PURPOSE: This rule contains procedures and provisions for solid waste management districts to qualify for grant funds from the Solid Waste Management Fund as provided for in section 260.335.2(4), 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. Executive board. The board estab-

lished by the district’s solid waste management council or by the alternative management structure chosen by a district as provided for in section 260.310.4(2), RSMo;

1. 2. Project. Project means all approved

components of an organized undertaking described in a proposal, including any supporting documents as required by project type; and

1. 3. Solid Waste Management Fund. The

fund established to receive the tonnage fee charges submitted by sanitary and demolition landfills for waste disposed of in Missouri and transfer stations for waste transported out of state for disposal.

1. (B) Applicability. This rule applies to the members of the executive boards of all department-recognized solid waste management districts in Missouri.

2. (C) Projects. The district grant funds are to be allocated for projects in accordance with the following provisions:

   1. 1. Grant monies made available by this

rule shall be allocated by the district for projects contained within the district’s approved solid waste management plan. These funds will be used for solid waste management projects as approved by the department. However, no grant funds will be made available for incineration without energy recovery;

1. 2. In the event that the district solid

waste management plan has not been submitted to the department, any eligible projects approved by the district and allocated monies made available by this rule shall be included in the district’s solid waste management plan prior to submission;

1. 3. In the event that the district solid

waste management plan has been submitted to the department, any eligible projects approved by the district and allocated monies made available by this rule, but not contained within the plan, shall be considered an addenda to the plan. The addenda will be evidenced in quarterly and final project reports required under subsections (4)(B) and (C) of this rule. Projects serving as addenda to the plan in this manner must be included in any documents required by the department to be submitted by the districts that update the plan or that verify implementation of the plan pursuant to section 260.325.5, RSMo;

1. 4. District grant funds will not be award-

ed for a project whose applicant is directly involved in the evaluation and ranking of that particular project; and 10 CSR 80-9

1. 5. District grant funds may be withheld

if the district has an unresolved audit with significant findings or questioned costs.

1. (D) Grant Funds.

   1. 1. As determined by statute, an amount

of the revenue generated from the solid waste tonnage fee collected and deposited in the Solid Waste Management Fund may be allocated annually to the executive board of each officially recognized solid waste management district for district grants. Further, each officially recognized solid waste management district shall be allocated, upon appropriation, a minimum amount of forty-five thousand dollars ($45,000) for district grants pursuant to section 260.335.2(3), RSMo.

1. 2. Up to forty percent (40%) of the

grant money available to a district under subsection (1)(D) of this rule within a fiscal year may be allocated for projects that further plan implementation and at least sixty percent (60%) shall be allocated for projects of cities and counties within the district.

1. 3. Any regional monies available to a

district but not awarded or expended within twenty-four (24) months of the state fiscal year in which it was allocated due to insufficient or inadequate project, as determined by the district’s executive board or the department, may be reallocated pursuant to section 260.335.2(4), RSMo of the Missouri Solid Waste Management Law.

1. (E) 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. Ineligible costs, other than acquisition of privately owned land, are not allowable as in-kind contributions.

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 services, materials and activities, as specified in the financial assistance 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. Salaries directly related to the pro-

ject;

1. E. Equipment installation costs

including installation freight or retrofitting of the equipment;

1. F. Development and distribution of

informational materials;

1. G. Planning and implementation of

informational forums including, but not limited to, workshops;

1. H. Travel as necessary for project

completion;

1. I. Overhead costs directly related to

the project; and

1. J. Laboratory analysis costs.
2. 3. Ineligible costs. The following costs

are considered ineligible for district grant funding:

1. A. Operating expenses, such as

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

1. B. Costs incurred before the project

start date or after the project end date;

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

1. (2) District Fund Procedures.

   1. (A) Notification.

      1. 1. Notification by the department. To

initiate the process of awarding funds for district solid waste management plan projects, the department annually shall notify the executive board of each district of the amount of grant funds for which the district is eligible. This notification will be provided to districts by the department no later than November 30 of each fiscal year and will stipulate the deadline by which approved project documentation must be submitted to the department by the executive board.

1. 2. Notification by the districts. The dis-

trict executive boards shall request project proposals by giving written notification to the governing officials of each county and city over five hundred (500) in population and by publishing a notice in a newspaper officially designated by the presiding commissioner of each county, for public notices for every county and city with a population over five hundred (500) within the district. Notification may begin no sooner than July 1 of each fiscal year.

1. (B) Proposal Content and Supporting Documents. The districts shall, as appropriate, require the proposals to include but not be limited to the following information:

   1. 1. An executive summary of the project

objectives and the problem to be solved, including the page numbers of the solid waste management plan component to which it applies. This should be no longer than two (2) pages;

1. 2. The location of the project and name,

address and phone number of the official subgrant recipient;

1. 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. A budget that includes an estimate of

the costs for conducting the project. Estimates shall be provided for all major planned activities or purchases by category and shall be supported by documentation showing how each cost estimate was determined. If the project includes matching funds, the budget must delineate the percentages and dollar amounts of the total project costs for both district funds and applicant contributions;

1. 6. Verification that all applicable feder-

al, state and local permits, approvals, licenses or waivers necessary to implement the project are either not needed or have been obtained or applied for and will be obtained prior to an award;

1. 7. Demonstration of compliance with

local zoning ordinances;

1. 8. A description of the evaluation proce-

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

1. 9. Documentation that shows a commit-

ment for the match, if applicable;

1. 10. The following supporting documents

for projects involving allocations 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 project;

1. B. A financial report including:

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

For projects involving recycling and reuse technologies, the plan shall include a market analysis with information demonstrating that the applicant has secured the supply of and demand for recovered material and recycled products necessary for sustained business activity;

1. (II) A description of project financ-

ing, including projected revenue from the project; and

1. (III) A credit history; and/or up to

three (3) years’ previous financial statements or reports; and

1. 10. Confidential business information

and availability of information. Any person 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. Confidentiality shall be determined or granted in accordance with 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. (C) Proposal Review and Evaluation. The executive boards must review, rank and approve proposals as outlined in this subsection.

   1. 1. Review for eligibility and complete-

ness. For all proposals received by the deadline as established in their public notices to the media, the board shall determine the eligibility of the applicant, the eligibility of the proposed project, the eligibility of the costs identified in the proposal and the completeness of the proposal.

1. 2. Notice of eligibility and complete-

ness. If the district executive board determines that the applicant or the project is ineligible or incomplete, the board may reject the proposal and shall notify the applicant. A project may be resubmitted up to the application deadline.

1. 3. Proposal evaluation. The executive

board shall evaluate each proposal that is determined to be eligible and complete. The board will develop a District Targeted Materials List to be used as one of the evaluation criteria. The evaluation method will include the following criteria, as appropriate per project category:

1. A. Conformance with the integrated

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

1. B. Conformance with the District

Targeted Materials List;

1. C. Degree to which the project con-

tributes to community-based economic development;

1. D. Degree to which funding to the

project will adversely affect existing private entities in the market segment;

1. E. Degree to which the project pro-

motes waste reduction or recycling through the proposed process;

1. F. Demonstrates cooperative efforts

through a public/private partnership or among political subdivisions;

1. G. Compliance with federal, state or

local requirements;

1. H. Transferability of results;
2. I. The need for the information;
3. J. Technical ability of the applicant;
4. K. Managerial ability of the appli-

cant;

1. L. Ability to implement in a timely

manner;

1. M. Technical feasibility;
2. N. Availability of feedstock;
3. O. Level of commitment for financ-

ing;

1. P. Type of contribution by applicant;
2. Q. Effectiveness of marketing strate-

gy;

1. R. Quality of budget; and
2. S. Selected financial ratios.

1. (3) Project Documentation.

   1. (A) Proposals. The following documentation should be submitted to the department by the deadline established by the department in the notification to the executive board:

      1. 1. The executive summaries of the eligi-

ble proposals submitted to the executive board;

1. 2. The aggregate executive board rank-

ings for each of the eligible proposals using the evaluation criteria as described in paragraph (2)(C)3.;

1. 3. Copies of all approved project pro-

posals and supporting documents. The documentation must indicate if the project is considered a plan implementation or a city/county activity; and

1. 4. A copy of the notices given to the

governing bodies and published in the newspapers within the district.

1. (B) Quarterly Reports.

   1. 1. The district shall submit to the

department, at the end of each state fiscal year quarter, a report which contains the following for each project in progress:

1. A. The details of progress, including

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

1. B. Problems encountered in project

execution;

1. C. Budget adjustments made within

budget categories, with justifications; and

1. D. Other information necessary for

proper evaluation of the progress of the projects.

1. 2. In the event that a time period for a

project is less than a full year, only quarterly information appropriate to the project time period need be included in the district report.

1. (C) Final Report. The district shall submit to the department a final report for each project, within thirty (30) days of the project completion date as stated in the financial assistance agreement, that shall contain the same information as described for quarterly reports in subsection (4)(B) of this rule, as well as a comparison of actual accomplishments to the goals established and a description as to how goals were either met, not met or were exceeded.

1. (4) Executive Board Accountability.

   1. (A) The executive board shall comply with the department’s reporting requirements, pursuant to section (3) of this rule.
   2. (B) An executive board receiving funds from the Solid Waste Management Fund for district grants shall themselves maintain, and require recipients of financial assistance to maintain, an accounting system according to that accurately reflects all fiscal transactions, incorporates appropriate controls and safeguards, and provides clear references to the project as agreed to in the Financial Assistance Agreement. Accounting records must be supported by source documentation such as cancelled checks, paid bills, payrolls, time and attendance records, contract, and agreement award documents.
   3. (C) The executive board shall retain fifteen percent (15%) of the funds from the recipient until the board gives approval to the recipient’s final report and the final accounting of project expenditures.

   4. (D) Retention and Custodial Requirements for Records.

      1. 1. The executive board shall retain all

records and supporting documents directly related to the funds and projects for a period of three (3) years from the date of submission of the final status report and make them available to the department for audit or examination.

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

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 and special terms and conditions of the department applicable to the project will be applicable to recipients of awards made available by this chapter.
2. (F) The executive board shall address all deficiencies identified in a district’s audit to the satisfaction of the department. Districts failing to adequately address deficiencies identified in the audit may not be eligible to receive any further funding and may be required to repay any and all disbursements of funds.
3. (G) Funding for approved subgrants will be forwarded to the districts upon receipt of a completed, signed and dated invoice and financial assistance agreement for each individual subgrant.

1. (5) Awards.

   1. (A) District Awards. District grant awards will be allocated to the district as provided for in subsection (1)(D) of this rule following receipt by the department of all applicable documentation per section (4) of this rule, from the executive board of the district.

   2. (B) Project Awards.

      1. 1. All district grant awards are subject to

the appropriation process. The department cannot guarantee funding of a districtapproved project more than twenty-four (24) months after the date it has been awarded. After which time it will be reallocated pur- 10 CSR 80-9

suant to section 260.335.2(4), RSMo of the Missouri Solid Waste Management Law.

1. 2. Before awarded funds are distributed

to a subgrantee, the subgrantee 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;

1. B. Enter into a financial assistance

agreement issued by the district which is consistent with the Solid Waste Management Law and department rules and all terms and conditions of the district’s grant agreement; and

1. C. Submit all required quarterly reports.

1. (6) The department may withhold or reduce district grant awards until the district is in compliance with the following:

   1. (A) Solid Waste Management Law;
   2. (B) Planning requirements pursuant to section 260.325.3 and .5, RSMo;
   3. (C) All applicable rules;
   4. (D) All general and special terms and conditions of the district’s grant agreement; and
   5. (E) Audit requirements.

AUTHORITY: sections 260.225 and 260.335, RSMo Supp. 1999.* Emergency rule filed Dec. 2, 1992, effective Dec. 12, 1992, expired April 11, 1993. Original rule filed Dec. 2, 1992, effective Aug. 9, 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.