GUIDANCE FOR
          PREPARING A
         FACILITY PLAN
  MUNICIPAL WASTEWATER TREATMENT WORKS
     CONSTRUCTION GRANTS PROGRAM
                £ 41 \
                      LU
                      C3
            REVISED - MAY 1975
              UNITED STATES
      ENVIRONMENTAL PROTECTION AGENCY
           WASHINGTON, D.C. 20460

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     GUIDANCE FOR PREPARING

         A FACILITY PLAN
  Municipal Construction Division
Office of Water Program Operations
  Environmental Protection Agency
      Washington, D. C,  20460

       Revised - May 1975

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                              FOREWORD
     This guidance is to assist with preparing a preliminary facility
plan for construction of municipal sewage treatment works.   The facility
plan is the first step in a three step process required to  complete
treatment works with Federal grants from the Environmental  Protection
Agency.  The second step is preparation of detailed design  plans and
specifications.  The third and final step is construction of the treat-
ment works.  EPA will generally provide 75 percent of the eligible costs
of the three steps in the grants program.

     This grants program is now the largest public works program in
the United States.  The purpose of the facility plan is to  assure that
the treatment works built under this program are environmentally
sound and cost-effective.

     The complexity of the process of preparing facility plans will
vary with local circumstances, the size and nature of needed facilities
and the extent of previous planning efforts.  EPA is preparing model
facility plans, one for a community of about 5,000, and one for a very
small community of only a few hundred persons.  These model plans,
which are scheduled to be available in mid-1975, will give an indication
of the amount of detail appropriate for communities of these sizes.

     Effective July 1, 1975, this guidance supersedes "Guidance for Facilities
Planning" issued  in January 1974.   It presents a more streamlined and up-to-
date description of the basic requirements and ways of meeting them.  We
welcome your suggestions for changes, additions or deletions which
would help achieve the Agency's objective of timely preparation of
facility plans of quality.
                                James L. Agee, Assistant Administrator
                                for Water and Hazardous Materials

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                 GUIDANCE FOR PREPARING A FACILITY PLAN


FOREWORD

TABLE OF CONTENTS

1  .    INTRODUCTION

      1.1   Purpose
      1.2   Relationship of Facility Plans to Other Water Planning and
            Management  Programs

            1.2.1  State Continuing Planning Process and Basin Plans
            1.2.2  Areawide Waste Treatment Management Plans
            1.2.3  Municipal Permits
            1.2.4  State Responsibilities

2.    FACILITY  PLANNING AREA

3.    PLAN OF STUDY  (POS)

4.    FACILITY  PLAN

      4.1   Step 1:   Effluent  Limitations
      4.2   Step 2:   Assess Current Situation

            4.2.1   Introduction
            4.2.2  Existing Conditions in  the  Planning Area  Without  the
                    Project
            4.2.3  Existing Wastewater Flows and Treatment  Systems
            4.2.4  Infiltration  and  Inflow
            4.2.5  Performance of Existing System

      4.3    Step 3:   Assess  Future Situation

             4.3.1  Planning  Period
             4.3.2  Land Use          ^
             4.3.3  Demographic and Economic Projections
             4.3.4  Forecasts  of Flow and Waste Loads
             4.3.5  Future Environment   of the Planning  Area Without the Project

      4.4    Step 4:   Develop  and Evaluate Alternatives

             4.4.1  Baseline:   Optimum Operation of Existing Facilities
             4.4.2  Regional  Solutions
             4.4.3  Alternative Waste Treatment Systems
             4.4.4  Environmental Impacts

                    4.4.4.1   General
                    4.4.4.2  Primary Impacts
                    4.4.4.3  Secondary Impacts

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            4.4.5  Additional Guidance on Evaluation of Alternatives

                   4.4.5.1   Institutional arrangements
                   4.4.5.2   Industrial Services
                   4.4.5.3   Flow and waste reduction
                   4.4.5.4   Sewers
                   4.4.5.5   Sludge disposal
                   4.4.5.6   Location of facilities
                   4.4.5.7   Revision of wasteload allocation
                   4.4.5.8   Phased construction
                   4.4.5.9   Flexibility
                   4.4.5.10  Reliability

      4.5   Step 5:  Select Plan

            4.5.1  Selection Process
            4.5.2  Environmental Impacts of the Selected Plan

      4.6   Step 6:  Preliminary Design of Treatment Works
      4.7   Step 7:  Arrangements for Implementation

5.    PUBLIC PARTICIPATION

      5.1   Introduction
      5.2   Relationships between Planner and Public
      5.3   Requirement for Public Hearing
      5.4   Summary of Public Participation

6.    EVALUATION OF COSTS

      6.1   Introduction
      6.2   Sunk Costs
      6.3   Present Worth and Equivalent Annual Costs
      6.4   Example 1:  Constant 0 & M Costs
      6.5   Example 2:  Varying 0 & M Costs
      6.6   Example 3:  Varying 0 & M Costs, Phased Construction and
            Salvage Value

 7.    ENVIRONMENTAL EVALUATION

      7.1   Purpose
      7.2   Facility  Planning and the  Environmental Assessment
      7.3   Environmental Impact Statements
      7.4   Environmental Considerations

8.    PLAN  SELECTION

      8.1   Introduction
      8.2   Comparison and  Ranking of  Proposals

 9.    FORMAT  FOR SUBMISSION OF  PLAN

      9.1   Outline of Plan
      9.2   Appendices

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10.   REVIEW, CERTIFICATION AND APPROVAL OF PLANS

      10.1   Purpose
      10.2  Three Levels of Review
      10.3  Compliance with OMB Circular A-95
      10.4  Submission to State
      10.5  Submission to EPA
      10.6  Revisions to Plans
      10.7  EPA Review
      10.8  EPA Approval

APPENDIX A - REFERENCES

      A.I  FEDERAL REGULATIONS
      A.2  EPA DOCUMENTS
      A.3  CIRCULARS AND MISCELLANEOUS PUBLICATIONS

APPENDIX B

      Construction Grant Regulation

APPENDIX C

      Addresses of Regional Offices

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1.   INTRODUCTION

     1.1   Purpose

          This guidance suggests procedures for preparing a facility plan
     for publicly-owned treatment works.   The plan is required before a
     municipality may obtain a Federal  grant under the Federal  Water Pollution
     Control Amendments of 1972 to prepare detailed design plans and specifi-
     cations, and to construct the treatment works itself.

          The approach used here is to describe the requirements in the
     applicable laws and regulations and suggest a planning process by which
     they can be met.  The principal laws are the Federal Water Pollution
     Control Amendments of 1972 (FWPCA) and the National Environmental Policy
     Act (NEPA).  Federal documents which provide guidance and assistance  with
     preparing a facility plan are listed in Appendix A.  These documents  are
     referenced in the portion of this guidance to which they apply.  They may
     be obtained from the Regional Offices listed in Appendix C.  The principal
     regulation dealing with the facility planning process is enclosed with
     this guidance as Appendix B, "Water Pollution Control, Construction Grants
     for Waste Treatment Works" (see particularly Section 35.917).

          The level of detail required in a facility plan will vary according to
     the nalure, scale and  location of the undertaking.  Local municipalities
     and consultants should discuss the extent of planning required by tneir
     community with officials of the State and the Federal Environmental Pro-
     tection Agency.  Preapplication conferences of Federal. State and  local
ipj
lie
     officials to discuss how to proceea win oe neld to the extent resources
     permit.'

     1.2  Relationship of Facility Plans to Other Water Planning and Management
          Programs

          1.2.1   State Continuing Planning Process and Basin Plans

               Facility  plans will conform to applicable approved basin plans
          prepared  under Section 303  of  FWPCA (references  h, 1, and u).

               Under the State  continuing planning process,  "segments" of the
          nation's  waterways have been classified initially  as  "water quality
          limited"  or "effluent limited".  "Water quality  limited" segments
          are those which cannot be expected to meet  established water quality
          standards even if all point sources achieve the  effluent limitations
          required  by Section 301 of  FWPCA.  "Effluent limited" segments are
          those  where water quality standards can be  achieved after all point
          sources meet the  effluent limitations required by  Section 301.

               All  publicly-owned treatment  works which are  constructed with
          Federal grant  funds authorized after June  30, 1974, must achieve  "best
          practicable waste treatment technology", as defined in reference  o.
          Publicly-owned treatment works discharging  to  "effluent limited"

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segments must, as a minimum, provide secondary treatment as defined
in reference j.  Such works shall provide additional treatment or
include the use of other waste management techniques, when factors
such as water quality standards for the affected waterway or avail-
ability of cost-effective technology warrant standards more stringent
than secondary treatment.  The precise discharge limitation for
facilities on "water quality limited" segments will be determined in
the basin planning process or, where this is not complete, in con-
junction with the permit program.

1.2.2  Areawide Waste Treatment Management Plans

     Areawide plans, authorized under section 208  of FWPCA, are to
set forth a comprehensive management program for collection and
treatment of wastes, and for controlling pollution from all point
and non-point sources.  Controls for abating these sources are to
utilize a mix of land-use measures, management and regulatory pro-
grams, as well as structural methods.  The portion of the areawide
plan devoted to construction of publicly-owned treatment works in
the future should select and describe planning and service areas and
treatment systems, and provide supporting analysis for the selection.

     Areawide planning requirements, therefore, overlap with facility
planning requirements.  The Agency's policy on relationships between
the two programs during the period before final completion and
approval of an areawide plan is as follows:

     a.   New facility plans will be started and carried out as
     provided in the State priority list.

     b.   The scope and funding of facility planning will be
     sufficient to collect all data and conduct all analyses
     necessary for expeditious completion of the facility plan.

     c.   Facility and areawide planning will coordinate closely
     and share their data and analytical work, but completion of
     facility plans should not be dependent on the areawide planning
     process.

     d.   After a facility plan is completed, the project should
     continue through the remaining steps of the grants process after
     opportunity for timely review and comment by the 208 plannfng Agency.

     e.   After interim outputs have been developed and approved by
     the State and EPA for the areawide planning area, new facility
     plans must be consistent with the approved interim 208 outputs.
     The scope and funding of new facility planning should not extend
     to preparing a justification for the interim 208 outputs.  This
     justification already will be available from the areawide
     planning process."

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     The following will be the policy after the areawide plan has
been completed and approved, and the agency or agencies identified
to construct, operate and maintain the municipal treatment facilities
required by the plan:

     a.   All facility plans underway at the time of approval will be
     completed by the agency which received the grant for the facility
     planning.  The planning effort will continue as before approval
     unless the analysis in the approved 208 plan clearly justifies a
     change in required treatment levels or alternative approach on
     the basis of lower costs or major changes in environmental  impacts.

     b.   The scope and funding of new facility plans started after
     approval of the areawide plan will be sufficient to supplement
     the data and analysis  in the areawide plan to the extent necessary
     to provide a complete  facility plan as required by Section 35.917
     of the construction grants regulation (Appendix B).
          New grants for facility plans will be made to the management
          :ies designated in the approved areawide plans.  New facility
c.
agencii
planning will be consistent with the approved areawide plan.
 1.2.3  Municipal  Permits

     Facility  plans must,  as  a minimum, conform with all applicable
 permit requirements,  and  include a  copy of the permit.  Where a
 permit has  not been issued, the facility  plan should describe the
 applicable  Federal and  State  effluent  limitations.  These limitations,
 if not known,  should  be obtained from  State  officials and the
 Environmental  Protection  Agency.

 1.2.4  State Responsibilities

      States play a central role  in  management of  facility planning.
 The States' responsibilities  are as follows:

      a.    To prepare  a  State  priority  list  for construction  grants
      based  on  a determination of where and  when treatment works  will
      be  required (see reference  b).

      b.    To determine, through  the basin planning process,  the
      effluent limitations which  must be met by publicly-owned treat-
      ment works to comply with applicable requirements  of Federal,
      State  and local  law.

      c.    To delineate, on a  preliminary  basis,  the boundaries of  the
      facility planning  area.   These boundaries may be  adjusted as  a
      result of information obtained during  the facility planning
      process.

      d.    To review the plan  of  study to  ensure  that (1)  the geographic
      planning area is adequate,  (2) the nature and scope  of the  planning
      tasks  are properly defined  and cover only essential  works,  and
      (3) planning costs are reasonable.

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               e.   To review facility plans and certify that (\) tne plans
               conform with the requirements of the construction grants regula-
               tion (Appendix B); (2) the plan conforms with any existing final
               basin plans approved under section 303(e) of the Act; (3) any
               concerned areawide planning agency has been afforded the
               opportunity to comment on the plan; and (4) the plan conforms
               with any areawide treatment management plan completed and.
               approved in accordance with section 208 of FMPCA.

2.   FACILITY PLANNING AREA

     The facility planning area for new wastewater treatment systems should be
large enough to analyze the cost-effective alternative methods of waste trans-
port, treatment, handling and disposal of sludge and disposal of treated effluent.
It also should be large enough to analyze the environmental effects of alterna-
tives, as required by the regulation, "Preparation of Environmental Impact
Statements" (reference a).  This regulation requires an environmental assessment
as an integral part of a facility plan.

     Note, however, that facility planning shall be conducted only to the ex-
tent that the Regional Administrator determines to be necessary to meet ihese
requirements and to permit reasonable evaluation of grant applications and sub-
sequent preparation of design construction drawings and specifications (see
Section 35.917-4 of the Construction Grants Regulation in Appendix B).

     An applicant for a facility planning grant need not hold current legal
authority to implement all aspects of a facility plan as it may eventually
develop.  He must, however, have both the legal ability and the practical ex-
pection of acquiring such authority at the proper point in the grants process.
The proper time, in many cases, will be after the final waste management
alternative has been chosen near the conclusion of the facility plan.

3.   PLAN OF STUDY (POS)

     The Plan of Study (POS) must be prepared and approved by the State and EPA
before a facility plan is begun, and before a Federal grant may be approved for
a facility plan (see Section 35.920-3 in Appendix B).  The POS should briefly
(generally in ten pages or less) describe the scope, schedule and costs of the
proposed facility plan.  The POS should:

     a. Provide a map or maps showing the planning area; the SMSA; the boundaries
     of political jurisdictions; boundaries of streams, lakes, water impoundments
     and water basins; and the service areas of existing waste treatment systems.

     b. List the responsible planning organizations and agreements or resolutions
     for conducting joint planning, if any.

     c. Provide the 1970 population in the planning area.

     d. Describe briefly why a grant for facility construction is necessary,
     including water quality problems and applicable effluent limitations if
     this information is readily available.

     e. Summarize briefly the unit processes in the existing system, if any,
     and communities and major industries served.

     f. Describe data, plans and other information available to assist with
     facility planning.

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     g.   Say if the State Is expected_to certify that "excessive infiltration/
     inflow" does not exist (see part 4.2.4 below);  or that additional  data
     collection may be necessary.   If the applicant  believes that "excessive
     infiltration/Inflow" exists and a detailed sewer evaluation will  be
     necessary, the Plan of Study should so state.

     h.   Provide a schedule for completion of the specific tasks necessary
     to prepare the facility plan.

     i.   Estimate the cost for each task and the total  costs for the  facility
     plan.

4.   FACILITY PLAN

     A facility plan can be prepared in seven major  steps.   Each step  is dis-
cussed in a separate section below, along with recommendations on how  it can be
completed.  The applicability of these recommendations will vary with  local
circumstances.

     Environmental considerations should be addressed during facility  planning
to meet the requirement for an environmental assessment of each project (see
reference a).  For example, information on existing  and future environmental
conditions should be gathered and assessed along with the information  on other
aspects of the existing and future situation (see section 4.2 and 4.3).  Alterna-
tives should be evaluated for environmental impact at the same time they are
evaluated for costs and other impacts (see section 4.4).  A separate section of
the facility plan, however, should summarize the environmental considerations to
demonstrate that they have been adequately covered and provide a single point of
reference for a person interested in reviewing the environmental analysis.
(See Part 7 of this Guidance.)

     4.1  Step 1:  Effluent Limitations

          The facility plan should list the effluent limitations applicable  to
     the  facility being planned.  These effluent limitations normally may be
     found in a municipal permit issued under the National Pollutant Discharge
     Elimination System.  A copy of the municipal permit should be attached  to
     the  plan.

          If the facility is on a "water quality limited" waterway (see section
     1.2.1 above), the applicable water quality standards should be obtained
     from the State and briefly summarized in the plan, in addition to the
     effluent limitations necessary to meet the applicable water quality
     standards.

     4.2  Step 2:  Assess Current Situation

          4.2.1  Introduction

               The facility plan should briefly describe the existing  conditions
          to be considered when weighing alternatives during the facility
          planning process.

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4.2.2  Existing Conditions in the Planning Area Without the Project

     The following existing conditions should be described to the
extent necessary to analyze alternatives and determine the environ-
mental impacts of the proposed actions.   Only conditions which are
applicable to the project should be discussed.

     a.   Planning area description,  planning area boundaries, poli-
     tical jurisdictions and physical  characteristics, including
     climate, geology, soils, topography and hydrology.

     b.   Organizational context,  the role of all  organizations in-
     volved in planning, financing and operating publicly-owned waste
     treatment works in the planning area.

     c.   Demographic data,  the 1970 census population, land-use
     patterns, and major employment generating activities.

     d.   Water quality,  existing quality, quantity, and uses of
     surface and ground water.

     e.   Other existing environmental conditions,   air quality, noise
     levels, energy production and consumption, wetlands, flood plains,
     coastal zones and other environmentally sensitive areas, historic
     and archaeological sites, other related Federal or State projects
     in the area, and plant and animal communities  which may be
     affected, especially those containing threatened or endangered
     species.

Sources of information used to describe the existing environment and
to assess future environmental impacts should be cited.

4.2.3  Existing Wastewater Flows and Treatment Systems

     An inventory of existing wastewater treatment systems should be pro-
vided, including services, treatment plants, effluent disposal or reuse
methods,  sludge disposal methods, and flow and waste reduction measures
currently being used, if any.

     The  discussion of flows should include average and peak wastewater
flows, wastewater characteristics and wasteloads at key points in the
system, dry and wet-weather flows, combined sewer overflows, and the
location  of bypasses.  Available data on  industrial and commercial flows
should be summarized.

4.2.4  Infiltration and Inflow

     The  construction grants regulation  (Appendix B) provides that the
State may certify that excessive infiltration/inflow does not exist.
The  certification may be  based on studies or other  information available
on the sewer  system before facility planning  begins, or gathered  in the
course of the facility  planning  process.

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         When the certification cannot be made because information is inade-
    quate, an infiltration/inflow analysis should be conducted in accordance
    with EPA "Guidance for Sewer System Evaluation" (reference t).
    The purpose of the analysis is to estimate infiltration/inflow
    into the system; to approximate, on a preliminary basis, the costs
    of treating the infiltration/inflow versus the costs of rehabilitating
    the sewer system to eliminate the problem; and finally, to determine
    if the infiltration/inflow is excessive, as defined in reference t.

         If the infiltration/inflow analysis demonstrates the existence
    or possible existence of excessive infiltration/inflow, a sewer
    system evaluation survey should be conducted, in accordance with
    reference t,   to analyze the problems in more detail and determine
    needed corrective actions and their costs.

    4.2.5  Performance of Existing System

         The performance of existing wastewater treatment facilities
    should be evaluated to determine their operational efficiency.  The
    evaluation  should compare existing performance with optimum perform-
    ance obtainable  in terms of effluent quality  and treatment capacity.
    The effect  of the following factors on performance should be  considered.

         a.   Adequacy of plan design.

          b.   Quality of operation  and control.

          c.   Caliber and  number  of operating personnel.

          d.   Adequacy of  sampling  and testing program.

          e.   Adequacy  of  laboratory facilities,  and

          f.    Quality of maintenance program.

4.3  Step 3:   Assess Future  Situation

     4.3.1   Planning Period

          The planning period is  the time span over which wastewater
     management  needs are forecast,  facilities are planned to meet such
     needs, and  costs are amortized.  The facility planning period should
     extend 20 years beyond the date when the planned facility is scheduled
     to begin operation.   The most cost-effective plan may provide for
     phasing construction of operable parts of the facility to meet
     changing conditions  over the planning period.

          Phased construction of treatment plants, in particular, will often
     be the most cost-effective approach.   Consideration should be given
     to initial  construction of a plant with a capacity to handle the waste-
     water flows projected for only a part of the 20 years planning
     period.  The plan should provide in this case for adding more capacity
     later to treat the remaining increase in wastewater flows projected
     for the rest of the planning period.

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                            8

     Wastewater flows may be projected for years beyond the 20 year
planning period when determining the riost cost-effective design for
interceptor sewers.  Design flows must be fully justified in the
facility plan.

4.3.2  Land Use

     The facility plan should be carefully coordinated with applicable
State, local and regional land-use management regulations, policies
and plans.  Projected land-use patterns and densities should be used
as one basis for determining the optimum capacity and location of
facilities.

     Where land use plans have not been prepared for all or part of
the planning area, an estimate of future land use patterns and densi-
ties should be prepared in consultation with existing planning agencies,
zoning commissions and public officials.

     Careful consideration should be given before providing sewerage
for areas subject to flood hazards.  The facility plan should be com-
patible with State and local programs for flood plain management.

4.3.3  Demographic and Economic Projections

     Projections of economic and population growth should be used as
one basis for estimating future wasteloads and flows.

     For SMSAs, economic^and population projections should follow the
work of the Bureau of Economic Analysis incorporating the "Series E"
projections of the Census Bureau.  Reasons for departures should be
fully documented.

     Projections of economic and population growth for non-SMSA
communities may be based on extension of current (I960 or 1965 to
present) growth trends.  Economic projections of industrial employ-
ment may assist with projections of population growth.

     All projections should be consistent with those used for control
of air quality, water resources management, and other environmental
programs unless new information and analysis justify departures.
Reasons for any departures should be documented.

     Projections should be adjusted to reflect constraints on growth
imposed by air quality implementation plans and land-use and develop-
ment controls.

4.3.4  Forecasts of Flow and Wasteloads

     The following factors should be considered when estimating waste-
loads and flows for the future:

     a.   projections of economic and population growth

     b.   an  estimate of non-excessive  infiltration/inflow

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          c.   analysis of pollutant content and flows in the existing system.

          d.   an analysis of the rate, duration, pollutant content and loca-
          tion of combined sewer overflows in the existing system during
          storms of different magnitude.  The analysis should be linked to
          the drainage area tributary to the combined sewer system.  This
          would facilitate forecasting of flow and wasteload increases from
          future changes in the nature and extent of the drainage area.

          e.   projection of future changes in flow and wasteloads from
          industries to be served by the municipality.  This projection should
          take into account reductions in industrial flow and waste which will
          result from Federal, State and local pretreatment requirements and
          from imposition of user and cost recovery charges.

          f.   projection of gains possible from selected measures to reduce
          flow and wastes.

     4.3.5  Future Environment of the Planning Area Without the Project

          The future environmental conditions for the delineated planning
     area under the "no project" alternative should be predicted, covering
     the same areas considered under Section 4.2.2.

4.4  Step 4.  Develop and Evaluate Alternatives

     4.4.1  Baseline:  Optimum Operation of Existing Facilities

          The alternative of optimizing performance of existing facilities
     should be considered first.  The level of treatment attainable with
     optimum performance should serve as a baseline for planning additions
     or modifications to the treatment system,

     4.4.2  Regional Solutions

          The possibility of a regional solution to wastewater treatment
     problems should be explored early in the planning process to reduce
     the number of options requiring detailed consideration to a manageable
     number.  Regional solutions may include interconnection of facilities,
     construction of one or more large facilities to eliminate the need for
     many small facilities and joint management of facilities to improve
     operation and maintenance and reduce costs.  Joint facilities may
     involve interceptors, treatment plants and sludge and effluent disposal
     systems.

          Existing plans which address regional options should be referenced
     and important conclusions summarized in the facility plan.  Further
     analysis of options will not be necessary if regional questions are
     resolved by existing plans.

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                           10
     Where regional questions have not been resolved,  discharge combi-
nations and effluent limitations related to each combination  should  be
estimated by the applicant or the State.  Any simplifying assumptions
needed for such preliminary analyses should be documented. Monetary
costs and environmental impacts should be estimated.
     The analysis of regional solutions should address the following
special considerations:
     a.   effects of interceptor location on land use  within  and
     between urban areas, particularly where land is  undeveloped.
     b.   effects of alternative combinations on stream flows in the
     regions.
     c.   possible limitation on future expansion due  to unavailability
     of land.
     d.   differences in reliability, operation and maintenance of
     facilities.
     e.   environmental and economic costs of delays likely to be
     associated with efforts to achieve a regional solution.
     A map of treatment system configurations should be prepared on
the basis of the above analysis.  It should show the boundaries of
political jurisdictions and service areas for each treatment plant.
4.4.3  Alternative Waste Treatment Systems
     Alternative waste treatment systems for each service area should
be considered in addition to the regional questions outlined above.
     First, the implication of the "no action" plan should be set
forth with respect to potential effects on:
     a.   surface water quality
     b.   groundwater quality   (if applicable)
     c.   land use limitation  if "no action" alternative  is selected
     d.   socio-economic factors (e.g., residential,  industrial
     development and health  hazards).
     Second, the plan  should consider,  where applicable,  the primary
options  for:
     a.   flow and waste reduction
     b.   configuration of  sewers and  interceptors
     c.   treatment and disposal of  effluent
     d.   sludge disposal.

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                           11

Options should be rejected from the outset if they £ajl  to meet physical
constraints of the planning area, such as climate, soils or topography,
or if they are incompatible with air and water quality plans.   These
options should be presented in the plan, however, with a very brief
summary of the reasons for their rejection.

     Alternative waste treatment systems must be considered in accordance
with information included in references o and s.   The following three
alternatives must be considered, as a minimum, to meet the requirements
for best practicable waste treatment technology:

     a.   treatment and discharge of effluent

     b.   treatment and reuse

     c.   land application

     Options for treatment and discharge should,  as appropriate,  take
into account and allow to the extent practicable for the application of
technology at a later date to provide for the reclaiming or recycling
of water or otherwise eliminate the discharge of pollutants.

     Following initial screening of the alternative systems,  a limited
number of the most feasible options should be evaluated in detail.   The
evaluation should follow the guidance on monetary costs in Chapter  6
and on environmental and other considerations in the remainder of this
chapter.

     Proposals should be re-evaluated and compared after refinement and
estimation of monetary costs, environmental effects and  other considera-
tions.   Features should be added where practicable to each alternative
to offset or mitigate adverse environmental impacts.  Each alternative,
including its costs and environmental effects, will then be displayed
to inform the public and solicit public opinions to help select a plan.

4.4.4  Environmental Impacts

     4.4.4.1  General

          Alternatives should be evaluated and screened  for their envir-
     onmental impacts.  Adverse impacts could be a basis for  rejecting an
     option and, thus, reducing the number of alternatives.   C^her impacts
     may require further study and should be identified, to the extent
     possible, early in the planning process.

          The evaluation should assess both beneficial  and adverse  primary
     and secondary environmental impacts.  A definition  and examples of
     each type follows:

     4.4.4.2  Primary Impacts

          Primary impacts are those directly related to  construction and
     operation of the treatment works.  Some examples are:

          a.   Destruction of historical, archaeological,  geological,
          cultural  or recreational  areas during construction.

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                            12

           b.    Destruction of sensitive ecosystems  including wetlands  and
           the habitats of endangered species during construction.

           c.    Damage and pollution of surface waters  due to erosion
           during construction.

           d.    Displacement of households,   businesses or services.

           e.    Noise pollution, air pollution and odor and public  health
           problems associated with construction and operation.

           f.    Direct violation during construction or operation of  Federal,
           State or local  environmental and  land-use statutes, or regu-
           lations and plans imposed by such statutes and regulations.

      4.4.4.3  Secondary Impacts

           Secondary impacts of a project are (1) indirect or induced  changes
      in the patterns of land-use and population growth, and (2)  other envi-
      ronmental effects resulting from changes in land  use and population
      growth.

           Examples of secondary impacts are:

           a.    changes in the rate, density, or type of development,  in-
           cluding residential, commercial,  industrial  development, or
           changes in the use of open space  or other categories of  land.

           b.    air, water, noise, solid waste or pesticide pollution
           stemming from the induced changes in population and land use.

           c.    damage to sensitive ecosystems (wetlands, habitats  of endan-
           gered species) and environmentally protected areas (parks,  his-
           toric sites) resulting from changes in population and land use.

           Primary attention in the environmental assessment should be
      given to determining if secondary impacts will possibly contravene
      environmental and land use statutes or regulations, or standards,
      limitations and plans imposed by such  statutes and regulations.
      Relevant Federal, State and local environmental and land use  statutes
      and regulations should be considered.

4.4.5  Additional Guidance on Evaluation of  Alternatives

      4.4.5.1   Institutional Arrangements

           Evaluation of alternatives should include a  comparison of
      existing institutional arrangements and authorities with those
      necessary to implement each option.  The organization to be
      responsible for management of the waste treatment facilities  also
      should be identified with each option.  Further,  the costs to
      each jurisdiction for construction, operation  and maintenance
      of the facilities should be estimated.  These  matters, as well  as
      the total costs and effects of each proposal,  should be discussed
      with representatives of local government units, and the views of
      other interested parties solicited during public  review*

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                     13

4.4.5.2  Industrial Service

     Industrial use of municipal  facilities should be encouraged
when environmental and monetary costs would be minimized.   Costs
of separate treatment of industrial  waste should be compared with
costs of pretreatment plus the cost to the municipality
for joint treatment, when industrial flow to be handled
by municipal systems is significant.  Pretreatment is required
in accordance with Federal pretreatment standards (reference g)
and any existing State and local  standards.  The analysis  should
focus on those industries which desire municipal service but are
not yet so served when facility planning is initiated.

4.4.5.3  Flow and Waste Reduction

     Some types of flow and waste reduction measures are listed
below:

     a.   measures for reducing sewer system infiltration/inflow

     b.   household water-saving devices

     c.   water meters

     d.   land use and development  regulations

     e.   industrial reuse and recycling

     f.   on-site (private) facilities  such as  septic  tanks

     Procedures  for  determining  the cost  effectiveness of measures
 for reducing  infiltration/inflow are found  in  EPA  "Guidance  for
 Sewer  System  Evaluation"  (reference t).   The cost-effectiveness
 of water  conservation  measures can  be determined  by  comparing  the
 cost with resultant  savings for  both waste  treatment and water
 supply.

 4.4.5.4   Sewers

     Alternative arrangements of interceptors  and  trunk lines
 should be compared to  determine  the most  cost-effective configu-
 ration.   Sewers  in developing areas should  be  planned on the basis
 of anticipated changes in land use  and density.

     Analysis should be made, whenever possible,  of  the residential,
 commercial  and industrial  land use  changes  that a  centralized  project
 will  induce.

      The  sizes of interceptors should be based on  cost-effective
 analysis  of alternative pipe  sizes.  The analysis  should  reflect the
 expected  useful  life of the  pipe,  all  costs related  to future  pipe
 installation, and induced growth effects  of initial  provision  of
 substantial excess capacity.

 4.4.5.5   Sludge  Disposal

      Environmentally acceptable  methods of sludge  utilization  and
 disposal  include stabilization and  subsequent  land application  for

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                      14

agriculture, enhancement of parks and forests, reclamation of
poor or damaged terrain, sanitary land fill, or sludge incinera-
tion and disposal of resulting ash.   Ocean disposal  may be allowed
under special circumstances (subject to reference k).

4.4.5.6  Location of Facilities

     Evaluation and choice of sites  for treatment plants, inter-
ceptors, transmission lines, outfalls, pumping stations, and
other major works should take into account the factors cited
below and discussed further in references p, q, and  y.

     a.   minimize odors and locate  away from residential areas
     which would be affected by odors

     b.   minimize aesthetic problems by design and  landscaping

     c.   locate outfalls where they will not affect public water
     supply, shell fishing beds, and  contact recreational waters.
     Where alternative sites are unavailable, special  precautions
     must be taken in accordance with references p and y.

     d.   locate treatment plants and other facilities in general
     outside of flgodplains.  Where  such locations are
     not practicable or would lead to excessive costs, the plant
     and equipment will be protected against flooding as described
     in reference p.

4.4.5.7  Revision of Wasteload Allocation

     Wasteload allocations are the basis for determining effluent
limitations to be achieved by a treatment plant.  They are
normally prepared as part of the State basin planning process and
are reflected in the discharge permit.  Facility planning may
result in a change in the discharge  locations and the wasteload
distribution among the locations.  The wasteload allocation, in
this case, should be reviewed by the State or EPA and modified
to reflect the configuration of discharges in the proposed plan.

4.4.5.8  Phased Construction

     Adding capacity in phases during a planning period will.be
more cost-effective in some cases than providing sufficient capa-
city in initial construction for the entire planning period.  A
method for cost analysis of phased development is discussed in
Chapter 6.  Factors to be considered are:

     a.   relative cost of providing excess capacity initially
     compared with the present worth of deferred costs for pro-
     viding capacity when needed.

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                              15

              b.   uncertainties of projected long-term wastewater flows,
              and possible technological advances or flow and vwiste reduc-
              tion measures which may limit need for excess capacity.

              Modular development of operable components of a treatment
          plant  is advisable in areas where high growth rates are projected,
          where  treatment must become more stringent later in the planning
          period, or where existing facilities are to be used initially but
          phased out later.

          4.4.5.9  Flexibility

              Facility  planning should  consider providing sufficient land
          and  choosing layouts and siting to allow for expansion of the plant
          to handle unforeseen increases in wastewater flows and required
          treatment levels.

              Interceptors  and collection systems may be planned to meet
          unforeseen expansions of the service area.  Consideration should
          be given, for  example, to obtaining extra  sewer rights-of-way for
          staged parallel  pipes and pipe extensions  and temporary treatment
          plants.

          4.4.5.10  Reliability

               Emphasis  on reliability  should  focus  on the most  critical
          processes  in accordance  with  the  requirements  in reference  p.

4.5  Step 5.   Select  Plan

     4.5.1  Selection Process

          The public  should be provided with alternative proposals,  and  a
     public meeting or hearing held to explain each proposal  and obtain  the
     views of all concerned (see Chapter 5).  The opinions  expressed  should be
     weighed with estimated environmental effects,  monetary costs,  feasibility,
     resources  and energy use, and reliability.   The alternative proposals
     should be  ranked on the basis of these considerations  and a plan selected.
     Additional  guidance on selection of a plan is provided  in Chapter 8.

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                               16

     4.5.2  Environmental  Impacts of the Selected Plan

          The primary and  secondary impacts of the selected plan  should  be
     summarized.   Special  attention should be given in  the summary to  the
     following:

          a.   Any unavoidable adverse impacts resulting from the project.

          b.   Relationship between local  short term uses of the  environment
          and the maintenance and enhancement of long-term productivity.  This
          should  include a description of the extent to which the action
          involves tradeoffs between short term environmental gains at the
          expense of long  term gains or vice-versa, and the extent to  which
          the proposed action forecloses future options.  Special
          attention should be given to effects which narrow the range
          of future uses of land and water resources or pose long-term
          risks to health  or safety.

          c.   Irreversible and irretrievable commitments of resources.
          An evaluation should be made of the extent to which the
          proposed action  requires commitment of construction materials,
          man-hours, energy and other resources, and curtails the range
          of future uses of land and water resources.

          d.   Steps to minimize adverse effects.  Structural and
          nonstructural measures, if any, should be described to
          mitigate or eliminate significant adverse effects on the
          human and natural environments.

4.6  Step 6:  Preliminary Design of Treatment Works

     Preliminary engineering designs will be prepared in accordance with
references p, q,  and y for those treatment works proposed for initial
construction and scheduled for preparation of drawings  and specifica-
tions.  Such information would include, as appropriate, a schematic
flow diagram, unit processes, plant site plans, sewer pipe plans  and
profiles, and design data regarding detention times, flow rates,  sizing
of units and so forth.  It would also include a summary of requirements
for operation and maintenance of the treatment works.  Cost estimates
for final design, preparation of plans and specifications, and
construction of the treatment works, together with a schedule for
completion of all such work, should be presented.

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                                    17

      4.7  Step 7:   Arrangements for Implementation

           Following selection of plan and design,  existing institutional  arrange-
      ments should be reviewed and a financial  program developed,  including
      preliminary allocation of the costs among various classes of users  of  the
      system (see Appendix B).  Agreement should be reached among  participating
      entities on arrangements for implementing the plan.   The State and  Regional
      Administrator may approve the plan, however,  even in the absence of final
      agreement on such arrangements.

            A preliminary plan .of operation should be prepared to  provide for
      staffing, management, training, sampling and analysis for effective operation
      and maintenance of the facility.

5.    PUBLIC PARTICIPATION

      5.1  Introduction

           Minimum requirements for the public role in facility planning  are
      described in the Construction Grants regulation  (Appendix B) and the regu-
      lation entitled "Public Participation in Water Pollution Control" (refer-
      ence f).  The public should participate from the beginning in facility
      planning so that interests and potential conflicts may be identified early
      and considered as planning proceeds.

      5.2  Relationships between Planner and Public

           The planner should define  issues and analyze information so that the
      public will clearly  understand  the costs and benefits of alternatives
      considered during the  planning  process.  He  also should ensure that the
      interests  of  a  broad spectrum of the public  are  represented  in the
      planning  process.

            The public can  be involved through  a variety of means,  including the
      following:

            -advisory  groups          -public  hearings        -news media
            -information  contacts    -task  forces            -speeches
            -correspondence          -workshops             -seminars
            -interviews              -exhibitions            -depositions
            -liaison with  citizen    -mailings               -surveys
               groups
            -public  meetings          -newsletters            -polls

      5.3   Requirement for Public  Hearings

           A  public hearing  must be held on  the facility  plan  unless  EPA  has
      waived  the  requirement in advance  (see section  35.917-5  of Appendix B).
      The  location  of the  hearing  should be  easily accessible  and  facilitate
      attendance and  testimony  by  a cross-section  of  interested or affected
      organizations and  interests.   Notice will generally be  given at  least

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                                18


      thirty calendar days before the hearing is to be held to obtain formal
      comments of all concerned interests on the alternative proposals.   It
      is suggested that the notice include mention of where information  on
      the facility plan may be obtained before the hearing.

      5.4    Summary of Public Participation

             A report summarizing public participation should be prepared and
      submitted as part of the facility plan.  It should as a minimum contain
      a brief description of the views expressed at any public hearings  held
      on the project.  It also may describe other measures taken to provide
      for, encourage concerned interests; and the disposition of the issues
      raised.

6.    EVALUATION OF COSTS

      6.1    Introduction

             Appendix A to the construction grants regulation (see Appendix B in
      this guidance) describes basic methodology for calculation of direct mone-
      tary costs.  This chapter provides supplemental guidance for applying this
      methodology in practice.

      6.2    Sunk Costs

             Appendix A to the construction grants regulation provides comprehensive
      instructions for cost evaluation, except with respect to sunk costs.  Any
      investments or commitments made prior to our concurrent with facility
      planning will be regarded as sunk costs and not included as monetary costs
      in the plan.  Such investments and commitments include:

             a.  investments in existing wastewater treatment facilities and
             associated lands even though incorporated in the plan.

             b.  outstanding bond indebtness.

             c.  cost of preparing the facility plan.

      6.3    Present Worth and Equivalent Annual Costs

             The following examples show how to calculate present worth  and equiva-
      lent annual costs for a project.  Present worth may be thought of  as the
      sum, which if invested now at a given rate, would provide exactly  the funds
      required to make all necessary expenditures during the life of the project.
      Equivalent annual cost is the expression of a non-uniform series of expen-
      ditures as a uniform annual amount to simplify calculation of present worth.
      Detailed procedures for making these calculations are well known and ex-
      plained in such books as Principles of Engineering Economy by Eugene L.

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                               19

Grant and W. Grant Ireson (reference aa), and Economics of Water Resource
Planning by L. Douglas James and Robert Lee (reference bbj.

     The three cases described below include:  (1) a simplistic one,  assuming
constant 0 & M costs; (2) a case with varying 0 & M costs; and (3)  a  third
case assuming varying 0 & M, phased construction and a positive salvage value.
Note that the second and third cases actually compare two alternatives for
treating a given community's waste.

     In order to perform the following analysis, you will need a table of
7.0 percent compound interest factors and a table of factors to compute
the present worth of a gradient series.  These tables may usually be  found
in an engineering economics textbook.

     The interest rate of 7.0 percent is used for these examples only.  The
actual interest rate which must be used for evaluating costs in a facility
plan is published annually by the United States Water Resources Council
(see reference 1).

6.4  Example  1:  Constant 0 & M Costs

     GIVEN:

         sewage treatment plant #1
         capacity: 10 mgd
         average flow through plant:  9 mgd
         planning period:  20 years
         salvage value at the end of 20 years:  $0
         initial cost of plant:  $3 million
         average annual operation and maintenance cost:   $190,000
         interest rate:  7.0 percent

     DETERMINE:  Present worth and equivalent annual cost of this plant
                 over 20 years.

     METHOD:  Present worth equals initial cost plus the  present worth of
                 the operating and maintenance costs.  Equivalent annual
                 costs equals the present worth times  the appropriate
                 capital recovery factor.

     Step  1

         Initial cost =                           $3,000,000

     Step  2

         Present worth of annual 0 & M cost  equals  annual  0 &  M costs  times
         the  uniform series present worth  factor  @  7.0%  for 20 years.  Thus:

         $190,000  (10.594)  =                      $2.013,000

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                                20

     Step 3

         Sum of numbers obtained in the above steps yields present worth

         initial cost =                           $3,000,000
         present worth of 0 & M cost =            $2,013,000
         present worth =                          $5,013,000

     Step 4

         To find equivalent annual cost, multiply present worth obtained
         above times the capital recovery factors @ 7.0% for 20 years.  Thus:

         $5,013,000 (.09439) =                    $  474,000

         is the average annual equivalent cost of the plant over 20 years.

6.5  Example 2:  Varying 0 & H Costs

     GIVEN:

         sewage treatment plant #2
         capacity:  10 mgd
         average flow through plant:  increase linearly from 2 mgd to
            10 mgd over 20 years
         planning period:  20 years
         salvage value at end of 20 years:  $0
         initial cost of plant:  $3,000,000
         constant annual operation and maintenance cost:  $126,000
         variable annual operation and maintenance cost:  increases
            linearly from $0 to $68,000 in year 20
         interest rate:  7.0 percent

     DETERMINE:  Present worth and average annual equivalent cost of this
                 plant over 20 years.

     METHOD:  Present worth equals the sum of initial cost, present worth
                 of constant 0 & M cost, and the present worth of the
                 gradient series of the variable 0 & M cost.  Equivalent
                 annual cost is derived as in the first case.

     Step 1

         Initial cost =                           $3,000,000

     Step 2

         To find the present worth of operating costs, it will be necessary
         to calculate the present worths of the constant costs and the
         variable costs separately.

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                               21

         a.   Present worth of constant annual costs equals that sost times
         the uniform series present worth factor @ 7.0% for 20 years.   Thus:

         $126,000 (10.594) =                     $1.335,000

         b.   Present worth of a variable cost increasing linearly is found
         by first finding the amount of increase per year.  This amount is
         $68,000/20 years or $3,400 per year.  This increase is known as a
         gradient series.  This series times the correct gradient series
         present worth factor @ 7.0% for 20 years yields the present worth
         of the variable cost.  Thus:

         $3,400 (77.5091) =                      $  264,000

     Step 3

         Sum of numbers obtained in the steps above yields present worth:

         initial cost =                          $3,000,000
         present worth of constant 0 & M costs   $1,335,000
         present worth of variable 0 & M costs   $  264,000
         present worth =                         $4,599,000

     Step 4

         As before, the present worth just derived times the capital recovery
         factor @ 7.0% for 20 years will yield the average annual equivalent
         cost.  Thus:

         $4,599,000 (.09439) =                   $  434,100

         which is the average annual equivalent cost of the plant for 20
         years.

6.6  Example 3:  Varying 0 & M Costs, Phased Construction, and Salvage Value

     GIVEN:

         sewage treatment plant #3
         capacity:  years 1-10, 5 mgd; years 11-20, 10 mgd
         average flow through plant:  increases linearly from 2 mgd to 10
            mgd over 20 years
         planning period:  20 years
         salvage value at the end of 20 years:  $750,000
         initial cost of plant (5 mgd):  $2,000,000
         cost to upgrade at year 10 to 10 mgd:  $1,500,000
         operation and maintenance costs:

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                             22

     a.   constant annual  0 & M cost,  years 1-10:    $84,000

     b.   variable annual  0 & M cost,  years 1-10:   increases  linearly
     from 0 - $29,000 in year 10

     c.   constant annual  0 & M cost,  years 11-20:   $165,000

     d.   variable annual  0 & M cost,  years 11-20:   increases linearly
     from 0 to $29,000 in year 20

interest rate:  7.0 percent

  DETERMINE:   Present worth and annual equivalent  cost of this plant
              over 20 years,

  METHOD:  Present worth is derived as in the previous example;  however,
              this time calculate 0 &  M costs from year  1 to  10 and 0 & M
              costs from year 11-20 separately.   It is necessary also to
              add the present worth of the expansion and subtract the
              present worth of the salvage value from the present worth
              of the costs.  Average annual equivalent costs  are
              calculated as before.

  Step 1

      Initial cost =                           $2,000,000

  Step 2

      Calculate the present worth of the 0AM costs as  follows:

      a.  Present worth of constant annual cost years 1-1,0 equals given
      cost times uniform series present worth factors @  7,02  for 10
      years.   Thus:

      $84,000 (7.024) =                       $   590,000

      b.  Present worth of the variable 0 & M costs years 1-10 equals
      the gradient series ($2900) times the present worth factor of a
      gradient series @ 7.0% for 10 years.  Thus:

      $2,900 (27.7156) =                      $    80,400

      c.   The present worth of the constant 0 & M costs year 11-20
      are first calculated as in (a) above using the given cost for
      years 11-20.  This, however, yields present, worth  in year 11 which
      must be converted to present worth in year 1.  This is  accomplished
      by multiplying the present worth (year 11) times the single payment
      present worth factor @ 7.Q% for  10 years (.5083).   Thus, present
      worth in year 1 equals:

      $165,000 (7.024)(.5083) =                $  589,100

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                          23

    d.   The present worth of the variable  0 & M costs years  11-20
    are first calculated as in (b)  above using the  gradient  series  for
    years 11-20 which is $2900.   This yields the present  worth  in year
    11  which again must be converted to present worth  in  year 1  by
    multiplying the present worth (year 11) times the  single payment
    present worth factor $ 7.03$ for 10 years (.5083).   Thus:

    $2,000 (27.7156)(.5083) =                $  40.900

Step 3

    To  determine the present worth of the upgrade cost which occurs
    at  year 10, multiply the upgrade cost times the single payment
    present worth factors @ 7.0% for 10 years.  Thus:

    $1,500,000 (.5083) =                     $  763.000

Step 4

    The present worth of the salvage value at the end of 20 years
    equals that value times the  single  payment present worth factor
    e 7.03 for 20 years.  Thus:

    $750,000  (.2584) =                        $   194,000

Step 5

    The sums  of the  values  obtained  in  Steps  1,  2, and 3 minus the
    value obtained  in Step  4 will  equal the present worth of the
    plan.  Thus:

    initial  cost =                           $2,000,000
    present  worth of constant 0 &  M year
       j-10                                      590,000
    present  worth of variable 0 &  M year
       1-10 =                                $   80,400
    present  worth of constant 0 &  M year
       11-20  =                               $  589,100
    present  worth of variable 0 &  M year
       11-20  =                                   40,900
    present  worth of upgrade at year 10 =   $  763,000

                          TOTAL               $4,06'3,400

    Subtract from the  total the present worth of salvage value

    present  worth of salvage value «      - $  194,000
    present  worth of plant =        .        $3,869,400

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                                     24

          Step 6

              As before, the present worth just derived times the capital
              recovery factor @ 7.0% for 20 years will  yield the average
              annual  equivalent cost.  Thus:

              $3,869,400 (.09439) =                    $  365.200

              which is the average annual equivalent cost of the plant over
              20 years.


7.   ENVIRONMENTAL EVALUATION

     7.1   Purpose

          This part summarizes the requirements for evaluation of environmental
     impacts in the facility planning process and describes the reasons for
     these requirements.

          The environmental evaluation serves two purposes:

          a.   to provide comparative data to assist selection of the best
          alternative plan.

          b.   to meet the requirements for an environmental assessment in the
          regulation published by EPA, "Preparation of Environmental Impact
          Statements"  (reference a).

     7.2  Facility Planning and the  Environmental Assessment

          The facility plan should contain sufficient  information to meet the
     requirements fo/ah environmental assessment in reference a.  Environmental
     considerations should be addressed during each step of the facility planning
     process.  A separate section of the plan, however, should summarize environ-
     mental considerations.

     7.3  Environmental Impact Statements

          The Regional Administrator may determine while the facility plan is
     in preparation or after  it  is  completed and submitted to EPA for approval
     that the project  is highly controversial or may have  significant adverse
     environmental effects.   EPA will  prepare an environmental  impact statement
     in these cases in accordance with the  regulation,  "Preparation of  Environ-
     mental Impact Statements" (reference a).  The applicant may be asked to
     provide supplemental  information  on the project to assist with preparation
     of the Environmental  Impact Statement.

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                                    25

     7.4  Environmental Considerations

          The facility plan should contain a summary of environmental
     considerations.  The summary should include references to other portions
     of the plan where these considerations are discussed in more detail.

          The following are the major topics to be discussed in the summary:

          a.   Description of the existing environment without the project
          (see Section 4.2.2 in this Guidance).

          b.   Description of the future environment without the project
          (see Section 4.3.5).

          c.   Evaluation of alternatives (see Section 4.4.4).

          d.   Environmental impacts of the proposed action, including steps
          to minimize adverse effects (see Section 4.5.2).


8.   PLAN SELECTION

     8.1  Introduction

          This chapter discusses the principal considerations for selecting
     a plan.  It assumes that each of the alternatives being compared  would,
     if implemented, result in compliance with all the applicable regulatory
     requirements (i.e., effluent limitations, load allocations, compliance
     schedules, and so forth).

     8.2  Comparison and Ranking of Proposals

          Plan selection will involve making choices among alternatives based
     on a display of the significant costs, effects and benefits of each.
     Common units are lacking for measuring environmental, social, economic
     and other costs, and therefore selection of the most cost-effective
     alternative requires careful judgment.

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                               26

     Figure 1  provides an example of how costs and effects may be dis-
played.  The effects should be listed, wherever possible,  in quantitative
terms, and be based on the supporting analysis elsewhere in the plan.
Where quantification is not possible, the comparison should be made by
brief narrative description.

     The alternatives may be ranked after they are displayed to aid final
selection of a plan.

     The following are suggestions on the ranking procedure:

     a.   Environmental effects:   All significant primary and secondary
     effects should be weighed to derive a value judgment as to the net
     overall effect of each alternative relative to other plans.   Alter-
     natives which have secondary effects with a high potential for con-
     travening an environmental or land-use statute or regulation, or
     plan imposed by such statute or regulation should be ranked below
     those which do not.

     b.   Monetary costs:  Total  costs should be the primary factor in
     determining the cost-effectiveness of the plan.

     c.   Implementation capability:  The ability of and agreement among
     the State, regional and local governmental units or management
     agencies to implement the alternatives should be weighed carefully.
     The necessary institutions must exist or be created in time to carry
     out the plan, and the local  governmental unit must be capable of
     bearing the local share of the costs.

     d.   Other considerations:  Each plan must meet applicable regulatory
     requirements, and design and reliability criteria.  Performance
     better than these minimal standards should not be taken into account
     when selecting an alternative unless environmental and monetary costs
     and benefits, and the feasibility of implementing the alternatives
     are roughly equal.  Other considerations, in other words, may be  used
     to break ties.

          These other considerations include the contribution to water
     quality objectives beyond regulatory requirements, reliability,
     use of resources and energy, and public acceptability.

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                                      27

                                  Figure  1

                 COSTS AND BENEFITS  OF ALTERNATIVE PROPOSALS

                                                       PROPOSALS
1.    Environmental  Effects

     a.   Primary
     b.   Secondary

2.    Monetary Costs

     a.   Capital costs

         1.  public
         2.  total

     b.   0 & M costs

         1.  public
         2.  total

     c.   Net revenue  (public)
     d.   Average annual costs

         1.  public
         2.  total

3.   Implementation Capability

     a.   Institutional
     b.   Financial
     c.   Legal

4.   Other considerations

     a.  Contributions  to Water Quality
         Objectives and Other Water Management Goals

     b.  Energy and Resources Use

         1.  Energy (power)
         2.  Chemicals
         3.  Land  commitment for planned features

     c.  Reliability

         1.  Frequency  of plant upsets
         2.  Frequency  of spills
         3.  Frequency  of effects  of  combined
             sewer overflows

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                                    28
9.    FORMAT FOR SUBMISSION OF PLAN
     9.1   Outline of Plan
          The following outline for the plan is suggested.  It meets the require-
     ments of the Construction Grants regulation (Appendix B) and follows the
     planning steps presented in this guidance.  Items inapplicable to a
     specific case may be deleted.
     1.   SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
     2.   INTRODUCTION
          2.1  Study Purpose and Scope
          2.2  Planning Area (Map)
     3.   EFFLUENT LIMITATIONS (Section 4.1)
     4.   CURRENT SITUATION (Section 4.2)
          4.1  Conditions in Planning Area
               4.1.1  Planning area description
               4.1.2  Organizational context
               4.1.3  Demographic and land-use data
               4.1.4  Water quality and uses
               4.1.5  Other environmental conditions
          4.2  Existing Wastewater Flows and Treatment Systems
          4.3  Infiltration and Inflow
          4.4  Performance of Existing System
     5.   FUTURE SITUATION (Section 4.3)
          5.1  Land Use
          5.2  Demographic and Economic Projections
          5.3  Forecast of Flow and Waste Load
          5.4  Future Environment of the Planning Area Without the Project
     6.   ALTERNATIVES (Section 4.4)
          6.1  Optimum Operation of Existing Facilities
          6.2  Regional Solutions
          6.3  Waste Treatment Systems
          6.4  Evaluation (monetary, environmental, implementation)
     7.   PLAN SELECTION  (Section 4.5)
          7.1  Views of Public and Concerned Interests on Alternatives
          7.2  Evaluation and Ranking of Proposals
          7.3  Selected Plan  (major feature summary) and Reasons for Selection
          7.4  Environmental  Impacts of Selected Plan

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                                29

 8.    COST ESTIMATES, PRELIMINARY DESIGNS (Section 4.6)

      8.1   Description of Design, with Maps
      8.2  Summary of Cost Estimates

 9.    ARRANGEMENTS FOR IMPLEMENTATION (Section 4.7)

      9.1   Institutional  Responsibilities
      9.2  Implementation Steps
      9.3  Operation and Maintenance
      9.4  Financial Requirements

10.    SUMMARY OF ENVIRONMENTAL CONSIDERATIONS (Section 7)

      10.1  Existing Environmental Conditions
      10.2  Future Environment Without the Project
      10.3  Evaluation of Alternatives
      10.4  Environmental Effects of Selected Plan

 9.2  Appendices

      The following information, cross-referenced in the text of the
 plan, may be placed in appendices:

      a.    Preliminary designs, technical data and cost estimates for
      alternatives.

      b.    Agreements, resolutions and comments.

      c.    Supplemental engineering feasibility data on the details  of
      the adopted plan.

      d.    Infiltration/inflow analyses.

      e.    Sewer evaluation surveys.

      f.    Copy of the permit for the facility.

      For a simple planning situation, the information included in items
 (a) and (c) may be incorporated in the main report.

      The technical appendices (item c above) should include, but not
 necessarily be limited to:

      a.    description of the configuration of collector and interceptor
      systems, profiles, sizes and cost breakdowns.

      b.    treatment plant data, including site plan, layouts of unit
      processes, flow charts, 'design and performance data.

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10.    REVIEW, CERTIFICATION AND APPROVAL OF PLANS

     10.1   Purpose

          This chapter describes the administrative  procedures  and  requirements
     for submission of a facility plan (and revisions  thereof)  to State  receiving
     agencies and to EPA.   It also describes the actions  States and EPA  take  on
     the plan.

     10.2  Three Levels of Review

          The three levels of review of a facility plan are as  follows:

          a.    review by a clearinghouse of interested agencies at  the local
          level  as required by Circular A-95,  "Federal and  Federally Assisted
          Programs and Projects", of the Federal  Office of  Management and
          Budget (reference z).

          b.    review by the State for compliance with State requirements,  and
          Federal  statutory and regulatory requirements.

          c.    review by EPA for compliance with Federal  requirements.

     10.3  Compliance with OMB Circular A-95

          EPA will not conduct a final  review of an  application for a grant to
     conduct  facility planning or completed facility plans  for  approval  unless
     the agency submitting the grant application or  plan  to the State and EPA
     has first complied with all applicable requirements  of OMB Circular A-95
     (reference z).

     10.4  Submission to State

          The agency desiring review and approval  of a facility plan shall
     submit the following  documents to the State Water Pollution Control
     Authority or its equivalent:

          a.    Four (4) copies of the facility plan

          b.    Two (2) copies of all  relevant documents required by OMB
          Circular A-95

          c.    One (1) original and one (1) copy of  a  letter from the chief
          official of the  agency preparing the plan.   The letter should  request
          review and approval  and state:

               1.    that the agency has met all  requirements for public
               participation relating to the plan;

               2.    the names of all  jurisdictions within the planning area
               which either oppose the plan or have  failed  to approve the plan.

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                                31

10.5  Submission to EPA

     EPA will review for approval only those facility plans which have
received State approval and are properly submitted to the appropriate
regional office by the chief official of the State Water Pollution Control
Authority having jurisdiction over the planning area.  The following docu-
ments should be submitted to EPA by the State:

     a.   a letter signed by the chief official of the State Water Pollu-
     tion Control Authority requesting review and approval, and certifying
     that:

          1.   the plan conforms with the requirements of the construction,
          grants regulation (Appendix B)

          2.   the plan conforms with the applicable basin plan prepared
          or being prepared in accordance with reference i.

          3.   the concerned areawide planning agency, if any, has been
          afforded the opportunity to comment on the plan, and the plan
          conforms with any completed areawide plan which has been approved
          in accordance with the requirements of section 208 of FWPCA.

     b.   Two  (2) copies of the  plan

     c.   One  (1) copy of the letter from the  local  agency to the State
     required  under paragraph 10.4 above.

10.6  Revisions  to Plans

     Facility  plan should be reviewed regularly and  brought up to date
as  required  by changing conditions.  As  a minimum, a facility  plan which
has served as  the basis for award of a  Step 2  or  3 grant shall be reviewed
by  the  State prior to  application for any subsequent Step  2 or 3 grant to
determine if substantial changes have occurred which warrant revision or
amendment of the plan.  The plan should  then be revised  or  amended as
necessary.

     Revisions to the  plan  should be accompanied  by  a  statement  on  the
status  of implementation of the  plan as  of  the date  of the  revision.  The
appropriate  EPA  Regional Administrator,  A-95 Clearinghouse, and  State
should  be notified at  least 30  days  in  advance of initiating a modification
to  a plan.   Processing of  revised plans  will follow  the procedures  as
outlined above.

10.7   EPA Review

     The  review  by  EPA will ascertain  that  the requirements of FWPCA and
applicable  amendments  are  met,  including specific determination  that:

     a.  the  plan  is  consistent with  existing State and NPDES permits.

-------
                                32

     b.    the plan is consistent with the requirements  of the  applicable
     final  plan prepared under reference i,  "Preparation of Water
     Quality Management Basin Plans."

     c.    the plan is consistent with any completed  areawide plan approved
     in  accordance with section 208 of FWPCA.

     d.    all requirements for public participation  have been  met.

     e.    the plan will provide for secondary  treatment, as a  minimum,  as
     well  as appropriate application of Best Practicable Waste Treatment
     Technology in accordance with technical criteria established by  EPA,
     or  for more stringent treatment levels  required to meet water quality
     standards.

     f.    the plan is cost-effective and environmentally sound.

     g.    excessive infiltration/inflow does not exist, or that a detailed
     sewer evaluation survey and necessary sewer rehabilitation measures
     will  be accomplished in accordance with the Construction  Grants  regu-
     lation (Appendix B).

     h.    implementation of the plan is institutionally feasible within
     the time period proposed.

     i.    the plan is compatible with facility plans and completed and
     approved areawide plans developed for contiguous areas of other  States.

     j.    the plan includes an  adequate environmental  assessment.

     k.    the treatment works will comply with applicable requirements  of
     the Clean Air Act and other applicable environmental laws and
     regulations.

10.8  EPA Approval

     The EPA Regional Administrator has authority to approve any facility
plan submitted to him by a State within his region.

     After review of a properly submitted plan or amendment and compliance
with the requirements of the National Environmental  Policy Act (see
reference a), the EPA Regional Administrator will notify the chief official
of the appropriate State Water Pollution Control Authority of  his concurrence
and approval, or the EPA regional office will  work closely with the State to
provide advice to the municipality on how the  plan may be improved so that
approval will be possible.

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APPENDIX A - REFERENCES

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                          APPENDIX A - REFERENCES
A.I  FEDERAL REGULATIONS
     a.   40 CFR Part 6, "Preparation of Environmental  Impact  Statements,"
     Federal Register. Vol. 40, No. 72, April  14, 1975,  pp.  16811-16827

     b.   40 CFR Part 35, Subpart B, "State and Local  Assistance",  Federal
     Register. Vol. 38, No. 125, June 29, 1973, pp.  17219-27225

     c.   40 CFR Part 35, Subpart E, "Grants for Construction  of Treatment
     Works—Federal Water Pollution Control Act Amendments of  1972",  Federal
     Register, Vol. 39, No. 29, February 11, 1974, pp.  5252-5270

     d.   40 CFR Part 35, Subpart E, Appendix A "Cost Effectiveness Analysis
     Guidelines", Federal Register, Vol. 38, No. 174, September  TO, 1973, pp.
     24639-24640

     e.   40 CFR Part 35, Subpart E, Appendix B "User Charges  and Industrial
     Cost Recovery", Federal Register, Vol. 38, No.  161, August  21, 1973, pp
     22524-22527

     f.   40 CFR Part 105, "Public Participation in Water Pollution Control",
     Federal Register, Vol. 38, No. 163, August 23,  1973, pp.  22756-22758

     g.   40 CFR Part 128, "Pretreatment Standards", Federal Register,  Vol. 38,
     No. 215, November 8, 1973, pp. 30982-30984

     h.   40 CFR Part 130, "Policies and Procedures for State  Continuing
     Planning Process", Federal Register, Vol. 39, No. 107, June 3, 1974, pp.
     19634-19639

     i.   40 CFR Part 131, "Preparation of Water Quality Management Basin
     Plans", Federal Register, Vol. 39, No. 107, June 3, 1974, pp.  19639-19644

     j.   40 CFR Part 133, "Secondary  Treatment  Information",  Federal Register,
     Vol. 38, No.  159, August  17, 7973, pp. 22298-22299.

     k.   40 CFR Part 220-227, "Ocean  Dumping, Final Regulations and  Criteria",
     Federal Register, Vol. 38, No. 198, October 15, 1973, pp. 28609-28621.

     1.   18 CFR 704.39,  "Discount Rate", Federal Register, Vol. 39,  No. 158,
     August 14, 1974, p.  29242.   (Published annually under this title by U.S.
     Water Resources Council)

     m.   50 CFR Part 17,  "Conservation of Endangered Species and Other Fish
     or Wildlife",  Federal Register, Vol. 39, No. 3., January 4, 1974,
     pp. 1171-1177

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A.2  EPA DOCUMENTS

      o.  "Alternative Waste Management Techniques for Best Practicable
      Waste Treatment", Technical  Information Report, U.S.  EPA,  March 1974

      p.  "Design Criteria for Mechanical, Electric, and Fluid System and
      Component Reliability, Technical  Bulletin, EPA-430-99-74-001

      q.  "Design, Operation and .Maintenance of Wastewater  Treatment Faci-
      lities", Technical Bulletin, U.S. EPA, September 1970

      r.  "EPA Policy to Protect the Nation's Wetlands", Administrators
      Decision Statement No. 4, Federal Register, Vol. 38,  No. 84,  p. 10834

      s.  "Evaluation of Land Application Systems", Technical  Bulletin,
      EPA-430/9-75-001, March 1975

      t.  "Guidance for Sewer System Evaluation", U.S. EPA, March 1974

      u.  "Guidelines for the Preparation of Water Quality  Management Plans",
      EPA, September 1974

      v.  "Manual for Preparation of Environmental Impact Statements for
      Wastewater Treatment Works, Facilities Plans, and 208 Areawide Waste
      Treatment Management Plans", U.S. EPA, July 1974

      w.  "Survey of Facilities Using Land Application of Wastewater", EPA-
      430/9-73-006, July 1973

      x.  Water Quality Strategy Paper, second edition, "A  Statement of
      Policy for Implementing the Requirements of the 1972  Federal  Water
      Pollution Control Act Amendments and Certain Requirements of the 1972
      Marine Protection, Research and Sanctuaries Act", U.S. EPA, March 1974

      y.  "Protection of Shellfish Waters," Technical Bulletin,  EPA 430/9-74-010,
      July 1974.

NOTE:   A copy of the references listed in A.I and A.2 may  be obtained from
        the Regional Offices listed in Appendix C.

A.3   CIRCULARS, AND MISCELLANEOUS PUBLICATIONS

      z.  OMB Circular A-95, "Federal and Federally Assisted Programs and
      Projects, " Federal Register, Vol 38., No. 228, November 28,  1973

      aa.  Grant, E.L. and Ireson, W.G., Principles of Engineering Economy,
      5th Edition, New York:  Ronald Press, 1970.

      bb.  James, L.D., and Lee, R., Economics of Water Resources,  New York:
      McGraw-Hill, 1971

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APPENDIX B - CONSTRUCTION GRANT REGULATION'

-------
                 MONDAY, FEBRUARY 11, 1974
                 WASHINGTON, D.C.

                 Volume 39 • Hurabtr 29

                 PART III
                  ENVRONMENTAL
                    PROTECTION
                      AGENCY
                   WAtER POLLUTION
                       CONTROL

                      ContfrucHon Grontt
                    for Wcute Treatmeitf Worlo
HO. »—pt. m—i

-------
6252
•AHJS
                  ttouiATioMs
        PMFTECTION AUKCV
     HWT 88—WTATE MID LOCAL
             ASSISTANCE
  Tltte n of the Federal Water PoOutton
control Act Amendments of 1972 (Pub.
L. 02-800, 89 TJAC. 1281 et MQ.) au-
thoriaas the award of construction grants
for waste  treatment works.  The award
of these grants creates  a  contractual
obligation of the united States for pay-
ment of the Federal share of the odn-
structton costs of such projects.
  Interim  regulations were published in
the naoui. Rwnrro for this program
on February 28, 1979 (S» FR 8338).
Written comments received from Inter-
ested parties are on file with the Envi-
ronmental  Protection   Agency.  The
agency has carefully considered all com-
ments submitted by tbe public, as well
as oommentfl made by SPA and State
Agency personnel on the basis of their
experience under the interim construc-
tion grant regulations. A number of these
comments  nave been adopted  or sub-
stantially  satisfied by editorial changes
In, deletions from,  or additions  to this
subpart. An effort has been made to con-
form the procedures and requirements of
the new grant system to tbe construction
grants program established under sec-
tion t of the prior Federal Water Pollu-
tion Control Act, as well as to ensure that
new statutory requirements  will be met.
   Major changes in this subpart are the
following:
   (1) The three-step grant process has
been clarified to reflect that a basic grant
application is  submitted  for the initial
•ward of grant assistance, and that sub-
sequent related projects  wfll be funded
through mnumittnmnt of  this grant, in
fnfflftfr.fi, in accordance with, section 2 of
Pub.  L- 93-243, enacted  December  28.
1»73, the requirement that a Step 3 proj-
ect had to result in an -operable* treat-
ment works has been deleted. A project
may be awarded for any "segment" of
treatment works construction as that
term la denned in new I SB .906-24, which
provides that a segment  may consist of
any portion of the treatment works con-
struction associated with a discrete con-
tract or subcontract to be awarded for
Step 1, S, or 3 project work.
   (2)  Section  36.916 has been revised
and expanded  to explain more clearly
EPA requirements under applicable stat-
utory provisions for State priority  sys-
tems and the interrelationship between
this subpart and regulations which have
been issued under section 106 and 3W
of the Act. Each State wffl develop and
submit a single project priority Ust which
win remain in effect until « new list is
approved  as a  part of
tton  106  State  program
      priority has been mrtahllshml for a
 project, the  project  wffl  retain  this
 priority until funded, unless the State
otherwise provides through its priority
system. Two new provisions have also
been added. Section 36.916 (g)  requires
that each .State reserve not lees than 6
percent of fiscal year 1978 and subse-
quent State allotments of  contract au-
thority m order to adequately provide for
cost overruns which are being experi-
enced under the construction grant pro-
gram. .Section 36.916(1) permits  (but
does not require) the State to establish a
separate reserve for grant assistance for
Step 1 and Step 2 projects  whose selec-
tion for funding win  be determined by
tfae State agency subsequent to approval
of the project Hat, since experience has
demonstrated that States require more
flexHiQMy than is permitted by an an-
nual priority d*t^rnr>*Tift^*fvri
'  (8)  Faculties pfr»n*ng  requirements
are set forth in new if 35.917 through
36.917-9. Xa order to permit a transition
into these 'new requiremento, full com-
pliance with substatutory  requirements
will not be required except with respect
to Step 1 work which is initiated after
April SO, 1974. After October 31, 1974, a
"plan of study" must be approved prior
to the initiation of Step 1 work. These
new procedures are designed  to  assure
better accomplishment of the objectives
of the new Federal Water Pollution Con-
trol Act  and  collateral statutory re-
quirements  (such as  the National En-
vironmental Policy Act of  1999). These
statutory requirements  must  be  ad-
dressed  by tbe applicant during the
faculties planning process.
   (4)  New procedures have been estab-
lished in revised 136.927-6 to assure that
the infiltration/inflow requirements de-
rived from section 201 (g)  (3)  and (4)
 of the 1972 FWPCA  Amendments are
met without unnecessary documentation
and expense.                 i
   (8) New provisions in Si 36.925-18 and
 36.905-4 delineate the Agency's position
with respect to the Initiation of project
 construction prior to the award of grant
 asatotaneefor Steps 1,2, or 3. Section 808
of the FWPCA  Amendments of  1872
 clearly precludes the type of reimburse-
ment previously authorized under section
8 of the former FWPCA with respect to
projects (as denned under the program
 authorised  by tbe  prior   statute)  on
 which  construction was initiated after
June 80.  1972. Due to the  institution of
 the three-step grant  process under the
new FWPCA. tt has become necessary
 to address  the issue of reimbursement
 with respect to "tolUattort of construc-
 tion"  (as defined in 36.906-4)  for Steps
 1 and 2. For this reason, and to permit
 better program management by EPA and
State  agencies, and to permit better ac-
 complishment of statutory objectives.
 procedures  are set forth In 136.926-18
 which will phase out the possibility of a
reimbursement claim. Eligible step 1  or
 Step 2 project work Initiated prior  to
 November 1. 1974, will be fully reim-
 bursed m conjunction  with  the next
 award of grant assistance.  If reimburse-
 ment  Is requested  (see  136.946 
                                  (6)  of the  Ac*. Section  36.937  which
                                  would ado^ess procurement by grantees
                                 of professional and personal services, is
                                  being separately issued as a proposed
                                  regulation,  which will not be effective
                                  until an Interim or final  regulation is
                                  adopted.
                                    In addition, a considerable number of
                                  technical  revisions have   been  made
                                  throughout the subpart Accordingly, for
                                  the convenience  of  users,  the  entire
                                 subpart is being republlshed.
                                    Construction grant regulations  adopt-
                                  ed under niiiiftli 8 <* the former FWPCA
                              I8D8EM tM4Sm. VOL. »V. NO. IV—MONDAY, P8MUAIY 11, W4

-------
 (| 85400 et seq. of this port) remain In
 effect and are  applicable to  construc-
 tion grants awarded prior to January 1,
 1973, under the authority of section  8.
 This Bubpart E establlahM policies and
 procedures applicable  only to  construc-
 tion grant awards from fiscal year 1973
 and later contractual obligation author-
 ity allotments  under  Title n of  to*
 FWPCA Amendments of 1972.
  Regulations  have been  promulgated
 separately as Subpart D of this part to
 Implement the reimbursement provisions
 of  section  206 of  the 1973  FWPCA
 Amendments.
  This subpart Is promulgated as a final
 regulation and will replace the Interim
 regulations   previously   promulgated.
 However,  because   of  the  numerous
 changes and additions which have been
 made  throughout this  sobpart,  public
 comment Is  again Invited.  In particular,
 comment Is Invited upon the new provi-
 sions of the following sections:  36.903,
 •6.908,36.916,35.917 to 35.917-9,36.930-6,
 35.938.  36.939.   and 36.960. Interested
 parties are encouraged to submit written
 comment*, views, or data concerning this
 subpart to the Director, Grants Admin-
 istration  Division, Environmental Pro-
 tection Agency, Washington, D.C. 30460.
 All such, submissions received on or  be-
fore April 15, 1974. win be considered
 with respect to the need for amendment
 of this subpart.
  Effective date. This  subpart shall be-
 come effective February 11.1974. All EPA
 construction grants awarded pursuant to
 sections  109(b)  and 201 (g)(l)  shall  be
subject to this subpart It Is necessary
 that tM« subpart take
Bee.
86406-32  Storm i
w*Q6-*s
in order to accomplish the objectives of
the Act and to assure optimum achieve-
ment of the effluent and water quality
objectives  established  pursuant to  the
Act.

  Dated: February 4,1974.

                  RU80XU. E. TRAIN,
                       Administrator.

•ufepsrt E—Grant* for Constructiea of Treatment
  Works—Federal Witer FMMlMI  Central  Act
  Amendments of 1972
BOO.
88*0fr   Purpose.
88*08    summary of construction  grant
            program.
86*08    Definitions.
85*00-1  The Act.
86*06-3  Combined sewer.
86.906-3  Complete wast* treatment system.
86.905-4  Construction,
85.905-0  Excessive tnflltratioc/lnflow.
86,906-4   Industrial oost recorwy.
85*08-7  Industrial cost recovery period.
86*06-8  Industrial user.
86*05-0  Infiltration.
86.905-10 Infiltration/Inflow.
86.900-11  Inflow.
85.906-ia  Interceptor sewer.
80*06-18  Interstate agency.
80.900-14  Municipality.
85*06-10  Operable treatment works.
85*00-16  Project.
88*00-17  Replacement.
*I*06~la  Sanitary sewer.
88*00-10  Sewage collection
85*00-40 StateT
80*88-41  State agency.
 80*10
 80.910-1
 85*10-4
 35*10-*

 30*10-4
 85*13
 86*15

 35.917
 88*17-1
 36*17-3
 85*17-3
 36.917-4
 30*17-0
 36.917-«

 36.917-7

 36*17-8

 35.917-9

 35.930
 36*30-1
 35.930-3
 36.930-3
 36.936
 36*36-1
 30.936-2
 95.925-3
 35.936-4
 36.936-5
 36*36-0.
 88*36-7
 86.928-8
 30*26-0
 85.936-10

 86*46-41
 88,936-19
 96.926-18
 86.935-14

 85*35-18
 36.938-18
 96.936-17

 36,936-1*

 96.936-19
80*37

80.937-1
36.937-3
30.937-8
36.937-4
36*37-*
36.998
36.938-1
                                          38.930
                                          36.930-1
                                          36 .93O-3
                                          3C.980-S
                                          36*30-4
                                          3**80-*
                                          36.934
                                          36.988-1
                                          se.ese-i

                                          S6.93C-S
          TMtalttfe.
          TJstr cbsrg*.
          Advanced technology and
            ated  eonsdraotion
          Allocation of roads.
          Allotment.
          Bsauotment.
          Fiscal Yean 1978 and 1974
            me&ts.
          Placal year 1978 allotments.
          Delegation to State Agencies.
          State determlnattea  of project
            priority list.
          Facility planning (Step 1).
          Content at tacuities plan.
          State responsibilities.
          Federal assistance.
          Planning scope and detail.
          Publln partlclp*tiorL
          Acceptance by Implementing gov-
            ernmental unite.
          State review and certification of
            faculties plan.
          Submission and approval of facu-
            lties plan.
          Revision or amendment et fa0tu-
            tte> plan.
          Grant application.
          Eligibility.
          Procedure.
          Contents of application.
          Limitations on awatd.
          Faculties planning.
          Baeln plan.
          Priority, detennlnattoa.
          State anooatioa.
          Funding tv*ui otber rspaTrlltttss
          Permits.
          Design.
          Environmental review.
          ClvQ Rights.
          Operation and mabttetuuMi* pro-
TJeer charges.
Industrial cost recovery.
Sewage collection system.
Compliance  with Environmental
  Laws.
Treatment of industrial wastes.
Federal activities.
Retained amounts for leimxlj mi
  tkm and expansion.
Limitation upon project ocato In-
  curred  prior to award.
Section 306: Agencies aod plans.
Sewer  system evaluation aad re-
  habilitation.
Infiltration/inflow  analysis,
Sewer  system evaluatta* surrey,
Bebabilttatlon.
Sewer  use ordinance.
Project procedures.
Industrial oost recovery.

Retained amounts.
Award of grant assMaaoa.
Types  of projects.
•Grant  amount.
Grant  term.  '
Project scope.
Federal ahare.
Limitation oo. Federal share.
Grant  conditions.
Non-Federal construction
Procurement; nonrestrietti
  incatlons.
                                  sptf
                                                                                    86*88-»
                                                                                    »*88-l«  Coptssof «oatnotdooaoMi}tB.
                                                                                    SVveW^'l'X  Flttj40t tibsUsWMk
                                                                                    86*eO-U  OpsratVon aad,
                                                                                    80*30-18  User charge* aad
                                                                                               recovery.
                                                                                    80*80-14
                                                                                    86.930-10
                                          38JW6-8
                                          »6*»6-S
                                          S« .936-7
                                          SAJWMI
         Bonding and Insurance,
         State and looal laws.
         Davis-Bacon aad related statutes.
         Bqual employment
         Aooesc.
         Soperriatoa.
                                                                                                          small and minority
 80.930-18  Sewer use- ordinance and evalu-
            atlon/rahateUltatlon program.
 80.930-17  Training facility.
 30*87    Contracts for personal  and pro-
            fesstaaal eerrloes flUserved].
 80.936    OonetructtoB contracts  of grant-
            ees.
 36.938-1   Applicability.
 36*88-2   Performance by contract.
 36*38-8   Type of contract.
 36.938-i   Formal advertising.
 35.938-0   Negotiation.
 36*39    Compliance with procurement re-
            quirements.
 86.9*0    Determination of allowable cost*.
 36.9*0-1   Allowable project costs.
 36.940-3   Unallowable  costs.
 35.940-3   Costa allowable, ff approved.
 35.940-4   Indirect costs.
 30.940-0   Disputes  concerning  allowable
            costs,
 36.945    Qrant payments.
 35,960    Suspension  or  termination  of
            grants*
 36.966    Grant  amendment*  to  increase
            grant amount*.
 36.990    DUputes.

  AUTHORITY: Sees. 109(%), 301 through SOB.
 307, 210 througb 213, and BOB (a), 80S, and
 511 of Pub. u-92-aoo (8e at*, no;  88 UJB.O,
 1361) as amended by Pub. U fa-048.

 S 35.900   Purpose.

  This subpart  supplements the EPA
 general grant regulations and procedurea
 (Part 30 of this chapter) and  establishes
 policies and procedures for grants to as-
 sist the construction  of  publicly owned
 waste treatment works in compliance
 with the Federal Water Pollution Control
 Act.

 9 35.903   Summary of construction gram
     program.

  (a)  The construction of Federally fi-
 nanced waste treatment works is gener-
 ally accomplished In  three steps: Step
 1 facilities, plans and related element*;
Step  2   preparation  of  construction
 drawings and specifications;  and Step
3 fabrication and building of a treat-
 ment works.
  (b)  The Regional Administrator may
 award grant assistance for a Step 1, Step
 2, or Step 3 project, or. under special
 conditions, for a project involving a com-
 bination of Steps  2 and 3. A "project"
 (see { 35.905-16) may consist of an en-
 tire step or any "segment"  (see I 35.905-
 24) of construction within a step.
  (c> Grants are awarded from State al-
 locations  (see 135.910} pursuant to stat-
 ute. No grant assistance may be awarded
 unless priority for a project has been de-
 termined In accordance with an approved
 State priority system  pursuant to I  35.-
 915, The State Is responsible  for deter-
 mining the amount and •uminy of Federal
 assistance to each municipality for which
 treatment works funding is needed.
                               FEDflAt IEOISTH, VOL 39,  NO. 29—MONDAY, FsMUAtT  11, 1*74

-------
                                             RltfcES AND RfGULATKMS
   (d) "Hie scope of a project will be Ini-
tially defined by a prospective applicant.
This Initial project scope may be revised
by the State when priority for the project
Is established. The final determination of
project scope will be made by  the Re-
gional Administrator when grant assist-
ance is awarded (see i 36.930-4).
   (e) An application must first be sub-
mitted to the State agency for each pro-
posed grant. The basic grant application
must meet the requirements for the proj-
ect set forth in { 35.920-3. Submissions
required for grant assistance for subse-
quent related projects shall be provided
In the form of  amendments to the basic
application. The State agency will for-
ward to the appropriate  EPA Regional
Administrator complete project  applica-
tions or amendments thereto for which
priority has been determined by the State
agency.  The grant will consist of the
grant agreement resulting from the basic
application  and  grant  amendments
awarded for subsequent related projects.
   (f)  Generally,  grant  assistance for
projects Involving Steps 2 or 3  will not
be awarded unless the Regional Admin-
istrator first determines that the facil-
ities planning requirements of {9 3B.917
to 36.817-8 of this subpart have been met.
After October 31, 1874. written approval
of a "plan of study" (see I  3&.920-3
 (1)) must be obtained prior to Initiation
of facilities planning. After June 30,1975,
facilities  planning may not  be  initiated
prior to approval of a Step 1 grant (see
 It 35.825-18 and 35.905-4).
   (g) If initiation of Step 1,  2, or 3 con-
struction  (see  8 36.905-4)  has occurred
prior to award of grant assistance, costs
Incurred  prior  to the approved  date of
Initiation of construction will not be paid
and award will  not  be made except
under the circumstances set forth  in
 I 38.025-18.
   in)  The Regional Administrator may
not award grant assistance  unless the
project application requirements of ! 35.-
920-3  have been met  and he has made
 the determinations required by  5 35.925
 et seq.
   (1)  A   grant  or grant  amendment
 awarded for a project under this subpart
shall constitute a contractual obligation
of the United States to pay  the Federal
 share of allowable project costs up to the
 amount approved in the grant agreement
 (Including amendments i  in  accordance
 with | 36.930-6 of this subpart, subject
 to the grantee's compliance with the con-
 ditions of the grant (see t 35 936 et seq.)
 and other applicable requirements of this
 subpart.
     Section 35.945 authorize?  prompt
 payment for incurred project costs in ac-
 cordance  with  a negotiated payment
 schedule. The Initial request for payment
 may cover unpaid allowable costs of work
 completed prior  to award  except  as
 otherwise provided in } 36.925-16. All al-
 lowable costs incurred prior to initiation
 of project construction must be claimed
 In the application  for grant assistance
 for that project  prior to the award of
 such assistance or no subsequent claim
. for payment may be made for such costs.
The estimated amount of any grant or
grant amendment, including  any prior
costs, must be established in conjunction
with  determination of priority for the
project.  The  Regional  Administrator
must determine that  the project costs
are reasonable and allowable, in accord-
ance with 8 35.940.
  (k) Pursuant to section 204(b) of the
Act, the grantee must comply with ap-
plicable user charge and industrial cost
recovery requirements; see SS 35.925-11,
35.925-12,  35.928,  35.935-13,  and  Ap-
pendix B of this subpart.
  (1)  Sewage collection systems for new
communities, new subdivisions, or newly
developed urban areas must be addressed
In the planning of such areas and should
be included as part of the development
costs of the  new  construction in these
areas. Such  costs will not be allowed
under the construction grant program,
pursuant  to  section 211  of the Act; see
S 35.926-13.
  (m) The approval of a plan of study
for Step 1, a facilities  plan, or award of
grant assistance for Step 1, Step 2, or
Step 3,  or any segment thereof, will not
constitute a Federal commitment for ap-
proval of grant assistance for any subse-
quent project.
  (n> Where justified, a deviation from
any substatutory  requirements of this
subpart  may be  granted  pursuant to
S 30.1001 of this chapter.
  (o) It Is the policy of the  Environ-
mental Protection Agency  to promote
adequate public participation in the con-
struction grant process. Opportunity for
public participation is required: (1)  In
the development of the State water pol-
lution control strategy and State project
priority list,  pursuant to 85 35.556 and
35.915;  and  (2) In the development of
facilities plans, pursuant to } 35.917-5.
§ 35.905   Definitions.
  As used  in. this subpart, the following
words and terms shall  have ttie meaning
set forth below:
§ 35.905-1   The Act.
  The Federal Water  Pollution Control
Act (33 U.S.C. 1251 et  seq.), as amended1
by  the Federal Water Pollution Control
Act Amendments  of  1972  (Pub. L. 92-
500 > and Pub. L. 93-243.
§ 35.905-2   Combined wwer.
  A sewer intended to serve as a sanitary
sewer and a storm sewer,  or  as an In-
dustrial sewer and a storm sewer.
§ 35.905-3   Complete waste  treatment
     Astern.
  A complete  waste treatment  system
consists of all the connected  treatment
works necessary to meet  the  require-
ments of Title HI of the Act and Involved
in:  (a)  The transport  of  wastewaters
from individual homes or buildings to a
plant or  facility wherein treatment of
the wastewatcr is accomplished; (b) the
treatment of the wastewaters to remove
pollutants; and (c) the ultimate disposal,
Including  recycling  or  reuse, of  the
treated wastewaters and residues result-
ing from  the treatment process.  One
complete waste treatment system would.
normally, include one treatment plant or
facility, but in instances where two or
more treatment  plants are  intercon-
nected, all of  the interconnected treat-
ment works will toe considered as one
waste treatment system.
§ 35.905-1  Contraction.
  Any one or more  of the following:
Preliminary planning to determine the
feasibility of treatment works, engineer-
Ing,  architectural, legal, fiscal,  or eco-
nomic investigations or studies, surveys,
designs, plans, working drawings, specifi-
cations, procedures or  other  necessary
actions, erection, building, acquisition,
alteration, remodeling, improvement, or
extension of treatment works,  or the in-
spection or supervision of any of the
foregoing items.  The phrase "initiation
of construction,"  as used In this subpart
means with reference to a project for:
  (a) The preparation  of a  facilities
plan or completion of other Step  1 ele-
ments:
  (1) Prior to November 1,1974, the ex-
ecution of an agreement for any element
of Step 1 project work (including facili-
ties  planning);  or,  If  an  agreement
covering Step  I work has previously been
entered Into, the Issuance of a notice to
proceed with the  Step 1 work;  or a work
order for the execution of any element of
Step 1 work;
  (2) After October 31, 1974, the date
of approval  of  a  plan of study (see
§35.925-18(a)U));
   (b) the  preparation  of construction
drawings and specifications (Step  2):
  (1) Prior to November 1, 1974, the ex-
ecution of an agreement for the prepara-
tion  of construction drawings  and spec-
ifications; or,  if an agreement covering
both Step 1 and Step 2 elements has been
previously entered Into,  the Issuance of
a notice to proceed;  or a work order for
the preparation  of construction  draw-
ings and specifications;
  (2) After October ST. 1974, the date
of approval  of  a facilities  plan (see
535.925-18(a)(2)):
  (c) the  building  and  erection of  a
treatment works  segment (Step 3):  the^
Issuance of a  notice to proceed under  a
construction  contract for  any segment
of Step 3 project work, or, if notice to
proceed is not required, execution  of the
construction contract.

§ 35.905-5 Exceuive infiltration/inflow.
  The quantities of  infiltration/inflow
which can be economically eliminated
from a sewer system by rehabilitation, as
determlned-tty a  cost-effectiveness anal-
ysis that compares the cost* for correct-
Ing  the  innltratiorv inflow   conditions
with  the  total costs for transportation
and  treatment of the infiltration/inflow,
subject to the provisions in { 36.927.
§ 35.905-6  Induttrial CM! recovery.
  Recovery by the grantee from the in-
dustrial users of a1 treatment works of
the grant amount allocable to the  treat-
ment of wastes from such users pursuant
to section 20405) of the Act and this
subpart.
                               FEDiRAL REGISTER  VOL. 39, NO. 2?-**ONDAY, ttBRU*ftY 11, 1974

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                                                   ANB
                                                                        5233
§ 35.905-7  Industrial  Cost  Recovery
    Period.
  Thai  period during which the grant
amount allooable  to  the treatment of
wastes from industrial users is recovered
from the Industrial users of such works.
9 35.905-8  Industrial w»er.
  Any nongovernmental user of publicly
owned treatment works identified in the
Standard Industrial Classification Man-
ual,  1972,  Office of  Management  and
Budget, as amended and supplemented,
under the following divisions:
  (a)  Division A. Agriculture, Forestry,
and Fishing.
  (b)  Division B, Mining.
  (c) Division D. Manufacturing.
  (d)  Division E. Transportation, Com-
munications, Electric, Gas, and Sanitary
Services.
  (e)  Division I. Services. A user In the
Divisions listed may be excluded if It IB
determined that it will  Introduce  pri-
marily  segregated  domestic wastes or
wastes from sanitary conveniences.
§ 55.905-9  Infiltration.
  The water entering a sewer  system,
Including   sewer  service  connections,
from the ground, through such means as,
but not limited  to, defective pipes,  pipe
joints, connections, or manhole walls. In-
filtration  does not Include, and  is dis-
tinguished from, inflow,
g 35.905-10  Infiltration/inflow.
  The total quantity of water from  both
infiltration  and Inflow  without  distin-
guishing the source.
§35.905-11  Inflow.
  The water discharged Into  a sewer
system.  Including  service  connections
from such sources as, but not limited to,
roof  leaders, cellar, yard, and  area
drains, foundation drains, cooling water
dischargee,  drains  from  springs  and
•wampy areas,  manhole covers,  cross
connections from storm sewers and  com-
bined sewers, catch basins, storm waters,
surface run-off, street wash waters,  or
drainage.  Inflow does not Include, and
IB distinguished from, Infiltration.
.§ 35.905—12 Interceptor sewer.
  A sewer whose primary purpose  Is to
transport  wastewatew   from  collector
sewers to a treatment facility.
§ 35.905-13 Interstate agency.
  An agency-of two or more States es-
tablished by or pursuant to an agreement
or compact approved by th* Congress, 6r
 any other agency of two or  more States,
having  substantial powers or duties per-
 taining to the control of water pollution.
 8 35.905-14 Municipality.
  A city,  town,  borough, county, parish,
 district, association, or other public body
 (Including an mtermunlcipal agency of
 two or more of the  foregoing entitles)
created by or pursuant to State law, or
an Indian tribe or an authorized Indian
tribal organization,  having jurisdiction
over disposal of sewage, industrial wastes,
or other wastes, or a designated and ap-
proved  management agency under sec-
tion 2A8 of the Act. This definition ex-
cludes a special district, such as a school
district, which does not have as one of
Its  principal  responsibilities the treat-
ment,  transport, or  disposal  of liquid
wastes.

§ 35.905-15   Operable treatment work*.
  An operable treatment works Is a treat-
ment worka that:
   Upon  completion  of  construction
will treat waste-water, transport waste-
wafer to or from treatment, or transport
and dispose of wastewater in a manner
which will significantly  Improve an ob-
jectionable  water  quality related situa-
tion or health hazard in existence  prior
to construction of the treatment works,
and
  (b) Is a component part of a  com-
plete waste treatment  system  which,
upon completion of construction for the
complete  waste treatment system (or
completion  of  construction   of   other
treatment  works In the system Li ac-
cordance  with a schediile  approved by
the Regional Administrat ,r)  will  com-
ply  with  all applicable statutory  and
regulatory requirements.
§ 35.905-16  Project.
  The scope of  work for which Federal
assistance  Is awarded  by  a  grant or
grant amendment pursuant to this sub-
part. For the purposes  of this subpart,
the scope of work  is defined as Step 1,
Step  2, or Step 3 of treatment  works
construction  or segments  thereof  (see
I 35.805-24 and ! 35.930-4).
| 35.905-17  Replacement.
  Expenditures  for obtaining and In-
stalling equipment, accessories, or ap-
purtenances which are necessary during
the service life  of  the  treatment  works
to maintain the capacity and perform-
ance for which such works were designed
and constructed.  The  term  "operation
and maintenance" Includes replacement.
035.905-18  Sanitary wwer.
  A sewer Intended to carry only  sani-
tary  or sanitary  and  Industrial waste
waters  from  residences,   commercial
buildings, industrial plants, and Institu-
tions.
§ 35.905-19  Sewage  eolleclion  system.
  For the purpose of  ! 35.925-13 of tills
subpart, each, and all,  of  the common
lateral sewers, within a publicly-owned
treatment system, which are primarily
installed to receive wastewaters directly
from facilities which convey wastewater
from Individual structures or from priv-
ate property, and which Include service
connection "Y" fittings designed for con-
nection with those facilities. The facilities
which convey wastewater from Individual
structures or from private property to
the public lateral sewer, or its equivalent,
are specifically excluded from the defini-
tion, with the exception of pumping units,
and pressurized lines,  for  Individual
structures or groups of structures when
such  units  are  cost effective  and are
owned and maintained by the grantee.
§ 35.905-20  State.
  A State, the District of Columbia, the
Commonwealtti  of Puerto Rico, the Vir-
gin Islands, Guam, American Samoa, and
the Trust Territory of the Pacific Islands.
§ 35.905-21  State agency.
  The  State water pollution  control
agency designated by the Governor hav-
ing  responsibility for  enforcing  State
laws relating to  the  abatement of pollu-
tion.

§ 35.905-22  Storm sewer.
  A sewer Intended  to carry only storm
waters,  surface run-off,  street  wash
waters, and drainage.
§ 35.905-23 Treatment works.
  Any devices and systems used In the
storage,  treatment, recycling, and recla-
mation of municipal sewage or industrial
wastes of a liquid nature to Implement
section 201 of toe act, or necessary to re-
cycle or reuse water at the most eco-
nomical  coet over the useful life of the
works, Including intercepting sewers, out-
fall sewers,  sewage  collection  systems,
pumping, power, and other equipment
and their appurtenances; extensions, im-
provement,  remodeling, additions, and
alterations thereof; elements essential to
provide a reliable recycled supply such as
standby treatment units and clear well
facilities; and any works, including site
 acquisition  of the land that will be an
Integral  part of  the treatment process or
is used for ultimate disposal or  residues
resulting from  such treatment; or any
other  method or system for  preventing,
abating, reducing, storing, treating, sepa-
 rating, or disposing of municipal waste,
 Including storm water run-off, or indus-
 trial waste. Including waste in combined
 storm water and sanitary sewer systems.
§ 35.905-24 Treatment Work* Segment.
   A treatment  works segment may  be
 any portion of an operable treatment
 works described in an approved  facilities
 plan, pursuant to I 35.817, and which can
 be identified as a discrete  contract or
 subcontract for  Step 1, 2, or 3 work. Com-
 pletion  of construction of  a treatment
 works segment may, but need not, result
 in  an operable treatment works.
 §35,905-25  Uwsfullife.
   Estimated period during which a treat-
 ment works will be operated.
                                      M6tfr% VOI. 3«, NO.  29—MONDAY. KMUAXT 11,  1974

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5256
RULES AND  REGULATIONS
g 35.905-26  User ch*rKe.
  A charge levied on users of a treatment
works for the cost of operation and main-
tenance of such works, pursuant to Sec-
tion 204 (b) of the Act and this subpart.

fi 55.908  Advanced technology and ac-
    celerated construction techniques.
  It is the policy of the Environmental
Protection  Agency  to encourage  and,
where possible, to assist In the develop*
ment of accelerated construction tech-
niques and new  or  advanced processed,
methods, and technology for  the  con-
struction of waste treatment works. Mew
or advanced processes or methods may be
utilized in the construction of treatment
works under  this subpart. New tech-
nology or processes may be developed or
demonstrated with the assistance of EPA
research  or  demonstration   grants
awarded under Title I of the  Act. New
processes or  methods which have  been
successfully  demonstrated  under  less
than full Kale conditions may be utilised
m fee construction of treatment works
under this subpart.
6 S&910  Allocation of fund*.
§ 35.910-1  Allotment.
  Allotments shall be made among the
States from funds authorized  to be ap-
propriated pursuant to section 207 In the
ratio  that  the  most recent  congres-
akmaUy approved estimate of the cost of
constructing all  needed publicly owned
treatment works in each State bean to
the most recent congreeslonaUy approved
estimate of toe cost of construction of
an  needed  publicly  owned treatment
works in all of the States. Computation
of a State's ratio shall be carried out to
the  nearest  ten  thousandth percent
(0.0001 percent)  and  allotted  amounts
win be rounded to the nearest thousand
dollars except for Fiscal Tear 1975 which
wffl be rounded to the nearest fifty dol-
lars.
135.910-3   ReaDotment.

  (a)  Sums allotted  to a State under
f 38J10-1 shan be available for obliga-
tion on and after the date of such allot-
ment and shall continue to be available
to such State for a period of  one year
after the close of the fiscal year for which
such sums are authorized. Funds remain-
ing unobligated at the end of  the allot-
ment period wffl be Immediately reallot-
ted Iv the Administrator, on the  basis
of the most recent allotment ratio to
those States which have used their full
allotment.
  (b) ReaUotted sums ahali be added to
the last allotments made to the States
and than be In  addition to any other
tunas otherwise allotted, and be avail-
able for obligation In the same manner
and to the same extent as such last
allotment
(c) Any sums which have been obli-
gated under this subpart which remain
after final payment, or after termina-
tion of a project, shall be credited to the
State to which such sums were last al-
lotted. Such released sums shall be added
to the amounts last allotted to such State
and shall be available for obligation In
the same manner and to the same extent
as such last allotment.
§ 35.910-3 Fiscal Yean 1973 and 1974
Allotment*.

(a) For Fiscal Years ending June 30,
1973 and June 30, 1974, sums of $2 bil-
lion and $3 billion, respectively, have
been allotted on the basis of Table in
of House Public Works Committee Print
No. 92-50.
 The percentages used in comput-
ing the State allotments set forth in
paragraph (c) of this section for Fiscal
Tears 1973 and 1974 are as follows:

Per- Per-
State oentaye State oentage
Alabama... O.S813 North Car-
Alaak* 	 .tttt otlaa 	 *2»
Aruona ... .1846 North Da-
ArkaBM* ._ .8*39 koU 	 .0407
California . e.ftro Onto 6.7737
Colorado .. SIM Oklahoma . .4*08
Oo&nectl- Oregon 	 .8404

District of vanla -— B. 4314
Columbia . 7114 Rhode
Dalawan .. .8686 Talaiul ... .4880
PtatkU 	 3.«2«4 South Cer-
Oeotaia ... .9730 ouaa 	 .6408
Hawaii 	 .3303 South Da-
Idaho .9177 kota 	 .0048
nilnoH .... 0.3480 Tennee*e» . 1. 16OS
Indiana 	 8.8662 Texaa 	 2.7664
Iowa 	 1. 1087 Utah 	 . 1408
Kansas 	 . 3743 Vermont — . 9318
Kentucky . .6699 Virginia 	 a. 9143
Louisiana . .0438 Waahlng-
Matne 	 0.9676 ton 	 .8906
Maryland .. 4. 3683 West Vlr-
Maasachu- gtnla 	 4999
Mtta 	 3.7676 Wisconsin . 1.7418
Michigan.. 7.9814 Wyoming.. .0368
Mln'vmrt* 9 OHIO O"»m ... .0873
UUBtNdppl. .3986 Puerto
UlMOurl ... 1.8688 Rico 	 .8845
Montana .. . M63 Virgin
Nebraafc* .. .8708 Xslanda .. .0893
Nevada 	 .3877 American
NewBamp- Samoa... .0048
tub* 	 8309 Trust Tw-
New Jeraer. 7.7040 rttoryof
New MM- Pacific
loo 	 3108 XetaxuU .. .0378
New York-- 11.0078 	
100.0000
(c) Based upon the percentages, the
sums allotted to the States as of July l.
1973, for Fiscal Tears 1973 and 1974 are
as follows:

StaU Ftaoalwar Ftooalyear
1971 1974


Alabama 	 «7,2ai,000 $10,886,000
AlMka 	 4,801,000 6,7*6,000
Aritona 	 2,892,000 4,088,000
Arkansas 	 7,072,000 10, MS. 000
California 	 106,463,000 304,528,000
Colorado 	 6,832,000 8,408,000
Connecticut 	 8», 620, 000 50,430,000
Delaware. 	 IS, ISO, 000 19,005.000
District at Catamite 	 14.228,000 21.842 000
Florida 	 72,828,000 10g,7W2,000
Georgia 	 1»,460,000 »,190,000
Hawaii 	 	 8,605,000 9,003,000
Idaho 	 	 	 4,8*4,000 8. Ml, 000
Illinois 	 124,978,000 187,467.000
Indiana 	 67.J24.000 100,986 000
lows 	 	 21,114,000 M.ffH.OQO
Kansas 	 7,484,000 11,220,000
Kentucky 	 18,198,000 19,797,000
Louisiana 	 	 	 18.866,000 28,284,000
Main* 	 19,480,000 20,025,000
Maryland 	 86,144,000 127,748,000
Massachu»ett» 	 75. 152,000 112,728,000
Michigan 	 189,828,000 289.442,000
Minnesota. 	 40,688,000 60, 957, 000
Missisdpj* 	 7.570,000 11,905,000
Missouri 	 88,112,000 4e,Mg,000
Montana 	 J.834,000 4,980,000
Nebraska 	 	 : 	 7,410,000 11,124,000
Nevada 	 5,784,000 8,681,000
New Hampehlra. 	 18,618,000 24,927,000
NewJmoy 	 	 164,060,000 711,120,000
New Mejdoo-sB-.. 	 4,216,000 6,824000
New York 	 221,166,000 881,754,000
North Carolina. 	 18,488,000 27,657,000
North Dakota. 	 084,000 1,401,090
Ohio 	 115.471,000 178,211,000
Oklahoma 	 9,218,000 >l, 824, 000
Oregon 	 18,988,000 26,4*2,000
PennjylTanla. 	 108,428,000 102,642,000
Rhode Maud — 	 9.778,000 14,687,000
Sooth Carolina. 	 12,910,000 10,186,000
South Dakota 	 1,820,000 2,044,000
Tennean* 	 ZS, 210, 000 84,818,000
Texas. 	 86,888,000 IS, 082, 000
Utah 	 2,816,000 4,234,000
Vermont 	 	 j.. 4,416000 6684,000
Virginia 	 88,280,000 87,429,000
Washington 	 .-. 	 17,812,000 26,718,000
WeatVfrgtala. 	 9,998.000 H.BOT.OOO
Wisconsin 	 11,580,000 42,248,000
Wyoming. 	 886.000 804,000
Quam. 	 1,7+4,000 1,618,000
Puerto Rloo 	 17,680,000 26,585,000
Virgin bland* 	 1,786,000 2,079.000
American Samoa. 	 	 M.OBO 144,000
Trait TeMtorr ef Paetto
litlatkdt 75fl 000 1 184 000

Total. 	 2,000,000,000 1,000,000,000

§ 35.910-4 Fieeal Year 1975 Allotment*.
(a) For the Fiscal Year ending
June 30, 1976. a sum of $4 billion has
been allotted based 50 percent on ttie
ratios of Table I and 60 percent of Table
n of House Public Works Committee
Print No. 93-28, pursuant to Pub. L.
93-243.
(b) The percentages used In comput-
ing the State allotments set forth in par-
agraph (c) of this section, for Fiscal
Tear 1976 are as follows:
Per- , Per-
State oentage State oentage
Alabama... 0.8014 Delaware .. 0. 5348
Alaska 	 0. 8680 Dlatrtot of
Arizona 	 .. 0. 40M Colum-
Atta&MS .- O.e080 bla 	 0.0734
California - ll.e»*0 Florida 	 4.1838
Colorado ~ 0.7897 Georgia 1.9360
Connect- < Hawaii 	 1.0408
lout 	 1.7097 Idaho 	 0.3008
                              FfOttM UOIftat, VOL 99, NO. 1«—MONOAY, fWRUARY  T1, 1*74

-------
                     Jtt*t«
nilnou . —
IOW»
Kentaoky .
Maine _____
Maryland .-
Massachu-
  setts ----
Michigan __
Minnesota .
Mississippi ^
Missouri ___
Montana —
Nebraska ._
Nevada ----
New Hamp-
  shire ____
New Jwsey .
New
  Mexico __
Hew York ..
North Caro-
  lina _____
North
  Dakota ..
Ohio ......
Oklahoma .
Oregon ----
e.*m
1,819*.
1.0013
1. 0332
1. 0079
0. 7346
0.6870
1.8167

3. 29«
4.7878
1. 6341
0. 6356
1. 8060
0. 1421
0.0314
0. 4756

0. 8020
0, 47B9

0. 19&9
13. 4793

 1. 7029
 o.oaia
 4. 9184
 1.19B3
 0.8682
Bhode
  Island —
South
  Carolina,-
0outb
  Dakota ..
TeantM** .
Texan .	
Utah	
Vermont	
Virginia ...
Washing-
  ton 	
West
  Virginia. .
Wisconsin _
Wyoming	
Chiam	
Puerto
  Kino 	
Virgin
  Islands __
American
  Samoa —
Trust Terri-
  tory of the
  Pacific
  Islands ..
 Per'
centag*

 S.60M

 0. 9804

 1. 4331

 0.0007
 1.3308
 1. 6684
 0.4017
 0. 3001
 2. 5O94

 1. 6468

 0. 969$
 1.3317
 0. 0788
 0.0478

 1.O386

 0. OT9fl

 0. OH7
                                           IULJES AND  REGULATIONS

                                      West Virginia. ......... ------- W7.736.700
                                      WlMHUlfl ___________________ 88. 360. 400

                                                 "™"""
                                      American Samoa
                                      Trnrt  TsrrtUwy
                                                        of   Pacific
                               ffT«,700

                               634,300

  Allotment adjustment has been made
for those States that would receive an al-
lotment that would be less than their
Fiscal Year 1972 allotment. The allot-
ment of those  States  which fall below
their Fiscal Year 1972 allotment will be
restored to their Fiscal Year 1972 allot-
ment using funds from the total allot-
ment. Remaining funds will be allocated
to States  (excluding  the  States with
allotment  adjustment)  based on  ad-
justed percentages. Minimum  allotment
amounts are determined on the basis of
Table TIT of House Public  Works" Com-
mittee Print 93-28.
 0.0133
  (e) Based  upon  the  percentages  set
 forth in paragraph  (b)  of this section
 and allotment  adjustments  the  sums
 allotted to the States as of January 1,
 1974, are as follows:
                                       § 35.912  Delegation to State agencies.
                                        It Is the policy of the Environmental
                                       Protection Agency to utilize staff capa-
                                       bilities of State agencies to the  maxi-
                                       mum extent practicable  through opti-
                                       mum utilization of available  State  and
                                       Federal resources and to eliminate  un-
                                       necessary dupiteattve reviews  of  docu-
                                       ment* that are required as a part of the
                                       construction, grant process. Accordingly,
Alabama  .  	  	«S3,783, iso  the Regional Administrator may enter
Ala**	  15,059.100  into-a written agreement, where appro-
Arizona 	-		  n. W5.760  prtate with a State agency within his
Artenaa  		  33,860.100  D-eion for  certification by  t&e State
California		457,430,100  £:*    ^ ^e technical and/or admin-

                            SS5  £sks=v r»
       of Columbia		  SB. 233. BOO  granteemay request revtevjytke ..e-
norida           	i»*. 4»8,400  gional Administrator of an adverse  rec-
Oeorgia -	  70,153,000  ommendatton by a State agency.
                            4$:£S:25  §35.915   s*.* ae,*™*™,.*. «f*>«>**«
                           9W. 811,700      priority !»•*.
todtaa*		  6f'!I?-iJS    Construction grants will be awarded
I"**  		  S'XaSS  from  allotments available pursuant to
*•"••*--—	  «IXf2£  5 3S WO in accordance with toe approved
ESS,     :::::::~~:  K:™  iSi?SS3f **«** »'»***:
i£tM----II		  ae. 227, ooo  rived from the  approved State priority
Itarrtend 	  M, 128,100  system.                      —-  ™.
BfaMaoimsetts	  w, 216.900   ' (ttt)  state priority system. The State
Michigan 	188.837.400  Drlority  system  must be  designed to




Mevada       -    —	  18,699.600  subpart  B of this part.
MewH»mV*iirt>	  M,072.960    (W state municipal Aischarffeinven-
Kew Jersey	234.658.200  f   Pursuant to 5 138.43 of this Chapter,
M*w Mnloo		^	  10.870.600  ^  m te agency shall prepare a munici-
itow York		**>, 654,200  ™ discharge inventory which sets forth
Worth Carolina.	  70.494,200  P^J gf^^ state asking of all sig-
      Dakou		'   7^  SSt  municipal discharges (incrudlng,
                                  SS  ior «amPie,  eiigiwe  ««"*£"**
                            M, 136. TOO  systems). Such list must be submitted &s
                            2», 744, loo  part of the annual State program for the
                            20.964.oeo  approval ot the Regional Administrator
 South cwoiian	  M. wa. ooo  ^^e- . 55 557. This State municipal dta-
 a»utb Drto*.	~	    '-     ch^e taventory  shall be updated aa-
                                       nuaay ^ sy^ttwi with the State pro-
 m*h         —	  l«,679.eoo   -rani pursuant to J 35.658 of thto part.
                                          (O Project  vrlority Hrt.  Tb« Stote
                                   wo   agency sh?U prepare a listing of the prtf-
                                5257

eete for which Federal assistance may be
requested. This listing should include a
sufficient cumber of projects to permit
funding to proceed to an orterly fashion
through the period between the next al-
lotment ot construction grant fund* to
the next approval of & revised project
priority list. The Regional Administrator
shan consider for approval that portion
of the project priority list from which
grant awards may be made from cur-
rently  available  allotments, pursuant to
the approval procedures of } 35.556.
   (1) In determining which projects to
fund the State shall consider the severity
of pollution problems, the population af-
fected, the need for preservation of high
quality waters, and national priorities as
well as total funds available, project and
treatment works sequence and additional
factors identified by the State In its pri-
ority  system.  The list of  projects to be
funded should be dteveloped m conjunc-
tion with the municipal discharge inven-
tory.  It  should  be consistent with the
municipal discharge inventory but need
not rigidly follow the ranking  of  dis-
charges in the inventory.  The net result
should be s concentration of projects to
be funded in high  priority  areas.  The
Regional Administrator may require tho
State agency to explain the basis for pri-
ority determination for specific projects
located in low prlwity areas (e.g., court
 orders, critical dischargers on lower pri-
ority segment®,  etc.).
   (2)  The project priority list shall set
 forth, as a minimum, the following in-
 formation for each project:
   (i)  Name of municipality;
    a final and
 conclusive determination of project In-
 ellgibttity has been made by the Regional
 Administrator,  or «il) the project has
 been  removed by the  State  through
 amendment or revision of the list.
    (5) In  order to provide a list of proj-
 ect* which can be funded from available
 allotments ta the period after January 1.
 1974, until the approval of the ne« list,
 a State may add projects to «he approred
 fiscal year t»74 B*t. Projecta for which
 flseal yew *m contract auttKHltf wffl
                               KDtRAL HE01STH, VOt- 3», NO.  2t—MONfrAY, FEBRUARY 11, 1974

-------
6268
     JULES AND REGULATIONS
be utfflwd mint be Identified since proj-
•etomlttaUy funded with fiscal year OTS
tondt wffl be subject to beet practicable
waste  treatment  technology requlre-
menU(see|35.9SQ-4.>.
  (d) Admission. amendment and ap-
proval of project priority Itet Th* proj-
ect Bet shan be submitted and approved
annually u part  of the State Program
and may be amended pursuant to i 88.555
«ad  1 89457.
  (e) Application of additional /unda. If
the State has submitted a project prior-
ity Bat containing more project*  than
could be funded under the original allot-
ment.  anon allocation  of  additional
funda, the RfgVw^ Administrator's ap-
proval of the project priority list will be
extended to the required number of proj-
ects. If there is an «"«•«***««•»* number of
projects on the  list, projects may be
added to the list, pursuant to II S5J5B
and 86.067 to account  for additional
funds which are available.
   (f) PiioUe participation. The Regional
Administrator may not approve a proj-
ect priority list or any significant amend-
ment thereto unless he determines that
a public bwr*"g pursuant to I 85.556 of
this Part has been held on such lint prior
to approval. This public hearing may be
conducted  in conjunction with a regular
public meeting of the State agency, pro-
Tided  that adequate and timely  State-
wide notice of the meeting.  Including
publication of the  proposed project
priority list is given, and attendees at
the meeting are  afforded adequate op-
portunity to express their views concern-
ing the list. A public hearing  is not re-
quired with respect to any ammdnwnt
of the list  (including deletion  of a proj-
ect) which the State agency and the
           Administrator  agree is  not
significant.
   (g)  Reieroe for grant Increases, to
developing the project priority list the
State must make provision for grant in-
creases for  projects awarded grant as-
sistance under this subpart. A reason-
able portion, not less than five percent,
of each allotment for fiscal year 1975 and
•later yean made pursuant  to 135.910
shan be reserved for grant amendments
to increase  grant amounts pursuant to
1135.985-11  and  85J65. A statement
specifying the amount to be reserved for
grant amendments shall be submitted by
 the State with the project priority
 The reserve period must be for not more
 fean eighteen month* after the date
 of inch allotment. Xf any of the reserved
 mrmmit remains, tM« amount may be
 T^tnia^i  for the  funding of n'Mltl"*^
 projects, hi accordance with the pro-
 cedures set forth m paragraph  (e) of
 this section.
   Ch)  Grant  Increases. The Regional
 Administrator may approve a grant In-
 crease, upon application by the grantee.
 and  upon written onpflrmattnn by the
 State tor each application, that the grant
 mcreasi is Justified. The grant increases
 wffl be made from the amount reserved.
 by MM State, for that purpose, from cur-
 rentiy available allotments pursuant to
 paragraph (g) of this section.
  a)  Jtaterve for Step  1  and  Step 2
Projects. In developing the project pri-
ority Us*, the State may (but need not)
make provision for an additional reserve
for grant assistance for Step land Step 8
projects whose selection for funding win
be determined by the State agency sub-
sequent to approval of the project list. A
reasonable portion, but not more than
ten percent, of each  allotment for fiscal
year 1975 and later yean made pursuant
to  185.910  may be reserved for this
purpose. A  statement  specifying the
amount  to be reserved for such  grant
assistance shall be submitted by the State
with the project priority list. The reserve
period may be for not more than eighteen
months after the date of such allotment.
If any of the reserved amount remains,
this amount  may be utilized  for  the
funding of additional projects, hi  ac-
cordance with the procedures set forth
in paragraph (e) of this  section. The
funding  of Step 1 and Step 2 projects
from this  reserve should be consistent
with the approved  State strategy and
should be developed in conjunction with.
but need not rigidly follow, the  rank-
ing in  ftif ^ni^rit/'ipfti discharge inven-
tory.
§35.917  FMlUtfe* PLnminc (Step  1).
   (a) These regulations set forth the fa-
cilities planning required as an  element
of  the  construction of publicly owned
wastewater treatment works and supple-
ment other provisions of  this subpart.
   (b)  Facilities planning  consists  of
those necessary plans and studies which
are directly related  to the construction
of treatment works,  In compliance with
section 301 and  302 of the Act Faculties
Pi«rmy ^flj demonstrate  the need for
the proposed faculties and, by  a  syste-
matic evaluation of feasible alternatives,
win also demonstrate that the proposed
measures represent the most cost-effec-
tive means of meeting established effluent
and water quality goals,  recognizing en-
vironmental and social considerations.
    Faculties  planning, determined by
the Regional Administrator to have been
initiated prior to May 1. 1974. must be
in accordance with  applicable statutory
requirements (see 1135.926-7 and 36.-
935-6), and such other requirements of
tbls subpart as may  be determined to be
appropriate  by the  Regional Adminis-
trator.
   (d) FuU compliance with, the facilities
plar^ng provisions  of th<* subpart wfll
be required prior to award of grant as-
sistance for Step 2 or Step 3 where the
Regional Administrator determines such
Perming; wag initiated  (as determined
pursuant to  II  35.905-4  and 35.925-18)
after April 30,1974.
 Grant a
nee for Step 2 or 3 may be
 awarded prior to approval of a facilities
 plan for the entire geographic area to be
 served by the complete waste treatment
 system of which the proposed treatment
 works will  be an Integral  part if  the
 Regional Administrator determines that
           statutory requirements have
 been met (see 1 35.925-7 and 35 .925-8) ;
 that tfae .facilities planning relevant to
the proposed Step 2 or 3 project has been
substantially  completed;  and ttaat  the
Step 2 or 8 project for which grant as-
sistance is made win not be significantly
affected by the completion of the facil-
ities  plan and wfll be a component part
of the complete system: Provided, That
tfae  applicant  agrees to  complete  the
faculties plan on  a schedule the State
accepts  (subject  to approval  by  the
Regional Administrator),  which sched-
ule shall be Inserted as a  special condi-
tion in the grant agreement.
   (e) After October 81,1974, written ap-
proval of a plan of study (see I 35.920-3
(a>(l)  muet be obtained prior to Initia-
tion of facilities planning.  After June 30,
1975, facilities  planning  may not  be
Initiated prior to  approval of a Step 1
grant or approval of a plan of study ac-
companied by reservation  of funds for a
Step  1  grant  (see  1135.925-18  and
35.905-4).
   (f) Faculties planning guidelines pub-
lished by the Administrator are for ad-
visory Information, only.
   (g) If the  information required to be
furnished as  part of a facilities plan has
been developed separately, ft should be
furnished and Incorporated by reference
in the faculties plan. Planning previously
or collaterally accomplished under local,
State or Federal programs wfll be utilized
 (not duplicated).
£ 35.917-1   Content of Facilities Pluu
   Facilities panning which is  Initiated
after April 30, 1974, must encompass the
following to  the extent deemed appro-
priate by the Regional Administrator:
   (a)  A description of  the treatment
works for which construction drawings"
and spectflcftttops are to  be prepared.
This description shan Include prelimi-
nary engineering data, cost estimates for
 design and construction of the treatment
works, and a schedule for completion of
 design and eonstructtan. The preliminary
 engineering  data may  include, to the
extent appropriate, such information as
 a schematic flow diagram,  unit processes,
 design  data  regarding detention times,
 flow rates, sizing of units, etc.
   (b) A description of the selected com-
plete waste treatment system
-------
                                                    AND REGULATIONS
                                                                        5259
   (3) An evaluation of Improved effluent
 quality attainable by upgrading the op-
 eration and maintenance and efficiency
 of existing facilities as an alternative or
 supplement  to  construction  of  new
 faculties;
   (4) An evaluation of the capability of
 each alternative to meet applicable ef-
 fluent limitations. The treatment works
 design must be based upon not less than
 secondary  treatment as defined by the
 Administrator pursuant to  sections 301
 (a) (1) (B)  and 304(d) (1) of the Act;
   (5) An Identification of, and provision
 for, applying the best practicable waste
 treatment  technology (BFWTT) as de-
 fined by the Administrator,  based upon
 an evaluation  of technologies Included
 under each of the following waste treat-
 ment management techniques:
   (1)  Biological  or physical-chemical
 treatment  and discharge to  receiving
 waters;
   (11) Treatment and reuse; and
   (111) Land application techniques.
 All Step 2, Step 3 or combination Step
 J-S projects for  publicly-owned  treat-
 ment works construction from funds au-
 thorized for any fiscal year beginning
 after June 30, 1974, shall be based upon
 application of  BWPTT, aa  a minimum.
 Where application of BPWTT would not
 meet water quality standards, the facil-
 ities plan shall provide for attaining such
 standards. Such provision shall consider
 the alternative of  treating  combined
 •ewer overflows.
   (6)  An  evaluation of the alternative
. means by which ultimate disposal can be
 effected for  treated  wasteweter  and
 for sludge materials resulting from the
 treatment process, and a determination
 of the means chosen.
   (7) An adequate assessment of the ex-
 pected environmental  Impact of alter-
 natives Including sites pursuant to Part
 • of this Chapter. This assessment shall
 be revised aa necessary to include Infor-
 mation  developed  during  subsequent
 project steps.
   (e) An  Identification of effluent dis-
 charge limitations, or when a permit
 baa been Issued, a copy of (he permit for
 the proposed treatment works as required
 by  the National  Pollution Discharge
 Elimination System.
   (f)  Required comments or  approvals
 of relevant  State,  Interstate, regional,
 and local agencies.
    (g) A brief  summary of any public
 meeting or hearing held during the plan-
 ning process Including a summary of the
 news expressed.                   >'
    (h) A brief statement demonstrating
 that the authorities which will be Imple-
 menting the plan have the necessary le-
 gal, financial,  institutional, and  man-
 agerial resources available to Insure the
  construction,  operation,  and mainte-
  nance of the proposed treatment works.
    (1) A statement specifying that the
  requirements  of  Title VI  of the Clvfl
  Bights Act of  1964 and of Part 7 of tola
         have been satisfied.
835.917-2  State Reaponsibflitfe*.
  (a) Facilities planning areas. Facili-
ties planning should focus upon the geo-
graphic area to be served by the waste
treatment systemCs) of  which toe pro-
posed treatment works will be an Integral
part. The facilities plan should include
that area deemed necessary to prepare
an environmental assessment and to as-
sure that the most cost-effective means
of achieving the established water quality
goals can  be planned  for and imple-
mented.  To assure that .facilities  plan-
ning Initiated after April 30, 1974, sub-
sequent to award  of a Step 1 grant there-
for, and all facilities planning initiated
after October 31, 1974. will Include the
appropriate geographic areas, the State
shall:
  (1) Delineate,  as a preliminary  basis
for planning, the  boundaries of the plan-
ning areas. In the determination of each
area, appropriate  attention, should  be
given to including the entire area where
cost savings, other management advan-
tages, or environmental gains may result
from interconnection of individual waste
treatment systems or collective manage-
ment of such systems.
  (2) Include maps, which shall be up-
dated annually,  showing the  identified
areas and boundary determinations as
part of the State submission under sec-
tion 106 of the Act.
  (3) Consult with local officials In mak-
ing the  area and boundary determina-
tions.
  (b) Facilities planning priorities. The
State shall establish funding  priorities
for  faculties  planning hi accordance
with §§ 35.915 and 35.554-3 (a) (1).
§35,917-3  Federal Muiuace.
  (a)  General Facilities planning Ini-
tiated after April  30, 1974, subsequent
to award of a Step 1 grant therefor, and
all  faculties  planning  initiated   after
October 31, 1974, must be  developed
pursuant to a plan of  study  (see  i 38.-
920-3(a)(l)  approved  in accordance
with  the requirements  of  this subpart
prior to initiation of the facilities plan-
ning. A preappHcatton  conference may
be  held In accordance  with  t 36.930-2.
  (1)  An  applicant  may  apply  for a
grant for a Step  1 project for the prepa-
ration of a facilities plan,  or  any com-
ponent part, and for otber Step  1 ele-
ments  required  to submit a complete
application for  »  Step 2  project  (see
S 35,920-3 State priority  determination in
accordance  with  the   approved   State'
priority system  pursuant  to  I 35.915 la
required for Step  1 projects, lust as in
the case of Step 2 or Step 3 projects.
   (to XttfftbOtty.  Only an   applicant
which is eligible to receive grant  assist-
ance for subsequent phases of construc-
tion (Steps 2 and 3)  and which has the
legal authority to subsequently construct
and manage the facility may apply for
grant assistance for  Step 1. If the area
to be covered by the facilities plan in-
cludes more than one political Jurisdic-
tion, a grant may be awarded for a Step
1  project,  as appropriate,  (1)  to the
Joint  authority representing such Jurls-
tions,  If eligible;  (2)  to one qualified
(lead agency) applicant;  or  (3) to two
or more eligible jurisdictions.
   (c) Payment. Where  a  grant  has
been  awarded for the preparation of a
facilities plan or other Step 1 elements,
the payment  schedule in  the grant
agreement  will provide  for payment
upon completion of  the Step 1 work or
upon  completion  of  specified  tasks
within the scope of  the project.
   (d)  Reports. "Where a grant has been
awarded  for  faculties planning,  the
completion of which is expected to re-
quire more  than one year,  the  grantee
must submit a brief progress report to
the Regional Administrator at three-
month Intervals. The progress report Is
to contain a minimum of narrative de-
scription, and ie to describe progress In
completing  the approved  schedule of
specific tasks for the project.
$35.917-4  Planning gcope and detail.
   (a)  Initially, the geographic scope of
all facilities  planning  initiated  after
October 31, 1974,  or faculties planning
Initiated after April 30,1974, subsequent
to  award of a Step 1  grant therefor,
shall be based  upon the area delineated
by the State pursuant to { 35.917-2, sub-
ject to review by the Regional Adminis-
trator. The Regional Administrator TOSS
make the preliminary delineation of the
boundaries of the planning area, if the
State has not done so, or may revise
boundaries  selected by the locality or
State agency, after  appropriate consul-"
tation with. State and local officials.
   (b) Facilities planning shall  be con-
ducted only to the extent that  the Re-
gional Administrator  determines  to be
necessary to Insure that facilities  for
which grants are  awarded will be cost-
effective and environmentally sound and
to permit reasonable evaluation of grant
applications, and subsequent preparation.
of designs, eonstruotlon drawings and
specificatioBB.
§35.917-5   PaMIc participation.
   (a) Public participation in the facili-
ties planning process shall be consistent
with Part 106 of this chapter. One or
more public hearings or meetings should
be held within the area to obtain public
advice at the beginning of the planning
process. All governmental agencies and
other parties  which are known  to be
concerned or may have an interest in the
plan shall  be  Invited  to participate.
   (b) A  public hearing shall  be  held
prior to the adoption of the facilities
plan by the implementing governmental
unite. This provision shall  apply  to all
facilities planning initiated after April
30. 1974. TOs public  hearing  for the
       Ho. U—Ft. m-
                               FEDEKAl IBGUTH, VOL 39, NO.  29—MONDAY, FEBRUARY 11,  1974

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5260
      tULIS AND  IEGULATIOMS
facilities plan may satisfy the grantee
hearing requirement of Part  9  of thla
chapter.  The  Regional Administrator
may require the planning entity  to hold
additional public hearings,  If needed, to
more fully discuss the plan and alterna-
tives or  to afford  concerned interests
adequate opportunity  to  express  their
views.
  (c) The time and place of the public
hearing shall be conspicuously and ade-
quately announced, generally at least 30
days In advance. In addition, a descrip-
tion of the water quality problems and
the principal alternatives considered In
the planning process shall be displayed
at  a convenient local site sufficiently
prior to the hearing (approximately 15
days).
  osed Stop 1
project, including  a schedule for the
completion of specific tasks; and (iv) an
itemized  description  at tfce estimated
costs for the project;
  (2)  Proposed subagreements, or an ex-
planation of  the intended method oi
awarding aubagreements  for  perform-
ance of  any substantial portion  of the.
project work;
  (3) Required comments or approvals of
relevant  State, local, and Federal agen-
cies  (Including "clearinghouse" require-
ments  of OMB  Circular A-95, promul-
gated at 38 FR  32874 on November 28.
1973).
  (b) Step 2. Preparation of construction
drawings and specifications. Prior to the
award  of a grant or  grant amendment
for a Step 2 project, the following must
have been furnished:
  (DA facilities plan (including an en-
vironmental assessment in accordance
with Part 6 of this chapter) in accord-
ance with !} 35.917 through 36.917-9.
  (2) Satisfactory evidence of compli-
ance with the user charge provisions of
{} 35.925-11 and 35.935-13;
  (3) Satisfactory evidence of compli-
ance with'the industrial cost recovery
provisions  of  5} 36.925-12, 35.928, and
35.935-13, if applicable;
  (4> A statement regarding availability
of the  proposed  site, if relevant;
  (5) Satisfactory  evidence of a pro-
posed or  existing program for compliance
with the Relocation and Land Acquisi-
tion Policies Act of 1970 in accordance
with ; 30.403 (d)  and Part 4 of this chap-
ter, if applicable;
  (6) Satisfactory  evidence of compli-
ance with other applicable Federal statu-
tory and regulatory  requirements (see
Part 30.  Subpart C of this chapter);
  (7) Proposed subagreements or an ex-
planation of  the intended method of
awarding subagreements  for  perform-
ance of  any substantial portion  of the
project work.
  <8) Required  comments  or  approvals
of relevant State, local,  and Federal
agencies  (Including "clearinghouse" re-
quirements  of OMB Circular A-95) if a
grant application has not been previously
submitted.
  
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                                            RULES  AND  REGULATIONS
                                                                        5261
training operation and maintenance per-
sonnel for treatment works throughout
(me or more States;  (2) a written com-
mitment from the State agency or agen-
cies  to carry out  at  such facility a
program of training approved by the Re-
gional Administrator; and  (3)  an engi-
neering report. Including facility  design
data, cost estimates for design and con-
struction of  the  facQity, and a schedule
for   completion    of   design    and
construction.
§ 35.925  Limitations on award.
  Before awarding  Initial grant  assist-
ance for any project  for  a treatment
•works through a grant or grant amend-
ment, the Regional Administrator shall
determine that all of the applicable re-
quirements of { 35.920-3 have been met
and shall further determine:
S 35.925-1   Facilities planning.
  That the  facilities planning require-
ments  set  forth In J§ 35.917 through
35.917-8 have been  met Requirements
set forth  in 8 35.150-1  and  135.150-2
an not applicable.
8 55.925-2  Basin plan.
  Hurt such works are In conformity
with any applicable final basin plan ap-
proved In accordance  with section 303
(e) of the Act.
§ $5.925—3   Priority determination.
  That such works have been determined
to be entitled to priority In accordance
with  135.915, and that the  award of
grant assistance for the proposed project
will not jeopardize the funding of  any
treatment works of higher priority.
S 35.925-4  State allocation.
  That the award of grant assistance for
the project  will  not cause the total of
ail grant assistance awarded to appli-
cants within a State, Including grant in-
creases, to exceed the total of all allot-
ments and reallotments available to such
State pursuant to 8 35.910.
{35.925-5  Funding and other capabil-
    ities.
  That the  applicant has:
   (a)  Agreed to pay  the  non-Federal
project costs, and
   (b)  Has the legal. Institutional, man-
agerial, and financial capability to insure
adequate  construction, operation,  and
maintenance of  the  treatment   work*
throughout  the  applicant's  jurisdiction.
8 35.925-6  Permits.
   THAT if the award  is for a Step 2,
Step  3, or  combination Step  2  and 3
project, the applicant has provided an
identification of effluent discharge limi-
tations or, If available, a copy of a permit
•s required by  the National Pollution
Discharge Elimination System.
 § 35.925-7  Design.
   That the  treatment works design, will
 be On the ease of projects Involving
 Step 2> or has been On the case of proj-
 ects for Step 3) based upon the follow-
 ing:
   (t>)  The design, size, and capacity of
 •neb works  are cost effective and relate
directly to  the  needs to be served  by
such works, including adequate reserve
capacity;
  (b) Such works will meet applicable
effluent  limitations and  attain not less
than secondary  treatment as defined  by
the Administrator pursuant to section
301 (b) (1) (B)  and 304id) (1) of the Act
(See Part 133 of this chapter), subject
to the limitations set .forth in { 35.930-4;
  (c) The  infiltration/inflow  require-
ments of | 35,927 have been met; and
  (d) If the initial grant assistance for
the project is to be awarded from funds
authorized for any fiscal year beginning
after June 30, 1974, subject to the limita-
tions set forth in §35.930-4; (1)  alter-
native  waste  treatment  management
techniques  have  been  studied  and
evaluated to provide for the application
of the best practicable waste treatment
technology over the  life of the  works
consistent wltb  the purposes of Title n
of the Act, and (2) the design has, as ap-
propriate, taken into account and al-
lowed to the extent practicable for the
application of technology, at a later date,
which will provide for the reclaiming' or
recycling of water or otherwise eliminate
the discharge of pollutants.
§ 35.925—8  Environmental review.

  That  the  NEPA requirements (P&rt 6
of this chapter), applicable to the proj-
ect step, have been met. Such compliance
is a basic prerequisite for Step 2, Step 3,
and  combination Step 2 and 3 projects.
An adequate assessment of  expected en-
vironmental impacts, consistent with the
requirements  of the  National Environ-
mental Policy Act of 1969 (42 UJ5.C. 4321
et seq.), fa required as an Integral part
of  facilities  planning  initiated  after
April  30,   1974,  In  accordance  with
{ 35.917-1.
§ 35.925-9  Civil rights.
  That If the award  of grant assistance
is for a project involving Step 2 or 3, the
applicable requirements of Title VI, of
the Civfl  Rights Act of 1964  (See Part
7 of this chapter) have been met.
§ 35.925—10  Operation and maintenance
     program.
  If the award of grant assistance is for
a project involving Step 3, that satisfac-
tory provision has been made by the ap-
plicant  for assuring proper and efficient
operation and maintenance of the treat-
ment works, in accordance with 3 35.935-
12, and that the State will have an  ef-
fective   operation   and   maintenance
monitoring program to assure that treat-
ment works assisted  under  this subpart,
comply with applicable permit and grant
conditions.

§ 35.925-11  User charges.
  That, In  the  case  of grant assistance
awarded after March 1, 1973, for a proj-
ect involving Step 2 or Step 3, an ap-
provable  plan  and schedule of Imple-
mentation  have been developed for  a
system of user charges  to assure that
each recipient of waste treatment serv-
ices within the applicants service area
will pay  Its proportionate  share  of  the
costs of operation and maintenance (in-
cluding  replacement   as   defined  in
S 35.905-17) of all waste treatment serv-
ice  provided by the applicant and the
tipplJcejit must agree  that such  sys-
tem (s) will be maintained. See Appendix
B to this subpart.
§ 35.925-12   Industrial cost recovery.
.  (a) That, in the case of any grant as-
sistance awarded after March 1,1973, for
a project involving Step 2 or  Step  3,
signed letters of Intent have been re-
ceived by the applicant from each sig-
nificant Industrial user to pay that por-
tion of the grant amount allocable to the
treatment of its  wastes. Each such letter
shall also include a statement of the in-
dustrial user's intended period of use of
the treatment works.  A significant In-
dustrial user Is one that will contribute
greater than  10 percent of the design
flow or design pollutant loading of the
treatment works. In addition,  the appli-
cant must agree to require an Industrial
users to pay that portion  of  the  grant
amount  allocable  to  the treatment of
wastes from such users.
  (b) Projects awarded grant  assistance
prior to March 2, 1973 are subject to the
requirements  of § 35.835-5 hi  lieu of
paragraph (a) of this section.
§ 35.925-13   Sewage  Collection System.
  That, If the project Is for, or Includes,
sewage collection system work, such work
(a)  is for replacement or major rehabili-
tation of an existing sewer system pur-
suant to § 35.927-3 (a) and Is necessary to
the total integrity  and performance of
the waste treatment works servicing such
community, or (b) Is for a new sewer sys-
tem in a community In existence on Octo-
ber 18, 1972, with sufficient existing or
planned  capacity  to  adequately  treat
such  collected sewage.  Replacement or
major rehabilitation of an existing sewer
system may be approved only  if cost ef-
fective and must result in a sewer system
design capacity equivalent only to that of
the existing system plus  a reasonable
amount for future growth. A community,
for purposes of this section,  would In-
clude any area  with substantial human
habitation on October 18,1972. No award
may be made for a new sewer system In
a community in existence on October 18,
1972 unless It Is further determined by
the Regional Administrator that the bulk
(generally two-thirds)  of the flow design
capacity through the sewer system will
be for waste waters originating from the
community (habitation) ta existence on
October 18,1972.

§ 35.925-14   Compliance with Environ-
     mental Laws.

  That the treatment works will comply
with  an pertinent requirements of the
Clean Air Act and other applicable Fed-
eral, State and local environmental laws
and regulations.

S 35.925-15  Treatment  of  industrial
     wastes.

  That the allowable project costs do not
Include costs allocable to the treatment
                              FEDERAL REGISTER, VOL  39, NO. 29—MONDAY, FEBRUARY 11,  1974

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5262
      RUlii AND tEOULATtONS
for control or removal of pollutant* In
wastes introduced into  the  treatment
works by Industrial users unless the ap-
plicant is required to remove ouch pol-
lutants introduced from non-Industrial
sources; and that the project is included
in a waste treatment system, a principal
purpose of which project and system is
the treatment of domestic wastes of the
entire community, area, region or district
concerned. A "waste  treatment system",
for purposes of this  section, means one
or more treatment works which provide
Integrated but not necessarily Intercon-
nected waste disposal for the community,
area, region or district. See the pretreat-
ment standards set forth In Part 128 of
this Chapter.
§ 35.925-16  Federal activities.
  That the allowable project costs do not
Include costs allocable to the treatment
of wastes from major activities of the
Federal  Government, which  another
Federal Agency has agreed to pay. Such
Federal agencies may extend,  over a
period of years, their contributions to
support capital costs  incurred by munic-
ipal treatment facilities  which  provide
service to them.
§ 35.925-17  Retained amount*  for  re-
    construction and expansion.
  That the allowable project  costs have
been reduced by an amount equal to the
unexpended balance  of th$ amounts re-
tained Jay the applicant for future recon-
struction  and  expansion  pursuant to
135.928-2, together with  interest earned
thereon,

6 35.925—18  Limitation  upon  project
    CMU Incurred prior to award.
  That project construction has not been
Initiated prior to the approved  date of
Initiation of construction (as defined in
136.906-4), except  as. otherwise pro-
vided in this section.  Generally, payment
IB not authorized for  costs incurred prior
to the approved date  of initiation of con-
struction, which shall be established in
the grant agreement, in accordance with
paragraphs (a),  (b),  and (c)  of  this
section.
  (a) Steps lor 2:
  (1) Mo  prior approval or prior grant
award Is required for Step 1 or Step 2
work initiated prior to November 1,1974;
payment for all such allowable cosU in-
curred after the approved date of initia-
tion of construction Is authorized in
conjunction with the first a,ward of grant
assistance.
  (2) to the case of Step 1 or Step 2
project work Initiated after October 31,
1974, no payment Is authorised for:
   (1)  Step 1  costs Incurred prior to  the
date of approval of a plan to study (see
1138.917 and 36.930-3 (a) (D); and
   (U) Step a costs Incurred prior to the
date of approval of & facilities plan (see
1136.917 and 36.930-3(b)(l»; payment
for all Step l or Step a costs Incurred
after such dates  of approval are au-
thorttad in conjunction with the  first
award of grant a«atetapoe.
   (8) Whew Step 1 or Step a project
work U initiated: after Jon* SO, 1976. n»
grant assistance for the Step 1 or Step 2
project work may be awarded unless such
award precedes Initiation of the proj-
ect work: Provided, That in  tteu  of
award of a Stea l grant after  June 30,
1976,  the State agency may request the
Regional Administrator to reserve funds
for Step 1 grant assistance  (based upon
approval of the plan of study) and  to
defer award of grant assistance for Step
1 work, which award, however, must  in
any event be made within the allotment
period for the reserved funds.
  (b) Step 3: Except as otherwise pro-
vided in this subparagrapb, no grant as-
sistance  for  a Step 3  project may  be
awarded unless such award precedes ini-
tiation of the. Step 3 construction. Ad-
vance acquisition .of major equipment
items requiring long lead times,  or ad-
vance construction of minor portions  of
treatment works, in emergencies or in-
stances where delay could result in sig-
nificant cost increases, may  be approved
by the Regional Administrator, but only
(1) if the applicant submits a written
and .adequately substantiated request for
approval, and (8) if written approval  by
the Regional Administrator Is  obtained
prior  to initiation of  the advance ac-
quisition or advance construction.
  (c)  The approval of a plan of study, a
facilities plan, or of  advance acquisition
of  equipment or advance construction
will not constitute a commitment for ap-
proval ef  grant assistance for a «ib-
sequent treatment works project, but will
allow payment  for  the previously ap-
proved  costs as allowable project costs
upon subsequent award of grant assist-
ance, if requested prior to grant afttard
(see  986.945(a». In  instances Hjvatt
such  approval; is obtained, the applicant
proceeds at its own  risk, since  payment
for such  costs cannot  be  made unless
and until grant assistance for the BTOJ-
ect is awarded.
§ S5.925-19   Section 208: Ag«ncie* and
  , That, pursuant to section 208 (d) of the
Act, after a wast* treatment manage-
ment agency has been designated for an
area, and a final plan for such area has
been approved, the applicant is the des-
ignated agency and the treatment works
project 1s in conformity with such plan.
§ 35.927  Sewer •ystefti  •valoMfoa and
     rehabilitation.
  (a) AQ-.applicants for grant assistance
awarded after July 1. 1973, must demon-
strate to the oatiaf action e of Infiltration/inflow
conditions, which exist in the sewer sys-
tems. Information to  be obtained and
evaluated in the analysis should include,
to the extent appropriate, the following:
  (1) Estimated flow data at the treat-
ment facility,  an significant overflows
and bypasses,  and, if necessary,  flows at
key points within the sewer system.
  (2) Relationship of existing  popula-
tion and Industrial contribution to flows
in the sewer system.
  (3) Geographical and  geological con-
ditions which  may affect the present and
future flow rates or correction  costs for
the infiltration/Inflow.
  (4) A discussion of age, length, type,
materials of  construction and known
physical condition of the sewer system.
  (b) For determination of the possible
existence of excessive infiltration/inflow,
the analysis shall include an estimate of
the cost of eliminating the Infiltration/
inflow conditions. These costs  shall be
compared with estimated total  costs for
transportation and  treatment  of  the
infiltration/Inflow.    Cost-Effectiveness
Analysis Guidelines (Appendix A to this
subpart), which contain advisory infor-
mation, should be consulted with respect
to this determination.
  (c) If the infiltration/inflow analysis
demonstrate*  the existence or  possible
existence of excessive infiltration/inflow
a detailed plan for a sewer system evalu-
ation survey  shall be included in  the
analysis. The plan shall outline the tasks
to be performed in the survey and their
estimated costs.

§55.927-2  -Sewer  tyttem  evaluation
     •urvey.
  (a) The sewer  system evaluation sur-
vey shall consist of a systematic exami-
nation of the sewer systems to determine
the specific location, estimated flow rate,
method of rehabilitation and cost of re-
habilitation versus cost of transportation
and treatment for each defined
of infiltration/Inflow.
                                              «Di. W, MO. a*  MONOAY, MfcftUAtY 11. 1*74

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                                            RULES AND REGULATIONS
                                                                        5263
  (b) Th« results of the sewer system
evaluation survey chaH be summarised
In •> report. In addition, the report shall
Include:
  (DA justification for each sewer sec-
tion cleaned and internally inspected.
  (2) A proposed rehabilitation program
for the sewer systems to eliminate all de-
fined excessive Infiltration/Inflow.
§85.927-5  Rehabilitation.,
  (a) The scope of each treatment worts
project .defined within the Facilities Plan
as being required for implementation of
the Plan,  and for which Federal assist-
ance will  be requested, shall define  (1)
any necessary new treatment works con-
struction,   and (2)  any  rehabilitation
work determined by  the sewer system
evaluation to be necessary for the elimi-
nation of excessive infiltration/inflow.
However,  rehabilitation which should be
a part of  the applicant's normal opera-
tion  and  maintenance  responsibilities
shall  not  be included  within  the  scope
of » Btep 3 treatment works project.
  (b) Grant  affffM*nc»  for a  Step  3
project segment consisting of rehabilita-
tion work may  be awarded concurrently
with Step 2 work for the design of the
new treatment work* construction.
| 85.927—4  Sewer use ordinance.
  Each applicant for grant assistance for
a Step 2,  Btep 3. or combination Steps 2
and 3 project shall demonstrate to the
laUsf action of the Regional Administra-
tor that a sewer we ordinance or other
legally binding requirement will be en-
acted and enforced in each jurisdiction
served by the  treatment works project
before the completion  »f  construction.
Toe ordinance shall prohibit  any new
connections from inflow sources into the
sanitary sewer portions of the sewer sys-
tem and  shall ensure that new sewers
and connections to the sewer system are
properly designed and constructed.
 ( 45.927—5 Project procedure*.
   (a)  State  certification. The  State
 agency may (but need not) certify that
 excessive infiltration/inflow does or does
 not exist. The Regional Administrator
 win determine that excessive infiltration/
 inflow does hot exist on the basis of State
 certification, if he finds that the State
 had adequately established the basis for
 Its certification through submission of
 only the minimum information necessary
 to enable a judgment to be made. Such
 information,could include a preliminary
 review by the applicant or State, for ex-
 ample, d such parameters as per  capita
 design flow, J»tlo of flow to design flow,
 flow noartUap flow estimates, bypasses
 or overfiow^jTor summary  analysis of
 bydrologlcal, geographical, and geologi-
 cal conditions, but this review would not
 usually  be equivalent  to a  complete
 infiltration/inflow  analysis. State  cer-
 tification most be on a proJect-hF-project
 beekjf  the Regional AdmtaMttfeer de-
 Urmine* on the basfcrf State oertiflca-
 tton that the treatment work* to or may
 be subject  to  exceMve  infiltration/
inflow, no Step 3 or Step 3 grant assist-
ance may be awarded except as provided
in paragraph (c) of this section,
 ' (b) Pre-atoard sewer ntptem  evalua-
tion. Generally, except as otherwise pro-
vided in paragraph (c)  of this section, an
adequate sewer system evaluation, con-
sisting of a sewer system analysis and, if
required, an evaluation survey, is an es-
sential element of Step l facilities plan-
ning and is a prerequisite to the award of
Step 2 or 3  grant assistance. If  the
Regional   Administrator    determines
through  State Certification  -or an  in-
filtration/inflow analysis that excessive
inflltration/inflow  does not  exist. Step
2 or 3 grant assistance may be awarded.
If on the basis of  State certification or
the inflltration/inflow  analysis, the Re-
gional  Administrator  determines  that
possible excessive taflltratioa/inflow  ex-
ists, an adequate sewer system evaluation
survey and, if required, a rehabilitation
program must be furnished, except as set
forth in paragraph  (c)  of this section
before  grant  assistance for Btep 2 or  3
can be awarded. A Step 1 grant may be
awarded for the completion of this seg~
ment of Step 1 work, and, upon comple-
tion of Step 1, grant assistance for a Step
2 or 9 project  (for which priority has been
determined pursuant  to {8641$)  may
he awarded,
  (c) Exception. In the event it is deter-
mined by  the Regional Administrator
that the treatment works  would be re-
garded (in the absence of an acceptable
program of correction) as being subject
to excessive or possible excessive Infiltra-
tion/Inflow,  grant  assistance may be
awarded provided that the applicant es-
tablishes to the satisfaction  of the  Re-
gional Administrator that the treatment
works protect for which grant application
is made will not be significantly changed
by  any subsequent  rehabilitation  pro-
gram or will be a component part, of any
rehabilitated system: Provided, That the
applicant agrees to  complete the sewer
system evaluation and any resu^ng re-
habilitation   on  an  Implementation
schedule the  State  accepts  (subject to
approval  by the Regional Administra-
tor) , which schedule shall te inserted as
a special condition hi the grant agree-
ment.  Compliance with this ectoedule
shall be accomplished pursuant to I 86.-
935-16 and 9 30.304 of this chapter.
   (d)  Municipalities may submit the in-
filtration/inflow analysis and when ap-
propriate  the  sewer system evaluation
survey, through the State agency, to the
Regional Administrator for his review at
any time prior to application for a treat-
men^  works  grant. Based on such a re-
view,  the Regional  Administrator shall
provide the municipality with a written
 response indicating either his concur-
rence  or noneoocurrence.  The Regional
AdniBiietrator  must  concur with the
 sewer system evaluation survey plan be-
 fore the work is performed fo* the survey
 to .be an allowable cost.
           ladtttriaieMtrecorery.
   Th* •****» ft* indwrtrtal eo*t recovery
       be jfeMpred by the Bectonal Ad-
ministrator  and shall be implemented
and maintained by the grantee in accord-
ance with 185.936-13 and the following
requirements.

§ 35.928-1  Recovered amounts.
  (a) Each year during the Industrial
cost recovery period, each industrial user
of the treatment works shall pay its share
of the total amount of  the  grant  and
any grant amendment awarded pursuant
to this HUbpart, divided by the recovery
period.
  (b) The industrial cost recovery period
shall be equal to 30  years or the useful
life of the treatment works, whichever
la less.
  (c) Payments shall be made by in-
dustrial users no less often than annu-
ally. The first payment by an industrial
user shall be made not later than 1 year
after such user begins use of the treat-
ment works.
  (d) An industrial  user's  share shall
be based  on all  factors which signifi-
cantly influence the cost of the treatment
works, factors such as strength, volume,
and  delivery  flow  rate  characteristics
shall be considered and included to in-
sure a proportional  distribution of the
grant assistance  allocable  to Industrial
use to all industrial users of the treat-
ment works. As a minimum, an industry's
share shall  be proportional to Its flow,
in  relation to  treatment  works  flow
capacity.
  (e) If there is a substantial change  in
the strength, volume, or delivery flow rate
characteristics introduced into the treat-
ment works by an industrial user, such
user's share shall be  adjusted  accord-
ingly.  .
  (f) If there & an expansion or upgrad-
ing of the treatment works, each existing
industrial user's-share shall be adjusted
accordingly.
  (g) An industrial user's share shall In-
clude only that portion of the grant as-
sistance allocable to its use or to capacity
firmly committed for its use.
  (h) All unallocated treatment works
capacity must conform with the require-
ments of section 204 (a) (5) of the Act.
Cost-effectiveness guidelines  are pub-
lished as  Appendix A to this subpart to.
furnish additional advisory Information
concerning  the  implementation of sec-
tion 212(2) (C) of the Act.
   (1) An Industrial user's share shall not
Include an interest component.  .
g 35,928-2   ReUfaed'ainottttU.
   (a) The  grantee shall retain 50 per-
cent of the amounts recovered from in-
dustrial users. The  remainder, together
with any interest earned thereon,  shall
be returned to the U.S.  Treasury on  an
annual basis.
   (b) A minimum of 80 percent of the
retained amounts, together with Interest
earned thereon, shall be used solely for
the eligible costa 
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                                            MIU& Alt&AiGUJLATIQN&t
meat of  the retained amounts for any
expansion and  reconstruction. The  re-
mainder of the retained amounte mar be
used aa the grantee sees fit.
  (c> Pending use, the grantee shall in-
vast the retained amounte for reconstruc-
tion and expansion In: (l) Obligations of
the XML QoYernment; or (3) obligations
guaranteed as to principal and interest
by the UJB. Government or any agency
thereof;   or  (3)  shall deposit  such
amounts  in accounts fuUy coJlateraUzed
by obligations of the U.S. Government or
by  obligations  fully guaranteed  as  to
principal and Interest by the U.S. Gov-
ernment or any agency thereof.
§ 35.930   Award of grant Mtbunce.
  Approval by the Regional Administra-
tor of an application or  amendments
thereto through  execution of  a  grant
lUif I'liicnl (including a grant amend-
ment) . in accordance wMh i 80 .305  of
this lubchapter, shall constitute a con-
tractual obligation of the United States
for the payment of the Federal share of
the allowable project costs, as determined
             i Administrator, Inf cnna-
tton concerning the approved project fur-
nished  in  accordance  with  135.920-3
shall be deemed to be Incorporated in tb»
grant agreement.
(35.930-1  Type* of project*.
  (a) The Regional Administrator may
award grant assistance for the following
types of projects pursuant to | 36.925;
  (1) Step I. A faculties plan and/or re-
lated elements required to apply for Step
3 grant assistance  (see 1 38.920-3 (b» :
Provided.  That be  determines that the
applicant  has submitted the items re-
quired pursuant to I 38.920-3 (a) ;
  (8) Step 2. Preparation of construction
drawings  and specifications:  Provide*,
That he determines that the  applicant
has submitted the items required pursu-
ant to I 35.920-3 (b) :
  (3) Step S. Building and erection of a
treatment works: Provided. Thai he de-
termines that the applicant  has sub-
mitted  the Items required pursuant to
1 3&MO-4 ; or
  (4) Steps 2 and  S. A combination of
design (Step 3)  and construction (Step
S) for a treatment  works In the case of
grants awarded after March 1, 1973:
  (i>  Where the Rigtoosi Administrator
determines that compelling water quaBty
enforcement  considerations  or
health emergencies  warrant award of
each grant assistance' to exsure expedi-
tions construction  of men  treatment
works, or
   (ID Where th^ HnloneJ *<*>"i"lfltrfttTir
determines that award of such grant as-
sistance wffl r"*"*™*** administrative re-
quirements in the case of projects not re-
quiring a substantial aaawsat of Federal
•ssistenrs: Pwidasyrhe* the award au-
thority proj
(4>tosufai*ettoth»J
that (A) the
deterodBM that the
-r«**r1 the H**»^ narwint  trr itft.980-41
IM; GB> tte mated aiateswlH be eo»-
era! share of the approved dtep 2 work
and win not be contractually obligated to
pay the Federal share of Step 3 project
costs unless and until the pi«"« and spec-
ifications developed  during Step X are
approved; and  (C) funds  fiscally  obli-
gated for Step 3 will be deobllgated unless
two sets of construction drawings  and
specifications suitable for bidding pur-
poses are submitted to the Regional Ad-
ministrator and approved prior to initia-
tion of construction for the building and
erection of the treatment works.
  (fi) Step 2/3: Design/construction of
treatment works  (Steps 2 and 3) : Pro-
vided, That he determines that  toe ap-
plicant has submitted the items required
pursuant to S 35J20-3(d) : And further
provided,  That  such grant  assistance
must be awarded pursuant to EPA guide-
lines for the award of design/construct
projects, and that the  requirements of
such guidelines are met.
  (b) The  Regional  Administrator may
award Federal assistance by a grant or
grant amendment from any allotment or
reanotment available to a State pursuant
to S 38.910 for payment of 100 percent of
any cost of construction of a treatment
works (for not more than one faculty in
any State)  required to train and upgrade
waste treatment works operation  and
maintenance personnel, from one or more
States, pursuant to section  109(b) of the
Act: Provided, That the Federal cost of
any sueh training facility shall  not ex-
ceed $28MOO.
8 S5J30-3  Grant •mount.
  The amount  of grant assistance shall
be set forth in the grant agreement The
grant amoont may not exceed the amount
of rand* available from the State aflot-
       and  reeHotments  pursuant to
 I Sft.910. Grant payments wffl be ttmfted
 to the Federal share of allowable project
 cost* incurred within the grant amount
 or aiy Increases in such amount effected
          grant  ""Wt"^^  in  ae—
         with 1 35.955,  pursuant to the
           payment  schedule included
 ment  of  applicable  effluent discharge
 limitations  (secondary  treatment, best
 practicable waste treatment technology,
 or water quality  effluent  limitations),
 provided that:  (a) The  segment is to be
 a component of an  operable treatment
 works which will  provide  for  achieve-
 ment of the applicable effluent discharge
 limitations, and (b)  a  commitment for
 completion  of  the complete treatment
 works is submitted to the Regional Ad-
 ministrator and is incorporated as a spe-
 cial condition in the grant agreement.
 §35.930-5   Federal share.
,   The grant shall be 75 percent of the
 estimated total cost of construction of
 the project  Approved by the  Regional
 Administrator  in   the grant  agree-
 ment, except as  otherwise  provided in
 8$35.925-15.  35.925-10,  35-925-17.  and
 35.930-1 (b).

 g 35.930-6   Limitation  on Federal chare.
   The grantee must exert fte best efforts
 to perform the project work as specified
 in the grant agreement within the ap-
 proved cost  cefllng.  if  at any  "*»u» ttie
 grantee has reason  to  beUeve  that the
 costs which It expect* to incur in th» per-
 formance of the project win exceed or be
 substantially less than the then approved.
 estimated total project  cost, the grantee
 must notify  ttoe Regional Administrator
 and the State Agency promptly m writ-
 ing to that effect, giving the revised esti-
 mate of sneh total cost  for the perform-
 ance of the project then  or as soon
 thereafter ae practicable, pursuant to 40
 CPB 30.909.  Delay m submission of such
 notice and eaeeas oust saf ormatton may
 prejudice epprov*! of en increase In the
 grant amount. The United  States shall
 not be obligated to pay f or costs incurred
 In excess of the approved grant amount
 or any amendment thereof  until the
in the grant agreement
835.940-3  Gnwtterm.
  The irant agreement  shall establish
the period within which the project must

3«8-4 of this chapter, subject to
Able
 835.990*4   Project .cope.
  The giant agreement must define the
 scope of the project for which Federal
 atsistenoB is awarded TP^^T °** grant.
 The project scope must Include a step or
 an identified segment thereof. With re-
 spect to any gnnt assistance for a treat-
 ment works project which to Initially
 funded frosa funds allocated for any fls-
 eal year beginning  after June SO, 1974.
 prevision must be made for the applica-
 tion ef best practicable waste treatment
 technology ever the me of the treatment
 works. However, a grant may be mad* for
 a segment of Step 3 treatment works
 construction, when that segment m and
 of
 State ha* approved an increase in the
 grant amount- from available allotments1
 and the **«gV«Mtl Administrator has ap-
 proved such Increase through Issuance of
 a written grant amendment pursuant to
 f 135.915  and  M.966.  Grant  payments
 win be mad* puitniant to 135.945.
 § 35.935   Grant eonditfcnu.
   In adilitton to the EPA General Grant
 Conditions (Bubpart C of Part 30 and
 Appendix  A to this subohapter), each,
 treatment works grant shall be subject
 to the following conditions:

 §35.935-1 Mb*JV
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                                            KUII5 ANfr
                                                                        5265
construction of any Step 3 or Step 2+8
project. Performance of Step a and Step
X project work may not be accomplished
tor force account except for (1) Step 1
or Step 9  Infiltration/inflow work for
which prior.written approval has been
obtained in accordance with II 36.027 to
SB.937-0 and  (2) segments of  Step  3
work, the cost of which U estimated to be
under $25,000. The Regional Administra-
tor  will cause appropriate review  of
grantee procurement methods to be made
from time to time.
 <(b>  Nonrettricttve specifications. No
specification for bids or statement of
work In connection with such works shall
be written In such a manner as to con-
tain proprietary, exclusionary, or dis-
criminatory requirements  other  than
those  baaed upon performance, Unless
such requirements are necessary to test
or demonstrate a specific thing or to pro-
vide for necessary interchangeability of
parts  and  equipment, or at least two
brand names or trade names of com-
parable Quality or utility are listed and
an followed by the words "or equal." The
single base bid method of solicitation for
equipment  and part* for determination
of a- low, responsive bidder may not be
utffiMd, V^lth regard to materials. If a
•Ingle material is specified, the grantee
must  be  prepared  to substantiate the
basis for the selection of the  material.
fi 35.935-S   Bonding and fauurance.
  On contracts for the building and erec-
tion of treatment works (Step 3) exceed-
ing $100,000, each bidder must  furnish
a bid  guarantee equivalent  to 6 percent
of the bid price. In addition the contrac-
tor awarded either a design/construct
contract or a  construction  contract for
Step 3 must furnish performance and
payment bonds, each of which shall be in
an amount not less than 100 percent of
the contract  price. Construction con-
tracts ton than $100,000 shall be subject
to State and local requirements relating
to bid guarantees, performance and pay-
ment bonds. Contractors should  obtain
such  construction  insurance (e.g., fire
and extended coverage, workmen's com-
pensation,  public liability and  property
damage, and "all risk" builders risk) as
is customary and appropriate.
|S5.»ftS~4  State mad local law*.
  The construction of the  project.  In-
cluding the letting  of contracts in con-
nection therewith, shall conform to the
applicable  requirements of State, terri-
torial, and local laws and ordinances to
the extent that such requirements do not
conflict with Federal laws and this sub-
ohspter.
 185.935-5  Davb-Bacon   and   related
     ilBMIiis
  In  the case of any project Involving
 Step a, the grantee must consult with the
 Regional Administrator prtbr to issuance
 of invitation for bid* eonaMBtag •ctapu-
 anc* with  Davis-Bacon aad related sta-
                       to i 30.4*3 (a),
8 85.985*6
    tnodsyV
Kqoal
                               oppor-
  Generally, contracts .involving Step 3,
of $10,000 and above, are subject to equal
employment  opportunity requirements
under Executive Order  11246, Including
rules,  regulations  and orders  israed
thereunder 
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KB6
  (1) The user charge system must re-
mit  to ^*T">''^ costs> ff^^TI be
based upon pact experience for existing
treatment works or some other rational
method that can be demonstrated to be
  (3) The  grantee shall  review  user
charges annually and revise them peri-
odically to reflect actual treatment works
         and »*»*<** tamMt«a costs.
  (4) Hie user charge system must gen-
erate sufficient revenue to offset the cost
of an  treatment works  operation and
maintenance provided by the grantee.
  (6) The user charge system must be
incorporated in one or more municipal
legislative enactments or other appropri-
ate authority. XT the project is a regional
treatment works accepting wastowaters
from treatment works owned by others.
then the  subscribers receiving  waste
treatment services from the grantee shall
have adopted user charge systems. Such
user charge systems shall also be incor-
porated  in  the appropriate  mnrilrlpal
legislative enactments or other appropri-
ate authority.
   Upon approval of a grantee's sys-
tem(s)  of user charges  and industrial
cost  recovery, implementation «"tf main-
tenance of such approved system(s) and
implementation schedules therefor, shall
become a condition  of the grant and the
grantee shall be subject to the provisions
with respect  to  non-compliance with
grant  conditions  of 1 30 404 of this
chapter.
  (d) The grantee  must maintain such
records as  are necessary to  floc1""^*
such compliance.
  (e) Guidelines containing Illustrative
examples of acceptable user charge and
Industrial cost recovery systems may be
consulted for advisory Information. The
user charge guideline* are contained in
Appendix B to this subpart.  Cost Re-
covery  Guidelines  an published sep-
arately and may be obtained from the
XPA Regional Office.
9 35.955-14  Final inspection.
  The grantee must notify the Regional
Administrator through the State Agenry
of the completion of Step 3 project con-
struction. The Regional Administrator
«h»P cause final inspection to be made
within 60 days of the receipt of the no-
tice. Upon completion of the final inspec-
tion and upon determination by the Re-
gional Administrator that the treatment
works  have • keen  satisfactorily con-
structed in accordance with  the grant
agreement the grantee mar make a re-
quest for  final payment pursuant to
|36.94S(e>,

£15.935-15
  It is the pottcy of the Environmental
Protection Agency that grantees must
utilise to the maximum practical extent
small and minority  busmeesee in pro-
curement  under grants involving Steps
1. 2, or 3. to the case of grants of $10,-
000,000 or more grantees must institute
an  affirmative program for the utiliza-
tion of small and  minority businesses
prior to award of the grant.
5 $5.935-16  Sewe*
    evolution/
ordinance
  The grantee most obtain the approval
of the  Hsgtnrml Admtoistrater of  its
sewer mse ordinance, pursuant to 1 35.-
937-4 of this subpart. The Reftottal Ad-
ministrator shan not pay more ****" 80
percent of the Federal share of any Step
3 project antes* he has approved the
grantee's sewer use ordinance, and the
grantee is complying with the sewer sys«_
tern evaraatton and rehabilitation ecbed-
nle tocorperatod in the grant agree-
ment pursuant to I
635,935-17  Training faeflity.
  If assistance has been provided for the
construction  of  a treatment works re-
quired to train and upgrade waste treat-
ment works operation and maintenance
personnel, pursuant to 1 36.930-1 (b) and
3»J»a-3 , the grantee must provide as-
surance that the treatment work* will be
operated as such a tramtes; Jtefltty for
a petted cc at toast ten years, upon com-
ptotton of construction.

§35.937  Contracts  for  penonal  mod
    prof eMiooal Mrvic«*.  [iea«*v*d]

(35.934  Conrtrnctioa   oMttraeto   of
S3S.W8-1  AppBcabffitr.
  This  section  applies  to  contracts
awarded by grantees  for any  Step 3
project or Step 2+3 project, except per-
sonal and professional service contracts.
C35.93S-3  INrforniaacefcT contract.
  It to the poQoy of the Environmental
Protection Agency to encourage free and
open competition with regard, to project
work performed by contract. The project
work, shan be performed under one or
more contracts awarded by the grantee
to private firms, except for force account
work authorized by I 35.»S5-2. The fol-
lowing sections define EPA policy for the
Implementation  of the  procurement
standards set forth in Office of Manage-
ment and Budget Circular No. A-102. At-
tachment O (printed at 38 PR 21345,
August 7.  1973). Grantee procurement
systems should as  a minimum  provide
for the following:
S 35.938-3  Type of contract.
  Each contract shall be either a fixed-
price (lump sum) contract or fixed-rate
(unit price> contract, or a combination
at the two, unless the Regional Adminis-
trator gives advance written approval for
the grantee to use some other method of
contracting. The ooet-plus-a-percentage
of cost method eg contracting shall not
be used.

§ 35.938-4  Formal advertising.

  Each  contract shaH be  awarded  by
means of formal advertising,  unless ne-
gotiation is permitted In accordance with
1 35.938-5. Formal advertising shall be In
accordance with the following:
  (a)  Adequate   public  notice.  The
grantee wffl cause adequate notice to be
given of the solicitation  by, publication
in newspapers or journals of general cir-
culation, beyond the grantee's locality
(Statewide,  generally) Inviting  bids on
the project work, and stating the method
by which bidding documents may be ob-
tained and/or examined. Where the esti-
mated prospective  cost  of  Step  3 con-
struction to  ten minion doctors or more,
such notice must generally be published.
in trade journals of Nationwide distri-
bution. The grantee should in addition
solicit bids  directly from bidders, if It
ituttnttttnn a Udders list.
  Cb) Adequate ttme tor preparing Wds.
Adequate ttme, generally not less than
30 days must be allowed between the
date when  public  notice pursuant  to
paragraph (a)  of this  section to first
published  and the  date by which bids
must be submitted. Bidding  documents
                "^""" and  drawings)
               shan be available to prospective bidden
               from the date when such notice to first
               published.
                  (e)  AAttptoU &44i*ff document*.  A
               reasonable number of bidding documents
               (Invitations for bid) shan be prepared
               by grantee and shan be furnished upon
               request on  * first-come,  first-served
               basis. A complete set of bidding docu-
               ments shall  be maintained by grantee
               and shan be available for inspection and
               copying by  any party. Such bidding
               documents shall Include;
                  (1) A complete statement of the work
               to  be   performed, including necessary
               drawings and specifications, and the re-
               quired  completion schedule. (Drawings
                                             vailable,
               for  Inspection  instead  of  being fur-
               nished.);
                  (2) The terms and conditions  of the
               contract to be awarded;
                  (3) A clear explanation of the method
               of bidding and the method of evaluation
               of bid prices, and the basis and method
               for award ot the contract;
                  (4) Heeponsibflity requiremente or cri-
               teria which will be employed in evalua-
               ting bidders; Provided, That an experi-
               ence re
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                                                   AND tEGUlATlOWS
                                                                        5267
Mitownts, agencies or «mptojiM is or win
b* » ptrty to tbii InrltaUaa tor Bid* or any
nttiting contract^

and
  (8)  A copy of | 35.938 and I 35.089.
    Sealed lHd«. The grantee ahall pro-
vide for bidding by Mated, bid and for
the safeguarding of bids received  until
public opening.
  (e)  Amendments  to bidding tfocu-
mente. if grantee desire* to amend any
bait of the bidding documents (Includ-
ing drawings  and specifications) during
the period when bids are being prepared,
the amendments shall be communicated
In writing to all firms who have obtained
bidding  documents In time to be  con-
sidered prior to the  bid  opening time;
when appropriate, the period for submis-
sion of bids shall be extended.
  (f)  Bid modifications,  A  firm which
has submitted a bid shall be allowed to
modify or withdraw its bid prior to the
time of bid opening.
  (g)  Public  opening of bids.  Grantee
•ball provide  for a  public  opening of
bids at  the place, date  and time an-
nounced  In the bidding documents.
  (h)  Award  to the low  responsive, re-
rjxmrfbZe  bidder.   (1)  After  bids are
opened,  they  shall   be  evaluated  by
grantee  in accordance with the meth-
ods and criteria set forth in the bi The procurement IB for material
or services where the prices are estab-
lished by  law,  for  technical items or
equipment requiring standardisation and
Interchangeabllity of parts with exist-
ing equipment, for experimental, devel-
opmental or research work, for highly
perishable materials, resale, or for tech-
nical or specialized  supplies requiring
substantial Initial investment for manu-
facture. Any negotiated procurement un-
der this paragraph  (f) of this section,
other than for perishable materials must
be approved in advance by the Regional
Administrator; or
  (g) Negotiation of contracts Is other-
wise atuhorlzed by Federal law, rules, or
regulations or  approved prior to  the
procurement by the Regional  Admin-
istrator.
§ 35,939   Compliance with procurement
     requirements.
  (a) Grantee responsibility. The grantee
is primarily responsible for selecting the
low. responsive, and responsible bidder in
accordance with applicable requirements
of State, territorial, or local laws or ordi-
nances, as well as the specific require-
ments of Federal law or this subchapter
directly  affecting  the procurement  (for
example, the nonrestrictive specification
requirement of S 35.935-2 (b) or the equal
employment  opportunity requirement of
t 35.935-6) and for the Initial resolution
of complaints based upon alleged  viola-
tions. If complaint is made to the Re-
gional Administrator concerning an al-
leged violation  of Federal  law or  this
subchapter In the procurement of con-
struction services or materials for a proj-
ect Involving Step 3, the complaint will
be referred to the grantee for resolution.
The grantee must promptly  determine
each such complaint upon its merits per-
mitting  the  complaining party as  well
as  any  other interested  party   who
may  be adversely affected, to state in
writing or at a conference the basis for
their views concerning the proposed pro-
curement. The grantee must  promptly
•furnish to the complaining party and to
other affected  parties, by certified mall.
a written summary of its determination,
substantiated  by an  engineering  and
legal opinion,  providing  a Justification
for its determination. See paragraph (c)
of the section for applicable time Hmlta-
ttons.
   (b) Regional Administrator responsi-
bility. A party  adversely affected by an
 advene determination of a grantee made
pursuant to paragraph (a) of this sec-
tion, concerning an alleged violation of
a specific  requirement of Federal law or
 this  subchapter  directly  affecting the
procurement of construction services or
material for a  project involving Step  3
may request -the Regional Administrator
 to review an adverse determination, sub-
 ject to-ttoe time limitation .aet forth in
 par*fre«tt (o) of this section. A eopy of
the written adverse determination and
supporting Justification shall be  trans-
mitted with the request for review, to-
gether with a statement of the specific
reasons why the proposed  grantee pro-
curement action would violate Federal
requirements. The Regional Administra-
tor will afford both the grantee and the
complaining party,  as well  as any 'other
Interested party who may  be adversely
affected, an opportunity to present the
basis  for their views in writing or at a
conference, and he shall promptly state
In writing  the basis for his determina-
tion of the protest. If the  grantee pro-
poses  to award the contract or  to ap-
prove  award  of  a specified sub-item
under the contract to a bidder other than
the low bidder, the grantee will bear the
burden of  proving that Its determina-
tion concerning responsiveness of the low
bid is In accordance with Federal law
and this subchapter; or, if the  basis for
the grantee's determination Is a finding
that the low bidder is not responsible, the
grantee must  establish and substantiate
the basis for its determination and must
establish that such determination has
been  made In good faith. The written
determination by the  Regional Admin-
istrator shall  be promptly furnished  to
the grantee and to the complainant.
   (c)  Time   limitations.   Complaints
should be made pursuant  to paragraph
(a) of this section  as early  as pos-
sible  during the procurement process.
preferably prior to Issuance of an  invita-
tion for bids to  avoid  disruption  of the
procurement process: Provided, That a
complaint  authorized by paragraph  (a)
of this section must be mailed by cer-
tified mall (return receipt  requested)  or
delivered no later than five working days
after  the bid opening.  A reauest  for re-
view by the Regional Administrator pur-
suant to paragraph (b) of this  section
must  be received by the Regional Admin-
istrator within one week after the com-
plaining party received the grantee's ad-
verse determination.
   
-------
 5268
or partial termination, of the grant pur*
•uant  to 185.950,  (2)  fo»VglMttar for
grant assistance .which could otherwise
be awarded under this subchapter or (S)
diaallowanoe   at  project  eoste  (see
|35.940-2(J» Incurred In violation at
the provisions of thta subehapter or ap-
plicable Federal laws, as determined by
the Regional Administrator. The grantee
may appeal adverse determinations  by
tiie Regional Administrator in accord-
ance with  the Disputes Article (Article
7 of Appendix A to Subchapter B of thl»
title).
§ 35.940  Determination  ol  allowable
    COM*.
  The grantee will be paid, upon request.
In accordance with { 35.945, for the Fed-
eral share  of all necessary, costs within
the scope of the approved project and
determined to be  allowable to accord-
ance with  8 30.701 of this chapter, this
subpart, and  the grant agreement.
§35.940-1  Allowable profeeteoou.
  Altocable project costs of the grantee
which are reasonable ana necessary are
allowable. Necessary costs may include,
but are not limited to:
  (a) Costs of salaries, benefits, and ex-
pendable  material  incurred   by  the
grantee for the  project, except as pro-
vided In 1940-2(g).
  (b) Costs  under  construction  con-
tracts.
  (c)  Professional and consultant serv-
ices.
  (d) Facility planning directly related
to the treatment works.
  (e)  Bewer   system   evaluation
(§35.627).                           •
  (f) Project  feasibility and engineer*
Ing reports.          .
  (g)  Costs required pursuant to the
Uniform Relocation Assistance and Real
Property Acquisition PoBde* Act of 1070.
(42 U.8.C. 4621 et sen,, 4951 et seq.). and
regulations issued thereunder (Part 4 of
this chapter).
  (h) Costs of complying with  the Na-
tional Environmental Policy Act, includ-
ing costs of public  notices and hearings.
  (1) Preparation ol construction  draw-
ings, specifications, estimates, and con-
struction contract documents.
  (j) Landscaping.
  (k)  Supervision  of construction work,
  (1) Removal and relocation or replace-
ment of utilities, toe which the grantee
ialeganydbhgatedtopay,
  (m)  Materials acquired, consumed, or
expended specifically for the project.
  r|1p*if <""l supplies necessary to
initiate plant operations.
  (o) Development and preparation of
an operation  and iHarHten>nn> manual.
  (p) Project  Wenttncatton
(| 90.604-4 of thta chapter).
    (b)  Bonus payments not  legally re-
  quired for eompletton of construction in
  advance  of  »  contractual  completion
  date;
    (c)  Personal  injury """utrrft^n  or
  damages  arising  out of  the  project,
  whether  determined  by   adjudication.
  arbitration, negotiation, or otherwise;
    (d)  Pines and penalties resulting from
  violations of, or failure to  comply with,
  Federal, State, or local laws;
    (e) Costs outside the scope of the ap-
  proved project;
    (f>  Interest  on bonds  or any  other
  form of Indebtedness required to finance
  the project costs;
    (g)  Ordinary operating expenses  of
  local government, such as salaries and
  expenses of a mayor, city council mem-
  bers, or city attorney, except  as provided
  In §35.940-4.
    (h)  Bite  acquisition  (for  example,'
  sewer  rights-of-way, sewage treatment
  plant sites, sanitary landfills and sludge
  disposal areas) except as otherwise pro-
  vided in 135.940-3(a).
    (1) Costs for which payment has been
  or wiU be received under another  Fed-
  eral assistance program.
    (J)  Costs  of equipment or material
  procured In violation of t 35.fM-4(h).
  § 35.940-3  Coats allowable, if approved.
   Certain  direct costs are  sometimes
  necessary for the contraction of a treat-
  ment works and are allowable if reason-
  able and approved by the Regional Ad-
  ministrator hi t*¥» grant agreement or a
  grant  amendment. Bach costs include,
  but are not limited to:
    (a)  Land acquired after October 17,
  1919, that will be an Integral  part of the
  treatment process or that will be  used
  for ultimate disposal of residues result-
  ing from  such  treatment  (for  example,
  land for spray irrigation  of- sewage
  eflhwit).    .
    (b>  Acquisition of an operable portion
  of a treatment works.
    (e)  Hate  determination studies re-
  quired pursuant to i 35.925-11.
  § 35.949-4  Indirect coat*.
   Xndinot costs of the grantee shall be
  allowable  to accordance wtth  an indirect
-cost agreement negotiated and  Incor-
  porated In the  grant agreement. An In-
  direct east agreement must Identify those
  cost elements   aUewable   pursuant  to
  135*40-1. Where the benefits derived
  froSD a grantee's Indirect services cannot
  be readily Determined, a lamp- sum for
  ovexheed may be negotiated based upon
  a determination that such amount win
  be joprcxlmately the same as the actual
                at *«<«y be Incurred.
1*5.940-3  Ui
  Costs which are net
construction of a
ect an unallowable.
   Itw grantee should seek to resolve any
           relating to east aDowabfllty or
           at Its earnest opportunity (if
 posrtble. prior to execution of the grant
 agreement). Final tictei 11 ifnattmis con-
Grant Conditions (Appendix A, Bubchap-
terB of this title)..
§ 35.945  Grant payment*.
  The grantee shall be paid the Federal
share of allowable costs Incurred within
the scope of an approved project, subject
to the limitations of 8! 35.925-18,  35.-
930-5, and 35.930-9; Provided, That such
payments must  be in accordance with
the  payment  schedule  and  the  grant
amount set forth to the grant agree-
ment and any amendments thereto. The
payment schedule will provide that pay-
ment for Step 1  and Step 2 project work
win  be made only on the basis of com-
pletion of the step or. If specified  in the
payment schedule to the grant agree-
ment, upon completion  of specific tasks
within the  step. All allowable costs In-
curred prior to initiation of construction
of the project must be claimed In the
application for grant assistance for  that
project prior to the award of such as-
sistance or no subsequent payment win
be made for such costs.
  (a) Initial request for payment. Upon
award of grant  assistance, the grantee
may request  payment  for the unpaid
Federal share of actual  or estimated al-
lowable project  costs incurred  prior to
grant award subject to the limitations of
S 35.925-18, and  payment for such costs
shall be made to accordance with the
negotiated payment schedule Included in
the grant agreement.
  (b) Interim requests for payment. The
grantee may submit  requests for pay-
ments for allowable costs incurred in ac-
cordance with the negotiated payment
schedule included to the grant agree-
ment. Upon receipt of a request for pay-
ment, subject to  the limitations set forth
to  ! 30.602-1  of this subchapter  and
8535.935-12,  35.935-13, and  35.935-10,
the Regional Administrator shall cause
to be disbursed from available appro-
priated funds such amounts as are nec-
essary so that the total amount of Fed-
eral payments  to the grantee for the
project is equal  to the Federal share of
the actual  or estimated allowable proj-
ect costs Incurred to date, as  certified
by the grantee in Its most recent request
for payment. Generally, payments will be
made within  20  days after receipt  of a
request for payment.
  (c) Adjustment. At any time or times
prior to final payment under the grant,
the Regional Administrator may  cause
any  requeet(s)  for payment  to be re-
viewed or audited. Each payment there-
tofore made shall be subject to reduction
for amounts Included in the related re-
quest for payment which are found, on
the baste of such review or audit, not to
constitute allowable costs. Any payment
may be reduced for overpayments or to-
creased for underpayment* on preceding
requests for payment.
  (d) Refunds, rebate*, credits, etc.  The
Federal share of any refunds,  rebates,
credits, or frthfr amounts
but are not limited to:
  (a) Basin or areawlde  planning not
directly related to the project;
                                        interest thereon) accruing to or received
                                        by the cranket with respect to the proj-
                                        ect, to the- extent feat they are properly
                                        aUocable to east* for wfatoh the grants*
            »«. MO. ?•— MONDAY. .
                                                                                 H74-

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                                                RULES  AND REGULATIONS
                                                                              5269
has  been paid under a grant, must be
credited to the current State allotment
or paid to the United States. Reasonable
expenses incurred by the grantee for the
purpose of securing such refunds, re-
bates, credits, or other amounts shall be
allowable under the grant when approved
by the Regional Administrator.
  (e)  Final payment. Upon completion
of final inspection pursuant to § 35.935-
14 and approval of the request for pay-
ment designated  by the grantee as the
"final payment request" and upon com-
pliance by the grantee with all applicable
requirements of this subchapter and the
grant agreement, the Regional Adminis-
trator shall cause to be disbursed to the
grantees any  balance of allowable proj-
ect cost which has not been paid to the
grantee. The final payment request must
be submitted by  the  grantee promptly
after final inspection. Prior to final pay-
ment under the grant, the grantee must
execute and deliver an assignment to the
United States,  in form and  substance
satisfactory to the Regional Counsel, of
the  Federal share  of refunds,  rebates,
credits or other amounts (including any
interest  thereon) properly allocable to
costs for which the grantee  has  been
paid by the Government under the grant,
and   a release  discharging  {he  United
States, its officers, agents, and employees
from  all  liabilities,  obligations,  and
claims arising out of the project work or
under the grant, subject only to such ex-
ceptions which may be specified in the
release.
§ 35.950  Suspension  or termination of
     grants.
  Grants may be suspended,  in accord-
ance with § 30.902 of this subchapter and
Article 4 of the General Grant  Condi-
tions (Appendix A  to this subchapter),
or terminated, in  accordance with § 30.-
903 of this  subchapter and Article 5 of
fee General Grant  Conditions (Appen-
dix  A of this subchapter). The State
agency shall be concurrently notified in
writing of any such  suspension or termi-
nation action.
§ 35.955  Grant amendments to  increase
     grant amounts.
  Grant agreements may be amended in
accordance with § 30.901 of this chapter
witti  respect  to project changes which
have  been approved in accordance  with
S 30.900  and  §35.935-11  of  this  sub-
chapter : Provided, That no grant agree-
ment may be amended to increase the
amount  of  a  grant   unless  the State
agency has approved the grant increase
from  available State allotments  and re-
allotments in accordance with § 35.915.
§ 35.960  Disputes.
  Final determinations by the Regional
Administrator concerning ineligibility of
projects for which priority has been de-
termined in accordance with § 35.915 and
final determinations by the Regional Ad-
ministrator concerning disputes arising
under a grant pursuant to this subpart
shall  be final and conclusive unless ap-
 pealed by the applicant or grantee within
 30 days from the date of receipt of such
 final determination in accordance with
 the "Disputes" article of General Grant
 Conditions (Article^ 7 of Appendix A to
 this subchapter).

                APPENDIX A

   COST EFFECTIVENESS ANALYSIS GUIDELINES

  a. Purpose.—These guidelines provide ad-
 visory information concerning basic method-
 ology for determining the most cost-effective
 waste treatment management  system  or the
 most cost-effective component part of  any
 waste treatment management system.
  b. Authority.—The  guidelines  contained
 herein are provided pursuant to section 212
 (2) (C) of the Federal Water Pollution Con-
 trol Act Amendments of 1972 (the Act).
  c. Applicability.—These guidelines  apply
 to  the development of plans for and  the
 selection  of  component parts of a  waste
 treatment management system for which a
 Federal grant  is  awarded  under  40 CFB,
 Part 35.
  d. Definitions.—Definitions of terms used
 in these guidelines are as follows:
  (1) Waste  treatment management sys-
 tem.—A system used to restore the integrity
 of  the  Nation's  waters.  Waste  treatment
 management  system is used synonymously
 with complete waste treatment system as de-
 nned in 40 CFR, Part 35.905-3.
  (2) Cost-effectiveness analysis.—An analy-
 sis  performed  to determine  which  waste
 treatment management system  or compo-
 nent part thereof will result in the minimum
 total resources costs over time to meet the
 Federal, State or local requirements.
  (3) Planning  period.—The  period  over
 which a waste treatment  management sys-
 tem is evaluated for cost-effectiveness. The
 planning period  commences  with the  Initial
 operation of the system.
  (4) Service life.—The period of time dur-
 ing which  a  component of a waste  treat'
 ment management system will be capable of
 performing a function.
  (5) Useful  life.—The  period of  time dur-
 ing which  a  component of a waste  treat-
 ment management system will be required to
 perform a  function  which  is necessary to
 the system's operation.
  e. Identification, selection and screening
 of alternatives—(1) Identification of  alter-
 natives.—All feasible alternative waste man-
agement systems shall be initially identified.
These alternatives should  include  systems
discharging  to  receiving  waters,  systems
 using land or subsurface disposal techniques,
 and systems employing  the  reuse of waste-
water. In identifying alternatives, the  possi-
bility of staged  development of the system
 shall be considered.
  (2) Screening  or alternatives.—The iden-
 tified alternatives shall be systematically
 screened to define those capable of meeting
 the  applicable  Federal, State,  and local
 criteria.
  (3)    Selection   of   alternatives.—The
screened alternatives shall be  initially ana-
 lyzed to determine which systems have cost-
effective potential and which should be fully
evaluated  according to  the cost-effectiveness
 analysis  procedures  established  in  these
 guidelines.
  (4)  Extent of effort.—The extent of effort
 and the level of sophistication used in  the
cost-effectiveness analysis should reflect the
 size and importance of the project.
  I. Cost-effective analysis  procedures—(1)
 Method, of  Analysis.—The  resources  costs
 shall be evaluated through the use of. oppor-
 tunity costs. For those resources that can be
expressed  in monetary  terms, the  Interest
(discount) rate established In section (f) (5)
will be used. Monetary costs shall be calcu-
lated  in  terms of present worth values  or
equivalent annual values over the planning
period as defined in section  (f)(2). Non-
monetary  factors (e.g.,  social  and environ-
mental) shall be accounted for descriptively
in the analysis In order to determine their
significance and impact.
  The most cost-effective alternative shall be
the  waste treatment  management  system
determined  from the analysis to have  the
lowest present worth and/or equivalent an-
nual value without overriding adverse non-
monetary costs and to realize at least identi-
cal minimum benefits in terms of applicable
Federal, State,  and local standards for  ef-
fluent quality, water quality,  water reuse
and/or land and subsurface disposal.
  (2) Planning period.—The planning period
for the cost-effectiveness analysis shall be 20
years.
  (3) Elements  of costs*—The costs to  be
considered shall Include the total values of
the resources atributable to the waste treat-
ment management system or  to one of  Its
component parts. To determine these values,
all monies necessary for capital construction
costs  and operation and maintenance costs
shall be identified.
    Capital construction costs used in a cost-
effectiveness  analysis shall Include all con-
tractors' costs of construction including over-
head and profit; costs of land, relocation, and
right-of-way   and  easement  acquisition;
design engineering, field exploration, and en-
gineering services during construction; ad-
minlstrative  and  legal services  including
costs of bond sales; startup costs such as op-
erator  training; and  interest during con-
struction. Contingency allowances consistent
with the level of complexity and detail of the'
cost  estimates shall be  Included.
  Annual  costs for operation and mainte-
nance  (including  routine  replacement  of
equipment and equipment parts)  shall  be
included  in  the cost-effectiveness analysis.
These costs shall be adequate  to ensure  ef-
fective and dependable operation during the
planning period for the system. Annual Costs
shall be divided between fixed 'annual costs
and costs which would be dependent on the
annual quantity of wastewater collected and
treated.
  (4) Prices.—The various components  of
cost shall be calculated on the basis of mar-
ket prices prevailing at the time of the cost-
effectiveness analysis. Inflation of wages and
prices shall not be considered In the analysis.
The  implied  assumption is  that  all prices
involved will tend to Change over time  by
approximately the same percentage. Thus,
the results of the cost effectiveness analysis
will not be affected by changes In the gen-
eral level of prices.
  Exceptions  to the foregoing  can be made
if there is justification for expecting signifi-
cant changes In the relative prices of certain
items during the planning period. If such
cases are identified, the expected change  in
these prices  should be made to reflect their
future relative  deviation from the  general
price level.
  (5)  Interest (discount) rate.—A rate of 7
percent per year will be used  for the cost-
effectiveness, analysis until the promulgation
of the Water Resources  Council's "Proposed
Principles and Standards for Planning Water
and Related  Land Resources." After promul-
gation of the  above regulation, the rate
established for water resource projects shall
be used for the cost-effectiveness analysis.
  (6)  Interest during construction.—In cases
where capital expenditures can be expected
to be fairly uniform during the construction
                                FEDERAL REGISTER, VOL 39,  NO. 29—MONDAY,  FEBRUARY 11, 1974

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5270
      RULES AND REGULATIONS
period, Interest during construction may b»
calculated «s Ix% PxO where:
I=the Interest (discount)  rate  In Section
     1(5).
P=th» construction period in years.
C=the total capital expenditures.

  In cases when  expenditures will not be
uniform, or when  the  construction period
will be greater than three years, Interest dur-
ing construction  shall  be calculated on a
year-by-year basis.
  (7) Service life.—The service life of treat-
ment works for a cost-effectiveness analysis
shall be as follows:
Land	._  Permanent
Structures	30-50 years
    (includes  plant  buildings,
    concrete process  tankage,
    basins,  etc.;  sewage collec-
    tion and conveyance  pipe-
    lines;  lift   station   struc-
    tures; tunnels; outfalls)
Process equipment	16-30 years
    (Includes   major   process
    equipment  such as clartfler
    mechanisms,  vacuum filters,
    etc.: steel  process  tankage
    and chemical storage facili-
    ties;  electrical  generating
    faculties on standby service
    only).
Auxiliary equipment	10-15 years
    (Includes  instruments  and
    control facilities;   sewage
    pumps and electric motors;
    mechanical equipment such
    as compressors, aeration sys-
    tems,   centrifuges,  chlorl-
    nators,  etc.;  electrical gen-
    erating facilities on  regular
    service).

  Other service  life periods will be acceptable
when sufficient justification can be provided.
  Where a  system'or a  component Is  for
Interim service and the anticipated useful
life is less than the service  life, the useful
life shall be substituted for the service life of
the facility In the analysis.
  (8)  Salvage  value.—Land  for treatment
works, including  land* used  as part of the
treatment process or for ultimate disposal of
residues, shall be  assumed  to have a salvage
value at the end of the planning period equal
to its prevailing market value at the time of
the analysis. Right-of-way easements shall
be considered to  have a  salvage value not
greater than the  prevailing market value at
the time of the  analysis.
  Structures will be assumed to  have a
salvage value if there Is a use for such struc-
tures  at the «nd  of the planning period. In
this case, salvage value  shall be estimated
using ftralghtllne depreciation during the
service life of the treatment works.
  For phased additions of process equipment
and auxiliary equipment, salvage value at the
end of the planning period may be estimated
under the tanut ooiEditloiis and on the same
basis  as described above for structures.
  When the anticipated useful life of a facil-
ity is less than 90 years  (for analysis of In-
terim facilities), salvage value can be claimed
for equipment when it can be clearly dem-
onstrated that  a specific  market  or reuse
opportunity will exist.
      CHABGES FOB  OPBATIOH AMD MJUMTB-
  HANCZ  OF  PVBUCI.Y
  (a) Purpose.—To set forth advisory infor-
mation concerning user charges pursuant to
Section 904 of the Federal  Water Pollution
Control Act Amendments of 1872, PL 92-600,
hereinafter referred to as the Act. Applicable
requirements are set forth in Subpart E (40
CFBPartSS).
  (b) Authority.—The Authority for estab-
lishment  of  the user charge  guidelines is
contained in section«804(b) (2) of the Act.
  (c)  Background.—Section  204(b)(l)  of
the Act provides that after  March  1,' 1973,
Federal grant applicants shall be awarded
grants only after the Regional Administrator
has  determined that  the  applicant  has
adopted or will adopt a  system of  charges
to assure that each recipient of waste treat-
ment  services  will  pay  its proportionate
share of the costs of operation and main-
tenance, including replacement. The intent
of the Act with respect to user charges Is
to distribute the cost of operation and main-
tenance of publicly owned treatment works
to the pollutant source and to promote self-
sufficiency of treatment works with respect
to operation and maintenance  costs.
  (d) Definitions.—(1)   Replacement.—Ex-
penditures  for   obtaining   and  installing
equipment,  accessories,   or  appurtenances
which are necessary to maintain the capacity
and  performance during  the service  life of
the treatment works  for  which such works
were  designed  and constructed. The  term
"operation  and  maintenance"   includes
replacement.
  (2) User charge,—A charge levied on users
of treatment works for the cost of operation
and  maintenance of such works.
  (e) Classes  of users.—At least two basic
types oS user charge systems  are common.
The  first  Is to charge each user a share of
the treatment works operation and mainte-
nance costs based on bis  estimate of meas-
ured  proportional contribution  to the  total
treatment works loading. The second  system
establishes classes for users  having  similar
Bows and waste water  characteristics;  I.e..
levels of biochemical oxygen demand, sus-
pended solids, etc. Each class is then assigned
its share of the waste treatment works opera-
tion and maintenance costs based on the pro-
portional  contribution of the  class  to ttie
total  treatment works loading. Either  system
is in compliance with these  guidelines.
  (f) Criteria against which to determine
the  adequacy of user  charges.—The  user
charge system shall be approved by the Re-
gional Administrator and shall be  main-
tained by the grantee  in accordance with the
following requirements:
  (1) The user charge  system  must result
in the distribution of the cost of operation
and maintenance of treatment  works  within
the grantee's jurisdiction to each user (or
user class) In proportion to such user's con-
tribution  to the total wastewater loading of
the   treatment   works.  Factors  such  as
strength,  volume,  and  delivery flow rate
characteristics shall be considered and In-
cluded as the basis for the user's contribu-
tion to ensure a proportional distribution of
operation and maintenance  costs to  each
user (or user class).
  (3) For the first year of operation,  opera-
tion and  maintenance costs  shall be baaed
upon past experience  for existing treatment
works or  som* other rational  method that
can be demonstrated to be applicable.
  (3) The grantee shall review user charges
annually and revise them periodically to re-
flect actual treatment works operation and
maintenance costs.
  (4) The user charge system must generate
sufficient  revenue to  offset tine cost of all
treatment works operation and maintenance
provided by the grantee.
  (6) The user charge system must be incor-
porated in one or more municipal legislative
enactments or other  appropriate, authority.
If-the project Is a regional treatment works
accepting  wastewaters from treatment works
owned by others, then the  subscribers re-
ceiving waste treatment  services from  the
grantee shall have adopted user charge sys-
tems in accordance with this guideline. Such
user charge systems shall also  be Incorpo-
rated in the appropriate  municipal legisla-
tive   enactments  or  other   appropriate
authority.
  (g) Model user charge systems. — The user
charge system adopted by the applicant must
result in the distribution of treatment works
operation and maintenance costs to each user
(or user class) In approximate proportion to
his contribution  to  the total  wastewater
loading of the treatment works. The follow-
ing user charge  models can be used for this
purpose; however, the applicant  Is not lim-
ited to their use. The symbols used  in the
models are as defined below:
  CT= Total  operation  and  maintenance
         (O.&M.) costs per unit of time.
  Cu=;A user's  charge for O. &  M. per unit
        of time.
  C.=A surcharge for wastewaters of exces-
        sive strength.
  Vc^O&M   cost  for   transportation  and
        treatment of a unit of  wastewater
        volume.
  V»= Volume contribution from a user per
        unit of time.
  VT= Total volume contribution  from  all
        users per unit of time.
  Bc=Q&M  cost for treatment of a unit of
        biochemical oxygen demand (BOD) .
  B.= Total BOD contribution from  a user
        per unit of time.
  BT= Total BOD contribution from all users
        per unit of time.
   B = Concentration of  BOD from a  user
        above a base level.
  Sc = O&U  cost for treatment of a unit of
        suspended solids.
  S«= Total suspended  solids  contribution
        from a user per unit of tune.
  ' 8 = Concentration of SS from a user above
        a base level.
  Pc = O&M  cost for treatment of a unit of
        any pollutant.
  P. = Total contribution of any pollutant
        from a user per unit of time.
  PT= Total contribution of any pollutant
        from all users per unit of time.
   P= Concentration of any  pollutant from
        a user above a base level.
  (1) Model No. I.— If the treatment works
is primarily flow dependent or if the BOD,
suspended solids, and other  pollutant  con-
centrations  discharged by all users are  ap-
proximately equal, then user charges can be
developed on a  volume, baeia in  accordance
with the model below:

                   Ci
                Cu=— (Vu)
                    VT

  (2) Model No. 2.— When BOD, suspended
solids, or other pollutant concentrations from
a user exceed the range of concentration of
these pollutants in normal domestic sewage,
a surcharge added to a base charge,  calcu-
lated by means of Model No. 1, can be levied.
The surcharge can be computed by the model
below:
C. = [
                  -f S«(S) +P«(P) JV.
  (3) Model No. 3. — This model Is commonly
called the "quantity/quality formula" :

        C.=VcV»+BcB.-fS*S«+PcP.

  (b) Other  considerations. — (1)  Quantity
discounts to large volume  users will not be
acceptable. Savings resulting from economies
of scale should  be apportioned  to all users
or user classes.
  (2) User charges may be established based
on a percentage of the charge for water usage
only in cases where the water charge is based
on a constant cost per unit of consumption.

   (FB DOC.74-3207 Filed 2-8-74; 8 : 45 ami
                                 FEDHAL  REGISTER, VOL 39,  NO. 29—MONDAY, PEBtUARY 11,  19*

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APPENDIX C - LIST OF REGIONAL OFFICES

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                              APPENDIX C
Environmental Protection Agency
Region I
JFK Federal Building
Room 2203
Boston, Massachusetts  02203
Environmental Protection Agency
Region VI
1600 Patterson Street
Suite 1100
Dallas, Texas  75201
Environmental Protection Agency
Region II
26 Federal Plaza
Room 908
New York, New York  10007
Environmental Protection Agency
Region VII
1735 Baltimore Avenue
Kansas City, Missouri  64108
Environmental Protection Agency
Region III
Sixth and Walnut  Streets
Philadelphia, Pennsylvania   19106
Environmental Protection Agency
Region VIII
1860 Lincoln Street
Suite 900
Denver, Colorado  80203
Environmental  Protection  Agency
Region  IV
1421  Peachtree Street,  N.E.
Atlanta, Georgia   30309
Environmental  Protection  Agency
Region  IX
100 California
San Francisco,
Street
California  94111
 Environmental  Protection Agency
 Region  V
 230  South  Dearborn Street
 Chicago,  Illinois  60604
 Environmental  Protection Agency
 Region  X
 1200  Sixth  Avenue
 Seattle,  Washington  98101
  .S. GOVERNMENT PRINTING OFFICE'. 1975 Z10-81-/1 1-3

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