Wisconsin Administrative Code › Department of Natural Resources › NR 100-199 - Environmental Protection General › Chapter NR 162 - Clean Water Fund Program › Subchapter II - Financial Assistance Requirements › Section NR 162.04 - Cost eligibility

Current through June 24, 2024
(1) ELIGIBLE COSTS.
(a)
Eligible at a subsidized rate.
Allocable
											  project-specific costs that are necessary and reasonable are eligible for financial assistance. Eligible
											  costs include expenses incurred by the municipality for any of the following items and activities when
											  specific to the scope of a scored project, or when approved by the department as necessary and reasonable for
											  the efficient operation or integrity of the overall treatment works:
1.
											  `Abandonment.' Abandonment of treatment works if approved in the plans and specifications of a scored project
											  or by department staff, including activities such as demolition, re-landscaping, and removal and disposal of
											  municipal waste or other debris.
2. `Access roads.' Construction
											  of roadways necessary to provide appropriate access to facilities such as lift stations and treatment
											  plants.
3. `Acquisition of facilities.' Costs associated with
											  acquiring facilities of an existing treatment works if the municipality will own, operate, and maintain the
											  facilities throughout the term of the financial assistance agreement.
4. `Administrative buildings and equipment.' Buildings, offices, and office
											  equipment and furnishings used for purposes of operating a treatment works, such as administration and
											  storage buildings, if included in the approved plans and specifications or otherwise approved by department
											  staff. The department may prorate costs for buildings, offices, and office equipment and furnishings that are
											  partially used for purposes not related to the treatment works.
5. `Administrative costs of a commission.' Administrative, legal, and other
											  costs incurred by a commission solely for the scored project if identifiable in a contract or agreement
											  between the member municipalities.
6. `Compliance with state and
											  federal requirements.' Costs incurred for activities associated with complying with state and federal
											  requirements related to the scored project.
Note:
Federal and state requirements may include any of
													 the following: Americans with Disabilities Act design and construction; green project reserve documentation;
													 Davis-Bacon and Related Acts administration as required under Section 513 of the Federal Water Pollution
													 Control Act 33 USC 1372
													 or other activities associated with wage rate requirements; DBE solicitation and documentation; activities
													 associated with the use of products made in the United States; environmental review of project sites and
													 other activities related to ch. NR 150 compliance, including costs of public notices and hearings;
													 historical, architectural, archaeological, and cultural resources work identified during planning, design, or
													 construction of the project and incurred prior to project closeout; signage requirements, including on a
													 website or at a wastewater treatment facility or project site; audit activities related to the federal single
													 audit act portion of the municipality's annual audit report until the project is complete.
7. `Construction activities.' Activities defined in s.
											  NR 162.003 (16)
											  and included in construction contracts or performed as force account work, including any of the following:
a. Replacing, repairing, or rehabilitating a treatment works if identified
											  in the plans and specifications as cost-effective and necessary.
b. Restoring streets and rights-of-way and repairing damage to items such
											  as pavement, sidewalks, watermains, and storm sewers necessary as a direct result of construction of the
											  scored project.
c. Punch list item activities.
d. Acquiring, consuming, or expending materials.
e. Obtaining products that comply with federal requirements to use products
											  made in the United States in CWFP projects.
f. Other capital
											  costs incurred solely for purposes of the scored project.
8. `Demolition.' Demolishing existing structures if the demolition is part
											  of a scored project and any of the following applies:
a. The existing
											  structure is part of the wastewater treatment works.
b. The
											  demolition is necessary for site preparation.
c. The demolition
											  is included in abandonment procedures as approved in the plans and specifications of the scored project or
											  when otherwise approved by department staff.
d. The demolition
											  entails removal of equipment or materials, or both, from inside an existing building or other structure that
											  is part of the treatment works being modified or repurposed as part of the scored project.
9. `Discharge monitoring.' The cost of equipment owned or to be
											  owned by the municipality for monitoring, sampling, and analyzing industrial discharges to a municipal
											  wastewater treatment works.
10. `Easements and rights-of-way.'
											  Acquisition of easements and rights-of-way, including purchase cost and administrative and legal
											  expenses.
11. `Equipment.' Equipment related to the scored
											  project, the costs of which the department may prorate if the municipality intends to use the equipment for
											  multiple purposes rather than solely for the treatment works. Eligible equipment includes any of the
											  following:
a. Mobile equipment, such as portable stand-by generators,
											  portable emergency pumps, and grounds and maintenance equipment for mowing and snow removal, for the
											  treatment works.
b. Spare parts if included in the plans and
											  specifications or otherwise approved by the department.
c.
											  Machinery for manufacturing or repairing necessary tools or equipment for the treatment works.
d. Computers, tablets, and related equipment, including purchasing,
											  installing, programming, or upgrading computers, printers, control systems, and other computer-related
											  equipment necessary for operating and maintaining the treatment works. Equipment and systems for accounting,
											  billing, public notification, testing, monitoring, reporting, emergency alerts, communications, geographic
											  information, and supervisory control and data acquisition are included under this subd. 11. d.
12. `Fees.' Fees paid by the municipality for any of the
											  following:
a. Permits obtained for construction, including building,
											  electrical, and plumbing permits, pit or trench dewatering permits, construction site storm water permits,
											  and railroad crossing permits.
Note:
Permit fees are not required by the department
													 for waterway projects authorized under ch. 30, Stats., that are funded in whole or in part by any federal or
													 state agency. Therefore, if a municipality at the time of purchase of a permit under ch. 30, Stats., pays a
													 fee for the permit due to not identifying the project as being funded with state or federal funds, the fee is
													 not eligible for reimbursement by the CWFP.
b. Legal fees
											  of an attorney that is not an on-staff municipal attorney, including costs of legal reviews of architectural,
											  engineering, or construction contracts, user charge systems and sewer use ordinances, management plans,
											  intermunicipal agreements, and legal work necessary for securing eligible permits.
c. Service fees paid to a state or federal agency, except administrative
											  fees paid annually along with principal and interest payments on a CWFP loan.
13. `Groundwater monitoring.' Installing groundwater monitoring equipment
											  or facilities.
14. `Insurance.' Purchasing insurance necessary
											  during construction of the scored project, including property, liability, builder's risk, and construction
											  insurance.
15. `Interim debt.' Costs associated with interim debt
											  for the scored project as delineated in sub. (3).
16.
											  `Laboratories.' Laboratory equipment related to initial setup or a significant upgrade or expansion of an
											  on-site laboratory if requested in the financial assistance application.
17. `Land acquisition.' Acquiring land, including purchase cost and
											  administrative and legal expenses if any of the following applies:
a. The
											  land will be used for storage of treated wastewater in land treatment systems before land
											  application.
b. The land will be used for composting or temporary
											  storage of compost residues that result from wastewater treatment if the department has approved a program
											  for use of the compost.
c. The land is property on which the
											  wastewater treatment works, biosolids facility, or lift stations will be located.
d. The land will serve to isolate a treatment facility as required under s.
											  NR 110.15 (3)
											  (d).
e. The land will be used
											  for sludge spreading.
f. The land is the property on which
											  individual systems are or will be located if the systems are publicly owned and maintained.
18. `Lines to public sewer mains.' Pumping units and pressurized
											  lines from the pumping units to the public sanitary sewer main, or holding and septic tanks and their sewer
											  lines to the public sanitary sewer main, that are included in a sewage collection system, are cost-effective,
											  and are owned and maintained by the applicant municipality.
19.
											  `Management plans.' Developing a detailed management plan related to a scored project.
20. `Municipal staff, equipment, and materials.' Municipal expenses
											  incurred solely for the scored project and documented by the municipality as force account work, including
											  any of the following:
a. Salary and benefits of municipal employees, except
											  elected officials or on-staff attorneys, for time spent working directly on the scored project.
b. Expendable material costs incurred by the municipality.
c. Estimated costs incurred using equipment owned by the
											  municipality.
21. `Municipally owned facilities on
											  private property.' Grinder pumps, sewer laterals, service connections, service branches, risers, and riser
											  pipes if located on private property and municipally owned and municipally maintained or if located on
											  municipally owned land.
22. `Pretreatment or toxicity reduction.'
											  Developing a municipal pretreatment or toxicity reduction program and constructing facilities to be used by
											  the municipal treatment works in the program, including monitoring equipment.
23. `Professional services.' Engineering, architectural, legal, and other
											  professional services and fees, including any of the following:
a.
											  Conducting value engineering studies or analyses during the design phase.
b. Conducting system evaluations and studies.
c. Developing facilities plans and engineering reports.
d. Developing, preparing, and submitting plans and
											  specifications.
e. Preparing, printing, and distributing bidding
											  documents.
f. Gathering documents and information for,
											  completing, and submitting CWFP financial assistance applications or interest rate subsidy applications and
											  other forms required for financial assistance.
g. Developing or
											  revising an operations and maintenance manual.
h. Preparing a
											  plan of operation for the project.
i. Advertising for and
											  conducting bid lettings.
j. Analyzing bids, preparing award
											  recommendations, and preparing contracts.
k. Providing
											  construction management, observation, and inspection.
l.
											  Preparing for and facilitating public education and participation opportunities.
m. Travel, indirect costs, and labor for services provided for the scored
											  project.
n. Developing or updating a user charge system or a
											  sewer use ordinance for wastewater treatment and the sewerage system in the municipality.
o. Preparing environmental assessment reports and evaluations.
p. Conducting archaeological surveys and gathering historical site
											  information.
q. Providing municipal advisor or bond counsel
											  services related to loan closing or the issuance of bonds.
r.
											  Preparing a water conservation plan.
s. Producing record
											  drawings.
t. Updating or upgrading treatment works maps of the
											  areas impacted by the scored project.
u. Monitoring required use
											  of American-made products.
v. Providing administration of
											  activities related to the federal Davis-Bacon and Related Acts or other wage requirements.
Note:
Links to the Davis-Bacon and Related Acts can be
													 found on the U.S. department of labor's website at
													 https://www.dol.gov/agencies/whd/government-contracts/construction/laws. The Davis-Bacon Act is found in
													 40 USC 3141 et seq. with
													 procedures and rules in 29 CFR Parts 1 to 7.
w. Conducting
											  research or energy audits for incorporation of energy and water efficiency and conservation into the planning
											  and design of a project.
Note:
When 10 percent or more of the project's
													 construction and equipment costs are deemed ineligible for CWFP financial assistance, the costs associated
													 with engineering for those ineligible construction and equipment costs are also ineligible under sub. (2)
													 (h).
24. `Project site.' Construction-related
											  work activities at the project site of a scored project, including any of the following:
a. Landscaping areas impacted by construction of the scored
											  project.
b. Reconnecting laterals due to the rehabilitation of a
											  publicly-owned treatment works.
c. Relocating watermains or storm
											  sewers if necessary for construction, and replacing pipes with the same size or required minimum size pipe if
											  breakage from construction occurs.
d. Erecting project and
											  treatment works identification signs.
e. Preparing a site for
											  construction, including surveying, staking, and grading.
f.
											  Restoring the construction site to original condition or, when necessary, upgrading the site to meet state
											  and local requirements.
g. Removing, relocating, or replacing
											  utilities, providing temporary utilities, installing new utility equipment, or upgrading utilities if
											  necessary for construction of the scored project and the recipient is legally obligated to pay these costs.
											  This subd. 24. g. does not apply to storm water pipes.
25. `Safety.' Purchasing and installing safety equipment related to the
											  scored project.
26. `Sanitary sewers.' Evaluation, new
											  installation, replacement, and lining and other rehabilitation of sanitary sewer pipes.
27. `Security.' Purchasing and installing security equipment and
											  appurtenances for the treatment works, including surveillance cameras, fencing, security alarms, and motion
											  detectors, and conducting a vulnerability assessment if necessary for determining security needs.
28. `Septage facilities.' Facilities for receiving, storing, or treating
											  septage.
29. `Sludge removal.' Removing sludge when necessary as
											  part of a scored project, including treatment plant upgrades, lagoon abandonment, conversion of a lagoon into
											  an equalization basin, or other capital improvements.
30.
											  `Special assessment fees.' Financial and legal costs associated with the process of preparing and
											  implementing special assessments when the municipality is pledging special assessments toward repayment of
											  its CWFP loan.
31. `Staffing evaluations.' Conducting an
											  evaluation of staffing needs to determine appropriate changes to staffing levels as a result of the scored
											  project.
32. `Startup.' Startup expenses for a treatment works
											  incurred solely because of the scored project, including costs for any of the following:
a. Preparing a startup curriculum and training materials.
b. Initial training of operating personnel on new or modified equipment,
											  laboratory procedures, computers, controls, records management, and treatment processes.
c. Obtaining expert operational assistance for adjustments to the treatment
											  process.
d. Implementing a maintenance management
											  system.
e. Trucking seed sludge for startup of the activated
											  sludge process.
f. Attending off-site formal training programs if
											  necessary for the initial operation of the constructed treatment works.
g. Purchasing the first fuel fill-up for new equipment, such as
											  generators.
h. Obtaining necessary computers, upgrades, and
											  software.
33. `Storm sewers.'
a. Replacing storm sewers of the same size or required minimum size if
											  breakage occurs due to construction of a scored project and the existing storm sewers are in direct conflict
											  with the installation of new sanitary sewer pipes in a new location.
b. Installing new or replacing existing storm sewers or BMPs for
											  controlling on-site runoff at treatment facilities, lift stations, septage receiving facilities and other
											  treatment works facilities and properties.
Note:
Storm water control sewers or BMPs described in
													 subd. 33. are considered wastewater treatment projects as they are designed for purposes of controlling storm
													 water around wastewater treatment works facilities, and projects for these sewers or BMPs would be funded
													 under subch. II rather than under subch. III for storm water projects.
34. `Street restoration.' Restoring streets and rights-of-way, and
											  repairing items damaged during construction of the scored project, such as pavement, sidewalks, water mains,
											  and storm sewers. Eligibility of costs may be prorated based on participation by one or more other funding
											  sources, or on the percent of the project attributable to CWFP-eligible activities.
Note:
Other funding sources that tend to participate in
													 the types of projects that involve street restoration include the department of transportation, the community
													 development block grant program, and the U.S. department of agriculture rural development community programs.
													 Proration of costs can be due to the other funding source covering a portion of costs that would otherwise be
													 eligible for CWFP funding or because some of the project costs are not eligible, such as watermain costs
													 being ineligible when the project purpose is to replace both watermains and sanitary sewers.
35. `Watermains.' Relocating watermains if necessary for construction, and,
											  if breakage due to construction of a scored project occurs, replacing watermains of the same size or required
											  minimum size.