DESIGN/BUILD PROJECTS.

SEC. 204. DESIGN/BUILD PROJECTS. Section 203 is amended by adding at the end the following new subsection: “(f) Design/Build Projects.— “(1) Agreement.—Consistent with State law, an applicant who proposes to construct waste water treatment works may enter into an agreement with the Administrator under this subsection providing for the preparation of construction plans and specifications and the erection of such treatment works, in lieu of proceeding under the other provisions of this section. “(2) Limitation on projects.—Agreements under this subsection shall be limited to projects under an approved facility plan which projects are— “(A) treatment works that have an estimated total cost of $8,000,000 or less; and “(B) any of the following types of waste water treatment systems: aerated lagoons, trickling filters, stabilization ponds, land application systems, sand filters, and subsurface disposal systems. “(3) Required terms.—An agreement entered into under this subsection shall— “(A) set forth an amount agreed to as the maximum Federal contribution to the project, based upon a competitively bid document of basic design data and applicable standard construction specifications and a determination of the federally eligible costs of the project at the applicable Federal share under section 202 of this Act; “(B) set forth dates for the start and completion of construction of the treatment works by the applicant and a schedule of payments of the Federal contribution to the project; “(C) contain assurances by the applicant that (i) engineering and management assistance will be provided to manage the project; (ii) the proposed treatment works will be an operable unit and will meet all the requirements of this title; and (iii) not later than 1 year after the date specified as the date of completion of construction of the treatment works, the treatment works will be operating so as to meet the requirements of any applicable permit for such treatment works under section 402 of this Act; “(D) require the applicant to obtain a bond from the contractor in an amount determined necessary by the Administrator to protect the Federal interest in the project; and “(E) contain such other terms and conditions as are necessary to assure compliance with this title (except as provided in paragraph (4) of this subsection). “(4) Limitation on application.—Subsections (a), (b), and (c) of this section shall not apply to grants made pursuant to this subsection. “(5) Reservation to assure compliance.—The Administrator shall reserve a portion of the grant to assure contract compliance until final project approval as defined by the Adminis-101 STAT. 18trator. If the amount agreed to under paragraph (3)(A) exceeds the cost of designing and constructing the treatment works, the Administrator shall reallot the amount of the excess to the State in which such treatment works are located for the fiscal year in which such audit is completed. “(6) Limitation on obligations.—The Administrator shall not obligate more than 20 percent of the amount allotted to a State for a fiscal year under section 205 of this Act for grants pursuant to this subsection. “(7) Allowance.—The Administrator shall determine an allowance for facilities planning for projects constructed under this subsection in accordance with section 201(1). “(8) Limitation on federal contributions.— In no event shall the Federal contribution for the cost of preparing construction plans and specifications and the building and erection of treatment works pursuant to this subsection exceed the amount agreed upon under paragraph (3). “(9) Recovery action.— In any case in which the recipient of a grant made pursuant to this subsection does not comply with the terms of the agreement entered into under paragraph (3), the Administrator is authorized to take such action as may be necessary to recover the amount of the Federal contribution to the project. “(10) Prevention of double benefits.—A recipient of a grant made pursuant to this subsection shall not be eligible for any other grants under this title for the same project.”.