(a) Submission; contractual nature of approval by Administrator; agreement on eligible costs; single grant
(1) Each applicant for a grant shall submit to the Administrator for his approval, plans, specifications, and estimates for each proposed project for the construction of treatment works for which a grant is applied for under section
1281 (g)(1) of this title from funds allotted to the State under section
1285 of this title and which otherwise meets the requirements of this chapter. The Administrator shall act upon such plans, specifications, and estimates as soon as practicable after the same have been submitted, and his approval of any such plans, specifications, and estimates shall be deemed a contractual obligation of the United States for the payment of its proportional contribution to such project.
(2) Agreement on eligible costs.—
(A) Limitation on modifications.—
Before taking final action on any plans, specifications, and estimates submitted under this subsection after the 60th day following February 4, 1987, the Administrator shall enter into a written agreement with the applicant which establishes and specifies which items of the proposed project are eligible for Federal payments under this section. The Administrator may not later modify such eligibility determinations unless they are found to have been made in violation of applicable Federal statutes and regulations.
(B) Limitation on effect.— Eligibility determinations under this paragraph shall not preclude the Administrator from auditing a project pursuant to section
1361 of this title, or other authority, or from withholding or recovering Federal funds for costs which are found to be unreasonable, unsupported by adequate documentation, or otherwise unallowable under applicable Federal cost principles, or which are incurred on a project which fails to meet the design specifications or effluent limitations contained in the grant agreement and permit pursuant to section
1342 of this title for such project.
(3) In the case of a treatment works that has an estimated total cost of $8,000,000 or less (as determined by the Administrator), and the population of the applicant municipality is twenty-five thousand or less (according to the most recent United States census), upon completion of an approved facility plan, a single grant may be awarded for the combined Federal share of the cost of preparing construction plans and specifications, and the building and erection of the treatment works.
(f) Design/build projects
(1) Agreement
Consistent with State law, an applicant who proposes to construct waste water treatment works may enter into an agreement with the Administrator under this subsection providing for the preparation of construction plans and specifications and the erection of such treatment works, in lieu of proceeding under the other provisions of this section.
(2) Limitation on projects Agreements under this subsection shall be limited to projects under an approved facility plan which projects are
(A) treatment works that have an estimated total cost of $8,000,000 or less; and
(B) any of the following types of waste water treatment systems: aerated lagoons, trickling filters, stabilization ponds, land application systems, sand filters, and subsurface disposal systems.
(3) Required terms An agreement entered into under this subsection shall
(A) set forth an amount agreed to as the maximum Federal contribution to the project, based upon a competitively bid document of basic design data and applicable standard construction specifications and a determination of the federally eligible costs of the project at the applicable Federal share under section
1282 of this title;
(B) set forth dates for the start and completion of construction of the treatment works by the applicant and a schedule of payments of the Federal contribution to the project;
(C) contain assurances by the applicant that
(i) engineering and management assistance will be provided to manage the project;
(ii) the proposed treatment works will be an operable unit and will meet all the requirements of this subchapter; and
(iii) not later than 1 year after the date specified as the date of completion of construction of the treatment works, the treatment works will be operating so as to meet the requirements of any applicable permit for such treatment works under section
1342 of this title;
(D) require the applicant to obtain a bond from the contractor in an amount determined necessary by the Administrator to protect the Federal interest in the project; and
(E) contain such other terms and conditions as are necessary to assure compliance with this subchapter (except as provided in paragraph (4) of this subsection).
(4) Limitation on application
Subsections (a), (b), and (c) of this section shall not apply to grants made pursuant to this subsection.
(5) Reservation to assure compliance
The Administrator shall reserve a portion of the grant to assure contract compliance until final project approval as defined by the Administrator. If the amount agreed to under paragraph (3)(A) exceeds the cost of designing and constructing the treatment works, the Administrator shall reallot the amount of the excess to the State in which such treatment works are located for the fiscal year in which such audit is completed.
(6) Limitation on obligations The Administrator shall not obligate more than 20 percent of the amount allotted to a State for a fiscal year under section
1285 of this title for grants pursuant to this subsection.
(7) Allowance The Administrator shall determine an allowance for facilities planning for projects constructed under this subsection in accordance with section
1281 (l) of this title.
(8) Limitation on Federal contributions
In no event shall the Federal contribution for the cost of preparing construction plans and specifications and the building and erection of treatment works pursuant to this subsection exceed the amount agreed upon under paragraph (3).
(9) Recovery action
In any case in which the recipient of a grant made pursuant to this subsection does not comply with the terms of the agreement entered into under paragraph (3), the Administrator is authorized to take such action as may be necessary to recover the amount of the Federal contribution to the project.
(10) Prevention of double benefits
A recipient of a grant made pursuant to this subsection shall not be eligible for any other grants under this subchapter for the same project.
