PURPOSE: This rule sets forth the requirements and process of application for storm water loans and grants for construction of storm water control facilities and the terms and conditions for receipt of the loan and/or grant as revised. This rule also clarifies the requirements, the types of facilities eligible for funds and the calculation used to determine the amount of loan and grant available for eligible grantees.

1. (1) Applicability. This rule defines the minimum requirements which apply to all recipients of assistance under the state storm water grant and loan program. The recipient must satisfy more stringent requirements if required to do so by the state constitution, state or local statutes, policies, rules, ordinances or orders.

2. (2) Definitions.

   1. (A) Commission. The Missouri Clean Water Commission.
   2. (B) Delegated entity. An eligible applicant that has been designated by the department as having sufficient staff and expertise to administer funds to subrecipients within its jurisdiction.
   3. (C) Department. The Missouri Department of Natural Resources.
   4. (D) Force account. Project planning, design, construction or engineering inspection work performed by the recipient’s regular employees and rented or leased equipment.
   5. (E) Storm water coordinating committee (SCC). A local committee or group established by eligible applicants involved in project screening and project selection. In cities over twenty-five thousand (25,000) population, the SCC shall consist of a committee or organizational unit designated by the city manager. In St. Louis City and County, the SCC shall consist of a committee or organizational unit designated by the executive director of the Metropolitan St. Louis Sewer District. In all eligible counties, except St. Louis County, an SCC must be established which is representative of the county government and incorporated municipalities within the county.

3. (3) General Requirements.

   1. (A) Jurisdictional Requirements. Storm water funds may be used for storm water projects in any first class county, or city not within a county, or as specified in Article III, Section 37(h) of the Missouri Constitution.
   2. (B) Project Selection. First class counties, the Metropolitan St. Louis Sewer District

4. (MSD) and communities within first class counties having a population of twenty-five thousand (25,000) or more shall submit storm water applications to the Department of Natural Resources (DNR), postmarked by January 2 of the fiscal year for which funds are sought. Communities and unincorporated areas within the MSD shall submit applications to the district by October 1 of the fiscal year. Communities of less than twenty-five thousand (25,000) population and unincorporated areas of the county shall submit applications to their county’s Storm Water Coordinating Committee by October 1 of the fiscal year. The committee shall submit the successful applications and their recommendation for project funding to the department postmarked by the January 2 deadline. If either date is on a Sunday, the postmark must be the next business day. The department will review the applications and submit them to the commission for approval no later than April 1 of the fiscal year.

   1. (C) Allocation of Appropriations. Original storm water appropriations and funds subject to reallocation will be allocated to each first class county by a percentage based on the population of the qualifying county in relation to the total population of all eligible counties. The most recent federal decennial census will be used for all population statistics. Cities located within first class counties with population equal to or greater than twenty-five thousand (25,000) shall receive grants and loans directly in an amount equal to the percentage ratio that the city’s population bears to the total population of the county. For cities or counties served by the MSD, the district shall receive the grants and loans directly. Newly appropriated funds will be fifty percent (50%) loans and fifty percent (50%) grants. Recovered and reallocated funds will retain their original loan or grant designation.

   2. (D) Storm water funds allocated under subsection (3)(C) will be recovered and reallocated in whole or in part according to the percentage method contained in subsection (3)(C) if the applicant fails to meet the following criteria:

      1. 1. All storm water funds must be award-

ed to projects within twelve (12) months of the original appropriation or reallocation; or

1. 2. All storm water funds awarded to pro-

jects must have all significant construction contracts awarded within eighteen (18) months of the original appropriation or reallocation or, if used for a study or plan, must expend all moneys for such study within two (2) years of the appropriation.

1. (E) Planning Requirements. All storm water projects must be consistent with a comprehensive storm water management plan approved by the department or a delegated entity prior to construction advertising. The geographical extent of the planning area may be determined by the department or the delegated entity. Projects which are solely for bank stabilization or erosion control, or other projects as determined by the department or the delegated entity, need only provide the items listed in paragraphs (3)(E)2., 4., and 6. The plan should include, but is not limited to:

   1. 1. A detailed map of the drainage area

showing computed drainage acreage;

1. 2. A narrative, a plan layout and esti-

mated construction costs for each proposed project;

1. 3. Tabulated storm water conceptual

design parameters for each drainage area, that is, upstream acres, runoff coefficients, time concentrations, return frequencies and so forth. Computer modeling information may be provided;

1. 4. A recommended project improvement

priority list;

1. 5. A determination of the flood elevation

changes resulting from each project, unless the Corps of Engineers has committed to remap the area; and

1. 6. An evaluation of limited structural

approaches to storm water control. The plan must analyze the use of applied geomorphology and bioengineering techniques to manage storm water. Projects that are only rehabilitation or replacement of existing structures will require an evaluation that addresses reasonable geomorphological alternatives and, if this approach is not taken, a brief discussion why not. For more complex projects, the evaluation should follow guidance provided by the U.S. Army Corps of Engineers Manual EM 1110-4000, Engineering and Design— Sedimentation Investigations of Rivers and Reservoirs or an equivalent guidance manual. Soil bioengineering techniques as described in Bowers, H. 1950, Erosion Control in California Highways, State of California, Department of Public Works, Division of Highways, shall be used unless other appropriate guidance is used and documented. The root causes of flooding, bed and bank erosion, and sediment deposition should be addressed in this plan. The plan should not exacerbate these problems by:

1. A. Modifications to stream systems

that increase bed and bank erosion in modified stream sections;

1. B. Cause these impacts in sections

that are upstream or downstream of the storm management project;

1. C. Remove or degrade aquatic habi-

tat;

1. D. Remove the pollutant removal ben-

efits of vegetated stream corridors; or

1. E. Lead to increased flooding up-

stream or downstream of the storm water management project. Combinations of measures can be employed to manage storm water and retain important stream functions “Bioengineering” combines mechanical, biological, and ecological concepts to prevent slope failures and erosion. Bioengineering techniques may use bare root stock, stems, branches or trunks of living plants on eroded slopes. Plantings may be incorporated into such configurations as a live stakings, live fascines, or living cribwall. Vegetative plantings and cuttings may be combined with structural elements such as gabion baskets or rock surface armoring. However, the intent should be to minimize hard structural solutions and allow the rooted plantings to do much of the work to hold the soil in place and retain the natural function of streams to convey storm water. Other storm water management options include environmental easements and land acquisition. (4) Required Documents. Prior to grant award and/or loan closing, the applicant must submit a completed storm water grant/loan application to the department. The following documents must be submitted and approved by the department or delegated entity prior to construction advertising. Some documents may be waived by the department or delegated entity on a case-by-case basis if it is determined they are not needed for that project:

1. (A) The following documents are required for a project which includes design and construction:

   1. 1. Construction plans, specifications and

design criteria;

1. 2. A storm water management plan pre-

pared according to the requirements of subsection (3)(E);

1. 3. Certification by the applicant that—

   1. A. The facilities, when completed,

will be owned, operated and maintained by a political subdivision eligible under subsection (3)(A) of this rule; or

1. B. Evidence of a permanent easement

and legal authority to ensure operation and maintenance of the facility;

1. 4. Certification by the applicant that

contract documents and construction bidding will conform to relevant local and state laws;

1. 5. Certification by the applicant that all

necessary easements and land have been or will be obtained prior to construction start;

1. 6. Certification by the applicant that the

applicant will construct the project or cause it to be constructed to final completion in accordance with the certified plans and specifications; and

1. (B) The following documents must be submitted for all storm water grant/loan projects including grants/loans for planning:

   1. 1. Certification by the applicant that all

state storm water funds will be expended solely for carrying out the approved project;

1. 2. Certification by the applicant that a

registered professional engineer has been selected and will perform the services required in section (9) of this rule;

1. 3. Certification by the applicant that the

local match is available; and

1. 4. Certification by the applicant that any

required section 404 dredge and fill permits from the United States Army Corps of Engineers or land disturbance permits from the department will be obtained prior to construction.

1. (5) Eligible Project Costs. Eligible costs include the following:

   1. (A) Costs for development of a comprehensive storm water control plan meeting the requirements of subsection (3)(E);
   2. (B) An allowance for engineering services for planning and design or invoiced amounts for a contracted engineering consultant. If these services are performed by force account, the cost will only be reimbursed by the allowance. If these services are provided by a contracted consultant, the costs may be invoiced or the allowance may be requested. The allowance for planning and design will be based on a percentage of the eligible construction, land, equipment, materials and supply costs identified in the bid documents or purchase contracts as determined from Table 1 or 2 as applicable. 10 CSR 20-4
   3. (C) Costs for construction-related engineering;
   4. (D) Construction costs including construction permits as issued by DNR;

   5. (E) Land purchase or permanent easement costs required for storm water holding basins, grass-lined channels or for other limited structural storm water control projects, or buy-outs if the land purchased is restricted such that no permanent structure except for structures allowed under the Missouri Statewide Comprehensive Outdoor Recreation Plan (SCORP) may be constructed within the easement or purchase area. Construction costs related to holding basins on private land are eligible if the eligible applicant retains a permanent easement, is legally responsible for operation and maintenance of the facility, and the basin constructed is clearly for storm water control and not recreational use;

      1. (F) Costs of force account work for planning, design, construction and construction engineering;
   6. (G) Demolition costs of structures located within storm water control areas provided future development of permanent structures in the storm water control area is restricted;
   7. (H) Local cost of issuance and capitalized interest incurred on loans administered under this rule;
   8. (I) Construction costs incurred prior to grant/loan award or DNR letter of commitment are eligible providing the planning and design phases of the project were reviewed and approved by the department or delegated entity prior to the final construction payment;

   9. (J) Planning and design costs incurred prior to grant/loan award or DNR letter of commitment are eligible providing—

      1. 1. The planning and design phase is for

a facility to be constructed with funds administered by this rule, or is a comprehensive city-wide plan; and

1. 2. Costs associated with paragraph

(5)(J)l. were incurred in whole or in part during State Fiscal Year 1999;

1. (K) Up to five (5) sequential years of grant and/or loan funding may be used for the same project as long as the contract is awarded within the time frame necessary to receive the first grant and/or loan of the sequence the recipient certifies that there are adequate funds committed from other sources to complete the construction; the recipient commits to the original funding combination for the entire sequence of grants and/or loans; and that the recipient certifies that the project will be completed with or without the subsequent year’s grant/loan funds. No more than ninety percent (90%) of each annual grant will be paid until the final construction is complete and acceptable final inspection conducted by the department. Final grant payment will equal the balance of all grants in the sequence up to fifty percent (50%) of the final eligible project costs;
2. (L) Costs associated with minimizing storm water damage to sink holes;
3. (M) The reasonable costs of administrative fees incurred by a delegated entity in connection with each grant; and
4. (N) Costs not included in subsections (5)(A)–(M) are eligible if determined by the department to be reasonable and necessary for the project.

1. (6) Ineligible Project Costs. Ineligible costs include, but are not limited to, the following:

   1. (A) Projects which divert storm water to sinkholes or which modify sinkholes to increase storm water capacity;
   2. (B) Local government administration or legal costs, including appraisals;
   3. (C) Land purchase or easement costs other than those listed in subsection (5)(E);
   4. (D) Finance costs, including capitalized interest, for the local share to match the storm water grant if the local share is not a loan obtained through the department, or interest costs during construction;
   5. (E) Items related to photographing or filming; and
   6. (F) Permits required for the ongoing operation of the constructed facility(ies).
2. (7) Grant Amount. The maximum grant is limited to fifty percent (50%) of the total eligible project costs or available funds, whichever is less. The recipient must provide the remaining amount needed to complete the project through a storm water loan administered by the DNR or other source of funds. Grants may be matched with other state or federal grants up to one hundred percent (100%) of the eligible project costs.
3. (8) Loan Amount. Loans will be available in an amount up to one hundred percent (100%) of eligible project costs. Loans may be matched with state or federal grants. However, in no case will the total government assistance exceed one hundred percent (100%).

4. (9) Engineering Requirements.

   1. (A) A registered professional engineer must prepare the storm water plan and/or design all plans and specifications for competitive bidding and compliance with generally accepted storm water design criteria.
   2. (B) A registered professional engineer or a person under the direction and continuing supervision of a registered professional engineer must provide inspection of construction for the purpose of assuring compliance with the approved plans and specifications.

5. (10) Bidding Requirements. This section applies to procurement of construction equipment, supplies and construction services in excess of twenty-five thousand dollars ($25,000) awarded by the recipient for any storm water project other than costs directly related to force account work.

   1. (A) Each contract shall be awarded after formal advertising.
   2. (B) Contract award shall be to the lowest responsive and responsible bidder.
   3. (C) Departmental concurrence or concurrence from the delegated entity with contract award must be obtained prior to the actual contract award if fewer than three (3) bidders submit bids or if the recipient wishes to award the contract to other than the low bidder. The recipient shall forward the tabulation of bids and a recommendation of contract award to the department or delegated entity for review. Executed contract documents must be submitted prior to the first grant payment.

6. (11) Grant Payments.

   1. (A) For Storm Water Grants and Storm Water Grant Amendments Made during the Period March 4, 2007 through August 30, 2007. For grants that are not matched with loans from this program, full payment will be made at the time of the department’s receipt of the executed grant award or grant amendment. The following provisions shall apply:

      1. 1. Except for a delegated authority, the

grantee shall establish a separate escrow account with a bank as defined in Chapter 409, section 409-1.102, RSMo. The requirement to establish an escrow account may be waived for projects that are expected to be complete within three (3) months of grant award;

1. 2. The full grant amount, less any pay-

ments processed prior to the date of this rule, will be paid into the grantee’s established escrow account or to the grantee directly if the escrow account requirement has been waived;

1. 3. Grant funds paid to the escrow

account or to the grantee may be used to pay up to fifty percent (50%) of the costs of section (5) of the rule. No funds may be withdrawn from the escrow account until the following conditions have been met:

1. A. Projects involving construction

and not paid through a delegated entity must submit to the department:

1. (I) Construction plans and specifi-

cations, design criteria and drainage basin plan prepared in accordance with subsection (3)(E) of this rule; and

1. (II) Executed contract documents;
2. B. All construction contracts must be

awarded by December 31, 2007. For grants not paid through a delegated entity, it is the grantee’s responsibility to submit the construction documents to the department no later than January 31, 2008. Failure to award the major construction contracts by December 31, 2007 will result in departmental recovery of the full grant amount;

1. C. For grants for planning projects,

the grantee must have all grant funds fully committed to the project by July 1, 2008; and

1. D. Any funds remaining in an escrow

account established under this subsection on January 1, 2010 will be recovered by the department;

1. 4. The grantee shall submit the bank

statement of the escrow account monthly within thirty (30) days of the end of the month. If the monthly statement indicates that funds were withdrawn, the grantee shall submit copies of the invoices to document the costs. For grantees that have received grant funds when the escrow requirement has been waived, documentation shall be submitted within one hundred twenty (120) days of grant payment; and

1. 5. Projects administered through a dele-

gated entity will be paid in accordance with that entity’s procedure on file with the department.

1. (B) An audit to verify eligible project costs will be made by the department after the completion and inspection of the project. Any funds found not expended for purposes listed in section (5) of this rule will be recovered in addition to any applicable penalties.

1. (12) Loan Requirements.

   1. (A) Loans shall be administered in accordance with the provisions in 10 CSR 20- 4.041 or 10 CSR 20-4.042 with exception that final payment will be made only after the project is completed and a final inspection is conducted by the department.
   2. (B) Loans must be secured with an acceptable debt instrument including revenue or general obligation bonds or debt issued pursuant to Environmental Improvement and Energy Resources Authority’s (EIERA) SRF program policy on annual appropriationbacked debt. Other financing securities will be reviewed on a case-by-case basis. Tax Increment Financing (TIF) security structures will not be considered. Loans must be amortized over twenty (20) years or less from loan closure. Repayment must begin within one

2. (1) year of loan closing.

   1. (C) The commission may direct that existing and/or future loans be leveraged through the Environmental Improvement and Energy Resources Authority.
   2. (D) Loan payments will be made no more frequently than monthly. Grants matched by loans under this program will be paid simultaneously with loan payments.
3. (13) Repayment of Grant. Repayment of the grant is required if the applicant fails to obtain and meet reporting requirements of all DNR permits for all facilities owned by the recipient. The grant may also be required to be repaid at a straight-line depreciated rate if the facilities constructed with grant funds are sold to private ownership. AUTHORITY: sections 644.026 and 644.570, RSMo 2000.* Original rule filed June 9, 1999, effective March 30, 2000. Emergency amendment filed Feb. 1, 2007, effective March 4, 2007, expired Aug. 30, 2007. Amended: Filed March 14, 2007, effective Oct. 30, 2007.

*Original authority: 644.026, RSMo 1972, amended 1973, 1987, 1993, 1995, 2000 and 644.570, RSMo 1999.