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now approved the Step I Facilities Plan so design engineering can begin now. Under the new EPA rules, a Step II grant is not required to begin design engineering. The City need only authorize its engineers to initiate the final design in accordance with the Facility Plan. The City would pay for the engineering costs as the design progresses. When the plans are completed and approved by the State and EPA, the construction grant is awarded by EPA, including an allocation for design engineering fees as well as monies for construction, administration, and inspection fees for construction. The construction plans and specifications must be complete and approved by TDWR before Congress passes the 1983 appropriations bill, historically done in late December or early January for it to be the project funded in this next anticipated funding cycle. For San Marcos to receive funds from these anticipated 1983 appropriations, the following schedule is reco~ended: Freese and Nichols, Inc. contracts with City of San Marcos for engineering design Engineering design begins Engineering design complete and submitted to TDWR for review TDWR approves plans and specifications U.S. Congress appropriates 1983 funds 1983 Priority Hearings held Step III construction grant applied for Step III grant approved Construction begins Construction complete; new plant in operation May 1982 June 1982 Nov. 15, 1982 Dec. 15, 1982 Dec. 30, 1982 March 1, 1983 March, 1983 April, 1983 May, 1983 Nov., 1984 In late December, 1981, Congress passed the Clean Water Act which enacted the new rules for the Construction Grants Program and called for 5