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.

Editor’s Note: The secretary of state has determined that the publication of this rule in its entirety would be unduly cumbersome or expensive. The entire text of the material referenced has been filed with the secretary of state. This material may be found at the Office of the Secretary of State or at the headquarters of the agency and is available to any interested person at a 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) Projects. The funds are to be allocated for projects with the following purposes, including support activities, such as research and development and education:

   1. 1. Waste reduction. For the purpose of

this rule, waste reduction projects shall not include activities related to incineration without energy recovery, solid waste disposal and projects otherwise included in recycling; and

1. 2. Recycling. Recycling projects shall

include, but not be limited to, market development, processing/collection and composting.

1. (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 will vary depending on the specific category of project, as specified in the appropriate application.

1. A. Collection, processing, manufac-

turing or hauling equipment;

1. B. Materials and labor for construc-

tion of buildings;

1. C. Engineering or consulting fees;
2. D. Equipment installation costs

including installation, freight or preparation of the equipment;

1. E. Laboratory analysis costs;
2. F. Salaries directly related to the pro-

ject;

1. G. Development and distribution of

education materials;

1. H. Planning and implementation of

education forums including, but not limited to, workshops;

1. I. Overhead costs directly related to

the project; and

1. J. Travel necessary for project com-

pletion.

1. 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 the project

start date;

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

1. (2) Financial Assistance Awards.

   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 grants shall be allocated as other forms of credit or credit enhancements.

   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 project categories are as follows:

1. A. Waste reduction projects shall be

one hundred twenty-five thousand dollars ($125,000);

1. B. Recycling activities shall be one

hundred thousand dollars ($100,000); and

1. C. Incineration with energy recovery

activities shall be seventy-five thousand dollars ($75,000).

1. (D) Match Share for Grants. An applicant for a grant shall agree to provide the match for the grant as required in this rule.

   1. 1. Waste reduction match is ten percent

(10%).

1. 2. Collection/processing match is twen-

ty-five percent (25%).

1. 3. Composting match is twenty-five per-

cent (25%).

1. 4. Market development match is twenty-

five percent (25%).

1. 5. Waste-to-energy match is fifty per-

cent (50%).

1. 6. Match requirements for education

and research and development projects will be based on the type of activity supported as identified in paragraphs (2)(D)1.—5. of this rule.

1. (3) Application Requirements for Financial Assistance.

   1. (A) An applicant shall submit completed application forms provided by the department. The application must include all documentation as stated in section (4) as necessary in order to be considered complete.
   2. (B) A loan applicant shall document the financial ability to repay the loan by submitting a completed loan application form.
   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 category.
   4. (D) Applications shall be provided 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.

2. (4) Proposal Content and Supporting Documents. The proposals shall include the following information:

   1. 1. An executive statement 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;

1. 7. A description of the evaluation proce-

dures to be used throughout the project to quantitatively measure the success of the project;

1. 8. Documentation that shows a commit-

ment for the match, if applicable;

1. 9. 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 required for a proposed object; and

1. B. A financial report, including: 10 CSR 80-9

   1. (I) A three (3)-year business plan.

For projects involving collection/processing, composting, market development and wasteto-energy, the plan shall include a market analysis with information demonstrating that the applicant has secured the supply of and demand for secondary material and recycled products necessary for sustained business activity;

1. (II) A description of project financ-

ing, including projected revenue from the project;

1. (III) A credit history; and
2. (IV) Up to three (3) years’ previous

financial statements or reports.

1. 10. 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 proposal that is determined to be eligible and complete, using the evaluation method as established by the department and the Solid Waste Advisory Board. The department shall submit the proposals in rank order for approval to the Solid Waste Advisory Board.

   2. (B) The evaluation criteria shall include the following criteria, as appropriate per project category:

      1. 1. Conformance with the integrated

waste management hierarchy as described in the Missouri Policy on Resource Recovery;

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 the project promotes

waste reduction or recycling through the proposed process;

1. 5. Demonstration of cooperative efforts

through a public/private partnership or among political subdivisions;

1. 6. Compliance with federal, state or

local requirements;

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

tion;

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

manner;

1. 12. Technical feasibility;
2. 13. Availability of feedstock;
3. 14. Level of commitment for financing;
4. 15. Type of contribution by applicant;
5. 16. Effectiveness of marketing strategy;
6. 17. Quality of budget; and
7. 18. Selected financial ratios.

1. (6) Project Awards. Before awarded funds are distributed to an applicant, the recipient 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; and
   3. (C) 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 solid waste decision making, if the county has not joined a solid waste management district.

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 of waste disposal abatement 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 according to generally accepted accounting principles 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.
   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) 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 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. (E) All general terms and conditions of the department applicable to the recipients of financial assistance will be applicable to projects funded through the Waste Reduction and Recycling Projects Financial Assistance Program, to include among others: 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 (Cum. Supp. 1990).* Emergency rule filed Aug. 4, 1992, effective Oct. 1, 1992, expired Jan. 28, 1993. Original rule filed Aug. 4, 1992, effective April 8, 1993.

*Original authority: 260.225, RSMo (1972), amended 1975, 1986, 1988, 1990 and 260.335, RSMo (1990).