Construction Grants for Wastewater Treatment Works
Published on AidPage by IDILOGIC
on Jun 24, 2005
Purpose of this program:
To assist and serve as an incentive in construction of municipal wastewater treatment works which are required to meet State and/or Federal water quality standards and improve the water quality in the waters of the United States. Funding Priority: Annual funding priorities are determined by the State in which the grantee is located. The project must be given priority by the State water pollution control agency through its project priority system and recommended for funding for approval by the EPA Regional Office.
Possible uses and use restrictions...
For construction of municipal wastewater treatment works including privately owned individual treatment systems, if a municipality applies on behalf of a number of such systems. Such works may serve all or portions of individual communities, metropolitan areas, or regions. A project may include, but may not be limited to, treatment of industrial wastes. The grantee must require pretreatment of any industrial wastes which would otherwise be detrimental to efficient operation and maintenance, or the grantee must prevent the entry of such waste into the treatment plant. The grantee must have or initiate an acceptable system of user charges.
Who is eligible to apply...
Any municipality, intermunicipal agency, State, or interstate agency, or Federally-recognized Indian tribal government, having jurisdiction over waste disposal. At present, new funding for the Construction Grants Program exists only in the District of Columbia, Virgin Islands, and the outer Pacific Islands because these were provided exemption by the U.S. Congress from establishing State Revolving Fund (SRF). Grants are awarded to only these territories from the SRF funds, which are received as Title II grants. Funding requests for construction of wastewater treatment facilities are now to be made to the SRF representative of the State in which the construction is proposed. For certain competitive funding opportunities, the Agency may limit eligibility to a particular subset of eligible applicants consistent with the Agency's competition policy.
(1) Certified copy of authorization and assurances from the applicant's governing body. Authorization must be current, and must designate by name and title the individual who will represent the applicant; (2) current description of the project; (3) statement explaining exact nature of local, State, and any other Federal funds which may be used to finance the project; (4) applicant assurance (which is acceptable to the Regional Administrator) that any necessary discharge permit has been or will be obtained in accordance with Section 401, of Public Law 92-500, as amended; (5) conformance with requirements set forth in 40 CFR Part 35; Subpart I. Application may be made for grant assistance for building and erection of the treatment works with an allowance for planning and design costs at the time that the grant for construction is made. Costs will be determined in accordance with OMB Circular No. A-87, "Costs Principles for State, Local, and Indian Tribal Governments."
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
Application must be submitted through the State water pollution control agency to the appropriate EPA Regional Office. This program is excluded from coverage under OMB Circular No. A-110.
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
Projects considered for award must be approved by the State water pollution control agency and also certified by such agency as to priority over any other eligible projects. Award is made following such certification and approval by a Regional Office of EPA. Funds authorized by the Congress are allotted to the States in accordance with The Clean Water Act, as amended. Grant awards within individual States are limited by the funds which have been allotted to such States.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
Any Title VI sums that are allotted as Title II to the District of Columbia (DC), American Samoa, Guam, Northern Marianas Islands, and Virgin Islands will be available for obligation to the above territories respectively for a period of one year after the close of the fiscal year for which the sums are authorized. The deobligated CWA Title II construction grants funds reissued on or after October 1, 1990, and before October 1, 2001, are no longer available, unless a deviation has been requested by the State before September 30, 2002, and approved by the EPA Region.
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
Up to 45 days, for EPA Regional Office action after certification by delegated State.
This is an existing program which is winding down as the funding is now being provided under State Revolving Fund Program for construction of wastewater treatment facilities. Preapplication assistance, including necessary application forms, and, where appropriate, a preapplication conference should be scheduled with the State water pollution control agency. The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used by this program. An environmental assessment is required for this program, which may require the development of an environmental impact statement by EPA. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
As described in 40 CFR, Part 31, Subpart F.
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
Anyone to be served by a wastewater treatment works assisted by this program.
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
The funding, for fixed or known periods, of specific projects. Project grants can include fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants, evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.
How much financial aid...
Range and Average of Financial Assistance
$10,000 to $10,000,000; $3,000,000.
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
FY 03 $9,393,300; FY 04 est $9,899,300; and FY 05 est $10,000,000.
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
Examples of funded projects...
New and expanded wastewater treatment plants, infiltration-inflow correction, new interceptors, new collector sewers, and correction of combined sewer overflows (CSO) projects.
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
In Fiscal Year 2003, four construction grants were awarded totaling $12.2 million. It is anticipated that 5 construction grants will be awarded in the fiscal year 2004 with an estimated dollar value of $10 million, including deobligated funds from previous grants.
Criteria for selecting proposals...
Annual funding priorities are determined by the State in which the grantee is located. The project must be given priority by the State water pollution control agency through its project priority system and recommended for funding for approval by the EPA Regional Office.
Length and Time Phasing of Assistance
Grant payments are based on work completed, equipment delivered, or sometimes off-site manufacturing or services rendered. Final grant payment is made after construction is completed and satisfactory final inspection and performance evaluation are carried out.
Formula and Matching Requirements
This program operates under Section 202 of the Clean Water Act. The Federal grant may be for up to 55 percent for grants awarded after September 30, 1984 or for 75 percent of eligible project costs for grant assistance awarded before October 1, 1984. The States may lower these percentages with the concurrence of the Regional Administrator pursuant to Section 202(a)(1) of the Clean Water Act as amended by Public Law 100-4. For innovative or alternative treatment processes and techniques referred to in section 201(g)(5) the funding shall be 20 per centum greater than the above approved percentage, but in no event greater than 85 per centum of the cost of construction of the project being funded with the grant. The grantee must assure that they will provide funds for all remaining costs. Some States assist grantees in providing all or part of the non-Federal share. The American Samoa, Guam, Northern Marianas Islands, and Virgin Islands will receive the funds allocated up to 100 percent of the cost of construction.
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
Annual inspection by the State agency for compliance with permit requirements including a written report concerning operation and maintenance of waste treatment facility, and certification one year after beginning operation that the works are meeting project performance standards.
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations, non-federal entities that expend $300,000 ($500,000 for fiscal years ending after December 31, 2003) or more in a year in Federal awards shall have a single or a program-specific audit conducted for that year. Non-federal entities that expend less than $300,000 ($500,000 for fiscal years ending after December 31, 2003) a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular No. A-133. Preaward, interim, and/or final audits may be performed. Periodic audits should be made as part of the recipient's systems of financial management, and internal control to meet terms and conditions of grants and other agreements. At least once a year EPA will conduct, or require the State to have independently conducted, a financial and compliance audit of the grant and the operations of the project.
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
Financial records, including all documents to support entries on accounting records and to substantiate charges to each grant, must be kept available to personnel authorized to examine EPA grant accounts. All records must be maintained for 3 years after project closeout, and if questions still remain, such as those raised in a court appeal, related records should be retained until the matter is completely resolved.
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's requirements.
Clean Water Act, Public Law 92-500, as amended; Sections 101(e), 109(b), 201 through 205, 207, 208(d), 210 through 212, 215 through 219, 304(d)(3), 313, 319, 320, 501, 502, 511, and 516(b); Public Laws 97-117 and 95-217; Water Quality Act of 1987, Public Law 100-4; Public Law 96-483; and Public Law 101-144.
This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Regulations, Guidelines, And Literature
Grants for Construction of Treatment Works, Environmental Protection Agency (40 CFR Part 35, Subpart E (and Subpart I, applicable to grants awarded after May 12, l982); General Grant Regulations and Procedures, EPA (40 CFR Part 31); "Construction Grants 1985 (Guidelines for applicants and grantees)"; and Construction Grants Handbook of Procedures (Guidelines for Project Officers)." For these and other publications, please contact EPA's Office of Wastewater Management, Municipal Support Division, MC-4204M, 1200 Pennsylvania Ave., NW, Washington, DC 20460.