EPA Region 8 Tribal Set-Aside Drinking Water Construction Grant Program Guidelines January 2008 ------- EPA Region 8 Tribal Set-Aside Drinking Water Construction Grant Program Guidelines Table of Contents I. Description of Program 1 II. Applicant and Proj ect Eligibility 1 A. Which tribes and water systems are eligible under this grant program? 1 B. What types of projects can be funded through this grant program? 2 C. What types of projects cannot be funded through this grant program? 3 III. Grant Application Process 4 IV. Project Selection Criteria 5 V. Emergencies 6 VI. Capacity 6 A. What is capacity? 6 B. Why is capacity needed if a health risk is present? 9 C. How does capacity affect eligibility? 9 VII. Instructions for Completing Project Proposal Form 10 VIII. References 11 IX. Who to Contact 11 Appendix A: Feasibility Study Requirements 13 Appendix B: Proj ect Proposal Form 17 Appendix C: EPA Region 8 Project Prioritization Criteria 22 Appendix D: Project Activities and Tasks 27 ------- I. Description of Program The 1996 amendments of the Safe Drinking Water Act (SDWA) provided for a Tribal Drinking Water State Water Revolving Fund similar to the Clean Water Program. The SDWA contains a provision setting aside l1/2 percent of the annual appropriation for drinking water systems that serve Indian tribes1. The appropriation will be used to provide grant funding to tribes to improve public drinking water system infrastructure and address the most significant threats to public health. While EPA headquarters issued national guidance for this tribal grant program, each EPA region had significant flexibility in developing regional funding procedures. This regional guidance is meant to provide tribes with a general overview of the grant program and a description of the requirements for applying for and obtaining a grant. As discussed in greater detail in the following sections, the grants are being offered to tribes to improve drinking water infrastructure serving predominantly Indian populations. Tribes must show that utilities have, or will develop, the technical, managerial, and financial capacity to properly maintain the grant-funded facility. II. Applicant and Project Eligibility A. Which tribes and water systems are eligible under this grant program? 1. Only federally recognized tribes are eligible to receive this grant funding1. 2. Only public water systems that are community water systems or non-profit, non- community water systems are eligible to receive grants2. - A public water system is defined as an entity that supplies water for human consumption and has at least fifteen service connections or regularly serves an average of at least twenty-five individuals daily at least 60 days out of the year. It may include collection, treatment, storage, and distribution facilities. - A public water system is either a "community water system" or a "non-community water system." A community water system means a public water system which serves at least 15 service connections used by year-round residents or regularly serves at least 25 year-round residents. A non-community water system means any public water system that is not a community water system. - Creation of "New" water systems - EPA will allow for the creation of a community water system, to address existing public health problems of existing individual homes. This policy also extends to a situation where a new regional community water system is created by consolidating several existing systems that have technical, financial or managerial difficulties. When considering funding a project for a new system, the EPA Regional office must ensure that all of the potentially affected parties have been notified and that the Tribe has considered alternative solutions to addressing the problems. 1 ------- 3. The system must serve an Indian population. Grant funding can be provided to improve any eligible public water system, whether or not it is owned by a tribe, on or off of the reservation, or serving tribal communities on or off of the reservation. In cases where the Indian population of the customers served by the project upgrades is less than 50% of the total population served by the upgrades, the tribe will be responsible for funding the project at the percentage of population of non-Indian customers served by the upgrades. In cases where commercial or industrial entities receive water from the public water system, EPA Region 8 may ask the tribe to provide a match for the grant funds. If any commercial or industrial customer served by the project upgrades has a peak or an average daily demand greater than 20% of the peak or average daily demand of the whole system, the tribe will be responsible for funding the project at the percentage of demand of those customers exceeding the 20% limit. 4. Systems that are in significant noncompliance with any requirement of the National Primary Drinking Water Regulations will not be eligible for funding unless the project which is being funded will ensure compliance2. 5. Tribes will only receive funding for a project if they can demonstrate that the utility has, or will develop before initiation of operation of the newly constructed facilities, the capacity to properly maintain the treatment works (see Section VI)4. 6. Tribes may apply for more than one project in any given year. B. What types ofprojects can be funded through this grant program? Projects funded through the Tribal Set-Aside Construction Grant Program must address the most significant threats to public health associated with public water systems that serve tribal populations. Eligible projects (or portions of projects) must facilitate compliance with the National Primary Drinking Water Regulations (NPDWRs) or otherwise further the health protection objectives of the SDWA5. As stated in the National Guidelines, eligible improvement projects can: Rehabilitate or develop sources (excluding reservoirs, dams, dam rehabilitation and water rights); Install or upgrade treatment facilities; Install or upgrade storage facilities, including finished water reservoirs; Install or replace transmission and distribution pipes; and Physically consolidate existing public water systems or connect homes currently on private wells to existing public water systems. (Note that only tribes can apply for 2 ------- grants, not individual home owners.) Most of the grant funds awarded in this program will go directly towards construction of water infrastructure projects. However, EPA Region 8 realizes that there are areas where tribal populations have serious concerns about the quality of their drinking water, yet the best solutions have not yet been identified. To address these cases, grant funding can be used for feasibility studies. When submitting proposals, applicants can request assistance for a feasibility study, or if a study has already been completed, for construction funding. If EPA Region 8 determines that a project's feasibility study is not adequate, the applicant may be awarded funds to complete a more comprehensive feasibility study rather than construction funding. EPA Region 8 may also award funds to complete an environmental document (to comply with the National Environmental Policy Act). All projects must have a completed, adequate feasibility study before EPA construction funding may be expended. Note that the level of effort and depth of analysis required for the feasibility study are proportional to the size and complexity of the proposed project. See Appendix A for a description of feasibility study requirements. Pilot studies, for treatment techniques, are an eligible cost. Results from pilot studies should be incorporated into feasibility studies. C. What types ofprojects cannot be funded through this grant program? Grant funding is not allowed for: Monitoring (that is needed to meet requirements of Safe Drinking Water Act)2; Operation & maintenance2; Land acquisition (unless the land is integral to the project and is from a willing seller)2: Dams, or rehabilitation of dams6; Water rights (except if the water rights are owned by a public water system that is being consolidated)6; Reservoirs (except for finished water reservoirs and those reservoirs that are part of the treatment process and are located on the property where the treatment facility is located)6; Projects needed primarily for fire protection6; or Projects intended primarily for future growth6. III. Grant Application Process 3 ------- To minimize the workload to tribes, the grant application process will be divided into two steps. The first step will be the submittal of a project proposal. A Project Proposal Form is attached as Attachment 1 (instructions are presented in Section VII). Tribes should include copies of completed feasibility studies and environmental documents (if available). Feasibility studies are discussed in Section II.B., above, and EPA Region 8 feasibility study criteria are presented in Appendix A. Tribes must include a utility organization capacity checklist and budget. Capacity is discussed more in Section VI below. EPA Region 8 will use the information in the proposal package to place projects on a priority list, using the process described in Section IV. As mentioned earlier, a tribe may submit more than one project proposal in a given year, and in most cases, each project will be separately ranked. Additionally, if tribes submitted a project proposal in a previous year, they can contact their Tribal Set-Aside Construction Grant Program project officer (listed in Section IX) to request that the project be re-ranked during the next funding cycle. After EPA preliminarily ranks the project proposals received, each applicant tribe will be informed how its proposal(s) ranked and given the opportunity to verify and comment on EPA's ranking of the project. EPA Region 8 will then finalize and publish the priority list, notify the applicants selected to be funded, and provide formal grant applications to those selected. The number of projects selected for funding is dependent on the amount of funding available. Only projects identified and notified for funding will proceed with the second step, the formal grant application. As mentioned in Section II, the formal grant application (and proposals) must be submitted by a federally-recognized tribe. As part of the formal grant application, the tribe must determine who will manage the grant, and who will be responsible for each aspect of construction. The grant application includes a checklist that describes who will handle the various aspects of project management, planning, design, and construction management and plan and specification review. The list includes the many different players that must be available in a grant funded construction project to ensure that grant conditions are met and that the treatment works are built correctly and at an appropriate cost. The tribe may have adequate resources internally to ensure that the project is properly managed, or may wish to work with the Indian Health Service or another agency or firm (at the request of a tribe, funding can be transferred to the Indian Health Service through an Interagency Agreement) . EPA Region 8 will closely examine the list of proposed members of the project team. If EPA Region 8 finds that one or more members may not be able to ensure that federal funds are properly managed, the tribe will need to add qualified personnel. Grant negotiations may include discussion regarding contributions to the project by commercial and/or non-tribal populations served by the system being improved. 4 ------- IV. Project Selection Criteria How will projects be ranked? Each year EPA Region 8 will receive drinking water Tribal set-aside funds. Those funds will be allotted to the highest priority projects. Project ranking will be based on the following process. Annually EPA Region 8 will notify all tribes in the Region of the availability and amount of funds, including a copy of the Guidelines and proposal submission process. Tribes will submit project proposals to EPA Region 8 by the deadline specified in the notification letter. Those submitted after the deadline will not be considered during that round of funding. EPA will use the project proposal form, and all supporting information to consider the eligibility of the project. If all or part of the project is eligible, EPA Region 8 will use the information provided to score the proposal according to Project Prioritization Criteria and Ranking Form (see Appendix C). If additional information is required to accurately rank the proposal, EPA Region 8 will request the information from the tribe. Three criteria carry no weight in points: Affordability, Readiness to Proceed, and IHS Sanitation Deficiency System. Affordability - Affordability is a measure of customers to pay user fees to cover all costs of operation, maintenance, replacement of parts and equipment, and debt service. All proposals from tribes will be considered on an equal affordability basis. In reality some customers can afford higher rates than others, and some rates are higher than others. Each funded project will include a heavy emphasis on utility capacity which will address affordability and equity of user rates, and encourage or assist each system to be financially self-supporting. Upgrades or expansions to serve commercial or industrial customers, who are responsible for more than 20% of the peak or average daily demand, will require a tribal contribution percentage, to be calculated before award of funds. Readiness to Proceed - If a proposed project cannot begin feasibility planning, design, or construction within one year of award, it will not be considered eligible for funding. If funds are awarded and planning, design, or construction do not begin within one year of award, the grant will be closed out, and funds will be awarded to another proposed project within Region 8. If a project is delayed during planning, design, or construction for more than one year with no progress, the project will be investigated and the possibility of closing out the grant and using the funds on another project will be considered. IHS Sanitation Deficiency System (SDS) - The SDS from each IHS Area each year will be used to identify projects. Each tribe with a drinking water project on the SDS, which meets the eligibility criteria for EPA funding, will be contacted by EPA Region 8 during the proposal solicitation period and the tribe will be requested to complete the Project Proposal Form and supply other additional supporting information as necessary. If the tribe supplies this information by the specified proposal submission deadline, the project will be considered for eligibility and ranking. The SDS system will not be used to score the projects during ranking, 5 ------- except to possibly provide information to support other ranking criteria. After EPA Region 8 preliminarily ranks a project proposal and prepares a preliminary Project Priority List, the applicant Tribe will be informed as to how its proposal(s) ranked and will be given the opportunity to comment on the ranking. After considering the comments, EPA Region 8 will prepare a final Project Priority List. As required by EPA's National Guidance, EPA will then provide the entire list of projects (including estimated costs) to all tribes and other interested parties. V. Emergencies The national guidance allows regions to fund unanticipated emergency projects ahead of projects on the priority list. Since the ranking process inherently considers emergency situations, no special procedures will be used. VI. Capacity EPA's national policy is that all water system owners must have the technical, financial, and managerial capacity to properly run their water utilities in order to receive funding. If utilities do not currently have adequate capacity; system owners must make appropriate changes in operation (management, rate structure, maintenance, consolidation, alternative supplies, etc.) to ensure the long-term capability of the system. If a system does not have, or will not be able to develop capacity, it will not be eligible to receive drinking water tribal set-aside funds.4 A. What is capacity? EPA characterizes the three elements of technical, financial, and managerial capacity to properly run the utility as follows: Technical capacity refers to: the physical infrastructure of the water system (the capability of the system components to provide water that meets the requirements of the SDWA), and the technical knowledge of the system personnel and their ability to use that knowledge to adequately operate the system. Requirements for adequate technical capacity include: a) Employment of certified operator (as appropriate for system): Customers of any public water system need to be provided with an adequate supply of safe, potable drinking water. To attain this, it is essential that public water system operators are trained and certified and that they have knowledge and understanding of the public health reasons for drinking water standards. Without qualified and trained operators public health cannot be adequately protected. b) Adequate staff to operate the system: 6 ------- It is important to allow sufficient time for staff to examine the system, conduct preventive maintenance, ensure that conditions remain sanitary, address problems as quickly as possible to avoid a loss of pressure, prevent a lack of water; continue proper operation etc. This can be done by a variety of methods, but public health and the water system must be priorities of the operator(s). c) Ability to adequately survey system: Operating a system requires regular inspections of the facilities, (including the inside and outside of storage tanks, pump houses, and well heads), flushing gate valves regularly, etc. To achieve this, the operator needs to be able to have access to vehicles when facilities are not located within immediate walking distance. d) Availability of the tools and measurement devices necessary to perform routine operation and maintenance on the system: At times operators lack the ability to address a problem merely for lack of tools or instruments to conduct routine maintenance, such as changing leaky gaskets, flushing valves, or repairing chlorinators. e) Existence of as-built drawings: The existence of as-built drawings allows operators to properly conduct necessary maintenance activities such as flushing the system regularly, locating shut-off gate valves to isolate a break, and locating the system components for excavation. f) Ongoing training and safety programs: Ongoing training allows operators to sharpen their skills and better address system operations. Safety programs and equipment protect workers and the public and are required by law (OSHA). Financial capacity includes the ability of the system to maintain sufficient revenues to cover operation costs and the effective management of those resources in operation of the system. In effect, is the system financially healthy? Requirements for adequate financial capacity include: a) An adequate written budget (and process in place) to pay for staff, chemicals, power, maintenance: Financial capacity is key to proper operation and maintenance. A written budget is the first step. The delivery of water is essential to maintain sanitary conditions and public health. Though often smaller systems cost more per user than large systems (because of economies of scale), most ground water systems are relatively inexpensive as a necessary utility. Costs in some areas have been estimated below $20 per household connection. It is important for communities 7 ------- to make enough funds available to properly operate and maintain the system. Of course users must also pay their bills to ensure the financial stability of the system. b) A capital replacement plan (or at a minimum, identification of capital replacement needs): This ensures that money is set-aside from the budget to address expected major repairs that happen on a regular basis for such things as pump replacement and tank cleaning. Anticipation of major modifications and expansions is necessary. If these are not set aside in the budget, it may lead to a budget shortfall when the items need replacement. c) Funding for budget identified (whether through users or a general fund) at the beginning of the year: It is important, to ensure continued operation at a reasonable cost, that a budget is developed and funds are identified. This allows the system to address expenses in a reasonable manner as opposed to expending greater amounts when the unforeseen emergency arises (e.g., a pump due for replacement breaks down over the weekend, creating a need to expedite shipment and pay overtime). d) Record keeping for budget, use, operations, and equipment: For consistently efficient operations, it is necessary to anticipate budget expenses and equipment needs ahead of time. Managerial capacity includes such things as ownership accountability; the ability of management to adequately staff the system with qualified personnel; an understanding of the regulatory requirements involved in operating a water system; and the ability to interact well with customers and regulators. Requirements for adequate managerial capacity include: a) All monitoring required by the Safe Drinking Water Act is consistent and up-to-date: While monitoring itself does not correct health problems, it is necessary to determine the quality of water and ensure protection of public health. Though not eligible for funding, monitoring is required by law. b) The existence of a person or persons responsible for managing the system: The responsibilities of the managers must be well-defined and in written form. 8 ------- The "checks and balances" on those with responsibility for the system should also be well-defined and in written form (e.g., water board, Tribal council review). The division/delegation of responsibility will clearly be more complex with a larger water system than with a small water system. c) Development and implementation of source water protection plan: Source water protection is necessary to ensure that once the water source is developed, to the greatest extent possible, it remains safe for human consumption. B. Why is capacity needed if a health risk is present? Although the Safe Drinking Water Act does not expressly include capacity requirements under the tribal set-aside program, EPA's national policy is to ensure that consumers are continually provided safe drinking water and that the government's investment in tribal water systems is protected4 . The investment in physical infrastructure is only one part of ensuring safe drinking water delivery. Lack of proper operations and maintenance may lead to deterioration of the infrastructure and lead to unsanitary conditions. Proper staffing, management, financial planning, and funding are crucial to ensure that operations and maintenance are adequate. C. How does capacity affect eligibility? EPA Region 8 will rate projects solely using the methodology presented in Section IV. An assessment of capacity is part of the proposal process. The assessment will include an evaluation by a team of EPA experts to review the utility's technical, managerial, and financial capacity, based on information provided in the proposal and information already available to EPA. If, during the ranking process, EPA Region 8 determines that a utility does not have adequate capacity to operate and maintain the system, the system owner would have to agree to take appropriate steps to ensure that the utility develops the appropriate level of capacity before initiation of operation of the proposed facilities. A plan to accomplish this during the proposed project may be required from the owner before award of funds. Appropriate steps may include some or all of the following: Training and certifying existing system personnel or hire trained and certified personnel, Developing a source water protection plan, Developing an infrastructure replacement plan, Instituting a long-term program to provide any needed operation and maintenance, Conducting an analysis of the system's financial health, Adopting a rate structure that will provide the system with sufficient resources to adequately maintain and operate the system, 9 ------- Establishing a reserve fund to replace infrastructure reaching the end of its useful life, or Establishing an entity to manage and operate the system. EPA Region 8 will also have to evaluate other forms of capacity when considering grant applications. For example, tribes will have to demonstrate that they have the ability (either in- house or with the assistance of the Indian Health Service or another appropriate agency) to meet EPA's grant management requirements and properly oversee the construction project. These issues are discussed further in Section III. History of previous EPA grant performance will be considered. The above capacities and abilities are not only requirements for this grant program, but also valuable for any water system. Tribes wishing to receive more information about improving the technical, managerial, and financial capacity of their systems, or other project management skills should contact their EPA 8 Tribal Set-Aside Construction Grant Program Project Officer (see Section IX). VII. Instructions for Completing the Project Proposal Form Tribes must fill out a copy of the attached form for each project to be placed on the project priority list. Additional pages may be attached as necessary to ensure that EPA receives complete information to consider in evaluation project proposals. The project proposal should include completed feasibility studies and environmental documents if available. See below for specific directions. 1. Problem Description - In this section, describe the problem, the impact that it has had on the water system and/or Tribe, the reason that this project is necessary. List the public health, public safety, compliance, and environmental issues that the project will address. 2. Project Scope - Include a general description of the proposed project and what the project will do to solve the problem. 3. Project Justification - This section is directly related to the scoring criteria. 4. Project Description - In this section describe the project in detail. Itemize the major new or modified components that make up the project. 5. Project Cost - List any estimates based on available feasibility studies, engineering studies, or other sources. 6. Project Schedule - List realistic proposed target dates. Allow about 9 months for award. 10 ------- 7. This form must be signed by a Tribal Official certifying that the information supplied is accurate. VIII. References Sections of this guidance were adopted from materials produced by the following agencies: U.S. Department of Agriculture, Rural Utility Service (Feasibility Study Requirements) U.S. EPA Region 9 (Guidance) Pennsylvania Department of Environmental Protection (Project Prioritization Criteria) Footnoted references are as follows: 1. 42 U.S.C. 3OOj-12(i)( 1) 2. 42 U.S.C. 300j-12(a)(2) 3. 42 U.S.C. 300j-12-(i)(2) 4. U.S. EPA Tribal Set-Aside Program Guidelines (national), p. 16 5. U.S. EPA Tribal Set-Aside Program Guidelines (national), Appendix A 6. U.S. EPA Tribal Set-Aside Program Guidelines (national), p. 14 IX. Who to Contact Minnie Adams TSA Coordinator/WAM US EPA, 8P-W-TF 1595 Wynkoop Street Denver, Colorado, 80202-1129 (303)312-6624 FAX (303) 312.6131 email: adams.minnie@epa.gov Tsegaye Hailu, Capacity Development WAM US EPA, 8P-W-DW 1595 Wynkoop Street Denver, Colorado. 80202-1129 (303)312-6273 (303) 312-6131 email :hailu.tsegaye@epa.gov 11 ------- Appendix A Feasibility Study Requirements I. GENERAL. A Feasibility Study should clearly describe the owner's present situation, analyse alternatives, and propose a specific course of action, from an engineering perspective. The level of effort and depth of analysis required for the feasibility study are proportional to the size and complexity of the proposed project. The following should be used as a guide for the preparation of the Feasibility Studies. II. PROJECT PLANNING AREA. Describe the project area under consideration in the context of the existing and projected water system service area. The description should include information on the following: A. Location. Maps, photographs, and sketches. These materials should indicate legal and natural boundaries, major obstacles, elevation, etc. B. Growth Areas and Population Trends. Specific area(s) of concentrated growth should be identified. Population projections for the project planning area should be provided for the design period. These projections should be based on historical records with justification from recognized sources. III. EXISTING FACILITIES. Describe the existing facilities including at least the following information: A. Location Map. Provide a schematic layout and general service area map (map should be identified in project planning area maps of Section II. A. above). B. History. (Only if requested by EPA) C. Condition of Facilities. Describe present condition; suitability for continued use; adequacy of water supply (quantity & quality); and, if any existing central facilities, the treatment, storage, and distribution capabilities. IV. NEED FOR PROJECT. Describe the needs in the following order of priority: A. Describe current health risks and/or significant Safe Drinking Water Act non- compliance issues, and any anticipated health risks and/or significant Safe Drinking Water Act non-compliance issues after the project is completed. B. Describe the current O&M issues and those anticipated after the project is complete. C. Describe the reasonable growth capacity that is necessary to meet needs during the life 12 ------- of the improved portion of the system. D. Other Benefits. Describe any other benefits resulting from this project (e.g., improvements in aesthetic quality of water). V. ALTERNATIVES CONSIDERED. This section should contain a description of all reasonable alternatives (and a no-action alternative) considered in planning a solution to meet the identified need. The description should include the following information on each alternative: A. Description. Describe the facilities associated with the alternative. Describe all feasible water supply sources and provide comparison of such sources. Also, describe treatment, storage and distribution facilities. B. Design Criteria. State the design parameters used for evaluation purposes. C. Map. Schematic layout. D. Land Requirements. Identify sites and easements required. Further specify whether these properties are currently owned, to be acquired or leased. E. Construction Problems. Discuss concerns such as subsurface rock, high-water table, limited access, or other conditions which may affect cost of construction or operation of facility. F. Environmental Document. Describe unique direct and indirect impacts on flood plains, wetlands, other important land resources, endangered species, historical and archaeological properties, etc., as they relate to a specific alternative. EPA must conduct an environmental review prior to project approval. G. Cost Estimates. 1. Construction 2. Non-Construction and Other Projects. 3. Annual Operation and Maintenance. 4. Present Worth, based on Federal discount rates. H. Compare and contrast each alternative. A matrix may be helpful to display results. At a minimum the following items should be addressed: 1. Environmental Impacts 13 ------- 2. Annual O&M costs 3. Required operational expertise 4. Ability to achieve compliance with Safe Drinking Water Act requirements 5. Ability to address public health concerns 6. Total construction & non-construction costs 7. Other Tribal concerns PROPOSED PROJECT (Recommended Alternative). This section should contain a fully developed description of the proposed project based on the preliminary description under the evaluation of alternatives. At a minimum, the following information should be included (if applicable): A. Project Design. 1. Water Supply. Include requirements for quality and quantity. Describe recommended source, including site. 2. Treatment. Describe process in detail and identify location of plant site and any process discharges. 3. Storage. Identify size, type, site location. 4. Pumping Stations. Identify size, type, site location and any special power requirements. 5. Distribution Layout. Identify general location of line improvements; lengths, sizes, materials, and key components. 6. Hydraulic Calculations. This information should provide sufficient detail adequate for sound engineering design. Automation tools must be used by the engineer. The submittal should include a map with a list of nodes and pipes and the associated characteristics, such as elevation of node, pipe demands, fire flow, hydraulic calculations, etc. B. Cost Estimate. Provide an itemized estimate of the project cost based on the anticipated period of construction. Include development and construction, and land acquisition associated with the proposed project. 14 ------- C. Annual Costs of Recommended Alternative After Project Improvements. Project operations and maintenance costs and capital improvement costs realistically. In the absence of other reliable information, base data on actual costs of other existing facilities of similar size and complexity. Include facts in the study to substantiate operation and maintenance cost estimates. Include salaries, wages, taxes, accounting, and auditing fees, legal fees, interest, utilities, gasoline, oil and fuel, insurance, repairs, maintenance, supplies, chemicals, replacement costs, purchased water costs, office supplies and printing, and other miscellaneous costs. VII. CONCLUSIONS AND RECOMMENDATIONS. Provide any additional findings and recommendations that should be considered in development of the project. This may include recommendations for special studies, the need for special coordination, a recommended plan of action to expedite project development, etc. 15 ------- ------- Appendix B Project Proposal Form 17 ------- 2 O ' Environment Protection Agency, Region 8 Drinking Water Tribal Set-Aside Grant Page 1 PRO^ Project Proposal Form See Section VII: Instructions for Completing Project Proposal Form Applicant Tribe Submitting Proposal Information Project Manager's Name Address Phone No. FAX No. Email Service Area Information Water Utility Information Number of Connections Number of Existing Meters Population Number of Tribal People served by Project Number of Non-Tribal People Served by Project_ Project Location Water System Owner Will Ownership be Transferred to a New Owner? If Yes, Please Explain Is This a Public Water System? If Yes, PWISS No. Is This a Community or Non-Community Water System? Is This A For-Profit Water System? Other Describe Any Existing Conservation Measures. Background Information Does the Tribe and/or Water Utility Have a Source or Wellhead Protection Program? If Yes, Is the Tribe or System in the Process of Implementing One of the Above Programs? Is the Proposed Project a Consolidated Project? If Yes, How Many Systems Will be Consolidated? and What are Their Populations? Problem Description 18 ------- hi "V Environment Protection Agency, Region 8 Drinking Water Tribal Set-Aside Grant Page 2 Project Proposal Form (Continued) Project Scope Project Does this Project (Check all that Apply) Justification Address a Serious Risk to Human Health Provide Compliance with Safe Drinking Water Act Requirements Assist Community Water System(s) Was Need Identified as a Result of a Sanitary Survey? Will this Project be administered by IHS? or Tribe? Project Will Provide (Check all that Apply) Improvement In Public Health Improvement In Public Safety Improvements In Ability To Comply Improvements In Environment Improvements In Adequacy And Efficiency Utility Organization Capacity Include a Short Narrative and Supporting Documentation for all that Apply. Project Describe the Proposed Project Description Project Cost Estimated Total Project Cost $ 19 ------- Environment Protection Agency, Region 8 Drinking Water Tribal Set-Aside Grant Page 3 Project Proposal Form (Continued) Project Schedule EPA Project Milestones: (Targets) Award Planning Start Planning Complete Design Start Design Complete Construction Start Plan of Operation Complete (At 50% of Construction) Construction Complete Initiation of Operation Final Report (90 Days after Construction Complete) Performance Certification (1 Year from Initiation of Operation) Closeout Along with Project Budget/Financial Plan Project Financial Plan Budget Estimates: Engineering $_ Construction $ Administration $_ Equipment $ Land Acquisition $ Contingencies (10%) $_ Estimated Total Project Cost Explain. Have Other Entities Committed to Contribute Funding for this Project? If so, Describe Commitment. Have You Applied for Funding From Other Agencies? If so, What Agencies? Is Indian Health Service Involvement Anticipated? If so, How? Will EPA Funds be Transferred to IHS for Administration of Project? 20 ------- Project Feasibility Study Complete? ~ Yes (Attach) ~ No Status Environmental Information Document Complete? ~ Yes (Attach) ~ No Preliminary Design Complete? ~ Yes (Attach) ~ No Final Design Complete? ~ Yes (Attach) ~ No Signature of Person Certifying that this Information is Accurate (Project Approval by Council or Tribal Leader Recommended) Title of Certifying Official Date 21 ------- 22 ------- Appendix C EPA Region 8 Ranking Criteria 22 ------- 1. IMPROVEMENTS IN PUBLIC HEALTH - up to 70 points Critical or acute Forty (40) points will be awarded to projects that propose to eliminate a problem that poses an acute hazard to the consumer. The applicant must provide written documentation to confirm these problems, supported by analytical results or engineering reports. Chronic Thirty (30) points will be awarded to projects that propose to eliminate a problem that poses a chronic, non-acute hazard to the consumer. Periodic Twenty (20) points will be awarded to projects that propose to eliminate a problem that poses a periodic, non-acute hazard to the consumer. Potential Fifteen (15) points will be awarded to projects that propose to eliminate a problem that poses a potential hazard to consumers. Sanitary Surveys (may be in addition to other criteria) Up to 20 points will be awarded to projects that propose to address recommendations of an EPA Sanitary Survey. Preventive (may be in addition to other criteria) Ten (10) points will be awarded to projects that propose preventive maintenance improvements. Only one of the first four factors may be selected, in addition to the last two, allowing up to 70 total points for Improvements In Public Health. 2. IMPROVEMENTS IN PUBLIC SAFETY - up to 45 points Ongoing or chronic Twenty-five (25) points will be awarded to projects that propose to eliminate a problem that poses an ongoing public safety hazard. The applicant must provide written documentation to confirm these problems. Periodic or potential Twenty (20) points will be awarded to projects which propose to eliminate a public safety hazard which has occurred periodically or if there is potential for the problem to occur. 23 ------- Preventive maintenance Fifteen (15) points will be awarded to projects which propose preventive maintenance improvements related to a potential public safety hazard. Security (may be in addition to other criteria) Fifteen (15) points will be awarded to projects which propose security or emergency response plan/measures. Worker safety (may be in addition to other criteria) Five (5) points will be awarded to projects which propose to eliminate a worker safety hazard. Only one the first three factors may be selected, in addition to the last two, allowing up to 45 total points for Improvements In Public Safety 3. IMPROVEMENTS IN ABILITY TO COMPLY - up to 50 points Violation posing acute hazard. Failure to monitor does not qualify, (may be in addition to other criteria) Twenty (20) points will be awarded to projects which propose to eliminate a violation posing an acute health or safety hazard. Violation posing non-acute hazard. Failure to monitor does not qualify, (may be in addition to other criteria) Fifteen (15) points will be awarded to projects which propose to eliminate a violation posing a non-acute health or safety hazard. Regulation with deadline specified by EPA (may be in addition to other criteria) Ten (10) points will be awarded to projects which propose to improve compliance with a deadline specified in regulation. Regulation with no deadline specified by EPA (may be in addition to other criteria) Five (5) points will be awarded to projects which propose to improve compliance with regulation without deadlines. Any or all of the factors may be selected, allowing up to 50 total points for Improvements In Ability To Comply. 4. IMPROVEMENTS IN ENVIRONMENT - up to 11 points Surface or ground water quality improvements Five (5) points will be awarded to projects which propose to correct an existing surface or ground water environmental pollution problem. 24 ------- Surface or ground water quality improvements Four (4) points will be awarded to projects which propose to improve some existing environmental condition not related to pollution. Surface or ground water quantity improvements (water rights)(may be in addition to other criteria) Three (3) points will be awarded to projects which propose to address surface or ground water quantity or water rights issues. Aesthetic or quality of life improvements (may be in addition to other criteria) Two (2) points will be awarded to projects which propose to improve the quality of life for consumers through environmental improvements. No negative environmental or social impact (may be in addition to other criteria) One (1) point will be awarded to projects in which there is no demonstrable negative environmental or social impact. Only one of the first two factors may be selected, in addition to any or all of the last three factors, allowing up to 11 total points for Improvements In Environment. 5. IMPROVEMENTS IN ADEQUACY AND EFFICIENCY - up to 35 points Conservation (may be in addition to other criteria) Fifteen (15) points will be awarded to projects which propose to provide water conservation measures. Consolidation (may be in addition to other criteria) Five (5) points will be awarded to projects which propose to improve existing facility operation or maintenance through water system consolidation. Reliability (may be in addition to other criteria) Five (5) points will be awarded to projects which propose to improve the reliability of the existing system. Operating cost reduction (may be in addition to other criteria) Five (5) points will be awarded to projects which propose to reduce the cost of operating the system, other than consolidation or conservation. Aesthetic quality or availability of water (may be in addition to other criteria) Five (5) points will be awarded to projects which propose to improve the aesthetic quality of the water or increase available water, other than consolidation or conservation. Any or all of the factors may be selected, allowing up to 35 total points for Improvements In Adequacy And Efficiency. 25 ------- 6. CAPACITY - up to 45 points Technical Capacity Points will be awarded to projects for which the owner has demonstrated the technical capacity to operate and maintain the facility to provide service to customers which meets the requirements of the Regulations. The technical capacity points will be based on information provided by the applicant which substantiates proper operation of the facilities. Specifically, the following factors will be evaluated: Up to 10 points will be awarded for using adequate staff and operators) with the appropriate certification level (must be certified by a recognized certifying authority). A list of staff and copies of certificates are required. Up to 5 points will be awarded for use of an operations plan which describes in detail the day to day operations of the facilities. A copy of the operations plan is required. Any proposal which fails to demonstrate the existing technical capacity to operate and maintain the facility must plan to acquire the minimum technical capacity as a result of the proposed project. A detailed description of the plan must be developed before award of funds. Assistance from EPA Region 8 is available for this process. Managerial Capacity Points will be awarded to projects for which the owner has demonstrated the managerial capacity to operate and maintain the facility to provide service to customers which meets the requirements of the Regulations. The managerial capacity points will be based on information provided by the applicant which substantiates ownership accountability, adequate staff and organizational structure, and effective linkages. Specifically, the following factors will be evaluated: Up to 10 points will be awarded for clear division and/or delegation of responsibility in the organization. An illustration or explanation of the organizational structure is required. Up to 5 points will be awarded for use of a business plan. A copy of the business plan is required. Any proposal which fails to demonstrate the existing managerial capacity to operate and maintain the facility must plan to acquire the minimum managerial capacity as a result of the proposed project. A detailed description of the plan must be developed before award of funds. Assistance from EPA Region 8 is available for this process. Financial Capacity Points will be awarded to projects for which the owner has demonstrated the financial capacity to operate and maintain the facility to provide service to 26 ------- customers which meets the requirements of the Regulations. The financial capacity points will be based on information provided by the applicant which substantiates fiscal controls, revenue sufficiency, and ability to access funds. Up to 10 points will be awarded for the use of a budget and a financial planning tool for future operations. A copy of a recent budget and planning tool are required. Up to 5 points will be awarded for the effective use of a revenue system which equitably distributes the expenses among the users and uses those revenues for budgeted expenses. A copy of the user charge ordinance or similar description is required. Any proposal which fails to demonstrate the existing financial capacity to operate and maintain the facility must plan to acquire the minimum financial capacity as a result of the proposed project. A detailed description of the plan must be developed before award of funds. Assistance from EPA Region 8 is available for this process. All of the Technical, Managerial, and Financial Capacity factors will be evaluated for each proposal, allowing up to 45 total points for Capacity. 27 ------- Appendix D Project Activities and Tasks 28 ------- Tribal Set-Aside Construction Grant Program Project Activities Tasks and Mestones TSA Grant Application Process Selection and Award Procesc Preliminary Design Planning Detailed Design Construction C bse Out r -\ v EPA R8 Annual Program Development and Advertisement EPA Request for Proposals (Notice of Funds) Tribes - Prepare and Submit Project Proposals Feasibility Study if Available Public Comments Period Evaluation of Proposals Notification to Tribe Tribe Determine Method of Funding: Tribal Grant or IAG W/IHS- Project Management Administration Grant Application to EPA EPA Award to Tribe MOA If Applicable IAG If Applicable > j r Use IHS Project Summary if Applicable Tribal - Hire Engineer for Tribal Facilities Plan if Applicable (Including NEPA Documentation) EPA Review and Approval of Facilities Plan/NEPA Documents, if Applicable Begin Design Prepare Plan of Operation Draft EPA Review Plans & Specs at 50% Design Finalize Design/ Prepare Bid Package Advertise for Construction Bids or Negotiate Contract -EPA Review of Draft Plan of Operation (at 50% Construction Complete) i.e. Charge Evaluation, Budget, O&M Manual, Bylaws, Codes, And Ordinances Complete Facilities & As Builts Final Inspection Initiation of Operation 1 Year Performance Period Final Report Performance Certification Initiation of Operation EPACIoseout of Grant - Retain Records for 5 Years > 29 ------- Tribal Set-Aside Construction Grant Program TSA Grant Application Process Activity SA Grant Application Process Start RFP (Notice of Funds) To Tribes Completed Project Proposal Form __ Feasibility Study Documents - To EPA Region 8 To EPA" Region 8 Tribe or Agent Prepare Feasibility Study (If Applicable) EPA Advertisement Request for Proposals Tribes or Agent Prepare Project Proposals Award Selection Process Preliminary Design (Planning) Detailed Design Construction Close Out V 30 ------- Tribal Set-Aside Construction Grant Program TSA Grant Award Activity SA Grant Application Process Award Selection Process Preliminary Design (Planning) Detailed Design Construction Uose Out TSA Grant Proposals EPA Evaluate Proposals Priority List (Prelim) Public 1 Comments Priority List (Final) To Tribe Method of Funding Request Approval? Possible Negotiations With Tribe Remains on list until next year Award Notification ecision on roject Typ Grant to Tribe IAG W/IHS Tribe Prepare Application For $0 IHS Prepare Project Summary and MOA W/Tribe, W/IHS, W/Others Sign MOA By All Parties Prepare Application for Full Amount $ EPA Award EPA Prepare IAG J" 31 IAG W/IHS and EPA Award $0 /"To Tribe" x^arid IHS,. ------- Tribal Set-Aside Construction Grant Program Preliminary Design (Planning) SA Grant Applicatior Process Award Selection Process Preliminary Design (Planning) Detailed Design Construction Close Out Project Management Responsibility Tribal AG VW HS Continue Preliminary Project Design Review Project Summary 1 l F Preliminary Design and Other Engineering Documents Hire/Co Engir Ser r ritract for leering vices 1 ' Prepare Tribal Facilities Plan and NEPA Documents r Prepare Scope Of Work, If Applicable x 'To EPA ^Region 8, Note: On IAG W/IHS Type Projects - IHS usually performs the feasibility study, design and engineering work for the project. On Grant to Tribe Type Projects the Tribe is responsible for these deliverables. Facilities Plan NEPA Scope oEP egion 32 ------- Tribal Set-Aside Construction Grant Program TSA Detailed Design Activity rSA Grant Application Process Award Selection Process Preliminary Design (Planning) Detailed Design Construction Close Out Begin Design Produce Draft Plan of Operations EPA Review Plans & Specifications at 50% Design Phase (15 Days) 1 F Finalize Design 1 F Prepare Bid Package 1 F Advertise For Construction Bids / Negotiate Contract 33 ------- Tribal Set-Aside Construction Grant Program TSA Construction Activity Start 'SA Grant Application Process Produce Draft Plan of Operations at 50% Complete Award Selection Process Preliminary Design (Planning) Prepare: User Charge Evaluation Budget O&M Manual, Bylaws, Codes & Ordinances Detailed Design EPA Review Plans Of Operations (15 Days) Construction Complete Facilities And As Builts Drawings / Documentation Close Out Fail f Make Correction: Final Inspection Pass Initiation of Operations 34 ------- 'SA Grant Application Process Award Selection Process Preliminary Design (Planning) Detailed Design Construction Tribal Set-Aside Construction Grant Program TSA Closeout Activity Evaluate one Year Performance Period C ose Out Closeout Retain Filej For 5 Yearsl Prepare: Final Report Prepare Performance Certification to EPA EPA Closeout Grant 35 ------- |