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B-194912,B-195507 1 (1979-10-04)

handle is hein.gao/gaobadhqs0001 and id is 1 raw text is: 

                    THE  COMPTROLLER GENERAL
                    OF  THE UNITED STATES.
                    WASHINGTON, D. C. 20548
*,~~


FILE:   B-194912 and B-195507


   MATTER   C


   DIGEST:


















      4I







KY ,W


DATE:  October 4, 1979


Federal Facility Contributions to Capital Costs
of Sewage Treatment Projects


1. Environmental  Protection Agency has no authority
to exclude from eligibility for .a construction grant a
percentage of the total costs of an otherwise acceptable
project to upgrade a wastewater treatment facility
equal to the percentage of service the facility would
be required to provide to a major Federal facility.
Section 202(a)(1) of the Federal Water Pollution Con-
trol Act as amended requires payment of full 75 per-
cent of approved costs of the total project. Although
justified as saving grant funds, EPA may not
artificially reduce the total costs of a project which
otherwise meets its standards solely to stretch avail-
able grant funds to cover additional projects.

2.  Department of Navy would normally have no
authority to make up shortfall in construction funds
due to EPA funding policy, described above, unless
costs were amortized and shared equally as part of
the rate by all users of sewer services. See B-189395,
April 27, 1978. However, recent military construction
authorization and appropriation acts specifically make
available funds for Navy's share of treatment facility
at Hampton Roads Sanitation District, Virginia, and at
plant in Honolulu, Hawaii. Navy may pay these costs
without requiring additional consideration for the
Government  as long as its contribution does not exceed
75 percent of the costs --the amount the locality would
have received but for the EPA funding policy.

3. Sufficient money was appropriated to enable Navy
to pay 100 percent of Navy's share of wastewater treat-
ment projects at Hampton Roads Sanitation District and
Honolulu.. However, there is no evidence that Congress
intended to give localities more construction assistance
than the 75 percent they would have otherwise received
but for EPA's funding policy. Therefore, Navy must
negotiate to obtain an additional benefit for the Govern-
ment commensurate  with the extra 25 percent contribu-
tion for capital costs.


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