1. Section 367.110 Purpose
      2. Section 367.120 Definitions
      3. Section 367.130 Incorporations
      4. Section 367.210 Financial Assistance Awards
      5. Section 367.220 Assistance Eligibility Criteria
      6. Section 367.310 Phase I Study Awards
      7. Section 367.320 Phase II and LQMP Awards
      8. Section 367.410 Assistance Award Pre-Application
      9. Section 367.420 Phase I Assistance Application
      10. Section 367.430 Phase II Assistance Application
      11. Section 367.440 LQMP Assistance Application
      12. Section 367.450 Re-application
      13. Section 367.460 Project Selection
      14. Section 367.510 Public Notification of Assistance Award
      15. Section 367.520 Public Participation in the Selection of a Lake
      16. Restoration or Protection Plan
      17. Section 367.610 Monthly Reports
      18. Section 367.620 Final Phase I Report
      19. Section 367.630 Final Phase II and LQMP Reports
      20. Section 367.710 Financial Assistance Agreements
      21. Section 367.720 Phase I Project Implementation Requirement
      22. Section 367.730 Agreement Period
      23. Section 367.740 Appropriation Contingency
      24. Section 367.750 Project Changes
      25. Section 367.760 Financial Assistance Award Termination
      26. Section 367.770 Subcontracts
      27. Section 367.780 Drug Free Workplace
      28. Section 367.790 Final Inspection for Phase II and LQMP Projects
      29. Section 367.810 Access
      30. Section 367.820 Audit and Records
      31. Section 367.910 Determination of Allowable Project Costs
      32. Section 367.920 Requests for Payment
      33. Section 367.930 Reimbursement Rate
      34. Section 367.940 Contingency
      35. Section 367.950 Withholding of Payments
      36. Section 367.960 Final Payment
      37. Section 367.1010 General
      38. Section 367.1020 Phase I Diagnostic Study
      39. Section 367.1030 Phase I Feasibility Study
      40. Section 367.1040 Environmental Evaluation
      41. Section 367.1150 Approval of Phase I Recommended Alternatives

TITLE 35: ENVIRONMENTAL PROTECTION
                                     
SUBTITLE C: WATER POLLUTION
                                     
CHAPTER II: ENVIRONMENTAL PROTECTION AGENCY
                                     
 
PART 367
PROCEDURES FOR ISSUING FINANCIAL ASSISTANCE
AWARDS UNDER THE ILLINOIS CLEAN LAKES PROGRAM
                                     
 
SUBPART A: INTRODUCTION
 
Section
367.110 Purpose
367.120 Definitions
367.130 Incorporations
 
SUBPART B: FINANCIAL ASSISTANCE PROGRAMS
 
Section
367.210 Financial Assistance Awards
367.220 Assistance Eligibility Criteria
 
SUBPART C: FUNDING LEVELS
 
Section
367.310 Phase I Study Awards
367.320 Phase II and LQMP Awards
 
SUBPART D: ASSISTANCE APPLICATIONS
 
Section
367.410 Assistance Award Pre-Application
367.420 Phase I Assistance Application
367.430 Phase II Assistance Application
367.440 LQMP Assistance Application
367.450 Re-application
367.460 Project Selection
 
SUBPART E: PUBLIC PARTICIPATION
 
Section
367.510 Public Notification of Assistance Award
367.520 Public Participation in the Selection of a Lake Restoration or
Protection Plan
 
SUBPART F: MONITORING REQUIREMENTS
 
Section
367.610 Monthly Reports
367.620 Final Phase I Report
367.630 Final Phase II and LQMP Reports
 
SUBPART G: ASSISTANCE AWARD CONDITIONS AND LIMITATIONS
 
Section
367.710 Financial Assistance Agreements
367.720 Phase I Project Implementation Requirement
367.730 Agreement Period
367.740 Appropriation Contingency
367.750 Project Changes
367.760 Financial Assistance Award Termination
367.770 Subcontracts
367.780 Drug Free Workplace
367.790 Final Inspection for Phase II and LQMP Projects
 
SUBPART H: ACCESS, AUDITING AND RECORDS
 
Section
367.810 Access
367.820 Audit and Records
 
SUBPART I: PAYMENTS
 
Section
367.910 Determination of Allowable Project Costs
367.920 Requests for Payment
367.930 Reimbursement Rate
367.940 Contingency
367.950 Withholding of Payments
367.960 Final Payment
 
SUBPART J: REQUIREMENTS FOR PHASE I DIAGNOSTIC AND FEASIBILITY STUDIES AND
ENVIRONMENTAL EVALUATIONS
 
Section
367.1010 General
367.1020 Phase I Diagnostic Study
367.1030 Phase I Feasibility Study
367.1040 Environmental Evaluation
367.1050 Approval of Phase I Recommended Alternatives
 
AUTHORITY: Implementing and authorized by the Illinois Lake Management
Program Act [525 ILCS 25] and Section 6-32 of the State Finance Act [30
ILCS 105/6z-32]
 
SOURCE: Adopted at 22 Ill. Reg. 15269, effective August 7, 1998.
 
SUBPART A: INTRODUCTION
                                     
 



Section 367.110 Purpose
The Illinois Environmental Protection Agency is authorized by the Illinois
Lake Management Program Act [525 ILCS 25] and the Conservation 2000
Projects Fund [30 ILCS 105/6z-32] to establish a program for managing and
improving the uses and water quality of Illinois inland lakes and, to that
end, to provide financial assistance to lake owners to implement
comprehensive use and water quality improvement strategies. This Part 367
establishes the eligibility criteria for financial assistance awards, the
procedures for submitting financial assistance applications, and the
criteria under which applications will be reviewed by the Illinois
Environmental Protection Agency.
 



Section 367.120 Definitions
 
a) Unless otherwise specified, all terms shall have the meanings set
out in the Illinois Lake Management Program Act [525 ILCS 25] and
the Illinois Environmental Protection Act [415 ILCS 5].
b) For the purposes of this Part, the following definitions apply:
 
Agency: the Illinois Environmental Protection Agency.
 
         Comprehensive Lake Management: an action resulting from lake
management strategies and plans that address all potential causes
of lake degradation, including factors situated both in the lake
and within the lake's tributary watershed; and followed by the
development and implementation of management strategies that
impart long-term improvements and benefits for the lake. [525
ILCS 25/3(c)]
 
         Diagnostic and Feasibility (Phase I) Study: the gathering of data
to document the existing and potential sources of pollution and to
determine the limnological, morphological, demographic, and other
pertinent characteristics of an inland lake and its associated
watershed and the analysis of this information to determine the
most appropriate method for improving or preserving the quality of
the lake for intended uses and to determine the need for a
Long-Term Restoration and Preservation (Phase II) Project or a
Lake Water Quality Maintenance Program (LQMP). [525 ILCS 25/3(d)]
 
Financial Assistance Agreement (FAA): an agreement between the
Agency and the lake owner that covers the conditions of the
financial assistance award.
 
Financial Assistance Recipient: a lake owner who has entered into
a Financial Assistance Agreement with the Illinois Environmental
Protection Agency.
 
Illinois Clean Lakes Program: the inland lake study or
implementation financial assistance award program administered by
the Agency pursuant to the Illinois Lake Management Act [525 ILCS
25] and the Conservation 2000 Fund program [30 ILCS 105/6z-32].
 
Lake: any inland lake as defined in Section 3(e) of the Illinois
Lake Management Act [525 ILCS 25/3(e)].
         Lake Owner: the owner, owners, or designated management authority
of any inland lake who possesses the legal authority over a given
lake and the ability to generate revenue and in-kind contributions
to perform Diagnostic and Feasibility Studies and to enact
comprehensive lake management through the implementation of
Long-Term Restoration and Preservation Projects (Phase II) and
Lake Water Quality Maintenance Programs. [525 ILCS 25/3(f)]
 
Lake Water Quality Maintenance Program (LQMP): the water quality
maintenance program described in Section 3 of the Illinois Lake
Management Program Act [525 ILCS 25/3] for implementation of a
lake and watershed management plan recommended by the Diagnostic
and Feasibility (Phase I) Study which provides short-term relief
from nuisance aquatic vegetation and algae growth; projects under
this program must demonstrate that the proposed maintenance
program would result in attainment of significant public
recreational lake use, and that watershed management plans are
being implemented to control and reduce incoming nutrients,
sediments, and other pollutants. [525 ILCS 25/3(l)]
 
         Long-Term Restoration and Preservation (Phase II)
         Project: implementation of lake and watershed management plans as
developed under the Diagnostic and Feasibility Study which will
provide for long-term restoration benefits and long-term
preservation of the lake's water quality. [525 ILCS 25/3(g)]
 
         Monitoring: programs to scientifically document the existing
chemical, physical, and biological quality of a lake and the
potential sources of pollutants which might lead to the lake's
degradation or reduced environmental and cultural values. [525
ILCS 25/3(h)]
 



Section 367.130 Incorporations
 
a) The following materials are incorporated by reference:
1) American Institute of Public Accountants Professional
Standards, 666 Fifth Avenue, New York, New York 10019 (1997)
2) Protocol for the Conduct of Phase I Diagnostic-Feasibility
Studies and Environmental Evaluations, Appendix E, Clean
Lakes Program Guidance Manual, EPA 440/5-81-003, USEPA Office
of Water Regulations and Standards (1980)
b) The incorporations included in this Section contain no additional
editions or amendments.
 
SUBPART B: FINANCIAL ASSISTANCE PROGRAMS
                                     
 



Section 367.210 Financial Assistance Awards
 
The following financial assistance awards are available under the Illinois
Clean Lakes Program for lake protection and restoration at the local level:
a) Diagnostic and Feasibility Study (Phase I) Awards
These awards are available to lake owners to conduct a Phase I
Diagnostic and Feasibility Study to determine, through monitoring,
the current limnological, morphological, demographic, and
socioeconomic conditions of a specific lake and its watershed and
to develop action plans for future lake protection and
restoration.
b) Long-Term Restoration and Preservation Project (Phase II) Awards
These awards are available to lake owners who have completed a
Phase I or equivalent study report that meets the requirements of
Subpart J of this Part and who agree to implement lake and
watershed management plans that provide for the long-term
restoration of lake water quality and associated designated lake
uses.
c) Lake Quality Maintenance Program (LQMP) Awards
These awards are available to lake owners who have completed a
Phase I or equivalent study report that meets the requirements of
Subpart J of this Part, and who agree to implement lake and
watershed management plans that will:
1) provide short-term relief from nuisance aquatic vegetation
and algae growth; and
2) result in the attainment of significant public recreational
and other beneficial lake uses such as swimming, fishing, or
boating; and
3) insure that watershed management plans are being implemented
to control incoming pollutants, such as sediment and
nutrients. [525 ILCS 25/3(j)]
 



Section 367.220 Assistance Eligibility Criteria
 
a) Any inland lake owner who meets the following criteria is eligible
to apply for a Phase I, Phase II or LQMP assistance award:
1) The lake owner has the legal authority to enter into
contracts or agreements with local, State and federal
agencies and private organizations for the purpose of
performing Phase I, Phase II or LQMP projects;
2) The lake owner has the authority and ability to adopt,
implement and enforce official controls; and
3) The lake owner has the authority and ability to generate
revenue and in-kind contributions, and agrees to pay the
local share of project costs.
b) Assistance may be requested for any Illinois inland lake as
defined in Section 3(e) of the Illinois Lake Management Act that
meets the following requirements:
1) Either:
A) the lake has an identifiable and quantifiable chemical,
physical or biological problem resulting in the
impairment of beneficial uses; or
B) the lake is in need of protection or is potentially
being threatened by any point or nonpoint source of
pollution; and
2) the primary uses of the lake include general recreation,
public water supply, aquatic life, or primary contact.
c) The following lakes will generally not be considered eligible for
Phase I, Phase II or LQMP assistance:
1) lakes whose primary function is as stormwater detention
basins;
2) side-channel impoundments that are mechanically filled with
water, and cannot be naturally recharged by surface water
runoff or groundwater inflow;
3) lakes that have a surface acreage of less than six acres;
4) ponds owned and managed by private landowners; and
5) river backwater lakes.
 



Section 367.310 Phase I Study Awards
 
a) Through the Clean Lakes Program, the Illinois Environmental
Protection Agency will provide up to a maximum of 60% of the total
cost of a Phase I Diagnostic and Feasibility Study project (up to
a maximum of $75,000), with the lake owner or other sources
providing a minimum 40% match.
b) However, the maximum Agency contribution per study project shall
not exceed $125,000 in cases where:
1) a single lake owner applies for a study project involving 2
or more distinct, yet hydraulically connected, lakes; or
2) a single lake owner applies for a study project involving 2
or more distinct, non-hydraulically connected, lakes that lie
within the jurisdictional boundary of the applicant lake
owner; or
3) the Agency determines that it would be technically,
economically or administratively more feasible to combine
into 1 study project application 2 or more applications
submitted by a single lake owner for 2 or more hydraulically
connected or non-hydraulically connected lakes.
 



Section 367.320 Phase II and LQMP Awards
 
a) Through the Clean Lakes Program, the Illinois Environmental
Protection Agency will provide up to a maximum of 50% of the total
project cost for Phase II Long-Term Restoration and Preservation
Projects or LQMP projects, with the lake owner or other sources
providing a minimum 50% match. No more than a maximum of $300,000
in State cost-share monies will be allocated to any Phase II
project, and no more than a maximum of $10,000 in State cost-share
monies will be allocated to any LQMP project.
b) Lake owners whose Phase I reports meet the requirements of Subpart
J of this Part and who have conducted or are currently conducting
Phase I type work under the auspices of Section 314 of the Federal
Water Pollution Control Act (33 USC 1324) (Federal Clean Lakes
Program) may apply for Phase II or LQMP assistance awards under
the Illinois Clean Lakes Program.
 
SUBPART D: ASSISTANCE APPLICATIONS
                                     



Section 367.410 Assistance Award Pre-Application
 
Lake owners seeking Phase I, Phase II or LQMP funding assistance shall
submit the following pre-application information to the Agency by August 31
of each year:
a) Lake name;
b) Lake location (city and county);
c) Name of local project sponsor (grant applicant, source of local
match);
d) Name, address and telephone number of local contact;
e) Name, address and telephone number of person who prepared
application;
f) Type of award requested (Phase I, Phase II or LQMP);
g) Estimated project cost;
h) Estimated local match for project;
i) Project period;
j) Lake characteristics:
1) Surface area (acres and hectares);
2) Mean depth (feet and meters);
3) Maximum depth (feet and meters);
4) Volume (acre-feet and cubic meters);
5) Retention time (in years, if available);
6) Type of lake and year constructed (if applicable);
k) Watershed characteristics (in acres and hectares and percentage of
total area):
1) Total watershed area;
2) Cropland;
3) Pasture;
4) Forest;
5) Urban;
6) Other;
l) Lake ownership and access:
1) Specific description of lake bottom ownership;
2) Specific description of the degree of public access to lake
shoreline;
m) Lake use:
1) List of major uses associated with the lake;
2) List of available recreational facilities;
3) Estimated annual recreational use in visitor days (1 user per
day = 1 visitor day);
4) Public water supply usage (population served and millions of
gallons per day);
n) A brief description of the lake's history, use, importance and
watershed conditions;
o) A brief description of the lake's impaired uses and water quality
problems, including the causes of the problems;
p) A brief description of the lake restoration plan including, for
Phase I projects, the measures anticipated; and, for Phase II or
LQMP projects, the measures planned to be implemented and the
estimated cost of each measure;
q) A brief description of the level to which the watershed area has
been protected to prevent pollution of the lake;
r) A brief description of the history of any lake restoration or any
previous local efforts to solve the existing problems.
 



Section 367.420 Phase I Assistance Application
 
Applications for Phase I financial assistance shall be forwarded to the
Agency by the lake owner no later than October 31 of each year. The Phase I
application shall include the following information:
a) Application Proposal
1) A narrative statement describing the specific procedures that
will be used to conduct a Phase I Diagnostic and Feasibility
Study as required under Subpart J of this Part, including a
description of public participation measures.
2) A description of the division of labor and responsibility for
the Phase I study.
3) A milestone schedule.
4) An itemized cost estimate, including justification of the
costs.
5) Mandatory lake information as follows:
A) Lake name;
B) Lake location (including latitude and longitude of the
lake center);
C) Physical characteristics of the lake, including:
i) Surface area (acres and hectares);
ii) Maximum depth (feet and meters);
iii) Mean depth (feet and meters);
iv) Volume (acre feet and cubic meters);
v) Stratification;
vi) Retention time (in years);
vii) Major inflows and outflows.
6) A summary of available chemical and biological data
indicating the past and present water quality of the lake.
7) A detailed description of the type and amount of public
access and a discussion of the public benefits of protecting
and restoring the lake.
8) A description of the recreational, public water supply, and
other uses impaired due to degraded water quality and a
discussion of the causes and sources of impairment.
9) A discussion of local interest and resource commitment in
lake restoration.
10) A description of a proposed Phase I monitoring program to
provide for the collection of the information required in
Section 367.1020 of this Part.
11) Lake watershed characteristics as follows:
A) Size (acres and hectares);
B) Land use (each major use as a percentage of whole);
C) General topography and major soil types.
12) A listing of the major point source discharges in the lake
watershed (including NPDES permit numbers).
13) An estimate of the percent contribution of total nutrient and
sediment loading to the lake by identified point sources.
14) A listing of the major nonpoint sources in the lake watershed
and a description of the control measures applied.
15) A discussion of the lake or watershed management practices
currently being implemented.
16) A discussion of the anticipated lake protection or
restoration methods and the projected net improvements in the
chemical, physical or biological quality of the lake.
17) A discussion of any anticipated adverse environmental impacts
due to the lake restoration.
b) Certifications
The Phase I assistance application shall include a completed and
signed set of certifications as provided in the Agency's
application package.
c) Project Cost Summary
The Phase I assistance application shall include a completed and
signed Project Cost Summary worksheet as provided in the Agency's
application package that specifies all expenditures requested for
the project.
 



Section 367.430 Phase II Assistance Application
 
Applications for Phase II long-term restoration and preservation project
assistance shall be forwarded to the Agency no later than October 31 of
each year. Phase II assistance applications shall consist of a completed
and Agency-approved Phase I Diagnostic and Feasibility Study and a set of
completed and signed certification and project cost summary documents.
 



Section 367.440 LQMP Assistance Application
 
Applications for LQMP assistance shall be forwarded to the Agency no later
than October 31 of each year. An LQMP application shall consist of a
completed and Agency-approved Phase I Diagnostic and Feasibility Study, and
a set of completed and signed certification and project cost summary
documents. The Feasibility portion of the Phase I study (see Section
367.1030 of this Part) shall include a demonstration that the proposed
maintenance activities will result in the attainment of significant
recreational and other beneficial lake uses such as swimming, fishing and
boating, and that watershed management plans are being implemented to
control and reduce incoming nutrients, sediments and other pollutants.
 



Section 367.450 Re-application
 
A lake owner whose application was not funded may resubmit the application
in a subsequent fiscal year by notifying the Agency in writing on or before
August 31. The lake owner shall submit to the Agency by October 31 an
update of the information previously submitted.
 



Section 367.460 Project Selection
 
All applications received by October 31 of each fiscal year will be
reviewed for funding by the Agency in accordance with the "Procedures for
Determining Priorities for Inland Lake Study and Implementation Project
Awards," 35 Ill. Adm. Code 368.
SUBPART E: PUBLIC PARTICIPATION
                                     
 



Section 367.510 Public Notification of Assistance Award
 
Within two months after receipt of a signed financial assistance award
agreement the lake owner shall submit to newspaper, radio and television
stations in the immediate project area a news release that includes the
following information:
a) program name;
b) the program sponsors;
c) a statement of purpose;
d) the anticipated timeframe for the study;
e) the name and address of the local contact person; and
f) a statement inviting participation from the general public.
 



Section 367.520 Public Participation in the Selection of a Lake



Restoration or Protection Plan
 
Prior to selecting final restoration alternatives, the lake owner shall
hold a public meeting to solicit public comment in developing, evaluating
and selecting restoration practices. A public notice shall be published in
a newspaper of general circulation in the immediate project area 30 days in
advance of the meeting and shall include the following information:
a) the purpose, date, time and location of the public meeting;
b) a description of the proposed restoration alternatives in fact
sheet or summary form; and
c) the location, including address and telephone number, where
complete information may be obtained.
 
SUBPART F: REPORTING REQUIREMENTS
                                     
 



Section 367.610 Monthly Reports
 
All award recipients who are carrying out Phase I, Phase II and LQMP
projects shall submit monthly project status reports to the Agency. These
reports shall include a discussion of such matters as work progress,
project findings, and any difficulties encountered. Monthly reports shall
cover the period from the 25th day of one month to the 24th day of the next
month, and shall be due to the Agency on the last day of each month.
 



Section 367.620 Final Phase I Report
 
Phase I final reports meeting the requirements of Subpart J of this Part
shall be submitted to the Agency on the date specified on the financial
assistance agreement.
 



Section 367.630 Final Phase II and LQMP Reports
Lake owners with Phase II or LQMP projects shall carry out a limited lake
monitoring program for at least one year after all protection or
restoration practices have been implemented. This program, as specified
and agreed upon with the Agency in the final Phase I report, shall be
conducted to allow for an evaluation of pre- and post-implementation lake
conditions. Upon completion of the post-implementation monitoring program,
the lake owner shall prepare a final report that discusses project
implementation and results. The final report shall, at a minimum, include
the topics and be organized according to the following format, and shall be
submitted to the Agency on the date established in the financial assistance
agreement:
a) An Executive Summary section;
b) An Introduction section;
c) A Materials and Methods section, including the following:
1) A description of the implementation program, including both
watershed and in-lake treatments implemented;
2) A description of pre- and post-implementation water quality
sampling and analysis procedures, including:
A) physiochemical and limnological data collection;
B) chlorophyll and phytoplankton data collection; and
C) other applicable data collection;
3) A description of the methods used to calculate a hydrologic
budget;
4) A description of the methods used to calculate a nutrient
budget;
5) A description of the methods used to calculate a sediment
budget;
6) A description of data analysis procedures, including how data
were grouped into pre- and post-implementation periods and
how data were analyzed;
d) A Results and Discussion section, including:
1) An analysis of the watershed implementation program;
2) An analysis of the in-lake implementation program pertaining
to:
A) dissolved oxygen and temperature;
B) alkalinity, pH and conductivity;
C) Secchi transparency and suspended solids;
D) nutrients;
E) chlorophyll;
F) phytoplankton; and
G) other applicable parameters;
3) An analysis of pre- and post-implementation hydrologic
budgets;
4) An analysis of pre- and post-implementation nutrient budgets;
and
5) An analysis of pre- and post-implementation sediment budgets;
e) A Conclusions and Recommendations section;
f) A References section;
g) An Appendices section.
 
SUBPART G: ASSISTANCE AWARD CONDITIONS AND LIMITATIONS
                                     



Section 367.710 Financial Assistance Agreements
 
In order to receive an Illinois Clean Lakes Program assistance award, a
lake owner must enter into an intergovernmental financial assistance
agreement (FAA) with the Agency. The assistance agreement shall include,
at a minimum, the following elements:
a) The agreement period;
b) A project description and scope of work;
c) A project schedule;
d) An identification of allowable project costs and associated
cost-share rate;
e) Conditions for financial assistance; and
f) Signed certifications of the applicant's authority and involvement
in the project. (See Section 367.420(b) of this Part.)
 



Section 367.720 Phase I Project Implementation Requirement
 
In order to receive a Phase II or LQMP implementation project assistance
award, the lake owner must agree to apply, at a minimum, the restoration
practices and methods described and recommended in the approved Phase I
Report required under Section 367.1130.
 



Section 367.730 Agreement Period
 
a) Phase I Studies
Financial assistance agreements for Phase I studies shall have a
maximum term of 36 months. The lake owner may, however, apply to
the Agency in writing for a no-cost time extension of up to six
additional months.
b) Phase II Implementation
Financial assistance agreements for Phase II implementation
projects shall have a maximum term of 60 months. The lake owner
may, however, apply to the Agency in writing for a no-cost time
extension of up to 12 additional months.
c) LQMP Implementation
Financial assistance agreements for LQMP implementation shall have
a maximum term of 18 months. A lake owner may apply to the Agency
in writing for a no-cost time extension of up to six additional
months in cases where seasonal or other physical lake conditions
prevent completion of the project within an 18-month period.
 



Section 367.740 Appropriation Contingency
 
All assistance awards are contingent upon the availability of Illinois
General Assembly appropriations to conduct the Illinois Clean Lakes
Program.
 



Section 367.750 Project Changes
 
a) Prior approval by the Agency is required for project changes that
may:
1) increase the amount of assistance award funds needed to
complete the project;
2) alter the design or scope of the project; or
3) extend any contractual completion date for the project.
b) The assistance award recipient shall promptly notify the Agency,
in writing, of all proposed project changes. Failure by the award
recipient to give notice of proposed project changes or the
Agency's disapproval of a proposed project change may result in:
1) disallowance of costs incurred that are attributable to the
change; or
2) termination of the assistance award.
 



Section 367.760 Financial Assistance Award Termination
 
a) Termination by the Agency
The Agency may, by written notice and after consultation with the
recipient, terminate the financial assistance award in whole or in
part. The following circumstances may be cause for termination of
an award:
1) failure of the Illinois General Assembly or a funding source
to appropriate or otherwise make available sufficient funding
for an assistance agreement;
2) default by the award recipient;
3) failure of the recipient to comply with the terms and
conditions of the financial assistance agreement;
4) failure of the recipient to comply with the requirements of
Subpart I of this Part;
5) failure to obtain approval of the Agency prior to making
project changes;
6) changes in program requirements or priorities.
b) Effects of Termination
Upon termination of the assistance award, the recipient shall
refund to the State of Illinois Conservation 2000 Project Fund any
unexpended assistance award funds, except for funds required by
the recipient to pay for allowable costs for materials and
equipment furnished, or for services rendered under an enforceable
contract, prior to the effective date of the termination. The
provisions of the Illinois Grants Recovery Act [30 ILCS 705] shall
be applicable to the recovery of any award funds that the Agency
determines have been misspent or are being improperly held by the
award recipient.
c) Repayment of Assistance Award
Upon termination by the Agency of an assistance award for any of
the reasons set out in subsection (a)(3), (a)(4) or (a)(5) of this
Section, the Agency may require that the award recipient repay to
the State of Illinois Conservation 2000 Fund any financial
assistance funds it has already expended.
 



Section 367.770 Subcontracts
 
The lake owner may not use any subcontractors, outside associates or
consultants in connection with any services covered by a financial
assistance agreement unless specifically authorized by the Agency. When
subcontracts are authorized, the lake owner shall submit to the Agency an
executed copy of each agreement within seven days after signature.
 



Section 367.780 Drug Free Workplace
 
a) Every award recipient who has 25 or more employees at the time of
signing the financial assistance award or who is directly
responsible for specific performance under an assistance award of
$5,000 or more shall certify that it will provide a drug free
workplace by taking the following steps:
1) Publishing a statement:
A) notifying employees that the unlawful manufacture,
distribution, dispensation, possession, or use of a
controlled substance, including cannabis, is prohibited
in the award recipient's workplace;
B) specifying the actions that will be taken against
employees for violations of such prohibitions;
C) notifying the employee that, as a condition of
employment on such award project, the employee will:
i) abide by the terms of the statement; and
ii) notify the employer of any criminal drug statute
conviction for a violation occurring in the
workplace not later than five days after such
conviction.
2) Establishing a drug free awareness program to inform
employees about:
A) dangers of drug abuse in the workplace;
B) the award recipient's policy of maintaining a drug free
workplace;
C) any available drug counseling, rehabilitation, and
employee assistance programs; and
D) penalties that may be imposed upon employees for drug
violations.
3) Providing a copy of the statement required by subsection
(a)(1) of this Section to each employee engaged in the
performance of the assistance award and posting a copy of the
statement in a prominent place in the workplace.
4) Notifying the Agency within ten days after receiving a notice
of conviction under subsection (a)(1)(C)(ii) of this Section
from an employee or otherwise receiving actual notice of a
conviction.
5) Imposing a sanction on, or requiring satisfactory
participation in a drug abuse assistance or rehabilitation
program by any employee who is convicted of a violation of a
criminal drug statute, as required by Section 5 of the Drug
Free Workplace Act.
6) Assisting employees in selecting a course of action in the
event drug counseling, treatment and rehabilitation is
required and indicating that a trained referral team is in
place.
7) Making a good faith effort to continue to maintain a drug
free workplace through implementation of the Drug Free
Workplace Act. [30 ILCS 580/3]
b) In cases where the financial assistance award is more than $5,000
and the recipient is an individual, the recipient shall certify
that he or she will not engage in the unlawful manufacture,
distribution, dispensation, possession, or use of a controlled
substance in the performance of the Clean Lakes project. [30 ILCS
580/4]
 



Section 367.790 Final Inspection for Phase II and LQMP Projects
 
The award recipient shall notify the Agency in writing within 30 days after
the completion of Phase II implementation project activities. The Agency
will schedule a final inspection of the project within 60 days after the
receipt of the notice.
 
SUBPART H: ACCESS, AUDITING AND RECORDS
                                     
 



Section 367.810 Access
 
a) The Agency and its authorized representatives shall have access,
during normal working hours and at all other times when work is
being performed, to the area or premises where any portion of the
work for which the financial assistance award was provided is
being performed.
b) All contracts entered into by a financial award recipient in
connection with a Phase I, Phase II or LQMP project shall provide
that the Agency and its authorized representatives shall have
access to any work being performed by the subcontractor as well as
access to all pertinent books, documents, papers and records of
the subcontractor for the purpose of auditing, examination,
excerpting or transcribing.
c) Failure of the assistance award recipient or of a subcontractor to
provide the access required by this Section, after 10 days written
notice from the Agency, may be cause for termination of the
assistance agreement pursuant to Section 367.760 of this Part and
refund to the State of Illinois Conservation 2000 Project Fund of
any unexpended assistance funds.
 



Section 367.820 Audit and Records
 
a) The assistance award recipient shall maintain books, records,
documents, reports, and other evidentiary material and accounting
procedures and practices that are consistent with generally
accepted government accounting standards in accordance with the
American Institute of Public Accountants Professional Standards
(666 Fifth Avenue, New York, New York 10019; 1997) to properly
account for:
1) the receipt and disposition of all assistance received by the
award recipient for the project, including both State
assistance and any matching share or cost sharing; and
2) The costs charged to the project, including all direct and
indirect costs incurred for the performance of the project.
b) The items enumerated in subsection (a) shall constitute "records"
for the purposes of this Section 367.820.
c) The award recipient's records shall be subject to inspection and
audit by the Agency or its authorized representative at the times
specified in Section 367.810 of this Part (Access).
d) The award recipient shall preserve and make the records available
to the Agency or its authorized representative for a period of
seven years beyond the termination of the assistance award.
e) Failure of the assistance award recipient or a subcontractor to
make the records available as required by Section 367.810 of this
Part (Access) after 10 days written notice from the Agency may be
cause for termination of the assistance agreement and refund to
the State of Illinois Conservation 2000 Project Fund of any
unexpended assistance funds.
 
SUBPART I: PAYMENTS
                                     
 



Section 367.910 Determination of Allowable Project Costs
 
a) The award recipient shall be paid upon request, in accordance with
Section 367.930 of this Part, for all costs within the scope of
Phase I, Phase II or LQMP project development that the Agency
determines to be allowable in accordance with the criteria set out
in subsection (b) of this Section.
b) Allowable Project Costs
Project costs of the award recipient that are reasonable and
necessary are allowable costs. Necessary costs may include, but
are not limited to:
1) Lake and watershed information and data development and
compilation;
2) Monitoring activities (physical, chemical, and biological);
3) Project management and administration;
4) Development of reports and public information materials;
5) Equipment purchases;
6) Implementation of lake restoration alternatives recommended
in an approved Phase I report;
7) Implementation of watershed best management practices
recommended in an approved Phase I report that are critical
to the success of an implementation project.
c) Ineligible Costs
The following project costs are ineligible for reimbursement:
1) Any costs that are incurred prior to the start of or after
the end of the financial assistance agreement period;
2) Operation and maintenance of in-lake or watershed related
practices and equipment;
3) Installation of facilities or equipment that are eligible for
funding under the Water Pollution Loan Program authorized by
415 ILCS 5/19.1.
4) Activities related to the purchase or long-term leasing of
land solely to provide public access;
5) Activities regulated by State solid waste, toxic waste, or
hazardous waste related permits or regulations;
6) Activities funded by State or federal grants for wastewater
treatment facilities;
7) Activities related to building, utility, highway or road
construction;
8) Activities implemented for flood control purposes;
9) Activities that violate State, local, or federal laws,
ordinances or regulations.
 



Section 367.920 Requests for Payment
 
Requests for payment of expenditures incurred in connection with Phase I,
Phase II and LQMP projects shall be submitted to the Agency no more
frequently than monthly and shall include the following information:
a) Project name and location;
b) Period in which the costs were incurred;
c) Amount requested;
d) Itemized accounting reports;
e) Subcontractor billing statements;
f) Documentation of payments made by the award recipient to
subcontractors; and
g) Any other information necessary to document costs incurred and
paid.
 



Section 367.930 Reimbursement Rate
 
a) Phase I Projects
Eligible costs incurred in connection with Phase I projects shall
be paid by the Agency according to the maximum cost-share rate of
60%, as provided in Section 367.310 of this Part, or the
cost-share rate established in the financial assistance agreement.
b) Phase II and LQMP Projects
Eligible costs incurred in connection with Phase II or LQMP
projects shall be paid by the Agency according to the maximum cost
share rate of 50%, as provided in Section 367.320 of this Part, or
the cost-share rate established in the financial assistance
agreement.
 



Section 367.940 Contingency
 
The Agency may hold up to 10% of the total project costs prior to final
payment to ensure that all requirements of the project have been met.
 



Section 367.950 Withholding of Payments
 
The Agency may withhold payment to an assistance award recipient who is not
meeting the project schedule contained in the financial assistance
agreement.
 



Section 367.960 Final Payment
 
a) Phase I Projects
Final payment, including release of any funds held by the Agency
pursuant to Section 367.950 of this Part, will be made for Phase I
projects upon a determination by the Agency that the project has
been implemented according to the scope of work contained in the
approved financial assistance agreement.
b) Phase II and LQMP Projects
Final payment, including release of any funds held by the Agency
pursuant to Section 367.950 of this Part, will be made for Phase
II and LQMP projects after the Agency has conducted a final
inspection pursuant to Section 367.790 of this Part and has
determined that the project has been implemented according to the
final Phase I Diagnostic and Feasibility Study and the scope of
work contained in the approved financial assistance agreement.
 
SUBPART J: REQUIREMENTS FOR PHASE I DIAGNOSTIC AND FEASIBILITY STUDIES AND
ENVIRONMENTAL EVALUATIONS
                                     
 



Section 367.1010 General
 
Phase I study reports shall include the elements contained in this Subpart
J, in the order presented and under appropriate subheadings. The
information required by Section 367.1020 of this Part shall be collected in
accordance with the requirements of the "Protocol for the Conduct of Phase
I Diagnostic-Feasibility Studies and Environmental Evaluations," Appendix
E, Clean Lakes Program Guidance Manual, incorporated by reference in
Section 367.130 of this Part. So long as the adequacy of the technical
information and the integrity of the project are maintained, the
information required by Section 367.1120(j) of this Part may be modified to
conform to specific project requirements to reduce project costs. All
modifications must be approved by the Agency.
 



Section 367.1020 Phase I Diagnostic Study
 
The Phase I diagnostic study shall contain the following elements:
a) Identification of the lake to be restored or studied, including:
1) the name of the lake;
2) the location of the lake within the State;
3) the general hydrologic relationship of the lake to associated
upstream and downstream waters; and
4) the water quality standards applicable to the lake under 35
Ill. Adm. Code 302.
b) A geological description of the drainage basin including soil
types and soil loss to stream courses that are tributary to the
lake.
c) A description of the public access to the lake including the
amount and type of public transportation to the access points.
d) A description of the size and economic structure of the population
residing near the lake that would use the improved lake for
recreation and other purposes.
e) A summary of historical uses of the lake, including recreational
uses up to the present time, and a discussion of how these uses
may have changed because of water quality degradation.
f) An explanation, if a particular segment of the lake user
population is or will be more adversely impacted by lake
degradation.
g) A statement regarding the water use of the lake compared to other
lakes within a 50-mile (80-kilometer) radius.
h) An itemized inventory of all known point source pollution
discharges that affect or have affected lake water quality over
the past five years, and a description of any abatement actions
that have been completed or are in progress for these discharges,
including the time frame for any contemplated future corrective
action.
i) A description of the land uses in the lake watershed that lists
each land use classification as a percentage of the whole and
quantifies the nonpoint pollutant loading produced by each land
use category.
j) A discussion and analysis of historical baseline limnological data
and one year of current limnological data, including the
following:
1) the present trophic condition of the lake;
2) the surface area of the lake (acres and hectares);
3) maximum depth of the lake (feet and meters);
4) average lake depth (feet and meters);
5) hydraulic residence time;
6) the area of the watershed draining to the lake (acres and
hectares);
7) the physical, chemical, and biological quality of the lake
and important lake tributary waters;
8) bathymetric maps;
9) if dredging is expected to be included in the restoration
activities, an analysis of representative bottom sediment
core samples for phosphorus, nitrogen, heavy metals and other
chemicals appropriate to the State water quality standards
contained in 35 Ill. Adm. Code: Subtitle C, Chapter I and
for persistent synthetic organic chemicals where appropriate;
10) if dredging is expected to be included in the restoration
activities, the results of elutriate testing pursuant to 35
Ill. Adm. Code 186;
11) an assessment of the phosphorus, nitrogen, and sediment
inflows and outflows associated with the lake and a hydraulic
budget including groundwater flow;
12) vertical temperature and dissolved oxygen data for the lake
to determine if the hypolimnion becomes anaerobic and, if so,
for how long and over what extent of the bottom;
13) total and dissolved phosphorus, nitrite, nitrate, ammonia and
organic nitrogen concentrations for the lake;
14) measured chlorophyll values for the upper mixing zone;
15) representative alkalinities;
16) an assessment of the algal growth limiting nutrient, based on
total nitrogen to total phosphorus ratios;
17) a discussion of the extent of algal blooms and the
predominant algal genera;
18) algal biomass, determined through algal genera
identification, cell density counts (numbers of cells per
milliliter), and converted to cell volume based on factors
derived from direct measurements, and reported in biomass of
each major genus identified;
19) Secchi disc depth and suspended solids measurements;
20) an estimate (and map) of the portion of the shoreline and
bottom that is impacted by vascular plants (submersed,
floating, or immersed higher aquatic vegetation),
specifically the lake surface area between 0 and the 30 foot
(10 meter) depth contour or twice the Secchi disc
transparency depth, whichever is less, including
identification of the predominant species;
21) an estimate of the sediment load to the lake via shoreline
erosion, and a map depicting the location and severity of
shoreline erosion;
22) for lakes subject to significant public contact use or fished
for consumption, standard bacteriological analyses and fish
flesh analyses for organic and heavy metal contamination
shall be included unless otherwise specified in the financial
assistance agreement. All sample analyses shall be conducted
by a laboratory certified by the Agency as capable of
carrying out water quality analyses. Samples shall be sent
to an Agency laboratory for quality assurance and quality
control analysis as agreed to by the lake owner and the
Agency in the financial assistance agreement.
k) An identification and discussion of the lake's biological
resources, such as fish population, and a discussion of the major
known ecological relationships.
 



Section 367.1030 Phase I Feasibility Study
 
The Phase I Feasibility Study shall include the following elements:
a) An identification and discussion of the alternatives considered
for pollution control or lake restoration and an identification
and justification of the selected alternatives. This shall
include, for each alternative, including the selected alternative,
a discussion of the following issues:
1) expected water quality improvement;
2) technical feasibility;
3) estimated costs of each alternative;
4) for each alternative, detailed descriptions that:
A) specify exactly what activities would be undertaken;
B) show how and where these procedures would be
implemented;
C) illustrate the engineering specifications that would be
followed, including preliminary engineering drawings to
show in detail the construction aspects of the project;
and
D) present a quantitative analysis of the pollution control
effectiveness and the lake water quality improvement
that is anticipated.
b) A discussion of the particular benefits expected to result from
project implementation, including new public water uses that may
result from the enhanced water quality.
c) A lake monitoring program, including a water quality sampling
schedule, that meets the requirements of Section 367.630 of this
Part.
d) A proposed work schedule for completing the project, with
milestones and a proposed budget and payment schedule that are
related to the milestones.
e) A detailed description of how non-State funds will be obtained for
the proposed project.
f) A summary of public participation in developing and assessing the
proposed project that is in compliance with Section 367.520 of
this Part. The summary shall describe the matters brought before
the public, the public response, and the lake owner's response to
significant comments.
g) A description of the operation and maintenance plan that the lake
owners will follow, including the time frame over which this plan
will be operated, to ensure that the pollution controls
implemented during the project are continued after the project is
completed.
h) If applicable, copies of all permits or pending permit
applications (including the status of applications) necessary to
satisfy the requirements of Sections 401 and 404 of the Federal
Water Pollution Control Act (33 USC 1341, 1344).
i) If the approved project includes dredging activities or other
activities requiring permits, the lake owner must obtain from the
U.S. Army Corps of Engineers and the Agency the permits required
for the discharge of dredged or fill material. The lake owner
shall provide any additional information required to obtain these
permits. Copies of federal permit applications and any associated
correspondence must be provided to the Agency at the time they are
submitted to the U.S. Army Corps of Engineers. After reviewing the
permit applications, the Agency may provide, pursuant to Section
401 of the Federal Water Pollution Control Act, recommendations
for appropriate controls and treatment of supernatant derived from
dredged material disposal sites to ensure the maximum
effectiveness of lake restoration procedures.
 



Section 367.1040 Environmental Evaluation
 
As part of the Phase I study, award recipients shall submit to the Agency
an environmental evaluation that consists of full and complete answers to
the following questions. (Recipients are also encouraged to address other
considerations that they believe apply to their particular project.)
a) Will the proposed project displace any people?
b) Will the proposed project deface existing residences or
residential areas? What mitigating actions such as landscaping,
screening, or buffer zones have been considered? Are they
included?
c) Will the proposed project be likely to lead to a change in
established land use patterns, such as increased development
pressure near the lake? To what extent and how will this change be
controlled through land use planning, zoning, or through other
methods?
d) Will the proposed project adversely affect a significant amount of
prime agricultural land or agricultural operations on such land?
e) Will the proposed project result in a significant adverse effect
on park land, other public land, or lands of recognized scenic
value?
f) Has the State Historical Preservation Agency been contacted? Has
the award recipient received a response and, if so, what was the
nature of that response? Will the proposed project result in a
significant adverse effect on lands or structures of historic,
architectural, archaeological or cultural value?
g) Will the proposed project lead to a significant long-range
increase in energy demands?
h) Will the proposed project result in significant and long range or
short range adverse changes in ambient air quality or noise
levels?
i) If the proposed project involves the use of in-lake chemical
treatment, what long and short term adverse effects can be
expected from that treatment? How will the award recipient
mitigate these effects?
j) Is the proposed project located in a floodplain? If so, will the
project involve construction of structures in the floodplain?
What steps will be taken to reduce the possible effects of flood
damage to the project?
k) If the project involves physically modifying the lake shore or its
bed or its watershed, by dredging, for example, what steps will be
taken to minimize any immediate and long term adverse effects of
such activities? When dredging is employed, where will the
dredged material be deposited, what can be expected and what
measures will the recipient employ to minimize any significant
adverse impacts from its deposition?
l) Will the proposed project have a significant adverse effect on
fish and wildlife, or on wetlands or any other wildlife habitat,
especially those of endangered species? How significant is this
impact in relation to the local or regional critical habitat
needs? Have actions to mitigate habitat destruction been
incorporated into the project? Has the award recipient consulted
with the Illinois Department of Natural Resources and with the
U.S. Fish and Wildlife Service? What were their replies?
m) Describe any feasible alternatives to the proposed project in
terms of environmental impacts, commitment of resources, public
interest and costs and discuss why they were not proposed.
n) Describe any other measures not discussed previously that are
necessary to mitigate adverse environmental impacts that may
result from the implementation of the proposed project.
 



Section 367.1150 Approval of Phase I Recommended Alternatives
 
Prior to final selection of the restoration or protection alternatives and
completion of the final Phase I report, the award recipient shall submit
to the Agency for approval an interim report that consists of the
information set out in Section 367.1030(a) of this Part, along with a
summary of public participation pursuant to Section 367.520(b) of this
Part.
 

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