§1283 Plans, Specifications, Estimates, and Payments

Summary

Applicants must send plans, drawings, and cost estimates to the Administrator for approval before getting a grant. When the Administrator approves those papers, the United States is committed to pay its share of the project. For plans filed after the 60th day following February 4, 1987, the Administrator must sign a written agreement with the applicant that lists which parts of the project the federal government will pay for. The Administrator generally cannot change those decisions later unless they broke federal law. The Administrator can still audit the project and can withhold or recover federal money for costs that are unreasonable, not properly documented, not allowed by federal rules, or caused by a project that fails to meet its design or permit limits. Smaller towns may get one combined grant for planning and construction if the project is estimated at $8,000,000 or less and the town’s population is 25,000 or less. The Administrator will make payments as work goes on, but never more than the federal share of costs incurred to the payment request date plus the federal share of any approved materials stockpiled nearby. After the job is finished and the final payment request is approved, the Administrator pays any remaining federal share. The Administrator can help grantees with contract administration and can join court cases about contract enforcement. As an alternative, and where state law allows, an applicant may enter a design/build agreement covering both plans and construction for certain small projects (costing $8,000,000 or less and using systems like aerated lagoons, trickling filters, stabilization ponds, land application, sand filters, or subsurface disposal). Those agreements must set a maximum federal contribution, a start and finish date, a payment schedule, bonds to protect the federal interest, assurances about management and operation (including that the works will be operating to meet permit requirements within 1 year after completion), and other terms needed to ensure compliance. The Administrator must reserve part of the grant until final approval, may limit these design/build grants to 20 percent of a State’s yearly allotment, cannot pay more than the agreed federal amount, can recover funds if the recipient breaks the agreement, and recipients cannot get other grants for the same project.