rules of department of natural resources · title 10—department of natural resources division...

CODE OF STATE REGULATIONS 1JOHN R. ASHCROFT (1/29/19)Secretary of State

Rules ofDepartment of Natural Resources

Division 20—Clean Water CommissionChapter 4—Grants and Loans

Title Page

10 CSR 20-4.010 Construction Grant and Loan Priority System (Rescinded February 28, 2019) .....3

10 CSR 20-4.020 State Match Grant Program (Rescinded September 30, 2018)..........................3

10 CSR 20-4.021 State Construction Grant Program (Rescinded September 30, 2018)..................3

10 CSR 20-4.022 Industrial Development Program (Rescinded September 30, 2018) ...................3

10 CSR 20-4.023 State Forty Percent Construction Grant Program .........................................3

10 CSR 20-4.030 Grants for Sewer Districts and Certain Small Municipal Sewer Systems.............8

10 CSR 20-4.040 Clean Water State Revolving Fund General Assistance Regulation ....................9

10 CSR 20-4.041 Direct Loan Program.........................................................................17

10 CSR 20-4.042 Leveraged Loan Program (Rescinded February 28, 2019).............................18

10 CSR 20-4.043 Hardship Grant Program (Rescinded September 30, 2018)............................18

10 CSR 20-4.049 State Match to State Revolving Fund Loan Program(Rescinded September 30, 2018) ..........................................................18

10 CSR 20-4.050 Environmental Review .......................................................................18

10 CSR 20-4.060 Storm Water Assistance Regulation (Rescinded September 30, 2018) ...............21

10 CSR 20-4.061 Storm Water Grant and Loan Program ....................................................21

10 CSR 20-4.070 Sales Tax Exemption (Rescinded September 30, 2018) ................................24

Title 10—DEPARTMENT OFNATURAL RESOURCES

Division 20—Clean Water CommissionChapter 4—Grants and Loans

10 CSR 20-4.010 Construction Grant andLoan Priority System(Rescinded February 28, 2019)

AUTHORITY: section 644.026, RSMo 2000.Original rule filed Dec. 4, 1975, effectiveDec. 14, 1975. Rescinded: Filed Oct. 12,1979, effective July 11, 1980. Readopted:Filed March 11, 1983, effective Oct. 1, 1983.Amended: Filed March 9, 1984, effectiveOct. 1, 1984. Amended: Filed March 8,1985, effective Oct. 1, 1985. Amended: FiledMarch 10, 1986, effective Oct. 1, 1986.Amended: Filed March 10, 1987, effectiveOct. 1, 1987. Amended: Filed March 11,1988, effective Oct. 1, 1988. Amended: FiledNov. 14, 2007, effective Aug. 30, 2008.Rescinded: Filed June 13, 2018, effectiveFeb. 28, 2019.

10 CSR 20-4.020 State Match Grant Pro-gram(Rescinded September 30, 2018)

AUTHORITY: sections 644.026, RSMo Supp.1987 and 644.101, 644.106, 644.111 and644.121, RSMo Supp. 1991. Original rulefiled Oct. 12, 1982, effective April 15, 1983.Amended: Filed March 11, 1988, effectiveOct. 1, 1988. Amended: Filed Dec. 1, 1988,effective April 15, 1989. Rescinded: FiledDec. 29, 2017, effective Sept. 30, 2018.

10 CSR 20-4.021 State Construction GrantProgram(Rescinded September 30, 2018)

AUTHORITY: sections 644.026, RSMo Supp.1987, and 644.101, 644.106, 644.111 and644.121, RSMo Supp. 1991 and 644.116,RSMo 1986. Original rule filed Oct. 12,1982, effective April 15, 1983. Amended:Filed March 9, 1984, effective Oct. 1, 1984.Amended: Filed March 11, 1988, effectiveOct. 1, 1988. Rescinded: Filed Dec. 29,2017, effective Sept. 30, 2018.

10 CSR 20-4.022 Industrial DevelopmentProgram(Rescinded September 30, 2018)

AUTHORITY: sections 644.026, RSMo Supp.1987, 644.101, 644.106, 644.111 and644.121, RSMo Supp. 1991 and 644.116,RSMo 1986. Original rule filed Oct. 12,

1982, effective April 15, 1983. Amended:Filed March 8, 1985, effective Oct. 1, 1985.Amended: Filed March 11, 1988, effectiveOct. 1, 1988. Rescinded: Filed Dec. 29,2017, effective Sept. 30, 2018.

10 CSR 20-4.023 State Forty Percent Con-struction Grant Program

PURPOSE: This rule sets forth the require-ments and process of application for a stategrant for construction of wastewater treat-ment works and the terms and conditions forreceipt of this grant. This rule also clarifiesthe requirements, the types of facilities eligi-ble for grant funds and the grant amountavailable for eligible grantees.

(1) Applicability. This rule defines the mini-mum requirements which apply to all recipi-ents of assistance under the State Forty Per-cent Grant Program. The recipient mustsatisfy more stringent requirements, ifrequired to do so by state or local statutes,policies, rules, ordinances or orders.

(2) Grant Amount. With exception of pre-approved grant anticipation financing costs,the grant amount is limited to forty percent(40%) of the eligible project costs or two (2)million dollars, whichever is less.

(3) Eligible Applicants. (A) Eligible applicants must be a county,

public sewer district, public water supply dis-trict, municipality or combination of thesame.

(B) Eligible applicants are limited to thoseapplicants which do not qualify for a loan forthe total eligible project costs under 10 CSR20-4.042.

(C) Eligible applicants must have submit-ted a preliminary project proposal to the Mis-souri Water and Wastewater Review Commit-tee (MWWRC) and received an invitationfrom the MWWRC to apply for financialassistance.

(4) Definitions. The definitions of terms forthis rule are contained in 10 CSR 20-2.010and 10 CSR 20-4.040(2)(A)–(S).

(5) General Grant Requirements. (A) A construction permit and an operating

permit must be obtained in accordance with10 CSR 20-6.010–10 CSR 20-6.060.

(B) Acceptance of a grant constitutesagreement that cost overrun shall be borne bythe applicant.

(C) Provisions must be made for adequateinspection during construction by the grantee.

(D) No grant will be awarded to an appli-cant who is in noncompliance with the mon-itoring or reporting requirements of a validNational Pollutant Discharge EliminationSystem (NPDES) permit or who is not prop-erly operating or maintaining an existing sys-tem.

(E) Project cost eligibility is limited tothose listed in section (6) of this rule.

(6) Classification of Costs. The informationin this section represents policies and proce-dures for determining the eligibility of projectcosts for assistance under programs support-ed by the Forty Percent Grant Program.

(A) General. It is the policy of the com-mission that all project costs will be eligibleif they meet the following tests:

1. Reasonable and cost effective; 2. Necessary for the construction of an

operable wastewater facility includingrequired mitigation and are described in theapproved facility plan; and

3. Resolve water pollution problems inexistence prior to the date of grant applica-tion.

(B) Eligible Costs. Eligible costs include,at a minimum:

1. The reasonable costs of planning anddesign of a wastewater treatment system pro-ject.

2. The reasonable cost of servicesincurred during the building and initial oper-ation phase of the project to ensure that it isbuilt in conformance with the design draw-ings and specifications. Eligible constructionphase and initial operation phase services arelimited to—

A. Office engineering; B. Construction surveillance; C. Stakeout surveying; D. As-built drawings; E. Special soils/materials testing; F. Operation and maintenance manu-

al; G. Follow-up services and the cost of

start-up training for operators of mechanicalfacilities constructed by the project to theextent that these costs are incurred prior tothis department’s final inspection. Costs shallbe limited to on-site operator training tailoredto the facilities constructed or on- or off-sitetraining may be provided by the equipmentmanufacturer if this training is properly pro-cured;

H. User charge and sewer use ordi-nance; and

I. Plan of operation; 3. The cost of subagreements for con-

structing the facilities listed if the associatedproblems are not caused by inadequate oper-ation and maintenance practices:


Chapter 4—Grants and Loans 10 CSR 20-4

A. New interceptors; B. New pump stations; C. New wastewater treatment facili-

ties; D. Rehabilitation or upgrading of

treatment plants; E. Rehabilitation or replacement of

existing pump stations whichever is most costeffective;

F. Replacement of force mains andinterceptors as needed to reduceinfiltration/inflow;

G. Collection sewers; and H. The cost of sewer rehabilitation,

other than normal maintenance costs forreduction of infiltration/inflow (I/I) or asneeded to eliminate sanitary sewer overflowsor bypassing of treatment plants;

4. Change orders and the costs of meri-torious contractor claims for increased costsunder subagreements as follows:

A. Within the allowable scope of theproject;

B. Costs of equitable adjustments dueto differing site conditions; and

C. Settlements, arbitration awards andcourt judgments which resolve contractorclaims shall be allowable only to the extentthat they are not due to the mismanagementof the recipient;

5. Costs necessary to mitigate onlydirect, adverse, physical impacts resultingfrom building of the treatment works;

6. The cost of groundwater monitoringfacilities necessary to determine the possibil-ity of groundwater deterioration, depletion ormodification resulting from building the pro-ject;

7. Equipment, materials and supplies. A. The cost of a reasonable inventory

of laboratory chemicals and supplies neces-sary to initiate plant operations and laborato-ry items necessary to conduct tests requiredfor plant operation.

B. Cost of shop equipment installed atthe treatment works necessary to the opera-tion of the works.

C. The costs of necessary safetyequipment, provided the equipment meetsapplicable federal, state, local or industrysafety requirements.

D. The costs of mobile equipmentnecessary for the operation of the overallwastewater treatment facility, transmission ofwastewater or sludge or for the maintenanceof equipment. These items include:

(I) Portable standby generators; (II) Large portable emergency

pumps to provide pump-around capability inthe event of pump station failure or pipelinebreaks;

(III) Trailers and other vehicles

having as their purpose the transportationand/or application of liquid or dewateredsludge or septage; and

(IV) Replacement parts identifiedand approved in advance;

8. Costs of royalties for the use of orrights in a patented process or product withthe prior approval of the department;

9. Land or easements when used as anintegral part of the treatment process;

10. Purchase of private wastewater treat-ment systems, excluding collector and inter-ceptor sewers, provided the project willupgrade the existing facilities;

11. Force account work for constructionoversight; and

12. One hundred percent (100%) of thereasonable costs of a grant anticipation loanwill be eligible. Departmental approval mustbe obtained prior to securing the grant antic-ipation loan. Grant anticipation loan costswill be approved when they are needed forcash flow purposes for the period betweengrant award and the first grant payment fromthe department. The approved costs of grantanticipation notes will be in addition to theapproved grant amount.

(7) Project Selection Process. Priority will bebased upon the priority system established in10 CSR 20-4.010.

(A) The commission shall hold an annualcompetition for receipt of state grant assis-tance.

(B) Applicants must submit an applicationas described in section (8) of this rule on orbefore November 15 prior to the fiscal yearfor which state grant assistance is beingsought. Unsuccessful applicants requestingfunds during a given fiscal year shall be con-sidered for funding the next fiscal year andneed not reapply. This deadline may beextended by the commission if inadequateapplications are received.

(C) All qualified applications will be ratedand placed on the planning list in accordancewith 10 CSR 20-4.010(1)(A).

(D) The commission will select the highestrated projects for state grant assistance fromstate grant funds anticipated to be availableduring the upcoming fiscal year.

(E) As funds become depleted, staff willpresent recommendations to the commissionto fund or bypass an applicant’s project. Pro-jects failing to progress towards fundable sta-tus are subject to funding “bypass.” A pro-ject with fewer priority points may be placedahead of a project with a higher priority pointranking that is failing to make sufficientadvancement towards funding eligibility. Rec-ommendations to the commission to fund orbypass a project may be made at any com-

mission meeting throughout the fiscal year.Applicants whose projects are recommendedfor bypass or funding will be notified prior tothe commission meeting when their projectsappear on the agenda and will be allowedtime to present their points of view regardingthe proposed change in project status. Pro-jects that have awarded construction contractsand do not require financial assistance underthis regulation will be subject to bypass bythe commission.

(8) Application Requirements. Applicantsmust submit the documents listed in the fol-lowing subsections (8)(A)–(D) to be consid-ered for inclusion on the priority list. Somedocuments may be waived by the departmentif justified—

(A) An application form; (B) A project summary which includes:

1. The need for the project;2. The project components including

maps or drawings showing the project loca-tion and layout; and

3. A cost estimate including a costbreakdown;

(C) Draft financial capability analysis pre-pared in accordance with paragraph (9)(B)4.of this rule; and

(D) Proposed project schedule. The fol-lowing represents the minimum requirementsfor the project schedule:

1. Construction start defined as date ofissuance of notice to proceed;

2. Construction completion;3. Initiation of operation; and4. Project completion.

(9) Requirements Preceding Bidding Authori-zation. In addition to the requirements of sec-tion (8) of this rule, applicants must submitthe documents listed in subsection (9)(A)–(J)and obtain departmental approval prior toaward of grant funds.

(A) A facility plan prepared in accordancewith section (14) of this rule must be submit-ted within four (4) months of the applicationbeing placed on the fundable list.

(B) Resolution Identifying the AuthorizedRepresentative. Applicants for assistanceunder the State Forty Percent Grant Programshall provide a resolution by the governingbody designating a representative by nameauthorized to file the application for assis-tance.

(C) Plans and specifications.(D) Financial Capability Analysis. The

applicant, along with its application, shallsubmit written certification that the applicanthas analyzed the costs and financial impactsof the proposed facilities and, that the appli-cant has the capability to finance and manage

4 CODE OF STATE REGULATIONS (1/29/19) JOHN R. ASHCROFT

Secretary of State

10 CSR 20-4—DEPARTMENT OF NATURAL RESOURCES Division 20—Clean Water Commission

the construction and operation of the facili-ties. The wastewater facilities’ financial infor-mation sheet shall be submitted with the cer-tification.

(E) Draft engineering contract as describedin section (11).

(F) Draft user charge ordinance asdescribed in section (17).

(G) Draft sewer use ordinance as describedin section (17).

(H) Updated Project Schedule, if Re -quired. The following represents the mini-mum requirements for the project schedule:

1. Construction start defined as date ofissuance of notice to proceed;

2. Construction completion; 3. Initiation of operation; and 4. Project completion.

(I) Certification of Easements and RealProperty Acquisition. Recipients of assis-tance under the state grant program shall haveobtained title or option to the property oreasements or condemnation proceedings initi-ated for the project prior to award of a grant.

(J) Other information or documentationdeemed necessary by the applicant or thedepartment to ensure the proper expenditureof state funds.

(10) Accounting and Audits. Applicants arerequired to have an adequate financial man-agement system and audit procedure for theproject which provides efficient and effectiveaccountability and control of all property,funds and assets related to the project. Theapplicant’s financial system is subject to stateaudits to assure fiscal integrity of publicfunds.

(11) Architectural or Engineering Contracts.The following represents the minimumrequirements for the architectural or engi-neering contracts:

(A) General requirements for subagree-ments are, that they—

1. Be necessary for and directly relatedto the accomplishment of the project work;

2. Be in the form of a bilaterally execut-ed written agreement;

3. Be for monetary consideration; 4. Not be in the nature of a grant or gift; 5. State a time frame for performance; 6. State a cost which cannot be exceed-

ed except by amendment; and 7. State provisions for payment; and

(B) The nature, scope and extent of workto be performed during construction shouldinclude, but not be limited to, the following:

1. Preparing an operation and mainte-nance manual if required by the departmentand as defined in subsection (20)(B);

2. Assisting the recipient in bid letting;

3. Assisting the recipient subdivision inreviewing and analyzing construction bidsand making recommendations for award; and

4. Inspection during construction toensure conformance with the constructioncontract documents unless waived by thedepartment.

(12) Procurement of Engineering Services. Itis the policy of the commission that contractsfor architectural, engineering and land sur-veying services be negotiated on the basis ofdemonstrated competence, qualifications forthe type of services required and at fair andreasonable prices. The procedures listed insubsections (12)(B) and (C) are contained insections 8.285–8.291, RSMo.

(A) Use of the Same Architect or EngineerDuring Construction. If the recipient is satis-fied with the qualifications and performanceof the architect or engineer who provided anyor all of the facilities planning or design ser-vices for the project and wishes to retain thatfirm or individual during construction of theproject, it may do so without further evalua-tion of qualifications, provided the recipientselected the firm using at a minimum the pro-cedures outlined in subsections (12)(B) and(C) of this rule.

(B) Whenever a project requiring architec-tural, engineering or land surveying servicesis proposed, the owner shall evaluate currentstatements of qualifications and performancedata of prequalified firms on file togetherwith those that may be submitted by otherfirms regarding the proposed project. In eval-uating the qualifications of each firm, theowner shall use the following criteria:

1. The specialized experience and tech-nical competence of the firm with respect tothe type of services required;

2. The capacity and capability of thefirm to perform the work in question, includ-ing specialized services, within the time lim-itations fixed for the completion of the pro-ject;

3. The past record of performance of thefirm with respect to such factors as control ofcosts, quality of work and ability to meetschedules; and

4. The firm’s proximity to and familiar-ity with the area in which the project is locat-ed.

(C) Negotiation of a Contract. 1. The recipient shall list three (3) high-

ly qualified firms. The recipient then shallselect the firm considered best qualified andcapable of performing the desired work andattempt to negotiate a contract for the projectwith the firm selected.

2. For a basis for negotiations, the recip-ient shall prepare a written description of the

scope of the proposed services. 3. If the recipient is unable to negotiate

a satisfactory contract with the firm selected,negotiations with that firm shall be terminat-ed. The owner then shall undertake negotia-tions with another of the qualified firmsselected. If there is a failing of accord withthe second firm, negotiations with the firmshall be terminated. The recipient then shallundertake negotiations with the third quali-fied firm.

4. If the recipient is unable to negotiatea contract with any of the selected firms, therecipient shall reevaluate the necessary archi-tectural, engineering or land surveying ser-vices, including the scope of services and rea-sonable fee requirements, again compile a listof qualified firms and proceed in accordancewith the provisions of subsections (12)(B)and (C).

(13) Public Participation. The public must beallowed an opportunity to exchange ideaswith the applicant during project develop-ment. Public participation must be precededby timely distribution of information andmust occur sufficiently in advance of decisionmaking to allow the recipient to assimilatepublic views into action. At a minimum, therecipient must provide an opportunity forpublic participation, prior to approval of thefacility plan and draft user charge ordinance,at a public meeting at which the proposedalternative and the proposed user charge ratesare discussed. The recipient shall prepare atranscript, recording or other completerecord of the proceeding and submit it to thedepartment and make it available at no morethan cost to anyone who requests it. A copyof the record should be available for publicreview.

(14) Facility Planning. Facility plans or engi-neering reports must be in accordance with10 CSR 20–8, Wastewater Treatment DesignStandards and accepted engineering practice.

(A) Communities that do not propose toemploy a full-time operator, forty (40) hoursper week, must evaluate passive or easy tooperate treatment alternatives before consid-ering a mechanical activated sludge packageplant. Passive or easy to operate alternativesmay include, but are not limited to, enhancednatural systems, submerged fixed film sys-tems, sand filters, and recirculating pea grav-el filters.

(B) Wastewater treatment facilities shallprovide for meeting the effluent limitations asdetermined by the department in an evalua-tion of the application of 10 CSR 20-7.015and 10 CSR 20-7.031 to the proposed dis-charge.

(C) The facility plan for a community that



experiences sanitary sewer overflows (SSO)must address eventual elimination of the over-flows. The project under review does nothave to achieve the goal of SSO elimination.The facility plan may provide for eliminationof the sanitary sewer overflows at some pointin the future and be in compliance with anypermit or enforcement schedules.

(D) An estimate of the average user chargeincluding documentation of the basis of theestimate.

(E) An evaluation of the impact of the pro-posed project on the environment is required.

(15) Design. Design of the project will be inconformance with accepted engineering prac-tices and the current Waste Treatment DesignGuide, 10 CSR 20-8. A preliminary designsubmittal, including the design criteria andfacilities layout sheet, may be required atapproximately the twenty percent (20%)design stage.

(16) Intermunicipal Agreements. If the pro-ject serves two (2) or more public entities, theapplicant shall submit executed agreements orcontracts between the public entities for thefinancing, construction and operation of theproposed treatment facilities.

(17) User Charge and Sewer Use Ordinance.Recipients are required to adopt and imple-ment, for the useful life of the treatmentworks, approved user charge and sewer useordinances.

(A) The user charge system must bedesigned to produce adequate revenuesrequired for the operation and maintenance,including a reserve for replacement. Eachuser charge system must include an adequatefinancial management system that will accu-rately account for revenues generated by thesystem, debt service and expenditures foroperation and maintenance based on an ade-quate budget identifying the basis for deter-mining the annual operation and maintenancecosts and the costs of personnel, material,energy and administration. The system shallprovide for an annual review of charges. Asystem shall be adopted by all political subdi-visions receiving service from the recipient.

(B) The sewer use ordinance shall prohibitany new connections from inflow sources intothe treatment works and require that newsewers and connections to the treatmentworks are properly designed and constructed.The ordinance shall also require that allwastewater introduced into the treatmentworks not contain toxic or other pollutants inamounts or concentrations that endanger pub-lic safety and physical integrity of the treat-ment works cause, violation of effluent orwater quality limitations, preclude the selec-

tion of the most cost-effective alternative forwastewater treatment and sludge disposal orinhibit the performance of a pretreatmentfacility. The ordinance shall require the recip-ient to notify all potential users of serviceavailability and that all users shall connect tothe system within ninety (90) days of noticeof service availability.

(C) At ninety percent (90%) constructioncompletion, the final user charge and seweruse ordinances, as approved, shall be imple-mented.

(18) Specifications. The construction specifi-cations must contain the features listed insubsections (18)(A)–(M).

(A) The project must be advertised forthirty (30) days between the time the notice ispublished and when bids are opened. Thepublic notice should be published in an areanewspaper of general circulation and/or con-tractors’ publications.

(B) In accordance with section 71.140,RSMo, preference shall be given to Missouriproducts.

(C) Pursuant to section 34.076, RSMo, apreference shall be given to those personsdoing business as Missouri firms, corpora-tions or individuals, or which maintain Mis-souri offices or places of business, when thequality of performance promised is equal orbetter and the price quoted is the same orless. In addition, in order for a nondomicil-iary bidder to be successful, his/her bid mustbe that same percentage lower than a domi-ciliary Missouri bidder’s bid as would berequired for a Missouri bidder to successful-ly bid in the nondomiciliary’s state. Any bid-der domiciled outside the boundaries of Mis-souri shall submit an audited financialstatement as would be required of a Missouridomiciled contractor or bidder on a bid beinglet in the domiciliary state of that contractoror bidder.

(D) The proposal form must contain anondiscrimination statement.

(E) Each bidder must furnish a bid guar-antee equivalent to five percent (5%) of thebid.

(F) The proposal must fully explain thebasis for determining the low bidder andinclude a statement that the contract will beawarded to the lowest responsive, responsiblebidder.

(G) The specifications must state that whenmanufacturers’ names are used they are usedto establish a standard and the words orequal, if not stated, are implied.

(H) The specifications must contain a pro-vision for the maximum calendar or workdays allowed for completion of the project.

(I) The specifications must allow for repre-

sentatives of the Department of NaturalResources to have access to the work wher-ever it is in preparation or progress.

(J) The specifications shall require the con-tractor to furnish a performance and a pay-ment bond each in an amount at least equal toone hundred percent (100%) of the contractprice as security for the faithful performanceof his/her contract and for the payment of allpersons performing labor on the project andfurnishing materials in connection with theproject under this contract as set forth in thestandard form of performance/payment bondincluded in the contract documents. The sure-ty on this bond shall be a duly authorizedsurety company satisfactory to the owner.

(K) State wage determinations must beincluded in the specifications.

(L) The specifications must include a salestax exemption clause consistent with the Mis-souri State Sales Tax Law, section144.030(15), RSMo.

(M) The specifications must include thefollowing statement: “The owner shall makepayment to the contractor in accordance withsection 34.057, RSMo.”

(19) Bidding Requirements. (A) Each contract shall be awarded after

formal advertising. (B) Departmental concurrence with con-

tract award must be obtained prior to actualcontract award. Recipients shall notify thedepartment in writing of each proposed con-struction contract which has an aggregatevalue over twenty-five thousand dollars($25,000). The recipient shall notify thedepartment within ten (10) calendar daysafter the bid opening for each constructionsubagreement. The notice shall include:

1. Publisher’s affidavit of advertising; 2. Tabulation of bids; 3. Low bid and/or proposal the recipient

wishes to accept; 4. Recipient’s recommendation of

award; 5. Any addenda not submitted previous-

ly and bidder acknowledgment of all adden-da;

6. Copy of the bid bond; 7. One (1) set of as-bid specifications; 8. Missouri domestic products certifica-

tion if applicable; and 9. Revised financial capability work-

sheet and certification if bids exceed prebidestimates by more than fifteen percent (15%).

(20) Operation and Maintenance. (A) Operation and Maintenance Manual.

The recipient must make provision satisfacto-ry to the department for assuring effectiveoperation and maintenance of the constructed


Secretary of State


project throughout its design life. If requiredby the department, recipients of assistance forconstruction of mechanical facilities mustdevelop an operation and maintenance manu-al. The operation and maintenance manualmust be submitted by eighty percent (80%)construction completion before final paymentcan be made.

(B) Start-Up Training. At fifty percent(50%) construction, a start-up training pro-posal (if required) and proposed follow-upservices contract must be submitted andapproved by ninety percent (90%) construc-tion completion.

(C) Wastewater Operator. The recipientmust make provision satisfactory to thedepartment for assuring that qualifiedwastewater works operating and maintenancepersonnel are hired in accordance with anapproved schedule. Qualified personnel shallbe those meeting the requirements establishedunder 10 CSR 20-9.020.

(21) Progress Payments to Contractors. (A) It is the commission’s policy that

recipients should make prompt progress pay-ments to prime contractors and prime con-tractors should make prompt progress pay-ments to subcontractors and suppliers foreligible construction, supplies and equipmentcosts.

1. For purposes of this section, progresspayments are defined as follows:

A. Payments for work in place; and B. Payments for materials or equip-

ment which have been delivered to the con-struction site or which are stockpiled in thevicinity of the construction site in accordancewith the terms of the contract, when condi-tional or final acceptance is made by or forthe recipient. The recipient shall assure thatitems for which progress payments have beenmade are adequately insured and are protect-ed through appropriate security measures.

(B) Appropriate provisions regardingprogress payments must be included in eachcontract and subcontract.

(C) Retention From Progress Payments.The recipient may retain a portion of theamount otherwise due the contractor. Theamount the recipient retains shall be in accor-dance with section 34.057, RSMo.

(22) Approval and Payment of Grants Madeand Amended Between March 4, 2007 andAugust 30, 2007.

(A) The applicant shall be notified by thedepartment when the grant is awarded.

(B) Full payment under the grant shall bemade at the time of the department’s receiptof the executed grant award or grant amend-ment. The following provisions shall apply:

1. The grantee shall establish a separateescrow account with a bank as defined inChapter 409, section 409-1.102, RSMo;

2. The full grant amount, less any pay-ments processed prior to the date of this rule,will be paid to the grantee for deposit intothe grantee’s established escrow account;

3. Grant funds in the escrow accountmay be used to pay up to forty percent (40%)of the costs of section (6) of this rule; and

4. The grantee shall submit the bankstatement of the escrow account monthly,within thirty (30) days of the end of themonth. If the monthly statement indicatesthat funds were withdrawn, the grantee shallsubmit copies of the invoices to document thecosts.

(C) Withdrawals at no time shall exceedforty percent (40%) of the eligible projectcost incurred at the time the withdrawal ismade. Final grant amount will be adjusted toreflect the actual project costs as determinedby the invoices submitted by the grantee.

(D) The department will verify projectcompletion after a final inspection by thedepartment has been conducted.

(E) An audit to verify expenditure of grantfunds may be made by the department afterthe completion of the approved project. Anyfunds found not expended for purposes listedin section (6) of this regulation will be recov-ered in addition to any applicable penalties.

(23) Approval and Payment of Grants Madeafter August 30, 2007.

(A) The applicant shall be notified by thedepartment when the grant is awarded.

(B) The department may elect to make fullpayment under the grant at the time of thedepartment’s receipt of the executed grantaward or grant amendment. Grantees whoreceive full payment shall comply with thefollowing provisions:


2. The full grant amount, less any pay-ments processed prior to the date of this rule,will be paid to the grantee for deposit into thegrantee’s established escrow account;

3. Grant funds in the escrow accountmay be used to pay up to forty percent (40%)of the costs of section (6) of this rule;

4. The bank account may earn interest;however, all withdrawals from the accountmust be documented with eligible invoices.If the project costs are inadequate to with-draw all the funds in the account, the balancemust be refunded;

5. The grantee shall submit the bankstatement of the escrow account monthly,within thirty (30) days of the end of the

month. If the monthly statement indicatesthat funds were withdrawn, the grantee shallsubmit copies of the invoices to document thecosts; and

6. Withdrawals at no time shall exceedforty percent (40%) of the eligible projectcost incurred at the time the withdrawal ismade. Final grant amount will be adjusted toreflect the actual project costs as determinedby the invoices submitted by the grantee.

(C) If the department elects to make grantpayments rather than fund the full grant, pay-ments can be requested no more frequentlythan monthly. The department will provide apayment form for the grantee to use. Thepayment request must be supported by invoic-es that document the costs incurred.

(D) The department will verify projectcompletion after a final inspection by thedepartment has been conducted.

(E) Any funds remaining in the escrowaccount three (3) years after the date of theinitial grant payment will be recovered by thedepartment. On grants that are paid incre-mentally by the department, no payments willbe made after three (3) years from the initialgrant award acceptance.

(F) An audit to verify expenditure of grantfunds may be made by the department afterthe completion of the approved project. Anyfunds found not expended for purposes listedin section (6) of this regulation will be recov-ered in addition to any applicable penalties.

(24) If at any time during the twenty (20)-year design life of the facility(ies) fundedunder this rule is sold, either outright or oncontract for deed, to other than a politicalsubdivision of the state, the state shall receivereimbursement of the grant funds. The totalamount of grant funds to be reimbursed shallbe based on a twenty (20)-year straight-linedepreciation. Grant funds to be reimbursedshall become due and payable upon transferof ownership of the facility(ies).

AUTHORITY: section 644.026, RSMo Supp.2000.* Original rule filed April 2, 1990,effective Nov. 30, 1990. Amended: Filed Sept.4, 1991, effective Feb. 6, 1992. Amended:Filed April 14, 1994, effective Nov. 30, 1994.Amended: Filed March 1, 1996, effectiveNov. 30, 1996. Amended: Filed June 24,1999, effective March 30, 2000. Emergencyamendment filed Feb. 1, 2007, effectiveMarch 4, 2007, expired Aug. 30, 2007.Amended: Filed March 14, 2007, effectiveOct. 30, 2007.

*Original authority: 644.026, RSMo 1972, amended1973, 1987, 1993, 1995, 2000.



10 CSR 20-4.030 Grants for Sewer Dis-tricts and Certain Small Municipal SewerSystems

PURPOSE: This rule defines the depart-ment’s grant eligibility and a means ofadministering the state funds appropriatedfor rural community and sewer district sani-tary sewer collection systems by definingrural communities and sewer districts pur-suant to sections 640.600, 640.605, 640.615,and 640.620, RSMo.

(1) Grant Application Requirements.(A) The applicant must first apply with the

agency or other financial source which is tofurnish the primary financial assistance, andafter the amount of that assistance has beendetermined, an application for a grant underthis rule may be made to and processed by thedepartment. An application for a grant shallbe submitted on forms provided by thedepartment and supported by the necessarydocuments and forms from other state andfederal grant or lending agencies or privatelending agencies to enable the department toestablish eligibility for grant funds.

(B) The project for which the grant appli-cation is submitted shall comply with appro-priate state and local laws, rules, and ordi-nances.

(C) The grant application packet shall con-tain the information identified below:

1. The preliminary engineering coststudy for the proposed project including, butnot limited to, the following items: develop-ment and administration costs; land, struc-tures, right-of-way costs; legal costs; engi-neering costs; interest costs; equipment costs,contingencies; other costs; total project costs;and other information as required in rule 10CSR 20-8.110;

2. Information required to determine thecost per contracted connection of the pro-posed project;

3. The median household income of theresidents in the district or community; asdetermined by the most recent decennial cen-sus or by an income survey overseen by astate or federal agency;

4. Information required to determine theratio of contracted users to potential users;

5. The number of acres being protectedfor any source water protection project; and

6. Demonstration of recipient’s legal,institutional, managerial, and financial capa-bility to ensure adequate operation and main-tenance of the wastewater treatment worksthroughout recipient’s jurisdiction.

(2) Eligibility Requirements.(A) Grants shall be limited to municipal

sewer systems, certain public water supplydistricts or public sewer districts of less thanten thousand (10,000) population.

(B) Grants awarded under this regulationcan be used to provide collection sewers tounsewered areas.

(C) Grants awarded under this regulationcan be used to fund costs incurred to meetmore stringent operating permit requirementswhen those increased permit requirementsare attributable to changes in, or the imple-mentation of, the state water quality policiesor state water quality standards.

(D) Grants will be the lesser of the perconnection amount specified in section640.620, RSMo, fifty percent (50%) of theeligible costs of the improvements, or fivehundred thousand dollars ($500,000).

(E) Grants shall be used for the followingcosts:

1. Construction costs for the installationof new sewer collection lines, lift stations,and associated facilities required to serve anunsewered area. House laterals are not eligi-ble;

2. Construction costs for the installa-tion, rehabilitation, or upgrade of a wastewa-ter treatment facility as specified in subsec-tion (2)(C);

3. Engineering services and other ser-vices incurred in preparing the design draw-ings and specifications for the project. Suchservices must have been procured in accor-dance with state law to be eligible costs.

(F) The ratio of contracted users to poten-tial users must be at least seventy-five percent(75%).

(3) Grant Priorities. (A) Priorities for grants awarded under this

rule shall be established by the department.Preference will be given to those applicantswhose projects are partially funded throughother departmental grants or loans and/or toapplicants whose projected financial need isbased on potential compliance with addition-al pollution control measures. Additional pri-ority will be given based on readiness to pro-ceed with construction and documentedfinancial need.

(B) The establishment of priorities anddetermination of relative need will be coordi-nated with other state and federal grant andlending agencies.

(4) Approval and Payment of Grant Funds.(A) The grant award shall be made upon

receipt and approval of bid documents, exe-cuted contract documents, and demonstrationby the applicant that funding for the total pro-ject costs has been secured. The departmentmay elect to pay out the full grant amount at

the time of grant award or to make paymentsto the grantee based on the cash flow circum-stances of the state funds.

(B) If the department elects to make fullpayment of the grant amount, payment shallbe made at the time of the department’sreceipt of the executed grant award. The fol-lowing provisions apply:


2. The full grant award amount will bepaid to the grantee for deposit into thegrantee’s established escrow account;

3. Grant funds in the escrow accountmay be used to pay up to fifty percent (50%)of the costs of construction, equipment, andconstruction phase engineering as the costsare incurred. No funds will be withdrawn forconstruction costs of house laterals or forcosts that have been declared ineligible by thedepartment;

4. The grantee will submit the bankstatement of the escrow account monthly,within thirty (30) days of the end of themonth. If the monthly statement indicatesthat funds were withdrawn, the grantee mustsubmit copies of the invoices to document thecosts; and

5. The bank account may earn interest,however, all withdrawals from the accountmust be documented with eligible invoices. Ifthe project costs are inadequate to withdrawall the funds in the account, the balance mustbe refunded to the department.

(C) The department will provide a paymentrequest form for the grantee to use. The pay-ment request must be supported by invoicesthat document the costs incurred.

(D) The grant amount will be reduced, ifnecessary, to reflect actual project costs asdetermined by the invoices submitted by thegrantee.

(E) The department will verify projectcompletion after the final inspection by thedepartment has been conducted.

(F) Any funds remaining in the escrowaccount two (2) years after the date of the ini-tial grant payment will be recovered by thedepartment. On grants that are paid incre-mentally by the department, no payments willbe made after two (2) years from the initialgrant award acceptance, unless an extensionis granted by the department.

(G) An audit to verify expenditure of grantfunds may be made by the department. Anyfunds found not expended for the purposeslisted in subsection (2)(E) of this regulationwill be recovered.

(5) If at any time after initiation of operationsof the project, the wastewater treatment


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works funded under this rule, or any partthereof, is sold, either outright or on contractfor deed, to other than a political subdivisionof the state, the state shall receive reimburse-ment of the grant funds. The total amount ofgrant funds to be reimbursed shall be basedon a straight-line depreciation based on theoriginal costs of the facilities being sold, theoriginal loan repayment period or a twenty-(20-) year straight line depreciation schedulein the event of grant only funds, and adjustedfor the percentage of grant funds originallydisbursed to fund such facilities. Grant fundsto be reimbursed shall become due andpayable upon transfer of ownership of thefacility(ies).

AUTHORITY: sections 640.600 and 640.615,RSMo 2016 * Original rule filed Feb. 2,1983, effective July 1, 1983. Amended: FiledNov. 27, 1985, effective Feb. 25, 1986.Amended: Filed Aug. 30, 1989, effective Nov.27, 1989. Amended: Filed Sept. 4, 1991,effective Feb. 6, 1992. Amended: Filed April14, 1994, effective Nov. 30, 1994. Amended:Filed March 1, 1996, effective Nov. 30, 1996.Amended: Filed June 24, 1999, effectiveMarch 30, 2000. Emergency amendment filedFeb. 1, 2007, effective March 4, 2007,expired Aug. 30, 2007. Amended: FiledMarch 14, 2007, effective Oct. 30, 2007.Amended: Filed June 13, 2018, effective Feb.28, 2019.

*Original authority: 640.600, RSMo 1989 and 640.615,RSMo 1989, amended 1999.

10 CSR 20-4.040 Clean Water StateRevolving Fund General Assistance Regu-lation

PURPOSE: This rule sets forth requirementsfor the implementation of Title VI of the Fed-eral Water Pollution Control Act, as amend-ed, which authorizes the administrator of theEnvironmental Protection Agency to makecapitalization grants to states for financingthe Clean Water State Revolving Fund Pro-gram.

PUBLISHER’S NOTE: The secretary of statehas determined that the publication of theentire text of the material which is incorpo-rated by reference as a portion of this rulewould be unduly cumbersome or expen-sive. This material as incorporated by refer-ence in this rule shall be maintained by theagency at its headquarters and shall be madeavailable to the public for inspection andcopying at no more than the actual cost ofreproduction. This note applies only to thereference material. The entire text of the rule

is printed here.

(1) Applicability. This rule defines the min-imum requirements which apply to allrecipients of assistance under the CleanWater State Revolving Fund Program.Recipients of assistance are subject to therequirements of this regulation, unless oth-erwise specified. The recipient must satis-fy more stringent requirements, if requiredto do so by applicable federal laws, regula-tions, or guidance and state or localstatutes, policies, rules, ordinances, orders,or loan documentation. The Code of Feder-al Regulations referenced in the regulationare incorporated as published July 1, 2017.The regulations are incorporated by refer-ence without any later amendments ormodifications. To obtain a copy, contact theU.S. Government Printing Office at 732North Capitol Street, NW, WashingtonD.C., 20401, toll free at (866) 512-1800 orby visiting https://bookstore.gpo.gov. Toobtain the decennial median householdincome visit the U.S. Census BureauAmerican Fact Finder webpagehttps://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml, contact the U.S.Census Bureau, 4600 Silver Hill Road, Suit-land, MD 20746, or toll free at (800) 923-8282.

(2) Definitions. The definitions of terms for10 CSR 20-4.040–10 CSR 20-4.050 are con-tained in 10 CSR 20-2.010 and subsections(2)(A)–(N) of this rule.

(A) Assistance—The types of financialassistance allowed pursuant to 33 U.S.C.1383(d)(1)–(5).

(B) Clean Water State Revolving Fund(CWSRF)—The financial assistance programauthorized by Title VI of the Federal WaterPollution Control Act.

(C) Debt service—The costs associatedwith amortizing loans. These costs includeinterest charges, penalty charges, and repay-ment of principal.

(D) EIERA—State Environmental Improve-ment and Energy Resources Authority.

(E) Infiltration/inflow (I/I)—Groundwateror storm water which enters a sanitary sewersystem.

(F) Initiation of operation—The date whenthe first major constructed component iscapable of being used for its intended pur-pose.

(G) Intended Use Plan—A planning docu-ment, prepared by the Department of NaturalResources, that identifies the intended uses ofavailable funds.

(H) Loan—Unless stated otherwise, loangenerally refers to the agreement to lendmoney to an eligible recipient. The type of

agreement could be a loan agreement, bondpurchase agreement, or other debt instru-ment.

(I) Readiness to proceed—The submittal,by the applicant, of a complete engineeringreport/facility plan and documentation thatthe applicant has an acceptable debt instru-ment including any necessary funding com-mitments from other state and/or federalagencies. A detailed plan may be substitutedfor a facility plan for requests of planningfinancial assistance.

(J) Recipient—The recipient of financialassistance from programs supported orsecured by the Water and Wastewater LoanFund (WWLF), the Water and WastewaterLoan Revolving Fund (WWLRF), CWSRFbonds issued by EIERA, or state bond funds.

(K) Staff—Staff of the Missouri Depart-ment of Natural Resources.

(L) Treatment works—Refer to the defini-tion in Section 212 of the Federal Water Pol-lution Control Act.

(M) WWLF—Water and Wastewater LoanFund. State fund established by the state trea-surer pursuant to section 644.122, RSMo.

(N) WWLRF—Water and WastewaterLoan Revolving Fund. State fund under theWWLF into which repayments are held bythe state treasurer and from which new loansmay be made.

(3) Project Selection Process. This sectiondelineates the process by which the commis-sion selects projects for receipt of CWSRFassistance.

(A) The commission shall hold an annualcompetition for receipt of CWSRF assistance.This competition will be structured as fol-lows:

1. Applications postmarked or receivedby the Water Protection Program by the cal-endar date established in the annual applica-tion package will be considered for competi-tive placement on the annual Intended UsePlan. The deadline will be no sooner thansixty (60) days after the application packageis made available. Applications are valid fortwo (2) annual Intended Use Plan cycles.Applications received after the deadline maybe placed on a priority list as determined bythe commission based on availability offunds;

2. Applicants that have an outstandingloan balance with the department must be incompliance with the terms and conditions oftheir assistance agreements to be eligible foradditional funding;

3. All qualified applications will berated and placed on the appropriate list inaccordance with 10 CSR 20-4.040(29)(B);



4. The commission will select the pro-jects with the highest priority points, meetingreadiness to proceed criteria, for CWSRFassistance from CWSRF funds anticipated tobe available during the upcoming fiscal year;and

5. The commission may hold a separatecompetition for projects seeking fundingwhenever allowed by federal law and in theevent supplemental funds are provided.

(B) The commission may direct projectstoward specific financial assistance programscontained in 10 CSR 20-4. The commission’sdecisions shall be based upon the amount offinancial assistance funds available, theamount of financial assistance funds request-ed, the size of the project, the credit worthi-ness of the applicant, and the applicant’sauthority to incur long-term debt.

(4) Target Interest Rate (TIR). The TIR poli-cy shall be established by the Missouri CleanWater Commission in consultation with thedepartment and the EIERA based upon cur-rent economic factors, projected fund utiliza-tion, deposits in the WWLRF, and actual oranticipated federal capitalization grants, andbe published in the annual Intended UsePlan. The department reserves the right torefinance, assign, pledge, or leverage anyloans originated under this rule.

(A) A disadvantaged community mayreceive a reduction in the TIR as determinedby the commission. A disadvantaged commu-nity is defined, for the purpose of reducingthe TIR, as an applicant that—

1. Has a population of three thousandthree hundred (3,300) or less based on themost recent decennial census;

2. Has a median household income at orbelow seventy-five percent (75%) of the stateaverage median household income as deter-mined by the most recent decennial census orby an income survey overseen by a state orfederal agency; and

3. Has an average wastewater usercharge for five thousand (5,000) gallons thatis at least two percent (2%) of the medianhousehold income of the applicant, deter-mined by the decennial census or income sur-vey listed in (4)(A)2.

(B) Additional Subsidization. Additionalsubsidization (such as principal forgiveness,negative interest loans, grants, or the like)may be provided as the Federal Water Pollu-tion Control Act as amended, or any subse-quent federal act, requires or allows.

(C) In accordance with section603(d)(1)(A) of the Federal Water PollutionControl Act, the term of the assistance agree-ment shall be established per the provisionsin 10 CSR 20-4.041(8)(A).

(5) Loan Fees. The department may chargeannual loan administrative fees not to exceedone-half percent (0.5%) of the outstandingloan balance of each loan for loan origina-tion, loan servicing and administration of theprogram. Other loan expenses including, butnot limited to, cost of issuance, debt servicereserve and expenses charged by the payingagent will be paid by the recipient.

(6) Additional Administrative Fees Allowed.Additional administrative fees may beassessed by the department at the time theadministration fee is calculated for failure bya recipient to pay debt service on the loan orsubmit approved documents to the depart-ment (for example, operation and mainte-nance manuals, enacted user charge andsewer use ordinances, executed contract doc-uments) in accordance with the time framesprovided under the program agreemententered into by the recipient. The additionalfee will be an additional one-tenth percent(0.1%) per month that the recipient remainsdelinquent. The additional fee for delinquentdocuments will be collected only during theyear in which the document is not submitted.

(7) General CWSRF Assistance Require-ments. The commission will prioritize poten-tial CWSRF projects by assigning prioritypoints in accordance with the CWSRF Prior-ity Point Criteria established per subsection(29)(A) of this rule.

(A) Municipalities, counties, public seweror water districts, or both, political subdivi-sions or instrumentalities of the state, andcombinations of the same, or any entity eligi-ble pursuant to the Federal Water PollutionControl Act as amended, are eligible forCWSRF assistance. The recipient mustdemonstrate its legal, institutional, manageri-al, and financial capability to ensure adequateoperation and maintenance of the wastewatertreatment works throughout the recipient’sjurisdiction.

(B) Financial Disclosure. Applicants shallprovide upon request to the department andthe EIERA any detailed financial informationas may be required by the commission, thedepartment, the EIERA, or its financial orlegal consultants to determine the applicant’seligibility for the financial assistance.

(C) For equivalency projects, the recipientand its contractors must comply with allrequirements associated with funds providedunder 40 CFR 35.3145.

(D) If the department determines that anapplicant is in significant noncompliancewith a valid National Pollutant DischargeElimination System (NPDES) permit or Mis-souri State Operating Permit, the Federal

Water Pollution Control Act as amended, theMissouri Clean Water Law as amended, orimplementing regulations, then the depart-ment may refuse to provide financial assis-tance to such applicant, or require the appli-cant to reach a binding agreement regardingcorrective actions the applicant will take toaddress such noncompliance.

(E) All recipients are encouraged to retainthe services of a financial advisor who is reg-istered with the U.S. Securities ExchangeCommission.

(F) American Iron and Steel. Recipientswill need to keep supporting documentationto show that iron and steel products usedcomply with the requirements of 33 U.S.C.1388 and subsection (17)(N) of this ruleunless a waiver has been received.

(8) Application Requirements. Applicantsmust submit a completed application formincluding the information listed in subsec-tions (8)(A)–(C) to be included on the Intend-ed Use Plan. Potential applicants are strong-ly encouraged to meet with department staffprior to submitting an application.

(A) A project summary which includes:1. The need for the project;2. The project components, including

maps or drawings showing the project loca-tion and layout; and

3. A cost estimate including a costbreakdown.

(B) The most recent financial statement;and

(C) Proposed project schedule.

(9) Facility Planning. All facility plans mustbe in accordance with 10 CSR 20-8.110.

(A) Requirements for all projects are asfollows:

1. The most reasonable environmentallysound and implementable waste managementalternatives must be studied and evaluated.Proposed waste treatment management plansand practices shall provide for the most costeffective technology that can treat wastewaterand I/I to meet the current 10 CSR 20-7.015Effluent Regulations, and 10 CSR 20-7.031Water Quality Standards;

2. An estimate of the average usercharge including documentation for the basisof the estimate; and

3. An assessment of the environmentalconditions and impact of the proposed projecton the environment is required. The environ-mental review process and associated publicnotice requirements are contained in 10 CSR20-4.050. Additional public participationrequirements are outlined in subsections(14)(A) and (B).

(B) Recipients meeting the definition of


Secretary of State


municipality or intermunicipal, interstate orstate agency shall provide a certification withthe facility plan that it complies with cost andeffectiveness requirements found in Section602(b)(13) of the Federal Water PollutionControl Act.

(10) Additional Preclosing Requirements.(A) Submittal Deadline. All documents

necessary to provide assistance must be sub-mitted to the department in sufficient time, asagreed upon in the project schedule, to allowadequate time for review and approval priorto the loan closing date established by thedepartment.

(B) Final Document Submittal. Documentslisted in paragraphs (10)(B)1.–9. must besubmitted and accepted by the department:

1. Resolution identifying the authorizedrepresentative by name. Applicants shall pro-vide a resolution by the governing body des-ignating a representative authorized to file theapplication for assistance, reimbursementrequests, and act in behalf of the applicant inall matters related to the project;

2. Plans and specifications certified by aregistered professional engineer licensed inMissouri;

3. If engineering services are to be reim-bursed, an engineering contract as describedin section (12) and the appropriate procure-ment documentation as described in section(13);

4. If applicable, the design-build con-tract per section (26) and the appropriate pro-curement documentation;

5. Adopted user charge ordinance asdescribed in section (16);

6. Enacted sewer use ordinance asdescribed in section (16);

7. Proposed project schedule. The fol-lowing represents the minimum requirementsfor the project schedule:

A. Construction start defined as dateof issuance of notice to proceed;

B. Construction completion;C. Initiation of operation; andD. Project completion;

8. Certification of easements and realproperty acquisition. Recipients of assistanceunder the CWSRF shall have obtained title oroption to the property or easements or con-demnation proceedings initiated for the pro-ject prior to award of financial assistance; and

9. Other information or documentationdeemed necessary by the department toensure the proper expenditure of state funds.

(11) Accounting and Audits. Recipients arerequired to have a dedicated source for repay-ment of any loans and an adequate financialmanagement system and audit procedure for

the project which provides efficient andeffective accountability and control of allproperty, funds, and assets related to the pro-ject. The recipient’s financial system is sub-ject to state or federal audits to assure fiscalintegrity of public funds.

(A) Each recipient is expected to have anadequate accounting system for the projectwhich provides efficient and effectiveaccountability and control of all property,funds, and assets.

1. The recipient is responsible for main-taining a financial management system whichwill adequately provide for an accurate, cur-rent, and complete disclosure of the financialresults of each loan project. The proprietaryfund (business-related fund) accounting willbe in accordance with generally acceptedgovernment accounting principles and prac-tices, regardless of the source of funds.

2. An acceptable accounting systemincludes books and records showing all finan-cial transactions related to the constructionproject. The system must document allreceipt and disbursement transactions, andgroup them by type of account (for example,asset, revenue, expense, etc.) and by individ-ual expense account (for example, personnelsalaries and wages, subcontract costs, etc.).

3. The recipient shall maintain books,records, documents, and other evidence andaccounting procedures and practices, suffi-cient to reflect properly the amount, receipt,and disposition by the recipient for all assis-tance received for the project and the totalcosts of the project of whatever natureincurred for the performance of the projectfor which the assistance was awarded.

(B) Annual Audited Financial Statements.1. The recipient shall cause an audit of

the recipient’s annual financial report for thepreceding fiscal year to be made by a certi-fied public accountant or firm of certifiedpublic accountants employed for that pur-pose.

A. The annual audit will cover in rea-sonable detail the operation of the proprietarysystem during the fiscal year.

B. Within one hundred eighty (180)days after the end of the recipient’s fiscalyear, a copy of the annual financial reportwill be submitted to the department as long asthe recipient is in loan repayment status. Arecipient who cannot meet this deadline willnotify the department in writing of the delaywith the expected date of completion.

2. As required by federal law, a recipientmust comply with the provisions of OMB’sUniform Administrative Requirements, CostPrinciples, and Audit Requirements for Fed-eral Awards, as amended, governing the auditof state and local governments. When appli-

cable, a copy of this audit, including all writ-ten comments and recommendations of theaccountant, will be furnished to the depart-ment within the time period as provided inOMB’s Uniform Administrative Require-ments, Cost Principles, and Audit Require-ments for Federal Awards.

(12) Architectural or Engineering Contracts.The following represents the minimumrequirements for the architectural or engi-neering contracts:

(A) General Requirements for Contracts.1. Be necessary for and directly related

to the accomplishment of the project work.2. Be a lump sum or cost plus fixed fee

contract in the form of a bilaterally executedwritten agreement.

3. Be for monetary consideration.4. Not be in the nature of a grant or gift.5. State a time frame for performance.6. State a cost which cannot be exceed-

ed except by amendment.7. State provisions for payment; and

(B) The nature, scope, and extent of workto be performed during construction shouldinclude, but not be limited to, the following:

1. Preparing an operation and mainte-nance manual if required by the departmentand as defined in subsection (22)(A);

2. Assisting the recipient in bid letting;3. Assisting the recipient in reviewing

and analyzing construction bids and makingrecommendations for award; and

4. Inspecting during construction toensure conformance with the constructioncontract documents unless waived by thedepartment.

(C) Executed Engineering Contract Sub-mittal. The final approved executed engineer-ing contract must be submitted prior to thefirst reimbursement request.

(13) Procurement of Engineering Services.The procurement of engineering servicesshall be in accordance with sections 8.285through 8.291, RSMo, unless such engineer-ing services are performed as part of adesign-build contract pursuant to section(26).

(14) Public Participation. Public participationmust be preceded by timely distribution ofinformation and occur sufficiently in advanceof decision making to allow the recipient toassimilate public views into action. Publicparticipation shall include the following:

(A) Prior to approval of the draft usercharge ordinance, a public hearing, in accor-dance with section 250.233, RSMo, shall beconducted to specifically address the pro-posed user charge rates.



(B) Public notice of the hearing shall bepublished at least thirty (30) days prior to themeeting date. Public hearing notices shallinclude the date, time and place of the hear-ing. The notice may be for multiple hearingsand should include a separate starting timefor each hearing. The recipient shall preparea transcript, recording, or other completerecord of the proceeding and submit it to thedepartment and make it available at no morethan cost to anyone who requests it. A copyof the record should be available for publicreview; and

(C) Public participation requirements forenvironmental review are contained in 10CSR 20-4.050(4)(B)2.

(15) Intermunicipal Agreements. Prior toclosing, if the project serves two (2) or morepublic entities, the applicant shall submit exe-cuted agreements or contracts between thepublic entities for the financing, constructionand operation of the proposed treatment facil-ities. At a minimum, the agreement or con-tract will include:

(A) The operation and maintenanceresponsibilities of each party upon which thecosts are allocated;

(B) The formula by which the costs areallocated;

(C) The manner in which the costs areallocated;

(D) The term of the agreement, whichshall be, at a minimum, for the term of theloan;

(E) The method for resolution or arbitra-tion of disputes;

(F) The procedure for amending or rene-gotiating the agreement;

(G) The enforcement authority; and(H) The effective date of the agreement.

(16) User Charge and Sewer Use Ordinance.Recipients are required to maintain, for theuseful life of the treatment works, user chargeand sewer use ordinances approved by thedepartment. User charge and sewer use ordi-nances, at a minimum, shall be adopted priorto financing and implemented by the initia-tion of operation of the financed wastewatertreatment works.

(A) The user charge system must bedesigned to produce adequate revenuesrequired for the operation and maintenance,including a reserve for equipment replace-ment. A one hundred ten percent (110%)debt service reserve may be required. Thesewer user rate for operation and mainte-nance, including replacement, shall be pro-portional and based upon actual use. Eachuser charge system must include an adequatefinancial management system that will accu-rately account for revenues generated by the

system, debt service, and loan fee costs andexpenditures for operation and maintenance,including replacement based on an adequatebudget identifying the basis for determiningthe annual operation and maintenance costsand the costs of personnel, material, energy,and administration. The user charge systemshall provide that the costs of operation andmaintenance for all flow not directlyattributable to users be distributed equallyamong the users. The system shall provide foran annual review of charges. A user chargesystem shall be adopted by all municipalities(as defined in 40 CFR 35.2005(b)(27))receiving waste treatment services if requiredby federal law.

(B) Low Income Residential User Rates.1. Recipients may establish lower user

charge rates for low income residential usersafter providing for public notice and hearing,in accordance with section 250.233, RSMo.The criteria used to determine a low incomeresidential user must be clearly defined.

2. The costs of any user charge reduc-tions afforded a low income residential classmust be proportionately absorbed by all otheruser classes. The total revenue for operationand maintenance (including equipmentreplacement) of the facilities, and debt retire-ment must not be reduced as a result of estab-lishing a low income residential user class.

(C) The sewer use ordinance shall prohib-it any new connections from inflow sourcesinto the treatment works and require that newsewers and connections to the treatmentworks are properly designed and constructed.The ordinance also shall require that allwastewater introduced into the treatmentworks not contain toxic or other pollutants inamounts or concentrations that endanger pub-lic safety and physical integrity of the treat-ment works; cause violation of effluent orwater quality limitations; preclude the selec-tion of the most cost-effective alternative forwastewater treatment and sludge disposal; orinhibit the performance of a pretreatmentfacility. The ordinance shall require all usersto connect to the system within ninety (90)days of service availability.

(17) Specifications. The construction specifi-cations must contain the features listed in thefollowing:

(A) Recipients must incorporate in theirspecifications a clear and accurate descrip-tion of the technical requirements for thematerial, product, or service to be procured.The description, in competitive procure-ments, shall not contain features which undu-ly restrict competition unless the features arenecessary to test or demonstrate a specificthing or to provide for interchangeability ofparts and equipment. The description shall

include a statement of the qualitative natureof the material, product, or service to be pro-cured and, when necessary, shall set forththose minimum essential characteristics andstandards to which it must conform if it is tosatisfy its intended use;

(B) The recipient shall avoid the use ofdetailed product specifications if at all possi-ble;

(C) When in the judgment of the recipientit is impractical or uneconomical to make aclear and accurate description of the technicalrequirements, recipients may use a “brandname or equivalent” description as a meansto define the performance or other salientrequirements of an item to be procured. Therecipient need not establish the existence ofany source other than the named brand.Recipients must state clearly in the specifica-tion the salient requirements of the namedbrand to be met by offerers and that otherbrands may be accepted;

(D) Sole Source Restriction. A specifica-tion shall not require the use of structures,materials, equipment, or processes which areknown to be available only from a solesource, unless the department determines thatthe recipient’s engineer has adequately justi-fied in writing to the department that the pro-posed use meets the particular project’s min-imum needs;

(E) Experience Clause Restriction. Thegeneral use of experience clauses is restrictedto special cases.

1. The general use of experience clausesrequiring equipment manufacturers to have arecord of satisfactory operation for a speci-fied period of time or of bonds or deposits toguarantee replacement in the event of failureis restricted to special cases where the recip-ient’s engineer adequately justifies any suchrequirement in writing. Where this justifica-tion has been made, submission of a bond ordeposit shall be permitted instead of a speci-fied experience period. The period of timefor which the bond or deposit is requiredshall not exceed the experience period speci-fied.

2. The general use of experience clausesrequiring contractors to have a record of sat-isfactory experience for a specified period oftime or the completion of a specified numberof similar projects is restricted to specialcases where the recipient’s engineer ade-quately justifies any such requirement inwriting. Such justification shall not undulyrestrict competition or result in excessivebonding requirements. Where this justifica-tion has been made, submission of a bond ordeposit shall be permitted instead of the spec-ified experience. The period of time forwhich the bond or deposit is required shallnot exceed the experience period specified;

(F) Domestic Products Procurement Law.


Secretary of State


In accordance with sections 34.350–34.359,RSMo, the bid documents shall require allmanufactured goods or commodities used orsupplied in the performance of any contractor subcontract awarded on a loan project tobe manufactured, assembled, or produced inthe United States, unless obtaining Ameri-can- made products would increase the costof the contract by more than ten percent(10%);

(G) Bonding. On construction contractsexceeding fifty thousand dollars ($50,000),the bid documents shall require each bidderto furnish a bid guarantee equivalent to fivepercent (5%) of the bid price. In addition, thebid documents must require the successfulbidder to furnish performance and paymentbonds, each of which shall be in an amountnot less than one hundred percent (100%) ofthe contract price;

(H) State Wage Determination. The biddocuments shall contain the current prevail-ing wage determination issued by the Mis-souri Department of Labor and IndustrialRelations, Division of Labor Standards asestablished by sections 290.210 to 290.340,RSMo;

(I) Davis-Bacon Wage Requirements. Con-struction of treatment of works must complywith the Davis-Bacon requirements in accor-dance with 29 CFR 5.5. The current Davis-Bacon wage rate from the United StatesDepartment of Labor must be incorporated inthe bid documents;

(J) Small, Minority, Women’s, and LaborSurplus Area Businesses. The recipient shallcomply with 2 CFR 200.321 and 40 CFRpart 33;

(K) Debarment/Suspension. The recipientagrees to follow 2 CFR part 180 subpart Cand 2 CFR 200.213. The recipient acknowl-edges that doing business with any party list-ed on the List of Debarred, Suspended orVoluntarily Excluded Persons may result indisallowance of project costs under the assis-tance agreement;

(L) Right of entry to the project site mustbe provided for representatives of the Mis-souri Department of Natural Resources,Clean Water Commission, and the EIERA sothey may have access to the work wherever itis in preparation or progress. Proper facilitiesmust be provided for access and inspections;

(M) The specifications must include thefollowing statement: “The owner shall makepayment to the contractor in accordance withsection 34.057, RSMo.”; and

(N) American Iron and Steel. Specifica-tions shall adhere to requirements under 33U.S.C. 1388 for projects involving the con-struction, alteration, maintenance, or repairof a treatment works.

(18) Construction Equipment and Supplies

Procurement. This section describes the min-imum procurement requirements which therecipient must use under the CWSRF pro-gram. The recipient must conduct procure-ments in a manner that prohibits the use ofstatutorily or administratively imposed stateor local geographical preferences in the eval-uation of bids or proposals, except in thosecases where applicable federal statutesexpressly mandate or encourage geographicpreference.

(A) Small Purchases. A small purchase isthe procurement of materials, supplies, andservices when the aggregate amount involvedin any one (1) transaction does not exceedone hundred fifty thousand dollars($150,000). The small purchase limitation ofone hundred fifty thousand dollars($150,000) applies to the aggregate total ofan order, including all estimated handling andfreight charges, overhead, and profit to bepaid under the order. In arriving at the aggre-gate amount involved in any one (1) transac-tion, all items which should properly begrouped together must be included. Depart-ment concurrence and a minimum of three(3) quotes must be obtained prior to pur-chase.

(B) Bidding Requirements. This subsectionapplies to procurement of construction equip-ment, supplies, and construction services inexcess of one hundred fifty thousand dollars($150,000) awarded by the recipient for anyproject. No contract shall be awarded until thedepartment has approved the formal advertis-ing and bidding.

1. Formal advertising.A. Adequate public notice. The recip-

ient will cause adequate notice to be given ofthe solicitation by publication in newspapersof general circulation beyond the recipient’slocality (preferably statewide), constructiontrade journals, or plan rooms, inviting bidson the project work and stating the method bywhich bidding documents may be obtained orexamined.

B. Adequate time for preparing bids.A minimum of thirty (30) days shall beallowed between the date when public notice,publication, insertion, or document availablein a plan room is first published or providedand the date by which bids must be submit-ted. Bidding documents shall be available toprospective bidders from the date when thenotice is first published or provided. Recipi-ents are encouraged to directly solicit bidsfrom prospective bidders.

2. Bid document requirements and pro-cedure. The recipient shall prepare a reason-able number of bidding documents (invita-tions for bids) and shall furnish them uponrequest on a first-come, first-served basis.The recipient shall maintain a complete set ofbidding documents and shall make them

available for inspection and copying by anyparty. The bidding documents shall include,at a minimum:

A. A complete statement of the workto be performed or equipment to be suppliedand the required completion schedule;

B. The terms and conditions of thecontract to be awarded;

C. A clear explanation of the methodof bidding and the method of evaluation ofbid prices and the basis and method for awardof the contract or rejection of all bids;

D. Responsibility requirements andcriteria which will be employed in evaluatingbidders;

E. The recipient shall provide for bid-ding by sealed bid and for the safeguarding ofbids received until public opening;

F. If a recipient desires to amend anypart of the bidding documents during theperiod when bids are being prepared, adden-da shall be communicated in writing to allfirms which have obtained bidding docu-ments in time to be considered before the bidopening time. All addenda must be approvedby the department prior to award of the con-tract;

G. A firm which has submitted a bidshall be allowed to modify or withdraw its bidbefore the time of bid opening;

H. The recipient shall provide for apublic opening of bids at the place, date, andtime announced in the bidding documents.Bids received after the announced openingtime shall be returned unopened;

I. The recipient may reserve the rightto reject all bids. Unless all bids are rejectedfor good cause, award shall be to the lowest,responsive, responsible bidder.

(I) After bids are opened, the recip-ient shall evaluate them in accordance withthe methods and criteria set forth in the bid-ding documents.

(II) The recipient shall award con-tracts only to responsible contractors thatpossess the potential ability to perform suc-cessfully under the terms and conditions of aproposed contract. A responsible contractoris one that has financial resources, technicalqualifications, experience, organization, andfacilities adequate to carry out the contract ora demonstrated ability to obtain these. Therecipient shall have established protest provi-sions in the specifications. These provisionsshall not include the department as a partici-pant in the protest procedures.

(III) If the recipient intends to makethe award to a firm which did not submit thelowest bid, the recipient shall prepare a writ-ten statement before any award, explainingwhy each lower bidder was deemed non-responsible or nonresponsive and shall retainthe statements in its files.

(IV) The recipient shall not reject a




Secretary of State


bid as nonresponsive for failure to list or oth-erwise indicate the selection of subcontrac-tor(s) or equipment unless the recipient hasclearly stated in the solicitation documentsthat the failure to list shall render a bid non-responsive and cause rejection of a bid; and

J. Departmental concurrence withcontract award must be obtained prior toactual contract award. Recipients shall notifythe department in writing of each proposedconstruction contract which has an aggregatevalue over the one hundred fifty thousanddollars ($150,000). The recipient shall notifythe department within ten (10) calendar daysafter the bid opening for each constructionsub agreement. The notice shall include:

(I) Proof of advertising;(II) Tabulation of bids;(III) The bid proposal from the bid-

der that the recipient wishes to accept,including justification if the recommendedsuccessful bidder is not also the lowest bid-der;

(IV) Recommendation of award;(V) Any addenda not submitted

previously and bidder acknowledgment of alladdenda;

(VI) Copy of the bid bond or bidguarantee;

(VII) One (1) set of as-bid specifi-cations;

(VIII) Suspension/Debarment Cer-tification;

(IX) Certification that the recipienthas the necessary funds to complete the pro-ject if bids exceed available CWSRF funding;

(X) MBE/WBE Worksheet;(XI) Recipient’s statement that pro-

posed contractor(s) positive efforts,MBE/WBE utilization, or both, have beenreviewed and meet regulatory requirements;

(XII) Site certification, if not previ-ously submitted; and

(XIII) Certification of Non-segre-gated Facilities.

(19) Changes in Contract Price or Time. Thecontract price or time may be changed onlyby a change order. The value of any workcovered by a change order or of any claim forincrease or decrease in the contract priceshall be determined by the methods set forthin the following:

(A) Unit Prices.1. Original bid items. Unit prices previ-

ously approved are acceptable for pricingchanges of original bid items. However, whenchanges in quantities exceed fifteen percent(15%) of the original bid quantity and thetotal dollar change of that bid item is greaterthan twenty-five thousand dollars ($25,000),the recipient shall review the unit price todetermine if a new unit price should be nego-tiated.

2. New items. Unit prices of new itemsshall be negotiated;

(B) A lump sum to be negotiated; and(C) Cost Reimbursement. The actual cost

for labor, direct overhead, materials, sup-plies, equipment, and other services neces-sary to complete the work plus an amount tocover the cost of general overhead and profit.

(20) Progress Payments to Contractors.(A) It is the commission’s policy that

recipients should make prompt progress pay-ments to prime contractors and prime con-tractors should make prompt progress pay-ments to subcontractors and suppliers foreligible construction, supplies, and equip-ment costs.

1. For purposes of this section, progresspayments are defined as follows:

A. Payments for work in place; andB. Payments for materials or equip-

ment which have been delivered to the con-struction site or which are stockpiled in thevicinity of the construction site in accordancewith the terms of the contract, when condi-tional or final acceptance is made by or forthe recipient. The recipient shall assure thatitems for which progress payments have beenmade are adequately insured and are protect-ed through appropriate security measures.

(B) Appropriate provisions regardingprogress payments must be included in eachcontract and subcontract.

(C) Retention from Progress Payments.The recipient may retain a portion of theamount otherwise due the contractor. Theamount the recipient retains shall be in accor-dance with section 34.057, RSMo.

(21) Classification of Costs. The informationin this section represents policies and proce-dures for determining the eligibility of projectcosts for assistance under programs support-ed by this regulation and 40 CFR part 35 sub-part I, including Appendix A.

(A) General. All project costs will be eli-gible if they meet the following tests:

1. Reasonable and cost effective;2. Necessary for the construction of an

operable wastewater facility and other pro-jects, as defined in the Federal Water Pollu-tion Control Act as amended, includingrequired mitigation; and

3. Meet the eligibility limitations of theFederal Water Pollution Control Act asamended.

(B) Eligible Costs. Eligible costs include,at a minimum:

1. Engineering services and other ser-vices incurred in planning and in preparingthe design drawings and specifications for theproject. For invoice reimbursement, thedepartment must have a copy of the executedengineering contract for planning and design

of the project;2. The cost incurred pursuant to a con-

tract for building those portions of the projectwhich are for treatment of wastewater, cor-rection of I/I, or for new interceptor sewers.These costs include change orders within theallowable scope of the project and the costs ofmeritorious contractor claims for increasedcosts under sub agreements;

3. The reasonable cost of engineeringservices incurred during the building and ini-tial operation phase of the project to ensurethat it is built in conformance with the designdrawings and specifications. A registeredprofessional engineer licensed in Missouri ora person under the direction and continuingsupervision of a registered professional engi-neer licensed in Missouri must provideinspection of construction for the purpose ofassuring and certifying compliance with theapproved plans and specifications. Eligibleconstruction phase and initial operation phaseservice are limited to—

A. Office engineering;B. Construction surveillance;C. Stakeout surveying;D. As-built drawings;E. Special soils/materials testing; F. Operation and maintenance manu-

al;G. Follow-up services and the cost of

start-up training for operators of mechanicalfacilities constructed by the project to theextent that these costs are incurred prior tothis department’s final inspection. Costs shallbe limited to on-site operator training tailoredto the facilities constructed or on- or off-sitetraining may be provided by the equipmentmanufacturer if this training is properly pro-cured;

H. User charge and sewer use ordi-nance; and

I. Plan of operation;4. Demolition costs. The reasonable and

necessary cost of demolishing publicly ownedWWTF’s which are no longer utilized forwastewater collection, transportation, ortreatment purposes. The reasonable and nec-essary cost of demolishing privately-ownedWWTF’s which will be eliminated orreplaced by a publicly-owned treatmentworks if the proposed elimination wasaddressed in the approved facility plan. Gen-erally, these costs will be limited to thedemolition and disposal of the structures,removal and disposal of biosolids, final grad-ing, and seeding of the site;

5. Equipment, materials, and supplies.A. The cost of a reasonable inventory

of laboratory chemicals and supplies neces-sary to initiate plant operations and laborato-ry items necessary to conduct tests requiredfor plant operation.

B. Cost of shop equipment installed at



the treatment works necessary to the opera-tion of the works.

C. The costs of necessary safetyequipment, provided the equipment meetsapplicable federal, state, local, or industrysafety requirements.

D. The costs of mobile equipmentnecessary for the operation of the overallwastewater treatment facility, transmission ofwastewater or sludge, or for the maintenanceof equipment. These items include:

(I) Portable standby generators;(II) Large portable emergency

pumps to provide pump-around capability inthe event of pump station failure or pipelinebreaks; and

(III) Trailers and other vehicleshaving as their purpose the transportation,application, or both, of liquid or dewateredsludge or septage;

E. The cost of a reasonable inventoryof replacement parts identified and approvedin advance for new wastewater treatmentfacilities;

6. Land or easements required to com-plete the project. In order to be eligible forreimbursement, land must be purchased inaccordance with the Uniform Relocation andReal Property Acquisition Policies Act of1970, P.L. 91- 646, as amended. Certifica-tion by the recipient of compliance under thisAct is required;

7. The cost of I/I correction, other thannormal maintenance costs, and treatmentworks capacity adequate to transport and treatI/I;

8. Purchase of a private wastewater sys-tem, provided the project will eliminate orupgrade the existing facilities. The purchaseof a private wastewater system must be pur-chased in accordance with the Uniform Relo-cation and Real Property Acquisition PoliciesAct of 1970, P.L. 91- 646, as amended. Cer-tification by the recipient of complianceunder this Act is required;

9. The cost of preparing environmentaldocumentation required under 10 CSR 20-4.050;

10. Nonpoint source projects as identi-fied in the most current Missouri NonpointSource Management Plan;

11. Construction permit applicationfees, costs of issuance, capitalized interest,and contracted project administration costs;

12. Debt service reserve deposits;13. Collector sewers provided that they

meet the requirements of either—A. For major rehabilitation or

replacement of collection sewers that areneeded to assure the total integrity of the sys-tem; or

B. New collector sewers for existingcommunities where sufficient treatmentcapacity exists or adequate treatment will be

available when collectors are completed;14. Correction of combined sewer over-

flows;15. House laterals if they lie within the

public easement and will be maintained bythe recipient;

16. Storm water transport and treatmentsystems, and nonpoint source best manage-ment practices;

17. Third party costs, incurred under acontract, associated with preparing a fiscalsustainability plan;

18. Energy conservation projects thatreduce energy consumption including energyefficient equipment and certain renewableenergy facilities;

19. Water conservation projects thatreduce demand for publicly owned watertreatment works including water meters,water efficient appliances, education pro-grams, and incentive programs; and

20. Planning and assessment activitiesincluding asset management plans, capitalimprovement plans, integrated planning,long-term control plans, water or energyaudits, treatment works security and safetyplans, or environmental management sys-tems.

(C) Non-eligible costs include, but are notlimited to:

1. Costs for the purposes in paragraphs(21)(B)6. and (21)(B)8. that are in excess ofjust compensation based on the appraisedvalue or amount determined in condemna-tion;

2. Ordinary operating expenses of therecipient including salaries and expenses ofelected and appointed officials, preparation ofroutine financial reports and studies, EIERAapplication fees, and the state operating per-mit fees or other such permit fees necessaryfor the normal operation of the constructedfacility;

3. Preparation of applications and per-mits required by federal, state, or local regu-lations or procedures;

4. Administrative, engineering, andlegal activities associated with the establish-ment of special departments, agencies, com-missions, regions, districts, or other units ofgovernment;

5. Personal injury compensation ordamages arising out of the project;

6. Fines and penalties due to violationsof, or failure to comply with, federal, state,or local laws, regulations, or procedures;

7. Costs outside the scope of theapproved project;

8. Costs for which grant or loan pay-ments have been or will be received fromanother state or federal agency; and

9. Force account work.

(22) Operation and Maintenance.

(A) Operation and Maintenance Manual.The recipient must make provision satisfacto-ry to the department for assuring effectiveoperation and maintenance of the constructedproject throughout its design life. If requiredby the department, recipients of assistance forconstruction of mechanical facilities mustdevelop an operation and maintenance manu-al. The operation and maintenance manual, ifrequired, must be submitted by eighty percent(80%) construction completion.

(B) Start-Up Training. At fifty percent(50%) construction completion, a start-uptraining proposal (if required) and proposedfollow-up services contract must be submit-ted. This contract must be approved by nine-ty percent (90%) construction completion.

(C) Wastewater Operator. The recipientmust make provision satisfactory to thedepartment for assuring that qualifiedwastewater operator and maintenance person-nel are hired in accordance with an approvedschedule. Qualified personnel shall be thosemeeting the requirements established under10 CSR 20-9.020.

(23) Retention of Records. The recipient mustretain all records according to the retentionschedules established by Chapter 109,RSMo. A longer retention period may berequired under the loan documentation.

(24) Conflict of Interest. No employee, offi-cer, or agent of the recipient shall participatein the selection, award, or administration of asub agreement supported by state or federalfunds if a conflict of interest, real or appar-ent, would be involved.

(A) This conflict would arise when—1. Any employee, officer, or agent of the

recipient, any member of their immediatefamilies or their partners have a financial orother interest in the firm selected for a con-tract; or

2. An organization which may receive orhas been awarded a sub agreement employs,or is about to employ, any person under para-graph (24)(A)1.

(B) The recipient’s officers, employees, oragents shall neither solicit nor accept gratu-ities, favors, or anything of substantial mone-tary value from contractors, potential con-tractors, or other parties to sub agreements.

(25) Disposition of Treatment Works. Therecipient must receive the written consent ofthe department prior to the disposal of thewastewater treatment works or any materialpart thereof financed or refinanced with theproceeds of a loan.

(A) If at any time during the term of theloan a recipient desires to sell, lease, mort-gage, or otherwise dispose of the wastewatertreatment works or any part thereof, the


Secretary of State


recipient shall abide by the provisions for dis-posal as contained in the recipient’s loan doc-umentation between the recipient and thedepartment. Disposition of treatment worksto entities not listed in subsection (7)(A) ofthis rule will require immediate repayment ofassistance.

(B) During the loan repayment term, own-ership of facilities, equipment, and real prop-erty purchased under the program with a cur-rent value in excess of five thousand dollars($5,000) may be transferred only with writ-ten permission of the department.

(C) If at any time after initiation of opera-tions of the project, the wastewater treatmentworks funded with a CWSRF grant, or anypart thereof, is sold, either outright or oncontract for deed, to other than a politicalsubdivision of the state, the state shall receivereimbursement of the grant funds. The totalamount of grant funds to be reimbursed shallbe based on a straight-line depreciation basedon the original costs of the facilities beingsold, the original loan repayment period or a20-year straight-line depreciation schedule inthe event of grant only funds, and adjustedfor the percentage of grant funds originallydisbursed to fund such facilities. Grant fundsto be reimbursed shall become due andpayable upon transfer of ownership.

(26) Procurement of Design-Build Services.The procurement of design-build servicesshall be in accordance with section 67.5060,RSMo. Recipients that are exempt from sec-tion 67.5060, RSMo may also utilize design-build services if local ordinances or policiesallow design-build and the procurement of thedesign-build team considers both the qualifi-cations of the team and the project selectedmeets the cost effectiveness requirements ofsubsection (10)(B). Recipients seeking fundsfor a project utilizing design-build servicesmust notify the department with the recipi-ent’s CWSRF application. Recipients that uti-lize design-build services shall coordinateprocurement activities with the department toensure compliance with CWSRF require-ments. The department may restrict theamount of funding available for projects usingdesign-build services, if needed to complywith federal law and regulations.

(27) Plan of Study. Facility planning loans,not to exceed a five (5) year repayment term,or grants may be provided by the commissionto applicants with an existing publicly ownedwastewater system. Applicants that desire toreceive a loan for facility planning must sub-mit a plan of study. The plan of study shouldinclude the following information (generallyin fifteen (15) pages or less):

(A) Maps of the planning area showingboundaries, political jurisdictions, river

basins and surface water bodies, and serviceareas of existing wastewater treatment facili-ties; NPDES permits; the existing popula-tion; a brief description of existing wastewa-ter facilities; and the communities and majorindustries served;

(B) The agencies and jurisdictions involvedin the planning. Include any joint resolutionsor agreements among jurisdictions that desig-nate a lead agency or official to serve asapplicant;

(C) The nature and scope of planning,including a description of the need for theproject, and facilities planning tasks andschedule; and

(D) An itemized description of costs tocomplete tasks and an estimate of total costfor the facility plan.

(28) Fiscal Sustainability Plan. A fiscal sus-tainability plan as established in section603(d)(1)(E) of the Federal Water PollutionControl Act, shall be prepared by the recipi-ent receiving a loan for a treatment worksrepair, replacement, or expansion. For pur-poses of this paragraph “loan” does notinclude an agreement where the departmentis purchasing an obligation (e.g. municipalbonds) from the recipient.

(29) Intended Use Plan.(A) The priority point criteria will be pub-

lished in draft form annually and be adoptedby the commission after a public commentperiod has been conducted. The adopted pri-ority point criteria will be published on thedepartment’s website.

(B) Priority Lists. Each year, following apublic hearing, the commission shall estab-lish priority lists for using future anticipatedstate and federal funding allocations. Theselists shall contain at a minimum several parts,as described in paragraphs (29)(B)1. through(29)(B)4. of this rule. These lists shallbecome effective annually with the adoptionof the Intended Use Plan. However, the com-mission may bypass projects on these lists forfailure to proceed to grant award or loan clos-ing in an expeditious manner.

1. Fundable List. The commission mayestablish one (1) or more fundable prioritylists which identify those projects which meetthe readiness to proceed criteria. The com-mission may specify fund allocations acrossmultiple fundable priority lists in order todistribute available funds statewide and meetCWSRF program goals. Projects will be list-ed in priority point order within each fund-able list.

2. Fundable Contingency Priority List.The fundable contingency priority list identi-fies those projects meeting the readiness toproceed criteria, however, there are insuffi-cient available funds. Projects will be listed in

priority point order regardless of the datewhich the readiness to proceed criteria aremet.

3. Contingency Priority List. The con-tingency priority list identifies those projectswhich may be considered for funding duringa given fiscal year if the applicant secures anacceptable debt instrument. Projects will notbe considered for the contingency priority listunless a complete facility plan has been sub-mitted for review.

4. Planning List. The planning list iden-tifies all potentially eligible grant or loan pro-jects not contained on a fundable or contin-gency priority list. Planning list projects mayadvance to the contingency or fundable lists,with commission approval, upon meeting thereadiness to proceed criteria.

(C) Modifications. After the commissionadopts the Intended Use Plan, it may modifythe priority lists or redistribute the availablefunds in accordance with paragraphs (29)(C)1.through (29)(C)4. of this rule. The commis-sion may only take this action after providingnotice to those projects directly affected.

1. Inadequate Allocations. If the actualfunding is less than the allocations anticipatedby the commission in the development of theIntended Use Plan, or if previous allocationsare reduced, the commission may find it nec-essary to reduce their commitments to projectson the fundable lists. The commission maytake formal action to reduce the number ofcommitments in accordance with subpara-graphs (29)(C)1.A. through (29)(C)1.C. ofthis rule.

A. The commission may reduce theamount of funds allocated to each purpose asshown in the Intended Use Plan.

B. The commission may remove thelowest priority projects from the fundablepriority lists, placing these projects on theappropriate contingency priority list in a posi-tion dictated by their priority relative to oth-ers on that contingency priority list.

C. The commission may bypass pro-jects on the fundable priority lists in accor-dance with paragraph (29)(C)3. of this rule.

2. Unanticipated and UncommittedFunds. If unanticipated or uncommitted fundsbecome available, the commission may takeformal action to distribute them in accor-dance with subparagraphs (29)(C)2.A.through (29)(C)2.C. of this rule.

A. The commission may use theunanticipated or uncommitted funds to movethe highest priority project(s) from contin-gency priority list to the proper fundable pri-ority list.

B. The commission may use the unan-ticipated or uncommitted funds to increasethe amount of funds allocated to the variouspurposes as shown in the Intended Use Plan.

C. The commission may use the



unanticipated or uncommitted funds toincrease the amount of funds allocated to pro-jects on the fundable priority list or to pro-vide increased assistance to projects whichhave already received assistance.

3. Project Bypass. The commission maybypass any project on the fundable priority listwhich is not, in the commission’s opinion,making satisfactory progress in satisfyingrequirements for assistance. Bypassed projectswill be removed from the fundable priority listand placed on the proper contingency priorityor planning list in a position dictated by thecommission. In determining whether a projectis making satisfactory progress in satisfyingthe requirements for assistance, the commis-sion shall use the criteria contained in sub-paragraphs (29)(C)3.A. through (29)(C)3.C.of this rule. The commission may reinstate anybypassed projects on the fundable priority listsafter first giving notice to applicants for thoseprojects on the contingency lists of the com-mission’s intent to reinstate bypassed projects.Funds released through project bypass will beconsidered uncommitted and available for dis-tribution in accordance with paragraph(29)(C)2. of this rule.

A. Any project on the fundable listsmay be bypassed if the applicant fails to sub-mit all documents required for assistance atleast sixty (60) days prior to the quarter forwhich assistance is anticipated.

B. The commission may use individu-al project schedules developed by the depart-ment to determine whether a project on thecurrent fundable list is making satisfactoryprogress at those times during the fiscal year.

C. Carryover projects may be auto-matically bypassed if they do not have alldocuments required for assistance submittedthree (3) months before the end of the feder-al fiscal year in which their applicationexpires.

4. Project Removal. The departmentwill remove projects from the contingency,fundable, or planning lists if they meet anyone (1) of the criteria stated in subparagraphs(29)(C)4.A. through (29)(C)4.E. of this rule.

A. The department will remove a pro-ject if it has received one (1) or more fundingcommitments necessary to cover the estimat-ed project cost or has been fully funded byother funding sources.

B. The department will remove a pro-ject if it is determined to be ineligible forfunding.

C. The department will remove pro-jects from these lists if directed by commis-sion action under paragraphs (29)(C)1. or(29)(C)3. of this rule.

D. The department will remove pro-jects from these lists if directed to do so bythe Environmental Protection Agency inaccordance with federal law.

E. The department will remove a pro-ject from these lists at the request of theapplicant.

AUTHORITY: sections 644.026, 644.101,and 644.121, RSMo 2016.* Original rulefiled Sept. 13, 1988, effective Feb. 14, 1989.Amended: Filed April 2, 1990, effective Sept.28, 1990. Emergency amendment filed July17, 1990, effective July 30, 1990, expiredNov. 26, 1990. Amended: Filed Sept. 4,1991, effective Feb. 6, 1992. Amended: FiledMarch 4, 1993, effective Sept. 9, 1993.Amended: Filed April 14, 1994, effective Nov.30, 1994. Amended: Filed March 1, 1996,effective Nov. 30, 1996. Amended: Filed May28, 2009, effective Feb. 28, 2010. Amended:Filed June 13, 2018, effective Feb. 28, 2019.

*Original authority: 644.026, RSMo 1972, amended 1973,1987, 1993, 1995, 2000, 2012, 2014; 644.101, RSMo1972, amended 1973, 1982, 1987, 1991, 1993, 1998,2000, 2009; and 644.121, RSMo 1972, 1973, 1987, 1991.

10 CSR 20-4.041 Direct Loan Program

PURPOSE: This rule sets forth the require-ments for implementation of direct loan pro-grams to be financed through the CleanWater State Revolving Fund program con-tained in 10 CSR 20-4.040 or the State DirectLoan Program.

(1) General. The department may make directloans by purchasing the general obligationbonds, revenue bonds, short-term notes, orother acceptable obligation of any qualifiedapplicant for the planning, design and/or con-struction of an eligible project. These loansshall not exceed the total eligible project costsas described in 10 CSR 20-4.040(21) less anyamounts financed by other means.

(2) Clean Water State Revolving Fund(CWSRF) Direct Loans. Funding for theseloans is from CWSRF loan repayments, fed-eral capitalization grants, or other funds. Theprovisions and requirements of the CleanWater State Revolving Fund General Assis-tance Regulation, 10 CSR 20-4.040, apply toloans awarded under this regulation.

(3) State Direct Loan Program. Funding forthese loans is from state bond funds and loanrepayments. The provisions and requirementsof the Clean Water State Revolving FundGeneral Assistance Regulation, 10 CSR 20-4.040, apply to loans awarded under this reg-ulation unless specifically provided for here-in. The following provisions of 10 CSR20-4.040 do not apply:

(A) 10 CSR 20-4.040(3) except for(3)(A)2.;

(B) 10 CSR 20-4.040(7);(C) 10 CSR 20-4.040(9)(A)3.;

(D) 10 CSR 20-4.040(9)(B);(E) 10 CSR 20-4.040(11)(B)2.;(F) 10 CSR 20-4.040(14);(G) 10 CSR 20-4.040(17)(I);(H) 10 CSR 20-4.040(17)(J);(I) 10 CSR 20-4.040(17)(N);(J) 10 CSR 20-4.040(18)(B)2.K.(XIII);(K) 10 CSR 20-4.040(28); and(L) 10 CSR 20-4.040(29).

(4) Funding Allocation.(A) CWSRF Direct Loans. The department

will follow 10 CSR 20-4.040.(B) State Direct Loans. After receiving

applications and the department determinesthat the application is complete and eligible,the department will take the applicationbefore the Clean Water Commission for allo-cation of funding.

(5) Interest Rates. The department shall usethe target interest rate (TIR) policy as estab-lished by the commission under section (4) of10 CSR 20-4.040.

(6) Reimbursement Terms.(A) The maximum reimbursement shall be

no more than the sum of all eligible costsincurred to date. Each payment request shallinclude the information listed in the followingparagraphs (6)(A)1.–3. and other informationdeemed necessary by the department toinsure proper project management and expen-diture of public funds:

1. Completed reimbursement requestform;

2. Construction pay estimates signed bythe construction contractor, the recipient, andthe consulting engineer, if applicable; and

3. Invoices for other eligible services,equipment, and supplies for the project.

(B) If the department is satisfied that thepayment request accurately reflects the eligi-ble cost incurred to date on the project, thedepartment will request that state payment beissued to the recipient.

(7) Trustee or Paying Agent. The departmentmay require the recipient to contract with atrustee or paying agent to provide the serviceslisted in subsections (7)(A)–(D) of this rule,along with other such services as detailed inthe participant’s escrow agreement.

(A) Maintain separate trust funds andaccounts for recipients;

(B) Disburse funds to recipients;(C) Collect principal and interest quarterly

payments from recipients; and(D) Provide monthly financial reports to

recipients.

(8) Amortization Schedules. The guidelinescontained in the following subsections (8)(A)–(D) are to be used to establish amortization


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schedules under this rule:(A) For recipients of a state direct loan, the

bonds, notes, or other obligations shall befully amortized for a period not longer thanthirty (30) years after initiation of operation.For CWSRF direct loan recipients, thebonds, notes, or other obligations shall befully amortized for a period not longer thanthe earlier of:

1. Thirty (30) years after initiation ofoperation;

2. The economic useful life of the pro-ject; or

3. Such other period of time that thedepartment determines is appropriate and inthe best interest of the CWSRF program.

(B) The principal payment frequency shallbe no less than annual and at least semi-annu-al for interest payments;

(C) The amortization schedule may eitherbe straight-line or declining schedules for theterm of the obligation. The department mayapprove an alternative amortization method ifdeemed appropriate;

(D) Repayment of principal shall begin notlater than one (1) year after initiation of oper-ation.

(9) Loan Fees. The department may chargeannual loan fees not to exceed one-half per-cent (.5%) of the outstanding loan balancefor state direct loans. CWSRF direct loanrecipients will be charged a fee on the loan inaccordance with 10 CSR 20-4.040(5).

(10) Additional Administrative Fees Allowed.Additional administrative fees may beassessed by the department at the time theadministration fee is calculated in accordancewith 10 CSR 20-4.040(6).

(11) Variations of Structure Permitted. Thisrule sets out the general format for the directloan programs. The commission, EIERA,and the department shall have the authority tomake specific refinements, variations, oradditional requirements as may be necessaryor desirable in connection with the efficientoperation of the direct loan program.

AUTHORITY: sections 644.026 and 644.122,RSMo 2016.* Original rule filed Sept. 13,1988, effective Feb. 14, 1989. Amended:Filed April 2, 1990, effective Sept. 28, 1990.Emergency amendment filed July 17, 1990,effective July 30, 1990, expired Nov. 26,1990. Amended: Filed March 4, 1993, effec-tive Sept. 9, 1993. Amended: Filed April 14,1994, effective Nov. 30, 1994. Amended:Filed March 1, 1996, effective Nov. 30, 1996.Amended: Filed June 24, 1999, effectiveMarch 30, 2000. Amended: Filed June 13,2018, effective Feb. 28, 2019.

*Original authority; 644.026, RSMo 1972, amended1973, 1987, 1993, 1995, 2000, 2012, 2014 and 644.122,RSMo 1987, amended 1991, 1993, 1998, 2000.

10 CSR 20-4.042 Leveraged Loan Program(Rescinded February 28, 2019)

AUTHORITY: section 644.026, RSMo Supp.1993. Original rule filed Sept. 13, 1988,effective Feb. 14, 1989. Amended: Filed April2, 1990, effective Sept. 28, 1990. Emergencyamendment filed July 17, 1990, effective July30, 1990, expired Nov. 26, 1990. Amended:Filed March 4, 1993, effective Sept. 9, 1993.Amended: Filed April 14, 1994, effective Nov.30, 1994. Rescinded: Filed June 13, 2018,effective Feb. 28, 2019.

10 CSR 20-4.043 Hardship Grant Program(Rescinded September 30, 2018)

AUTHORITY: sections 644.026 and 644.101,RSMo Supp. 1998. Original rule filed Nov. 3,1997, effective July 30, 1998. Amended: FiledJune 24, 1999, effective March 30, 2000.Rescinded: Filed Dec. 29, 2017, effectiveSept. 30, 2018.

10 CSR 20-4.049 State Match to StateRevolving Fund Loan Program (Rescinded September 30, 2018)

AUTHORITY: section 644.026, RSMo Supp.1993. Emergency rule filed Jan. 17, 1990,effective Jan. 29, 1990, expired May 28,1990. Original rule filed July 2, 1990, effec-tive Nov. 30, 1990. Amended: Filed Sept. 4,1991, effective Feb. 6, 1992. Rescinded:Filed Dec. 29, 2017, effective Sept. 30, 2018.

10 CSR 20-4.050 Environmental Review

PURPOSE: This rule establishes proceduresand requirements for environmental reviewsfor assistance from the Clean Water StateRevolving Fund program.

(1) General. The purpose of the environmen-tal review is to ensure that the project willcomply with applicable local, state, and fed-eral laws and rules relating to the protectionand enhancement of the environment. Basedupon the staff’s review, the director will makeformal determinations regarding the potentialsocial and environmental impacts of the pro-posed project. As necessary, the determina-tion will include mitigative provisions as acondition of the provision of financial assis-tance for construction. No financial assis-tance will be provided until a final environ-

mental determination has been made. Noth-ing in this rule shall prohibit any public, pri-vate, or governmental party from seekingadministrative or legal relief from the deter-minations of the director.

(2) Basic Environmental Determinations.There are three (3) basic environmentaldeterminations that will apply to projectsproposed to be implemented with assistancefrom the fund.

(A) Categorical Exclusion. The categoricalexclusion (CE) determination applies to cate-gories of projects that have been shown overtime not to entail significant impacts on thequality of the human environment.

1. Projects which meet any of the fol-lowing criteria may be categorically excludedfrom formal environmental review require-ments:

A. The project is directed solelytoward minor rehabilitation of existing facili-ties, functional replacement of equipment, ortoward the construction of related facilitiesadjoining the existing facilities that do notaffect the degree of treatment or the capacityof the works. Examples include infiltrationand inflow correction, rehabilitation of exist-ing equipment and structures, and the con-struction of small structures on existing sites;

B. The project is in a community ofless than ten thousand (10,000) populationand is for minor expansions or upgrading ofexisting treatment works or on-site disposalsystems are proposed; or

C. New underground sewer lines orconveyance structures located entirely inexisting rights-of-way that have been previ-ously disturbed and supported by appropriatedocumentation to verify rights-of-way loca-tion(s) and type(s) of previous disturbance.

2. CEs will not be granted for projectsthat entail—

A. The construction of new collectionlines located outside existing rights-of-way;

B. A new discharge or relocation ofan existing discharge;

C. An increase of more than thirtypercent (30%) in the volume or loading ofpollutants;

D. Provision of a capacity for a pop-ulation thirty percent (30%) or greater thanthe existing population;

E. Known or expected impacts to cul-tural resources, threatened or endangeredspecies, or other environmentally sensitiveareas; and

F. The construction of facilities thatare known or expected to be not cost-effec-tive or are likely to cause significant publiccontroversy.

(B) Finding of No Significant Impact/Envi-ronmental Assessment (FNSI/EA). TheFNSI/EA will be based upon an environmental



review by the staff supported by an environ-mental information document (EID) preparedby the recipient in conformance with guid-ance developed by the department. If aFNSI/EA is not appropriate, a public noticenoting the preparation of an environmentalimpact statement (EIS) will be required. Thedirector’s issuance of a FNSI/EA will bebased upon documentation that the potentialenvironmental impacts will not be significantor that they may be mitigated withoutextraordinary measures.

(C) Record of Decision The Record ofDecision (ROD) may only be based upon anEIS in conformance with the format andguidelines described in subsection (4)(C). AnEIS will be required when the director ofstaff determines any of the following:

1. The project will significantly affectthe pattern and type of land use or growthand distribution of the population;

2. The effects resulting from any struc-ture or facility constructed or operated underthe proposed action may conflict with localor state land use plans or policies;

3. The project may have significantadverse impacts upon—

A. Wetlands;B. Floodplains;C. Threatened and endangered species

or their habitats;D. Cultural resources including park

lands, preserves, other public lands, or rec-ognized scenic, recreational, archeological,or historic value; and

E. Prime farmland;4. The project will displace populations

or significantly alter the characteristics ofexisting residential areas; and

5. The project directly or indirectly (forexample, through induced development) mayhave significant adverse effect upon localambient air quality, local noise levels, surfaceand groundwater quantity or quality, fish,shellfish, wildlife, or their natural habitats.

(3) Construction Prior to EnvironmentalReview.

(A) A recipient may request advanceauthority to construct part of the proposedproject prior to completion of the necessaryenvironmental review when the part of theproject will—

1. Remedy a severe public health, waterquality or environmental problem immediate-ly;

2. Not preclude any reasonable alterna-tives identified for the complete system;

3. Not cause significant direct or indi-rect environmental impacts including thosewhich cannot be acceptably mitigated withoutcompleting the entire project; and

4. Not be highly controversial.(B) Based upon the review of the informa-

tion required by section (4) of this rule, thedirector will issue a FNSI/EA so conditionedas to prohibit construction of the remainder ofthe project until a complete environmentalreview has been performed and a subsequentenvironmental determination has been issued.

(4) Environmental Information Required forEnvironmental Review.

(A) Recipients seeking a CE will providethe director with sufficient documentation todemonstrate compliance with the criteria ofsubsection (2)(A). At a minimum, this willconsist of a—

1. Brief, complete description of theproposed project and its costs;

2. Statement indicating that the projectis cost-effective and that the recipient isfinancially capable of constructing, operat-ing, and maintaining the facilities; and

3. Plan map(s) of the proposed projectshowing—

A. The location of all constructionareas;

B. The planning area boundaries; andC. Any known environmentally sensi-

tive areas.(B) An EID must be submitted by those

recipients whose proposed projects do notmeet the criteria for a CE and for which thedirector has made a preliminary determina-tion that an EIS will not be required. Thedirector will provide guidance on both theformat and contents of the EID to potentialrecipients prior to initiation of facilities plan-ning.

1. At a minimum, the contents of anEID will include:

A. The purpose and need for the pro-ject;

B. Information describing the currentenvironmental setting of the project and thefuture environmental setting without the pro-ject;

C. The alternatives to the project asproposed;

D. A description of the proposed pro-ject;

E. The potential environmentalimpacts of the project as proposed includingthose which cannot be avoided;

F. The relationship between the short-term uses of the environment and the mainte-nance and enhancement of long-term produc-tivity;

G. Any irreversible and irretrievablecommitments of resources to the proposedproject;

H. Proposed mitigation measures tominimize the environmental impacts of theproject;

I. A description of public participa-tion activities conducted, issues raised, andchanges to the project which may be made as

a result of the public participation process;and

J. Documentation of coordinationwith appropriate governmental agencies.

2. Prior to the recipient’s adoption ofthe facilities plan, the recipient must hold apublic meeting or hearing on the proposedproject and the EID, and provide the directorwith a complete record of the meeting orhearing, including all EID reference docu-ments. The meeting or hearing must beadvertised at least thirty (30) days in advancein a local newspaper of general circulation.Included with the meeting record must be alist of all attendees with addresses, any writ-ten testimony and the recipient’s responses tothe issues raised.

(C) The format of an EIS will encouragesound analyses and clear presentation ofalternatives, including the no-action alterna-tive and the selected alternative and theirenvironmental, economic, and socialimpacts. The following format must be fol-lowed by the recipient unless the directordetermines there are compelling reasons todo otherwise:

1. A cover sheet identifying the recipi-ent, the project(s), the program throughwhich financial assistance is requested andthe date of publication;

2. An executive summary consisting of afive to fifteen (5–15) page summary of thecritical issues of the EIS in sufficient detailthat the reader may become familiar with theproposed project and its cumulative effects.The summary will include:

A. A description of the existing prob-lem;

B. A description of each alternative;C. A listing of each alternative’s

potential environmental impacts, mitigativemeasures, and any areas of controversy; and

D. Any major conclusions;3. The body of the EIS which will con-

tain the following information:A. A complete and clear description

of the purpose and need for the proposed pro-ject that clearly identifies its goals and objec-tives;

B. A balanced description of eachalternative considered by the recipient. Thedescriptions will include the size and locationof the facilities and pipelines, land require-ments, operation and maintenance require-ments, and construction schedules. The alter-native of no action will be discussed and therecipient’s preferred alternative(s) will beidentified. Alternatives that were eliminatedfrom detailed examination will be presentedwith the reasons for their elimination;

C. A description of the alternativesavailable to the department including:

(I) Providing financial assistance tothe proposed project;

(II) Requiring that the proposedproject be modified prior to providing finan-cial assistance to reduce adverse environmen-tal impacts or providing assistance with con-ditions requiring the implementation ofmitigative measures; and

(III) Not providing financial assis-tance;

D. A description of the alternativesavailable to other local, state, and federalagencies which may have the ability to issueor deny a permit, provide financial assistanceor otherwise affect or have an interest in anyof the alternatives;

E. A description of the affected envi-ronment and environmental consequences ofeach alternative including secondary andcumulative impacts. The affected environ-ment on which the evaluation of each alterna-tive will be based includes, as a partial list-ing, hydrology, geology, air quality, noise,biology, socioeconomics, land use, and cul-tural resources of the facilities planning area.The department will provide guidance, asnecessary, to the recipient regarding the eval-uation of the affected environment. The dis-cussion will present the total impacts of eachalternative in a manner that will facilitatecomparison. The effects of the no-actionalternative must be included to serve as abaseline for comparison of the adverse andbeneficial impacts of the other alternatives. Adescription of the existing environment willbe included in the no-action section to pro-vide background information. The detail inwhich the affected environment is describedwill be commensurate with the complexity ofthe situation and the significance of the antic-ipated impacts;

4. The draft EIS will be provided to alllocal, state, and federal agencies and publicgroups with an interest in the proposed pro-ject and be made available to the public forreview. The final EIS will include all objec-tions and suggestions made before and duringthe draft EIS review process along with theissues of public concern expressed by indi-viduals or interested groups. The final EISmust include discussions of any commentspertinent to the project or the EIS. All com-menters will be identified. If a comment hasled to a change in either the project or theEIS, the reason should be given. The depart-ment will always endeavor to resolve any con-flicts that may have arisen, particularlyamong permitting agencies, prior to theissuance of the final EIS. In all cases, thecomment period will be no less than forty-five (45) days;

5. Material incorporated into an EIS byreference will be organized into a supple-mental information document and be made

available for public review upon request. Nomaterial may be incorporated by referenceunless it is reasonably available for inspectionby interested persons within the commentperiods specified in paragraph (4)(C)4. andsubparagraph (4)(C)7.C.;

6. When an EIS is prepared by contrac-tors, either in the service of the recipient orthe department, the department will indepen-dently evaluate the EIS prior to issuance ofthe ROD and take responsibility for its scopeand contents. The staff who undertake thisevaluation will be identified under the list ofpreparers along with those of the contractorand any other parties responsible for the con-tent of the EIS; and

7. The public participation required foran EIS is extensive but, depending upon thenature and scope of the proposed project,should be supplemented by the recipient. Thefollowing requirements represent the mini-mum allowable:

A. Upon making the determinationthat an EIS will be required of a proposedproject, the department will distribute anotice of intent to prepare an EIS;

B. As soon as possible after the noticeof intent has been issued, the director willconvene a meeting of the affected federal,state, and local agencies, the recipient andother interested parties to determine thescope of the EIS. A notice of this scopingmeeting may be incorporated into the noticeof intent or prepared as in paragraph (4)(B)2.of this rule except that in no case will thenotification period be less than forty-five (45)days. As part of the scoping meeting, thedirector at a minimum will—

(I) Determine the significance ofissues and analyze in depth the scope of thosesignificant issues in the EIS;

(II) Identify the preliminary rangeof alternatives to be considered;

(III) Identify potential cooperatingagencies and determine the information oranalyses that may be needed from cooperat-ing agencies or other parties;

(IV) Discuss the method for EISpreparation and the public participation strat-egy;

(V) Identify consultation require-ment of other laws and regulations; and

(VI) Determine the relationshipbetween the preparation of the EIS and thecompletion of the facilities plan and any nec-essary arrangements for coordination of thepreparation of both documents; and

C. Following the scoping process, thedirector will begin the identification and eval-uation of all potentially viable alternatives toadequately address the range of issues devel-oped in the scoping. A summary of this,

including a list of the significant issues iden-tified, will be provided to the recipient andother interested parties. Preparation of theEIS will be done at the discretion of thedepartment: directly, by the staff; by consul-tants to the department; or by a consultantcontracted by the recipient subject to approvalby the department. In the latter two (2) cases,the consultant will be required to execute adisclosure statement prepared by the depart-ment signifying they have no financial orother conflicting interest in the outcome ofthe project. Both the draft EIS and final EISwill be distributed and made available forpublic review in a fashion consistent with therequirements of paragraph (4)(B)2. of thisrule except that the advertisement and com-ment period for the public participation willbe no less than forty-five (45) days. Thedepartment will publish in a newspaper ofgeneral circulation in the project area, anotice of availability of the EIS giving loca-tions at which it will be available for publicreview at least forty-five (45) days prior tomaking any environmental determination.

(5) Environmental Determination.(A) When the director has determined that

a recipient’s proposed project may be exclud-ed from a formal environmental review, thedirector will prepare a determination to cate-gorically exclude the project.

(B) An environmental review of the pro-posed project, supported by the recipient’sEID, will be conducted by the director todetermine whether any significant impactsare anticipated and whether any changes maybe made in the proposed project to eliminatesignificant adverse impacts. As part of thisreview, the director may require the recipientto submit additional information or undertakeadditional public participation and coordina-tion to support its environmental determina-tion. Based on the environmental review, thedirector will prepare a FNSI/EA describing—

1. The purpose and need for the pro-posed project;

2. The proposed project including itscosts;

3. The alternatives considered and thereasons for their rejection or acceptance;

4. The existing environment;5. Any potential adverse impacts and

mitigative measures; and6. Any proposed conditions to the provi-

sion of financial assistance and any means


Secretary of State


provided for the monitoring of compliancewith the conditions.

(C) When the director has determined thata FNSI/EA will be issued, the director willprepare FNSI/EA determination. TheFNSI/EA will be distributed to interestedfederal agencies, state and local governments,and entities that have expressed an interest inthe proposed project, and a copy will beavailable to the public upon request. Noaction regarding approval of the facilities planor the provision of financial assistance will betaken by the director for at least thirty (30)days after the issuance of the FNSI/EA.

(D) Public participation requirements foran EIS are detailed in paragraph (4)(B)2.except the ROD and final EIS shall have aforty-five- (45-) day period of notice.

(6) Environmental Determination Modifica-tion.

(A) Recognizing that a project may bealtered at some time after an environmentaldetermination on the project has been issued,the director will provide that, prior toapproval, the plans and specifications, loanapplication and related documents will beexamined for consistency with the environ-mental determination. If inconsistencies arefound, the director may revoke a CE andrequire the preparation of a FNSI/EA or anEIS, or require the preparation of amend-ments to a FNSI/EA or supplements to anEIS, as appropriate. Based upon the staff’sreview of the amended project, the directorwill—

1. Reaffirm the original environmentaldetermination through the issuance of a pub-lic notice or statement of finding;

2. Issue a FNSI for a project for whicha CE has been revoked or issue a publicnotice that the preparation of an EIS will berequired;

3. Issue an amendment to a FNSI/EA orrevoke a FNSI and issue a public notice thatthe preparation of an EIS will be required; or

4. Issue a supplement to a ROD orrevoke a ROD and issue a public notice thatfinancial assistance will not be provided.

(B) When five (5) or more years haveelapsed between the last environmental deter-mination and the submittal of an applicationto the fund, the director will reevaluate theproject, environmental conditions and publicviews and, prior to approval of the applica-tion, proceed with the environmental deter-mination in accordance with section (5).

(7) The director may, on a case by case basis,accept the environmental reviews, consistentwith the National Environmental Policy Actcompleted by other state and federal agen-cies. Environmental reviews completed byother state and federal agencies must be less

than five (5) years old unless reaffirmed.

AUTHORITY: section 644.026, RSMo 2016.*Original rule filed Sept. 13, 1988, effectiveFeb. 14, 1989. Amended: Filed June 13,2018, effective Feb. 28, 2019.

*Original authority: 644.026, RSMo 1972, amended1973, 1987, 1993, 1995, 2000, 2012, 2014.

10 CSR 20-4.060 Storm Water AssistanceRegulation(Rescinded September 30, 2018)

AUTHORITY: sections 644.026 and644.031, RSMo 1994. Original rule filedSept. 1, 1989, effective Jan. 12, 1990.Amended: Filed April 2, 1990, effective Sept.28, 1990. Amended: Filed Sept. 4, 1991,effective Feb. 6, 1992. Amended: Filed Nov.14, 1995, effective July 30, 1996. Rescinded:Filed Dec. 29, 2017, effective Sept. 30, 2018.

10 CSR 20-4.061 Storm Water Grant andLoan Program

PURPOSE: This rule sets forth the require-ments and process of application for stormwater loans and grants for construction ofstorm water control facilities and the termsand conditions for receipt of the loan and/orgrant as revised. This rule also clarifies therequirements, the types of facilities eligiblefor funds and the calculation used to deter-mine the amount of loan and grant availablefor eligible grantees.

(1) Applicability. This rule defines the mini-mum requirements which apply to all recipi-ents of assistance under the state storm watergrant and loan program. The recipient mustsatisfy more stringent requirements if re-quired to do so by the state constitution, stateor local statutes, policies, rules, ordinances,or orders.

(2) Definitions.(A) Commission. The Missouri Clean

Water Commission.(B) Delegated entity. An eligible applicant

that has been designated by the department ashaving sufficient staff and expertise to admin-ister funds to subrecipients within its juris-diction.

(C) Department. The Missouri Departmentof Natural Resources.

(D) Eligible Applicant. 1. Any first class county not served by

Metropolitan St. Louis Sewer District(MSD); or

2. The MSD; or

3. Any entitlement city.(E) Eligible Recipient. Any municipality,

county, public sewer district, or public waterdistrict within the boundaries of the eligibleapplicant can receive funding if selected bythe eligible applicant’s Storm Water Coordi-nating Committee.

(F) Entitlement City. A municipality locat-ed in whole or in part in a first class countywith a population of at least twenty-five thou-sand (25,000) based on the most recentdecennial census unless that city is within asewer district established pursuant to ArticleVI, Section 30(a) of the Missouri Constitu-tion.

(G) Force Account. Project planning,design, construction or engineering inspec-tion work performed by the recipient’s regu-lar employees and rented or leased equip-ment.

(H) Letter of Commitment. Initial offerfrom the department to the eligible stormwater funding recipients which details theamount allocated to the recipient and speci-fies the dates applicable to the receipt of thefunds.

(I) Storm Water Coordinating Committee(SCC). A local committee or group estab-lished by eligible applicants involved in pro-ject screening and project selection. In citiesover twenty-five thousand (25,000) popula-tion, the SCC shall consist of a committee ororganizational unit designated by the city. InSt. Louis City and County, the SCC shallconsist of a committee or organizational unitdesignated by the executive director of theMetropolitan St. Louis Sewer District. In alleligible counties, except St. Louis County, anSCC must be established which is represen-tative of the county government and incorpo-rated municipalities within the county.

(J) Storm Water Loan Revolving Fund.Fund containing repayments and interestfrom storm water loans originated fromstorm water control bonds.

(3) General Requirements.(A) Jurisdictional Requirements. Storm

water funds may be used for storm water pro-jects in any first class county, or city notwithin a county, or as specified in Article III,Section 37(h) of the Missouri Constitution.

(B) Allocation of Bond Fund Proceeds. Thedepartment will determine the amount offunds to be allocated to the eligible recipientsafter Stormwater Control Bonds are issued andare deposited into the Stormwater ControlFund. The funds will be allocated to each firstclass county and to each sewer district estab-lished pursuant to Article VI, Section 30(a) ofthe Missouri Constitution by a percentagebased on the population of the qualifying



county or sewer district in relation to the totalpopulation of all eligible counties and sewerdistricts. The most recent federal decennialcensus will be used for all population statis-tics.

1. The funds will be further allocated toeach entitlement city by a percentage basedon the population of the entitlement city inrelation to the total population of the firstclass county(ies) in which the entitlement cityis located.

2. The department will send a letter ofcommitment to each eligible applicant. Thenotification will include the county, city, orsewer district’s proportionate share of thebalance in the Stormwater Control Fund andinstructions for applying for the funds.

(C) Reallocation of Unused Bond FundProceeds. Within sixty (60) days of the datespecified in the letter of commitment as thefinal day for receipt of applications, thedepartment will determine if there are anyremaining unused bond fund proceeds. Whencalculating this amount, the department willinclude interest that has accrued to theStormwater Control Fund that was not includ-ed in the original calculation and any fundsthat have not been applied for through theoriginal letter of commitment. The total ofthese funds will be allocated as described insubsection (3)(B) of this rule except that thecalculation will exclude any eligible applicantthat has not responded to the initial letter ofcommitment by the application date.

(D) Planning Requirements. 1. All storm water projects must be con-

sistent with a comprehensive storm watermanagement plan. A storm water manage-ment plan should contain at a minimum thefollowing components:

A. An introduction that defines termsand discusses the purpose, scope, hydrology,and alternatives considered;

B. A discussion of the data andmethodology used in plan development;

C. A description of the existing sys-tem (if applicable);

D. A list of proposed storm waterprojects;

E. A description of the methodologyused to evaluate and establish project priorityranking;

F. Estimates of cost for full imple-mentation of the plan;

G. A description of the maintenanceplan for existing and new systems;

H. A geomorphological assessment ofthe plan area;

I. A description of the rainfall/runoffmodeling data for the plan area;

J. Modeling data, structure data andphotographs, public survey response forms;

andK. Watershed map, public response

map, flood plain map, maps showing projectareas.

2. The project specific drainage basinplan must be submitted in conjunction withthe applicant’s storm water application to thedepartment. The geographical extent of theplanning area may be determined by thedepartment or the delegated entity. Projectswhich are solely for bank stabilization or ero-sion control, or other projects as determinedby the department or the delegated entity,need only provide the items listed in subpara-graphs (3)(D)2.B., D., and E. The drainagebasin plan should include, but is not limitedto:

A. A detailed map of the projectdrainage area showing computed drainageacreage;

B. A narrative, a plan layout, and esti-mated construction costs for the proposedproject;

C. Tabulated storm water conceptualdesign parameters for the drainage area, thatis, upstream acres, runoff coefficients, timeof concentration, return frequencies, and soforth. Computer modeling information maybe submitted;

D. A determination of the flood ele-vation changes resulting from the project,unless the Corps of Engineers has committedto remap the area; and

E. An evaluation of limited structuralapproaches to storm water control. The planmust analyze the use of applied geomorphol-ogy and bioengineering techniques to managestorm water. Combinations of measures canbe employed to manage storm water andretain important stream functions. “Bioengi-neering” combines mechanical, biological,and ecological concepts to prevent slope fail-ures and erosion. Bioengineering techniquesmay use bare root stock, stems, branches, ortrunks of living plants on eroded slopes.Plantings may be incorporated into such con-figurations as a live stakings, live fascines, orliving cribwall. Vegetative plantings and cut-tings may be combined with structural ele-ments such as gabion baskets or rock surfacearmoring. However, the intent should be tominimize hard structural solutions and allowthe rooted plantings to do much of the workto hold the soil in place and retain the naturalfunction of streams to convey storm water.Other storm water management optionsinclude environmental easements and landacquisition. Projects that are only rehabilita-tion or replacement of existing structures willrequire an evaluation that addresses reason-able geomorphological alternatives and, ifthis approach is not taken, a brief discussion

why not. For more complex projects, theevaluation should address the root causes offlooding, bed and bank erosion, and sedimentdeposition. The plan should not exacerbatethese problems by:

(I) Modifications to stream systemsthat increase bed and bank erosion in modi-fied stream sections;

(II) Cause these impacts in sectionsthat are upstream or downstream of the stormmanagement project;

(III) Remove or degrade aquatichabitat;

(IV) Remove the pollutant removalbenefits of vegetated stream corridors; or

(V) Lead to increased floodingupstream or downstream of the storm watermanagement project.

(4) Required Documents. Prior to grant awardand/or loan closing, the applicant must submita completed storm water grant/loan applica-tion to the department. The following docu-ments must be submitted and approved by thedepartment or delegated entity prior to con-struction advertising. Some documents may bewaived by the department or delegated entityon a case-by-case basis if it is determinedthey are not needed for that project:

(A) The following documents are requiredfor a project which includes design and con-struction:

1. Construction plans, specifications,and design criteria;

2. Certification by the recipient that—A. The facilities, when completed,

will be owned, operated, and maintained by apolitical subdivision eligible under subsection(3)(A) of this rule; or

B. Evidence of a permanent easementand legal authority to ensure operation andmaintenance of the facility;

3. Certification by the recipient that con-tract documents and construction bidding willconform to relevant local and state laws;

4. Certification by the recipient that allnecessary easements and land have been orwill be obtained prior to construction start;and

5. Certification by the recipient that therecipient will construct the project or cause itto be constructed to final completion inaccordance with the certified plans and spec-ifications; and

(B) The following documents must be sub-mitted for all storm water grant/loan projectsincluding grants/loans for planning:

1. Certification by the recipient that allstate storm water funds will be expendedsolely for carrying out the approved project;

2. Certification by the recipient that aregistered professional engineer has been


Secretary of State


selected and will perform the servicesrequired in section (9) of this rule;

3. Certification by the recipient that thelocal match is available; and

4. Certification by the recipient that anyrequired section 404 dredge and fill permitsfrom the United States Army Corps of Engi-neers or land disturbance permits from thedepartment will be obtained prior to con-struction.

(5) Eligible Project Costs. The information inthis section represents policies and proce-dures for determining the eligibility of projectcosts for assistance under the Storm WaterGrant and Loan Program.

(A) General. It is the policy of the com-mission that all project costs will be eligibleif they meet the following tests:

1. Reasonable and cost effective;2. Necessary for the construction of an

operable storm water facility or for the com-pletion of a comprehensive storm water mas-ter plan; and

3. Included in the scope of the project asdescribed in the application and engineeringsubmittals.

(B) Eligible Costs. Eligible costs include ata minimum:

1. Costs for development of a compre-hensive storm water control plan meeting therequirements of subsection (3)(D);

2. Engineering services for planning anddesign based on invoiced amounts for a con-tracted engineering consultant. A copy of theapproved engineering agreement must be sub-mitted to the department or delegated entitywhen engineering services are to be reim-bursed with grant or loan funds. The contractshould be a lump sum or cost plus fixed feecontract in the form of a bilaterally executedwritten agreement.

3. Costs for construction-related engi-neering when invoiced per an acceptable two(2)-party engineering agreement;

4. Construction costs including con-struction permits as issued by the depart-ment;

5. Land purchase or permanent ease-ment costs required for storm water holdingbasins, grass-lined channels, or for other lim-ited structural storm water control projects,or buy-outs if the land purchased is restrictedsuch that no permanent structure except forstructures allowed under the MissouriStatewide Comprehensive Outdoor Recre-ation Plan (SCORP) may be constructedwithin the easement or purchase area. Con-struction costs related to holding basins onprivate land are eligible if the eligible recipi-ent retains a permanent easement, is legallyresponsible for operation and maintenance of

the facility, and the basin constructed is clear-ly for storm water control and not recreation-al use;

6. Costs of force account work for plan-ning, design, construction, construction engi-neering, and costs of rented or leased equip-ment. It does not include the costs ofrecipient-owned equipment or the costs ofadministration for grants and loans. Engi-neering performed by force account mustmeet the requirements of 10 CSR 20-4.061(9)which state that storm water plan prepara-tion, design, and inspection must be providedby a registered professional engineer or by aperson under the direct and continuing super-vision of a registered professional engineer.To be considered for force account, the fol-lowing information must be submitted forreview and approval by the department priorto beginning on the project:

A. Which project(s) they intend to dowith city employees;

B. The names of the employees whowill be working on the project;

C. A specific time code must beassigned to each project. The letter shouldstate the time code number;

D. For engineering work, the lettermust contain an assurance that the employeeis a registered professional engineer or thename of the professional engineer who direct-ly supervises this person;

E. The hourly wage for each individ-ual must be given. If the person is salaried,this is the total annual salary divided by twothousand and eighty (2,080) hours. Thehourly wage cannot include fringe or indirectcosts; and

F. A copy of the time card that will beused. The time card must list the employeename, project time code, hours worked, andthe signature of the employee and the super-visor. Should there be a change in employees,salary, or engineering supervisor during thecourse of the project, the recipient mustamend/update the information in the originalletter before that salary and/or employee costcan be reimbursed;

7. Demolition costs of structures locatedwithin storm water control areas providedfuture development of permanent structuresin the storm water control area is restricted;

8. Local cost of issuance and capitalizedinterest incurred on loans administered underthis rule;

9. Up to five (5) sequential years ofgrant and/or loan funding may be used for thesame project if it meets the following criteria:

A. The contract is awarded within thetime frame necessary to receive the first grantand/or loan of the sequence;

B. The recipient certifies that there

are adequate funds committed from othersources to complete the construction;

C. The recipient commits to the orig-inal funding combination for the entiresequence of grants and/or loans; and

D. The recipient certifies that the pro-ject will be completed with or without thesubsequent years’ grant/loan funds.

10. Costs associated with minimizingstorm water damage to sink holes; and

11. The reasonable costs of administra-tive fees incurred by a delegated entity inconnection with each grant.

(6) Ineligible Project Costs. Ineligible costsinclude, but are not limited to, the following:

(A) Projects which divert storm water tosinkholes or which modify sinkholes toincrease storm water capacity;

(B) Local government administration orlegal costs, including appraisals;

(C) Land purchase or easement costs otherthan those listed in paragraph (5)(B)5.;

(D) Permits required for the ongoing oper-ation of the constructed facility(ies);

(E) Construction costs incurred prior to theletter of commitment; and

(F) Ordinary upkeep and maintenance ofexisting facilities.

(7) Grant Amount. The maximum grant islimited to fifty percent (50%) of the total eli-gible project costs or available funds,whichever is less. The recipient must providethe remaining amount needed to complete theproject through a storm water loan adminis-tered by the department or other acceptablesource of funds. Grants may be matched withother state or federal grants up to one hun-dred percent (100%) of the eligible projectcosts.

(8) Loan Amount. Loans will be available inan amount up to one hundred percent (100%)of eligible project costs. Loans may bematched with state or federal grants. How-ever, in no case will the total governmentassistance exceed one hundred percent(100%) of eligible project costs.

(9) Engineering Requirements.(A) A registered professional engineer

must prepare the project specific drainagebasin plan and design all construction plansand specifications for competitive biddingand compliance with generally acceptedstorm water design criteria. The documentsmust have the professional engineer’s sealwhen they are submitted to the department ordelegated entity.

(B) A registered professional engineer or aperson under the direction and continuing



supervision of a registered professional engi-neer must provide inspection of constructionfor the purpose of assuring compliance withthe approved plans and specifications.

(10) Bidding Requirements. (A) This subsection applies to procurement

of construction equipment, supplies, and con-struction services in excess of one hundredthousand dollars ($100,000) awarded by therecipient for any storm water project.

1. Each contract shall be awarded afterformal advertising. The project advertisementmust be published in a newspaper at least one(1) time thirty (30) days prior to the bid open-ing or five (5) consecutive days two (2) weeksprior to bid opening or in accordance withthe local government’s procurement ordi-nances.

2. Contract award shall be to the lowestresponsive and responsible bidder.

3. Departmental concurrence or concur-rence from the delegated entity with contractaward must be obtained prior to the actualcontract award if fewer than three (3) bidderssubmit bids or if the recipient wishes toaward the contract to other than the low bid-der. The recipient shall forward the tabulationof bids and a recommendation of contractaward to the department or delegated entityfor review.

4. Executed contract documents must besubmitted prior to the first grant payment ifpayments are made monthly. If the grant ispaid into an escrow account, the executedcontract documents must be submitted withthe first statement that indicates constructioncosts were paid with grant funds.

(B) Small Purchase Contract. A small pur-chase is the procurement of materials, sup-plies, and services when the aggregateamount involved in any one (1) transactiondoes not exceed one hundred thousand dollars($100,000). The small purchase limitation ofone hundred thousand dollars ($100,000)applies to the aggregate total of an order,including all estimated handling and freightcharges, overhead, and profit to be paidunder the order. In arriving at the aggregateamount involved in any one (1) transaction,all items which should properly be groupedtogether must be included. A minimum ofthree (3) quotes must be obtained andapproved by the department or delegated enti-ty.

(11) Grant Payments.(A) Prior to the grant award, the depart-

ment will notify the grantee how funds willbe disbursed under the grant.

1. No funds may be drawn from thegrant until the following conditions have been

met:A. For construction projects, the

grantee must submit to the department: (I) Construction plans and specifi-

cations prepared in accordance with subsec-tion (9)(A) of this rule; and

(II) Executed contract documents.B. For planning projects, the grantee

must have the department’s concurrence forall major consulting contracts, and a copy ofthe consulting contracts must be on file withthe department; and

C. The grantee has documented it hassecured matching funds for the grant.

2. Projects administered through a dele-gated entity will be paid in accordance withthe delegated entity’s procedure on file withthe department.

(B) An audit to verify eligible project costsand inspection of the project may be made bythe department. Any funds found not expend-ed for purposes listed in section (5) of thisrule will be recovered in addition to anyapplicable penalties.

(12) Loan Requirements.(A) Loans shall be administered in accor-

dance with the provisions in 10 CSR 20-4.041 except that the loan shall not be subjectto requirements unique to wastewater treat-ment projects. When the storm water loan isfunded through storm water control bonds,the loan shall not be subject to requirementsspecific to federal funding.

(B) Loans must be secured with an accept-able debt instrument including revenue orgeneral obligation bonds. Other financingsecurities will be reviewed on a case-by-casebasis. Repayment must begin within one (1)year of project completion.

(C) The commission may direct that exist-ing and/or future loans be leveraged throughthe Environmental Improvement and EnergyResources Authority.

(D) If at any time during the loan periodthe facility(ies) financed under this rule issold, either outright or on contract for deed,to other than a political subdivision of thestate, the loan becomes due and payable upontransfer.

(13) Repayment of Grant. A portion of thegrant will be required to be repaid if the facil-ities constructed with grant funds are sold ortransferred to private ownership. The granteeshall notify the department at least ninety(90) days prior to any such transfer. Theamount of grant funds to be repaid will bebased on a straight-line depreciation schedulebased on the useful life of the project, but inno event exceeding a thirty (30)-year depreci-ation schedule.

(14) Storm Water Loan Revolving Fund.Storm water grants and loans may be award-ed from the storm water loan revolving fundas funds are available. Eligible applicantsmust be a municipality, county, public sewerdistrict, public water district, or a combina-tion of the same. Except for subsections(3)(A)–(C), all provisions of this regulationapply to grants and loans made from thestorm water loan revolving fund.

AUTHORITY: sections 644.026 and 644.570,RSMo 2016.* Original rule filed June 9,1999, effective March 30, 2000. Emergencyamendment filed Feb. 1, 2007, effectiveMarch 4, 2007, expired Aug. 30, 2007.Amended: Filed March 14, 2007, effectiveOct. 30, 2007. Amended: Filed March 16,2009, effective Dec. 30, 2009. Amended:Filed June 13, 2018, effective Feb. 28, 2019.

*Original authority: 644.026, RSMo 1972, amended1973, 1987, 1993, 1995, 2000, 2012, 2014 and 644.570,RSMo 1999, amended 2008.

10 CSR 20-4.070 Sales Tax Exemption(Rescinded September 30, 2018)

AUTHORITY: sections 144.030 and 644.026,RSMo Supp. 1997 and 144.062, RSMo 1994.Original rule filed Nov. 3, 1997, effective July30, 1998. Rescinded: Filed Dec. 29, 2017,effective Sept. 30, 2018.


Secretary of State
