PURPOSE: This rule contains procedures and provisions to provide financial assistance for solid waste management projects to any district, county or city of the state or to any other person or entity involved in waste reduction or recycling as provided for in section 260.335.2(5), RSMo.

PUBLISHER’S NOTE: The publication of the full text of the material that the adopting agency has incorporated by reference in this rule would be unduly cumbersome or expensive. Therefore, the full text of that material will be made available to any interested person at both the Office of the Secretary of State and the office of the adopting agency, pursuant to section 536.031.4, RSMo. Such material will be provided at the cost established by state law.

1. (1) Eligibility.

   1. (A) Definitions. Definitions for key words used in this rule may be found in 10 CSR 80- 2.010. Additional definitions specific to this rule are as follows:

      1. 1. Solid Waste Advisory Board. The

advisory board created within the Department of Natural Resources and composed of the chairman of the executive board of each of the solid waste management districts; and

1. 2. Waste reduction. Residential, com-

mercial and industrial activities or practices which avoid or reduce the amount of waste produced.

1. (B) Applicability.

   1. 1. This rule applies to any district,

county or city within Missouri or to any other person or entity involved in waste reduction or recycling activities, as described in paragraphs (1)(C)1. and 2. of this rule.

1. 2. Any applicant directly involved in the

selection and award of financial assistance under this chapter, or who has a conflict of interest in the selection and receipt of that assistance, shall be ineligible for monies made available under this chapter. An applicant shall have a conflict of interest whenever an applicant’s employee, spouse or partner, participates in the selection, award or administration of financial assistance under this chapter or receives an award, contract, gratuity or favor from that participation.

1. (C) Solicited Projects—Grant Financed. The funds are to be allocated for targeted projects that are determined to meet statewide waste reduction and recycling priorities. Annually, the department will consult a variety of informational sources including the SWAB to determine which services, materials or activities should be targeted for funding in the subsequent financial assistance cycle. Upon evaluating targeting options and priorities, the department will then present recommendations to the SWAB for their advice. In consideration of the recommendations and advice solicited, the department will establish the targeted services, materials and activities that will be eligible to receive financial assistance.

2. (D) Costs.

   1. 1. In-kind contributions. In-kind contri-

butions are allowable project costs when they directly benefit and are specifically identifiable to the project.

1. 2. Eligible costs. Applicants can request

monetary assistance in the operation of eligible projects for the following types of costs. Eligible costs may vary depending on the targeted services, materials and activities, as specified in the financial assistance application.

1. A. Collection, processing, manufac-

turing or hauling equipment;

1. B. Equipment installation costs

including installation freight or retrofitting of the equipment;

1. C. Salaries directly related to the pro-

ject;

1. D. Development and distribution of

informational materials;

1. E. Planning and implementation of

informational forums including, but not limited to, workshops;

1. F. In-state travel necessary for project

completion;

1. G. Buildings; and
2. H. Retrofitting of buildings.
3. 3. Ineligible costs. The following costs

are considered ineligible for project funding:

1. A. Operating expenses, such as staff

salaries and expenses, that are not directly related to the project activities;

1. B. Costs incurred before and after the

project period;

1. C. Taxes;
2. D. Legal costs;
3. E. Contingency funds; and
4. F. Land acquisition.

5. (E) Unsolicited Projects—Loan Financed. Funds are to be allocated from a loan subaccount of the Solid Waste Management Fund for waste reduction and recycling projects. Applications for projects funded by a loan may be submitted at any time.

   1. 1. Eligible costs. Applicants can request

monetary assistance in the operation of eligible projects for items of nonexpendable equipment.

1. 2. All other costs are ineligible.

1. (2) Financial Assistance Awards to Grant and Loan Recipients.

   1. (A) Awards. All financial assistance awards are subject to the appropriation process. The department cannot guarantee funding of an approved project after the close of the fiscal year in which the project was approved.
   2. (B) Grant Awards as a Percent of Total Funds Available. No less than twenty-five percent (25%) of the funds made available annually by this rule shall be allocated as grant awards. Funds not expended for targeted grants shall be allocated as other forms of credit or credit enhancements, including loans.

   3. (C) Maximum Amounts.

      1. 1. The total amount of funds available

for eligible projects under this rule will be determined annually by the department, subsequent to appropriations by the state legislature.

1. 2. The maximum amounts available

from the Solid Waste Management Fund for targeted waste reduction and recycling activities is up to one hundred twenty-five thousand dollars ($125,000) per project.

1. 3. The maximum loan amount for unso-

licited projects shall not exceed twenty-five percent (25%) of the revolving loan fund balance on the date the loan is approved and shall be determined by the department on a case-by-case basis.

1. (D) Match Share for Grants. A twenty percent (20%) applicant match is required.

1. (3) Application Requirements for Financial Assistance.

   1. (A) All grant and loan applicants shall submit proposals on application forms provided by the department. The application must include all applicable documentation as stated in section (4) as necessary in order to be considered complete.
   2. (B) In addition to the information required in section (4), a loan applicant shall document the financial ability to repay the loan by submitting a completed loan application on forms approved by the department.
   3. (C) An applicant shall submit evidence that a licensed professional engineer has approved any engineering plans, studies or specifications necessary for the project, if required in the application pertinent to the project.
   4. (D) Applications for solicited grants shall be submitted by the deadline established by the department to be eligible for funding. Application materials received after the deadline shall be returned to the applicant and shall not be considered.
   5. (E) Applications for unsolicited loan projects may be submitted to the department at any time.

2. (4) Proposal Content and Supporting Documents. A project proposal shall be required for both grant and loan applicants and should include the following information, as appropriate:

   1. 1. An executive summary of the project

objectives and the problem to be solved. This should be no longer than two (2) pages;

1. 2. The location of the project;
2. 3. A work plan which identifies project

tasks, the key personnel and their qualifications;

1. 4. A timetable showing anticipated dates

for major planned activities and expenditures, including the submittal of quarterly reports and the final report;

1. 5. An estimate of the costs for conduct-

ing the project, itemized to show the total budget of eligible items only. Estimates shall be provided for all major planned activities or purchases and shall be supported by documentation showing how each cost estimate was determined. The budget must delineate the percentages and dollar amounts of the total project costs by categories of state and applicant contributions, if a match is required;

1. 6. Verification that all applicable feder-

al, state and local permits, approvals, licenses or waivers necessary to implement the project have been obtained or applied for and will be obtained prior to an award and demonstrate that the project is in zoning compliance;

1. 7. A description of the evaluation proce-

dures to be used throughout the project to quantitatively measure the success of the project including amount of waste diversion, if applicable; or other measure as specified for a targeted activity;

1. 8. Documentation that shows a commit-

ment for the match, if applicable;

1. 9. Provide or show evidence of a request

for a letter of endorsement from the executive board of the solid waste management district in which the project is physically located or from the city or county governing body responsible for the solid waste decision making, if the county has not joined a solid waste management district;

1. 10. The following supporting documents

for projects involving assistance over twenty thousand dollars ($20,000):

1. A. To demonstrate technical feasibili-

ty, a preliminary project design, engineering plans and specifications for any facilities and equipment; and B.Financial information, including:

1. (I) A marketing plan. The plan

shall include a market analysis with information demonstrating that the applicant has secured the commitments necessary to complete the project;

1. (II) A description of project financ-

ing, including projected revenue from the project, if applicable; 10 CSR 80-9

1. (III) A letter of credit; and/or three

1. (3) years previous financial statements or reports; and

   1. 11. Confidential business information

and availability of information. Any person who submits information to the department in accordance with this rule may assert a claim of business confidentiality covering a part or all of that information by including a letter with the information which requests protection of specific information from disclosure. The department shall handle specific information as nonpublic data upon review and approval by legal counsel, as per Chapter 610, RSMo. However, if no claim accompanies the information when it is received by the department, the information may be made available to the public without further notice to the person submitting it.

1. (5) Proposal Review and Evaluation.

   1. (A) The department shall evaluate each grant proposal that is determined to be eligible, using the evaluation method as established by the department and the Environmental Improvement and Energy Resources Authority (EIERA) and with the advice of the Solid Waste Advisory Board. The department will present a list of approved proposals to the Solid Waste Advisory Board.
   2. (B) A committee made up of representatives from the Department of Natural Resources’ Solid Waste Management Program, the Environmental Improvement and Energy Resources Authority and other state agencies, as applicable, shall evaluate each loan proposal that is determined to be eligible using the evaluation method established by the department and with the advice of the Solid Waste Advisory Board. This committee shall submit recommended loan proposals to the department for approval. The department will present each approved loan proposal to the Solid Waste Advisory Board.

   3. (C) For all proposals funded by grants or loans, the evaluation method shall include the following core criteria, as appropriate:

      1. 1. Conformance with the integrated

waste management hierarchy as described in the Missouri Policy on Resource Recovery, as incorporated by reference in this rule;

1. 2. Conformance with the State Targeted

Materials List;

1. 3. Degree to which the project con-

tributes to community based economic development;

1. 4. Degree to which funding to the pro-

ject will adversely affect existing entities in the market segment;

1. 5. Degree to which the project promotes

waste reduction or recycling through the proposed process;

1. 6. Demonstration of cooperative efforts

through a public/private partnership or among political subdivisions;

1. 7. Compliance with federal, state or

local requirements;

1. 8. Transferability of results;
2. 9. The statewide need for the informa-

tion;

1. 10. Technical ability of the applicant;
2. 11. Managerial ability of the applicant;
3. 12. Ability to implement in a timely

manner;

1. 13. Technical feasibility;
2. 14. Availability of commitments neces-

sary to conduct the project;

1. 15. Level of commitment for financing;
2. 16. Type of contribution by applicant;
3. 17. Effectiveness and quality of market-

ing strategy;

1. 18. Quality of budget; and
2. 19. Selected financial ratios.

1. (6) Project Awards. Before awarded funds are distributed to any proposed awardee, they shall do the following:

   1. (A) Obtain all applicable federal, state and local permits, approvals, licenses or waivers required by law and necessary to implement the project;
   2. (B) Enter into a financial assistance agreement issued by the department.

2. (7) Project Reports.

   1. (A) Quarterly Reports. Projects receiving financial assistance through this rule shall submit to the department, at no less than three (3)-month intervals, a report which contains the following:

      1. 1. The details of progress, including the

volume or weight of waste diverted for each type of recovered material utilized in the project, if appropriate;

1. 2. Problems encountered in project exe-

cution; and

1. 3. Other information necessary for prop-

er evaluation of the project.

1. (B) In the event that a time period for a project is less than a full year, only quarterly reports appropriate to the project time period need be submitted.
2. (C) Final Report. Projects receiving financial assistance through this rule shall submit a final report, within thirty (30) days of the project completion date as specified in the financial assistance agreement, that shall contain the same information as described for quarterly reports in subsection (7)(A) of this rule, as well as a comparison of actual accomplishments to the goals established and reasons why goals were either not met or were exceeded.

1. (8) Accountability.

   1. (A) Projects receiving financial assistance through this rule shall comply with the department’s reporting requirements, pursuant to section (7) of this rule.
   2. (B) Projects receiving financial assistance through this rule shall maintain an accounting system that accurately reflects all fiscal transactions, incorporates appropriate controls and safeguards, and provides clear references to the project proposal. Accounting records must be supported by source documentation such as canceled checks, paid bills, payrolls, time and attendance records, contracts and agreement award documents. These documents shall be made available to the department upon request at any time during the term of the financial assistance agreement and for the three (3)-year retention period after the grant as required by subsection (8)(E) of this rule.
   3. (C) The department shall retain fifteen percent (15%) of the financial assistance from the approved project until that time approval is given to the final report and the final accounting of project expenditures.
   4. (D) Project officials must invoice the department for all project costs within one hundred eighty (180) days of the end date of the project or funds may be disencumbered and no longer made available for the reimbursement of project costs.

   5. (E) Retention and Custodial Requirements for Records.

      1. 1. Projects receiving financial assistance

through this rule shall retain all records and supporting documents directly related to the project during the term of the agreement and for a period of three (3) years from the date of submission of the final status report and make them available to the department.

1. 2. If any litigation, claim, negotiation,

and audit or other action involving the records has been started before the expiration of the three (3)-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular three (3)-year period, whichever is later.

1. (F) All general terms and conditions of the department applicable to the recipients of financial assistance will be applicable to projects funded to include but not limited to the following: the utilization of minority, women’s and small disadvantaged business enterprise firms; compliance with the Davis- Bacon Act; and the use of recycled paper. AUTHORITY: sections 260.225 and 260.335, RSMo Supp. 1999.* Emergency rule filed Aug. 4, 1992, effective Oct. 1, 1992, expired Jan. 28, 1993. Original rule filed Aug. 4, 1992, effective April 8, 1993. Amended: Filed Dec. 14, 1999, effective Aug. 30, 2000. *Original authority: 260.225, RSMo 1972, amended 1975, 1986, 1988, 1990, 1993, 1995; and 260.335, RSMo 1990, 1993, 1995.