(1) “Alternative technology” means proven wastewater treatment processes and techniques which provide for the reclaiming and reuse of water, productively recycle wastewater constituents or otherwise eliminate the discharge of pollutants, or recover energy. Specifically, “alternative technology” includes land application of effluent and sludge, aquifer recharge, aquaculture, direct reuse (nonpotable), horticulture, revegetation of disturbed land, containment ponds, sludge composting and drying prior to land application, self-sustaining incineration, methane recovery, codisposal of sludge and solid waste and individual and on-site systems. “Alternative technology” also includes a wastewater collection system other than a conventional system for a community with population less than three thousand five hundred (3,500), according to the 1980 federal census or any subsequent federal census. This includes, but is not limited to, small diameter pressure, gravity and vacuum sewers carrying partially or fully treated wastewater and which demonstrate a significant savings in the life cycle cost of the project when compared to an appropriate conventional technology;

(2) “Construction” means the erection, acquisition, alteration, reconstruction, improvement or extension of wastewater treatment works, including preliminary planning to determine the economic and engineering feasibility of wastewater treatment works, the engineering, architectural, legal, fiscal and economic investigations and studies, surveys, designs, plans, procedures and other similar action necessary in the building of wastewater treatment works, and the inspection and supervision of the construction of wastewater treatment works;

(3) “Department” means the department of environment and conservation;

(4) “Grant” means the award of state funds to a municipality for the construction of wastewater treatment works or for preliminary engineering pursuant to this part;

(5) “Grant allowance” means that portion of a grant made pursuant to this part which is a percentage of the total grant which the department deems to represent reasonable preliminary engineering costs. It is not intended to cover or reimburse for actual preliminary engineering costs;

(6) “Innovative technology” means developed wastewater treatment processes and techniques which have not been fully proven under the circumstances of their contemplated use and which represent a significant advancement over the state of the art in terms of significant reduction in life cycle cost of the project when compared to an appropriate conventional technology;

(7) “Municipality” means any utility district existing on July 1, 1984, county, incorporated town or city, or metropolitan government which has authority to administer a wastewater treatment works, or any combination of two (2) or more of the foregoing acting jointly to construct a wastewater treatment works;

(8) “Preliminary engineering” means preparation of the Section 201 Facilities Plan, preparation of engineering plans, writing specifications, value engineering, and related, similar activities;

(9) “Priority ranking list” means a list generated through a system by which the department ranks in descending order of priority all applicants for state and federal grants for construction of wastewater treatment works by criteria which include at least the following:

(A) The nature and quantity of the receiving waters;

(B) The severity of the pollution to be abated by the proposed construction; and

(C) The use of innovative technology to save energy or reuse or reclaim wastes;

(10) “Reserve capacity” means capacity to treat, store, transport or dispose of more wastewater than the demand on the system at the time of construction;

(11) “Value engineering” is a specialized cost control technique which uses a systematic and creative approach to identify and focus on unnecessarily high cost in a project in order to arrive at a cost saving without sacrificing the reliability or efficiency of the project; and

(12) “Wastewater treatment works” means any facility whose purpose is to store, treat, neutralize, stabilize, recycle, reclaim or dispose of municipal wastewater, including treatment or disposal plants, interceptors, outfall, and outlet sewers, pumping stations, equipment and furnishings thereof and their appurtenances which are necessary to accomplish the foregoing purposes; also included in this definition are collection systems which are to be built, repaired or extended for the purpose of ameliorating or correcting a pollution problem existing at the time of the application for the grant; provided, that collection systems, or parts thereof, otherwise are excluded from this definition and are not eligible for grants under this part.