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(continued)
Rhode Island................................................ 0
South Carolina.............................................. 2.92
South Dakota................................................ .89
Tennessee................................................... 3.01
Texas....................................................... 18.46
Utah........................................................ 1.86
Vermont..................................................... 0
Virginia.................................................... 0
Washington.................................................. 2.49
West Virginia............................................... 7.14
Wisconsin................................................... 2.65
Wyoming..................................................... .91
Guam........................................................ .30
Puerto Rico................................................. 1.22
Virgin Islands.............................................. 0
American Samoa.............................................. .16
Trust Territory of Pacific.................................. .98
-----------
Total................................................. 100.00
------------------------------------------------------------------------


(d) Based on these percentages, the total additional sums hereby allotted to the States are as follows:



------------------------------------------------------------------------
Allotments
from funds
State appropriated
under Public
Law 94-447
------------------------------------------------------------------------
Alabama................................................. $23,520.000
Alaska.................................................. 4,368,000
Arizona................................................. 22,512,000
Arkansas................................................ 17,952,000
California.............................................. 0
Colorado................................................ 14,592,000
Connecticut............................................. 0
Delaware................................................ 0
District of Columbia.................................... 0
Florida................................................. 14,256,000
Georgia................................................. 27,360,000
Hawaii.................................................. 2,880,000
Idaho................................................... 5,088,000
Illinois................................................ 0
Indiana................................................. 0
Iowa.................................................... 1,776,000
Kansas.................................................. 13,920,000
Kentucky................................................ 12,960,000
Louisiana............................................... 16,848,000
Maine................................................... 0
Maryland................................................ 7,248,000
Massachusetts........................................... 0
Michigan................................................ 0
Minnesota............................................... 0
Mississippi............................................. 12,720,000
Missouri................................................ 7,056,000
Montana................................................. 3,024,000
Nebraska................................................ 3,696,000
Nevada.................................................. 624,000
New Hampshire........................................... 0
New Jersey.............................................. 0
New Mexico.............................................. 5,424,000
New York................................................ 0
North Carolina.......................................... 31,920,000
North Dakota............................................ 5,088,000
Ohio.................................................... 0
Oklahoma................................................ 17,472,000
Oregon.................................................. 1,344,000
Pennsylvania............................................ 0
Rhode Island............................................ 0
South Carolina.......................................... 14,016,000
South Dakota............................................ 4,272,000
Tennessee............................................... 14,448,000
Texas................................................... 88,608,000
Utah.................................................... 8,928,000
Vermont................................................. 0
Virginia................................................ 0
Washington.............................................. 11,952,000
West Virginia........................................... 34,272,000
Wisconsin............................................... 12,720,000
Wyoming................................................. 4,368,000
Guam.................................................... 1,440,000
Puerto Rico............................................. 5,856,000
Virgin Islands.......................................... 0
American Samoa.......................................... 768,000
Trust Territory of Pacific.............................. 4,704,000
---------------
Total............................................. 480,000,000
------------------------------------------------------------------------


§ 35.910-7 Fiscal Year 1977 Supplemental Appropriations Act allotments.
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(a) Under title I, chapter V of Public Law 95–26, $1 billion is available for obligation. The allotments are to be used to carry out title II of the Act, excluding sections 206, 208, and 209. These allotments are available until expended but must be obligated by May 3, 1980. After that date, unobligated balances will be subject to reallotment under section 205 (b) of the Act (see §35.910–2 (b)).

(b) The allotments, computed by proportionally adjusting the table on page 16 of Senate Report No. 95–38, are based on the following four factors:

(1) 25 percent on the States estimated 1975 census population;

(2) 50 percent on each State's partial needs, i.e., on the cost of needed facilities in categories I, II, and IVB (secondary treatment, more stringent treatment required to meet water quality standards, and interceptor sewers and pumping stations), as shown in table IV of the May 6, 1975, EPA report, “cost Estimates for Construction of Publicly Owned Waste Water Treatment Facilities—1974 Needs Survey”;

(3) 25 percent on each State's full needs, i.e., on the cost of needed facilities in categories I, II, IIIA, IIIB, IVA, IVB, and V (secondary treatment, more stringent treatment required to meet water quality standards, infiltration and inflow correction, major sewer system rehabilitation, collector sewers, interceptor sewers, and pumping stations, and treatment of combined sewer overflows), as shown in table V of the EPA report noted in paragraph (b) (2) of this section; and

(4) An allotment adjustment to insure that no State receives less than the one-third of 1 percent of the total amount allocated.

(c) Based on paragraph (b) of this section, the total additional sums hereby allotted to the States are as follows:



------------------------------------------------------------------------
State Allotment
------------------------------------------------------------------------
Alabama................................................. $10,906,000
Alaska.................................................. 4,759,000
Arizona................................................. 6,345,000
Arkansas................................................ 10,807,000
California.............................................. 82,391,000
Colorado................................................ 8,031,000
Connecticut............................................. 12,195,000
Delaware................................................ 3,966,000
District of Columbia.................................... 3,966,000
Florida................................................. 35,792,000
Georgia................................................. 19,929,000
Hawaii.................................................. 6,940,000
Idaho................................................... 4,065,000
Illinois................................................ 52,151,000
Indiana................................................. 21,713,000
Iowa.................................................... 11,005,000
Kansas.................................................. 12,195,000
Kentucky................................................ 14,971,000
Louisiana............................................... 12,493,000
Maine................................................... 5,453,000
Maryland................................................ 37,874,000
Massachusetts........................................... 27,662,000
Michigan................................................ 46,897,000
Minnesota............................................... 15,070,000
Mississippi............................................. 7,535,000
Missouri................................................ 19,830,000
Montana................................................. 3,272,000
Nebraska................................................ 6,147,000
Nevada.................................................. 3,272,000
New Hampshire........................................... 6,742,000
New Jersey.............................................. 47,591,000
New Mexico.............................................. 3,272,000
New York................................................ 105,294,000
North Carolina.......................................... 20,722,000
North Dakota............................................ 3,272,000
Ohio.................................................... 55,522,000
Oklahoma................................................ 13,484,000
Oregon.................................................. 8,328,000
Pennsylvania............................................ 46,698,000
Rhode Island............................................ 3,966,000
South Carolina.......................................... 13,088,000
South Dakota............................................ 3,272,000
Tennessee............................................... 14,872,000
Texas................................................... 43,030,000
Utah.................................................... 5,057,000
Vermont................................................. 3,272,000
Virginia................................................ 22,011,000
Washington.............................................. 15,368,000
West Virginia........................................... 21,614,000
Wisconsin............................................... 19,929,000
Wyoming................................................. 3,272,000
Guam.................................................... 992,000
Puerto Rico............................................. 8,923,000
Virgin Islands.......................................... 496,000
American Samoa.......................................... 298,000
Trust Territory of Pacific.............................. 1,983,000
---------------
Total............................................. 1,000,000,000
------------------------------------------------------------------------


§ 35.910-8 Allotments for fiscal years 1978–1981.
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(a) Unless later legislation requires otherwise, for each of the fiscal years 1978–1981, all funds appropriated under authorizations in section 207 of the Act will be distributed among the States based on the following percentages drawn from table 3 of Committee print numbered 95–30 of the Committee on Public Works and Transportation of the House of Representatives:



------------------------------------------------------------------------
State Percentage
------------------------------------------------------------------------
Alabama..................................................... 1.2842
Alaska...................................................... .4235
Arizona..................................................... .7757
Arkansas.................................................... .7513
California.................................................. 7.9512
Colorado.................................................... .9187
Connecticut................................................. 1.1072
Delaware.................................................... .3996
District of Columbia........................................ .3193
Florida..................................................... 3.8366
Georgia..................................................... 1.9418
Hawaii...................................................... .7928
Idaho....................................................... .4952
Illinois.................................................... 5.1943
Indiana..................................................... 2.7678
Iowa........................................................ 1.2953
Kansas...................................................... .8803
Kentucky.................................................... 1.4618
Louisiana................................................... 1.2625
Maine....................................................... .7495
Maryland.................................................... 2.7777
Massachusetts............................................... 2.9542
Michigan.................................................... 4.1306
Minnesota................................................... 1.8691
Mississippi................................................. .9660
Missouri.................................................... 2.4957
Montana..................................................... .3472
Nebraska.................................................... .5505
Nevada...................................................... .4138
New Hampshire............................................... .8810
New Jersey.................................................. 3.5715
New Mexico.................................................. .3819
New York.................................................... 10.6209
North Carolina.............................................. 1.9808
North Dakota................................................ .3107
Ohio........................................................ 6.4655
Oklahoma.................................................... .9279
Oregon...................................................... 1.2974
Pennsylvania................................................ 4.3616
Rhode Island................................................ .5252
South Carolina.............................................. 1.1766
South Dakota................................................ .3733
Tennessee................................................... 1.5486
Texas....................................................... 4.3634
Utah........................................................ .4457
Vermont..................................................... .3845
Virginia.................................................... 1.9602
Washington.................................................. 1.7688
West Virginia............................................... 1.7903
Wisconsin................................................... 1.9503
Wyoming..................................................... .3003
Guam........................................................ .0744
Puerto Rico................................................. 1.1734
Virgin Islands.............................................. .0378
American Samoa.............................................. .0616
Trust Territory of Pacific.................................. .1530
-----------
Total................................................. 100.00
------------------------------------------------------------------------


(b) Based on paragraph (a) of this section, and table 4 of the committee print, the following authorizations are allotted among the States subject to the limitations of paragraph (c) of this section:



------------------------------------------------------------------------
For each of
For fiscal the fiscal
State year 1978 years 1979,
1980, 1981
------------------------------------------------------------------------
Alabama................................. $57,789,000 $64,210,000
Alaska.................................. 19,057,500 21,175,000
Arizona................................. 34,906,500 38,785,000
Arkansas................................ 33,808,500 37,565,000
California.............................. 357,804,000 397,560,000
Colorado................................ 41,341,500 45,935,000
Connecticut............................. 49,824,000 55,360,000
Delaware................................ 17,982,000 19,980,000
District of Columbia.................... 14,368,500 15,965,000
Florida................................. 172,647,000 191,830,000
Georgia................................. 87,381,000 97,090,000
Hawaii.................................. 35,676,000 39,640,000
Idaho................................... 22,284,000 24,760,000
Illinois................................ 233,743,500 259,715,000
Indiana................................. 124,551,000 138,390,000
Iowa.................................... 58,288,500 64,765,000
Kansas.................................. 39,613,500 44,015,000
Kentucky................................ 65,781,000 73,090,000
Louisiana............................... 56,812,500 63,125,000
Maine................................... 33,727,500 37,475,000
Maryland................................ 124,996,500 138,885,000
Massachusetts........................... 132,939,000 147,710,000
Michigan................................ 185,877,000 206,530,000
Minnesota............................... 84,109,500 93,455,000
Mississippi............................. 43,470,000 48,300,000
Missouri................................ 112,306,500 124,785,000
Montana................................. 15,624,000 17,360,000
Nebraska................................ 24,772,500 27,525,000
Nevada.................................. 18,621,000 20,690,000
New Hampshire........................... 39,645,000 44,050,000
New Jersey.............................. 160,717,500 178,575,000
New Mexico.............................. 17,185,500 19,095,000
New York................................ 477,940,500 531,045,000
North Carolina.......................... 89,136,000 99,040,000
North Dakota............................ 13,981,500 15,535,000
Ohio.................................... 290,947,500 323,275,000
Oklahoma................................ 41,755,500 46,395,000
Oregon.................................. 58,383,000 64,870,000
Pennsylvania............................ 196,272,000 218,080,000
Rhode Island............................ 23,634,000 26,260,000
South Carolina.......................... 52,947,000 58,830,000
South Dakota............................ 16,798,500 18,665,000
Tennessee............................... 69,687,000 77,430,000
Texas................................... 196,353,000 218,170,000
Utah.................................... 20,056,500 22,285,000
Vermont................................. 17,302,500 19,225,000
Virginia................................ 88,209,000 98,010,000
Washington.............................. 79,596,000 88,440,000
West Virginia........................... 80,563,500 89,515,000
Wisconsin............................... 87,763,500 97,515,000
Wyoming................................. 13,513,500 15,015,000
Guam.................................... 3,348,000 3,720,000
Puerto Rico............................. 52,803,000 58,670,000
Virgin Islands.......................... 1,701,000 1,890,000
American Samoa.......................... 2,772,000 3,080,000
Trust Territory of the Pacific Islands.. 6,885,000 7,650,000
-------------------------------
Total............................. 4,500,000,000 5,000,000,000
------------------------------------------------------------------------


(c) The authorizations in paragraph (b) of this section depend on appropriation. Therefore, the Regional Administrator may not obligate any portion of any authorization for a fiscal year until a law is enacted appropriating part or all of the sums authorized for that fiscal year. If sums appropriated are less than the sums authorized for a fiscal year, EPA will apply the percentages in paragraph (a) of this section to distribute all appropriated sums among the States, and promptly will notify each State of its share. The Regional Administrator may not obligate more than the State's share of appropriated sums.

(d) If supplementary funds are appropriated in any fiscal year under section 205(e) of the Act to carry out the purposes of this paragraph, no State shall receive less than one-half of 1 percent of the total allotment among all States for that fiscal year, except that in the case of Guam, the Virgin Islands, American Samoa, and the Trust Territories not more than thirty-three one-hundredths of 1 percent of the total allotment shall be allotted to all four of those jurisdictions. If for any fiscal year the amount appropriated to carry out this paragraph is less than the full amount needed, the following States will share in any funds appropriated for the purposes of this paragraph in the following percentages, drawn from the note to table 3 of committee print numbered 95–30 of the Committee on Public Works and Transportation of the House of Representatives:



------------------------------------------------------------------------
State Percentage
------------------------------------------------------------------------
Alaska...................................................... 5.4449
Delaware.................................................... 7.1459
District of Columbia........................................ 12.8612
Idaho....................................................... .3416
Montana..................................................... 10.8755
Nevada...................................................... 6.1352
New Mexico.................................................. 8.4057
North Dakota................................................ 13.4733
South Dakota................................................ 9.0178
Utah........................................................ 3.8648
Vermont..................................................... 8.2206
Wyoming..................................................... 14.2135
-----------
Total................................................. 100.0000
------------------------------------------------------------------------


§ 35.910-9 Allotment of Fiscal Year 1978 appropriation.
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(a) Public Law 95–240 appropriated $4.5 billion. These allotments are available until expended but must be obligated by September 30, 1979. After that date unobligated balances will be reallotted under section 205(b) of the Act (see §35.910–2(b)).

(b) These sums were allotted to the States as shown in §35.910–8(b).

[43 FR 56200, Nov. 30, 1978]

§ 35.910-10 Allotment of Fiscal Year 1979 appropriation.
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(a) Title II of Public Law 95–392 appropriated $4.2 billion. These allotments are available until expended but must be obligated by September 30, 1980. After that date, unobligated balances will be reallotted under section 205(b) of the Act (see §35.910–2(b)).

(b) The allotments were computed by applying the percentages in §35.910–8(a) and (b) to the funds appropriated for FY 1979 and rounding to the nearest hundred dollars.

(c) The $4.2 billion are allotted as follows:



------------------------------------------------------------------------
Allotments
from funds
State appropriated
under Pub. L.
95-392
------------------------------------------------------------------------
Alabama................................................. $53,189,100
Alaska.................................................. 20,709,000
Arizona................................................. 32,128,000
Arkansas................................................ 31,117,400
California.............................................. 329,323,400
Colorado................................................ 38,050,800
Connecticut............................................. 45,858,100
Delaware................................................ 20,709,000
District of Columbia.................................... 20,709,000
Florida................................................. 158,904,600
Georgia................................................. 80,425,600
Hawaii.................................................. 32,836,300
Idaho................................................... 20,709,000
Illinois................................................ 215,137,900
Indiana................................................. 114,637,000
Iowa.................................................... 53,648,800
Kansas.................................................. 36,460,300
Kentucky................................................ 60,545,000
Louisiana............................................... 52,290,300
Maine................................................... 31,042,900
Maryland................................................ 115,047,000
Massachusetts........................................... 122,357,300
Michigan................................................ 171,081,500
Minnesota............................................... 77,414,600
Mississippi............................................. 40,009,900
Missouri................................................ 103,367,100
Montana................................................. 20,709,000
Nebraska................................................ 22,800,700
Nevada.................................................. 20,709,000
New Hampshire........................................... 36,489,300
New Jersey.............................................. 147,924,700
New Mexico.............................................. 20,709,000
New York................................................ 439,897,200
North Carolina.......................................... 82,040,900
North Dakota............................................ 20,709,000
Ohio.................................................... 267,788,600
Oklahoma................................................ 38,431,900
Oregon.................................................. 53,735,800
Pennsylvania............................................ 180,649,100
Rhode Island............................................ 21,752,800
South Carolina.......................................... 48,732,500
South Dakota............................................ 20,709,000
Tennessee............................................... 64,140,000
Texas................................................... 180,723,600
Utah.................................................... 20,709,000
Vermont................................................. 20,709,000
Virginia................................................ 81,187,700
Washington.............................................. 73,260,300
West Virginia........................................... 74,150,800
Wisconsin............................................... 80,777,700
Wyoming................................................. 20,709,000
American Samoa.......................................... 2,551,400
Guam.................................................... 3,081,500
Northern Mariana Islands................................ 570,300
Puerto Rico............................................. 48,600,000
Trust Territory of Pacific.............................. 5,766,700
Virgin Islands.......................................... 1,565,600
---------------
Total............................................. 4,200,000,000
------------------------------------------------------------------------


[43 FR 56201, Nov. 30, 1978, as amended at 44 FR 37595, June 27, 1979; 44 FR 39339, July 5, 1979]

§ 35.910-11 Allotment of Fiscal Year 1980 appropriation.
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(a) Title II of Public Law 96–103 appropriated $3.4 billion. These allotments are available until expended but must be obligated by September 30, 1981. After that date, unobligated balances will be reallotted under section 205(b) of the Act (see §35.910–2(b)).

(b) The allotments were computed by applying the percentages in §35.910–8 (a) and (d) to the funds appropriated for FY 1980 and rounding to the nearest hundred dollars.

(c) The $3.4 billion are alloted as follows:



------------------------------------------------------------------------
Allotments
from funds
State appropriated
under Pub. L.
95-372
------------------------------------------------------------------------
Alabama................................................. $43,057,800
Alaska.................................................. 16,764,500
Arizona................................................. 26,008,400
Arkansas................................................ 25,190,300
California.............................................. 266,595,100
Colorado................................................ 30,803,000
Connecticut............................................. 37,123,200
Delaware................................................ 16,764,500
District of Columbia.................................... 16,764,500
Florida................................................. 128,637,000
Georgia................................................. 65,106,400
Hawaii.................................................. 26,581,700
Idaho................................................... 16,764,500
Illinois................................................ 174,159,300
Indiana................................................. 92,801,300
Iowa.................................................... 43,430,000
Kansas.................................................. 29,515,500
Kentucky................................................ 49,012,600
Louisiana............................................... 42,330,300
Maine................................................... 25,129,900
Maryland................................................ 93,133,300
Massachusetts........................................... 99,051,100
Michigan................................................ 138,494,500
Minnesota............................................... 62,668,900
Mississippi............................................. 32,388,900
Missouri................................................ 83,678,100
Montana................................................. 16,764,500
Nebraska................................................ 18,457,700
Nevada.................................................. 16,764,500
New Hampshire........................................... 29,539,000
New Jersey.............................................. 119,748,500
New Mexico.............................................. 16,764,500
New York................................................ 356,107,300
North Carolina.......................................... 66,414,100
North Dakota............................................ 16,764,500
Ohio.................................................... 216,781,200
Oklahoma................................................ 31,111,500
Oregon.................................................. 43,500,400
Pennsylvania............................................ 146,239,700
Rhode Island............................................ 17,609,400
South Carolina.......................................... 39,450,100
South Dakota............................................ 16,764,500
Tennessee............................................... 51,922,900
Texas................................................... 146,300,100
Utah.................................................... 16,764,500
Vermont................................................. 16,764,500
Virginia................................................ 65,723,400
Washington.............................................. 59,305,900
West Virginia........................................... 60,026,800
Wisconsin............................................... 65,391,400
Wyoming................................................. 16,764,500
American Samoa.......................................... 2,065,400
Guam.................................................... 2,494,500
Puerto Rico............................................. 39,342,800
Trust Terr.............................................. 4,667,200
Virgin Islands.......................................... 1,267,400
Northern Marianas....................................... 462,700
---------------
Total............................................. 3,400,000,000
------------------------------------------------------------------------


[45 FR 16486, Mar. 14, 1980]

§ 35.910-12 Reallotment of deobligated funds of Fiscal Year 1978.
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(a) Of the 4.5 billion appropriated by Public Law 95–240 for Fiscal Year 1978, $23,902,130 remained unobligated as of September 30, 1979 and thereby became subject to reallotment.

(b) The reallotment was computed by applying the percentages in §35.910–8(a), adjusted to account for the absence of Ohio and readjusted to comply with the requirements of §35.910(d) establishing a minimum allotment of .5 percent.

(c) These funds are added to the Fiscal Year 1980 allotments and will remain available through September 30, 1981 (see §§35.910–2(b) and 35.910–8).

(d) The $23,902,130 is allotted as follows:


------------------------------------------------------------------------
State Amount
------------------------------------------------------------------------
Alabama.................................................... $324,543
Alaska..................................................... 118,190
Arizona.................................................... 196,050
Arkansas................................................... 189,880
California................................................. 2,009,389
Colorado................................................... 232,191
Connecticut................................................ 279,813
Delaware................................................... 118,190
District of Columbia....................................... 118,190
Florida.................................................... 969,582
Georgia.................................................... 490,736
Hawaii..................................................... 200,367
Idaho...................................................... 125,148
Illinois................................................... 1,312,681
Indiana.................................................... 699,465
Iowa....................................................... 327,345
Kansas..................................................... 222,494
Kentucky................................................... 369,430
Louisiana.................................................. 319,073
Maine...................................................... 189,428
Maryland................................................... 701,974
Massachusetts.............................................. 746,591
Michigan................................................... 1,043,875
Minnesota.................................................. 472,360
Mississippi................................................ 244,147
Missouri................................................... 630,710
Montana.................................................... 118,190
Nebraska................................................... 139,138
Nevada..................................................... 118,190
New Hampshire.............................................. 222,653
New Jersey................................................. 902,590
New Mexico................................................. 118,190
New York................................................... 2,684,060
North Carolina............................................. 500,590
North Dakota............................................... 118,190
Oklahoma................................................... 234,496
Oregon..................................................... 327,888
Pennsylvania............................................... 1,102,234
Rhode Island............................................... 132,719
South Carolina............................................. 297,352
South Dakota............................................... 118,190
Tennessee.................................................. 391,354
Texas...................................................... 1,102,708
Utah....................................................... 118,190
Vermont.................................................... 118,190
Virginia................................................... 495,392
Washington................................................. 447,046
West Virginia.............................................. 452,493
Wisconsin.................................................. 492,883
Wyoming.................................................... 118,190
Guam....................................................... 18,805
Puerto Rico................................................ 296,561
Virgin Islands............................................. 9,561
American Samoa............................................. 15,573
Tr. Terr. of Pac. Islds.................................... 35,192
N. Mariana Islds........................................... 3,480
------------
Total..................................................... 23,902,130
------------------------------------------------------------------------


[45 FR 83497, Dec. 19, 1980. Correctly designated at 46 FR 9947, Jan. 30, 1981]

§ 35.912 Delegation to State agencies.
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EPA's policy is to maximize the use of staff capabilities of State agencies. Therefore, in the implementation of the construction grant program, optimum use will be made of available State and Federal resources. This will eliminate unnecessary duplicative reviews of documents required in the processing of construction grant awards. Accordingly, the Regional Administrator may enter into a written agreement, where appropriate, with a State agency to authorize the State agency's certification of the technical or administrative adequacy of specifically required documents. The agreement may provide for the review and certification of elements of:

(a) Facilities plans (step 1),

(b) plans and specifications (step 2),

(c) operation and maintenance manuals, and

(d) such other elements as the Regional Administrator determines may be appropriately delegated as the program permits and State competence allows. The agreement will define requirements which the State will be expected to fulfill as part of its general responsibilities for the conduct of an effective preaward applicant assistance program; compensation for this program is the responsibility of the State. The agreement will also define specific duties regarding the review of identified documents prerequisite to the receipt of grant awards. A certification agreement must provide that an applicant or grantee may request review by the Regional Administrator of an adverse recommendation by a State agency. Delegation activities are compensable by EPA only under section 106 of the Act or subpart F of this part.

§ 35.915 State priority system and project priorty list.
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Construction grants will be awarded from allotments according to the State priority list, based on the approved State priority system. The State priority system and list must be designed to achieve optimum water quality management consistent with the goals and requirements of the Act.

(a) State priority system. The State priority system describes the methodology used to rate and rank projects that are considered eligible for assistance. It also sets forth the administrative, management, and public participation procedures required to develop and revise the State project priority list. In developing its annual priority list, the State must consider the construction grant needs and priorities set forth in certified and approved State and areawide water quality management (WQM) plans. The State shall hold a public hearing before submission of the priority system (or revision thereto). Before the hearing, a fact sheet describing the proposed system (including rating and ranking criteria) shall be distributed to the public. A summary of State responses to public comment and to any public hearing testimony shall be prepared and included in the priority system submission. The Regional Administrator shall review and approve the State priority system for procedural completeness, insuring that it is designed to obtain compliance with the enforceable requirements of the Act as defined in §35.905. The Regional Administrator may exempt grants for training facilities under section 109(b)(1) of the Act and §35.930–1(b) from these requirements.

(1) Project rating criteria. (i) The State priority system shall be based on the following criteria:

(A) The severity of the pollution problem;

(B) The existing population affected;

(C) The need for preservation of high quality waters; and

(D) At the State's option, the specific category of need that is addressed.

(ii) The State will have sole authority to determine the priority for each category of need. These categories comprise mutually exclusive classes of facilities and include:

(A) Category I—Secondary treatment;

(B) Category II—More stringent treatment;

(C) Category IIIA—Infiltration/inflow correction;

(D) Category IIIB—Sewer system replacement or major rehabilitation;

(E) Category IVA—New collectors and appurtenances;

(F) Category IVB—New interceptors and appurtenances; and

(G) Category V—Correction of combined sewer overflows.

(iii) Step 2, step 3 and step 2=3 projects utilizing processes and techniques meeting the innovative and alternative guidelines in appendix E of this part may receive higher priority. Also 100 percent grants for projects that modify or replace malfunctioning treatment works constructed with an 85 percent grant may receive a higher priority.

(iv) Other criteria, consistent with these, may be considered (including the special needs of small and rural communities). The State shall not consider: The project area's development needs not related to pollution abatement; the geographical region within the State; or future population growth projections.

(2) Criteria assessment. The State shall have authority to determine the relative influence of the rating criteria used for assigning project priority. The criteria must be clearly delineated in the approved State priority system and applied consistently to all projects. A project on the priority list shall generally retain its priority rating until an award is made.

(b) State needs inventory. The State shall maintain a listing, including costs by category, of all needed treatment works. The most recent needs inventory, prepared in accordance with section 516(b)(1)(B) of the Act, should be used for this purpose. This State listing should be the same as the needs inventory and fulfills similar requirements in the State WQM planning process. The State project priority list shall be consistent with the needs inventory.

(c) State project priority list. The State shall prepare and submit annually a ranked priority listing of projects for which Federal assistance is expected during the 5-year planning period starting at the beginning of the next fiscal year. The list's fundable portion shall include those projects planned for award during the first year of the 5-year period (hereinafter called the funding year). The fundable portion shall not exceed the total funds expected to be available during the year less all applicable reserves provided in §35.915–1 (a) through (d). The list's planning portion shall include all projects outside the fundable portion that may, under anticipated allotment levels, receive funding during the 5-year period. The Administrator shall provide annual guidance to the States outlining the funding assumptions and other criteria useful in developing the 5-year priority list.

(1) Project priority list development. The development of the project priority list shall be consistent with the rating criteria established in the approved priority system, in accordance with the criteria in paragraph (a)(1) of this section. In ranking projects, States must also consider the treatment works and step sequence; the allotment deadline; total funds available; and other management criteria in the approved State priority system. In developing its annual priority list, the State must consider the construction grant needs and priorities set forth in certified and approved State and areawide WQM plans. The Regional Administrator may request that a State provide justification for the rating or ranking established for specific project(s).

(2) Project priority list information. The project priority list shall include the information for each project that is set out below for projects on the fundable portion of the list. The Administrator shall issue specific guidance on these information requirements for the planning portion of the list, including phase-in procedures for the fiscal year 1979 priority planning process.

(i) State assigned EPA project number;

(ii) Legal name and address of applicant;

(iii) Short project name or description;

(iv) Priority rating and rank of each project, based on the approved priority system; (continued)