Mr. QUIGLEY. These grants are designed and intended to encourage he States ot expand and beef up their own programs-promoting and lanning for construction, research, and enforcement.

Senator MUSKIE. The Secretary has referred to increases in State ppropriations. I was just wondering what the nature of the State ppropriations were.

Mr. QUIGLEY. They would vary, Mr. Chairman.

Senator MUSKIE. It would include construction?

Mr. QUIGLEY. The Federal grants are, in effect, seed money, to enourage the States to expand and beef up their programs. And varius States have done it in various ways. Some have done a com

endable job. Some have done considerably less.

Senator MUSKIE. Well, the thing I am interested in: if this figure n State appropriations includes construction grants, then it would eem to be very small.

Mr. QUIGLEY. In most instances, it does not. This would be for creased staff, increased personnel. The amount of research and the mount of construction grants that you will get at the State level is ɔmparatively small.

Senator MUSKIE. How many States do provide construction grants? know my State does.

Mr. QUIGLEY. I cannot answer that offhand, but we could certainly upply the answer for the record.

Senator MUSKIE. If it is not already included in the staff study, I ould appreciate that.

(Subsequently the following exhibit was submitted:)

State grants for the construction of municipal sewage treatment facilities

State

Provisions

Amount 1

orgia. aine. aryland.

w Hampshire.

w Mexico..

w York

nnsylvania..

rmont.

Annual payment of 2 percent of cost of construction or 18, 556, 812 repair of treatment works.

Grants of 20 percent...

$ 2,817,000

State water pollution control fund of $1 million is available for making loans 2 percent interest to municipalities and districts for the construction of sewere and storm drainage facilities.

Loans are made by the State water pollution control board subject to the apoval of the State director of finance. In order for such loans to be made, it ust be determined that the facilities are necessary for health and welfare of e inhabitants, funds are not available, commercial sale of revenue bonds is possible, and the proposed repayment plan is feasible (ch. 221, Statutes 1953).

20-495-63- -29

GEORGIA

Provides a State grant to any county, municipality, or any combination of the same to assist in the construction of those water pollution control projects as qualify for Federal aid and assistance under the provisions of the Federal Water Pollution Control Act. The State's contribution matches the Federal grant of 30 percent or $250,000, whichever is less. The State board of health is to administer the State grants in direct conjunction with the administration of Federal funds granted. Determination of the relative need, priority of projects, and standards of construction are to be consistent with the Federal Water Pollution Control Act provisions (Act 73, laws 1961, House bill No. 175, approved Mar. 6, 1961).

INDIANA

A revolving fund of $500,000 has been created to assist units of Government to defray the cost of preparing surveys, plans, and specifications for the construction of public buildings, publicly owned and operated facilities, utilities, and services. Loans are made by the State board of finance upon the report and recommendations of the Indiana Economic Council which has the responsibility for review and investigation of the application and certification of the amount which may be loaned upon any said application. Any amount loaned is an obligation of the unit of government and must be repaid within a period of time fixed by the State board of finance not to exceed 3 years. When facilities are constructed for which planning money was received, the loan is considered as a part of the cost of such project and constitutes a lien against the same; when bonds are issued for the project, the loan must be repaid in full immediately following the sale of bonds (Acts of Indiana, 1945, ch. 136, amended by acts of 1951, ch. 200).

MAINE

State water improvement commission is authorized to pay an amount equal to the total Federal contribution under Feleral Water Pollution Control Act (Public Law 660, 84th Cong.), for the construction of municipal sewage treatment works receiving Federal approval and Federal funds (laws of 1957, ch. 429, 1961, ch. 299, Revised Statutes, c. 79. sec. 7-A). For the 1962-63 biennium, a total of $450,000 was arpropriated for State grants for construction of facilities (cb. 249. Private and Special Laws, 1961).

State water improvement commission is authorized to pay up to $2,500 or 50 percent, whichever is less, for the cost of sewage surveys by municipal, quasimunicipal corporations, or regional planning commissions (Laws of 1959, ch. 294; 1961, ch. 311; Revised Statutes, c. 79, sec. 7–B).

MARYLAND

A fund of $5 million is authorized (established by a State loan) to be used to supplement grants made under the Federal Water Pollution Control Act (Public Law 660, 84th Cong.). Any municipality which has received a Federal grant may petition the State for an equal or matching grant subject to the limitation that the State and Federal grants combined are not to exceed 50 percent of the total cost of the project. The petition is directed to the State board of health. When the board approves the plans it forwards the petition to the board of public works with its report that the project has been approved by the U.S. Public Health Service and the State department of health. The board of public works then makes the grant of State funds (Laws of Maryland, 1957, ch. 741; 1960, ch. 25). An additional $5,000,000 Sewage Treatment Works Loan of 1962 is authorized and directed to be issued. State aid to any one project by any one municipality may not exceed $400,000 (Laws of Maryland, 1962, ch. 72). The State board of health is charged with assisting the counties and municipalities in developing comprehensive master plans for the construction of the basic main facilities (construed to include sewage treatment plants, intercepting sewers, outfall sewers, pumping stations, and forced mains connected therewith) of sewerage systems for the collection and disposal of sewage and industrial wastes from lateral or collector sewers. The board is directed to coordinate plans upon a regional basis when deemed advisable. A sanitary facilities construction fund is established, consisting of funds as provided in the annual budget. to finance local planning for sewage facilities upon an equal matching basis with counties, municipalities, or any agency thereof, and to defray the board's

independent planning. The department of health may approve a State grant from the fund to assist the construction of basic main facilities if it determines that the applicant county or municipality, or a duly authorized agency, is not able to finance such construction by normal taxes, assessments, service charges, connection charges, and available State and Federal assistance. The grant may not exceed the local funds appropriated for the construction (Laws of Maryland, 1961, ch. 411).

NEW HAMPSHIRE

The State is authorized to guarantee unconditionally a total aggregate sum for the entire State of $15 million of bonds issued by municipalities (towns, cities, counties, or districts), for construction of sewage systems, sewage treatment and disposal plants, or other necessary facilities for pollution control. All bonds so guaranteed shall be sold (1) at public sealed bidding; (2) after advertisement for bids; (3) to the highest bidder. Any and all of the bids may be rejected and a sale may be negotiated with the highest bidder (Laws of New Hampshire, 1949, ch. 247; 1957, ch. 213; 1961, ch. 182; R.S.A. 149:5 supp.)).

The State shall, in addition to the Federal grant made under the Federal Water Pollution Control Act, pay annually 20 percent of the yearly amortization charges on the original costs resulting from the acquisition and construction of sewage disposal facilities by municipalities (meaning counties, cities, towns, or village districts) for water pollution control. Retroactive payments are authorized for construction since July 1, 1947 (Laws of New Hampshire, 1959, ch. 267; 1961, ch. 55; R.S.A. 149-B:1 (supp.)).

NEW MEXICO

Authorizes grants to associations formed in rural, unincorporated communities to provide facilities for the development of adequate sanitary domestic water supply, sewage works, or both. The State department of public health administers this program.

As a prerequisite to the grant the communities must agree to contribute all unskilled labor and such skilled labor as is available and desirable and to contribute all available materials such as stone, lumber, and sand. The community must have been in existence 25 years or longer.

Subdivisions adjacent to incorporated communities are not eligible. The association must contribute one-third of the estimated cost. 1957, ch. 122; Senate bill No. 57.)

NEW YORK

New title 9 to article 12 of the public health law provides :

I. Planning assistance for comprehensive studies and reports

(Laws of

Effective April 1, 1962, the commissioner of health may make a State grant to any municipality, or to two or more municipalities jointly, to cover the entire cost of the preparation of a comprehensive study and report for the present and future collection, treatment, and disposal of sewage in the municipality or municipalities. This authority is to extend for 10 successive fiscal years.

Defines the comprehensive study and report to be an engineering study for the development of economical projects for the present and future collection, treatment, and disposal of sewage for one or more municipalities or any portion thereof. The study is to include the determination of the area or areas to be served, total and annual cost estimates and proposed method of financing, the general plan for the contemplated sewerage project, basic information for economical enlargement to serve future areas and population, and major alternative solutions. (The initial annual cost of the new planning assistance program is estimated at $750,000.)

II. Grants for construction of sewage treatment works

Beginning with the fiscal year commencing on April 1, 1963, and for the followng 9 fiscal years, the commissioner shall make capital grants to municipalities for construction of sewage treatment works. The grants are to be in the same amounts and limitations as Federal grants under the Federal Water Pollution Control Act, i.e., 30 percent or $600,000, whichever is less, for an individual project and the total of the shares of participating communities or $2,400,000, whichever is less, for a joint project. The State grants become available only when the Federal allotment has been exhausted and are limited in any 1 fiscal wear to an amount equal to 50 percent of the Federal grant allotment. No mu

nicipality may receive both State and Federal grants in excess of the limitations of the basic Federal grant formula; however, municipalities, which receive only a partial grant in relation to their full entitlement from the Federal allotment because of nonavailability of Federal funds may receive the remainder from State funds.

The commissioner is to report annually to the water resources commission on these two programs.

Applications for previously authorized State assistance now pending with the superintendent of public works may be approved up until October 1, 1962, and any not approved by that date shall lapse. Records on these projects are to be transferred to the commissioner of health (Ch. 320, Laws 1962 (A. 4902, approved Apr. 4, 1962)).

New section to new title 9 of article 12 of the public health law provides: III. Assistance for operation and maintenance of municipal sewage treatment works

During each of the 10 successive fiscal years of a municapility beginning with the fiscal year starting on June 1, 1962, the commissioner of health shall provide State assistance to each municipality, or municipalities working together, in the amount of one-third of the amount expended by the municipality for the operation and maintenance of its sewage treatment works.

Municipalities must submit (1) audited costs of plant operation, (2) reports on plant performance and effect on receiving waters, (3) evidence that the plant is under qualified operator supervision, (4) evidence that tributary area sewage reaches the plant for processing, and (5) evidence that the plant is and has been constructed in substantial compliance with plans approved by and on file with the commissioner. The commissioner shall make an annual inspection of operating conditions and results at each sewage treatment plant for which State assistance is granted. He shall, in addition, promulgate necessary rules and regulations including standards of operating efficiency for sewage treatment works, based on the best usage of the receiving waters, type of treatment provided, and available dilution. (State assistance is estimated to amount to $6.6 million for the first full year and increase to $11.8 million in the 10th year.) (Ch. 321, Laws 1962 (A. 4903, approved Apr. 4, 1962)).

OHIO

An emergency village capital improvement rotary fund created to be used to make advances to those villages only which do not have an existing municipal sewerage system, to pay all or part of the cost of preparing plans for construction, among other things, of sewage treatment works. When the bonds of the village for such construction are sold it must repay the advance (S. 265, 1957 Laws of Ohio).

OREGON

Small municipalities (not more than 3,500 population) certified by the State sanitary authority (the pollution control agency within the State board of health) as being in need of sewerage systems and unable to sell their bonds on the public market or to obtain satisfactory offers therefor, may apply to the State bond commission for financing the costs of the projects (purchase their bonds). A State sewer bond revolving fund of $1,655,000 has been established for this purpose.

Background

The Oregon legislation on this subject was first enacted in 1949, and has been amended and extended in 1951, 1953, 1955, 1957, and 1959.

The 1949 act applied to municipalities of nor more than 2,500 population and appropriated the sum of $1,500,000 in a revolving fund known as State sewer bond revolving fund (ch. 500, Laws of 1949).

The act of 1951 transferred, as of October 1, 1951, from this fund the sum of $750,000 to the general fund of the State for general State purposes (ch. 299, Laws of 1951).

The 1953 act made it applicable to municipalities of not more than 3,500 population (ch. 287, Laws of 1953).

A further act in 1953 amended the appropriation sections of the 1949 and 1951 acts by appropriating to the revolving fund the total of $1,750,000 (ch. 459, Lews of 1953).

The act of 1955 transferred the sum of $60,000 from the State sewer bond revolving fund to the State sanitary district sewer bond fund to be used by the bond commission for investment in bonds of sanitary districts which have an assessed valuation of not more than $250,000 and which are unable to sell their bonds at interest not in excess of 4 percent (ch. 577, Laws of 1955).

An act of 1957 increased this amount to $70,000 and a further act of 1957 increased it to $95,000 (ch. 702, Laws of 1957, and ch. 14, special session Laws of 1957).

The 1959 act transferred the remaining uninvested and uncommitted funds from the State sewer bond revolving fund to a new sanitary district sewerage system revolving fund. The new fund is to be used in purchasing the bonds of any sanitary districts, with a valuation in excess of $750,000 which has not been able to sell its bonds at a rate below 5-percent interest. Repayments of principal are to be recredited to the State sewer bond revolving fund to be used to aid municipalities as originally provided (ch. 425, Laws of 1959).

PENNSYLVANIA

Municipalities and municipal authorities which have provided sewage treatwent facilities since 1937 are to receive from State funds annually an amount up to 2 percent of the cost (1) for the acquisition and construction of the sewage treatment plants and (2) for the repair, improvements, or additions to plants constructed before 1937 toward the cost of operating, maintaining, repairing, replacing, and other expenses relating to sewage treatment plants. Pumping stations and intercepting sewers which are an integral part of the treatment facilities are included in the definition of "construction." The program is administered by the State department of health. To date, $14,138,038 have been appropriated for this purpose (Laws of Pennsylvania, 1953, Act No. 330, and 1962, house bill No. 11, approved Mar. 7, 1962). Funds have also been appropriated to the department of health for grants of a share not to exceed 50 percent of the cost of planning waste treatment works by municipalities, municipal corporations, and private corporations (Laws of Pennsylvania, 1945, Act. No. 82-A).

A fund of $2 million (established by a State bond issue) was authorized to encourage water pollution control at the local level through State aid for the construction of sewage treatment plants by municipalities.

VERMONT

Each municipality, after having voted funds in a specific amount to construct or substantially improve a sewage treatment plant, may make application to the State water conservation board for State aid. After reviewing the application and plans and finding that the facilities are necessary and of proper type, the board shall award 20 percent of the cost of construction, not including any amount derived from private sources (Act No. 293, Laws of Vermont, 1957; Acts Nos. 128 and 260, Laws of Vermont, 1959).

The Vermont State Water Conservation Board may make available to any municipality in the State such assistance as may be requested of it in matters relating to surveys, studies, and plans for pollution abatement works (Act. No. 184, Laws of Vermont, 1957).

STATE LEGISLATION PROVIDING FINANCIAL ASSISTANCE TO INDUSTRIES FOR

WASTE TREATMENT FACILITIES

ARKANSAS

Allows a credit on severance taxes to oil producers who install underground salt water disposal systems (House bill 102, approved Feb. 18, 1959).

IDAHO

Exempts from taxation any facilities, installations, machinery, or equipment, attached or unattached to real property, and designed, installed, and utilized in the elimination, control, or prevention of water or air pollution. If other beneficial purposes and uses are served, exempts such portion of the assesed valuation as may reasonably be calculated to be necessary for and devoted to elimination, control, or prevention of water or air pollution. Any portion of any facilities which have value as the specific source of marketable byproducts is not included in the exemption (Senate bill 217, approved Mar. 25, 1963).