Sec. 24-46(1). Federal Requirement for an Industrial Cost Recovery (ICR) Program. As required by Public Law 92-500, this section provides for the recovery of industry's share of federal grant funding of the regional sewage collection and treatment facilities. The environmental protection agency's (EPA) regulations for industrial cost recovery read, in part:
"Each year during the industrial cost recovery period, each industrial user of the treatment works shall pay its share of the total (federal) grant amount divided by the recovery period thirty (30) years or the life of the facility, whichever is less."
Sec. 24-46(2). Use of Funds Collected by the ICR Program.
(a) Fifty (50) percent of the total ICR funds collected shall be invested in obligations guaranteed by the U.S. Government in accordance with federal regulations (40 C.F.R. 35.928-2C). These funds, along with interest earned, shall be returned to the federal treasury not later than one hundred twenty (120) days after the end of the fiscal year ending June 30.
(b) Pending use, forty (40) percent of the total ICR funds collected shall be invested in obligations guaranteed by the U.S. Government in accordance with federal regulations (40 C.F.R. 35.928-2C). These funds shall be used solely for eligible costs of expansion or reconstruction of treatment works associated with the project and necessary to meet the requirements of Public Law 92-500, as approved in writing by the regional administrator of the EPA.
(c) The ten (10) percent of ICR funds remaining shall be used to help defer the cost of enforcing this sewer use article.
Sec. 24-46(3). ICR Charges. In accordance with Public Law 92-500, all industrial users shall be required to pay ICR charges, unless excluded. An industrial user may be excluded from ICR charges if he meets the following criterion: The user discharges only nonprocess segregated domestic wastes, or wastes from sanitary conveniences (for example, the so-called "dry" industries) and is not a significant industrial user under the regulations (40 C.F.R. 35.925-12).
Sec. 24-46(4). ICR Charge Computation for Industrial Users.
(a) The ICR charge computation for industrial users is based upon the benefits and responsibilities for any given project allocated only to those users actually served by a given project. Furthermore, if a user benefits from only part of a project, then ICR funds are recovered only for that portion of the project which benefits the user.
The ICR computation for industrial users functions to encourage industrial development where it would have the least impact on the wastewater treatment and collection system as well as to distribute the cost of grant-funded capital improvements to those users directly responsible for such improvements.
(b) The ICR charges for an industrial user shall be computed according to the following formulas:
1.
Total treatment: | |
ICR = TGF × VCF × AWD DCT | |
+ TGF × CCF × ACD DCC | |
+ TGF × SCF × ASD DCS | |
2. Annual treatment: | ICR = Total Treatment ICR 30 years |
(See minor section 24-46(6)) | |
3. Interceptor: | ICR = IGF × PUF × PWD DCV |
4. Annual interceptor: | ICR = Interceptor ICR 30 years |
(See minor section 24-46(6)) | |
5. Total annual:I | |
CT = | Annual Treatment ICR + Annual Interceptor ICR |
TGF = | Treatment grant funds equals total EPA grant funds received for planning, design and construction of the treatment project to which the user is tributary and which is in operation at the beginning of the recovery period. |
VCF = | Volume cost factor, or the ratio of the costs allocated to volume to the total cost of grant improvements. Pending future capital cost analysis, this factor shall be assumed equal to .53 or 53% of the total cost of treatment works. |
AWD = | Average wastewater discharge as found on the user's industrial wastewater discharge permit. |
DCT = | Design capacity for treatment expressed as the average daily dry weather flow. |
CCF = | COD cost factor. This factor shall be assumed equal to .31 until detailed capital cost analysis shows otherwise. |
ACD = | Average amount of COD discharge taken from permit, in pounds per day. |
DCC = | Design capacity for COD, in pounds per day. |
SCF = | SS cost factor. This factor shall be assumed equal to .16 until detailed capital cost analysis shows otherwise. |
ASD = | Average amount of SS discharge taken from permit, in pounds per day. |
DCS = | Design capacity for SS, in pounds per day.
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IGF =
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Interceptor grant funds equals total EPA grand funds received from planning, design and construction of each interceptor project to which the user is tributary and which is in service at the beginning of the cost recovery period.
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PUF =
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Percent utilization factor equals the average percentage of EPA funded interceptor projects utilized (estimated by dividing the funded interceptor length tributary to the user by the total interceptor length).
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PWD =
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Peak wastewater discharge as found on the user's industrial wastewater discharge permit. Wastewater permits of major industrial users shall be amended at least annually following monitoring as required by minor section 24-43(5).
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DCV =
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Design capacity for volume equals total peak dry weather design capacity for all tributary interceptors. |
The above formula for total annual ICR charges reflects each industrial customer's annual contribution for federally funded treatment plants and individual federally funded interceptor projects which specifically benefit the industrial user.
Sec. 24-46(5). An industrial user's charge for ICR shall be reviewed no less than annually to include any new tributary grant funded projects in operation and to correct the ICR charge for any change in the user's wastewater discharge characteristics.
Sec. 24-46(6). The useful life of wastewater improvements will normally equal or exceed thirty (30) years. Thirty (30) years will be used as the maximum cost recovery period. Capital improvements with useful lives of less than thirty (30) years shall have a cost recovery period equal to the useful life of the project in accordance with EPA regulations.
Sec. 24-46(7). The total ICR recovered from an industry which discontinues use during the ICR period shall be the federal cost of the capacity used multiplied by the ratio of its period of use to the ICR period.
Sec. 24-46(8). A new industry which connects to a treatment works after such works has been put into service shall begin ICR payments on the date use is initiated and shall continue for the unexpired portion of the ICR period or until the industry ceases use of the facility, whichever occurs first. The total ICR recovered from a new industry shall be the federal cost of the capacity used multiplied by the ratio of its period of use to the ICR period.
(Ord. No. 4672, § 5, 6-20-77)