54810
federal Register/Vol.  57, No.  165/Monday,  August 26,  2002/Notices
begun (e.g., estimated load reductions
   juld be reported annually once project
immementation has progressed to the
poirVthat practices have been installed
or irnMemehted).
  Thelkograded CRTS system,
mcludiiXtext fields, will enable States
to satisfylb of their annual reporting
requiremeirW through CRTS. However,
many Stateslke using their annual
reports as a me^ns to not only meet
statutory reportmg requirements but
also to educate Snte legislatures, other
agencies, and the pVblic, of the progress
that they are makinathrough
implementation of tnVr nonpoint
source programs. Therefore, States may
find it most beneficial t^publish a
separate annual report, wt to do so in
a cost- and time-saving rnfcner that
borrows heavily from the project
summaries and data reporte%in CRTS.

VI. Waiver Process

   Circumstances may arise whl
State believes require it to deveAo and
submit a work plan in a particulalfc'ear
that fails to meet one or more
requirements in these guidelines. I:
 a circumstance arises, and the State
believes that the circumstance justifii
 waiver from one or more requirement
 in these guidelines, the State may
 submit a request for a waiver to EPJFs
 Regional Water Division Director .
 request should identify the requirement
 from which a waiver is requester the
 circumstances requiring the w^rer; a
 description of the activities \sA projects
 that the State will be implementing in
 lieu of those required by those
 guidelines; and a commitrJInt to adhere
 to the guidelines to the gjJatest extent
 possible. The Regional Elision Director
 may approve the waiveFforthe year
 requested with the concurrence of the
 Director of the Assesment and
  Watershed Protection Division,
   Please note that JRis waiver process
  applies only to try requirements
  established in th^e and previous
  Section 319 guyelines; it does not
  apply to any swtutory or regulatory
  requirements/eiterated in these
  guidelines. M addition, this process is
  not require^for any Regional
  authorizaMon of the use of more than
  20% of incremental funds to develop
  watershJd-based plans in appropriate
  circurwtances as discussed earlier in
  this rjemorandum.

  VllJConclusion

     'gnificant challenges remain in our
     bits to abate NFS pollution, protect
     eatened waters, and restore impaired
  Iquatic resources. EPA will  work with
  States  to make the most effective use of
                   Federal resources to meet these
                   challenges.
                   Appendix A—Significant NonpoJ
                   •Source Grants Guidance Don
                     EPA has published several guicM&ce
                   , documents that apply to the Sedton 319
                   grants guidance process. TheseMocuments
                   are listed and briefly summarised below.
                   Each of them may be revieiMQ online from
                   the following address at EBK's nonpoint
                   source Web site: http:llwffr.epa.gov/ovfovfl
                   nps/cwaci.h tml.
                     (1) Nonpoint Source^rogram and Grants
                   Guidance for Fiscal yars 1997 and Future
                   'Years (May 1996). *Bs 33-page document is
                   the chief nationaLronpomt source program
                   document. It describes criteria and processes
                   for States and Wrritories to upgrade their
                   nonpoint soiime management programs;
                   summarizesMatutory and regulatory
                   provisions^at apply to the award of
                   nonpoinU*ource grants; and provides
                   guidancmlesigned to assist States and
                   Territo«es in implementing effective
                            and projects.
                      (2JProcess and Criteria for Funding State
                   anyTemtorial Nonpoint Source Management
                   P^grams in FY 1999 (August 18,1998). This
                     _)age document established  guidelines for
                     le use of incremental dollars ($100 million)
                   'that were anticipated to be appropriated later
                   that year. The guidance (1) authorized States
                   and Territories to use up to 20 percent of
                   their Section 319 funds to upgrade and refine
                   their nonpoint source programs and
                   assessments; (2) directed that the incremental
                   ^dollars be focused upon implementation of
                     watershed restoration action strategies in
                      jh-priority watersheds identified by the
                      Ifes and Territories as not meeting clean
                       ?r and other natural resource goals; and
                    (3) wtablished a schedule for the award of
                    the ulcremental funds.
                      (3) Minding the Development and
                    hnplenwitation of Watershed Restoration
                    Action Srategies under Section 319 of the
                    Clean Wier Act (December 4,1998). This 4-
                    page document reiterated the priority placed
                    on using tlmincremental $100 million to
                    address the^tates'  and Territories' high-
                    priority wate*heds that do not meet clean
                    water and oth% natural resource goals,
                    focused particularly in sub-watersheds where
                    NFS control actmities are likely to have the
                    greatest positive%ipact. It identified 303(d)
                    sub-watersheds assign-priorities for such
                    work.
                      (4) Supplementalwuidance for the Award
                    of Section 319 NonpMit Source Grants in FY
                    2000 (December 21,1%9). This 10-page
                    document (1) asked thBRegions to assure that
                    Section 319 grants that delude programs or
                    projects that assist anim«feeding operations
                    (AFO) include a provisiormp assure that any
                    AFO which receives finan™l assistance
                    under the grant has and wilmmplement a
                    comprehensive nutrient marwement plan;
                     (2) recommended steps inteno%f3 to achieve
                     a suggestion by the congressioi
                     appropriations committees that ^percent of
                     the Section 319 funds be allocatemto clean
                     lakes; and (3) announced and discmsed
                     EPA's intention to work with the SSles to
                     consider changes to the Section 319
                     reporting/tracking system to support program
        needs, including promoting better integration
        lith Section 305(b) data and Section 303(d)

              upplemental Guidance for the Award
its      of Se^kpn 319 Nonpoint Source Grants in FY
        2001 (%FR 70899-70905, Nov. 28, 2000).
        This docKnent (1) discussed how States and^
        Territorie*nay use funding increases
        appropriate! in FY 2001; (2) broadened thg
        use of the "Mcremental" ($100 million) t
        authorize themuse to develop and implj^ent
        the nonpoint sljpce components of T
        in watersheds Aoughout the State; ajf! (3)
        directed that eadKtate or Territory1
        conditional appro^l under SectiorB217 of
        the Coastal Zone AcvReauthorizajCn
        Amendments of 1990\.'CZARA.'j^evote at
        least $100,000 of its F"!fc001
        grant dollars to specifictioi
        designed to meet all outs
        for NOAA and EPA appro:
          (6) Supplemental Guidej
        of Section 319 Nonpoint
        States and Territories in.
        Subsequent Years (66
        13, 2001). This doi
        focus of the "incremi
        funding on develo
        watershed-based
        watershed-based
        waters through
        a transition to
            lion 319
            bat are
           ; conditions
           for the Award
            Grants to
           12 and
             7657, Sept.
     it (1) ii&eased the
    rtal" ($10%nillion)
    TMDLsi
    and imple^nting the
    for 303(d)-l%ed
 the State; (2) prodded for
ds the new focus i
         2002; (3) diseased the need for long^
         operation azJiinaintenanceof practic
         funded witiFSection 319 funds; and (4l
         discussed^ending changes in the GRT3
         reportin^system.
          Datef.August 19, 2002. .
         Robei^i. Wayland, m,
         Dire for, Office ofWetiands, Oceans, and
         WaMrsheds.
            Doc. 02-21652 Filed 8-23-02; 8:45 am]
          LUNG CODE 6560-SO-P
         ENVIRONMENTAL PROTECTION
         AGENCY
         [FRL-7268-1]

         FY03 Wetland Program Development
         Grants Guidelines

         AGENCY: Environmental Protection
         Agency.
         ACTION: Notice.

         SUMMARY: Wetland Program
         Development Grants (WPDGs) provide
         eligible applicants an opportunity to
         conduct projects that promote the
         coordination and acceleration of
         research, investigations, experiments,
         training, demonstrations, surveys, and
         studies relating to the causes, effects,
         extent, prevention, reduction, and
         elimination of water pollution. While
         WPDGs can continue to be used by
         recipients to build and refine any
          element of a comprehensive wetland
          program, priority will be given to
          funding projects that address the three
          areas identified by EPA for FY03:

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                                                                                                                             \
                     Federal  Register/Vol. 67, No. 165/Monday, August 25.. 2002/Notices
                                                                    54811
Developing a comprehensive monitoring
and assessment program; improving the
effectiveness of compensatory
mitigation; and refining the protection   ,
of vulnerable wetlands and aquatic    ,'
resources. States, Tribes, local        ,;
goverriments (S/T/LGs), interstate   ,'
associations, intertribal consortia, an'd
national non-profit, non-governmefc'tal
organizations are eligible to apply.'This
document describes the grant selection
and award process for eligible^
applicants interested in applying for
FY03 WPDGs.
FOR FURTHER INFORMATION CONTACT:
Connie Cahanap, Office of Wetlands,
Oceans, and Watersheds, Wetlands
Division (MC 4502T), U.S.
Environmental Protection Agency, 1200
Pennsylvania Avenue, NW.,
Washington, DC 20460, Telephone:
 (202) 566-1382, Fax: (202) 566-1349.
 Robert H. Waylancf m,     „
 Director, Office of Wetlands, Oceans, and
 Watersheds.                '
 I. Introduction
   The goals ,of the Environmental
 Protection Agency's (EPA) wetland
 program include increasing the quantity
 and quality of wetlands in the U.S. by
 conserving and regaining wetland '
 acreage and improving wetland health.
 In pursuing these goals, EPA seeks to'
 build the capacity of all levels of
 government to develop and implement ,.
 effective, comprehensive programs for
 wcrfand protection and management.
 The six program areas central to
 achieving these goals are: regulation,
 monitoring and assessment, restoration,
 wetland water quality standards,  public-
 private partnerships, and coordination
 among agencies with wetland or
 wetland-related programs.
   The Wetland Program Development
 Grants, initiated in FY90, provide
 States, Tribes, local governments (S/T/
 LGs), interstate associations, intertribal
 consortia, and national non-profit non-
 governmental organizations (hereafter
 referred to as award applicants or award
 recipients) an opportunity to carry out
 projects to develop and refine
 comprehensive wetland programs.
 Interest in the grant program has
 continued to grow over the years. Since
  1995, Congress has appropriated $15
  million annually to support the grant
  program. The type of projects that award
  recipients can undertake to develop and
  refine their comprehensive wetland
  programs are diverse. In the past, award
  recipients have pursued a wide range of
  activities,  such as developing
  management tools for wetland
  resources, advancing scientific and
  technical tools for protecting wetland
 health, improving availability of data
 an^*H»formation about wetlands, and
 training wetland managers and the
fifmblic about wetland and watershed
' values. Appendix B lists other examples
 of potentially eligible projects.
   The statutory authority for WPDGs is
 section 104(b)(3) of the Clean Water Act
 (CWA). Section 104(b)(3) of the CWA
 restricts the use  of these grants to
 developing and refining wetland
 management programs by conducting or
 promoting the coordination and
 acceleration of research, investigations,
 experiments, training, demonstrations,
 surveys, and studies relating to the
 causes, effects, extent, prevention,
 reduction, and elimination of water
 pollution. These grants may not be used
 for the operational support of wetland
 programs. All projects funded through
 this program must contribute to the ,
 overall development and improvement
 of S/T/LG wetland programs. Award
 applicants must demonstrate that their
 proposed project integrates with S/T/LG
 wetland programs.
   The general award and administration
 process for WPDGs are governed by
 regulations at 40 CFR part 30 ("Grants
 and Agreements with Institutions of
 Higher Education, Hospitals, and Other
 Non-Profit Organizations"), 40 CFR part
 31 ("Uniform Administrative
 'Requirements for Grants and
 Cooperative Agreements to State and
 Local Governments") and 40 CFR part
;, 35, subpart A ("Environmental Program
 ^Grants for State, Interstate, and Local
 ^government Agencies") and subpart B
 (''Environmental Program Grants for
 Tribes"). This grant guideline document
 outlines the administrative and
 programmatic procedures specific to the
 Wetland Program Development Grants.

 TJ. Program Priorities
   EPA has initiated an assessment of the
 wetland program elements that will
 move S/T/LGs toward developing
 comprehensive wetland programs. For
 FY03, the wetland program has
  identified three areas as program
  priorities for improving S/T/LG's ability
 to protect and restore their wetlands: (1)
  Developing a comprehensive wetland
  monitoring and assessment program; (2)
  improving the effectiveness of
  compensatory mitigation; and (3)
  refining the protection of vulnerable
  wetlands and aquatic resources.
  Applicants are encouraged to develop'
  WPDG applications that address these
  priorities.

  A. Developing a Comprehensive
  MonitorinBJand Assessment Program
    This solicitation seeks proposals that
  support the development of a
comprehensive S/T/LG wetland
monitoring and assessment program.
State and Tribal adoption of an ambient   J
wetland monitoring and assessment     f
program is the primary goal of this    #*
solicitation (i.e., projects that build S/T/'
LG capacity to determine the causes, .'7
effects, and extent of pollution to   /
wetland resources and develop   /'
pollution prevention, reduction, and
elimination strategies). More
information related to wetland'
monitoring and assessment can be
found on the Internet at:  http://
www.epa.gov/owow/wetlands/
factsheets/monitor.pdf and http://
www. epa .gov/owow/wetlands/
factsheets/devgrants.pdf.
  Project proposals may address
development, testing, and
demonstration of methods and programs
to monitor and assess wetlands. Projects
may evaluate:
   1. The use of biological assessment
methods to improve the evaluation and
ranking of potential wetland sites for
restoration or acquisition;
   2. The ecological consequences of a
given regulatory action or group of
actions;
   3. The specifications and
implementation of compensatory
wetland mitigation;
   4. The ecological performance  of
 wetland restoration; and/or
   5. The cumulative effect of wetland
 loss and restoration in terms of change
 in the ambient ecological condition of
 the overall aquatic resource.
 Proposals should address how work to
 accomplish the.particular objective(s)
 assists S/T/LGs to implement
 comprehensive wetland monitoring and
 assessment programs.
   Proposals also should describe how
 methods under development will
 improve decision-making across various
 surface water management programs.
 Provisional reporting of ambient
 wetland condition, in Clean Water Act
  Section 305(b) reports, is a logical first
  step toward meeting that particular
  objective. When preparing proposals,
  care should be given to ensure that any
  data collected under the grant is of such
  qualitythat it can be relied on for other
  purposes (as appropriate). Accordingly,
  applicants may host technical training
  workshops, establish regional or Sjate
  interagency wetland monitoring arid
  assessment workgroups, develop
  volunteer monitoring programs, and'..
  improve wetland inventories (e.g., use^
  of hydrogeomorphic (HGM) wetland  '
  classification system). Examples of case
   studies illustrating wetland monitoring ,;.
   and assessment methods can be found
   on the Internet at: http://www.epa.gov/

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54812
Federal  Register /Vol. 67, No.  165/'ivionu£iy,;:August  26,  2002/Notices
owow/wetlands/bawwg/case.html and
h tip://www, epa .gov/region 1 lecol
wetland/index.html. Many of the case
studies listed on those Web sites were
funded by WPDGs.
  Monitoring data collected from
wetland monitoring projects must be
incorporated into 305(b) reports.
Additionally, recipients must download
data collected through monitoring
projects into STORET (short for
STOrage and RETrieval).STORET
provides an accessible, nationwide
central repository of water information
of known quality. See ivww.ppa.gov/
storet for further information about
uploading data into STORET.

B. Improving the Effectiveness of
Compensatory Mitigation
  Priority will also be given to  projects
that improve S/T/LG capacity to ensure
ecologically effective compensatory
mitigation for unavoidable impacts. For
example, WPDGs can be used to
develop and verify assessment methods
and/or tracking (reporting) systems that
document:
  1. The technical adequacy of
compensatory mitigation project plans
(e.g., plan review standards);
  2. the ecological suitability of
proposed compensatory mitigation
project sites (e.g., develop site  review
standards in context with restoration
 opportunity mapped at the [watershed
 scale);
   3. the compliance of mitigation
 projects at various stages of
 implementation; and
   4. the assessment of mitigation
 opportunities to address ciimulative
 impacts to wetlands.      ',
   WPDG can also be used to develop
 mitigation performance standards. Grant
 funds can only be used forresearch,
 investigations, experiments, training,
 demonstrations, surveys, and studies to
 support (or to improve or develop)
 mitigation programs; they cannot be
 used for specific mitigation activities
 (e.g., implementation of individual
 mitigation  projects, mitigation banks, or
 in-lieu-fee  mitigation programs).
 Background information describing
 concepts and methods for improving the
 effectiveness of compensatory,
 mitigation can be found in a recent
 National Academy of Science
 publication, entitled "Compensating for
 Wetland Losses Under the
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                    Federal Register/Vol. 67, No.  165/Monday, August 26, 2002/Notices
                                                                   54813
Comprehensive Wetland Program is
available on EPA's web page at http://
vrww.epa.gov/owow/wetlands/initiative/
^financial or by mail upon request by
calling the Wetlands Helpline at (800)
832-7828).
V. Application Procedures
  WPDG applications from States,
Tribes, and local governments are
handled through EPA Regional Offices,
while applications from national non-
profit, non-governmental organizations
are handled through EPA Headquarters
(Appendix C). Applications from
interstate agencies and intertribal
consortia can be submitted to either a
Regional Office or Headquarters,
however, the same proposals cannot be
submitted to more than one office.
Headquarters and Regional Office staff
will review the applications received in
their respective offices and select the
most competitive projects for funding.
Both the quality and quantity of the
applications will play a significant role
in the selection of grants for funding.
A. Application Package
   Interested applicants must submit an
application, which includes a work plan
and completed EPA grant forms. As
provided in 40 CFR 35.107 and 35.507,
for States, Tribes, local governments,
interstate agencies, and non-profit
organizations, an approvable plan must
specify (1) the work plan components to
be funded under the grant; (2) the
estimated work years and the estimated
 funding amounts for each work plan
 component; (3) the work plan
 commitments for each work plan
 component and a time frame for their
 accomplishment; (4) a performance and
 reporting schedule in accordance with
 40 CFR 35.115 or 35.515; and (5) the
 roles and responsibilities of the
 recipient and EPA in carrying out the
 work plan commitments. For national
 nonprofit organizations, work plans
 must include: (1) A summary of key
 objectives and final products, preferably
 in 50 words or less; (2) a detailed
 description of project tasks and an
 explanation of how the project will
 contribute to developing or improving a
 S/T/LG's wetland program; (3) a time-
 line; (4) a budget and estimated funding
 amounts for each work plan component;
 (5) deliverables; (6) a performance
 evaluation process and  reporting
 schedule; (7) roles and responsibilities
 of the recipient and EPA in carrying out
 the work plan commitments; and (8)
 contact information for the Program
 Manager, Grant Project  Lead Manager,
 and Account Manager. Headquarters
 and some Regional Offices may ask S/
 T/LGs to submit pre-application
proposals of grant projects for
competitive review (see Section V Part
B for deadlines). For specific regional
guidance, contact your Regional or
Headquarters EPA Grant Coordinator
(Appendix C). Grant application forms
are available at http://www.epa.gov/ogd/
hqgrant/ and by mail upon request by
calling the Grants Administration
Division at (202) 564-5305.

B. Deadlines
  Full application proposals must be
submitted to the appropriate EPA office
and postmarked by the appropriate
Regional and Headquarters deadlines:
Region 1
  States: )anuary 3i, 2003
  Tribes: June 30, 2003
Region 2
  January 31, 2003
Region 3
  Pre-proposal: October 9, 2002
  Final proposal: January 15, 2003
Region 4
  December 2, 2002
Region 5
  December 20, 2002
Region 6
   November 1, 2002
Region 7
   December 2, 2002
Region 8
   December 3, 2002
Region 9
   Pre-proposal: October 11, 2002
   Final proposal: February 14, 2003
Region 10
   Pre-proposal: November 4', 2002
   Final proposal: February 21, 2003
Headquarters
   Pre-proposal: December 9, 2002
   Final proposal: March 22, 2003
   Please contact the appropriate Grants
 Coordinator (Appendix C) for further
 information and/or to confirm
 deadlines.
   Applicants may request limited
 assistance in revising work plans,
 proposed funding levels to better reflect
 the funding available, and preliminary
 proposals to develop a project that
 better reflects program priorities.

 C. Match Requirements
   S/T/LG, interstate agencies, and
 intertribal consortia must provide a
 minimum of 25% of each award's total
 project costs in accordance with 40 CFR
 31.24, 35.385, and 35.615. We
 encourage States, Tribes  and local
 governments to provide a larger share of
 the project's cost whenever possible
 (i.e., in excess of the required 25% of
 total project costs). Non-profit,  non-
 governmental organizations must also
 provide a minimum of 25% of each
 award's total project costs.
  The match requirement can be met
with contributions from entities other
than the award recipient. Other Federal
money cannot be used as the match for
this grant program unless authorized by
the statute governing the award of the
other Federal funds. However, Indian
tribes can use funds provided under the
Indian Self-Determination and
Education Act (25 U.S.C. 450 et seq.) to
provide the required matching funds to
the extent authorized by that Act and
implementing regulations.
  Matching funds are considered grant
funds. They may be used for the
reasonable and necessary expenses of
carrying out the work plan. Any
restrictions on the use of grant funds
(i.e., prohibition of land acquisition
with grant funds) also apply to the use
of matching funds.

D. Quality Assurance/Quality Control
(QA/QC)
   QA/QC and peer review are
sometimes applicable to these grants
(see 40 CFR 30.54 and 40 CFR 31.45).
QA/QC requirements apply to the
collection of environmental data.
Environmental data are any
measurements or information that
 describe environmental processes,
 location, or conditions; ecological or
 health effects and consequences; or the
 performance of environmental
 technology. Environmental data include
 information collected directly from
 measurements, produced from models,
 and compiled from other sources such
 as data bases or literature. Applicants
 should allow sufficient time and
 resources for-this process. EPA can
 assist-applicants determine whether
 QA/QC is required for the proposed
 project. If QA/QC is required for the
 project, the applicant is encouraged to
 work with the appropriate EPA quality
 staff to determine the appropriate QA/
 QC practices for the project. If the
 applicant has an EPA-approved quality
 assurance project plan and it covers the
 project in the application, then they
 need only reference the plan in their
 application. Contact the appropriate
 Regional or Headquaters Grant
  Coordinator (Appendix C) for referral to
  an EPA quality staff.
  VI. Additional Program Information

  A. Performance Partnership Grants
    A Performance Partnership Grant
  (PPG) is a multi-program grant made to
  a State, Tribe, interstate agency, or
  intertribal consortium from funds
  appropriated for many of EPA's
  environmental program grants. Local
  governments are not eligible for PPGs.
  PPGs are voluntary and provide

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