TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE C: WATER POLLUTION

CHAPTER II: ENVIRONMENTAL PROTECTION AGENCY

PART 362

PROCEDURES FOR ADMINISTRATION OF THE CONSTRUCTION

MANAGEMENT ASSISTANCE PROGRAM FOR GRANTS UNDER THE

CLEAN WATER ACT

SUBPART A: GENERAL

Section

362.101 Administration

362.102 Definitions

362.103 Project Priority List

362.104 Grant Assistance Availability

362.105 Initiation of Work

SUBPART B: PROCEDURES FOR ISSUANCE OF

STEP 2 + 3 OR STEP 3 GRANTS

Section

362.201 Review and Approval of Step 2 + 3 Grants

362.202 Review and Approval of Step 3 Grants

SUBPART C: PROCEDURES FOLLOWING THE ADVERTISEMENT

FOR BUILDING BIDS

Section

362.301 Bid Proposal and Proposed and Executed Contract

362.302 Addenda and Change Orders

362.303 Operation and Maintenance Manuals

362.304 Requests for Payment

AUTHORITY: Implementing and authorized by Title II federal Clean Water

Act, (33 U.S.C. 1285(g)), and Section 4 of the Environmental Protection

Act (Ill. Rev. Stat. 1983, ch. 111 1/2, par. 1004).

SOURCE: Adopted and codified at 8 Ill. Reg. 6156, effective July 1, 1984.

SUBPART A: GENERAL

a) Title II of the federal Clean Water Act (33 U.S.C. 1281 et seq.),

authorizes the issuance of grants for the construction of sewage

treatment works by municipalities and other units of local

government. In addition, Section 205(g), 33 U.S.C. 1285(g)

authorizes the delegation to States of the responsibility to

manage the construction assistance program set forth in Title II.

b) The construction management assistance program is administered in

Illinois on a joint cooperative basis by the Illinois

Environmental Protection Agency ("Agency") and the United States

Environmental Protection Agency ("USEPA") in accordance with

state and federal laws and regulations, these procedures,

delegation agreements executed by the Agency and USEPA, and the

Agency's Annual Water Pollution Control Program Plan as approved

by the USEPA in accordance with Section 106 of the federal Clean

Water Act (33 U.S.C. 1256).

Unless specified otherwise all terms shall have the meanings set forth in

the federal Clean Water Act (33 U.S.C. 1251 et seq.) and 40 CFR 35.

Federal regulations referenced in this Part will be applicable as of the

effective date of this Part.

The Agency maintains a list setting forth the priority for receipt of

federal funding for each project applicant. Project priorities are

established in accordance with Agency rules entitled "Procedures and

Requirements for Determining Construction Grant Priorities for Municipal

Sewage Treatment Works Needs" (35 Ill. Adm. Code 364). The Project

Priorities list may be obtained from the Agency upon request.

a) For projects on the Project Priority List, the following grant

assistance is available, subject to the availability of funding

under federal appropriation:

1) Step 1 (facilities planning). No grant assistance is

available for Step 1, except for amendments to existing Step

1 grants. If a Step 3 or Step 2 + 3 grant is later offered,

an allowance for facility planning may be provided by the

USEPA at the prevailing federal share.

2) Step 2 (design engineering and specifications). No grant

assistance is available for Step 2, except for amendments to

existing Step 2 grants. If a Step 3 grant is later offered,

an allowance for design engineering and specifications may

be provided by the USEPA at the prevailing federal share.

If a Step 2 + 3 grant is offered, Step 2 will consist of an

allowance for design engineering and specifications at the

prevailing federal share.

3) Step 3 (building). Step 3 grants at the prevailing federal

share are available in accordance with the approved Water

Pollution Control Program Plan to grant applicants with a

Grant Priority Index of 94 or higher as established under 35

Ill. Adm. Code 364. Funding for Step 3 for projects

utilizing innovative or alternative wastewater systems with

a Grant Priority Index of less than 94 is contingent upon

the availability of funds for alternative and innovative

projects. Where no Step 1 and Step 2 grants, or Step 1

grant and advance of allowance for Step 2, have been

previously awarded, the Step 3 grant will include the federal

share of the allowance for both facilities planning and

design engineering and specifications. Where a Step 1 grant

has been previously awarded, and no Step 2 grant or advance

of allowance for Step 2 has been previously awarded, the

Step 3 grant will include the federal share of the allowance

for design engineering and specifications only. Step 3

grants will include the federal share of the total estimated

eligible Step 3 costs.

4) Step 2 + 3 (design engineering and specifications and

building). Step 2 + 3 grants at the prevailing federal

share are available in accordance with the approved Water

Pollution Control Program Plan to grant applicants with a

Grant Priority Index of 94 or higher as established under 35

Ill. Adm. Code 364, and which have a population of 25,000 or

less, a total estimated Step 3 building cost of $8 million or

less, and a project that is not phased or segmented. Step 2

+ 3 funding for projects using alternative or innovative

wastewater systems which qualify for a Step 2 + 3 grant, and

with a Grant Priority Index of less than 94, is contingent

upon the availability of funds for alternative and innovative

projects. Where no Step 1 grant has been previously awarded,

the Step 2 + 3 grant will include the federal share of the

allowance for facilities planning and design. Where a Step 1

grant has been previously awarded, the Step 2 + 3 grant will

include the federal share of the allowance for design

engineering and specifications only. The Step 2 + 3 grant

will include the federal share of the total estimated

eligible Step 3 costs.

5) Advance of allowance

A) Advance of the federal share of an allowance is

available to a community with a population of 25,000 or

less and which is eligible for the advance under 40 CFR

35, Subpart I. The advance shall not exceed the

federal share of the allowance for such costs received.

B) Where an advance of allowance has been awarded to a

grantee that subsequently refuses to accept a Step 2 + 3

or Step 3 grant, the grantee shall repay the advance.

Where a Step 2 + 3 or Step 3 grant is awarded to a

grant recipient that has received an advance, the

federal share of the allowance will be reduced by the

amount of the advance.

b) The federal share for total eligible Step 3 costs, the allowance

for both Step 1 and Step 2, the allowance for Step 2 only, and

the advance of allowance, is as follows:

1) 75 percent for grant assistance awarded before October 1,

1984.

2) 55 percent for grant assistance awarded after September 30,

1984, except that grant assistance shall be available at 75

percent for sequential phases or segments of an eligible

project under 40 CFR 35, Subpart I where such project is

described in the facilities plan, and the Step 3 grant for

the initial phase or segment was awarded prior to October 1,

1984.

3) 85 percent for grant assistance awarded before October 1,

1984 for projects utilizing innovative or alternative

wastewater conveyance and treatment systems. After

September 30, 1984, grant assistance for such projects is

available at 75 percent, or 85 percent if the project is a

sequential phase or segment of an eligible project under 40

CFR 35, Subpart I.

Except as provided under 40 CFR 35, Subpart I, the applicant must not

initiate Step 3 building prior to issuance of a Step 2 + 3 or Step 3 grant

agreement.

SUBPART B: PROCEDURES FOR ISSUANCE OF

STEP 2 + 3 OR STEP 3 GRANTS

a) Each application for a Step 2 + 3 grant shall include a

facilities plan. The Agency shall review the application, the

facilities plan, and other information to determine if it is

complete and approvable under 40 CFR 35, Subpart I.

b) If the facilities plan and supporting application materials are

complete and approvable, the Agency shall certify the project to

the USEPA for issuance of a Step 2 + 3 grant in accordance with

the availability of federal funding if necessary to obligate the

reserve set aside for projects utilizing innovative or

alternative wastewater conveyance and treatment systems.

c) If the facilities plan and supporting application materials are

not complete and approvable, the Agency shall issue a letter of

review to the applicant identifying the deficiencies in the

application which must be corrected prior to certification of the

Step 2 + 3 grant. Subject to federal appropriation, the Agency

will certify a Step 2 + 3 project where a facility plan is

incomplete if the requirements of 40 CFR 35, Subpart I pertaining

to facility planning exceptions are met.

d) Issuance of a Step 2 + 3 grant shall constitute approval of a

facility plan (except where issued under a facility planning

exception) and authorization to initiate the preparation of

design engineering and specifications under the allowance

provision.

e) Prior to authorization to advertise for building bids under Step

3 of the Step 2 + 3 grant, the applicant shall submit to the

Agency application information required for issuance of Step 3

grants, together with a user charge system, and sewer use

ordinance. The Agency shall authorize the advertising for

building bids upon a determination that the submitted information

meets the requirements of 40 CFR 35, Subpart I.

a) Each application for a Step 3 grant shall include the information

required under 40 CFR 35, Subpart I, together with a sewer use

ordinance and user charge system that meet the requirements of 40

CFR 35, Subpart I. The Agency shall review the application to

determine if it is complete and approvable.

b) If the application materials are complete and approvable the

Agency shall certify the project to the USEPA for issuance of a

Step 3 grant in accordance with the availability of federal

funding.

c) If the application materials are not complete and approvable, the

Agency shall issue a letter of review to the applicant,

identifying the deficiencies in the application which must be

corrected prior to certification of the Step 3 grant.

d) Subject to federal appropriation, the Agency will certify a Step

3 project where a facility plan is incomplete if the requirements

of 40 CFR 35, Subpart I, pertaining to facility planning

exceptions and segmentation of projects are met.

e) Issuance of a Step 3 grant shall constitute approval of a

facility plan (except where issued under a facility planning

exception), final design, and authorization to advertise for

building bids.

SUBPART C: PROCEDURES FOLLOWING THE ADVERTISEMENT

FOR BUILDING BIDS

a) After advertisement for and receipt of building bids, the

applicant shall submit to the Agency for review those documents

necessary to determine compliance with 40 CFR 33 including: the

bid tabulation, bid analyses, the bid proposal, and the proposed

contract and any request for amendment to the Step 3 grant or

Step 3 portion of the Step 2 + 3 grant. If a grant amendment is

necessary and approvable in accordance with 40 CFR 35 and this

Part, the Agency shall issue a certification of the grant

amendment in a transmittal of the request to the USEPA. Final

approval by the Agency or the USEPA of the bid proposal and

proposed contract shall be authorization by the Agency to the

applicant to award the contract to the lowest responsible,

responsive bidder.

b) The executed contract between the grantee and contractor shall be

submitted to the Agency within 10 days after execution.

a) The grantee shall submit addenda and change orders to the Agency

for review and approval of any project changes.

b) The Agency will review all addenda and change orders to determine

whether or not there is an alteration of the design, location,

size, capacity, quality or equipment, and to determine whether or

not a supplemental permit to construct and/or operate is

necessary.

c) The Agency will not approve costs of addenda or change orders

unless such costs are costs for work which is within the approved

scope of work for which the grant was offered and unless the

requirements of Section 361.302(d) are satisfied.

1) The Agency will approve change orders if the cumulative

worth of the change orders is less than 3% of the approved

bid amount.

2) Notwithstanding Section 362.302(d)(1), the Agency will

approve change orders whose cumulative worth is greater than

3% but less than or equal to 5% of the approved bid amount,

for work which is consistent with the scope of the grant

project, but could not have been foreseen at the time of

contract approval despite the exercise of due diligence by

the grantee.

3) The Agency will not approve change orders whose cumulative

worth is greater than five percent of the approved bill

amount.

The final plan of operation and the operation and maintenance manual shall

be submitted to the Agency for review and approval in accordance with

Agency rules entitled "Requirements for Plans of Operation and Operation

and Maintenance Manuals." (35 Ill. Adm. Code 371)

a) Requests for partial payment shall be sent directly to the

Agency.

b) Requests for final payment shall be sent directly to the Agency.

The Agency issues a payment in accordance with 40 CFR 30 which

may be up to, but not including, that percentum of the grant

which is equal to that percent of the contract price which the

applicant withholds from the contractor, pending final inspection

and final audit.

1) The Agency shall conduct an on-site inspection to determine

whether or not final payment is approvable. The inspection

shall be made within 60 days of notification by the

applicant that the building of the project is complete. The

Agency shall not approve final payment unless verification is

received that:

A) The project was built in accordance with permitted

plans and specifications.

B) For projects to improve at a sewage treatment plant,

the hydraulic and organic loads to the plant are less

than plant capacity.

C) For projects to improve a sewage treatment plant, the

removal efficiencies are within the design criteria.

D) Operation of the facility is under the direct and

active supervision of operators properly certified by

the Agency under 35 Ill. Adm. Code 380.

2) The Agency shall either approve the release of final payment

or issue a letter to the applicant identifying any

deficiencies in the building and/or operation of the

completed project.

3) Final approval of the request for final payment is issued by

the Agency, following the completion of the final inspection

by the Agency.