United States National Training EPA-430/1-81-011
Environmental Protection gnd Operational May 1981
Agency Technology Center
Cincinnati OH 46268
Water
4»EPA Construction Grants
Process for State
Agency Personnel
Student Manual
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Wastewater
CONSTRUCTION GRANTS PROCESS
FOR
STATE AGENCY PERSONNEL
COURSE 250.2
STUDENT MANUAL
U.S. Environmental Protection Agency
National Training and Operational Technology Center, Cincinnati, Ohio
Office of Water Programs Operations, Municipal Construction Division,
Washington, D. C.
February, 1981
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US/EPA
This is not an official policy and standard document.
The opinions, findings and conclusions are not neces-
sarily those of the Environmental Protection Agency.
Every attempt has been made to represent the current
policies and regulations of the EPA at the time of
publication. However, periodic changes are made based
upon the EPA's desire to improve the efficiency of
administering the Construction Grants Program.
The Instructor and Student Manuals were prepared under
contract to ESEI (formerly EcolSciences, inc.) with
assistance provided by A. T. Bowyer, Inc. Project
direction and guidance were provided by Mr. Joseph F.
Santner of NTOTC, U. S. EPA, Cincinnati, Ohio, and
Mr. Albert L. Pelmoter of OWPO, U. S. EPA, Washington,
D. C.
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FOREWORD In 1972 the Congress enacted the "Federal Water
Pollution Control Act Amendments" and authorized
$18 billion for the construction of needed waste-
water treatment facilities. This complex and far-
reaching legislation stated, "it is the national
goal that the discharge of pollutants into the
navigable waters be eliminated by 1985" and "...
wherever attainable, an interim goal of water
quality which provides for the protection and
propagation of fish, shellfish, and wildlife and
provides for recreation in and on the water be
achieved by July 1, 1983."
In 1977 the Congress enacted "The Clean Water Act"
which strengthened and provided anticipated midcourse
corrections to the earlier legislation. The Congress
reaffirmed its commitment to water pollution abate-
ment as represented by the authorization of an
additional $24.5 billion for fiscal years 78-82
for the construction of needed wastewater treatment
facilities.
The funds as authorized by Congress are allotted
to the states and territories of the United States
based on their need for water pollution abatement
projects. Each state or territory in turn is re-
quired to identify and rank on a priority basis
all needed projects within its territorial borders.
Municipalities or other legally constituted bodies
are then encouraged or required to construct these
projects in order to abate water pollution.
The U. S. Environmental Protection Agency is author-
ized to prcvide grants of 75% (up to 85% for eligible
projects) to those municipalities certified by the
states as entitled to priority over all other projects
on the states' priority list. The grants are for
planning, design, and construction of these projects.
The Construction Grants Program is administered by
the Municipal Construction Division, Office of Water
Program Operations, through each of EPA's ten regional
offices. The EPA regional offices work in concert
with their counterparts in state agencies to insure
that projects conform to the statutory and regulatory
requirements of the Act.
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"The Clean Water Act of 1977" also stated that "it
is the policy of Congress that the states manage
the Construction Grants Program under the Act..."
The delegation of management functions to the
states began in 1978 and requires that states
wishing to assume delegation develop an organiza-
tional structure, and hire and train the required
personnel to carry out the program. Each EPA
Regional Administrator is authorized to enter into
individually negotiated agreements with his/her
respective states for this delegation.
The Construction Grants Program is, of necessity,
very complex considering the potential social,
economic, engineering and environmental impacts of
the construction of wastewater treatment facilities.
The responsibilities placed on grantee municipalities
are at times overwhelming, and a need exists for
regulatory agencies to help these municipalities in
satisfying regulatory requirements. State agencies
in turn require knowledgeable dedicated personnel
to work with grantees and efficiently administer
the grants program.
During the winter of 1979/80 a training seminar
was developed and delivered to approximately 14 of
the 32 states desiring delegation. This seminar
series provided the training for the initial influx
of new state employees. A need exists, however,
for continuous training of new state employees as
more and more of the delegated functions are assumed
by the state.
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training seminar in two formats. The
course may be conducted "live" by expe-
rienced state/federal personnel using
Instructor and Student Manuals with
accompanying slides in a classroom set-
ting. Alternatively, the seminar may be
presented using prepared videotapes accom-
panied by Instructor and Student Manuals.
This Instructor Manual is designed for
use with the videotape presentation.
The Instructor and Student Manuals were
prepared by Albert T. Bowyer of A. T. Bowyer,
Inc., under contract to EPA. Questions or
clarifications of items contained in these
manuals may be directed to Mr. Bowyer at
Box 134, 698 Main Road, Towaco, New Jersey
07082, telephone 201-263-2707.
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PART I STUDENT MANUAL
INTRODUCTION
AND PURPOSE
This Student Manual has been prepared to
aid students in understanding the construc-
tion grants process. The course is designed
as an introduction to the Construction
Grants Program and is geared toward new state
agency personnel. Under "The Clean Water
Act of 1977" state agencies are authorized
to assume program functions that were former-
ly carried out by EPA. Many states are
adding new personnel to their staff, and
students attending this course may be engineers,
planners, environmentalists or grants adminis-
tration personnel.
The subject of the course is the management
and administration by state agencies of the
Construction Grants Program. However, the
object of the grants program is the construc-
tion of needed wastewater treatment projects
which abate water pollution and do so without
creating worse environmental problems. Pro-
jects may include new, upgraded or expanded
sewage treatment plants, pumping stations
and force mains, intercepting sewers, collec-
tion sewers, and the storage and treatment
of combined sewer overflows.
The course addresses technical issues to be
considered in the planning and design of
treatment facilities. However, the course is
not intended to be a sanitary engineering
design nor environmental impact statement
preparation course. The purpose of the course
is to introduce you, the student, to the
Construction Grants Program and provide a
foundation from which you will grow in your
technical and administrative duties.
A second purpose of the course is to train
students in the awareness and use of other
reference documents. No one publication nor
regulation contains all of the information
* Instructor Manual is also available for
this course.
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for all the material to be reviewed during
the processing of a grant. Rather, infor-
mation is contained in handbooks, regula-
tions, program requirements memoranda, etc.
Students must, therefore, be aware of and know
how to use the various publications in order
to seek out information.
Students will not enter this course as
neophytes and exit three days later as
experts. Students will only get out of the
course what they put in. This course marks
the beginning of your formal education in
the construction grants process.
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
Municipal Construction Division
Washington, D. C. 20460
TRAINING PROJECT: CONSTRUCTION GRANTS PROCESS FOR
STATE AGENCY PERSONNEL - COURSE 250.2
AGENDA
DAY #1
8:15- 8:45 Registration
8:45- 9:00 Opening Remarks - by State or EPA
9:00- 9:45 TOPIC #1: EVOLUTION OF FEDERAL ROLE IN FINANCING
AND ABATING WATER POLLUTION
Overview of Federal Legislation from
1948 to 1977 - From Incentive Grants
to Enforceable Requirements...From
2% Loans to 85% Grants...From Engineer-
ing Feasibility to Comprehensive
Planning...From a Few Million to
Multibillion Dollars
9:45-10:30 TOPIC #2: FROM LEGISLATION TO PRACTICE
How the Law Evolves into Day to Day
Procedures - P.L. 95-217...Code of
Federal Regulations...Guidelines...
Program Requirements Memoranda...
Handbook of Procedures...Transmittal
Memoranda...Other Terminology
10:30-10:45 Coffee Break
10:45-11:30 TOPIC #3: STATE PROGRAM
Relationship to Construction Grants
Program - State/EPA Agreement...Con-
tinuing Planning Process...State
Priority System...State Strategy...
Annual Work Program...WQM Agencies...
Water Quality Assessment...WQM Plans
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DAY #1
Section 205(g) Delegation of
Administration - Policy...Goal...
Delegation...Agreement Terms...
Delegable Functions...Nondelegable
Functions
11:30-12:00
TOPIC #4: FACILITIES PLAN REVIEW
LUNCH
12:00- 1:00
(Continued)
1:00- 3:00
3:00- 3:15
3:15- 4:15
Contents of Facilities Plan - Required
Elements...Helpful Documents...Major
Components...Preliminary Studies and
Background...Sewer System Evaluation...
Future Situation...Alternative Develop-
ment ... Innovative and Alternative
Technology...Cost-Effectiveness Analy-
sis. ..Alternative Evaluation...Public
Participation...Plan Selection
Review Process - Considerations for
Decision...Decision (no EIS, Prepare
EIS)...Plan Modified or Approved
Coffee Break
TOPIC #5: AVOIDING DELAYS AND RESOLVING PROBLEMS
DURING FACILITIES PLAN PREPARATION
Cost Preference Example Computations ¦
Application of Cost Preference and
Grant Computations for I & A Projects
Case Study - Alternative Development.,
Population Projection...Per Capita
Flows...Environmental Evaluation...
Archaeological Investigations...Avoid-
ance of Delays...Communications and
Project Management
4:15- 4:30
Questions and Answers
ADJOURNMENT FOR DAY
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DAY #2
9:00-10:45
TOPIC #6: STEP 1 GRANT PROCESSING
10:45-11:00
11:00-11:45
11:45-12:15
Preapplication Information - Applicant
Eligibility...Preapplication Confer-
ence
Application Review and Grant Offer
Preparation - Application Package
Contents...Plan of Study...Processing
of Application...Grant Award Proce-
dures .. .Grant Agreement/Amendment
Coffee Break
TOPIC #7: STEP 2 GRANT PROCESSING
Types of Step 2 Grant Projects -
Projects Not Previously Funded...
Segmented Projects...Routine Projects
Application Review and Grant Offer
Preparation - Application Package
Contents...Combination Step 2+3
Grants...Grant Award Procedures...
Grant Agreement/Amendment
Predesign Conference - Discussion Items
TOPIC #8: PROBLEMS AND DELAYS DURING STEP 2
Known Problems - Incomplete Submissions
..Intermunicipal Agreements...Easements
and Site Acquisition...Value Engineer-
ing. ..UC/ICR...Pretreatment...Secondary
Environmental Impacts
Avoidance of Problems - Communication...
Definitions of Work
12:15- 1:15
1:15- 2:15
Lunch
TOPIC #9: PLANS AND SPECIFICATIONS REVIEW
Administrative Review - Bidding Docu-
ments. ..Supplemental Provisions...Other
Provisions
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DAY #2
Technical Review - Policy...Specific
Items
Corps of Engineers Review - Biddability
...Constructability
2:15-3:15 TOPIC #10: STEP 3 GRANT PROCESSING
Types of Step 3 Projects - Projects
Not Previously Funded...Segmented
Projects...Advance Acquisition or
Construction...Routine Projects
Application Review and Grant Offer
Preparation - Application Package
Contents...Grant Award Procedures...
Grant Agreement/Amendment
3:15-3:30 Coffee Break
3:30-4:30 TOPIC #11: PROCUREMENT OF CONSTRUCTION CONTRACTS
Administrative Procedures - Authoriza-
tion to Advertise...Review of Bids...
Grant Increases/Decreases...Protests
...Authorization to Award Contracts
ADJOURNMENT FOR DAY
DAY #3
9:00- 9:30 TOPIC #11 (Continued)
Preconstruction Conference - Purpose
...Items to be Discussed
9:30-10:30 TOPIC #12: MONITORING OF CONSTRUCTION ACTIVITIES
Responsibilities - Grantee...Consul-
tant. ..State...Federal
On-Site Surveillance - Interim
Inspections...Final Inspections
Change Orders - Purpose...Types...
Potential Problems...Review Procedures
10:30-10:45 Coffee Break
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Plan of Operation - Staffing and
Training...Administration...Budget
...Emergency Plan...O & M Manual
Payment Conditions - 0 & M Manual
...Sewer Use Ordinance...Sewer
Rehabilitation...UC/ICR...Municipal
Pretreatment...Final Payment
U.S. Army Corps of Engineers -
Agreements
Construction Management - Require-
ments. ..Definition...Early Involve-
ment. ..Why?
11:15-12:00 TOPIC #13: SUMMARY OF FINANCIAL CONSIDERATIONS
Eligibility and Allowability -
Differences...Determination of
Allowability
Force Account - EPA Approval...
Other Considerations
Grant Increases/Decreases - Increases
...Decreases
Change Orders - Types...Grantee's
Responsibility...Compensation
Contingency Allowance
Payment Schedules and Limitations -
Outlay Schedule...Payment Requests
...Limitations
Audits - Types...Necessity and Extent
12:00- 1:00 Lunch
1:00- 2:00 Questions and Answers
2:00- 3:00 TOPIC #14: V7HAT DELEGATION MEANS TO THE STATE
OF
(To be delivered by appropriate state
and/or regional EPA representative)
DAY #3
(Continued)
10:45-11:15
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Delegation Agreement - Schedule.
Functions...Responsibilities
Organization - State Government.
Division or Department
Staffing
Staff Training - Basic Training.
Advanced Training
ADJOURNMENT
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Topic #1, p. 1 of 4
Topic #1: EVOLUTION OF FEDERAL ROLE IN FINANCING
AND ABATING WATER POLLUTION
This topic traces the historical role of federal government from
loans to grants up to the newly enacted "Clean Water Act of 1977."
Note the changes in trend from incentive grants to enforceable
requirements, from 2% loans to 85% grants, from engineering
feasibility to comprehensive planning, from a few million dollars
to multibillions of dollars.
I. P.L. 80-845 "1948 Water Pollution Control Law"
$22.5 million/yr; FY 1949-1953; 2% loans for con-
struction of wastewater treatment works; limited
to $250,000 or one-third project cost
$1 million/yr; FY 1949-1953; grants to states for
pollution control studies
$800,000/yr; FY 1949-1953; grants to develop plans
and specifications for construction
II. P.L. 82-579
- passed in 1952; extended 1948 Act for three
additional years
III. P.L. 84-660 "1956 Water Pollution Control Act"
$50 raillion/yr; grants to construct wastewater treat-
ment works; limit 30% or $250,000/project for inter-
ceptor or STP; minimum primary treatment; FY 1957-1961
- $3 million/yr for states to prepare pollution control
plans
IV. P.L. 87-88 "1961 Amendments to P.L. 84-660"
extended P.L. 84-660; raised grant limitation to
$600,000/project or 30%; limit of $2.4 million/
project or 30% for multimunicipal projects
V. P.L. 89-234 "Water Quality Act of 1965"
states required to establish water quality standards
by 6/30/67
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Topic #1, p. 2 of 4
VI. P.L. 89-753 "Clean Water Restoration Act 6f 1966"
grants to 30%; no $ limit
- grants to 40%; if state made 30% grant
- grants to 50%; if state made 25% grant and had
adopted enforceable water quality standards
- grants to 33%, 44% or 55% as above if project
approved by metropolitan or regional planning
agency as conforming with comprehensive plan ¦
VII. P.L. 92-500 "The Federal Water Pollution Control
Act Amendments of 1972"
-t grants to 75% of eligible cost for STP, interceptor
collection systems and storm water separation;
- minimum secondary treatment
- $18 billion; FY 1972-1977
water quality management plans (WQM)
basin plans (303[e])
areawide waste treatment management (208)
all discharges in state to be inventoried
3 step grant process
Step 1 - planning
Step 2 - plans and specifications
Step 3 - construction
facilities planning including
alternative displays and evaluation,
environmental assessment,
infiltration/inflow analysis,
public input
- NPDES permit
- UC/ICR
VIII. P.L. 95-26 "Supplemental Appropriations Act"
$1 billion supplemental appropriations to P.L. 92-500
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Topic #1, p. 3 of 4
IX. P.L. 95-217 "Clean Water Act of 1977"
- $24.5 billion; FY 1978-1982
privately owned systems eligible for grants under
certain conditions
cost effectiveness modified for innovative and
alternative technology not to exceed 15% of most
cost effective alternative
grants to 85% for components of treatment plant
meeting innovative or alternative technology
guidelines
combined Step 2+3 grants where construction is
$4 million or less ($5 million in designated high
cost cities) and population 25,000 or less
ad valorem tax system O.K. in certain circumstances
ICR exempts users with 25,000 gpd or less and postponed
for 18 months repayment of recovered funds to U. S.
Treasury
small community set aside
state delegation of program functions
reimbursement extended
no grants for treatment of pollutants from separate
storm sewers
- buy American clause
modification of secondary treatment requirement under
certain conditions (generally when justified for ocean
discharges)
extends secondary treatment deadline on case-by-case
basis
municipal pretreatment program
Special note is to be taken of the final regulations implementing
P.L. 95-217 and integrating them with the prior (2/11/74) regula-
tions as published by EPA in the Federal Register (Vol. 43,
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Topic #1, p. 4 of 4
No. 188 - Wednesday, September 27, 1978). The preamble to the
regulations contains important explanations of the policies
which led to publication in final form. In addition, special
note should be made of 40 CFR Part 25 Public Participation
(2/16/79) and 40 CFR Part 403 Pretreatment (6/26/78).
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QUIZ
- TOPIC #1
Evolution of Federal Role in Financing
and Abating Water Pollution
In what year did the federal government first become involved
in a grant and loan program for the construction of sewage
treatment works?
What law is considered the true beginning of the Construe
tion Grants Program?
What minimum level of treatment was required under the 1956
Water Pollution Control Act?
What was the maximum percentage grant for the construction of
treatment works under legislation prior to 1972?
Collection systems were eligible for grant participation
under P.L. 84-660. True or False
The three step grant process was first introduced under
P.L. 92-500. True or False
User charges and industrial cost recovery systems have been
required for all grantees since P.L. 84-660. True or False
The Clean Water Act of 1977 placed an 18 month moratorium
on the collection of user charges. True or False
Under P.L. 95-217 all point dischargers were required to
achieve secondary treatment by July 1, 1977. True or False
For states required to set aside 4% of the states' allotment
for small community projects, these funds may be used for
either conventional concepts of treatment or alternative
technology. True or False
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Topic #1 Quiz (Cont'd.)
11. Under P.L. 95-217 grants may not be made for the treatment
of pollutants from separate storm sewers. True or False
12. The current legislation under which the grants program is
administered is (1) P.L. 84-660; (2) P.L. 92-500; (3) P.L.
95-217?
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Topic #2, p. 1 of 5
Topic #2: FROM LEGISLATION TO PRACTICE
Terminology
A. P.L. 95-217; Public Law, 95th Congress, 217^ Law
B. Rules and regulations; promulgated in Federal Register,
effect of law
C. Program requirements memoranda (PRM's formerly PG's);
policy statement and clarification, not law
D. Guidelines; Handbook of Procedures, etc., helpful
suggestions
E. Technical bulletins; particular subjects "state-of-
the-art"
F. Process design manuals; latest advances in various
sanitary engineering processes
P.L. 95-217
A. Five titles
1. Research and Related Program
2. Grants for Construction of Treatment Works
3. Standards and Enforcement
4. Permits and Licenses
5. General Provisions
B. Sections within law
1. Section 201 - Title II
2. Section 303(e) - Title III
Code of Federal Regulations (CFR)
A. Implementation regulations
B. Published in preliminary and final form
C. Full force of law once published in final form
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Topic #2, p. 2 of 5
Example
1. Title 40 - Protection of Environment
2. Title 3 - The President
3. Title 10 - Energy
4. Title 22 - Foreign Relations
We are concerned with Title 40
Title 40-3 chapters
I - EPA
IV - Low Emissions Vehicle Certification Board
V - Council on Environmental Quality
II & III - Reserved
Subchapters of Chapter I
A - General
B - Grants and Other Federal Assistance
We are concerned with Subchapter "B"
Parts of subchapters
Part 30 - General Grant Regulations and Procedures
Part 33 - Subagreements
Part 35 - State and Local Assistance
Part 39 - Loan Guarantees for Construction
of Treatment Works
Part 40 - Research and Demonstration Grants
Part 45 - Training Grants and Manpower Forecasting
Part 46 - Fellowships
Parts 47 through 49 - Reserved
We are concerned with Part 35
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Topic #2, p. 3 of 5
SubpartB of parts
Subpart A - Reserved
Subpart B - Program Grants
Subpart C - Grants for Construction of
Wastewater Treatment Works
Subpart D - Reimbursement Grants
Subpart E - Grants for Construction of Treatment
Works - Clean Water Act
Subpart F - State Management Assistance Grants
Subpart G - Grants for Water Quality Planning,
Management and Implementation
Generally we are interested in Subpart E
Sections of subparts
Section 917 - Facilities Planning
Subsections of sections
917-1 Contents of Facilities Plan
-2 State Responsibilities
-3 Federal Assistance
Example: 40 CFR 35.927-1 means
Title 4 0 - Protection of Environment
Chapter I - EPA
Subchapter B - Grants and Other Federal Assistance
Part 35 - State and Local Assistance
Subpart E - Grants for Construction of Treat-
ment Works - Clean Water Act
Section 927 - Sewer System Evaluation and
Rehabilitation
Subsection 1 - Infiltration/Inflow Analysi
or
40, I, B, 35, E, 927, 1
Too cumbersome, therefore abbreviated to 40 CFR 35.927
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Topic if2, p. 4 of 5
Guidelines
A. Facilities Planning (MCD-46)
B. Sewer System Evaluation Survey (MCD-19)
C. Innovative and Alternative Technology
Assessment (MCD-53)
D. Mainly MCD's (Municipal Construction Division)
Program Memoranda
A. Program Requirements Memoranda (PRM's) - construction
grants policy issued by headquarters; distributed to
EPA regional offices and state agencies as well as
others; periodically published in bound form as
supplement to MCD-02.0
B. Program Operations Memoranda (POM's) - guidance.of
internal operations of the Construction Grants Program
C. Transmittal Memoranda (TM's) - used to update Handbook
of Procedures (MCD-03)? issued periodically
D. Executive Order (EO) - President's policy statement;
usually translated into PRM or other EPA document
where applicable to Construction Grants Program
E. Others
Facilities Requirement Division (FRD's)
Technology Transfer publications
lindbook of Procedures (MCD-03)
A. Day-to-day procedures for reviewing and processing
construction grants projects
B. Specific elements of processing a grant
Purpose
Discussion section
Review procedures
Reference section
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Topic #2, p. 5 of 5
C. Major sections include
General handbook discussion and user's guide
State Program
Step 1, 2, 3 and 2+3
Financial Considerations
D. Updated by TM's
VII. Other Terminology
A. Authorization - The amount of money specified in the
basic legislation. In the case of
P.L. 95-217 the authorization is $4.5
billion for FY 78 and $5.0 for each
of the next four FY's.
B. Appropriation - The amount of money Congress appro-
priates each year for a specific
program. Appropriations may range
from zero to the authorization. For
example, Congress appropriated $3.4
billion for FY 80 while the legislation
authorized $5.0 billion.
C. Allotment - The amount of money assigned to each
state based on the appropriation and a
formula in the law.
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QUIZ - TOPIC #2
From Legislation to Practice
Define each letter or number in P.L. 95-217.
Section 201 refers to regulations or a part of the law?
What does CFR mean?
Regulations carry the force of law once published in final
form in the Federal Register. True or False
Title 40 of CFR contains regulations for the Department of
Energy. True or False
Using the 9/27/7 8 regulations, what is the heading for
40 CFR 35.927-1?
What words do the following letters represent?
a. MCD
b. PRM
c. POM
d. EO
e. FRD
f. TM
PRM's are used to update the Handbook of Procedures (MCD-03).
True or False
The Handbook of Procedures was written exclusively to assist
grantees' consultants. True or False
The terms authorization and appropriation are synonymous?
True or False
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Topic #2 Quiz (Cont'd.)
11. I'.L. 95-217 authorizes $5 billion for FY 81 for the con-
struction of wastewater treatment facilities. Congress
may appropriate $4 billion without changing P.L. 95-217.
True or False
12. Allotment is the amount of money assigned to each state
based on the appropriation and a formula. True or False
13. VThat is the federal fiscal year?
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Topic #3, p. 1 of 7
Topic #3: STATE PROGRAM
I. Components
A. State/EPA Agreement (covers Sections 106, 208, 205(g)
and 314) - an annually negotiated agreement between
EPA and state agency identifying
- Problems
- Objectives
- Priorities
- Coordination and integration with other programs
and includes the annual state work program
B. Continuing Planning Process (CPP) - a document that
describes a process for establishing and revising
- Policies
- Procedures
- Practices
of the state agency for achieving the goals of the CWA.
Revisions to the policies, procedures and practices
result from state work program outputs and comprise
the WQM process. The CPP will also contain
- State priority system
C. State Priority System - the procedure and criteria for
rating and ranking of needed projects; criteria takes
into account
- Severity of pollution
- Existing population affected
- Need for the maintenance of high quality waters
- Category of need from "Needs Survey"
- Innovative and alternative technology projects
and projects requiring 100% replacement grants
- Other criteria
- Small and rural communities
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Topic #3, p. 2 of 7
- Not considered
- Project area's development needs not
related to pollution abatement
- The geographic region within the state
- Future population growth projections
- Step sequence, allotment deadline and total funds
available
The resulting state priority list includes needed projects
over a five year period and identifies those for the
coming fiscal year (fundable portion of list).
State Strategy - part of the annual work program and
updated annually, the state strategy addresses
- 5 year goals
- Identification of responsible agencies for
conducting activities
- Summary of anticipated federal and other funds
The state strategy shall address the problems, solutions
and priorities in approved WQM plans and recommend
revisions to WQM plans where appropriate.
Annual Work Program - part of the state/EPA agreement and
consistent with the CPP; includes the state strategy.
The annual work program shall also contain
- Summary and evaluation of the current year 1s
program including outputs
- Outputs to be produced during the next year in
16 categories (see 40 CFR 35.1513-5[c]).
Included in the categories are
- Person years
- Costs
- Funding sources
- Milestone for completion of outputs
- Disbursement schedule
- Responsible agencies
- State priority list
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Topic #3, p. 3 of 7
F. WQM Agencies - an entire state is subjected to areawide
waste treatment management planning to the extent
appropriate and as agreed upon between the state and
EPA. The WQM agencies may be either
- Designated by the Governor (sometimes called
208 agencies, COG's, county planning agencies,
etc.)
- State agency (for nondesignated areas)
Designated agencies may receive grants directly from EPA
but must coordinate and integrate their activities with
the other state programs.
G. Water Quality Assessment - a biennial document required
by Section 305(b) of the CWA which assesses current
water quality and addresses
- Monitoring to determine the impact of nonpoint
source pollution
- Classification of stream segments (either effluent
limited or water quality limited segments)
- Evaluation of the effectiveness of existing point
and nonpoint controls in achieving water quality
goals
- Determination of relative pollutant loading
attributable to point and nonpoint sources
- Determination of the impact of air and other non-
water environmental pollution sources on water
quality such as population changes, changes in
land use or economic conditions
H. WQM Plans - a document which is the output from the annual
work program and incorporates information developed in
the water quality assessment. The WQM plan resolves
specific pollution control problems and includes
- Control needs
- General
- Total maximum daily loads, wasteload
allocations
24
-------
Topic #3, p. 4 of 7
- Dredged or fill program
- Nonpoint source control
- Municipal and industrial needs
- Urban stormwater
- Residual waste control, land disposal
- Water quality standards
- Water conservation
- NPDES permit conditions
- Regulatory and other programs needed to implement
the conclusions of the plan
- Identification of the management agencies which
will be responsible for implementing the conclu-
sions of the plan (note 201 facilities planning
grantees will be identified in this section)
- Environmental, social and economic impacts of the
implementing plans including population projections
- An analysis of open space and recreational
opportunities
- An analysis of urban impacts and mitigative
measures
- Coordination with other agencies and government
bodies
- A method of evaluating implemented portions of the
plan and methods of plan revision as necessary
NOTE: Go to next page for discussion of visual.
WQM Planning's Relationship with Construction Grants Program
A. WQM plans identify agencies eligible for construction
grants and may designate the facilities planning
boundaries
B. WQM plans will specify wasteload allocations and popula-
tion projections to be used in facilities planning
C. Step 1 facilities planning grants must conform with
approved WQM plans
25
-------
STATE CONTINUING PLANNING PROCESS
Given: Water Quality Standards
Waste Load Allocation)
Solution:
208 Plan (if designated)
Priority Listing
201 Plan
Construct Facilities
Regional Solution
201 Area
Facility Planning
Area (201)
201 Area
201 Area
Point
Source
/ New System
' No NPDES
Permit Yet
ro
'oint
rce
Point
Source
Water
Supply
Min. Seconda
Treatment
Water Quality
Limited Segment
i Point
5 Source
Stream
Effluent
Limited
Segment
201 Area
Rapids
Reaeration
Flow
?'on-point Source
Existing STP
Has NPDES Permit
City x:
Townships Xj and X
Borough X.
Non-point Source
3
4 . County X,.
Ui
-------
Topic #3, p. 6 of 7
III. Section 205(g) Delegation of Administration
A. Policy: EPA's policy is to decentralize management of
the wastewater treatment Construction Grants Program to
the maximum extent possible
B. Goal: prevent federal/state duplication; increase
operating efficiency; make states more responsible for
day-to-day and project-by-project management of the
Construction Grants Program
C. Delegation agreement terms
1. Designation of an organizational unit within the
state agency responsible for implementing the program
2. Staffing including hiring and training of new personnel
3. Accounting and auditing procedures
4. Schedules for assumption of delegated functions
5. Cost estimates (not to exceed 2% of state's allotment
or $400,000, whichever is greater)
6. Plan for coordination with WQM planning
7. Detailed procedures for each delegated function
8. EPA review procedures
D. Delegable functions
1. Step 1 - Preapplication conference, plan of study,
subagreements, subagreement cost analysis, infil-
tration/inflow analysis, facilities plan, environmental
assessment and related documents, public participation,
relocation plans, cost-effectiveness analysis, and
analysis of BPWTT and innovative and alternative
wastewater treatment technology application
2. Step 2 - Subagreements, subagreement cost analysis,
user charge and industrial cost recovery systems,
plans and specifications for construction, preliminary
plan of operation, and the plan and schedule for the
Operation and Maintenance Manual
27
-------
Topic #3, p. 7 of 7
3. Step 3 - Subagreements, subagreement cost analysis,
bid solicitation and contract documents, contract
change orders and amendments, draft and final
Operation and Maintenance Manuals, final plans of
operation, interim and final inspections, sewer
use ordinances, and audits
4. Small community assistance - the state may serve as
a community's contracting agent and undertake
(a) Negotiating and administering planning, design
and construction subagreements
(b) Providing technical advice (especially on cost-
effective and innovative alternatives
(c) Assisting grantees in exercising their resident
engineering responsibilities
E. Nondelegable functions
1. Award of Step 1, 2, 3 and 2+3 grants and amendments
2. Decision whether to prepare an EIS or issue a finding
of no significant impact (FNSI) in accordance with
the NEPA; also preparation and issuance of EIS
3. Civil rights determination and enforcement
4. Final dispute determinations for ineligibility
5. Determinations of protests
6. Resolution of audit exceptions
7. Determination that an overriding federal interest
exists which requires greater federal oversight or
participation
B. Determinations under federal statutes other than the
Clean Water Act
9. AST/AWT determinations
28
-------
QUIZ - TOPIC #3
State Program
What is the difference between the state priority system and
state priority list?
Mathematical modeling of river basins to determine waste
load allocations is generally performed under authority of
Section 208 of P.L. 92-500, Areawide Waste Treatment Manage-
ment. True or False
Water Quality Management (WQM) planning encompasses both
basin plans and areawide waste treatment management. True
or False
If water quality standards are achieved for a segment of
stream in which all point source discharges need only provide
secondary treatment, the segment is classified as an effluent
limited segment. True or False
Approved WQM plans specify populations projections which
may not be exceeded in facilities plans? True or False
An applicant municipality for a grant must be the one identified
in an approved WQM plan? True or False
If the government has not designated a 208 area, no further
studies are required for that area. True or False
Construction grants monies are used to fund WQM planning.
True or False
When a facilities plan is reviewed by the state, it is not
necessary to compare the selected plan with an approved
WQM plan? True or False
Mark "D" next to the functions which may be delegated to a
state by EPA and "ND" next to those which may not.
29
-------
Topic #3 Quiz (Cont'd.)
a. Award of Step 1, 2, 2+3, or 3 grants
b. Review and certification of architectural/engineering
procurement procedures
c. Review and certification of infiltration/inflow analysis
d. Review and certification of environmental information
document
e. Decision as to whether environmental impact statement
is necessary
f. Preparation of environmental impact statement to
satisfy National Environmental Policy Act
g. Review and certification of plans and specifications
h. Review and certification of Operation and Maintenance
Manual
i. Advanced secondary treatment/advanced wastewater
treatment determinations
j. Preparation of environmental assessment
k. Review and certification of value engineering analysis
1. Resolution of audit exceptions
30
-------
Topic #4, p. 1 of 11
ic #4: FACILITIES PLAN REVIEW
General
After a Step 1 grant offer has been made and accepted,
the grantee and his consultant will begin preparing the
facilities plan. During its preparation the state/federal
project manager should contact the grantee at periodic
intervals and offer help and assistance in understanding
the requirements and resolving problems. Site visits to
the grantee or consultant's office during this time are a
demonstrated method of avoiding delays and precluding
omissions in the facilities plan.
A. Help grantee during facilities plan preparation
B. Approvals prior to EPA receipt of facilitifes plan
1. Clearinghouse (A-95)
2. State certification (if not delegated) that
project conforms with WQM plans and regulations
Contents of Facilities Plan (40 CFR 35.917-1)
A. Required elements
1. A description of the treatment works for which
plans and specifications will be prepared including
- Engineering data
- Cost estimates
- Schedules for completion of design
and construction
2. A description of the complete treatment system
of which the works are a part
3. Infiltration/inflow documentation
4. A cost-effectiveness analysis of 1, 2, and
alternatives including evaluation of
a. The relationship of capacity to needs and
reserve
31
-------
Topic #4, p. 2 of 11
b. Flow and waste reduction, including non-
structural measures
c. Optimum performance of existing system
d. Ability to meet effluent limitations
e. Application of best practicable waste treat-
ment technology for each of the following
waste treatment management techniques
(1) Biological or physical-chemical treatment
and discharge to receiving (surface) waters
(2) Reuse of wastewater and recycling of
pollutants
(3) Land application techniques (EPA preferred
alternative)
(4) Revenue generating applications
(5) On-site and nonconventional systems
(heavy emphasis)
f. Ultimate disposal of effluent and sludge
g. The environmental impacts as contained in an
adequate environmental information document
h. Innovative and alternative technology processes
i. Primary energy requirements
Effluent limitations or NPDES permit
Clearinghouse comments
A final responsiveness summary of public participation
A statement that grantee has resources to construct,
operate and maintain the treatment works
A statement of compliance with Civil Rights Act
A description of recreation, open space and water
access opportunities analyzed in the recommended plan
A municipal pretreatment program
32
-------
Topic #4, p. 3 of 11
12. An estimate of total project costs and charges to
customers
13. A statement on the availability and estimated cost
of proposed sites
Item 4.g. above is further defined in EPA's regulations
implementing the National Environmental Policy Act (NEPA)
40 CFR 6.507(c) and reads in part, "An adequate environ-
mental information document [EID] should be an integral
part of any facilities plan submitted to EPA or to a
State." The EID should address the following:
1. A description of the existing environment, with
emphasis on the conditions relevant to the analysis
of alternatives
2. A description of the future environment without the
project (no action)
3. A discussion of the purpose and need for wastewater
treatment in the planning area
4. Documentation of sources used in the evaluation
5. An evaluation of alternatives, with attention given
to long term impacts, irreversible impacts and
induced impacts
6. A discussion of the environmental consequences,
including direct and indirect effects of the
proposed action
7. A description of steps to minimize adverse effects,
both structural and nonstructural, considered in
the plan or identified during review, including
any which should become contingencies to award
of further grant assistance
Helpful documents
To assist the grantee the EPA has published two helpful
documents:
1. "Guidance for Preparing A Facilities Plan" (MCD-46) -
this document contains a suggested format for
facilities plan presentation which may or may not
be followed by grantee at their option. Most
facilities plans do follow the format, however.
The "Handbook of Procedures" (MCD-03) assumes the
suggested format for review purposes.
33
-------
Topic #4, p. 4 of 11
2. "Environmental Assessment of Construction Grants
Projects" (FRD-5)
C. Major components of facilities plans
1. Preliminary studies and background
2. Future situation
3. Alternatives
4. Public input
5. Plan selection
D. Preliminary studies and background
1. Area description (environmental inventory)
2. Population (historical and present) and land use
3. Water quality (existing for both ground and surface
waters)
4. Environmentally sensitive areas (steep slopes, rare
and endangered species, unique features, etc.)
5. Existing flows
6. Existing system performance (bypass, sewer backups,
treatment performance)
7. Sewer system evaluation
E. Sewer system evaluation (40 CFR 35.927; see MCD-19)
1. Infiltration/inflow (I/I) analysis
2. Sewer system evaluation survey (SSES)
3. Rehabilitation
F. Future situation
1. Planning period (20 years for treatment plant
capacity, up to 40 years for intercepting sewers)
2. Population projections
34
-------
Topic #4, p. 5 of 11
a. WQM plans (208 projections)
b. State disaggregation
c. Recent trends
G. Alternative development
1. Preliminary work
a. Needs survey (PRM 78-9)
b. Study area population versus service area
population
c. Future flows
(1) Existing average daily base flow (ADBF)
(2) Nonexcessive I/I
(3) Projected flow from
- Residential
- Commercial
- Industrial
(4) Flow reduction measures (water conservation)
2. Conceptional alternatives
a. No action
b. Optimum performance of existing systems
c. Regional and subregional systems including
on-site systems
3. Waste treatment management techniques employing best
practical waste treatment technology (BPWTT) for
a. Treatment and discharge to surface waters
b. Recycle/reuse
c. Land treatment (preferred choice of EPA)
d. Revenue generating systems
e. On-site and nonconventional systems
35
-------
Topic #4, p. 6 of 11
4. Effluent limitations
a. Select correct set for each alternative from
(1) BPWTT
(2) NPDES permit as applicable
(3) WQM plan
5. Summary of alternative development - major alternatives
a. Effluent
(1) Small alternative wastewater systems
(2) Land treatment alternatives
(3) Conventional concepts of treatment
(4) Optimum performance or integration of
existing systems
b. Sludge disposal
(1) Land fill
(2) Land application (including composting)
(3) Incineration
(4) Codisposal
H. Innovative and alternative technology (see MCD-53)*
1. Alternative technology - proven processes or tech-
niques which either reclaim or reuse water, recycle
wastewater constituents, eliminate discharge of
pollutants or recover energy
a. On-site and nonconventional systems
(1) Reduce costs, resource conservation,
preclude adverse secondary environmental
impacts
(2) Include septic tanks, septage treatment,
cluster septics, mounds systems, small
diameter gravity (6" or smaller), pressure
or vacuum sewers
* See page 32 for visual.
36
-------
INNOVATIVE AND ALTERNATIVE TECHNOLOGY DECISION METHODOLOGY
CO
—I
ALTERNATIVE TECHNOLOGY
Specifically identified forms of
treatment and unit
processes
Effluent Treatment
Enerqy Recovery
- land treatment
- co-disposal of
• aquifer recharge
Sludge and refuse
- aquaculture
- anaerobic digestion
- silviculture
with >90% methane
- direct reuse
recovery
(non potable)
- seif-sustaining
- horticulture
Incineration
- revegetatlon of
disturbed land
Individual and On-
- containment ponds
Site Syst*ws
- treatment and storage
prior to land
- on-site treatment
applicatton
- septaye treatment
- preapplIcation treat-
- alternative col-
ment
lection systems
for small com-
Sludge
muni ties
• land applIcation
- composting prior to
land application
- drying prior to
land application
Fully Proven
In Circumstances
Weet Innovative
Criteria
YES
NO
¦QA
YES
NO
<0>B
CONVENTIONAL CONCEPTS OF CENIRAI I2E0 1REAIHENT
YES
•/
Generally defined biological or physical chemical
processes with direct point source discharges to
surface waters
NO
OA
YES
NO
-6b
Cost-Effective
YES
USX cost pre-
ference for
Ng publicly owned
YES JL tos* 1>rt'
C ference for
NO
publtcly owned
Classification ard
Funding Decision
851 alternative
not funded
851 innovative
not funded
not funded
YES
NO
YES
r no cost
*• preference
-7SI conventional
NO
J[ 1151 cost pre-
^ D ference for
not funded
8St Innovative
publicly owned If
energy criteria
Is met not
funded
•-3
O
T)
P-
O
=*:
•t*
Tl
O
not funded
-------
Topic #4, p. 8 of 11
(3) Must reading is PRM 79-8 dated 5/9/79
b. Land treatment
(1) Potentially reduces costs, conserves
resources
(2) Preference of EPA
(3) Three systems of which first two must be
evaluated in detail
- Slow rate (crop irrigation)
- Rapid infiltration
- Overland flow
(4) Potential conflict with state preapplication
treatment requirements
(5) Land costs for land used as integral part
of treatment process or storage is eligible
for 85% grant
2. Innovative processes and techniques
- Developed processes or techniques which are
not fully proven in the circumstances of
contemplated use (risk but corresponding
benefit)
- May be alternative technology or conventional
concepts of treatment but must provide signifi-
cant advancement over the state-of-the-art
- Definition flexible and subject to interpre-
tation by EPA
a. Criteria to be applied
(1) Life cycle cost (LCC) 15% less than noninnovative
(2) Net primary energy requirements are 20%
less than noninnovative
(3) Improved reliability
(4) Better management of toxics
(5) Increased environmental benefits
38
-------
Topic #4 r p. 9 of 11
(6) New or improved methods of joint municipal
and industrial treatment
(7) Regional Administrator's discretionary
authority
Cost-effectiveness analysis
1. Comparison
a. Alternatives must be comparable in terms of
population and area served, and effluent
limitations
b. Noninnovative alternative must be identified
which is
- Least costly
- Least net primary energy
c. Noninnovative alternative must be cost-effective
d. Cost basis for comparison is the present worth
cost
2. Cost preference
Innovative or alternative technology may be as much
as 15% more expensive than the least costly non-
innovative alternative and still be considered equal
a. Less than 50% - if the proposed innovative
components of a treatment project represent
less than 50% of the total present worth of the
treatment project, then only the replaced
noninnovative components receive the 115% cost
preference
b. Equal to or more than 50% - if the proposed
innovative components of a treatment project are
greater than or equal to 50% of the total present
worth of the treatment project, then the entire
system receives 115% cost preference
Alternative evaluation
All alternatives must meet the enforceable requirements
of the CWA and be evaluated on the basis of
1. Engineering - feasibility and energy analysis
2. Environmental - primary and secondary impacts
39
-------
Topic #4, p. 10 of 11
3. Economics - present worth cost-effectiveness
4. Institutional considerations - implementation
capability
5. Public participation
K. Public participation
An active public participation program must be conducted
by the grantee in accordance with the regulations 40 CFR
Part 25 (2/16/79) and include either
1. Basic program
2. Full scale program
L. Plan selection
1. Recommended plan must be
a. Cost-effective
b. Environmentally sound
c. Capable of implementation
d. Acceptable to the public
2. All facilities plans must include
a. Discussion of NEPA criteria
b. Schedule for implementation
c. Clearinghouse comments
d. Summary of public participation
e. NPDES permit compliance
f. Civil Rights Act of 1964 compliance
g. Legal authority of management agency to
implement plan
h. Municipal pretreatment program (where applicable)
i. Statement on availability of proposed sites
j. Recreation and open space opportunities
40
-------
Topic #4, p. 11 of 11
III. Facilities Plan Review Process
Decision - approve, disapprove, do EIS
A. Considerations for decision
1. NEPA criteria - significant environmental impacts
or highly controversial
2. Historic and archaeologic sites
3. Wetlands (Executive Order)
4. Floodplains (Executive Order)
5. Coastal zones
6. Wild and scenic rivers
7. Threatened or endangered species (fish, wildlife,
flora and fauna)
8. Prime agricultural lands (EPA policy)
B. Decision
1. No EIS
a. Environmental assessment prepared
b. Public notified of finding of no significant
impact (FNSI)
c. Project approved
2. Prepare EIS
a. Public.notified of intent to prepare EIS
b. Draft EIS prepared
c. Project modified or approved
41
-------
QUIZ - TOPIC #4
Facilities Plan Review
Comments of the appropriate clearinghouse (A-95 review)
are required for each facilities plan. True or False
List the five major components of a facilities plan.
List the three sequential steps in a sewer system evaluation.
Rainwater from a downspout on a house is considered infiltra-
tion? True or False
What determines if I/I is excessive?
Is an I/I analysis required for all projects?
May a grantee complete a facilities plan if excessive I/I
exists?
Is closed circuit television inspection of sewers a part of
an I/I analysis?
Is cleaning of all sewers within a municipality an allowable
cost for grant participation?
The planning period for facilities plans is 10, 15 or 20 years,
depending on the circumstances. True or False
Straight line population projections using 1940, 1950, 1960,
1970 and 1980 census figures is the only acceptable means of
determining future populations. True or False
The use of 100 gal/capita/day is an acceptable method of
projecting future flows. True or False
42
-------
Topic #4 Quiz (Cont'd.)
13. Septic tanks should be eliminated in all cases. True or False
14. What are the five waste management techniques that must be
evaluated in each facilities plan?
15. Treatment and discharge to surface waters is EPA's preferred
waste management technique. True or False
16. The NPDES permit may contain the effluent limitations for
treatment and discharge to surface waters at an existing
treatment plant. True or False
17. Alternative technology projects include land application and
on-site systems. True or False
18. Alternative technology projects are fully proven processes or
techniques. True or False
19. Innovative projects may be either alternative technology or
conventional concepts of treatment. True or False
20. Alternative technology projects or those employing conventional
concepts of treatment may be classified as innovative by meet-
ing any one of the six qualifying criteria. True or False
21. A conventional project which saves 15% LCC may be automatically
classified as innovative and receive an 85% grant. True or False
22. An alternative technology project automatically receives an
85% grant. True or False
23. The 15% cost preference is applied to
a. capital costs
b. present worth costs
c. construction costs
43
-------
Topic #4 Quiz (Cont'd.)
24. In computing net primary energy for a particular project# the
energy value of coal used to generate electricity by the
utility company is included in the computations. True or False
25. I & A projects receive an 85% grant for Step 1, 2 and 3 work.
True or False
26. A formal public hearing is the only requirement for public
participation. True or False
27. Comments of the public must be included in the facilities
planning document. True or False
28. What five broad criteria are used to evaluate alternatives?
29. An EIS is prepared for every facilities plan. True or False
30. An EIS, if required, is prepared by the state agency. True
or False
44
-------
Topic #5, p. 1 of 8
Topic #5: AVOIDING DELAYS AND RESOLVING PROBLEMS
DURING FACILITIES PLAN PREPARATION
Cost Preference and Grant Computations
for I and A Projects
EXAMPLE
A proposed innovative system has passed the risk test and
fulfills the requirement of 20% net primary energy savings.
The components which are being considered as innovative are the
primary and secondary process equipment.
The present worth costs of the proposed system and the least
costly noninnovative system are shown below.
Least Costly
Noninnovative
System
Proposed
Innovative
System
Capital
PW *
Capital
PW *
Primary
$ 100
$ 110
$ 31
$ 35
Secondary
720
753
830
905
AWT
873
971
873
971
Total
$1,693
$1,834
$1,734
$1/911
* PW includes O & M
1.
2.
35 + 905 = 940
940
1,911
= 49%
3. a. 110 +753 = $ 863.00
b. 863 x 1.15 = $ 992.45
c. 992.45 + 971 = $1,963.45
Result; $1,911 is less than $1,963.45; therefore, proposed
innovative system is considered to be within the cost-
effective limit and may be selected by the grantee.
45
-------
Topic #5, p. 2 of 8
Grant Calculation:
Capital costs of innovative components
(31 + 830) x .85 = $ 731.85
Capital costs of noninnovative components
$873 x .75 = $ 654.75
Total Grant $1,386.60
ALTERNATE EXAMPLE:
Assume for illustration purposes that in the preceding problem
the AWT portion only is proposed as innovative. Complete the
blanks in the statement below.
1. What percentage of the proposed innovative system
does the AWT portion represent?
x 100 =
2. If equal to or greater than 50%, multiply what number
by 1.15 to establish the cost-effective limit?
1.15 x =
3. Is the proposed innovative system: (check one)
Greater than or egual to 50%, or
Less than the cost-effective limit
4. Compute EPA grant as
( + ) x .75 =
x .85 =
Total Grant
46
-------
Case Study
Project Name; Quadri-Municipal Facilities Planning Area
Location: 75 miles NSE of Gotham City
History: Several comprehensive sewer studies performed
in the late 60's calling for a regional POTW
discharging to the Moy River
Existing Conditions:
Total land area - 29,200 ac
Residentially zoned vacant land - 19,200 ac
Vacant land constrained by wetlands, - 12,600 ac
floodplains, steep slopes or prime
agricultural land
Developed land - 10,000 ac
Total zoning capacity - 116,000
(all residential land)
Present population - 46,000
208 projection (year 2000) - 75,000
Facilities plan population projection - 102,000
Existing Facilities;
A 1 mgd primary plant serving Village of Katztown and a
portion of Spinneyton. A number of small facilities
(some secondary and some AWT) serving individual housing
developments. Total wastewater flow is 2 mgd. All plants
discharge to surface waters. All but Katztown plant dis-
charge to small streams which, according to state policy,
require high levels of treatment (AWT). There are large
areas where the soil has a shallow depth to groundwater and
there have been a number of complaints in regard to failing
septic systems according to the facilities plan. Because
of this, the facilities plan recommends that a centralized
system of sewers and treatment facilities should be extended
to all unsewered developed areas.
47
-------
Topic #5, p. 4 of 8
Alternatives Evaluated:
1. A single regional secondary treatment facility discharg-
ing to the Moy River and serving the entire 201 planning
area.
2. Two facilities, one on Hoehleinville Kill serving the
village and surrounding area and one on the Moy River
serving the remaining study area.
3. Several interceptor configurations.
4. Several sites for the Moy River facility.
Project Size;
Design flow (year 2000) of 10 mgd
Interceptors designed for 20 mgd
Selected Plan: (see map)
Alternative 1 with elimination of all existing facilities
Questions to be Completed by Students
1. Was there adequate alternative evaluation?
2. Comment on population projection used.
3. Do per capita flows seem reasonable based on total flow
and population served?
48
-------
Topic #5, p. 5 of 8
4. Interceptor routes chosen were designed to minimize the loss
of trees and impacts to surface waters. Facilities plan,
therefore, states that adverse environmental impacts are not
significant. Do you agree?
5. The site chosen (on the banks of the scenic Moy River) is
adjacent to Van Schory Park which was originally part of the
Van Schory estate which according to local historians was
the original (c. 1645) settlement in the area. Legend has it
that a gristmill and large mansion once existed somewhere on
the property. A preliminary archaeological survey (walk
through) was done during facilities planning and no remains
were seen.
How would you approach the problem of its potential historical
significance?
49
-------
Topic #5, p. 6 of 8
QUADRI-MUNICIPAL
FACILITIES PLANNING
AREA
VanScho
Park
Town of
LaLarned
Town of
Hoehlein
Town of
Spinneyton • M,
40
A-'
Village of a
!-* ¦ ; 1
'A atfztown
u* . _ - /1
><
Town of
Palagonia
Facilities Planning Area
Municipal Boundaries
Stream
A Existing STP's
Developed Areas
-------
Topic #5, p. 7 of 8
QUADRI-MUNICIPAL
FACILITIES PLANNING
AREA
VanScho
Park
Town
Town
/
Town of
Spxnneyton ¦
\
Environmentally Sensitive
Area (Floodplains, Steep
Slopes, Wetland)
Prime Agricultural Land
-------
Topic #5, p. 8 of 8
QUADRI-MUNICIPAL
FACILITIES PLANNING
AREA
VanScho
Park
Town of
LaLarned
Recommended Plan
Town of
Hoehlein
)
Town of
Spinneyton /
Village
Town
Palagonia
Legend
Abandoned STP's
Regional POTW
Intercepting Sewer
•-'V'//-/ Pump Station and
Force Main
-------
ALTERNATE EXAMPLE ANSWERS
ALTERNATE EXAMPLE:
Assume for illustration purposes that in the preceding problem
the AWT portion only is proposed as innovative. Complete the
blanks in the statement below.
1. What percentage of the proposed innovative system
does the AWT portion represent?
^ x 100 = 51%
1,911
2. If equal to or greater than 50%, multiply what number
by 1.15 to establish the cost-effective limit?
1-15 x 51^834 = $2,109
3. Is the proposed innovative system: (check one)
Greater than or equal to 50%, or x
Less than the cost-effective limit
4. Compute EPA grant as
( $31 + $830 ) x .75 = $ 645.75
$873 x .85 = $ 742.05
Total Grant $1,387.80
53
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CASE STUDY ANSWERS
1. Was there adequate alternative evaluation?
NO! Grantee did not consider
a. Land application - preferred by EPA
b. Upgrading of existing facilities
c. Innovative technology
d. Small wastewater systems including
- Rehabilitation of septic tanks
- Cluster septic tanks or mound systems
2. Comment on population projection used.
a. Grantee proposed 102,000
WQM (208) plan shows 75,000
Grantee may not exceed WQM approved projection except
in very unusual circumstances. Therefore, population
is unacceptable.
b. From a density viewpoint
Residentially zoned vacant land 19,200 ac
Constrained vacant land 12,600 ac
Residentially zoned vacant land
available for development 6,600 ac
Present density = 46'000 present population = Dersons/ac
present density 10f000 developed land Persons/ac
Future growth at same density 4.6 Persons x 6,600 acres
acre
= 30,360 additional
population
54
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Future population at same density = 46,000 present
+ 30,360 future
= 76,360 which is close
to WQM (208)
projection
The point may be made that if the communities want to main-
tain their present character they may possibly do this by
maintaining a similar density. If the proposed population
of 102,000 was used, the density would be 102,000 t (10,000 +
6,600) = 6.1 persons/acre or 33% increase over the present
density.
3. Do per capita flows seem reasonable based on total flow and
population served?
102,000 population 98 9al/cap/day
This is very close to the 100 gpcd figure used by many engineers
and state design standards. EPA has taken the position that
unless flows higher than those shown in Appendix A to 40 CFR
Part 35 are well documented, they may not be used. Appendix A
shows:
Non-SMSA cities and town with projected
total 10 year populations of
5,000 or less - 60 to 70 gpcd
Other cities and towns - 65 to 80 gpcd
Using the WQM population projection of 75,000 and per capita
consumption of 80 gpcd, the total design flow of the treat-
ment plant would be 6.0 mgd or 60% of what has been proposed.
Therefore, the proposed per capita flows are not acceptable.
Some students had indicated the proposed 10 mgd plant is a
fivefold increase because in the description of the existing
facilities it states, "Total wastewater flow is 2 mgd."
This flow represents flows at existing facilities but does not
include the unsewered population presently on septic tanks.
55
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4. Interceptor routes chosen were designed to minimize the loss
of troca and impacts to surface waters. Facilities planT
lliereT'o'rej, states that adverse environmental impacts are~
not significant. Do you agree?
NO - Woefully inadequate. Facilities plan must specifically
address:
Primary and secondary impacts
Impacts on agricultural land
Impacts on wetlands and floodplains
Loss of vegetation along interceptor route
Siltation, etc.
5. The site chosen (on the banks of the scenic Moy River) is
adjacent to Van Schory Park which was originally part of
the Van Schory estate which according to local historians
was the original (c. 1645) settlement in the area. Legend
has it that a gristmill and large mansion once existed some-
where on the property. A preliminary archaeological survey
(walk through) was done during facilities planning and no
remains were seen. How would you approach the problem ol
its potential historical significance?
The grantee must document that the National Register of
Historic Places has been adequately reviewed. The state or
federal reviewer will obtain advice from the State Historic
Preservation Officer (SHPO). Depending on the SHPO advice
a more detailed investigation by a qualified archaeologist
may or may not have to be done. Additional investigations
(perhaps preliminary digs) may require a grant amendment to
cover the costs.
The procedures to identify and investigate archaeological
or cultural resources vary from state to state. Therefore,
the instructor will modify his discussion of this question
to the specific procedures of the state.
56
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Summary of Case Study
The case study was based on a real project and approved by the
state agency. EPA reviewed the project and determined that an
environmental impact statement should be done. The project
has been in progress for seven years and as of this date (March,
1980) the facilities plan has not been approved. How could this
fiasco have been avoided? Communications and contact between
the regulatory agencies (state or EPA) and the grantee or his
consultant. The case study indicates that although EPA had
published regulations, handbooks, guidelines, etc. and the state
may have distributed these materials, neither the grantee
nor his engineer read and/or understood what they read.
Construction grants regulatory personnel have an obligation to
manage their projects. One aspect of managing projects is to
make periodic contact with the grantees to review progress,
problems, misunderstandings, etc. While it cannot be said with
absolute assurance, it is very likely that the project discussed
in this case study could have avoided the preparation of an EIS
had better communications taken place with the grantee.
57
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Topic #6, p. 1 of 7
Topic #6: STEP 1 GRANT PROCESSING
I. Preapplication Information
A. General
1. Be aware of and distribute to applicants information
published by EPA and state agencies including handbooks
(particularly MCD-04), guidelines, rules and regula-
tions, etc.
2. Most desirable to meet with applicant, state and
consultant at preapplication conference (consultant
may or may not be present)
B. Applicant eligibility
1. Public body created under state law which has as one
of its responsibilities the treatment, transport
or disposal of liquid wastes of the general public
in a particular geographic area
2. Must have authority to plan, design, construct,
finance, operate and maintain treatment works under
state law or have reasonable expectation of doing so
3. Does not include airport, turnpike, port facility
or other municipal utility such as school or park
districts, water treatment works nor power plants
4. Clean Water Act of 1977 permits grants for privately
owned treatment works serving principal residences
or small commercial establishments constructed and
inhabited prior to December 27, 1977; however,
applicant must be a public body, as defined above,
applying on behalf of a number of individual units
C. Preapplication conference
1. Include state, applicant, and ideally consultant
2. Clarify which functions, if any, have been dele-
gated to state and establish lines of communication
3. Discuss three step process but emphasize plan of
study (POS) and facilities plan
4. Specific items to discuss
58
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Topic #6, p. 2 of 1
Important dates
(1) 10/18/72 -
(2) 12/27/77 -
(3) 9/30/78 -
(4) 6/30/79 -
(5) 10/ 1/79 -
(6) 12/31/80 -
(7) 12/31/81 -
P.L. 92-500 passage, collection
systems (35.925-13[a])
P.L. 95-217 passage, privately
owned systems (35.918-1 [a])
I & A requirements, primary
energy and open space oppor-
tunities (35.917[d][8], [9])
UC/ICR systems approved before
award of Step 3 grant
(35.935-13[c], 15[c])
Compliance with approved WQM
plans (35.917[e])
Certain pretreatment require-
ments met before Step 2 grant
award (35.920-3[b][9])
All pretreatment requirements
met before Step 3 grant award
(35.920-3[C][4])
Contracts for architectural/engineering (A/E)
services, including type of contract and procure-
ment procedures (emphasize Minority Business
Enterprises (MBE) participation per 40 CFR
35.936-7)
Administrative requirements
(1) Application and supporting documents
(2) A-95 clearinghouse reviews
(3) Prior costs
(4) Force account
(5) Intermunicipal agreements
(6) Nonfederal share of funds
(7) Priority list
(8) Recordkeeping
59
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Topic #6, p. 3 of 7
(9) Limitations on collection systems
(10) User charge/industrial cost recovery (UC/ICR)
ad valorem taxes (a tax based on property
value)
(11) Public participation
(12) Civil Rights Act of 1964
(13) Small alternative wastewater systems
(14) Coordination of grant funding with other
federal agencies (FHA, EDA, HUD)
(15) Payment requests
d. Technical requirements
(1) Degree of detail in plan of study (POS)
and facilities plan
(2) Project tasks and costs in POS including
a public participation work plan
(3) Weir overflow rates, BOD loadings, etc.
in facilities plan
(4) Unique features, historical and archaeological
(5) Cost-effectiveness (including innovative and
alternative technology and energy require-
ments for Step 1 projects begun after 9/30/78)
(6) Sewer system evaluation, infiltration/inflow
(I/I), sewer system evaluation survey (SSES),
and rehabilitation
(7) Environmental information document (EID)
as part of the facilities plan
(8) Pretreatment and incompatible wastes
(9) Compliance with NPDES permit
(10) Waste treatment management techniques;
BPWTT for
- Treat and discharge
- Land disposal (heavy)
60
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Topic #6, p. 4 of 7
- Recycle, reuse
- Revenue generating systems
- On-site and nonconventional systems
(11) Potential opportunities for recreation
and open space
(12) Estimated project cost and user charges
(13) Other federal requirements - flood insurance,
hometown plan, Davis Bacon (minimum wage),
scenic rivers, etc.
Application Review and Grant Offer Preparation
A. Application package contents
1. Plan of Study
2. A-95 clearinghouse comments
3. Application form (5700-32)
4. Proposed or actual subagreements (generally engineer-
ing agreements)
5. Application submitted to state for review, approval
and issuance of priority certification
B. Plan of Study - regulations require four items
1. Designation of planning area - generally a map
(USGS, for example)
2. Identification of planning entity and agreement
between entities when more than one involved
3. Nature and scope of project including schedule of
tasks and public participation program
4. Itemization of costs - generally by task
C. Processing of application
1. Plan of Study must
a. Demonstrate applicant understands requirements -
after 9/30/78 particular attention must be given to
61
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Topic #6, p. 5 of 7
(1) Innovative and alternative technology
alternatives
(2) Recreational and open space opportunities
(3) On-site and small alternative wastewater
treatment systems
(4) Energy requirements
(5) Pretreatment requirements
b. Contain a payment schedule as appropriate
c. Agree with state designated boundaries
d. Comply with requirements of WQM plans
e. Agree with requirements of NPDES permit if issued
f. Include prior costs, if any, with explanation
g. Demonstrate resolution of conflicts with any
of above
h. Be circulated to other branches for review and
concurrence (EIS Branch, Enforcement Branch,
Planning Branch, etc.)
Clearinghouse comments (A-95)
a. OMB circular A-95 established procedures
b. Generally grantee submits POS to clearinghouse
c. Adverse comments must be addressed and resolved
Priority certification
a. Properly signed by state
b. Project included on approved state priority
list (unless funded from 10% reserve) and cer-
tified as being entitled to priority for grant
over all other projects below it
c. Name, description and all other data agree
with POS and application form
62
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Topic #6, p. 6 of 7
4. Application form (5700-32)
a. Applicant must have authority to plan, design,
finance, construct, operate and maintain
wastewater treatment facilities under state law
b. Site requirements not necessary
c. Funding assurances for nonfederal share
d. Part V assurances must be attached
e. Resolution authorizing official to sign
f. Reviewer will insure all costs requested for
grant participation are allowable (see MCD-03,
Chapter VII)
5. Subagreements (or intended method of awarding
subagreements)
a. Satisfaction of procurement regulations
(40 CFR 35.936, .937)
b. Percent of construction not allowed
c. Appendix C-l to be included in subagreements
(see 40 CFR Part 35, Subpart E)
d. Include EPA form 5700-41 showing profit
e. Must include completion schedules, method
of payment
f. Must demonstrate satisfaction of MBE requirements
D. Grant award procedures
1. Complete agreement per Grants Administration Manual
2. Regional and state procedures such as
a. Notify financial management branch
b. Prepare briefing memos for Regional Administrator (RA)
c. Preparation of transmittal letters to state,
applicant, consultant, etc.
63
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Topic #6, p. 7 of 7
3. Complete EPA form 5700-1B and transmit to head-
quarters for advance (5 days) congressional
notification
4. Complete Government Information Control System (GICS)
coding sheets
5. Clearinghouse notification (if required) both A-95
and Treasury Department Circular No. 1082
E. Grant agreement/amendment
1. EPA form 5700-20
2. Contract between grantee and EPA
3. Must define scope of project
4. Contain special conditions, if any
5. Require grantee to complete "Summary of Costs of
Planned Treatment Works Scheduled by Project and
Category"
6. Grantee has three weeks to accept
7. Official signing grant offer must be same as
designated or submit new resolution
64
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QUIZ - TOPIC #6
Step 1 Grant Processing
A sewage treatment plant owned and operated exclusively by
an airport authority is a grant eligible payment. True or
False
An individual homeowner may apply for a grant to repair his/her
privately owned septic tank. True or False
At a preapplication conference should the requirements for
a plan of operation be emphasized?
List the four regulatory elements of a plan of study.
Are the costs of preparing the application and POS allowable
for grant participation?
Must a project be included on the state's priority list by
name before a grant can be made?
The applicant must show in the application form or other
documents the source of funds for the local share. True or
False
An engineer's contract shows that his fee is a percentage of
construction costs in accordance with the American Society of
Civil Engineers' fee schedule. Is this acceptable?
May the applicant merely state in a letter that there are no
MBE firms interested in the project?
Once the grant offer is signed by the Regional Administrator
of EPA, may it be mailed to the grantee?
65
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Topic #6 Quiz (Cont'd.)
11. Once a grant offer is accepted by the grantee, 10% of
grant funds may be paid to the grantee. True or False
66
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Topic #7, p. 1 of 7
Topic #7: STEP 2 GRANT PROCESSING
Types of Step 2 Grant Projects
A. General
In general most applicants will have applied for and
received a Step 1 grant prior to applying for a Step 2
grant. However, exceptional projects are sometimes
discovered for which some or all of the Step 1 work was
initiated prior to a grant. These older or "woodwork"
projects are discussed below indicating important dates
and the requirement that "all allowable costs incurred
before initiation of construction of the project must
be claimed in the application of grant assistance for
that project before the award of the assistance or no
subsequent payment will be made for the costs" (40 CFR
35.945, .925-18). In other words grantees are required
to claim all prior costs in their first application or
else these costs will be considered nonallowable.
B. Projects not previously funded
1. Project work begun after 10/31/74 but before 6/30/75
- Must have had an approved plan of study or
facilities plan (in accordance with applicable
regulations at that time)
- Must obtain Step 2 grant before 4/1/81
- Prior costs may be allowable for grant
participation
C. Projects which are segments of larger projects
1. Must insure that the statutory requirements of
facilities planning are satisfied
2. Facilities plan must be essentially complete and
proposed project is in agreement
3. Applicant must agree to complete facilities plan
and/or other segments of project resulting in an
operable treatment works meeting the enforceable
requirements of the CWA
67
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Topic #7, p. 2 of 7
D. Projects which have satisfied Step 1 facilities planning
requirements
Application Review and Grant Offer Preparation
A. Application package contents
1. Approved facilities plan - If facilities plan has
been previously approved, applicant need only submit
copy of approval letter. Proposed project must con-
form to approved facilities plan and any special
conditions of the approval (requirements for further
archaeological surveys, for example).
2. Priority certification - prepared by state for sub-
mission to EPA
3. Application form
a. Applicant must have authority to design, finance,
construct, operate and maintain .wastewater
treatment facilities under state law
b. Statement (generally legal opinion) regarding
the availability of the proposed site or status
of necessary easements
c. Funding assurances for nonfederal share
d. Part V assurances must be attached
e. Resolution authorizing official to sign
f. Reviewer will insure all costs requested for
grant participation are allowable
4. Subagreements (or intended method of awarding
subagreements)
a. Satisfaction of procurement regulations
(40 CFR 35.936, .937)
b. Percentage of construction cost not allowed
c. Appendix C-l to be included in subagreements
d. Include EPA form 5700-41 showing profit
68
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Topic #7, p. 3 of 7
e. Must include completion schedules, methods of
payment
f. Must demonstrate satisfaction of MBE requirements
5. Intermunicipal agreements
a. Regional Administrator will determine if inter-
municipal agreements must be executed or proposed
at the time of Step 2 grant application
b. Must agree with the institutional considerations
contained in the approved facilities plan
6. Value engineering proposal
a. Required for all Step 2 projects for which Step 3
total estimated costs are expected to be $10 mil-
lion or greater
b. May be done by a firm specializing in VE analysis
or by A/E selected to design project. In latter
case VE interdisciplinary team must be different
from original design team
c. Scope, team makeup, level of effort and schedule
must be commensurate with complexity of project
d. Costs and profits for VE services must be shown
separately
7. Project progress and payment schedule
a. Reasonable and include milestones
b. Complies with NPDES
8. Evidence of compliance with
a. User charges - plan and schedule for completion
of user charge system prior to Step 3 grant award
b. Industrial cost recovery - where applicable, plan
and schedule for completion of ICR system prior
to Step 3 grant award; letters of intent from
significant industrial users (10% or more of
design waste flow or strength) indicating agree-
ment to pay their share and intended period of use
of treatment facility
69
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Topic #7, p. 4 of 7
c. Sewer use ordinance - applicant must assure that
a sewer use ordinance prohibiting illegal connec-
tions and construction of new connections will be
enacted prior to completion of construction
d. Relocation requirements - if project will result
in acquisition of private property or displacement
of persons, applicant must provide assurance of
compliance with the Uniform Relocation Assistance
and Real Property Acquisitions Act
e. Civil rights provisions - completion of EPA form
4700-1 and 4700-4
f. Section 404/Section 10 permits - if project involves
the discharge of dredge or fill material, either
the permit(s) must be issued (by U.S. Army COE) or
indication that COE is prepared to issue such
permit(s)
9. Pretreatment requirements
For Step 2 grants made after 12/31/80 the applicant
must have satisfied the pretreatment requirements of
40 CFR Part 403 for industrial contributors. This
will have been done as a part of facilities planning
or as an amendment to the Step 1 grant. The issues to
be addressed in a pretreatment program include:
a. Industrial survey
b. Legal authority of applicant to enforce requirements
c. Revenue sources to carry out program
d. Determination of technical information needed
for development and enforcement of program
e. Monitoring program
f. Pollutant removals in existing facilities
g. Determination of monitoring equipment
h. Determination of tolerance of treatment facilities
to toxic pollutants
i. Determination of equipment needed to analyze
industrial wastes
70
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Topic #7, p. 5 of 7
10. Public participation work plan - if necessary a
continuing public participation program may be
included in the Step 2 project and the application
must include the costs and work plan for this element
B. Combination Step 2+3 grants
1. Limitations
- Community population of 25,000 or less
- Construction cost estimated at $ 4 million or
less ($5 million or less in states with unusually
high construction costs)
- Satisfy all Step 1 requirements and Step 2
application requirements above
2. Additional requirements
- Step 3 construction estimate
- Schedule for submission of P&S, UC/ICR systems,
sewer use ordinance, plan of operation including
O&M manual
C. Grant award procedures
1. Complete agreement per Grants Administration Manual
2. Regional and state procedures such as
a. Notify financial management branch
b. Prepare briefing memos for RA
c. Preparation of transmittal letters to state,
applicant, consultant, etc.
3. Complete EPA form 5700-1B and transmit to headquarters
for advance (5 days) congressional notification
4. Complete GICS coding sheets
5. Clearinghouse notification
D. Grant agreement/amendment
1. EPA form 5700-20
71
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Topic #7, p. 6 of 7
2. Contract between grantee and EPA
3. Must define scope of project
4. Contain special conditions, if any
5. Require grantee to complete "Summary of Costs of
Planned Treatment Works Scheduled by Project and
Category"
6. Grantee has 3 weeks to accept
7. Official signing grant offer must be same as designated
or submit new resolution
III. Predesign Conference
A. General
1. Predesign conference is optional but encouraged
2. Opportunity to review administrative and technical
requirements of Step 2 project with grantee and
consultant
B. Discussion items
1. Bidding procedures, contract documents and inclusion
of 40 CFR 35.936, .938, .939 and Appendix C-2 in
specifications
2. Minority Business Enterprises (MBE) goals and requirements
3. Design considerations beyond those shown in approved
facilities plan (F/M ratios, system head curves, etc.)
4. Pretreatment design considerations
5. Environmental considerations (soil erosion and sedi-
ment plans, traffic control plan, archaeological
surveys, etc.)
6. Intermunicipal agreements
7. Phasing of contracts
8. Flood protection insurance requirements
9. Record of costs
10. Site acquisition and easements
72
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Topic #7, p. 7 of 7
11. UC/ICR, sewer use ordinance, SSES scheduling (as
applicable), plan of operation and O&M manual
12. VE analysis
13. Construction management
14. Incentive clauses in construction contracts
15. "Or equal" and buy American provisions
16. Eligible and ineligible cost separation in bid proposal
17. Local funding and sale of bonds
73
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QUIZ - TOPIC #7
Step 2 Grant. Processing
May a Step 2 grant be made for a segment of a larger project?
An executed intermunicipal agreement must be submitted with
the application form. True or False
The costs of a value engineering analysis must be included
with each application. True or False
Costs for developing a user charge and industrial cost recovery
system must be included in all Step 2 applications. True or
False
Grantees need not develop an industrial cost recovery system
until after June 30/ 1980 because of the moratorium. True
or False
A pretreatment program must be completed for all Step 2
applications. True or False
Combination Step 2+3 grants may be requested at the grantee's
option. True or False
Industrial contributors with flows greater than 10% of the
design capacity need to submit a letter of intent to the
grantee. True or False
74
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Topic H7 Quiz (Cont'd.)
9. A predesign conference is mandatory. True or False
10. Archaeological investigations may be an allowable cost
of the Step 2 activities. True or False
75
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Topic #8, p. 1 of 1
Tojnr; #_H: PROJlLEMS AND DELAYS DURING STEP 2
I. Known Problems
A. Incomplete submissions
B. Intermunicipal agreements
C. Easements and site acquisition
D. Value engineering
E. UC/ICR (as of 6/30/79 systems must be approved prior
to Step 3 grant)
F. Pretreatment requirements (as of 12/31/81 all pretreat-
ment requirements must be satisfied prior to Step 3
grant; see page 55 for details)
G. Secondary environmental impacts
1. Oversizing
2. Change in population projections
II. Avoidance of Problems
A. Communication for grantee and consultants during
Step 2 activities
B. Clear definitions of work required as a consequence
of predesign conference and communication
76
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Topic #9, p. 1 of 5
Topic #9: PLANS AND SPECIFICATIONS REVIEW
I. Administrative Review
The administrative review insures that bidding documents
are in order and that the specifications include any re-
quired provisions.
A. Bidding documents - must include:
1. Statement of work and completion schedule
2. Terms and conditions of contract
3. Method of bidding and basis of award
4. Criteria for evaluating bidders
5. Copy of 40 CFR 35.936, 35.938 and 35.939 (procure-
ment regulations for construction contracts)
6. Standard statement concerning the funding of the
project by EPA (40 CFR 35.938-4[c][5])
B. Supplemental general provisions - Appendix C-2 (see 40 CFR
** Part 35, Subpart E)
1. Changes, suspension or termination
2. Labor standards
3. Utilization of small or minority business
4. Audit, access to records
5. Price reduction for defective cost or pricing data
6. Covenant against contingent fees
7. Gratuities
8. Patents
9. Copyrights and rights in data
10. Clean air and water clause
11. Buy American provisions (PRM 78-3)
77
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Topic #9, p. 2 of 5
C. Other provisions
1. Equal Employment Opportunity (EEO)
a. Must be followed in contracts $10,000 or greater
b. Construction costs greater than $1 million -
need for a preaward compliance review
c. Executive Order 11246 and hometown or imposed
plans
- Affirmative action to promote and insure
EEO in the work force under the contract
d. Reviewer should contact Civil Rights and Urban
Affairs office within EPA region for specific
instructions
2. Davis Bacon Act
a. Must be followed in all contracts over §2,000
b. Require payment of prevailing minimum wage for
various trades (published weekly in F.R.)
c. Modification to wage rates to be included
in bidding document
3. Flood insurance
Contractor is required to obtain the necessary
flood insurance during construction where project
requires flood insurance
4. Bonding and insurance
For contracts less than $100,000 bonding and insur-
ance requirements are determined by state and local
practices, otherwise the following minimum bonding
and insurance practices must be met:
a. Bid bond - 5%
b. Performance and payment bond - 100%
c. Fire and extended coverage, workmen's compen-
sation, public liability, property damage,
"all risk"
d. Flood insurance during construction as applicable
78
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Topic #9, p. 3 of 5
II. Technical Review
A. General - is the project design based upon
1. The cost-effectiveness provision of the regulations?
(Appendix A, 40 CFR Part 35)
2. The achievement of applicable effluent limitations
or BPWTT?
3. The sewer system evaluation and rehabilitation
requirements (where applicable)?
4. Value engineering provisions (where applicable)?
B. Policy of Review - "Structural, electrical and mechanical
details of the design are not critically reviewed be-
cause they are the responsibility of the engineer whose
seal appears on the drawings. However, obvious irregu-
larities should be noted." (MCD-03, Chapter V, p. 30)
C. Specific items
1. Environmental considerations
,a. Compare design and mitigative environmental
measures with those in the approved facilities
plan or EIS
b. Example - erosion control plan, hours of opera-
tion, backfilling and seeding, design for build-
ings in a floodplain
2. Safety
a. Occupation Safety and Health Act (OSHA)
b. Design of chlorine facilities (compliance with
PRM 79-1; storage, ventilation, handling, emer-
gency procedures, glass windows, etc.)
c. Explosion-proof motors where appropriate
3. Bypassing - none except where prior approval obtained
from state and RA
4. Project sign
5. Reliability and flexibility - standby power, bypass-
ing of individual units, adequate pumping capacity
with largest pump out of service, etc.
79
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Topic #9, p. 4 of 5
6. Operation and maintenance - markings for ease of
operation and accessibility for maintenance
7. Public water supply - backflow preventors, air gap,
etc.
8. Chemical storage - curbing to contain accidental
spills, safety, etc.
9. Ventilation - wet well, dry well, chlorine and
chemical storage rooms
10. Laboratory facilities - sufficient to conduct con-
trol and reporting tests
11. Emergency alarms - notification of equipment failures
or malfunctions
12. Hazardous materials - mercury seals not allowed in
trickling filters, grout for rehabilitating pipe
joints
13. Sewers - acceptable levels of infiltration and re-
quired testing; maintenance of minimum scouring velocity
(2 fps); adequate capacity including peaking factor
(be careful peaking factor not too high to provide
flows beyond those approved in facilities plan)
14. Equipment - two trade names and "or equal" on all
major items except where based on performance specifi-
cations, demonstration purposes or innovative compo-
nents (require state or EPA prior approval for sole
source innovative specifications)
15. Shellfish waters - appropriate protective measures
to be exercised where effluents will discharge to
shellfish producing waters
16. Pretreatment requirements - insure provisions for
adequate pretreatment of industrial wastes before
discharge into municipal system
III. Corps of Engineers Review
A. Biddability
1. Documents are simple, clear and include necessary
items
2. Total construction project is divided into reason-
ably biddable contract packages
80
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Topic #9, p. 5 of 5
3. Appropriate to enable realistic evaluation of
bids received
4. Sufficient detail
B. Constructability
1. Adequate consideration of site limitations
2. Resolution of plan conflicts
3. Restrictive specifications
4. Compatibility with usual construction procedures
5. Consideration of construction difficulties
81
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QUIZ - TOPIC #9
Plans and Specifications Review
1. Plans and specifications are reviewed and certified to the
state agency by the U.S. Army Corps of Engineers only.
True or False
2. Specifications may incorporate 40 CFR 35.936/ .938, .939 and
Appendix C-2 by reference. True or False
3. Specifications must contain "or equal" provisions. True
or False
4. Prospective bidders must be required to submit a bid bond
or certified check in the amount of 5% of their bid.
True or False
5. The U.S. Army Corps of Engineers is required to do a detailed
takeoff of plans and specifications to confirm the engineer's
estimates of project costs. True or False
82
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Topic #10, p. 1 of 6
Topic #10: STEP 3 GRANT PROCESSING
I. Types of Step 3 Grant Projects
A. General - In general, most applicants will have applied
for and received a Step 1 and Step 2 grant prior to
applying for a Step 3 grant. However, exceptional
projects are sometimes discovered for which some or all
of the Step 1 and/or Step 2 work was initiated prior to
a grant. These older or "woodwork" projects are discussed
below and require that, "all allowable costs incurred
before initiation of construction of the project must be
claimed in the application for grant assistance for that
project before the award of the assistance or no subse-
quent payment will be made for the costs." (40 CFR
35.934, .925-8) In other words, applicants are required
to claim all prior costs in their first application or
else these costs will be considered nonallowable.
B. Projects not previously funded - Projects not previously
funded with a Step 1 or Step 2 grant will be required to
satisfy the requirements of facilities planning to the
extent deemed necessary by the Regional Administrator.
To satisfy these requirements, an applicant will generally
obtain a Step 1 or Step 2 grant and, therefore, it is very
unlikely that an applicant would get a Step 3 grant as
his first grant.
C. Projects which are segments of larger projects
1 Must insure that the statutory requirements of
facilities planning and Step 2 design are satisfied
2. Proposed segment of project must be in agreement
with the facilities plan
3. Applicant must agree to complete the balance of the
project resulting in an operable treatment works
meeting the enforceable requirements of the CWA
D. Advance acquisition or construction
1. In general Step 3 project work is discouraged prior
to receiving a grant
83
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Topic #10, p. 2 of 6
2. Prior approval of Regional Administrator required
for
a. Advance acquisition of major equipment items
requiring long lead times
b. Acquisition or an option for the purchase of
eligible land
c. Advance construction of minor portions of treat-
ment works
E. Projects which have satisfied Step 1 and Step 2 require-
ments (normal project)
Application Review and Grant Offer Preparation
A. Application package contents
1. Priority certification - prepared by state for sub-
mission to EPA (see details in Topic 6 Step 1 outline)
2. Application form
a. Applicant must have authority to finance, construct,
operate and maintain wastewater treatment facilities
under state law
b. Assurance that all required property rights have
been obtained or bonafide options taken or formal
condemnation procedures have been initiated
c. Funding assurances for nonfederal share
d. Part V assurances must be attached
e. Resolution authorizing official to sign
f. Reviewer will insure all costs requested for grant
participation are allowable and based on latest
engineer's estimate
g. Evidence of compliance
(1) Flood Disaster Protection Act - if community
is eligible must insure structures > $10,000
during construction and life of project
(2) Sewer Use Ordinance - must submit ordinance
or intent that ordinance will be enacted by
84
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Topic #10, p. 3 of 6
all participating municipalities before
completion of construction. Prohibits
illegal connections, requires proper design
and construction for new connections
(3) Sewer System Rehabilitation Schedule - where
necessary, sewer rehab must be on schedule
and ideally completed prior to completion
of the treatment works
(4) Public Participation Work Plan - if necessary
or desired by applicant and public
3. Contracts and subagreements (or intended method of
awarding subagreements)
a. Satisfaction of procurement regulations
(40 CFR 35.936, .937)
b. Generally prefer cost reimbursement type con-
tract for engineering inspection services
c. Appendix C-l to be included in subagreements
d. Include EPA form 5700-41 showing profit
e. Must include completion schedules and outlay
schedule
f. Must demonstrate satisfaction of MBE requirements
4. Intermunicipal agreement - where two or more juris-
dictions will be served by the project, final executed
intermunicipal agreements must be submitted. These
agreements will require compliance by all jurisdic-
tions with financial arrangements and procedural
requirements under the grant
5. Plan of Operation - review the preliminary plan to
insure costs and milestones are included. These
milestones may include
a. Timing of hiring and training of plant personnel
b. Timing of 0 & M manual preparation
c. Development of safety and emergency operation
programs
85
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Topic #10, p. 4 of 6
d. Development of records, filing and laboratory
procedures
e. Timing of start up procedures
f. Preparation of budget and operational reports
6. Pretreatment requirements - for Step 3 grant awards
made after 12/31/81, the applicant must have completed
the nine items listed in Topic #7
7. User Charge System - after 6/30/79 no Step 3 grant may
be awarded without an approved user charge (UC) system.
The user charge system determines the amount of funds
to be collected from all users to offset operation
and maintenance (including replacement) costs.
Criteria to be used in reviewing UC systems include
a. Must distribute costs of 0 & M uniformly to all
classes of users
b. Must consider wastewater characteristics, such
as BOD, SS, bulk discharges, etc.
c. Surcharge for extra strength discharges
d. Must determine first year's charges
e. Must provide for annual review and updating of
charges
f. System must recover all 0 6 M costs (including
reserve funds for replacement components)
g. System must be enacted into municipal legislation •
h. Quantity discounts which encourage use not allowed
i. May be based on water consumption
j. All participating municipalities must implement
and enforce UC systems
k. Ad valorem (value added) taxes may be used as a
basis for proportioning user charges under certain
special conditions (see 40 CFR 35.929-1[b])
86
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Topic #10, p. ') of 6
8. Industrial Cost Recovery - after 6/30/79 no Step 3
grant may be awarded without an approved industrial
cost recovery (ICR) system. ICR requires significant
(> 25,000 gal/day or equivalent BOD/SS) industrial
users to repay their proportionate share of the
capital costs. An ICR system requires
a. All classes of industries must be treated
uniformly and recovered costs are based on all
significant cost factors (flow, BOD, SS, etc.)
b. Each industry is charged only for the portion
of the treatment facilities allocated for its
use
c. Industries have as long as 30 years, interest
free, to repay their costs
d. Funds are to be collected at least annually
e. System is reviewed annually and revised based
on waste character changes, expansion or up-
grading or in the event an industry discontinues
use of treatment facilities
f. 50% of recovered funds returned to U.S. Treasury;
50% to grantee of which 80% must be used solely
for expansion or reconstruction of treatment
facilities and 20% may be used for any purpose
except construction of industrial pretreatment
facilities or rebates to industry
g. Costs not included in ICR payments are I/I correc-
tion or treatment, correction of combined sewer
overflows (CSO), and collection or treatment of
storm waters
h. System is mandatory for recovery of federal funds,
optional for state and local funds
i. All participating municipalities must implement
and enforce ICR system
j. The CWA of 1977 placed a moratorium on the ICR
system until 6/30/80. Funds need not be collected
from industries during the moratorium; if funds
are collected, they must be placed in escrow in
an interest bearing account. The moratorium
addressed only the collection of funds; ICR systems
must still be developed by the grantee.
87
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Topic #10/ p. 6 of 6
9. Approved plans and specifications - additional sets of
P & S may be required; specifications may need to be
revised to include later wage rate decision (Davis
Bacon Act; Department of Labor)
B. Grant award procedures
1. Complete agreement per Grants Administration Manual
2. Regional and state procedures
3. Complete EPA form 5700-1B (congressional notification)
4. Complete GICS coding sheets
5. Clearinghouse notification
C. Grant agreement/amendment
1. EPA form 5700-20
2. Contract between grantee and EPA
3. Must define scope of work
4. Contain special conditions, for example
a. O & M manual - 50% and 90% payment limitation
b. Sewer use ordinance - 80% payment limitation
c. Sewer rehabilitation schedule - 80% payment
limitation
5. Grantee has three weeks to accept
6. Official signing grant offer must be same as
designated or submit new resolution
88
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QUIZ
- TOPIC #10
Step 3 Grant Processing
Applicants may order long lead items required for construction
before receiving a Step 3 grant. True or False
Applicants must submit a copy of an acceptable and implemented
sewer use ordinance at the time of application. True or False
Final executed intermunicipal agreements are required at the
time of Step 3 grant processing. True or False
The 0 & M manual is the only portion of the plan of operation
that must be completed during Step 3 construction activities.
True or False
A pretreatment program, if not previously approved, must be
completed prior to Step 3 grant application after December 31,
1980. True or False
UC/ICR systems are part of the Step 3 activities. True or
False
r.ist three grant payment limitations which are generally
spelled out in the special conditions of the grant offer.
89
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Topic #11, p. 1 of 5
Topic #11: PROCUREMENT OF CONSTRUCTION CONTRACTS
Administrative Procedures
A. Authorization and formal advertising for bids
1. Preparation of authorization letter reminding
grantee of the points in items 2-6 below
2. Grantee compliance with 35.938-4 formal advertising
a. Advertise project > $10M on nationwide basis
b. Allow minimum 30 days (more for larger, more
complex projects) for bid preparation
c. Make available to all prospective bidders at
convenient times and places copies of approved
plans and specifications (most often a deposit
is required)
3. MBE compliance
4. List of documents to be submitted after receipt of
bids (see item B below)
5. Warning to grantee not to award contracts prior
to receiving authorization to do so from state
or EPA
6. Warning to grantee not to prematurely reject all
bids until concurrence is received from state
or EPA
B. Review of bids
1. Documents submitted
a. Tabulation of bids
b. Proposal form and bonds from successful bidder
c. Grantee statement naming bidder
d. Proof of advertising
e. Addenda issued and received
90
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Topic #11, p. 2 of 5
f. Contractor certification of EEO compliance
g. MBE results
h. Statement concerning nonresponsiveness of
lowest bidder (if applicable)
i. Revised cost estimate
j. State and local legal requirements
2. Review by state and EPA
a. Complete and properly executed documents
b. Careful review of reasons why lowest bidder
was not chosen (discuss with legal counsel)
c. Validity of bids
d. Proper wage determination
e. Timeliness of addenda
f. State or local preference of contractor -
not allowed
g. Ambiguous references to subcontractors
Grant increases/decreases - adjustment of grant
1. Contingency allowance (generally 10%)
2. Insure that bids are reasonable
3. State certification - required for grant increase
4. Meeting to review scope if change is significant
Protests (see 40 CFR 35.939)
1. Time limit - protestor, grantee and EPA must all
meet specific time limitations in handling protests
2. Primary responsibility rests with grantee for
resolution of protest; EPA must concur
3. Protestor has responsibility to notify all affected
parties and document allegations of wrongdoing
91
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Topic #11, p. 3 of 5
4. Appeals by protestor to EPA are allowed if protestor
disagrees with decision
5. Regional Administrator's decision is final unless
protestor appeals to court
E. Authorization to award contracts
1. If regulatory requirements have been satisfied
2. If protests have been resolved, then
3. Notify grantee to award contracts, and
4. Arrange for preconstruction conference
Preconstruction Conference
A. General
1. Initiation by grantee, state or EPA
2. Use state or EPA regional "Preconstruction Conference
Checklists"
3. Separate conference relating to EEO optional
B. Purpose
1. Resolve problems, reach understanding
2. Provide definition of roles and responsibilities
(grantee, consultant, state, EPA, COE, EEO officer,
etc.)
3. Review sample inspection reports
C. Items to be discussed
1. Responsibilities of grantee
a. Administration in compliance with laws and
regulations
b. Administration of subagreements
c. Contractor compliance
92
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Topic #11, p. 4 of 5
(1) Labor standards (including minimum wage)
(2) Civil rights and EEO requirements
(3) Construction requirements
(a) Inspection and supervision
(b) Project changes
(c) Material and workmanship
(d) Payment and retainage policy
(e) Historical and archaeological findings
(f) Mitigative environmental measures
(g) Estimates of work in place and progress
(h) Availability of funds, records, bonds
and insurance, flood insurance, audit
(i) Preparation of payment requests
Modifications to contract
Responsibilities for submittals
Commencement, prosecuting and completion of work
a. Notice to proceed
b. Completion time
c. Completion schedule
d. Liquidated damages
Quality control
a. Materials and equipment testing
b. Storage and protection of equipment and materials
c. Housekeeping procedures during construction
d. Reporting and correction of deficiencies
93
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Topic #11, p. 5 of. 5
6. Environmental protection
a. Compliance with local, state and federal laws
b. Bypassing prohibition
c. Protection of vegetation
d. Dust control
e. Burning
7. Other submissions
a.
Sewer use ordinance
b.
Sewer rehabilitation
c.
Plan of operation
d.
0 & M manual
e.
UC/ICR
f.
Municipal pretreatment program
94
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QUIZ - TOPIC 311
Procurement of Construction Contracts
Upon receipt of the Step 3 grant offer, the grantee may
advertise for bids. True or False
Grantee must advertise all projects in journals with nation-
wide distribution. True or False
Grantee is required to take affirmative action in seeking
MBE participation in Step 3 construction. True or False
After receipt of bids grantee must submit completed bidding
documents to state and/or EPA before awarding contracts.
True or False
At the time of bidding, specifications may include wage rate
determination (Davis Bacon Act) which was included in the
Step 2 specifications. True or False
Grantee may reject all bids if contractors are all from out
of state. True or False
Contracts must be awarded to the lowest responsible responsive
bidder. True or False
Grantees should refer all bid protests to EPA for resolution.
True or False
95
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Topic #11 Quiz (Cont'd.)
9. Bid protests generally require advice from legal counsel
prior to resolution. True or False
10. Construction contracts should always be bid on a fixed price
basis. True or False
11. Unbalanced bids are cause for rejection of bids. True or
False
12. Failure to name subcontractors and supply detailed information
about subcontractors is sufficient cause to reject a bid.
True or False
13. Preconstruction conferences are arranged with the grantee's
consultant only. True or False
14. It is preferable to review a sample inspection form at the
time of a preconstruction conference. True or False
15. After receiving bids a grantee needs only complete construc-
tion and has no other grant responsibilities. True or False
96
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Topic #12, p. 1 of 10
Topic #12: MONITORING OF CONSTRUCTION ACTIVITIES
I. General
A. Two types of monitoring
1. Office (paperwork)
2. On-site (surveillance)
B. Why monitoring is needed
1. Insure proper use of public funds
2. Insure project being constructed in accordance
with approved plans, specifications and change
orders
3. Insure project remains on schedule
4. Insure other requirements are being completed
(plan of operation, SSES rehabilitation, sewer
use ordinance)
5. Insure grantee is managing project and fulfilling
legal responsibilities
II. Responsibilities
A. Grantee
1. In accepting grant, grantee provides assurances
that he will comply with and" fulfill all legal
responsibilities
2. Grantee is ultimately responsible since contract
is between federal government and grantee
3. Grantee may choose to delegate some functions to
consulting engineer or project manager but is
responsible for seeing that project is constructed
per approved P & S and change orders
4. Must maintain adequate records, particularly with
regard to receipt of and disbursement of monies
B. Consultant
1. Grantee may hire professional firm as his agent
for resident inspection (consulting engineer,
construction management firm)
97
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Topic #12, p. 2 of 10
2. Functional responsibilities of grantee's agent must
be delineated in contract and clearly defined in
construction contract documents
3. Generally required to maintain inspector's logs,
prepare and/or review estimates of work in place,
provide day-to-day guidance or interpretation of
plans and specifications
Note: Regulatory agency may want to review experience
record of grantee's inspector to insure "adequate
supervision" is being provided.
C. State
1. Monitoring responsibilities may vary from state to
state in accordance with state law
2. Generally, state will be concerned to see project
is constructed in accordance with approved plans,
specifications and change orders
3. If monitoring activities have been delegated
from EPA to state, state may insure grantee ful-
fills federal and state legal requirements
D. Federal
1. Essentially acts as a monitor to insure grantee
fulfills his responsibilities
2. EPA may have negotiated an agreement with U. S.
Army Corps of Engineers to act as its agent; EPA
maintains responsibility however, procedure varies
from region to region
III. On-Site Surveillance
A. Surveillance
1. Distinct from resident inspection
2. Surveillance inspections imply observing and re-
porting deficiencies to grantee for correction,
not issuing instructions to resident engineer
nor contractor
B. Interim surveillance inspections
1. Frequency
98
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Topic #12, p. 3 of 10
a. As many as necessary for project
b. Generally not before 20% completion
c. Generally 2 to 4 for average project
Advance notice
a. Provide advance notice to all interested parties
b. Consider sending blank inspection form in
advance to insure information readily available
c. Where necessary, conduct unannounced inspec-
tions (cautiously)
Technical items to be inspected
a. Approved P & S available at job site
b. Approved change orders available at job site
c. Posting of wage determination (Davis Bacon)
d. Project sign erected
e. Contractor insurance not expired
f. Construction in general agreement with latest
estimate of work-in-place and payment request
g. Workmanship and general housekeeping of con-
tractors
h. Progress of project as compared to completion
schedule
i. Storage of delivered equipment
j. Shop drawings received and approved
k. Construction techniques are sound and customary
practice
1. Materials testing to be done by grantee
(slump test, etc.)
m. Maintenance of treatment during construction
99
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Topic #12, p. 4 of 10
n. Adequate method of resolving problems with
contractor
Note; EEO compliance (hometown plan) not the
responsibility of EPA, COE nor state;
also for large complex project full time
on-site presence may be provided by state,
EPA or COE.
4. Administrative items to be inspected
a. Accounting records
(1) Separate eligible and noneligible costs
(2) Separate from other town financial records
(3) Entries for cash receipts and disbursements
(4) Disbursements supported by vouchers
(5) Contractor payroll forms submitted
b. Evidence of progress on
(1) Plan of operation (0 & M manual and others)
(2) Sewer use ordinance
(3) Sewer system rehabilitation
c. Force account
(1) Separate records maintained for direct
and indirect costs
(2) Prior written approval has been obtained
from EPA
d. Inspection report form
(1) To be completed during inspection
(2) Copies may be left with grantee
(3) Copies to be distributed as agreed to
(4) Documentation of deficiencies and problems
(5) Recommendations on correction of deficiencies
or followup inspection
100
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Topic #12, p. 5 of 10
(6) Only complete new items; not repeat
information previously obtained
C. Final surveillance inspections
1. Purpose same as interim but also insure project
complete and operating and will meet effluent limi-
tations per NPDES permit
2. Project conforms to approved P & S and change orders
3. All equipment operational and performing satisfactorily
4. 0 & M staff hired and trained
5. Laboratory complete and sufficient
6. 0 & M manual readily available
7. Account records adequate and available for audit
8. Industrial dischargers pretreating as required
9. Other administrative items completed (sewer use
ordinance, SSES rehabilitation, etc.)
10. Grantee has accepted project
11. UC/ICR systems implemented
12. Municipal pretreatment program implemented
Change Orders
A. Purpose
1. Modify construction contracts after work has begun
2. May increase or decrease construction costs
B. Types
1. Requiring prior approval if they alter
a. Design or scope of work
b. Type of treatment
c. Location, size, capacity or quantity of
major component
101
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Topic #12, p. 6 of 10
d. Federal grant amount
2. Not requiring prior approval if
a. Required for minor corrections
b. Required to protect life, property or
emergency conditions
C. Potential problems
1. Potential source of grantee/contractor dispute
2. May overrun project
3. Therefore need to be processed and reviewed as
early as possible
D. Review procedures
1. Grantee must justify and approve
2. Contract increase/decrease sufficiently detailed
for review of reasonableness of costs
3. Does not include work already in contract or
previously reviewed
4. Agrees with unit price or other costs in contract;
if quantities exceeded by 15%, may need to renegotiate
5. Does not circumvent nonrestrictive specifications
6. If exceeds $100,000 requires negotiation per
regulations (40 CFR 35.938-5[d] and [e])
7. Grant increase/decrease paperwork prepared if CO
exceeds contingency allowance
V. Plan of Operation
A. General
1. Always part of regulations but initially 0 & M
manual received most attention
2. Current policy places emphasis on entire plan of
operation
3. Preliminary plan of operation as part of Step 3
grant application
102
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Topic #12, p. 7 of 10
Staffing and training
1. Staffing plan including salaries and organization
2. Chief operator hired by 50% construction completion
3. Preoperation training schedule 30 days after
chief operator hired
4. All hiring problems solved 60 days prior to startup
5. Submission of positions filled and qualifications
of new hires submitted 30 days prior to startup
6. Continuous training plan and schedule developed
30 days prior to startup
Administration
1. Laboratory facilities adequate to perform required
tests for control
2. Provisions for submission of operational reports
to state
3. Operational procedures during startup
4. Employee safety training
5. Provisions for maintenance management program
Budget
1. To consider costs for salary, administration,
supplies, utilities and others
2. Salaries commensurate to attract qualified personnel
Emergency operating plan must consider
1. Effects of emergency on operation
2. Vulnerability analysis of system
3. Protective measures
4. Emergency response program
5. Periodic revision as necessary
103
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Topic #12, p. 9 of 10
F. Operation and maintenance manual to include
1. Design information
2. Process control information
3. Maintenance requirements for equipment
4. Laboratory procedures
5. Safety requirement
6. Records and reports
7. Troubleshooting procedures
8. Grant limitation
a. Draft manual before 50% grant payment
b. Manual approved before 90% grant payment
Payment Conditions - Outlay Schedule
A. O & M manual
1. No more than 50% payment until
a. Draft manual submitted
b. Evidence of timely development submitted
2. No more than 90% payment until
a. Manual approved by regulatory agency
B. Sewer use ordinance
No more than 80% payment until ordinance approved by
regulatory agency
C. Sewer system rehabilitation program
No more than 80% payment until evidence of compliance
with schedule
D. UC/ICR
1. Pre 6/30/79 Step 3 grant awards
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Topic #12, p. 9 of 10
a. No more than 50% payment until evidence of
timely development
b. No more than 80% payment unless system approved
by regulatory agency
2. Post 6/30/79 Step 3 grant awards
a. UC/ICR systems require approval before Step 3
grant award (Step 2 work)
3. Step 3 awards between 4/24/78 and 7/1/79
a. Must obtain approval before 7/1/79 or no
payments
E. Municipal pretreatment program
1. Step 3 grants post 10/1/79
a. No more than 90% payment unless program approved
unless
b. Grants after 10/1/79 but before 12/31/80 - Regional
Administrator determines that progress is being
made and likely that progress will continue
2. Step 3 grants post 12/31/81 - require approvable
municipal pretreatment program prior to Step 3
grant award
F. Final payment
1. Requires final inspection to insure
a. Constructed in accordance with approved P & S
and CO's
b. Compliance with grant agreement
VII. Role of U. S. Army Corps of Engineers
A. Headquarters agreement
1. Negotiated for 3 years to provide additional resources
2. Each region to negotiate regional agreement
3. COE personnel act as agents of EPA
105
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Topic #12, p. 10 of 10
B. Regional agreement
1. Vary from region to region, state to state
2. Provides for COE to review P & S for biddability
and constructability
3. Provides for periodic or full time inspections
and processing of Step 3 grants
VIII. Construction Management
A. Requirements (35.936-5[b])
1. None
2. Encouraged by EPA, however
B. Definition
1. Independent multi-disciplined team acting as
agent of grantee
2. Generally responsible to manage budget, schedule
coordination of all activities
C. Best to engage in Step 1 activities and maintain
through construction completion
D. Why ? 85% of grantees are municipalities under
50,000 population
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QUIZ - TOPIC #12
Monitoring of Construction Activities
The state or EPA employee acts as the resident engineer
and interprets P & S and advises contractors. True or
False
At least one copy of the approved P & S must be available
at the job site. True or False
The wage rate determination must be posted in a prominent
place at the job site. True or False
Grantees accounting or fiscal records should be reviewed at
the first inspection. True or False
State, EPA or COE personnel are responsible for enforcing OSHA.
True or False
At the final inspection all equipment should be operational,
True or False
Change orders for minor corrections of P & S require prior
EPA and/or state approval. True or False
Change orders in excess of $100,000 require only grantee
approval. True or False
107
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Topic #12 Quiz (Cont'd.)
9. Every approved change order requires a grant increase.
True or False
10. The chief operator of the treatment plant must be hired by
at least the 50% construction completion stage. True or
False
11. A draft O & M manual must be submitted to EPA or the state
before releasing more than 50% of the grant. True or False
12. The COE is required to enforce EEO requirements. True or
False
13. Construction management is required on all projects over
$5 million. True or False
108
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Topic #13: SUMMARY OF FINANCIAL CONSIDERATIONS
MCD-03, Chapter VII
A. Allowability, unallowability of costs
B. Eligibility, ineligibility, allowability, unallowability
C. General allowability principle (VII-2)
.1. Not a normal expense of administration
2. Consistent with laws
3. Consistent with policies and regulations
4. Relationship to other federally financed programs
D. Allowability of miscellaneous costs (VII-3 to VII-20)
E. Force accounts (grantee uses own employees and equipment)
1. EPA approval (VII-26)
2. Other considerations (VII-27)
F. Payments (VII-29 to VII-33)
G. Increases and decreases (VII-34 to VII-35)
H. Audits (VII-36 to VII-39)
109
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QUIZ ~ TOPIC #13
Summary of Financial Considerations
The construction of a water treatment plant is (a) not
eligible, (b) unallowable for a grant under the CWA.
(Circle a or b)
The cost of selling municipal bonds to finance the construc-
tion of a sewage treatment plant is
a. allowable
b. unallowable
c. eligible
d. ineligible
A pickup truck to be used 50% at the treatment plant and 50%
by the Street Department is purchased by the grantee. Half
the costs of the truck are allowable for grant participation.
True or False
The cost of land purchase is allowable for grant participation
if the land will be an integral part of the treatment plant.
True or False
Costs for startup services are not allowable for grant
participation. True or False
The use of force account labor requires justification and
prior EPA approval. True or False
Step 3 grants may be decreased after receipt of bids and
reduction of contingency allowance (assumes bids are lower
than estimated). True or False
Advance payments are made for large construction projects
True or False
110
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Topic #13 Quiz (Cont'd.)
9. Final grant payment is made prior to final inspection if
requested by grantee. True or False
10. Audits are conducted on all projects. True or False
111
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APPENDIX
113
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ANSWERS - TOPIC #1
1. 1948
2. P.L. 84-660
3. Primary treatment or its equivalent resulting in substantially
complete removal of all settleable solids
4. 55%; 50% if state made 2 5% and had adopted enforceable water
quality conditions plus 10% of the grant amount if project
conforms with appropriate comprehensive plan
5. False - only treatment plants and intercepting sewers
6. True
7. False - introduced in 1972 under P.L. 92-500
8. False - placed moratorium on industrial cost recovery for
18 months; later a one year extension was added
9. False - required by P.L. 92-500; extended on a case-by-case
basis by P.L. 95-217
10. False - must be used only for alternative technology
11. True - possible under P.L. 92-500 but eliminated under
P.L. 95-217
12. P.L. 95-217
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ANSWERS - TOPIC #2
1. P.L. - Public Law
95 - 95th Congress
217 - 217th Law passed by 95th Congress
2. Part of the law - Title II Section 201
3. Code of Federal Regulations
4. True
5. False - Title 40 contains regulations for Protection of
Environment
6. Infiltration/Inflow Analysis
7. a. Municipal Construction Division
b. Program Requirements Memoranda
c. Program Operations Memoranda
d. Executive Order
e. Facilities Requirements Division
f. Transmittal Memoranda
8. False - TM's are used for this purpose
9. False - The Handbook was written primarily for use by federal
and state employees to aid in the processing of projects.
It is used by grantee's consultants to determine what
information should be included in each document.
10. False - Authorizations are contained in the enabling legislation;
appropriations are authorized each year.
11. True - Congress may appropriate between zero and the full
authorization ($5 billion)
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Topic #2 Answers (Cont'd.)
12. True
13. October 1 through September 30
117
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ANSWERS - TOPIC #3
The system defines the criteria and procedures used to establish
the list. The list is a ranking in order of priority of all
projects in the state which are eligible for grants.
False - Performed under authority of Section 303(e) basin
planning
True - It also includes other planning functions as well
True
True
True
False - Areawide planning must be done, to a limited extent,
for all areas in the state
False - WQM monies are appropriated separately by Congress
False - The facilities plan must be compared and conform with
the conclusions of an approved WQM plan
ND a.
D b.
D c.
D d.
ND e.
ND f.
D g.
D h.
ND i.
D j.
D k.
ND 1.
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ANSWERS - TOPIC #4
1. True - If a clearinghouse has been designated
2. (1) preliminary studies and background; (2) future situation;
(3) alternatives; (4) public input; (5) plan selection
3. (1) I/I analysis; (2) SSES; (3) sewer rehabilitation
4. False - inflow
5. I/I is excessive if it is more expensive to treat than to remove.
6. No - Only for municipalities with existing sewers
7. Generally no unless exception c (40 CFR 35.927-5[c]) is
applicable
8. No - It is part of an SSES and must be justified in an I/I
analysis as being cost-effective.
9. No - Only those sewers which require cleaning prior to CCTV
inspections as part of the SSES
10. False - Planning period is always 20 years; construction of
the project may be staged for a 10, 15 or 20 year period.
11. False - The WQM (208) projections must be used as a ceiling;
state disaggregations are also used.
12. False - Flow projections are based on actual consumptive flows
or lacking this data per capita flows shown in Appendix A.
13. False - Septic tanks may be made to operate satisfactorily if
a program of septage management is employed. A needs
survey (PRM 78-9) will indicate those septics which
are not operating properly and may need to be replaced
with alternative technology or conventional concepts of
treatment.
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Topic 04 Answers (Cont'd.)
14. (1) treatment and discharge to surface waters; (2) recycle/
reuse; (3) land treatment; (4) revenue generating systems;
(5) on-site
15. False - Land treatment is.
16. True
17. True
18. True
19. True
20. False - Alternative technology one of the six; conventional
projects must meet either 15% LCC savings or 20%
net primary energy reduction.
21. False - It must have risk and corresponding advancement of the
state-of-the-art (benefits).
22. False - It must be cost-effective when compared with the least
costly noninnovative projects although it is given a
15% preference.
23. b. present worth cost
24. False - Only primary energy is computed, i.e., energy crossing
the boundary of the waste treatment system.
25. Since tapes were made, the law hss been changed sp that 85%
applies to Steps 1, 2 and 3,
26. False - An active basic or full public participation program
is required.
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'J opic #4 Answers (Cont'd.)
27. True - Responsiveness summaries and generally a full tran-
script of public hearing must be included; the grantee
must address meaningful public comments.
28. (1) engineering; (2) environmental; (3) economic; (4) institu-
tional considerations (implementability); (5) public participa-
tion
29. False - EPA decides which projects will require an EIS and
which will not.
30. False - An EIS must be prepared by a federal agency (consul-
tants may be used); an EAS may be prepared by the
state if this function has been delegated.
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ANSWERS - TOPIC #6
False
False
No - Primary emphasis should be placed on the Step 1
requirements of facilities planning.
(1) planning area (map); (2) planning entity; (3) scope of
project; (4) itemized costs
No
Generally yes unless the state has opted for setting aside
10% for Step 1 or 2 projects.
True
No - Percentage of construction costs not allowed; generally
cost plus fixed fee or fixed price type contracts are
used.
No - The grantee must take positive actions to solicit MBE
firms and document these actions.
No - Must wait 5 days for congressional notification.
False - Grant payments are made only to reimburse grantee
for costs incurred; no advance payment.
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ANSWERS - TOPIC #7
Yes - Provided facilities planning requirements met, facili-
ties plan essentially complete and applicant agrees to
complete remaining projects resulting in operable
treatment works.
False - Regional Administrator of EPA will determine if
required on a case-by-case basis.
False - Required only for projects with estimated construction
costs in excess of $5 million.
True - For all Step 2 grants made after June 30, 1979.
False - The system must be developed; the moratorium only
delayed collection and return of funds to U.S.
Treasury until June 30, 1980.
False - Only for Step 2 grants made after June 30, 1980; earlier
projects may complete pretreatment programs during
Step 2 activities or as a Step 1 grant amendment.
False - Only for communities under 25,000 population and
projects less than $2 million ($3 million in some
states).
True
False - Predesign conferences are optional although strongly
encouraged by EPA; could possibly be required in
delegation agreement.
True - Provided further investigations were recommended
and approved in the Step 1 project.
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ANSWERS - TOPIC #9
1. False - The COE conducts a concurrent review of P & S and
submits its comments to the state and/or EPA.
2. False - Specifications must include the regulations verbatim.
3. True
4. True
5. False - COE performs biddability and constructability reviews.
124
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ANSWERS - TOPIC #10
False - They may order but unless prior approval has been
obtained from EPA costs are nonallowable.
False - Applicant may submit ordinance or letter of intent
that ordinance will be enacted before completion
of construction.
True
False - The entire plan of operation must be completed during
the Step 3 activities.
True
False - After June 30, 1979 UC/ICR systems must be completed
prior to Step 3 application; for older projects
UC/ICR systems were completed during Step 3.
a. 0 & M manual - 50% and 90%
b. Sewer use ordinance - 80%
c. Sewer rehabilitation on schedule - 80%
d. Pretreatment program (pre 12/31/80) - 90%
125
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ANSWERS - TOPIC #11
1. False - Must receive authorization to advertise from state
or EPA.
2. False - Must for projects over $10 million; optional for
smaller projects.
3. True
4. True
5. Generally false unless rates have not changed during period
which is highly unlikely.
6. False - No preference may be shown for local bidders; bids
may not be rejected without good and sufficient reason.
7. True
8. False - Grantees have the responsibility to resolve all protests;
the resolution must be reviewed and approved by EPA.
9. True
10. False - Generally combination of unit and fixed price.
11. False - Bids must be carefully reviewed if unbalanced, but
in and of itself unbalanced bids are insufficient
reason for rejecting a bidder.
12. True - Provided the information was clearly required in the
specifications and a warning of bid rejection for non-
compliance was clearly stated in the specifications.
126
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Topic #11 Answers (Cont'd.)
13. False - Grantees, engineers, state, EPA, COE and contractors
should all attend (at least one of the regulatory
agencies should be present).
14. True
15. False - Grantee may have to complete sewer use ordinance,
sewer rehabilitation, plan of operation including
0 & M manual, UC/ICR (for older projects) or
pretreatment program (for older projects).
127
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ANSWERS - TOPIC #12
1. False - State or federal inspector is an observer and may
only direct grantee's activities.
2. True
3. True
4. True
5. False - The contractor is responsible; apparent violations
should be brought to the attention of the U.S. Depart-
ment of Labor.
6. True
7. False
8. False - All change orders except for minor corrections or
emergencies require state and/or EPA approval; CO's
in excess of $100,000 require price and profit nego-
tiations .
9. False - The contingency allowance of 5% should cover CO's.
10. True
11. True
12. False - Done by the Department of Labor.
13. 'False - No requirements for construction management; optional.
128
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ANSWERS ~ TOPIC #13
1. (a) not eligible
2. (b) unallowable
3. True
4. True - Land acquisition costs for conventional forms of
treatment are not allowable.
5. False - Up to 90 days for most plants and 300 days for large
complex plants.
6. True
7. True - This allows other projects to be funded.
8. False - Payments made only after costs have been incurred.
9. False
10. False - Generally only on projects with grants > $250,000.
129
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SOURCE COURSE MATERIALS
Federal Regulations
The major regulations used as source material are taken
from Title 40 Code of Regulations, Chapter I. The major
parts and/or subparts are listed below in their general
order of importance.
a. Part 35 Subpart E - Grants for Construction of Treatment
Works - Clean Water Act
Subpart F - State Management Assistance Grants
Subpart G - Grants for Water Quality Planning,
Management and Implementation
b. Part 6 Subpart E - Environmental Review Procedures for
Wastewater Treatment Construction
Grants Program
c. Part 25 - Public Participation in Programs under Resource
Conservation and Recovery Act, The Safe Drinking
Water Act, and The Clean Water Act
d. Part 30 - General Grant Regulations and Procedures
e. Part 33 - Subagreements (used for other than A/E
subagreements)
f. Part 403 - General Pretreatment Regulations for Existing
and New Sources of Pollution
Municipal Construction Division (MCD) Publications
a. Handbook of Procedures (MCD-03)
b. Handbook for Sewer System Evaluation and Rehabilitation
(MCD-19)
c. Model Plan of Study, Supplement to Guidance for
Preparing a Facility Plan (MCD-24)
d. Value Engineering Workbook for Construction Grants
Projects (MCD-29)
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e. Guidance for Preparing a Facility Plan (MCD-46)
f. Innovative and Alternative Technology Manual (MCD-53)
3. Environmental Assessment of Construction Grants Project
(FRD-5)
4. Program Requirement Memoranda, Office of Water Program
Operations
5. Program Operations Memoranda, Office of Water Program
Operations
131
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