§ 51-0305. Contracts for water quailty improvement projects.

1. The commissioner, in the name of the state, may enter into
contracts with municipalities having power to construct, operate and
maintain sewage treatment works, and any such municipality may enter
into a contract with the commissioner concerning eligible projects. Any
such contract may include such provisions as may be agreed upon by the
parties thereto, and shall include, in substance, the following
provisions:

a. Current estimate of the reasonable cost of the project as
determined by the commissioner at the time of execution of the contract.
The commissioner shall not be precluded by section two hundred twenty of
this title from determining a reasonable cost for any project enumerated
in such section different from the estimated cost of such section.

b. An agreement by the commissioner to pay to the municipality, during
the progress of construction subject to final computation and
determination of the total state grant upon completion of the entire
project reflecting the project cost, a portion of the non-federal share
of the cost of any project, phase or portion thereof approved for a
federal treatment works construction grant, determined by the following
formulae:

(i) for any project which has received a Federal Clean Water Act
section 202(a)(1) grant in an amount which is that per centum of the
cost of construction authorized for federal fiscal years beginning July
first, nineteen hundred seventy-one and ending September thirtieth,
nineteen hundred eighty-four, inclusive, an amount that is one-half of
the non-federal share of the cost of the eligible project, not to exceed
thirty percent thereof;

(ii) for any project which has received a grant pursuant to Federal
Clean Water Act section 202(a)(1) or section 201 as amended in nineteen
hundred eighty-one, which is that reduced per centum of the costs of
construction authorized for federal fiscal years beginning on and after
October first, nineteen hundred eighty-four, an amount that is
two-thirds of the non-federal share of the eligible cost of the project,
not to exceed thirty percent thereof;

(iii) for any project or portion of a project which has received a
federal grant for utilization of innovative or alternative treatment
processes and techniques pursuant to the provisions of section 202(a)(2)
of the Federal Clean Water Act, thirty percent of the cost of the
innovative or alternative portion of the eligible project, provided that
the local share of the innovative or alternative portion will be a
minimum of seven and one-half percent.

c. An agreement by the municipality

1. to proceed expeditiously with, and complete, the project in
accordance with plans approved by the department,

2. to commence operation of the sewage treatment works on completion
of the project, and not to discontinue operation or dispose of the
sewage treatment works without the approval of the commissioner,

3. to operate and maintain the sewage treatment works in accordance
with applicable provisions of law, the state sanitary code or rules and
regulations of the commissioner,

4. to provide for the payment of the municipality's share of the cost
of the project.

d. A provision that, in the event that federal pollution abatement
assistance which was not included in the calculation of the state
payment pursuant to paragraph b of this subdivision becomes available to
the municipality, the amount of the state payment shall be recalculated
with the inclusion of such additional federal assistance and the
municipality shall either:

1. pay to the state the amount by which the state payment actually
made exceeds the state payment determined by the recalculation or

2. if such additional federal pollution abatement assistance has not
been received by the municipality, authorize the state to receive and
retain an amount from the federal government equal to the amount to
which it would be entitled under subparagraph 1 hereof.

2. In connection with each contract, the commissioner shall keep
adequate records of the amount of the payment by the state pursuant to
paragraph b of subdivision one of this section of the amount of federal
assistance received by the municipality. Such records shall be retained
by the commissioner and shall establish the basis for recalculation of
the state payment as required by paragraph d of subdivision one of this
section.