(a) The corporation shall require each recipient to effectively preserve, protect and/or improve water quality, employ good management practices, and fulfill all applicable requirements of: Federal and State laws, regulations, and executive orders, including without limitation, prevailing wage requirements under article 8 of the Labor Law, all requirements of the PFA, and all applicable instructions issued by the commissioner or the corporation to ensure that these requirements are met.

(b) The corporation or the department may conduct such reviews, inspections and investigations as they determine necessary to ensure that applicable Federal and State requirements are fulfilled, and that the terms, requirements, and conditions of the PFA are being met.

(c) The corporation and the department may accept recipient certification that project requirements have been met where such certifications are permitted by State laws or regulations. Acceptance of a certification that a project requirement was met shall not preclude the corporation and the department from carrying out selective sampling and verification of such certification.

(d) All contracts between the recipient and parties carrying out construction and other CWSRF assisted activities shall provide that representatives of the commissioner, the comptroller, and the corporation shall have access to the work wherever it is in preparation or progress and shall permit extracts and copies of project records to be made by them.

(e) All change orders for which a disbursement is being requested shall be submitted to the corporation for review and approval for eligibility prior to such disbursement being made. Proposed changes that will significantly alter the project or any treatment process incorporated therein shall require prior approval by the department or the corporation.

(f) The recipient shall provide competent and adequate inspection of project construction, as may be required by the corporation in the PFA, under the direction of a professional engineer licensed in New York State who shall be responsible for determining whether such work has been performed in accordance with the approved plans and specifications. Following project completion, the professional engineer shall certify to the recipient, the commissioner, and the corporation that project construction was completed in accordance with the approved plans and specifications or approved amendments thereto.

(g) The recipient shall have or acquire such title, estate or interest in the site of the project, including necessary easements and rights-of-way, to ensure undisturbed use and possession during construction, and for the term of its CWSRF obligation under the PFA.

(h) The recipient, all authorized representatives of the recipient, and all contractors and subcontractors providing services for the project shall comply with all Federal and State laws, regulations, and executive orders applicable to the project including, but not limited to, affirmative action, equal employment opportunity, and small, minority and women's business enterprises. The recipient shall include in all contracts or subcontracts financed with CWSRF assistance that the commissioner determines are subject to article 15-A of the Executive Law, contract provisions determined necessary by the commissioner for purposes of complying with article 15-A of the Executive Law and any regulations adopted pursuant thereto.

(i) The department shall conduct an independent environmental review of all CWSRF projects. The recipient shall provide the department with any documents needed by the department to complete its review.

(j) The recipient is solely responsible for the preparation of engineering reports, facilities plans, design drawings, plans and specifications, contract documents, and the inspection of the project necessary for the completion of the project. Despite any review or approval of engineering reports, facilities plans, design drawings, plans and specifications, contract documents, change orders, or the inspection of project construction by the department, or the corporation, neither the department nor the corporation, nor their employees, agents or representatives, are responsible for increased costs resulting from defective engineering reports, facilities plans, design drawings, plans and specifications, change orders, or negligent inspection of project.

(k) The recipient shall take any corrective action necessary to bring a project into compliance with the project performance standards contained in the approved engineering report or facilities plan for the project or, if applicable, with the SPDES permit. The recipient may receive CWSRF assistance, to the extent such assistance is available, for corrective action, where such action is not required due to fraud, mismanagement or failure to comply with requirements set forth in a PFA.

(l) Certain treatment works projects designated by the commissioner shall be equivalency projects required to comply with the provisions of section 649.9 of this Part. Projects to be designated will be those projects that can meet the additional requirements under section 649.9 of this Part most readily.

(m) When the CWSRF assistance to projects meeting equivalency project requirements equals or exceeds the Federal capitalization funds available to New York State, treatment works projects approved for CWSRF assistance following that determination shall be exempted from the equivalency project requirements.

(n) The corporation is authorized to provide CWSRF financing for land acquisition consistent with the provisions of sections 319 and 320 of the act. Land acquisition includes, but is not limited to the outright purchase of a fee simple interest in land, or the purchase of conservation easements.