Industrial users may reserve capacity in the treatment works
(including used and unused capacity) through formal, written agreement
which shall be subject to industrial cost recovery as set forth below:
A. In such cases, the industrial user shall be required to pay the full
ICR allocable to the capacity reserved. In the event that the industrial
user exceeds its reserved capacity, it shall be required to pay ICR
calculated on the full reserve capacity plus additional ICR for use
above the limits of the reserved capacity or any element thereof.
B. In the event that the treatment works are expanded in the future
with P.L. 92-500 grant assistance, an industrial user who has executed
a reserved capacity agreement and has made ICR payments based upon
full reserved capacity will not incur additional ICR charges associated
with the cost of expansion until the industrial user's actual
use of the treatment works exceeds its reserved capacity.
C. Industrial users with reserved capacity contracts will be required
to pay any additional ICR charges associated with the cost of upgrading
a treatment works.
A "new industry" is one which connects to a treatment works
after such treatment works has been put into service. ICR payments
by a new industry shall begin 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. Total
ICR recovered from a new industry shall be the federal design cost
of the capacity used (see Table 2) multiplied by the ratio of its
period of use to the ICR period.
An industrial user may wish to fulfill its industrial cost recovery
obligation by making a lump sum payment, in lieu of annual payments,
for its entire share of the cost of construction of the treatment
works. Such payments may be accepted by the grantee and either processed
as a normal ICR payment or set aside in a separate account to be drawn
annually for the remainder of the industrial cost recovery period.
Lump sum payments will not relieve an industrial user from the obligation
of making additional future payments should its wastewater flow or
load increase. Discounts from the total industrial cost recovery requirement
will not be given to industrial users making advanced ICR payments.
Section 204(b)(1)(B) of the Act supersedes and nullifies any
and all state or local laws and ordinances and orders in conflict
therewith. Any agreement between the Town and any industry, or between
the Town and any other political jurisdiction or other party, which
purports to relieve any industry from payment of the federal share
of the grant or which purports to limit the power of a Town to demand
collection of the federal share of the cost of construction from each
industrial user will not be grounds to circumvent or avoid the requirements
of Section 204(b)(1)(B), EPA regulations, and ICR/EPA guidelines.