&EPA
United States
Environmental Protection
Agency
Office of Water
Program Operations (WH-547)
Washington DC 20460
1980
Water
Handbook of
Procedures
Construction Grants
Program for
Municipal Wastewater
Treatment Works
Second
Edition
MCD-03
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Handbook
of
Procedures
Construction Grants Program
for Municipal Wastewater
Treatment Works
Municipal Construction Division
Water Program Operations
Off ice of Water and Waste Management
U.S. Environmental Protection Agency
Washington, D.C. 20460
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FOREWORD
This Handbook identifies and explains the many procedures to
be followed by those in the Regional Offices and the States who are
responsible for bringing municipal wastewater treatment projects
from their conception to completion.
The procedures are set forth sequentially and are expressed in
logical and concise terms. The operational tasks described are
applicable to the program as a whole and are intended to serve as an
operational standard so that this complex, multifaceted Construction
Grants Program can move forward as a national program, uniformly
administered.
Through the thoughtful application of the procedures described
in the Handbook, the water pollution control goals to which the
Environmental Protection Agency is dedicated can be more effectively
achieved.
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ACKNOWLEDGMENTS
The Handbook, including the revisions reflected in this edition,
was prepared by the Municipal Construction Division, Office of Water
Program Operations, Office of Water and Waste Management.
The basic organization of the Handbook and initial drafts of its
revisions were prepared under a consulting contract with EcolSciences,
Inc. Albert L. Pelmoter, Chief, Program Policy Branch, was the project
manager and responsible for the Handbook's overall development. Most
of the basic text was prepared by Albert T. Bowyer, the contractor's
project officer, along with Joseph Grieshaber of his staff. Construction
Grants Program staff from Headquarters and the Regions, too numerous
to mention, contributed considerably to the reviewing and editing of
the drafted text.
iii
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CONTENTS
Page
FOREWORD 1
ACKNOWLEDGMENT 111
CHAPTER I. INTRODUCTION
A. General I- 1
B. Second Edition Changes 1-2
C. Legislative History 1-3
D. Handbook Organization and Use 1-6
1. Purpose 1-6
2. Structure 1-6
3. Format 1-7
4. Related Material 1-8
5. Updating 1-8
6. Appendices 1-9
CHAPTER II. STATE PROGRAM
A. Planning Processes II- 1
1. General II- 1
2. State Continuing Planning Process . . II- 1
3. Waste Load Allocations II- 2
4. Water Quality Management Plans .... II- 3
5. Facilities Plans II- 4
6. Municipal Perm.its II- 5
7. Reviews of Advanced Treatment
Projects II- 6
B. State Planning and Implementation
Programs II-7
1. State/EPA Agreement II-7
2. State Strategy II- 7
3. State Priority System and Priority
List II- 8
4. Funding 11-11
5. State Delegation 11-13
6. U.S. Army Corps of Engineers 11-15
CHAPTER III. PREAPPLICATION INFORMATION
A. General Ill- 1
B. Applicant Eligibility Ill- 2
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Page
C. Preapplication Conference Ill- 3
1. Important Dates Ill- 3
2. Contracts for Personal and
Professional Services Ill- 5
3. Administrative Requirements Ill- 5
4. Technical Requirements III-9
CHAPTER IV. STEP 1 GRANT PROCESSING
A. Introduction IV- 1
B. Schematic Flow Diagram IV- 2
C. Application Contents IV- 3
D. Review of the Plan of Study (POS) .... 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 Certi-
fication IV- 9
3. Application Form IV-10
4. Contracts and Subagreements IV-11
F. Grant Award Procedures IV-13
1. Regionalized Procedures IV-13
2. Notification of Grant Award Action. . IV-13
3. Grants Information and Control
System (GICS) IV-14
4. Clearinghouse Notification IV-14
5. Grant Agreement/Amendment IV-14
G. Preparation of the Facility Plan .... IV-15
H. Administrative Review (Facility Plan) . . IV-17
1. Clearinghouse Comments IV-17
2. State Review and Certification. . . . IV-18
I. Facility Plan Review IV-19
General IV-19
NEPA IV-20
Contents IV-21
1. Summary, Conclusions and Recommenda-
tions IV-21
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-25
4.1 Conditions in the Planning Area. IV-25
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4.2 Existing Wastewater Flows and
Treatment Systems IV-26
4.3 Infiltration and Inflow IV-27
4.4 Performance of Existing Systems . IV-33
5. Future Situation IV-34
5.1 Land Use IV-34
5.2 Demographic and Economic Pro-
jections IV-35
5.3 Forecasts of Flow and Waste
Load IV-36
5.4 Future Environment of the
Planning Area Without the
Project IV-37
6. Alternatives IV-37
6.1 Optimum Operation of Existing
Facilities IV-37
6.2 Regional Solutions IV-38
6.3 Waste Treatment Systems IV-39
6.4 Evaluation (Monetary, Environ-
mental, Implementation) IV-49
7. Plan Selection IV-54
7.1 Evaluation and Comparison of
Proposals IV-54
7.2 Views of Public and Concerned
Interests on Alternatives .... IV-54
7.3 Selected Plan (major feature
summary) and Reasons for
Selection IV-57
7.4 Environmental Impacts of
Selected Plan IV-57
7.5 Energy Consideration IV-59
7.6 Recreational Opportunities . . . IV-59
8. Cost Estimates, Preliminary Designs. . IV-59
8.1 Description of Design IV-59
8.2 Summary of Cost Estimates .... IV-60
9. Arrangements for Implementation . . . IV-61
9.1 Institutional Responsibilities. . IV-61
9.2 Implementation Steps IV-62
9.3 Operation and Maintenance .... IV-63
9.4 Financial Requirements IV-63
9.5 Pretreatment Program IV-64
10. Summary of Environmental Considera-
tions IV-66
10.1 Existing Environmental Conditions IV-67
10.2 Future Environment Without the
Project IV-67
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Page
10.3 Evaluation of Alternatives . . . IV-67
10.4 Environmental Effects of the
Selected Plan IV-67
10.5 Interacting Environmental Con-
siderations IV-67
a. Criteria for Determining
when to Prepare an EIS . . . IV-67
b. Required Coordination and
Consultation IV-68
c. Environmental Review .... IV-75
d. Finding of No Significant
Impact (FNSI) IV-76
e. Notice of Intent IV-77
f. EIS Preparation IV-77
CHAPTER V. STEP 2 GRANT PROCESSING
A. Introduction V- 1
B. Schematic Flow Diagram V- 3
C. Application Contents V- 4
D. Facility Plan Approval V- 6
E. Administrative Review V- 7
1. Priority List Compliance and
Certification V- 7
2. Application Form V- 8
3. Contracts and Subagreements V-10
4. Intermunicipal Agreements V-ll
5. Value Engineering Proposal V-ll
6. Project Progress Schedule V-12
7. Evidence of Compliance V-13
8. Pretreatment Requirements V-15
9. Public Participation Work Plan . . . V-17
10. Other Requirements and Limitations. . V-17
F. Combination Step 2 + 3 Grants V-19
G. Grant Award Procedures V-20
H. Predesign Activities V-21
I. Predesign Conference V-22
J. Review of Plans and Specifications . . . V-26
1. Administrative Review V-27
a. Supplemental General Provisions . V-28
b. Equal Employment Opportunity (EEO)
and MBE Utilization V-28
c. Davis-Bacon Act V-29
d. Flood Insurance V-29
e. Bonding and Insurance V-30
f. Construction Incentive Program. . V-30
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2. Technical Review V-30
a. Environmental Considerations . . V-30
b. Safety V-31
c. Bypassing V-31
d. Project Sign V-31
e. Reliability and Flexibility . . V-31
f. Operation and Maintenance . . . V-31
g. Public Water Supply V-32
h. Chemical Storage V-32
i. Ventilation V-32
j. Laboratory Facilities V-32
k. Emergency Alarms V-32
1. Hazardous Materials V-32
m. Sewers V-33
n. Equipment V-33
o. Shellfish Waters V-33
p. Pretreatment V-33
q. I & A Technology Confirmation. . V-33
3. Plans and Specifications Approval. . V-33
K. O&M Facility/Training Grants V-35
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 VI- 4
E. Administrative Review VI- 5
1. Priority List Compliance and Certifi-
cation VI- 5
2. Application Form VI- 6
3. Contracts and Subagreements .... VI- 8
4. Intermunicipal Agreement VI- 9
5. Plan of Operation VI- 9
6. Pretreatment Requirements VI-10
7. User Charge System VI-12
8. Industrial Cost Recovery System . . VI-13
9. Evidence of Compliance VI-15
a. Flood Disaster Protection Act. . VI-15
b. Sewer Use Ordinance VI-15
c. Sewer System Rehabilitation
Schedule VI-16
10. Public Participation Work Plan . . . VI-16
F. Grant Award Procedures VI-17
IX
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Page
G. Procurement of Construction Contracts . . VI-19
1. Authorization and Formal Adver-
tising for Bids VI-19
2. Review of Bids VI-19
3. Grant Increases/Decreases VI-20
4. Protests VI-22
5. Rejection of All Bids VI-23
6. Authorization to Award Contracts. . . VI-24
H. Preconstruction Conference VI-25
I. Monitoring of Construction Activities . . VI-28
1. Change Orders VI-28
2. On-Site Inspection VI-31
3. Payment Conditions VI-34
4. Plan of Operation VI-35
CHAPTER VII. FINANCIAL CONSIDERATIONS
A. Introduction VII- 1
B. Allowable and Unallowable Costs VII- 2
1. General VII- 2
2. Allowability Determinations VII- 2
3. Allowability 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- 5
Rate Studies VII- 5
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
Public Participation On-Site Visits . VII- 7
Cost of Grantee Training Workshops. . VII- 7
Redesign/Replanning Costs Resulting
from Changes in Federal Require-
ments VII-'8
Field Surveys to Identify Cultural
Resources VII- 8
Industrial Planning VII- 8
Facilities Serving Communities
and Federal Facilities VII- 9
Site Acquisition vs. Site Pre-
paration Costs VII- 9
Certificate as to Title to Project
Site VII-10
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Page
Acquisition of Privately or Publicly
Constructed Waste Treatment
Facilities VII-10
Demolition of Existing Structures. . . VII-11
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-16
Biological "Seeding" VII-16
Service Charges VII-16
Fringe Benefits VI1-17
Labor Charges and Related Costs ... VII-17
Start-up Services VII-17
Pretreatment Program VI1-19
Individual Systems VI1-19
Royalties and Patents VII-19
Crossover Sewers VII-20
Cost of Implementing the Uniform
Relocation Assistance and Real
Property Acquisition Policies Act
of 1970 (PL 91-646} VII-20
C. Force Account VII-26
1. General VII-26
2. EPA Prior Approvals VII-26
3. Other Considerations VII-27
D. Payments VI1-29
1. General VII-29
2. Prior Costs VII-29
3. Schedules VII-30
4. Interim Payments VI1-31
a. Payment Requests Review VII-32
b. Documentation VII-32
c. Grant Conditions VII-33
5. Final Payments VII-33
6. Refunds, Rebates, Credits, etc VII-33
XI
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APPENDICES
Appendix A
Appendix B
Appendix C
E. Increases and Decreases
1. Increases
2. Increase Notification Procedure
3. Decreases
4. Decrease Notification Procedure
F. Audits
1.
2.
3.
4.
5.
6.
General ,
Objective ,
Types of Audits ,
Criteria for Choosing Projects . . ,
Major Activity Areas for Audit Focus,
Final Report ,
VII-34
VII-34
VII-34
VII-35
VII-35
VII-36
VII-36
VII-36
VII-36
VII-37
VII-38
VII-39
Flow Diagram
Forms
Transmittal Memoranda
LIST OF FIGURES
FIGURE
III-l Review of A & E Contracts
IV-1 Schematic Flow Diagram
IV-2 Procedures for Infiltration/Inflow Review . . .
IV-3 Procedures for Review of Cultural Resources . .
IV-4 Procedures for NEPA Review
V-l Schematic Flow Diagram
VI-1 Schematic Flow Diagram
Ill- 6
IV- 2
IV-28
IV-70
IV-78
V- 3
VI- 2
XII
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CHAPTER I
INTRODUCTION
A. GENERAL
B. SECOND EDITION CHANGES
C. LEGISLATIVE HISTORY
D. HANDBOOK ORGANIZATION AND USE
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A. GENERAL
This chapter describes the organization of the Handbook and
its use in administering the construction grants program. The
Handbook of Procedures (MCD-03) was first published in February
1976 and took into account laws, regulations and policy in effect
as of July 1, 1975. Subsequently three transmittal memoranda
(TM's) were issued to reflect policy changes occurring after the
original text was published.
On December 27, 1977 Congress enacted "The Clean Water Act"
PL 95-217 (CWA) which provided mid-course corrections to "The
Federal Water Pollution Control Act Amendments of 1972" (PL
92-500). "The Clean Water Act" mandated significant changes in
the conduct of the construction grants program necessitating the
publication of this second edition of the Handbook of Procedures.
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B. SECOND EDITION CHANGES
The second edition of the Handbook of Procedures replaces
the first edition dated February 1976, and reflects the laws,
regulations and policies in effect as of October 1, 1979.
The first edition used italics when a direct quotation was
cited from the law or regulations. The second edition uses
quotation marks for this purpose and cites references as appro-
priate. Italics are reserved for use of future updates of this
second edition as explained in this chapter under item D.5
Updating. Previous italicized updated material from the first
edition are not specifically identified in the second edition
but are included in normal typeface.
The first edition made reference to Program Guidance Memo-
randa (PG s) and cross-referenced the corresponding Program
Requirements Memoranda (PRM's). Only PRM's are referenced in
the second edition.
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C. 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 neces-
sary 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 the projects to be funded was made the responsibility
of the States, reflecting the policy of Congress to recognize,
preserve and protect the primary responsibilities of the States
in preventing and controlling water pollution. The Act autho-
rized an appropriation of fifty million dollars a year for such
grants to be allocated to the States on the basis of relative
population and per capita income. Grants from the State alloca-
tions were made directly to applicants for projects certified
by the State as entitled to priority for a grant over other
eligible projects in the State on the basis of water pollution
control and financial needs. The grants were limited to 30% of
the eligible project cost not to exceed $250,000.
Appropriations were increased during the early 1960's, and
major amendments to PL 84-660 occurred in 1966. At that time
appropriation authorizations were increased, the maximum dollar
limitation on grants was dropped, the Federal share was increased
to a maximum of 55%, and provision was made for future reimburse-
ment of State or local funds used in lieu of Federal funds in
construction of projects when Federal funds were inadequate
to provide grants for all eligible project within a State.
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.
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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 reimburse-
ment provisions of the earliest statutes. Also, a strong enforce-
ment program was called for which would encompass the statewide
planning process, areawide planning, facilities planning, the
construction grants program, and discharge permits.
PL 92-500 also introduced the three step grant process i.e.
Step 1 - planning; Step 2 - design; Step 3 - construction.
Under this Act, grantees were required to provide a minimum of
secondary treatment to be eligible for a Federal grant. New
terminology and concepts were introduced such as facilities
planning, infiltration/inflow analysis, environmental assessment,
user charge/industrial cost recovery, cost-effectiveness, best
practical waste treatment technology, etc. The Act also
authorized $18 billion over a five year period to support the
construction grants program and provide for a continuity of
funding.
PL 92-500 was amended on December 27, 1977 by the Clean
Water Act, PL 95-217 (CWA). This bill contained mid-course
corrections to the earlier legislation and authorized $24.5
billion in support of the construction grants program over a
five year period. Several significant changes were introduced
into the construction grants program. For example grantees are
now required to evaluate innovative and alternative (I&A)
technologies when planning their projects. The mandatory I&A
evaluations reflect the desire of Congress to bring about
conservation through recycling and more efficient energy
utilization or recovery. For approved I&A projects, the Federal
grant share for Step 2 and Step 3 projects may be increased to
85%.
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In addition, the CWA encouraged and provided support funds
for, the delegation of the operation of the construction grants
program to State agencies which can demonstrate the necessary
competency to effectively conduct the program. And, to facilitate
administering grants for small communities, a combined Step 2+3
grant can be used where appropriate.
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D. HANDBOOK ORGANIZATION AND USE
1. Purpose
This Handbook is intended to serve as a guide in processing
grant applications for Step 1, Step 2, Step 3 and Step 2+3 pro-
jects and addresses the processing of grants as of October 1, 1979.
Generally, the Handbook addresses processing procedures for
administrative and technical functions separately. However, when-
ever possible, the review of administrative and technical functions
should be done concurrently.
While the administrative procedures to be followed in
processing construction grant applications are summarized in this
Handbook, a more comprehensive discussion of overall administative
requirements is contained 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,
Step 3, and Step 2+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 step grant.
Particular attention is given to eligible costs and the processing
of payment requests.
The Handbook begins with recommendations for the pre-
application conference and proceeds through the completion of
construction, including start-up and operation and maintenance
requirements. Review procedures relating to administrative and
technical requirements are identified separately but grouped
together where they apply to a single function wherever possible.
Technical requirements, which are either complex or extensive,
are in sufficient detail to assure uniform treatment of key
aspects of these requirements.
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The construction grant program is concerned with four
types of projects:
Step 1 Projects - Planning
Step 2 Projects - Design
Step 3 Projects - Construction
Step 2+3 Projects - Design and Construction
An applicant receiving a grant for a Step 1 project,
prepares a facilities plan. The completed facilities plan is an
application requirement for a Step 2 project grant. However, the
review of the facilities plan is described in Chapter IV as a part
of the Step 1 project grant processing procedures. Once the
facilities plan is approved by both the State and EPA, the applicant
need only submit the additional administrative and technical require-
ments for a Step 2 project grant as described in Chapter V. Simi-
larly, 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. Review procedures are 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 described in greater detail in the appro-
priate references. Check lists may be utilized as reminders of
review requirements.
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References;
Appropriate laws, regulations, Program Requirements Memoranda
(PRM), Program Operations Memoranda (POM), guidelines, technical
bulletins, etc. are cited. Copies of such reference material can
generally be found in the EPA Regional or State Agency Offices.
Some of the review procedures are self-explanatory or do
not lend themselves to the above format. In these cases, the
requirements or procedures 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.
Although the processing steps set forth in the Handbook
are intended to bring about uniformity in the servicing of
construction grant applications natiowide, differences in the
structure of EPA Regional or State Agency Offices may require
some adjustment in the manner in which various review procedures
are followed.
5. Updating
The Handbook will be updated as changes in laws, regulations,
or policy occur. Responsibility for revising and updating the Hand-
book rests with the Program Policy Branch, Municipal Construction
Division, Office of Water Program Operations, and revisions will be
issued from that office.
m™ \ In July 1976' EPA ceased to use Program Guidance Memoranda
IPGMs; to communicate 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 was a mechanism for assuring that the essence of
emerging policy and procedure changes were concurrently readied
for inclusion in the Handbook.
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The new system consists of: (1) Program Requirements Memoranda
(PRMs) which convey program policy. (In terms of administering the
Construction Grants Program, the provisions of PRMs are to be carried
out to the same extent as regulations); (2) Program Operations Memo-
randa (POMs) which are for internal or "housekeeping" matters, i.e.
they relate to administrative procedures to be followed by Regional
or State staffs in processing grant documents or preparing program
reports; and (3) Transmittal Memoranda (TMs) which contain changes
to the Handbook. In implementing the new system, all PGMs were
reviewed. Those no longer needed were purged and those which
remained in effect were redesignated as PRMs 75-1 through 75-40.
(See PRM 76-2).
As indicated above, Handbook revisions will be forwarded
by a Transmittal Memorandum (TM). Each TM will be designated with
a sequential number (e.g., TM: 80-1) indicating the fiscal year
and number of the issuance, and will provide specific instructions
for removal of obsolete pages and exhibits and insertion of new
material. So that changes can be readily identified, text revisions
will be printed in italics and underlined.
Additionally, each revised page will show the TM number,
month and year (bottom right side) in which revision was made.
The TM may be detached from the material transmitted and
inserted in Appendix C. "Transmittal Memoranda". Regularly, 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: a schematic flow diagram for the processing
of construction grants.
Appendix B: exhibits of frequently used OMB and EPA
forms.
Appendix C: "Transmittal Memoranda" (TMs), issued by
Headquarters to explain revisions to the Handbook may be stored
here.
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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 The Clean Water Act,
PL 95-217, (CWA) which directly affect the construction grants
program.
PL 92-500 contained complex and far reaching pollution
control measures and firmly committed the Federal Government
to eliminate pollution of the nation's waterways. PL 95-217 amended
PL 92-500 strengthening its goals and reaffirming its commitments.
Even though there is a firm Federal commitment, the States continue
to retain primary responsibility for the establishment of water
quality standards, the control of waste discharges, and the enforce-
ment of these standards. However, to insure a sound basis of
control PL 95-217 authorized the continuation of the planning
processes being carried out by the States under earlier legis-
lation.
2. State Continuing Planning Process
Section 303(e) of the CWA requires each State to establish
and maintain a continuing planning process (CPP) which must be re-
viewed and approved periodically by the Regional 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;
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g. methods of obtaining control over the disposal of all
residual waste from any water treatment processing;
h. an inventory of waste treatment works necessary to be
constructed to meet water quality standards.
The output of the continuing planning process is a document
which describes the operating policies, procedures and practices
of a State in implementing the eight requirements listed above. The
actual function of planning, implementing, reassessing, revising and
implementing these requirements has been labeled the Water Quality
Management (WQM) process. Three of the eight requirements listed
above are of particular concern to the construction grants program,
namely:
- water quality management plans (referred to in earlier
years as "208" plans)
- waste load allocations (referred to in earlier years
and contained in "basin plans")
- State priority system and list (discussed in Section B
of this chapter).
All of these agency programs and functions have as their
common objective the attainment of water quality standards. These
standards are or have been established by the States and approved
by EPA under the CWA or earlier legislation.
Re_: 40 CFR Part 35, Subpart G
3. Waste Load Allocations
As an integral part of the WQM process and as a first step
in achieving the established water quality standards, the State
must 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
publicly owned treatment works (POTW's) need only achieve secondary
treatment.
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If the model of the basin predicts that water quality stan-
dards will not be met when all point sources achieve secondary
treatment, the segment is classified as "water quality limited1.
The inputs to the model are varied with the result that waste load
allocations are established for each discharge in this segment and
represent the minimum of treatment to be achieved by any future
publicly owned wastewater treatment works. With regard to projects
receiving a construction grant, the reviewer ensures that the proposed
project .meets the State established waste load allocation for the
segment of stream into which the project may discharge its effluent.
This is distinct from the effluent limitations which may be imposed
by the State agency for other alternative discharges (land appli-
cation, groundwater recharge, industrial reuse for example).
It should be noted that in establishing waste load alloca-
tions for publicly owned treatment works no direct controls are
exercised to limit the non-point sources. Non-point source control
is addressed in appropriate water quality management plans.
Re_: 40 CFR Part 35 Subpart G
4. Water Quality Management Plans
Regulations published after the passage of PL 92-500
(40 CFR Parts 130 and 131) made a distinction between Basin Plans
and Areawide Waste Treatment Management Plans (the latter more
commonly referred to as 208 Plans). As program experience was ob-
tained it became clear that the planning efforts were not distinct
and should be more closely coordinated and integrated. On May 23,
1979 EPA published Subpart G to 40 CFR Part 35 entitled "Grants for
Water Quality Planning, Management, and Implementation". Subpart G
replaces entirely the earlier 40 CFR Parts 130 and 131.
Section 208 of the CWA provides for the Govenor of a State
to designate a region for areawide waste treatment management
planning. In general, the designated regions have substantial water
quality control problems caused by urban-industrial concentration
or other factors. The stream segments in these areas (generally
water quality limited) require comprehensive areawide planning to
meet water quality standards. Planning considerations not only
include limitations on municipal and industrial point sources but
also address land use policies to control non-point sources, storm-
water 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.
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In non-designated areas the State agency is responsible to
conduct water quality management planning to the extent necessary
for the water quality problem.
In both designated and non-designated areas the responsible
planning agency will conduct a water quality assessment and develop
a WQM work program. The State Agency will utilize the individual
work programs as well as its own to develop a State strategy. The
State strategy document will address items such as funding, resources,
priorities, etc. and is submitted annually to the Regional Administra-
tor of EPA for approval and eventual funding. The final output from
these planning activities is a water quality managment plan.
The construction grant project reviewer is concerned with
WQM planning as it relates to a specific project under review. In
designated 208 planning areas the applicant for a construction grant
must be the agency identified in the approved WQM plan. Also,
population forecasts used in facilities planning must agree, with
few exceptions, to those contained in the approved WQM plan. It is
of utmost importance that the construction grant project reviewer
and the grantee coordinate their activities with the appropriate
WQM planning agency.
EPA policy concerning coordination between applicants and
(208) planning agencies is explained in "Guidance for Preparing a
Facility Plan" (MCD-46).
Re_: 40 CFR Part 35 Subpart G
40 CFR Part 35 Subpart E, 35.925-2 and Appendix A
PRM 75-38
5. Facilities Plans
Facilities plans are required by Section 201 of the CWA.
They may be considered as the implementation part of the States
Continuing Planning Process. Facilities plans are the first stage
of the three part construction grant process. The facilities
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 facilities planning areas.
Coordination and cooperation are essential to avoid duplication,
but the completion of facilities plans should not be delayed or
postponed pending completion of WQM plans. Rather, the WQM plans,
when completed, should incorporate the provisions of the completed
facilities plans.
II-4
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Ideally, the WQM plan establishes the waste load allocations,
and designates the facilities planning areas and the implementing
agencies. The facilities plan develops a specific project which
is the most environmentally sound and cost-effective for achieving
the stated water quality standards. In the case of non-designated
areas, the State agency will establish the boundaries of the
facility planning area, subject to the approval of EPA. After
September 30, 1979, the project must be based on waste load
allocations from the approved WQM plan, unless a deviation is
granted.
Facilities planning is discussed in greater detail in
Chapter IV and is the subject of the publication: Guidance for
Preparing a Facility Plan.
Re: 40 CFR 35.917
6. Municipal Permits
The Clean Water Act establishes 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 WQM plans under Sections 208 or 303(e) or
facilities plans under Section 201 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, con-
ditions 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 facilities
planning area and the construction grant process will begin. An
applicant for a construction grant must comply, at a minimum,
with applicable existing permits. The coordination of grants process
and the NPDES permit issuance process is vital. Policy and procedures
to achieve this coordination are set forth in "the National Munici-
pal Policy and Strategy" (October 1979).
Re_: 40 CFR Part 125
40 CFR 35.925-6
II-5
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7. Reviews of Advanced Treatment Projects
Current EPA policy requires a rigorous review of projects
designed for treatment more stringent than secondary. The incre-
mental, additional capital costs of a project, which are attri-
butable to effluent limitations or water quality requirements more
stringent than secondary, must be based on a justification showing
significant receiving water quality improvement and mitigation of
public health problems where they exist. Furthermore, projects re-
quiring treatment more stringent than secondary should be evaluated
for their financial impact on the community. Under this policy,
the Regions have primary responsibility for reviewing such projects,
and will decide how to proceed in accordance with PRM 79-7. In
general, where projects have incremental costs beyond secondary of
$1 million or less, the Region retains the decision-making authority.
Where incremental costs exceed $1 million, approval must be given
by EPA Headquarters. Specific procedures to be followed in the
review of applicable projects are identified in PRM 79-7.
II-6
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B. STATE PLANNING AND IMPLEMENTATION PROGRAMS
1. State/EPA Agreement
After fiscal year 1979, the State/EPA agreement (SEA) pro-
vides the basis for the planning and implementation programs under
CWA as well as under other EPA legislation including the Resource
Conservation and Recovery Act and Safe Drinking Water Act. Each
year the Regions and States negotiate SEA's which identify the
States' environmental problems, objectives and priorities and des-
cribes coordination and integration among the covered programs.
It includes the annual work programs of the covered programs, a
summary of the major work elements, and, by reference, the State's
strategies. It focuses the attention of top EPA and State managers
on the major expected accomplishments and establishes the res-
ponsibilities of each necessary to achieve those accomplishments.
Grants for FY 1980 under Section 106, 205(g) and 208 cannot be
awarded until the 1980 SEA is executed.
2. State Strategy
The State strategy, which is incorporated into the SEA by
reference, is annually updated under the work program and includes
a. goals for a five-year period and estimated costs of
activities to control priority water quality problems;
b. an identification of governmental entities expected
to be responsible for conducting the activities; and
c. a summary of anticipated Federal and other funds for
the strategy period.
Within these three items and of particular concern to the
construction grants reviewer is the State project priority list.
It is from this list that projects are certified by the State for
funding and the construction grants process begins.
Re: 40 CFR 35.915(c), (e), 1503, 1509-1, -2, 1511-2
II-7
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3. State Priority System and Priority List
Consistent with areawide WQM plans and as an outgrowth of its
program stategy, the State must prepare a needs inventory which ranks
all of the significant municipal discharges within the State.
The State priority system describes the methodology used to
rate and rank projects considered eligible for grant assistance.
It also sets forth the administrative, management and public
participation procedures required to develop and revise State
project priority list.
The project priority list is a ranked listing of projects
for which Federal assistance is expected during the five year
planning period starting at the beginning of the next fiscal year.
The State priority system is based upon the following
criteria:
a. the severity of the pollution problem;
b. the existing population affected;
c. the need for preservation of high quality waters;
d. at the State's option, the specific category of need
that is addressed.
- The State has the sole authority to determine
the priority for each category of need. These
categories comprise mutually exclusive classes of
facilities which were identified in the needs
survey prepared under Section 516(b) of the CWA
and include:
Category I:
Category II:
Category IIIA:
Category IIIB:
Category IVA:
secondary treatment
more stringent treatment
i nfi1tration/inf1ow correction
sewer system replacement or
major rehabilitation
new collectors and appurtenances
II-8
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Category IVB: new interceptors and appurten-
ances
Category V: correction of combined sewer
overflows.
e. Step 2, Step 3, and Step 2 + 3 projects utilizing pro-
cesses and techniques meeting innovative and alterna-
tive guidelines in Appendix E, 40 CFR Part 35, may re-
ceive higher priority. Also 100% grants for projects
that modify or replace malfunctioning treatment works
constructed with an 85% grant may receive a higher
priority;
f. other criteria, consistent with these, may be considered
(including the special needs of small and rural
communities). The State may not consider: the project
area's development needs not related to pollution
abatement, the geographical region within the State, or
future population growth projections; and
g. in addition to the criteria listed above, the State must
consider the treatment works and step sequence; the
allotment deadline; total funds available; and other
management criteria.
The project priority list is developed by applying the
priority system to projects included in the needs survey prepared
under Section 516{b) of the CWA. In addition, the State must con-
sider construction grants needs and priorities set forth in certified
State and areawide water quality management plans.
While the project priority list must be developed in accord-
ance 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 dividing the work into several segments or smaller
projects. This might result in two lists. Or the State could
reserve funds for projects of smaller communities as defined by the
State and approved by the Regional Office. In the former case,
both the State and the applicant must recognize that:
a. all grants must be awarded at the 75% level except
in the case of projects meeting the innovative or
alternative technology criteria or 100% grant
funded projects that modify or replace malfunctioning
treatment works constructed with an 85% grant;
II-9
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b. the project must be comprised of a discrete and
meaningful segment of the treatment system;
c. the awarding of the grant does not bind EPA to
fund the remaining parts of the treatment system;
and
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 must reflect the funding cutoff
The fundable portion will include those projects planned for grant
award during the first year of the five year period. The total
grant awards on the fundable portion may not exceed the total funds
expected to be available during the year less all applicable re-
serves (see 4 "Funding" below). The remaining portion will include
all projects outside the fundable portion that may, under anticipated
allotment levels, receive funding during the five year period.
The format for and project information required on the
project priority list is contained in the regulations (40 CFR
35.915(c)(2)) and annual guidance issued by the Administrator. The
annual guidance also outlines the funding assumptions and other
criteria useful in developing the five year priority list.
In reviewing the State priority list, it is necessary to
insure that:
a. the information in 40 CFR 35.915(c)(2) is included
for each project;
b. the grant funds involved equal or do not 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; and
e. previously approved Step 1 and Step 2 projects are
properly reflected and realistically scheduled for
funding.
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The State's annually submitted priority list is not accepted
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.
Rej 40 CFR 35.915, .930-4, .935-1, .960
40 CFR 35.1509-2
PRM 75-14, PRM 75-24,
PRM 77-1
4. Funding
a. General:
Under the CWA, authorization for funding construction
grants projects are provided over a five year period. However, such
funds only become available if and when Congress appropriates them.
Generally, each fiscal year, Congress appropriates an amount equal
to or less than the amount authorized. EPA, in turn, allots these
appropriated funds to the States in accordance with the Congressionally
mandated formula (generally based upon need and population).
Allotments are available to the States for two fiscal years after
which time the unobligated funds in each State are pooled together
and real lotted to those States which utilized all their funds.
b. Reserves:
In developing the fundable portion of the priority list,
the State must set aside several reserves. Some reserves are re-
quired by law; others are optional. For example:
(1) Reserve for innovative and alternative technology.
Each State has to set aside from its annual allot-
ment a specific amount which is to be used to
increase the Federal share from 75 percent to 85
percent for those eligible portions of a project
meeting the innovative or alternative technology
criteria. The set-aside is 2 percent of the
State's annual allotment for FY 1979 and 1980
and 3 percent for FY 1981. Of this amount not
less than one half of one percent is to be used
for innovative projects. The increased Federal
11-11
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share (from 75 to 85 percent) is applicable
only to Step 2, Step 3 or Step 2+3 projects
(not Step 1). Reserves not obligated during
the initial allotment period will be removed
from the State and real lotted to States which
did obligate their full annual allotment.
(2) Reserve for grant increases. Each State must
set aside not less than 5 percent of its annual
allotment for grant increases to cover cost
overruns or to fund the development of municipal
pretreatment programs.
(3) Reserve for Step 1 and Step 2 projects. Each
State has the option of reserving funds for Step
1 and Step 2 projects which may be approved for
funding by the State after the approval of its
project priority list. The reserve may be up
to 10 percent of the State's annual allotment.
(4) Reserve for alternative systems for small
communities.
(a) Each State with .a rural population of
25 percent or more must set aside 4
percent of its annual allotment to fund
alternatives to conventional treatment
works for small communities.
(b) For non-rural States the Regional
Administrator, at the request of the
Govenor, may authorize a reserve of up
to 4 percent to be used for funding
alternatives to conventional treatment
works for small communities (3,500 or
less or dispersed sections of larger
municipalities).
NOTE: If funds placed in reserves under
(2), (3), or (4)(b) are not
obligated prior to the end of the
initial allotment period, they can
be used to fund other projects on
the priority list to avoid being
subject to reallotment.
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(5) Reserve for State management assistance grants
under Section 205(g) of the Act. Where an
agreement between the Regional Administrator and
a State is entered into under which the day-to-day
operation of the Construction Grant Program is
delegated to that State on a function-by-function
basis, a Construction Management Assistance (CMA)
Grant may be awarded to the State to cover the
State's costs in carrying out the functions
delegated under the agreement. To fund a CMA
grant, the State must reserve from its allotment
an amount not to exceed 2 percent of each year's
allotment or $400,000 whichever is greater.
c. Other Than Reserves:
Each State may use 25 percent of its annual allotment to
fund certain categories of projects. These categories include:
- sewer system replacement or major rehabilitation (IIIB)
- new collectors (IVA), new interceptors (IVB) and appurtenances
- correction of combined sewer overflows (V)
All projects proposed to be funded in these categories which
would exceed this 25 percent limitation will be reviewed by the Regional
Administrator to determine whether or not the proposed project meets the
enforceable requirements of the Act.
Re_: 40 CFR 35.904, .910-2(b), .915(g), .915-1, .930-4,
.935-1, .935-11
PRM 79-6
5. State Delegation
Delegation to the State agencies of various review functions
of the construction grants program is intended to eliminate duplica-
tion of effort and to improve program efficiency and quality while
at the same time shorten the time to process and to award grants.
Regulations issued under PL 92-500 encouraged the Regional Administrators
to enter into written agreements with the State agencies whereby the
State would certify the technical or administrative adequacy of
specifically required documents. Accordingly, agreements have existed
11-13
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between specific States and Regions permitting State agency certifi-
cation of plans and specifications, O&M Manuals and other documents
under the construction grants program.
Section 205(g) of PL 95-217 extended this concept considerably
by providing for the State to assume responsibility for conducting a
full range of construction grant activities, and for funds needed to
effectively administer the delegated program. Section 205(g) dele-
gation agreements can be entered into between the Region and State
after the Regional Administrator is assured that the State can and
will administer the full gamut of Construction Grant Program activities
in accordance with EPA requirements. Functions delegated under
the agreement are "phased-in"--i.e., the agreements prescribe their
sequence and timing. Generally grant application and award procedural
type functions and Step 2 activities are delegated initially while
the review and approval of facility plans (because of their complexity)
and construction inspections (because, on an interim basis, this
activity can be conducted by the Corps of Engineers under an
interagency agreement with EPA—see 6 below) are deferred until later.
During the "phase-in" period extensive training of State personnel
is conducted by experienced Regional and State staffs and the State's
grant certification procedures are closely monitored by the Region.
Where delegation agreements exist, the reviewer must become
familiar with the terms of the agreement and know which functions and
activities are delegated, which are not, and the mechanisms for co-
ordination in order that State-EPA duplication is eliminated and a
unified effort is maintained. In addition, reviewers must know the
review and approval procedures to be followed by the State, the
scope, depth, and frequency of Regional Office monitoring activities,
and the specific actions to be taken when inadequate performance is
found.
By law, certain functions of EPA may not be delegated. Hence,
under delegation agreements, EPA must continue to perform or provide
final certification of the following:
a. award of grants or amendments
b. National Environmental Policy Act (NEPA) reviews,
decision and preparation of Environmental Impact
Statements if necessary
11-14
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c. decisions and enforcement of Civil Rights, minority
business enterprise (MBE) participation, Equal
Employment Opportunities and other Federal require-
ment related to discrimination
d. dispute determinations concerning project eligibility
e. determinations of protests under A/E or construction
contract procurements
f. resolution of construction grant audit exceptions
g. determination that an overriding Federal interest
exists in a particular project which requires greater
Federal oversight or participation
h. final determinations under Federal statutes other
than the CWA.
The ultimate purpose of the State delegation program is to
develop a self-sustaining Federal construction grant program at the
State level. Hence, training and monitoring activities must be
carried out so that this goal can be achieved.
Re_: 40 CFR 35.912, .960(a), Subpart F
POM 78-5
6. U.S. Army Corps of Engineers
In January 1978 EPA entered into an interagency agreement
with the U.S. Army Corps of Engineers under which the Corps would
provide assistance to EPA primarily in administering the Step 3
aspects of the Construction Grants Program. The specific functions
to be carried out by the Corps are provided for in each of the ten
separately developed regional agreements between the Regional
Office and the geographically adjacent Division Office of the Corps.
Corps responsibilities and procedures for dealing with grantee
projects and project documents vary from Region to Region and S.tate
to State. However, in general, in the case of new Step 3 projects,
the Corps is responsible for project management from grant offer
acceptance to project close-out (with certain exceptions, i.e.,
making payments, UC/ICR system approvals, final resolution of audit
11-15
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exceptions, etc.). Corps activities on Step 3 projects which were
well under construction prior to the Corps agreement will vary from
interim inspections to full project management.
In addition, the Corps conducts biddability and constructibi-
lity reviews on plans and specifications on all Step 2 projects in
nearly every State prior to their approval of plans and specifications;
and, on very large projects, or clusters of projects in a metropolitan
area, with construction costs totaling about $50 million or more, the
Corps provides full time on site presence—i.e., continuous inspection.
Fundamental to all agreements is that functions which are
delegated to a State will not be performed by the Corps. However,
where temporary shortages in staff resources exist in a delegated
State, that State may request (of EPA) Corps assistance in carrying
out interagency agreement assignments for interim periods. Again,
such activities must be carefully documented in Regional agreements
so that all necessary requirements are fulfilled and maximum
efficiency is achieved in moving grantee projects to a successful
operation.
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CHAPTER III
PREAPPLICATION INFORMATION
A. GENERAL
B. APPLICANT ELIGIBILITY
C. PREAPPLICATION CONFERENCE
-------
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 State, in conjunction with
the Region, 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
occurrences, a preapplication conference between the applicant, the
State and EPA to jointly review both program requirements and appli-
cant needs, is strongly urged.
To assist applicants in understanding the program, EPA has pre-
pared a booklet entitled, "How to Obtain Federal Grants to Build
Municipal Wastewater Treatment Works" (MCD-04). This booklet should
be provided to a prospective applicant with the grants application
package and reviewed at the preapplication conference.
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B. APPLICANT ELIGIBILITY
"Municipalities, intermunicipal agencies, States, or interstate
agencies are eligible for grant assistance." The regulations also
provide a more detailed description of an eligible applicant under
definition of a "Municipality" which reads in part:
"Municipality. A city, town, borough, county, parish,
district, association, or other public body (including an
intermunicipal agency of two or more of the foregoing
entities) created under State law, or an Indian tribe or
an authorized Indian tribal organization, having jurisdiction
over disposal of sewage, industrial wastes, or other waste,
or a designated and approved management agency under section
208 of the Act."
In essence, an eligible applicant must satisfy a three part test.
The applicant must:
1. have as one of its principal responsibilities the treat-
ment, transport or disposal of liquid wastes of the
general public in a particular geographic area;
2. have the legal authority to subsequently construct and
manage the proposed facility; and
3. be the designated agency identified in an approved
Water Quality Management plan authorized under
Section 208 of the Act (where applicable).
Notably excluded from eligibility are revenue producing entities
and special districts (such as school or park districts) not having
as one of their principal responsibilities the treatment, transport
or disposal of liquid wastes. Under the CWA, the treatment of
water for human consumption is considered an industrial undertaking
and whether publicly or privately owned, it is in the same category
as any other industrial service (power plants, airports, mass trans-
portation) and not eligible for a construction grant.
Grant assistance may be provided small wastewater (individual)
systems where such systems are more cost effective than centralized
systems, and where public ownership is proven not feasible. However,
the applicant must be a municipality.
Re_: 40 CFR 35.920-1, .905, .917-3(a), .925-2, .925-5
PRM 75-17, PRM 75-18, PRM 77-1, PRM 79-8
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 individ-
ual State's and applicant's needs and capabilities. Several impor-
tant 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. No award may be
made for a new sewage collection system in a community unless the
bulk of the design flow (generally two-thirds) is attributable to
that part of the community in existence as of October 18, 1972.
Re_: 40 CFR 35.925-13
June 30, 1975 - After this date the applicant must not initi-
ate work until a Step 1 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 a Step 1 project.
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 35.925-18
III-3
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December 27, 1977 - Passage of PL 95-217. Costs for pri-
vately owned treatment works, serving one or more principal resi-
dences or small commerical establishments inhabited or used prior to
this date, are grant eligible.
Re: 40 CFR 35.918-1(a)
September 30, 1978 - Facilities planning begun after this
date, whether or not prepared under a Step 1 grant, requires analysis
of innovative and alternative treatment processes and technologies,
primary energy requirements, and potential opportunities for recrea-
tion, open space and access to bodies of water.
Re_: 40 CFR 35.917-l(d) (8), (9), .917-l(j)
February 1, 1979 - Procurement of subagreements initiated on
or after this date must be in compliance with the minority business
enterprise (MBE) policy of EPA.
Re: 43 FR pp. 60220-60224
February 16, 1979 - Public participation program requirements
must be met in the development of: the State priority system and
annual fundable project list, plans for wastewater treatment facilities,
UC/ICR systems, and State delegation on or after this date.
Re_: 40 CFR Part 25
44 FR pp. 10300-10304
October 1, 1979 - After this date, in order to be grant
eligible, facility planning must be based on information in approved
Water Quality Management plans (unless excepted).
Re_: 40 CFR 35.917(e)
June 30, 1980 - After this date pretreatment requirements
must be met where applicable to Step 2 grant assistance.
Re_: 40 CFR 35.907, .920-3(b) (9)
December 31, 1980 - After this date pretreatment require-
ments must be met where applicable to Step 3 grant assistance.
Re: 40 CFR 35.907, .920-3(c) (4)
III-4
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2. Contracts, for Personal and Professional Services
It is EPA's policy to ensure that procurement of subagree-
ments is conducted in a manner which provides free and open competi-
tion, and is negotiated on the basis of demonstrated competence and
qualifications with a fair and reasonable price.
In the procurement of subagreements, the procedures detailed
in the regulations must be followed (a copy of the regulations should
be provided to the applicant). The applicabilities of specific
clauses of the regulations are outlined in Figure III-l. Procure-
ment initiated on or after February 1, 1979 must be in compliance
with the goal oriented policies and procedures regarding minority
business enterprises (MBE) set forth in 43 FR pp. 60220-60224, which
outlines responsibilities of EPA, grantees, consulting firms, prime
contractors, and MBEs.
It is the intent of the agency that simple, clearcut con-
tracts which leave no room for future disagreement, be negotiated.
These contracts should be such that the engineer receives a fair
price with a reasonable profit for his work, and the municipality
receives competent, complete professional services at a fair cost.
Cost reimbursement or fixed price contracts, or combinations thereof,
may be negotiated for architectural or engineering services. Per
diem may be used where no other types are applicable. Specifically
prohibited are cost-pius-percentage-of-cost and percentage-of-con-
struction cost contracts which penalize the engineer for designing
the most economical facility. All contracts should clearly establish
a maximum price which may not be exceeded without formally amending the
contract.
The employment of any contract arrangement requires a careful
analysis of the scope of the work to be performed and a detailed esti-
mate 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. Should
the scope of work change during the performance of the project, the
contract would be open for amendment.
Re: 40 CFR 35.936, .937, .939
Appendix C-l, D
43 FR pp. 60220-60224
3. Administrative Requirements
The administrative requirements to be fulfilled by the appli-
cant are extensive. All necessary forms, authorizations, timing
requirements, and legal requirements should be discussed. The appli-
cation form (5700-32) should be reviewed line by line. In addition,
III-5
-------
Figure III-l. Review of A & E Contracts
| START REVIEW |
NO
HANDLE AS
SMALL PURCHASE
(35.936-19)
YES
MORE DETAILED
COST INFORMATION
(35.937-6(b))
& PRIOR EPA
APPROVAL BEFORE
EXECUTION
COMPLETE REVIEW
NEGOTI
ASSURA
COSTSU
REQU
(35.937
i
SOLICI
REQL
(35.937-
I
ATION
NCE &
IMMART
IRED
TATION
IIRED
2,-3,-4)
NO SOLICITATION
^ NECESSARY
(ELIMINATE
35.937-2,-3,-4)
'YES
NO XGRANTEE^S.
X. SATISFIED^-^
,A
NO vXSAME A ft EN.
— C AS PREVIOUS >
III-6
-------
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, 3 and
Step 2+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. prior allowable costs, if any, must be claimed
in the initial application for grant assistance
Re_: 40 CFR 35.925-18, .940
b. project work may be accomplished by force account
(municipal or public service employees) with prior
approval of the project officer if the applicant
can demonstrate that:
(1) he possesses the necessary competence to
accomplish the work
(2) either the work can be accomplished more
economically by the use of the force account
method, or emergency circumstances dictate
its use.
Rej 40 CFR 35.936-14
c. the institutional arrangements and agreements
between jurisdictions
Note: Since the agreements often entail long periods
of negotiations, action on them should begin as early
as possible during the Facility Plan.
Re: CFR 35.917-2(a) (3), .917-6
d. payment of non-federal share of project costs
Re.: 40 CFR 35.925-5, PRM (Management Reforms to
Reduce the Time Interval Between Step 3 Grant
Award and Initiation of Construction)
e. priority lists
Re_: 40 CFR 35.915, .925-3
PRM 79-6
f. the procurement of professional services and
contracts
Re: 40 CFR 35.936, .937, .938, .939, 965 and
Appendices C & D
III-7
-------
g. record keeping
Re; 40 CFR 30.800, .805
h. limitations on collection systems
Re_: 40 CFR 35.925-13, .905
PRM 78-9
i. user charges and industrial cost recovery
Re: 40 CFR 35.925-11, .928, .929
j. public participation
NOTE: Prospective applicants should be made
aware of the requirement that from the outset
of and during the facility planning process
a public information program must be main-
tained. A public participation outline must
be included with the plan of study; and forty-
five days after the Step 1 award, the grantee
must submit a brief Public Participation Work
Plan. (For the minimum public participation
requirements see page IV-56.)
Re_: 40 CFR 35.917-5, 40 CFR Part 25
k. initiation of property acquisition, where applicable
Re_: 40 CFR 35.940-3, PRM (Management Reforms
to Reduce the Time Interval Between Step 3
Grant Award and Initiation of Construction)
1. compliance with the requirements of the Civil
Rights Act of 1964, including applicability to
sewage collection systems for minority areas,
and MBE policy.
Re: 40 CFR 7, 8, 12
43 FR pp. 60220-60224
PRM 75-32
m. small wastewater systems
Re_: 40 CFR 35.918
PRM 79-8
n. coordination of grant funding with other federal
agencies (FmHA, EDA, HUD, CSA)
Re: PRM 79-8
o. OMB A-95 review procedures (clearinghouses)
Re_: 40 CFR 30.305
III-8
-------
p. allowable and unallowable costs
Re_: 40 CFR 35.940
q. other Federal requirements
Re: 40 CFR Part 30, Subpart C
4. Technical Requirements
All technical aspects of the Step 1, 2, 3, and 2 + 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
Re: 40 CFR 35.920-3, .917
Guidance for Preparing a Facility Plan (MCD-46)
Model Plan of Study (MCD-24)
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_: 40 CFR 35.917-1 (d), Appendix A, Guidance
for Preparing a Facility Plan (MCD-46)
d. infiltration/inflow analysis, sewer system evaluation
survey
Re; Handbook for Sewer System Evaluation and
Rehabilitation (MCD-19)
40 CFR 35.927
PRM 78-10
e. environmental information document integration
in the facility plan and possible environmental
impact statement proceedings (including "piggy-
backing" option), with emphasis on secondary
impacts
Re: 40 CFR Part 6 (Subpart E) 35.917-1(d) (7), .925-8
Guidance for Preparing a Facility Plan (MCD-46)
Environmental Assessment of Construction Grants
Projects (FRD-5)
PRM 75-26, PRM 75-31
III-9
-------
f. pretreatment and treatment of incompatible pollu-
tants
Re_: 40 CFR 35.907, .925-15, .935-19, 40 CFR Part 403
g. BPWTT, including secondary treatment and waste
stabilization ponds, land application, waste-
water reuse. (AWT or AST projects must undergo
stringent review, see Chapter IV, 1.3.)
Re: Alternative Waste Management Techniques for
Best Practicable Waste Treatment, Evaluation
of Land Application Systems
40 CFR 35.917-l(d) (4), (5)
h. innovative and alternative analysis
Re_: 40 CFR 35.908, .917-1 (d) (8), Appendix E,
I&A Technology Assessment Manual (MCD-53)
i. other Federal requirements, such as historical pre-
servation, archeological investigations flood-
plain management and wetlands protection, prime
agricultural land, flood insurance, etc.
Re_: 40 CFR Part 6, Subpart C; Part 30, Subpart C
EO 11988, 11990
PRM 75-27, PRM 76-5
j. coordination with WQM agencies
Re_: 40 CFR 35.917(e), .917-7
PRM 75-38
k. multi-purpose projects
Re_: PRM 77-4
1. recreation and open space
Re: 40 CFR 35.917-1(j)
111-10
-------
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. PREPARATION OF THE FACILITY PLAN
H. FACILITY PLAN (ADMINISTRATIVE REVIEW)
I. FACILITY PLAN REVIEW
-------
A. INTRODUCTION
This chapter describes the contents of, and review procedures
for processing 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
includes a discussion of Water Quality Management (WQM) plans as
they relate to the plan of study. Costs incurred before filing
the application are also discussed.
Section E, Administrative Review, describes the procedures in-
volved in reviewing clearinghouse comments, priority list compliance
and certification, application form, and contracts and subagreements.
Section F, Grant Award Procedures, describes the action re-
quired on the part of EPA in making the grant offer.
Section G, Facility Plan Preparation, describes responsibilities
during preparation of the facility plan.
Section H, Facility Plan (Administrative Review), describes
the procedures for approaching the evaluation of the facility plan,
the review of clearinghouse comments and State approval.
Section I, 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.
IV-1
-------
B. SCHEMATIC FLOW DIAGRAM (Figure IV-1).
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 as performed by the applicant, State and EPA.
CHAPTER 2
/"STATE PRIORITY ^\
1 SYSTEM J
C STATE PLANNING^ 1
PROCESS )
|c
HAPTER 3
PREAPPLI-
CATION
CONFERENCE
CLEARING-
HOUSE
COMMENTS
-i
STEP 1
APPLICATION
PLAN OF STUDY
STATE REVIEW
EPA REVIEW
GRANT
AGREEMENT
r PREPARATION
f SUBMISSION OF
FACILITY PLAN
CLEARING-
HOUSE
COMMENTS
STATE REVIEW
NO
NO
EPA REVIEW
IV-2
-------
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 applicant is to be informed through the State
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, local and Federal agencies including
Clearinghouses (A-95 process); and, significant public
comments
3. State Priority Certifications, EPA Form 5700-28 (furnished
by State)
4. Application, EPA Form 5700-32, including authorizing re-
solution
5. Proposed subagreements (generally A&E contracts) or ex-
planation of method of awarding proposed subagreements,
including evidence of compliance with MBE policy
Re: 40 CFR 35.920-2(b), .920-3(a)
40 CFR 30.305, .315
IV-3
-------
D. REVIEW OF THE PLAN OF STUDY (ROS)
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 sche-
dule, and itemized costs for the completion of the specific tasks.
Discussion:
The plan of study is the first element of grant request
to be submitted by the applicant. It concisely describes the scope,
schedule, and costs of the proposed 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, historical and archeological sites, and
economically depressed areas.
The plan of study should also include the design effluent
limitations for the proposed project. To avoid long replanning or
design delays which might otherwise result from effluent limitations
changes, limitations requiring treatment greater than secondary
should be reviewed in accordance with PRM 79-7.
The plan of study must be submitted to the appropriate A-95
clearinghouse for review prior to formal submission to the State
and EPA as part of the Step 1 grant application. The plan of study
must be reviewed by all agencies to insure consistency with pre-
viously approved wastewater management plans, interstate agreements,
and other state, areawide, or local plans which are applicable.
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 es-
tablished, the grantee may submit requests for payment of work that
has been completed, in accordance with the grant payment schedule.
IV-4
-------
Review Procedures:
In reviewing the plan of study, attention must be focused
on those items which are required by regulations as well as those
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
understands them and will be able to proceed in a manner which will
satisfy them.
Regulations require that the plan of study contain five
items as follows:
"(i) The proposed planning area;
(ii) An identification of the entity or entities that
will be conducting the planning;
(iii) The nature and scope of the proposed Step 1
project and public participation program, in-
cluding a schedule for the completion of specific
tasks;
(iv) An itemized description of the estimated costs
for the project; and
(v) Any significant public comments received."
Additional items which should be included in the plan of
study are suggested in Guidance for Preparing a Facility Plan and
Model Plan of Study. These include maps detailing the study area's
political boundaries, surface water resources, and service areas of
existing waste treatment systems; description of project need due
to State or Federal enforcement orders, public health or water
quality problems; and previously prepared documents and other data
which will be used in developing the facility plan.
If, based on this review, the need for an Environmental
Impact Statement (EIS) is apparent, the Regional Office may initiate
the joint EIS/Assessment procedure ("piggybacking") outlined in
PRM 75-31). The use of this procedure can result in considerable
savings of time.
EPA must also determine the level of public participation
to be required (exempt, basic, or full scale) for the proposed
project.
Re_: 40 CFR 35.920-3(a), PRM 75-31
Guidance for Preparing a Facility Plan (MCD-46)
IV-5
-------
2. Planning Considerations
Prior to awarding a grant, EPA must determine that the
proposed POS is consistent with any applicable water quality manage-
ment (WQM) plan approved under section 208 or 303(e) of the CWA and
that the applicant is the wastewater management agency designated
in an approved WQM plan. The reviewer must be familiar with the
planning area and be aware of the status of applicable plans.
Facilities planning must be based on waste load allocations,
delineation of facility planning areas, and total population pro-
jections and disaggregations in approved WQM Plans. After October 1,
1979 no grant assistance may be approved if such information is not
available in an approved WQM plan. Notable exceptions are: (1)
where facility related information was not within the WQM scope
of work and (2) where award of grant is necessary to achieve water
quality goals of the CWA.
Re_: 40 CFR 35.917(3), .925-2
Guidance for Preparing a Facility Plan (MCD-46)
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.
To ensure, where possible, that costs incurred are allow-
able, the regulations specify that "no grant assistance is authorized
for Step 1 or Step 2 project work performed before award of a Step 1
or Step 2 grant." However, in conjunction with the first award of
grant assistance, payment is authorized for preaward, allowable
costs in the following special cases:
a. where Step 1 work was begun after the approval of the
plan of study by the Regional Administrator, provided
that the State has requested and the Regional Adminis-
trator has reserved funds for the Step 1 grant, and
IV-6
-------
provided that the grant is applied for and awarded
within the allotment period of the reserved funds.
b. where Step 1 or 2 work was begun after October 31,
1974 but before June 30, 1975, in accordance with an
approved plan of study or facilities plan respectively,
provided that the grant is awarded before April 1,
1981.
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 35.920-3(a), .925-18(a), (c), .945(a)
IV-7
-------
E. ADMINISTRATIVE REVIEW
1. Clearinghouse Comments
Purpose:
Applicants for construction grants for wastewater treat-
ment facilities are required to comply with the Office of Manage-
ment and Budget (OMB) Project Notification and Review System (Cir-
cular 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 submit a plan of study and related Step 1
application material to the State and/or regional clearinghouses for
comment 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 ex-
plaining how the comments were considered. If a clearinghouse
recommends that the application 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 explana-
tion from the applicant, State, or clearinghouse. More serious
adverse comments may dictate that the application be returned to
the applicant through 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
IV-8
-------
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:
Only projects which have been certified by the State as en-
titled to priority for Federal assistance may receive a grant.
Following EPA approval of the State priority system and acceptance
of the project priority list, each project must be 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). Refer to chapter II for a discussion of the State
priority system and list.
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 cur-
rent priority list. When such projects are certified, the certifica-
tion must signify that the grant is to be made from that reserve
allotment.
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 reallotments;
d. the award of grant assistance will not jeopardize the
funding of any projects of higher priority;
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(b), .920-2(b), .925-3, .925-4
~~ PRM 75-14, PRM 75-16, PRM 75-24
IV-9
-------
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 include that area deemed necessary to
prepare an environmental assessment and to assure that the most
cost-effective means of achieving the established water quality
goals can be planned for and implemented. 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.
The CWA requires 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 the application a copy of
a current resolution authorizing the signer to act as the official
representative of the applicant (Part V, item 1). Any subsequent
changes in the authorized official must also be substantiated.
Review Procedures:
Review application form and determine that:
IV-10
-------
a. the name, project number and description of the project
and amount of grant request agree with the State
Priority Certification, Form 5700-28;
b. the form is signed by the authorized representative and
a copy of the authorizing resolution is attached;
c. information regarding project location, entities in-
volved 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.
f. Part III, Section D, Proposed Method of Financing Non-
Federal Share, insures that applicant can successfully
fund his share of the project costs.
Re: 40 CFR 30.315
40 CFR 35.917-2, .917-3(a), .920-2, .925-5
PL 94-488
31 CFR Part 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 sub-
agreements 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 subagreements or an explanation of the intended
method of awarding subagreements for performance of any substantial
portion of the project work.
IV-11
-------
The detailed requirements of, and procedures for, procuring
personal or professional services appear in 40 CFR 35.936, .937
and Appendices C & D. Certain clauses of these regulations (e.g.
access) are applicable to subagreements and lower tier subagreements
in excess of $10,000. See Figure III-l, previous, for applicability
of specific clauses. The goal oriented policies and procedures
regarding MBE set forth in 43 FR pp. 60220-60224 contain the responsi-
bilities of EPA, Grantees, Consulting firms, Prime Contractors and MBEs.
Review Procedures:
Review the agreement(s) and determine that:
a. the grantee has complied with 40 CFR 35.936, .937, and
(if applicable) .939;
b. the scope of work is sufficient to prepare an approv-
able facility plan;
c. completion schedules are reasonable and in agreement
with the plan of study;
d. the applicant has complied with EPA's policy for in-
creased use of minority business enterprises (MBE).
Re_: 40 CFR 35.920-3(a)(2), .935-7, .936, .937, .939
Appendix C-l & D
40 CFR 30.605
43 FR pp. 60220-60224
IV-12
-------
F. GRANT AWARD PROCEDURES
The administrative procedures required in awarding a grant are
summarized below. A detailed line-by-line explanation of the admin-
istrative 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. Regionalized Procedures
a. Notification to financial management branch;
b. Preparation of transmittal letters to the appli-
cant and State agency (include instructions 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 Type-
writer 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. The applicant is not to be notified of grant
award until 5 working days after congressional notification.
EPA Form 5700-1D is used in the case of a decrease, declina-
tion, or withdrawal of a grant.
IV-13
-------
3. Grants Information and Control System (GIGS)
The Grants Information and Control System (GICS) is a com-
puter 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 con-
gressional 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.
Re: Grants Information and Control System (GICS), WWT
Construction Grants Information Data Base,
Operators' Manual
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, Revised (1976)
40 CFR 30.305-4(c)
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.
IV-14
-------
Procedures:
EPA Form 5700-20 (see Appendix B) is completed by the
Regional Office based upon the information submitted in the appli-
cation package. The agreement must define the approved project
scope, budget, total project costs, and pertinent schedule dates in
accordance with the application. 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.
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 authorized representative 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.
Re: 40 CFR 30.345
40 CFR 35.930
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 of the
status of 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.
IV-15
-------
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 finds necessary in order
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 quarterly for any facilities planning
project scheduled to take more than 1 year for
completion;
3. advise the grantee (normally on large complex projects)
that periodic inspections or audits will be made by
either the State or EPA;
4. review the Public Participation Work Plan which is to
be submitted 45 days after the Step 1 grant award;
5. point out special grant conditions.
NOTES: (1) During preparation of the plan, conduct midcourse
meetings and other progress reviews as necessary.
(2) In the case of small communities or rural
grantees the applicant should be advised to
consult with the local Fanners Home Administra-
tion Office during facility planning period
concerning possible supplemental or alternative
funding sources.
Re: 40 CFR 35.917-3(b), .917-4(b), .917-5, .925-13, .935-7
IV-16
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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 appropri-
ate 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 state-
ment 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 pro-
cedures, 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 com-
ments are not adequately addressed, the completed facility plan must
be returned to the applicant through the State agency.
Re_: 40 CFR 30.305
40 CFR 35.917-l(f)
OMB Circular A-95
Guidance for Preparing a Facility Plan (MCD-46)
IV-17
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2. State Review and Certification
Purpose:
The State agency is responsible for the review and coordina-
tion of each facility plan and must provide certification to EPA
that these responsibilities have been met.
Discussion:
After obtaining clearinghouse comments, the grantee must sub-
mit 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 accordance with the water quality objectives of its pro-
grams. Problems between the State and grantee should be resolved
prior to review by EPA. Facility plan approval by EPA cannot be
made 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 available 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 (MCD-46)
IV-18
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FACILITY PLAN REVIEW
General
The plan must encompass the following:
1. 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;
2. a description of the complete treatment system of which
the works are a part;
3. infiltration/inflow documentation;
4. a cost-effective analysis of 1, 2, and alternatives
including evaluation of:
a. the relationship of capacity to needs and reserve
b. flow and waste reduction, including non-structural
measures
c. optimum performance of existing system
d. ability to meet effluent limitations
e. application of best practicable waste treatment tech-
nology
f. ultimate disposal of effluent and sludge
g. the environmental impacts as contained in an adequate
environmental information document
h. innovative and alternative technology processes
i. primary energy requirements;
5. effluent limitations or NPDES permit;
IV-19
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6. clearinghouse comments;
7. a final responsiveness summary of public participation;
8. a statement that grantee has resources to construct, operate
and maintain the treatment works;
9. a statement of compliance with Civil Rights Act;
10. a description of recreation, open space and water access
opportunities analyzed in the recommended plan;
11. a municipal pretreatment program;
12. an estimate of total project costs and charges to customers;
13. a statement on the availability and estimated cost of pro-
posed sites.
Re: 40 CFR 35.917-1
NEPA
Regulations for the National Environmental Policy Act (NEPA)
require that "an adequate environmental information document should
be an integral part of any facilities plan submitted to EPA or to a
State." (40 CFR 6.507, November 6, 1979) In States where the review
of facilities plans has been delegated, State personnel must prepare
a preliminary environmental assessment that will serve as the basis
for EPA's decision to issue a finding of no significant impact (FNSI)
or an EIS. The environmental information document must cover all
potentially significant impacts4 related factors and concerns under
the following:
1. a description of the existing environment, with emphasis
on the conditions relevant to the analysis of alternatives;
2. a description of the future environment without the project
(no action);
3. a discussion of the purpose and need for wastewater treat-
ment in the planning area;
4. documentation of sources used in the evaluation;
5. an evaluation of alternatives, with attention given to
long term impacts, irreversible impacts and induced impacts;
IV-20
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6. a discussion of the environmental consequences, including
direct and indirect effects of the proposed action;
7. a description of steps to minimize adverse effects, both
structural and nonstructural, considered in the plan or
identified during review, including any which should be-
come contingencies to award of further grant assistance.
To enable grantees to comply with these often complex environ-
mental review requirements, EPA has prepared a publication entitled
"Environmental Assessment of Construction Grants Projects" (FRD-5).
Re_: 44 FR pp. 64184-64185
Contents
The facilities planning 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 require-
ments, EPA prepared a publication entitled, "Guidance for Preparing
A Facility Plan" (MCD-46). 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 "Guidance for Preparing A Facility Plan" (GPFP) contains
a suggested format or outline for the plan. 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 Pro-
cedures are provided. The references at the end of each part refer
to the regulations, program requirements memoranda, or guidance
which apply to the matters covered therein.
1. Summary, Conclusions and Recommendations
(Self-explanatory)
IV-21
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2. Introduction
2.1 Study, Purpose and Scope
(NOTE; The proposed project may include only sewage
collection, trunk or intercepting sewers, treatment plant expansions
or additions, small wastewater systems, or alternative wastewater
treatment systems. 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
omi tted.)
2.2 Planning Area (Map)
(Self-explanatory)
3. Effluent Limitations
Purpose
The limitations upon the effluent from the proposed treat-
ment works establish quantitative parameters which must be
achieved in order to meet water quality standards or environmental
needs.
Discussions
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 best practicable waste
treatment technology (BPWTT, secondary treatment or more stringent
water quality related requirements for discharge to surface waters)
except for discharges from combined systems. Combined (storm and
sanitary) sewer systems present a special case. The required
levels of pollutant removals, and the evaluation of alternatives
to achieve these levels, are to be determined case-by-case as
required by Agency policy (PRM 75-34).
IV-22
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The facility plan must evaluate alternative solutions to the
water pollution or public health problem, and the effluent limitations
may vary from one alternative to the next. 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 water quality standards.
In cases of treatment and discharge, or land application
systems involving discharge to surface waters, secondary treatment
is required for segments classified as effluent limited. Higher
levels of treatment may be required in order to achieve water
quality standards. Segments of receiving waters requiring higher
treatment, for nutrient removal or greater reduction in BOD or
suspended solids, are designated as water quality limited (see
Chapter II). Where land application or utilization techniques
result in eventual discharge to groundwaters (infiltration, per-
colation, etc.), the minimum acceptable treatment must be able to
meet BPWTT.
Current EPA policy requires a rigorous review of projects
designed for treatment more stringent than secondary. The incre-
mental, additional capital costs of a project, which are attributable
to effluent limitations or water quality requirements more stringent
than secondary, must be based on a justification showing significant
receiving water quality improvement and mitigation of public health
problems where they exist. Furthermore, projects requiring treat-
ment more stringent than secondary should be evaluated for their
financial impact on the community. Under this policy, the Regions
have primary responsibility for reviewing such projects, and will
decide how to proceed in accordance with PRM 79-7. In general,
where projects have incremental costs beyond secondary of $3 million
or less, the Region retains the decision making authority. Where
incremental costs exceed $3 million, approval must be given by EPA
Headquarters. Specific procedures to be followed in the review of
applicable projects are identified in PRM 79-7.
Although secondary treatment is the minimum acceptable for
discharge to navigable waters, regulations (40 CFR Part 125) allow
modification of NPDES permits to provide levels of treatment below
secondary under certain circumstances. These regulations apply to
publicly owned treatment works (POTW) having existing discharges
to marine waters as of December 27, 1977, where special applications
for waivers were made in accordance with timing requirements.
IV-23
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In preparing the facility plan, the grantee is required to
evaluate the following waste treatment management techniques:
"(i) Biological or physical-chemical treatment and dis-
charge to receiving waters;
(ii) Systems employing the reuse of wastewater and re-
cycling of pollutants;
(iii) Land application techniques;
(iv) Systems including revenue generating applications; and
(v) Onsite and nonconventional systems."
The State has the responsibility for certifying effluent
limitations. Where existing effluent limitations are found to be
inadequate, and State funds for recomputing the allocations are not
available, 201 funds may be used to define effluent standards appli-
cable to the project.
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 dis-
charges;
b. limitations established in the WQM plan;
c. the reuse or groundwater recharge requirements if land
application or onsite and nonconventional systems have
been selected.
Errors or inconsistencies are to be corrected by the State
agency.
Note: For projects involving treatment levels higher than
secondary, PRM 79-7 must be consulted.
Re_: 40 CFR Part 133, Part 125
40 CFR 35.917, .925-2, .925-6
GPFP (MCD-46)
Evaluation of Land Application Systems
PRM 79-3, PRM 79-7, PRM 79-8, PRM 79-11
IV-24
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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 among 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 bound-
aries, political jurisdictions, and physical character-
istics (topography, geology, soils, hydrology, etc.);
b. Organizational context—the role and relationship between
all existing organizations involved in planning,
financing, and operating publicly owned treatment
works;
c. Demographic data—the most current population estimates
(in accordance with 40 CFR Part 35 Appendix A) and
the latest decennial census; population growth pat-
terns and densities; minority areas not presently
sewered; number and types of major industries and
other employment generating entities; existing land-
use patterns and controls including comprehensive
planning and zoning regulations;
d. Water quality—identify quality, quantity and uses
of existing surface and groundwaters;
e. Other existing environmental conditions—to the ex-
tent appropriate, descriptions of air quality, noise
levels, energy production and consumption, wetlands,
flood plains, coastal zones, wild and scenic rivers.
prime agricultural lands and other environmentally
sensitive areas, historic, architectural and archeolo-
gical sites, plant and animal communities and habitats
which may be affected, especially those on the
threatened or endangered species list, and related
Federal or State projects in the area.
IV-25
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The reviewer is to take special note of the items under-
lined in e. above and included in the discussion since the impact
of the proposed project on these items may require the grantee,
State or EPA to follow special review procedures and may result in
special conditions on subsequent grants (see section 10). Also,
the reviewer should note major industrial contributors to insure
that they provide pretreatment, as necessary, in the proposed
project.
Rej 44 FR pp. 64184-64185
GPFP (MCD-46)
PRM 75-32
4.2 Existing Wastewater Flows and Treatment Systems
Purpose and Discussion:
The inventory of existing wastewater treatment facilities,
including onsite disposal systems, 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;
c. show the location of, and describe, major industrial
discharges;
d. show locations of significantly developed areas
served by onsite or nonconventional systems;
e. include a discussion and analysis of average, peak
dry (including sources), and wet-weather flows
(also discussed in I/I analysis);
IV-26
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f. show the locations of all bypasses and overflows;
g. describe the extent of any combined sewer system;
h. describe any flow reduction program in effect.
Re_: GPFP (MCD-46), 40 CFR 35, Appendix A
PRM 78-9
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 existing sewer system to be connected to the proposed
treatment facilities when the State has inadequate information upon
which to base a certification of such conditions.
Discussion:
As part of the facility plan, a sewer system evaluation
is begun, consisting of an infiltration/inflow analysis conducted
in accordance with the "Handbook for Sewer System Evaluation and
Rehabilitation", and/or PRM 78-10. The purpose of the analysis is
to identify infiltration and inflow which may be economically re-
moved from the system. The results are used in sizing the proposed
facilities.
Program experience gained during the initial years indi-
cates the following procedures can be used to accelerate infiltra-
tion/inflow decisions:
a. When the flow meters at the treatment plants are
determined to be well maintained and acceptably
accurate, the quantity of I/I should be determined
on the basis of plant flow charts in conjunction with
the calculated theoretical base flow. A subsystem
approach for determining I/I conditions may be ad-
visable in large systems, especially where flow
records for pump stations are available or where
specific problem areas are known or suspected by the
grantee.
IV-27
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Figure IV-2. Procedures for Infiltration/Inflow Review
POSSIBLE
EXCESSIVE
I/I
IGNIFICAN
fc-QFFECT ON DE
CAPACITY
STATE
CERTIFICATION
INCREASE SCOPE
& STEP 1 GRANT
COMPLETE
STEP 1 WORK
PERFORM SSES
IN STEP 1
REHABILITATION
ft MAINTENANCE
PROGRAM
NO
COMPLETE
STEP 1 WORK
PERFORM
SSES IN STEP 2
See Appendix A for overall schematic diagram of Construction
Grants Process
IV-28
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b. When the maximum infiltration rate based on the highest
weekly (7 days) average within a twelve month period
is less than 1,500 gallons per day per inch of pipe
diameter per mile of sewer, including service
laterals, the infiltration is considered nonexcessive.
This should normally be based on the total system flow.
c. For infiltration rates greater than 1,500 gpd/in/m,
a cost-effectiveness study is required for determining
the possible existence of excessive infiltration.
d. For separate sanitary sewers, possible existence of
excessive inflow should be determined by performing
a cost-effectiveness analysis.
e. The results obtained from an economic study in the
I/I analysis phase are, at best, preliminary and sub-
ject to further verification, when possible excessive
I/I exists. Therefore, the cost-effective analysis
should be simple and brief, and additional data
should not be routinely required.
f. A report summarizing the results based on the above
analysis is required by EPA. The report should pro-
vide flow data necessary to substantiate the report's
conclusions. When I/I is determined to be possibly
excessive, the report should include, in addition to
flow data, a detailed program and estimated costs
for performing a sewer system evaluation survey
(SSES).
g. Where possibly excessive I/I is identified, the
applicant may use the exception clause in the regu-
lations (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 demon-
strate that the proposed treatment works will be a
part of the rehabilitated sewer system.
The prudent application of these policies may 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.
IV-29
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The I/I analysis may be submitted by the grantee to 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 makes a certification of excessive or
nonexcessive I/I, the following are applicable:
a. the State must continue to have the authorization of
the Regional Administrator to make such certification;
b. the certification form must be signed by the
authorized State official and contain language speci-
fied in PRM 75-7.
If the grantee submits an I/I analysis, determine that:
a. the analysis contains a conclusion as to the quantity
of possibly excessive I/I or that excessive I/I
does not exist;
b. the methods and data analyzed are sufficient to
support the conclusions;
c. the cost estimates and schedules for a sewer system
evaluation survey have been included as appropriate.
]te: 40 CFR 35.917-1(c), .927
PRM 75-7, PRM 78-10
Handbook for Sewer System Evaluation and Rehabilita-
tion, (MCD-19)
Sewer System Evaluation Survey
Purpose:
The sewer system evaluation survey is conducted where
necessary to locate and quantify sources of infiltration/inflow and
to determine those which can be cost-effectively eliminated.
IV-30
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Discussion:
The evaluation survey must be performed by the grantee in
all cases where possibly 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." Procedures for conducting an
evaluation survey are explained in the guidance documents and
PRM 78-10.
Subject to the eligibility requirements of 40 CFR 35.927-
3(c), which prohibits the funding of rehabilitation which should
be a part of the application's normal operation and maintenance
responsibilities, sewer rehabilitation including chemical grouting,
inflow elimination, structural repairs and sewer replacement may
be performed under a Step 1 grant when approved by the State and EPA,
However, when such repairs are required for a substantial portion
of the sewer system, especially in cases where public hearings
are warranted, the grantee should propose that repair work be
performed at later dates and perhaps as part of Step 2 or Step 3.
Review Procedures:
Review the sewer system evaluation survey report to
determine that:
a. the survey report presents the results of the survey
and supports the conclusions concerning sources of
I/I;
b. a cost-effectiveness analysis is included for sources
of infiltration/inflow, based on a comparison of
cost of transportation and treatment versus cost of
rehabilitation, or the 1500 gpd/in/m rate is used to
screen subsystems for excessive infiltration;
c. the report includes a proposed rehabilitation program,
with detailed cost estimate for completion and
bidding specifications;
d. the net savings to be realized through rehabilitation
are identified both in terms of capacity and total
cost;
IV-31
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e. the quantities 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 de-
sign);
f. where the evaluation survey is extensive, the work
carried out is not a part of the grantee's normal
operation and maintenance responsibilities;
g. the report contains sufficient documentation to
support the results, including raw data, illustrations,
inspections forms, photographs and other information,
where appropriate.
Re_: 40 CFR 35.927-1, .927-2
PRM 75-7, PRM 78-10
Handbook for Sewer System Evaluation and Rehabilita-
tion (MCD-19)
Sewer System Maintenance
Purpose and Discussion:
Following the rehabilitation phase, a final analysis on
the I/I conditions should be performed by means of plant flow
charts. When available, pump stations flow data or single point
flow monitoring at the treatment plant should be used. The analysis
should be simple and brief to allow a determination of the total
quantity of non-excessive I/I remaining in the system. In addition,
the analysis should be performed based on flow data obtained
during groundwater conditions comparable to those when the initial
I/I condition was determined.
Review Procedures:
A positive and realistic maintenance program which
addresses the following should be submitted:
a. The timely elimination of all excessive inflow
sources originating from private sources which can
be cost-effectively removed. An acceptable timetable
should specify the elimination of these inflow
sources before the completion of the treatment works
construction;
b. The establishment of continuing sewer maintenance
programs to ensure that the sewer system will not be
subject to excessive I/I in the future.
Re: PRM 78-10
IV-32
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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.
This includes both centralized (conventional) facilities and de-
centralized systems (i.e. onsite systems).
Discussion:
Many existing sewage treatment facilities, including on-
site systems, 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.
For decentralized systems, the extent, nature and location of mal-
functions should be described in accordance with agency guidance
(PRM 78-9).
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 7500-5) for the project,
Review Procedures:
Items which might be considered in evaluating the per-
formance 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 7500-5);
c. the effects of infiltration/inflow;
d. the effects of industrial discharges;
e. adequate documentation of problems associated with on-
site disposal systems.
Re: 40 CFR 917-1(d) (3)
GPFP (MCD-46)
PRM 78-9
IV-33
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5. Future Situation
5.1 Land Use
Purpose:
The ability of the land and its resources to support
various uses is analyzed to aid in determining future wastewater
f1ows.
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 shall be designed for
20 years, unless the grantee can demonstrate that longer design
periods (not to exceed 40 years) are consistent with WQM plans
and would reduce overall primary and secondary impacts.
The projected land uses may be a limiting factor in deter-
mining the size, phasing, and location of the proposed facilities.
Undevelopable lands, such as steep slopes, highway rights-of-way,
power line easements, flood plains, environmentally sensitive areas,
parks, wetlands and prime agricultural lands, 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 under land use 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 enforce-
ment of zoning ordinances;
d. use of undevelopable lands in estimating future flows;
IV-34
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e. consultations with responsible planning agencies in
projecting land use when future land use plans are
lacking.
Re_: 44 FR pp. 64184-64185
40 CFR 35.917-1(d)(l) and Appendix A
GPFP (MCD-46)
5.2 Demographic and Economic Projections
Purpose and Discussion:
Increases in future waste loads and flows result in part
from population increases and industrial growth. The determination
as to which population projections should be used depends on the
status and applicability of 208 agency projections and approved,
disaggregated State projections for the facility planning area.
In the absence of either of these, future population may be fore-
cast by linear extrapolation of trends in the recent past (1960
to the present). Standards for compliance are provided in 40 CFR 35
Appendix A. Also, if the planning area includes industrial
development boards or other agencies concerned with economic
development, these agencies should be consulted for assistance in
estimating future industrial needs.
Review Procedures:
Review projections to determine that:
a. applicable projections (40 CFR 35 Appendix A) were
used;
b. any departures from approved projections are justi-
fied and documented;
c. industrial growth trends were based on valid economic
projections;
d. future growth trends have considered the limitations
imposed by land use, air or water quality restrictions,
water supply, development controls or other constraints.
Re_: 44 FR pp. 64184-64185
GPFP (MCD-46)
40 CFR 35 Appendix A 8(f)(2)
IV-35
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5.3 Forecasts of Flow and Waste Load
Purpose and Discussion:
The forecasting of future flows and wasteloads in the
planning area ties in several topics which have been considered
earlier in the facility plan. The future flows and laods will be
directly related to the future population to be served, based on
results of a survey for presently unsewered areas and industrial
activity (i.e., industries likely to use municipal plants), sub-
ject 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).
Appendix A to the regulations (40 CFR Part 35) provides
standards to be followed in the estimation of wastewater flows,
based on population and industrial growth, for facilities planning.
Use of average per capita flow rates must be based on these stan-
dards or otherwise justified.
Review Procedures:
The reviewer should focus on the methods used in estimating
future wasteloads and flows to insure compliance with the regulations.
The following considerations must be incorporated where appropriate:
a. approvable projections of economic and population
growth;
b. documentation of need for presently unsewered and/or
undeveloped areas;
c. estimates of nonexcessive infiltration/inflow;
d. analysis of pollutant content (characteristics) and
flows in the existing system;
e. consideration of combined sewer overflow;
f. industrial waste flows and loads, considering possible
reductions due to imposition of user charges, indus-
rial cost recovery, or pretreatment;
d. 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);
IV-36
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h. limitations upon flows due to land use, air quality
maintenance plans or other constraints.
Re_: 40 CFR 35.917, .927, .935-13, Appendix A
40 CFR Part 403
GPFP (MCD-46)
PRM 78-9
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 evalutate and
compare "no action" with other alternatives, the future environ-
ment 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_: 44 FR pp. 64185-64187
GPFP (MCD-46)
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, including onsite
disposal systems, may reveal that they can function more efficiently
with the addition of new equipment, operational changes or the
addition and training of operating personnel, or that the facilities
have already 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
replacements must be made, including better design, operation,
and maintenance of private onsite systems, 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 pretreat-
ment by industrial contributors or removal of excessive infiltration/
inflow should be evaluated and discussed.
IV-37
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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;
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;
h. the effectiveness and suitability of existing onsite
disposal systems, and possible modifications for
improving efficiency.
Re_: 40 CFR 35.917-1 (-d) (3)
GPFP (MCD-46)
PRM 78-9, PRM 79-8
6.2 Regional Solutions
Purpose and Discussion:
The possibility of a regional solution to wastewater treat-
ment problems should be explored early in the planning process.
If the question has been resolved by previous studies (e.g., water
quality management plans), the result may be incorporated into the
facility plan by reference. If not, the grantee should consider
various alternatives, such as, interconnection of facilities, con-
struction of one or more larger facilities in lieu of a greater
number of small facilities; combining only selected system elements
such as sludge management, laboratories, advanced treatment pro-
cesses, etcl; joint management; the creation of septic district
IV-38
-------
authorities, etc. Note: regionalization should be given careful
consideration. A regional alternative, involving extensive inter-
ceptor construction in otherwise undeveloped or undisturbed areas
may not be justifiable when compared against the potential adverse
impacts from induced growth. This should resolve the question as
to the feasibility of regionalization as a viable alternative.
Projects involving more than one political jurisdiction
require the completion of service agreements prior to the award
of the Step 2 grant. Such agreements must cover financial arrange-
ments, enforcement, user charge and industrial cost recovery
requirements, sewer system rehabilitation, sewer use ordinance, etc.
Re: 40 CFR 35.917-l(h), .920-3(b)(6)
GPFP (MCD-46)
PRM 79-8
6.3 Waste Treatment Systems
Purpose:
For each service area identified under the regional solution
analysis, the "no action" alternative and other waste treatment
management techniques must be investigated to determine which systems
are most feasible and which may be eliminated from further
consideration.
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, including
innovative and alternative technologies (40 CFR 35.908). Beyond
these, the application of basic engineering, environmental, and
economic principles to the preliminary screening process 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
savings 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 limita-
tions and State has issued a cease and desist order"). However,
IV-39
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alternatives must be given adequate consideration prior to elimina-
tion in all cases. When the reason for eliminating an alternative
is not readily apparent, the grantee is to present evidence or
discussion in sufficient detail to support his conclusion. In
particular, rejection of land application must be adequately
justified in all cases (PRM 79-3).
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. The need for new facilities must be ade-
quately addressed by the plan.
Re: 44 FR pp. 64185-64187
GPFP (MCD-46)
b. Flow and Waste Reduction
For communities with populations over 10,000 the
plan will include a flow and waste reduction program and take the
reduced flows into account in the proposed capacity of the treat-
ment works.
Possible elements of a flow and waste reduction program
include:
- a public education program;
- sewer system rehabilitation to reduce or eliminate
excessive infiltration/inflow;
IV-40
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- implementation of household plumbing fixtures and
water-saving devices;
- State laws or local ordinances to reduce water use
and nutrient discharges (e.g. phosphate detergent
ban);
- adoption of water pricing policies;
- 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 (MCD-46)
c. Configuration of Sewers and Interceptors
When service areas have been established, the con-
figuration 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 inter-
cepting sewer alternatives to insure that they conform to existing
and future land use plans. Unless necessary to eliminate existing
point source discharges, interceptors allowable for grant funding
shall not be extended into environmentally sensitive areas, prime
agricultural lands or other undeveloped areas. Similarly, at
least two thirds of the expected flow from a proposed collection
system will be for wastewaters originating from habitations in
existence on October 18, 1972. The system should not provide
any capacity for new habitations located on environmentally sensi-
tive lands. Preliminary pipe sizes and costs may have to be esti-
mated to reduce the alternatives to a manageable number.
Re_: 40 CFR 35.925-13, Appendix A
GPFP (MCD-46)
PRM 78-9
d. Sludge Disposal
The plan should adequately address alternatives for
sludge treatment and ultimate disposal of solids under the following
methods:
IV-41
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- land utilization (agricultural, soil conditioner,
etc.);
- composting;
- sanitary landfill;
- incineration, pyrolysis or coincineration with
solid waste;
- ocean disposal (only under very special circum-
stances).
EPA has published guidance documents for use by
grantees and their consultants in the evaluation'of sludge dis-
posal alternatives, and will continue to publish guidance as the
"state-of-the-art" develops in this area.
In evaluating disposal alternatives, the plan should
adequately consider public health issues, regulatory constraints,
technological aspects, and social, economic and institutional fac-
tors. The environmental effects of alternative disposal methods
should be addressed in the environmental information portions of
the facilities plan.
(Note: Criteria for determining eligibility of land
for use in sludge disposal is discussed in Chapter VII).
Re: 40 CFR 35.917-l(d)(6)
GPFP (MCD-46)
Sludge Treatment and Disposal (EPA-625/4-78-012)
Municipal Sludge Management: Environmental Factors
(MCD-28)
Municipal Sludge Management: EPA Construction
Grants Program, An Overview of the Sludge Manage-
Situation (MCD-30)
Application of Sewage Sludge to Cropland:
Appraisal of Potential Hazards of the Heavy
Metals to Plants and Animals (MCD-33)
e. Best Practicable Haste Treatment Technology (BPWTT)
The regulations require that each project evaluate,
as a minimum, the following five waste treatment management tech-
niques:
IV-42
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- biological or physical-chemical treatment and dis-
charge to receiving waters;
- treatment and reuse;
- land application techniques;
- systems including revenue generating applications;
and
- onsite and non-conventional systems.
Note: Rejection of land treatment alternatives shall
be supported by a complete justification. Factors to be evaluated
are:
- alternative site characteristics
- loading rates and land area
- estimated costs
- level of preapplication treatment
- environmental effects
See PRM 79-3.
As the "state-of-the-art" develops for each of these
techniques, EPA will publish additional technical bulletins des-
cribing 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 reveiving waters," generally requires a minimum of
secondary treatment (see Section 3) or such advanced waste treat-
ment methods as is necessary and justifiable (PRM 79-7) to achieve
the effluent limitations required to meet applicable water quality
standards. Since "reused" wastewater and runoff of "land appli-
cation" 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 comply with EPA BPWTT criteria pro-
tecting existing or potential uses of such grounwaters.
IV-43
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Where service is proposed for existing unsewered areas,
these areas must meet the requirements of 40 CFR 35.925-13.
Furthermore, thorough consideration of onsite and non-conventional
systems must be given for these unsewered areas in comparison to
conventional collection and treatment. Specific instructions are
included in PRM 78-9 and PRM 79-8.
As each of these techniques is evaluated, the grantee
must also consider how well the system lends itself to the appli-
cation of future technology for reclaiming or recycling the effluent.
Re_: 40 CFR 35.917-1 (d)(5), .925-13
PRM 78-9, PRM 79-3, PRM 79-7, PRM 79-8
Alternative Waste Management Techniques for Best
Practicable Waste Treatment
f. Combined Sewer Overflows and Stormwater Discharges
Projects involving treatment and control of combined
sewer overflows may be considered only after the planning process
has clearly established their cost-effectiveness. Such projects must
be considered on a case-by-case basis after a careful review of all
alternative control techniques has shown that, even after industrial
effluent limitations and a minimum of secondary treatment for dry
weather municipal flows are achieved, the selected alternative is
needed to protect the beneficial use of the receiving waters.
Alternative levels of treatment and options for achieving
each must be evaluated to insure selection of the most cost-effective
approach. Where a multiple-purpose approach is proposed, its grant
eligibility cannot exceed the cost of the most cost-effective
single-purpose option.
Re_: 40 CFR 35.925-21
PRM 75-34, 77-4
g. Industrial Service
The joint treatment of industrial and domestic wastes
should be considered and, where appropriate, encouraged. In con-
sidering industrial discharges, the grantee should evaluate to the
extent necessary: (1) interceptor or collector sewers proposed for
construction exclusively to serve industrial users (non-allowable
grant cost); (2) the compatability of industrial wastes with domestic
wastes; (3) the requirements for pretreatment (see Section 9.5 of
this Chapter); (4) the volume, strength and method of discharge
(batch or uniform); (5) the cost of industrial pretreatment and
IV-44
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joint treatment versus separate industrial treatment; (6) the
method of implementing and enforcing limitations on industrial
discharges.
Re_: 40 CFR 35.925-15, .907
40 CFR, Part 403
GPFP (MCD-46)
h. Innovative and Alternative (I&A) Technology
The CWA requires I&A technology assessment by Grantees
in their facility planning, and provides incentives to insure that
the technology will be seriously considered. Alternative technology
entails proven processes and techniques of wastewater treatment which
provide for the reclaiming and reuse of water, for productively
recycling waste water constitutuents or otherwise eliminating the
discharge of pollutants, or for recovering energy. Innovative
technology involves developed methods which have not been proven
fully in the circumstances of their contemplated use. They may be
either alternative technology or conventional concepts of treat-
ment, which have an acceptable level of risk and a corresponding
opportunity for significant advancement of the state-of-the-art
to meet certain national goals.
Facilities planning grants (Step 1) made after September
30, 1978 must address I&A technology. The incentives provided
by CWA include: 85 percent Federal grants (Step 2, Step 3 and
Steps 2+3) for approved I&A projects, 100 percent grants if the
projects fail within two years after final inspection; set aside
(reserve) of State's allocations to be used for funding the
increased grants from 75 percent to 85 percent; and a cost
preference of 115 percent for approved I&A projects.
Alternative systems to solve the water pollution prob-
lem are initially classified as alternative technology or conven-
tional systems. For those which are not fully proven, the risk
of success (or failure) must be evaluated against the potential
for advancement in the state-of-the-art. For alternatives passing
the fully proven test or where the risk appears reasonable, the
alternatives are evaluated against six criteria. (See 40 CFR
Part 35 Appendix E.) An alternative technology project may be
classified as innovative if it meets any one of the six criteria.
Conventional systems may be classified as innovative by meeting
either the 15 percent life cycle cost reduction or 20 percent net
primary energy reduction.
IV-45
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All feasible alternatives for which cost effectiveness
analysis will be done are analyzed to idenfify the non-innovative
system which is the lowest cost, and the non-innovative system
which is the lowest energy consumer. I&A technology alternatives
are then compared with these non-innovative systems and the 115
percent cost preference is applied, i.e., the I&A alternatives
may be as much as 15 percent higher cost than the lowest costing
alternative and still be considered equal. The 115 percent cost
preference is applied to the present worth cost (capital plus
O&M minus salvage, etc.) replaced components or system.
If the I&A project is cost effective, environmentally
sound, implementable and been subjected to public review (public
participation program) the Step 2, Step 3, or Steps 2 + 3
federal grant may be increased to 85 percent.
Small wastewater systems for communities of 3,500
population or less or sparsely populated areas (3,500 or less) of
larger communities may also be considered as alternative techno-
logy projects provided they meet certain criteria. These criteria
include: on-site disposal methods, cluster disposal systems,
collection systems using 6 inch or smaller gravity sewers,
pressure or vacuum sewers, etc. The small wastewater alternative
technology system is compared with a conventional system, and if
after application of the 115 percent cost preference the alterna-
tive technology system is cost effective, the treatment works
including the collection system may be eligible for 85 percent
grants. These systems may be publicly or privately owned but a
public body must apply for the grant and be responsible for the
implementation, construction, operation and maintenance of the
system.
It is important that the reviewer consult "Innovative
and Alternative Technology Assessment Manual" (MCD-53) for a more
complete discussion of I&A requirements, policy, methodology
for evaluating, and for guidelines in assisting both the grantee,
consultant and reviewer.
Review Procedures:
(1) If Step 1 grant was made after September 30, 1978,
insure facility plan address I&A technology.
IV-46
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(2) Insure that land application of effluent has been
considered and at a minimum one slow rate (irri-
gation) and one rapid rate infiltration alterna-
tive have been included. If land application of
effluent has not been selected, insure facility
plan clearly justifies the reason for rejection.
(3) The I&A alternative must either be fully proven
or a risk assessment must be addressed.
(4) Where either alternative technology or conventional
systems are evaluated for innovative classification,
insure that the facility plan addresses which
criteria the alternative has met (conventional must
meet either 15 percent LCC reduction or 20 per-
cent net primary energy reduction).
(5) The facility plans must clearly identify the
lowest cost and least energy non-innovative
system for comparison with the I&A alternatives.
(6) Insure that the cost effectiveness analysis has
been correctly computed taking into account:
(a) cost comparisons are for either present
worth or equivalent annual cost;
(b) O&M, salvage value, staged construction, etc.
have been taken into account over the 20 year
planning period;
(c) land has been inflated at 3 percent per year
and natural gas at 4 percent per year (must
compute present worth of salvage value of land);
(d) other costs do not include inflation;
(e) alternatives are compared on equal basis of
area sewered, population served, equivalent
levels of treatment, etc.
(7) The 115 percent cost preference has been properly
applied:
(a) For treatment plants where I&A components are
50 percent or greater of the eligible treat-
ment works costs (excluding collection and
IV-47
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intercepting sewers) the 115 percent cost
preference is applied to the entire treatment
plant.
(b) For treatment plants where the I&A components
are less than 50 percent of the eligible
treatment works costs (excluding collection
and intercepting sewers) the 115 percent cost
preference is applied only to the replaced
components.
(c) For small wastewater treatment systems the
115 percent cost preference is applied only to
the publicly owned facilities including alter-
native collecting system (not privately owned).
(8) If land application of sludge has been selected,
insure the sludge has been used productively (com-
posting, agriculture, reclaiming of disturbed land,
codisposal with refuse) to qualify as I or A
technology.
(9) If an alternative has been designated as innovative
under the 20 percent net primary energy reduction
criteria, insure energy boundary conditions have
been properly drawn.
(10) If codisposal of sludge and refuse is analyzed,
insure that costs have been proportioned properly.
(11) For projects proposing anaerobic digestion with
90 percent methane recovery, insure that the
methane is productively used (either on or off
site) and the revenue, if any, has been considered
in the cost effectiveness analysis.
(12) The federal grant participation has been computed
properly to present accurate costs to the public.
(13) Forward all proposed innovative technology projects
to the Technical Support Group in Cincinnati for
review and recommendations.
Re: 40 CFR Part 35, Preamble
40 CFR 35.905, .908, .915(a)(l)(iii), (2), .915-l(b)
(e), .917-1, .918-1, -2, -3, .930-1 (b), -5,
.935-20, .936-13(a)(2), (b), .940-3(a), (b), (c),
Appendix A, Appendix C-l(2)(d)
Appendix E, Innovative and Alternative Technology
Assessment Manual (MCD-53)
PRM's 77-4, 78-9, 79-3, 79-8
POM 79-3
IV-48
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i. Energy Requirements
For facilities planning begun after September 30, 1978,
an analysis of the operational energy inputs for each alternative
considered must be included, with the objective of reducting energy
consumption, or increasing recovery, among alternatives.
Re_: 40 CFR 35.917-1 (d)(9), Appendix E
6.4 Evaluation (Monetary, Environmental, Implementation)
Purpose:
An evaluation of the most feasible alternatives is per-
formed 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 imple-
mentation considerations.
The results of the evaluation will be a comparison 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 suf-
ficient detail and in a similar format to facilitate comparison.
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 pro-
cedures below highlight the key factors to be considered in the
evaluation.
IV-49
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Review Procedures:
Each alternative should be analyzed and evaluated with re-
gard to its relationship or impact upon the subjects below:
a. monetary cost comparison based upon:
- present worth or equivalent annual cost over
planning period;
- 15% cost-effectiveness preference for I&A tech-
nologies;
- interest rate for present worth calculations as
published by U.S. Water Resources Council at the
time of initiation of the facility plan:
- all capital and operation and maintenance costs
are included in present worth calculations;
- existing facilities considered as sunk costs;
- differential inflation allowance only for land
and natural gas;
- interest on capital equipment during construction
uniform unless period is longer than 4 years;
- useful life - land—permanent
structures 30-50 years
process equipment 15-20 years
auxiliary equipment 10-15 years;
- salvage value included in present worth calculations.
Note: The regulations (40 CFR 35.917-1(1)) and guidance
(PRM 76-3) require that monetary costs are shown in total, and in
terms of their full impact on the average citizen served by the
facilities and on industry. Itemized costs should show the capital
cost of the local share, interest on borrowed capital, sinking fund
costs, O&M costs, connection charges, etc. Criteria for identifying
"high-cost" alternatives or projects are outlined in PRMs 79-7
and 79-8. The reviewer must insure that the proposed facilities
will be affordable by the user.
Re_: 40 CFR Part 35.917-1 (d), (1), (m)
PRM 76-3, PRM 79-4, PRM 79-7, 79-8
GPFP (MCD-46)
IV-50
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b. environmental impacts (see Section 10);
- both primary and secondary;
- beneficial and adverse;
- irreversible and irretrievable commitments of re-
sources;
- long-term and short-term;
- mitigating measures.
Re_: 40 CFR Part 6
PRM 75-26, PRM 76-4, PRM 78-1
GPFP (MCD-46)
Environmental Assessment of Construction Grants
Projects (FRD-5)
c. institutional arrangements;
- identify responsible organization for each alternative;
- estimated costs allocated to each jurisdiction;
- resolutions or agreements of implementing agencies
accepting the plan.
Re_: 40 CFR 35.917-6
GPFP (MCD-46)
d. significant industrial service;
- costs of separate treatment;
- costs of pretreatment followed by municipal treatment;
- future industrial flow allowance.
Re_: 40 CFR 35.925-15, Part 403, Appendix A
GPFP (MCD-46)
e. flow and waste reduction measures;
Re: 40 CFR 35.917-1 (d)(2), Appendix A
GPFP (MCD-46)
IV-51
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f. recycling of nutrients, reuse of wastewater;
Re_: 40 CFR Part 35, Appendix A
g. sewer system arrangements;
- consideration of onsite and nonconventional alter-
natives;
- pipe sizes and useful life (20 year limitations);
- limitations on grant funding of collection systems;
- excess or reserve capacity;
- extension into environmentally sensitive areas or
other undeveloped lands;
- alternate routings;
- CSO alternatives;
- ocean outfalls.
Re_: 40 CFR 35.917-1 (d)(l), .925-13, Appendix A
40 CFR Part 233
GPFP (MCD-46)
PRM 78-9, PRM 79-8
h. method of sludge disposal;
- alternative technologies;
- codisposal options.
Re: 40 CFR 35.917-1 (d)(6)
GPFP (MCD-46)
Sludge Treatment and Disposal (EPA-625/4-78-012)
i. location of facilities;
- odors and aesthetics;
- cultural or environmentally sensitive resources
(see Section 10);
IV-52
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- relationship to flood plains and wetlands.
Re: 40 CFR Part 6
~ GPFP (MCD-46)
PRM 76-4
j. revision of waste load allocations;
Re: 40 CFR 35 Appendix A
GPFP (MCD-46)
k. construction staging;
- excess or reserve capacity;
- modular designs.
Re_: 40 CFR Part 35 Appendix A
GPFP (MCD-46)
1. project segmenting;
Re: PRM 75-14
m. flexibility;
- future land requirements for treatment plant ex-
pansion or upgrading;
- capability for future wastewater reuse;
- easements and rights-of-way for sewers.
Re_: GPFP (MCD-46)
n. reliability;
- capability of maintaining operation during equip-
ment failure or maintenance;
- treatment processes;
- equipment and personnel
Re: GPFP (MCD-46)
IV-53
-------
o. analysis of primary energy requirements of alternatives;
Re_: 40 CFR 35.917-1 (d)(9), Appendix E
p. recreation, open space and access to bodies of water
afforded by alternatives;
Re_: 40 CFR 35.917-1 (j)
q. multi-purpose alternatives.
Re: PRM 77-4
7. Plan Selection
7.1 Evaluation and Comparison of Proposals
Purpose and Discussion:
Evaluation of alternatives, comparison 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, primary energy requirements and
effects of the alternative proposals. Regardless of the display
method, the effects should be described, wherever practical, in
quantitative terms based on the supporting analyses 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 a comparative display
of alternatives for public presentation and discussion along with
an identification of the grantee's preferred plan.
Re_: GPFP (MCD-46)
7.2 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.
IV-54
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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 public a role in decision
making efforts to restore and maintain the integrity of the Nation's
waters.
All facility planning initiated after February 16, 1979,
must include either a basic or full-scale public participation
program unless a program exemption is granted by the Regional
Administrator. The basic public participation program will be
used for most projects and includes the tasks as listed in 40 CFR
35.917-5(b). A full-scale public participation program is required
for projects including preparation of an Environmental Impact
Statement, where advanced wastewater treatment levels are required,
or where particularly significant effects on matters of citizen
concern are possible (as defined in 40 CFR 35.917-5(c)(iii)). A
full-scale public participation program requires hiring a public
participation coordinator, establishing an advisory group and
holding an additional public meeting plus all of the tasks in-
cluded in the basic program. Upon written request of the grantee,
the Regional Administrator may exempt projects in which only minor
upgrading of treatment works or minor sewer rehabilitation is
anticipated. Before granting a public participation program
exemption, a notice of intent to waive program requirements must
be issued 30 days in advance, and consideration given to comments
received. Projects granted a program exemption must still hold
one public hearing and publicly disclose project costs during
facility planning. A final responsiveness summary is included
in the facility plan to discuss public participation efforts
during planning.
Review Procedures:
Insure that a public participation program appropriate
to the project has been adequately followed during preparation of
the facilities plan.
IV-55
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The following are minimum requirements applicable to both
the basic and full scale programs, except where noted:
a. a public information program was maintained throughout
the facilities planning process;
b. the public was notified and consulted during the
development of the plan of study;
c. an outline of the public participation program was
submitted with the Step 1 grant application;
d. a public participation work plan was submitted 45
days after grant acceptance;
e. at least two public meetings were held, with proper
advance notification, one early in the planning pro-
cess, and a second prior to plan selection;
f. responsiveness summaries were prepared and distributed
following each public meeting; adverse or significant
views were addressed and incorporated into the
facility plan, including the addressing of servicing
of areas where minority groups live but where there
has not been service by sewers;
g. a public hearing, with proper advance notice, was held
prior to final adoption of the facilities plan;
h. a final responsiveness summary is included in the
facilities plan;
i. for a full scale program, a public participation co-
ordinator was designated, and an advisory group
established, at the time of grant acceptance.
Re_: 40 CFR 35.917-l(g), .917-5
40 CFR Part 25
44 FR pp. 10300-10304
GPFP (MCD-46), Municipal Wastewater Management -
Public Involvement Activities Guide (FRD-7)
PRM 75-32
IV-56
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7.3 Selected Plan (major feature summary) and Reasons for
Selection
Purpose and Discussion
Following the public meeting or hearing, the alternatives
are reevaluated recognizing any new information gained during pub-
lic review and noting those most acceptable to a broad range of
public interests. The plan is then selected based on revaluation
of tradeoffs.
The selected plan, its major features, and reasons for
selection are presented in summary form for clarity and the con-
venience of reviewers.
Review Procedures:
Review the summary for inclusion of:
a. major features;
b. clear explanation and justification for plan selection.
Re: 40 CFR 35.917-1 (a), (b), 44 FR p. 64184
GPFP (MCD-46)
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
(NEPA) and other environmental and cultural resource laws.
Discussion:
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-57
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The discussion of environmental impacts of the proposed
project must be sufficient to constitute an environmental information
document for utilization by the State, or EPA in preparing an en-
vironmental assessment. This must be adequate to serve as a basis
for EPA's decision to issue a finding of no significant impact
(FNSI) or an EIS for the proposed action.
The grantee should discuss in this or other sections the
mitigating measures which will be employed in the design and con-
struction 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 discussion of:
a. any unavoidable adverse impacts resulting from the
proposed project (special note of cultural or environ-
mentally 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, and other resources, and cur-
tails the range of future uses of land and water re-
sources ;
IV-58
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d. steps to minimize adverse effects (e.g. erosion control
measures).
Re_: 44 FR pp. 64184-64185
6PFP (MCD-46)
PRM 75-26; PRM 78-1
7.5 Energy Considerations
Aspects of the selected plan which conserve energy, re-
cover energy, or reduce energy consumption, as long as they are
cost-effective, should be described. For those systems which
claim to use innovative processes or techniques on the basis of
energy reduction criterion, the plan should contain a detailed
energy analysis.
Re_: 40 CFR 35.917-1 (d)(9)
40 CFR 35 Appendix E
7.6 Recreational Opportunities
For facilities planning begun after September 30, 1978,
the opportunities for recreation, open space and access to bodies
of water potentially available under the selected plan should be
described. Any coordination measures with Federal, State and
local recreational programs and with the recreational elements of
approved areawide WQM plans should also be described.
Re: 40 CFR 35.917-1 (j)
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,
that all major components of the system have been included and
that an adequate basis has been developed for the cost estimate,
and the facilities are capable of performing as planned. The de-
tail 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.
IV-59
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Review Procedures:
Items in a preliminary design might include:
a. a schematic flow diagram;
b. unit processes and sizes;
c. plant site plans, and site availability;
d. interceptor and trunk sewer routings;
e. design criteria, including:
- detention times;
- overflow rates;
- other.
Re: 40 CFR 35.917-1(a), (b), (m)
GPFP (MCD-46), PRM
8.2 Summary of Cost Estimates
Purpose:
Cost estimates, including the impact on the average user,
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 con-
struction 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 GIGS 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).
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Review Procedures:
Review cost estimates to determine that:
a. costs for the construction of the facilities are
reasonable (PRM 79-8) and include both capital and
operation and maintenance cost (including cost of
proposed sites);
b. costs are presented in the required format;
c. schedules for the completion of related work have
been included.
Re: 40 CFR 35.917-1(1), (m)
GPFP (MCD-46)
PRM 76-3, PRM 79-8
9. Arrangements for Implementation
9.1 Institutional Responsibilities
Purpose:
The responsibilities for plan implementation are identified
to demonstrate recognition by the involved jurisdictions 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. An example of this is where one agency constructs the
treatment plant to serve the entire planning area, and the smaller
jurisdictions construct interceptor, trunk and lateral sewers.
IV-61
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In the 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 re-
view, the State and EPA may approve it even in the absence of
such agreement, provided that assurance is made that the plan will
be properly implemented.
Review Procedures:
For implementation, the plan should:
a. identify each agency or jurisdiction and its responsi-
bility;
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 and
agreements among jurisdictions;
e. include financial arrangements which obligate each
jurisdiction to enforce the requirements for user
charges, industrial cost recovery, sewer system re-
habilitation 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 pre-
sent 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)
IV-62
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9.3 Operation and Maintenance
Purpose and Discussion:
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. As a part of the Step 3 grant application, a detailed Plan
of Operation must be submitted. Where appropriate, existing manage-
ment practices should be addressed so that deficiences are recognized
and prevented from carrying forward.
Re: GPFP (MCD-46), PRM 77-3
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 cus-
tomary method of obtaining these funds is to proportion charges
to the various classes of users (40 CFR 35.929) and to recover
capital costs from industrial users (40 CFR 35.928).
Where small communities are involved in the facilities
plan, the reviewer is to insure that the economic impacts evaluation
identified in PRM 79-8 has been made, and that the community has
made the determination that it will be able to afford the local
share.
Total project costs, as well as the financial impacts of
the project on a typical residential customer, must be publicly
displayed and presented at a public meeting. Such financial impacts
must include total monthly or annual costs per customer including
pre-project debt retirement, project debt retirement, O&M costs
(user charge), connection charges, or other costs imposed on
users (PRM 76-3).
IV-63
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As a requirement for a Step 2 grant, the grantee must fur-
nish 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 as a part of the Step 3 grant application.
Review Procedures:
Review the financial program to determine that:
a. all project costs, including engineering, construction,
lands and rights-of-way, legal and fixed costs have
been estimated;
b. sources of funds are identified, acceptable and
sufficient;
c. State grants programs are applicable;
d. the grantee has reasonable expectation of obtaining
letters of intent to comply with industrial cost
recovery programs as required for a Step 2 grant.
Rej 40 CFR 35.925-11, .928, .929, Appendix B
PRM 79-8
9.5 Pretreatment Program
Pretreatment programs are intended to control toxics from
non-domestic sources and to provide for the reclamation and reuse
of wastes wherever practicable. Therefore, the particular objec-
tives at present are: preventing the introduction of pollutants
into POTWs which will interfer with treatment works operation
and/or disposal or use of municipal sludge; preventing the intro-
duction of pollutants into POTWs which will pass through treat-
ment works into receiving waters, the atmosphere or which will be
otherwise harmful; and employing opportunities to recycle and to
reclaim the wastewater and the sludge produced by wastewater
treatment.
Development of a pretreatment program is required where
the municipal facilities serve or will serve industries subject to
IV-64
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pretreatment standards under CWA. Implementation of pretreatrnent
programs is divided into two phases because of the ongoing activi-
ties of implementing standards as they are promulgated. Phase I
of the program, therefore, is the basic skeletal structure and
Phase II is the insertion as promulgated of the specific standard.
Section C.I of Chapter III lists important dates applicable
to pretreatment requirements contingent on the award of Step 2 and
Step 3 grants. For existing steps 1, 2 or 3 grants funding may be
through grant amendment.
A complete and approvable pretreatment program will
include the following:
a. Phase I
- An industrial survey identifying system users by
type and location of industry and the character and
volume of pollutants discharged;
- An evaluation of the legal authority for control and
enforcement, including adequacy of enabling legis-
lation and selection of mechanisms to be used
(ordinances etc.);
- An evaluation of revenue sources and financial
programs to insure adequate funding to carry out the
pretreatment program;
- A determination of technical information needed to
support development of an industrial waste enforce-
ment mechanism to insure the compliance with NPDES
permit conditions;
- Design of an enforcement monitoring program;
- Determination of pollutant removals in existing
treatment facilities;
- A preliminary determination of monitoring equip-
ment required at the treatment facilities;
- Determination of tolerance of the treatment facili-
ties to toxic pollutants; and
- A preliminary determination of the municipal facili-
ties needed for monitoring or analysis of industrial
wastes.
IV-65
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b. Phase II
Incorporating standards for industrial categories into
the pretreatment program to ensure implementation and to improve
effectiveness.
Re_: 40 CFR 35.907, .917-1 (k)
40 CFR Part 403
10. Summary of Environmental Considerations
Purpose:
The summary of environmental considerations serves two
objectives: (1) satisfaction of NEPA requirements, and (2) en-
surance that environmental information is considered in the
selection of a proposed plan. The summary is primarily intended
for those reviewers concerned with environmental impacts, and
should reference other parts of the facilities plan wherein de-
tailed environmental impact analyses are included.
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 re-
viewer should work with the grantee in satisfying all the regula-
tory requirements 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 environmental information presented in the facility
plan, or the environmental assessment submitted by the State, EPA
must make one of two decisions:
- issue a finding of no significant impact (FNSI) for the
project, supported by an appropriate environmental
assessment document;
IV-66
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- issue a Notice of Intent to prepare an environmental
impact statement (EIS) for the project.
In order to arrive at one of the decisions described above,
many reviewers within EPA and outside of EPA must evaluate the
proposed project and make their recommendations. The facility
plan must include pertinent environmental information to assist
in that decision.
As described in the Guidance for Preparing a Facility Plan,
the summary of environmental considerations should cover the fol-
lowing topics, with appropriate reference to portions of the plan
wherein more detailed information is provided:
10.1 Existing Environmental Conditions
10.2 Future Environment Without the Project
10.3 Evaluation of Alternatives
10.4 Environmental Effects of the Selected Plan
Section 10.5 below includes procedures to be followed
during review of the environmental information document, as inte-
grated within the facilities plan, and interagency coordination
requirements.
10.5 Interacting Environmental Considerations
a. Criteria for Determining when to Prepare an EIS
The responsible official at EPA must assure that an
EIS will be issued where proposed facilities will result in any
of the following conditions:
(1) significant, induced changes in land use
concentrations or distributions, including (but not limited to) such
factors as: increased developmental pressure on vacant land;
accelerated changes in population growth or density; or deleterious
changes in demand or availability of energy.
(2) significant, adverse effects, either direct
or indirect, on wetlands.
(3) significant effects, direct or indirect, on
the habitat of State or Federally listed threatened or endangered
species.
IV-67
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(4) direct or indirect changes.which significantly
displace population, deface existing residential areas, adversely
affect floodplains, or adversely affect significant amounts of
prinje or unique agricultural land or farm operations.
(5) adverse effects on parklands or other areas
of recognized scenic, recreational, archeological or historical value.
(6) direct or.indirect, adverse effects on local air
quality, surface or groundwater quality or quantity, or the habitats
of fish and wildlife.
(7) treated effluent will be discharged into a
water body where the present classification is considered too low to
protect current or recent uses, and effluent quality may be con-
sidered insufficient to meet the requirements of these uses.
(8) the environmental impact is likely to be highly
controversial.
Also, where a full-scale public participation program
is required, the responsible official should consider preparing an EIS.
Re_: 44 FR pp. 64184-64185
b. Required Coordination and Consultation
During the environmental review process, the responsible
official must insure that the various laws and executive orders,
independent of NEPA, are followed through appropriate coordination.
(1) Historical and Archeological Sites
EPA has the responsibility under the procedures
of the Advisory Council on Historic Preservation to insure that
archeological and cultural resources are identified in the primary
impact areas of the project. The investigation to identify re-
sources is carried out by the grantee. The exact procedures may
vary from State to State, and 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 professional qualified archeologist should be
IV-68
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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 affect 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 re-
sources 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 representa-
tive 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 effect
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 the
Advisory 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;
IV-69
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FIGURE IV-3. Procedures for Review of Cultural Resources.
IDENTIFICA-
TION OF
RESOURCE
YES
ADVISORY
COUNCIL
COMMENT
CONSULTATION
PROCESS
1. CASE REPORT
2. SITE INSPECTION
3. PUBLIC MEETING
Yl
AGREI
OF ft
s ,
•MENT
kRTIES
MEMO-
RANDUM
OF
AGREEMENT
PROCEED
>
ADVISORY COUNCIL
MEETING
AND COMMENTS
PROCEED
(WITH REPORT TO
ADVISORY COUNCIL;
IV-70
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(d) If the application of the adverse
effect criteria results in the con-
clusion 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:
- onsite 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 Agreement
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 effect of aproject on historic and archeological resources
rests with EPA under the Advisory Council Procedures.
Re: 36 CFR Part 63, Part 64, Part 66, Part 800
~~ 44 FR p. 64101
40 CFR 30.405-7, -8
EO 11593, PRM 75-27, PRM (Management
Reforms to Reduce the Time Interval
Between Step 3 Grant Award and Initiation
of Construction)
(2) Environmentally Sensitive Areas
Whenever a proposed project will affect 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 grantee in his environmental information
document. EPA has the responsibility for carrying out these procedures,
but the grantee may be encouraged to do so in preparing the facility
plan. Whether the project will have a harmful effect on these resources
requires prudent judgment on the part of the reviewer.
IV-71
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The consultations below, as applicable, must be
carried out before the facility plan may be approved.
(a) Wetlands
Consult with:
- Department of the Interior
- Department of Commerce
- U.S. Army Corps of Engineers
Document consultation and obtain written
comments from each of these agencies
where appropriate. Where wetlands may
be affected, adverse impacts must be
avoided to the extent practicable and
the responsible official must prepare
a floodplains/wetlands assessment as
part of the environmental assessment
or EIS.
Note: See discussion concerning 404
permits on p. V-15.
Re_: 44 FR 64181, 64191-64193
EO 11990, PRM 76-4
EPA's Statement of Procedures on
Floodplain Management and Wet-
lands Protection (6/5/79)
(b) 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. Where floodplains may be
affected, adverse impacts associated
with direct and indirect development
should be avoided to the extent
possible and a floodplains/wetlands
assessment must be included in the
environmental assessment or EIS.
IV-72
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Re: 44 FR 64181, 64191-64193
EO 11988, PRM 76-5
EPA's Statement of Procedures on
Floodplain Management and Wet-
lands Protection (6/5/79)
(c) Agricultural Lands
Determine whether there are significant
agricultural lands in the area and the
direct and indirect effects of the
selected plan on these lands. Identify
means to avoid or mitigate adverse impacts.
Re: 44 FR p. 64181
EPA's Policy to Protect Environmentally
Significant Agricultural Lands
(9/8/78)
(d) Coastal Zones
Consult with:
- Appropriate State Office
- Department of Commerce
Document consultation and obtain written
comments from each of these agencies
where appropriate. If action significantly
affects coastal zone area, and State has
an approved coastal zone management program,
a consistency determination must be sought
in accordance with procedures promulgated
by the Office of Coastal Zone Management.
Re: 15 CFR Part 930
44 FR pp. 64181-64182
(e) Wild and Scenic Rivers
Consult with:
- Appropriate State Office and
- Department of the Interior, or
- Department of Agriculture where
National forest lands are involved.
IV-73
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Document consultation and obtain written
comments from each of these agencies when-
ever appropriate. Where the proposed
action may have a direct and adverse impact,
the impact must be avoided; if the impact
cannot be avoided, no action may be taken
without notification of the Secretary of
Interior and Congress 60 days in advance
of taking the action.
Re: 44 FR p. 64182
(f) 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
- Appropriate State Agency
Document consultation and obtain written
comments from each of these agencies
where appropriate.
Re: 44 FR p. 64182
(g) Threatened or Endangered Species
Consult with:
- U.S. Fish and Wildlife Service
- National Marine Fisheries Service
- Appropriate State agency
Where the proposed action will have an
adverse impact on listed species or
habitat, mitigation measures must be
undertaken.
Re_: 44 FR p. 64182
50 CFR Part 402
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(3) Air Quality
The Clean Air Act requires all Federally assisted
activities to conform to any applicable State Air Quality Implementa-
tion Plan (SIP). The responsible official must assess the extent of
direct or indirect increases in emissions and resultant change in air
quality for any proposed action which may significantly affect air
quality. Where applicable:
(a) consult with State or local agencies
having responsibility for SIP develop-
ment and implementation, to ascertain
the conformity of the action to the
SIP, including compliance with applicable
emission limitations or standards.
(b) submit the conformity determination to
the designated lead State or local
agency for concurrence. Lack of
response by the lead agency during
the 30 day FNSI and 45 day draft
EIS review periods will be interpreted
as concurrence.
(c) EPA must provide in the FNSI or EIS a
response to non-concurrence, including
the basis on which conformity to the
SIP will be assured. If EPA finds
that non-concurrence is unjustified
then an explanation must be included
in the FNSI or EIS.
Re_: 44 FR p. 64182
c. Environmental Review
The environmental review by EPA is performed for
application of the criteria to determine whether an EIS is warranted
Where deficiencies are found, they shall be identified in writing
by EPA, and must be corrected before approval or determination of
EIS preparation. The review by the responsible official of EPA, is
based on:
(1) a complete facilities plan and environmental
information document, where review of the facilities plan has not
been delegated to the State.
IV-75
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(2) the grantee's environmental information document
and State's preliminary environmental assessment, where the State
has been delegated authority for facilities plan review.
(3) other documentation considered necessary by the
responsible official, or submitted by the State where delegated,
adequate to allow an EIS determination by EPA.
Re_: 44 FR p. 64186
d. Finding of No Significant Impact (FNSI)
Where, after completion of the environmental review,
a determination is made that no EIS is warranted, the responsible
official must prepare and publicly issue a FNSI. The decision not
to prepare an EIS must be substantiated by an environmental assessment,
which shall be incorporated into, or attached to, the FNSI. The
assessment provides support for the determination that the proposed
action will not have a significant adverse impact on the environment.
It is prepared by EPA, either based on the review of the grantee's
environmental information document and other data as appropriate,
or based on the State's environmental assessment or other supporting
documentation, where delegated.
When a FNSI and environmental assessment have been
prepared for the facilities plan, additional grant awards may proceed
without further FNSI preparation, unless a determination is made that
significant changes have occurred from the project as described in
the facilities plan.
Once a decision is made, and a FNSI issued for the
proposed action, the following procedures are required with respect
to the facilities plan:
(1) notify the grantee and State in writing
of approval of the facilities plan;
(2) identify any special conditions, resulting
from the environmental review, which will
be contingent on any subsequent grant awards;
(3) advise the grantee that approval of the
facilities plan does not obligate the U.S.
Government to award related grants, and that
the grantee will not receive funding for
Step 2 design until he has applied for and
received a Step 2 grant;
IV-76
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(4) update project information and cost data
in the Grants Information and Control
System (GICS).
Re: 44 FR pp. 64185-64187
e. Notice of Intent
If upon completion of the environmental review, it
is determined that significant adverse impacts will be associated with
the proposed project, and cannot be satisfactorily mitigated, the
responsible official will determine that an EIS is warranted. A notice
of intent to prepare an EIS shall then be published in the Federal
Register and otherwise released for public notification. In this case,
the reviewer should contact the grantee and State to advise them of
this decision and the implications for the project.
Re: 44 FR 64179, 64186
f. EIS Preparation
Not later than 30 days after publication of the notice
of intent, the responsible official of EPA will determine the scope of
the EIS in consultation with the State and local parties affected, at
a "scoping" meeting.
EPA will prepare the EIS either by direct use of
agency staff, by contract with a qualified consultant, or by
utilizing the joint EIS process ("piggybacking") in which the
grantee enters into a contract with a qualified consultant.
The regulations (40 CFR Part 6) outline detailed pro-
cedures and criteria to be followed in the process of EIS preparation.
However, with respect to the facilities plan, a Step 2 grant may not
be awarded until a final EIS has been prepared and all regulatory
requirements have been met. After waiver approval has been obtained,
action may continue on discrete segments of the project. The resulting
modified project will have to be rereviewed at the appropriate stage
of the facility planning process. In addition, the EIS or FNSI may
dictate requirements that can only be fulfilled by placing certain
conditions on the Step 2 grant award.
Re_: 44 FR pp. 64184, 64185; 40 CFR 35.925-8(b)
PRM 75-31
IV-77
-------
Figure IV-4. Procedures for NEPA Review.
ADDITIONAL PROCEDURES
HISTORIC
ARCHEOLOGJC
WETLANDS
OTHER
ENVIRON-
MENTAL
REVIEW
SIGNIFICANT
CONTROVERSI
IMPACT
FINDING OF NO
SIGNIFICANT IMPACT
AND ENVIRONMENTAL
ASSESSMENT
YES
See Appendix A for overall schematic diagram of Construction Grants
Process.
IV-78
-------
CHAPTER V
STEP 2 GRANT PROCESSING
A. INTRODUCTION
B. SCHEMATIC FLOW DIAGRAM
C. APPLICATION CONTENTS
D. FACILITY PLAN APPROVAL
E. ADMINISTRATIVE REVIEW
F. COMBINATION STEP 2+3 GRANTS
G. GRANT AWARD PROCEDURES
H. PREPARATION OF PLANS AND SPECIFICATIONS
I. PREDESIGN CONFERENCE
J. REVIEW OF PLANS AND SPECIFICATIONS
K. 0 & M FACILITY/TRAINING GRANTS
-------
A. INTRODUCTION
This chapter describes the contents of and review procedures
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 acti-
vities of the Step 2 application and review.
Section C, Application Contents, provides a ready listing
of the materials which are contained in an application package.
Section D. Facility Plan Approval, restates the require-
ments 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. Combination Step 2+3 Grants, concerns the
special case grants for combined Step 2+3 projects.
Section G. Grant Award Procedures, describes the action re-
quired on the part of EPA in making the grant offer.
Section H, Predesign Activities, discusses the need to work
with the grantee before and during the preparation of Plans and
Specifications.
Section I. Predesign Conference. describes the administrative
and technical considerations to be discussed with the grantee
at the conference prior to the preparation of plans and
specifications.
Section J. 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 treat-
ment works design.
V-l
-------
Section K, 0 & M Facility/Training Grants, concerns special
grants for training facilities and programs.
The technical and administrative reviews are to be performed
simultaneously wherever possible.
V-2
-------
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.
CHAPTER 2
PRIORITY^
SYSTEM J
L--4-- --'
STEP
APPLICATION
'ITH APPROVE
FACILITY PLAN
/»(
D/V
'/ V>
STATE REVIEW
EPA REVIEW
GRANT
AGREEMENT
PREDESIGN
CONFERENCE
(OPTIONAL)
\ .
7 PREPARATION /
ft SUBMISSION L
"7 OF PLANS AND/''
/SPECIFICATIONS/
NO
STATE REVIEW
NO
EPA REVIEW
•REVIEW AND APPROVAL OF FACILITY PLAN COVERED IN CHAPTER 4
V-3
-------
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 des-
cribed later. The reviewer is to make a cursory review to
insure that all items are included, that all applicable por-
tions of the forms are completed, and that the documents are
signed by the appropriate officials. If items are missing or
explanations are necessary, the applicant is to be contacted
through the State 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) with required
agencies comments and approvals (OMB A-95);
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 A&E contracts) or
explanation of method of awarding proposal subagree-
ments, including compliance with MBE policy;
5. A Value Engineering (VE) commitment where the Step 3
total construction costs are expected to be $10 million
or more;
6. Proposed or executed intermunicipal agreements were
two or more jurisdictions are involved;
7. Project progress and payment schedule;
8. Evidence of compliance where applicable with:
user charge and industrial cost recovery requirements,
Federal facilities restrictions, sewer use ordinance
requirements, relocation requirements, and other
Federal regulations, including civil rights compliance
forms 4700-1 and 4700-4.
V-4
-------
9. Submissions for compliance with pretreatment require-
ments, where applicable;
10. A public participation work plan, where applicable;
Re: 40 CFR 35.907, .917-6, .920-2(b), ,920-3(b), .925-3,
.925-8, .929-9, .925-11, .926, .927-4, .935-9.
40 CFR 30.305, .315, .405-2, Subpart C.
PRM (Management Reforms to Reduce the Time Interval
Between Step 3 Grant Award and Initiation of Construc-
tion) and PRM (Value Engineering in the EPA
Construction Grants Program)
V-5
-------
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 must confirm in the project files that the facility
plan was approved by EPA. Also, he must review the comments of
Federal, State and local agencies under the OMB A-95 review
process to identify specific contingencies recommended for
inclusion during Step 2 work. These may include such aspects
as the need to perform an archeological survey at proposed
construction sites prior to completion of design. If the
Step 2 project has changes substantially from that proposed in
the facilities plan, the Regional Administrator may require
that the facilities plan be amended and resubmitted by the
applicant for appropriate re-review.
Re: 40 CFR 35.917-8, -9, .920-3 (b) (1), (4), .925-1
V-6
-------
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 cer-
tification must signify that the grant is to be made from that
reserve allotment.
"Grant applications are considered received by EPA only when
complete and upon official receipt of the State priority certifica-
tion document."
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-7
-------
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;
f. reserve funds are identified where used.
Re: 40 CFR 35.915, .915-1, .920-2, .925-3, .925-4
PRM 75-16
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 appli-
cant 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 main-
tain 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 II, Section B, requires information concern-
ing the project site. For a Step 2 application, a statement regard-
ing availability of the proposed site must be included. If the
availability of easements has not been determined, the applicant is
to be informed of the need to accomplish preliminary easement work
concurrent with other Step 2 activities. (Sites and easements may
be acquired if they are not potentially eligible costs under Step
3.) Other site information (plot plan, soil survey, etc.) may be
included where necessary.
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
V-8
-------
of compliance with some of these assurances is required from the
applicant (see Section E.7). A copy of authorizing resolution
designating the signer as the official representative of the appli-
cant (Part V, item 1 of application 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 auth-
orizing 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
Treatment Works Scheduled by Project and Category;
e. all items in the application are complete or
marked not applicable (NA);
f. Part III, Section D, Proposed Method of Financing
Non-Federal Share, assures that the applicant can
successfully fund his share of the project costs.
g. Part V. Assurances, is included with the applica-
tion: if not the application must be returned to
the applicant for inclusion of a signed copy of
the Assurances.
Re_: 40 CFR 30.315
40 CFR 35.920-2(b), .920-3(b) (2), .925-5
PL 94-488
31 CFR Part 51, Department of Treasury
PRM 77-6
V-9
-------
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 specifi-
cations and that the fees and schedules are reasonable.
Discussion:
The personal and professional services covered by the sub-
agreements 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.
The detailed requirements of and procedures for procuring
personal or professional services are contained in the regulations,
40 CFR 35.936 & .937 and Appendices C & D. Certain clauses of these
regulations (e.g. access) are applicable to subagreements and lower
tier subagreements in excess of $10,000. See Figure III-l (p.III-6)
for applicability of specific clauses. The goal oriented policies
and procedures regarding MBE set forth in 43 FR pp. 60220-60224
contain the responsibilities of EPA, Grantees, Consulting firms, Prime
contractors, and MBEs. 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
.937; and (if applicable) .939;
b. the scope of the work is sufficient to prepare
approvable plans and specifications; and cost
and fee are appropriate to the scope of work;
c. completion schedules are reasonable and in
agreement with the facility plan;
d. the applicant has complied with EPA's policy for
increased use of minority business enterprises
(MBE).
V-10
-------
Re: 40 CFR 35.920-3(b)(3), .935-7, .936, .937, .939
.965 and Appendices C & D; 40 CFR 30.605
43 FR pp. 60220-60224
4. Intermunicipal Agreements
Purpose:
Where two or more jurisdictions are involved in facilities
development under Federal grants, intermunicipal agreements insure
that all jurisdictions will be obligated to comply with financial
arrangements and procedural requirements under the grants.
Discussion:
The Regional Administrator will determine on a project
basis whether intermunicipal agreements required in the Step 2
grant application must be proposed or executed. Such agreements
should correspond to the institutional arrangements included
within the approved facilities plan for the project.
Review Procedures:
a. insure that intermunicipal agreements are included
in application package where more than one juris-
diction is involved in the proposed project;
b. determine whether proposed agreements are accept-
able, and ensure that agreements are properly
executed if required by the Regional Administrator;
c. insure that proposed or executed agreements are
in accordance with the institutional arrangements
submitted with the approved facilities plan.
Re: 40 CFR 35.920-3(b)(6), .917-6
5. Value Engineering Proposal
Purpose:
A value engineering (VE) proposal insures that the appli-
cant will include a VE analysis in a Step 2 grant project where the
Step 3 total estimated construction costs are expected to be
$10 million or greater.
V-ll
-------
Discussion:
Value engineering is a systematic, specialized and creative
technique for controlling project costs. After October 1, 1979,
all applicable projects must include a proposal for a VE analysis
as part of the Step 2 application.
Review Procedures:
Where applicable to the project, a VE analysis proposal
submitted with the application should comply with the following
criteria:
a. The scope of the analysis should include all
components and systems, unless a limited scope
is adequately justified by the applicant.
b. Members of the VE team, including the team
coordinator, should be identified with brief
information about their qualifications and
experience.
c. The level of VE effort should be commensurate
with the complexity and size of the Step 2
project.
d. A detailed fee schedule should be included for
conducting the VE analysis, identifying work
hour requirements, level of effort, direct and
indirect costs; these should be reasonable in
comparison to the work involved.
e. The VE work schedule should be properly related
to the design schedule so that work may proceed
concurrently and avoid delays.
Re: 40 CFR 35.920-3(b)(5), .926(a)
PRM (Value Engineering in the EPA Construction
Grants Program)
Value Engineering Work Book for Construction
Grant Projects (EPA-430/9-76-008)
6. Project Progress Schedule
Purpose and Discussion:
As a condition of the grant, the applicant will be required
to expediously initiate and complete the Step 2 work. A progress
schedule, which identifies dates projected for initiation, comple-
V-12
-------
tion and any significant milestone, is required in all Step 2
grant applications. This schedule, amended where necessary, will
be incorporated into the grant agreement. It is important to
note that no dates included in the progress schedule will modify
any compliance dates established in the NPDES permit. A payment
schedule must accompany the progress schedule.
Review Procedures;
a. insure that the schedule included with the
grant application is reasonable and includes
all significant dates of progress, particu-
larly initiation and completion of the
project. (See items under "Predesign
Conference.")
b. where applicable, determine whether the
progress schedule will conflict with compli-
ance dates established in the NPDES Permit;
insure that the applicant is aware of its
responsibility to request modification of
permit terms or other enforcement require-
ments if necessary.
Re: 40 CFR 35.920-3(b)(7), .935-9, ,945(b)
7. Evidence of Compliance
The regulations require that the applicant furnish evidence
of meeting program requisites and assurances made in the Step 1
and 2 grant applications, as well as requirements of other Federal
statutes. Evidence of compliance with the following is of partic-
ular importance:
a. user charges - the applicant must submit an
approvable plan and schedule for the development
and implementation of a user charge system in
accordance with the regulations and guidance.
Re: 40 CFR 35.920-3(b)(8)(i), .925-11, .929,
.935-13, Appendix B.
b. industrial cost recovery - where applicable, the
applicant must agree to require each significant
industrial user to pay that portion of the grant
amount allocable to the treatment of its wastes;
V-13
-------
the applicant must also furnish letters from all
significant industrial users (10% or more of
design waste flow or strength) indicating their
agreement to pay their share of the grant amount,
and stating their intended period of use of the
treatment facility.
Re: 40 CFR 35.920-3(b)(8)(ii), .925-11, .928,
.935-15
PRM 78-6
c. Federal facilities - the allowable project costs
cannot include the proportional costs allocable
to the treatment of wastes from major activities
of the Federal government (either 250,000 gpd or
more, or 5% or more of the total design flow,
whichever is less).
Re_: 40 CFR 35.920-3(b)(8)(iii), .925-16
PRM 75-35
d. sewer use ordinance - the applicant must assure
that an approvable sewer use ordinance or other
legally binding requirement will be enacted and
enforced in each jurisdiction to be served by
the facilities prior to completion of construc-
tion.
Re: 40 CFR 35.920-3(b)(8)(iv), .927-4
e. relocation requirements - if the project will
result in the acquisition of private property
(including easements) or displacement of persons,
the applicant must give assurance of compliance
with the provisions of the Uniform Relocation
Assistance and Real Property Acquisition Policies
Act.
Re: 40 CFR 35.920-3(b)(8)(v), .935-3(b)
40 CFR 30.405-2, 40 CFR Part 4
V-14
-------
civil rights provisions - the applicant must have
completed two forms: Assurance of Compliance,
EPA Form 4700-1, and Compliance Report, EPA
Form 4700-4 for evidence of compliance with the
Civil Rights Act.
Re: 40 CFR 35.920-3(b)(8)(vi), .925-9
~~ 40 CFR 30.405-3, 40 CFR Part 7
PRM 75-32
other Federal requirements - the applicant must
give general assurance of compliance with the
applicable requirements of other Federal statutes
and regulations as listed in 40 CFR Part 30 sub-
part C by completing the appropriate part of the
application.
Re_: 40 CFR 35.920-3(b)(8)(vi), .925-14
section 404/section 10 permits - when permits
from the U.S. Army Corps of Engineers for the
discharge of dredged or fill material are
required for the facility, a section 404/section
10 permit must be issued or a determination must
be made by the RA that the Corps is prepared to
issue a permit.
Re: PRM 76-4
8. Pretreatment Requirements
Purpose and Discussion:
Pretreatment programs are intended to control toxics from
non-domestic sources, and to provide for the reclamation and reuse
of water wherever practicable. More particularly, the program is
designed to: prevent the introduction of pollutants into POTWs
which will interfere with treatment works operation and/or dis-
posal or use of municipal sludge or which will pass through treat-
ment works into receiving waters, the atmosphere or which will be
otherwise harmful; and employ opportunities to recycle and to
reclaim wastewater and sludge produced by wastewater treatment.
Development of a pretreatment program is required where
the municipal facilities serve or will serve industries subject to
pretreatment standards under CWA.
V-15
-------
For existing Step 2 grants, funding may be through grant
amendment. Where a Step 2 award is to be made after June 30, 1980,
the applicant must submit information for compliance with the pre-
treatment regulations.
Review Procedures:
The application package must include the following:
a. An industrial survey identifying system users by
type and location of industry and the character
and volume of pollutants discharged;
b. An evaluation of the legal authority for control
and enforcement including adequacy of enabling
legislation and selection of mechanisms to be
used (ordinances etc.);
c. An evaluation of revenue sources and financial
programs to insure adequate funding to carry out
the pretreatment program;
d. A determination of technical information needed
to support development of an industrial waste
enforcement mechanism to insure the compliance
with NPDES permit conditions;
e. A design of an enforcement monitoring program;
f. A determination of pollutant removals in existing
treatment facilities;
g. A preliminary determination of monitoring equip-
ment required at the treatment facilities;
h. A determination of the tolerance of the treatment
facilities to toxic pollutants; and
i. A preliminary determination of the municipal
facilities needed for monitoring or analysis of
industrial wastes.
Where appropriate, the pretreatment program must be updated
to insure its proper implementation and to improve its effectiveness,
Re_: 40 CFR 35.907, .920-3(b)(9), 40 CFR Part 403
V-16
-------
9. Public Participation Work Plan
If the applicant determines, upon consultation with the
public, that additional public participation activities are
necessary, a public participation work plan shall be included in
the application package.
Re: 40 CFR 35.920-3(b)(10), .917-5
10. Other Requirements and Limitations
Purpose and Discussion:
The Step 2 grant application and estimated costs must meet
several additional criteria for approval. Most of these are
elements required for approval of the facilities plan; however,
all should be checked.
Review Procedures:
a. the project must be consistent with any applicable
water quality management (WQM) plan approved under
section 208 or 303(e) of the Clean Water Act, and
the applicant must be the wastewater management
agency designated in any approved, final WQM plan.
Re_: 40 CFR 35.925-2, PRM 75-38
b. the applicant must have, or have applied for the
appropriate NPDES permit(s) with respect to
existing discharges affected by the proposed
project.
Re: 40 CFR 35.925-6
c. the treatment works design must be based on a
proper cost-effectiveness analysis and must meet
the requirements for BPWTT, sewer system evalua-
tion and rehabilitation and VE analysis.
Re_: 40 CFR 35.925-7
d. pertinent changes in the proposed project must have
been made, as appropriate, in accordance with the
findings of the environmental review or EIS.
Re: 40 CFR 35.925-8
V-17
-------
e. any sewage collection system work proposed in the
project is in accordance with the limitations of
the regulations and guidance.
Re_: 40 CFR 35.925-13, PRM 78-9
f. the limitations imposed by the regulations on
treatment of industrial wastes are met.
Re_: 40 CFR 35.925-15, PRM 77-1
g. no allowable costs are included for treatment
works to control pollutant discharges from a
separate storm sewer system.
Re: 40 CFR 35.925-21, PRM 75-34
V-18
-------
F. COMBINATION STEP 2 + 3 GRANTS
Purpose:
For projects involving relatively small communities, combination
Step 2+3 grants may be awarded with the intent of accelerating
the grant process as practical.
Discussion:
A single grant may be awarded for the combined Federal share of
the costs of Step 2 and Step 3 for communities of 25,000 or less
if the total cost estimated for Step 3 construction is $2 million
or less ($3 million or less in States with unusually high construc-
tion costs as determined by EPA Headquarters). However, the project
must consist of all associated Step 2 and Step 3 work, and no seg-
menting is permitted. Furthermore, the fundable range of the
approved State priority list must include the Step 2+3 work.
Review Procedures;
A single application package is to be submitted for a combined
Step 2+3 grant. The review must insure that the following
criteria and information are met or included:
a. the applicant community meets the qualification
limitations of population and Step 3 cost as
discussed above, and that the combined work is
within the fundable range of the approved project
priority list;
b. all of the items required for a Step 2 grant appli-
cation (under Section E, previous) have been
included and are acceptable;
c. a schedule for timely submission of plans and
specifications, operation and maintenance manual,
user charge and industrial cost recovery systems,
sewer use ordinance, and preliminary plan of
operation is included and acceptable.
Rej 40 CFR 35.909, .920-3(d), PRM 78-7
V-19
-------
G. GRANT AWARD PROCEDURES
The award procedures for the Step 2 grant are identical to
those described for the Step 1 grant in Section F. of Chapter IV,
Note: Special grant conditions may need to be inserted in
the Grant Agreement/Amendment based on clearinghouse comments,
requests from the State agency, or conditions unique to the
project. Such unique conditions may include mitigative measures
identified during review of the facilities plan, EIS or FNSI,
sewer system evaluation/rehabilitation requirements or other
considerations.
Re: 40 CFR 35.930
V-20
-------
H. PREDESIGN ACTIVITIES
Purpose and Discussion
Program responsibility for the progress of a project does not
end with the grant offer. Rather, the reviewer must know the
status of the project to insure that it is completed in accord-
ance with the approved project progress and payment schedule.
Also, he must insure that the applicant is aware of the adminis-
trative and technical considerations to be included in the plans
and specifications. Further aspects of interim progress review
are described in Section J.
Procedures:
Shortly after acceptance of a Step 2 grant, the reviewer should:
a. 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;
b. forward to the grantee and his consultant the admin-
istrative and technical considerations to be incor-
porated into the plans and specifications, including
40 CFR 35.936, .938, .939 and Appendix C-2;
c. arrange for a predesign conference, if appropriate.
V-21
-------
I. PREDESIGN CONFERENCE
Purpose and Discussion:
The State agency, in conjunction with EPA, should assume respon-
sibility for insuring that the plans and specifications are prepared
in accordance with work funded under the scope of the Step 2 pro-
ject and other regulatory requirements. Because of the complexity
of these requirements, a predesign conference between 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 many
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 should 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 appropriate regulatory personnel. Suggested sub-
jects to be discussed include:
a. the legal requirement for inclusion of and provisions
for carrying out the bidding procedures described in
40 CFR 35.936, .938, .939, Appendix C-2, and EPA's
MBE policy and Regional guidance.
b. the technical requirements of the design to insure
that the project will meet effluent or BPWTT limita-
tions per NPDES permit, and will be designed in
accordance with sound engineering practice, including
cost effectiveness and VE provisions.
Re_: 40 CFR 35.925-7, PRM 79-7
PRM (Value Engineering in the EPA Construction
Grants Program)
V-22
-------
c. 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, indi-
cating number and capacity of pumps;
- other detailed design reports which the particu-
lar project may require;
d. pretreatment design requirements and scheduling, as
applicable, for industrial discharges;
Re: 40 CFR 35.907, .925-12, 40 CFR Part 403
e. design considerations or investigations resulting
from the environmental assessment or environmental
impact statement. Possible examples are:
- a soil erosion and sediment control plan;
- a traffic control plan;
- archaeological investigations;
Re_: 40 CFR 35.925-8, PRM 75-27, PRM 78-1
f. design requirements arising from executed agree-
ments among jurisdictions;
Re.: 40 CFR 35.917-6
g. force account requirements, as applicable;
Re_: 40 CFR 35.936-14
h. phasing of contracts;
Re: PRM 75-14
i. flood protection insurance requirements, as applicable;
Re: 40 CFR 30.405-10, PRM 76-5
V-23
-------
j. records to be maintained during design and construc-
tion, separating eligible and Ineligible Items;
Re_: 40 CFR 30.805, 35.940
k. site certification requirements Including easement
acquisition if not previously satisfied (Note: if
land to be acquired is grant eligible, approval by
the Regional Administrator is needed prior to acqui-
sition so that grant funds are not lost);
Re: 40 CFR 35.920-3(b)(2), .935-3, PRM 77-6,
PRM (Management Reforms to Reduce the Time
Interval Between Step 3 Grant Award and
Initiation of Construction)
1. future requirements for;
- user charge and industrial cost recovery systems;
- a sewer use ordinance;
- an evaluation/rehabilitation program, as applicable;
- a plan of operation, including O&M manual, staffing,
training and startup services;
Re_= 40 CFR 35.935-12, -13, -15, -16
PRM 77-3
m. requirements for submission of quarterly project status
reports; and, requirements for periodic inspections
and audits, as necessary, for large or complex projects
(generally at 30% and 60% completion);
Re_: 40 CFR 30.635, .820
n. requirement of value engineering in the design
phases of the project;
Re_: 40 CFR 35.920-3(b)(5), .926, PRM 75-30,
PRM (Value Engineering in the EPA
Construction Grants Program
o. possible benefits from the use of construction management;
p. the use of incentive clauses in construction contracts;
Re: PRM 79-5
V-24
-------
q. qualification of major items of equipment;
Re_: PRM 79-10
r. sole source procurement, experience clause, and
buy American provisions;
Re: 40 CFR 35.936-13
s. eligible and ineligible cost separation in the
bid proposal;
t. initiation of plans for financing local share of
Step 3 project.
Re_: PRM (Management Reforms to Reduce the Time
Interval Between Step 3 Grant Award and
Initiation of Construction)
The reviewer should provide the grantee with guidelines, instruc-
tions, booklets, or other publications which describe specific
requirements in detail.
V-25
-------
J. REVIEW OF PLANS AND SPECIFICATIONS
Purpose:
To insure that the project to be built will satisfy BPWTT and
statutory requirements.
Discussion:
Periodic reviews and inspections of progress should be made
during the preparation of plans and specifications. As a general
rule, the reviewer should contact the grantee and design consul-
tant at 30% and 60% completion, as a minimum, to insure that the
work is being performed properly. Progress reports should also be
required of the grantee, and submitted at least quarterly, in any
project of one year or longer duration. Review of progress should
insure that work is on schedule, complies with regulations, and
that grant conditions, including contingencies on design imposed
by the environmental review, are followed. Interim payments are
made generally in accordance with the project progress and payment
schedule so that outlay management projections can be maintained.
Interim audits may also be performed, as appropriate, based on
payment requests and actual work performed. Refer to Chapter VII
for other financial considerations.
The set of plans and specifications submitted for final review
must 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 State or
Region is encouraged to pattern its own review procedures to
account for State or local design practices and requirements.
Through an interagency agreement, the Corps of Engineers may
conduct "biddability" and "constructibility" reviews of project
plans and specifications. While these reviews do not involve an
evaluation of the adequacy of the design to achieve the requisite
treatment level, they do insure that the plans and specifications
are suitable for bidding and that the project can be constructed as
designed without unforeseen and lengthy delays. The "biddability"
review basically entails the assurance that the bid documents are
clear and concise and that nothing has been omitted. In addition,
the Corps will ensure that: (1) the project is properly segmented
into "biddable" packages, (2) specific bid items are such that bids
received may be realistically evaluated, (3) the plans and specifi-
cations are detailed enough to allow reasonable bidding. The
"constructibility" review deals with the build-ability of the
project as designed. In addition, this aspect involves a consid-
eration of: (1) any potential construction constraints imposed
V-26
-------
by the site, (2) adequate resolution of actual or possible con-
flicts inherent in the plans and specifications, (3) the
relationships of the specifications to the plans, (4) the
compatibility of the plans and specifications with available
construction procedures/equipment, and (5) any other potential
difficulties.
The review period is limited to 30 days and the reports are
submitted to the EPA project officer (or State if appropriate)
for review and action. Generally, findings can be classified
within the following categories: (1) major significance - comments
of this nature should be included in the plans and specifications
unless extenuating circumstances are present; (2) important -
incorporation in the plans and specifications is advisable; (3) minor
the problem is of little importance (e.g., misspellings); (4)
differences between the plans and specifications (e.g., inconsistent
identification of equipment, materials, etc.). The project officer
shall determine what response is necessary from the grantee in regard
to Corps comments.
Review Procedures;
1. Administrative Review
The following six items must be included in the bidding
documents:
- a statement of work, including drawings and speci-
fications, and the required completion schedule;
- the terms and conditions of the contract (40 CFR
35.938-8 and Appendix C-2);
- an explanation of the method of bidding; the
method of evaluating the bid prices, and .the
basis for the award of the contract;
- the criteria for evaluating bidders;
- the standard statement (40 CFR 35.938-4(c)(5))
concerning the funding of the project by EPA;
- a copy of 40 CFR 35.936, 35.938, 35.939, and
43 FR pp. 60220-60224.
In addition to the above six items, the reviewer is to
insure that the specifications include the following provisions:
V-27
-------
a. Supplemental General Provisions
Appendix C-2 of 40 CFR Part 35 which includes
requirements for:
- changes, suspension or termination
- labor standards
- utilization of minority business enterprises (MBE)
- audit: access to records
- price reduction for defective cost or pricing data
- covenant against contingent fees
- gratuties
- patents
- copyrights and rights in data
- clean air and water clause
- buy American provision (PRM 78-3)
b. Equal Employment Opportunity (EEO) and MBE Utilization
The EEO and MBE provisions must be followed where
contracts are $10,000 or greater, In all such
cases, the contractors must comply with Executive
Order 11246 and engage in affirmative action
directed at promoting and ensuring EEO in the
work force under the contract pursuant to
requirements of the Department of Labor.
Where the cost of construction work is estimated
to be more than $1 million, or where specified by
the grant agreement, the grantee must consult the
Regional Administrator about EEO requirements before
issuance of invitations to bid. In such cases, a
preaward compliance review will be justified.
In addition, the plans and specifications should
include a statement of MBE goals for utilization
of minority business enterprises and a statement
of how MBE policy is to be implemented. The
reviewer should contact the Civil Rights and
Urban Affairs Office within the EPA region for
specific instructions as appropriate.
V-28
-------
Re: 40 CFR 35.936-6, -7, .937-12(b), .938-9(b)(2);
Appendices C-l(14) & C-2(9)
40 CFR Part 8
43 FR pp. 60220-60224
c. Davis-Bacon Act
The provisions of the Davis-Bacon Act must be
included in contracts exceeding $2,000. These
provisions require the 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 determina-
tions are to be included in the bidding docu-
ments provided they have been published 10 days
prior to the bid opening date. Modifications to
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 30.415-1, 35.935-5
d. Flood Insurance
For projects requiring flood insurance (see Chapter
VI E.9.a. of this Handbook) make certain that the
contractor is required to obtain the necessary flood
insurance during construction.
Re: 40 CFR 30.405-10, PRM 76-5
V-29
-------
e. Bonding and Insurance
For contracts in excess of $100,000, the following
minimum bonding and insurance requirement must be
met:
- 5% bid bond; grantees may not require bid guarantees
greater than 5% or that a specific form of 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.
For contracts less than $100,000, bonding and insur-
ance requirements shall be in accordance with local
or State practices.
Re_: 40 CFR 35.936-22
f. Construction Incentive Program
A construction incentive clause may be included as
a part of the construction bid package for projects
having a Step 3 eligible cost of more than $10 million,
when approved in accordance with PRM 79-5.
2. Technical Review:
The technical review of the plans and specifications must
insure that the design is based upon: the cost-effectiveness provi-
sions of the regulations (40 CFR Part 35 Appendix A), the achievement
of applicable effluent limitations or BPWTT, the sewer system evalu-
ation and rehabilitation requirements, and value engineering provisions
(40 CFR 35.925-7). Structural, electrical and mechanical details of
the design are not critically reviewed because they are the responsi-
bility of the engineer whose seal appears on the drawings. However,
obvious irregularities should be noted.
The following are examples of items which should be reviewed.
a. Environmental Considerations
Plans and specifications must be compared with mitiga-
tive measures required by the FNSI or EIS. Examples
V-30
-------
might be soil erosion control, hours of operation,
backfilling and seeding, structural design for
buildings in a flood plain, etc. Refer also to
the approved facilities plan for energy conserva-
tion and open space measures.
b. Safety
The requirements of the Occupation Safety and Health
Act (OSHA) are addressed. The design of chlorine
facilities must specifically comply with agency
policy (PRM 79-1). Explosion proof motors should be
used wherever appropriate.
c. Bypassing
Construction is to be carried out so as to avoid
bypassing of flows during construction, except where
specific prior approval has been obtained from EPA.
d. Project Sign
The contractor is required to provide an appropriate
project sign.
e. 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.
f. Operation and Maintenance
All equipment, piping, switches, instruments, etc.
are to be clearly marked or color-coded for ease
of identification and location for operation and
maintenance.
V-31
-------
g. Public Water Supply
All public water supplies are to be protected by adequate
backflow preventers (for example, double check valves,
air gap).
h. 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.
Chlorine storage and safety requirements must be
followed.
Re_: Technical Bulletin No. D-71-1, PRM 79-1
i. Ventilation
Adequate ventilation is to be provided in all areas
where necessary (for example wet well, dry well,
chlorine room chemical storage area, etc.).
j. Laboratory Facilities
The laboratory facilities must be adequate to con-
duct the type of sampling and testing required by
the NPDES permit or by the State agency.
k. Emergency Alarms
Adequate alarms are to be provided to warn of
failures or dangers.
1. Hazardous Materials
Mercury is not to be used for trickling filter
seals. Other uses of mercury require special
review and approval. Other toxic compounds, such
as toxic sewer grouts (PRM 78-11), are not to be
used in hazardous applications.
Re_: Technical Bulletin No. D-71-2
PRM 78-11
V-32
-------
m. Sewers
Acceptable levels of infiltration, and tests therefore,
are included; sewers should maintain minimum scouring
velocities and have adequate capacity, including
peaking factors.
n. Equipment
Specifications for equipment must conform with the
regulations (40 CFR 35.936-13), including nonrestric-
tive specifications requirements, sole source
restrictions, experience clause restrictions, and
buy American provisions.
Re: 40 CFR 35.936-13
~~ PRM 75-5, PRM 78-3
o. Shellfish Waters
Where discharges will come into contact with shell-
fish waters, appropriate measures must be included
to protect the shellfish.
Re: Technical Bulletin, Protection of Shellfish
~ Waters, EPA 430/9-74-010
p. Pretreatment
Where applicable, the design must be in accordance
with the requirements for pretreatment of incom-
patible industrial wastes.
Re_: 40 CFR 35.906, .925-15, Part 403
q. I & A Technology Confirmation
Where a project, or portion of a project, has been
designated innovative or alternative on the basis
of the facilities plan, the plans and specifications
must meet the appropriate criteria in 40 CFR 35
Appendix E.6, or they may lose I & A designation.
Re_: 40 CFR 35.908(b)(2)
r. Preliminary Plan of Operation
A sequential listing of actions needed to ready the
plant and its personnel for operation when construction
is complete. Staffing and training requirements,
operation and maintenance procedures, reports, laboratory
testing, etc. must be considered in the plan.
Re_: 40 CFR 35.925-10, .935-12
V-33
-------
3. Plans and Specifications Approval
a. General
Upon determination that the plans and specifica-
tions are approvable, the grantee is 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. This notification should specifi-
cally 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.
b. Step 2+3 Grants
If a grantee was awarded a combination Step 2 and 3
grant, he must receive written authorization from
the Regional Administrator before advertising for
bids on the construction portion of the project.
Before receiving this authorization, he must obtain
approval of his additional submissions for user
charge, industrial cost recovery, preliminary plan
of operation, and pretreatment compliance.
Re: 40 CFR 35.935-4
V-34
-------
K. O&M FACILITY/TRAINING GRANTS
Purpose:
Federal assistance is available in the form of grants for the
purpose of operation and maintenance training.
Discussion:
A grant may be awarded for construction and support of a training
facility, facilities or training programs for operation and mainten-
ance. A training grant for 100 percent of the cost of construction
of treatment works may be exempted by the Administrator from the State
priority list requirements; however, the Federal funds awarded to any
State for all training facilities or programs may not exceed $500,000.
A special application is required.
Review Procedures:
An application for a training grant must be reviewed for inclu-
sion of:
a. a statement discussing the suitability of the treatment
facility, facilities or programs for training personnel
in operation and maintenance of treatment works through-
out one or more States;
b. a written commitment from the State to carry out an
approved training program at the facilities;
c. an engineering report (where a facility is to be
constructed) including design and cost data for
design and construction;
d. a detailed outline of the training program, including:
- an assessment of need for training
- how need was determined
- who will be trained
- the curriculm and materials to be used
- the training delivery system to be used
- the resources available for the program
- a budget breakdown for the program
- the relationship of the facility or program to
other programs.
Re: 40 CFR 35.915(a), .920-3(e), .930-1(b)
V-35
-------
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
-------
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 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, intermunicipal agree-
ments and other evidence of compliance.
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 administra-
tive 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 onsite
inspections, and the review of operation and maintenance programs.
VI-1
-------
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.
| CHAPTER 2
I
I
(STATE PRIORITY A
SYSTEM J
NO
STEP 3
APPLICATION
W/APPROVABLE
' PLANS A SPECS
STATE/EPA
REVIEW
AUTHORIZATION
TO ADVERTISE
FOR BIDS
e ADVERTISE,
RECEIVE AND
UALUATE BIDS
B
AWARD
CONTRACTS
INSPECTION
CHANGE ORDERS
"-»/ CONSTRUCTION
O&M MANUAL,
SEWER USE
ORDINANCE
STATE/EPA
REVIEW
VI-2
-------
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 miss-
ing 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. Approvable Plans and Specifications.
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, including information
necessary for development of outlay schedules and MBE
participation.
5. Executed intermum'cipal agreements, where applicable.
6. Schedule for compliance with Plan of Operation requirements.
7. Submissions for compliance with pretreatment requirements,
where applicable.
8. User charge system, ordinance and resolution by jurisdictions.
9. Industrial cost recovery system, where applicable.
10. Evidence of compliance with the Flood Disaster Protection
Act and the sewer use ordinance requirements.
11. Sewer system rehabilitation scheduling, where applicable.
12. A public participation work plan, where applicable.
Re_: 40 CFR 35.920-3(c), .925-3, -10, .927-3, -4.
40 CFR 30.315, .405-10.
VI-3
-------
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 copies
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.
Re_: 40 CFR 35.920-3(c)(2)
VI-4
-------
E. ADMINISTRATIVE REVIEW
1- Priority List Compliance and Certification
Purpose:
4.-xi Jhe State a9ency is ^quired 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
frn«a1-9ranr,over a11 other P^Jects below it on the priority list
(EPA Form 5700-28, see Appendix B).
Once projects which have been certified by the State as
entitled to priority for Federal assistance may receive grants.
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 jeopardize
the funding of any projects of higher priority;
e. reserve funds are identified where used.
Re: 40 CFR 35.915, .917-2, .920-2, .925-3, .925-4
PRM 75-14
PRM 75-24
VI-5
-------
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 author-
ized representative of the jurisdictions included in the approved
facility plan. The applicant must demonstrate the capability and
legal authority to finance, construct, operate and maintain the pro-
posed wastewater treatment facilities.
The application form is used to request initial grants, amend-
ments, 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. No Step 3 grant may
be awarded until the grantee has submitted assurances that all
required property rights, as defined in 40 CFR 35.935-3(b), have
been obtained or bonafide options taken or formal condemnation pro-
ceedings initiated (exceptions are discussed in PRM (Management
Reforms to Reduce the Time Interval Between Step 3 Grant Award and
Initiation of Construction)
Part III, Section D, concerns the applicant's proposed
method of financing the non-federal share of the project. In
accordance with PL 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 inter-
cepting 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 limi-
tations.
The grant request may not include 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
VI-6
-------
comply with the requirements. However, additional evidence of com-
pliance with some of these assurances is required from the appli-
cant (see Section E.9). A copy of the authorizing resolution
designating the signer 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 representa-
tive and a copy of the authorizing resolution
is attached;
c. the certification of project site interest (Part II,
Section B) is completed; and appropriate documentation
assuring all required property rights is included;
d. the applicant can fully fund its share of the project
costs and can obtain funds within 90 days of the
grant award;
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.
Re: 40 CFR 30.315
40 CFR 35.920-2, .920-3(c), .925-5, .925-16,
.935-3(b)(3)
PL 94-488
31 CFR Part 51, Department of the Treasury
PRM (Management Reforms to Reduce the
Time Interval Between Step 3 Grant Award and
Initiation of Construction)
VI-7
-------
3. Contracts and Subagreements
Purpose;
Contracts or subagreements for personal or professional ser-
vices 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.
Discussion:
The personal and professional services covered by the sub-
agreements 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 detailed descrip-
tion of the method of awarding subagreements, for performance of any
substantial portion of the project.
The detailed requirements of and procedures for procuring
personal or professional services appear in 40 CFR 35.936, .937 and
Appendices C & D. Certain clauses of the regulations (e.g. access)
are applicable to subagreements and lower tier subagreements in excess
of $10,000. See Figure III-l, previous, for applicability of specific
clauses. The goal oriented policies and procedures regarding MBE set
forth in 43 FR pp. 60220-60224 contain the responsibilities of EPA,
Grantees, Consulting firms, Prime contractors, and MBEs. Subagreements
in which the fee is a percentage of construction costs are not accept-
able nor are cost multipler contracts where profit is included in
the multipler.
Information must be sufficient for the preparation of outlay
schedules in accordance with PRM 79-9.
Review Procedures:
Review the agreement(s) and determine that:
a. the grantee has complied with 40 CFR 35.936 and
.937; and (if applicable) .939;
b. the scope of work is sufficient to construct
approvable facilities; and cost and fee are
appropriate to the scope of work;
VI-8
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c. completion schedules are reasonable and in agreement
with the plans and specifications.
d. the applicant has complied with EPA's policies and
goals as they apply to minority business enterprises
(MBE).
Re: 40 CFR 35.920-3(c), .935-7, .936, .937, .939,
.965, Appendices C and D
40 CFR 30.605
PRM 79-9
43 FR pp. 60220-60224
4. Intermunicipal Agreement
Purpose and Discussion
Where two or more jurisdictions will be served by the
proposed facilities, intermunicipal agreements insure that all juris-
dictions will be obligated to comply with financial arrangements and
procedural requirements under the grants. At the time of Step 3
grant application, the final, executed intermunicipal agreements must
be furnished.
Review Procedures:
a. insure that final intermunicipal agreements are
included in the application package where more
than one jurisdiction is involved in the project;
b. insure that the agreements are properly executed
by the responsible officials of all jurisdictions
involved in the project, and are binding.
Re: 40 CFR 35.920-3(c)(l)
5. Plan of Operation
Purpose and Discussion;
A preliminary plan of operation is required prior to award
of the Step 3 grant to insure that the applicant is committed to
implementation of operation and maintenance, staffing, training and
start up requirements.
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The preliminary plan consists of a schedule for implementa-
tion of the activities necessary to assure efficient and reliable
start-up and continued operation of the facilities. The schedule
may be defined in terms of an estimated percent completion of con-
struction or in terms of numbers of days prior to an operational
start date.
Review Procedures:
Ensure that the schedule includes estimated milestones for
actions in accordance with PRM 77-3. These may include the follow-
ing:
a. points of hiring plant personnel, training milestones;
b. timing of O&M manual preparation;
c. development of safety and emergency operation
programs;
d. development of records, filing and laboratory
procedures;
e. timing of start up procedures.
Re: 40 CFR 35.920-3(c)(3), .925-10, .935-12
PRM 77-3.
(See Section 1.4 of this chapter)
6. Pretreatment Requirements
Purpose and Discussion:
Pretreatment programs are intended to control toxics from
non-domestic sources, and to provide for the reclamation and reuse
of water wherever practicable. More particularly, the program is
designed to: prevent the introduction of pollutants into POTWs
which will interfere with treatment works operation and/or disposal
or use of municipal sludge or which will pass through treatment
works into receiving waters, the atmosphere or which will be other-
wise harmful; and employ opportunities to recycle and to reclaim
wastewater and sludge produced by wastewater treatment.
No Step 3 grant award can be made after December 31, 1980
unless applicant compliance with the pretreatment regulations can be
proven. On Step 3 projects in existence prior to January 1, 1981,
pretreatment programs can be funded with grant increases.
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Review Procedures:
The application package must include the following:
a. An industrial survey identifying system users by
type and location of industry and the character
and volume of pollutants discharged;
b. An evaluation of the legal authority for control
and enforcement including adequacy of enabling
legislation and selection of mechanisms to be used
(ordinances, etc.);
c. An evaluation of revenue sources and financial
programs to insure adequate funding to carry out
the pretreatment program;
d. A determination of technical information needed
to support development of an industrial waste
enforcement mechanism to insure the compliance
with NPDES permit conditions;
e. A design of an enforcement monitoring program;
f. A determination of pollutant removals in existing
treatment facilities;
g. A preliminary determination of monitoring equip-
ment required at the treatment facilities;
h. A determination of the tolerance of the treatment
facilities to toxic pollutants; and
i. A preliminary determination of the municipal
facilities needed for monitoring or analysis of
industrial wastes.
Where appropriate, the pretreatment program must be updated
to insure its proper implementation and to improve its effectiveness
Re_: 40 CFR 35.907, .920-3(c)(4), 40 CFR Part 403
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7. User Charge System
Purpose:
The user charge system requires that users of a treatment
works will pay their proportionate share of operation and maintenance
(including replacement) costs.
Discussion:
In the Step 2 project, the applicant must have developed
an approvable user charge system. After June 30, 1979, a Step 3
grant may not be awarded until the applicant's user charge system
(methodology, estimated rates, and draft ordinance) has been approved.
The grantee must enact the approved user charge ordinance and rates
before the treatment works are placed in operation.
A system based on actual use or ad valorem taxes as appro-
priate, must fulfill the objective of distributing the costs of
O&M among all users or user classes 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
or classes. Each user, or class of users, must be charged on an
proportionate 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, each jurisdiction in the service area must
develop and enact an acceptable user charge system. In the first
year of operation, the user charge may be based upon past experience
or reasonable estimates. However, thereafter the applicant is to
review the user charges biennially at a minimum and initiate revi-
sions, 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.
Review Procedures:
The user charge system submission must be reviewed to insure
compliance with 40 CFR 35.929. The following criteria are applicable:
a. the system proportions the O&M costs among all
users or user classes according to waste load
and flow characteristics. A system based upon
ad valorem taxes (dependent upon taxable
property ownership) may be acceptable if in
accordance with 40 CFR 35.929-1(b). Appendix
B of 40 CFR Part 35 includes acceptable user
charge system models;
VI-12
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b. the implementation of the program will provide
sufficient revenues to offset all actual O&M
costs;
c. a system will be 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 (confer with "Intermunicipal Agree-
ments," Section 4).
d. potential users have been informed of the
financial impact of the user charge system,
and have been consulted prior to the
submission of the system for approval by EPA.
Re: 40 CFR 35.925-11, .929, .935-13, Appendix B
PRM 75-37
8. Industrial Cost Recovery System
Purpose:
The industrial cost recovery system provides a means whereby
industrial users of a publicly-owned treatment works repay the pro-
portionate Federal share of the construction costs of the treatment
works allocated to their use.
Discussion:
In the Step 2 project, the applicant must have developed an
approvable industrial cost recovery (ICR) system. After June 30,
1980, a Step 3 grant may not be awarded until the applicant's
industrial cost recovery system (methodology, estimated rates, and
draft ordinance) has been approved. The grantee must enact the approved
ICR ordinance and rates before the treatment works are placed in
operation.
The industrial cost recovery 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 planning, design and
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 and to refund 50% of the total amount (plus any
interest accrued) annually to the U.S. Treasury. Of the remaining half
of the recovered funds, a portion may be used to pay the incremental
VI-13
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cost of administering the ICR system. A minimum of 80% of the amount
remaining after payment of the incremental cost is to be used by the
applicant, subject to the Regional Administrator's approval, for the
eligible costs of expansion or reconstruction of wastewater treatment
facilities. The remainder 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 con-
struction 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. In
determining the amount of an industrial user's discharge, the grantee
may exclude domestic wastewater originating from the industry. After
applying this exclusion, if the discharge exceeds 25,000 gpd (or the
weight of BOD or suspended solids equivalent to that found in 25,000
gpd of domestic wastewater), the industry is subject to ICR charges.
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: A moratorium on the collection of ICR charges from
industrial users is in effect for the period of January 1, 1978 to
June 30, 1980.
Review Procedures:
The ICR system must comply with the regulations (40 CFR
35.928) and guidance (MCD-45). The following criteria are applicable:
a. the system will collect costs appropriately from
all "industrial users" defined in 40 CFR 35.905.
b. the system will be implemented and enforced by all
political jurisdictions to be served by the proposed
facilities. Resolutions, local ordinances or written
statements may be accepted as evidence of compliance.
These may be incorporated into the required inter-
municipal agreements (Section 4).
VI-14
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c. the system's financial impact on the industrial users
has been communicated to them and they have been
consulted prior to the submission of the system to
EPA for approval.
Re: 40 CFR 35.905, .925-11, .928, .935-15
Industrial Cost Recovery Systems (MCD-45)
PRM 78-6
9. Evidence of Compliance
The regulations require that the applicant furnish evidence
of meeting program requirements and assurances made in the Step 3
grant application, and compliance with other Federal statutes. In
addition to evidence required previously for the Step 2 application
and approval of plans and specifications, the following are required:
a. Flood Disaster Protection Act
To determine if a community is required to participate in
the flood insurance program, consult the regional DHUD office. If
the community is eligible for participation and if the project con-
tains insurable structures, each of $10,000 or more in value, the
applicant is to furnish evidence that it is participating in the pro-
gram and a letter of intent that it will provide for 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). Items which are not eligible for insur-
ance 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. Communi-
ties 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
PRM 76-5
b. Sewer Use Ordinance
The applicant must submit a current sewer use ordinance
or a letter of intent that such ordinance will be enacted in each
jurisdiction before completion of construction. The sewer use ordi-
nance must prohibit new sources of inflow (illegal connections from
sump pumps, foundation drains, roof leaders, etc.) from being
VI-15
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connected to the sewer system and require proper design and construc-
tion techniques for new connections.
Re_: 40 CFR 35.927-4, .935-16
c. Sewer System Rehabilitation Schedule
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 desirable that the rehabilitation program be
completed prior to completion of the plant. However, the rehabilita-
tion program may continue beyond the scheduled start-up provided that
the unfinished rehabilitation work will not have an adverse effect on
the operation of the plant.
Re_: 40 CFR 35.927-3, .927-5(c), .935-16
10. Public Participation Work Plan
If the applicant determines, upon consultation with the public,
that additional public participation activities are necessary, a
public participation work plan shall be included in the application
package.
Re: 40 CFR 35.920-3(c)(5), .917-5
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F. GRANT AWARD PROCEDURES
Procedures to be followed in awarding a Step 3 grant are identi-
cal to those used in making a Step 1 award. (See Chapter IV,
Section F.)
In addition, special conditions of the grant are included in
Part III b of the Grant Agreement/Amendment. These 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. To reinforce the importance of these
requirements, and to avoid oversight on the part of the applicant,
they may be included in the grant agreement as "special conditions."
These are:
a. 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.
b. Sewer Use Ordinance - No more than 80% of the Step 3
grant may be paid until the sewer use ordinance(s) is
approved, unless excepted.
c. Rehabilitation Program - No more than 80% of the
grant may be paid until compliance with the rehabili-
tation program (if required) is achieved, unless
excepted.
d. Pretreatment Program - No more than 90% of the grant
may be paid until the municipal pretreatment program
is approved (unless an extension is granted by the
Regional Administrator in accordance with 40 CFR
35.935-19).
Re: 40 CFR 35.935-12(c), -16(b), -19
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 preconstruction information in the Grants Information and Control
System.
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It should be borne in mind that 40 CFR 35.935-9 requires
that the Regional Administrator terminate a grant if construction
"all significant elements", 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 deviation from the appropriate
provisions of 35.935-9.
Re_: 40 CFR 30 Subpart I
40 CFR 35.935-9
PRM 78-12
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G. PROCUREMENT OF CONSTRUCTION CONTRACTS
1. Authorization and Formal Advertising for Bids
Discussion:
Once the grantee has accepted the grant offer, or concur-
rent with transmittal of the grant offer and conditioned upon
acceptance, EPA may authorize advertising for bids (complete
approvable 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:
A letter to the grantee should:
a. authorize him to advertise for bids in accordance
with regulations;
b. indicate the documents to be submitted and pro-
cedures to be followed after receipt of bids
(see item 2 following for list of documents);
c. warn him not to award contracts until
authorization to do so is received from EPA.
d. remind grantee that while rejection of all bids
is possible, such action may be taken only with
prior EPA concurrence and only for good cause.
Re_: 40 CFR 35.938-4
PRM 78-8
2. Review of Bids
Purpose and Discussion:
A review of the bids, bidding procedures, and accompanying
documents is made to insure compliance with applicable Federal
laws and regulations and to insure that contracts will be awarded
to the lowest responsive, responsible bidder.
VI-19
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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 proposed form and bonds from
the successful bidder;
c. 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 acknowledgment of its receipt by the
successful bidder;
f. signed copies of the certification by the contrac-
tors regarding compliance with EEO and MBE require-
ments ;
g. if award is to be made to other than the low bidder,
a justification from the grantee 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 35.935-6, .938
3. Grant Increases/Decreases
Discussion:
The grant amount is adjusted, as appropriate, after receipt
of bids to more accurately reflect project costs.
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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, Increases and
Decreases, for specific procedural instructions.
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 updat-
ing of the GICS. Refer to Chapter VII, 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 allow-
ance 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-l(c), .935-11, .955
40 CFR 30.900-1
PRM 75-21
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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 construc-
tion 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 therefore, and his proposed method of resolution
before awarding contracts. 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 make a written request for
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. There-
fore, the construction grants reviewer must be familiar with the
procurement and protest regulations, and should consult the
Regional 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:
a. Refer the potential protester to 40 CFR 35.939(b)
regarding timing requirements of a protest. Any
other comments to the grantee or potential pro-
tester should be limited to procedural require-
ments .
b. Should a protester indicate dissatisfaction with
the grantee's decision on the protest and express
such dissatisfaction to the reviewer, refer the
protester to 40 CFR 35.939(b)(2).
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The reviewer may wish to consult with the Regional Counsel
who will make the preliminary decision as to whether the protest is
valid or without merit and who will so advise the Regional Admin-
istrator. If the Regional Administrator adopts or concurs with the
position that the protest is without merit, the protest will be
dismissed without further EPA 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.
According to 40 CFR 35.939(d)(2) & (3), the Regional Counsel shall
make his report and recommendations promptly, and the Regional
Administrator should transmit his determination within one week
after receiving such report. The reviewer should assist in
gathering data necessary to a final decision and in assuring
timely resolution of the protest.
Re: 40 CFR 35.939
5. Rejection of All Bids
Discussion:
Regulations (40 CFR 35.938-4(h)(2)) permit the grantee to
reject all bids and resolicit for new offers. However, the exer-
cise of that right is contingent upon the grantee's demonstration of
good cause for that proposed action. Any good cause demonstration
must reflect that the public interest will be best served by such
action in consideration of EPA requirements.
Review Procedures:
A good cause proposal for rejection of all bids by a
grantee must be consistent with one or more of the following crite-
ria, as defined in PRM 78-8:
a. specifications are ambiguous or otherwise deficient
and an addendum to the invitation is not possible;
b. the grantee's needs have changed and such change
could not be imposed upon bidders within the
procurement requirements;
c. the specification requirement is determined
unnecessary;
d. bids received indicate the grantee's quality
requirements were overstated;
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e. although bids are acceptable, the grantee is
unable to funds its share of costs associated
with the lowest acceptable bid;
f. the amounts of all otherwise acceptable bids
are unreasonable;
g. the bids failed to provide sufficient competition
to insure fair prices;
h. bids were not independently arrived at in fair
competition, were collusive, or were submitted in
bad faith;
i. applicable Federal laws or policies require delay
for future study;
j. good cause rejection may not be based on: litiga-
tion over contract award, relaxation of specifica-
tion requirements not materially affecting competi-
tion, omissions or ambiguities not adversely affecting
competition or the needs of the grantee, or the lack
of a local or in-State firm as low bidder.
Re: 40 CFR 35.938-4(h)(2)
PRM 78-8
6. 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 preconstruction
conference with the grantee, his resident inspector, the State
agency, the successful contractor and a representative of EPA.
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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 conference may be called at the
request of the State, the grantee, the contractor or EPA. Separate
preconstruction conferences may also be held to discuss the equal
employment opportunity and minority business enterprise responsi-
bilities of each party (specifically where construction costs will
exceed $1 million). The procedures below list several areas which
might be discussed at the conference. Separate discussions may be
held with the grantee, his consultants and contractors as appro-
priate, depending on the nature of topics covered.
Procedures:
Suggested subjects to be discussed at preconstruction conferences
include:
a. the responsibilities and authority of the grantee,
the contractor, the resident inspector, the State
and EPA;
b. Contractor performance in accordance with progress
and payment schedules. (NOTE: It is important to
stress that payments will be made in accordance with
the schedule and that these schedules, cumulatively,
form the basis of EPA's outlay management program.
Ultimately, they serve as input to the Treasury
Department in planning the timing and amounts of
borrowings to finance the operations of the Federal
government. Therefore, if progress is not consis-
tent with the schedule, slippage must be corrected
or outlay management coordination will be adversely
affected);
Re: 40 CFR 35.935-9
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c. compliance with Davis-Bacon and related laws con-
cerning the posting and payment of minimum wage
rates, and other State and local laws;
Re_: 40 CFR 35.935-5, 30.415
d. equal employment opportunity and minority business
enterprise 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, in accordance with construction schedule;
Re_: 40 CFR 35.938-6, .945
h. project changes, including time of completion,
change orders, change in project scope or grant
amount;
Re: 40 CFR 35.935-9, .935-11, .938-5, .955
i. interim and final inspections by the State and/or
EPA;
Re_: 40 CFR 35.935-14
j. records (including an accounting system which
separates allowable and unallowable costs) to be
maintained by the grantee, the inspector, and
the contractor, and the auditing procedures;
Re: 40 CFR 30.805, .820
VI-26
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k. requirements for timely submission of
- a sewer use ordinance
- a sewer rehabilitation program
- a plan of operation
- an O&M Manual
Re_: 40 CFR 35.935-12, .935-16
1. archeological or historical resources requirements,
as applicable;
Re_: 40 CFR 6.301
PRM 75-27
m. mitigative measures to be employed during construc-
tion, as recommended in the environmental assess-
ment and contract documents.
Re: 40 CFR 6.508, .509
n. the use of force account labor where prior approval
is obtained from the Regional Administrator, and
where in accordance with regulatory limitations.
Re: 40 CFR 35.936-14
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I. MONITORING OF CONSTRUCTION ACTIVITIES
1. Change Orders
Purpose:
A change order is the customary method of modifying a
construction contract after work has begun and may result in contract
price increases/decreases, revised time of completion, or other
project changes. It is a written order from the Grantee to the
contractor authorizing an addition, deletion or revision to the work
within the general scope of the construction contract.
Discussion;
During the course of construction, it may be necessary to
make changes in the project which require a modification of the
construction contract. Project changes which may result from minor
errors in the plans and specifications or consist of emergency
changes required to protect life or property do not require prior
approval by EPA.
Project changes which will substantially alter the design
and scope of the project; the type of treatment; the location,
size, capacity or quality of any major item of equipment or which
will require additional Federal funds to complete the project 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. However, where the change order or
combination of change orders exceeds the contingency allowance,
the grantee must request an increase in the grant amount, and the
procedures in item G.3 of this Chapter are to be followed.
The Grantee has the responsibility to originate and nego-
tiate all change orders. Proposed change orders should be reviewed
as early and expeditiously as possible in the project, to insure
proper negotiation and execution. Pending change orders should be
discussed at interim inspections.
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Review Procedures:
To process a change order, the reviewer should determine
that:
a. the change is needed, generally as a result of
- differing site conditions
- errors/omissions in plans and specifications
- changes instituted by regulatory agencies
- minor design changes
- overruns/underruns in quantities
- factors affecting time of completion
b. the request has been screened to determine that
- identification of the request document is complete
- it includes a justification statement from the
grantee
- state agency approval has been given
- prior EPA and State approval has been obtained,
where necessary
- the availability of needed additional local funds
has been properly certified
- a financial statement showing grant amount and the
cumulative effects of prior change orders on project
costs is included
- items requiring Federal participation are identified
- evidence of negotiations is included
- proposed costs are supported by a separate engineering
estimate
- cost and pricing data in accordance with 40 CFR
35.938-5(d) is provided for change orders exceeding
$100,000
c. the method of accomplishing the objective is reasonable,
based on consideration of
- alternative method
- secondary effects of the change
- impact on time of completion
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d. the request is for eligible work, which is directly
related to
- construction of a publicly owned treatment works
- approved plans, specifications and cost estimates
- not including work previously determined to be
ineligible
- maintaining effluent limitations and schedules
of compliance
- assurance of the availability of the non-federal
share
- size and capacity related to needs
- no proprietary, exclusionary or discriminatory
requirements other than those based on performance
- not requiring a commitment of Federal funds in
excess of current State allotments
e. the costs are allowable in accordance with
- the Regional Administrator's delegated authority
to determine allowable costs on eligible work
- appropriate laws, rules and regulations
- not including work previously determined to be
unallowable
- satisfactory evidence of negotiations assuring a
fair and reasonable price for the work
- provisions of the specifications
- guidance in Chapter VII, Section B pertaining
to allowable and unallowable costs
- determinations made in policy statements issued
by EPA
f. the reviewer will maintain a file with the following
documents concerning the contract changes
- contract change order (signed and dated copy)
- attachments
- notifications of approval or denial
- requests for additional information, and responses
- memoranda of meetings and telephone conversations
- updated project cost summary, including allowable
and total costs
g. upon review of the change order, the grantee shall be
expeditiously notified in writing of the action taken,
Re: 40 CFR 35.935-11, .938-5, .955
40 CFR 30.900-1
PRM 75-4
VI-30
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2. On-Site Inspections
Purpose:
On-site project inspectors 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 construction
(interim) and at the completion of construction. The frequency
of interim inspections announced or unannounced will depend upon
the size and complexity of the project; however, to the extent
possible inspections will be made on all projects at least quarterly.
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.
Full time, on-site presence by EPA or the State may be required
where appropriate.
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 inspec-
tion report for reference.
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;
VI-31
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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 construction;
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 dis-
played and agrees with the contract documents;
project accounting records are maintained and
they distinguish between allowable and non-
allowable costs supported by receipts or
certified contractor invoices;
any special construction techniques or prac-
tices are being employed in accordance with
the grante agreement, including erosion and
sediment control measures;
the grantee has hired the operational staff
and is providing training, as appropriate
(see O&M requirements below);
the grantee is preparing an operation and
maintenance manual;
the grantee is making satisfactory progress
on the pretreatment program as applicable;
the grantee is making satisfactory progress
toward implementation of UC/ICR systems;
VI-32
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- the grantee is making satisfactory progress
toward the completion of sewer use ordinance
and the rehabilitation program as applicable;
- the grantee is providing wastewater treatment
capability during construction;
- procedure exists to call deficiencies to the
attention of the authorized representative.
b. Final inspections - the items under interim inspect-
tions should be considered, as appropriate, as well as the follow-
ing:
- the facilities are complete, operating and,
in the case of a treatment plant, will meet
the effluent limitations required by the
NPDES permit, or BPWTT;
- the facilities conform to the approved plans,
specifications and change orders;
- all equipment is operational and performing
satisfactorily;
- appropriate operation and maintenance staff
has been hired and instructed in the startup
and operational procedures;
- laboratory facilities are complete and suffi-
cient 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 the sewer use ordinance and rehabil-
itation program;
- UC/ICR systems are implemented;
VI-33
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- industrial discharges are pretreating wastes
as required by the pretreatment program.
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 outlay schedule. The grantee is respon-
sible for submitting a payment request (EPA Form SF 271) and supporting
documentation. When it is received, EPA will review it against the
construction schedule and authorize payment as appropriate.
The grantee is also responsible for meeting particular con-
ditions before he may receive full payment. These have been men-
tioned in earlier parts of the Handbook but are summarized below
for the reviewer's convenient reference.
a. Operation and Maintenance Manual - No more than
50% of the Federal share may be paid until a draft
O&M manual, or evidence of timely development, 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. 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
c. 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
VI-34
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d. Pretreatment Program - No more than 90% of the
grant may be paid until the municipal pretreat-
ment program is approved (unless an extension
is granted by the Regional Administrator in
accordance with 40 CFR 35.935-19).
Re_: 40 CFR 35.907
e. 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 agree-
ment and approved plans and specifications.
Re: 40 CFR 35.935-14
4. Plan of Operation
Purpose:
Federally funded treatment works are to be designed,
operated and maintained to achieve the effluent limitations
required in the NPDES permit or BPWTT. A well planned operation
and maintenance program is an essential step in achieving that
objective.
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
VI-35
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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 concur-
rent 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 prepara-
tion 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 or evidence of timely development
is submitted and no more than 90% of the grant may be paid unless
the grantee has furnished a satisfactory final operation and main-
tenance manual.
Review Procedures:
The review of the operation and maintenance program sub-
missions 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 organ-
ization, and certification requirements is
developed;*
- that the chief operator is hired before con-
struction is 50% complete;
* To be submitted to both State and EPA.
VI-36
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- 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;
- that arrangements for submission of appro-
priate 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;
VI-37
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c. Budget
- provisions are made for adequate annual budget
to insure efficient operation and maintenance,
including administration, 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.
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 dia-
grams of more complicated areas;
- process information discussing the control of
various processes to achieve maximum efficiency,
including a clear explanation of process func-
tions of the various components in simplified
language with references to appropriate equip-
ment manuals for detailed technical information;
- maintenance requirements, including schedules
for routine adjustment and lubrication of
equipment, referencing appropriate manufacturer's
manuals for details;
VI-38
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- laboratory procedures, specifying various
analyses and monitoring schedules required for
process control and by the NPDES permit and
other regulations, describing laboratory equip-
ment and general maintenance, and referencing
appropriate literature for standard test
procedures;
- safety aspects of the various process units
and related equipment arid procedures for
complying with the OSHA requirements;
- administrative procedures describing the
various records required and reports to be sub-
mitted as a function of the State monitoring
program;
- troubleshooting procedures and a description
of the emergency response plan, including pro-
cedures for notification of proper authorities,
emergency equipment repair, and references to
the appropriate equipment manuals for specifi-
cations 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: PO 2)
Emergency Planning for Municipal Wastewater Treat-
ment Facilities (GPO No. EP 2.8: W 28/6)
Estimating Laboratory Needs for Municipal Waste-
water Treatment Facilities (GPO No. EP 2.2: W 28/3)
Start-up of Municipal Wastewater Treatment Facili-
ties (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)
PRM 77-3.
VI-39
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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
-------
A. INTRODUCTION
This chapter discusses various financial considerations that
are common to all three step grants.
Section B, Allowable and Unallowable Costs, covers problems
faced by the reviewer in dealing with these costs and presents major
categories of cost statements.
Section c. Force Account, discusses when this method can be
used, prior approvals needed by EPA and other considerations to
serve as guidelines for the reviewer.
Section D, Payments. covers prior costs, Step 1, 2, 3, and 2+3
grant payment schedules and payments.
Section E, Increases and Decreases, discusses when increases
occur, contingency funds covering these, and what the reviewer needs
for EPA approval.
Section F, Audits, provides the reviewer with pertinent infor-
mation to help in answering the questions of grantees and in
working with the auditors.
VII-1
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B. ALLOWABLE AND UNALLOWABLE COSTS
1. General
In the process of reviewing grant payment requests, the re-
viewer is confronted with having to make decisions on the eligibility
of certain project costs for which there is no absolute guidance.
Such costs, termed "allowable and unallowable" costs, have been
assembled in Section B3 of this Chapter to provide uniformity in
interpreting their eligibility. In general, for miscellaneous
costs to be eligible for grant participation, they must:
a. Be necessary and reasonable and not a normal expense
of municipal administration.
b. Be authorized (or not prohibited) and be consistent
with Federal, State and local laws or regulations.
c. Be consistent with policies and regulations which are
applicable to both Federally assisted and other
activities of the unit of government of which the
grantee is a part.
d. Not be included in the costs allocable to any other
Federally financed program.
In summary, specific allowable costs are not defined by
statute as eligible for grant assistance, but must be interpreted
as eligible based upon EPA policy, appropriate Federal cost prin-
ciples, and reasonableness.
Re_: 40 CFR 35.940
40 CFR 30.705
2. Allowability Determinations
The cost items listed are applicable to PL 84-660, 92-500 and
95-217 projects. In making eligibility determinations, consideration
should be given to commitments previously made to grantees in the
absence of prior National policy, pertinent statutes or regulations.
Cost items not listed below should be considered on an individual
basis. As needed, the reviewer may seek advice from the Municipal
Construction Division, Office of Water Program Operations in EPA
Headquarters.
VII-2
-------
Final determinations by the Regional Administrator concerning
the allowability of costs are conclusive unless appealed within
thirty days in accordance with the "disputes" provisions of 40 CFR
Part 30, Subpart J.
Re: 40 CFR 35.940
40 CFR 30 Subpart J
3. Allowability of Miscellaneous Costs
The reviewer should become familiar with 40 CFR 35.940 re-
garding allowable and unallowable costs.
The following statements of allowability 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 if determined on the basis of a negotiated indirect
cost agreement and incorporated in the grant agreement.
Re_: 40 CFR 30.715-2, 35.940-4
- Travel Costs:
Grantee travel costs - allowable travel costs include
travel considered necessary and directly related to the accomplish-
ment of project objectives. Travel not directly related to con-
struction 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. (OMB Circular A-102)
VII-3
-------
Architect/Engineer travel costs - allowable travel costs
Include travel considered necessary and project related, Including
onsite 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.
Re_: 41 CFR 1-15.2 and 41 CFR 1-15.4
- Bond Costs:
All costs associated with the approval, preparation,
issuance and sale of bonds (including bond counsel and underwriters'
fees) are unallowable for grant participation. Interest on bonds
or any other form of indebtedness is unallowable. (OMB Cir. A-102)
Re_ 40 CFR 35.940-2(f)
- Liquidated Damages:
Monies received by grantees in the form of liquidated
damages shall have np_ effect on the determination of allowable
costs of grant projects. However, any additional costs—construction,
engineering, legal, or administrative-generated because of a con-
tractor'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.
VII-4
-------
- Bid Bond Forfeiture:
All bid bond forfeitures should be treated as a reduction
to project construction costs.
- Rate Studies:
Such studies are allowable if required for the establish-
ment of user charge or industrial cost recovery system in order to
comply with 40 CFR 35.925-11. Such studies require prior approval
either in the grant agreement or an amendment thereto. Allowable
costs may include legal, C.P.A., and engineering fees related to
the studies. (In order to avoid double payment, care must be exer-
cised to assure that such work is not incident to a general con-
tractual obligation.)
Re: 40 CFR 35.940-3(e)
- Financial Reports and Studies:
To the extent that such reports constitute "Rate Studies"
(see above) for user charges and/or industrial cost recovery pro-
cedures, the costs are allowable; provided that such studies are
approved in advance by the Regional Office and that the results of
such studies are acceptable to EPA. Financial reports which con-
stitute studies of, for example, the tax base, structure, etc., to
determine the financial capabilities of the applicant or the finan-
cial feasibility of the proposed undertaking are similarly allow-
able. The cost of all other financial reports and studies should
generally be considered unallowable in that they constitute a normal
function of government.
In this regard the Regional Office should adhere to a
strict interpretation of the term "studies". Generally, "studies"
refers to preliminary reviews, overviews, examinations, analyses, etc.
The interpretation must not be extended to include preparing pro-
cedures, designing implementation schemes, drafting statutes or regu-
lations, delineating boundaries relating to finances, issuance of
bonds, adjustment of tax rates, establishment of assessment districts,
etc. or other activities which are a normal function of government
and as such are unallowable.
VII-5
-------
- Establishment of Special Assessment Districts;
The "mechanics" of establishing special assessment dis-
tricts developed, for example, on the basis of rate studies (see
above), are a normal function of government and as such the costs
associated therewith are unallowable. Included in this restriction
are legal, administrative and engineering costs associated with
activities such as: (1) drafting, review and passage of statutes/
ordinances (e.g. sewer use ordinances), (2) preparation of regu-
lations, (3) delineation of district boundaries, (4) elections, etc.
This policy extends equally to the establishment of any
"special districts" such as election, service, rate, etc. districts
(including Regional Authorities) related to the grant project.
- Public Liaison Services:
Such services are generally unallowable since they con-
stitute a type of public information service and as such are not
directly related to or necessary for the construction of the treat-
ment works. This does not pertain to public participation; see
next item.
- Assistance with State and Federal Regulations:
The cost of assistance associated with addressing State
and Federal Regulations and procedures which are basic to the
functions of general government, such as preparation of applications
and related documents, obtaining state construction permits, dis-
charge permits, etc. are unallowable. Costs growing out of meeting
specific Federal statutory requirements such as public participation,
and other activities related to the user charge study, facilities
planning, NEPA procedures, Uniform Relocation Assistance and Real
Property Acquisition Policies Act, procurement requirements, MBE liai-
son services, etc. are allowable.
If such costs entail assistance which is readily avail-
able through Federal or State offices, such as interpretation of
regulations, explanations of grant procedures, etc. they should be
disallowed.
VII-6
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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.)
Re: 40 CFR 35.940-1(h), (s)
- Public Participation On-Site Visits:
Reasonable costs of public participation-related on-site
visits (field trips) to observe the operation of waste treatment
facilities which employ uncommon processes or features may be in-
cluded as allowable project costs. Regional Offices must be certain
that: (1) a visit will serve to address genuine public concerns,
(2) only reasonable costs are included for grant participation and
attendance is limited »to interested or affected parties whose views
can be expected to influence public or official opinion, and (3)
travel is to the nearest appropriate location. Regional Offices
are cautioned that grant participation in these costs is not a
routine matter and should be approved only when they will make an
important contribution to the planning or acceptance of a project.
Unless written approval for the specific visits and estimated
associated costs are received from the Regional Office prior to
their taking place such costs will not be eligible for grant par-
ticipation.
- Cost of Grantee Training Workshops:
Reasonable costs associated with grantee attendance at
training workshops/seminars designed to provide instruction in
administrative, fiscal and contracting requirements/procedures in-
cident to the EPA grant process may be considered allowable for
grant participation. Regional Offices must assure themselves that
such training is, in fact, a necessity. For example, a larger city,
with a number of ongoing grants, probably already possesses more
grant related expertise than could be imparted during such a work-
shop. Such training must be strictly limited to appropriate grantee
employees and receive prior approval from the Regional Office. Poten-
tial grantees (if on the current priority list) may also attend and
be reimbursed after grant award providing written evidence of ad-
vance Regional Office approval for the particular training is sub-
mitted with the reimbursement request.
VII-7
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- Redesign/Replanm'nq 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 undertaken 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.
- Field Surveys to Identify Cultural Resources:
Reasonable costs incident to field surveys to identify
historical, architectural, archeological 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 onsite inspections, review of pertinent documents,
photographic reconnaissance, services of archeologists 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.
Re: PRM 75-27
- Industrial Planning:
Allowable project costs do not include either the costs
of interceptor or collector lines constructed exclusively or almost
exclusively to serve industrial users or the costs allocable to the
treatment for control or removal of pollutants in wastewater intro-
duced by industrial users.
Re: 40 CFR 35.925-15
VII-8
-------
- 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 PRM 75-35 (12/29/75).
(3) 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 treatment 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 alloc-
able to the Federal facility should be based on the ration 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.
Re: 40 CFR 35.925-16, PRM 75-35
- Site Acquisition vs. Site Preparation Costs:
Site acquisition, including land used for sewage treat-
ment plan site, appurtenant piping and structures, sewer rights-of-
way, and pumping stations, whether by purchase, rental, lease or
easement, are unallowable. Similarly, all legal, realty, engineering
and grantee costs associated with ineligible acquisition are un-
allowable. Notable exceptions which are allowable if approved are
land acquired after 10/17/72 which is an integral part of the
treatment process or will be used for ultimate disposal; land ac-
quired after 12/26/77 which will be used for storage before land
application or composting and temporary storage. Approval must be
VII-9
-------
in accordance with pertinent regulations and PRM's, and made prior
to land acquisition. Legal, administrative, and engineering costs
associated with eligible acquisition are also allowable.
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 allowable. These costs include
such items as: grade and construction staking surveys, survey for
alignment and slope, preparation of working drawings and plans
dealing with site preparation, locations, grades, slopes, distances,
depth alignments, etc. Also eligible are costs such as finegrading,
seeding, and protective trees and shrubs.
Costs related to reasonable site screening for aesthetic
purposes are also allowable. Criteria for participating in aes-
thetics 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.
Re: PRM 75-25, 75-39, 77-5, 78-4
- 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 as
listed 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 con-
structed and owned waste treatment facilities are not allowable,
except when shown to be in compliance with Agency requirements as
provided for in PRM (Management Reforms to Reduce the Time
Interval Between Step 3 Grant Award and Initiation of Construction)
and approved by the Regional Administrator.
Re_: 40 CFR 35.940-3(d)
VII-10
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- Demolition of Existing Structures:
Demolition of existing structures constitutes an allow-
able cost provided that the structures are on the facility site
(Including rlghts-of-way for the eligible sewer lines) and that
construction cannot be undertaken without such demolition. Off
site demolition is unallowable. Aesthetics related demolition is
allowable only if it conforms to the criteria relating to the
alienability 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.
- Utilities;
Costs associated with the removal, relocation and/or
replacement of utilities (water, electricity, etc.) are allowable
when such activity, resulting from a conscious governmental de-
cision, 1s necessary for and incident to acquisition of real prop-
erty and the construction of the eligible facility. Where such
removal, relocation, and/or replacement does not involve loss of a
property right by the utility, such costs are not allowable.
In addition, payment for that portion of cost of equip-
ment substantially different than the pre-existing utility equipment
or the cost of utility equipment having greater capacity than that
originally 1n place will be allowable if mandated by local, State
or Federal law.
Re: 40 CFR 35.940-1 (k)
In Instances where new utility equipment for service to
the new facility or increased utility capacity to the new facility
requires the installation of new utility equipment servicing that
new facility, and where the grantee would by custom or law not re-
ceive such Installation free of charge, such utility equipment
costs are allowable.
VII-11
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- Restoration of Streets and Rights-of-Way:
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 roadway 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 main-
tenance of the overall wastewater treatment facility. Such equip-
ment 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, trailers, and other vehicles haying
as their sole purpose the transportation of liquid
or dewatered wastes from the collector point to
the treatment facility or disposal site.
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.
*NOTE: The grantee is required to maintain
property accountability on all such equip-
ment in accordance with A-102 and 40 CFR
30.810.
VII-12
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e. Cars and trucks are unallowable, except for specialized
sludge handling/transport equipment as noted in "c"
above.
Re: PRM 79-8
- Office Equipment and Furnishings*;
Such items as identified by the grantee and approved in
advance by the Regional Office, when installed or located at
the treatment works and necessary to the administrative and/or
technical (including training and meetings) functioning of the
works, may be allowable. In larger facilities allowability may be
extended to reasonable special purpose rooms and equipment related
to the function of the facility. There may well be instances in
which the Regional Office will need to exercise judgment as in the
case of "luxurious furnishings", televisions, etc.
- Shop Furnishings*:
Reasonable furnishings for shop areas such as shelves,
bins, work benches, etc. are allowable costs.
- Laboratory Equipment and Supplies*:
Generally, laboratory items identified by the grantee
and approved prior to procurement by the Regional Office as neces-
sary to conduct tests as may be required for plant operation are
allowable. In addition, the cost of a reasonable inventory of
chemicals and supplies necessary to start operation of the plant
is allowable. Large stocks of expendable materials are, however
not allowable. An EPA publication "Estimating Laboratory Needs
for Municipal Wastewater Treatment Facilities" discusses equipment
needed for various size plants.
Re: 40 CFR 35.940-1(m)
*NOTE: The grantee is required to maintain property
accountability on all such equipment in accordance
with A-102 and 40 CFR 30.810.
VII-13
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- Safety Equipment:
Based upon the specific needs of individual facilities,
necessary and reasonable safety equipment is an allowable cost.
Generally such equipment should be delineated in the operation and
maintenance manual and the approval of that document may constitute
the basis for participation.
NOTE: Such equipment should meet applicable Federal,
State, local and industry safety regulations and
standards. The grantee is required to maintain
property accountability on all such equipment in
accordance with A-102 and 40 CFR 30.810.
- Tools*:
Allowable tools are only those which are specified as
special purpose tools necessary for the repair and adjustment of
specific process components by the equipment supplier(s)/
manufacturer(s) or approved by the Regional Office. Also
allowable—based upon the size, complexity and nature of the treat-
ment works—are those basic tools/machines, generally mechanically
powered and usually fixed in place, which, in the opinion of the
State and Regional Office, are necessary to assure the uninterrupted
functioning of that facility. All other tools are unallowable.
*NOTE; The grantee is required to maintain property
accountability on all such equipment in accordance
with A-102 and 40 CFR 30.810.
- Replacement Parts:
Replacement parts identified and approved in advance by
the Regional Office as necessary to assure uninterrupted operation
of the facility may be included as allowable costs. Allowable
replacement items are only those which constitute critical parts or
major systems components and which are: (1) not immediately avail-
able and/or whose procurement involves an extended "lead-time",
(2) identified as critical by the equipment supplier(s), or (3) are
critical but not included in the inventory provided by the equipment
supplier(s). In those instances where adequate "back-up" components
VII-14
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are built into the system a reduction in replacement parts should
be made.
Items of routine "programmed" maintenance such as
ordinary piping, air filters, couplings, hose, bolts, etc. are un-
allowable. 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 pur-
chased in connection with a construction grant shall be based upon
a proration of the participated portion of the collection system to
the total system. Thus if EPA participates in 65 percent of the
grantee's total collection system, the allowable costs shall con-
stitute 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.
VII-15
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- Groundwater Monitoring Facilities:
Costs associated with the construction of groundwater
monitoring equipment and facilities may be considered allowable
only in those cases in which, as a direct result of project con-
struction, 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. 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 expediting the initiation of) the treatment process
operation are allowable.
- Service 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.
**NOTE: These requirements have been EPA National
policy under PL 84-660, PL 92-50.0 and PL 95-217
as required under 40 CFR 30.800 and .805.
VII-16
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- 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.
- Labor Charges and Related Costs**:
Regardless of contract terms, where charges have been
made to the grant and there was no cost incurred, the charges should
be questioned. Labor charges and related costs for straight time
or overtime hours which are billed but for which cost has not been
incurred will be unallowable for Federal participation. (Compen-
satory time will be considered in determining actual labor costs
incurred. However, compensatory time is allowable only if it is
incurred in accordance with established company policy, if it is
properly controlled and accounted for, and if it is used within an
annual accounting period.)
**NOTE: These requirements have been EPA National
policy under PL 84-660, PL 92-500 and PL 95-217
as required under 40 CFR 30.800 and .805.
- Start-up Services:
Grant eligible start-up services will average 90 man-days
for most treatment plants. For large or complex plants, however,
grant eligible start-up services may range up to 300 man-days. Start-
up services shall be completed within a period of twelve months. To
be grant eligible, the services must be rendered by a firm of
demonstrated capacity in this area. Normally, this would be the design
engineer or others identified by the design engineer.
VII-17
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Start-up services include:
(1) Pre and post start-up personnel training—i.e.,
onsite training given plant operation and mainte-
nance personnel on the operation and control of
the specific treatment processes of the facility.
(2) Fine tuning to optimize process control—i.e.,
expert operational assistance for adjustment of
the treatment process and related equipment
functions to optimize performance safety and
reliability under actual operating conditions.
(3) Laboratory procedures—i.e., onsite training and
instruction to assure that the sampling arid
laboratory testing program needed for satisfactory
process control and regulatory monitoring and
reporting are fully understood.
(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--!'.e., services to
provide the training needed to implement a
records management system as outlined in the
O&M manual.
(6) Revise O&M manual—i.e., 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 facility, such
as salaries for operation and maintenance personnel, chemicals
(except for the basic inventory required for start-up), power, etc.,
are not eligible. Also ineligible are the costs of all offslte
formal training/orientation programs. Finally, wet and dry equip-
ment and facility testing is the responsibility of the contractor
under the supervision of the Engineer.
Re: 40 CFR 35.940-1(p)
PRM 77-2
VII-18
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- Pretreatment Program;
Costs associated with the development of a municipal pre-
treatment program in accordance with 40 CFR Part 403 are allowable.
Also allowable are costs for the purchase of a limited amount of
monitoring equipment, construction of facilities to be used by the
municipal treatment works in the pretreatment program, and limited
sampling of industrial discharges to municipal works. Not allow-
able are costs for construction of privately-owned pretreatment
facilities unless authorized, or costs for monitoring equipment used
by industry for sampling discharges to municipal works.
Re: 40 CFR 35.940-1(r)
~~ .950-2(1),'(m), ,940-3(f)
Individual Systems;
The costs for the treatment and treatment residue dis-
posal portions of toilets with composting tanks, oil-flush mechanisms
or similar in-house devices are allowable.
Costs for acquisition of land on which individual systems
are located are not allowable, nor are costs for the waste generating
fixtures and associated plumbing to the treatment unit (where pipes
are situated on private property). Modifications to homes or other
buildings for installation of special devices are excluded from
grant eligibility. However, reasonable costs of construction site
restoration to original conditions are allowable.
Re: 40 CFR 35.918-2
PRM 79-8
- Royalties and Patents:
Royalties for the use of, or for rights in, patents may
be allowable costs within the limitations of principles contained
in PRM 79-2. Prior to selecting a patented process or product upon
which a royalty must be paid, the grantee must consider the need and
reasonableness of the royalty, cost-effectiveness of the royalty,
and means to avoid use of patented products. Where a grantee will
VII-19
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be required to pay a royalty on a process or product necessary for
performance of the grant agreement, procedures outlined in PRM 79-2
must be followed in determining the allowability of the cost.
Re_: PRM 79-2
- Crossover Sewers:
Crossover sewers (lateral or collection sewers) may be
grant eligible when it is demonstrated that they are more cost
effective than the installation of an eligible parallel sewer. A
crossover sewer or crossover service connection is defined as "the
sewer to connect one or more properties on one side of a major
street, road or highway to the collector sewer on the opposite side."
A deviation from the regulations (see 40 CFR 35.905-13) must be
obtained when the crossover sewer system serves only one property
(service line) but is more cost effective than an eligible alterna-
tive sewer line.
Cost of Implementing the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970
(PL 91-646):
Opinion pending.
VII-20
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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 per-
form all or part of the project work.
The use of force account i s permi tted 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 he possesses the necessary competence required
to accomplish such work, and that:
a. the work can be accomplished more economically by
use of such method;
b. 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 re-
viewer must determine in advance that adequate procedures, records
and controls will be used by the grantee. In particular, payroll
records should adequately show the distribution of hours worked
and identify work performed.
Re: 40 CFR 35.936-15(b)
2. EPA Prior Approval
A grantee must obtain prior written approval from the
Regional Administrator to use force account labor in lieu of sub-
agreements for any Step 1 or Step 2 work in excess of $10,000, any
sewer rehabilitation work in excess of $25,000 performed during
Step 1, or any Step 3 work in excess of $25,000 unless the grant
agreement stipulates the force account method. "Use of the force
account method for Step 3 construction shall generally be limited
to minor portions of a project."
VII-26
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Before approving a force account, the reviewer should con-
sider the following items:
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 establishment of salaries
of supervisory employees (sample time sheets, proposed
wage rates and an explanation of the methods for deter-
mining 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 work.
Re_: 40 CFR 35.936-14(a), (c)
3. Other Considerations
The following considerations provide additional guidelines
for the reviewer in the force account area:
VII-27
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a. adequate cost accounting records must be maintained;
b. 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 35.936-22
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 35.936-14, .936-22(b)
PRM 75-15
VII-28
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D. PAYMENTS
1. Genera]
It is the policy of EPA to process payment requests and to
make periodic progress payments as expeditiously as possible. Pay-
ments are to be made in accordance with the project outlay schedule,
which is developed by the EPA at the time of contract award. The
outlay schedule is revised annually and whenever actual project per-
formance strays significantly from the schedule.
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 and 3 awards; the 50%, 80% and 90% pay-
ments on Step 3 awards; and specific interim payment points estab-
lished, in writing, for a particular project.
Re_: 40 CFR 35.937-10, .938-6, .945
PRM 75-22, PRM 79-9
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.
Occasionally 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 the eligibility of prior costs, the reviewer
should bear in mind that:
- they must be claimed prior to the grant award or no
payment may be made for those costs;
VII-29
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- 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 35.925-18, .945(a)
3. Schedules
Schedules for the completion of any of the three grants steps
are contained in the grant agreement/amendment. The work schedule
and accompanying payment schedule are generally discussed with the
applicant prior to the grant application and should reflect realistic
targets. The reviewer has the responsibility for final approval of
the schedule. On the basis of such payment schedules, the EPA
Regional Office develops its program for managing the outlay of
Federal grant funds. Payments must be made in accordance with the
payment schedule to ensure that the Regional (and National) outlay
management programs will be maintained properly. When actual project
performance strays significantly from the schedule, adjustments
must be made to properly control outlay management.
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 con-
ditions may require large grant payments for certain
months. If the monthly requests exceed those on the
outlay schedule, the schedule must be revised. Pay-
ment schedules should be structured so as to preclude
any need for frequent changes.
Re: PRM 79-9
VII-30
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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
procedures 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 EPA Form SF-271 (Outlay Report
and Request for Reimbursement for Construction
Programs) directly to the Regional Financial Manage-
ment Office or, as directed, to the individual
responsible for work performed;
- the grantee provides necessary documentation to
support the request;
- all support documents and a copy of the SF-271 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;
- 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, while retainage is not encouraged,
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. (In addition, if retainage is
used, the grantee must compensate the contractor by use of an
interest-bearing escrow account, and the retained amount shall not
exceed the maximum amount allowed in the regulations. 40 CFR
35.938-7)
Re: PRM 75-22
VII-31
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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. At any time before the final payment, the reviewer may
cause any request(s) for payment to be reviewed or audited, however,
the frequency of the periodic reviews should 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.
Re_: 40 CFR 35.945(c)
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 plans and specs; 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.
VII-32
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c. Grant Conditions
The reviewer is reminded to check the grant agreement/
amendment and any subsequent amendments for any special grant con-
ditions prior to approving payment request. 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, sewer use ordinance,
etc. (Chapter VI, F).
5. Final Payments
The request for final payment is submitted by the grantee
when the final inspection is completed and the treatment works have
been determined satisfactorily constructed in accordance with the
grant agreement. By acceptance of the final payment, the grantee
agrees to assign to the United States 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 thereby also
releases and discharges 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 writing between the Regional
Administrator and the grantee.
Funds recovered after final payment which are subject to
reallotment shall be added to the amounts last allotted to the sub-
ject State, and shall be handled in the same manner as the latest
allotment.
Re_: 40 CFR 35.945(e), (f), PRM 77-9
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(d)
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E. INCREASES AND DECREASES
1. Increases
Grant increases most commonly occur because of cost overruns
occurring after the receipt of bids, cost of minor change orders, or
cost of a sewer system survey. As soon as the grantee sees that
costs are going to be substantially more than those 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 allot-
ment and reallotments.
In order to make a determination on the increase, the re-
viewer 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.
Re.: 40 CFR 35.935-11, .955
40 CFR 30.900-1
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-34
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- the grant amendment information must be entered
into GICS;
- Standard Form 240 must be prepared for clearing-
house 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 de-
crease is not made by the grantee, but action is initiated by the
State or EPA after the review of the bid material. The grant is
reduced as necessary but the new project cost contains 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
followed:
- 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;
- Standard Form 240 must be prepared for clearing-
house notification;
- Notification of Grant Decrease Action, EPA Form
5700-1D, must be completed and transmitted to
Headquarters.
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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 accessible to the EPA
Regional Administrator, the Comptroller General of the United States,
the State agency, or any authorized representatives. The EPA Office
of Audit is responsible for audits of all Step 1, 2 and 3 grants.
Re: 40 CFR 35.935-7
40 CFR 30.605, 30.805
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;
b. to identify any non-compliance with applicable
grant provisions or EPA rules and regulations
and to provide recommendations for improvement.
3. Types of Audits
There are two types of audits, interim and final.
a. 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.
VII-36
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b. 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
Not all Step 1, 2 or 3 projects are 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 irregu-
larities. 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, con-
struction grant file information, the results of sampling tests
and the following criteria to select projects for audit:
- size of the grants/projects
- existence of unit-price contracts
- type of contracts and subcontracts
- the number and significance of change orders
- experience with prior grantee's project audits
- 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 effects:
- grant number
- grantee name, address and phone
- eligible project cost
- grant amount
- number and dollar value of change orders
VII-37
-------
- number, amount and type of construction and
engineering agreements
- extent of force account work
- cut off date
- whether construction is located in a flood hazard
area requiring the grantee to purchase flood
insurance
- 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.
a. Accounting Practices - the grantee's accounting
system should include the following:
(1) accounting records
(2) supporting documents
(3) traceability
(4) segregation of costs (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 cost and schedules.
VII-38
-------
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 of serious-
ness of any deficiencies noted in relation to the project. In
general, the following procedures will be followed:
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;
b. 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 Officer to dis
cuss 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 res-
ponsibility 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
EPA Order 2750.2, Attachment A, 6/8/79
VII-39
-------
APPENDIX A
FLOW DIAGRAM FOR PROCESSING CONSTRUCTION GRANTS
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
APPENDIX B
- "Notification of Grant-in-Aid Action" (Clearinghouse form) Standard Form 240
- "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 Programs)
EPA Form 5700-32 (6-78)
- "Cost and Price Summary Format for Sub-Agreements"
- Project Sign - EPA Order No. 1015-1B
- Revised Cost Estimate (Suggested Format)
- "Outlay Report and Request for Reimbursement for Construction Programs"
EPA Form SF 271
- "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 Amendment 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
-------
NOTIFICATION OF GRANT-IN-AID ACTION
Do Net
UM
This
STATE APPLICATION IDENTIFIER
1 (Reserved Jor uitt by State central information reception agency)
3 GRANTOR o Federal agency
b Organizohonal unit
c Administering office —(I) Name
(2) Addreu-Street or PO Box
City
Stale
Zip Code
4 FEDERAL AGENCY GRANT IDENTIFIER
a Code b Till
c Purpose
5 GRANTEE
o Name
b Addresi-Street or PO Box
City
Slate
Zip Code
6 GRANTEE TYPE (Check only the tingle most applicable box)
o State b Inter- c County d City
slate
anna
e School
district
i Special
unit
g Community
action
h Sponsored
organization
i Other
a
a
a
APPLICATION RECEIPT DATE
Year Month Day
8 ACTION DATE
Year Month
Day
9 EFFECTIVE STARTING DATE
Year Month Day
10 ENDING DATE
Year Month
Day
II TYPE OF ACTION (Check at many boxes at apply to this action)
a New b Continuation c Supplemental d Change in misting grant
gront grant grant
(\denltjy agency in item 16) (I) Increase m (2) Decrease in (3) Cancellation (4) Incfease(S) (5) Decrease!*)
duration duration
a
n
a
a
a
a
a
n
12 AMOUNT OF CONTRIBUTION
a Federal-(I) basic (2) Supplemental
.1...
13 CATALOG OF FEDERAL DOMESTIC ASSISTANCE
PROGRAM <
-------
INSTRUCTIONS FOR PREPARATION OF STANDARD FORM 240
NOTIFICATION OF GRANT-IN-AID ACTION
1. State application identifier-the code or number assigned by State clearinghouses on
applications requiring State clearinghouse coordination for programs listed in Attachment D
to Office of Management and Budget Circular No A-95 This is to be filled in by the g>antot
where such coding is available from the application.
2 Reserved for use by State information reception agency-this space is reserved for the
administrative use of each State's central information reception agency and is to be Irfl blank
3 Grantor
a Federal agency-the executive department or independent agency under whose
responsibility the grant program is administered
b Organizational unit-the i»n>iiny organizational unit below the department level.
where applicable.
c Administering office
(1) Name-the lowest level Federal agency organization havingilnret opeiational
iftimiiiiibilitH for managing the grant program.
(2) Address-the street or post office box number, city. State, and zip code of the
administering office.
4 Federal agency grant identifier
a Code-the code used by the grantor to identify the grant within his own system If
no code exists, fill in "NA"
b Title-the descriptive name or heading of Ihm grant
c Purpose-a brief but complete description of the purpose or nature of the grant
5 Grantee —the primary recipient of the grant
a Name-the organization identified as the primary recipient of the grant.
b Address-street or post office box number, city. State, and zip code of the grantee
6 Grantee type (check only the mnyle inotl applicable box)
a State-an organizational unit of State government
b. Interstate-an organizational unit established by two or more States to coordinate
certain regional programs such as water pollution control (eg. New England Interstate
Water Pollution Control Commission).
c County-an organizational unit of the government of a county (or parish)
d City— an organizational unit of the government of a city, town, township, or other
municipality
e School district —a specified school district
f Special unit-a special district, or other limited-purpose political subdivision of a
State, county, or city-other than a school district (include here such institutions as public
colleges and universities, and intnmtnlt regions such as water and sewer districts)
g. Community action-a community action agency set up under the Economic Oppor-
tunity Act of 1964. as amended
h Sponsored organization —a public-purpose organization, other than an organiza-
tional unit of government, that is a beneficiary under a plan or program administered by a
State or a political subdivision of a State, county, or city and which is subject to approval by
a Federal agency (e.g., Economic Development Districts)
i Other- If the grantee is not covered by any of the types listed above (e g , Indian
reservations, private educational institutions, and private and nonprofit organizations not
covered as "sponsored organizations," etc ) Identify type of grantee in item 1C. "Remarks."
when the type is not self-evident from the name of the grantee in item 5a above.
7 Application receipt date - the date the formal application for this grant was first received
by a Federal office for a new, continuation, or supplemental grant If this action is a "change
in existing grant" (see item lid), fill in "NA " Use two digits each for year, month and day, in
that sequence in accordance with the Federal Information Processing Standards (FlPS)
H Action date —the date the grantor officially authorizes this action Use two digits each
for year, month and day, in that sequence
i). Effective starting date-the date that grant benefits related to this action are available
for use bv the grantee Use two digits each for year, month and day, in that sequence
1(1 Ending date —the date of the end of the grant period related to this action, if the grant-
in.aid (or change to an existing grant) awarded specifies such. Use two digits each for year.
month and day. in that sequence If there is no set grant period or duration, fill in "NA."
11 Type of action (check as many boxes as apply to this action)
a. New grant -an action considered by the grantor to be an award of a new grant.
b Continuation grant- an action that constitutes a continuation action within a multi-
year grant (e g, the second year award under a five-year project period grant)
c. Supplemental grant-an action that increases the Federal contribution in certain
cases where the eligible applicant cannot supply the required matching share of the basic
Federal program (eg, grants awarded under the Appalachian Regional Commission's
program, "Appalachia- Supplements to Federal Grants-m-Aid"). Identify the Federal
agency that awarded the supplemental grant in item 16
d Change in existing grant
(I) Increase in duration-an extension of the period of time the grant is available
(2) Decrease in duration-a reduction in the period of time the grant is available
(3) Cancellation-a i,mediation of a grant previously awarded
(4) Inciease (S)-an increase in the dollar value of the Federal contribution.
(!>) Decrease ($)-a decrease in the dollar value of the Federal contribution
12 Amount of contribution in dollars (include the dollar value of in-kind contributions for
all benefits-direct or indirect where applicable) If the action is a change in dollar amount of
an existing grant, iniliiiittoiily Ihr uiiniiiiil i>t tlir thaiii/r
a Federal contribution-the dollar value of the Federal contribution related to that
tH'tltlll
(1) Basic - the dollar value of the basic Federal contribution This would not include
any contribution provided under a supplemental grant as defined in lie above.
(2)'Supplemental-the dollar value of the supplemental portion of the Federal
contribution as defined in lie above
b State contribution-the dollar value of the State contribution related lotlni iirliiin.
if this information is available
c Local contribution - the dollar value of county, city, or other local government con-
tribution related to tin* iirtion. if this information is available
d Other contribution — the dollar value of private, nonprofit, or other nongovernmental
contribution related to that ml inn, if this information is available.
It "Catalog of Federal Domestic Assistance" (CFDA) program
a Program number-the five-digit number designating the program as identified in
the most recent "Catalogof Federal Domestic Assistance" (beginning with the 1!)70edition)
under which this grant is awarded In the event that this grant cannot be directly related
to any program in the CFDA, fill in "NA" and explain in item 16
b Supplemental program number-the five-digit number designating the supple-
mentaj program related to 1 Ic above as identified in the most recent "Catalog of Federal
Domes'tic Assistance "
14. Authorization
a Federal Budget account —the 1 < digit code(s) identifying the account(s) funding the
grant as expressed in the Appendix to the Budget of the United States (e g, 06-70-1703-
11-1-502 is the Department of Commerce. State Marine Schools account)
b Public Laws —the Public Law citation(s) (P.L.'s) for the legislative authonzation(s)
including, if applicable and available, the title and section of the Public Law.
c. US Code-the United States Code citation(s) for the legislative authonzation(s), if
applicable.
IS. Facility location (for facility grant actions only)-if this action is concerned with the
acquisition, construction or improvement of a specific, identifiable, fixed facility, identify the
location of the facility If more than one facility is involved, clarify in item 16
a City-the city, town, township, or other municipality in which the facility is located.
b County-the county in which the facility is located, if this information is available
16 Remarks —provide a brief explanation if appropriate and if the action calls for the
identification of:
(1) "Other" grantee type (item
-------
U.S. ENVIRONMENTAL PROTECTION AGEN
GRANT AGREEMENT/AMENDMEN
i CHECK APPLICABLE ITEM(S)
GRANT AGREEMENT
GRANT AMENDMENT
SUBSEQUENT RELATED PROJECT (WWT)
GRANT IDENTIFICATION NO.
T
DATE OF AWARD (Oolieanon date)
TYPE OF ACTION
PART I-CENERAL INFORMATION
1. GRANT PROGRAM
4.
2. STATUTE REFERENCE 3 REGULATION REFERENCE
GRANTEE ORGANIZATION
8. NAME
b EMPLOYER 1 D NO (EIN)
5.
C. ADDRESS
PROJECT MANAGER fOranree Contact)
a. NAME
b. TITLE
C. TELEPHONE NO. (Include Area Code)
6.
d. ADDRESS
PROJECT OFFICER (EPA Contact)
8. NAME
b. TITLE
C. TELEPHONE NO (Include Area Code)
7. PROJECT TITLE AND DESCRIPTION
8.
d. ADDRESS
PROJECT STEP (WWI)
DURATION
PROJECT PERIOD ("Dales;
9.
TOTAL PROJECT COSTS
TOTAL ELIGIBLE COSTS (WWT)
TOTAL BUDGET PERIOD COSTS
10.
APPROPRIATION
11. PAYMENT METHOD
r~| ADVANCES < % of award)
SEND PAYMENT REQUEST TO _
BUDGET PERIOD (Dates)
DOLLAR AMOUNTS
EPA GRANT AMOUMT (In.KlnH Ami. )
UNEXPENDED PRIOR YR. BAL. (EPA Fund'.)
THIS ACTION (This otjlleellon amount)
ACCOUNTING DATA
DOC CONTROL NO ACCOUNT NO OBJ CLASS AMOUNT CHARGED
41
41
41
1 1 REIMBURSEMENT
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
(/Von- construe (ion.)
I
2
3
4
S
e
7
e
8
10
1 1
12
PERSONNEL
FRINGE BENEFITS
TRAVEL
EQUIPMENT
SUPPLIES
CONTRACTUAL
CONSTRUCTION
OTHER
TOTAL DIRECT CHARGES
INDIRECT COSTS RATE X BASE
TOTAL f Share: Grantee V. Federal . .. %)
TOTAL APPROVED GRANT AMOUNT
TABLE B- PROGRAM ELEMENT CLASSIFICATION
(Non-conatnjctlon)
1
2
3
4
5
e
7
e
9
10
1 1
TOTAL (Share Grant** . % Federal V.)
TOTAL APPROVED GRANT AMOUNT
TABLE C - PROGRAM ELEMENT CLASSIFICATION
(Construction)
1
2
3
4
5
6
7
e
9
1O
1 i
12
13
14
IS
16
17
IB
19
20
ADMINISTRATION EXPENSE
PRELIMINARY EXPENSE
LAND STRUCTURES. RIGHT-OF-WAY
ARCHITECTURAL ENGINEERING BASIC FEES
OTHER ARCHITECTURAL ENGINEERING FEES
PROJECT INSPECTION FEES
LAND DEVELOPMENT
RELOCATION EXPENSES
RELOCATION PAYMENTS TO INDIVIDUALS AND BUSINESSES
DEMOLITION AND REMOVAL
CONSTRUCTION AND PROJECT IMPROVEMENT
EQUIPMENT
MISCELLANEOUS
TOTAL (Lines 1 thru 13)
ESTIMATED INCOME (It applicable)
NET PROJECT AMOUNT (Line 14 mmua 15)
LESS INELIGIBLE EXCLUSIONS
ADD CONTINGENCIES
TOTAL (SK=,». r.,=nt = » _ 7, F«rf*ral •*.)
TOTAL APPROVED GRANT AMOUNT
TOTAL APPROVED ALLOWABLE
BUDGET PERIOD COST
$
s
$
EPA Form 5700-20 (Rev. 4-75)
PAGE 2 OF 5
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PART MI-GRANT CONDITIONS
a. GENERAL CONDITIONS
The grantee covenants and agrees that it will expeditiously initiate and timely complete the project work
Cor which assistance has been awarded under this qrant. 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 tollowinq General Conditions, the
applicable supplemental conditions of to CFK 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 10 CFK Suhchapter B.
2. &udii and Records. The grantee agrees that it will maintain an adequate system for financial
manaqementT property management and grantee audit in accordance witn 4*30.1)00 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 4430.60b, 30.805. and 30.d20 or 10 CFR Subchapter B.
3. Keuorts. The grantee agrees to timely file with SPA such reports as are specifically required by the
grant agreement or pursuant to UO CFR Subchapter B, including progress reports (430.635-1), financial reports
(130.635-3), invention reports 1*30.635-4), property reports (430.635-5), relocation and acquisition reports
(•30.635-6) and a final report 430.635-2. and that failure to finely file.a report may cause EPA to invoke the
remedies provided in 40 CFR JO.430.
4. Grant Changes; Modifications. The grantee agrees that all qrant 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 CFR 30.415.
6. Suspension.
(a) The grantee agrees that the grant official mjj, .it any time, require the grantee to stop all, or
any part, of the work within the scope of the project for which EP\ qrant assistance was awarded, by a written
stop-work order, for a period of not more than forty-five (u5) clays ifter 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 perioJ 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, EPA may cither (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, it:
(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 of the project, and
(2) the grantee asserts a written claim for such adjustment within sixty (60) days after the
end of the period of work stoppage, provided that if the Project Officer determines that the circumstances
justify such action! for example, it the impact of cost or time factors resulting jiro-n a srop-worx order could
not have been ascertained prior to written submission of tne claim). he may receive and act upon any such
claim asserted at any txme prior to final payment under this grant.
(e) It a stop-work order is not canceled and grant-related project work covered hy such order is
within the scope of a subsequently-issued termination order, tne reasonable costs resulting from the stop-work
order shall be allowed in arriving at the termination settlement.
(f) The grantee agrees that costs incurred by the grantee or it's contractors, subcontractors or
representatives, after a stop-work order is delivered, or within any extension of the suspension peri oil 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 S
-------
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 aftord-sd to the grantee, terminate the grant, in whole or in part,
with the concurrence ot 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 required by the grantee to meet commitments which had become firm prior to the
effective date of termination and are otherwise a1Iowatie.
(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 the project
work tor which iiPA grant assistance has been awarded, the grant award official and the grantee may enter into
a written termination agreement establic.ung 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 the 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 at> utnerwise 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 sucli 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 he 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 Lad faith, or not supported by
substantial evidence.
(c) In connection with an appeal proceeding under this article, the grantee shall he afforded an
opportunity to be hear-1. to be represented by legal counsel, to offer evidence arid testimony in support ot any
appeal, and to cross-examine Government witnesses and to examine documentation or exhibits offered in evidence
hy tne Government or admitted to the appeal record (subject to the Government's tight to offer its own
evidence and testimony, to cross-examine the appellant's witnesses, ana to examine documentation or exhibits
ottered in evidence by the appellant or aJmitted to the appeal record). The appeal shall be determined solely
upon the appeal record, in accordance with the applicable provisions of Subpart J ot Part 30 of Title HO CFR.
(d) This "Disputes" article shal! not preclude consideration of any question of law in connection
with decisions provided for by this article; provided, that nothing in this qrint or related regulations siull
be construoa as making final the decision of any administrative official, representative, or board, on a
question or law.
9. Notice dgd Assistance Hgaar.ding Patent and <&2V.r_ic[ht intr.in.gement.
(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 ha sod on the performance jf this qrart ot wnich the
grantee has knowledge.
(b) In tvie event ot 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 ot the use of .my supplies
furnished or worn or -services performed hereunJer. the arant-ie agrees to furnish to the Government, when
requested by tne Project Officer, all evidence and information in possession of the grantee fcrtaining to sue
suit or claim. Such evi.lonce *nJ information shall be turnisheJ at the expense of the >3ovtrnirent except wher
the jr.intee .'us *jreecl to injemnity the Govern-nent.
EPA Form 5709-20 (Rev 4-75) PAGE 4 OF S
-------
U SPECIAL CONDITIONS
PART IV
NOTE: The Grant Agreement must be completed in duplicate and the Original returned to the Grants Administration
Division for lleadqu.irters 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 $
GNAIMT AMOUNT
included herein by reference.
GRANT AMOUNT
application modifications)
GRANTEE ORGANIZATION
for the support of approved budget period effort described in application (including all
TITLE AND DATE
ISSUING OFFICE (Grant, Administration Ollice)
ORGANIZATION/ ADDRESS
AWARD APPROVAL OFFICE
ORGANIZATION /ADDRESS
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
TYPED NAME AND TITLE
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
SIGNATURE
TYPED NAME AND TITLE
DATE
EPA Form 5700-20 (Rev. 4-75)
PAGE 5 OF 5
-------
U.S. ENVIRONMENTAL PROTECTION AGENCY ASSISTANCE IDENTIFICATION NO.
ASSISTANCE AGREEMENT/AMENDMENT
CHECK APPLICABLE ITEM(S)
COOPERATIVE AGREEMENT
GRANT AGREEMENT
ASSISTANCE AMENDMENT
SUBSEQUENT RELATED PROJECTS (WWT)
1. ASSISTANCE PROGRAM
4.
DATE OF AWARD (Obligation date)
TYPE OF ACTION
PART I-CENERAL INFORMATION
2. STATUTE REFERENCE 3. REGULATION REFERENCE
RECIPIENT! ORGANIZATION
a. NAME
h. FUBI OVPP i. n. NO. (*,N)
5.
c. ADDRESS
PROJECT MANAGER (Recipient Contact)
a. NAME
b. TITLE
c. TELEPHONE NO. (Include Ana Cede;
6.
d. ADDRESS
PROJECT OFFICER fEPA Contact)
a. NAME
b.TITLE
c. TELEPHONE NO. (Include Area Code)
d. ADDRESS
7a. PROJECT TITLE/ DESCRIPTION
7b. ENTER APPLICABLE ITEMS FOR STEP 3
TREATMENT LEVEL) | | | TYPE P
TREATMENT PROCESS) | llbLUDGE
8.
ft 2/3 (WWT) I". PROJECT STEP (WWT)
ROJECT 15 THFHF flNY INDUSTRIAL FLOWT *" N°
DESIGN .
DURATION
PROJECT PERIOD (Dales)
9.
TOTAL PROJECT COSTS
TOTAL ELIGIBLE COSTS (WWT)
TOTAL BUDGET PERIOD COSTS
10.
APPROPRIATION DOC
BUDGET PERIOD (Dates)
DOLLAR AMOUNTS
fTDA AWAPfl AUQI.IMT (7rT-K'"f< •*>«(,
UNEXPENDED PRIOR YR. BAL. (EPA Funds)
THIS ACTIONfTViis obligation amount)
ACCOUNTING DATA
CONTROL NO. ACCOUNT NO. OBJ. CLASS AMOUNT CHARGED
41.
41.
41.
11. PAYMENT METHOD
Q ADVANCES ( % of award) Q REIMBURSEMENT
SEND PAYMENT REQUEST TO
12. PAYEE (Name and mailing addreaa. Include ZIP Code,)
EPA Foim 5700-20A (Rev. 8-79)
PREVIOUS EDITIONS..ARE OBSOLETE.
PAGE 1 OF 4
-------
PART II-APPROVED BUDGET ASSISTANCE IDENTIFICATION NO. ;
TABLE A - OBJECT CLASS CATEGORY
(Non— construction)
1. PERSONNEL
2. FRINGE BENEFITS
3. TRAVEL
4. EQUIPMENT
5. SUPPLIES
6. CONTRACTUAL
7. CONSTRUCTION
8. OTHER
9. TOTAL DIRECT CHARGES
10. INDIRECT COSTS RATE % BASE
11. TOTAL (Share- Recipient __ % Ferteral .. %)
12. TOTAL APPROVED ASSISTANCE AMOUNT
TABLE B - PROGRAM ELEMENT CLASSIFICATION
(Non— construction)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12. TOTAL (Share- Recipient- % Federal. _ %)
13. TOTAL APPROVED ASSISTANCE AMOUNT
TABLE C - PROGRAM ELEMENT CLASSIFICATION
(Construction.)
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
11. CONSTRUCTION AND PROJECT IMPROVEMENT
12. EQUIPMENT
13. MISCELLANEOUS
14. TOTAL (Lines 1 thru 13)
15. ESTIMATED INCOME (It applicable)
16. NET PROJECT AMOUNT (Line 14 minus 15)
17 LESS. INELIGIBLE EXCLUSIONS
IB. ADD CONTINGENCIES
19* TOTAL (Shff: Recipient*— % Federal. %)
20.1TOTAL APPROVED ASSISTANCE AMOUNT
TOTAL APPROVED ALLOWABLE I
BUDGET PERIOD COST ,
1
$
i
j
i1
•
* i
:
•
!•
,
$
EPA Form S700-20A (Rev. 8-79)
PAGE 2 OF 4
-------
PART III-AWARD CONDITIONS
a. GENERAL CONDITIONS
The recipient covenants and agrees that it will expeditiously initiate and timely complete the project work for
which assistance has been awarded under this agreement, in accordance with all applicable provisions of 40 CFR
Chapter I, Subpart B. The recipient warrants, represents, and agrees that it, and its contractors, subcontractors,
employees and-representatives, will comply with: (1) all applicable provisions of 40 CFR Chapter I, Subchapter B,
INCLUDING BUT NOT LIMITED TO the provisions of Appendix A to 40 CFR Part 30, and (2) any special
conditions set forth in this assistance agreement or any assistance amendment pursuant to 40 CFR 30.425.
b. SPECIAL CONDITIONS.
(For cooperative agreements include identification or summarization "of EPA responsibilities that reflect or
contribute to substantial involvement.)
EPA Form 5700-20A (Rev. 8-79) PAGE 3 OF 4
-------
ASSISTANCE IDENTIFICATION NO..
b. SPECIAL CONDITIONS (Continued)
PART IV
NOTE: The Agreement must be completed in duplicate and the Original returned to the Grants Administration
Division for Headquarters awards and to the appropriate Grants Administrations 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, may
result in the withdrawal of the offer by the Agency. • Any change to the Agreement by the recipient subsequent
to the document being signed by the EPA Award Official which the Award Official determines to materially
alter the Agreement shall void the Agreement.
OFFER AND ACCEPTANCE
The United States of America, actine bv and through the U.S. Environmental Protection Agency (EPA), hereby offers
assistance/amendment to the
fcr
.% of all approved costs incurred up to and not exceeding S.
RECIPItMT ORGANIZATION
ASSISTANCE AMOUNT
for the support of approved budget period effort described in application (including all application modifications)
included heiein by reterence.
ISSUING OFFICE (Grants Administration Office)
AWARD APPROVAL OFFICE
ORGANIZATION/ADDRESS
ORGANIZATION/ADDRESS
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
TYPED NAME AND TITLE
DATE
This Agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and assistance
regulations. In accepting this award or amendment and any payments made pursuant thereto, (1) the undersigned
represents that he is duly authorized to act on behalf of the recipient organization, and (2, the recipient agrees
(a) that the award is subject to the applicable 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 RECIPIENT ORGANIZATION
SIGNATURE
TYPED NAME AND TITLE
DATE
EPA Forri 5700-20A (Rev. 8-79)
PAGE 4 OF 4
-------
1 SUMMARY OF COSTS OF PLANNED TREATMENT WORKS
SCHEDULED BY PROJECT AND CATEGORY
(Read Instruction* on reverse before completing form)
1.
2.
3.
4.
5.
6.
7.
8.
PROJECT STEP
ESTIMATED CALENDAR QTR/YEAR
APPLICATION WILL BE SUB-
MITTED TO EPA FOR FUNDING
a. CATEGORY I
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 _f>]
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 COST INDEX OF i
(month and year)
\S REPOR1 ED BY THE ENGINEERING NEWS RECORD
TOTAL ALL
PROJECTS
$
$
$
$
IE LATEST
NOTE Suggested format for data to be included in the facilities plan.
Include 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 of
design or construction into additional Step Two or Step Three projects. Use additional pages if the number of projects being recommended excee
four. If one or more recommended Step Two or Step Three projects would be carried out by a municipality other than the municipality fundii.^
the Step One facilities planning, show that project(s) on a separate page.
SPECIFIC INSTRUCTIONS
ITEM
1 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.
2 Enter the setup of each project planned.
3 Enter the date (.calendar quarter I year) when the application for each recommended project is scheduled to be submitted to EPA.
4 Enter the estimated cost of each project identified by category of work.
5 Enter the total estimated cost of each project and the sum of all projects.
6 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 oxyge-
demand, total organic carbon, pesticides, heavy metals, etc. Also included are polishing lagoons which temporarily ret
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
Submit in duplicate to appropriate Regional Of/ice
Form Approved
OMB No. 158-R0108
LEGAL. NAME OF APPLICANT
PROJECT NO.
ADDRESS
-------
OMB Approval No. 29-Mflt
FEDERAL ASSISTANCE
>• ™>E
ACTION
[J PREAPPLICATION
Q APPLICATION
Q NOTIFICATION OF INTENT (Opt)
Q REPORT OF FEDERAL ACTION
2. APPLI-
CANT'S
APPLI-
CATION
e. NUMBER
b. DATE
19
yeor month
3. STATE
APPLICA-
TION
IDENTI-
FIER
I. NUMBER
b. DATE
ASSIGNED
year -orttk day
19
Ltan
Blank
4. LEGAL APPLICANT/RECIPIENT
i. Applicant Him*
b Orpmntlan Unit
c. Street/P.O. Box
4. City
I State
b. Contact P«ng (/Vat
A telephone No.}
o. County :
I. ZIP Code-
5. FEDERAL EMPLOYER IDENTIFICATION NO.
PRO-
GRAM
(From
Ftdml
Catalog}
I NUMBER
b. TITLE
7. TITLE AND DESCRIPTION OF APPLICANT'S PROJECT
8. TVPE OF APPLICANT/RECIPIENT
A-Slete
B-lntiraUt*
C-SubtUI*
Diilriel
D-County
£-Cit»
F-School District
H Community Action Afency
I- Hither Educational Institution
*- Indian Tribe
K-Other ~
Inter appropriate letter
9. TYPE OF ASSISTANCE
A-Biiic Gnnl D-lnsuranco
B-Supplemcntal Grant E-Ottiar
C-Loan
Enter appro- I 1 I
priate letlcrfej \ \ \
10. AREA OF PROJECT IMPACT (Jtfamci of citiu. cewituo.
Stalee. <(c.)
11. ESTIMATED NUM-
BER OF PERSONS
BENEFITING
12. TYPE OF APPLICATION
A-NM C-Ramian E-Augmentation
B-Rintwil D-Continuatlon ,—•
Ciller appropriate letter I
13.
PROPOSED FUNDING
14. CONGRESSIONAL DISTRICTS OF:
1. FEDERAL
b. APPLICANT
c. STATE
d LOCAL
t. OTHER
I. TOTAL
.00
.00
•. APPLICANT
16. PROJECT START
DATE year mmla da»
19
b. PROJECT
17. PROJECT
DURATION
IS. TYPE OF CHANGE (For Itc or lit)
A-lncrcaw Dollin F-Othar (Speei/v):
B-OccrciM Dollara
C-lncrrau Duration
D-OocmM Duration
E-Cancallation
Mont*.
Cuter eppro-
pnafe Itlttr(i)
IB. ESTIMATED DATE TO
BE SUBMITTED TO
FEDERAL AGENCY p>
year nonlh day
19. EXISTING FEDERAL IDENTIFICATION NUMBER
19
20. FEDERAL AGENCY TO RECEIVE REQUEST (Nanu. CU». Slate. ZIP oode)
21. REMARKS ADDED
O Va« n No
22.
THE
APPLICANT
CERTIFIES
THATk>
a. To the bat ol my knowladsa and ballaf.
data In tkia praappllutlon/appllcatlan an
tnio and ewnct, ttc documenl baa barn
dulj authorlnd by In* rnornlng body of
Un applicant and tta inpllcant will empty
witb the attacbad aauraaca II tta a«aW-
ence la appnmd.
b. II required by OMB Circular A-95 thla application waa aubmltled. punuant to In. No ro-
ctnictlora therein, to appropriate clacrinihauMo end all raponaet ere attached eponee
(D
O
(3)
a
a
D
D
a
D
23.
CERTIFYING
REPRE-
SENTATIVE
a. TYPED NAME AND TITLE
b. tISNATURE
c. DATE SIGNED
Y<
'ear nontfc day
19
24. AGENCY NAME
25. APPLICA-
TION
RECEIVED 19
rear moiU* day
26. ORGANIZATIONAL UNIT
27. ADMINISTRATIVE OFFICE
28. FEDERAL APPLICATION
IDENTIFICATION
29. ADDRESS
30. FEDERAL GRANT
IDENTIFICATION
31. ACTION TAKEN
fj a. AWARDED
Q b. REJECTED
fj c. RETURNED FOR
AMENDMENT
fj d. DEFERRED
fj a. WITHDRAWN
32.
FUNDING
a FEDERAL
b APPLICANT
c. STATE
d. LOCAL
t OTHER
t. TOTAL
.00
JO
.00
.00
M
.00
«om* day
33. ACTION DATE |> 19
34. year awmlh da*
STARTING
DATE 19
35. CONTACT FOR ADDITIONAL INFORMA-
TION (Nam* and telepkone nymeer)
36. I
ENDING
DATE 19
monlk. da*
37. REMARKS ADDED
D *•«
38.
FEDERAL AGENCY
A-95 ACTION
e In teklnf above action, any commenta received from doarlniheuiei
udered II agency mponae a due under pronalona of Flit 1. OMB Clrc
It nai baea or h) beioi made.
Circular A-95.
b. FEDERAL AGENCY A-95 OFFICIAL
(Name and lelepAone CM.)
E PA Form 5700-32 (Rov. 6-76)
PAGE 1 OF 16
STANDARD FORM 424 PAGE 1 (10-76)
PrcoerOed 6« CSA. Federal Homaoowunt ChMbr Tt-T
-------
OMB APPROVAL NO. 29-R0218
SECTION IV-MEMARKS' (Please reference the proper item number from Sections 1, II or III, if applicable)
EPA Form 5700-32 (R.v. 6-76) PAGE 2 OF 16 STANDARD FORM 424 PAGE 2 (10-78)
-------
GENERAL INSTRUCTIONS OMB APPROVAL NO,29-R02ie
This is a multi-purpose standard form. First, it will be used by applicants as a required facesheet for pro-
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. Pro-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 area wide 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. Date applicant notified of clearinghouse Identifier.
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 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 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.
Item
10.
11.
12.
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 subuntts.
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.
13. 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.
14a. Self explanatory.
14b. The district(s) where most cf actuel work will be
accomplished. If city-wide or State-wide, covering
several districts, write "city-wide" or "State-wide."
15. 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)
-------
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:
ftem
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.
/tern
23b.
23c.
Note-
Self explanatory.
Self explanatory.
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:
Item
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. Itam definitions: 32a, amount
awarded by Federal Government, 32b, amount ap-
plicant will contribute, 3?c, 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.
ftem
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, 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.
B. 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 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. 6-74)
PAGE 4 OF 16
STANDARD FORM 424 PAGE 4 (10-75)
oTO-l«—S34W— 1 ara
-------
PART II
PROJECT APPROVAL INFORMATION Fom Approvea
SECTION A OMB No 158-R0134
Item 1.
Does this assistance request require State, local.
regional, or other priority rating?
Yes
Item 2.
Does this assistance request require State, or local
advisory, educational or health clearances?
Y«
Name of Governing Body
Pri^r'ty Rating
_No
Name of Agency or
RnprH
_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, Name of Approving Agency .
regional or other planning approval? Date
Yes No
ItemS.
Is the proposed protect covered by an approved Check one- State D
comprehensive plan' Local D
Regional D
Yes No Location of plan
Item 6.
Will the assistance requested serve a Federal Name of Federal Installation
installation? Federal Population benefiting from Project.
Yes No
Item 7.
Will the assistance requested be on Federal land Name of Federal Installation.
or installation' Location of Federal Land
Percent of Project
Yes 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 See instructions for additional information to be
project previous, pending, or anticipated' provided
Yes No
Item 11.
Is project in a designated flood hazard area'
Yes No
EPA Form 5700-32 (Rev. 6-76) PAGE 5 OF 16
-------
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 uie instructions contained in Office of
Management and Budget Circular No. A-9S. If comments were
submitted previously with e 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 conformence
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 thet will be
conducted on federally owned or leased lend. 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 en
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 deta is needed.
Item 10 - Show the Federel Domestic Assistance Catalog
number, the program name, the type of assistance, the status and
amount of each project where there is releted previous, pending.
or anticipated assistance. Use additional sheets, if needed.
Item 11—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
-------
Form Approved
OMB No. 158-R0134
INSTRUCTION
PART 11 -SECTIONS
11
12.
13.
14.
15.
16.
17.
18.
19
20.
21.
SITES AND IMPROVEMENTS: Not required, Attached as exhibits
Applicant intends to acquire the site through
Emmpnt domain Negotiated purchase .. . Other means (specify)
TITLE OR OTHER INTEREST IN THE SITE IS OR WILL BE VESTED IN:
Applicant Agency Or "Vhtl'T'O" operating the facility Other
INDICATE WHETHER APPLICANT/OPERATOR HAS:
Pee simple title 1 easehold interest, . . Other (specify)
(specify
IF APPLICANT/OPERATOR HAS LEASEHOLD INTEREST, GIVE THE FOLLOWING INFORMATION:
a. Length of 'ease or other estate interest , anrj number of years to run
b. Is lease renewable? Yes _No
c Current appraised value of land $
d Annual rental rate $ ......
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
WHERE APPLICABLE, ATTACH SITE SURVEY. SOIL INVESTIGATION REPORTS AND COPIES OF LAND APPRAISALS
WHERE APPLICABLE, ATTACH CERTIFICATION FROM ARCHITECT ON THE FEASIBILITY OF
IMPROVING EXISTING SITE TOPOGRAPHY.
ATTACH PLOT PLAN
CONSTRUCTION SCHEDULE ESTIMATES Not required. Being prepared. Attached as
Percentage of completion of drawings and specifications at application date*
Schematics % Preliminary % Final %
TARGET DATES FOR
Rid Advertisement r.r>ntrart Auua»d
Construction Completion _ Occupancy
DESCRIPTION OF FACILITY- Not Reau.red Attached as exhibits
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 1
NOTE ITEMS ON TH'S SHbET ARE SELF-EXPLANATORY. THEREFORE. NO INSTRUCTIONS ARE PROVIDED
EPA Form 5700-32 (Rev. 6-76) PAGE 7 OF 16
-------
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
11. Construction and project improvement
12 Equipment
13. Miscellaneous
14. Total (Lines 1 through 13)
15 Estimated Income tif applicable!
16 Net Project Amount (Line 14 minus 15)
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 (10O 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
$
S
•
Adjustment
+ or(-l
$
S
Total
Amount
Required
$
S
E PA Form 5700-32 (Rev. 6-76)
PAGE 8 OF 16
-------
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 architecture! engineering
services, such es 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 IS.
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
protect 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
-------
Form Approved
OMB No. 158-ROI34
SECTION C - EXCLUSIONS
26
a.
ClaBifi cation
b.
e.
d.
e
I.
9
Totals
Ineligible for
Participation
(1)
S
$
Excluded from
Contingency Provision
(2)
$
S
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)
28
h TOTAL -
Other Shares
Grantee share
a. State
b Other
c. Total Other Shares
29
TOTAL
S
S
SECTION E - REMARKS
EPA
P«« S700-1J
-------
Form Approved
OMB No 158-R0134
INSTRUCTIONS
PART III
Section C. Exclusions
Line 26 a-g - Identify and list those costs in Column (1) which
are part of the protect 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-Faderal 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
-------
PART IV-NARRATIVE STATEMENT
CONSTRUCTION GRANTS FOR WASTE WATER TREATMENT WORKS
Form Approved
OMB No. 158-ROI34
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 Pnor 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-
tlfy.by the National Pollution Discharge Elimination System
(NPDES) permit discharge name and number, a* 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 II An application for
a grant for Step 1 shall include
a A plan of study presenting (i) the proposed planning
area. In) 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 40 CFR 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-95).
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 wall 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.
> 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 foi
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 Stetes. (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 Farm 5700-32 (Rev. 6-76)
PAGE 12 OF 16
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Form Approved
OMB No 153-ROI34
SUMMARY OF COSTS OF PLANNED TREATMENT WORKS
SCHEDULED BY PROJECT AND CATEGORY
(Read instructions on reverse before completing form)
1.
[.
3.
•r*
^
4.
5.
6.
7.
8.
PROJECT STEP
ESTIMATED CALENDAR QUARTER/
YEAR APPLICATION WILL BE SUBMIT-
TED TO EPA FOR FUNDING
a. CATEGORY 1
Secondary Treatment and BFWTT
b. CATEGORY II
More Stringent Treatment
C. CATEGORY IIIA
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 SewerOverflows
h. CATEGORY VI
Treatment and/or Control of
TOTAL COST
OF STEP 2
AND STEP 3
PROJECTS
TOTAL ESTIMAV
PLANNED BUT U
TO BE INCLUDE!
GRANT
a. PREVIOUSLY
FUNDED
b. PLANNED
Eb COST 6P ALL
MFUNDED PROJECTS
> IN THE ENTIRE
STEP 1 PROJECT COST
PROJECT NO. C -0
•a.
PROJECT
SEQUENCE
STEP
$
$
S
MUNICIPALITY (Applicant)
b.
PROJECT
SEQUENCE
STEP
$
S
$
c.
PROJECT
SEQUENCE
STEP
$
$
$
d
PROJECT
SEQUENCE
STEP
$
S
$
APPLICANT'S
APPLICATION NO.
C- -0
e.
TOTAL ALL
PROJECTS
$
S
^
$
• *
S
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)
6RGANIZATlON
TELEPHONE
NUMBER
SIGNATURE
DATE NAME (Please print)
DATE
ORGANIZATION
AREA CODE
[ NUMBER SIGNATURE
9c. REVIEW AND APPROVAL BY EPA REGIONAL OFFICE
NAME (Please print)
DATE
SIGNATURE
* 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
-------
GENERAL INSTRUCTIONS OMB WoT'/S^WM*
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 K
SPECIFIC INSTRUCTIONS
ITEM(S)
If the first project funded by EPA was for Facilities Planning (Step One), report it on line 7. The second project would
assign^. PreParatlon °f construction drawings and specifications, etc Eriter any project sequence numbers the^ta* has
INFORMATION ON FUNDED OR PLANNED PROJECTS IN CHRONOLOGICAL
2 Enter the step of each project funded or planned.
3 EtC datf_(calfnd.ar quarter/year) when the application for each recommended project on a State Project Priontv List is
" '° ** " " "" "" *
4a-h Enter the actual or estimated cost of each project identified by category of work.
S Enter the total actual or estimated cost of each project.
6 Ehe0t ''1 " °f ' P'ann«d but unfunded
th™heD»0tF n'T'lr1 "? °f !l' P'ann«d but unfunded P"^ «» °e included ,n 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.
' for this *""" ' Enter the total «* °f
8 Enter the date (month/year) upon which estimated
*iews Record.
. :.,„..„....,.....„ ...... „„.„,.. „, ^.. . ... . |fs staff wno ,
b. Insert name and organization of State official responsible for review of this application.
c Insert name ol EPA individual responsible for programmatic review of the project covered by this application
CATEGORY DEFINITIONS
I
!nT±2nl£atm,T a"d B.32 (R.v. 6-7«, PAGE ,4 OP ,6
-------
Form Approved
OMB No. 158-R0134
PARTV
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 FMCi 74-4 and 74-7. as they relate to the 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
lion, 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
11296. relating to evaluation of flood hazards
3 It will have sufficient funds available to meet the
non-Federal share of the cost for construction protects
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 approval by the appropriate Federal agency
of the final working drawings 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 proiect. 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
and 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 inspections to insure compliance with th«M 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 project 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 -68 352) and m accordance with Title VI of that
Act. no person m 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 m 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 gam 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 IP 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 administrative re-
quirements approved in accordance with FMC 7.
15. It will comply with the provisions of the Hatch Act
which limit the political activity of employees.
(Continued on Back)
EPA Form 5700-32 (Rev. 6-76)
PAGE 15 OF 16
-------
Form Approved
OMB No. 158-R0134
18. 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 (Rev. 6-76) PAGE 16 OF 16
-------
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
PARTI-GENERAL
1. GRANTEE
3. NAME OF CONTRACTOR OR SUBCONTRACTOR
S. ADDRESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP code)
2. GRANT NUMBER
4. DATE OF PROPOSAL
6. TYPE OF SERVICE T O BE FURNISHED
PART II -COST SUMMARY
7. DIRECT LABOR (Specify labor categories;
DIRECT LABOR TOTAL:
8. INDIRECT COSTS (Specify indirect coat pools)
INDIRECT COSTS TOTAL-
ESTI-
MATED
HOURS
RATE
HOURLY
RATE
$
x BASE =
S
9. OTHER DIRECT COSTS
a. TRAVEL
(1) TRANSPORTATION
(2) PER DIEM
TRAVEL SUBTOTAL:
b. EQUIPMENT, MATERIALS, SUPPLIES (Specify categories)
EQUIPMENT SUBTOTAL:
QTY
COST
$
C. SUBCONTRACTS
SUBCONTRACTS SUBTOTAL:
d. OTHER (Specify categories)
OTHER SUBTOTAL-
e.' OTHER DIRECT COSTS TOTAL-
ESTIMATED
COST
$
ESTIMATED
COST
$
ESTIMATED
COST
t
$
ESTIMATED
COST
$
ESTIMATED
COST
$
$
ESTIMATED
COST
$
$
110. TOTAL ESTIMATED COST
TOTALS
$
S
S
S
5
E"A Form 5700-41 (2-76) PAGE ' °F 5
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£Lorai /ipprAirod
OMB Afoi KB"KOi^'
PART III -PRICE SUMMARY
13.
COMPETITOR'S CATALOG LISTINGS. IN-HOUSE ESTIMATES, PRIOR QUOTES MARK
flndicoio hauls tor price comparison; PRICE
PART ^-CERTIFICATIONS
14.
14a
I4b
I4c
CONTRACTOR
ET PROPOSED
US) PRICE
$
. 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?
| | YES | | NO (11 "Yee" give name address and telephone number of reviewing office)
.THIS SUMMARY CONFORMS WITH THE FOLLOWING COST PRINCIPLES
. This is to certify to th
and belief that the cost and pricing data summarized herein are complete, current, anc
(2), and that a financial management capability ei
rately account for the financial transactions under this project. I further certify that I
subagreement price may be subject to downward renegotiation and/or recoupment whe
pricing data have been determined, as a result of audit, not to have been complete, ci
of the date above.
(3)
DATE OF EXECUTION SIGNATURE OF
2 best of my knowledge
accurate as of
[ists to fully and a ecu-
understand that the
re the above cost and
irrent and accurate as
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 snbagreement award
DA TE OF EXECUTION SIGNATURE OF
REVIEWER
TITLE OF REVIEWER
16.
EPA REVIEWER (11 applicable)
DATE OF EXECUTION SIGNATURE OF REVIEWER
1
TITLE OF REVIEWER J
EPA Form 5700-41 (2-76)
PAGE 2 OF 5
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Form Approved
OMB No. I58-R0144
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 Ml 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
salary rate of the individual concerned Distribution of profits shall
not be 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
protected 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 allocated 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
RESULTS 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
E PA Form 5700-41 (2-76)
PAGE 3 OF 5
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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 ofpn vate aircraft
b Equipment, Materials, and Supplies
(1) Long distance telephone, telegraph, and cable
expenses to be incurred in connection with the
performance of services required in connection
with the contract
(2) Reproduction costs including blueprints, black
and white prints, ozalid prints, photographs,
photostats, negatives, and express charges
(3) Commercial printing, binding, artwork, and
models
(4) Special equipment
c Subcontracts
d Other Direct costs, if any, not included above
Form Xpncovecf
OMB No. 1S8-R01T4
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 dienv
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 10-Total Estimated Cost
Enter the total of all direct labor, indirect costs, and other direct
costs from items 7, 8, and 9
Item 11 - 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 prof it-making organizations (41 CFR 1-1 5 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
and bad debts 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 10 and item 11
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 in-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 the
subagreement
EPA Form 5700-41 (2-76)
PAGE 4 OF S
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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 30710 Cost principles applicable to
subagreements with profit-making organizations are those
at 41 CFR 1-152, and. for architect-engineer or
construction contracts, 41 CFR 1-154
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) „ „ PAGES OF 5
U S. Government Printing Off ice 1978-777-066/1114 Regions
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ENVIRONMENTAL
PROTECTION ORDER
AGENCY
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
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CENTER LINE
MITER EDGE AT ALL CORNERS
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BACKGROUND AND ALL OTHER
SIGN COMPONENTS NOT DESIGNATED
ARE PAINTED WHITE NO 17886
AN EQUAL EMPLOYMENT
OPPORTUNITY PROJECT
Blue No. 15180
Blue No. 15180
Light green Mix (see below) r™"~~
Dark green No 14090 w
Light green Mix (see below) A
Dark green No 14090
Light green Mix 5 Parts No 136S5 to
1 part No. 15180
POLLUTION CONTROL PROJECT
PROJECT NUMBER C-01 1 234 -(
Environmental Protection for Fairfax County —
New 1.5 Million Dollar Waste Treatment Works
$ Federal Dollars $ State Dollars
^Ck1703g
LEFT BORDER SHALL BE DETERMINED USING
THE LONGEST LINE CENTERED ON THE SIGN
PROVIDING EQUAL BORDERS
EASE ALL EDGES
PROVIDE ADEQUATE SUPPORTS FOR SIGN AS SITE CONDITIONS
MAY REQUIRE AND KEEP SIGN A PROPER DISTANCE ABOVE —
PREVAILING GRADE TO PERMIT PUBLIC VIEWING
GRADE
COLOR NUMBERS REFER TO FEDERAL COLOR STANDARD NO S95a (148) WHICH ARE AVAILABLE FROM GSA SUPPLIES.
l_t
SECTION WA-A'
PROJECT SIGN DETAILS
ENVIRONMENTAL PROTECTION AGENCY
Figure 1.
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SAMPLE FORMAT
REVISED COST ESTIMATES
1. LOCATION OF PROJECT (State, County, City)
PROJECT NUMBER
2. LEGAL NAME AND ADDRESS OF APPLYING AUTHORITY ("Applicant")
A. CONSTRUCTION (specify numbers where requested)
i':
i ' i
IL;
ri
i1
(i
i ' r
L) CONTRACT NO.
2J CONTRACT NO.
3i CONTRACT NO.
41 CONTRACT NO.
51 CONTRACT NO.
5 i LATER CONTRACTS
H EQUIPMENT AND MATERIALS
(SUB-TOTAL)
B. TECHNICAL SERVICES
LEGAL AND FISCAL
D. ADMINISTRATIVE
E. CONTINGENCY
F. OTHER (specify)
G. SITE
H. TOTAL
TOTAL PROJECT
(
t
I
<
«
1
I
1
4
1
<
(
«
1
t
i
>
i
>
t
>
i
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k
>
$
$
$
$
$
$
$
$
FOR GRANT
PARTICIPATION
:>
!>
i>
!>
!>
ii
il
$
$
$
$
$
$
$
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 OF AUTHORIZED REPRESENTATIVE
'ME AND
DATE
TITLE OF REPRESENTATIVE (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.
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OMB NO M-MOIII
_.._. ... __—_-._ ..... nc-mietv end 1- Fodaral Agency and Orgoni t.non.l 2 F.dorol Gtoni No. >r Other
OUTLAY REPORT AND REQUEST FOR EI.~M id.m.iy.n, NU....
REIMBURSEMENT FOR CONSTRUCTION PROGRAMS
X Tyea .1 Requeit < •*•'• •' R«W.*i *• Perlid Payment Roaueif N.
B Final D Cart
p.,t,.l O Accrued E«penditur.
6. Employ.' ldonM«.e«en Ho. 7. GfeMa. Acceynt N. or Idontll^no a P.H«I Cov.,«l (M»th. 0.,. V...)
N.. PROII| TO
II II
». N.. .1 &«.«. O...I .«.- "• ••<— «• P'l— <" ««""• *- "- »>
.T..IT.O A».A1I< .TM.TM AMO UMI
II STATUS OF FUNDS
CLASSIFICATION
c. LamLstiuctures. right-of-way
d. Architectural engineering basic fees
e Other architectural engineering fees
f. Project inspection fees
g Land development
i Relocation payments to mdiv. and businesses ....
1 Demolition and removal
k Construction and project improvement cost
1 Equipment
m Miscellaneous cost
n Total emulative to date (Sun of Lines a*i) . ...
o Deductions to program income
p Net cumulative to date (Lrne n minus Line o) .
q. Federal share to date
r. Rehabilitation grants (100% reimbursement)...
s Total Federal share (Sum of Lines q and r) .. .
t Federal payments previously requested .. . . .
u Amount requested for reimbursement ....
v Percent of project completed
PROGRAMS — FUNCTIOm — ACTIVITIES
(1)
S
s
s
(9
S
s
%
(31
f
S
%
TOTAL
S
s
ft
12. CERTIFICATION - 1 c«rtlly *.t to tho bo.t .1 my bno.l.doo and b.li.1 Ih. btll.d co.t. .1 dlAutM..ril. or. In oecordanc. with Ih. t.r.l .1 Ih. pr.|.cl
«Mk i« m accwdanc. with Ih. farms .t Ih. grant
a. GRANTEE b STATE. LOCAL. OR FEDERAL GOVERNMENT REPRESENTATIVE
Nam. N.m.
Till.- T.l.phon. N. Till.
Slgnatur. .1 Author liod Official Ooto Stgnoliira .f Author liod Official
Tolophor.. Na.
Data
EPA Farm 2550-16 (R.v. 9-74)
REPLACES EPA FORM 2550-1S (2-741 WHICH IS OBSOLETE.
-------
INSTRUCTIONS FOR PREPARING THE OUTLAY REPORT AND REQUEST FOR
REIMBURSEMENT FOR CONSTRUCTION PROGRAMS
Item 1 - Enter name ot the Federal gianior agency and
organizational element to which the report is submitted
Item 2 — Enter the gram number or other identifying num
bar 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
protect
Item 4 - Show whether amounts are computed on an ac
crued expenditure 01 cash disbursement basis
Item 5 — Enter the uartidi 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
duding 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 is different than the grantee organization shown
in Item 9
PLEASE READ BEFORE COMPLETING ITEM 11 The
purpose of vertical columns (II 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 addi
tional forms as needed and mark "continuation" on each
form, however, the summary totals of all programs tune
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 ot 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
ftruction
Line c Enter all amounts directly associated with the
acquisition of land, 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 construction
and related programs
Line g Enter all amounts associated with the develop
ment ot land where the primary purpose of the grant is
land mprovement The amount pertaining to land devel
opmeni normally associated with major construction
should be excluded from this category and entered on
Lmek
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 relocation payments made
by the grantee to displaced persons farm-, 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 ot struc
lures from developed land All proceeds from the sale of
salvage or the removal ol structures should ne credited to
this account thereby 'effecting 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 'o> project im
provements such as sewers streets, landscaping, and
lighting
Line I Enter amounts 'or all equipment, both fixed and
movable, exclusive o< 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 Fpo«-al grantor
agency
Line s Enter the total ot Lines q and r
Line t Enter the total amount of Federal payments pre-
viously requested, if 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
le may be a qualified State local or Federal government
employee
EPA Form 2550-16 (R.v. 9-74)
-------
U S ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D C 20460
NOTIFICATION OF ASSISTANCE AWARD ACTION-Construction
(Vote Awards are wbfecl to declination by applicant)
"PA OFFICE OF LEGISLATION CONTACT
TELEPHONE
(202) 755-0488
2 ASSISTANCE AGREEMENT/AMENDMENT TO BE MAILED TO
APPLICANT ON OR AFTER
3 ISSUING OFFICE
4 LOG NUMBER
5 DATE OF AWARD
6a. COMMUNITY REP OR PROJ DIRECTOR (Name, Title, Telephone)
7. RECIPIENT (Name, Street, City, State, ZIP Code, County,
Cong. Dist.)
6b. CONSULTANT (Name, City and State?
PROJECT LOCATION (Areas impacted b} pro/ecij
CITY/PLACE
COUNTY
STATE
CONGRESSIONAL DISTRICT
9. RECIPIENT TYPE
13a. EIN CODE
10 COMMUNITY POPULATION
11. FIELD OF SCIENCE
12 PROJECT STEP
13b. STATE APPLICATION
IDENTIFIER
14 EPA CONTACT FOR PROJECT INFORMATION (Name, Title. Telephone)
15. ASSISTANCE IDENTIFI-
CATION NUMBER
16 TYPE OF ASSISTANCE
ACTION
17. PROJECT PERIOD
18 BUDGET PERIOD
9 ASSISTANCE PROGRAM
CKDA Program No 66
20 ASSISTANCE MAKING AUTHORITY (P.L Title, Section)
21
A F
ME
TO
OF
TU
HN
ED
RS
FORMER AWARD
$
THIS ACTION
S
AMENDED TOTAL
22 TOTAL PROJECT COST
$
23 TOTAL BUDGET COST
*
24. UNEXPENDED PRIOR YR 8AL.
$
25
FORMER ELIGIBLE COST
S
CHANGE IN ELIGIBLE COST
S
CURRENT ELIGIBLE COST
$
FORMER AWARD
$
THIS ACTION
$
AMENDED TOTAL
S
27 PROJECT TITLE AND DESCRIPTION
28 OTHER INFORMATION
29
FISCAL DATA
PROGRAM ELEMENT
FY
APPROPRIATION
DOCUMENT CONTROL NO
ACCOUNT NO
OBJ CL
OBLIG AMT
EPA Form 5700-1 B (Rev. 8-79)
PREVIOUS EDITION IS OBSOLETE.
-------
&EPA
U.S. ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 2046O
NOTIFICATION OF GRANT AWARD ACTION-(Construction)
(Decreases/Dec/inafions/Wifhdrawa/s)
1. EPA OFFICE OF LEGISLATION CONTACT TELEPHONE
(202) 755-0488
3. ISSUING OFFICE
6. COMMUNITY REP OR PROJECT DIRECTOR (Name, Title, 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, Slate. ZIP Code, County, Cong, Dist.)
9. P ROJECT- LOCATION (Areas Impacted by project)
CITY/PLACE
10, COMMUNITY POPULATION
COUNTY STATE
11. FIELD OF SCIENCE
14. EPA CONTACT FOB PROJECT INFORMATION (Name, Title, Telephone)
t». GRANT PPOGRAM
CFDA Program No. 66.
FORMER AWARD
2U $
A F *
y1 ^ THIS ACTION
?U$
gg AMENDED TOTAL
RS$
22. TOTAL PROJECT COST
$
23. TOTAL BUDGET COST
$
24. UNEXPENDED PRIOR YR. SAL.
s
CONGRESSIONAL DISTRICT
12. PROJECT STEP
1 5. GRANT NUMBER
17. PROJECT PERIOD
9. GRANTEE TYPE
13. VENDOR CODE
16. TYPE OF GRANT ACTION
18. BUDGET PERIOD
20. GRANT MAKING AUTHORITY (P.L. Title, Section)
FORMER ELIGIBLE COST
E '$
1 c CHANGE IN ELIGIBLE COST
GO.
ps$
8 CURRENT ELIGIBLE COST
J $
FORMER AWARD
26.$
p THIS ACTION
AAS
y AMENDED TOTAL
$
27. PROJECT TITLE AND DESCRIPTION
28. OTHER INFORMATION
29.
PROGRAM FY
ELEMENT
FISCAL DATA
APPROPRIATION DOCUMENT CONTROL NO. ACCOUNT NO. O B J C L OBLIGAMT
EPA Form 5700-1D (Rev. 5-76) PREVIOUS EC TION MAY BE USED UNTIL SUPPLY IS EXHAUSTED.
-------
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 [^TRAINING
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
denied the benefits of, or be otherwise subjected to discrimination under any program or activity under the said Federal Water
Pollution Control Act Amendments 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.
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
t 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
jgreements 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
IGNATURE OF ASSUROR BY PRESIDENT, CHAIRMAN OF BOARD OR COMPARABLE AUTHORIZED
OFFICIAL
DATE
EPA Form 4700-1 (Rev. 6-74)
PREVIOUS EDITION IS OBSOLETE
-------
U. S. ENVIRONMENTAL PROTECTION AGENCY
COMPLIANCE REPORT
(Title VI. Civil Rights Act of 1964 and Section 13. Federal
Water Pollution Control Act, As Amended)
NOTE: READ INSTRUCTIONS ON REVERSE BEFORE COMPLETING FORM.
1. A. APPLICANT (Name and Slate)
Form Approved
OMB No. 158-R0034
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 |~~|
111. 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-GOINS ASSOCIATED CONSTRUCTION:
1 4. AREAS OF PLANNED FUTURE TREATMENT SYSTEM CONSTRUCTION.
B. COMPLETE THE TABLE BELOW
POPULATION CHARACTERISTICS
1. POPULATION OF THE ENTIRE COMMUNITY
2. NUMBER OF PERSONS SERVED BY THE PROJECT
3. MINORITY POPULATION OF THE ENTIRE COMMUNITY
4. NUMBER OF MINORITY PERSONS SERVED BY THE PROJECT
TO TAJ.
5. GIVE AN EXPLANATION WHY MINORITY GROUPS AND LOW INCOME [ARE .AS ARE NOT BEING BERVEC 1 BY fg'^^ FACILITIES:
ARE NOT BENEFITING OR BEING SERVED BY THE PROPOSED PROJECT. AND/OR CANNOT BE BENEFITED OR SERVED.
C. GIVE THE SCHEDULE FOR FUTURE CONSTRUCTION BY WHICH TREATMENT SYSTEM SERVICE WILL BE PROVIDED TO ALL INHABI-
TANTS WITHIN APPLICANT'S JURISDICTION.
D. IS ANOTHER FEDERAL AGENCY BEING ASKED TO PROVIDE FINANCIAL ASSISTANCE TO ANY CONSTRUCTION ASSOCIATED WITH
THIS PROJECT' I | YES | IIMO
1. IF -YES- LIST THE OTHER FEDERAL AGENCY(S)
2. DESCRIBE THE ASSO Cl AT ED WORK
I certify that the Information given above U true and correct to the beet of my knowledge or belief. (A willfully /alee mtatement la
punishable by faw-C/.S. Code. Title 18, Section 1001)
A. SIGNATURE OF AUTHORIZED OFFICIAL B. TITLE OF AUTHORIZED OFFICIAL
FOR U.S. ENVIRONMENTAL PROTECTION AGENCY
DIRECTOR. DIVISION OF CIVIL RIGHTS AND URBAN AFFAIRS
I 1 APPROVED | | DISAPPROVED
C. DATE
DA1rE
E PA Form 4700-4 (Rev. 3-79) PREVIOUS EDITION IS OBSOLETE
-------
INSTRUCTIONS
GENERAL
Title VI of the Civil Rights Act of 1964 provides that no person in the United States shall, o.i the ground of race, color, or
national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or
activity receiving Federal financial assistance. The Act goes on to explain that the title shall not be construed to authorize action
with respect to any employment practice of any employer, employment agency, or labor organization (excaot wl.:ri 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 per.o-i in tha United States shall,
on the ground of sex, be excluded from participation in, be denied the benefits of, or be subjected to disr inunation 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
'• Self-explandtory.
U. "Jurisdiction" me«wi> 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 collection
systems, pumping, power, and other equipment and their appurtenances; extensions, improvements, remodeling, additions, and
alterations thereof, and any eleirents essential to provision of a reliable recycled water supply such as standby treatment units
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.
'illl.C..D. Self-explanatory.
IV. Self-explanatory.
EPA Form 4700-4 (R»v.3-79)
-------
ENVIRONMENTAL PROTECTION AGENCY
REPORT ON OPERATION AND MAINTENANCE
OF WASTEWATER TREATMENT PLANT
DATE OF INSPECTION
Form Approved
OMB N<. J58-R0035
A. GENERAL INFORMATION
1. PLANT
(a.) NAME
(b.) OWNER
(c.) LOCATION
2. TYPE OF PLANT
3. PROJECT NO.
4. AVG. DESIGN FLOW fmgcO
5. DESIGN POPULATION
EQUIVALENT
6.
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
11. 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
2.
PEAK FLOW RATE
DRY WEATHER
WET WEATHER
3. POPULATION SERVED
4. ANNUAL AVG BOD5 OF RAW SEWAGE (mf/1)
5. ANNUAL AVG SUSPENDED SOLID OF RAW SEWAGE (mg/l)
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 (mad)
10. INFILTRATION PROBLEMS
EPA Form 7500-5 (4-72) REPLACES FORM FWPCA-12 WHICH IS OBSOLETE.
-------
Form Approved
OMB No. 158-R0035
C PLANT PERFORMANCE
1.
LABORATORY ANALYSIS (Total Plait)
(a) REPORTING PERIOD
FROM (Month, year)
MONTHLY ITEMS
(b)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
IB)
(9)
(10)
(II)
FLOW (mgd)
(monthly average)
PEAK FLOW (mad)
(maximum day)
SETTLEABLE SOLIDS
(monthly average)
INFLUENT (ml/1)
EFFLUENT (ml/1)
% REMOVAL
SUSPENDED SOLIDS
(monthly average)
INFLUENT (mg/1)
EFFLUENT (mg/1)
1, REMOVAL
BOD (monthly average)
9
INFLUENT (mg/1)
EFFLUENTfmg/iJ
% 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 (as P)
(monthly average)
INFLUENT (mg/1)
EFFLUENT (mg/1)
% REMOVAL
TOTAL NITROGEN (aa N)
(monthly average)
INFLUENT (mg/1)
EFFLUENT (mg/1)
% REMOVAL
ACTUAL PLANT
PERFORMANCE
DATA
(c)
TO f Month, year)
PLANT
DESIGN
DATA
W
NPDES
PERMIT
REQUIREMENTS
(e)
PLANT
ACHIEVES
DESIGN
EFFICIENCY
-------
3. DOES PLANT HAVE ALTERNATE ELECTRIC POWER SOURCE' 4. ADE
CD DUAL FEED I I GENERATOR CD NONE FAIL
5. EQUIPMENT PROGRAM ADEQUATE INADE
ta.) ROUTINE MAINTENANCE SCHEDULES
».) RECORDS OF M AINTEN ANC E.REP AIRS & REPLCMT
(C.) SPARE PARTS INVENTORY
8. DOES SEWAGE BY-PASS 9. AGENCIES NOTIFIED OF EACH BYPASS
PLANT IN DRY
WEATHER'
CD YES CD NO
QUATE ALARM SYSTEM FOR POWER OR EQUIPMENT
.URES' CD YES CD NO
OUATE 6. IS PLANT EFFLUENT 7. DOES SEWAGE BY-PASS
BEING CHLORINATED' PL AN T IN WE 1 WEA 1 HEN'
CDYES CD NO CDYES CD NO
10. BYPASS FREQUENCY 1 1. AVG DURATION OF 12. REASON FOR BYPASSING 13. CAN BYPASS SEWAGE BE
(Monthly) BYPASS (Hrs) CHLORINATED' CDYES CD NO
14. DO SEWER OVERFLOWS OCCUR 15. ANY ODOR COMPLAINTS BEYOND PLANT PROPERTY' (II yes. explain)
UPSTREAM OF PLANT'
CD YES | | NO
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'
CDYES CD No (II yes, check one ol the tallowing) CD CONTINUING BASES CD REQUEST BASES
18. DO OPERATORS AND OTHER PERSONNEL ROUTINELY ATTEND SHORT
COURSES. SCHOOL OR OTHER TRAINING' CD YES CD NO
(a.) If yes, cite course sponsor, and date of last course.
(b.) If no, are there any courses available in this area'
(c.) Is there an established procedure for training new operators9
20. EXPLAIN MAIN DIFFICULTY EXPERIENCED WITH INDUSTRIAL WASTES
19. IS LAB TESTING ADEQUATE FOR THE CONTROL
REQUIRED FOR THIS SIZE AND TYPE OF PLANT
AND USES OF RECEIVING WATERS'
CD Y ES CD NO (II No. explain)
21. PERMANENT RECORD FILE
(a.) PLANT OPERATION AND MAINTENANCE MANUAL' CD Y ES CD NO (b.) AS BU 1 LT PL ANS AN D SPECI FIC ATIONS' CD YES CD NO
(c.) MANUFACTURERSOPERATION 6 MAINTENANCE SPECIFICATIONS' CD Y ES CD NO (d.) FLOW CHARTS' CD YES CD 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 MAINTENANCE S
24. STABILIZATION PONDS
(a.) WEEDS CUT AND VEGETATION GROWTH IN PONDS REMOVED' (b.) BA
[DYES CD NO r-j
(c.) ANY REPORTS OF GROUND WATER CONTAMINATION FROM POND' (II
fd.) aEEPAGE REPORTED' (e.) ADEQUATE DEPTH CONTROL' (f.) EFF
CD YES CD NO CD YES CD NO CD c
rAFFING & TRAINING OTHER TOTAL
NKS AND DIKES MAINTAINED' (Erosion, etc.)
YES | | NO
yes, give details) \ ) Y ES CD NO
LUENT RELEASE IS
ONTINUOUS CD INTERMITTENT CD SEASONAL
EPA Form 7500-5 (4-72) PAGE 3
* CPO: 1972-722-094
-------
D. LABORATORY CONTROL
CODING INSTRUCTION
Enter test codes opposite appropriate items. If any of the below tests are used to monitor industrial wastes, place an "X" in
addition to the test code.
1 - 7 or more per week 3 - 1, 2 or 3 per week 5 - 2 or 3 per month 7 - Quarterly 9 - Annual!
2-4, 5 or 6 per week 4 - as required 6-1 per month 8 - Semi-Annually
ITEM
(a.)
1. BOO
2. SUSPENDED SOLIDS
3. SETTL EABL E SOLIOS
4. SUSPENDED VOLATILE
S. DISSOLVED OXYGEN
6. TOTAL SOLI OS
7. VOLATILE SOLIDS
8. pH
9. TEMPERATURE
1O. COLIFORM DENSITY
11. RESIDUAL, CHLORINE
12. VOLATILE ACIDS
13. M B STABILITY
14. ALKALINITY
IS.
16.
17.
18.
IB.
RAW
(b.)
PRIMARY
EFFLUENT
(c.)
MIXED
LIQUOR
(d.)
FINAL
(e.)
(f.) SLUDGE
RAW
SUPER-
NATANT
DIGESTER
(g.)
RECEIVING
STREAM
(b.)
COMMENTS
E. PLANT PERSONNEL INVENTORY
PERSONNEL CLASSIFICATION
(a.)
1. MANAGEMENT/SUPERVISOR
2. OPERATOR
3. LABORATORY
4. M AINTEN ANC E
S. OTHER PLANT WORKERS
6. OTHER OFFICE/CLERICAL
7. TOTAL
EMPLOYMENT
(b.)
ACTUAL
MAN-HOURS
P ER WEEK
NUMBER
NUMBER
BUDGETED
NO. RE-
COMMENDEC
(c.) CERTIFICATION
VOLUNTARY
MANDATORY
NO. RECOM-
MENDED OR
REQUIRED
BY STATE
ACTUAL
NO.
CERTIFIED
TRAINING REQUIRED
NEXT 12 MONTHS
(d.)
NEW
HIRES
UPGRADE
(Promotion
or skill im-
provement
EPA Form 7SOO-S (4-72) PAGE 4
• GPO: 1972-722-093
-------
Form Approved
OMB No. 1S8-R0035
F. GUIDE • VISUAL OBSERVATION - UNIT PROCESS
RATING CODES: S = Satisfactory; U = Unsatisfactory; M = Marginal, IN = In Operation; OUT = Out of Operation
CONDITION OR APPEARANCE
GENERAL
LIMINARY
K
0.
PRIMARY
SLUDGE DISPOSAL
OTHER
SECONDARY-TERTIARY
(List Hems as required)
1 CHLOnrrfE
GROUNDS
BUILDINGS
POTABLE WATER SUPPLY PROT
SAFETY FEATURES
BYPASSES
STORM WATER OVERFLOWS
MAINTENANCE OF COLLECTION SYSTEMS
PUMP STATION
VENTIL ATION
BAR SCREEN
DISPOSAL OF SCREENINGS
COMMINUTOR
GRIT CHAMBER
DISPOSAL OF GRIT
SETTLING TANKS
SCUM REMOVAL
SLUDGE REMOVAL
EFFLUENT
DIGESTERS
TEMPERATURE ANDpH
GAS PRODUCTION
HEATING EQUIPMENT
SLUDGE PUMPS
DRYING BEDS
VACUUM FILTER
INCINERATION
DISPOSAL OF SLUDGE
FLOW METER AND RECORDER
RECORDS
LAB CONTROLS
EFFLUENT
CHLORINATORS
EFFECTIVE DOSAGE
CONTACT TIME
CONTACT TANK
RATING
COMMENTS
EPA Form 7500-5 (4-72) PACE 5
-------
Form Approved
OMB No. 158-ROO)}
G NOTATIONS BY EVALUATOR
1. OPERATION AND MAINTENANCE PROBLEMS/ DEFICIENCI ES
CHECK EACH OF THE FOLLOWING ITEMS IN TERMS OF THEIR ESTIMATED ADVERSE AFFECT ON THE PERFORMANCE OF THE PLANT
ITEM MAJOR
STAFF COMPLEMENT
PERSONNEL TRAINING
OPERATING BUDGET
LABORATORY CONTROL
INSTRUMENTATION
INDUSTRIAL WASTE
PLANT OBSOLESENCE
EQUIPMENT FAILURE
TREATMENT PROCESSES
SLUDGE HANDLING
AND PROCESSING
EQUIPMENT MAINTENANCE
SPARE PARTS INVENTORY
POWER FAILURE
MINOR NONE ITEM
OVERLOADS (type)
HYDRAULIC
PERIODIC
CONTINUOUS
ORGANIC
PERIODIC
CONTINUOUS
OVERLOAD CAUSE(S)
INFILTRATION
COMBINED SEWERS
INDUSTRIAL GROWTH
RAPID POPULATION GROWTH
INCREASED SERVICE AREA
OTHER
OTHER
MAJOR
MINOR
NONE
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
EVALUATION PERFORMED BY
INFORMATION FURNISHED BY
, , ACCEPTABLE
; — | CONDITIONAL ACCEPTANCE
1 — ' UNACCEPTABLE
TITLE ORGANIZATION
TITLE ORGANIZATION
DATE
DATE
EPA Form 7500-5 (R«v. 1-74) PAGE 6 REPLACES PAGE a (4-721 WHICH is OBSOLETE
-------
APPENDIX C
TRANSMITAL MEMORANDA
------- |