That the applicant has made satisfactory provision for assuring proper and efficient operation and maintenance of the treatment works, including the employment of trained management and operations personnel.

§ 35.925-11 User charge system.

That, prior to award of any grant after March 1, 1973, for a project which includes the building and erection of a treatment works (Step 3) the applicant (a) has adopted or will adopt a system of charges to assure that each recipient of waste treatment service will pay its proportionate share of the costs of operation and maintenance (including replacement); (b) has received firm written commitments satisfactory to the Regional Administrator for the payment to such applicant by the industrial users for their proportionate share of the Federal share of capital costs of the project allocable to the treatment of such industrial wastes to the extent attributable to the Federal share of the cost of construction; and (c) has legal, institutional, managerial, and financial capability to insure adequate construction, operation and maintenance of treatment works throughout the applicant's jurisdiction. Grants awarded prior March 2, 1973, are subject to § 35.835-5 requirements in lieu of the above.

to

§ 35.925-12 Sewage collection systems. That, if the project is for, or includes, sewage collection system work, such work is for replacement or major rehabilitation of an existing sewer system and is necessary to the total integrity and performance of the waste treatment works servicing such community, or is for a new sewer system in a community in existence on October 18, 1972, with sufficient existing or planned capacity to adequately treat such collected sewage.

That, for grants made from fiscal year 1975 or later funds, for the erection, building, acquisition, alteration, remodeling, improvement, or extension of treatment works, the applicant (a) has studied and evaluated alternative waste management techniques to insure that the proposed works will provide for the application of the best practicable waste treatment technology over the life of the works; and (b) has, as appropriate, taken into account and allowed to the extent practicable for the application of technology, at a later date, which will provide for the reclaiming or recycling of water or otherwise eliminate the discharge of pollutants.

§ 35.927

Sewer system evaluation.

Applicants for grants awarded after July 1, 1973, must demonstrate to the satisfaction of the Regional Administrator that each sewer system discharging into such treatment works is not subject to excessive infiltration/inflow, through an infiltration/inflow analysis and where appropriate and approved by the Regional Administrator, a sewer system evaluation survey.

(a) Infiltration/inflow analysis. Each applicant for a grant must show that it has performed or will perform, in conjunction with preliminary plans and studies (Step 1), and analysis demonstrating the existence or nonexistence of excessive infiltration/inflow in each sewer system tributary to the treatment works. The analysis shall identify the presence, quantity, and type of infiltration/inflow conditions which exist in the sewer systems. Information to be obtained and evaluated in the analysis shall include but not necessarily be limited to the following:

(1) Flow data for all flows in the sewer system including overflows and bypassed flows.

(2) Location, frequency, and cause of overflow conditions in the collection/ treatment system caused by infiltration/ inflow.

(3) Relationships of existing population and industrial contribution to flows in the sewer system.

(4) Geographical and geological conditions which may affect the present and future quantities or correction costs of the infiltration/inflow.

(5) A general discussion of age, length, type, materials of construction, and known physical condition of the sewer system.

For determination of possible excessive infiltration/inflow in the analysis, preliminary estimates shall be developed of the relative costs (for the design life of the treatment works), both for correcting the infiltration/inflow conditions, and increasing the treatment works capacity to provide the required degree of waste water treatment for the quantities of infiltration/inflow.

(b) Sewer system evaluation survey. If the infiltration/inflow analysis demonstrates that the sewer system may be subject to excessive infiltration/inflow, the analysis and a detailed plan for a systematic sewer system evaluation survey, which elucidates the tasks to be performed and the estimated costs, shall be submitted to the Regional Administrator.

(1) Upon approval of the survey proposal by the Regional Administrator, the grantee shall conduct the sewer system evaluation survey, which shall be a systematic examination of the sewer systems to determine the location, flow rate and cost of correction for each definable element of the total infiltration/inflow problem. The sewer system evaluation survey shall normally be completed prior to establishment of facility design data for the engineering report. The evaluation survey shall be conducted in accordance with such guidelines as the Administrator shall publish from time to time.

(2) The sewer system evaluation survey report shall state the specific location, condition, estimate of rate of flow and cost of rehabilitation for each defined element of infiltration/inflow into the sewer system. The report shall summarize the quantities of defined infiltration/inflow and propose a program of rehabilitation to correct the excessive infiltration/inflow. The rehabilitation program for the sewer system shall be accomplished on a selective cost-effective basis for each defined element of infiltration/inflow.

(3) The sewer system evaluation survey report and rehabilitation program for the sewer system shall be submitted to the Regional Administrator for approval prior to initiation of construction for Step 3.

(c) Sewer use ordinance. Each applicant for a treatment works grant shall demonstrate to the satisfaction of the Regional Administrator that a sewer use ordinance or other legally binding requirement shall be enacted and enforced in each jurisdiction served by the treatment works before the completion of construction. The ordinance shall prohibit any new connections from inflow sources into the sanitary sewer portions of the sewer system and shall require that new sewers and connections from waste water sources to the sewer system are designed and constructed in accordance with such guidelines as the Administrator may publish from time to time.

(d) Force account and survey equipment costs. Reasonable force account and equipment purchases or rental costs for all or part of a sewer system evaluation survey conducted by an applicant in accordance with § 35.927(b) will be allowable costs if the Regional Administrator has given prior approval for the use of such forces and equipment.

(1) The applicant must demonstrate to the satisfaction of the Regional Administrator the necessary technical competence required to conduct all or part of the evaluation survey. The applicant must also demonstrate that the use of force account and purchased or rented survey equipment will be the most economical method of conducting the evaluation survey.

§ 35.928 User charge system. [Reserved]

§ 35.930 Grant award.

Approval by the Regional Administrator of an application shall constitute a grant award for the project, and shall constitute a contractual obligation of the United States for the payment of the Federal share of the allowable project costs, as determined by the Regional Administrator, subject to execution of a grant agreement in accordance with $ 30.305-2.

§ 35.930-1 Types of grants.

(a) The Regional Administrator may award a grant for the following types of projects pursuant to § 35.925:

(1) Preliminary plans and studies (Step 1): Provided, That he determines that the applicant has submitted the items required pursuant to § 35.920-3 (a) and the State agency has determined that the applicant is unable to complete

the necessary preliminary plans and studies without Federal assistance;

(2) Preparation of construction drawings and specifications (Step 2): Provided, That he determines that the applicant has satisfactorily completed appropriate preliminary plans and studies and has submitted the items required pursuant to § 35.920–3 (b);

(3) Building and erection of a treatment works (Step 3): Provided, That he determines that the applicant has satisfactorily completed appropriate preliminary plans and studies and has submitted the items required pursuant to § 35.920-3 (c); or

(4) A combination of design (Step 2) and construction (Step 3) for a treatment works in the case of grants awarded after March 1, 1973:

(i) Where the Regional Administrator determines that compelling water quality enforcement considerations or serious public health problems warrant award of such a grant to assure expeditious construction of such treatment works, or

(ii) Where the Regional Administrator determines that award of such a grant will minimize administrative requirements in the case of projects not requiring a substantial amount of Federal assistance:

Provided, That the Regional Administrator determines that the applicant has satisfactorily completed appropriate preliminary plans and studies and has submitted the items required pursuant to § 35.920-3(b): And further provided, That any such grant award may be annulled unless detailed construction drawings and specifications are submitted to the Regional Administrator and approved prior to initiation of construction for the building and erection of the Project (Step 3).

(5) Design/construction of treatment works (Steps 2 and 3), Provided, That he determines that the applicant has satisfactorily completed appropriate preliminary plans and studies and has submitted the items required pursuant to § 35.920-3(d): And further provided, That any such grant award is subject to submission of detailed construction drawings and specifications to the Regional Administrator prior to initiation of and during construction.

[38 FR 5329, Feb. 28, 1973; 38 FR 6390, Mar. 9, 1973; 38 FR 9666, Apr. 19, 1973]

§ 35.930-2 Grant amount.

The amount of a grant shall be set forth in the grant agreement and may not exceed the amount of funds available from the State allotments and reallotments pursuant to § 35.910 and may not exceed the amount certified by the State agency in accordance with § 35.915. Grant payments will be limited to the Federal share of allowable project costs incurred within the grant amount or any increases in such amount effected through grant amendments in accordance with § 35.955, pursuant to the negotiated payment schedule included in this grant agreement.

§ 35.930-3 Grant term.

The grant agreement shall establish the period within which the project must be completed, in accordance with § 30.305-1 of this chapter, subject to excusable delay.

§ 35.930-4 Project scope.

The grant agreement must define the scope of the project for which Federal assistance is awarded under the grant. The grant agreement shall define the project as the construction of an identified complete treatment works. § 35.930-5 Grant percentage.

The amount of any grant awarded under this subpart shall be 75 percent of the allowable cost of the project. § 35.935 Grant conditions.

In addition to the EPA General Grant Conditions (Appendix A to Subchapter B of this title and Part 30, Subpart C of this chapter), each grant for treatment works involving building and erection (Step 3) shall be subject to the following conditions:

§ 35.935-1 Nonrestrictive specifications.

No specification for bids or statement of work in connection with such works shall be written in such a manner as to contain proprietary, exclusionary, or discriminatory requirements other than those based upon performance, unless such requirements are necessary to test or demonstrate a specific thing or to provide for necessary interchangeability of parts and equipment, or at least two brand names or trade names of comparable quality or utility are listed and are followed by the words "or equal."

$35.935-2 Procurement.

Construction work will be performed by the fixed-price (lump sum) or fixedrate (unit price) method, or a combination of these two methods, unless the Regional Administrator gives advance written approval to use some other method of contracting. The cost-plus-a percentage of cost method of contracting shall not be used. Adequate methods of advertising for and obtaining competitive sealed bids will be employed prior to award of the construction contract. The award of the contract will be made to the responsible bidder submitting the lowest responsive bid, which shall be determined without regard to State or local law whereby preference is given on factors other than the specification the requirements and amount of bid. The grantee must promptly transmit to the Regional Administrator copies of bid protests, decisions on such protests, and related correspondence. The Regional Administrator will cause appropriate review of grantee procurement methods to be made.

35.935-3 Bonding and insurance.

On contracts for the building and erection of treatment works (Step 3) exceeding $100,000, each bidder must furnish a bid guarantee equivalent to 5 percent of the bid price. In addition, the contractor awarded either a design/construct contract or a construction contract for Step 3 must furnish performance and pay ment bonds, each of which shall be in an amount not less than 100 percent of the contract price and shall remain in effect for 1 year beyond the date of the final inspection and acceptance of the treatment works. Construction contracts less than $100,000 shall be subject to State and local requirements relating to bid guarantees, performance bonds, and payment bonds. In all cases, the contractor must maintain adequate fire and extended coverage, where appropriate, workmen's compensation, public liability and property damage, and “all-risk" builders risk insurance (including blasting, where appropriate) during the construction phase of the contract.

$35.935-4 State and local laws.

The construction of the project, including the letting of contracts in connection therewith, shall conform to the applicable requirements of State, terri

torial, and local laws and ordinances to the extent that such requirements do not conflict with Federal laws and this Subchapter.

§ 35.935-5 Davis-Bacon and related

statutes.

The grantee must consult with the Regional Administrator prior to issuance of invitation for bids concerning compliance with Davis-Bacon and related statutes required pursuant to § 30.403 (a), (b), and (c) of this chapter.

§ 35.935-6 Equal employment opportunity.

General, contracts involving Step 3, of $10,000 and above, are subject to equal employment opportunity requirements under Executive Order 11246, including rules, regulations and orders issued thereunder. The grantee must consult with the Regional Administrator concerning equal employment opportunity requirements prior to issuance of invitation for bids where the cost of construction work is estimated to be more than $1,000,000, or where required by the grant agreement.

[38 FR 5392, Feb. 28, 1973; 38 FR 6390, Mar. 9, 1973]

in accordance with the grant agreement and plans and specifications approved by the Regional Administrator.

§ 35.935-10 Copies of contract docu

ments.

In addition to the notification of project changes pursuant to § 30.900-1 of this chapter, a copy of any construction contract or modification thereof (including subcontracts) and of revisions to plans and specifications must be promptly submitted to the Regional Administrator. § 35.935-11 Project changes.

In addition to the notification of project changes required pursuant to § 30.900-1 of this chapter, prior approval by the Regional Administrator and the State agency is required for project changes which may (a) substantially alter the design and scope of the project, (b) alter the type of treatment to be provided, (c) substantially alter the location, size, capacity, or quality of any major item of equipment; or (d) increase the amount of Federal funds needed to complete the project: Provided, That prior EPA approval is not required for changes to correct minor errors, minor changes, or emergency changes. No approval of a project change pursuant to § 30.900 of this chapter or this section shall commit or obligate the United States to any increase in the amount of the grant or payments thereunder unless an approved request has been made. The preceding sentence shall not preclude submission or consideration of a request for a grant amendment pursuant to § 30.901 of this chapter.

§ 35.935-12 Operation and mainte

nance.

The grantee agrees that the treatment works will be maintained and operated in accordance with such requirements as the Administrator may publish from time to time and in accordance with appropriate methods, techniques, and practices for economic, efficient, effective maintenance and operation of such treatment works consistent with the design of such works, including, but not limited to, (a) an operation and maintenance manual for each facility, (b) an emergency operating and response program, (c) properly trained management, operations and maintenance personnel, (d) adequate budget for operation and maintenance, (e) operational reports, and (f) provisions for laboratory test

ing adequate to determine influent and effluent characteristics and removal efficiencies.

§ 35.940 Determination of allowable

costs.

The grantee will be reimbursed, upon request, in accordance with § 35.945, for the Federal share of all necessary costs within the scope of the approved project and determined to be allowable in accordance with § 30.701 of this chapter, this subpart, and the grant agreement. § 35.940-1 Allowable project costs.

Allocable project costs of the grantee which are reasonable and necessary are allowable. Necessary costs may include, but are not limited to:

(a) Costs of salaries, benefits, and expendable material incurred by the grantee.

(b) Costs under construction contracts.

(c) Professional and consultant services.

(d) Facility planning directly related to the treatment works.

(e) Sewer system evaluation (§ 35.927). (f) Project feasibility and engineering reports (§ 35.920-3(b) (3) and (4)).

(g) Relocation and land acquisition costs required pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. 4621 et seq., 4651 et seq., and regulations issued thereunder, Part 4 of this chapter.

(h) Environmental assessment (§ 35.920-3 (b) (9)), including costs of public notices and hearings.

(i) Preparation of construction drawings, specifications, estimates, and construction contract documents.

(j) Landscaping.

(k) Supervision of construction work. (1) Removal and relocation or replacement of utilities, for which the grantee is legally obligated.

(m) Materials acquired, consumed, or expended specifically for the project.

(n) A reasonable inventory of laboratory chemicals and supplies necessary to initiate plant operations.

(0) Development and preparation of an operation and maintenance manual. (p) Project identification signs (§ 30.604-4 of this chapter). § 35.940-2 Unallowable costs.

Costs which are not necessary for the construction of a treatment works proj