in  reasonable written  detail,
each notice or claim of  patent  or copyright  infringement based  on the performance  of this  cjrar.t ot wnich the
grantee has knowledge.


          (b)  In the event  of any claim  or suit  against  the Government, on account  of  any  alleged patent or
copyright infringement arising  out  of  the  performance  of this grant or  out of  the use  of any supplies
furnished or worn or services performed  nereunder,  the  orantee  agrees to  furnish  to the Government,  when
requested by tne Project Officer,  all  evidence and  information  in possession  of the grantee  pertaining to  sue
suit or claim.   Such evidrnce and information shall DP  furnished at the expense of  the Government, except when
the grantee has  ajreed to  indemnity  the  Government.
EPA Form 5709-20 (Rev. 4-75)                                                                                PAGE

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         b. SPECIAL CONDITIONS
                                                              PART IV
         NOTE:   The Grant Agreement must be completed in duplicate and the Original returned to the Grants Administration
         Division for Headquarters grant awards and to the appropriate Grants Administration Office for state and local awards
         within 3 calendar weeks after receipt or  within any extension of time as may be granted by  EPA.

         Receipt of a written refusal or failure to  return the properly executed document within the prescribed time, will result
         in the automatic withdrawal of the grant offer by the Agency. Any amendment to the  Grant Agreement by the grantee
         subsequent to the document being signed by the Award Official shall void the Grant Agreement.
                                                     OFFER AND ACCEPTANCE
         The United States of America, acting by and through the U.S.  Environmental Protection Agency (EPA), hereby offers

         a grant to the	for	% of all approved costs incurred up to and not
                                GRANTEE ORGANIZATION

         exceeding $ 	 for the support of approved budget period effort described in application (including al
                       GRANT AMOUNT

         application modifications)	included herein by reference.
                                                       Tl TLE AND DATE
ISSUING OFFICE (Grants Administration Office)
ORGANIZATION/ADDRESS
AWARD APPROVAL OFFICE
ORGAN! ZATION/ADDRE S3
                             THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
         SIGNATURE OF AWARD OFFICIAL
                                            TYPED NAME AND TITLE
                                                                                                    DATfe
•JPP
         This Grant Agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and grant
         regulations. In accepting this award or amendment and any payments made pursuant thereto, (1) the undersigned repre-
         sents that he is duly authorized to act on behalf of the grantee organization, and (2) the  grantee agrees (a) that  the
         grant is subject to the provisions of 40 CFR Chapter I, Subchapter B and  of the provisions of this agreement (Parts
         I thru IV), and (b) that acceptance of any payments constitutes an agreement by the payee that the amounts, if any,
         found by EPA to have been overpaid will be refunded or credited in full to EPA.
                                     BY AND ON BEHALF OF THE DESIGNATED GRANTEE ORGANIZATION
1 SIGN ATURE
TYPED NAME AND TITLE
DATE
        EPA Form 5700-20 (Rev. 4-75)
                                                                                                               PAGE 5 OF 5

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2.
3.

4.
f
5.
6.
7.
8.
UMMARY OF COSTS OF PLANNED TREATMENT WORKS
SCHEDULED BY PROJECT AND CATEGORY
(Read initructiont on reverie before completing form )

PROJECT STEP
ESTIMATED CALENDAR QTR/YEAR
APPLICATION WILL BE SUB-
MITTED TO EPA FOR FUNDING

a. CATEGORY 1
Secondary Treatment and BPWTT
b. CATEGORY II
More Stringent Treatment
c. CATEGORY IMA
Infiltration/Inflow Correction
d. CATEGORY 1MB
Major Sewer System Rehabilitation
e. CATEGORY IVA
New Collectors, etc.
f. CATEGORY IVB
New Interceptors, etc.
g. CATEGORY V
Correction of Combined Sewer Over-
flows
h. CATEGORY VI
Treatment and/or Control of
Stormwaters
TOTAL ESTIMATED COST OF
RECOMMENDED PROJECTS
STEP 1 PROJECT COST
Project No. r _ni

GRAND TOTAL ESTIMATED COST OF
ALL PROJECTS TO BE INCLUDED IN
THE ENTIRE GRANT
* SECOND
** PROJECT
STEP

$








$
MUNICIPALITY (Applicant}:
*THIRD
PROJECT
STEP

$








$
* FOURTH
PROJECT
STEP

$








$
* FIFTH
PROJECT
STEP

$








$

>,.--
COST ESTIMATES OF RECOMMENDED PROJECTS WERE COMPUTED AS OF AND REFLECT Th
CONSTRUCTION HOST INDEX OF /

(month and year)
\S REPORTED BY THE ENGINEERING NEWS RECORD
TOTAL ALL
PROJECTS


$








$
$
$
IE LATEST
TTT
*
 nclude project description in Facilities Plan narrative.
The First Project is the initial (Step 1) project under this grant for the treatment works.

-------
                                                     GENERAL INSTRUCTIONS
Provide the estimated costs for the design and  construction of the Treatment Works to carry  out the alternative proposal recommended for
implementation. Indicate the planned division of the work to be encompassed by the Grant into projects, i.e., the Step Two project for preparation
of construction drawings and specifications,  and the Step Three project for construction. Identify any recommended segmenting or phasing
design or construction into additional Step Two or Step Three projects. Use additional pages if the number of projects being recommended exa
four. If one or more recommended Step Two or Step Three projects would be carried out by a municipality other than the municipality fundi
the Step One facilities planning, show that project(s) on a separate page.
ITEM
  1
  2

  3

  4

  5

  6
                                                     SPECIFIC INSTRUCTIONS

         The first project was for Facilities Planning (Step One}. The second would normally be for preparation of construction drawings and
         specifications, etc.

         ITEMS 2 THRU 5 REQUIRE INFORMATION ON PLANNED PROJECTS IN CHRONOLOGICAL SEQUENCE LEFT TO RIGHT.

         Enter the setup of each project planned.

         Enter the date (calendar quarter/year) when the application for each recommended project is scheduled to be submitted to EPA.

         Enter the estimated cost of each project identified by category of work.

         Enter the total estimated cost of each project and the sum of all projects.

         Enter the EPA Identification Number  of the Step One, Facilities Planning, project for this grant. Enter the total cost of the Step One
         project.

  7      Enter the total  estimated cost of all projects to be included in the entire grant (sum of 5 + 6) if accomplished as recommended in the
         Plan.

  8      Enter the date  (month/year)  upon which estimated costs are based and the appropriate Construction Cost Index for that month as
         reported in the Engineering News Record.

                                                           DEFINITIONS

Category I      -   Secondary  Treatment and Best  Practicable Waste Treatment Technology (BPWTT), including costs for higher levels of BOD
                   and suspended solids removal, without a requirement for removal of other constituents.

Category II     -   Advanced waste treatment, including removal of one or more of the following: phosphorus, nitrogen, nitrate chemical oxy
                   demand, total organic carbon,  pesticides, heavy metals, etc. Also included are polishing lagoons which  temporarily reti
                   effluents from secondary treatment facilities.

Category IIIA   -   Correction of Infiltration/Inflow Conditions, including cost of the I/I analysis and evaluation, together with all costs necessary
                   for removing excessive I/I from the sewer system, such as replacement or relining of sewer sections, flow routing systems, etc.,
                   and including the treatment plant component costs specifically required to treat I/I flows which cannot be reduced in a cost
                   effective manner.

Category IIIB   -   Replacement  or major rehabilitation of sewers,  where it has been determined that  such replacement  or rehabilitation is
                   necessary to the total integrity and performance of the wastewater treatment works.

Category IVA   -   New collectors, including sewers, force mains and pumping stations which perform the complete collector sewer function.

Category IVB   -   New interceptors, including sewers, force mains and pumping stations which perform the complete interceptor sewer function.

Category V     -   Correction of combined sewer overflows including costs for evaluating alternative methods of correcting such overflows and
                   the cost of new collectors, interceptors, storm sewers, retention basins, etc., necessary to alleviate  the overflow problem.

Category VI    -   Treatment and/or control of stormwaters, including the costs  of  abating pollution from  stormwater  run-off channelled
                   through  sewers and other conveyances used only for such run-off.  Costs of abating  pollution  from stormwater channelled
                   through sewers which also carry sewage are included in Category V,

-------
                                U. S. ENVIRONMENTAL PROTECTION AGENCY
                                   STATE PRIORITY CERTIFICATION
Form Approved
OMB No. 158-ROW8
      Submit in duplicate to appropriate Regional Office
      LEGAL NAME OF APPLICANT
                                                                                                      PROJECT NO.
      ADDRESS (Street, City, State, Zip Code)
      DESCRIPTION OF  PROJECT
      JUSTIFICATION FOR  PROJECT
W

 "
      THE STATE WATER  POLLUTION CONTROL AGENCY CERTIFIES:

      A.  That the project, if constructed in accordance with approved plans and specifications, is in conformity with the State
          Water Pollution Control Plan submitted in accordance with the requirements of Section 303(e) and Section 106 of the Federal
          Water Pollution Control Act, as amended.

      B.  That a discharge permit has been,  or will be, obtained, in accordance with Section 402 of the Act.

      C.  That on the basis of Water Pollution Control needs and in accordance with the approved State priority system (40 CFR 35.915),
          the project is  entitled to priority for Federal assistance  for the amount requested from available funds under  Title II of the
          Federal Water  Pollution Control Act.
      OFFICIAL NAME OF STATE WATER POLLUTION CONTROL AGENCY
      .TITLE AND SIGNATURE OF RESPONSIBLE  OFFICER
                                                                                                      DATE
       EPA Form 5700-28 (7-73)
                                         REPLACES FORM FWPCA - 7C (R 3-67) WHICH IS OBSOLETE

-------
                                   U.S. ENVIRONMENTAL PROTECTION AGENCY
                                     APPLICATION FOR FEDERAL ASSISTANCE
                                                (Construction Grants)
                                                 General Instructions
                                          Form Approved
                                     OMB No. 158-R0134
    In  completing this  form, CAREFULLY  READ AND
 FOLLOW ALL INSTRUCTIONS.  Many  items are not self-
 explanatory. An incomplete or incorrectly completed appli-
 cation form may delay consideration of your application.

 1.  Use of this Application—This application form is to be
 used for EPA grant program 66.015, Construction Grants for
 Wastewater Treatment Works and for all  land acquisition or
 land  development  projects. Also, this form shall be used to
 request supplemental assistance,  propose  changes or amend-
 ments  to approved  grants,  and  request continuation or
 refunding  for  approved grants originally submitted on this
 form.

 2.  Submission—Submit the original and three  copies of the
 forms.  If an  item  cannot be answered or does not appear to
 be related or relevant to the assistance requested, write "NA"
 for not applicable. When a request  is made for supplemental
 assistance, amendments or changes  to an approved grant,
 submit only those pages which are appropriate.
    Applications  for  Construction   Grants for Wastewater
 Treatment Works  should be  submitted to the appropriate
 designated State Water Pollution Control Agency.

 3.  Grant Regulations—Applicants are expected to understand
 and comply with all EPA grant regulations. These regulations
 are published  in Title 40,  Chapter  1, Subchapter B  of the
 Code of Federal Regulations. A copy of these  regulations is
 included in the application kit.

 4.  Clearinghouse  Notification—Office of  Management and
 Budget Circular A-95 requires  applicants for  certain Federal
 assistance programs to notify the State and areawide planning
 and development  clearinghouses in  the jurisdiction in which
 the project will  be located of their  intention  to apply for
 Federal assistance.  EPA grant program 66.015,  Construction
 Grants  for Wastewater  Treatment  Works  is  a  program for
 which such notification is required.

    Clearinghouses  may comment on  the  proposed  project
 and may solicit comments from other interested parties. All
 comments made by or through clearinghouses, or a statement
 that no such comments were received by the applicant, must
 be  attached  to  the  application  when   it  is  submitted.
 Applicants  for the  above  program should  contact the
 appropriate clearinghouses for further information and assist-
 ance concerning the notification process.

 5.  Environmental  Impact—The National Environmental Pol-
 icy Act  of 1969  requires  that all  agencies  of the Federal
 Government  prepare  detailed environmental  statements on
 any actions to  be taken which significantly affect the quality
 of the human environment.  EPA procedures for the prepara-
 tion of such statements are  set forth in Part 6 of Title 40 of
 the Code of Federal Regulations (40 CFR 6.1  et seq.)  As
 stated in the regulations, EPA will require an environmental
 assessment of certain projects  that are to be supported  by
 agency grants.  Those projects which  require  such an  assess-
 ment and the responsibilities of the applicant in  supporting
 and contributing to the conduct of  the assessment are set
 forth in the  regulations. The environmental assessment will
 result in preparation  by EPA  of an  Environmental  Impact
Statement identifying and analyzing in detail the impact of
the project on the quality of the environment or a "Negative
Declaration" indicating that there will be no such impact.

6. Relocation Assistance and Real Property Acquisition—The
Uniform Relocation Assistance and Real  Property Acquisi-
tion Policies  Act  of  1970,  P.  L.  91-646, provides  certain
rights and benefits to persons whose land is acquired  or who
are displaced  as the result of a Federal or a federally assisted
project. If the project of a State or local agency involves land
acquisition or the displacement of any person from his home,
business or farm, actions must be taken to assure compliance
with the Act.  Land must be acquired in accordance with the
policies of Title  III of the Act. Persons to be displaced must
be  provided decent, safe, sanitary  and comparable housing.
Procedures for complying with the Act are set forth in Part 4
of Title 40 of the Code of Federal Regulations  (40 CFR 4.1
et seq.). No project subject to the Act can be assisted without
the actions and  assurances required by those regulations.
Applicants  whose projects involve the acquisition of  land or
the displacement of people should  request a copy of 40 CFR
4.1 et  seq. from the  office  to which  this application is
submitted.

7. FLOOD  INSURANCE-The  Flood  Disaster Protection
Act of 1973 (P.L. 93-234)  requires grantees, as a condition of
receiving any  form of Federal assistance for acquisition or
construction  purposes  (including  real and nonexpendable
personal property) in an identified special flood area, to
purchase flood  insurance  if  the   total  cost of  insurable
construction  and  acquisition  is $10,000 or more.  Special
flood hazard  areas are identified on Flood Hazard Boundry
Maps and Flood  Insurance Rate  Maps issued by the  Depart-
ment of Housing and Urban Development. Communities have
one year after notification of identification as a flood-prone
community to enter the flood insurance program or no grant
assistance may be awarded for property in the flood hazard
area. Specific requirements pertaining to the flood insurance
program and  to the  required grantee  purchase  of flood
insurance are  set forth in 40 CFR 30.405-10.

8. Completing the Application:

   a.  This application consists of 5 parts: General Informa-
   tion on Part  I, Project Approval Information on  Part II,
   Budget  Information on  Part  III, Program  Narrative on
   Part IV, and Assurances on Part  V.
   b. All dollar amounts requested in this application should
   be rounded to the nearest dollar.

9. Project—The  term "project"  as used  in this application
form  refers  to   the  scope  of  work for  which  Federal
Assistance is awarded by grant or grant amendment pursuant
to 40 CFR Part 35.

10. Pre-Application Assistance—Prior  to  formal application
submission, assistance  including, where  appropriate, a pre-
application conference, may be  obtained from  the  appro-
priate  EPA regional  office and/or State  Water Pollution
Control Agency.  A list of the  EPA Regional Offices with
their addresses and the area they serve "may be found in 40
CFR 30.107, General Grant Regulations and Procedures.
EPA Form 5700-32 (Rev. 6-76)
                                                     PREVIOUS EDITION IS OBSOLETE.

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                                                                                                                   OMB Approval No. 29-M218
         FEDERAL  ASSISTANCE
    »• JYpE     [J PREAPPLICATION
       ACTION      APPLICATION
     box I
Q  NOTIFICATION OF  INTENT (Opt)

HI  REPORT  OF FEDERAL ACTION
                                     2. APPLI-

                                       CANT'S

                                       APPLI-

                                       CATION
                                                                   I.  NUMBER
             b. DATE


                 19
                                                                      Year month  day
3. STATE
APPLICA-
TION
IDENTI-
FIER
                                                                                                        I. NUMBER
b. DATE

  ASSIGNED
                                                                                                                            year   -onth day
                                                                                                         19
                                                     Leave
                                                     Blank
    4. LEGAL APPLICANT/RECIPIENT


    i. Applicant N«m«

    b. Orginizition Unit

    c. Strwt/P.O. Box

    d. City

    f. Stiti

    I). Contact Person (Nanu

      <6 telephone No.)
                                       «. County :

                                       g. ZIP Code
                                                                                           5. FEDERAL EMPLOYER  IDENTIFICATION NO.
                                     PRO-
                                     GRAM

                                     (From

                                     Federal
                                     Catalog)
                                                                                        •. NUMBER
                                                                                        b. TITLE
    7. TITLE AND DESCRIPTION OF  APPLICANT'S PROJECT
                                                                                           8.  TYPE OF APPLICANT/RECIPIENT
                                                                                           A-Stete
                                                                                           B-lnterstato
                                                                                           C-Substate
                                                                                             District
                                                                                           D-County
                                                                                           E-City
                                                                                           F-School District
                                                                                           G-Specnl Purpox
                                                                                             District
                                                                                             H-Community Action Agency
                                                                                             I- Higher Educational  Institution
                                                                                             I- Indian Tribe
                                                                                             K-Other (Specify):
                                                                                                   Enter appropriate letter I   1
                                                                                           9. TYPE OF ASSISTANCE
                                                                                           A-Basic Grant        D-lnsurance
                                                                                           B-Supplemtntal Grant  E-Other
                                                                                           C-Loan
                                                                                                        Enter appro-  I    I   I
                                                                                                        priate letter(t> \    \   \
    10. AREA OF  PROJECT IMPACT (Names of cities, covntiee.
                                   Statei, etc.)
                                                   11.  ESTIMATED NUM-
                                                       BER OF PERSONS
                                                       BENEFITING
                                     12. TYPE OF APPLICATION
                                     A-Naw     C-Revision       E-Augmentation
                                     B-Renewjl  D-Contmuation                          ,—,
                                                              Enter appropriate letter
           PROPOSED FUNDING
                                         14.  CONGRESSIONAL DISTRICTS OF:
    a.  FEDERAL
    b.  APPLICANT
    e.  STATE
    d.  LOCAL
                                         l. APPLICANT
                         16.  PROJECT- START
                             DATE  Year month day
                                19
                                                                   b. PROJECT
             17.  PROJECT
                 DURATION
                                                                                  Months
                                                                                       15.  TYPE OF CHANGE (for Itc or lie)
                                                                                       A-lncreasa Dollars    F-Other (Specify):
                                                                                       B-Decreasa Dollars
                                                                                       C-lncrease Duration
                                                                                       D-Decreaso Duration	
                                                                                       E-Cancellation

                                                                                                                 Enter appro-
                                                                                                                 priate  letterfs)
    I. OTHER
                                    .00
    f.   TOTAL
                                    .00
                         18.  ESTIMATED DATE TO
                             BE SUBMITTED TO
                             FEDERAL AGENCY *•
                                                                        Year  month  day
                                                                                           19.  EXISTING  FEDERAL IDENTIFICATION NUMBER
                                                                     19
    20. FEDERAL AGENCY TO  RECEIVE  REQUEST  (Nam. City. State. HP code)
                                                                                                21. REMARKS  ADDED
                                                                                                      YM  r   NO
    22.


    THE
    APPLICANT
    CERTIFIES
    THAT*-
 a. To the best of my knowledge and belief,
 dati In this preeppticetlon/applicition art
 true and correct, the document has been
 duly authorized  by the governing  body of
 the applicant and  the applicant will comply
 with tbt attached  assurances If the Mtist-
 ance is  approved.
b.  If required by OMB Circular A-95 this application was submitted, pursuant to in-  No r«-
  structions  theraln.  to appropriate clearinghouses and all responses are attached:  ajxmee
                                                                                                                                 Retpoiu*
                                                                                                                                 attacked
(1)

(2)

(3)
                                                                                                                        D
                                                                                                                        a
                                                                                                                        a
                                             a
                                             a
                                             a
    23.
    CERTIFYING
    REPRE-
    SENTATIVE
                 i. TYPED NAME AND TITLE
                                                                   b. SIGNATURE
                                                                                                c. DATE SIGNED
                                                                                                           year  month  day

                                                                                                        19
    24. AGENCY NAME
                                                                                                               25. APPLICA-  y,
                                                                                                               TION
                                                                                                               RECEIVED   19
                                                                                                                  month day
    26.  ORGANIZATIONAL UNIT
                                                                   27. ADMINISTRATIVE OFFICE
                                                                                                                28.  FEDERAL APPLICATION
                                                                                                                    IDENTIFICATION
    29.  ADDRESS
                                                                                                                30. FEDERAL GRANT
                                                                                                                   IDENTIFICATION
31. ACTION TAKEN

PJ I. AWARDED

Q b. REJECTED

Q c. RETURNED  FOR

     AMENDMENT

£] d. DEFERRED

rj e. WITHDRAWN
                         32.
                                        FUNDING
                         a. FEDERAL
                         b. APPLICANT
                         c. STATE
                         d. LOCAL
                         a. OTHER
                         f.   TOTAL
                                                              .00
                                                              .00
                                                              .00

                                                              .00
                                                              .00
                                                              .00
                                                                                            Year  month  day
                                                                  33. ACTION  DATE*.    19
                                                                                                34.         Year  month  day
                                                                                                STARTING
                                                                                                DATE     19
                                                  35. CONTACT  FOR  ADDITIONAL  INFORMA-
                                                      TION (Name and telephone number)
                                                          36.         Year  month  day
                                                          ENDING
                                                          DATE     19
                                                                                                                37. REMARKS ADDED
                                                                                                                   a
    38.

    FEDERAL AGENCY
    A-95 ACTION
         a. In taking above action, any comments received from clearinghouses were con-
         sidered. II agency response is due under provisions of Part 1, OMB Circular A-95,
         it has been or is being madt.
                                     b. FEDERAL AGENCY A-95 OFFICIAL
                                       (Name and telephone MO.)
EPA Form 5700-32 (Rev. 6-76)
                                                                        PAGE  1 OF 16
                                                                                        STANDARD FORM 424 PAGE 1 (10-75)
                                                                             PreeertW by GSA. Federal Mwoement Circular Tt-T

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                                                                                           OMB APPROVAL NO. 29-R0218
SECTION IV-MEMARKS (Please reference the proper item number from Sections I, II or III, if applicable)
EPA Form 5700-32 (Rev. 6-76)                              PAGE 2 OF 16               STANDARD  FORM 424 PAGE 2 (10-78)

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                                           GENERAL INSTRUCTIONS                OMB APPROVAL NO, 29-ROZIS
     This is a multi-purpose standard form. First, it will be used by applicants as a required facesheet for pre-
applications and applications submitted in accordance with Federal  Management Circular 74-7. Second, it will
be  used  by Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by
clearinghouses  in  accordance  with OMB  Circular A-95.  Third, it will be used by Federal agencies to notify
States of grants-in-aid  awarded in  accordance with  Treasury  Circular 1082. Fourth, it may be  used, on an
optional basis, as a notification of intent from applicants to clearinghouses, as an early initial notice that Federal
assistance is to be applied for  (clearinghouse procedures will govern).


                                  APPLICANT PROCEDURES FOR SECTION  I

     Applicant will complete all items in Section  I. If an item is not applicable, write "NA". If additional space is needed, insert
an asterisk "*", and use the remarks section on the back of the form. An explanation follows for each item:
Item

 1.      Mark appropriate box. Pre-application and  applica-
         tion guidance is in  FMC 74-7 and Federal agency
         program instructions. Notification  of intent guid-
         ance is in Circular A-95 and procedures from clear-
         inghouse. Applicant will not use "Report of Federal
         Action" box.

 2a.     Applicant's own control number, if desired.

 2b.     Date Section  I is prepared.

 3a.     Number assigned by State clearinghouse, or If dele-
         gated by  State,  by  areawide clearinghouse. All re-
         quests to Federal agencies must contain this identi-
         fier if the program is covered by Circular A-95 and
         required  by  applicable  State/areawide clearing-
         house procedures. If in doubt, consult  your clear-
         inghouse.

 3b.     Bate  applicant notified of clearinghouse identifier.

 4a-4h.  Legal name of applicant/recipient, name of primary
         organizational unit which will  undertake the assist-
         ance activity, complete address of applicant, and
         name and telephone number of person who  can pro-
         vide further information about this request.

 5.      Employer identification number of applicant as as-
         signed by Internal Revenue Service.

 6a.     Use Catalog  of Federal Domestic Assistance num-
         ber assigned to program under which assistance is
         requested. If more than  one program  (e.g., joint-
         funding) write "multiple"  and explain in remarks.
         If unknown, cite Public Law or U.S. Code.

 6b.     Program title from Federal Catalog.  Abbreviate if
         necessary.

 7.      Brief title  and appropriate description of  project.
         For notification of intent, continue in remarks sec-
         tion if necessary to convey propsr description.

 8.      Mostly self-explanatory. "City" includes town, town-
         ship  or other municipality.

 9.      Check  the  type(s) of assistance  requested. The
         definitions of the terms are:
         A. Basic  Grant.  An original   request for   Federal
           funds. This would not include any contribution
           provided under a supplemental grant.
         B. Supplemental Grant.  A request to increase  a
           basic grant in certain cases where  the eligible
           applicant cannot supply the required matching
           share of the basic Federal program (e.g., grants
           awarded by the Appalachian  Regional Commis-
           sion to provide the applicant a matching share).
         C. Loan.  Self explanatory.
(tern



10.




11.


12.
13.
14a.

14b.



15.
D. Insurance. Self explanatory.
E. Other. Explain on remarks page.
Governmental unit where significant and meaning-
ful impact could be observed. List only largest unit
or units affected, such as State, county, or city. If
entire unit affected, list it rather than subunits.

Estimated number of persons directly benefiting
from project.

Use appropriate codo letter. Definitions are:

A. New. A submittal for the first time for a new
   project.

B. Renewal.  An extension for an additional funding/
   budget period for a project having no projected
   completion date, but  for which Federal support
   must be renewed each year.
C. Revision.  A  modification to project nature or
   scope which may result  in funding change (in-
   crease or decrease).
D. Continuation.  An extension  for an additional
   funding/budget period for a project the agency
   initially agreed to fund for a definite number of
   years.
E. Augmentation.  A  requirement   for additional
   funds for a project previously awarded funds in
   the same funding/budget period. Project nature
   and scope unchanged.
Amount requested or to be contributed during the
first funding/budget period by  each contributor.
Value of in-kind contributions  will  be included. If
the action is a change in dollar amount of an  exist-
ing grant (a revision or augmentation), indicate
only the amount of the  change. For decreases en-
close the amount in parentheses. If both basic and
supplemental amounts  are included',  breakout  in
remarks. Kor multiple program funding, use totals
and show program breakouts in remarks. Item defi-
nitions: 13a, amount requested from Federal Gov-
ernment;  13b,  amount  applicant  will  contribute;
13c, amount from State, if applicant is not a State;
13d, amount from local  government, if applicant is
not a local government; 13e, amount from any other
sources, explain in remarks.
Self explanatory.
The  district(s) whcra most of  actual work will bo
accomplished. If city-wide  or State-wide,  covering
several districts, write "city-wide" or "State-wide."
Complete only for revisions (item 12c), or augmen-
tations (item 12e).
EPA Form 5700-32 (Rev. 6-76)
                                                       PAGE 3 OF 16
                 STANDARD FORM  424 PAGE 3  (10-75)

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item

16.
17.
18.
Approximate date project expected to begin (usually
associated  with  estimated  date of availability  of
funding).

Estimated number of months to complete project
after Federal funds are available.

Estimated date  preapplication/application  will be
submitted to Federal agency if this project requires
clearinghouse  review. If review not required, this
date would usually be same as date in item 2b.
item                        OMB APPROVAL NO. 29-R0218

19.      Existing Federal identification number if this is not
         a  new request and directly relates to a previous
         Federal action. Otherwise write "NA".

20.      Indicate  Federal agency to which this request is
         addressed. Street address not required, but do use
         ZIP.

21.      Check appropriate box as to whether Section IV of
         form  contains remarks and/or additional remarks
         are attached.
                                  APPLICANT PROCEDURES  FOR SECTION II
     Applicants will always complete items 23a, 23b, and 23c. If clearinghouse review is required, item 22b must be fully com-
pleted. An explanation follows for each item:
Item

22b.
23a.
List clearinghouses to which  submitted  and show
in appropriate blocks the status of their responses.
For more than three clearinghouses,  continue  in
remarks  section. All written comments  submitted
by or through clearinghouses must be attached.
Name and title of authorized representative of legal
applicant.
Item

23b.     Self explanatory.


23c.    Self explanatory.


Note:
                                                                     Applicant completes only Sections I and II. Section
                                                                     III is completed by Federal agencies.
                              FEDERAL  AGENCY  PROCEDURES FOR SECTION  III
     If applicant-supplied information in Sections I  and II needs no updating or adjustment to fit the final Federal action, the
Federal agency will complete Section III only. An explanation for each item follows:
(tern

24.      Executive department or independent agency having
         program administration responsibility.

25.      Self explanatory.

26.      Primary organizational unit below department level
         having direct program management responsibility.

27.      Office directly monitoring the program.

28.      Use  to identify non-award  actions where  Federal
         grant identifier in  item 30 is not applicable or will
         not suffice.

29.      Complete address of administering office shown  in
         item  26.

30.      Use  to identify award actions where different from
         Federal application identifier in item 28.

31.      Self  explanatory.  Use remarks section  to  amplify
         where appropriate.

32.      Amount to be contributed during the first funding/
         budget period by each contributor. Value of in-kind
         contributions  will  be  included.  If the action is a
         change in dollar amount of an existing grant (a revi-
         sion  or augmentation), indicate only the amount  of
         change. For decreases, enclose the amount in pa-
         rentheses. If both basic and supplemental amounts
         are included, breakout in remarks. For multiple pro-
         gram funding, use totals and show program break-
         outs  in remarks.  Item  definitions: 32a,  amount
         awarded by Federal Government; 32b, amount ap-
         plicant will contribute; 32c,  amount from  State, if
         applicant  is not a State; 32d, amount from local
         government if applicant  is not a  local government;
         32e,  amount from any  other sources, explain  in
         remarks.

 33.      Date action was taken on this request.

 34.      Date funds will become available.
                                                    (tern

                                                    35.


                                                    36.

                                                    37.
                                                    38.
         Name and telephone no. of agency person who can
         provide more information regarding this assistance.

         Date after which funds will no longer be available.

         Check appropriate box as to whether Section IV of
         form contains Federal remarks and/or attachment
         of additional remarks.

         For use with A-95 action notices only. Name and
         telephone of person who can assure that appropri-
         ate A-95 action  has been taken—If same as person
         shown in item 35, write "same". If not applicable.
         write "NA".
                                                     Federal Agency Procedures—special considerations

                                                     A.  Treasury Circular 1082 compliance.  Federal agency will
                                                        assure proper completion of Sections I and III. If Section I
                                                        is being completed by Federal agency, ail applicable items
                                                        must be filled in. Addresses of State Information Recep-
                                                        tion Agencies (SCIRA's) are provided by Treasury Depart-
                                                        ment to each agency.  This form replaces  SF 240,  which
                                                        will no longer be used.
                                                     B.  OMB Circular A-95  compliance. Federal agency will as-
                                                        sure proper completion of Sections I, II, and 111. This form
                                                        is  required for notifying all reviewing clearinghouses  of
                                                        major actions on all  programs  reviewed under  A-95.
                                                        Addresses of State and areawide clearinghouses are pro-
                                                        vided  by OMB to each agency. Substantive differences
                                                        between applicant's  request and/or clearinghouse recom-
                                                        mendations, and the  project  as finally awarded will  be
                                                        explained in A-95 notifications to clearinghouses.
                                                     C.  Special note. In most, but not all States, the A-95 State
                                                        clearinghouse and the (TC 1082) SCIRA are the same
                                                        office. In such cases, the A-95 award notice to  the State
                                                        clearinghouse will fulfill the TC 1082 award  notice  re-
                                                        quirement  to the  State  SCIRA.  Duplicate  notification
                                                        should be  avoided.
 EPA Form 5700-32 (Rev. 6-76)
                                                    PAGE 4 OF 16
                                                                      STANDARD FORM 424 PAGE 4 (10-75)

                                                                                    oTO— Id—83498— 1  opo

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                                                 PART II
                                   PROJECT APPROVAL INFORMATION
                                               SECTION A
                                                                                          Form Approved
                                                                                          OMB No. 158-R0134
 Item 1.
 Does this assistance request require State, local,
 regional, or other priority rating?
                                	Yes_
                                                    Name of Governing Body.
                                                    Priority Rating	
                                                _No
                                                     Name of Agency or
                                                        Board	
Item 2.
Does this assistance request require State, or local
advisory, educational or health clearances?
                               	Yes	No (Attach Documentation)

Item 3.
Does this assistance request require clearinghouse review  (Attach Comments)
in accordance with OMB Circular A-95?
                                         _Yes.
                                                .No
 Item 4.
 Does this assistance request require State, local,
 regional or other planning approval?
                                   	Yes
                                                    Name of Approving Agency .
                                                    Date	
 Item 5.
 Is the proposed project covered by an approved
 comprehensive plan?

                                   	Yes
                                                    Check one: State       D
                                                               Local       D
                                                               Regional    D
                                                .No Location of plan	
 Item 6.
 Will the assistance requested serve a Federal
 installation?
                                                    Name of Federal Installation	
                                                    Federal Population benefiting from Project.
                                         _Yes	No
 Item 7.
 Will the assistance requested be on Federal land
 or installation?

                                    	Yes-
                                                    Name of Federal Installation.
                                                    Location of Federal Land	
                                                    Percent of Project	
                                                .No
 Item 8.
 Will the assistance requested have an impact or effect    See instruction for additional information to be
 on the environment?                                 provided.
                                         _Yes.
                                                .No
 Item 9.
                                                    Number of:
 Has the project for which assistance is requested caused,   Individuals.
 since January 1, 1971, or will it cause, the displacement   Families	
 of any individual, family, business, or farm?              Businesses-
                                                       Farms	
                                    	Yes	No
 Item 10.
 Is there other related Federal assistance on this
 project previous, pending, or anticipated?
                                    	Yes_
                                                    See instructions for additional information to be
                                                    provided.
                                                _No
Item 11.
Is project in a designated flood hazard area?
                                        .Yes	No
EPA Form 5700-32 (Rev. 6-76)
                                                                                               PAGE 5 OP 16

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                                                       INSTRUCTIONS
                                                                                                        Form Approved
                                                                                                        OMB No. 158-R0134
                   PART II - SECTION A
Negative answers  will  not require an  explanation  unless the
Federal agency requests more information at a later date. Provide
supplementary data for all "Yes" answers in the space provided in
accordance with the following instructions.

Item 1 - Provide the name of the governing body establishing the
priority system and the priority rating assigned to this project.

Item 2 — Provide the name of the agency or board which issued
the clearance and attach the documentation of status or approval.

Item 3 — Attach the clearinghouse comments for the application
in  accordance  with  V.ie  instructions contained  in  Office  of
Management  and Budget  Circular No. A-95. If comments were
submitted previously with  a preapplication, do not submit them
again but any  additional  comments received from the clearing-
house should  be submitted with this application.

Item 4 — Furnish  the name of the approving  agency and the
approval date.

Item  5 — Show whether  the  approved  comprehensive plan  is
State, local or regional, or if none of these,  explain the scope  of
the plan. Give the location where the approved plan  is available
for examination and state whether this project is in conformance
with the plan.
Item 6 — Show the Federal population residing or working on the
federal installation who will benefit from this project.

Item 7 — Show the percentage  of  the project work that will be
conducted on federally  owned  or  leased land. Give the  name of
the Federal installation and its location.

Item 8 — Briefly describe the possible beneficial and/or harmful
impact on the environment because of the proposed project. If an
adverse  environmental impact is anticipated, explain what action
will  be taken  to  minimize the  impact. Federal  agencies  will
provide separate instructions if additional data is needed.

Item 9 — State the number of individuals, families, businesses, or
farms this project will  displace. Federal agencies will  provide
separate instructions if additional data is needed.

Item  10 - Show  the  Federal  Domestic  Assistance   Catalog
number, the program name, the  type of assistance,  the status and
amount of each project where there is related previous,  pending,
or anticipated assistance. Use additional sheets, if needed.

Itemll-Flood Insurance—Check "Yes" if project  or any nonex-
pendable property is to be located in a special  flood hazard area
designated by the Department of Housing  and Urban  Develop-
ment.  If the answer is "Yes" the grantee must purchase the
required flood insurance  if required pursuant  to  Item  7 of the
General Instructions to this application.
 EPA Form 5700-32 (Rev. 6-76)
                                                                                                                PAGE 6 OF 16

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                                                                                   Form Approved
                                                                                   OMB No. 158-R0134
                                           INSTRUCTION

                                        PART II-SECTION B
  11.  SITES AND IMPROVEMENTS:	Not required	Attached as exhibits
      Applicant intends to acquire the site through-
                 .Eminent domain	Negotiated purchase,	Other means (specify)
  12.  TITLE OR OTHER INTEREST IN THE SITE IS OR WILL BE VESTED IN:

      	Applicant,	Agency or institution operating the facility,	Other (specify]
  13.  INDICATE WHETHER APPLICANT/OPERATOR HAS:

     	Fee simple title,	Leasehold interest,	Other (specify)
 14.  IF APPLICANT/OPERATOR HAS LEASEHOLD INTEREST, GIVE THE FOLLOWING INFORMATION:
      a. Length of lease or other estate interest	, and number of years to run	
      b. Is lease renewable?	Yes	No
      c. Current appraised value of land $	
      d. Annual rental rate $	
 15.  ATTACH AN OPINION FROM ACCEPTABLE TITLE COUNSEL DESCRIBING THE INTEREST APPLICANT/]
      OPERATOR HAS IN THE SITE AND CERTIFYING THAT THE ESTATE OR INTEREST IS LEGAL & VALID!
  16.  WHERE APPLICABLE, ATTACH SITE SURVEY, SOIL INVESTIGATION REPORTS AND COPIES OF LAND APPRAISA1S._
 17.  WHERE APPLICABLE, ATTACH CERTIFICATION FROM ARCHITECT ON THE FEASIBILITY OF
      IMPROVING EXISTING SITE TOPOGRAPHY.
 18.  ATTACH PLOT PLAN.
 19.  CONSTRUCTION SCHEDULE ESTIMATES:	Not required	Being prepared	Attached as exhibits
      Percentage of completion of drawings and specifications at application date:
        Schematics	%      Preliminary	 %       Final	%
 20.  TARGET DATES FOR:
        Bid Advertisement	Contract Award.
        Construction Completion	Occupancy	
 21.  DESCRIPTION OF FACILITY:	.Not Required	Attached as exhibits
      Drawings — Attach any drawings which will assist in describing the project.
      Specifications — Attach copies of completed outline specifications.
   (If drawings and specifications have not been fully completed, please attach copies or working drawings that have been completed.)
       NOTE. ITEMS ON THIS SHfcET ARE SELF-EXPLANATORY, THEREFORE, NO INSTRUCTIONS ARE PROVIDED.
E PA Form 5700-32 (Rev. 6-76)                                                                  PAGE 7 OF 16

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                                                                                                 Form Approved
                                                                                                 OMB No. 158-ROI34
PART III - BUDGET INFORMATION - CONSTRUCTION
SECTION A -GENERAL
1. Federal Domestic Assistance Catalog No 	
2. Functional or Other Breakout 	


SECTION B - CALCULATION OF FEDERAL GRANT
Cost Classification
1. Administration expense
2. Preliminary expense
3. Land structures, right-of-way
4. Architectural engineering basic fees
5. Other architectural engineering fees
6. Project inspection fees
7. Land development
8. Relocation Expenses
9. Relocation payments to Individuals and Businesses
10. Demolition and removal
1 1 . Construction and project improvement
12. Equipment
13. Miscellaneous
14. Total (Lines 1 through 13)
15. Estimated Income (if applicable)
16. Net Project Amount (Line 14 minus 151
17. Less: Ineligible Exclusions
18. Add: Contingencies
19. Total Project Amt. (Excluding Rehabilitation Grants)
20. Federal Share requested of Line 19
21. Add Rehabilitation Grants Requested (WO Percent!
22. Total Federal grant requested (Line 20 & 211
23. Grantee share
24. Other shares
25. Total project (Lines 22, 23 & 24)
Use only for revisions
Latest Approved
Amount
$























$
Adjustment
+ or (-)
$























$
Total
Amount
Required
$























$
EPA Form 5700-32 (Rev. 6-76)
                                                                                                        PAGE 8 OF 16

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                                                      INSTRUCTIONS
                                                                                                       Form Approved
                                                                                                       OMB No. 158-0134
                          PART III
 Section A. General
    1.  Show  the Federal  Domestic Assistance  Catalog Number
       from which the assistance is requested. When more  than
       one program  or  Catalog  Number  is involved and  the
       amount cannot be distributed to the Federal grant program
       or catalog number on an overall percentage basis, prepare a
       separate set of Part III forms for each program or Catalog
       Number. However, show the total amounts for all programs
       in Section B of the basic application form.

    2.  Show  the functional  or  other categorical  breakouts, if
       required by the Federal grantor agency. Prepare a separate
       set of Part III forms for each category.

Section B. Calculation of Federal Grant

    When applying for a new grant, use the Total Amount Column
only. When requesting revisions  of previously awarded amounts,
use all columns.

Line  1 — Enter  amounts  needed  for administration expenses
including such items as travel, legal fees, rental of vehicles and any
other expense items expected to be incurred to administer the
grant. Include the amount of interest expense when authorized by
program legislation and also show this amount  under Section E
Remarks.

Line 2 — Enter amounts pertaining to the work of locating and
designing, making  surveys and maps, sinking test  holes,  and all
other work required prior to actual construction.

Line 3 — Enter amounts directly associated with the acquisition
of land, existing structures, and related right-of-way.

Line 4 — Enter basic fees for architectural engineering services.

Line  5 — Enter  amounts for  other architectural  engineering
services, such  as surveys, tests, and borings.

Line 6 — Enter fees for inspection and audit of construction and
related programs.

Line 7 — Enter amounts associated with the development of land
where the primary purpose of the grant is land improvement. Site
work normally  associated with  major construction should be
excluded from this category and shown on Line 11.

Line 8 — Enter the dollar  amounts needed to provide relocation
advisory assistance, and the  net amounts for replacement (Last
resort/  housing. Do  not  include  relocation  administration
expenses on this  Line; include them on Line 1.

Line 9 — Enter the estimated amount of relocation payments to
be made to displaced persons, business concerns and non-profit
organizations  for moving expenses and replacement housing.

Line 10 — Enter the gross salaries and wages of employees of the
grantee who will be directly engaged in performing demolition or
removal of structures from developed land. This line should show
also  the cost of demolition or  removal  of improvements on
developed land under a third party contract. Reduce the costs on
this line by  the amount of expected proceeds from the sale of
salvage, if so instructed by the Federal grantor agency. Otherwise,
show the proceeds on Line 15.

Line 11 — Enter amounts for the actual construction of, addition
to, or restoration of a facility. Also include in this category the
amounts of project improvements such as sewers, streets, land-
scaping and  lighting.

Line 12 — Enter amounts for equipment both fixed and movable
exclusive  of equipment  used  for construction.  For example,
include amounts for  permanently attached  laboratory  tables,
built-in audio visual systems, movable desks,  chairs, and  labora-
tory equipment.

Line 13 — Enter amounts for items not specifically mentioned
above.

Line 14 — Enter the sum of Lines 1-13.

Line  IS — Enter the estimated amount of program income that
will be earned during the grant  period and applied to the program.

Line  16 — Enter the difference between the amount on Line 14
and the estimated income shown on Line 15.

Line  17 — Enter amounts for  those items which are part of the
project but  not subject to Federal participation (See Section C,
Line 26g, Column (1) ).

Line   18 —  Enter  the  estimated  amount  for  contingencies.
Compute this amount  as  follows.  Subtract from the net  project
amount shown on  Line 16 the ineligible project exclusions shown
on Line  17  and  the amount  which is excluded  from  the
contingency provisions shown in Section C, Line 26g, Column (2).
Multiply the computed amount by the percentage factor allowed
by the grantor agency in accordance with  the Federal program
guidance. For  those  grants which provide for a fixed dollar
allowance in lieu  of  a percentage allowance, enter the dollar
amount of this allowance.

 Line 19 - Show the total amount of Lines 16, 17, and 18. (This is
 the  amount to  which the  matching share ratio prescribed  in
 program legislation is applied.)

 Line 20 — Show the amount of Federal funds requested exclusive
 of funds for rehabilitation purposes.

 Line 21 — Enter the estimated amounts needed for rehabilitation
 expense if  rehabilitation grants to individuals are  made for which
 grantees  are  reimbursed 100 percent  by the  Federal  grantor
 agency  in  accordance with program  legislation.  If  the  grantee
 shares in part of this expense  show the total  amount on  Line  13
 instead of on Line 21 and explain in Section E.

 Line 22 — Show the total amount of the Federal grant requested.

 Line 23 - Show the amount from Section D, Line 27h.

 Line 24 — Show the amount from Section D, Line 28c.

 Line 25 — Self-explanatory.
EPA Form 5700-32 (Rev. 6-76)
                                                                                                              PAGE 9 OF 16

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                                                                                           Form Approved
                                                                                           OMB No. 158-R0134
SECTION C - EXCLUSIONS
26
Classification
a.
b.
c.
d.
e.
f.
9-
Total*
Ineligible for
Participation
(1)
$





$
Excluded from
Contingency Provision
(2)
$





$
SECTION D - PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE
27. Grantee Share
a Securities
b. Mortgages
c. Appropriations
(By Applicant)
d. Bonds
e. Tax Levies
f. Non Cash
g. Other (Explain)
h. TOTAL - Grantee share
28. Other Shares
a. State
b. Other
c. Total Other Shares
29. TOTAL
$












$
SECTION E - REMARKS

EPA F«rm 5700-32 (R.v. 6-76)     PART IV PROGRAM NARRATIVE (Attach-See Instructions)
PAGE 10 OF 16

-------
                                                        INSTRUCTIONS
                                                                                                        Form Approved
                                                                                                        OMB No. 158-R0134
                          PART III
  Section C. Exclusions
  Line 26 a-g — Identify and list those costs in Column (1) which
  are  part  of  the project cost  but are not  subject to  Federal
  participation  because of  program legislation or Federal  grantor
  agency instructions. The total amount on Line g should agree with
  the  amount shown on Line 17 of Section B. Show in Column (2)
  those project costs that  are subject to Federal participation but
  are  not eligible for  inclusion in  the amount used to compute
  contingency  amounts as  provided  in the Federal grantor agency
  instructions.

  Section D. Proposed Method of Financing Non-Federal Share

  Line 27 a-g — Show the  source of the grantee's share. If cash is
  not  immediately available, specify the actions completed  to date
  and  those actions remaining to make cash available under Section
  E Remarks. Indicate also the period of time that will be required
  after execution  of the grant agreement to obtain the funds.  If
  there is a noncash contribution, explain what  this contribution
  will  consist of.
Line 27 h — Show the total of Lines 27 a-g. This amount must
equal the amount shown in Section B, Line 23.

Line 28 a — Show the amount that will be contributed by a State
or state agency, only  if the applicant  is not a State or state
agency. If  there is a  noncash contribution, explain what the
contribution will consist of under Section E Remarks.

Line 28 b — Show the amount that will be contributed from other
sources.  If there is a  noncash contribution, explain what this
contribution will consist of under Section E Remarks.

Line 28 c — Show the  total of Lines 28a and 28b. This  amount
must be the same as the amount shown in Section B, line 24.

Line 29 — Enter the totals of Line 27h and Line 28c.
Section E. Other Remarks

Make any remarks pertinent to the project and provide any other
information required by these instructions or the grantor agency.
Attach additional sheets, if necessary.
EPA Form 5700-32 (Rev. 6-76)
                                                                                                              PAGE 11 OF 16

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                                        PART IV-NARRATIVE STATEMENT

                        CONSTRUCTION GRANTS FOR WASTEWATER TREATMENT WORKS
                                                                                                          Form Approved
                                                                                                          OMB No. 158-R0134
Section A.  Introduction
    Construction of federally financed waste treatment works
 generally is 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
 treatment works. An application  must be submitted to the State
 agency for each proposed treatment works. The basic application
 shall meet the requirements for the project set forth in Section B.
 Submissions  required  for  subsequent related projects shall be
 provided in the form of amendments to the basic application. Each
 such  submission shall be submitted  through the State  agency,
 must be complete, and must relate to a project for which priority
 has been  determined  by the State agency.  If any information
 required has been furnished with an earlier application, the
 applicant need only incorporate by reference and, if necessary up-
 date or revise such information utilizing the previously approved
 application. Prior to completion of an application applicants should
 be thoroughly familiar  with all EPA grant regulations which apply
 to this program.
 Section B. Application Requirements

 1.  For all grant applications or amendment (Step 1, 2, or 3) iden-
 tify,by the National Pollution Discharge Elimination System
 (NPDES) permit discharge name and number, as appropriate, all
 publicly owned treatment works  that will be included within the
 work scope for which  grant assistance is being requested.

 2.  Project for facilities plan and related elements required to
 apply for Step 2 grant assistance (Step 7). An application for
 a grant for Step 1 shall include.

   a.  A  plan of study presenting  (i) the proposed planning
      area; (ii) an identification of the entity or entities that
      will  be conducting the  planning, (in) the nature and
      scope  of the  proposed Step 1  project,  including a
      schedule for the completion of specific tasks, and  (iv)
      an  itemized description  of the estimated costs for  the
      project. (See 40CFR  35.917).

   b. Proposed subagreements,  or an  explanation  of  the
      intended  method of  awarding subagreements  for per-
      formance of  any  substantial portion  of  the  project
      work

   c.  Required comments  or approvals  of  relevant State,
      local, and Federal agencies  {including "clearinghouse"
      requirements of OMB Circular A-9S).

 3.  Project for  preparation of construction  drawings and
 specifications (Step 2).  An application  for a grant or grant
 amendment  for preparation  of  construction drawings and
 specifications shall include-

   a. A facilities plan  (including an environmental assess-
      ment in accordance with 40 CFR Part 6) in  accord-
      ance with  40 CFR  35.917 through  35.917-9. The
      description of the treatment works for  which con-
      struction drawings and  specifications  are to  be pre-
      pared  shall  include  cost  estimates for  design and
      construction tor the treatment works, and a schedule
      for completion of the design and construction. It shall
      indicate the planned division of all the work to be
      encompassed by the  Grant, i.e., completing the plan-
      ned treatment works,  (Step 2 and Step 3) including
      any segmenting  or phasing,  into  projects for which
      applications for amendment  of  the basic application
      will be submitted. Cost estimates shall be provided for
      each such project as well as the  total estimate for the
      treatment works using  the format provided on Page 13
      of this  application  form. Month  and year of cost
      estimate preparation shall be included.
   b. Satisfactory  evidence  ot  compliance  with  the  user
      charge provisions of 40 CFR 35.925-11 and 35.935-13.

   c. Satisfactory evidence of compliance with the industrial
      cost recovery provisions of  40 CFR  35.925-12, 35.928,
      and 35.935-13, if applicable.

   d. A statement regarding availability of the proposed site,
      if relevant.

   e. Satisfactory  evidence  of  a proposed or existing  pro-
      gram  for compliance  with the  Relocation and Land
      Acquisition Policies Act of 1970 in  accordance with 40
      CFR 30.403'd) and 40 CFR Part 4, if applicable.

   f. Satisfactory evidence of compliance with  other appli-
      cable Federal statutory  and  regulatory  requirements
      (see 40  CFR Part 30, Subpart C).

   g  Proposed  subagreements  or  an  explanation  of the
      intended method of awarding subagreements for per-
      formance  of  any substantial portion of  the  project
      work.

   h. Required  comments or approvals of relevant State.
      local, and  Federal agencies (including "clearinghouse"
      requirements of OMB  Circular A-95) if a grant applica-
      tion has not been previously submitted

4. Project for building and  erecting of  a treatment  works
(Step 3). An application for a grant  or grant amendment for
the building and  erection of a treatment works shall include
(a) the items in paragraph  (2) of  this section, (b) two sets of
the construction  drawings and  specifications,  suitable for
bidding  purposes, and  (c) a schedule  for  or  evidence of
compliance  with  40   CFR  35.925-10 and  35.935-12
concerning an operation and  maintenance  program, must
have been furnished. It shall also include cost  estimates for
the completion of construction of the  treatment works with
an affirmation of their current validity and a schedule for the
completion of construction. The  format provided on Page 13
of this application form will be used.

5. Training  Facility Project. An application for assistance for
construction of a training facility pursuant to Section 109(b)
of the  Act shall include (a)  a statement concerning the
suitability  of  the  treatment  works facility  for  training
operation and maintenance  personnel for treatment works
throughout one or more  States;  (b) a written commitment
from the State agency or agencies to carry out at such  facility
a   program   of   training  approved   by  the  Regional
Administrator; and  (c)  an engineering  report,  including
facility  design data, cost estimates for design and construc-
tion of  the facility, and a schedule for completion of design
and construction.
EPA  Form 5700-32 (Rev. 6-76)
                                                                                                               PAGE 12 OF 16

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                                                                                                          Form Approved
                                                                                                          OMB No  15S-R0134
SUMMARY OF COSTS OF PLANNED TREATMENT WORKS
SCHEDULED BY PROJECT AND CATEGORY
(Read instructions on reverse before completing form)
1.
2.
3.
H 1
SS &
PS
r
4.
5.
6.
7.
8.

PROJECT STEP
ESTIMATED CALENDAR QUARTER/
YEAR APPLICATION WILL BE SUBMIT-
TED TO EPA FOR FUNDING
Cl'^,."'7!''^"'*'4"^'"^1?"!? < ••' -*1
a. CATEGORY 1
Secondary Treatment and BFWTT
b. CATEGORY II
More Stringent Treatment
c. CATEGORY IMA
Infiltration/Inflow Correction
d. CATEGORY 1MB
Major Sewer System Rehabilitation
e. CATEGORY IVA
New Collectors, etc.
f. CATEGORY IVB
New Interceptors, etc.
g. CATEGORY V
Correctionof Combined Sewer Overflows
h. CATEGORY VI
Treatment and/or Control of
Stormwaters
T™-», ^OT a. PREVIOUSLY
TOTAL COST FUNDED
OF STEP 2
AND STEP 3 . „. fl.,Mcn
PROJECTS b" PLANNED
TOTAL ESTIMATED COST OF ALL
PLANNED BUT UNFUNDED PROJECTS
TO BE INCLUDED IN THE ENTIRE
GRANT
STEP 1 PROJECT COST
PROJECT NO. C -0
*a.
PROJECT
SEQUENCE
STEP

$








$
$
MUNICIPALITY (Applicant):
b.
PROJECT
SEQUENCE
STEP

$








$
$
c.
PROJECT
SEQUENCE
STEP

$








$
$
d.
PROJECT
SEQUENCE
STEP

$








$
$
J-"""-- , '' * * f f- '--
' * * ' '' ; '= '
APPLICANT'S
APPLICATION NO.
C- -0

c.
TOTAL ALL
PROJECTS
i
^
$








$
*- /
$
# *
$
COST ESTIMATES OF PLANNED PROJECTS WERE COMPUTED AS OF AND REFLECT THE LATEST
(MONTH AND YEAR)
CONSTRUCTION COST INDEX OF AS REPORTED BY THE ENGINEERING NEWS RECORD.

9a. ESTIMATES PREPARED/VERIFIED BY 9b. REVIEW AND APPROVAL BY STATE AGENCY
NAME (Please print)
DATE NAME (Please print)
DATE
ORGANIZATION ORGANIZATION
TELEPHONE AREA CODE j NUMBER SIGNATURE
NUMBER 1 j
SIGNATURE
9c. REVIEW AND APPROVAL BY EPA REGIONAL OFFICE
NAME (Please print)
DATE
JP^>.. *"^'* 'fy^-.-f^s >^^ ~ ' w •• ^ ^ '*• \ •  SIGNATURE
m".^A:fl^^l '*.>.* -yi:-\.K . , , *• * ;
* The Step 1 project, if any, will be reported on line 7.
** If no Step 1 project was funded by EPA, insert N/A.
EPA Form 5700-32 (Rev. 6-76)
                                                                                                                PAGE 13 OF 16

-------
                                                                                                                     Form Approved
                                                       GENERAL INSTRUCTIONS                                  OMB No. 1S8-K0134

    Provide the actual or estimated costs for the design and construction projects to complete the Treatment Works as planned. Indicate the planned
    division of the work to be encompassed by the Grant into projects, i.e., the Step Two  project for preparation of construction drawings and
    specifications, and the Step Three project for construction. Identify any recommended segmenting or phasing of design or construction into additional
    Step Two or Step Three projects. Use additional pages if the number of Step Two and Step Three projects being recommended exceeds four. If one or
    more recommended Step Two or Step Three projects would be carried out by a  municipality other than the municipality funding the Step One
    facilities planning, show that project(s)  on a separate page.



                                                        SPECIFIC INSTRUCTIONS

ITEM(S)

   1        If the first project funded by EPA was for  Facilities Planning  (Step  One),  report it on line 7. The second project would
            normally be for preparation of construction drawings and specifications, etc. Enter any project sequence  numbers the State has
            assigned.

            ITEMS 2  THRU 5 REQUIRE  INFORMATION ON FUNDED OR PLANNED PROJECTS IN  CHRONOLOGICAL
            SEQUENCE LEFT TO RIGHT.

   2        Enter the step of each project funded or planned.

   3        Enter the date (calendar quarter/year) when the application for each  recommended project on a State  Project Priority List is
            scheduled to be submitted to EPA. If  a project has already  been funded by EPA or is not on the approved  State Project
            Priority List, insert "N/A."

  4a-h       Enter the actual or estimated cost of each project  identified by category of work.

   5        Enter the total actual or estimated cost of each project.

   6        Enter the total estimated cost of all planned but unfunded  projects to be included in this entire grant (sum of S.b.  columns A
            through D).  Exclude the estimated  cost of the project which is the subject of this application.

   7        Enter the EPA Identification Number of the Step One, Facilities Planning, project, if any, for this grant. Enter the total cost of
            the Step One project.

   8        Enter the  date (month/year)  upon  which estimated costs are based and the appropriate Construction Cost Index for that
            month as reported in the Engineering News Record.

  9a.       Insert name, date, organization, phone and signature of responsible individual on applicant's or consultant's staff who may be
            contacted regarding estimates.

   b.       Insert name and organization  of State official responsible for review of this application.

   c.       Insert name of EPA individual  responsible for  programmatic review of the project covered by this application.


                                                               DEFINITIONS
 CATEGORY

    I        Secondary Treatment and Best Practicable Waste  Treatment Technology (BPWTT), including costs for higher levels of BOD
            and suspended solids removal,  without a requirement for removal of other constitutents.

    II       Advanced  waste treatment, including removal  of one or more of the following: phosphorus, nitrogen, nitrate chemical oxygen
            demand, total organic  carbon, pesticides, heavy metals,  etc.  Also included are polishing lagoons which temporarily retain
            effluents from secondary treatment  facilities.

    IIIA    Correction of Infiltration/Inflow Conditions, including cost of the I/I  analysis and evaluation, together with all costs necessary
            for removing excessive I/I from the sewer system, such as replacement or relining sewer sections, flow routing systems, etc., and
            including the treatment plant  component costs specifically required to treat I/I  flows  which cannot  be reduced in a  cost
            effective manner.

    IIIB    Replacement or  major rehabilitation of  sewers,  where  it  has been  determined that  such replacement  or rehabilitation is
            necessary to the total integrity  and  performance of the wastewater treatment works.

    IVA    New  collectors, including sewers,  force mains  and  pumping stations which perform  the complete collector sewer function.

    IVB    New interceptors, including sewers, force mains and pumping stations which perform the complete interceptor sewer function.

    V       Correction of combined sewer overflows  including costs for  evaluating alternative  methods of correcting such overflows  and  the
            cost of new collectors, interceptors, storm sewers,  retention basins, etc.. necessary to alleviate the  overflow problem.

    VI      Treatment and/or control of stormwaters, including the costs of abating pollution from stormwater runoff channelled  through
            sewers and  other conveyances used only  for such run-off.  Costs of abating pollution from stormwater channelled through sewers
            which also carry sewage are included in  Category  V.


 EPA Form  57
-------
                                                                                             Form Approved
                                                                                             OMB No. 158-R0134
                                                       PART V

                                                    ASSURANCES
 The applicant  hereby assures and  certifies that he will comply with  the  regulations, policies, guidelines and requirements,
 including Office of Management and Budget Circular No. A-95, and FMCs 74-4 and 74-7, as they relate to th« application,
 acceptance  and use of Federal funds for this federally-assisted  proiect  Also, the applicant gives assurance and certifies with
 respect to the grant that
 1   It possesses legal authority to apply for the grant, and to
 finance and  construct the proposed facilities,  that a resolu-
 tion, motion or  similar action has been  duly adopted or
 passed as an official act of  the applicant's governing body,
 authorizing  the   filing  of  the  application,  including  all
 understandings and  assurances contained  therein, and direct-
 ing  and authorizing the  person  identified  as the  official
 representative of the applicant  to act in connection with the
 application  and to  provide  such  additional information as
 may be required

 2.  It will  comply with the provisions of   Executive Order
 17296,  reiat/ng to evaluation of flood hazards

 3   It will  have  sufficient   funds  available  to  meet  the
 non-Federal  share  of  the cost  for  construction  projects
 Sufficient  funds  will  be  available  when   construction is
 completed to assure effective operation and  maintenance of
 the facility for the purposes constructed

 4.  It will obtain dpproval  by the appropriate Federal agency
 of  the final  working drjwmgs  and specifications before the
 project  is advertised  or placed on the market for bidding, that
 it  will construct the project, or cause it to be constructed, to
 final  completion  in accordance  with the  application  and
 approved plans  and specifications, that it will submit to the
 appropriate Federal agency for prior approval changes that
 alter  the costs  of the  project,  use of space,  or functional
 layout,  that  it will not enter into  a construction contract(s)
 for  the  project  or undertake  other  activities  until  the
 conditions of the construction grant program(s) have been
 met.

 5.  It will  provide  and maintain  competent and adequate
 architectural engineering supervision and  inspection at the
 construction site to insure  that the completed work conforms
 with  the  approved  plans and specifications,  that  it  will
 furnish  progress  reports and  such other  information as the
 Federal grantor agency may require

 6   It will  operate and  maintain the facility in accordance
 with  the minimum  standards  as  may be required  or pre-
 scribed  by the applicable Federal, State and local agencies for
 the maintenance and operation of such facilities

 7.  It will  give   the grantor  agency and  the  Comptroller
 General through any authorized representative  access to and
 the right to examine all records, books, papers,  or documents
 related to the grant

 8   It will require the facility  to be designed  to comply with
 the "American Standard Specifications for Making Buildings
 ana Facilities Accessible  to, and  Usable  by, the Physically
Handicapped," Number A117.1-1961, as modified (41 CFR
101-19 603)   The applicant  will be  responsible for con-
ducting insoections to insure compliance with thcsa specifica-
tions by the contractor.

9. It will  cause work on the project to be commenced within
a  reasonable  time after  receipt of notification  from  the
approving Federal agency that funds have been approved and
that  the  protect will  be prosecuted   to  completion with
reasonable diligence.

10  It will  not  dispose of or  encumber  its  title or other
interests in the site and facilities during  the period of Federal
interest or while the Government holds bonds, whichever  is
the longer

11   It will comply with Title VI of the Civil Rights Act of
1964 (P L "88 352) and in accordance with Title VI of that
Act,  no person in the United States shall,  on the ground of
race, color, or national origin, be excluded from participation
in, be denied the benefits of, or be otherwise subjected to
discrimination under any program or activity for which  the
applicant  receives Federal financial assistance and will imme-
diately  take  any  measures   necessary  to  effectuate  this
agreement.  If any  real  property  or   structure  thereon  is
provided  or  improved  with  the  aid  of  Federal  financial
assistance extended  to  the  Applicant, this  assurance shall
obligate the Applicant, or  in the case of any transfer of such
property,  any transferee, for the period during which the  real
property  or  structure is  used for a purpose for which  the
Federal  financial  assistance   is  extended  or  for  another
purpose involving the provision of similar services or benefits

12  It will establish safeguards to prohibit employees from
using  their positions for a  purpose  that is or  gives  the
appearance of being motivated by a desire for private gain for
themselves or  others, particularly those with whom they have
family, business,  or other ties

13  It will comply with the requirements of Title II and Title
III  of the Uniform Relocation Assistance and Real Property
Acquisitions  Act of 1970 (P L  91-646) which provides for
fair  and equitable treatment of persons displaced as a result
of Federal and federally assisted programs

 14.  It will comply  with all requirements imposed  by  the
 Federal  grantor  agency concerning special requirements of
 law, program requirements,  and other  adminittrative re-
 quirements approved in accordance with FMC 7.

 15. It will comply with the Provisions t>f th« Hatch Act
which limit  the political activity  of  employ***.
                                                                                                    (Continued on Back)
EPA Form 5700-32 (Rev. 6-76)
                                                                                                       PAGE 15 OF  16

-------
                                                                                             Form Approved
                                                                                             OMB No. 158-R0134

16. It will  comply  with  all applicable requirements of     be otherwise subjected to discrimination under any program
Section 13  of the  Federal  Water Pollution  Control  Act     or activity  under the said Federal Water Pollution Control
Amendments of 1972 (P.L. 92-500), if the grant is available     Act Amendments for which the applicant received financial
under any grant authority of that Act, which provides that     assistance and will take all necessary  measures to effectuate
no person in the United States shall, on the ground of sex be     this agreement.
excluded from  participation in, be denied the benefits of, or
EPA. Form 5700-32 (Rex. 6-76)                                                                          PAGE 16 OF 16

-------
4
4
COST OR PRICE SUMMARY FORMAT FOR SUBAGREEMENTS UNDER U.S. EPA GRANTS Form Approved
(See accompanying instructions before completing this form) OMB No. 158-R0144
L PART (-GENERAL
M. GRANTEE
3. NAME OF CONTRACTOR OR SUBCONTRACTOR
5. ADDRESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP code)
2. GRANT NUMBER
4. DATE OF PROPOSAL
6. TYPE OF SERVICE TO BE FURNISHED
PART II- COST SUMMARY
7. DIRECT LABOR ("Specify labor categories)






DIRECT LABOR TOTAL:
8. INDIRECT COSTS (Specify indirect cost pools)


.
A INDIRECT COSTS TOTAL:
ESTI-
MATED
HOURS







RATE



* . * ^
HOURLY
RATE
$






x BASE =
$


^ j_^ :;$r
ESTIMATED
COST
$






ESTIMATED
COST
$


j, '^'^, '' * ,/.<; / v \
^9. OTHER DIRECT COSTS
1
3. TRAVEL
(1) TRANSPORTATION
(2) PER DIEM
TRAVEL SUBTOTAL:
b. EQUIPMENT, MATERIALS, SUPPLIES (Specify categories)




EQUIPMENT SUBTOTAL:
AJ>.?£££i
QTY





•^?/A^^l&&%-<^&'*?°?
COST
$



' , "- •
c. SUBCONTRACTS



SUBCONTRACTS SUBTOTAL:
•• vl. o , ' •• ' ""' •- ' , i =•„% '•^^
d. OTHER (Specify categories)


OTHER SUBTOTAL:
L^ e.! OTHER DIRECT COSTS TOTAL:
^ ; ''
-. :, "."}v
•V^-~>3s|f|
,-i»v s- , •„ v °yr
*'V™ * ;> v * v^:^ ^<' ^
ESTIMATED
COST
$
$
$
ESTIMATED
COST
$




ESTIMATED
COST
$


$
ESTIMATED
COST
$

$

H, TOTAL ESTIMATED COST
j 1 1. PROFIT
) 12. TOTAL PRICE
TOTALS

'^ ^SS^" ^ ' .- "jt' "••;"<*'.&&•',
$
.\- '•' ' ." , . -'- - « ~- -SS
- &m
$
''•-.:
t?<~^ '
?^K%:^'"-' '--
Sf:?;< -'-- -'-' /-
"i'j'--^ ,'--•'.-' ,'f. > T " »
• °,y .•"<*' '\ ,,
'|,k^°"^;t^"S%T S«;;;: »>•'••
iSfill^Si::-'
' V'V>?\ ^'r/*^_
$
$
$
$
   E PA  Form 5700-41  (2-76)
                                                                                                                                PAGE 1  OF 5

-------
                                                                                                      K.orm Appr"i?ed
                                                                                                      OMB JVoi f58-R0144
                                            PART III -PRICE SUMMARY
 13
COMPETITOR'S CATALOG LISTINGS, IN-HOUSE ESTIMATES, PRIOR QUOTES
                 (Indicate basis for price comparison)
MARKET
PRICE(S)
PROPOSED
  PRICE
                                            PART IV-CERTIFICATIONS
 14. CONTRACTOR
 I4a. HAS A FEDERAL AGENCY OR A FEDERALLY CERTIFIED STATE OR LOCAL AGENCY PERFORMED ANY REVIEW OF YOUR
     ACCOUNTS OR RECORDS IN CONNECTION WITH ANY OTHER FEDERAL GRANT OR CONTRACT WITHIN THE PAST TWELVE MONTHS'

     I  | YES   |  |  NO (11 "Yes" give name address and telephone number of reviewing office)
 14b .THIS SUMMARY CONFORMS WITH THE FOLLOWING COST PRINCIPLES
 14c.
     This proposal is submitted for use in connection with and in response to (1)_
                                                                 . This is to certify to the best of my knowledge
     and belief that the cost and pricing data summarized herein are complete, current,, and accurate as of
                                                                                                            t
     (2)j	and that a financial management capability exists to fully and accu-
     rately account for the financial transactions under this project. I further certify that I understand that the
     subagreement price may be subject to downward renegotiation and/or recoupment where the above cost and
     pricing data have been determined, as a result of audit,, not to have been complete, current and  accurate as
     of the date  above.
   (3)
               DATE OF EXECUTION
                                                                           SIGNATURE OF PROPOSER
                                                                              TITLE OF PROPOSER
  14. GRANTEE REVIEWER
     I certify that I have reviewed the cost/price summary set forth herein and the proposed costs/price appear
     acceptable for subagreement award.
               DATE OF EXECUTION
                                                                           SIGNATURE OF REVIEWER
                                                                              TITLE OF REVIEWER
  16. EPA REVIEWER (It applicable)
              DATE OF EXECUTION
                                                                          SIGNATURE OF REVIEWER
                                                                              TITLE OF REVIEWER
                                                                                                           4
EPA Form 5700-41 (2-76)
                                                                                                           PAGE 2 OF 5

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                                                                                                                  Form Approved
                                                                                                                  OMB No. 1S8-K0144
                                                              INSTRUCTIONS
    In completing this form, CAREFULLY READ AND FOLLOW ALL
INSTRUCTIONS.  Many  items  are not  self-explanatory.  Attach
 additional sheets if necessary.

    Use only the applicable portions of this form:

    Part I is applicable to all subagreements.
    Part II is applicable to all subagreements requiring a cost review
    pursuant to EPA grant regulations.
    Part III is applicable to all subagreements where review is based
    on price comparison (i.e., price analysis).
    Part IV  certifications will  be executed  as  required  by  the
    regulations and by the instructions for each  block.

                     PART I  -  GENERAL

 Item 1 - Enter the name  of the grantee as  shown on the grant
 agreement.
 Item 2 - Enter the grant identification number shown on the grant
 agreement (or assigned to the project, if no grant agreement has yet
 been executed).
 Item 3 - Enter the name of the contractor or subcontractor with
 whom the subagreement is proposed to be executed.
 Item 4 - Enter the date of the contractor's or subcontractor's
 proposal to the grantee.
 Item 5 - Enter the full mailing address of the  contractor  or
 subcontractor.
 Item 6 - Give a brief description of the work to be performed under
 the proposed subagreement.

                 PART  II   - COST SUMMARY

    This portion of the form is to be completed  by the contractor (or
 his subcontractor) with whom a subagreement  is proposed to  be
 executed, unless  that  subagreement  is  a  formally  advertised,
 Competitively bid, fixed price contract.

    Nothing  in the following discussions should be interpreted  as
 recommending the inclusion as direct costs any items normally
 treated as overhead costs in the firm's accounting or estimating
 system

    40  CFR  30.710 contains general cost principles applicable to
 subagreements  under EPA grants. Pursuant to that section,  all
 subagreements awarded to profit-making  organizations are  subject
 to the cost  principles  of 41 CFR  1-15.2. Architect-engineer and
 construction contracts are subject also to 41 CFR 1-15.4

 Item 7 - Direct Labor

    Direct labor costs normally include salaries at a regular time rate.
 Overtime  premiums  should  be  identified  separately  on  an
 attachment Incurrence of unanticipated overtime costs requires the
 approval of the grantee at the time  of  incurrence  If significant
 overtime is known to be needed at the time of completion of the cost
 review form,  the reasons therefor, labor categories, rates and hours
 should be identified on an attachment. Also included is the cost of
 partners' or principals' time  when they are directly engaged in
 services to be rendered under the contract In case the full time of
 any employee is not to be devoted to work to be performed under the
 contract,  only the  cost of actual time to be applied should  be
 included. The compensation  of a partner or  principal shall  be
 included as direct cost only for the time  that he is expected to be
 engaged directly in the performance of work under the contract and
 only if it is the firm's normal practice to charge such time directly to
 all jobs  The rate of compensation of a partner or principal shall be
 commensurate with the cost of employing another qualified person
 to do such work, but the salary portion shall not exceed the actual
^alary rate of the individual concerned  Distribution of profits shall
   ytbe included in the rate of compensation.
   Enter in  block  7 the categories of professional or technical
personnel necessary to perform each major element of work under
the contract scope  of  services.  Estimate man-hours for  each
category and extend them by the wage rates to be paid during the
actual  performance  of  the work  Current  rates, adjusted for
projected increases, if any, should be used for the actual categories
of labor contemplated. All projected increases should be supported
by recent experience or established personnel policy.

   Enter in the far right column the total estimated direct labor cost

   Supporting records  to  be maintained  by the contractor and
which must be submitted or made available to the grantee or EPA
upon request include:

   a.   The method of estimating proposed man-hours.

   b.    The computation technique used in  arriving at proposed
        labor rates

   c.    The specific  documents, books, or other records used as
        factual source material to develop proposed man-hours and
        labor rates

   d.    Detailed  rate computations which were used in computing
        the information submitted on the form

   If  in  block 14a,  the contractor has  checked  "No,"  a  brief
narrative description of  the methods  used in arriving at items a
through d above shall be included on an attached sheet.

Item 8 - Indirect  Costs

   Indirect costs may consist of one or more pools  of expenses
which are grouped on the basis of the benefits accruing to the cost
objectives represented by the distribution base or bases to which
they are a/located. Since accounting practices  vary,  the use  of
particular groupings is  not required.  Neither is the use of any
particular allocation base mandatory. However, it is mandatory that
the method used results in an equitable allocation of indirect costs to
the cost objectives which they support

   Normally, the firm's accounting system and estimating practices
will determine the mthod used to allocate overhead costs  The firm's
established  practices,  if  in  accord  with   generally accepted
accounting principles and PROVIDED THEY PRODUCE EQUITABLE
RESUL TS IN THE CIRCUMSTANCES,  will generally be accepted.
Proposed overhead rates should represent the firm's best estimate
of the rates to be experienced during the contract period.  They
should be based upon recent experience and be adjusted for known
factors which will influence experienced trends.

   Common overhead groupings are overhead on direct labor and
general and administrative expenses  The first grouping usually
includes employment taxes,  fringe benefits, holidays, vacation, idle
time, bonuses, etc., applicable to direct labor.  The second generally
includes the remaining costs which because of their incurrence for
common or joint objectives  are not readily subject to treatment as
direct costs It is expected, however,  that proposal groupings will
correspond with  the firm's normal method of accumulating indirect
costs, (Under some accounting systems, the first grouping would be
included instead under item  7.) No special categorization is required
provided the results are realistic and equitable.

   Direct salaries  are the normal distribution base for overhead
costs,  but in  some circumstances other bases  produce  more
equitable results As in the  case of overhead costs groupings, the
method to be used will depend upon the firm's normal practices and
the equity of the results produced in the circumstances.
 EPA  Form 5700-41 (2-76)
                                                                                                                        PAGE 3 OF 5

-------
                                                                                                                   Form
                                                                                                                   OMB No. 158-R01f4
    In the case of multi-branch firms, joint ventures or affiliates, it is
 expected that overhead costs applicable to the specific location(s)
 where work is to be performed will be proposed. Company-wide,
 joint venture, or affiliate rate averages may not be appropriate. The
 rates should be tailored to the work  locations. The objective is to
 allocate overhead costs more precisely.

     The rate proposed should be based on cost data from the most
 recent fiscal periods updated to reflect changes in volume of
 business or operations.

    Enter in block 8 the indirect cost pools normally used by the firm
 for allocation of indirect costs. Enter the  indirect cost rate for each
 pool and extend each one by the rate base to which it applies to
 arrive at the estimated indirect costs to be incurred during the actual
 performance of the work. If the direct labor total from block 7 is not
 used as the rate base for any of the indirect cost pools, the rate base
 used must be explained on an attached sheet.

    A  brief narrative statement  outlining the firm's  policies and
 practices for accumulating  indirect costs and the method used to
 compute the proposed rate or rates shall  accompany the form.
 Include comment on the firm's policies  regarding the pricing and
 costing of  principals' time.  The normal accounting treatment of
 principals' salaries, the annual amounts, and the hourly charge rate,
 if used, should be discussed.

    Enter in the far right column the total estimated indirect costs.

    Supporting  records to  be maintained by the contractor and
 which must be submitted or made available to the grantee or EPA
 upon request include.

    a.    Detailed cost data  showing overhead accounts, allocation
         bases,  and  rate computations  for  the preceding  fiscal
         period  If more than six months of the current fiscal period
         have elapsed, cost  data for this  period should be included
         as one of the three periods.

    b.   Company budgets,  budgetary cost data, and overhead rate
         computations for future penod(s).
  Item 9 - Other Direct Costs

     The following items are illustrative of costs normally included in
  this category of costs:

     a.   Travel costs, including transportation, lodging, subsistence,
         and incidental  expenses  incurred  by personnel  or
         consultants while in a travel status in connection with  the
         performance of services required by the contract. The cost
         principles genrally require the use of less than first class air
         accomodations and also limit the cost of private aircraft.

     b.   Equipment, Materials, and Supplies
         (1)




         (2)



         (3)


         (4)
             Long distance  telephone, telegraph, and cable
             expenses to be incurred in connection with the
             performance of services required in connection
             with the contract.

             Reproduction  costs  including blueprints,  black
             and white prints, ozalid prints, photographs,
             photostats, negatives; and express charges.

             Commercial  printing,   binding,  artwork,  and
             models.
              Special equipment

c.    Subcontracts.

d    Other. Direct costs, if any, not included above.
   Enter in blocks 9a-d all other direct costs proposed. Travel costs
entered must be supported by an attachment which identifies the
number of man-trips proposed and the estimated cost per man-trip
for both local and long distance transportation. The number of days
and the rate per day  must be provided to support the per  diem|
shown.  Each  subcontract  and  consultant  agreement must  be
identified separately in block 9c. For each subcontract in excess of
$10,000, this EPA Form 5700-41 completed and certified by the
subcontractor shall be appended.

   Enter in the far right column on line 9e the total of all other direct
costs (9a-d).

   Supporting data to be maintained by the contractor and which
must be submitted or made available to the grantee or EPA  upon
request include:

   a.    basis for other direct costs proposed,

   b.    factual sources of costs,  rates, etc., used in computing the
        proposed amount of each cost element.

Item 1 0 - Total Estimated Cost

   Enter the total of all direct labor, indirect costs, and other direct
costs from items 7, 8, and 9.

Item 1 1 - Profit

        A fair and reasonable provision for prof it cannot be made by
simply applying a  certain predetermined percentage to the total
estimated cost. Rather, profit will be estimated as a dollar amount
after considering.

   a.    degree of risk,
   b.   nature of the work to be performed,
   c.    extent of firm's investment,
   d,    subcontracting of work, and
   e.    other criteria.

   The Federal Procurement Regulations cost principles applicable
to subagreements with profit-making organizations (4 1 CFR 1-15.2
and 1-15.4) disallow certain types of costs which are sometimes
incurred by firms in the normal conduct of their business. Examples
of costs which are not allowable under these cost principles include,
but are not limited to, entertainment, interest on borrowed capital
andbaddebts. Because the Government considers "profit" to be the
excess of price over allowable costs, such computation can indicate
a higher profit estimate than the firm's experienced profit as it
customarily computes it. The contractor may separately disclose to
the grantee its customary computations.

   Enter the dollar amount of profit in block II

Item 12 -Total Price

   Enter the total of item 1 0 and item 1 1 .
                PART III  - PRICE SUMMARY

   This portion  of the form is for use by a grantee when  price
comparison (i.e., price analysis) is utilized in subagreement review. It
may also be used by a contractor when price comparison is used as a
basis for award of a subcontract.

Item  13 - Competitor's Catalog Listings, In-House Estimates,
Prior Quotes

   Enter  sources  of  all competitive bids or quotes received,  or
catalogs used and their prices,  or m-house estimates  made, if
appropriate, for comparison. Attach additional sheets if necessary,
particularly for purchases of several different items.
                                                                            Enter in the  far  right column  the proposed  price  for
                                                                         subagreement.
EPA Form 5700-41  (2-76)
                                                                                                                         PAGE  4 OF 5

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                                                                                                               Form Approved
                                                                                                               OMB No. 158-R0144
                PART  IV  -  CERTIFICATIONS

Item  14 -  Contractor -  FOR USE  BY  CONTRACTOR  OR
SUBCONTRACTOR ONLY

   a.  '  Complete this block only if Part II has been completed

   b.    Complete this block only if Part II has been completed.

        Enter the  specific  cost  principles  with  which  the  cost
        summary of Part II conforms. Cost principles applicable to
        subagreements  with various types  or  organizations  are
        identified in 40 CFR 30.710. Cost principles applicable to
        subagreements with profit-making organizations are those
        at  41   CFR  1-15.2,  and,   for  architect-engineer  or
        construction contracts, 41 CFR 1-15.4.

   c.    (1)      Describe  the  proposal, quotation, request for
                price adjustment or other submission  involved,
                giving appropriate identifying  number (e.g., RFP
                No	).

        (2)      Enter the date when the price negotiations were
                concluded and the contract price was agreed to.
                The responsibility of the contractor is not limited
                by the personal knowledge of the  contractor's
                negotiator  if the  contractor  had  information
                reasonably available  at the time of agreement,
                showing that the negotiated price is not based on
                complete, current and accurate data.

        (3)      Enter the date of signature. This date should be
                as close as practicable to the date when the price
                negotiations were concluded  and the  contract
                price was agreed to (not to exceed 30 days).

Item 15 - Grantee Reviewer - FOR USE BY GRANTEE ONLY

   If  required by applicable  grant regulations,  the grantee must
submit the signed  form  for EPA  review prior to execution of the
subagreement.

Item 16 - EPA Reviewer - FOR USE BY EPA ONLY
EPA Form 5700-41 (2-76)
                                                    U.S. Government Printing Office:  1978-777-066/1114 Regions
                                                                                                                     PAGE 5 OF 5

-------
ENVIRONMENTAL
PROTECTION                ORDER
AGENCY
1015.IB
                                                               July 28,  1975
                       .POLICY _ AGENCY IDENTIFICATION
                  EPA IDENTIFICATION SIGNS AT PROJECT SITES
  1.  PURPOSE.   This  Order establishes the design and specifications  for
  a sign to be  displayed at the sites of projects which are operated  or
  sponsored by  EPA.   The sign is intended to  afford public awareness  of
  the national  involvement of EPA in environmental protection.

  2.  PROCEDURES.  A  Project Identification Sign shall be displayed in a
  prominent location  at each publicly visible construction site and demon-
  stration project sponsored or operated by EPA.  The basic design of the
  sign shall be as illustrated in Figure 1.   With the exception of  (a)
  through (c) below,  variations to the basic  design shall be at the dis-
  cretion of the grant awarding official or contracting officer.

      a.   The only Federal Government participant indicated shall be  EPA.
  Names of Program Offices shall not appear.

      b.   Standardized coloring for all signs shall be as shown in Figure 1.

      c.   Identification signs at EPA-funded  construction projects shall
  include prominent display of the pertinent  EPA Grant Identification Number;
  e.g., C-012345-03 (Program Code-Six Digit Grant Serial-Two Digit Project
  Sequence Number) and shall include the statement "An Equal Employment
  Opportunity Project" as shown in Figure 1.

  3.  NOTIFICATION.   The appropriate contracting officers or grant awarding
  officials are responsible for assuring that concerned parties (e.g.,
  State and local agencies, prospective contractors and grantees, and
  interested consulting engineers) are notified of this requirement.
  4.  SUPERSESSION.  EPA Order 1015.1A is  superseded.
                                     Alvin L. Aim
                                Assistant Administrator
                              for Planning and Management
Dist:  Directives                                                      Initiated by:PM-216

-------
                                    EPA Order No.  1015.IB
                                        July 28,  1975
                 aaAoaddw asHxo HO
          /.J.ISN3CI HOIH 3«JAJ- bOI«3J.X3
                                                         60
- 2 -

-------
SAMPLE FORMAT
                                  REVISED COST ESTIMATES
1. LOCATION OF PROJECT (State, County, City)
PROJECT NUMBER
2. LEGAL NAME AM) ADDRESS OF APPLYING AUTHORITY ("Applicant")

A. CONSTRUCTION (specify numbers where requested)
(1) CONTRACT NO.
(2) CONTRACT NO.
(3) CONTRACT NO.
(k) CONTRACT NO.
(5) CONTRACT NO.
(6) LATER CONTRACTS
(7) EQUIPMENT AND MATERIALS
(SUB-TOTAL)
B. TECHNICAL SERVICES
fc LEGAL AND FISCAL
D. ADMINISTRATIVE
E. CONTINGENCY
F. OTHER (specify)
G. SITE
H. TOTAL
TOTAL PROJECT
i }
i)
t)
i )
< »
t)
t )
(»
$
$
$
$
$
$
$
$
FOR GRANT
PARTICIPATION
< »
i )
( >
O
< »
o
C *
< >
( »
t )
c >
( )
$
$
$
$
$
$
$

$
     The undersigned representative of the Applicant certifies that  the information
contained above and in any attached statements and materials in support thereof,  is
true and correct to his best knowledge.
SIGNATURE
fe
^LU A1\1U
OF
AUTHORIZED
TITLE
OF
REPRESENTATIVE
REPRESENTATIVE
DATE
(Type or Print)
                                          (OVER)

-------
The "Total Project" column is intended to show total cost  of the  project whether or
not such costs are eligible for Federal grant assistance;  the "For  grant participation"
column is to include only those costs in which the Federal government  is participating.


A.  (l) to (5) - Enter the amount of the bid or bids the Applicant  wishes to accept.
    (If these are not the lowest bids received, full justification  for award to
    other than the low bidder must accompany the form).

A.  (6) - If other construction contracts for this project have been awarded or will
    be awarded at a later date, enter the actual or estimated costs as applicable.

A.  (7) - If equipment or materials are to be or have been purchased outside the
    construction contracts, enter the estimated or actual  costs as  applicable.

B. to D. - If not previously submitted, attach copies of any applicable contracts
   or agreements; if formal agreements do not exist, provide information regarding
   the basis for determining such costs.

-------
OMB NO. to-Hot•!
OUTLAY REPORT AND REQUEST FOR
REIMBURSEMENT FOR CONSTRUCTION PROGRAMS
3. Type of Request
Q Final
Q Partial
6. Employer Identification No.
9. Name of Grantee Organisation
4. Basis of Request
QCash
I ) Accrued Expenditure
7. Grantee Account No. or Identifying
No.


CITY


1. Federol Agency and Organizational
Element
S. Partial P,
B. Period Co
FROM
10.
Name of
2 Federal Grant No. or Other
Identifying Number
yment Request No.
vered (Month
Day, Year)
Payee (If different than It.
TO
«.»)
STRICT MO AMO HAMC
CITT


STATS 11* COOS
11. STATUS OF FUNDS
CLASSIFICATION
a Administrative expense . . .
b Preliminary expense 	
c Land|Stnjctures right-of-way ....
o. Architectural engineering basic fee
e. Other architectural engineering fees
f. Project inspection fees 	
g Land development 	
h. Relocation expense 	
i. Relocation payments to indiv. and
j. Demolition and removal 	
k. Construction and project improveme
1. Equipment 	
m. Miscellaneous cost 	



S 	




justnesses . . .

nt cost 	














n. Total cumulative to date (Sum of Lines a-m) 	
o. Deductions for program income . .
p Net cumulative to date (Line n roin
q. Federal share to date 	
r. Rehabilitation grants (100% reimbu
s. Total Federal share (Sum of Lines
t. Federal payments previously reque
u Amount requested for reimbursemen
v Percent of project completed


js Line o). . . .

rsement) 	
q and r) 	
sled 	
t 	


12. CERTIFICATION - 1 certify that to the best of my
and that the reimbursement represents the Federal
work is m accordance with the terms of the grant.






PROGRAMS — FUNCTIONS —
(D
«



















s
%
(21
t



















*
K
knowledge and b«li«f the billed costs
sharo du« which has not b«*n pr«vioui
o. GRANTEE
Nome
Title"
Signature of Authorised Official

T« •phon* No.
Dot*
b. STATE,
ACTIVITIES
(3)
S



















$
%
TOTAL
J



















*
*
of disbursements ore in accordance with the terms of the project
ly requested and that an inspaction has been performed and all
LOCAL, OR
FEDERAL GOVERNMENT REPRESENTATIVE
Nam.
Tit.
Signature of Authorized Official
T.l.phon. No.
Dot*
EPA Form 2550-16 (Rev. 9-74) REPLACES EPA FORM 2550-16 (z-74) WHICH is OBSOLETE.

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             INSTRUCTIONS FOR PREPARING THE OUTLAY REPORT AMD REQUEST FOR
                           REIMBURSEMENT FOR CONSTRUCTION PROGRAMS
Item  1 - Enter name of the Federal grantor agency and
organizational element to which the repoT is submitted
Item 2 — Enter the gram number or other identifying num
ber assigned by the Federal grantor agency
Item 3 - Mark the appropriate box  If the request is final,
the amounts billed should represent the final cost of the
project
Item 4 - Show whether amounts  are computed on  an ac
crued expenditure or cash disbursement basis
Item 5 - Enter the oartiai payment request number
Item  6 — Enter  the  employer  identification  number as
signed by the U S  Internal Revenue Service
Item 7 — This  space is reserved for an account number or
other identifying number  which may be assigned  by the
grantee.
Item 8 - Enter the month, day, and year for the beginning
and ending of the period for which this  report is prepared
Item 9 — Enter the name and complete  mailing address in
eluding ZIP Code for the grantee organization
Item  10  —Enter  the  name and complete mailing address
including the ZIP Code where the check should be sent,  if
the payee ts different than the grantee organization shown
in Item 9
PLEASE  READ  BEFORE COMPLETING ITEM 11    The
purpose of vertical columns (1) through (3)  is to provide
space for separate cost breakdowns when a large project has
been planned and budgeted by program,  function and activ
ity. If additional columns are needed,  use as many  addt
tional forms as needed and mark  "continuation" on each
form, however, the summary totals  of all programs  func
tions, or  activities should be shown in the "total" column
on the first page.
Item  11-STATUS  OF FUNDS - All amounts are re
ported on a cumulative basis.
  Line a. Enter amounts expended for such items as  travel,
  legal fees, rental of vehicles and any other administrative
  expenses. Include the  amount of interest expense  when
  authorized by program legislation. Also show the amount
  of interest expense on a separate sheet.
  Line b. Enter amounts pertaining to the work of locating
  and designing,  making surveys  and maps,  sinking test
  holes,  and all other  work  required prior to actual con
  struction
  Line c. Enter  all amounts directly associated with the
  acquisition of (and.  existing structures and  related  right-
  of-way
  Line d. Enter basic  fees for services of architectural en
  gineers
  Line e.  Enter other architectural engineering services Do
  not include any amounts shown on  Line d.
  Line f  Enter inspection and audit fees of  ccnstructton
  and related programs.
  Line g  Enter all amounts associated  with  the develop
  ment of land where the primary purpose of the grant  ts
  land pmprovement The amount pertaining to land devel
  opmeni  normally associated  with major  construction
  should  oe excluded  from this category and entered on
  Linek
  Line h.  Enter the dollar amounts used to provide reloca
  tion advisory assistance  and  net  costs of  replacement
  housing  (last  resort)  Do not include amounts needed
 for  relocation  administrative  expense, these amounts
 should be included in amounts shown on Line a
 Line i.  Enter the amount of lelocation payments made
 by the grantee to displaced persons, farrm  business con-
 cerns, and nonprofit organizations
 Line j.  Enter gross salaries and wages of employees of the
 grantee and payments to third party contractors directly
 engaged  in  performing  demolition or removal of struc-
 tures from developed land  All proceeds from the sale of
 salvage or the removal ot structures should t»e credited to
 this  account, thereby  Electing net amounts if required
 by the grantor agency
 Line k  Enter those amounts associated with the actual
 construction of, addition to, or restoration of a facility.
 Also include in  this category the  amounts tor project im-
 provements such as  sewers  streets,  landscaping, and
 lighting
 Line I.  Enter amounts *or all  equipment, both fixed and
  movable,  exclusive of equipment used for construction
 For  example,  permanently attached  laboratory tables,
 built-in audio visual systems, movable desks, chairs, and
 laboratory equipment
 Line m. Enter the amounts for all items not specifically
 mentioned above
 Line n. Enter the total cumulative amount to date which
 should be the sum of Lines a through m
 Line o. Enter the total amount  o* program income ap-
 plied to the grant except income included on Line j.  Iden-
 tify on a separate sheet  of paper the sources and types of
 the income
 Line p. Enter the net cumulative amount to date which
 should be the amount shown on Line n minus the amount
 on Line o
 Line q. Enter the Federal share ot the amount shown on
 Line p.
 Line  r. Enter the amount of rehabilitation grant pay-
 ments made to  individuals when program legislation pro-
 vides  100  percent payment  by  the Ppo^al  grantor
 agency
 Line s.  Enter the total of Lines q  and r
 Line t.  Enter the total amount of Federal payments pre-
 viously requested, /r"this form is used for requesting  reim-
 bursement.
  Line u. Enter the amount now being requested for reim-
 bursement.  This amount should be the difference be-
 tween the amounts shown on Lines s and t  If different,
 explain on a separate sheet
  Line v. Show the percentage of the physical completion
 of the project.
Item 12-CERTIFICATION
a.  GRANTEE — Enter the name,  title, telephone number,
and signature of the grantee official who is responsible for
the operation of the program  The date should be the actual
date the  form is  submitted to the  Federal grantor agency
b.  STATE,  LOCAL,  OR  FEDERAL  GOVERNMENT
REPRESENTATIVE-Enter the  name, title, telephone
number,  and signature  of the  Government  -epresentative
who is certifying  to the percent of project completion This
'epresentative may be a professional architectural engineer,
under contract to the State, local, or Federal government or
he may  be a qualified State locai, or Federal government
employee.
E PA Form 2550-16 {Rev. 9-74)

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IP m^J^ ^i
l532£*
U. S. ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D. C. 20460
NOTIFICATION OF GRANT AWARD ACTION-Construction
(Note: Awards are subject to declination by applicant)
1 . EPA OFFICE OF LEGISLATION CONTACT TELEPHONE
(202) 755-0488
3. ISSUING OFFICE
6. COMMUNITY REP OR PROJ DIRECTOR (Name, Title, Telephone)
8.
2. GRANT AGREEMENT/AMENDMENT TO BE MAILED TO APPLICANT
ON OR AFTER
4. LOG NUMBER
5. DATE OF AWARD
7. GRANTEE (Name, Street, City, State, ZIP Code, County, Cong. Dist.)
PROJECT LOCATION (Areas impacted by project)
CITY/PLACE COUNTY STATE

10. COMMUNITY POPULATION t1.P)8U» OF SCtK^CS
14. EPA CONTACT FOR PROJECT INFORMATION (Name, Title, Telephone)


9. GRANT PROGRAM
CFDA Program No. 66.
21^ FORMER AW/
VIE f
TO *
OF THIS ACTION
TU
HN $
RS AMENDED TC
$
« , . ;
* "'. E
>TAL 3&*> UNK-XNt*K3£&FR;KIR YR> HAi.,
CONGRESSIONAL DISTRICT

12. PROJECT STEP
15. GRANT NUMBER

9. GRANTEE TYPE


13. VENDOR CODE

16. TYPE OF GRANT ACTION

20. GRANT MAKING AUTHORITY (P.L. Title, Section)
25. FORMER ELIGIBLE COST
LC*
L° CHANGE IN ELIGIBLE COST
PT $
O CURRENT ELIGIBLE COST
J
$
26- FORMER AWARD
A THIS ACTION
A «.
M *
T AMENDED TOTAL
$
27. PROJECT TITLE AND DESCRIPTION
28. OTHER INFORMATION
29.
PROGRAM ELEMEN

FISCAL DATA
T FY APPROPRIATION DOCUMENT CONTROL NO. ACCOUNT NO. OBJ CL OBLIG AMT

EPA Form 5700-1 B (Rev. 6-75)

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®
1 EPA OFFICE OF LEGISLATION CC
U. S. ENVIRONMENTAL PROTECTION AGENCY 1
WASHINGTON, D. C 20460 I
NOTIFICATION OF GRANT AWARD ACTION-Construction J
(Decreases/Declinations/ 'Withdrawals) •
JNTACT TELEPHONE
(202) 755-0488
3 ISSUING OFFICE
*-:COWfWyNlT¥ «E?OR ***)<«ecr DIRECTOR ffitrmt, Tttttt. Telephone)
2. GRANT AGREEMENT/AMENDMENT TO BE MAILED TO APPLICANT
ON OR AFTER
4 LOG NUMBER
5 DATE OF ACTION
7 GRANTEE (Name, Street, City, State, ZIP Code, County, Cong, Dist /
6. 9 n O J ECT to CAT f 0 H (A «?a* impttetett by project)
CITY/PLACE:

id. COMMUNITY pOPyi-A^SOfi
COUNTY STATE

11'F>ELDOFSC'ENCE
14, £PA CONTACT FOR PftO« Yft, &A|l.
CONGRESSIONAL DISTRICT

12. PROJECT STEP
15. GRANT NUMBER
1 7. PROJECT PgRlOD
9. GRANTEE TYPE


13. VENDOR CODE
16. TYPE OF GRANT ACTION
18, BUDGET PERIOD
I
ZO. GRANT MAKtNO AUTWOfHTY fP,£. Tifte. Section} 1
25. FORMER ELIGIBLE COST
*
3C CHANGE IN ELIGIBLE COST
3 CURRENT ELIGIBLE COST
$
26. FORMER AWARD
E $
A THIS ACTION
A $
5? AMENDED TOTAL
$
27. PWOJlECf TJt 1_E AND OSSCR1PTION
, \
28. OTHER INFORMATION
29.
PROGRAM ELEMENT FY APP

FISCAL DATA
ROPRIATION DOCUMENT CONTROL NO. ACCOUNT NO. OBJ CL OBLIG AMT
,
                                                                                        F.
EPA Form 5700-1 D (Rev. 6-75)

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V
                   UNITED STATES
        ENVIRONMENTAL PROTECTION AGENCY
           ASSURANCE OF COMPLIANCE
                        FOR
   TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
                        AND
SECTION 13 OF THE FWPCA AMENDMENTS OF 1972
     NAME AND ADDRESS OF APPLICANT/RECIPIENT (Hereinafter
     called ASSUROR)
                          GRANT IDENTIFICATION NUMBER
                          (To be completed by EPA)
GRANT AMOUNT
REQUESTED
                                                                TYPE OF GRANT
                                                                  D DEMONSTRATION
                                                                  DOTHER (Specify):
                                                  D RESEARCH     DrRAINING
                                                                CHECK ONE:
                                                                   DNEW
                                                   D CONTINUATION
    HEREBY AGREES THAT IT will comply with Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and all requirements of the
    U.S. Environmental Protection Agency (hereinafter called "EPA ") issued pursuant to that title, to the end that in accordance with
    Title VI of that Act, no person in the  United States shall, on the ground of race, color, or national origin be excluded from
    participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the
    Assuror receives financial assistance from EPA and hereby gives assurance that it will now and  hereafter take all necessary measures
    to effectuate this agreement.

    HEREBY AGREES THAT IT will comply with all applicable requirements of Section 13 of  the Federal Water Pollution Control
    Act Amendments of 1972 (P.L. 92-500) and all requirements of EPA issued pursuant to that section, to the end that in accordance
    with that section of that Act, no  person  in the United States shall, on the ground  of sex be excluded  from participation in, be
           the benefits of, or be otherwise subjected to discrimination under any program or activity under the said Federal Water
             Control Act Amendments for which the  Assuror receives financial assistance from EPA and hereby gives assurance that it
        now and hereafter take all necessary measures to effectuate this agreement.

    If any  real property or structure thereon is provided or improved with the aid of financial assistance extended to the Assuror by
    EPA, this Assurance obligates the Assuror, or, in the case of any transfer of such property,  any transferee for the period during
    which  the real property or structure is used for a  purpose involving the provisions of similar services or benefits. If any personal
    property is so provided, this Assurance  obligates the Assuror for the period during which it retains ownership or possession of the
    property. In all other cases, this Assurance obligates the Assuror for the period during which the financial assistance is extended to
    it by EPA.

    THE ASSURANCE is given in consideration of and  for the purpose of obtaining  any and  all Federal grants,  loans, contracts,
    property discounts  or other financial  assistance  extended after the date hereof to the Assuror by EPA including installment
    payments after  such date on account of arrangements for Federal financial assistance which were approved before such date. The
    Assuror recognizes  and agrees that such  Federal  financial assistance will  be  extended in  reliance on the  representations and
    agreements made in this Assurance and that the United States shall reserve the right to seek judicial enforcement of this Assurance.
    This Assurance  is binding on the Assuror, its  successors, transferees, and assignees, and the person or persons whose signature
    appear below are authorized to sign this Assurance on behalf of the Assuror.

    The obligations assumed by the Assuror hereunder are in addition to any obligations which may be imposed on the Assuror by any
    applicable regulation now outstanding or which may hereafter be adopted by EPA to effectuate any provision or goal of the said
    Title VI and all applicable requirements of the said Section 13, and no part of this Assurance shall be  read  so as to in any way
    detract from or  modify any obligation which may be imposed on the Assuror by any such regulation standing alone.
       NATURE OF ASSUROR BY PRESIDENT, CHAIRMAN OF BOARD OR COMPARABLE AUTHORIZED
    OFFICIAL
                                                                                                 DATE
    EPA Form 4700-1 (Rev. 6-74)
                                                PREVIOUS EDITION IS OBSOLETE

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1 U. S. ENVIRONMENTAL PROTECTION AGENCY
COMPLIANCE REPORT
L (Title VI, Civil Rights Act of 1964 and Section 13, Federal
Water Pollution Control Act, As Amended)
Form Approved
OMB No. 158-R0034
 >IOTE:  READ INSTRUCTIONS ON REVERSE BEFORE COMPLETING FORM.
1. A.
APPLICANT
(Name
and State)
B. PROJECT NO.
 II.  IF ENTIRE POPULATION IN THE APPLICANT'S JURISDICTION IS SERVED NOW BY TREATMENT SYSTEM OR WILL BE UPON COMPLE-

    TION OF PROPOSED EPA GRANT PROJECT AND ON-GOING ASSOCIATED CONSTRUCTION, CHECK HERE |   |
 III. COMPLETE THE FOLLOWING ONLY IF ABOVE BLOCK IS NOT CHECKED
    A. SUBMIT A MAP WHICH  DELINEATES THE APPLICANT'S:
       1. GEOGRAPHICAL JURISDICTION FOR PROVISION OF  TREATMENT SYSTEM SERVICE:
       2. EXISTING TREATMENT SYSTEM COVERAGE;
       3. CONSTRUCTION PROPOSED UNDER EPA GRANT PROJECT AND ANY ON-GOING ASSOCIATED CONSTRUCTION:
       4. AREAS OF PLANNED FUTURE TREATMENT SYSTEM CONSTRUCTION.
    B. COMPLETE THE TABLE BELOW:
POPULATION CATEGORY
AMERICAN INDIAN
CHINESE. FILIPINO. JAP ANESE
NEGRO/BL ACK
SPANISH DESCENT
WHITE
OTHER
TOTAL
'• PRESENT
POPULATION
OF APPLICANT







2° POPULATION
PRESENTLY
SERVED







3. ADDITIONAL
POPULATION
TO BE SERVED
BY THIS PROJECT







4. POPULATION
REMAINING TO BE
SERVED AFTER THIS
PROJECT IS COMPLETED







 C.  GIVE THE SCHEDULE FOR FUTURE CONSTRUCTION BY WHICH TREATMENT SYSTEM SERVICE WILL BE PROVIDED TO ALL INHABI-
    TANTS WITHIN APPLICANT'S JURISDICTION.
 D.  |S ANOTHER FEDERAL AGENCY BEING ASKED TO PROVIDE FINANCIAL  ASSISTANCE TO ANY CONSTRUCTION ASSOCIATED WITH
 _  THIS PROJECT?  O YES   |  | NO	
    1. IF "YES" LIST  THE OTHER FEDERAL  AGENCY(S)
   2.  DESCRIBE THE ASSO Cl AT ED WORK
 IV.                                                     CERTIFICATION
    I certify that the information given above is true and correct to the best of my knowledge or belief. (A willfully false statement is
    punishable by lau^-U.S. Code, Title 18,  Section 1001)
 A,  SIGNATURE OF AUTHORIZED OFFICIAL
                                                            B. TITLE OF AUTHORIZED OFFICIAL
                                                                                                            C.  DATE
                                           FOR U.S. ENVIRONMENTAL PROTECTION AGENCY
CH APPROVED
| | DISAPPROVED
DIRECTOR, DIVISION OF
CIVIL RIGHTS AND URBAN
AFFAIRS
DATE
E PA Form 4700—4 (4-74) REPLACES EPA FORM FWPC A-T128 ie-67) WHICH is OBSOLETE

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:io^^
                                                         INSTRUCTIONS

                                                           GENERAL

     Title VI of the Civil Rights Act  of  1964 provides that no person in the United States shall,  on the ground of race, color,
national origin, be excluded from participation in, be denied the' benefits of, or be subjected to discrimination under any prograiri
activity receiving Federal financial assistance. The Act goes on to explain that the title shall not be construed to authorize actio!
with  respect to any employment practice of any employer, employment agency, or labor organization (except where the primary objec-
tive of the Federal financial assistance is to provide employment).
     Section 13 of the 1972 Amendments to the Federal Water Pollution Control Act provides that no person in the  United States shall,
on the ground of sex, be excluded from participation in, be denied the benefits of, or be  subjected to discrimination under any program
or activity receiving financial assistance under the Federal Water Pollution Control Act,  as amended.
     The primary purpose of the treatment works construction grant program under the Federal Water Pollution Control Act, as amended,
is development of water pollution control facilities.
     Accordingly,  the  information on this form is  required to enable the U. S.  Environmental Protection Agency to determine whether
prospective treatment works construction grantees are developing treatment system projects on a nondiscriminatory basis as required
by the above referenced statutes.
     Submit the original and two copies of this form.  (If a map is required, each form must have a map attached.)
     If an item cannot be answered or does not appear to be related or relevant to the project for which assistance is requested, write
"NA" for "not  applicable."

ITEMS

  1.     Self-explanatory.

 II.     "Jurisdiction" means  the  geographical area over which Applicant has authority  and duty to provide treatment works service.


        "Treatment system" embraces  all elements  which provide for treatment of  sewage or industrial wastes of a liquid nature,
        including sewage collection lines.  An individual  "treatment system," therefore, would begin upstream with collector sewers
        transporting wastewater from the service  areas, and would include  all downstream wastewater components  involved in the
        transport and treatment of the wastewater  to ultimate disposal of the treated water and sludge residue.  "Treatment works" is
        the term set forth in the Federal Water Pollution  Control Act, as amended, and  refers to treatment projects eligible for con-
        struction  grants assistance.  It is defined by the  statute as any devices and systems used in the storage, treatment, recycl-
        ing, and reclamation of municipal sewage or industrial wastes of a liquid nature  necessary to recycle or reuse water at the
        most economical cost over the estimated  life of the works, including intercepting  sewers, outfall sewers, sewage collectioj
        systems, pumping, power, and  other equipment and their appurtenances; extensions, improvements, remodeling,  additions,
        alterations thereof; and any elements essential to provision of a reliable recycled water supply such as standby treatment unii
        and clear well facilities.


        A "treatment system" is the whole, of which "treatment works" are component parts.

        "EPA grant project" is the project described by the application of which this form is a part.

        "On-going associated construction" is work not included in EPA grant project but which is being or will be constructed at the
        same time and is of such character as to be generally classified as connected or united with the work  comprising the EPA
        project.

        For an affirmative answer to this  question, the Applicant  must be providing or  be about to provide necessary and appropriate
        treatment service to all its inhabitants,

 III.A.  The map required by this question must be legible  and large enough to contain  all the information required by the question.

      1 Show the  boundaries of Applicant's jurisdiction for provision of treatment system service.

      2 Show the  area provided treatment  system service by shading or distinctive coloring.

      3 Mark out the area covered by EPA grant project application of which this form is a  part and any associated construction.

      4 Mark out the areas of planned future construction and identify by shading or distinctive coloring.

III.B.   Give population of Applicant's treatment  system jurisdiction, broken out by categories as specified.  The totals of 2, 3 and
        4 should equal  the total shown under  1.

IM.C.,D. Self-explanatory.

IV.     Self-explanatory.


EPA Form 4700-4 (4-74)

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            ENVIRONMENTAL PROTECTION AGENCY
     REPORT ON OPERATION AND MAINTENANCE
        OF WASTEWATER  TREATMENT PLANT
                                                           DATE OF INSPECTION
                                    Form Approved
                                    OMB Nf.  r,8-R0035
                                               A. GENERAL INFORMATION
1. PLANT
(a.) NAME
                                   (b.) OWNER
                                                                            (c.) LOCATION
2. TYPE OF PLANT
                                   3. PROJECT NO.
                                                           4. AVG. DESIGN FLOW (mfd)
                                S. DESIGN POPULATION
                                  EQUIVALENT
             COLLECTION SYSTEM
    COMBINED
                     SEPARATE
                                              7. DATE PRESENT PLANT BEGAN OPERATING
                                                                                          8. STATE PERMIT NO.
9. IN THE SPACE PROVIDED BELOW, FURNISH A SIMPLIFIED FLOW DIAGRAM OR A WRITTEN DESCRIPTION OF THE PLANT UNITS IN
  FLOW SEQUENCE.
 10. IDENTIFY RECEIVING WATERS
II. IDENTIFY  PERTINENT STREAM STANDARDS AND, OR USES OF THE RECEIVING WATERS
 12. GIVE THE EFFLUENT STANDARDS AND/OR REQUIREMENTS FOR STATE OPERATING PERMIT
                                              B. CURRENT PLANT LOADING
 1. ANNUAL AVG DAILY  FLOW RATE (mgd)
                                               PEAK FLOW RATE (mgd)
                                          DRY WEATHER    i   WET WEATHER
                                                                            3. POPULATION SERVED
4. ANNUAL AVG BOD5 OF RAW SEWAGE (mg/1)
5. ANNUAL AVG SUSPENDED SOLID OF  RAW SEWAGE (mg/1)
6. PRINCIPAL TYPES OF INDUSTRIAL WASTE DISCHARGED TO
   MUNICIPAL SYSTEM
                                                          7. POPULATION  EQUIVALENT (BOD) OF INDUSTRIAL WASTES
8. POPULATION EQUIVALENT (SS) OF INDUSTRIAL WASTES
                                                          9. VOLUME OF INDUSTRIAL WASTES (mgd)
 10. INFILTRATION PROBLEMS
 EPA Form 7500-5 (4-72)      REPLACES FORM FWPCA-12 WHICH IS OBSOLETE.

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                                                                                                            Form Approved
                                                                                                            OMB No.  158-R0035
C. PLANT PERFORMANCE J
LABORATORY ANALYSIS (Total Plant)
(a) REPORTING PERIOD
FROM (Month, year)
MONTHLY ITEMS
(b)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
FLOW (mgd)
(monthly average)
PEAK FLOW (mgd)
(maximum day)
SETTLEABLE SOLIDS
(monthly average)
INFLUENT (ml/1)
EFFLUENT (ml/1)
% REMOVAL
SUSPENDED SOLIDS
("monthly average^
INFLUENT (mg/ 1)
EFFLUENT (mg/ 1)
% REMOVAL
BOD (monthly average)
INFLUENT (mg/1)
EFFLUENT(mg/.Z)
% REMOVAL
DISSOLVED OXYGEN
(monthly average)
EFFLUENT (mg/1)
CHLORINE RESIDUAL
(monthly average)
EFFLUENT (mg/1)
COLIFORM (per 100 ml)
(monthly average)
TOTAL
FECAL
pH RANGE EFFLUENT
MINIMUM
MAXIMUM
TOTAL PHOSPHORUS (asP)
(monthly average)
INFLUENT (mg/1)
EFFLUENT (mg/1)
% REMOVAL
TOTAL NITROGEN (as N)
(monthly average)
INFLUENT (mg/1)
EFFLUENT (mi/1)
t. REMOVAL
ACTUAL PLANT
PERFORMANCE
DATA
(c)























TO (Month, year)
PLANT
DESIGN
DATA
(d)























NPDES
PERMIT
REQUIREMENTS
(e)























PLANT
ACHIEVES
DESIGN
EFFICIENCY

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3. DOES PLANT  HAVE ALTERNATE ELECTRIC POWER SOURCE'
   !"]DUAI_FEED      TIGENERATOR       [™~] NONE
                                                                   4. ADEQUATE ALARM SYSTEM FOR POWER OR EQUIPMENT
                                                                     FAILURES'       rilYES      Q1 NO
                EQUIPMENT PROGRAM
   a.) ROUTINE MAINTENANCE SCHEDULES
  b.) RECORDS OF MAI NT EN AN CE,REP AIRS & REPLCMT
  (c.) SPARE PARTS INVENTORY
                                                           A D E QU A T E
                                                                         INADEQUATE
                                                                                  6. IS  PLANT EFFLUENT
                                                                                     BEING CHLORINATED'
                                                                                      77! YES
                                                                                       7. DOES SEWAGE BY-PASS
                                                                                         PLANT INWETWEATHER
   DOES SEWAGE  BY-PASS
   PLANT IN DRY
   WEATHER'
      YES
                    NO
                              9. AGENCIES NOTIFIED OF  EACH BYPASS
10. BYPASS FREQUENCY
    (Monthly)
                       11. AVG DURATION OF
                           BYPASS (His)
                                                             12.  REASON FOR BYPASSING
                                                                           13. CAN BYPASS SEWAGE BE
                                                                               CHLORINATED'   Ql Y ES   07] NO
14. DO SEWER OVERFLOWS OCCUR
    UPSTREAM OF PLANT?
                                 15. ANY ODOR COMPLAINTS BEYOND PLANT PROPERTY'  (If yes,  explain)
16. OBSERVED APPEARANCE OF  EFFLUENT, RECEIVING  STREAM OR  DRAINAGE WAY
17. IS  A CONSULTING ENGINEER RETAINED OR AVAILABLE FOR CONSULTATION ON  OPERATING AND MAINTENANCE PROBLEMS'
    [7] YES   Qj NO   (If yes,  check one ol the following)   [31 CON TI NUI N G  B ASES      [~1 REQUEST BASES
18. DO OPERATORS AND OTHER PERSONNEL  ROUTINELY ATTEND SHORT
    COURSES, SCHOOL OR OTHER TRAINING'    [JJ YES      [3] NO
    (a.) \f yes, cite  course sponsor, and date of last course.
    (b.) If no, are there any courses available in this area3
    (c.) Is there an established procedure for training new operators3
                                                                                19.  IS LAB  TESTING  ADEQUATE FOR  THE  CONTROL
                                                                                    REQUIRED FOR THIS SIZE AND TYPE OF PLANT
                                                                                    AND USES OF  RECEIVING WATERS'
                                                                                    \^\ YES    Q  NO   (If No, explain)
20. EXPLAIN MAIN DIFFICULTY EXPERIENCED Wl TH  INDUSTRIAL WASTES
21. PERMANENT RECORD FILE
  (a.)  PLANT OPERATION AND MAINTENANCE MANUAL'  I J YES Q NO   (b.) AS BUILT  PLANS  AND SPECIFICATIONS'  rj~| YES Q  NO
  (c.)  MANU FACTURERS OPERATION & MAINTENANCE SPECIFICATIONS'  Q Y ES [7J NO    (d.) FLOW CHARTS'   QYES  Q NO
22. ESTIMATED WEEKLY  MAN-HOURS FOR LAB WORK  INCLUDING MAINTENANCE OF  RECORDS AND  PREPARATION OF REPORTS
23. ANNUAL  BUDGET FOR MAINTAINING AND OPERATING PLANT
 SALARIES & WAGES  ELECTRICITY   CHEMICALS
                                                          MAIN T EN AN CE
                                                                               STAFFING  & TRAINING
24. STABILIZATION PONDS
  (a.)  WEEDS CUT  AND VEGETATION  GROWTH IN PONDS REMOVED'
       [~] Y ES      [Jl  NO
                                                                   (b.) BANKS AND  DIKES MAINTAINED' (Erosion,  etc.)
                                                                       QJ YES      Q NO
  (c.)  ANY REPORTS OF GROUND WATER CONTAMINATION  FROM POND'  (If yes,  give details)   [^_] YES      f7 NO
          REPORTED?
f7] Y ES    [~] NO
(e.) ADEQUATE DEPTH CONTROL'
    Q] YES      [~] NO
                                                                        (f.) EFFLUENT RELEASE  IS
                                                                            [J_\ CONTINUOUS    QJ I NTERMITTEN T     [3] SEASONAL
EPA Form 7500-5 (4-72)  PAGE  3
                                                                                                                           * GPO: 1972-722-094

-------
D. LABORATORY CONTROL 1
CODING INSTRUCTION
Enter test codes opposite appropriate items. If any of the below tests are used to monitor industrial wastes, pi ace an "X" in 1
addition to the test code. ^1
1 - 7 or more per week 3 - 1, 2 or 3 per week 5 - 2 or 3 per month 7 - Quarterly 9 - Annually1^!
2 - 4, 5 or 6 per week 4 - as required 6-1 per month 8 - Semi-Annually
ITEM
(a.)
1. BOD
2. SUSPENDED SOLIDS
3. SETTLEABLESOLIDS
4. SUSPENDED VOLATILE
5. DISSOLVED OXYGEN
6. TOT AL SOLI DS
7. VOL ATILE SOLIDS
8. pH
9. TEMPERATURE
10. COLIFORM DENSITY
11. RESIDUAL CHLORINE
12. VOLATILE ACIDS
13. M B STABILITY
14. ALKALINITY
15.
16.
17.
18.
19.
RAW
(b.)



















PRIMARY
EFFLUENT
(c.)



















MIXED
LIQUOR
(d.)



















FINAL
(e.)



















(f.) SLUDGE
RAW



















SUPER-
NATANT



















DIGESTER
(g.)



















RECEIVING
STREAM
(h.)



















COMMENTS
                                                                                                                             «

E. PLANT PERSONNEL INVENTORY
PERSONNEL CLASSIFICATION
(a.)
1. MANAGEMENT/SUPERVISOR
2. OP ERATOR
3. LABORATORY
4. M AINTEN ANC E
5. OTHER PLANT WORKERS
6. OTHER OFFICE/CLERICAL
7. TOTAL
EMPLOYMENT
(b.)
ACTUAL
M AN-HOU RS
P ER WEEK







NUMBER







NUMBER
BUDGETED









NO. RE-
COMMENDEC







(c.) CERTIFICATION
VOLUNTARY
M AND ATORY
NO. RECOM-
MENDED OR
REQUIRED
BY STATE









ACTUAL
NO.
CERTIFI ED







TRAINING REQUIRED
NEXT 12 MONTHS
(d.)
NEW
HIRES







UPGRADE
(Promotion
or skill im-
provement





4
1
EPA Form 7500-5 (4-72)  PAGE 4
                                                                                                              * GPO: 1972-722-093

-------
                                                                                                            Form Approved
                                                                                                            OMB No. 158-R0035
1 F. GUIDE - VISUAL OBSERVATION - UNIT PROCESS
^?ATING CODES: S = Satisfactory; U = Unsatisfactory; M = Marginal; IN = In Operation; OUT = Out of Operation
^ CONDITION OR APPEARANCE
I — ' 	 1
GENERAL
PRELIMINARY
PRIMARY
SLUDGE DISPOSAL ^^^
a
LJ
I
H
O
\RY-TERTIARY
ms as required)
°~
Z „
O w
u ";
KJti
l/l

i
n
•>


GROUN DS
BUIL Dt N GS
POTABLE WATER SUPPLY P RO T
SAFETY FEATURES
BYPASSES
STORM WATER OVERFLOWS


MAINTENANCE OF COLLECTION SYSTEMS
PUMP STATION
VEN TIL ATION
BAR SCREEN
DISPOSAL OF SCREENINGS
COMMINUTOR
G Rl T CHAMBER
DISPOSAL OF GRIT


SETTLING TANKS
SCUM REMOVAL
SLUDGE REMOVAL
EFFLU EN T


DIGESTERS
TEMPERATURE ANDpH
G AS P RODUCTION
HEATING EQUIPMENT
SL U DG E PUMP S
DRYING BEDS
VACUUM FILTER
INCINERATION
DISPOSAL OF SLUDGE


FLOWMETER ANDRECORDER
RECORDS
LAB CONTROLS










EFFLU EN T
CHLORIN ATORS
EFFECTIVE DOSAGE
CONTACT TIME
CONTACT TANK


RATING























































COMMENTS























































EPA Form 7500-5 (4-72)  PAGE 5

-------
                                                                                                             form Approi'ed
                                                                                                             OMB No.  158-R0035
                                               G. NOTATIONS BY EVALUATOR
 t. OPERATION AND MAINTENANCE PROB LEMS/DE FICI E NCI ES
 CHECK EACH OF THE FOLLOWING ITEMS IN TERMS OF THEIR ESTIMATED ADVERSE AFFECT ON THE PERFORMANCE OF THE PLAN1
                ITEM
                                                                                                        MAJOR
 STAFF COMPLEMENT
                                                                  OVERLOADS (type)
 PERSONNEL TRAINING
                                                                       HYDRAULIC
 OPERATING BUDGET
                                                                             PERIODIC
 LABORATORY CONTROL
                                                                             CONTINUOUS
 INSTRUMENTATION
 INDUSTRIAL WASTE
                                                                             PERIODIC
 PLANT OBSOLESENCE
                                                                             CONTINUOUS
 EQUIPMENT FAILURE:
                                                                  OVERLOAD CAUSE(S):
      TREATMENT PROCESSES
                                                                       INFILTRATION
      SLUDGE HANDLING

      AND PROCESSING
                                                                       COMBINED SEWERS
                                                                       INDUSTRIAL GROWTH
 EQUIPMENT MAINTENANCE
                                                                       RAPID POPULATION GROWTH
 SPARE PARTS INVENTORY
                                                                       INCREASED SERVICE AREA
 POWER FAILURE
                                                                  OTHER:
 2.  DESCRIBE BRIEFLY THE MAJOR PROBLEMS INDICATED ABOVE (include follow-up actions needed see Instructions)
  3.
                             PURPOSE OF INSPECTION
                                                                                    4.
                                                                                                  GENERAL RATING
                       |~~|  GRANT COMPLIANCE

                       |  |  PERMIT COMPLIANCE
|~~|  FOLLOW-UP

    OTHER:
                                                                                    ACCEPTABLE
CONDITIONAL ACCEPTANCE
                                                                                    UNACCEPTABLE
          EVALUATION PERFORMED BY
                                                             TITLE
                                                                                         ORGANIZATION
                                                                                                                     DATE
         INFORMATION FURNISHED BY
                                                              TITLE
                                                                                         ORGANIZATION
                                                                                                                     DATE
EPA Form 7500-5 (Rev. 1-74)  PAGE 6   REPLACES PAGE o u-72) WHICH is OBSOLETE

-------
           APPENDIX C
PROGRAM CHECKLIST FOR ENGINEERING DRAWINGS,



 SPECIFICATIONS AND ENGINEERING REPORTS

-------
                                                      Page 1 of
                                                      Date
                  PLAN AND SPECIFICATION APPROVAL

PROJECT NO:	        LOCATION:	     OWNER:

Design Engineer	

       Phone
Approval by State Engineer	Date_
Conditions for Approval (attach copy of certification letter and plan
                        and specification approval letter)
Approval by EPA Engineer	Date_
Conditions for Approval (attach copy of plan and specification approval letter)
Description of project in terms of type of treatment, flow capacity, and
process units:
List of ineligible items (identify by bid item schedule, number and quantity),

-------
Page
Date
                                                                     of
                         SUMMARY OF REVIEW
Summarize the apparent inadequacies revealed during the plan and specification
review process and describe the resolution of each.  If necessary,  summarize
pertinent conversations and cite specific correspondence with the consulting
engineer:

-------
                                                     Page 	of
                                                     Date
                        GENERAL INFORMATION

PROJECT NO:	  PROJECT NAME:	

YES    NO

	    __  Has an Environmental Impact Statement (EIS) been prepared
           on this project?
           Have all recommendations of the EIS been followed?

           Is the treatment process suitable for the character and volume
           of the sewage to be treated?

           Have the components of the sewerage system been properly sized,
           based on realistic population projections?

           Will a minimum of primary treatment be provided during
           construction?

           has an organized, systematic, readily understood Basis of
           Design been provided?

           Has an I/I  (infiltration/inflow) Analysis been completed?

           If an I/I Analysis has not been completed, has the State certified
           that the contributing sewer lines do not have excessive
           infiltration/inflow?

           Is shellfish growing a consideration?  If yes, what protective
           provisions  have been made?	
           Will any of the contemplated construction be located in the flood
           plain and subject to flooding?  If yes, what is the frequency?

           What reasonable protection has been provided?
           Is the project in a designated flood hazard area as defined under
           PL 93-234 (Flood Disaster Protection Act)?  If yes, what amount of
           insurance has been obtained by the applicant under this Act? $	
           Are permits to construct required from other Federal Agencies?

           If yes, are these permits in the process of being secured?

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                                                    Page	of
                                                    Date
                      ENGINEERING DRAWINGS AND
                        DETAIL SPECIFICATIONS

 PROJECT NO:	         PROJECT NAME:	

 YES     NO GENERAL

~	    	 Have at least two brand names  been used with the or equal  clause?

           BUILDINGS
            Is  an adequately equipped and stocked laboratory provided?
            If  not,  have provisions  been made to  contract for labwork?
            Is  the space provided in the various  buildings adequate?
            Are heating, "lighting, and sanitary facilities adequat'e
            in  all buildings?
            Are chemical storage and machine locations safe?
            Have the restrictions on the use of mercury pursuant to
            TB  D-71-2 been complied  with?

            ENVIRONMENTAL CONSIDERATIONS

            Have noise and odor control  beer given proper attention and
            provided for where necessary?
            Has attention been devoted to a generally aesthetic  appearance
            of  the facility?

            RELIABILITY

            Is  standby power provided?  If standby power is not  provided,,
            describe on an attachment the means of assuring continuous
            operation.
            Have multiple units and  equipment been provided to the maximum
            extent possible?
            Can individual plant units be bypassed?
            Are there adequate provisions for flexibility of operation?

            SAFETY FEATURES

            Is  the plant fenced or otherwise enclosed?
            Is  the public water supply protected  by a backflow
            preventer?
            Is  mechanical ventilation provided where required?
            Are railings and machine guards provided?

-------
                                                    Page
                                                    Date
                               of
                        PROJECT DESIGN DATA
PROJECT NO:

LOCATION:
          PROJECT NAME:

          DISCHARGE TO:
Scope of Project:
Degree of treatment (present):  SS removal 	%; BOD5 Removal
Degree of treatment (proposed): SS removal 	%; BODs Removal

Is this project related or tandem to previous project(s):	
Description of new or modified plant:	
Type of Sewer System:
Separate^
Combined
                          PROJECT LOADING

1. Industrial Wastes - mgd
2. Industrial Wastes - B0?5
mgl
3. Industrial Wastes BQD$
Ib/day
4. Industrial Wastes - P.E.*
j
5. Domestic Population
Served
6. Domestic Average
Flow - mgd
! 7. Total Average Flow -
mgd (Items 1+6)
I
8. Raw P.E. (Before Treat-
ment (Items 4+5)
9. Effluent P.E. (After
Treatment)
J (Item 8) x (1-%BOD5 Removal)
Present Load






~


Start-up
Load









Design Year
(19 ) Load









Principal types of industrial wastes;
Permit Number
Permit effluent limitations
*P.E. = Total Ibs. BOD5/day
               0.17

-------
                                                       Page 	of
                                                       Date
                                STREAM DATA

PROJECT NO:	                PROJECT NAME:_

1.   Name of Receiving Stream	
2.   Estimated Minimum Daily Flow 	Duration	Frequency_

3.   Stream - Free Flowing (  )     Sluggish (   ) 	

4.   Distance Downstream to Nearest Community	

5.   Distance Downstream to Nearest Water Intake	

6.   Receiving Water Velocity	
7.  Salinity of Receiving Water
8.  D.O., BOD and S.S. of Receiving Water_
14. Calculated Coliform/100 ml

15. Stream Classification
16. Water Quality Criteria_
9.  Temperature range of Receiving Water	°F

10. Temperature range of Effluent	°F

11. Area of Mixing Zone	

12. Trapping Level (Will Plume Reach Surface)	

13. Dilution Ratio
17. Make computations to assure that the project effluent will not have a

    detremental effect on the quality of the receiving stream.

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                                                    Page	of	
                                                    Da te	

                       SCREENING, GRIT REMOVAL
                        AND FLOW MEASUREMENT

Sar Screen

Total Area	sq. ft.   Effective Area 	sq. ft.

Space Between Bars	inches    Velocity	fps

Slope of Screen 	   Is Drainage Platform Provided?	

Mechanical Screen:  Capacity	mgd  Type	

Method of Cleaning:  Manual 	   Mechanical	
Disposal of Screenings	Can screen be bypassed?	

Ccmmi nuti ng Device

Type	

Location	  Size	inches  Capacity	mgd

Auxiliary Bar Screen	

Grit Chamber

Mo. Chambers   __________ Type	
Cross-Section Area Each 	sq. ft.   Total 	sq. ft. Length_

Linear Velocity in fps:  Average	  Min. 	Max.	

Method of Velocity Control	
Detention Period:  Present Flow:	Seconds  Design Flow: 	Seconds

Drain Provided	

Method of Cleaning:  Manual	Mechanical	

Disposal of Grit:	

flow Measurements

Type Metering Device	Location (Raw Sewage or Eff.	)

Indicating and Recording Mechanism	
   roval bv State Enoineer:
Comments:

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                                                Page 	of
                                                Date
                         SEDIMENTATION TANKS
Type:  Primary:  	Intermediate:	Final:
       Feed:  End/center/peripheral	
Number Tanks	Shape of Tanks	
Inside Dimensions:  Length	Width	SWD	Depth	Diameter
Effective Volume Each Tank	cu. ft.  Total  Volume	cu.  ft.
Recirculation Rate	Design Flow (including recirculation	mgd
Detention (Average 24-hr, flow):  Present	hrs.   Design	hrs.
Surface Loading:  Present	gpd/sq.  ft.  Design	
Length of Overflow Weir	ft.;  Overflow Rate	gpd/ft.
Is overflow Weir Adjustable?	Type of Weir	
Sludge Collection Equipment, Type	
Scum Removal (Type):	
Disposition of Scum	
Sludge Removal by:  Pump	Gravity	to	
Approved by State Engineer:
Comments :

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                                                     Page 	of
                                                     Date
                           AERATION TANKS
Number Tanks	Shape of Tanks_
Inside Dimensions:  Length	Width	Depth	Diameter
Net Volume Each Tank	cu. ft.  Total Volume	cu. ft.
Percentage of Daily Flow of Return Sludge to Aeration Tank	
Design Flow  (exclusive of return sludge)	mgd
BODs Loading 	ppm	#/day
Required Air	cu. ft./#BQD5/day
Furnished Air	cu. ft./#BOD5/day (normally 150% of required air)
Detention Time (Average 24-hr. Flow):  Design	nrs.
Length of Overall Weir	ft. Overflow Rate	gpd/ft.
Equipment
Number Blowers	Cap. Each	cfm Total Cap	cfm At	Ibs.
Diffusers:  Plates	Fixed Tubes	Swing Diffuser	
Impingement Aerator	Jet Aerator	
Mechanical Aeration
Number 'Jnits	Updraft Tube	Down Draft Tube	
Operated Intermittently by Time Clock	
Sludge Return Pumps
No. Pumps	Type	Cap. Each	gpm Total Cap. 	gpm
Rated Heads	ft.  Computed Heads    	          ft.
Approval by State Engineer:
Comments:

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                                              Page
                                              Date"
                                      of
                          TRICKLING  FILTERS
Type (Standard or High Rate):	
Number of Filters	Dimensions:   Dia.	ft.  Depth	ft.
Surface Area:  Each_
Depth of Media	
         sq.  ft.   Total
   _sq.  ft.
acres
      ft.  Volume of Media
                    cu.  yds.
Average daily flow_
Recirculation
A.  Quantity	
B.  Quantity	
    Total
_mgd
Hydraulic Loadings:_
BQDs Applied Sewage_
BOD5 Loading	
Filter Material:  Size
Soundness test specified:
Distributor:  Type	
Provisions for Flooding_
Recirculating Pumps
Pump No.          Type
                        mgd.
          mgd.  returned from
          mgd.  returned from
             _to_
              to
                                       jngd/acre
                 _ppm_
            #/day
          #/cy/day
_#/acre-ft./day
            inches;  Kind
           No.  Arms
                 _Air Channels Adequate
         Capacity       Rated Head
        	gpm 	ft.
              Computed Head
                        ft.
                                          _gpm
                                 ft.
                        ft.
                                          _gpm
                                 ft.
                        ft.
                                          _gpm
                                 ft.
                        ft.
Approved  by  State  Engineer:

-------
                      WASTE STABILIZATION PONDS
Locati on
Number of Ponds
                     Operation:  Series
                                             Parallel
                                                             Either
Surface Area:  #1 _ #2 _ #3



Loading: _ _   Persons/Acre



Grit Removal Required
                                        Total:
                                                          acres
                                                #BOD5/ Acre/day
                                         Screens Required
Provisions to Divert Surface Water



Provisions for Measuring Flow:



Provisions for Sampling:
Depth:  Optimum Operating



Freeboard : _ ft .



Type of soil:
                                    ft.  Maximum
                                                          ft. Minimum
                                                                              ft.
Are specifications adequate for compaction of embankments?



Top width of embankment 	ft.   Erosion Protection	



Embankment Slopes:    Inner	Horz.
                      Outer
                                     Horz.
                                                 1
                                                 1
                                                          Vert.



                                                           Vert.
Depth of Submergence of Inlet_



Distance From Inlet to Outlet
                                            _ft.  Distance from Bank_



                                                ft.
Is scour protection provided at inlet?__



Drawoff levels:  Top	Middle^



Bottom Drain	



Is controlled overflow provided?	
                                                     Bottom
Provision for effluent disinfection_



Appropriate Warning Signs	
                                           Fence provided
What provisions have been made to fill the ponds
Approval by State Engineer:



Comments:

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                                                  Kage	of
                                                  Date
                     SLUDGE DIGESTION - SEPARATE
Single Stage or Primary Digestion Tanks
No. Tanks	Dimensions Each:  Diameter	ft. Depth	ft.
Volume Each	cu. ft.   Total Vol. 1st. Stage	cu. ft.
Volume Per Capita (Design) 	cu. ft.
Second Stage Digestion Tanks
No. Tanks	Dimensions Each:  Diameter	ft. Depth	ft.
Volume Each	cu. ft.  Total Vol. 2nd. Stage	cu. ft.
Volume Per Capita	
First and Second Stage Digesters
Total Volume All Tanks 	cu. ft. Vol. Per Capita	cu. ft.
Heated	Un heated	
Gas Disposal	Aux Heat	Heat Exchanger_
Type of Cover	Pressure and Vacuum Relief on Cover	
Is unvalved overflow provided?	
Flame Trap	Drip Traps	Waste Burner	
Sludge Withdrawal Line (Size)	inches.  Pumped	Gravity	
Circulation = Gas/Mechanical	Supernatant Disposal	
Recirculation Pumps or Sludge Pumps
Number	Cap. Each	gpm.  Size Disch. Line	inches
Rated Heads	ft.  Computed Heads	ft.

Approval by State Engineer:	
Comments:

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                                                    Page	of_
                                                    Date
                           SLUDGE DISPOSAL
Sludge Drying Beds
Number of Beds	Area of Each Bed_
Total Area	
Area per capita:  Present	sq. ft.
                  Design	sq, ft.
Gravel:  Layer Depths	Sizes	
Sand:  Depth___	inches
Underdrains:  Size	Spaced C-C
Freeboard Above Sand	Suitable Splash Pad_
Beds Subject to Flooding	Concrete Runners Provided	
Is drainage from beds returned to plant for treatment?	
Vacuum Filters
Type of Sludge to be Handled:  Raw	Digested	
Number of Filters	Size	Capacity_
Total Area                    Chemical Treatment
Filtrate Disposal	
Holding Tank	
Lagoons
Will groundwater be protected from contamination?_
Number of Lagoons	Total Volume of Lagoons_
How will sludge be disposed of?	
Approval by State Engineer:
Comments:

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                                                Page
                                                Date
                                                            of
                            CHLORIMATION
Points of Application_

No. of Chlorinators
                                           Type
Total Capacity  lbs/24hrs.
Total Capacity  Ibs/mg flow:  Present

Chlorinator Room

Outside Door Only _
                                                       Design_
Type of Ventilation_

Scales Provided
Adequate Storage for Containers

Gas Masks Provided
Chlorine Contact Tank
No. of Tanks
Inside Dimensions_

Capaci ty	
Detention Time
Can Tanks be drained?

Disposal of Drainage:
                                            min. @ present
                                            min. @ design
                                          Sludge Removal
Approval by State Engineer:

Comments:

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                                               Page
                                               Date
                             of
                SEWAGE PUMPING STATION
Location
Type Pumps Specified_

Type Pump Control	
Alternator
Simultanious
Are Duplicate Units Provided?
Can max. flow be handled with largest unit out of service?

If not, explain alternate procedure	

Maximum Flow	Average Flow	

Volume of the wet well
               Minimum Flow
Detention time @ maximum flow
            minimum flow
Does the fillet in the wet well have adequate slope?

Has a bar rack or sand trap been provided?	
Is there a gate valve and a check valve on discharge?	

Is there a gate valve on suction?	

Is ventilation provided in the wet well?	Dry well
Is standby power, automatic overflow or a detention pond provided?

Is an adequate alarm system included?	
PUMP
No.




SIZE
(in.)




FRICTION
Head (ft)
,



STATIC
Head (ft)




CAPACITY
gpm




RATED
TDH




COMPUTED
TDH




CONSTANT/ f
VARIABLE I
SPEiZD I


'
!
Approval by State Engineer:

Comments:

-------
                               SEWERS
Location
Minimum Velocity from Sta.	to Sta.
Design Capacity	Required Capacity	
Is the cover adequate in all cases?	
What are infiltration/exfiltration limits?
                              MANHOLES
Maximum distance between manholes
                                                    Page 	of
                                                    Date
Type of Sewer:  Sanitary	Combined	Storm
Cl assi f i cation:   Col 1 ector	Interceptor	Outf all
Type of Pipe 	Type of Joint	
Length of Sewer	Diameter	Slope	
Design Velocity	Required Velocity	
If the cover is not adequate, where?  Sta. 	to Sta._
What type joint test is required?	
Diameter of Barrel                     Diameter of Cover
Are manholes provided at all changes in grade, size or allignment of sewers?_
Is outside plaster required?	Paved invert?	
Are corrosion resistant steps or ladders provided?	
Are retainers and blocking provided where necessary?
Approval by State Engineer:
Comments:

-------
                                                  Page_
                                                  Date"
                                    of
Design Flow_
Outfall Lcngth_
Diffuser Length_

Number of Ports
Depth of Discharge_
                        OUTFALL
          mgd
ft.  Diameter
ft.  Diameter
jnches

 inches
             ft.
Approval by State Engineer:
Comments:

-------
                                                   Page	of
                                                   Date
                             FORCE MAIN

Location
Hazen-Williams "C" factor used for Design_
Type of Pipe	Size	Pressure Class_

Type Joint Specified	
Force Main Length	Computed TDH	Rated TDH_

Velocity	Minimum Cover Provided	

Are Blcw-Offs Specified?	Air Relief Valves?	
Are Thrust Blocks and Retainers Provided Where Necessary?_
Approval by State Engineer:

Comments:

-------
      APPENDIX D
TRANSMITTAL MEMORANDA

-------
                                 APPENDIX D
                           Handbook of Procedures
                      Construction Grants Program for
                         Wastewater Treatment Works
                             PROGRAM DIRECTIVES
                           Table of Contents
Memoranda

PRM 75-1       Use of Revenue Sharing Funds for Waste
               Treatment Projects
PRM 75-2       Experience Clauses for Equipment Suppliers
PRM 75-3       Waste Stabilization
PRM 75-4       Standardized Construction Contract
PRM 75-5       Non-Restrictive Specifications
PRM 75-6       Adequacy of Treatment Certification
PRM 75-7       Sewer System Evaluation and Rehabilitation
PRM 75-8       Flood Disaster Protection Act of 1973 —
               Public Law 92-234
PRM 75-9       Supplement to PG No. 25; Flood Disaster
               Protection Act of 1973 (PL 93-234)
PRM 75-10      User Charges and Industrial Cost Recovery
               System (ICR Portion Only.  U/C Portion
               Superseded by PG-37)
PRM 75-11      Approval of Reimbursement Projects Not
               Previously Serviced by EPA
PRM 75-12      Obligation, Recovery and Reallotment of
               Contract Authority Funds
PRM 75-13      Management of Construction Grants Funds
PRM 75-14      Grant Funds and Project Segmenting
PRM 75-15      Class Deviation — Use of Force Account
               Work on Construction Grant Projects
PRM 75-16      Title II Regulations, Section 35.915(1)
               Reserve for Step 1 and Step 2 Projects
PRM 75-17      Construction of Pretreatment or Treatment
               Facilities for Municipal Utilities
  Former
Designation
    PG-3
    PG-14
    PG-16
    PG-17A
    PG-19A
    PG-20
    PG-24
    PG-25

    PG-25A

    PG-28

    PG-30

    PG-31

    PG-32
    PG-33
    PG-34

    PG-35

    PG-36
                                                           Revised: TM 76-1
                                                           August 1976

-------
                                                                 Former
Memoranda                                                      Designation

PRM 75-18       Eligibility of Wastewater Treatment                PG-36A
                Facilities at Municipally Owned Water
                Treatment Works for Construction Grants

PRM 75-19       User Charges and Industrial Cost Recovery          PG-37
                System

PRM 75-20       User Charge System                                 PG-38

PRM 75-21       Overruns, Reserves and Priority Lists              PG-41

PRM 75-22       Policy Re Retention Payments                       PG-43

PRM 75-23       Escalation Clauses in Construction Grant           PG-44
                Projects

PRM 75-24       Large City Problem in State Priority List          PG-46

PRM 75-25       Eligibility of Land Acquisition Costs              PG-49
                for Land Treatment Processes Under Title II
                of the Federal Water Pollution Control Act,
                as Amended

PRM 75-26       Consideration of Secondary Environmental           PG-50
                Effects in the Construction Grants Process

PRM 75-27       Field Surveys to Identify Cultural Resources       PG-52

PRM 75-28       Flood Insurance Requirements Effective 7/1/75      PG-54

PRM 75-29       EPA Procedures in Initiating Debarment Actions     PG-56
                Against Grantee Contractors

PRM 75-30       Cost Control                                       PG-57

PRM 75-31       Facilitating EIS Preparation with Joint            PG-58
                EIS/Assessments (Piggybacking)

PRM 75-32       Compliance with Title VI in the Construction       PG-59
                Grants Program

PRM 75-33       Discount Rate                                      PG-60

PRM 75-34       Grants for Treatment and Control of Combined       PG-61
                Sewer Overflows and StdYvnwater Discharges

PRM 75-35       Allowable Costs for Construction of Treatment      PG-62
                Works that Jointly Serve Municipalities and
                Federal Facilities
                                                            Revised:  TM  76-1
                                                            August  1976

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Cr
                                                                           Former
         Memoranda                                                        Designation

         PRM 75-36       Value Engineering  in  the  EPA Construction             PG-63
                        Grants Program

         PRM 75-37       User Charge  System:   Plan and Schedule                PG-65

         PRM 75-38       Relationship Between  201  Facility Planning           PG-66
                        and Water Quality  Management (WQM)  Planning

         PRM 75-39       Eligibility  of Land Acquisition  Costs for             PG-67
                        the Ultimate Disposal  of  Residues from
                        Wastewater Treatment  Processes

         PRM 75-40       Priority List Supplement  to  FY 1977                  PG-68
                        Construction Grants Guidance
         PRM 76-1        Construction  Grants  Program  Issuances

         PRM 76-2        Cancellation  of Certain  Program  Guidance
                        Memoranda  (PGM)

         PRM 76-3        Presentation  of Local  Government Costs  of
                        Wastewater Treatment Works in  Facility  Plans

         PRM 76-4        Coordination  of Construction Grants  Program
                        with  EPA-Corps  of  Engineers  Section  404/Section
                        10  Permit  Programs

         PRM 76-5        Flood Insurance Requirements
         PRM 77-1        Treatment  Works  for  Recreational  Parks,
                        Industrial  Parks,  and  Institutions

         PRM 77-2        Grant  Eligibility  of Start-up  Services

         PRM 77-3        Plan of  Operation  for  Municipal Wastewater
                        Treatment  Facilities

         PRM 77-4        Cost Allocations for Multiple  Purpose Projects

         PRM 77-5        Grant  Eligibility  of Land  Acquisition by  Leasehold
                        or  Easements  for Use in  Land Treatment and  Ultimate
                        Disposal of Residues
   G-299
                                                               Revised:  TM  77-1
                                                               December  1976

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Memoranda
PRM 77-6       Easements
PRM 77-7       Management of State Project Priority Lists
PRM 77-8       Funding of Sewage Collection System Projects
PRM 77-9       Reallotment of Recovered Funds
                                                       Revised:  TM 78-1
                                                       October  1977

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                                          .  DATE:
                                            TRANSMITTAL MEMORANDUM:

SUBJECT:
FROM:      Deputy Assistant  Administrator for Water Program Operations
TO:        Regional Administrators
ATTN:      Water Program  Directors

Purpose:


Discussion:
Effective Date:
Authority:
Filing  Instructions:
*U.S. Government Printing Office: 1976-677-717/297 Region 8

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