PURPOSE: This rule sets forth the requirements and process of application for a state construction grant for construction of wastewater treatment works and the terms and conditions for receipt of a grant. This rule also clarifies the requirements, the types of facilities eligible for grant funds and the grant amount available for eligible grantees.

1. (1) Program funding may be up to seventy percent (70%) of the difference between the total amount appropriated by the state legislature from the water pollution control fund and the amount needed for the state match program under 10 CSR 20-4.020. Small rural communities shall receive at least twenty percent (20%) of these funds as required by section 644.117, RSMo. Funds left unobligated within four (4) months of the end of the fiscal year may be reallocated to other programs.
2. (2) Grant amount is limited to fifty-five percent (55%) of the total eligible construction costs as listed under section (5) of this rule, including engineering expenses during construction. Total grant amount is further limited to five hundred thousand dollars ($500,000) per year per grantee for applicants of less than five hundred thousand (500,000) service area population. For eligible applicants of greater than five hundred thousand (500,000) but less than one (1) million service area population, grant amount is limited to fifteen percent (15%) of the total amount allocated for this program or five hundred thousand dollars ($500,000) whichever is greater. For eligible applicants of greater than one (1) million, grant amount is limited to thirty percent (30%) of the total amount allocated for this program or five hundred thousand dollars ($500,000) whichever is greater. These limits will not apply to any unobligated funds left after March 1.
3. (3) Eligible applicants must be a first-class county, public sewer district, municipality or combination of the same.

4. (4) Grant Requirements.

   1. (A) An engineering report compiled by a professional engineer registered in Missouri shall be submitted to the department. The report shall contain, at a minimum:

      1. 1. For new wastewater treatment facili-

ties and single family resident wastewater treatment facilities the report must meet the requirements of 10 CSR 20-8.020;

1. 2. For rehabilitation, the report must

contain a description of the problem, a cost analysis and a recommendation; and

1. 3. For new interceptors and pump sta-

tions, the report must contain a description of the problem, effect on the existing wastewater treatment facility relevant to meeting existing National Pollutant Discharge Elimination System (NPDES) permit requirements and water quality standards, cost analysis and a recommendation.

1. (B) Detailed plans and specifications based upon the approved engineering report must be submitted and approved by the department. The plans and specifications must comply with 10 CSR 20-8.020 and 10 CSR 20- 8.110–10 CSR 20-8.220.
2. (C) Provisions must be made for adequate inspection during construction by the grantee.
3. (D) An application form must be submitted for consideration by the department. The applicant will receive a letter of intent from the department based on this initial application. If the applicant wishes to pursue funding based on the letter of intent, an application kit must be submitted containing an assurance that the grantee has the legal, institutional, managerial and financial capability to insure adequate building, operation, maintenance and replacement of the treatment works throughout the applicant’s jurisdiction; a resolution designating an authorized representative; a plan of operation as required by the department; a proposed construction phase engineering agreement; an assurance with respect to acquisition of real property including easements; a proposed user charge system; and a proposed sewer use ordinance.
4. (E) A construction permit and an operating permit in accordance with 10 CSR 20- 6.010–10 CSR 20-6.060 must be obtained.
5. (F) Acceptance of a grant constitutes agreement that cost overrun shall be borne by applicant.
6. (G) No grant will be awarded to an applicant who is in noncompliance with the monitoring or reporting requirements of a valid NPDES permit or who is not properly operating or maintaining an existing system.

1. (5) All facilities listed in this section are eligible only if associated problems are not caused by inadequate operation and maintenance practices. Facilities to be funded are limited to publicly owned and operated—

   1. (A) New interceptors;
   2. (B) New major pump stations;
   3. (C) New wastewater treatment facilities;
   4. (D) Rehabilitation or upgrading of treatment plants;
   5. (E) Rehabilitation or replacement of existing major pump stations, whichever is most cost effective; and
   6. (F) Replacement of force mains and interceptors causing regular dry weather bypassing or widespread sewer backups.
2. (6) Priority will be based upon the current priority system for the Environmental Protection Agency wastewater treatment construction grants program as adopted by the commission. However, if a high priority project has not submitted all documents required for a state grant by January 1 of that fiscal year, or has not received departmental approval of all documents required for a state grant by February 15 of that fiscal year, it may be removed in favor of projects on a contingency list that are ready to proceed.
3. (7) Applications for funding will be received until November 15, prior to the fiscal year for which funding is sought. Applicants unsuccessfully requesting funds during a given fiscal year shall be considered for funding the next fiscal year and need not reapply. If an applicant has not received funds within two
4. (2) years, the applicant must reapply in order to be considered in future fiscal years.

5. (8) Approval and Payment of Grants.

   1. (A) The applicant shall be notified by the department when the grant is awarded.

   2. (B) Payment under the grant shall be made at the request of the applicant. Payments will be made in four (4) installments as follows:

      1. 1. A first installment when not less than

twenty-five percent (25%) of the construction of the project is completed;

1. 2. A second installment when not less

than fifty percent (50%) of the construction of the project is completed and the plan of operation for the project, if required under subsection (4)(D) of this rule, has been submitted and approved and an operation and maintenance manual, as required by the department, is submitted;

1. 3. A third installment when not less than

ninety percent (90%) of the construction of the project is completed and the operation and maintenance manual, if required under paragraph (9)(B)2., has been approved; and

1. 4. A fourth installment when the project

is constructed and approved by the department.

1. (C) Payments shall at no time exceed fiftyfive percent (55%) of the eligible project cost incurred at the time payment is made.
2. (D) Any cost of work completed after the final inspection by the department shall not be considered as part of the eligible project cost.
3. (E) An audit to verify expenditure of grant funds shall be made after the final payment is made for each approved project.

1. (9) The commission reserves the right to remove any and all unfunded projects from funding consideration in the event of the catastrophic failure or collapse of a publiclyowned wastewater treatment facility or publicly-owned waste stabilization lagoon where there is imminent threat of contamination of a water system as defined in 10 CSR 60-2.015.

AUTHORITY: sections 644.026, RSMo Supp. 1987, and 644.101, 644.106, 644.111 and 644.121, RSMo Supp. 1991 and 644.116, RSMo 1986.* Original rule filed Oct. 12, 1982, effective April 15, 1983. Amended: Filed March 9, 1984, effective Oct. 1, 1984. Amended: Filed March 11, 1988, effective Oct. 1, 1988. *Original authority: 644.026, RSMo 1972, amended 1973, 1987; 644.101, 644.106 and 644.111, RSMo 1972, amended 1973, 1982, 1987, 1991; 644.116, RSMo 1972, amended 1973, 1982; and 644.121, RSMo 1972, amended 1973, 1987, 1991.