in tied states
Environmental Protection
Agency
January 1981
Office of Water
Program Operations (WH-547)
Washington DC 20460
OPA 142/0
How to Obtain
Federal Grants
to Build
Municipal Wastewater
Treatment Works

Second Edition
                   MCD-04

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Note

To order this publication, MCD-04, "How To Obtain
Federal Grants To Build Municipal Wastewater
Treatment Works".

General Services Administration (8FFS)
Centralized Mailing List Services
Bldg. 41, Denver Federal Center
Denver, CO 80225

Please indicate the MCD number and title of publication.
Acknowledgement

This handbook, including the revisions reflected in
this edition, was prepared by the Municipal
Construction Division, Office of Water Program
Operations, Office of Water and Waste Management.
  The initial draft was prepared, under contract, by
ESEI (formerly Ecol Sciences, Inc.); Albert T. Bowyer
was the firm's project officer. Albert L. Pelmoter,
Chief, Program Policy Branch, Municipal
Construction Division was project manager with
responsibility for the overall development of the
handbook.

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Foreword

The community which applies for construction grant
funds is participating in the massive program of water
pollution control and abatement to which this Nation
committed itself with the passage of the Federal Water
Pollution Control Act of 1972 (Public Law 92-500).
This legislation, however wide-ranging, has as its
central theme the importance of cooperation among
local, State and Federal agencies charged with the
responsibility for restoring and preserving the quality
of our Nation's waters. In building and operating
sewage treatment facilities, localities are fulfilling their
responsibility under this Act.
  In providing Federal funds for the construction of
certain treatment  facilities, the Act requires that the
parties to this undertaking follow a series of steps
designed to insure that the best possible project results
from the time, effort and money expended.
  This handbook has been prepared  to assist
municipal officials in this effort. It contains a
summary of the requirements of the Construction
Grants Program and the responsibilities that each
participant bears, omitting much of the detail. For
that reason, applicants are urged to establish and
maintain ongoing contracts with their consultants and
the State and Federal agencies administering water
pollution control  programs. The more grantee officials
understand and involve themselves in the grants
process, the more likely the project they are pursuing
will be planned, designed, built and operated with the
least amount of disruption and to the satisfaction of
all concerned.

Henry L. Longest II
Deputy Assistant Administrator
for Water Program Operations

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  Contents
   Foreword  i
   Contents  ii
   Introduction  iv
   Appendix  39
   Flow Chart  44 (Fold Out)

   Put I. Summary  1

   1.0  PreappUcation Information  1
   I.I  Applicant Eligibility  1
   1.2  Types of Projects  1
   1.3  Priority List  2
   1.4  Three Step Construction Grant Process  2
   1.5  Water Quality Management Plans  2
   1.6  Facilities Planning  2
   1.7  Municipal NPDES Permits  2
   1.8  Clearinghouse^)  3
   1.9  Preapplication Conference  3

   2.0  Step 1 Application   3
   2.1  Plan of Study  3
   2.2  Clearinghouse Comments   3
   2.3  Application, EPA Form 5700-32  3
   2.4  Selection of Professional Engineer 4

   3.0  Step 1: Facilities Planning  4
   3.1  Discharge (Effluent)  Limitations  4
   3.2  Existing and Future Situations   4
   3.3  Alternatives   4
   3.4  Innovative and Alternative Technology  5
   3.5  Municipal Pretreatment Program  5
   3.6  Infiltration/Inflow (I/I) Analysis   5
   3.7  Sewer System Evaluation Survey   5
   3.8  Environmental Evaluation  5
   3.9  Public Input   5
   3.10 Historical and Archaeological
       Investigations  5
   3.11 Selected Alternative  5
   3.12 Intermunicipal Agreements 6
4.0  Step 2 Application  6
4.1  Facilities Plan 6
4.2  Application, EPA Form 5700-32  6
4.3  Selection of Professional Engineer  6
4.4  Value Engineering 7
4.5  Project Schedule  7
4.6  User Charges  7
4.7  Treatment of Industrial Wastewater   7
4.8  Sewer Use Ordinance   7
4.9  Civil Rights Act of 1964  7
4.10 The Uniform Relocation and Land
     Acquisition Policies Act of 1970  7
4.11 Intermunicipal Agreements 7
4.12 Public Input  8

5.0  Step 2 Plans, Specifications and
     Estimates  8
5.1  Project Design  8
5.2  Project Specifications  8
5.3  Project Cost Estimates   8
5.4  Continuing Work 9

6.0  Step 3 Application 9
6.1  Plans, Specifications and Estimates   9
6.2  Applications, EPA Form 5700-32  9
6.3  Selection of Professional Engineer  10
6.4  Intermunicipal Agreements 10
6.5  Municipal Pretreatment Program 10
6.6  Public Input  10
6.7  Assurances  10
6.8  Payment Schedule 11

7.0  Step 3 Construction  11
7.1  Advertising for Bids  11
7.2  Receipt and Review of Bids 11
7.3  Change in Grant Amount  11
7.4  Protests  11
7.5  Award of Construction Contracts 11
7.6  Preconstruction Conference  12
7.7  Construction  Schedule  12
7.8  Change Orders  12
7.9  On-Site  Inspection 12
7.10 Grant Payments  12
7.11 Audits  12
11

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Part II. Explanation of Summary
Items  13

 8.0  Preapplieation Information  13
 8.1  Applicant Eligibility  13
 8.2  Type of Project  13
 8.3  Priority List  14
 8.4  Three Step Construction Grant
      Process  14
 8.5  Water Quality Management  Plan   15
 8.6  Facilities Planning  15
 8.7  Municipal NPDES Permits  16
 8.8  Clearinghouse(s) 16

 9.0  Step 1  Application   16
 9.1  Plan of Study  16
 9.2  Application, EPA Form 5700-32  17
 9.3  Selection of Professional Engineer 17

10.0  Step I  Facilities Planning   18
10.1  Discharge (Effluent) Limitations  18
10.2  Alternatives  18
10.3  Innovative and Alternative
      Technology  19
10.4  Municipal Pretreatment Program   20
10,5  Infiltration/Inflow (I/1) Analysis   20
10.6  Sewer System Evaluation Survey   21
10.7  Environmental Evaluation   21
10.8  Public  Input  22
10.9  Historical and Archaeological
      Investigations 23
10.10 Selected Alternative  23
10.11 Intermunicipal Agreements  23

11.0  Step 2  Application  24
11.1  Value Engineering  24
11.2  User Charges  24
11.3  Treatment of Industrial Wastewater  24
11.4  Sewer Use Ordinance 25
11.5  The Uniform Relocation and Land
      Acquisition Policies Act of 1970  25
12.0  Step 2 Plans, Specifications
      and Estimates 25
12.1  Project Specifications  25
      12.1.1   Contract Documents  26
      12.1.2  Supplemental General
      Provisions of Specifications  26
      12.1.3  Equal Employment
      Opportunity  26
      12.1.4  Davis Bacon Act  27
      12.1.5  Flood Disaster Protection
      Act of 1973   27
      12.1.6  Bonding/Insurance 27
      12.1.7  Technical  Provisions of
      Specifications  28
12.2  Plan of Operation   29
12.3  Payment Schedule  29

13.0  Step 3 Construction  30
13.1  Advertising for Bids  30
13.2  Receipt and Review of Bids 30
13.3  Changes in Grant  Amount  31
13.4  Protests  31
13.5  Award of Construction Contracts  31
13.6  Preconstruction Conference  31
13.7  Change Orders  32
13,8  On-Site Inspection  32
13.9  Grant  Payments   34
13.10 Audits 34

14.0  Other Prqgram Elements  35
14.1  Allowable and Unallowable Costs 35
14.2  Force Account  35
14.3  State Delegation  36
14,4  Land Treatment   36

15.0  References   37
15.1  P.L. 95-217 The Clean Water Act
      of 1977  37
15.2  Code of Federal Regulations  37
15.3  Other Publications   38
15.4  Program Requirements Memoranda 38
                                                                                           ill

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                       Introduction

                       This handbook was written to give public officials a
                       little help in understanding the "in's and out's" and
                       "do's and don'ts" involved in carrying out the
                       Construction Grants Program. Municipal officials
                       obviously have many on-going responsibilities over
                       and above constructing a sewage treatment facility to
                       keep them busy. To accommodate these officials, EPA
                       has summarized the many regulations, guidelines,
                       technical bulletins and policy statements which govern
                       the Program in this relatively brief and concise
                       handbook.
                          Although municipalities will retain a competent
                       consultant to assist them with program details, the
                       ultimate responsibility for project undertakings lies
                       with the municipal official. The construction of a
                       sewage treatment facility is a community enterprise
                       and, while the professionals can do the work, it is the
                       community which benefits and, of course, pays.
                       Representatives of that community therefore need to
                       know some of the "basics" involved in the program so
                       that maximum benefits can be derived from the
                       monies spent.
                          The information in this handbook will enable
                       municipal officials to be more than "sidewalk
                       superintendents." With it, they can ask questions which
                       will help to insure that their consultants are doing
                       the job they are paid to do and to assure that
                       documents necessary for grant awards are started and
                       completed with a minimum loss of time and effort.
                          The first section of the handbook is a summary of
                       items which the applicant must know, do or arrange
                       to be done. Included with these items are reference
                       numbers which call attention to a more detailed
                       discussion of the topic in the second section. The
                       items are  presented in  chronological order,  starting
                       with project planning and continuing through final
                       payment and audit.
                          The handbook does not cover every situation nor
                       reference every pertinent regulation. It does, however,
                       give responsible officials the background needed to
                       become personally involved and to insure that their
                       project moves freely through the grant process.
                          The first edition of this handbook was published in
                       May, 1976, and took into account laws, regulations
                       and policy in effect as of July 1, 1975. The  Clean
                       Water Act of 1977 mandate'd significant changes in
                       the conduct of the Construction Grants Program
                       necessitating the publication of this  second  edition.
IV

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Parti
A brief summary of information needed by local
officials to obtain a construction grant from the
Environmental Protection Agency to build wastewater
treatment facilities.
1.0    Preapplication Information
NOTE: The following are items of general information which need to be
understood before applying for a grant,

                                                              ef.
1.1   Applicant Eligibility	8.1

To be eligible for a construction grant the applicant must be a public
body created under State law and meet a three-part test: (1) have as one
of its principal responsibilities the treatment, transport, or disposal  of
liquid wastes of the general public in a particular geographic area; (2)
have the legal authority to subsequently construct and manage the
proposed facility; and (3) be the designated agency identified in an
approved Water Quality Management (WQM) Plan (where applicable).

1.2   Types of Projects	8.2

The following types of projects are eligible for an EPA grant of 75% of
the allowable project costs.
  a.  Sewage Treatment Plants—new, expanded, upgraded. (Must provide
at least secondary treatment.)
  b.  Interceptor Sewers—new or rehabilitated.
  c. Sewage Collection Systems—new, expanded or rehabilitated,
including pumping stations: the community must have been in existence
before October 18, 1972.
  d.  Small Alternative Wastewater Systems—new, expanded or
rehabilitated on-site systems (septic tanks or other sub-surface disposal
systems) or other alternative collection systems serving principal
residences, small commercial establishments or clusters of households.
  e. Combined Sewer Overflow Control Systems—reducing, storing,
treating, separating or disposing of wastewaters from combined storm
and sanitary sewer systems.

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                                                                 Ref.

1.3  Priority List	8.3

Annually, each State is allotted a specific sum of money for construction
grants. Projects are ranked in priority order by the States, on the basis
of specific criteria, to determine which will receive these funds. An
applicant's project must be on the State priority list to qualify for a
grant.

1.4  Three Step Construction Grant Process	8.4

The construction grants process provides for funding projects in three
steps—using three consecutive, but separate, grant projects:
  Step 1—A grant under which preliminary planning and engineering
          ("Facilities Planning") is performed.
  Step 2—A grant under which detailed plans and specifications are
          prepared.
  Step 3—A grant under which the facilities are constructed.
  Step 2+3—In the case of small communities, a single grant can be given to
          perform Steps 2 and 3.

1.5  Water Quality Management Plans	8.5

The applicant's project must conform with recommendations contained in
a Water Quality Management (WQM) plan. A WQM plan  is made up of
a Basin  Plan—which sets forth the level of treatment required by each
sewage treatment plant in  each drainage basin of the State; and, an
Areawide Waste Treatment Management plan—which addresses, in
addition to pollution problems from sewage treatment plants, population
growth, storm water and agricultural runoff problems and other
considerations necessary for a unified comprehensive approach toward
abating water pollution.

1.6  Facilities Planning	8.6

The preparation of a facilities plan, sometimes called a 201  plan, is the
first step (Step  1) in the construction grant process. Here the specific
requirements of a planning area, defined by  the State, is examined, the
water pollution problem is identified, alternatives are evaluated and a
solution is recommended.  Public participation in the decision making
process is required through public meetings.

1.7  Municipal NPDES Permits	8.7

Permits are issued by the States or EPA for existing or new waste
discharges under the National Pollution Discharge Elimination System
(NPDES).  Meeting the treatment requirements and construction schedule
specified in the permit frequently prompts a municipality to apply for a
construction grant.

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                                                                 Ref.

1.8  Clearinghouses)	8.8

The Federal Office of Management and Budget (OMB), in Circular A-95,
requires that all projects being financed in whole or in part with Federal
funds be reviewed by a central State and/ or regional clearinghouse.

1.9  Preapplication Conference	N/A

To make certain that applicants clearly understand the  requirements they
must meet to obtain construction grants, a preapplication conference is
held. At this conference, the roles of the consultant, the State and the
EPA in the grant process are explained. Most preapplication conferences
are conducted by the State; therefore, applicants should contact their
State agency as soon as possible to arrange for one. (A listing of State
Offices appears in the Appendix.)
   As noted, the grant process for building sewage treatment facilities has
three steps. The first step, which is very involved, will be discussed in
considerable detail at the conference. Requirements pertaining to a Step 1
project grant are summarized below.
2.0   Step  1  Application

NOTE:  To apply for a Step 1 grant, the following items must.be submitted
to the State agency. Application forms and kits are available from the
State and are usually furnished at the preapplication conference.
2.1  Plan of Study	9.1

A brief description is given of the scope of work to be undertaken in
planning the project, including problem areas and issues to be resolved.
Also, itemized costs of preparation must be shown and a work schedule
must be included. The public is to be notified and consulted during the
development of a plan of study.
2.2  Clearinghouse Comments	8.8

Comments concerning the proposed project are to be obtained from the
State and/or regional clearinghouse in accordance with paragraphs 1.8
above and 8.8 below.

2.3  Application, EPA Form 5700-32	9.2

Instructions for completing the application are printed on the form.  Part
II-Section B, site information, is not required for a Step 1 grant. Part V,
Assurances, should be read carefully. A resolution authorizing the official
representative (Mayor, Councilman, etc.) to act on behalf of the applicant
must be included with the submission.

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                                                                 Ref.

2.4  Selection of Professional Engineer	9 J

Copies of proposed contracts, or an explanation of how contracts for
professional services will be awarded, must be submitted to EPA for
review. Minority Business Enterprise (MBE) and Women Business
Enterprise (WBE) goals must be considered.

NOTE: The application and accompanying documents must be reviewed
and approved by both the State agency and EPA. DO NOT proceed with
any work on the project until written approval to do so is received from
EPA or the State. No payment may be made for work undertaken
without this approval  Applicants will be notified in writing when a grant
is approved and instructions will be provided as to procedures for
accepting the grant and executing the Grant Agreement (EPA Form
5700-20).  The executed Grant Agreement constitutes a contractual
obligation between the Federal government and the grantee.
   Each Federally assisted project is subject to audit; therefore, it is
important that accurate financial records be kept. These records must
clearly identify all costs pertaining to the EPA grant assisted project,
must cover all funds received and disbursed,  must distinguish  between
allowable and nonallowable project costs, and must  be made available to
EPA upon request.
   Similarly, engineering consultants are required to maintain accurate
records identifying project costs claimed for Federal participation.
3.0   Step 1  Facilities Planning
NOTE: After receiving a Step I grant, the grantee begins to prepare a
facilities plan as prescribed in the law and Federal regulations. Key
elements of this plan are listed below.
3.1  Discharge (Effluent) Limitations	10.1

The State or EPA establishes the level of treatment necessary for each
project and designates the type and quantity of pollutants which may be
discharged to a stream or applied to the land.

3.2  Existing and Future Situations	 N/A

The plan must describe the existing planning/ service area and forecast
what the area will be like in the future.

3.3  Alternatives	10.2

Once the size and scope of the water pollution problem is defined, the
plan must show the various  solutions to the problem with an evaluation
of each alternative. All costs impacting the average citizen should be
itemized for each alternative.

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                                                                  Ref.

3.4  Innovative and Alternative Technology	10.3

In addition to evaluating conventional forms of sewage treatment,
innovative and alternative (I & A) forms of treatment (which reclaim,
recycle or reuse sludge or effluent; reduce costs or energy) must also be
evaluated.  Grants may be increased to 85% of the Federal share where an
innovative or alternative process is used.

3.5  Municipal Pretreatment Program	10.4

For projects which will treat both domestic and industrial wastewater, a program
must be established to insure that industrial wastes are adequately treated by the
producing industries before being discharged into the municipal system. The cost
of constructing capacity to treat, store or convey industrial wastewater from
large dischargers will not be eligible for Step 3 grant assistance after Novem-
ber 15,1981.

3.6  Infiltration Inflow (I/I) Analysis	10.5

For projects with existing sewers, the plan must show the  amounts of
groundwater (infiltration) or stormwater (inflow) leaking into the sewer
system and how much of this leakage can be eliminated  economically.

3.7  Sewer System Evaluation Survey (SSES)	10.6

In those  cases where the infiltration/inflow analysis indicates excessive
sewer leakage, investigations need to be carried out  to locate the specific
leaks and to estimate the cost of correction.

3.8  Environmental Evaluation	10.7

As  a part of the facilities plan, each alternative must be  evaluated from
an environmental standpoint. The environmental impact is weighed along
with the  engineering, financial, social and economic impacts of each
alternative. Where conflicts exist, reasonable trade-offs are made.

3.9  Public Input	10.8

An active public participation program must be held to obtain the
public's view of the proposed project. When  necessary, accommodating
revisions to the proposed project are made.

3.10  Historical and Archaeological Investigations	10.9

Federal and State laws require the protection of valuable historic and
archaeological sites. Each State has a State Historic Preservation Officer
(SHPO)  who will assist in defining the  limits of any historical or
archaeological investigations required.

3.11  Selected Alternative	10.10

After all  the above factors are considered, one plan  is  selected and
described in detail.

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                                                                 Ref.
 3.12  Inter municipal Agreements	10.11

 Where more than one municipality is to be served by the project, it will
 be necessary for the lead municipality to negotiate service agreements.
 Achieving agreement may be time consuming; therefore, such action
 should be initiated as early as possible. Service agreements must be
 drafted prior to the approval of the facilities plan and be completed
 before a Step 2 grant may be awarded.

 NOTE:  The completed facilities plan is submitted to the regional and/or
 State clearinghouse(s) for comments. If negative comments are received,
 an explanation must be given as to how the conflicts will be resolved.
 The completed facility plan and clearinghouse comments (and
 explanation if needed) are submitted to the State agency.  DO NOT
 undertake additional project work until instructions to do so are received
from EPA.
   Grantees will be notified in writing of facility plan approval and will be
 given instructions for applying for a Step 2 grant.
   Payments for work completed under the grant are to be requested,
 using EPA Form SF-271, in accordance with the payment schedule in the
 Grant Agreement. (See  13.9)
4.0   Step 2  Application

NOTE: The following items are necessary to apply for a Step 2 grant and
are to be submitted to the State agency. For relatively small communities
(population 25,000 or less) with small projects ($4 million or less), a
combination  Step 2+3 grant may be awarded with the intent of
accelerating the grant process (see 8.4).

4.1  Facilities Plan	8.6

An approved facilities plan, as described under Step 1, is required as a
part of the Step 2 application. If it has already been approved by EPA,
only a copy of the approval letter need be submitted.

4.2  Application, EPA Form 5700-32	9.2

Each item should be completed in accordance with  instructions. Of
particular importance is the need to clearly explain the source of the local
share of project costs (general taxes, sewer revenue  funds, etc.). A copy of
the resolution authorizing the official representative (Mayor, Councilman,
etc.) to act on behalf of the applicant and a statement regarding
availability of the proposed site, when applicable, must be attached.

4 J  Selection of Professional Engineer	93

Copies of proposed contracts, or an explanation  of how contracts for
professional services will  be awarded, must be included. Consideration
must be given to MBE and WBE goals.

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                                                                  Ref.
4.4  Value Engineering	11.1

Where construction costs are expected to exceed $10 million a value
engineering analysis of the proposed project must be prepared
concurrently with the project design.

4.5  Project Schedule	N/A

A project progress schedule identifying dates for project start, completion
and significant milestones must be submitted as part of the application
package.

4.6  User Charges	11.2

Grantees are required to develop a user charge system, applicable to all
users, fully covering the cost of operating and maintaining the treatment
works. The system is to be developed during Step 2 and must be
approved before a Step 3 grant can be awarded.

4.7  Treatment of Industrial Wastewater 	11.3

The cost of constructing capacity to treat, store or convey industrial wastewater
from large industrial users is ineligible for grant assistance unless a Step 2 grant
is awarded before May 15,1980; or, a Step 3 grant is awarded before Novem-
ber 15,1981. Therefore, when grantees receive Step 2 and Step 3 grants after
these dates, their construction costs, which are attributable to building that part
of their system which will accommodate discharges from large industries, are
ineligible.

4.8  Sewer Use Ordinance	11.4

A copy of existing sewer use ordinances, or a letter of intent that such
ordinances will be enacted, are to be included. The ordinances must
require new connections  to be properly designed, constructed and free
from stormwater flow.

4.9  Civil Rights Act of 1964	N/A

EPA Form 4700-1, Assurance of Compliance, and EPA Form 4700-4,
Compliance Report, are  to be completed.

4.10  The Uniform Relocation and Land Acquisition
      Policies Act of 1970	11.5

If the project will require the acquisition of private property or the
displacement  of persons, a statement or resolution indicating compliance
with this Act must be submitted.

4.11   Intel-municipal Agreements	10.11

Where two or more municipalities are involved, proposed or executed
intermunicipal agreements must  be submitted with the application for a
Step 2 grant.

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                                                                      Ref.

     4.12  Public Input	10.8

     Where continuing public input is necessary, the application package must
     include a public participation work plan including costs and a schedule of
     activities (see paragraph 3.9 above).

     NOTE:  The application and accompanying documents must be reviewed
     and approved by both the State agency and EPA. DO NOT proceed with
     any work on the project until instructions to do so are received. Grantees
     will be notified in writing when a grant is approved and instructions will
     be provided as to procedures for accepting the grant and executing the
     Grant Agreement (EPA Form 5700-20).
     5.0   Step 2 Plans, Specifications and  Estimates

     NOTE: A Step 2 grant is awarded to enable the applicant to design the
     project and otherwise ready it (plans, specifications and estimates) for
     bidding. Predesign conferences may be required by the State or EPA. At
     these conferences the responsibilities of each party will be discussed as
     well as the administrative and technical requirements of the project.
        The following is a list of technical and administrative items to be
     considered during this phase of the project.

     5.1  Project Design	12.0

     The project, in addition to being designed  in accordance with sound
     engineering practice, must take into account those engineering and
     environmental measures recommended in the approved facility plan.
     Also, incompatible industrial wastes may not be introduced into the
     municipal system but must be pretreated by the industry. Accordingly,
     the design may not contemplate the handling of such wastes.
        Projects with estimated costs in excess of SI0,000,000 must be
     subjected to a value engineering (VE) analysis.
     5.2  Project Specifications	12.1

     The project specifications must comply with all Federal requirements.
     Provisions to be included in all specifications are furnished by the State
     or EPA in a preprinted form. Generally, the consulting engineer will be
     familiar with these provisions.

     53  Project Cost Estimates	12.1

     The consultant is to prepare detailed construction cost estimates based
     upon the scope of work as  reflected in the project plans and
     specifications. This  estimate is used to judge the reasonableness of the
     bids received.
8

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                                                                Ref.

5.4  Continuing Work 	N/A

While the following items need not be completed until the construction
(Step 3) phase of the project is underway, work on them during the
design phase should be maintained to insure their timely completion.
  a. Plan of Operation	12.2
  A plan for the efficient operation and maintenance of the facilities must be
developed.
  b. Sewer System Evaluation (SSES)	10.6
  Where applicable, the SSES must be maintained on schedule to insure
corrective sewer rehabilitation will be completed prior to completion of
construction.
  c. User Charge Systems	11.2
  This system may be complex and require substantial time to complete. It must
be approved before a Step 3 grant can be awarded.

NOTE: Completed plans, specifications and estimates must be submitted to
the State for review and approval prior to being sent to EPA,  DO NOT
undertake additional project work or advertise for bids until written
instructions to do so are received.
  Grantees will be  notified in writing of plan and specification approval
and will be given instructions for applying for a Step 3 grant.
  Payments for work completed under the grant are to be requested
(using EPA Form SF-271) in accordance with the payment schedule in
the Grant Agreement.
6.0    Step 3  Application
NOTE: The following items are required for a Step 3 grant and are to be
submitted to the State agency.

6.1  Plans, Specifications and Estimates	12.0

Approved plans, specifications and estimates suitable for bidding, as
described under Step 2,  must be included. If the plans, specifications and
estimates have previously been approved by EPA, submit only a copy of
the approval letter.  No Step 3 grant awarded after November 15,1981, may
include assistance for the cost of constructing capacity to treat, store or convey
industrial wastewater from large dischargers, unless a Step 2 grant was awarded
prior to May 15,1980.

6.2  Application, EPA Form 5700-32	9.2

Each item should be completed in accordance with instructions. For Step
3 projects, the site information required in Part II-Section B of the
application form is  necessary. Also, the source and method of funding the
local share of project costs should be clearly explained. A copy of the
resolution authorizing the official representative (Mayor, Councilman,
etc.) to act on behalf of the applicant must be included.

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                                                                      Ref.

      6.3   Selection of Professional Engineer	93

      Copies of proposed contracts, or explanation of how contracts for
      professional services will be awarded, must be included. MBE and WBE
      goals must be considered.

      6.4   Intermunicipal Agreements	10.11

      Where two or more municipalities are involved, final executed agreements
      (if not  previously submitted and approved) must be submitted with the
      Step 3  application.

      6.5   Municipal Pretreatment Program	10.4

      Where industrial pretreatment is required, no Step 3 grant may be made
      after December 31, 1980 unless  a municipal pretreatment program has
      been developed and approved.

      6.6   Public Input	10.8

      Where continuing public input is necessary, the application package must
      include a public participation work plan including costs and a schedule of
      activities (see paragraph 3.9 above).

      6.7   Assurances	  N/A

      In addition to  the assurances contained in Part V of the application,
      additional assurances as described below are necessary when applying for
      a Step 3 grant.  Some of the assurances may not be applicable to a
      particular project.

        a. Flood Disaster Protection Act of 1973	  12.1.5
        For  projects which include structures to be located in a flood hazard
      area delineated by the Department of Housing and Urban Development,
      grantees must participate in the flood insurance program.
        b. Sewer Use Ordinance	 11.4
        A copy of existing sewer use ordinances, or a letter assuring that such
      ordinances will be enacted, must be included. The ordinances must require
      new connections to be free from storm  water flows.
        c. Plan of Operation Schedule	12.2
        A schedule for readying the facility for operation (staffing, training,
      purchase of chemicals, etc.) must be included.
        d. Sewer System Rehabilitation Scheduling	10.5
        If the sewers leak excessively and it is determined that the leakage
      can be corrected by rehabilitating the sewers, a construction schedule for
      the  rehabilitation work must be included.
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                                                                Ref.

6.8  Payment Schedule	12.3

A realistic grant payment schedule is to be submitted with the
application.

NOTE: The application and accompanying documents must be reviewed
and approved by both the State and EPA. DO NOT advertise for bids
nor proceed with any additional project work until written instructions to
do so are received. Grantees will be notified in writing of a grant offer
and instructions will be provided for acceptance of the grant and
execution of the Grant Agreement (EPA Form 5700-20).


7.0   Step  3  Construction

NOTE: The primary activity of the Step 3 phase is the construction of the
approved project. To insure that the project is properly constructed,
financed, operated and maintained,  will involve the grantee in numerous
activities. Important among them are the following:

7.1  Advertising for Bids	13.1

Only after receiving the Step 3 award may grantees advertise for bids.

7.2  Receipt and Review of Bids	13.2

Grantees must receive, review and tabulate the bids and submit copies of
bid material and recommendations for award to the  State agency for
approval. DO NOT award contracts prior to receipt of authorization to
do so from the State or EPA.

7 J  Changes  in Grant Amount	13.3

Depending on the price of the lowest acceptable bid, the grant may need
to be increased or decreased. The State must approve and certify all
grantee requests for increases before they  may be considered by EPA.

7.4  Protests	13.4

If any contractor or equipment supplier lodges a protest against the
bidding procedures, grantees must attempt to resolve the protest using
advice from their legal counsel.  Also, grantees must notify the State and
EPA of each protest and how it was resolved.

7.5  Award of Construction Contracts	13.5

After the bids  have been reviewed and approved by the State or EPA and
after having received authorization to do so,  construction contracts are to
be awarded.
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                                                                      Ref.

      7.6  Preconstruction Conference	13.6

      A preconstruction conference is to be held to discuss the responsibilities
      of all participants, including the  grantee, the grantee's consultant, the
      contractors, the State and EPA.

      7.7  Construction Schedule	N/A

      Prior to starting construction, the contractor must furnish the grantee
      and State or EPA with a detailed construction schedule. Expected
      progress during construction should be discussed at the preconstruction
      conference (7.6). The schedule should be altered when required and will
      be the basis for making federal progress payments under the grant (7.10).

      7.8  Change Orders	13.7

      During construction it may be necessary to modify the project. Changes
      to the construction contract are generally made by the use of change
      orders which must be approved by the State and EPA.
     7.9  On-Site Inspection	13.8

     The State, EPA or Army Corps of Engineers in accordance with an
     interagency agreement with EPA, will periodically make on-site
     inspections to monitor construction procedures and to review project
     related documents.

     7.10  Grant Payments	13.9

     Grant payments are to be made in accordance with the payment schedule,
     updated when work is begun and  set forth in the grant agreement.
     However, payments may not exceed 50%, 80% or 90% of the grant
     amount until certain program requirements are fulfilled. These include
     the development of a plan of operation, sewer use ordinance, sewer
     system rehabilitation, etc.

     7.11  Audits	13.10

     Records and documents of the project must be maintained as they are
     subject to an audit by EPA to substantiate project expenditures.

     NOTE: Other program elements are covered in 14.0 and 15.0.
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Part  II
Explanation of items summarized in Part I
8.0   Preapplication Information

8.1  Applicant Eligibility

An eligible applicant is: "a city, town, borough, county, parish, district,
association, or other public body (including an intermunicipal agency of
two or more of the foregoing entities) created under State law, or an
Indian tribe or an authorized Indian tribal organization, having
jurisdiction over  disposal of sewage, industrial wastes, or other wastes, or
a designated and approved management agency under Section 208 of the
Act." This definition excludes a special  district, such as a school or park
district, which does not have as one of its principal responsibilities the
treatment, transport, or disposal of liquid wastes.

8.2  Type of Projects

The types of projects eligible for a 75% Federal grant include sewage
treatment plants, interceptor and outfall sewers, trunk and collection
sewers, and overflow control facilities for combined sewer systems. It is
the policy of EPA and the States to consider the construction of
treatment facilities and needed  interceptor sewers as more urgent than the
other types of projects.
  In addition new, expanded or rehabilitated on-site systems  such as
septic tanks or other subsurface disposal systems, which serve principal
residences, small  commercial establishments (less than 25,000  gpd) or
clusters of households, may be eligible to receive 85% Federal grants.
These systems as well as certain other types of systems are defined as
"alternative technology" projects and  may be eligible for an 85% Federal
grant. For small communities with a population under 3,500 or sparsely
populated areas of larger municipalities with a population under 3,500,
alternative technology collection systems employing 6 inch diameter or
smaller gravity sewers, pressure or vacuum sewers may also be eligible for
85% Federal grants. The principal residences or small commercial
establishments must have been  constructed and inhabited before             13

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      December 27, 1977 to be eligible for the additional grant funds. (See
      article 3.4 Innovative and Alternative Technology for a more complete
      description).
        To be eligible for a Federal grant, the project must have as its principal
      purpose the treatment of domestic wastes from an entire community or
      region. Therefore, treatment facilities for power plants, airports, mass
      transportation or drinking water plants are not eligible for funding under
      EPA's Construction Grant Program.

      8.3  Priority List

      Each year the States are apportioned sums of money (allotment or
      allocation) for construction grants. Grants from these funds  are made
      directly by EPA for those projects which the State determines are entitled
      to priority for a grant over other eligible projects in the State. The State
      system of determining priority of projects must give consideration to:
        a. the severity of pollution problems;
        b. the existing population affected;
        c. the need for preservation of high quality waters;
        d. total funds available;
        e. any additional factors considered pertinent by the State.
        Each project which is to receive a grant must be certified by the State
      as entitled  to priority for such grant  over other projects in the State. Only
      projects so certified by the State may receive a  construction  grant.
        States are required to set aside portions of their funds to be used
      exclusively for (a) small communities with population under 3,500 (where
      rural population of the State'is 25% or more), (b) innovative and
      alternative technology projects, and (c) funding grant increases. Also,
      States may give higher priority to innovative/alternative projects or to
      malfunctioning I&A projects for which 100% grants can be given to cover
      replacement costs.
        States will  provide interested persons with information concerning their
      priority systems as well as details on the ranking of particular projects.
      Priority lists must be subject to a public hearing at which time
      communities, concerned with the funding of a project, may make their
      interests known.

      8.4  Three Step Construction Grant Process

      Under EPA's Construction Grant Program, projects are funded in three
      steps, namely:
        Step 1—Grant for planning and preliminary design ("facilities planning11)
        Step 2—Grant for plans, specifications and estimates
        Step 3—Grant for construction
        A single grant may be made for both the  design and construction of a
      project—a combination Step 2 plus Step 3 grant for communities of
      25,000 population or less if the total estimated  cost of construction is less
      than $4 million ($5 million or less in States  with unusually high
      construction costs). This provision of the law is designed to  reduce the
      amount of paperwork necessary for smaller communities and should be
      discussed with the State agency by qualifying communities.
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 8.5  Water Quality Management Plans

 The law requires each State to study the pollution problems within its
 boundaries and develop a logical approach for reducing or eliminating
 this 'pollution. The first step is to determine the quality to be achieved by
 each body of water within the State, i.e., to establish "water quality
 standards." The second step is to determine the level of treatment for
 each discharge into the receiving body of water (waste load allocation) to
 achieve water quality standards.
   If it is found that through secondary treatment (which removes about
 85% of the pollutants) water quality standards for each discharge can be
 met, grant applicants need only  build secondary treatment facilities. If
 water quality standards cannot be met with secondary treatment,
 dischargers must provide higher levels of treatment (advanced waste
 treatment).
   In areas of urban-industrial concentrations, or other areas with
 complex water quality problems, "Areawide Waste Treatment
 Management Plans" (sometimes referred to as "208 Plans") may be
 prepared by the State or an agency designated by the Governor. These
 plans identify alternative solutions for both point source  and non-point
 source (run  off from farm land, mining operations, etc.) discharges in
 their areas.
   It is important for applicants  to know that their projects must be in
 agreement with approved 208  or WQM plans. These plans will designate
 local agencies which can  apply for construction grants, establish
 population forecasts for the areas involved, and  provide other
 information helpful to applicants. Potential applicants should first
 contact their State agency to determine if their proposed project is
 located in an areawide waste treatment management planning area.

 8.6  Facilities Planning

 Preparation of a facilities plan is the first major step of the three step
 construction grants process. Through the plan, specific recommendations
 for the treatment plant site,  size, type of process, method of effluent and
 sludge disposal, interceptor sewer routing, etc. necessary for constructing
 the project are developed.
  Ideally, the Water Quality Management plan (item 8.5  above) sets forth
the level of the treatment necessary for each sewage treatment facility in
the planning area and the implementing agency prepares a facilities plan
to develop a specific project which is cost effective and environmentally
sound. The State agency  will designate the  boundaries of the facilities
planning area in cases where they have not been designated by areawide
waste treatment management plans. When the boundaries encompass
more than one political jurisdiction, service agreements or other
contractual arrangements are necessary between jurisdictions.
Negotiations must begin early  to assure the timely completion of the
project.
  Cases will arise in which facilities planning areas and areawide waste
treatment  management planning areas overlap. Coordination and
cooperation are essential  to avoid duplication.
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16
        Later items in this handbook describe specific topics of a facilities plan
      in more detail. Further information is provided in the EPA publication,
      Guidance For Preparing A Facility Plan.

      8.7   Municipal NPDES Permits

      The permit system used by EPA officials to enforce the meeting of water
      quality standards is  entitled the National Pollution Discharge Elimination
      System (NPDES). NPDES permits issued under the system are applicable
      to all municipal discharges and the municipalities must comply with their
      provisions.  Where Water Quality Management or facilities plans have
      been established, the permits will require compliance with such plans.
        NPDES permits may contain limitations, conditions or schedules which
      will require the municipality to undertake the construction of a
      wastewater treatment facility.

      8.8   Clearinghouses)

      Applicants  for construction grants for wastewater treatment facilities are
      required to comply with the Office of Management  and Budget (OMB)
      Project Notification and Review System (Circular A-95).  This system is
      established  to provide  for early contact  between  applicants and
      governmental agencies and to insure coordination between related
      projects.
        Prior to submission  of a Step 1  grant application, and  after  the
      completion of a draft facilities plan, applicants are required to obtain
      comments from the  State and/ or regional clearinghouse(s). The applicant
      is to include copies of these comments with the application package. If
      the comments are adverse, the applicant is to submit a statement
      explaining how  the comments were considered.
      9.0   Step 1 Application
      9.1   Plan of Study
      A plan of study outlines the work to be done in preparing a facilities
      plan. It should be brief and generally follow the forms suggested in the
      "Model Plan of Study," a supplement to the Guidance For Preparing A
      Facility Plan. Unique features of the project which will require special
      attention, such as water-short areas, recreational areas, economically
      depressed areas, etc., should be addressed.
        The plan of study is developed by the applicant after consulting with
      the public and reviewed by  both the State and EPA to insure compliance
      with  municipal permit conditions, previously approved water quality
      management plans, interstate agreements and other applicable
      requirements.
        Once approved, the  plan  of study is incorporated into the grant
      agreement along with a schedule for the completion of the specific tasks,
      to be undertaken in the preparation of the facilities plan, and itemized
      costs for each of these tasks.

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9.2  Application, EPA Form 5700-32

The application form contains instructions for its preparation and
assurances with which the applicant must comply. The application must
be accompanied by a formal resolution of the governing body
designating, by name and title (Mayor, City Manager, City Clerk, etc.),
the authorized representative to act in behalf of that body in all matters
related to the grant process. This person  must be an official of the
governmental unit rather than the consulting engineer or other
professional consultant.  The resolution should specifically authorize the
representative to make application, submit other documentation as
required, accept the grant offer and act for the governing body  in all
grant related matters. In the event that the representative is replaced, a
resolution naming the new representative must be submitted.

9.3  Selection of Professional Engineer

The most common contracts (subagreements) are the engineering
contracts between  the municipality and the consulting engineer. Detailed
requirements and procedures for obtaining all types of professional
services including environmentalists, construction managers, etc., are
presented in the regulations 40 CFR 35.936 and 35.937 and are available
from the State or EPA.
  Essentially the regulations require that the need for
architectural/engineering (A/E) services be advertised so that qualified
firms may offer their services. (This does not apply to communities under
25,000  population.) At least three firms which display acceptable
professional qualifications to do the work are requested to submit
proposals for the  project. Proposals may or may  not include costs for
professional services. Professional fees are negotiated so that the
professional receives a fair and reasonable profit and the municipality
obtains competent services at a fair cost.
  A cost review is to be conducted by the applicant with costs being
presented to EPA  in a prescribed form. Additional cost breakdowns may
be required by EPA for a particular project to establish reasonableness of
the costs.
  If the applicant is satisfied with the services of the firm selected to do
the Step  1 or Step 2 work, the same firm may be used for additional
work, providing the firm has the capability and resources to carry out
such work on schedule and a fair fee can be negotiated. Likewise, the
grantee may terminate the  A/E contract  if the contractor fails to
perform.
  Various types of contracts are acceptable but cost-plus-percentage-of-
cost and the percentage-of-construction-cost types of contracts are
prohibited. Generally, separate fee negotiations should be conducted for
each Step I, Step 2 and Step 3 grant.
  Positive efforts are to be made by each applicant to seek out minority
and women-owned businesses and afford  them an opportunity to
compete for work to be  done under the Step 1, 2  or 3 grant: Each EPA
regional office has established monetary goals (usually expressed as a
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      percentage of the grant funds use by a State) to be achieved by minority
      business enterprises(MBE) and women's business enterprises (WBE)
      participating in the Construction Grants Program and has developed lists
      of MBE's and  WBE's to provide assistance to applicants in meeting these
      goals. In addition to MBE and WBE requirements for applicants, each
      prime contractor (engineers for Step 1 and Step 2 work and construction
      contractors for Step 3 work) also have MBE and WBE goals which must
      be satisfied.
        All professional services work initiated  after June 30, 1975, must be
      approved in advance by the State agency  or EPA in order to be eligible
      for grant funds. Therefore, it is recommended that applicants contact the
      State agency or EPA before executing service contracts.
      10.0   Step  1 Facilities Planning

      10.1  Discharge (Effluent) Limitations

      The degree of treatment which must be provided by a particular
      treatment plant is dictated by the effluent limitations. Effluent limitations
      are established by the State (or, in some cases, by EPA through the
      NPDES permit). For example, effluent limitations may require that the
      plant discharge not over 20 milligrams per liter (mg/1) of biochemical
      oxygen demand (BOD), 12 mg/1 of suspended solids (SS), and a
      dissolved oxygen of 5.0 mg/1. If the sewage entering the treatment plant
      has a BOD of 200 mg/1 and SS of 240 mg/1, the grantee would be
      required to provide 90% BOD removal, 95% SS removal and additional
      oxygen to the effluent before discharge. Effluent limitations will differ
      according to the nature of the receiving waters; and, they would also
      differ if the effluent were to be used to recharge groundwater or to be
      disposed  of on land.

      10.2  Alternatives

    -  An important aspect of a facilities plan is the investigation and evaluation
      of various alternative solutions to the  water pollution problems. These
      alternatives will include an evaluation  of the existing facilities to
      determine whether the operation of the existing plant  can be improved
      enough to provide the required level of treatment, thus precluding the
      need for new construction. If this is  not practicable, alternatives such as
      size, location, type of process, phasing of construction,  rehabilitation, etc.
      must be considered.
        Best practical waste treatment technology (BPWTT) must be taken into
      consideration and includes, as a minimum, an evaluation of the following
      waste treatment management techniques: (a) biological  or physical-
      chemical treatment and discharge to receiving waters, (b) treatment and
      reuse/ recycling, (c) land application techniques, (d) systems including
      revenue generating applications (sale of methane gas, irrigation and sale
      of crops, etc.), and (e) on-site (septic tanks) and nonconventional systems.
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  For sewers, alternative routings and sizes must be evaluated.
  Among the many types of alternatives to be evaluated are innovative
and alternative technology processes or techniques as described below in
article 10.3.
  Initially the most feasible  alternatives are identified and, through a
preliminary screening process, the best alternatives are selected. These
alternatives are then evaluated on the basis of engineering, environmental,
cost, public acceptance and ability-to-be-implemented considerations.
This process results in the selection of the most cost effective solution. A
"no-action" alternative must also be considered. The entire process of
evaluating these alternatives must be explained in the grantee's public
participation program and described in the facilities plan.

(NOTE: It is important that the full impact of the overall cost of each
alternative on the average citizen to be served by the new facility be
clearly itemized.  Namely,  costs such as: the local share of the  capital cost;
interest on borrowed capital; sinking fund costs; O&M costs;  connection
charges; etc.)

10.3  Innovative and Alternative Technology

In 1977 Congress authorized a three year program to stimulate evaluation
of innovative and alternative (I & A) processes or techniques  for
wastewater treatment which can reclaim and reuse water, productively
recycle wastewater constituents, eliminate the discharge of pollutants,
recover or reduce energy, reduce  costs or otherwise provide
environmental benefits. To encourage I &  A evaluations, the law provides
Federal grants up to 85% for approved I & A projects. In the unlikely
event of failure of an I or A project, the law also provides for grants to
pay up to 100% of the cost of modification or replacement. States may
give higher priority to I & A or 100% replacement projects.
  All facilities plans (Step 1) begun after September 30,  1978  must
evaluate I & A projects as part of their alternative solutions (see article
10.2 above). The 85% grants apply  only to Step 2, Step 3 or Step 2 plus 3
approved projects. I & A  projects differ from conventional forms of
treatment and each has its own definition. Alternative technology projects
are proven methods of treatment and include land application of effluents
or sludges, aquifer recharge, revegetation of disturbed lands, anaerobic
digestion with 90% methane recovery, codisposal with refuse,  self-
sustaining incineration, and on-site  systems, to name just a few.  Innovative
projects on the other hand are processes or techniques which are not fully
proven (some risk) but offer some definite benefits. Proposed  innovative
projects must meet one of the following six criteria: (a) 15% life cycle cost
reduction, (b) 20% net primary energy reduction, (c) improved
operational reliability, (d) better management of toxic materials, (e)
increased environmental benefits, (f) new or improved methods of joint
municipal and  industrial treatment.
  Both alternative technology projects or conventional forms  of
treatment are candidates for innovative designation although  •
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     conventional concepts of treatment must meet either (a) or (b) of the
     criteria above. Innovative or alternative projects may be 15% more costly
     than non-innovative projects and still be considered cost effective. The
     85% Federal grant is applicable to I & A projects or portions  of a project
     using innovative or alternative techniques.

     10.4  Municipal Pretreatment Program

     Where a municipal treatment works will treat both municipal  and
     industrial wastes, it may be  necessary to develop a pretreatment program
     to insure that objectionable  industrial wastes are adequately pretreated
     before being discharged into the municipal system. The pretreatment
     program will require an industrial survey, a legal means of controlling
     and enforcing industrial discharges, an evaluation of the costs to carry
     out the program, a determination of  the technical information needed to
     carry out the program, and  the development of an enforcement
     monitoring program—which will identify required monitoring equipment,
     and determine toxic tolerances and pollutant removals in the treatment
     system.
       The development of a pretreatment program can be both time
     consuming and expensive. Therefore, it would be to the grantee's
     advantage to establish lines  of communication with all the affected
     industries and seek their cooperation and help. Portions of the
     pretreatment program must  be completed  in order to qualify for a Step 2
     grant after June 30,  1980. The entire  pretreatment program must be
     completed to qualify for a Step 3 grant after December 31, 1980.

     10.5  Infiltration/Inflow (I/I) Analysis

     For projects which have existing sewers, it is necessary to prepare an
     infiltration/inflow (I/I)  analysis as a  part of the facilities plan. Infiltration
     is groundwater which leaks into  the sewers, whereas inflow is storm water
     which enters the sewers. The distinction is made between the two types of
     flows because infiltration is  more constant depending on the groundwater
     level, while inflow is more of a peaking  phenomenon related to above
     ground precipitation. Inflow occurs at distinct points and may therefore
     be economical to correct. Infiltration is more generally distributed (if one
     joint in an old pipe has  deteriorated and is leaking, other joints in the
     same reach of pipe may also be leaking) and may be quite costly to
     correct.
       The I/1 analysis must quantify the infiltration and inflow and estimate
     how much it would cost to remove part or all of the I/1 from  the system.
     Also, the cost of transporting and treating the I/1 must be estimated and
     the most economical combination between I/1 removal or treatment must
     be determined.  Since infiltration and inflow take up valuable capacity in
     the sewer pipes, pumping stations and treatment plants, it is generally
     economical to remove some of these  excessive flows. Therefore, in the I/1
     analysis, a preliminary determination must be made of the amount of I/1
     to be removed and the amount to remain  in the system. The amount of
     I/1 which may be economically removed is designated "excessive".
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  If the amount of excessive I/1 is great, it will be necessary to more
accurately estimate the cost of removal by performing a sewer system
evaluation survey.  DO NOT proceed with  a sewer system evaluation
survey until receiving authorization to do so from EPA.

(NOTE: Recent findings have indicated that the amount of infiltration which
can be successfully removed by currently available sewer rehabilitation
techniques is considerably less than had been assumed in the past. New
guidance on //1 analyses and sewer system evaluation surveys is being
developed and will be issued soon.)	


10.6  Sewer System  Evaluation Survey (SSES)

A survey is the second step in the sewer system evaluation and is
conducted only if the infiltration/ inflow analysis concludes that excessive
infiltration/inflow exists. Grant funds for conducting a sewer system
evaluation survey may be obtained by requesting an increase in the Step 1
grant.
  Cost of rehabilitation of sewers is eligible for grant participation.
However, some States, due to allotment constraints and other high
priority needs, do not certify sewer system rehabilitation projects  for
grants.
  Sewer System Evaluation and Rehabilitation is the subject of an EPA
handbook (MCD-19) dated March, 1974. Generally, the evaluation
consists of some or all  of the  following: (a) a physical survey of the
system; (b)  smoke  bomb, air pressure testing or rainfall simulation by
flooding sections of storm sewers; (c) selected sewer system cleaning; (d)
visual (e.g., television) inspection of selected sewer sections; and (e) the
preparation of a report of needed rehabilitation of the sewers.
  Generally, grantees would not inspect the entire sewer system using TV
cameras. TV inspection is very expensive and must be justified to  obtain
Federal funding.
  The evaluation survey will identify specific sections of the sewer system
which are to be rehabilitated—grouted, sealed, lined,  replaced or
otherwise repaired. Rehabilitation carried out under contract is subject to
the  same requirements  as other construction contracts or subagreements.
No  more than 80% payment of the Step 3  grant may  be made unless the
grantee is complying with the sewer system evaluation and rehabilitation
schedule.

10.7  Environmental Evaluation

The National Environmental  Policy Act of 1969 (NEPA) requires all
Federal agencies to prepare environmental impact statements (EIS) for
projects which have significant adverse environmental effects or
environmental impacts which are likely to  be highly controversial.
Therefore, to allow EPA to decide if an EIS is to be prepared, grantees
are  required to prepare an environmental information document (EID),
as a part of the facilities plan, which  includes an  environmental
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      inventory, an evaluation of the alternatives and proposed mitigative
      measures. The BID is similar in content to an EIS and is required for all
      projects.
        If, after reviewing the completed facilities plan (which  contains an
      environmental evaluation), EPA decides that the proposed project does
      not warrant the preparation of an environmental impact statement, EPA
      will issue a "finding of no significant impact" (FNSI) and make
      appropriate public notices. On the other hand, if EPA decides that an
      EIS is warranted, a "notice of intent" will be issued and  made public.
      EPA will then prepare a draft EIS extracting as much information as
      possible from the EID.
        A variation of this procedure is used for those projects which are
      known in advance to have significant or controversial environmental
      impacts. In such cases and with all parties agreeing, a facilities  plan and
      an environmental impact statement will be prepared simultaneously. This
      procedure, known as "piggybacking," is intended to save time and money
      yet satisfy all the requirements of the Construction Grants Program.

      10.8  Public Input

      Issues involved in solving water quality problems and in  the expenditure
      of large Federal sums are often sensitive and may come under attack
      from varied interests. Although the primary responsibility for water
      pollution control and abatement rests in governmental agencies, public
      involvement in the decisions and implementation is necessary and
      desirable. The intent of public participation is to foster a spirit  of
      openness and a sense of mutual trust between the public  and
      governmental agencies and to give the public a role in decision-making
      efforts to restore and maintain the integrity of the Nation's waters.
        Public participation should begin as early as possible in the
      development of a project, with at least one public meeting being held
      during the development of the plan of study (see item 9.1 above). Two
      types of public participation programs are described in EPA
      regulations—basic and full scale. The basic program consists of
      conducting several meetings during the project, providing appropriate
      notices (newspaper, radio, TV ads or newsletters), preparing fact sheets or
      other information, and otherwise seeking public involvement. The  full
      scale program not  only includes the requirements of a basic program but,
      in addition, requires the formation of an advisory group, the hiring or
      designation of a public participation coordinator and additional public
      meetings. Full scale programs are required for all projects for which an
      EIS will be written, projects involving advanced waste treatment
      (treatment beyond minimum levels) or where public controversy or
      interest warrants such a program.
        A summary of the public participation program must be included with
      each facilities plan. Applicants should take note of these  requirements
      and include the costs and time allocation in their Step 1  grant
      application. Under certain circumstances (minor expansion of a treatment
      plant, for example) EPA may waive these requirements.
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 10.9  Historical and Archaeological Investigations

  To comply with the requirements of the National Historic Preservation
 Act of 1966, Executive Order 11593, and  other applicable State and
 Federal laws, it is necessary that an investigation be made of the impacts
 a project may have on historical or archaeological sites. These
 investigations may vary from literature searches to field surveys. The
 initial step, once the project scope is determined, is to contact the State
 Historical Preservation Officer (SHPO) to obtain specific advice as to the
 extent of investigations necessary.
  The SHPO may recommend that qualified professionals be hired for
 "walk-through" or "windshield" preliminary investigations. The
 reasonable costs for these investigations are eligible for grant
 participation, but EPA must be advised at each successive stage before
 additional costs are incurred.

 10.10  Selected Alternative

 After all investigations and alternatives are evaluated as part of the
 facilities planning, one alternative is selected and described in greater
 detail. The selected plan describes the project for which Step 2 detailed
 design and Step 3 construction grants may be requested by the applicant.
 The depth of detail used to describe the selected plan will vary with the
 size and complexity of the project. The amount of detail should be
 discussed with and agreed upon by the State and EPA before completing
 the facilities plan.
  Cost estimates of the selected plan must be carefully developed and are
 to be used in completing the application (EPA Form 5700-32) for a Step
 2 grant.

 10.11  Intermunicipal Agreements

 If a project involves more than one political jurisdiction, it will be
 necessary to work out service agreements. These agreements  will include
 financial arrangements and require each jurisdiction to enforce the
 requirements for user charges, sewer system rehabilitation, industrial cost
 recovery, sewer use ordinances, etc. The details of the service agreements
 will vary from project to project. Because the time required to complete
 service agreements can be long, action on them should be initiated as
 early as possible during the preparation of the facilities plan. Service
 agreements must be drafted  prior to approval of the facilities plan and
 possibly executed before the award of a Step 2 grant.
  If wastes from a Federal facility to be treated in a proposed municipal
 waste treatment plant make up more than 5% of the design flow or total
 more than 250,000 gallons per day, EPA cannot participate in the
construction costs attributable to such wastes.
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     11.0   Step 2  Application

     11.1   Value Engineering

     Where construction costs are expected to exceed $10.0 million, a value
     engineering (VE) analysts of the project's design is required. In a VE
     analysis the project is evaluated component by component to determine
     the least costly way of constructing the project without sacrificing quality.
     To insure an objective analysis, the VE analysis is generally performed by
     a different firm from the original design engineering firm—although some
     larger engineering firms have in-house capabilities for this specialized
     work.
       EPA's experience has demonstrated that a VE analysis can result in
     substantial construction cost savings. Engineering services for the VE
     analysis are procured  in the same manner as the architect/ engineer
     services (see article 9.3) and the costs for the VE analysis should be
     included in the Step 2 application.

     11.2   User Charges


     User charges are fees paid by users of the facilities to cover the operation
     and maintenance—including equipment replacement costs of the system.
     Industrial, commercial and residential users are charged a proportionate
     fee based on the wastewater treatment service provided. In determining
     the user charge to each class of users the grantee may use a system based
     on the actual use of treatment services (including volume and strength of
     wastes) or, under certain circumstances, on the use of "ad valorem" taxes.
     User charge systems are also required for projects involving on-site (septic
     tank) disposal systems.
       At the time of a Step 2 grant application, applicants must submit a
     plan and schedule for preparing a user charge system and for obtaining
     input from the public. After June 30, 1979, a Step 3 grant may not be
     awarded unless EPA has approved the user charge system. By the time
     the project is completed and ready to operate, the approved user charge
     system must be enacted.

     11.3   Treatment of Industrial Wastewater

     After November 15,1981, no Step 3 grant may be awarded which includes as-
     sistance for the construction of capacity to treat, store or convey industrial
     wastewater from large industrial users (i.e., those industries discharging more
     than the equivalent, in flow or pollutant loading, of 50,000 gallons per day of
     domestic wastewater), unless a Step 2 grant was awarded prior to May 15,1980.
     Therefore, when a municipal treatment plant will treat both municipal and in-
     dustrial wastes, an applicant receiving a grant after these dates must identify and
     separate out the cost of that portion of its wastewater treatment system's ca-
     pacity to be constructed to accommodate large industries as that cost is in-
     eligible for grant funds.
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 11.4  Sewer Use Ordinance

 Applicants for a Step 2 or Step 3 grant must submit a current sewer use
 ordinance or evidence that it will enact and enforce such an ordinance.
 The sewer use ordinance must prohibit new sources of inflow (illegal
 connections from sump pumps, foundation drains, roof leaders, etc.)
 from being connected to the sewer system and require proper design and
 construction techniques for new connections. No more than 80% payment
 of the Step 3 grant may be made until the ordinance is approved by
 EPA.

 11.5  The Uniform Relocation and Land Acquisition Policies Act of 1970

 Projects which entail the acquisition of private property or the
 displacement of persons are  subject to the provisions of the Uniform
 Relocation and Land Acquisition Policies Act of 1970 (40 CFR Part 4
 addresses these requirements). Basically, the Act establishes procedures
 for equitable settlement in such cases. Although the actual cost of land
 purchased for the project is generally  not eligible for grant participation
 (except in certain cases when the land is an integral part of the treatment
 process), certain costs associated with complying with this Act may be
 eligible. The Step 2 grant application  must include a statement or
 resolution assuring that the grantee will comply with the applicable
 provisions of this Act and a time schedule of compliance. Before starting
 Step 3 construction, the grantee must have purchased all necessary land
 for the project.
 12.0   Step 2 Plans,  Specifications and Estimates

 12.1  Project Specifications

 The end product of the Step 2 detailed design is a set of plans (drawings),
 specifications and detailed construction cost estimates which are suitable
Tor bidding and construction purposes. Since large sums of public funds
 will be spent on constructing the project, it is of the utmost importance
 that the plans, specifications and estimates be as complete and accurate
 as possible. Plans, specifications and estimates must be submitted to
 obtain the final Step 2 grant payment and approved plans and
 specifications must be submitted to obtain a Step 3 grant.
  The provisions of many Federal, State and  local laws must be satisfied
 when advertising for and constructing public works projects. To assist
 grantees in satisfying most of these requirements, EPA has prepared a
 standard set of inserts which may be included in the construction
 contract. Key elements of the Federal requirements to be included in the
 contract documents are highlighted below.
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     12.1.1  Contract Documents

     The contract documents must contain the following six items:

     •  a  statement of  work, including  drawings and specifications, and  a
     required time-for-completion schedule;

     •  the terms and conditions of the construction contracts;

     •  an explanation of method  of bidding, method of evaluating bid prices
     and the basis upon which award  of the contract will be made;

     •  the criteria for evaluating bidders;

     •  a statement indicating that the project is partially funded with Federal
     money but that the government is not a party to the contract;

     •  copies of 40 CFR 35.936, 35.938, 35.939 and 43 FR pp. 60220-60224.

     12.1.2  Supplemental General Provisions of Specifications

     The requirement for supplemental general provisions in the specifications
     is satisfied by including Appendix C-2 of 40 CFR  Part 35 in the
     specifications. This appendix includes conditions relating to subjects such
     as:

        audit and access to records;
        price  reduction for defective cost or pricing data;
        contract work hours and safety standards;
        equal employment opportunity;
        utilization of small and minority business;
        a covenant against contingency fees;
        anti-kickback regulations;
        gratuities;
        patents;
        copyrights and rights in data;
        a clean air and water clause.

     12.13 Equal Employment Opportunity

     The Equal Employment Opportunity (EEO) provisions of the law must
     be followed and made a part of the specifications where contracts are
     greater than $10,000. In areas having an approved home-town or an
     imposed  plan, the contract specifications must contain the specific
     provisions of the plan as published by the Secretary of Labor in the
     Federal Register. Home-town plans are agreements reached between  the
     local contractors, trade unions, minority groups and governmental
     agencies  which are approved by the Secretary of Labor and include the
     goals for hiring and training of minority groups. In such cases all
     contractors must agree to abide by the  provisions  of the plan.
       In non-home-town plan areas, contractors will be required to comply
     with the  provision of Executive Order 11246 and  engage  in affirmative
     action directed at promoting and insuring EEO in their work force.
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  In addition to the above requirements, the plans and specifications
must include a statement of MBE and WBE goals for utilization of
minority and women's business enterprises and a statement of how
MBE and WBE policy is to be implemented.
  Regional Offices will provide specific instructions to grantees regarding
EEO, MBE and WBE requirements affecting their projects.

12.1.4   Davis Bacon Act

Construction contracts in excess of $2,000 are subject to the provisions of
the Davis-Bacon Act. This Act requires that contractors pay employees
minimum wage rates as established by the Department of Labor. These
rates are specified  in Wage Determinations issued for specific projects
and reflect prevailing wages paid  workmen in various crafts in a given
locality. Area of General Wage Determinations, applicable to projects in
larger metropolitan areas, are published periodically in the Federal
Register. Wage Determinations are valid for 120 days and, along with
any pertinent modifications, must be included  in the bidding and contract
documents.

12.1.5   Flood Disaster Protection Act of 1973

If the proposed project includes structures with a value of more than
$10,000 which will be located in an area formally designated as a flood
hazard area by the Department of Housing and Urban Development
(DHUD), those structures must be insured under the flood insurance
program administered by DHUD. In  this instance, "structure" generally
refers to a "building" having four walls and a roof.  Such insurance, if
required, must be  maintained during both construction and the useful life
of the structure.
  Other provisions of this Act may be applicable to certain projects and
should be taken into consideration during the  preparation of the facilities
plan.

12.1.6   Bonding/Insurance

For construction contracts in excess of $100,000 the following minimum
bonding and insurance requirements must be a part of the specifications:

•  5% bid bond;

•  100% performance bond and  100% payment bond;

•  fire and extended coverage, workmen's compensation,  public liability
and property damage and "all risk" insurance  as required  by local or
State law;
•  flood insurance, as required, during and after construction.

  For contracts less than $100,000, bonding and insurance requirements
shall be in accordance with local  or State practice.
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      12.1.7  Technical Provisions of Specifications

      The following are among the items which must be addressed in the plans
      and specifications for the project.
        Safety Precautions: Occupation Safety and Health Act (OSHA) and
      applicable State and local requirements must be complied with.
        Mitigative Measures: Mitigative measures required by the
      environmental evaluation or impact statement must be complied  with.
      Examples  might be soil erosion control, hours of operation, backfilling
      and seeding, structural design for buildings in a flood plain, etc.
        Bypassing: Bypassing of flows during construction must be prevented
      where possible.
        Reliability and Flexibility: Proposed facilities are to be reliable and
      provide for flexibility in operation. This may be accomplished by
      providing for standby power, ample pumping capacity to insure
      continuous operation when the largest pump is out of service, etc.
        Component Identification: Equipment, piping, switches, instruments,
      etc. must be clearly marked for ease of identification.
        Public Water Supply: Public water supplies must be protected  by
      adequate backflow prevention devices (double check valves, air gap, etc.).
        Chemical Storage: Chemicals must  be properly stored in  a curbed area
      large enough to hold the entire volume in the event of an accidental spill.
      Also, adequate safety protection gear must be provided for plant
      personnel.
        Ventilation: Adequate ventilation must be provided in all areas where
      necessary (for example, wet well, dry well, chlorine room, chemical
      storage area, etc.).
        Laboratory Facilities: Laboratory facilities must be sufficient to give
      the plant operator control over the operational efficiency of the treatment
      plant. Additionally, facilities must be  adequate to conduct sampling and
      testing as required by the NPDES permit or the State agency.
        Emergency Alarms: Adequate alarms must be provided to warn of
      failures or dangers.
        Use of Mercury: Mercury may not be used for trickling filter seals.
      Other uses of mercury require special review and approval.
        Sewers: Sewers must be tested for infiltration. They must maintain
      minimum  scouring velocity and have adequate capacity during peak flow
      periods.
        Equipment: Except where based upon performance specifications, at
      least two trade names must be specified for all major items of equipment
      with preference given to American manufactured products.
        Operation & Maintenance: In selecting equipment and components, the
      consultant should give careful consideration to those which can be
      operated and maintained with the least effort.
        Pretreatment: Industrial wastes which are not compatible with
      household wastes handled by the municipal treatment plant must be
      pretreated in accordance with an approved municipal pretreatment
      program.
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12.2  Plan of Operation

A Plan of Operation which is required for all treatment facilities, is a
document containing an orderly listing of actions needed to be taken
during construction to ready the plant and  its personnel for operation
once construction has been completed. Matters such as staff recruiting,
selection and training,  operation and maintenance procedures, reports,
laboratory testing, special equipment handling,  start up procedures, etc.
must be considered in the plan.
  The Operation and Maintenance Manual (prepared in conjunction with
the plan of operation) is especially important since it provides plant
personnel with detailed instructions for assuring efficient operation and
proper maintenance of all plant components (including off-site pump
stations, etc.). This manual should discuss,  in clear, easy-to-follow terms,
how the facility is to be operated so as to meet effluent standards
contained in the NPDES permit and other State and Federal
requirements.  Grant payments are limited to 50% of the Federal share of
Step 3 costs until the draft manual or evidence of its timely completion is
submitted. No more than 90% of the grant may be paid until the manual
is approved.

12.3  Payment Schedule

For each  of the three "step" grants it is necessary to prepare a payment
schedule for disbursement of grant funds. This  is particularly important
for the Step 3 construction project since this is  where most of the monies
are spent. Payment schedules for all projects are used to project the cash-
flow requirements for EPA as well as the borrowing needs of the Federal
government. Since these schedules establish the maximum amount of
grant funds to be paid out during the specific period and are tied into
Federal quotas for budget management purposes, it is important that
they be prepared with care.
  Once a payment schedule is established, any  change will require the
written approval of EPA. Payment procedures  are explained in the
section Grant  Payments (13.9).
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      13.0   Step 3  Construction

      13.1  Advertising for Bids

      Grantees must not advertise for bids until authorization to do so is
      received from the State or EPA. When authorization is received, grantees
      must advertise the proposed project as widely as possible in order to get
      the best possible price. Preference for local contractors shall not be
      shown. Generally, advertisements are to be placed in newspapers, journals
      or other public notification and solicitation periodicals. If the estimated
      project cost is more than $10 million, advertisements for bids should be
      in journals having nationwide circulation. The advertisement must
      indicate where copies of the bidding documents, including the plans and
      specifications, may be obtained. Generally, at least 30 days is allowed for
      receipt of bids.  The regulations, 40 CFR 35.938-4, which are included in
      the project specifications, contain additional specific requirements for
      advertising. These same bidding requirements also apply to sewer system
      rehabilitation work where necessary.

      13.2  Receipt uid Review of Bids

      Sealed bids must be received and opened publicly. The grantee, in
      reviewing them, must insure that all legal requirements are met  and
      prepare a recommendation for award.  Bid documents and the grantee's
      recommendation for award are forwarded to the State for approval. DO
      NOT award construction contracts until approval to do so is  received. As
      a minimum, the following documents are to be submitted after bids are
      received:
        a. a certified bid tabulation of all bids received;
        b. two copies of the proposal form and bonds from the apparent
      low bidder;
        c. a statement from the grantee (authorized official) indicating the
      names of the bidders to whom contracts are to be awarded and the amount
      of the contracts;
        d. proof of advertising indicating the circulation and time for receipt of
      bids;
        e. a copy of each addendum issued during the bidding period and
      acknowledgement of receipt by the apparent low bidder;
        f. signed copies of the certification by the apparent low bidder regarding
      compliance with EEO, MBE and WBE requirements;
        g. if award is to be made to other than the low bidder, justification
      indicating why the low bidder is not responsive or responsible;
        h. a revised cost estimate as necessary,
        i. other documents required to conform with applicable State and local
      laws and ordinances.
        After reviewing the bids, the contracts should be awarded to the lowest
      responsive, responsible bidder.  If there is reason to award a contract to
      other than the lowest bidder, advice should be obtained from legal
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counsel concerning such action. In addition, a full explanation, including
the legal opinion, must be submitted to EPA for review. DO NOT award
contracts until authorization to do so is received from the State agency or
EPA.
  Grantees are cautioned that rejection of all bids and readvertisement of
the project may be done only for good cause and  with prior approval of
the State agency or EPA.

13.3   Changes in Grant Amount

Grants may be increased or decreased at any point throughout the entire
three-step process where such action is warranted  and justified. Grant
changes require State approval and certification and the processing of a
Grant Amendment. To minimize grant increases and decreases, each  Step
3 grant may include an allowance for contingencies. The amount of the
contingency will vary in accordance with the size and type of project  and,
where applicable, State policy.
  Generally, if a grant increase is needed, it occurs because bids were
higher than the engineer's estimate. In such cases, bid material must be
submitted to the State with the request that the grant be increased. The
State is under no obligation to approve the request nor is EPA obliged to
increase the grant but will generally do so if the increase is justified and
funds are available.

13.4   Protests

The award of construction contracts may result in protests from
unsuccessful bidders, equipment suppliers or others. If a protest is
received, the procedures outlined in the regulations, 40 CFR 35.939, must
be followed. It is the grantees' responsibility to resolve protests. The
protest may vary from a protest without merit to  the more complex case
involving potential litigation.
  Advice should be sought from legal counsel whenever protests are
lodged. Grantees must advise the State and EPA of a protest, its basis
and method of resolution.

13.5   Award of Construction Contracts

After EPA or  the State has reviewed the bid information, it will
authorize the award of the contracts providing all requirements have been
satisfied. Grantees should inform EPA or the State of the date of the
contract award or notice to proceed.
  At the time  of award, a preconstruction conference should be
scheduled to insure that each party understands his responsibilities.

13.6   Preconstruction Conference

A preconstruction conference should be held by the grantee with the
contractors), State agency and EPA participating. The primary objective
of the preconstruction conference is to discuss the responsibilities of each
party in the project and to clarify any questions. Subjects to be discussed
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      include: the construction schedule; posting and payment of minimum
      wages; equal employment opportunities; record keeping; requirements for
      on-site inspections; timing of invoices and processing of grant payment re-
      quests; processing and required approvals of change orders; etc. A separate
      preconstruction conference may be required by the Federal EEO officer.

      13.7  Change Orders

      A change order is the method by which construction contracts are modi-
      fied after work has begun and may result in a cost increase or decrease.
         Contracts may need to be modified because of minor errors in the
      plans and specifications or emergency changes required to protect life or
      property. Prior approval by the State or EPA of minor or emergency
      change orders is not required.
         Project changes which will substantially alter the design or scope of the
      project, type of treatment, location, size, capacity or quantity of any
      major component, or which will require additional Federal funds, must
      receive prior approval from the State or EPA before being executed.
      Approved change orders resulting in construction cost increases are
      ordinarily paid out of the contingency allowance of the project. Where
      the change order or combination of change orders exceeds the contin-
      gency allowance, grantees may request an increase in the grant amount.
         Change orders must be justified and are not to be used to circumvent
      the bidding requirements. The increased costs resulting from a change
      order must be reasonable and grantees must negotiate with the contractor
      to insure that the price is fair.

      13.8  On-Site Inspection

      EPA, the State or the U.S. Army Corps of Engineers (COE) may
      conduct  on-site project inspections to insure that the project is being
      managed properly, is on schedule, and is being constructed in accordance
      with approved  plans, specifications and change orders.  The  Army Corps
      of Engineers is assisting the States and EPA in conducting on-site
      inspections. Where the COE provides this service, they are acting as
      agents of EPA.
         On-site project inspections are  made during construction (interim) and
      at the completion of construction (final). The frequency of interim
      inspections will depend upon the size and complexity of the project.
         a. Interim Inspections—At the time of an interim inspection, the
      inspector will determine that:

      •   competent and adequate supervision and inspection is being provided
      and an appropriate inspector's log is kept;

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

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

      •   the engineer's estimate of work-in-place agrees with actual observed
      construction;
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•  reasonable tests of materials and equipment are being conducted and
noted in logs or reports (e.g., slump tests of concrete);
•  equipment delivered to the site is being properly protected and stored;
•  the required project sign is appropriately displayed;
•  a wage rate decision is prominently displayed and agrees with contract
documents;
•  project accounting records are maintained which distinguish between
allowable and nonallowable costs, and are supported by receipts or
certified contractor invoices;
•  the sewer system rehabilitation (where appropriate) is on schedule;
•  special construction techniques or practices are being employed in
accordance with the grant agreement;
•  the operational staff has been hired and is being trained in accordance
with the plan of operation;
•  the operation and maintenance manual is being prepared;
•  user charge and sewer use ordinances have been prepared;
•  wastewater treatment during construction is being provided;
•  a procedure is employed to call to the attention of the authorized
representative any deficiencies in design or construction.
  b. Final Inspections—In addition to the items above,  the inspector will
generally seek to determine that:
•  the facilities are complete, operating and, in the case of a treatment
plant, will meet the effluent limitations required by the NPDES permit;
•  the facilities conform to approved plans, specifications and change
orders;
•  all equipment  is operational and performing satisfactorily;
•  appropriate operation and  maintenance staff have been hired, trained
and are capable of carrying out start-up and operational procedures;
•  the laboratory facilities are complete and sufficient to conduct
appropriate tests;
•  the operation and maintenance manual is readily available and
procedures are being followed;
•  the accounting records are adequate and are available for audit;
•  the user charge system,  and sewer use ordinance are  completed, •
approved and ready for implementation.
  Deficiencies noted during the inspections must be corrected. Delay in
correcting deficiencies may delay grant payments.
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       13.9  Grant Payments

       Grant payments are made in accordance with the payment schedule (see
       item 12.3) contained in the Grant Agreement. In the case of a Step 3
       project, the schedule should be modified at the preconstruction
       conference to reflect the contractor's latest best estimate. Payment
       requests may be submitted on the basis of project funds expended (cash)
       or on the basis of project costs incurred (accruals), and will be submitted
       on EPA Form SF-271. Supporting documents (vouchers, reports, etc.)
       may or may not be required depending on the complexities of the work
       performed  and the policies of the State and EPA region in which the
       project is located. Regional offices will inform grantees of the kind of
       supporting documents needed for interim grant payments.
         Only those allowable costs for which project funds have been expended
       or for which project costs  have been incurred may be considered  in
       determining the amount of a payment.
         EPA must limit grant payments to a certain percentage until specific
       program requirements are satisfied. The grant limitations for Step 3 grant
       payments are briefly summarized below.
        a. Operation and Maintenance Manual—No more than 50% of the
       Federal share may be paid until a draft O&M manual is submitted, and
       no more than 90% may be paid until the manual is approved.
        b. Sewer Use Ordinance—No more than 80% of the Federal share may
       be paid until a sewer use ordinance(s) has been submitted and approved.
        c. Sewer Evaluation and Rehabilitation Program—In the case  of
       excessive sewer infiltration/inflow, no more than 80% of the Federal
       share may be paid  unless the grantee is complying with the approved
       sewer system evaluation and rehabilitation schedule.
        d. Municipal Pretreatment Program—No more than 90% of the
       Federal share may be paid until the municipal pretreatment program (if
       applicable) is approved.
        e. Final Inspection—Final payment may not be made until the final
       inspection has been completed and EPA has determined that the
       treatment works has been  satisfactorily constructed in accordance with
       the grant agreement and approved plans and specifications and change
       orders.

       (NOTE: For Step 3 grants approved prior to July 1, 1979, no more than
       50% of the Federal share may be paid until the grantee has submitted
       adequate evidence of the timely development of a user charge system;
       and, no more than 80% until the system is approved. For Step 3 grants
       awarded after June 30, 1979, the UC systems has to be approved before
       the grant is awarded.)
      13.10  Audits
      By accepting a Federal grant for a Step 1, 2 or 3 project, grantees agree
      that their accounts, documents,  records and papers, as well as those of
      subcontractors, will be accessible to EPA, the Comptroller General of the
      United States, or any authorized representative.
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  Auditors will review the project's management, accounting procurement
and property, control records to insure that all costs claimed or incurred
are allowable for grant participation. They will also review the project for
compliance with all applicable grant provisions and conditions. Grantees
will be notified well in advance of the audit so that all pertinent
documents may be assembled for the auditor.


14.0   Other Program Elements

14.1   Allowable and Unallowable Costs

Certain costs incurred during the planning, design and construction of waste-
water treatment facilities are defined in the law or regulations as being eligible
for EPA grant participation. The most obvious of these are the construction
costs, except those construction costs associated with treating, storing or con-
veying industrial wastewater from large industrial users (i.e., those users dis-
charging more than the equivalent, in flow or pollutant loading, of 50,000 gal-
lons per day of domestic wastewater). However, other  costs associated with the
project may or may not be eligible for EPA grant participation. The item by
item listing of these eligible costs would require many pages and is not included
here.
  Generally, to be eligible for grant participation,  project costs must:
  a.  be necessary to the  construction and start-up operation of the
sewage treatment facility, reasonable and not a normal expense of
municipal administration;
  b.  be authorized (or not prohibited) and be consistent with Federal,
State and local laws and regulations;
  c.  be consistent with policies and regulations which are applicable to
both Federally assisted activities and other activities of the unit of
government of which the grantee is a  part;
  d.  not  be included in the costs allocable to any  other Federally
financed program.

14.2   Force Account

Some of the planning, designing or construction of a  project may be
accomplished by using municipal employees.  Generally, however, EPA
prefers that the grantee use outside consultants or contractors to
accomplish project work. In cases where it is desired to use municipal
forces, it  will be necessary to obtain the prior written  approval of EPA to
do so. Applicants wishing to use force account procedures must certify
that:
  a.  municipal employees possess the necessary skills and experience to
accomplish the work;
  b.  the work can be done more economically by  the use of municipal
employees;
  d.  emergency conditions dictate that municipal employees be used.
  If  EPA approves of the force account method, the grantee will be
notified in writing of such approval and will  be advised as to what
records to keep and what administrative costs are  eligible for grant
participation.                                                              _

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     14.3  State Delegation

     As a result of the passage of the Clean Water Act Amendments of 1977, P.L.
     95-217, a State can enter into a delegation agreement with EPA. Upon approval,
     up a 2% of its annual allotment, as authorized under prevailing legislation, can be
     used by a State to fund its conduct of the Construction Grants Program. Most
     States have entered into these agreements and, as they develop the necessary
     competence, are gradually taking over responsibility for administering the pro-
     gram. The purpose of these agreements is to eliminate the need for grant
     approvals at the Federal level and, thereby, permit the speedier processing of
     construction grant applications and conduct of related grant activities.
       In agreements which have been signed,  grant program  responsibilities
     are phased-in  on a gradual basis. That is, initially a State may assume
     responsibility  for such activities as approving plans and specifications and
     change orders, conducting preconstruction conferences, approving the
     administrative adequacy of grant applications, etc. Over  a period of time,
     ranging from  one to three years, responsibility for the full program is
     delegated. At  that time, all grantee documents, except where prohibited
     by law, will be given final approval by the State. Therefore, in those
     instances in the preceeding paragraphs where both the State and EPA are
     indicated as the approving authority, where the function is delegated,
     final approval is given by the State. EPA is not involved. Grantees  will
     be notified in  advance where approval authority is at the State level.
       Certain functions cannot be delegated and, therefore, must be retained
     by EPA. These are (a) the award of grant funds; (b) decisions on the
     need to prepare an environmental impact statement; (c) decisions on, and
     enforcement of, civil rights laws, minority and women's business
     enterprise participation, and equal employment opportunity actions; and
     (d) resolutions of protests, arising from the award of engineering or
     construction contracts, and of audit exceptions.
       EPA's policy is to delegate to States as much of the day-to-day
     program responsibilities as possible so as  to improve operational
     effectiveness. Under delegation, EPA monitors each  State's efforts to
     insure that the Construction Grants Program is  being carried out in
     accordance with prescribed laws and regulations and, that grantee matters
     are being effectively handled.

     14.4   Land Treatment

     On October 3, 1977 the Administrator of EPA issued a policy statement
     on "Land Treatment of Municipal Wastewater." This policy statement
     serves to strengthen and encourage the President's Environmental
     Message to Congress and reads in part, "... the Agency (EPA) will
     press vigorously for publicly owned treatment works to utilize land
     treatment processes to reclaim and recycle municipal wastewater." The
     Congress reinforced this commitment in PL 95-217 by providing
     additional grant incentives for those projects which utilize innovative or
     alternative technologies. Land treatment processes are classified  as
36

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alternative technology and are therefore eligible for 85% Federal grants
(including the cost of land used in the treatment process) provided they
are cost effective.
  All facilities 'plans must address innovative and alternative technologies.
However, land treatment must be given very serious consideration and,
unless substantial reasons exist for not utilizing land treatment, it will be
considered as the preferred alternative. EPA has published many technical
bulletins which will assist consulting engineers and others in evaluating
these techniques. Grantees should be aware of this requirement and work
closely with their engineer and the public to insure that an objective
evaluation of land application is made. The advantages of these processes
and techniques include resource conservation, improved treatment
potential, and 10% more Federal funds for the project.


15.0   References
Several types of references are available which can be of assistance to
applicants.
  To familiarize the applicant with  the more  commonly used  references,
the following is presented.

15.1   P.L. 95-217  The Clean Water Act of 1977

P.L. 95-217 and PX. 96483 amended  P.L. 92-500 the "Federal Water Pollution
Control Act of 1972," and made midcourse corrections to the earlier legislation.
Grantees may hear references to P.L. 92-500 and should recognize that this law
is still in existence but has been slightly changed by subsequent amendments.
  The law contains several parts, each of which is called a Title. Title II,
"Grants for the Construction of Treatment Works", is the title  under
which  EPA is authorized to award  construction grants.
  Each title is divided  into sections. For example, the requirements for
evaluating innovative and alternative wastewater treatment processes are
contained in Section 201 of the law. Section 208 establishes the
requirement for Areawide Waste Treatment Management.

15.2  Code of Federal Regulations

After laws are enacted, it is often necessary for the administering agency
to establish regulations to implement the law. The resulting regulations
are published in the Federal Register, become official policy and
essentially carry  the same weight as the law itself. The many regulations
must be categorized  and the term applied to each subject area is "Title."
(e.g. Title 40 covers the subject "Protection of Environment." Title 12 is
"Banks and Banking." Title 22 is "Foreign Relations.")
  The titles are divided into Chapters. Chapter I, of Title 40, concerns
the Environmental Protection Agency. Each chapter is subdivided into
subchapters. Subchapter B concerns "Grants  and Other Federal
Assistance." The subchapters are subdivided into "Parts." Part  35
concerns "State and Local Assistance." Parts may be  divided  into
                                                                          37

-------
      Sections which are grouped into subparts. Subpart E covers "Grants for
      Construction of Treatment Works—Federal Water Pollution Control Act
      Amendments of 1972" and encompasses the 35.900 series.
        Thus when reference is made to 40 CFR 35.917 it should be
      understood that the reference is to Title 40 of the Code of Federal
      Regulations, Part 35, Section 900, paragraph 17, "Facilities Planning"
      (Step 1).

      153  Other Publications

      Periodically EPA publishes other documents which may be of assistance
      such as Guidelines or Guidance, Technical Bulletins and Reports, and
      Research Reports. Most of the publications which will be of assistance to
      Construction Grants Program grantees are published by the Municipal
      Construction Division of EPA. Information regarding the subjects and
      availability of these publications may be obtained by contacting:

      General Services Administration (8FFS)
      Centralized Mailing List Services
      Bldg. 41,  Denver Federal Center
      Denver, Colorado 80225

        Also, EPA has published a "Handbook of Procedures: Construction
      Grants  Program for Municipal Wastewater Treatment Works" for use by
      State and EPA officials. Copies of these handbooks have been sent to
      engineering consultants and are available at GSA in Denver on a limited
      basis to others with responsibilities for construction grants projects.

      15.4  Program Requirements Memoranda (PRM)

      These are policy clarification and regulation interpretation statements
      developed and issued by EPA Construction Grants Program
      Headquarters  staff. Copies are available to those who need them through
      the GSA  Denver Office noted in 15.3 above.
38

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 Appendix
 U.S. Environmental
 Protection Agency: Region,
 Administrator & Address

 Region 1

 William R. Adams, Jr.
 Environmental Protection Agency
 John F. Kennedy Federal Building
 Room 2203
 Boston, Massachusetts 02203
 617223-7210,
 (Maine, N.H., Vt., Mass., R.I.,
 Conn.)

 Region 2

 Charles S. Warren
 Environmental Protection Agency
 26 Federal Plaza, Room 1009
 New York, New  York 10007
 212 264-2525
 (N.Y., N.J., P.R., V.I.)

 Region 3

 Jack J. Schramm
 Environmental Protection Agency
 6th & Walnut Streets
 Philadelphia, Pennsylvania 19106
 215597-9814
 (Pa., W.Va., Md., Dei., D.C.,
 Va.)

 Region 4

 Rebecca W. Hanmer
 Environmental Protection Agency
 345 Courtland St., NE
 Atlanta, Georgia  30365
 404 257-4727
 (N.C., S.C., Ky.,  Tenn., Ga.,
 Ala., Miss., Fla.)

 Region 5

 John McGuire
 Environmental Protection Agency
230 S. Dearborn Street
Chicago, Illinois 60604
 312 353-2000
(Mich., Wis., Minn., 111., Ind.,
Ohio)
 Region 6

 Adlene Harrison
 Environmental Protection Agency
 1201 Elm Street
 1st International Building
 Dallas, Texas 75270
 214 729-2600
 (Texas, Okla., Ark., La., N.Mex.)

 Region 7

 Kathleen Q. Camin
 Environmental Protection Agency
 324 E. 11th Street
 Kansas City, Missouri 64106
 816 758-5493
 (Kansas, Nebr., Iowa, Mo.)

 Region 8
 State Water Pollution
 Control Agencies

 EPA Region 1

 Connecticut
 Merwin Hupfer, Asst. Director
 Dept. of Environmental
 Protection
 Room 117, State Office Bldg.
 165 Capitol Avenue
 Hartford, Connecticut 06115
 203-566-2373

 Maine
 Roger L. Williams
 Environmental Protection Agency
 I860 Lincoln Street, Suite 900
 Denver, Colorado 80203
 303 327-3895
 (Colo., Mont., Wyo., Utah, N.D.,  Massachusetts
 S.D.)
 Charles King, Director
 Municipal Services
 Dept. of Environmental
 Protection
 State Office Building
 Augusta, Maine 04333
 207-289-3901
Region 9

Sheila Prindiville, Acting
Environmental Protection Agency
215 Freemont Street
San Francisco, California 94105
415 556-2320
(Calif., Ariz., Nev., Hawaii, T.T.
of the Pacific, Guam)

EPA Region 10

Donald P. Dubois
Environmental Protection Agency
1200 6th Avenue
Seattle, Washington 98108
206 399-1220
(Wash,, Ore., Idaho, Alaska)
 Paul Taurasi, Chief of
 Engineering
 Dept. of Environmental Quality
 Engineering
 110 Tremont Street
 Boston, Massachusetts 02108
 617-727-3855

 New Hampshire

 L.M. Collins, Asst. Chief
 Engineer
 NH Water Supply & Pollution
 Control Commission
 Hazen  Drive
 Concord, New Hampshire 03301
 603-271-3503

 Rhode Island

 James  W. Fester, Chief
 Division of Water Resources
 Dept. of Environmental
 Management
 Room  209,  Cannon Bldg.
 75 Davis Street
 Providence, Rhode Island 02908
401-277-2234
                                                                                       39

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Vermont

Reginald A. LaRosa,
Acting Commissioner
Water Resources Division
Dept. of Water Resources
State Office Building
Montpelier, Vermont 05602
802-828-3361

EPA Region 2

New Jersey

Anthony R. Ricigliano,
Deputy Administrator
Construction Grants
Administration
Dept. of Environmental Protection
Division of Water Resources
Post Office Box CN 029
Trenton. New Jersey 08625
609-292-0950

New York

Ernest Trad, Director
Division of Construction
Management
Dept. of Environmental
Conservation
50 Wolf Road
Albany, New York 12205
518-457-3891

Puerto Rico

Pedro Marrero, Vice Chairman
Air and Water
Environmental Quality Board
P.O. Box 11488
Santurce, Puerto Rico  00910
809-725-8692

Virgin Islands

Pedrito Francois, Director
Div. of Natural Resources
Management
P.O. Box 4340
St. Thomas, Virgin Islands 00801
809-774-6420
EPA Region 3

Delaware

Robert Touhey, Manager
Division of Environmental Control
Dept. of Natural Resources &
Environmental Control
Tatnall Building, P.O. Box 1401
Dover, Delaware 19901
302-678-4761

District of Columbia

John Brink, Chief
Bureau of Air & Water Quality
Control
Dept. of Environmental Services
5010 Overlook Avenue, SW
Washington, DC 20002
202-767-7486

Maryland

Richard B. Scllars, Jr.
Construction  Grants & Planning
Programs Administrator
Dept. of Health and Mental
Hygiene
201 W. Preston Street
Baltimore, Maryland 21201
301-383-2761

Pennsylvania

Daniel B. Drawbaugh, Chief
Division of Sewerage & Grants
Dept. of Environmental Resources
P.O. Box 2063
Harrisburg, Pennsylvania 17120
717-787-3481

Virginia

E.R. Simmons, Director
State Water Control Board
Division of Construction Grants
2111 N. Hamilton Street
P.O. Box 11143
Richmond, Virginia 23230
804-257-1017

West Virginia

Warren Means, Branch Head
Municipal Grants Branch
Division of Water Resources
Dept. of Natural Resources
617 Broad Street
Charleston, West Virginia 25301
304-348-0641
EPA Region 4

Alabama

Russell M. Jones
Health Services Administrator
Water Improvement Commission
State Office Building
Montgomery, Alabama 36130
205-277-3630

Florida

Richard W. Smith, Chief
Bureau of Wastewater
Management
and Grants
Dept. of Environmental
Regulation
2600 Blair Stone Road
Tallahassee, Florida 32301
904-488-2582

Mississippi

Scott Armstrong, Chief
Municipal Facilities Section
Air & Water Pollution Control
Commission
P.O. Box 10385
Jackson, Mississippi 39209
601-354-2550

North Carolina

Walter D. Taft, Jr.
205(g) Program Manager
Dept. of Natural Resources
& Community Dev.
P.O. Box 27687
Raleigh, North Carolina 27611
919-733-2504

Georgia

Jack C.  Dozier
Municipal Grants Program
Manager
Environmental Protection Div.
Dept. of Natural Resources
270 Washington Street, S.W.
Atlanta, Georgia 30334
404-656-4769
 40

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Kentucky

Judson Cramer, Chief
Construction Grants
Dept. for Natural Resources &
Environmental Protection
1065 Highway 127 South
Frankfort, Kentucky 40601
502-564-3410

South Carolina

Roger E. Davis, Director
Domestic Wastewater Division
Dept. of Health & Environmental
Control
2600 Bull Street
Columbia, South Carolina 29201
803-758-5067

Tennessee

D. Elmo Lunn, Director
Div. of Water Quality Control
Dept. of Public Health
621 Cordeil Hull Bldg.
Nashville, Tennessee 37210
615-741-6610

EPA Region 5

Illinois

Thomas R, Wallin,
Section Manager
Grants Administration
Environmental Protection Agency
2200 Churchill Road
Springfield, Illinois 62706
217-782-2027

Indiana

Earl Bohner
Stream Pollution Control  Board
1330 West Michigan Street
Indianapolis, Indiana 41206
317-633-0167

Michigan

Dick Hinshon, Chief
Grants Administration Section
Dept. of Natural Resources
P.O. Box 30028
Lansing, Michigan 48909
517-373-0997
Minnesota

Perry T. Beaton, Chief
Division of Water Quality
Facilities Section
Minnesota Pollution Control
Agency
1935 West County Road B2
Roseville, Minnesota 55113
612-296-7201

Ohio

Richard Kuhlman
Grants Administrator
OH Environmental Protection
Agency
361 East  Broad Street
Columbus, Ohio 43215
614-466-8974

Wisconsin

Paulette J. Harder, Director
Bureau of Water Grants
Dept. of Natural Resources
P.O. Box 7921
101 S. Webster Street
Madison, Wisconsin 53707
608-266-5896

EPA Region 6

Arkansas

Charles Bennett, Subgrant
Administrator
Dept. of Pollution Control &
Ecology
8001 National Drive
Little Rock, Arkansas  72209
501-371-1701

Louisiana

James Corver, Director
Division of Health, Safety &
Environmental Quality
Dept. of Health & Human
Resource
P.O. Box 60630
New Orleans, Louisiana 70160
504-568-5100
Texas

Emory G. Long, Director
Construction Grants and
Water Quality Planning
Dept. of Water Resources
P.O. Box  13087
Austin, Texas 78711
512-475-3926

New Mexico

Alice Grisham
Wastewater Construction
Grants Administrator
Environmental Improvement
Agency
P.O. Box 968—Crown Building
Sante Fe,  New Mexico 87503
505-827-5271, ext. 361

Oklahoma

Charles  D. Newton, Chief
Water Quality Service
State Dept. of Health
P.O. Box 53551
Oklahoma City, Oklahoma 73152
405-271-5205

EPA Region 7

Iowa

Joseph E.  Obr, Director
Construction Grants Div.
Dept. of Environmental Quality
Henry A. Wallace Bldg.
900 E. Grant
Des Moines, Iowa 50265
515-284-8854

Kansas

LaVene  Brenden, Chief
Municipal Unit
Dept. of Health & Environment
Forbes Field, Building 740
Topeka, Kansas 66620
913-862-9360

Missouri

Charles  Stiefermann
Construction Grants Program
Dept. of Natural Resources
P.O. Box  1368
Jefferson City, Missouri 65102
314-751-3241
                                                                                           41

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Nebraska

Robert Wail, Chief
Water Pollution Control Division
Dept. of Environmental Control
P.O. Box 94877
Lincoln, Nebraska 68505
402-471-2186

EPA Region 8

Colorado

Ronald  G. Schuyler, Section Chief
Construction Grants Section
Water Quality Control Division
Department of Health
4210 E.  llth Avenue
Denver, Colorado 80220
303-320-8333, ext. 3740

Montana

Joseph Steiner
Water Quality Bureau
Dept. of Health & Environment
Sciences
Helena, Montana 59601
406-449-2406

North Dakota

Keith Demke
Construction Grants Program
Div. of Water Supply & Pollution
Control
Dept. of Health
1200 Missouri Avenue
Bismarck, North Dakota 58501
701-224-4828

Sooth Dakota

Leon Schochenmaier
Construction Grants Section Chief
Dept. of Water & Natural
Resources
Foss Building
Pierre, South Dakota 57501
605-773-3296
Utah

Don A. Ostler, Chief
Engineering &. Construction
Grants Section
State Division of Health
P.O. Box 2500
150 W.N. Temple
Salt Lake City, Utah 84110
801-533-6146

Wyoming

Paul C. Schwieger, P.E.
Municipal Operations Supervisor
Dept. of Environmental Quality
401 W.  19th Street—Equality
Bank Building
Cheyenne, Wyoming 82002
307-777-7783

EPA Region 9

Arizona

David H. Woodruff, Manager
Construction Grants
Environmental Health Services
1740 West Adams Street
Phoenix, Arizona 85007
602-255-1272

California

Raymond Walsh, Chief
Division of Water Quality
State Water Resources Control
Board
P.O. Box 100
Sacramento, California 95801
916-445-7971

Nevada

James B. Williams, Jr.
Construction Grants Officer
Div. of Environmental Protection
201 So. Fall Street,
Capital Complex
Carson City, Nevada 89710
702-885-4670

American Samoa

Pati Faiai, Chairperson
Environmental Quality
Commission
Government of American Samoa
Office of the Governor
Pago, Pago, American Samoa
96920
633-4116
Guam

O.V. Natarajan
Environmental Protection Agency
Government of Guam
P.O. Box 2999
Agana, Guam 96910
646-7916

Hawaii

Dennis Tulang, Supervisor
PMS#1
Environmental Protection &
Health Div.
Dept. of Health
P.O. Box 3378
Honolulu, Hawaii 96801
808-548-6410

Trust Territory of Pacific Islands

Nacha Siren, Director
Div. of Environmental Health
Dept. of Health  Services
Trust Territory of Pacific Islands
Saipan,  Mariana Islands 96950
Via 00-0422

Commonwealth of Northern
Mariannas

George Chan, Director
Division of Environmental
Quality
Dept. of Public Health
Commonwealth of Northern
Mariana
Dr. Torres Hospital
Saipan, CM  96950
 42

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EPA Region 10

Alaska

Keith Kelton, Chief
Facility Construction and
Operation Section
Dept, of Environmental
Conservation
Pouch Z
Juneau, Alaska 99811
907-465-2610

Idaho

Orlando M.  Dalke, Manager
Municipal Facilities
Dept. of Health & Welfare
Statehouse
Boise, Idaho 83720
208-334-4252

Oregon

William Gildow, Chief
Construction Grants Unit
Dept. of Environmental Quality
P.O. Box 1760
Portland, Oregon 97207
503-229-6493

Washington

Norman L. Glenn, Division
Supervisor
Washington State Dept. of Ecology
M/SPV-il
Olympia, Washington 98504
206-753-2846
                                                                                       43

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                                                                                                                               1
35.917-2
STATE
RESPONSIBILITIES
1. DELINEATE AREAS
2. MAP BOUNDARIES
3. CONSULT LOCALS
4. CONSIDER
  INDIVIDUAL
  SYSTEMS
                          ) 21AI (OPTIONAL!  35.920-3(A)I1J
APPLICANT
RESPONSIBILITIES
STATE/EPA
RESPONSIBILITIES
PLAN OF STUDV
1. AREA DELINEATION
2. PLANNING ENTITIES
3. SCOPE ft SCHEDULE
4. COST ESTIMATES
S. PUBLIC COMMENTS

3S.920-3IAK2I
SUBACREEMENTS
PROCUREMENT 135.936)
A/E CONTRACTS 135.3371
APPENDIX C-1

35.920-3IAK3)
CLEARINGHOUSE
COMMENTS
OMB A-9S 130.3061

35.320-1
ELIGIBILITY
GENERAL (30.3151
CONSTRUCTION GRANTS'
(35 S17-3IAI)
35.92021B)
COMPLIANCE WITH
APPLICATION
REQUIREMENTS
PLUS:

36.925-2
COMPLIANCE WITH
WO.M PLANNING

35.925-3
PRIORITY COMPLIANCE

3S.S25-<
AVAILABLE FUNDING

35.825-18
PRIOR COSTS

35.925-20
PROCUREMENT
35.930
AWARD OF GRANT
ASSISTANCE

35.930-1
ACCEPTABLE
PROJECT

3S.S30-2
GRANT AMOUNT

35.930-3
GRANT TERM

35.930-4
PROJECT SCOPE

35.930-5
FEDERAL SHARE

35.9304
LIMITATIONS ON
FEDERAL SHARE
      STEP1
      GRANT
  f ACCEPTANCE / '

35.935
GRANT CONDITIONS

35.935-1
GRANTEE
RESPONSIBILITIES

35.S35-2
PROCUREMENT

35.335-7
ACCESS

35935-9
INITIATION B
COMPLETION
                                           35.925-5
                                           APPLICANT CAPABILITY TO:
                                           (Al PAY NON FEDERAL COSTS
                                           IB) ENSURE FACILITIES
                                             COMPLETION. OttM

                                           43FR pp 80220-4
                                           USE OF MBE

REVIEW
STATE/EPA
j
(FINAL A
PAYMENT I
APPROVAL
(STATE \
PRIORITY 1
SYSTEM J

35.915
/ STEP 3 /

  COMPLIANCE WITH;
  3S.92S-7
  DESIGN REQUIREMENTS
  35.936
  GRANT CONOmOWS
  REFER TO STEP 2
    ACCEPTANCE
REVIEW
STATE/EPA
I 1
APPHUVflL

STEP 3
GRANT
OFFER
                                                                                                 STEPS
                                                                                                 GRANT
                                                                                              ACCEPTANCE/
                                                                                                                                 /
                       35.320-3ICH1I
                       ALL ITEMS SPECIFIED
                       IN 35.920-3IB1
                       EXECUTED INTER-
                       MUNICIPAL AGREEMENT
                       135.920-3(6)161)

                       35 920-310(21
                       CONSTRUCTION
                       DRAWINGS tt SPECS
                       SUITABLE FOR BIDDING

                       35.92D-3ICK3I
                       PLAN OF OPERATION
                       COMPLIANCE SCHEDULE
                       135.920-10)
                                             3S.92O-3ICII4I
                                             PRETREATMENT PROGRAM
                                              135.9071

                                             35.920-3ICHS)
                                             PUBLIC PARTICIPATION

                                             15-920.1
                                             ELIGIBILITY
                                             GENERAL (30 3151
                                             CONSTRUCTION GRANTS
                                             OS.917-3IA))

                                             35.92S-S
                                             APPLICANT CAPABILITY
                                             (Al PAY NON-FEDERAL COSTS
                                             (Bl ENSURE FACILITIES
                                              COMPLETION. OftM

                                             3S.92511
                                             UC SYSTEM

                                             35.927-4
                                             SEWER USE ORDINANCE
                          35.920-2IBI
                          COMPLIANCE WITH
                          APPLICATION
                          REQUIREMENTS.
                          REFER TO STEP 2
                          PLUS:
                          35.930
                          AWARD OF
                          GRANT
                          ASSISTANCE
                          REFER TO
                          STEP1
                          35.925-10
                          PLAN OF OPERATION
                          135.935-12)
                     35.935
                     GRANT CONDITIONS
                     REFER TO STEP 2
                     PLUS:

                     35535-5
                     DAVIS BACON ft
                     RELATED STATUTES
                     I30.41S)
                                                                     EEO (PART I)

                                                                     35.9354
                                                                     SUPERVISION

                                                                     35.935-10
                                                                     COPIES OF
                                                                     CONTRACT
                                                                     DOCUMENTS

                                                                     36.935-12
                                                                     PLAN OF OPERATION

                                                                     3SJ3S13
                                                                     USER CHARGE
                                                                     SYSTEM

                                                                     35935-18
                                                                     SEWER USE
                                                                     ORDINANCE
                                                                     AND EVALUATION/
                                                                     REHABILITATION

                                                                     (35.935-17
                                                                     TRAINING FACILITY)

                                                                     36.935-19
                                                                     PRETREATMENT
                                                                     PROGRAM

                                                                     135.935-20 INNOVATIVE
                                                                     TECHNOLOGY!

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