(1) The step process is required for wastewater facilities projects. The process begins with site-specific planning, and continues through design to construction.

(2) For steps one through three, an applicant may only apply for funding for one step of the process at a time. Funding of one step does not guarantee the funding of subsequent steps.

(3) The step process includes the following:

(a) Planning (step one): Step one involves the preparation of a site-specific planning document that identifies the cost-effective alternatives for addressing a water pollution control problem in accordance with WAC 173-98-730. There is no prerequisite for planning;

(b) Design (step two): Step two includes the preparation of plans and specifications for use in construction. These must be based on the preferred cost-effective alternative identified in the planning document. In order to be eligible for design a planning document must be approved by the department without conditions at least thirty days before issuance of the Draft Offer and Applicant List.

Planning documents approved by the department more than two years before the close of the application period must contain evidence of recent review by the department to ensure the document reflects current conditions; and

(c) Construction (step three): Step three includes construction of facilities based on the approved design. In order to be eligible for construction, design plans and specifications must be approved by the department without conditions, in accordance with WAC 173-240-030, at least thirty days before issuance of the Draft Offer and Applicant List.

(4) Combined steps for smaller design-construct projects (step four): In some cases, design and construction may be combined into one project. Step four applicants must demonstrate that step two (design) can be completed and approved by the department within one year of the signature date of the funding agreement. In order to be eligible for step four, a planning document must be approved by the department without conditions at least thirty days before issuance of the Draft Offer and Applicant List. The total project costs for step four projects must be seven million dollars or less.

(5) Step deviations. During the application phase of the funding cycle, the department may allow an applicant to deviate from the traditional step requirements if:

(a) The Washington state department of health has declared a public health emergency, and the proposed project would remedy this situation; or

(b) The department has declared an environmental emergency, and the proposed project would remedy this situation.