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(5) Activities related to the disposal of municipal solid waste. Funds provided under this Contract may not be used for activities related to the disposal of municipal solid waste. This restriction includes: solid \vaste collection and transportation to a disposal facility; waste combustion (incineration or waste-to- energy); processing for reducing the volume of solid waste which is to be disposed of; any landfill related facilities or activities, including the closure and post- closure care of a landfill: or other activities and facilities associated with the ultimate disposal of municipal solid waste. However, this provision does not apply to activities specifically included under an authorized project category, to include landfill scales, citizens' collection stations, and small registered transfer stations. In addition, activities that would othef\vise be eligible for funding, such as recycling, but that are located at a disposal facility may be funded. (6) Projects Requiring a TNRCC Permit. Funds provided under this Contract may not be used for expenses related to projects or facilities that require a permit from the TNRCC. This provision, however, does not apply to projects or activities that may be located at a permitted facility that, by themselves, would not require a permit and would be othef\vise eligible for funding. (7) Projects Requiring TNRCC Registration. Projects or facilities that require registration with the TNRCC under state regulations, and which are othef\vise eligible for funding, may be funded as an implementation project. HO\vever, only those expenses related to design and engineering work necessary prior to obtaining a registration may be reimbursed by CAPCO before the registration is finally received. No actual site development, construction, equipment purchases, or similar expenses may be reimbursed prior to and until such time that a required registration is received. (8) Projects that create a competitive advantage over private industry. In accordance with Section 361.0 14(b) of the Texas Health and Safety Code, a project or service funded under this Contract must promote cooperation between public and private entities and may not be otherwise readily available or create a competitive advantage over a private industry that provides recycling or solid waste services. Under this definition, the term private industry includes non-protìt entities. (9) Supplanting existing funds. Funds may not be used to supplant salaries of an existing staff position, where the functions assigned to that position will not change. Staff positions where the assigned functions will remain the same and that were active at the time of the grant application, and were funded from a source other than a previous solid waste grant, are ineligible for grant funding. This provision, however, does not apply to the salaries for staff of the SUBCONTRACTOR, in its conduct of activities under this Contract. (10) Acquisition of Goods and Services. Recipients of funds under this Contract must comply with all state and local laws and regulations pertaining to the acquisition of goods and services. In recognition of the requirement that projects not create a competitive advantage over a private industry, it is a goal of this program that competitive processes be used to the extent possible for all Capital Area Planning Council FY 1998 Solid Waste Contract 18