Extract: Procedures for awarding federal grants to states and local governments to plan and construct publicly owned wastewater treatment works, the requirements and methods for establishing user charge and industrial cost recovery systems, and the sewage rate structure associated with the establishment of such systems will be analyzed in this report. the analysis will be useful to both state and local officials applying for federal constuction grants; a suggested ordinance enacting the user charge and industrial cost recovery system is provided in the Appendix. the report will also examine enabling legislation in 12 states to determine the authority given local governmental units to establish wastewater treatment works, levy assessment and user charges and fees, and alter the rate structure. such enabling legislation provides the foundation for implementing the user charge and industrial cost recovery systems imposed by the 1972 FWPCA AMENDMENTS.